psn-10q_20200630.htm
false Q2 0000275880 --12-31 Large Accelerated Filer true true true true 2017-11-30 2022-11-30 P5Y P3Y P2Y P3Y P3Y P12Y P4Y P2Y P1Y P3Y P3Y P5Y P5Y P1Y P1Y P1Y P1Y P1Y P1Y us-gaap:AccruedLiabilitiesAndOtherLiabilities us-gaap:OtherLiabilitiesNoncurrent P3Y P7Y P5Y P4Y P1Y P3Y P10Y P1Y P3Y P3Y P5Y P15Y P10Y P10Y P7Y 0000275880 2020-01-01 2020-06-30 xbrli:shares 0000275880 2020-07-27 iso4217:USD 0000275880 2020-06-30 0000275880 2019-12-31 0000275880 psn:ConsolidatedJointVenturesMember 2020-06-30 0000275880 psn:ConsolidatedJointVenturesMember 2019-12-31 iso4217:USD xbrli:shares 0000275880 psn:EmployeeStockOwnershipPlanMember 2020-06-30 0000275880 psn:EmployeeStockOwnershipPlanMember 2019-12-31 0000275880 2020-04-01 2020-06-30 0000275880 2019-04-01 2019-06-30 0000275880 2019-01-01 2019-06-30 0000275880 2018-12-31 0000275880 2019-06-30 0000275880 us-gaap:CommonStockMember 2020-03-31 0000275880 us-gaap:TreasuryStockMember 2020-03-31 0000275880 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000275880 us-gaap:RetainedEarningsMember 2020-03-31 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000275880 us-gaap:ParentMember 2020-03-31 0000275880 us-gaap:NoncontrollingInterestMember 2020-03-31 0000275880 2020-03-31 0000275880 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000275880 us-gaap:ParentMember 2020-04-01 2020-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000275880 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000275880 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000275880 us-gaap:CommonStockMember 2020-06-30 0000275880 us-gaap:TreasuryStockMember 2020-06-30 0000275880 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000275880 us-gaap:RetainedEarningsMember 2020-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000275880 us-gaap:ParentMember 2020-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2020-06-30 0000275880 psn:RedeemableCommonStockMember 2019-03-31 0000275880 us-gaap:TreasuryStockMember 2019-03-31 0000275880 us-gaap:RetainedEarningsMember 2019-03-31 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000275880 us-gaap:ParentMember 2019-03-31 0000275880 us-gaap:NoncontrollingInterestMember 2019-03-31 0000275880 2019-03-31 0000275880 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000275880 us-gaap:ParentMember 2019-04-01 2019-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000275880 psn:RedeemableCommonStockMember 2019-04-01 2019-06-30 0000275880 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000275880 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000275880 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000275880 psn:RedeemableCommonStockMember 2019-06-30 0000275880 us-gaap:CommonStockMember 2019-06-30 0000275880 us-gaap:TreasuryStockMember 2019-06-30 0000275880 us-gaap:RetainedEarningsMember 2019-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000275880 us-gaap:ParentMember 2019-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2019-06-30 0000275880 us-gaap:CommonStockMember 2019-12-31 0000275880 us-gaap:TreasuryStockMember 2019-12-31 0000275880 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000275880 us-gaap:RetainedEarningsMember 2019-12-31 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000275880 us-gaap:ParentMember 2019-12-31 0000275880 us-gaap:NoncontrollingInterestMember 2019-12-31 0000275880 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0000275880 us-gaap:ParentMember 2020-01-01 2020-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000275880 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2019-12-31 0000275880 us-gaap:AccountingStandardsUpdate201613Member us-gaap:ParentMember srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2019-12-31 0000275880 us-gaap:AccountingStandardsUpdate201613Member srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2019-12-31 0000275880 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0000275880 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0000275880 psn:RedeemableCommonStockMember 2018-12-31 0000275880 us-gaap:TreasuryStockMember 2018-12-31 0000275880 us-gaap:RetainedEarningsMember 2018-12-31 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000275880 us-gaap:ParentMember 2018-12-31 0000275880 us-gaap:NoncontrollingInterestMember 2018-12-31 0000275880 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000275880 us-gaap:ParentMember 2019-01-01 2019-06-30 0000275880 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0000275880 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000275880 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2018-12-31 0000275880 us-gaap:AccountingStandardsUpdate201602Member us-gaap:ParentMember srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2018-12-31 0000275880 us-gaap:AccountingStandardsUpdate201602Member srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2018-12-31 0000275880 psn:RedeemableCommonStockMember 2019-01-01 2019-06-30 0000275880 us-gaap:TreasuryStockMember 2019-01-01 2019-06-30 0000275880 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000275880 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000275880 psn:OGSystemsMember 2020-01-01 2020-06-30 0000275880 psn:QRCTechnologiesMember 2020-01-01 2020-06-30 0000275880 us-gaap:IPOMember us-gaap:CommonStockMember 2019-05-07 2019-05-08 0000275880 us-gaap:IPOMember us-gaap:CommonStockMember 2019-05-08 0000275880 us-gaap:OverAllotmentOptionMember us-gaap:CommonStockMember 2019-05-31 2019-05-31 0000275880 us-gaap:IPOMember us-gaap:CommonStockMember 2019-05-14 0000275880 us-gaap:OverAllotmentOptionMember us-gaap:CommonStockMember 2019-05-14 2019-05-14 0000275880 us-gaap:IPOMember us-gaap:CommonStockMember 2019-05-14 2019-05-14 0000275880 2019-05-14 2019-05-14 xbrli:pure 0000275880 2019-04-15 2019-04-15 0000275880 psn:EmployeeStockPurchasePlanMember srt:MaximumMember 2020-04-01 2020-06-30 0000275880 us-gaap:AccountingStandardsUpdate201613Member 2020-03-31 0000275880 psn:OGSystemsMember 2019-01-07 0000275880 psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 psn:OGSystemsMember psn:TermLoanMember 2019-01-07 2019-01-07 0000275880 psn:IndirectGeneralAndAdministrativeExpenseMember psn:OGSystemsMember 2019-01-01 2019-12-31 0000275880 us-gaap:CustomerRelationshipsMember psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 us-gaap:OrderOrProductionBacklogMember psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 us-gaap:TradeNamesMember psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 us-gaap:NoncompeteAgreementsMember psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 us-gaap:DevelopedTechnologyRightsMember psn:OGSystemsMember 2019-01-07 2019-01-07 0000275880 psn:OGSystemsMember 2020-04-01 2020-06-30 0000275880 psn:OGSystemsMember 2019-04-01 2019-06-30 0000275880 psn:OGSystemsMember 2019-01-01 2019-06-30 0000275880 psn:QRCTechnologiesMember 2019-07-31 0000275880 psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 psn:IndirectGeneralAndAdministrativeExpenseMember psn:QRCTechnologiesMember 2019-01-01 2019-12-31 0000275880 us-gaap:RevolvingCreditFacilityMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:CustomerRelationshipsMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:DevelopedTechnologyRightsMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:InProcessResearchAndDevelopmentMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:NoncompeteAgreementsMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:TradeNamesMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:OrderOrProductionBacklogMember psn:QRCTechnologiesMember 2019-07-31 2019-07-31 0000275880 us-gaap:DevelopedTechnologyRightsMember psn:QRCTechnologiesMember srt:MinimumMember 2019-07-31 2019-07-31 0000275880 us-gaap:InProcessResearchAndDevelopmentMember psn:QRCTechnologiesMember srt:MinimumMember 2019-07-31 2019-07-31 0000275880 us-gaap:DevelopedTechnologyRightsMember psn:QRCTechnologiesMember srt:MaximumMember 2019-07-31 2019-07-31 0000275880 us-gaap:InProcessResearchAndDevelopmentMember psn:QRCTechnologiesMember srt:MaximumMember 2019-07-31 2019-07-31 0000275880 psn:QRCTechnologiesMember 2020-04-01 2020-06-30 0000275880 psn:QRCTechnologiesMember 2019-04-01 2019-06-30 0000275880 psn:QRCTechnologiesMember 2019-01-01 2019-06-30 0000275880 us-gaap:FixedPriceContractMember 2020-04-01 2020-06-30 0000275880 us-gaap:FixedPriceContractMember 2019-04-01 2019-06-30 0000275880 us-gaap:FixedPriceContractMember 2020-01-01 2020-06-30 0000275880 us-gaap:FixedPriceContractMember 2019-01-01 2019-06-30 0000275880 us-gaap:TimeAndMaterialsContractMember 2020-04-01 2020-06-30 0000275880 us-gaap:TimeAndMaterialsContractMember 2019-04-01 2019-06-30 0000275880 us-gaap:TimeAndMaterialsContractMember 2020-01-01 2020-06-30 0000275880 us-gaap:TimeAndMaterialsContractMember 2019-01-01 2019-06-30 0000275880 psn:CostPlusMember 2020-04-01 2020-06-30 0000275880 psn:CostPlusMember 2019-04-01 2019-06-30 0000275880 psn:CostPlusMember 2020-01-01 2020-06-30 0000275880 psn:CostPlusMember 2019-01-01 2019-06-30 0000275880 2019-01-01 2019-12-31 0000275880 psn:FederalSolutionSegmentMember 2020-07-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2020-07-01 2020-06-30 0000275880 2020-07-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember 2021-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2021-01-01 2020-06-30 0000275880 2021-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember 2022-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2022-01-01 2020-06-30 0000275880 2022-01-01 2020-06-30 0000275880 srt:MinimumMember 2020-01-01 2020-06-30 0000275880 srt:MaximumMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember 2019-12-31 0000275880 psn:CriticalInfrastructureSegmentMember 2019-12-31 0000275880 psn:FederalSolutionSegmentMember 2020-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2020-06-30 0000275880 us-gaap:OrderOrProductionBacklogMember 2020-06-30 0000275880 us-gaap:CustomerRelationshipsMember 2020-06-30 0000275880 us-gaap:LeaseAgreementsMember 2020-06-30 0000275880 us-gaap:DevelopedTechnologyRightsMember 2020-06-30 0000275880 us-gaap:TradeNamesMember 2020-06-30 0000275880 us-gaap:NoncompeteAgreementsMember 2020-06-30 0000275880 us-gaap:InProcessResearchAndDevelopmentMember 2020-06-30 0000275880 us-gaap:OtherIntangibleAssetsMember 2020-06-30 0000275880 us-gaap:OrderOrProductionBacklogMember 2019-12-31 0000275880 us-gaap:CustomerRelationshipsMember 2019-12-31 0000275880 us-gaap:LeaseAgreementsMember 2019-12-31 0000275880 us-gaap:DevelopedTechnologyRightsMember 2019-12-31 0000275880 us-gaap:TradeNamesMember 2019-12-31 0000275880 us-gaap:NoncompeteAgreementsMember 2019-12-31 0000275880 us-gaap:InProcessResearchAndDevelopmentMember 2019-12-31 0000275880 us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000275880 us-gaap:OrderOrProductionBacklogMember 2020-01-01 2020-06-30 0000275880 us-gaap:CustomerRelationshipsMember 2020-01-01 2020-06-30 0000275880 us-gaap:LeaseAgreementsMember 2020-01-01 2020-06-30 0000275880 us-gaap:DevelopedTechnologyRightsMember 2020-01-01 2020-06-30 0000275880 us-gaap:TradeNamesMember 2020-01-01 2020-06-30 0000275880 us-gaap:NoncompeteAgreementsMember 2020-01-01 2020-06-30 0000275880 us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-06-30 0000275880 us-gaap:BuildingAndBuildingImprovementsMember 2020-06-30 0000275880 us-gaap:BuildingAndBuildingImprovementsMember 2019-12-31 0000275880 us-gaap:FurnitureAndFixturesMember 2020-06-30 0000275880 us-gaap:FurnitureAndFixturesMember 2019-12-31 0000275880 us-gaap:ComputerEquipmentMember 2020-06-30 0000275880 us-gaap:ComputerEquipmentMember 2019-12-31 0000275880 psn:ConstructionEquipmentMember 2020-06-30 0000275880 psn:ConstructionEquipmentMember 2019-12-31 0000275880 us-gaap:BuildingAndBuildingImprovementsMember srt:MinimumMember 2020-01-01 2020-06-30 0000275880 us-gaap:BuildingAndBuildingImprovementsMember srt:MaximumMember 2020-01-01 2020-06-30 0000275880 us-gaap:FurnitureAndFixturesMember srt:MinimumMember 2020-01-01 2020-06-30 0000275880 us-gaap:FurnitureAndFixturesMember srt:MaximumMember 2020-01-01 2020-06-30 0000275880 us-gaap:ComputerEquipmentMember srt:MinimumMember 2020-01-01 2020-06-30 0000275880 us-gaap:ComputerEquipmentMember srt:MaximumMember 2020-01-01 2020-06-30 0000275880 psn:ConstructionEquipmentMember srt:MinimumMember 2020-01-01 2020-06-30 0000275880 psn:ConstructionEquipmentMember srt:MaximumMember 2020-01-01 2020-06-30 0000275880 us-gaap:SeniorNotesMember 2020-06-30 0000275880 us-gaap:SeniorNotesMember 2019-12-31 0000275880 psn:CreditAgreementMember 2020-01-01 2020-06-30 0000275880 psn:CreditAgreementMember 2020-06-30 0000275880 us-gaap:BaseRateMember srt:MinimumMember psn:CreditAgreementMember 2020-01-01 2020-06-30 0000275880 us-gaap:BaseRateMember srt:MaximumMember psn:CreditAgreementMember 2020-01-01 2020-06-30 0000275880 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember psn:CreditAgreementMember 2020-01-01 2020-06-30 0000275880 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember psn:CreditAgreementMember 2020-01-01 2020-06-30 0000275880 srt:MinimumMember psn:CreditAgreementMember 2020-06-30 0000275880 srt:MaximumMember psn:CreditAgreementMember 2019-12-31 0000275880 psn:CreditAgreementMember 2019-12-31 0000275880 psn:CreditAgreementMember 2020-04-01 2020-06-30 0000275880 psn:CreditAgreementMember 2019-04-01 2019-06-30 0000275880 psn:CreditAgreementMember 2019-01-01 2019-06-30 0000275880 us-gaap:PrivatePlacementMember 2014-07-01 2014-07-01 0000275880 psn:SeriesASeniorNoteMember 2020-06-30 0000275880 psn:SeriesBSeniorNoteMember 2020-06-30 0000275880 psn:SeriesCSeniorNoteMember 2020-06-30 0000275880 psn:SeriesDSeniorNoteMember 2020-06-30 0000275880 psn:SeriesASeniorNoteMember 2020-01-01 2020-06-30 0000275880 psn:SeriesBSeniorNoteMember 2020-01-01 2020-06-30 0000275880 psn:SeriesCSeniorNoteMember 2020-01-01 2020-06-30 0000275880 psn:SeriesDSeniorNoteMember 2020-01-01 2020-06-30 0000275880 us-gaap:PrivatePlacementMember 2020-06-30 0000275880 us-gaap:SeniorNotesMember 2020-04-01 2020-06-30 0000275880 us-gaap:SeniorNotesMember 2019-04-01 2019-06-30 0000275880 us-gaap:SeniorNotesMember 2020-01-01 2020-06-30 0000275880 us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0000275880 psn:AccruedExpensesAndOtherCurrentLiabilitiesMember 2019-06-30 0000275880 psn:AccruedExpensesAndOtherCurrentLiabilitiesMember 2019-12-31 0000275880 us-gaap:FairValueInputsLevel2Member 2020-06-30 0000275880 psn:TermLoanMember 2019-01-31 0000275880 psn:TermLoanMember 2019-05-10 2019-05-10 0000275880 psn:TermLoanMember 2019-04-01 2019-06-30 0000275880 psn:TermLoanMember 2019-01-01 2019-06-30 0000275880 psn:TermLoanMember srt:ScenarioForecastMember 2020-12-31 0000275880 psn:CoronavirusAidReliefAndEconomicSecurityActMember 2020-03-27 2020-03-27 0000275880 psn:CoronavirusAidReliefAndEconomicSecurityActMember 2020-03-26 0000275880 psn:CoronavirusAidReliefAndEconomicSecurityActMember 2020-03-27 0000275880 psn:CoronavirusAidReliefAndEconomicSecurityActMember 2020-01-01 2020-06-30 psn:Claim 0000275880 srt:MinimumMember 2017-03-01 2017-03-01 0000275880 psn:DirectCostsOfContractsAndIndirectGeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0000275880 psn:DirectCostsOfContractsAndIndirectGeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0000275880 psn:DirectCostsOfContractsAndIndirectGeneralAndAdministrativeExpenseMember 2020-01-01 2020-06-30 0000275880 psn:DirectCostsOfContractsAndIndirectGeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0000275880 2019-04-03 2019-04-03 0000275880 psn:ConsolidatedJointVenturesMember 2020-04-01 2020-06-30 0000275880 psn:ConsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000275880 psn:ConsolidatedJointVenturesMember 2020-01-01 2020-06-30 0000275880 psn:ConsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000275880 psn:UnconsolidatedJointVenturesMember 2020-06-30 0000275880 psn:UnconsolidatedJointVenturesMember 2019-12-31 0000275880 psn:UnconsolidatedJointVenturesMember 2020-04-01 2020-06-30 0000275880 psn:UnconsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000275880 psn:UnconsolidatedJointVenturesMember 2020-01-01 2020-06-30 0000275880 psn:UnconsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000275880 us-gaap:MajorityOwnedSubsidiaryUnconsolidatedMember 2020-04-01 2020-06-30 0000275880 us-gaap:MajorityOwnedSubsidiaryUnconsolidatedMember 2019-04-01 2019-06-30 0000275880 us-gaap:MajorityOwnedSubsidiaryUnconsolidatedMember 2020-01-01 2020-06-30 0000275880 us-gaap:MajorityOwnedSubsidiaryUnconsolidatedMember 2019-01-01 2019-06-30 psn:segment 0000275880 psn:FederalSolutionSegmentMember 2020-04-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember 2019-04-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember 2019-01-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2020-04-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2019-04-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2019-01-01 2019-06-30 0000275880 srt:NorthAmericaMember 2020-04-01 2020-06-30 0000275880 srt:NorthAmericaMember 2019-04-01 2019-06-30 0000275880 srt:NorthAmericaMember 2020-01-01 2020-06-30 0000275880 srt:NorthAmericaMember 2019-01-01 2019-06-30 0000275880 us-gaap:MiddleEastMember 2020-04-01 2020-06-30 0000275880 us-gaap:MiddleEastMember 2019-04-01 2019-06-30 0000275880 us-gaap:MiddleEastMember 2020-01-01 2020-06-30 0000275880 us-gaap:MiddleEastMember 2019-01-01 2019-06-30 0000275880 us-gaap:NonUsMember 2020-04-01 2020-06-30 0000275880 us-gaap:NonUsMember 2019-04-01 2019-06-30 0000275880 us-gaap:NonUsMember 2020-01-01 2020-06-30 0000275880 us-gaap:NonUsMember 2019-01-01 2019-06-30 0000275880 srt:NorthAmericaMember 2020-06-30 0000275880 srt:NorthAmericaMember 2019-12-31 0000275880 us-gaap:MiddleEastMember 2020-06-30 0000275880 us-gaap:MiddleEastMember 2019-12-31 0000275880 country:US 2020-04-01 2020-06-30 0000275880 country:US 2019-04-01 2019-06-30 0000275880 country:US 2020-01-01 2020-06-30 0000275880 country:US 2019-01-01 2019-06-30 0000275880 country:US 2020-06-30 0000275880 country:US 2019-12-31 0000275880 psn:FederalSolutionSegmentMember psn:SpaceAndGeospatialSolutionsMember 2020-04-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:SpaceAndGeospatialSolutionsMember 2019-04-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:SpaceAndGeospatialSolutionsMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:SpaceAndGeospatialSolutionsMember 2019-01-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:CyberAndIntelligenceMember 2020-04-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:CyberAndIntelligenceMember 2019-04-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:CyberAndIntelligenceMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:CyberAndIntelligenceMember 2019-01-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:EngineeredSystemsMember 2020-04-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:EngineeredSystemsMember 2019-04-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:EngineeredSystemsMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:EngineeredSystemsMember 2019-01-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:MissileDefenseC5ISRMember 2020-04-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:MissileDefenseC5ISRMember 2019-04-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember psn:MissileDefenseC5ISRMember 2020-01-01 2020-06-30 0000275880 psn:FederalSolutionSegmentMember psn:MissileDefenseC5ISRMember 2019-01-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:MobilitySolutionsMember 2020-04-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:MobilitySolutionsMember 2019-04-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:MobilitySolutionsMember 2020-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:MobilitySolutionsMember 2019-01-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:ConnectedCommunitiesMember 2020-04-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:ConnectedCommunitiesMember 2019-04-01 2019-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:ConnectedCommunitiesMember 2020-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember psn:ConnectedCommunitiesMember 2019-01-01 2019-06-30 0000275880 psn:FederalSolutionSegmentMember 2020-01-01 2020-06-30 0000275880 psn:CriticalInfrastructureSegmentMember 2020-01-01 2020-06-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     to

Commission File Number: 001-07782

 

Parsons Corporation

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

95-3232481

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

5875 Trinity Parkway #300

Centreville, Virginia

20120

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (703) 988-8500

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $1 par value

 

PSN

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of July 27, 2020, the registrant had 100,724,683 shares of common stock, $1.00 par value per share, outstanding.

 

 


Table of Contents

 

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

1

Item 1.

Financial Statements (Unaudited)

 

1

 

Consolidated Balance Sheets

 

1

 

Consolidated Statements of Income

 

2

 

Consolidated Statements of Comprehensive Income

 

3

 

Consolidated Statements of Cash Flows

 

4

 

Consolidated Statements of Shareholders’ Equity (Deficit)

 

5

 

Notes to Unaudited Consolidated Financial Statements

 

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

40

Item 4.

Controls and Procedures

 

40

PART II.

OTHER INFORMATION

 

41

Item 1.

Legal Proceedings

 

41

Item 1A.

Risk Factors

 

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

41

Item 3.

Defaults Upon Senior Securities

 

41

Item 4.

Mine Safety Disclosures

 

41

Item 5.

Other Information

 

41

Item 6.

Exhibits

 

42

 

Signatures

 

43

 

 

 

 

i


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

PARSONS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share information)

(Unaudited)

 

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (including $31,221 and $51,171 Cash of consolidated joint ventures)

 

$

129,579

 

 

$

182,688

 

 

Restricted cash and investments

 

 

7,041

 

 

 

12,686

 

 

Accounts receivable, net (including $257,967 and $166,355 Accounts receivable of consolidated joint ventures, net)

 

 

717,358

 

 

 

671,492

 

 

Contract assets (including $27,010 and $26,458 Contract assets of consolidated joint ventures)

 

 

645,556

 

 

 

575,089

 

 

Prepaid expenses and other current assets (including $8,524 and $11,182 Prepaid expenses and other current assets of consolidated joint ventures)

 

 

89,662

 

 

 

84,454

 

 

Total current assets

 

 

1,589,196

 

 

 

1,526,409

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net (including $2,672 and $2,945 Property and equipment of consolidated joint ventures, net)

 

 

124,764

 

 

 

122,751

 

 

Right of use assets, operating leases

 

 

225,054

 

 

 

233,415

 

 

Goodwill

 

 

1,045,344

 

 

 

1,047,425

 

 

Investments in and advances to unconsolidated joint ventures

 

 

64,905

 

 

 

68,620

 

 

Intangible assets, net

 

 

214,936

 

 

 

259,858

 

 

Deferred tax assets

 

 

129,737

 

 

 

130,401

 

 

Other noncurrent assets

 

 

57,246

 

 

 

61,489

 

 

Total assets

 

$

3,451,182

 

 

$

3,450,368

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity (Deficit)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable (including $91,969 and $85,869 Accounts payable of consolidated joint ventures)

 

$

209,858

 

 

$

216,613

 

 

Accrued expenses and other current liabilities (including $112,014 and $74,857 Accrued expenses and other current liabilities of consolidated joint ventures)

 

 

642,357

 

 

 

639,863

 

 

Contract liabilities (including $41,945 and $32,638 Contract liabilities of consolidated joint ventures)

 

 

219,037

 

 

 

230,681

 

 

Short-term lease liabilities, operating leases

 

 

47,648

 

 

 

49,994

 

 

Income taxes payable

 

 

12,053

 

 

 

7,231

 

 

Total current liabilities

 

 

1,130,953

 

 

 

1,144,382

 

 

Long-term employee incentives

 

 

22,122

 

 

 

56,928

 

 

Long-term debt

 

 

249,448

 

 

 

249,353

 

 

Long-term lease liabilities, operating leases

 

 

201,472

 

 

 

203,624

 

 

Deferred tax liabilities

 

 

9,117

 

 

 

9,621

 

 

Other long-term liabilities

 

 

131,818

 

 

 

125,704

 

 

Total liabilities

 

 

1,744,930

 

 

 

1,789,612

 

Contingencies (Note 12)

 

 

 

 

 

 

 

 

Shareholders' equity (deficit):

 

 

 

 

 

 

 

 

 

Common stock, $1 par value; authorized 1,000,000,000 shares; 146,495,690 and 146,440,701 shares issued; 23,929,462 and 21,772,888 public shares outstanding; 76,795,221 and 78,896,806 ESOP shares outstanding

 

 

146,496

 

 

 

146,441

 

 

Treasury stock, 45,771,008 shares at cost

 

 

(934,240

)

 

 

(934,240

)

 

Additional paid-in capital

 

 

2,658,036

 

 

 

2,649,975

 

 

Accumulated deficit

 

 

(182,753

)

 

 

(218,025

)

 

Accumulated other comprehensive loss

 

 

(19,991

)

 

 

(14,261

)

 

Total Parsons Corporation shareholders' equity

 

 

1,667,548

 

 

 

1,629,890

 

 

Noncontrolling interests

 

 

38,704

 

 

 

30,866

 

 

Total shareholders' equity

 

 

1,706,252

 

 

 

1,660,756

 

 

Total liabilities, redeemable common stock and shareholders' equity

 

$

3,451,182

 

 

$

3,450,368

 

 

The accompanying notes are an integral part of these consolidated financial statements.

1


PARSONS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, except per share information)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Revenue

 

$

979,459

 

 

$

989,742

 

 

$

1,950,452

 

 

$

1,894,147

 

Direct cost of contracts

 

 

749,324

 

 

 

784,723

 

 

 

1,518,956

 

 

 

1,498,960

 

Equity in earnings of unconsolidated joint ventures

 

 

3,769

 

 

 

11,634

 

 

 

9,883

 

 

 

22,031

 

Indirect, general and administrative expenses

 

 

187,640

 

 

 

225,359

 

 

 

371,414

 

 

 

402,878

 

Operating income (loss)

 

 

46,264

 

 

 

(8,706

)

 

 

69,965

 

 

 

14,340

 

Interest income

 

 

196

 

 

 

225

 

 

 

424

 

 

 

702

 

Interest expense

 

 

(4,159

)

 

 

(6,376

)

 

 

(8,181

)

 

 

(14,668

)

Other income (expense), net

 

 

715

 

 

 

1,506

 

 

 

263

 

 

 

1,547

 

Total other expense

 

 

(3,248

)

 

 

(4,645

)

 

 

(7,494

)

 

 

(12,419

)

Income (loss) before income tax expense

 

 

43,016

 

 

 

(13,351

)

 

 

62,471

 

 

 

1,921

 

Income tax (expense) benefit

 

 

(11,891

)

 

 

53,496

 

 

 

(16,975

)

 

 

51,610

 

Net income including noncontrolling interests

 

 

31,125

 

 

 

40,145

 

 

 

45,496

 

 

 

53,531

 

Net (income) loss attributable to noncontrolling interests

 

 

(7,826

)

 

 

114

 

 

 

(9,224

)

 

 

(3,531

)

Net income attributable to Parsons Corporation

 

$

23,299

 

 

$

40,259

 

 

$

36,272

 

 

$

50,000

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.23

 

 

$

0.44

 

 

$

0.36

 

 

$

0.59

 

Diluted

 

$

0.23

 

 

$

0.44

 

 

$

0.36

 

 

$

0.59

 

The accompanying notes are an integral part of these consolidated financial statements.

2


PARSONS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Net income including noncontrolling interests

 

$

31,125

 

 

$

40,145

 

 

$

45,496

 

 

$

53,531

 

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of tax

 

 

3,104

 

 

 

2,240

 

 

 

(5,696

)

 

 

4,787

 

Pension adjustments, net of tax

 

 

23

 

 

 

17

 

 

 

(38

)

 

 

26

 

Comprehensive income including noncontrolling interests, net of tax

 

 

34,252

 

 

 

42,402

 

 

 

39,762

 

 

 

58,344

 

Comprehensive (income) loss attributable to noncontrolling interests, net of tax

 

 

(7,830

)

 

 

114

 

 

 

(9,220

)

 

 

(3,531

)

Comprehensive income attributable to Parsons Corporation,

   net of tax

 

$

26,422

 

 

$

42,516

 

 

$

30,542

 

 

$

54,813

 

The accompanying notes are an integral part of these consolidated financial statements.

3


PARSONS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

For the Six Months Ended

 

 

 

 

June 30, 2020

 

 

June 30, 2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

45,496

 

 

$

53,531

 

 

Adjustments to reconcile net income to net cash used in operating activities

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

64,490

 

 

 

61,665

 

 

Amortization of debt issue costs

 

 

369

 

 

 

629

 

 

Gain on disposal of property and equipment

 

 

(43

)

 

 

(24

)

 

Provision for doubtful accounts

 

 

38

 

 

 

(866

)

 

Deferred taxes

 

 

325

 

 

 

(64,924

)

 

Foreign currency transaction gains and losses

 

 

1,185

 

 

 

(352

)

 

Equity in earnings of unconsolidated joint ventures

 

 

(9,883

)

 

 

(22,031

)

 

Return on investments in unconsolidated joint ventures

 

 

15,893

 

 

 

15,023

 

 

Stock-based compensation

 

 

6,432

 

 

 

-

 

 

Contributions of treasury stock

 

 

29,468

 

 

 

24,529

 

 

Changes in assets and liabilities, net of acquisitions and newly consolidated

   joint ventures:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(49,618

)

 

 

(97,450

)

 

Contract assets

 

 

(70,739

)

 

 

(50,842

)

 

Prepaid expenses and current assets

 

 

(999

)

 

 

(4,967

)

 

Accounts payable

 

 

(6,228

)

 

 

(4,517

)

 

Accrued expenses and other current liabilities

 

 

(21,983

)

 

 

17,763

 

 

Contract liabilities

 

 

(11,047

)

 

 

11,464

 

 

Income taxes

 

 

4,048

 

 

 

(7,223

)

 

Other long-term liabilities

 

 

(28,648

)

 

 

20,097

 

 

Net cash used in operating activities

 

 

(31,444

)

 

 

(48,495

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(22,938

)

 

 

(25,953

)

 

Proceeds from sale of property and equipment

 

 

943

 

 

 

1,873

 

 

Payments for acquisitions, net of cash acquired

 

 

-

 

 

 

(287,482

)

 

Investments in unconsolidated joint ventures

 

 

(3,844

)

 

 

(5,049

)

 

Return of investments in unconsolidated joint ventures

 

 

17

 

 

 

4,403

 

 

Net cash used in investing activities

 

 

(25,822

)

 

 

(312,208

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from borrowings

 

 

180,600

 

 

 

350,000

 

 

Repayments of borrowings

 

 

(180,600

)

 

 

(530,000

)

 

Payments for debt costs and credit agreement

 

 

-

 

 

 

(286

)

 

Contributions by noncontrolling interests

 

 

223

 

 

 

8,147

 

 

Distributions to noncontrolling interests

 

 

(1,605

)

 

 

(20,787

)

 

Purchase of treasury stock

 

 

-

 

 

 

(819

)

 

Taxes paid on vested stock

 

 

(1,149

)

 

 

-

 

 

Proceeds from issuance of common stock

 

 

1,684

 

 

 

537,331

 

 

Dividend paid

 

 

-

 

 

 

(52,093

)

 

Net cash (used in) provided by financing activities

 

 

(847

)

 

 

291,493

 

 

Effect of exchange rate changes

 

 

(641

)

 

 

(602

)

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

(58,754

)

 

 

(69,812

)

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

Beginning of year

 

 

195,374

 

 

 

281,195

 

 

End of period

 

$

136,620

 

 

$

211,383

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4


PARSONS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity (Deficit)

For the Three Months Ended June 30, 2020 and June 30, 2019

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

 

Accumulated

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Redeemable

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Earnings

 

 

Other

 

 

Parsons

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

Common

 

 

Treasury

 

 

Paid-in

 

 

(Accumulated

 

 

Comprehensive

 

 

Equity

 

 

Noncontrolling

 

 

 

 

 

 

 

Stock

 

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Deficit)

 

 

Income (Loss)

 

 

(Deficit)

 

 

Interests

 

 

Total

 

Balance at March 31, 2020

 

$

-

 

 

 

$

146,441

 

 

$

(934,240

)

 

$

2,652,227

 

 

$

(206,052

)

 

$

(23,114

)

 

$

1,635,262

 

 

$

32,117

 

 

$

1,667,379

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23,299

 

 

 

-

 

 

 

23,299

 

 

 

7,826

 

 

 

31,125

 

Foreign currency translation gain, net

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,100

 

 

 

3,100

 

 

 

4

 

 

 

3,104

 

Pension adjustments, net

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23

 

 

 

23

 

 

 

-

 

 

 

23

 

Contributions

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

2

 

Distributions

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,245

)

 

 

(1,245

)

Issuance of equity securities, net of retirements

 

 

-

 

 

 

 

55

 

 

 

-

 

 

 

1,629

 

 

 

-

 

 

 

-

 

 

 

1,684

 

 

 

-

 

 

 

1,684

 

Stock-based compensation

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

4,180

 

 

 

-

 

 

 

-

 

 

 

4,180

 

 

 

-