Crédit Agricole Annual Report 2022

FY2022 Annual Report · Crédit Agricole

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2022
ANNUAL REPORT

BUILD A BETTER WORLD

Arcosa is a provider of infrastructure-related
products and solutions with leading brands
serving construction, engineered structures,
and transportation markets.

FORWARD-LOOKING STATEMENTS
This document contains forward-looking
statements as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking
statements are subject to risks and uncertainties
that could cause actual results to differ materially
from such forward-looking statements. For more
information on these risks and uncertainties,
please refer to “Risk Factors” and the
“Forward-Looking Statements” section of
“Management’s Discussion and Analysis of
Financial Condition and Results of Operations”
of the Form 10-K included in this Annual Report.

NON-GAAP FINANCIAL MEASURES
This document contains financial measures that
have not been prepared in accordance with U.S.
generally accepted accounting principles
(“GAAP”). Reconciliations of non-GAAP financial
measures to the closest GAAP
measure are provided on pages 10-12.

WE MOVE
INFRASTRUCTURE
FORWARD

Our individual businesses have built reputations
for quality, service, and operational excellence
over decades. Arcosa serves a broad spectrum of
infrastructure-related markets and is strategically
focused on driving organic and disciplined
acquisition growth to capitalize on the
fragmented nature of many of the industries
in which we operate.

With Arcosa’s current platform of businesses
and additional growth opportunities, we
are well aligned with key market trends,
such as the replacement and growth of
transportation infrastructure, the continued
shift to renewable power generation, and the
expansion of new transmission, distribution, and
telecommunications infrastructure.

ARCOSA BY THE NUMBERS
Year Ended 12.31.2022

$2.2B

Revenues

$99M

Net Income1

$325M

Adjusted EBITDA

5,230

Employees

85+

Years Operating

(1) Excludes the pre-tax gain on the sale of our

storage tanks business of $189M, which is also
excluded from Adjusted EBITDA. As reported,
net income for the full year 2022 was $245M.

OUR THREE BUSINESS SEGMENTS

CONSTRUCTION
PRODUCTS

ENGINEERED
STRUCTURES

TRANSPORTATION
PRODUCTS

PG. 01 | 2022 ANNUAL REPORT

DEAR FELLOW SHAREHOLDERS

2022 marked another successful year for Arcosa
as we further advanced our strategic objectives
and generated strong financial performance.
I am proud of the entire Arcosa team for adeptly
navigating a challenging operating environment,
which included persistent inflationary pressures,
weather disruptions, and demand constraints in both
our wind tower and barge businesses. Our resilient
performance speaks to our culture of teamwork, our
shared commitment to effectively serve our customers,
and our ongoing efforts to improve operational
efficiency. We also achieved important progress on our
Environmental, Social and Governance (ESG) journey,
reflecting our commitment to building a robust ESG
program that enhances value for all stakeholders.

STRATEGIC PROGRESS
Over the past several years, we have endeavored
to transform Arcosa into a less cyclical and more
resilient company. Acquisitions remain a key element
in expanding our growth businesses, and last year we
added another strategically valuable asset with the
purchase of RAMCO, a Los Angeles-based recycled
aggregates producer. This acquisition strengthened our
industry-leading recycled aggregates operations and
complemented our existing footprint and customer
base in the California market. With the addition
of RAMCO, our natural and recycled aggregates
businesses today serve 12 of the top 50 metropolitan
statistical areas in the U.S., up from just five in 2018.
As we look ahead, we intend to pursue additional
acquisition opportunities that enable us to build an
aggregates-centric portfolio that can generate higher
returns through the economic cycle.

We remain committed to driving organic growth
throughout our operations, and I am pleased with our
accomplishments last year. Among several growth
projects underway, we are expanding our specialty
materials plaster plant in Oklahoma and broke ground
on a concrete pole manufacturing plant in Florida to
support our utility structures business. Both of these
projects are expected to generate strong returns,
demonstrating our ability to identify and execute on
attractive opportunities within our existing markets.

We also advanced our strategic transformation by
optimizing and simplifying our portfolio. In October,
we effectively monetized a non-core asset by divesting
our storage tanks business for $275 million. Aside
from simplification of our overall story, this transaction
strengthened the balance sheet and enabled us to
repay us to repay our revolver, provided strategic
capital for future disciplined capital allocation, and
realized significant value for shareholders.

FINANCIAL HIGHLIGHTS FOR 2022
We reported strong financial results in 2022. Excluding
the fourth-quarter impact of the storage tanks
business, revenue increased 14% to $2.24 billion
and Adjusted EBITDA grew 19% to $325 million. We
achieved revenue growth in all three of our business
segments even as we faced continued cyclical softness
in our wind tower and barge businesses. Reflecting
our focus on generating operational efficiencies
and mitigating inflationary pressures, consolidated
Adjusted EBITDA Margin was 14.5%, an increase of
70 basis points from the prior year.

In our Construction Products segment, revenue grew
16% and Adjusted Segment EBITDA expanded 11%,
driven by healthy market fundamentals, particularly
in the surface transportation and non-residential
construction sectors. Our disciplined pricing strategy,
as well as contributions from acquisitions, supported
strong results in this segment.

In our Engineered Structures segment, revenue
increased 7% while Adjusted Segment EBITDA climbed
19%, reflecting strong growth in our utility structures
business as electric utilities continued to invest in
hardening and upgrading the electrical grid. Although
the expiration of the federal tax credit supporting wind
energy reduced our wind tower production volume in
2022, we managed our wind operations effectively and
maintained manufacturing flexibility in preparation for a
market recovery.

Our Transportation Products segment revenue grew
4% and Adjusted Segment EBITDA improved 13%,
reflecting solid growth in our steel components
business and improved production efficiencies in our
barge business.

PG. 02 | 2022 ANNUAL REPORT

14%

Consolidated
Revenue Growth

19%

Consolidated Adjusted
EBITDA growth

Barge production was lower compared to the prior
year as overall demand remained constrained for 2022
due to elevated steel prices. To address dislocation in
market prices for steel, we engineered a new barge
design available for sale toward the end of the year that
substitutes lower-priced hot rolled coil steel for plate
steel. We were encouraged that this innovation, which
provided meaningful cost savings to our customers,
spurred higher orders for barges in the fourth quarter.
In addition, it provides us increased flexibility as steel
market dynamics shift.

We finished 2022 with a very strong balance sheet
and ample liquidity to facilitate our disciplined
capital allocation strategy. Our Net Debt to Adjusted
EBITDA ratio was 1.2x at the end of the fourth quarter,
representing the lowest such level since 2020, as we
allocated a portion of the proceeds from the sale of the
storage tanks business to repay our revolver. We ended
the year with $160 million in cash and no material near-
term debt maturities, providing the flexibility to pursue
attractive acquisition opportunities and fund organic
projects that can accelerate our growth and enhance
our market positioning.

OUR ESG COMMITMENT
Arcosa has been strongly committed to corporate
responsibility, integrating ESG initiatives into our
strategic planning, giving back to the communities in
which we operate, and building a corporate culture that
values ESG. In 2022, we continued to make progress
on our safety culture and we established a goal of
10% reduction in Scopes 1 and 2 emissions intensity
by the end of 2026. Our Annual Sustainability Report,
which we plan to publish in the second quarter of 2023,
will highlight our many accomplishments in
2022 that advanced our progress from the prior
year and demonstrates our commitment to building
a better world.

LOOKING FORWARD
Fiscal 2023 represents an important transition period
for Arcosa, as we navigate an uncertain economic
environment and manage our cyclical businesses in
preparation for an expected stronger recovery in 2024.
Within our growth businesses, we anticipate continued
expansion in 2023, aided by favorable pricing,
healthy market demand, and tailwinds from increased
government spending on infrastructure projects.

PG. 03 | 2022 ANNUAL REPORT

In our cyclical businesses, we expect gradually
improving fundamentals as the year progresses. The
passage of the Inflation Reduction Act last August
has reinvigorated demand in the wind energy market,
enabling us to build our backlog to drive earnings in
2024 and beyond. With wind tower demand likely
to remain strong for some time, we are working
closely with our customers to ensure our production
capabilities are aligned with their needs. Meanwhile,
increased order activity in our barge business enables
us to ramp production throughout the year, and we are
preparing now for the possibility of stronger customer
demand in 2024 given the long-overdue hopper barge
replacement cycle.

IN CLOSING
As we look forward, I am enthusiastic about our
future. This is an exciting time for Arcosa, and we are
moving forward with energy and purpose to deliver
on our objectives. Our growth businesses remain
well-positioned for continued solid performance and
our cyclical businesses are poised for what we believe
will be a strong, multi-year upcycle. With the strategic
actions we have taken over the past several years, we
have achieved significant progress in transforming
our business and enhancing our resilience to drive
sustainable long-term growth.

Thank you for your continued confidence and support.

Very truly yours,

ANTONIO CARRILLO
President and
Chief Executive Officer
March 28, 2023

LONG-TERM STRATEGY

AS WE GROW OUR BUSINESS, WE EXPAND OUR POSITIVE IMPACT

GROW
in attractive
markets where we
can achieve sustainable
competitive advantages

REDUCE
the complexity and
cyclicality of the
overall business

IMPROVE
long-term returns
on invested capital

INTEGRATE
Environmental, Social,
and Governance
(ESG) initiatives into
our long-term strategy

VISION

VALUES

WE ADVANCE A SAFETY-FOCUSED AND ESG-DRIVEN CULTURE

UNIFIED IN OUR
COMMITMENT TO
BUILD A BETTER
WORLD

We are committed: innovative, focused, results-oriented

We act with integrity: principled, honest, fair

We make things happen: agile, driven, passionate

We win together: collaborative, dedicated, united

PROMISE

At ARCOSA:

we activate the potential of our people

we care for our customers

we optimize operations

we integrate sustainability into our daily practices as well as our long-term strategy

we promote a results-driven culture that is aligned with long-term value creation

PG. 04 | 2022 ANNUAL REPORT

SUSTAINABILITY

Laying the foundation for a more sustainable future

PEOPLE
Community Impact
Employee Health and Safety
Inclusion and Diversity
Talent Development

PRODUCTS
Product Quality and Safety
Product Use
Supplier Management

ENVIRONMENT
Air Quality
Energy Management
GHG Emissions
Land Management
Recycled Materials
Waste Management
Water Management

GOVERNANCE
Business Ethics
Cybersecurity

OUR PRODUCTS ARE USED IN ESSENTIAL, ENVIRONMENTALLY FRIENDLY INDUSTRIES

We produce wind towers to support our
customers’ advancement of North America’s
wind energy infrastructure.

We build barges for the fuel-saving and
efficient movement of commodities across
the country’s inland and coastal waterways.

Recycled aggregates provides an alternative
to using natural resources by recycling concrete,
asphalt, steel, and asphalt shingles, which also
minimizes landfill use and reduces roadway
traffic and vehicle emissions.

We provide more detail regarding our goals
and initiatives in our most recent Sustainability
Report located on our website, www.arcosa.com/
sustainability, including disclosures aligned with
the Task Force on Climate-related Financial
Disclosures (TCFD) and industry-specific
Sustainability Accounting Standards Board
(SASB) reported metrics.

Utility structures manufactures
engineered, tubular, lattice steel structures,
and pre-stressed concrete poles for electricity
transmission and distribution from wind, solar,
and other environmentally friendly resources.

Steel components manufactures railcar
components for the fuel-saving and
efficient movement of commodities
across the country.

PG. 05 | 2022 ANNUAL REPORT

CONSTRUCTION
PRODUCTS

OUR CONSTRUCTION PRODUCTS segment provides
products that are used in various areas of construction
activity, including infrastructure, residential, non-residential,
and specialty/other end markets. As the United States
continues to experience population growth and replace
its aging infrastructure, we believe our businesses are well
positioned to benefit from this activity. Additionally, our
products are used in a variety of other markets,
including certain agricultural and energy markets.

$924M

2022 Revenues

PRIMARY PRODUCTS
> Natural and recycled aggregates

> Specialty materials, including

lightweight aggregates and plaster

> Trench shields and shoring products

PRIMARY MARKETS SERVED
> Infrastructure, including road, bridge,

and other public products

> Residential construction

> Non-residential construction

> Agriculture

> Specialty building products

> Underground construction

NATURAL & RECYCLED AGGREGATES

SPECIALTY MATERIALS

CONSTRUCTION SITE SUPPORT

PG. 06 | 2022 ANNUAL REPORT

ENGINEERED
STRUCTURES

OUR ENGINEERED STRUCTURES segment serves
a broad spectrum of infrastructure markets, including
electricity transmission and distribution, wind power
generation, highway road construction, and wireless
communication. We believe we are well positioned to
benefit from significant upgrades in the electrical grid to
support enhanced reliability; policy changes encouraging
more generation from renewable energy sources;
the expansion of new transmission, distribution, and
telecommunication infrastructure; and the replacement and
growth of the U.S. highway and road system.

$1,002M

2022 Revenues

PRIMARY PRODUCTS
> Utility structures

> Wind towers

> Traffic and lighting structures

> Telecommunication structures

> Storage and distribution tanks1

PRIMARY MARKETS SERVED
> Electricity transmission and distribution

> Wind power generation

> Highway road construction

> Wireless communication

> Gas and liquids storage and

transportation for residential, commercial,
agriculture, and industrial markets1

UTILITY & RELATED STRUCTURES

WIND TOWERS

STORAGE TANKS1

(1) In October 2022, we completed the sale of
our storage tanks business. We recognized
$189M in revenues from our storage tanks
business during 2022.

PG. 07 | 2022 ANNUAL REPORT

TRANSPORTATION
PRODUCTS

OUR TRANSPORTATION PRODUCTS segment consists

of established companies that supply manufactured

steel products to the transportation industry. These

transportation products serve a wide variety of markets,

including the transportation of commodities such as

grain, coal, aggregates, chemicals, fertilizers,

petrochemicals, and refined products.

PRIMARY PRODUCTS
> Inland barges

> Fiberglass barge covers, winches,

and other components

> Axles and couplers for railcars

and locomotives

> Industrial and military castings and

forged products

$317M 2022 Revenues

PRIMARY MARKETS SERVED
Transportation products serving
numerous markets, including:
> Agriculture/food products

> Refined products

> Chemicals

> Upstream oil

> Railcar manufacturers and
maintenance operations

BARGES

MARINE COMPONENTS

STEEL COMPONENTS

PG. 08 | 2022 ANNUAL REPORT

LEADERSHIP

BUILDING WHAT MATTERS MEANS SETTING HIGH STANDARDS

BOARD OF DIRECTORS

SENIOR MANAGEMENT

ANTONIO CARRILLO
President and Chief Executive Officer

GAIL M. PECK
Chief Financial Officer

KERRY S. COLE
Group President

JESSE E. COLLINS, JR.
Group President

REID S. ESSL
Group President

BRYAN P. STEVENSON
Chief Legal Officer

MARY E. HENDERSON
SVP, Corporate Administration

SUZANNE M. MYERS
Chief Human Resources Officer

JOSEPH ALVARADO
Former Chairman and Chief Executive Officer,
Commercial Metals Company

RHYS J. BEST
Chairman (Non-Executive) of the Board of
Directors, Arcosa, Inc.

ANTONIO CARRILLO
President and Chief Executive Officer, Arcosa, Inc.

JEFFREY A. CRAIG
Former Executive Chairman, Meritor, Inc.

STEVEN J. DEMETRIOU
Executive Chair of Jacobs Solutions Inc.

RONALD J. GAFFORD
Retired Chairman, Chief Executive Officer, and
President, Austin Industries, Inc.

JOHN W. LINDSAY
Chief Executive Officer, President, and Director,
Helmerich & Payne, Inc.

KIMBERLY S. LUBEL
Former Chairman, President, and Chief Executive
Officer, CST Brands, Inc.

JULIE A. PIGGOTT
Retired Executive Vice President and
Chief Financial Officer, BNSF Railway Company

MELANIE M. TRENT
Former EVP, General Counsel, and Chief
Administrative Officer, Rowan Companies PLC

PG. 09 | 2022 ANNUAL REPORT

ARCOSA, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in millions)
(unaudited)

CONSOLIDATED ADJUSTED EBITDA

“EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA
adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not define EBITDA or Adjusted
EBITDA and they should not be considered as alternatives to earnings measures defined by GAAP, including net income. We use
Adjusted EBITDA to assess the operating performance of our consolidated business, as a metric for incentive-based compensation, as
a measure within our lending arrangements, and as a basis for strategic planning and forecasting as we believe that it closely correlates
to long-term shareholder value. As a widely used metric by analysts, investors, and competitors in our industry, we believe Adjusted
EBITDA also assists investors in comparing a company’s performance on a consistent basis without regard to depreciation, depletion,
amortization, and other items which can vary significantly depending on many factors. “Adjusted EBITDA Margin” is defined as
Adjusted EBITDA divided by Revenues.

Revenues

Net income

Add:

Interest expense, net

Provision for income taxes

Depreciation, depletion, and amortization expense(1)

EBITDA

Add (less):

Gain on sale of storage tanks business

Impact of acquisition and divestiture-related expenses(2)
Impairment charge

Legal settlement

Other, net (income) expense(3)

Adjusted EBITDA

Adjusted EBITDA Margin

Year Ended
December 31,

2022

2021

$2,242.8

$2,036.4

245.8

69.6

29.9

70.4

154.1

500.2

(189.0)

11.0
—

—

2.9
$325.1

14.5%

23.4

14.0

144.3

251.3

—

20.1
2.9

8.7

0.3
$283.3

13.9%

(1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments.
(2) Expenses associated with acquisitions, including the cost impact of the fair value markup of acquired inventory, advisory

and professional fees; integration; and other transaction costs.

(3) Included in Other, net (income) expense was the impact of foreign currency exchange transactions of $3.3 million and

$0.6 million for the years ended December 31, 2022 and 2021, respectively.

PG. 10 | 2022 ANNUAL REPORT

ARCOSA, INC.

ADJUSTED SEGMENT EBITDA

“Segment EBITDA” is defined as segment operating profit plus depreciation, depletion, and amortization. “Adjusted Segment EBITDA”
is defined as Segment EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does
not define Segment EBITDA or Adjusted Segment EBITDA and they should not be considered as alternatives to earnings measures
defined by GAAP, including segment operating profit. We use Adjusted Segment EBITDA to assess the operating performance of our
businesses, as a metric for incentive-based compensation, and as a basis for strategic planning and forecasting as we believe that it
closely correlates to long-term shareholder value. As a widely used metric by analysts, investors, and competitors in our industry we
believe Adjusted Segment EBITDA also assists investors in comparing a company’s performance on a consistent basis without regard
to depreciation, depletion, amortization, and other items, which can vary significantly depending on many factors. “Adjusted Segment
EBITDA Margin” is defined as Adjusted Segment EBITDA divided by Revenues.

Construction Products
Revenues

Operating Profit

Add: Depreciation, depletion, and amortization expense(1)

Segment EBITDA

Add: Impact of acquisition and divestiture-related expenses(2)

Adjusted Segment EBITDA

Adjusted Segment EBITDA Margin

Engineered Structures
Revenues

Operating Profit

Add: Depreciation and amortization expense(1)

Segment EBITDA

Add: Impact of acquisition and divestiture-related expenses(2)

Add: Impairment charge

Less: Gain on sale of storage tanks business

Adjusted Segment EBITDA

Adjusted Segment EBITDA Margin

Transportation Products
Revenues

Operating Profit

Add: Depreciation and amortization expense

Segment EBITDA

Adjusted Segment EBITDA

Adjusted Segment EBITDA Margin

Operating Loss – Corporate

Add: Impact of acquisition and divestiture-related expenses – Corporate(2)

Add: Legal settlement

Add: Corporate depreciation expense

Adjusted EBITDA

Year Ended
December 31,

2022

2021

$923.5

$796.8

96.5

102.7

199.2

—

$199.2

21.6%

83.2

88.7

171.9

7.6

$179.5

22.5%

$1,002.0

$934.1

307.0

30.5

337.5

0.6

—

(189.0)

$149.1

14.9%

88.0

33.1

121.1

1.0

2.9

—

$125.0

13.4%

$317.3

$305.6

11.5

15.8

27.3

$27.3

8.6%

6.4

17.8

24.2

$24.2

7.9%

$(66.0)

$(70.3)

10.4

—

5.1

11.5

8.7

4.7

$325.1

$283.3

and professional fees; integration; and other transaction costs.

PG. 11 | 2022 ANNUAL REPORT

ARCOSA, INC.

NET DEBT TO ADJUSTED EBITDA

GAAP does not define “Net Debt” and it should not be considered as an alternative to cash flow or liquidity measures defined by
GAAP. The Company uses Net Debt, which it defines as total debt minus cash and cash equivalents to determine the extent to which
the Company’s outstanding debt obligations would be satisfied by its cash and cash equivalents on hand. The Company also uses
“Net Debt to Adjusted EBITDA”, which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months as a metric
of its current leverage position. We present this metric for the convenience of investors who use such metrics in their analysis and for
shareholders who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.

Total debt excluding debt issuance costs

Cash and cash equivalents

Net Debt

Adjusted EBITDA (trailing twelve months) (1)

Net Debt to Adjusted EBITDA

(1) Adjusted EBITDA includes a five-month pro forma adjustment of $4.0 million based on Adjusted EBITDA

for RAMCO of $9.6 million for the twelve months ended February 28, 2022.

December 31,
2022

$555.9

160.4
$395.5

$329.1

1.2

STORAGE TANKS ADJUSTED EBITDA

Operating Profit

Add: Depreciation and amortization expense

Storage tanks EBITDA

Add: Impact of acquisition and divestiture-related expenses

Less: Gain on sale of storage tanks business

Three Months Ended
December 31,

Year Ended
December 31,

2022

2021

2022

2021

$189.3

$9.8

$230.1

$36.8

0.1

189.4

—

(189.0)

1.7

11.5

—

5.2

235.3

0.6

(189.0)

7.3

44.1

—

Storage tanks Adjusted EBITDA

$0.4

$11.5

$46.9

$44.1

PG. 12 | 2022 ANNUAL REPORT

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K

(Mark One)
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended DECEMBER 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-38494

Arcosa, Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

82-5339416
(I.R.S. Employer Identification No.)

500 N. Akard Street, Suite 400
Dallas, Texas
(Address of principal executive offices)

75201
(Zip Code)

Registrant's telephone number, including area code: (972) 942-6500
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common Stock ($0.01 par value)

Trading Symbol(s)
ACA

Name of each exchange on which registered
New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Securities registered Pursuant to Section 12(g) of the Act: None

Yes þ No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ¨ No þ

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 þ 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 þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a
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 þ 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 has filed a report on and attestation to its management's assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C 7262(b))
by the registered public accounting firm that prepared or issued its audit report. þ

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of

the registrant included in the filing reflect the correction of an error to previously issued financial statements. ¨

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of
incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period
pursuant to §240.10D-1(b). ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No þ

The aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to the
price at which the common equity was last sold as of the last business day of the registrant's most recently completed
second fiscal quarter (June 30, 2022) was $2.2 billion.

At January 13, 2023 the number of shares of common stock outstanding was 48,441,548.

DOCUMENTS INCORPORATED BY REFERENCE

The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference from the

registrant's definitive 2023 Proxy Statement.

ARCOSA, INC.

FORM 10-K

TABLE OF CONTENTS

Caption

Page

PART I

Item 1. Business .........................................................................................................................................................
Item 1A. Risk Factors ................................................................................................................................................
Item 1B. Unresolved Staff Comments ....................................................................................................................
Item 2. Properties .......................................................................................................................................................
Item 3. Legal Proceedings ........................................................................................................................................
Item 4. Mine Safety Disclosures ..............................................................................................................................

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities .....................................................................................................................................................
Item 6. Reserved ........................................................................................................................................................
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations ............
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ..............................................................
Item 8. Financial Statements and Supplementary Data ......................................................................................
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ...........
Item 9A. Controls and Procedures ..........................................................................................................................
Item 9B. Other Information .......................................................................................................................................
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections ..............................................

PART III

Item 10. Directors, Executive Officers and Corporate Governance ...................................................................
Item 11. Executive Compensation ...........................................................................................................................
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters .........................................................................................................................................................................
Item 13. Certain Relationships and Related Transactions, and Director Independence ................................
Item 14. Principal Accountant Fees and Services ................................................................................................

PART IV

Item 15. Exhibits and Financial Statement Schedules .........................................................................................
Item 16. Form 10-K Summary ..................................................................................................................................

91
94

Item 1. Business.

PART I

General Description of Business. Arcosa, Inc. and its consolidated subsidiaries, (“Arcosa,” “Company,” “we,” or
“our”) headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading
brands serving construction, engineered structures, and transportation markets in North America. Our individual
businesses have built reputations for quality, service, and operational excellence over decades. Arcosa serves a
broad spectrum of infrastructure-related markets and is strategically focused on driving organic and disciplined
acquisition growth to capitalize on the fragmented nature of many of the industries in which we operate. With
Arcosa’s current platform of businesses and additional growth opportunities, we are well-aligned with key market
trends, such as the replacement and growth of aging transportation infrastructure, the continued shift to renewable
power generation, and the expansion of new transmission, distribution, and telecommunications infrastructure. Our
businesses support critical infrastructure sectors and our plants have continued to operate throughout the
COVID-19 pandemic.

Arcosa is a Delaware corporation and was incorporated in 2018 in connection with the separation (the
“Separation”) of Arcosa from Trinity Industries, Inc. (“Trinity” or “Former Parent”) on November 1, 2018 as an
independent, publicly-traded company, listed on the New York Stock Exchange.

Our principal executive offices are located at 500 N. Akard Street, Suite 400, Dallas, Texas 75201. Our telephone
number is 972-942-6500, and our Internet website address is www.arcosa.com. We make available free of charge
on our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
any amendments thereto, as soon as reasonably practicable after such material is filed with, or furnished to, the
Securities and Exchange Commission (“SEC”). Information on our Investor Relations page and on our website is
not part of this Annual Report on Form 10-K or any of our other securities filings unless specifically incorporated
herein by reference.

Long-Term Vision. We are united in our shared purpose to fulfill the four pillars of our long-term vision.

Overview. Arcosa's three segments are made up of leading businesses that serve critical infrastructure markets:

(1) On October 3, 2022, the Company completed the sale of its storage tanks business.

Our Segments. The Company reports operating results in three principal business segments. For additional
information regarding revenues, operating profit, and identifiable assets by segment, please refer to Note 4 to the
Consolidated Financial Statements.

Construction Products.

Products

Through wholly owned subsidiaries, our Construction Products segment produces and sells natural and recycled
aggregates, specialty materials, and construction site support equipment, including trench shields and shoring
products. See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for
revenues attributable to aggregates and specialty materials.

•

Natural Aggregates: We are an established producer and distributor of natural aggregates serving both
public infrastructure and private construction markets and operate in Texas, our largest geographic
exposure, and 8 other states. We manage the business from the four regions of Texas (including Arkansas
and Oklahoma), the Ohio River Valley, the Gulf Coast, and the West. We operate primarily from open pit
quarries and have one underground mine. Our natural aggregates products include sand, gravel, limestone,
stabilized material, and various other products used in the production of ready mixed concrete, cement, and
other precast concrete products, roads, municipal and private water, sewer and drainage projects, oil and
gas well pads, wind farms, as well as various other building products.

During 2021, we expanded our natural aggregates platform through two large acquisitions. In April 2021, we
completed the acquisition of StonePoint Ultimate Holding, LLC and affiliated entities (collectively
“StonePoint”), a top 25 U.S. construction aggregates company, which expanded our footprint in Texas and
the Gulf Coast and provided entry into new geographic markets in Tennessee and the Ohio River Valley. In
August 2021, we completed the acquisition of Southwest Rock Products, LLC and affiliated entities
(collectively “Southwest Rock”), a leading Arizona pure-play aggregates producer, which provided scaled
entry into the Phoenix metropolitan area.

Recycled Aggregates: Recycled aggregates are a complement to our natural aggregates platform and are
produced by crushing concrete reclaimed from demolished highways, buildings, and other structures. The
raw product material is processed to remove steel, rebar, shingles, and other debris, and screened to
appropriate sizes for use as a road base, erosion control, for building foundations, and as a backfill for utility
trenches. Recycled aggregates currently supply a small percentage of total aggregates supplied nationwide.
We believe the supply of recycled aggregates will continue to grow in use due to resource scarcity and
associated ESG benefits, reduced disposal and acceptance of concrete in landfills, and energy savings
from less processing and transportation costs. Recycled aggregates are a substitute to natural aggregates,
primarily for hard rock uses.

During 2022, we expanded our recycled aggregates platform, which is largely Texas based, through the
acquisition of Recycled Aggregate Materials Company, Inc. (“RAMCO”) with operations in the Los Angeles
metropolitan area.

Specialty Materials: Our specialty materials, including lightweight aggregates, select natural aggregates,
and milled or processed specialty building products and agricultural products, are produced and distributed
nationwide. We currently operate in ten states and British Columbia, with several of our production facilities
operating at the quarries that produce the raw material inputs, which include shale, clay, limestone, and
gypsum. Lightweight aggregates are select shales or clays that are expanded and hardened by high
temperatures in a rotary kiln and possess a bulk density that can be less than half that of natural
aggregates. Product applications include structural lightweight concrete, lightweight masonry block, and
road surface treatments. Our specialty building products and agricultural products are processed at several
production facilities across the U.S., mostly using our natural aggregates as a component of raw material
supply. Product applications include plasters, prills, agricultural supplements and fertilizers, paints, flooring,
glass, ingredients for food and feed, cement, energy infrastructure, and other products.

Construction Site Support: We hold a strong market position in the manufacture of trench shields and
shoring products for the U.S. construction industry. Trench shields and shoring products are used for water
and sewer construction, utility installations, manhole work, oil and gas pipeline construction, and other
underground applications. Additionally, we participate in certain regional rental markets for trench shoring
equipment.

Markets

Over a multi-year horizon, we believe that approximately half of our current portfolio of construction materials are
used in infrastructure projects. The other half of our construction materials demand is split across residential, non-
residential, and specialty/other end markets.

•

Infrastructure Construction: Infrastructure construction includes construction spending by federal, state,
and local governments for roads, highways, bridges, airports, and other public infrastructure, as well as
private spending on road and utility construction. Public infrastructure spending is typically supported by
federal and state legislation and programs. On December 4, 2015, the Fixing America's Surface
Transportation Act (“FAST Act”) was signed into law. The FAST Act authorized $305 billion of public
infrastructure funding from 2016 to 2020. It was subsequently extended to provide an additional $13.6
billion in 2021. On November 15, 2021, the Infrastructure Investment and Jobs Act (“IIJA”) was signed into
law, which provides approximately $350 billion for federal highway programs from 2022 through 2026 by
extending many of the programs in the FAST Act at higher funding levels, as well as supplemental funding
for roads, bridges, and other major projects. Most of this funding is apportioned to states, based on
formulas specified in the IIJA and provides funding through a wide range of competitive grant programs.

Residential Construction: Residential construction includes single family homes and multi-family units
such as apartments and condominiums. Demand for residential construction is influenced primarily by
population growth, new household formation, and mortgage interest rates.

Non-Residential Construction: Non-residential construction includes a wide variety of privately financed
construction including manufacturing and distribution facilities, industrial complexes, office buildings, and
large retailers and wholesalers. Demand for non-residential construction is driven primarily by population
and economic growth, in addition to segment-specific factors such as the growth of e-commerce, changes
in retail patterns, changes in office occupancy trends, and numerous other factors.

Specialty/Other: Our products are used in various other end markets including energy-related activities
such as drilling pads, roads and major downstream projects, agriculture/horticulture, and industrial uses.

In 2022, we had shipments of approximately 37 million tons of aggregates and specialty materials, including
approximately 4 million tons of recycled aggregates. Texas is our largest geographic market, representing
approximately 45% of the segment's revenues in 2022. All other states each are less than 10% of segment
revenues. Within Texas, we primarily serve the Texas Triangle formed by the Dallas-Fort Worth metro at its northern
point in North Texas; the Houston metro at its southeastern edge on the Gulf Coast; and Austin-San Antonio at its
western tip in Central Texas. The outlook for construction spending in Texas is favorable with 2023 fiscal year
planned Texas Department of Transportation (“TxDOT”) lettings of approximately $8.8 billion. In 2022, TxDOT
released its 10-year Unified Transportation Program identifying a record $85 billion of infrastructure projects, an
increase of $10 billion from the prior year. Population and household formation growth have contributed to a strong
residential housing market in recent years, however the recent rise in interest rates has caused a near term slow
down, with housing permits, an indication of future construction activity, down approximately 1% in Texas in 2022
compared to the previous year. Non-residential construction activity, while currently negatively impacted by supply
chain delays incited by the COVID-19 pandemic, generally follows a strong residential construction cycle on a
lagged basis.

Customers and Competitors

For natural and recycled aggregates and specialty materials, our customers include concrete producers;
commercial, residential, highway, and general contractors; manufacturers of masonry and building products; and
state and local governments.

Shipments of natural and recycled aggregates from an individual quarry or stationary crushing location are
generally limited in geographic scope because the cost of transportation to customers is high relative to the value of
the product itself. Where practical, we have operations located close to our local markets and, in certain locations,
offer portable crushing services at a job site for re-use onsite. Proximity of our active quarries, stationary crushing
locations, and strategic reserves to demand centers serve as barriers to entry.

The U.S. aggregates industry is a highly fragmented industry with more than 5,000 producers nationwide. We
compete, in most cases, with natural and recycled aggregates producers in the regions where we operate. Many
opportunities for consolidation exist. Therefore, companies in the industry tend to grow by acquiring existing
facilities to extend their current market positions or enter new markets.

Our specialty materials products enjoy higher barriers to entry than our natural aggregates due to specific mineral
properties, specialized manufacturing, or additional processing. Due to the added value in processing, specialty
materials have a much wider, multi-state distribution area due to their higher value relative to their distribution costs
as compared to natural and recycled aggregates. We compete with specialty materials producers nationwide.

For trench shields and shoring products, our customers are equipment rental dealers and commercial, residential,

and industrial contractors. We compete with shoring products manufacturers nationwide.

Raw Material and Suppliers

The primary raw material for our natural aggregates and specialty materials comes from quarries. Natural
aggregates and specialty materials can be found throughout the U.S. We have a proven and successful record of
securing long-term reserve positions for both current and future mine locations through our employment of
exploration teams and the use of professional third parties. Our reserves are critical to our raw material supply and
long-term success. We currently estimate that we have 1.2 billion tons of proven and probable natural aggregates
and specialty materials reserves strategically located in favorable markets that are expected to require large
amounts of aggregates to meet future construction demand. For further discussion of our natural aggregates and
specialty materials reserves, please refer to Item 2. “Properties.”

Recycled aggregates are not dependent on reserves and the primary raw material is demolished concrete which
is processed into recycled aggregates. We source raw material both internally and externally primarily from
demolition and road removal projects. We control a portion of our raw material needs through demolition services
that we provide and source the remainder in competitive markets from third parties. Due to increasing landfill
scarcity the acceptance of demolished concrete may be restricted, increasing the availability of raw product at our
crushing locations. In addition, in certain markets, we are paid a fee to accept raw product. Our operating permits
which allow recycling activities and the strategic location of our stationary crushing sites are competitive
advantages.

Engineered Structures.

Products

Through wholly owned subsidiaries, our Engineered Structures segment primarily manufactures and sells steel
structures for infrastructure businesses, including utility structures for electricity transmission and distribution,
structural wind towers, traffic structures, and telecommunication structures. These products share similar
manufacturing competencies and steel sourcing requirements and can be manufactured across our North American
footprint. This segment also historically manufactured and sold storage and distribution tanks. See Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” for revenues attributable
to our Engineered Structures products.

•

Utility Structures: We are a well-established manufacturer in the U.S. and Mexico of engineered steel
utility structures, including tapered steel and lattice structures, for electricity transmission and distribution.
We also manufacture pre-stressed concrete poles for utility, lighting, transportation, and telecommunications
markets. In 2022, we began construction of a new concrete pole plant in Florida to serve increased grid
hardening and renewable energy investment.

• Wind Towers: We are one of the leading manufacturers of structural wind towers in the U.S. and Mexico

with plants strategically located in wind-rich regions of North America.

•

Traffic Structures: We manufacture steel traffic structures for use on the U.S. highway and road system
primarily serving Florida and adjacent states. Our products include overhead steel sign structures, tolling
gantry structures, mast and sign arms, and other custom solutions. We have one dedicated manufacturing
plant in Florida and have the capability to manufacture traffic structures in our other Engineered Structures
plants.

Telecommunication Structures: We manufacture telecom structures, including self-supporting lattice
towers, monopole towers, and guyed towers. We have one manufacturing plant in Oklahoma and have the
capability to manufacture telecom structures in our other Engineered Structures plants.

In October 2022, we completed the sale of our storage tanks business.

Markets

Our Engineered Structures segment serves a broad spectrum of infrastructure markets, including electricity
transmission and distribution, wind power generation, highway road construction, and wireless communication. We
believe we are well-positioned to benefit from significant upgrades in the electrical grid to support enhanced
reliability, policy changes encouraging more generation from renewable energy sources, the expansion of new
transmission, distribution, and telecommunication infrastructure, and the replacement and growth of the U.S.
highway and road system.

Our utility structures business is well-positioned to benefit from significant investment in utility infrastructure. There
is strong demand for transmission and distribution structures across the U.S. as much of the utility infrastructure has
aged and needs replacement. Global concerns regarding emissions have increased consumer demand for
electricity. Upgrades to utility structures are needed to support larger equipment that is required to withstand
growing load demand and to allow for connectivity of the grid to renewable energy sources. The IIJA, enacted in
November 2021, provides $73 billion in additional federal funding to support the investment needed in the U.S.
power grid.

We believe we are well-positioned to benefit from healthy public infrastructure spending in Florida and adjacent
states and have opportunities to grow organically into new geographies as well. Additionally, we expect to benefit
from continued spending on the buildout of 5G and other wireless networks in North America. We anticipate that the
IIJA will be supportive for these businesses as well due to the increased level of highway spending and the
provision for $65 billion in additional federal funding for broadband infrastructure.

Demand for new wind energy projects in the U.S. has been supported by the Renewable Electricity Production
Tax Credit (“PTC”) that was first introduced in 1992, providing a tax credit for electricity produced at each qualifying
wind project. Since inception, the PTC has undergone numerous extensions and received varying levels of
legislative support, contributing to volatility in the demand for new wind energy installations. Following a multi-year
extension in 2015 and a series of annual extensions in 2020 and 2021, the PTC expired at the end of 2021 creating
a lapse in support for new wind farm projects beginning in 2022. In August 2022, the Inflation Reduction Act (“IRA”)
passed, providing a long-term extension of the PTC for new wind farm projects and introduced a new advanced
manufacturing tax credit for companies that domestically manufacture and sell clean energy equipment in the U.S.
from 2023 to 2032. The wind industry is currently awaiting finalization of the IRA's tax credit rules from the Internal
Revenue Service (“IRS”). Subject to further clarification from the IRS, we believe these tax incentives provide a
significant multi-year catalyst for our wind towers business. Together with the increased cost competitiveness of
wind energy, state renewable fuel mandates, and increasing business acceptance of long-term decarbonization
goals, we believe we are well-positioned to benefit from these wind energy incentives.

Customers and Competitors

Through our recognized brands in our utility structures business, we have developed strong relationships with our
primary customers, public and private utilities. We compete with both domestic and foreign manufacturers on the
basis of product quality, engineering expertise, customer service, and on-time delivery of the product. Sales to our
customers, particularly certain large utility customers, are often made through alliance contracts that can extend
several years. We also sell into the competitive-bid market, whereby the lowest bidder is awarded the contract,
provided all other qualifying criteria are met.

Within our wind towers business, our primary customers are wind turbine producers. We compete with both
domestic and foreign producers of towers. Revenues from GE Renewable Energy (“GE”) included in our
Engineered Structures segment constituted 9.3%, 9.5%, and 15.3% of consolidated revenues for the years ended
December 31, 2022, 2021, and 2020, respectively.

Our traffic structures business primarily sells to individual state Departments of Transportation and highway

contractors typically in a competitive-bid market.

Our telecom structures business sells to wireless communication carriers and third-party tower lessors and

developers.

Raw Materials and Suppliers

The principal material used in our Engineered Structures segment is steel. During 2022, the supply of steel was
sufficient to support our manufacturing requirements. Overall steel prices began to rise sharply in late 2020,
reaching record levels in 2021. While hot rolled coil prices normalized to more historic levels during 2022, plate steel
prices reached new highs before moderating somewhat but remain elevated. Steel prices may be volatile in the
future in part as a result of market conditions. We use contract-specific purchasing practices, existing supplier
commitments, contractual price escalation provisions, flexing between steel type, and other arrangements with our
customers to mitigate the effect of steel price volatility on our operating profit for the year. Arcosa’s manufacturing
operations also use component parts such as flanges for wind towers. In general, we believe there is enough
capacity in the supply industries to meet current production levels without any material impacts. We anticipate our
existing contracts and other relationships with multiple suppliers will meet our current production forecasts.

Transportation Products.

Products

Through wholly owned subsidiaries, our Transportation Products segment manufactures and sells inland barges,
fiberglass barge covers, winches, marine hardware, and steel components for railcars and other transportation and
industrial equipment. See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” for revenues attributable to inland barges and steel components products.

•

Inland Barges: We have a leading position in the U.S. market for the manufacture of inland barges and
fiberglass barge covers. We manufacture a variety of hopper barges, tank barges, deck barges, and
fiberglass covers, and provide a full line of deck hardware to the marine industry, including hatches,
castings, and winches for barges, towboats, and dock facilities. Dry cargo barges transport various
commodities, such as grain, coal, and aggregates. Tank barges transport liquids, including refined products,
chemicals, and a variety of petroleum products. Deck barges are used for transportation of heavy, oversized
cargo and construction support. Our fiberglass reinforced lift covers are used primarily for grain barges.

Steel Components: We are a recognized manufacturer of steel components for railcars and other
transportation equipment. We manufacture axles, circular forgings, and coupling devices for freight, tank,
locomotive, and passenger rail transportation equipment, as well as other industrial uses, and provide cast
components for use in the industrial and mining sectors.

Markets

Our Transportation Products segment consists of established companies that supply manufactured steel products

to the transportation industry.

Our inland barge business serves numerous end-markets through a base of established customers who support
the transportation of staple commodities such as grain, coal, aggregates, chemicals, fertilizers, petrochemicals, and
refined products. Despite recent declines, the dry and liquid barge replacement cycles are expected to remain
fundamentally strong as investments in the aging barge fleet over the last 5 to 6 years have been below long-term
average replacement rates (with the exception of 2019 for liquid barges). Approximately 35% of the hopper fleet and
25% of the tank fleet are more than 20 years old. The replacement of these fleets is expected to drive healthy
demand based on an assumed 25 to 30-year useful life. In the dry barge industry, scrapping has exceeded new
builds every year since 2016 suggesting a strong deferred replacement cycle that we expect will be supported by a
recovery in agriculture once plate steel prices normalize after increasing sharply over the last two years. The liquid
barge industry is poised to benefit from expected growth in the U.S. petrochemical industry and difficulty in new
pipeline permitting and construction.

Our steel component business primarily serves the North American railcar industry, both the new car and
maintenance markets, as well as various mining and industrial markets. Demand for steel components is increasing
relative to cyclical lows in 2020 and 2021 as the outlook for the new railcar market has improved and reflects a
stable level of replacement demand.

Customers and Competitors

Our barge manufacturing facilities are located along the U.S. inland river systems, which allows for rapid delivery
to our customers. Our inland barge customers are primarily commercial marine transportation companies, lessors,
and industrial shippers. While we compete with several other manufacturers in the U.S., we hold a majority share of
the inland barge manufacturing market. We believe we are well-positioned to benefit from the expected fleet
replacement cycle in both dry and liquid barges.

Our customers for our steel components businesses are primarily freight and passenger railcar manufacturers,
rail maintenance and repair facilities, railroads, steel mills, and mining equipment manufacturers. We compete with
both domestic and foreign manufacturers.

Raw Materials and Suppliers

The principal material used in our Transportation Products segment is steel. During 2022, the supply of steel was
sufficient to support our manufacturing requirements. Overall steel prices began to rise sharply in late 2020,
reaching record levels in 2021. While hot rolled coil prices normalized to more historic levels during 2022, plate steel
prices reached new highs before moderating somewhat but remain elevated. Steel prices may be volatile in the
future in part as a result of market conditions. We use contract-specific purchasing practices, existing supplier
commitments, contractual price escalation provisions, flexing between steel type, and other arrangements with our
customers to mitigate the effect of steel price volatility on our operating profit for the year. Arcosa’s manufacturing
operations also use component parts such as pumps, engines, and hardware for tank barges. In general, we
believe there is enough capacity in the supply industries to meet current production levels without any material
impacts. We anticipate our existing contracts and other relationships with multiple suppliers will meet our current
production forecasts.

Unsatisfied Performance Obligations (Backlog). As of December 31, 2022 and 2021, our backlog of firm

orders was as follows:

December 31,
2022

December 31,
2021

(in millions)

Engineered Structures:
Utility, wind, and related structures ........................................................... $
Storage tanks(1)
............................................................................................ $

671.3 $

— $

437.5

22.0

Transportation Products:
Inland barges ................................................................................................ $

225.1 $

92.7

(1) On October 3, 2022, the Company completed the sale of its storage tanks business and its related backlog.

Approximately 57% of the unsatisfied performance obligations for our utility, wind, and related structures in our
Engineered Structures segment are expected to be delivered during the year ending 2023, 24% expected to be
delivered during the year ending 2024, with the remainder expected to be delivered during the year ending 2025. All
of the unsatisfied performance obligations for inland barges in our Transportation Products segment are expected to
be delivered during the year ending 2023.

Marketing. We sell substantially all of our products and services through our own sales personnel operating from
offices in multiple locations in the U.S. and Mexico. We also use independent sales representatives and distributors.

Human Capital. The Company employed approximately 5,230 employees as of December 31, 2022. The

following table presents the approximate headcount breakdown of employees by segment:

Construction Products ...........................................................................................................................
Engineered Structures ...........................................................................................................................
Transportation Products ........................................................................................................................
Corporate .................................................................................................................................................

December 31,
2022

1,860
2,365
900
105
5,230

As of December 31, 2022, approximately 4,125 employees were employed in the U.S., 1,090 employees in

Mexico, and 15 employees in Canada.

The decrease in employee headcount from December 31, 2021 to December 31, 2022 was largely due to the

sale of the storage tanks business.

Employee Health and Safety.

Arcosa is committed to safety across our operations. Our highest priority is the health and safety of our
employees. We strive to continuously improve our procedures, processes, and management systems with regard to
employee health and safety. These efforts are achieved by promoting safe work practices among employees and
contractors and maintaining property and equipment in safe operating conditions. In furtherance of Arcosa’s
commitment to improving our safety performance, the Company achieved improvements in certain safety metrics
during 2022.

In 2019, we launched a reenergized safety initiative, ARC 100, to build a positive and proactively engaged culture
of safety excellence. ARC 100 is inspired by the voices of frontline employees, driven by cross-functional teams,
and actively supported by visible commitment from senior leaders. During 2022, Arcosa experienced progress in
reducing severity and frequency of safety incidents as a result of a continued focus on building a strong safety
culture through its ARC 100 safety initiative.

The outbreak and continuance of the COVID-19 pandemic has highlighted the critical importance of focusing on
the health and wellness of our employees. As an essential business, we have followed the federal, state, and local
guidelines governing our facilities and shared best practices across the organization with the goal of protecting our
employees. In 2022, Arcosa continued to monitor and implement safeguards, guidelines, and best practices for
COVID-19 mitigation procedures.

Diversity and Inclusion.

Arcosa values diversity and inclusion within its workforce and is committed to a work environment which promotes
professionalism and inclusiveness. One of Arcosa’s core values is “We Win Together”. This belief drives our
commitment to a workplace free from discrimination where collaboration, dedication, and unity align to drive
favorable results for all stakeholders.

Talent Attraction and Management.

Arcosa believes that its future success is highly dependent upon the Company’s continued ability to attract, retain,
and motivate qualified employees. As part of the Company’s effort to attract and motivate employees, Arcosa offers
competitive compensation and benefits, including healthcare and retirement benefits, parental and family leave, and
holiday and paid time off.

In 2022, Arcosa launched LEAD: Leadership Exploration and Development. This formal employee development
program was created to help identify internal talent, provide skill and competency growth opportunities, and build a
deep bench of emerging leaders at the Company.

Arcosa fosters employee development through a variety of leadership and training programs, like LEAD, as well
as tuition reimbursement at education institutions, professional society memberships, and relevant conference and
symposia attendance.

Seasonality. Results in our Construction Products segment are affected by seasonal fluctuations with the second

and third quarters historically being the quarters with the highest revenues.

Intellectual Property. Arcosa owns several patents, trademarks, copyrights, trade secrets, and licenses to
intellectual property owned by others. Although Arcosa’s intellectual property rights are important to Arcosa’s
success, we do not regard our business as being dependent on any single patent, trademark, copyright, trade
secret, or license. For a discussion of risks related to our intellectual property, please refer to Item 1A. “Risk Factors
- Risks Related to our Business and Operations.”

Governmental Regulation.

Construction Products. Arcosa’s Construction Products segment is subject to regulation by the U.S. Mine Safety
and Health Administration (“MSHA”), the Health-Safety and Reclamation Code of Ministry of Mines for British
Columbia, and various state agencies, and certain specialty materials are regulated by the U.S. Food and Drug
Administration (“FDA”).

Engineered Structures. Arcosa’s Engineered Structures segment is subject to the regulations by the U.S.
Department of Transportation (“USDOT”) and various state agencies, including state departments of transportation.
These agencies promulgate and enforce rules and regulations pertaining, in part, to the manufacture of tanks that
are used in the storage, transportation and transport arrangement, and distribution of regulated and non-regulated
substances.

Transportation Products. The primary regulatory and industry authorities involved in the regulation of the inland
barge industry are the U.S. Coast Guard, the U.S. National Transportation Safety Board, the U.S. Customs Service,
the Maritime Administration of the USDOT, and private industry organizations such as the American Bureau of
Shipping. These organizations establish safety criteria, investigate vessel accidents, and recommend improved
safety standards.

Our steel components businesses that serve the railcar industry are regulated by governmental agencies such as
the USDOT and the administrative agencies it oversees, including the Federal Railroad Administration, and industry
authorities such as the Association of American Railroads. All such agencies and authorities promulgate rules,
regulations, specifications, and operating standards affecting rail-related safety standards for railroad equipment.

Occupational Safety and Health Administration and Similar Regulations. In addition to the regulations
described above, our operations are subject to regulation of health and safety matters by the U.S. Occupational
Safety and Health Administration (“OSHA”) and, within our Construction Products segment, MSHA. We believe that
we employ appropriate precautions to protect our employees and others from workplace injuries and harmful
exposure to materials handled and managed at our facilities. However, claims that may be asserted against Arcosa
for work-related illnesses or injury and the further adoption of occupational and mine safety and health regulations in
the U.S. or in foreign jurisdictions in which we operate could increase our operating costs. While we do not
anticipate having to make material expenditures in order to remain in substantial compliance with health and safety
laws and regulations, we are unable to predict the ultimate cost of compliance.

International Regulations. We ship raw materials to Mexico and manufacture products in Mexico that are sold in
the U.S. or elsewhere, which are subject to customs and other regulations. In addition, we are subject to other
governmental regulations and authorities in Mexico and other countries where we conduct business that regulate
products manufactured, sold, or used in those countries.

Environmental, Health, and Safety. We are subject to federal, state, and international environmental, health,
and safety laws and regulations in the U.S., Mexico, and each country in which we operate, including the U.S.
Environmental Protection Agency (“USEPA”). These include laws regulating air emissions, water discharge,
hazardous materials, and waste management. We have an environmental management structure designed to
facilitate and support our compliance with these requirements globally. Although it is our intent to comply with all
such requirements and regulations, we cannot provide assurance that we are at all times in compliance.
Environmental requirements are complex, change frequently, and have tended to become more stringent over time.
Accordingly, we cannot assure that environmental requirements will not change or become more stringent over time
or that our eventual environmental costs and liabilities will not be material.

Certain environmental laws assess liability on current or previous owners or operators of real property for the cost
of removal or remediation of hazardous substances. At this time, we are involved in various stages of investigation
and cleanup related to environmental remediation matters at certain of our facilities. In addition, there may be soil or
groundwater contamination at several of our properties resulting from historical, ongoing, or nearby activities.

We cannot ensure that our eventual environmental remediation costs and liabilities will not exceed the amount of
our current reserves. In the event that such liabilities were to significantly exceed the amounts recorded, our results
of operations could be materially adversely affected. See “Critical Accounting Policies and Estimates” in Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 15 of the
Notes to Consolidated Financial Statements for further information regarding reserves for environmental matters.

See Item 1A for further discussion of risk factors with regard to environmental, governmental, and other matters.

Information About Our Executive Officers. The following table sets forth the names and ages of all our
executive officers, their positions and offices presently held by them, and the year each person first became an
officer.

Name

Antonio Carrillo

Gail M. Peck

Reid S. Essl

Kerry S. Cole

Jesse E. Collins, Jr.

Bryan P. Stevenson

Mary E. Henderson

Age

Office

President and Chief Executive Officer

Chief Financial Officer

Group President

Chief Legal Officer

Chief Accounting Officer

Officer
Since

2018

Antonio Carrillo serves as Arcosa’s President and Chief Executive Officer, as well as a member of its Board of
Directors. From April 2018 until the Separation, Mr. Carrillo served as the Senior Vice President and Group
President of Construction, Energy, Marine and Components of Trinity. From 2012 to February 2018, Mr. Carrillo
served as the Chief Executive Officer of Orbia Advance Corporation (formerly known as Mexichem S.A.B. de C.V.),
a publicly traded global specialty chemical company. Prior to joining Orbia, Mr. Carrillo spent 16 years at Trinity
where he served as Senior Vice President and Group President of Trinity’s Energy Equipment Group and was
responsible for Trinity’s Mexico operations. Mr. Carrillo previously served as a director of Trinity from 2014 until the
Separation in 2018 and served as a director of Dr. Pepper Snapple Group, Inc. from 2015 to 2018. Mr. Carrillo
currently serves as a director of NRG Energy, Inc. where he was appointed in 2019.

Gail M. Peck was appointed as Arcosa’s Chief Financial Officer in May 2021. Previously, she served as the Senior
Vice President, Finance and Treasurer at Arcosa. From 2010 until the Separation, Ms. Peck served as Vice
President, Finance and Treasurer of Trinity. From 2004 to 2009, she served as Vice President and Treasurer for
Centex Corporation, a diversified building company.

Reid S. Essl serves as a Group President at Arcosa. From 2016 until the Separation, Mr. Essl served as the
President of Trinity Construction Materials and from 2013 to 2016, Mr. Essl served as the Group Chief Financial
Officer of the Construction, Energy, Marine, and Components businesses of Trinity. In his 14 years at Trinity, Mr.
Essl held a variety of operational, financial, strategic planning, and business development positions.

Kerry S. Cole serves as a Group President at Arcosa. From 2016 until the Separation, Mr. Cole served as
President of Trinity Electrical Products which included oversight for the Trinity Structural Towers and Trinity Meyer
Utility Structures business units. Prior to this role, Mr. Cole served as President of Trinity Structural Towers business
unit from 2007 to 2016. From 2000 to 2007, he served in a variety of operations and manufacturing leadership
positions at Trinity spanning Mining and Construction Equipment, Heads, and Structural Bridge business units.

Jesse E. Collins, Jr. serves as a Group President at Arcosa. From 2016 until the Separation, Mr. Collins served as
the President of Trinity Parts and Components, which included McConway & Torley, Standard Forged Products, and
the business of McKees Rocks Forgings. From 2014 to 2016, he served as President of Trinity Cryogenics. From
2008 to 2013, Mr. Collins served as Executive Vice President and Chief Operating Officer at Broadwind Energy
serving wind energy, transportation, and infrastructure markets, prior to which he held various management and
executive positions at Trinity from 1993 to 2007.

Bryan P. Stevenson serves as the Chief Legal Officer at Arcosa. From 2015 until the Separation, Mr. Stevenson
was the Vice President, Associate General Counsel and Corporate Secretary for Trinity. Prior to joining Trinity, Mr.
Stevenson was Vice President, General Counsel and Secretary for CarParts, Inc. (formerly known as U.S. Auto
Parts Network, Inc.), an online provider of automotive parts, from 2011 to 2015.

Mary E. Henderson serves as the Chief Accounting Officer at Arcosa. From 2010 until the Separation, Ms.
Henderson served as Vice President and Chief Accounting Officer of Trinity. Ms. Henderson joined Trinity in 2003
and served in a variety of leadership positions including Corporate Controller, Assistant Corporate Controller, and
Director of External Reporting.

Item 1A. Risk Factors.

Arcosa's business, liquidity and financial condition, results of operations, and stock price may be impacted by a
number of factors. In addition to the factors discussed elsewhere in this report, the following risks and uncertainties
could materially harm its business, liquidity and financial condition, results of operations, or stock price, including
causing its actual results to differ materially from those projected in any forward-looking statements. The following
list of material risk factors is not all-inclusive or necessarily in order of importance. Additional risks and uncertainties
not presently known to Arcosa or that it currently deems immaterial also may materially adversely affect it in future
periods.

Risks Related to our Business and Operations.

The global COVID-19 pandemic and other similar outbreaks may adversely affect Arcosa’s business.

Arcosa’s business may be adversely affected if a pandemic or outbreak of an infectious disease occurs. For
example, the outbreak of COVID-19, including its variants, has disrupted global trade, commerce, financial and
credit markets, and daily life throughout the world. If federal, state, or local authorities determine that Arcosa’s
operations are non-essential or non-critical, or if one or more of Arcosa’s facilities become subject to governmental
ordered closure, voluntary temporary closure, closure from a COVID-19 outbreak within the facility, or closure for
other COVID-19 related reason, the business as a whole could be materially affected.

In addition, certain of Arcosa’s workers and operations are located in areas where travel and curfew restrictions or
other regulatory restrictions have or could be imposed with respect to the COVID-19 pandemic, such as Mexico.
Disruptions to Arcosa’s cross-border business transactions and activities caused by COVID-19 could materially
affect Arcosa’s business. The negative impact on the economy from the COVID-19 pandemic could cause
customers to postpone projects, cancel or delay orders, or file bankruptcy. The extent to which the COVID-19
pandemic and other similar outbreaks impact our business will depend on numerous evolving factors that we may
not be able to accurately predict.

Many of the industries in which Arcosa operates are subject to global market volatility and economic
cyclicality.

Instability in the global economy, negative conditions in the global credit markets, volatility in the industries that
Arcosa’s products serve, fluctuations in commodity prices, changes in legislative policy, adverse changes in the
availability of raw materials and supplies, or adverse changes in the liquidity and financial condition of Arcosa’s
customers could lead to a reduction in orders for Arcosa’s products and customers’ requests for deferred deliveries
of Arcosa’s backlog orders. Additionally, such events could result in Arcosa’s customers’ attempts to unilaterally
cancel or terminate firm contracts or orders in whole or in part resulting in contract or purchase order breaches
which could result in increased commercial litigation costs.

If volatile conditions in the global credit markets prevent our customers’ access to credit, product order volumes
may decrease, or customers may default on payments owed to Arcosa. Likewise, if Arcosa’s suppliers face
challenges obtaining credit, selling their products to customers that require purchasing credit, or otherwise operating
their businesses, the supply of materials Arcosa purchases from them to manufacture its products may be
interrupted.

Periodic downturns in economic conditions usually have a significant adverse effect on cyclical industries in which
Arcosa participates due to decreased demand for new and replacement products. Decreased demand could result
in lower sales volumes, lower prices, and/or a decline in or loss of profits. The barge industry in particular has
previously experienced sharp cyclical downturns and at such times operated with a minimal backlog. While the
business cycles of Arcosa’s different operations may not typically coincide, an economic downturn could affect
disparate cycles contemporaneously.

Any of the foregoing market or industry conditions or events could result in reductions in Arcosa’s revenues,

increased price competition, or increased operating costs.

Arcosa operates in highly competitive industries. Arcosa may not be able to sustain its market
positions, which may impact its financial results.

Arcosa faces intense competition in all geographic markets and each industry sector in which it operates. In
addition to price, Arcosa faces competition in respect to product performance and technological innovation,
substitution, quality, reliability of delivery, customer service, and other factors. The effects of this competition, which
is often intense, could reduce Arcosa’s revenues and operating profits, limit Arcosa’s ability to grow, increase pricing
pressure on Arcosa’s products, and otherwise affect Arcosa’s financial results.

Arcosa depends on its key management employees, and Arcosa may not be able to retain their services in
the future.

Arcosa’s success depends on the continued services of its executive team and key management employees,
none of whom currently have an employment agreement with Arcosa. Arcosa may not be able to retain the services
of its executives and key management in the future. The loss of the services of one or more executives or key
members of Arcosa’s management team, or Arcosa’s inability to successfully develop talent for succession planning,
could result in increased costs associated with attracting and retaining a replacement and could disrupt Arcosa’s
operations and result in a loss of revenues.

A material disruption at one or more of Arcosa’s manufacturing facilities or other facilities or in Arcosa’s
supply chain could have a material adverse effect on us.

Arcosa owns and operates manufacturing facilities of various ages and levels of automated control and relies on
a number of third parties as part of Arcosa’s supply chain, including for the efficient distribution of products to
Arcosa’s customers. Any disruption at one of Arcosa’s manufacturing facilities or within Arcosa’s supply chain could
prevent Arcosa from meeting demand or require Arcosa to incur unplanned capital expenditures. Older facilities are
generally less energy-efficient and are at an increased risk of breakdown or equipment failure, resulting in
unplanned downtime. Any unplanned downtime at Arcosa’s facilities, including due to a pandemic related shutdown
or work stoppage, may cause delays in meeting customer timelines, result in liquidated damages claims, or cause
Arcosa to lose or harm customer relationships.

Moreover, manufacturing facilities or other facilities can unexpectedly stop operating because of events unrelated
to Arcosa or beyond its control, including fires and other industrial accidents, floods and other severe weather
events, natural disasters, environmental incidents or other catastrophes, utility and transportation infrastructure
disruptions, shortages of raw materials, acts of war or terrorism, and a pandemic related shutdown or work
stoppage. Work stoppages, whether union-organized or not, can also disrupt operations at manufacturing facilities.

Furthermore, any shortages in trucking, rail, barge, or container shipping capacity, any increase in the cost
thereof, or any other disruption to those transportation systems, including due to a pandemic related shutdown or
work stoppage, could limit Arcosa’s ability to deliver its products in a timely manner or at all. Any material disruption
at one or more of Arcosa’s facilities or those of Arcosa’s customers or suppliers or otherwise within Arcosa’s supply
chain, whether as a result of downtime, facility damage, an inability to deliver Arcosa’s products or otherwise, could
prevent Arcosa from meeting demand, require Arcosa to incur unplanned capital expenditures, or cause other
material disruption to Arcosa’s operations, any of which could have a material adverse effect on Arcosa’s business.

Equipment failures or extensive damage to Arcosa’s facilities, including as might occur as a result of
natural disasters, could lead to production, delivery or service curtailments or shutdowns, loss of revenue
or higher expenses.

Arcosa operates a substantial amount of equipment at its production facilities, several of which are located in
areas that may experience adverse weather, including extreme temperatures, tornados, and hurricanes, or are
located on navigable waterways, subject to potential flooding and other excessive or low water conditions on one or
more rivers that serve Arcosa facilities. An interruption in operations at Arcosa’s facilities, as a result of equipment
or technology failure or acts of nature, including non-navigation orders, could reduce or prevent Arcosa’s production,
delivery, service, or repair of Arcosa’s products and increase Arcosa’s costs and expenses. A halt of production at
any of Arcosa’s manufacturing facilities could severely affect delivery times to Arcosa’s customers. While Arcosa
maintains emergency response and business recovery plans that are intended to allow Arcosa to recover from
natural disasters that could disrupt Arcosa’s business, Arcosa cannot provide assurances that its plans would fully
protect Arcosa from the effects of all such disasters. In addition, insurance may not adequately compensate Arcosa
for any losses incurred as a result of natural or other disasters, which may adversely affect Arcosa’s financial
condition. Any significant delay in deliveries not otherwise contractually mitigated by favorable force majeure or
other provisions could result in cancellation of all or a portion of Arcosa’s orders, cause Arcosa to lose future sales,
and negatively affect Arcosa’s reputation and Arcosa’s results of operations.

Delays in construction projects and any failure to manage Arcosa’s inventory could have a material adverse
effect on us.

Many of Arcosa’s products are used in large-scale construction projects which generally require a significant
amount of planning and preparation before construction commences. However, construction projects can be
delayed and rescheduled for a number of reasons, including unanticipated soil conditions, adverse weather or
flooding, changes in project priorities, financing issues, difficulties in complying with environmental and other
government regulations or obtaining permits, additional time required to acquire rights-of-way or property rights, and

a pandemic related shutdown or work stoppage. These delays may create unplanned downtime, increasing costs
and inefficiencies in Arcosa’s operations, and increased levels of obsolete inventory.

Additionally, Arcosa maintains an inventory of certain products that meet standard specifications and are
ultimately purchased by a variety of end users. Arcosa forecasts demand for these products to ensure that it keeps
sufficient inventory levels of certain products that Arcosa expects to be in high demand and limits its inventory for
which Arcosa does not expect much interest. However, Arcosa’s forecasts are not always accurate and unexpected
changes in demand for these products, whether because of a change in preferences or otherwise, can lead to
increased levels of obsolete inventory. Any delays in construction projects and Arcosa’s customers’ orders or any
inability to manage Arcosa’s inventory could have a material adverse effect.

The seasonality of Arcosa’s business and its susceptibility to severe and prolonged periods of adverse
weather and other conditions could have a material adverse effect on us.

Demand for Arcosa’s products in some markets is typically seasonal, with periods of snow or heavy rain
negatively affecting construction activity. For example, sales of Arcosa’s products are somewhat higher from spring
through autumn when construction activity is greatest. Construction activity declines in these markets during the
winter months in particular due to inclement weather, frozen ground, and fewer hours of daylight. Construction
activity and Arcosa's ability to deliver products on time or at all to its customers can also be affected in any period by
public holidays, vacation periods, and adverse weather conditions such as extreme temperature, hurricanes, severe
storms, torrential rains and floods, low river levels, natural disasters such as fires and earthquakes, a pandemic
related shutdown or work stoppage, and similar events, any of which could reduce demand for Arcosa’s products,
push back existing orders to later dates or lead to cancellations.

Additionally, the seasonal nature of Arcosa’s business has led to variation in Arcosa’s quarterly results in the past
and is expected to continue to do so in the future. This general seasonality of Arcosa’s business and any severe or
prolonged adverse weather conditions or other similar events could have a material adverse effect.

Risks related to Arcosa’s operations outside of the U.S., particularly Mexico, could decrease Arcosa’s
profitability.

Arcosa’s operations outside of the U.S. are subject to the risks associated with cross-border business
transactions and activities. Political, legal, trade, economic change or instability, criminal activities, or social unrest
could limit or curtail Arcosa’s respective foreign business activities and operations, including the ability to hire and
retain employees. Violence in Mexico associated with drug trafficking is continuing. Arcosa has not, to date, been
materially affected by any of these risks, but Arcosa cannot predict the likelihood of future effects from such risks or
any resulting adverse impact on Arcosa’s business. Arcosa ships raw materials to Mexico and manufactures
products in Mexico that are sold in the U.S. or elsewhere, which are subject to customs and other regulations and
the transportation and import of such products may be disrupted. Some foreign countries where Arcosa operates
have regulatory authorities that regulate products sold or used in those countries. If Arcosa fails to comply with the
applicable regulations related to the foreign countries where Arcosa operates, Arcosa may be unable to market and
sell its products in those countries or could be subject to administrative fines or penalties.

In addition, with respect to operations in Mexico and other foreign countries, unexpected changes in the political
environment, laws, rules, and regulatory requirements; tariffs and other trade barriers, including regulatory initiatives
for buying goods produced in America; more stringent or restrictive laws, rules and regulations relating to labor or
the environment; adverse tax consequences; price exchange controls and restrictions; regulations affecting cross-
border rail and vehicular traffic; or availability of commodities, including gasoline and electricity, could limit
operations affecting production throughput and making the manufacture and distribution of Arcosa’s products less
timely or more difficult.

Furthermore, any material change in the quotas, regulations or duties on imports imposed by the U.S.
government and agencies or on exports by the government of Mexico or its agencies, could affect Arcosa’s ability to
export products that Arcosa manufactures in Mexico. Failure to comply with such import and export regulations
could result in significant fines and penalties.

Because Arcosa has operations outside the U.S., Arcosa could be adversely affected by final judgments of non-
compliance with the U.S. Foreign Corrupt Practices Act of 1977 (“FCPA”) or import/export rules and regulations and
similar anti-corruption, anti-bribery, or import/export laws of other countries. As a result of our policy to comply with
the FCPA and similar anti-bribery laws, we may be at a competitive disadvantage to competitors that are not subject
to, or do not comply with, such laws.

Arcosa's margins may be affected as a result of inflation.

Arcosa's margins may be negatively impacted by increased costs resulting from inflationary pressures in the
market, including increased costs for fuel, energy, and steel. Under varying circumstances, Arcosa may take actions
to minimize these inflationary risks, but such efforts may not be effective in mitigating the impact on Arcosa's
margins.

Arcosa may incur increased costs due to fluctuations in interest rates and foreign currency exchange rates.

Arcosa is exposed to risks associated with fluctuations in interest rates and changes in foreign currency
exchange rates. Under varying circumstances, Arcosa may seek to minimize these risks using hedges and similar
financial instruments and other activities, although these measures, if and when implemented, may not be effective.
Any material and untimely changes in interest rates or exchange rates could adversely impact our business.

Fluctuations in the price and supply of raw materials and parts and components used in the production of
Arcosa’s products and the availability of natural aggregates, recycled aggregates, and specialty materials
reserves could have a material adverse effect on its ability to cost-effectively manufacture and sell its
products. In some instances, Arcosa relies on a limited number of suppliers for certain raw materials, parts,
and components needed in its production.

A significant portion of Arcosa’s business depends on the adequate supply of numerous specialty and other parts
and components at competitive prices. Arcosa’s manufacturing operations partially depend on Arcosa’s ability to
obtain timely deliveries of raw materials, parts, and components in acceptable quantities and quality from Arcosa’s
suppliers. Certain raw materials, parts, and components for Arcosa’s products are currently available from a limited
number of suppliers and, as a result, Arcosa may have limited control over pricing, availability, and delivery
schedules. If Arcosa is unable to purchase a sufficient quantity of raw materials, parts, and components on a timely
basis, Arcosa could face disruptions in its production and incur delays while Arcosa attempts to engage alternative
suppliers. Fewer suppliers could result from unimproved or worsening economic or commercial conditions,
potentially increasing Arcosa’s rejections for poor quality and requiring Arcosa to source unknown and distant supply
alternatives. Any such disruption or conditions could harm Arcosa’s business.

The principal material used in Arcosa’s manufacturing segments is steel. Market steel prices may exhibit periods
of volatility and increased steel prices could negatively impact demand for Arcosa's products like barges. Steel
prices may experience further volatility as a result of scrap surcharges assessed by steel mills, tariffs, and other
market factors. Arcosa may use contract-specific purchasing practices, supplier commitments, contractual price
escalation provisions, and other arrangements with Arcosa’s customers to mitigate the effect of this volatility on
Arcosa’s operating profits for the year. To the extent that Arcosa does not have such arrangements in place, a
change in steel prices could materially lower Arcosa’s profitability. In addition, meeting production demands is
dependent on Arcosa’s ability to obtain a sufficient amount of steel. An unanticipated interruption in Arcosa’s supply
chain could have an adverse impact on both Arcosa’s margins and production schedules.

A part of the operations in Arcosa’s Construction Products segment includes the mining of natural aggregates and
specialty materials reserves. The success and viability of these operations depend on the accuracy of Arcosa’s
reserve estimates, the costs of production and the ability to economically distribute the natural aggregates and
specialty materials. Estimates for natural aggregate and specialty materials reserves and for the costs of production
of such reserves depend upon a variety of factors and assumptions, many of which involve uncertainties beyond
Arcosa’s control, such as geological and mining conditions that may not be identifiable. In addition, Arcosa's
success in recovering natural aggregates and specialty materials depends on the ability to secure new reserve
locations and permits to mine such reserves in areas that make distribution of materials economically viable.
Community engagement and maintaining good relations within the communities that we operate is important to
retaining and securing permits. Inaccuracies in reserve estimates and production costs, and the inability to secure
locations and permits for future operations could negatively affect our results of operations. The success and
viability of Arcosa's recycled aggregates operation depends on Arcosa's success in procuring supply stock for
processing recycled materials into recycled aggregates. The inability to maintain and secure locations and permits
for recycled aggregates operations could negatively affect our results of operations.

Reductions in the availability of energy supplies or an increase in energy costs may increase Arcosa’s
operating costs.

Arcosa uses electricity and various gases, including natural gas, at Arcosa’s manufacturing facilities and uses
diesel fuel in vehicles to transport Arcosa’s products to customers and to operate its plant equipment. An outbreak
or escalation of hostilities between the U.S. and any foreign power or between other foreign powers, such as the
war in Ukraine, could result in a real or perceived shortage of petroleum and/or natural gas, which could result in an
increase in the cost of natural gas or energy in general. Extreme weather conditions and natural occurrences such

as extreme temperatures, hurricanes, tornadoes, and floods could result in varying states of disaster and a real or
perceived shortage of petroleum and/or natural gas, including rationing thereof, potentially resulting in unavailability
or an increase in natural gas prices, electricity prices, or other general energy costs. Speculative trading in energy
futures in the world markets could also result in an increase in natural gas and general energy cost. Future
limitations on the availability (including limitations imposed by increased regulation or restrictions on rail, road, and
pipeline transportation of energy supplies as well as other potential supply chain limitations) or consumption of
petroleum products and/or an increase in energy costs, particularly natural gas for plant operations and diesel fuel
for vehicles and plant equipment, could have an adverse effect upon our ability to conduct Arcosa’s business cost
effectively.

The inability to hire and retain skilled or professional labor could adversely impact Arcosa’s operations.

Arcosa depends on professional labor across its businesses and skilled labor in the manufacture, maintenance,
and repair of Arcosa’s products. Some of Arcosa’s facilities are located in areas where demand for skilled laborers
may exceed supply. If Arcosa is unable to hire and retain these skilled laborers, including welders, Arcosa may be
limited in its ability to maintain or increase production rates and could increase Arcosa’s labor costs.

Some of Arcosa’s employees belong to labor unions and strikes or work stoppages could adversely affect
Arcosa’s operations.

Arcosa is a party to collective bargaining agreements with various labor unions at some of Arcosa’s operations in
the U.S. and Canada and all of Arcosa’s operations in Mexico. Disputes with regard to the terms of these
agreements or Arcosa’s potential inability to negotiate acceptable contracts with these unions in the future could
result in, among other things, strikes, work stoppages, or other slowdowns by the affected workers and Arcosa
could experience a significant disruption of its operations and higher ongoing labor costs. In addition, Arcosa could
face higher labor costs in the future as a result of severance or other charges associated with lay-offs, shutdowns,
or reductions in the size and scope of its operations or difficulties of restarting Arcosa’s operations that have been
temporarily shuttered.

Potential expansion of our business may expose us to new business, regulatory, political, operational,
financial, and economic risks associated with such expansion, both inside and outside of the U.S.

Previously, we have expanded and plan in the future to expand our business and operations, and this expansion
may involve expansion into markets (either inside or outside the U.S.) in which we have limited operating
experience, including with respect to seeking regulatory approvals, becoming subject to regulatory authorities, and
marketing or selling products. Further, our operations in new foreign markets may be adversely affected by a
number of factors, including: general economic conditions and monetary and fiscal policy; financial risks, such as
longer payment cycles, difficulty in collecting from international customers, the effect of local and regional financial
crises, and exposure to foreign currency exchange rate fluctuations and controls; multiple, conflicting, and changing
laws and regulations such as export and import restrictions, employment laws, regulatory and local zoning
requirements, and other governmental approvals, permits, and licenses; interest rates and taxation laws and
policies; increased government regulation; social stability; and political, economic, or diplomatic developments.
Certain jurisdictions have, from time to time, experienced instances of civil unrest and hostilities, both internally and
with neighboring countries. Rioting, military activity, terrorist attacks, or armed hostilities could cause our operations
in such jurisdictions to be adversely affected or suspended. We generally do not have insurance for losses and
interruptions caused by terrorist attacks, military conflicts, and wars.

Any of these factors could significantly harm our potential business or international expansion and our operations.

The limited number of customers for certain of Arcosa’s products, the variable purchase patterns of
Arcosa’s customers in all of its segments, the impact of inflation on principal raw material prices, including
steel prices with respect to the order of new barges, and the timing of completion, delivery, and customer
acceptance of orders may cause Arcosa’s revenues and income from operations to vary substantially each
quarter, potentially resulting in significant fluctuations in its quarterly results.

Some of the markets Arcosa serves have a limited number of customers. The volumes purchased by customers
in each of Arcosa’s business segments vary from year to year, and not all customers make purchases every year.
Additionally, the inflationary pressures on principal raw material prices, like steel, may result in a delay in orders
from Arcosa's customers, including but not limited to, a customer's decision to place or delay orders for new barges
due to fluctuations in the price of steel. As a result, the order levels for Arcosa’s products have varied significantly
from quarterly period to quarterly period in the past and may continue to vary significantly in the future. Therefore,
Arcosa’s results of operations in any particular quarterly period may also vary. As a result of these quarterly
fluctuations, Arcosa believes that comparisons of its sales and operating results between quarterly periods may not
be meaningful and should not be relied upon as indicators of future performance.

The loss of revenues attributable to one of our customers could negatively impact our business.

GE Renewable Energy, a customer in our Engineered Structures segment, accounted for approximately 9.3% of
our consolidated revenues in 2022 down from 9.5% of consolidated revenues in 2021. The loss of revenues
attributable to this customer could have a material adverse effect on Arcosa's business.

Arcosa may not be able to successfully identify, consummate or integrate acquisitions, and acquisitions
may bring additional known and unknown risks to Arcosa’s business.

Arcosa expects to routinely engage in the search for growth opportunities, including assessment of merger and
acquisition prospects in new markets and/or products. However, Arcosa may not be able to identify and secure
suitable opportunities. Arcosa’s ability to consummate any acquisitions on terms that are favorable to Arcosa may
be limited by a number of factors, such as competition for attractive targets and, to the extent necessary, Arcosa’s
ability to obtain financing on satisfactory terms, if at all.

In addition, any merger or acquisition into which Arcosa may enter is subject to known and unknown risks of such
business, new lines of business, markets, downturn of such markets, and/or products and integrating such
business, regulatory compliance or zoning requirements, financial systems, markets, and/or products into Arcosa’s
businesses and culture. For example, the acquisitions of StonePoint and Southwest Rock brought new lines of
businesses to Arcosa, including asphalt production, and expose Arcosa to new geographic markets. The failure to
successfully integrate such mergers or acquisitions could prevent Arcosa from achieving the anticipated operating
and cost synergies or long-term strategic benefits from such transactions.

If Arcosa is not able to successfully integrate its transactions to any material degree, such failure of a successful
integration could result in unexpected claims or otherwise have a material adverse effect on Arcosa’s business.
Integration risks include the following: (i) the diversion of management’s time and resources to integration matters
from other Arcosa matters; (ii) difficulties in achieving business opportunities and growth prospects of the acquired
business; (iii) difficulties in managing the expanded operations; and (iv) challenges in retaining key personnel.

Acquisitions and divestitures bring risks that the counterparties to the transactions may fail to perform.

Certain acquisitions and divestitures may require Arcosa’s counterparties to indemnify Arcosa for certain
liabilities, including, but not limited to, certain liabilities related to product warranties. However, third parties could
also seek to hold Arcosa responsible for these liabilities that Arcosa’s counterparties agreed to provide
indemnification for, and there can be no assurance that the indemnity from these counterparties or any insurance
will be sufficient to protect Arcosa against the full amount of such potential liabilities, or that the counterparties will
be able to fully satisfy their indemnification obligations.

Acquisitions or divestitures may bring known and unknown risks to Arcosa, and Arcosa may fail to realize
all of the anticipated benefits of the acquisitions or divestitures or those benefits may be delayed.

Arcosa has grown through acquisitions. Arcosa’s anticipated benefits from acquisitions may not be realized. A
downturn in the new markets brought with acquisitions could have a disproportionate adverse impact on the
acquired company’s business. An element of Arcosa’s long-term strategy is to reduce the complexity and cyclicality
of the overall business, which may result in divestitures which have known and unknown risks. Some or all of
Arcosa’s anticipated benefits from any divestiture, like further simplification of Arcosa’s business, may not be
realized. If any of these divestiture-related risks occur, they could result in a material adverse effect on Arcosa’s
business.

Arcosa's indebtedness restricts its current and future operations, which could adversely affect its ability to
respond to changes in its business and manage its operations.

Arcosa is a party to the Amended and Restated Credit Agreement (the “Credit Agreement”), by and among
Arcosa, as borrower, and the lenders party thereto and the Indenture by and among Arcosa, certain of its
subsidiaries which are guarantors and the trustee (the "Indenture") pursuant to which $400 million of 4.375% senior
notes due 2029 (the "Senior Notes") (the Credit Agreement, Indenture, and Senior Notes, collectively, the “Financing
Documents”) were issued. The Financing Documents contain a number of covenants potentially restricting the
operations and financial condition of Arcosa and certain of its subsidiaries. These covenants could have an adverse
effect on Arcosa's business by limiting its ability to take advantage of financing, merger and acquisition, or other
opportunities. The breach of any of these covenants or restrictions could result in a default under the Financing
Documents.

For more information on the restrictive covenants in the Financing Documents and the Indenture, see “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital
Resources.” Arcosa's ability to comply with these agreements may be affected by events beyond its control,
including prevailing economic, financial, and industry conditions.

The phaseout of the London Interbank Offered Rate (LIBOR) and the replacement of LIBOR with a different
reference rate may have an adverse effect on Arcosa’s business.

The United Kingdom’s Financial Conduct Authority (the authority that regulates LIBOR) has announced that it
would phase out the most popular LIBOR indices by the end of June 2023. In the U.S., the Alternative Reference
Rates Committee has identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to
LIBOR. Arcosa’s revolving credit facility, term loan, and other financial instruments utilize LIBOR or an alternative
benchmark reference rate for calculating the applicable interest rate. Arcosa anticipates entering into an amendment
to its revolving credit facility, term loan, and other financial instruments to replace LIBOR with SOFR prior to the
completion of the LIBOR phase-out. This anticipated replacement may adversely affect interest rates and result in
higher borrowing costs. This could materially and adversely affect Arcosa’s business and ability to acquire debt
financing.

Our business is subject to significant regulatory compliance in the U.S., Mexico, and other countries where
we do business.

We are subject to various governmental regulations in the U.S., Mexico, and other countries where we do
business related to occupational safety and health, labor, and business practices. Failure to comply with current or
future regulations or operating permits could result in the imposition of substantial fines, suspension of production,
alterations of our production processes, cessation of operations, or other actions which could harm our business.

Although we believe that we are in material compliance with all applicable regulations and operating permits
material to our business operations, amendments to existing statutes and regulations, adoption of new statutes and
regulations, modification of existing operating permits, or entering into new lines of business could require us to
continually alter our methods of operation and/or discontinue the sale of certain of our products resulting in costs to
us that could be substantial. We may not be able, for financial or other reasons, to comply with applicable laws,
rules, regulations, and permit requirements. Our failure to comply with applicable laws, rules, regulations, or permit
requirements could subject us to civil remedies, including substantial fines, penalties, and injunctions, as well as
possible criminal sanctions, which would, if of significant magnitude, materially adversely impact our future
business. If the SEC’s proposed climate disclosure requirements are adopted on substantially similar terms as
proposed, we will be required to incur significant time and money to comply with the disclosure requirements and
may be required to modify certain of our operations. These compliance costs could adversely impact our future
business.

Violations of or changes in the regulatory requirements applicable to the industries in which Arcosa
operates or will operate may have a material adverse effect on Arcosa’s business.

Arcosa’s Transportation Products segment is subject to regulation by, among others, the U.S. Coast Guard; the
U.S. National Transportation Safety Board; the U.S. Customs Service; the Maritime Administration of the USDOT
and private industry organizations such as the American Bureau of Shipping and the Association of American
Railroads. These organizations establish safety criteria, investigate vessel accidents, and recommend improved
safety standards.

Arcosa’s Construction Products segment is subject to regulation by MSHA, USEPA, FDA, and various state

agencies.

Arcosa’s Engineered Structures segment is subject to the regulations by the USDOT and various state agencies,

including state departments of transportation.

Arcosa’s operations are also subject to regulation of health and safety matters by OSHA and MSHA. In addition,
our business is subject to additional regulatory requirements in Mexico and other countries where we conduct
business.

Future regulatory changes, new lines of business which are covered by regulatory agencies that Arcosa has not
previously been subject to, or the determination that Arcosa’s current or future products or processes are not in
compliance with applicable requirements, rules, regulations, specifications, standards or product testing criteria
might result in additional operating expenses, administrative fines or penalties, product recalls, reputational harm, or
loss of business that could have a material adverse effect on Arcosa’s business. For example, the U.S. barge
industry relies, in part, on the Jones Act, and changes to or a repeal of the legislation could have a material adverse
impact on Arcosa’s barge business and revenues. In addition, the impact of a government shutdown could have a
material adverse effect on Arcosa's revenues, profits, and cash flows. Arcosa relies on government personnel to
conduct certain routine business processes related to the inspection and delivery of certain products that, if
disrupted, could have an immediate impact on Arcosa's revenues and business.

Arcosa is subject to health and safety laws and regulations and any failure to comply with any current or
future laws or regulations could have a material adverse effect on us.

Manufacturing and construction sites are inherently dangerous workplaces. Arcosa’s manufacturing sites often
put Arcosa’s employees and others in close proximity with large pieces of mechanized equipment, moving vehicles,
chemical and manufacturing processes, heavy products and other items, and highly regulated materials. As a result,
Arcosa is subject to a variety of health and safety laws and regulations dealing with occupational health and safety.
Unsafe work sites have the potential to increase employee turnover and raise Arcosa’s operating costs. Arcosa’s
safety record can also impact Arcosa’s reputation. Arcosa maintains functional groups whose primary purpose is to
ensure Arcosa implements effective work procedures throughout Arcosa’s organization and take other steps to
ensure the health and safety of Arcosa’s work force, but there can be no assurances these measures will be
successful in preventing injuries or violations of health and safety laws and regulations. Any failure to maintain safe
work sites or violations of applicable health and safety standards and laws, including those related to COVID-19,
could expose Arcosa to significant financial losses and reputational harm, as well as civil and criminal liabilities, any
of which could have a material adverse effect on Arcosa’s business.

Arcosa has potential exposure to environmental liabilities that may increase costs and lower profitability.

Arcosa is subject to comprehensive federal, state, local, and foreign environmental laws and regulations relating
to: (i) the release or discharge of regulated materials into the environment at Arcosa’s facilities or with respect to
Arcosa’s products while in operation; (ii) the management, use, processing, handling, storage, transport and
transport arrangement, and disposal of hazardous and non-hazardous waste, substances, and materials; and (iii)
other activities relating to the protection of human health and the environment. Such laws and regulations expose
Arcosa to liability for its own acts and in certain instances potentially expose Arcosa to liability for the acts of others.
These laws and regulations also may impose liability on Arcosa currently under circumstances where at the time of
the action taken, Arcosa’s acts or those of others complied with then applicable laws and regulations. In addition,
such laws may require significant expenditures to achieve compliance, and are frequently modified or revised to
impose new obligations. Civil and criminal fines and penalties may be imposed for non-compliance with these
environmental laws and regulations. Arcosa’s operations involving hazardous materials also raise potential risks of
liability under common law.

Environmental operating permits are, or may be, required for Arcosa’s operations under these laws and
regulations. These operating permits are subject to modification, renewal, and revocation. Although Arcosa regularly
monitors and reviews its operations, procedures, and policies for compliance with Arcosa’s operating permits and
related laws and regulations, the risk of environmental liability is inherent in the operation of Arcosa’s businesses.

However, future events, such as changes in, or modified interpretations of, existing environmental laws and
regulations or enforcement policies, or further investigation or evaluation of the potential health hazards associated
with the manufacture of Arcosa’s products and related business activities and properties, may give rise to additional
compliance and other costs that could have a material adverse effect on Arcosa’s business. In 2021, Arcosa began
operating an underground limestone mine in Pennsylvania, which involves unique potential environmental and
safety risks and hazards inherent to underground mining operations. This may give rise to additional compliance
and other costs that could have a material adverse effect on Arcosa's business.

In addition to environmental laws, the transportation of commodities by rail, barge, or container raises potential
risks in the event of an accident that results in the release of an environmentally sensitive substance. Generally,
liability under existing laws for an accident depends upon causation analysis and the acts, errors, or omissions, if
any, of a party involved in the transportation activity, including, but not limited to, the shipper, the buyer, and the
seller of the substances being transported, or the manufacturer of the barge, container, or its components.
Additionally, the severity of injury or property damage arising from an incident may influence the causation
responsibility analysis, exposing Arcosa to potentially greater liability. Under certain circumstances, strict liability
concepts may apply. If Arcosa is found liable in any such incidents, it could have a material adverse effect on
Arcosa’s business.

Responding to claims relating to improper handling, transport, storage, or disposal of hazardous materials
could be time consuming and costly.

We use controlled hazardous materials in our business and generate wastes that are regulated as hazardous
wastes under U.S. federal, state, and local environmental laws and under equivalent provisions of law in those and
other jurisdictions in which our manufacturing facilities are located. Our use of these substances and materials is
subject to stringent, and periodically changing, regulation that can impose costly compliance obligations on us and
have the potential to adversely affect our manufacturing activities. We are also subject to potential liability for claims
alleging property damage and personal and bodily injury or death arising from the use of or exposure to our

products, especially in connection with products we manufacture that our customers use to transport or store
hazardous, flammable, toxic, or explosive materials.

The risk of accidental contamination or injury from these materials cannot be completely eliminated. If an accident
with these substances occurs, we could be held liable for any damages that result, as well as incurring clean-up
costs and liabilities, which can be substantial. Additionally, an accident could damage our facilities, resulting in
delays and increased costs.

Our manufacturing plants or other facilities may have unknown environmental conditions that could be
expensive and time-consuming to correct.

There can be no assurance that we will not encounter hazardous environmental conditions at any of our
manufacturing plants or other facilities that may require us to incur significant clean-up or correction costs. Upon
encountering a hazardous environmental condition or receiving a notice of a hazardous environmental condition, we
may be required to correct the condition. The presence of a hazardous environmental condition relating to any of
our manufacturing plants or other facilities may require significant expenditures to correct the environmental
condition.

Business, regulatory, and legal developments regarding climate change, and physical impacts from climate
change, could have an adverse effect on our business.

Legislation and new rules to regulate emission of greenhouse gases (“GHGs”) has been introduced in numerous
state legislatures, the U.S. Congress, and by the USEPA. Some of these proposals would require industries to meet
new standards that may require substantial reductions in carbon emissions. There is also a potential for climate
change legislation and regulation that could adversely impact the cost of certain manufacturing inputs, including the
increased cost of energy and electricity. While Arcosa cannot assess the direct impact of these or other potential
regulations, new climate change protocols could affect demand for its products and/or affect the price of materials,
input factors, energy costs, and manufactured components.

Potential impacts of climate change include physical impacts, such as disruption in production and product
distribution due to impacts from major storm events, shifts in regional weather patterns and intensities, and sea level
changes. Other adverse consequences of climate change could include an increased frequency of severe weather
events, low river levels, drought, flooding, and rising sea levels that could affect operations at Arcosa’s
manufacturing facilities as well as the price and/or availability of insurance coverage for the Company assets or
other unforeseen disruptions of Arcosa’s operations, systems, property, or equipment.

The impacts of climate change and related regulations on our operations and the Company overall are highly

uncertain and difficult to estimate, but such effects could be materially adverse to our business.

From time to time Arcosa may take tax positions that the Internal Revenue Service (“IRS”), the Servicio de
Administracion Tributaria (“SAT”) in Mexico, or other taxing jurisdictions may contest.

Our subsidiaries have in the past and may in the future take tax positions that the IRS, the SAT, or other taxing
jurisdictions may challenge. If the IRS, SAT, or other taxing jurisdictions successfully contests a tax position that
Arcosa takes, Arcosa may be required to pay additional taxes or fines which may not have been previously accrued
that may adversely affect its results of operations and financial position.

Some of Arcosa’s products are sold to contractors, distributors, installers, and rental companies who may
misuse, abuse, improperly install, or improperly or inadequately maintain or repair such products, thereby
potentially exposing Arcosa to claims that could increase Arcosa’s costs and weaken Arcosa’s liquidity and
financial condition.

The products Arcosa manufactures are designed to work optimally when properly assembled, operated, installed,
repaired, and maintained. When this does not occur, Arcosa may be subjected to claims or litigation associated with
personal or bodily injuries or death and property damage.

U.S. government actions relative to the federal budget, taxation policies, government expenditures, U.S.
borrowing/debt ceiling limits, and trade policies could adversely affect Arcosa’s business and operating
results.

Periods of impasse, deadlock, and last-minute accords may continue to permeate many aspects of U.S.
governance, including federal government budgeting and spending, taxation, U.S. deficit spending and debt ceiling
limits, and international commerce. Such periods could negatively impact U.S. domestic and global financial
markets, thereby reducing customer demand for Arcosa’s products and services and potentially result in reductions
in Arcosa’s revenues, increased price competition, or increased operating costs, any of which could adversely affect
Arcosa’s business.

For example, Arcosa produces many of its products at its manufacturing facilities in Mexico. Arcosa’s business
benefits from free trade agreements such as the United States-Mexico-Canada Agreement (“USMCA”). Potential
developments, including failure to enforce the USMCA, potential changes or amendments to the agreement,
governmental policies, and laws and regulations could adversely affect Arcosa’s existing production operations in
Mexico and have a material adverse effect on Arcosa’s business.

Some of Arcosa’s customers place orders for Arcosa’s products (i) in reliance on their ability to utilize tax
benefits or tax credits such as accelerated depreciation or the production tax credit for renewable energy or
(ii) to utilize federal-aid programs that allow for purchase price reimbursement or other government funding
or subsidies, any of which benefits, credits, or programs could be or are being delayed, discontinued or
allowed to expire without extension thereby reducing demand for certain of Arcosa’s products and
reducing certain tax credits for which Arcosa may be eligible.

There is no assurance that the U.S. government will reauthorize, modify, or otherwise not allow the expiration of
tax benefits, tax credits, subsidies, or federal-aid programs that may include funding of the purchase or purchase
price reimbursement of certain of Arcosa’s products. For example, the federal renewable electricity production tax
credit (the “PTC”) was previously allowed to expire, until it was restored as part of the Inflation Reduction Act of
2022 (the "IRA"). Additionally, § 45X of the IRA includes new Advanced Manufacturing Production (“AMP”) tax
credits for manufacturers of wind energy components, like Arcosa Wind Towers. Although the IRA was signed into
law in August 2022 the issuance of guidance and interpretation as to the eligibility for, calculation of, and methods
for claiming the IRA’s various tax benefits, tax credits, subsidies, and programs remains pending. In instances
where any benefits, credits, subsidies, or programs are allowed to expire or are otherwise delayed, modified or
discontinued, the demand for Arcosa’s products could decrease and reduce the amount of AMP tax credits for which
Arcosa may be eligible, thereby creating the potential for a material adverse effect on Arcosa’s business and could
result in non-cash impairments on long-lived assets, including intangible assets, and/or goodwill.

Arcosa’s business is based in part on government-funded infrastructure projects and building activities,
and any reductions or re-allocation of spending or related subsidies in these areas could have an adverse
effect on us.

Certain of Arcosa’s businesses depend on government spending for infrastructure and other similar building
activities. As a result, demand for some of Arcosa’s products is influenced by local, U.S. federal, and international
government fiscal policies, tax incentives and other subsidies, and other general macroeconomic and political
factors. Projects in which Arcosa participates may be funded directly by governments or privately-funded, but are
otherwise tied to or impacted by government policies and spending measures.

Government spending is often approved only on a short-term basis and some of the projects in which Arcosa’s
products are used require longer-term funding commitments. If government funding is not approved or funding is
lowered as a result of poor economic conditions, lower than expected revenues, competing spending priorities, or
other factors, it could limit infrastructure projects available, increase competition for projects, result in excess
inventory, and decrease sales, all of which could adversely affect the profitability of Arcosa’s business.

Additionally, certain regions or states may require or possess the means to finance only a limited number of large
infrastructure projects and periods of high demand may be followed by years of little to no activity. There can be no
assurances that governments will sustain or increase current infrastructure spending and tax incentive and other
subsidy levels, and any reductions thereto or delays therein could affect Arcosa’s business.

Arcosa’s manufacturer’s warranties expose Arcosa to product replacement and repair claims.

Depending on the product, Arcosa warrants its workmanship and certain materials (including surface coatings),
parts, and components pursuant to express limited contractual warranties. Arcosa may be subject to significant
warranty claims in the future, such as multiple claims based on one defect repeated throughout Arcosa’s production
process or claims for which the cost of shipping, repairing, or replacing the defective part, component, or material is
highly disproportionate to the original price. These types of warranty claims could result in significant costs
associated with product recalls or product shipping, repair, or replacement, and damage to Arcosa’s reputation.

Defects in materials and workmanship could harm our reputation, expose us to product warranty or product
liability claims, decrease demand for products, or materially harm existing or prospective customer
relationships.

A defect in materials or components from suppliers, our materials, or in the manufacturing of our products could
result in product warranty and product liability claims, decrease demand for products, or materially harm existing or
prospective customer relationships. These claims may require costly repairs or replacement and may include costs
related to disassembly of our products and transportation of the products from the field to our facilities and returning
the products to the customer, a change in our manufacturing processes, recall of previously manufactured products,

or personal injury claims, which could result in significant expense and materially harm our existing or prospective
customer relationships. Any of the foregoing could materially harm our business.

Insurance coverage could be costly, unavailable, or inadequate.

Arcosa is subject to potential liability for third-party claims alleging property damage and personal and bodily
injury or death arising from the use of or exposure to Arcosa’s products, especially in connection with products
Arcosa manufactures that Arcosa’s customers use to transport hazardous, flammable, toxic, or explosive materials.
Arcosa’s businesses are subject to losses arising from property damages or losses from business interruption. As
policies expire, premiums for renewed or new coverage may further increase and/or require that Arcosa increase its
self-insured retention, deductibles, or overall limits. Arcosa maintains primary coverage and excess coverage
policies for liability claims as well as property damage. An unusually large liability claim, property loss claim,
business interruption claim, or a string of claims coupled with an unusually large damage award could exceed
Arcosa’s available insurance coverage. Moreover, any accident or incident involving Arcosa’s businesses in general
or Arcosa or Arcosa’s products specifically, even if Arcosa is fully insured, contractually indemnified, or not held to
be liable, could negatively affect Arcosa’s reputation among customers and the public. The ability of Arcosa to insure
against the risks described in this Item 1A is limited by the applicable insurance markets, which may be costly,
unavailable or inadequate. Arcosa’s inability to secure adequate insurance could increase Arcosa’s risk exposure
and operational expenses and disrupt the management of its business operations.

Arcosa’s inability to produce and disseminate relevant and/or reliable data and information pertaining to
Arcosa’s business in an efficient, cost-effective, secure, and well-controlled fashion may have significant
negative impacts on confidentiality requirements and obligations and trade secret or other proprietary
needs and expectations and, therefore, Arcosa’s future operations, profitability, and competitive position.

Arcosa relies on information technology infrastructure and architecture, including hardware, network including the
cloud, software, people, and processes to provide useful and confidential information to conduct Arcosa’s business
in the ordinary course. Any material failure, interruption of service, compromised data security, or cybersecurity
threat could adversely affect Arcosa’s relations with suppliers, customers, and regulators and place Arcosa in
violation of confidentiality and data protection laws, rules, and regulations, and result in negative impacts to Arcosa’s
market share, operations, and profitability. Arcosa will have to continually upgrade its infrastructure and applications,
to reduce these risks. Security breaches in Arcosa’s information technology could result in theft, destruction, loss,
misappropriation, or release of confidential data, trade secrets, or other proprietary or intellectual property that could
adversely impact Arcosa’s future results.

Cybersecurity incidents, whether with Arcosa or a third party, could disrupt our business and result in the
compromise of confidential information.

Our business is at risk from and may be impacted by information security incidents, including attempts to gain
unauthorized access to our confidential data, ransomware, malware, phishing emails, and other electronic security
events as well as unauthorized access to the confidential data, ransomware, malware, phishing emails, and other
electronic security events involving third parties with which we do business. Such incidents can range from
individual attempts to gain unauthorized access to our information technology systems to more sophisticated
security threats. They can also result from internal compromises, such as human error, or malicious acts. While we
employ several measures to prevent, detect, and mitigate these threats, there is no guarantee such efforts will be
successful in preventing a cyber event or that any third parties with which we do business will be successful in
preventing a cyber event. There is increased risk related to remote working and the potential increased
cybersecurity vulnerability related to remote work. Arcosa will have to continually upgrade its network infrastructure
to reduce the risk of such cyber events. Cybersecurity incidents could disrupt our business and compromise
confidential information belonging to us and third parties.

Repercussions from terrorist activities or armed conflict could harm Arcosa’s business.

Terrorist activities, anti-terrorist efforts, and other armed conflict involving the U.S. or its interests abroad or other
foreign actors may adversely affect the U.S. and global economies, potentially preventing Arcosa from meeting its
financial and other obligations by negatively affecting the industries in which Arcosa operates. This could result in
delays in or cancellations of the purchase of Arcosa’s products or shortages in raw materials, parts, or components.

Arcosa’s inability to sufficiently protect Arcosa’s intellectual property rights could adversely affect
Arcosa’s business.

Arcosa’s patents, copyrights, trademarks, trade secrets, and other intellectual property rights are important to
Arcosa’s success. Arcosa relies on patent, copyright, and trademark law, and trade secret protection and
confidentiality and/or license agreements with others to protect Arcosa’s intellectual property rights. Arcosa’s
trademarks, service marks, copyrights, patents, and trade secrets may be exposed to market confusion, commercial

abuse, infringement, or misappropriation and possibly challenged, invalidated, circumvented, narrowed, or declared
unenforceable by countries where Arcosa’s products and services are made available, including countries where the
laws may not protect Arcosa’s intellectual property rights as fully as in the U.S. Such instances could negatively
impact Arcosa’s competitive position and adversely affect Arcosa’s business. Additionally, Arcosa could be required
to incur significant expenses to protect its intellectual property rights.

Arcosa’s ESG efforts may be costly or may not meet the public sentiments of our stockholders and others
with respect to our ESG practices and related public disclosures.

Arcosa has been proactive in integrating its ESG initiatives into its long-term strategy. The subjective nature and
wide variety of frameworks and methods used by our stockholders and others to assess Arcosa’s ESG strategy and
progress; diversity, equity, and inclusion ("DEI") initiatives; and heightened governance standards could result in a
negative perception by our stockholders or misrepresentation of Arcosa’s ESG goals and progress. Arcosa’s inability
to achieve satisfactory progress on its ESG initiatives, like climate change related initiatives, reduced emissions,
DEI efforts, and improved safety, on a timely basis, or at all, or to meet the ESG criteria of our stockholders and
others could adversely affect Arcosa’s business.

Risks Related to Arcosa Common Stock.

Investors may have difficulty valuing Arcosa's stock.

Investors may have difficulty accurately valuing Arcosa common stock resulting from difficulty in finding
comparable companies and accurately valuing Arcosa common stock, which may cause the trading price of Arcosa
common stock to fluctuate.

Arcosa cannot guarantee the timing, amount, or payment of dividends on its common stock.

The timing, declaration, amount, and payment of future dividends to Arcosa’s stockholders falls within the
discretion of Arcosa’s Board of Directors. The Board of Directors’ decisions regarding the payment of future
dividends will depend on many factors, such as Arcosa’s financial condition, earnings, capital requirements, debt
service obligations, covenants related to our debt service obligations, industry practice, legal requirements,
regulatory constraints, access to the capital markets, and other factors that the Board of Directors deems relevant.
Arcosa cannot guarantee that it will continue to pay any dividend in the future.

Certain provisions in Arcosa’s restated certificate of incorporation and amended and restated bylaws
("Arcosa’s Governing Documents"), and of Delaware law, may prevent or delay an acquisition of Arcosa,
which could decrease the trading price of the common stock.

Arcosa’s Governing Documents and Delaware law contain provisions that are intended to deter coercive takeover
practices and inadequate takeover bids by making such practices or bids unacceptably expensive to the bidder and
to encourage prospective acquirers to negotiate with Arcosa’s Board of Directors rather than to attempt a hostile
takeover.

In addition, Arcosa is subject to Section 203 of the DGCL. Section 203 provides that, subject to limited
exceptions, persons that (without prior board approval) acquire, or are affiliated with a person that acquires, more
than 15 percent of the outstanding voting stock of a Delaware corporation shall not engage in any business
combination with that corporation, including by merger, consolidation or acquisitions of additional shares, for a
three-year period following the date on which that person or its affiliate becomes the holder of more than 15 percent
of the corporation’s outstanding voting stock.

Arcosa believes these provisions will protect its stockholders from coercive or otherwise unfair takeover tactics by
requiring potential acquirers to negotiate with Arcosa’s Board of Directors and by providing Arcosa’s Board of
Directors with more time to assess any acquisition proposal. These provisions are not intended to make Arcosa
immune from takeovers. However, these provisions will apply even if the offer may be considered beneficial by
some stockholders and could delay or prevent an acquisition that Arcosa’s Board of Directors determines is not in
the best interests of Arcosa and its stockholders. These provisions may also prevent or discourage attempts to
remove and replace incumbent directors.

Risks Related to the Separation.

Trinity may fail to perform under various transaction agreements that were executed as part of the
Separation.

Third parties could seek to hold Arcosa responsible for liabilities that Trinity has agreed to retain under the
separation and distribution agreement and other agreements, and there can be no assurance that the indemnity
from Trinity will be sufficient to protect Arcosa against the full amount of such liabilities, or that Trinity will be able to
fully satisfy its indemnification obligations. In addition, Trinity’s insurers may attempt to deny coverage to Arcosa for

liabilities associated with certain occurrences of indemnified liabilities prior to the Separation. Trinity or its insurer's
failure to perform under the separation and distribution agreements could result in substantial losses to Arcosa.

If the distribution of shares of Arcosa, together with certain related transactions, does not qualify as a
transaction that is generally tax-free for U.S. federal income tax purposes, Arcosa's stockholders in the
distribution and Trinity could be subject to significant tax liability and, in certain circumstances, Arcosa
could be required to indemnify Trinity for material taxes pursuant to indemnification obligations under the
tax matters agreement.

Notwithstanding a private letter ruling from the IRS and the tax opinions Trinity received from its advisors, the IRS
could determine that the distribution or any such related transaction is taxable if it determines that any of these
facts, assumptions, representations, or undertakings are not correct or have been violated, or that the distribution
should be taxable for other reasons, including if the IRS were to disagree with the conclusions in the tax opinions
that are not covered by the IRS ruling.

Under the tax matters agreement between Trinity and Arcosa, Arcosa may be required to indemnify Trinity against
any taxes imposed on Trinity that arise from the failure of the distribution to qualify as tax-free for U.S. federal
income tax purposes within the meaning of Section 355 of the Code or the failure of certain related transactions to
qualify for tax-free treatment. Such tax amounts could be significant, and Arcosa’s exposure through its
indemnification obligations under the tax matters agreement not being subject to any cap could be significant.

General Risk Factors.

Arcosa’s stock price may fluctuate significantly.

We cannot predict the prices at which shares of Arcosa common stock may trade. The trading and market price of
Arcosa common stock may fluctuate significantly due to a number of factors, some of which may be beyond
Arcosa’s control, including: Arcosa’s quarterly or annual earnings, or those of other companies in its industry; actual
or anticipated fluctuations in Arcosa’s operating results; changes in earnings estimates by securities analysts or
Arcosa’s ability to meet those estimates; Arcosa’s ability to meet its forward-looking guidance; the operating and
stock price performance of other comparable companies; overall market fluctuations and domestic and worldwide
economic conditions; and other factors described in these “Risk Factors” and elsewhere in this Annual Report on
Form 10-K.

Stock markets in general have experienced volatility that has often been unrelated to the operating performance
of a particular company. Broad market and industry factors may materially harm the market price of Arcosa’s
common stock, regardless of Arcosa’s operating performance. In the past, following periods of volatility in the
market price of a company’s securities, shareholder derivative lawsuits and/or securities class action litigation has
often been instituted against that company. Such litigation, if instituted against us, could result in substantial costs
and a diversion of management’s attention and resources.

Stockholders’ percentage of ownership in Arcosa may be diluted in the future.

Stockholders’ percentage ownership in Arcosa may be diluted because of equity issuances for acquisitions,
capital market transactions, or otherwise, including, without limitation, equity awards that Arcosa grants to its
directors, officers, and employees.

In addition, Arcosa’s restated certificate of incorporation authorizes Arcosa to issue, without the approval of
Arcosa’s stockholders, one or more classes or series of preferred stock having such designation, powers,
preferences, and relative, participating, optional, and other special rights, including preferences over Arcosa
common stock respecting dividends and distributions, as Arcosa’s Board of Directors generally may determine. The
terms of one or more classes or series of preferred stock could dilute the voting power or reduce the residual value
of Arcosa common stock.

Arcosa may be adversely affected by trade policies and practices, including trade practices of competitors
that violate U.S. or other foreign laws, regulations, or practices.

Arcosa faces competition from manufacturers both in the U.S. and around the world, some of which may engage in
competition and trade practices involving the importation of competing products into the U.S. in violation of U.S. or
other foreign laws, regulations, or practices. For example, Arcosa’s competitors may import competing products that
are subsidized by foreign governments and sold in the U.S. at less than fair value. The results of trade negotiations,
trade agreements, and tariffs could also negatively affect Arcosa’s supplies, cost of goods sold, and customers.
These trade policies and practices could increase pricing pressure on Arcosa’s products, reduce Arcosa’s revenues
and operating profits, limit Arcosa’s ability to grow, and otherwise adversely affect Arcosa’s financial results.

Arcosa’s access to capital may be limited or unavailable due to deterioration of conditions in the global
capital markets and/or weakening of macroeconomic conditions.

In general, Arcosa may rely upon banks and capital markets to fund its growth strategy. These markets can
experience high levels of volatility and access to capital can be constrained for extended periods of time. In addition
to conditions in the capital markets, a number of other factors could cause Arcosa to incur increased borrowing
costs and have greater difficulty accessing public and private markets for both secured and unsecured debt, which
factors include Arcosa’s financial performance. If Arcosa is unable to secure financing on acceptable terms, Arcosa’s
other sources of funds, including available cash, its committed bank facility, and cash flow from operations may not
be adequate to fund its operations and contractual commitments and refinance existing debt.

Employment related lawsuits could be brought against us, which could be expensive, time consuming, and
result in substantial damages to us.

Arcosa may become subject to substantial and costly litigation by its former and current employees related to
improper termination of employment, sexual harassment, hostile work environment, and other employment-related
claims. Such claims could divert management’s attention from Arcosa’s core business, be expensive to defend, and
result in sizable damage awards against Arcosa. Arcosa’s current insurance coverage is limited and may not apply
or may not be sufficient to cover these claims. Any employment related claims brought against Arcosa, with or
without merit, could harm Arcosa’s reputation in the industry and reduce product sales. Damages assessed against
Arcosa could have a material adverse impact on Arcosa’s business.

Arcosa may be required to reduce the value of Arcosa’s long-lived assets, including intangible assets and/
or goodwill, which would weaken Arcosa’s financial results.

Arcosa periodically evaluates for potential impairment the carrying values of Arcosa’s long-lived assets, including
intangible assets, to be held and used. The carrying value of a long-lived asset to be held and used is considered
impaired when the carrying value is not recoverable through undiscounted future cash flows and the fair value of the
asset is less than the carrying value. Fair value is determined primarily using the anticipated cash flows discounted
at a rate commensurate with the risks involved or market quotes as available. Impairment losses on long-lived
assets held for sale are determined in a similar manner, except that fair values are reduced commensurate with the
estimated cost to dispose of the assets. In addition, goodwill is required to be tested for impairment annually or on
an interim basis whenever events or circumstances change indicating that the carrying amount of the goodwill might
be impaired.

Certain non-cash impairments may result from a change in our strategic goals, business direction, changes in
market interest rates, or other factors relating to the overall business environment. Any impairment of the value of
goodwill or other intangible assets recorded in connection with previous acquisitions would result in a non-cash
charge against earnings, which could have a material adverse effect on our financial condition and results of
operations.

Changes in accounting policies or inaccurate estimates or assumptions in the application of accounting
policies could adversely affect the reported value of Arcosa’s assets or liabilities and financial results.

Arcosa’s financial statements have been prepared in accordance with U.S. generally accepted accounting
principles. The significant accounting policies, together with the other notes that follow, are an integral part of the
financial statements. Some of these policies require the use of estimates and assumptions that may affect the
reported value of Arcosa’s assets or liabilities and financial results and require management to make difficult,
subjective, and complex judgments about matters that are inherently uncertain. Accounting standard setters and
those who interpret the accounting standards (such as the Financial Accounting Standards Board, the SEC, and
Arcosa’s independent registered public accounting firm) may amend or even reverse their previous interpretations
or positions on how these standards should be applied. These changes can be difficult to predict and can materially
impact how Arcosa records and reports its financial condition and results of operations. In some cases, Arcosa
could be required to apply a new or revised standard retroactively, resulting in the restatement of prior period
financial statements. For a further discussion of some of Arcosa’s critical accounting policies and standards and
recent accounting changes, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations.-Critical Accounting Policies and Estimates” and Note 1. "Overview and Summary of Significant
Accounting Policies" of the Notes to Consolidated Financial Statements.

Litigated disputes and other claims could increase Arcosa’s costs and weaken Arcosa’s liquidity and
financial condition.

Arcosa is currently, and may from time to time be, involved in various claims or legal proceedings arising out of
Arcosa’s operations. Adverse judgments and outcomes in some or all of these matters could result in significant
losses and costs that could weaken Arcosa’s liquidity and financial condition. Although Arcosa maintains reserves

for its probable and reasonably estimable liability, Arcosa’s reserves may be inadequate to cover its portion of
claims or final judgments after taking into consideration rights in indemnity and recourse under insurance policies or
to third parties as a result of which there could be a material adverse effect on Arcosa’s business. See Note 15.
Commitments and Contingencies” for additional information on the Company’s current litigation.

The use of social and other digital media (including websites, blogs and newsletters) to disseminate
negative, false, misleading and/or unreliable or inaccurate data and information about our Company could
create unwarranted volatility in our stock price and losses to our stockholders and could adversely affect
our reputation, products, business, and operating results.

Investors may rely on social and other digital media to receive news, data, and information about the Company.
Social and other digital media can be used by anyone to publish data and information without regard for factual
accuracy. The use of social and other digital media to publish inaccurate, offensive, and disparaging data and
information may influence the public’s inability to distinguish what is true and accurate and could obstruct an
effective and timely response to correct inaccuracies or falsifications. Such use of social and other digital media
could result in negative unsubstantiated claims concerning the Company in general, our products, or our reputation
which could reflect negatively on our Company and/or employees, and potentially having a material adverse effect
on our business.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Arcosa’s corporate headquarters is located in Dallas, Texas. We principally operate in various locations
throughout the U.S. and in Mexico. Our facilities are considered to be in good condition, well maintained, and
adequate for our purposes. Information about the total square footage of our facilities as of December 31, 2022 is
as follows:

Construction Products .......................................
Engineered Structures ......................................
Transportation Products ....................................
Corporate ............................................................

(1) Excludes non-operating facilities.

Approximate Square Feet(1)

Approximate Square Feet Located In(1)

Owned

Leased

U.S.

Non-U.S.

767,200

1,993,100

1,802,500

—

4,562,800

182,500

317,000

81,100

24,600

605,200

938,100

1,657,500

1,883,600

24,600

4,503,800

11,600

652,600

—

664,200

Our estimated weighted average production capacity utilization for the twelve-month period ended December 31,

2022 is reflected by the following percentages:

Construction Products(2)
.......................................................................................................................................
Engineered Structures ..........................................................................................................................................
Transportation Products .......................................................................................................................................

Production
Capacity
Utilized(1)

75 %

65 %

35 %

(1) Excludes non-operating facilities.
(2) Includes processing facilities, quarries, and mines.

Mineral Reserves - Overview

Information concerning the Company’s mining properties has been prepared in accordance with the requirements
of Subpart 1300 of Regulation S-K (“S-K 1300”), which first became applicable to the Company for the fiscal year
ended December 31, 2021. These requirements differ from the previously applicable disclosure requirements of
SEC Industry Guide 7. Among other differences, S-K 1300 requires the Company to disclose its mineral resources
in addition to its proven and probable mineral reserves, as of the end of their most recently completed fiscal year
both in the aggregate and for each of their individually material mining properties. As of December 31, 2022, the
Company did not have any individually material mining properties.

The terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” “inferred mineral
resource,” “mineral reserve,” “proven mineral reserve,” and “probable mineral reserve,” whether singular or plural,
are defined and used in accordance with S-K 1300. Under S-K 1300, mineral resources may not be classified as
“mineral reserves” unless the determination has been made by a qualified person that the mineral resources can be
the basis of an economically viable project.

The Company’s estimates of mineral reserves and mineral resources are determined internally by competent
professionals, including engineers and geologists, using industry best practices and internal controls. These
estimates are based on geologic data, mineral ownership information, and current or proposed operating plans. Our
mineral reserves are proven and probable reserves that could be economically and legally extracted or produced at
the time of the reserve determination, considering grade and quality of the minerals and all material modifying
factors. These estimates are periodically updated to reflect past mining production, updated mine plans, new
exploration information, and other geologic or mining data. Acquisitions or dispositions of mining properties will also
change these estimates. Changes in mining or processing methods may increase or decrease the recovery basis
for the estimates. The ability to update or modify the estimates of our mineral reserves is restricted to competent
geologists and mining engineers and material modifications are documented. Our estimates of mineral reserves and
mineral resources, and supporting information, have been assessed by the John T. Boyd Company, a qualified
person, which is unaffiliated with the Company and conforms to the requirements under S-K 1300 for qualified
persons.

Mining Properties

During the year ended December 31, 2022, we produced 31.4 million tons of natural aggregates and specialty
materials from our mining and processing operations located in the United States and Canada, all of which, we
believe, have adequate road and/or railroad access. The Company reports its mining operations primarily through
the following commodity groupings:

Natural Aggregates – includes operations which specialize in the production of sand, gravel, limestone, and
stabilized material. Our aggregates operations are grouped into the “Texas” (including Arkansas and Oklahoma) and
“All Other” geographic regions and shipments from an individual quarry or stationary crushing location are generally
limited in geographic scope because the cost of transportation to customers is high relative to the value of the
product itself.

Specialty Materials – includes operations which produce lightweight aggregates, select natural aggregates, and
milled or processed specialty building products and agricultural products. Since specialty materials have a much
wider, multi-state distribution area due to their higher value relative to their distribution costs as compared to natural
aggregates, we do not group our specialty materials operations by geographic region.

Our active operations as of December 31, 2022 included 44 that produce and distribute natural aggregates and
13 that produce, process, and distribute specialty materials. In addition to our active operations, we control interests
in 22 inactive and greenfield (undeveloped) mining properties. We also own and operate recycled aggregates (i.e.,
recycled concrete products) facilities which are not dependent on mineral reserves.

The following map illustrates the locations of our active mining operations as of December 31, 2022, excluding

stand-alone processing facilities:

The following table summarizes, by major commodity group and geographic region, the status for our mining

properties as of December 31, 2022:

Natural aggregates:

Texas ......................................................................................

All other ..................................................................................

Specialty materials ..................................................................

Number of Properties

Producing

Inactive

Total

Our active mining operations include 56 surface mines and one underground mine. The operations extract
materials from surficial or near-surface alluvial and bedrock deposits. Mining methods utilized at our surface
operations include conventional truck/shovel excavation and dredge mining. Our single underground mine in
Pennsylvania utilizes mechanized room-and-pillar mining methods.

Processing operations to produce sand and gravel and crushed stone consist of mechanized crushing, washing,
and sizing. Stabilized sand is mixed in a pug mill. Specialty materials may be subjected to additional processing –
such as milling and grinding, roasting (in kilns), and/or pelletizing – depending on the product specifications. The
following table summarizes, by major commodity group, the annual production history over the preceding three
years for our mining properties:

Natural aggregates .................................................................

Specialty materials ..................................................................

Annual Production (million tons)

2022

26.8

4.6

31.4

2021

24.4

5.3

29.7

2020

14.5

5.3

19.8

Our ownership or leasehold interest in our mining properties – both active and undeveloped – is 100%. Rights to

mine the properties is controlled through our ownership in fee and/or long-term lease agreements with third parties.

Our mining operations are subject to a wide range of laws, ordinances, and regulations and require various
governmental approvals and permits. Federal, state, and local authorities regulate the operations with respect to
matters such as employee health and safety, permitting and licensing requirements, air quality standards, water
quality standards, plant and wildlife protection, the reclamation and restoration of mining properties after mining has
been completed, the discharge of materials into the environment, surface subsidence from underground mining, and
the effects of mining on groundwater quality and availability. We have obtained all material permits currently
required to conduct our present mining operations.

Mineral Reserves

We controlled an estimated 1.2 billion tons of mineral reserves as of December 31, 2022. Reported mineral
reserves include only quantities that are owned in fee or under lease – approximately 550 million tons or 46% are
located on owned land and 647 million tons or 54% are located on leased land. The economic viability of our
reserves were determined using average selling prices ranging from $2.68 to $64.47 per ton, depending on the
location and market.

Our mineral reserves, on average, represent approximately 30 years at current production levels within the natural
aggregates business and approximately 90 years at current production levels within the specialty materials
business. However, certain operations may have more limited reserves and may not be able to expand.
Approximately 966 million tons or 81% of the reported mineral reserves are attributable to active mining operations.

As of December 31, 2022, the Company’s estimated proven and probable mineral reserves by major commodity

group and geographic region are as follows:

Natural aggregates:

Texas ............................................................

All other .......................................................

Specialty materials .......................................

Estimated Mineral Reserves (million tons)

Proven

Probable

Total

Owned

Leased

185.8

274.1

459.9

337.4

797.3

18.9

295.0

313.9

85.5

399.4

204.7

569.1

773.8

422.9

1,196.7

67%

19%

32%

72%

46%

33%

81%

68%

28%

54%

Quantities of mineral reserves were estimated from geologic analysis of exploration results and the application of
economic and mining parameters appropriate to the individual deposits. Estimated mineral reserves have been
adjusted to account for anticipated process dilutions and losses during mining and processing involved in producing
saleable products. Economic viability of the reported mineral reserves has been demonstrated using three-year
trailing average product prices on a per-property basis.

Mineral Resources

We controlled an estimated 118.8 million tons of mineral resources as of December 31, 2022, exclusive of our
reported mineral reserves. Our mineral resource estimates are based on an initial assessment using average selling
price assumptions ranging from $6.43 to $88.33, depending on the location and market. The following table
summarizes our mineral resources by major commodity group and geographic region as of December 31, 2022:

Natural aggregates:

Texas .......................................................

All other ...................................................

Specialty materials ..................................

Estimated Mineral Resources (million tons)

Measured

Indicated

Inferred

Total

—

6.5

23.5

30.0

1.6

7.7

9.3

—

9.3

19.7

10.3

30.0

49.5

79.5

21.3

24.5

45.8

73.0

118.8

Our inferred mineral resources have been estimated on the basis of limited geologic evidence. Mineral resources,
that are not mineral reserves, do not have a demonstrated economic viability at this time; however, of the 79.5
million tons of inferred mineral resources, 29.3 million tons or 37% are attributable to 9 active mining operations.

Item 3. Legal Proceedings.

See Note 15 of the Consolidated Financial Statements regarding legal proceedings.

Item 4. Mine Safety Disclosures.

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit
95 to this Form 10-K.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.

Shares of our common stock are listed on the New York Stock Exchange under the ticker symbol “ACA,” which
began “regular-way” trading on November 1, 2018 immediately following the Separation. Our transfer agent and
registrar is American Stock Transfer & Trust Company.

Holders

At December 31, 2022, we had 1,057 record holders of common stock. Because many of our shares are held by
brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders
represented by these record holders.

Performance Graph

The following Performance Graph and related information shall not be deemed “soliciting material” or to be “filed”
with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act
of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically
incorporates it by reference into such filing.

The following graph compares the Company's cumulative total stockholder return from November 1, 2018
(beginning of “regular-way” trading) through December 31, 2022 with the S&P Small Cap 600 Index and the S&P
Small Cap 600 Construction & Engineering Industry Index. The data in the graph assumes $100 was invested in
each index at the closing price on November 1, 2018 and assumes the reinvestment of dividends.

Arcosa, Inc. ................................................................ $
S&P Small Cap 600 Index ....................................... $
S&P Small Cap 600 Construction & Engineering
Industry Index ............................................................ $

100 $

101 $

163 $

202 $

194 $

100 $

88 $

107 $

120 $

152 $

201

127

100 $

87 $

115 $

132 $

190 $

194

11/1/2018

12/31/2018

12/31/2019

12/31/2020

12/31/2021 12/31/2022

Index ValueComparison of Cumulative Total ReturnAssumes Initial Investment of $100Arcosa, Inc.S&P Small Cap 600 IndexS&P Small Cap 600 Construction & Engineering Industry Index11/01/1812/31/1812/31/1912/31/2012/31/2112/31/2275100125150175200225Issuer Purchases of Equity Securities

This table provides information with respect to purchases by the Company of shares of its common stock during

the quarter ended December 31, 2022:

Number of
Shares
Purchased (1)

Average
Price
Paid per
Share (1)

Total Number of
Shares Purchased
as Part of Publicly
Announced Plans or
Programs (2)

Maximum Number (or
Approximate Dollar
Value) of Shares that
May Yet Be
Purchased Under the
Plans or Programs (2)

Period

October 1, 2022 through October 31, 2022

232 $ 64.58

November 1, 2022 through November 30, 2022

46,148 $ 58.85

December 1, 2022 through December 31, 2022

188 $ 57.17

Total

46,568 $ 58.87

— $

25,656,442

(1) These columns include the surrender to the Company of 46,568 shares of common stock to satisfy tax

withholding obligations in connection with the vesting of restricted stock issued to employees.

(2)

In December 2022, the Company’s Board of Directors authorized a new $50 million share repurchase
program effective January 1, 2023 through December 31, 2024 to replace a program of the same amount that
expired on December 31, 2022. Under the previous program, the Company repurchased 298,629 shares at a
cost of $15.0 million during the year ended December 31, 2022. During the year ended December 31, 2021,
the Company repurchased 170,168 shares at a cost of $9.4 million. As of December 31, 2022, the Company
has approximately $25.7 million available dollars for share repurchases under the current program.

Item 6. Reserved.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to
provide a reader of our financial statements with a narrative from the perspective of our management on our
financial condition, results of operations, liquidity, and certain other factors that may affect our future results. Our
MD&A is presented in the following sections:

•

Company Overview

Potential Impact of COVID-19 on our Business

Executive Overview

Results of Operations

Liquidity and Capital Resources

Contractual Obligations and Commercial Commitments

Critical Accounting Policies and Estimates

Recent Accounting Pronouncements

Forward-Looking Statements

Our MD&A should be read in conjunction with our Consolidated Financial Statements and related Notes in Item 8,
“Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K.

Company Overview

Arcosa, Inc. and its consolidated subsidiaries, (“Arcosa,” “Company,” “we,” or “our”) headquartered in Dallas,
Texas, is a provider of infrastructure-related products and solutions with leading brands serving construction,
engineered structures, and transportation markets in North America. Arcosa is a Delaware corporation and was
incorporated in 2018 in connection with the separation (the “Separation”) of Arcosa from Trinity Industries,
Inc. (“Trinity” or “Former Parent”) on November 1, 2018 as an independent, publicly-traded company, listed on the
New York Stock Exchange.

Potential Impact of COVID-19 on our Business

Our highest priority is the health and safety of our employees and communities. We are committed to safety
across our operations. Our businesses support critical infrastructure sectors and our plants have continued to
operate throughout the COVID-19 pandemic. If one or more of Arcosa’s facilities become subject to governmental
ordered closure, voluntary temporary closure, closure from a COVID-19 outbreak within the facility, or other
COVID-19 related reason the business, liquidity and financial condition, and results of operations for Arcosa could
be adversely affected.

The COVID-19 pandemic has disrupted global trade, commerce, financial and credit markets, and daily life
throughout the world. The extent to which the COVID-19 pandemic impacts our business, liquidity and financial
condition, and results of operations will depend on numerous evolving factors that we may not be able to accurately
predict, including: the duration and scope of the pandemic; governmental, business, and individuals’ actions taken in
response to the pandemic; the impact of the pandemic on economic activity, and actions taken in response; the
effect on our customers and customer demand for our products and services; our ability to sell and provide our
products and services; if key personnel are unable to perform their duties or have limited availability; the number of
employees who contract or are directly exposed to COVID-19 and their availability to work in our plants and
facilities; the ability to retain employees; the ability of our customers to pay for our products and services; any
disruption in our supply chain; the ability to procure personal protective equipment; the availability of COVID-19
testing supplies; our ability to continue operations in compliance with COVID-19 related regulations; any closures of
our and our customers’ facilities; increased cybersecurity and IT infrastructure risks; the impact on the health and
safety of our employees; the impact on the demand for commodities served by our products and services; the
impact of new COVID-19 variants and the response to any potential reoccurrence.

We strive to continuously improve our procedures, processes, and management systems regarding employee
health and safety, and the COVID-19 pandemic has highlighted the critical importance of focusing on the health and
wellness of our employees. We have followed the federal, state, and local guidelines governing our facilities and
shared best practices across the organization, with the goal of protecting our employees and communities. We do
not anticipate that any enhanced health and safety protocols will have a material impact on the productivity of our
plants.

The preparation of the Company's Consolidated Financial Statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during
the reporting period. At this time, we have not observed any material impairments of our assets or a significant
change in the fair value of assets due to the COVID-19 pandemic. However, due to the factors discussed above, we
are unable to determine or predict the overall impact the COVID-19 pandemic will have on our business, results of
operations, liquidity, or capital resources.

Market Outlook

• Within our Construction Products segment, our natural and recycled aggregates businesses have remained
resilient, particularly in Texas, when seasonal weather conditions have been normal, and where states have
reopened for business. We did experience a softening of demand for our specialty materials and shoring products
businesses beginning in 2020 following the COVID-19 outbreak, but have largely recovered to pre-pandemic
demand levels in 2022. The outlook for public and private construction activity has improved driven by healthy
demand and increased infrastructure spending. However, following the recent sharp rise in interest rates and the
market expectation for additional tightening, the outlook for single-family residential housing has weakened. We
are focused on managing inflationary pressures related to diesel, cement, and process fuels through proactive
price increases and are monitoring potential impacts on overall demand as leading economic indicators indicate
an increased probability of an economic slowdown in 2023.

• Within our Engineered Structures segment, our backlog as of December 31, 2022 provides good production
visibility for 2023. Our customers remain committed to taking delivery of these orders. In utility structures, order
and inquiry activity continues to be healthy, as customers remain focused on grid hardening and reliability
initiatives. The demand outlook for traffic and telecom structures also remains positive. Wind tower order
quantities in 2022 were impacted by high steel prices and uncertainty related to the renewal of the Production Tax
Credit (“PTC”), that expired at the end of 2021. As a result, in the fourth quarter of 2021, we idled our Clinton,
Illinois wind tower facility in anticipation of lower volumes. The passage of the Inflation Reduction Act ("IRA") on
August 16, 2022, which included a long-term extension of the PTC for new wind farm projects and introduced a
new advanced manufacturing tax credit for companies that domestically manufacture and sell clean energy
equipment in the U.S., is a significant catalyst for our wind towers business. However, the lapse in the PTC and
the associated impact on our customers and the wind industry supply chain, has created a near-term lull in
projects. As a result, we anticipate 2023 will be a transition year as new wind projects ramp up and expect a
strong multi-year rebound in volumes beginning in 2024. In the fourth quarter of 2022, we received wind tower
orders of $371 million which extends our backlog to 2025 and fills a base level of production capacity for the next
three years.

• Within our Transportation Products segment, our backlog for inland barges as of December 31, 2022 is $225.1
million, which fills a significant portion of our planned production capacity for 2023. Our customers remain
committed to taking delivery of these orders. Barge order levels fell sharply at the onset of the pandemic and
ensuing high steel prices further negatively impacted demand throughout 2021. To align with lower expected
production levels in 2022, we reduced capacity in our two active barge operating plants and completed the idling
of our Madisonville, Louisiana facility in the fourth quarter of 2021 to further reduce our cost structure. While high
steel prices continued to negatively impact order levels in 2022, the underlying fundamentals for a dry barge
replacement cycle remain in place. The fleet continues to age, new builds have not kept pace with scrapping, and
utilization rates are high. As a result, order inquiries have been increasing, and we received orders of $134 million
in the fourth quarter of 2022, primarily for hopper barges for 2023 delivery. Demand for steel components, which
was softening pre-COVID-19 due to a weakening North American rail transportation market, is increasing relative
to 2020 and 2021 cyclical lows as the near-term outlook for the new railcar market indicates a stable level of
replacement demand.

Financial Operations and Highlights

Executive Overview

• Revenues for the year ended December 31, 2022 increased 10.1% to $2.2 billion compared to the year ended

December 31, 2021 with all three segments contributing to the increase.

• Operating profit for the year ended December 31, 2022 of $349.0 million increased $241.7 million compared to
the year ended December 31, 2021, of which $189.0 million related to the gain on the sale of the storage tanks
business completed in the fourth quarter. The additional $52.7 million increase was driven by increased pricing
and volumes in Construction Products, higher margins on increased pricing in Engineered Structures, and higher
overall volumes and increased efficiencies in Transportation Products.

• As a percentage of revenue, selling, general, and administrative expenses was 11.7% for the year ended
December 31, 2022, compared to 12.6% in the prior year. Selling, general, and administrative expenses
increased by 2.7% for the year ended December 31, 2022, when compared to the prior year largely due to
increased compensation costs.

• The effective tax rate for the year ended December 31, 2022 was 22.3% compared to 16.7% for the year ended

December 31, 2021. See Note 10, “Income Taxes” to the Consolidated Financial Statements.

• Net income for the year ended December 31, 2022 was $245.8 million compared with $69.6 million for the year

ended December 31, 2021.

Unsatisfied Performance Obligations (Backlog)

As of December 31, 2022 and 2021 our backlog of firm orders was as follows:

December 31,
2022

December 31,
2021

(in millions)

Engineered Structures:

Utility, wind, and related structures ............................................................................... $
Storage tanks(1)
................................................................................................................ $

671.3 $

— $

437.5

22.0

Transportation Products:

Inland barges .................................................................................................................... $

225.1 $

92.7

(1) On October 3, 2022, the Company completed the sale of its storage tanks business and its related backlog.

Results of Operations

The following discussion of Arcosa’s results of operations should be read in connection with “Forward-Looking
Statements” and Item 1A, “Risk Factors”. These items provide additional relevant information regarding the
business of Arcosa, its strategy and various industry conditions which have a direct and significant impact on
Arcosa’s results of operations, as well as the risks associated with Arcosa’s business.

Overall Summary

Revenues

Year Ended December 31,
2021

2020

2022

Percent Change

2022 versus 2021

2021 versus 2020

Construction Products .................. $
Engineered Structures .................
Transportation Products ...............

Segment Totals before
Eliminations .................................
Eliminations ....................................
Consolidated Total ........................ $

($ in millions)

923.5 $

1,002.0
317.3

796.8 $
934.1
305.6

593.6
877.7
466.5

2,242.8
—
2,242.8 $

2,036.5

(0.1)

2,036.4 $

1,937.8
(2.2)
1,935.6

15.9 %
7.3
3.8

10.1

34.2 %
6.4
(34.5)

5.1

5.2

2022 versus 2021
• Revenues increased by 10.1%.
• Revenues from our Construction Products segment increased primarily due to increased pricing across our
product lines in our aggregate and specialty materials businesses and higher volumes from recently acquired
businesses.

• In our Engineered Structures segment, revenues increased primarily due to increased pricing in all product lines.

• Revenues from our Transportation Products segment increased primarily due to higher deliveries in steel

components, partially offset by lower tank barge deliveries.

2021 versus 2020

• Revenues increased by 5.2%.

• Revenues from our Construction Products segment increased primarily due to higher natural and recycled

aggregates volumes from acquired businesses as well as in our legacy natural aggregates business.

• In our Engineered Structures segment, revenues increased primarily due to increased pricing in all product lines

driven by higher steel prices and higher volumes in utility structures and U.S. storage tanks.

• Revenues from our Transportation Products segment decreased primarily due to lower volumes in our inland

barge business.

Operating Costs

Operating costs are comprised of cost of revenues; selling, general, and administrative expenses; impairment

charges; and gains or losses on property disposals.

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

(in millions)

695.0

827.0 $

713.6 $

Construction Products ............................. $
Engineered Structures ............................
Transportation Products ..........................
Segment Totals before Eliminations
and Corporate Expenses .....................
Corporate ..................................................
Eliminations ...............................................
(2.2)
Consolidated Total ................................... $ 1,893.8 $ 1,929.1 $ 1,783.8

1,728.3

1,858.9

1,827.8

(0.1)

305.8

299.2

797.5

846.1

518.9

411.9

57.7

70.3

66.0

—

15.9 %

(17.9)

2.2

(1.7)

(6.1)

(1.8)

37.5 %

6.1

(27.4)

7.6

21.8

8.1

Depreciation, depletion, and
amortization .............................................. $

154.1 $

144.3 $

114.5

6.8

26.0

2022 versus 2021

• Operating costs decreased 1.8%. Excluding the $189.0 million gain on the sale of our storage tanks business

within the Engineered Structures segment, operating costs increased 8.0%

• Cost of revenues for Construction Products increased primarily due to inflationary-related cost increases,

including diesel, cement, and process fuels and higher volumes from recently acquired businesses.

• Excluding the gain from the sale of the storage tanks business, operating costs for Engineered Structures

increased primarily due to higher steel raw material prices.

• Cost of revenues for Transportation Products increased primarily due to increased steel component volumes and

higher steel raw material costs in inland barges.

• Depreciation, depletion, and amortization increased primarily due to recent acquisitions, including the fair value

mark up of long-lived assets.

• As a percentage of revenue, selling, general, and administrative expenses for the year ended December 31, 2022

was 11.7% compared to 12.6% for the year ended December 31, 2021.

2021 versus 2020
• Operating costs increased 8.1%.
• Cost of revenues for Construction Products increased primarily due to higher volumes from acquired businesses,
including the cost impact of the fair market value write-up of acquired inventory and additional depreciation,
depletion, and amortization expense.

• Cost of revenues for Engineered Structures increased primarily due to higher volumes in our utility structures

business, as well as higher steel raw material prices.

• Cost of revenues for Transportation Products decreased primarily due to lower volumes in our inland barge

business.

• Depreciation, depletion, and amortization increased primarily due to the acquisition of StonePoint and other recent

acquisitions, including the fair value mark up of long-lived assets.

• As a percentage of revenue, selling, general, and administrative expenses for the year ended December 31, 2021
was 12.6% compared to 11.5% for the year ended December 31, 2020. The increase is largely due to additional
costs from acquired businesses in Construction Products and higher corporate costs due to a legal settlement in
the fourth quarter and higher acquisition-related transaction and integration costs.

Operating Profit (Loss)

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

Construction Products ............................. $
Engineered Structures ............................
Transportation Products ..........................
Segment Totals before Eliminations
and Corporate Expenses .....................
Corporate ..................................................
Consolidated Total ................................... $

(in millions)

96.5 $

83.2 $

307.0

11.5

88.0

6.4

74.7

80.2

54.6

415.0

177.6

(66.0)

(70.3)

209.5

(57.7)

349.0 $

107.3 $

151.8

16.0 %

248.9

79.7

133.7

(6.1)

225.3

11.4 %

9.7

(88.3)

(15.2)

21.8

(29.3)

2022 versus 2021

• Operating profit increased 225.3%, a large portion of which related to the $189.0 million gain on sale of our
storage tanks business within the Engineered Structures segment. Excluding the gain, operating profit increased
$52.7 million, or 49.1%.

• Operating profit in Construction Products increased primarily due to increased pricing and volumes from recently
acquired businesses, partially offset by inflationary-related cost increases, including diesel, cement, and process
fuels.

• Operating profit in Engineered Structures increased by 34.1%, excluding the gain on the sale of the storage tanks
business, primarily due to higher revenues and improved margins in our utility structures and storage tanks
businesses as well as improved pricing across all product lines.

• Operating profit in Transportation Products increased primarily due to higher volumes and improved margins in

our steel components business.

2021 versus 2020

• Our operating profit decreased 29.3%.

• Operating profit in the Construction Products segment increased primarily due to increased volumes from recently

acquired business and in our legacy businesses.

• Operating profit in our Engineered Structures segment increased primarily due to higher volumes in our utility
structures business and improved margins in our storage tanks business, partially offset by lower wind tower
volumes.

• Operating profit in our Transportation Products segment decreased primarily due to lower barge volumes and the

associated decline in operational efficiencies from reduced capacity utilization.

For a further discussion of revenues, costs, and the operating results of individual segments, see Segment

Discussion below.

Other Income and Expense

Other, net (income) expense consists of the following items:

Interest income ............................................................................................ $
Foreign currency exchange transactions .................................................
Other ..............................................................................................................
Other, net (income) expense ..................................................................... $

Year Ended December 31,

2022

2021

2020

(in millions)

(1.1) $

3.3

(0.4)

1.8 $

— $

0.6

(0.3)

0.3 $

(0.4)

3.6

(0.2)

3.0

• Other, net expense due to foreign currency exchange transactions increased by $2.7 million in 2022 primarily
driven by increased volatility in the U.S. dollar to Mexican peso exchange rate as well as foreign currency impacts
on the sale of the storage tanks business in Mexico.

Income Taxes

The income tax provision for the years ended December 31, 2022, 2021, and 2020 was $70.4 million, $14.0
million, and $31.6 million, respectively. The effective tax rate for the years ended December 31, 2022, 2021, and
2020 was 22.3%, 16.7%, and 22.9%, respectively. The effective tax rates differ from the federal tax rate of 21.0%
due to the impact of state income taxes, excess tax benefits related to equity compensation, and the impact of
foreign tax benefits. The increase in our effective tax rate for the year ended December 31, 2022 was largely due to
true-ups of apportionment rates impacting prior year state current and deferred taxes. For a reconciliation of the
federal tax rate to our effective tax rate, see Note 10 of the Notes to Consolidated Financial Statements.

In response to the COVID-19 pandemic, on March 27, 2020 the U.S. Congress passed the Coronavirus Aid,
Relief, and Economic Security Act (the “CARES Act”), which includes certain tax relief and benefits that impacted
the Company. Approximately $15 million of federal and state income tax payments deferred during the first half of
2020 were paid during the third quarter of 2020. Approximately $5.4 million and $4.3 million of payroll-related taxes
were paid during 2022 and 2021, respectively. As of December 31, 2022, the Company has repaid all payroll-related
taxes deferred in accordance with the provisions of the CARES Act.

See Note 10 of the Notes to Consolidated Financial Statements for a further discussion of income taxes.

Segment Discussion

Construction Products

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

Revenues:

Aggregates and specialty materials ... $ 821.4
Construction site support .....................
102.1
Total revenues ..........................................

923.5

$ 711.6

$ 529.4

85.2

796.8

64.2

593.6

($ in millions)

Operating costs:

Cost of revenues ...................................
Selling, general, and administrative
expenses ................................................
Impairment charge ................................
Operating profit ......................................... $

726.6

623.7

449.7

100.4

—

89.9

—

68.4

0.8

96.5

83.2

74.7

15.4 %

19.8

15.9

16.5

11.7

16.0

34.4 %

32.7

34.2

38.7

31.4

11.4

Depreciation, depletion, and
amortization .............................................. $ 102.7

88.7

60.1

15.8

47.6

2022 versus 2021

• Revenues increased 15.9% partially due to recent acquisitions, which on a combined basis accounted for
approximately half of the increase in segment revenues. The additional increase in revenues was driven by strong
pricing gains across our product lines in our aggregates and specialty materials businesses, partially offset by
overall lower volumes from legacy operations. Revenues from our trench shoring business increased 19.8%
driven by higher volumes and increased pricing.

• Cost of revenues increased 16.5%, partially due to higher volumes as well as additional depreciation, depletion,
and amortization expense from recently acquired businesses. Cost of revenues also increased due to higher
inflationary-related costs, including diesel, cement, and process fuels, across our businesses. As a percent of
revenues, cost of revenues increased slightly.

• Selling, general, and administrative expenses increased 11.7% driven by additional costs from recently acquired
businesses. As a percentage of revenues, selling, general, and administrative costs declined to 10.9% compared
to 11.3% in the previous year.

• Operating profit increased by 16.0%, in line with revenue.

• Depreciation, depletion, and amortization expense increased primarily due to recent acquisitions, including the

impact of the fair value mark up of long-lived assets.

2021 versus 2020

• Revenues increased 34.2%, primarily due to StonePoint and other recent acquisitions, which on a combined basis
increased segment revenues by approximately 25%. The additional increase in revenues was driven by strong
demand for construction aggregates despite numerous weather-related challenges in the first half of the year,
partially offset by reduced shipments to oil and gas markets. Revenues from our trench shoring business
increased 32.7%, above pre-pandemic levels, due to higher steel prices and improved demand conditions as
COVID-related construction delays improved.

• Cost of revenues increased 38.7% due to higher volumes from the acquired businesses and strong demand in our
legacy businesses. Cost of revenues also increased due to a $4.7 million increase in the amortization of the fair
value mark up of acquired inventory as well as higher depreciation, depletion, and amortization expense from
acquired businesses. As a percent of revenues, cost of revenues in our legacy businesses, excluding
depreciation, depletion, and amortization, were mostly in line with the prior year despite higher fuel prices and
other inflationary-related increases.

• Selling, general, and administrative expenses increased 31.4% due to additional costs from acquired businesses.
As a percentage of revenues, selling, general, and administrative costs in the legacy businesses declined as
legacy costs were substantially unchanged from the previous year.

• Operating profit increased 11.4% driven by increased volumes in the second half of the year which offset the
impact of Winter Storm Uri in the first quarter, and excessive rainfall in the second quarter. Excluding the impact of
the fair value mark up of acquired inventory and the impairment charge recognized in the prior year, operating
profit increased approximately 15%.

• Depreciation, depletion, and amortization expense increased primarily due to StonePoint and other recently

acquired businesses along with the associated fair value mark up of acquired long-lived assets.

Engineered Structures

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

Revenues:

Utility, wind, and related structures ...... $ 813.1

$ 717.9

$ 695.2

Storage tanks ..........................................

188.9
Total revenues ........................................... 1,002.0

216.2

934.1

182.5

877.7

($ in millions)

Operating costs:

810.4

769.2

721.8

Cost of revenues ....................................
Selling, general, and administrative
expenses .................................................
Gain on sale of storage tanks
business ...................................................
Impairment charge .................................

—
Operating profit .......................................... $ 307.0

73.6

(189.0)

Depreciation and amortization ................ $

30.5

2022 versus 2021

74.0

—

2.9

88.0

33.1

74.4

—

1.3

80.2

31.5

13.3 %

(12.6)

7.3

5.4

(0.5)

248.9

(7.9)

3.3 %

18.5

6.4

6.6

(0.5)

9.7

5.1

• Revenues increased 7.3% driven by increased pricing across all product lines partially offset by lower overall

volumes and the sale of the storage tanks business which was completed on October 3, 2022.

• Cost of revenues increased 5.4% primarily driven by higher steel raw material prices partially offset by lower

overall volumes and the elimination of costs for storage tanks in the fourth quarter following the sale.

• Selling, general, and administrative expenses were substantially unchanged as increased costs in utility structures

were offset by the elimination of costs from storage tanks in the fourth quarter following the sale.

• Operating profit increased significantly driven by the $189.0 million gain recognized on sale of our storage tanks
business during the fourth quarter. Excluding the gain, operating profit increased $30.0 million or 34.1% primarily
due to higher revenues and improved margins in our utility structures and storage tanks businesses as well as
improved pricing across all product lines. The increase was partially offset by a $7.7 million increase to operating
profit in 2021 related to the resolution of a customer dispute.

2021 versus 2020

• Revenues increased 6.4% due to increased pricing across all product lines, higher volumes in utility structures,
and the full year impact of the acquired traffic and telecom structures businesses. Revenue increases were
partially offset by lower wind tower volumes. Revenues also increased by $7.7 million due to a non-recurring item
in our wind towers business related to the resolution of a customer dispute from 2019.

• Cost of revenues increased 6.6% driven by higher steel raw material prices and increased volumes in our utility
structures business, partially offset by lower wind tower volumes. Cost of revenues were reduced by a gain of
$3.9 million recognized on the sale of a non-operating facility in the first quarter.

• Selling, general, and administrative expenses were substantially unchanged.

• Operating profit increased by 9.7% primarily due to increased volumes in our utility structures business and
improved margins in our storage tanks and utility structures businesses, a one-time resolution of a customer
dispute, and the gain on the sale of a non-operating facility. This increase was partially offset by lower wind tower
volumes and Winter Storm Uri that impacted production in our Texas and Oklahoma plants for approximately one
week in the first quarter.

Unsatisfied Performance Obligations (Backlog)

As of December 31, 2022, the backlog for utility, wind, and related structures was $671.3 million compared to
$437.5 million as of December 31, 2021. Approximately 57% of the unsatisfied performance obligations for our
utility, wind, and related structures are expected to be delivered during the year ending December 31, 2023, 24%
expected to be delivered during the year ending 2024, with the remainder expected to be delivered during the year
ending 2025.

Transportation Products

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

Revenues:

Inland barges ......................................... $ 189.9
Steel components .................................
127.4
Total revenues ..........................................

317.3

$ 215.7

$ 378.3

89.9

305.6

88.2

466.5

($ in millions)

Operating costs:

Depreciation and amortization ............... $

15.8

2022 versus 2021

283.0

277.4

384.3

22.8

—

11.5

21.8

—

6.4

17.8

22.6

5.0

54.6

18.0

(12.0) %

41.7

3.8

2.0

4.6

(43.0) %

1.9

(34.5)

(27.8)

(3.5)

79.7

(88.3)

(11.2)

(1.1)

• Revenues increased 3.8% led by a 41.7% increase in steel components revenues due to increased deliveries
resulting from improving demand conditions in the North American railcar market. The segment increase was
partially offset by a 12.0% decrease in revenues from inland barges, reflecting continued weak demand conditions
resulting from historically high steel prices.

• Cost of revenues increased by 2.0% driven by higher steel component volumes, partially offset by lower tank

barge volumes.

• Selling, general, and administrative expenses increased 4.6% due to higher overall volumes and increased legal

expenses.

• Operating profit increased by 79.7% due to higher overall volumes and improved margins in our steel components

business.

2021 versus 2020

• Revenues decreased 34.5%. Revenues from inland barges decreased 43.0% due to lower tank and hopper barge
deliveries as demand conditions weakened from the COVID-19 pandemic and increased steel prices. Steel
component revenues increased slightly due to higher deliveries as market fundamentals in the North American
railcar market began to improve from cyclical trough levels reached in 2020.

• Cost of revenues decreased 27.8% driven by lower barge volumes.
• Selling, general, and administrative expenses decreased due to lower compensation costs.

• Operating profit decreased by 88.3% due to lower barge volumes and the associated decline in operational

efficiencies from reduced capacity utilization.

Unsatisfied Performance Obligations (Backlog)

As of December 31, 2022, the backlog for inland barges was $225.1 million compared to $92.7 million as of
December 31, 2021. All of the backlog for inland barges is expected to be delivered during the year ending
December 31, 2023.

Corporate

Year Ended December 31,

Percent Change

2022

2021

2020

2022 versus 2021

2021 versus 2020

($ in millions)

Corporate overhead costs ................... $

66.0 $

70.3 $

57.7

(6.1) %

21.8 %

2022 versus 2021

• Corporate overhead costs decreased 6.1% primarily due to a $1.1 million reduction in acquisition and divestiture-
related expenses as well as by $8.7 million for a legal settlement recognized in the prior year. This decrease was
partially offset by higher compensation-related expenses in the current year.

2021 versus 2020

• Corporate overhead costs increased 21.8% primarily due to an additional $6.9 million of acquisition-related
transaction and integration costs as well as a legal settlement of $8.7 million incurred during the fourth quarter of
2021 related to a previously disclosed matter regarding events that pre-dated the Company's spin-off.

Liquidity and Capital Resources

Arcosa’s primary liquidity requirement consists of funding our business operations, including capital expenditures,
working capital investment, and disciplined acquisitions. Our primary sources of liquidity include cash flow from
operations, our existing cash balance, availability under the revolving credit facility, and, as necessary, the issuance
of additional long-term debt or equity. To the extent we have available liquidity, we may also consider undertaking
new capital investment projects, executing additional strategic acquisitions, returning capital to stockholders, or
funding other general corporate purposes.

Cash Flows

The following table summarizes our cash flows from operating, investing, and financing activities for each of the

last three years:

Year Ended December 31,

2022

2021

2020

(in millions)

Total cash provided by (required by):

Operating activities ...................................................................................... $
Investing activities .......................................................................................
Financing activities ......................................................................................

174.3 $

166.5 $

259.9

90.7

(570.3)

(528.2)

(177.5)

380.9

123.7

Net increase (decrease) in cash and cash equivalents ................................ $

87.5 $

(22.9) $

(144.6)

2022 versus 2021

Operating Activities. Net cash provided by operating activities for the year ended December 31, 2022 was

$174.3 million compared to $166.5 million for the year ended December 31, 2021.

• The changes in current assets and liabilities resulted in a net use of cash of $65.3 million for the year ended
December 31, 2022 compared to a net use of cash of $50.3 million for the year ended December 31, 2021. The
current year activity was primarily driven by increased receivables and inventories due to increased volumes and
higher steel prices.

Investing Activities. Net cash provided by investing activities for the year ended December 31, 2022 was $90.7
million compared to net cash required by investing activities of $570.3 million for the year ended December 31,
2021.

• Capital expenditures for the year ended December 31, 2022 increased to $138.0 million compared to $85.1
million for the year ended December 31, 2021 driven by investment in various growth projects in our Construction
Products and Engineered Structures segments.

• Proceeds of $271.6 million were received during the year ended December 31, 2022 from the sale of the storage
tanks business compared to $18.2 million for the year ended December 31, 2021 from the divestiture of an
asphalt operation acquired as part of the StonePoint acquisition.

• Proceeds from the sale of property, plant, and equipment and other assets totaled $32.2 million for the year ended

December 31, 2022 compared to $20.0 million for the year ended December 31, 2021.

• Cash paid for acquisitions, net of cash acquired, was $75.1 million for the year ended December 31, 2022

compared to $523.4 million for the year ended December 31, 2021.

Financing Activities. Net cash required by financing activities for the year ended December 31, 2022 was

$177.5 million compared to $380.9 million of net cash provided by financing activities for the same period in 2021.

• During the year ended December 31, 2022, the Company received net proceeds from borrowings under its
revolving credit facility of $30 million which was used to partially finance the acquisition of RAMCO. Subsequently,
the Company used $155.0 million of cash proceeds from the sale of the storage tanks business in the fourth
quarter to repay all amounts borrowed under its revolving credit facility. During the year ended December 31,
2021, the Company received proceeds from the issuance of the $400 million senior notes to finance the
acquisition of StonePoint. The Company also received proceeds of $100 million from borrowings under the
revolving credit facility, of which $75 million were repaid during the year.

• Dividends paid during the year ended December 31, 2022 were $9.8 million.

• The Company paid $15.0 million during the year ended December 31, 2022 to repurchase common stock under
the share repurchase program in effect at the time compared to $9.4 million paid during the year ended
December 31, 2021.

2021 versus 2020

Operating Activities. Net cash provided by operating activities for the year ended December 31, 2021 was

$166.5 million compared to $259.9 million for the year ended December 31, 2020.

• The changes in current assets and liabilities resulted in a net use of cash of $50.3 million for the year ended
December 31, 2021 compared to a net source of cash of $3.8 million for the year ended December 31, 2020. The
decrease was primarily driven by increased receivables and inventories due to increased volumes and higher
steel prices.

Investing Activities. Net cash required by investing activities for the year ended December 31, 2021 was $570.3

million compared to $528.2 million for the year ended December 31, 2020.

• Capital expenditures for the year ended December 31, 2021 were $85.1 million compared to $82.1 million for the

year ended December 31, 2020.

• Proceeds from the sale of property, plant, and equipment and other assets totaled $20.0 million for the year ended

December 31, 2021 compared to $9.6 million for the year ended December 31, 2020.

• Cash paid for acquisitions, net of cash acquired, was $523.4 million for the year ended December 31, 2021

compared to $455.7 million during for the year ended December 31, 2020.

Financing Activities. Net cash provided by financing activities during the year ended December 31, 2021 was

$380.9 million compared to $123.7 million of net cash provided by financing activities for the same period in 2020.

• During the year ended December 31, 2021, the Company received proceeds from the issuance of the $400
million senior notes. The Company also received proceeds of $100 million from borrowings under our revolving
credit facility, of which $75 million were repaid during the year. During the year ended December 31, 2020, the
Company received proceeds from the issuance of the $150 million term loan to partially fund the acquisition of
Cherry and, as a precautionary measure at the onset of the pandemic, borrowings under the Company's revolving
credit facility of $100 million which were later repaid during the year.

• Dividends paid during the year ended December 31, 2021 were $9.8 million.

• The Company paid $9.4 million during the year ended December 31, 2021 to repurchase common stock under
the share repurchase program in effect at the time compared to $8.0 million paid during the year ended
December 31, 2020.

Other Investing and Financing Activities

Revolving Credit Facility and Senior Notes

On January 2, 2020, the Company entered into an Amended and Restated Credit Agreement to increase the
revolving credit facility to $500 million and added a term loan facility of $150 million, in each case with a maturity
date of January 2, 2025. The entire term loan was advanced on January 2, 2020 in connection with the closing of
the acquisition of Cherry. As of December 31, 2022, the term loan had a remaining balance of $136.8 million.

As of December 31, 2022, we had no outstanding loans borrowed under the revolving credit facility, and there
were approximately $25.3 million of letters of credit issued, leaving $474.7 million available. During 2022, the
Company borrowed a net $30 million, which was used to partially finance the acquisition of RAMCO. In the fourth
quarter, the Company used $155.0 million of the cash proceeds from the sale of the storage tanks business to repay
all outstanding loans borrowed under its revolving credit facility. See Note 2 Acquisitions and Divestitures for
additional information. Of the outstanding letters of credit as of December 31, 2022, $24.7 million are expected to
expire in 2023, with the remainder in 2024. The majority of our letter of credit obligations support the Company’s
various insurance programs and generally renew by their terms each year.

The interest rates under the revolving credit facility and term loan are variable based on LIBOR or an alternate
base rate plus a margin. A commitment fee accrues on the average daily unused portion of the revolving facility. The
margin for borrowing and commitment fee rate are determined based on Arcosa’s leverage as measured by a
consolidated total indebtedness to consolidated EBITDA ratio. The margin for borrowing ranges from 1.25% to
2.00% and was set at LIBOR plus 1.75% as of December 31, 2022. The commitment fee rate ranges from 0.20% to
0.35% and was set at 0.30% at December 31, 2022.

The Company's revolving credit and term loan facilities require the maintenance of certain ratios related to
leverage and interest coverage. As of December 31, 2022, we were in compliance with all such financial covenants.
Borrowings under the credit agreement are guaranteed by certain wholly owned subsidiaries of the Company.

In order to increase liquidity in anticipation of the acquisition of StonePoint, the Company entered into an
unsecured 364-Day Credit Agreement on March 26, 2021 providing for a revolving line of credit of $150.0 million,
with an outside maturity date of March 25, 2022, with pricing, covenants, and guarantees substantially similar to the
Company’s existing revolving credit and term loan facilities. Per the terms of the facility, it terminated on April 6,
2021 upon the closing of the Company’s private offering of $400.0 million in senior notes.

We believe, based on our current business plans, that our existing cash, available liquidity, and cash flow from
operations will be sufficient to fund necessary capital expenditures and operating cash requirements for the
foreseeable future.

Repurchase Program

In December 2022, the Company’s Board of Directors (the “Board”) authorized a new $50 million share
repurchase program effective January 1, 2023 through December 31, 2024 to replace a program of the same
amount that expired on December 31, 2022. Under the previous program, the Company repurchased 298,629
shares at a cost of $15.0 million during the year ended December 31, 2022. During the year ended December 31,
2021, the Company repurchased 170,168 shares at a cost of $9.4 million. See Note 1 of the Notes to Consolidated
Financial Statements.

Derivative Instruments

In December 2018, the Company entered into an interest rate swap instrument, effective as of January 2, 2019
and expiring in October 2023, to reduce the effect of changes in the variable interest rates associated borrowings
under the Amended and Restated Credit Agreement. The instrument carried an initial notional amount of $100
million, thereby hedging the first $100 million of borrowings. The instrument effectively fixes the LIBOR component
of the borrowings at a monthly rate of 2.71%. As of December 31, 2022, the Company has recorded an asset of
$1.8 million for the fair value of the instrument, all of which is recorded in accumulated other comprehensive loss.
See Note 3 and Note 7 of the Notes to Consolidated Financial Statements.

Stock-Based Compensation

We have a stock-based compensation plan for our directors, officers, and employees. See Note 13 of the Notes to

Consolidated Financial Statements.

Employee Retirement Plans

In 2022, we sponsored an employee savings plan under the 401(k) plan that covered substantially all employees
and included a company matching contribution with the investment of the funds directed by the participants. The
Company also contributed to a multiemployer defined benefit pension plan under the terms of a collective-
bargaining agreement that covered certain union-represented employees at one of our facilities. See Note 11 of the
Notes to Consolidated Financial Statements.

As of December 31, 2022, we had the following contractual obligations and commercial commitments:

Contractual Obligations and Commercial Commitments

Total

Next 12
Months

Beyond 12
Months

(in millions)

Debt ....................................................................................................................... $
Operating leases .................................................................................................
Finance leases ....................................................................................................
Obligations for purchase of goods and services ............................................
Total ....................................................................................................................... $

536.8 $

8.4 $

528.4

40.3

20.3

181.8

7.8

6.9

177.1

32.5

13.4

4.7

779.2 $

200.2 $

579.0

See Note 15 of the Notes to Consolidated Financial Statements.

Critical Accounting Policies and Estimates

MD&A discusses our Consolidated Financial Statements, which have been prepared in accordance with
accounting principles generally accepted in the U.S. The preparation of these financial statements requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period.

On an on-going basis, management evaluates its estimates and judgments based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions or conditions.

Our accounting policies are more fully described in Note 1 of the Notes to Consolidated Financial Statements. We
believe the following critical accounting policies include our more significant judgments and estimates used in the
preparation of our Consolidated Financial Statements.

Business Combinations and Allocation of Purchase Price

We account for business combinations under the acquisition method of accounting. As of the date that control in
the entity is obtained, the purchase price of the transaction is allocated to the identifiable assets acquired and
liabilities assumed based on their estimated fair values. The purchase price is determined based on the fair value of
consideration transferred to and liabilities assumed from the seller as of the date of acquisition. Goodwill is recorded
for the excess of the purchase price over the net fair value of the identifiable assets acquired and liabilities
assumed. The determination of the acquisition date fair value of the assets acquired and liabilities assumed requires
management's judgment and involves the use of significant estimates and assumptions, especially with respect to
future expected cash flows, useful lives, and discount rates.

We commonly use an excess earnings method to value acquired mineral reserves and separately identifiable
intangible assets, which may include, but are not limited to, customer relationships, permits, and backlog. Significant
assumptions used in the valuation of these types of assets may include projected revenues, production costs,
capital requirements, customer attrition rates, and discount rates. Changes in the assumptions used could have a
significant impact on the estimated acquisition date fair value of the related asset and any future depreciation,
depletion, or amortization expense.

The estimated remaining useful lives of acquired tangible and definite-lived intangible assets are based on the
length of time that the assets are expected to provide value to the Company and have a significant impact on
current and future period earnings.

Management's estimates of fair value are based on assumptions believed to be reasonable, but which are
inherently uncertain and, as a result, actual results may differ from estimates. We may adjust the amounts
recognized in an acquisition during a measurement period after the acquisition date. Any such adjustments are the
result of subsequently obtaining additional information that existed at the acquisition date regarding the assets
acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or
decreases to goodwill, if any, recognized in the transaction. The cumulative impact of measurement period
adjustments on depreciation, amortization, and other income statement items are recognized in the period the
adjustment is determined.

Acquisition costs are expensed as incurred and are included in selling, general, and administrative expenses in
the accompanying Consolidated Statements of Operations. We include results of operations from acquired
businesses in our Consolidated Financial Statements from the effective date of the acquisition.

Long-lived Assets

As of December 31, 2022, net property, plant, and equipment and net intangible assets represent 36% and 8% of
the Company's total assets, respectively. The methods for recognition of depreciation, depletion, and amortization
are based on estimates regarding the expected future economic benefit to the Company and any potential
impairment to the value of such assets could be significant. As such, the accounting treatment for these long-lived
assets is a critical accounting policy.

Property, plant, and equipment are stated at cost and depreciated or depleted over their estimated useful lives,
primarily using the straight-line method. Depletion of mineral reserves is calculated based on estimated proven and
probable reserves using the units-of-production method on a quarry-by-quarry basis. Intangible assets, primarily
consisting of customer relationships and permits, are recorded at fair value on the date of acquisition and amortized
over their estimated useful lives using the straight-line method. See Note 1 of the Notes to Consolidated Financial
Statements for additional information regarding the ranges of estimated useful lives by category of property, plant,
and equipment and intangible assets.

We periodically evaluate the carrying value of long-lived assets to be held and used for potential impairment
whenever facts and circumstances indicate that the carrying amount of an asset or asset group may not be
recoverable. The carrying value of long-lived assets to be held and used is considered impaired when the carrying
value is not recoverable through undiscounted future cash flows and the fair value of the asset or asset group is
less than their carrying value. Fair value is determined primarily using the anticipated cash flows discounted at a
rate commensurate with the risks involved or market quotes as available. Significant estimates and judgments that
most significantly impact the impairment analysis may include projected revenues, operating profit, and the
remaining useful life over which the asset or asset group is expected to generate cash flows.

Impairment losses on long-lived assets held for sale are determined in a similar manner, except that estimated

fair values are reduced by the estimated cost to dispose of the assets.

The Company had no impairment charges during the year ended December 31, 2022. Impairment charges of
$2.9 million were recognized during the year ended December 31, 2021 related to assets that were classified as
held for sale during the year. Impairment charges of $7.1 million were recognized during the year ended
December 31, 2020 related to assets that were disposed of during the year.

Goodwill

Goodwill is required to be tested for impairment annually or on an interim basis whenever events or
circumstances change indicating that the carrying amount of the goodwill might be impaired. The quantitative
goodwill impairment test is assessed at the “reporting unit” level by comparing the reporting unit's estimated fair
value with the carrying amount of its net assets. If the carrying value of the reporting unit exceeds its fair value, an
impairment loss is recognized. The goodwill impairment is measured as the excess of the reporting unit's carrying
value over its fair value, not to exceed the amount of goodwill allocated to the reporting unit. The estimates and
judgments that most significantly affect the fair value calculations are assumptions, consisting of level three inputs,
related to revenue and operating profit growth, discount rates, and exit multiples.

As of December 31, 2022, goodwill totaled $958.5 million. Based on the Company's annual goodwill impairment
test, performed at the reporting unit level as of December 31, 2022, the Company concluded that no impairment
charges were determined to be necessary and that none of the reporting units evaluated were at risk of failing the
goodwill impairment test. A reporting unit is considered to be at risk if its estimated fair value does not exceed the
carrying value of its net assets by 10% or more. See Note 1 and Note 6 of the Notes to Consolidated Financial
Statements.

We believe that the assumptions used in our impairment analysis are reasonable; however, given the
uncertainties of the economy and its potential impact on our businesses, there can be no assurance that our
estimates and assumptions regarding the fair value of our reporting units will prove to be accurate predictions of the
future. Additionally, variations in any of these assumptions may result in different calculations in fair value that could
result in an impairment charge.

A 100 basis point increase in the discount rate or reduction in the terminal growth rate would not have resulted in

an impairment of goodwill for any of our reporting units as of December 31, 2022.

Contingencies and Litigation

The Company is involved in claims and lawsuits and environmental matters incidental to our business. We
evaluate our exposure to such claims and suits periodically and establish accruals for these contingencies when
probable losses can be reasonably estimated. The range of reasonably possible losses for such matters, taking into
consideration our rights in indemnity and recourse to third parties was $0.3 million to $1.9 million as of
December 31, 2022 and $9.1 million to $9.5 million as of December 31, 2021.

Based on information currently available with respect to such claims and lawsuits, including information on claims
and lawsuits as to which the Company is aware but for which the Company has not been served with legal process,
it is management’s opinion that the ultimate outcome of all such claims and litigation, including settlements, in the
aggregate will not have a material adverse effect on the Company’s financial condition for purposes of financial
reporting. However, resolution of certain claims or lawsuits by settlement or otherwise, could impact the operating
results of the reporting period in which such resolution occurs. For additional information, see Note 15 of the Notes
to Consolidated Financial Statements.

Income Taxes

The liability method is used to account for income taxes. Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to temporary differences between the financial statement carrying amount of
existing assets and liabilities and their respective tax bases and other tax attributes using currently enacted tax
rates. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for
income taxes in the period that includes the enactment date. Management is required to estimate the timing of the
recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax
assets, and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to
determine the amount of such deferred tax assets and liabilities. Changes in the calculated deferred tax assets and
liabilities may occur in certain circumstances including statutory income tax rate changes, statutory tax law changes,
or changes in the structure or tax status of the Company. The Company assesses whether a valuation allowance
should be established against its deferred tax assets based on consideration of all available evidence, both positive
and negative, using a more likely than not standard. This assessment considers, among other matters, the nature,
frequency, and severity of recent losses; a forecast of future profitability; the duration of statutory carryback and
carryforward periods; the Company’s experience with tax attributes expiring unused; and tax planning alternatives.

As of December 31, 2022, our adjusted net deferred tax liability was $166.0 million. At December 31, 2022, the
Company had $60.3 million federal consolidated net operating loss carryforwards, primarily from businesses
acquired, and $6.6 million of tax-effected state loss carryforwards remaining. In addition, the Company had $9.1
million of foreign net operating loss carryforwards that will begin to expire in the year 2023. We have established a
valuation allowance for state and foreign tax operating losses and credits that we have estimated may not be
realizable.

For additional information, see Note 10 of the Notes to Consolidated Financial Statements.

See Note 1 of the Notes to Consolidated Financial Statements for information about recent accounting

pronouncements.

Recent Accounting Pronouncements

Forward-Looking Statements

This annual report on Form 10-K (or statements otherwise made by the Company or on the Company’s behalf
from time to time in other reports, filings with the Securities and Exchange Commission (“SEC”), news releases,
conferences, internet postings or otherwise) contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements contained herein that are not historical facts are forward-
looking statements and involve risks and uncertainties. These forward-looking statements include expectations,
beliefs, plans, objectives, future financial performances, estimates, projections, goals, and forecasts. Arcosa uses
the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,”
“plans,” and similar expressions to identify these forward-looking statements. Potential factors, which could cause
our actual results of operations to differ materially from those in the forward-looking statements include, among
others:

•

the impact of the COVID-19 pandemic on our sales, operations, supply chain, employees, and financial
condition;

• market conditions and customer demand for our business products and services;
•
•
•

the cyclical nature of the industries in which we compete;
variations in weather in areas where our products are manufactured, sold, used, or installed;
naturally occurring events and other events and disasters causing disruption to our manufacturing, product
deliveries, and production capacity, thereby giving rise to an increase in expenses, loss of revenue, and
property losses;
competition and other competitive factors;
our ability to identify, consummate, or integrate acquisitions of new businesses or products, or divest any
business;
the timing of introduction of new products;
the timing and delivery of customer orders or a breach of customer contracts;
the credit worthiness of customers and their access to capital;
product price changes;
changes in mix of products sold;
the costs incurred to align manufacturing capacity with demand and the extent of its utilization;
the operating leverage and efficiencies that can be achieved by our manufacturing businesses;
availability and costs of steel, component parts, supplies, and other raw materials;
changing technologies;
surcharges and other fees added to fixed pricing agreements for steel, component parts, supplies and other
raw materials;
increased costs due to increased inflation;
interest rates and capital costs;
counter-party risks for financial instruments;
long-term funding of our operations;
taxes;
the stability of the governments and political and business conditions in certain foreign countries, particularly
Mexico;
changes in import and export quotas and regulations;
business conditions in emerging economies;
costs and results of litigation;
changes in accounting standards or inaccurate estimates or assumptions in the application of accounting
policies;
legal, regulatory, and environmental
including compliance of our products with mandated
specifications, standards, or testing criteria and obligations to remove and replace our products following
installation or to recall our products and install different products manufactured by us or our competitors;
actions by the executive and legislative branches of the U.S. government relative to federal government
budgeting, taxation policies, government expenditures, U.S. borrowing/debt ceiling limits, and trade policies,
including tariffs, and border closures;
the inability to sufficiently protect our intellectual property rights;
our ability to mitigate against cybersecurity incidents, including ransomware, malware, phishing emails, and
other electronic security threats;
the improper use of social and other digital media to disseminate false, misleading, and/or unreliable or
inaccurate information about the Company or demonstrate actions that negatively reflect on the Company;
if the Company's ESG efforts and related public disclosures are not favorably received by stockholders;

•
•

•
•
•
•
•
•
•
•
•
•

•
•
•
•
•
•

•
•
•
•

•

•
•

•

issues,

•

if the Former Parent fails to perform under various transaction agreements that were executed as part of the
Separation;
if the distribution of shares of Arcosa resulting from the Separation, together with certain related transactions,
does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, the
Company's stockholders at the time of the distribution and the Company could be subject to significant tax
liability; and
if the Separation does not comply with legal dividend requirements.

Any forward-looking statement speaks only as of the date on which such statement is made. Arcosa undertakes
no obligation to update any forward-looking statement to reflect events or circumstances after the date on which
such statement is made. For a discussion of risks and uncertainties that could cause actual results to differ from
those contained in the forward-looking statements, see Item 1A, “Risk Factors” included elsewhere herein.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Our earnings could be affected by changes in interest rates due to the impact those changes have on our
variable rate revolving credit and term loan facility. As of December 31, 2022, we had no outstanding loans
borrowed under the revolving credit facility and the term loan had a remaining balance of $136.8 million. If interest
rates average one percentage point more in fiscal year 2023 than they did during 2022, our interest expense would
increase by $0.4 million, after considering the effects of interest rate hedges. In comparison, at December 31, 2021,
we estimated that an average increase of one percentage point would increase interest expense by $1.7 million.

As of December 31, 2022, we had $400.0 million outstanding on our 4.375% senior notes (the "Notes") due 2029.
The Notes have a 4.375% fixed annual interest rate and, therefore, our economic interest rate exposure is fixed.
However, the values of the Notes are exposed to interest rate risk. We estimate that a one percentage point
increase in market interest rates would decrease the fair value of the Notes by approximately $17.9 million. We
carry the Notes at face value less unamortized discount on our Consolidated Balance Sheet and present the fair
value for disclosure purposes only.

In addition, we are subject to market risk related to our net investments in our foreign subsidiaries. The net
investment in foreign subsidiaries as of December 31, 2022 was $109.6 million. The impact of such market risk
exposures as a result of foreign exchange rate fluctuations has not been significant to Arcosa. See Note 9 of the
Consolidated Financial Statements.

Item 8. Financial Statements and Supplementary Data.

Arcosa, Inc.

Index to Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) ..........................................................
Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020 ..................
Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021, and
2020.....................................................................................................................................................................................
Consolidated Balance Sheets as of December 31, 2022 and 2021 .........................................................................
Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020 .................
Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022, 2021, and 2020
Notes to Consolidated Financial Statements ................................................................................................................

Page

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Arcosa, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Arcosa, Inc. and subsidiaries (the Company) as
of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income,
stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2022, and the
related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company at December 31,
2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended
December 31, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on
criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (2013 framework) and our report dated February 24, 2023 expressed an unqualified
opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to
accounts or disclosures that are material to the financial statements and (2) involved especially challenging,
subjective or complex judgments. The communication of the critical audit matter does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.

Valuation of Goodwill

Description of the
Matter

How We
Addressed the
Matter in Our
Audit

At December 31, 2022, the Company’s goodwill was $958.5 million and represented
29% of total assets. As discussed in Note 1 of the financial statements, goodwill is
required to be tested for impairment annually, or on an interim basis whenever events
or circumstances change, indicating that the carrying amount of the goodwill might be
impaired.

Auditing management’s annual goodwill impairment test is complex due to the
significant measurement uncertainty in determining the fair value of each reporting
unit. In particular, the fair value estimates are sensitive to significant assumptions such
as weighted average cost of capital, revenue growth rates, and projected operating
margins, which are affected by expected future market or economic conditions. Our
risk assessment for goodwill impairment considers the amount by which the estimated
fair value of a reporting unit exceeds the carrying value of its net assets since the level
of precision required for estimated fair value increases as the difference between the
estimated fair value and the carrying value narrows.

We tested controls over the Company’s goodwill impairment process for estimating the
fair value of the Company’s reporting units. For example, we tested controls over
management’s review of the valuation model and of the significant assumptions used
to develop the prospective financial information, including management’s controls to
validate that the data used in the valuation was complete and accurate. To test the fair
value of the Company’s reporting units, our audit procedures included: (i) assessing
the appropriateness of the methodology utilized by management to estimate fair value;
(ii) assessing the significant assumptions used by management by comparing them to
current industry and economic trends, considering changes in the Company’s business
model, customer base or product mix and other relevant factors; (iii) performing
sensitivity analyses of the significant assumptions; and (iv) reviewing the reconciliation
of the fair value of the reporting units to the market capitalization of the Company and
assessing the resulting control premium. In addition, we involved valuation specialists
to assist us in evaluating the components and assumptions that are most significant to
the fair value estimate.

We have served as the Company's auditor since 2015.

Dallas, Texas
February 24, 2023

/s/ ERNST & YOUNG LLP

Arcosa, Inc. and Subsidiaries
Consolidated Statements of Operations

Revenues ........................................................................................................... $
Operating costs:

Cost of revenues ............................................................................................
Selling, general, and administrative expenses ..........................................
Gain on sale of storage tanks business .....................................................
Impairment charge .........................................................................................

Total operating profit .........................................................................................

Interest expense ...............................................................................................
Other, net (income) expense ..........................................................................

Income before income taxes ...........................................................................
Provision for income taxes:

Current ............................................................................................................
Deferred ...........................................................................................................

Year Ended December 31,

2022

2021

2020

(in millions, except per share amounts)

2,242.8 $

2,036.4 $

1,935.6

1,820.0
262.8
(189.0)
—

1,893.8

349.0

1,670.2
256.0
—

2.9

1,929.1

107.3

31.0

1.8

32.8

316.2

25.6

44.8

70.4

23.4

0.3

23.7

83.6

2.1

11.9

14.0

1,553.6
223.1
—

7.1

1,783.8

151.8

10.6

3.0

13.6

138.2

22.0

9.6

31.6

Net income ......................................................................................................... $

245.8 $

69.6 $

106.6

Net income per common share:

Basic ................................................................................................................ $
Diluted .............................................................................................................. $

5.08 $

5.05 $

1.44 $

1.42 $

Weighted average number of shares outstanding:

Basic ................................................................................................................
Diluted ..............................................................................................................
Dividends declared per common share ........................................................ $

48.2

48.5

48.1

48.6

0.20 $

2.20

2.18

48.0

48.5

0.20

See accompanying Notes to Consolidated Financial Statements.

Arcosa, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income

Net income ..................................................................................................... $
Other comprehensive income (loss):

Derivative financial instruments:
Unrealized gains (losses) arising during the period, net of tax
expense (benefit) of $0.9, $0.3, and ($1.0) ..........................................
Reclassification adjustments for losses included in net income,
net of tax expense (benefit) of ($0.2), ($0.4), and ($0.4) ...................
Currency translation adjustment:
Unrealized gains (losses) arising during the period, net of tax
expense (benefit) of ($0.1), $0.0, and ($0.1) .......................................

Year Ended December 31,

2022

2021

2020

(in millions)

245.8 $

69.6 $

106.6

3.5

0.8

(0.7)

3.6

1.1

1.4

0.3

2.8

(3.7)

1.6

(0.3)

(2.4)

Comprehensive income ............................................................................... $

249.4 $

72.4 $

104.2

See accompanying Notes to Consolidated Financial Statements.

Arcosa, Inc. and Subsidiaries
Consolidated Balance Sheets

December 31,
2022

December 31,
2021

(in millions, except per share
amounts)

Current assets:

ASSETS

Cash and cash equivalents ............................................................................................ $
Receivables, net of allowance for doubtful accounts of $5.5 and $4.2 ...................
Inventories:
Raw materials and supplies .........................................................................................
Work in process ..............................................................................................................
Finished goods ...............................................................................................................

Other ..................................................................................................................................
Total current assets ............................................................................................................

160.4 $

334.2

126.3

59.2

130.3

315.8

46.4

856.8

72.9

310.8

150.8

53.6

120.1

324.5

59.7

767.9

Property, plant, and equipment, net

1,199.6

1,201.9

Goodwill

Intangibles, net

Deferred income taxes

Other assets

958.5

256.1

9.6

60.0

934.9

220.3

13.2

49.9

3,340.6 $

3,188.1

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable ............................................................................................................ $
Accrued liabilities .............................................................................................................
Advance billings ...............................................................................................................
Current portion of long-term debt ..................................................................................
Total current liabilities ........................................................................................................

Debt ......................................................................................................................................
Deferred income taxes ......................................................................................................
Other liabilities ....................................................................................................................

Stockholders’ equity:

Common stock, $0.01 par value – 200.0 shares authorized at December 31,
2022; 200.0 at December 31, 2021; 48.4 shares issued and outstanding at
December 31, 2022; 48.3 at December 31, 2021 ......................................................
Capital in excess of par value ........................................................................................
Retained earnings ...........................................................................................................
Accumulated other comprehensive loss ......................................................................
Treasury stock – 0.0 shares at December 31, 2022; 0.0 at December 31, 2021 ..

See accompanying Notes to Consolidated Financial Statements.

190.7 $

121.8

40.5

14.7

367.7

535.9

175.6

77.0
1,156.2

0.5
1,684.1
515.5
(15.7)
—
2,184.4
3,340.6 $

184.7

145.9

18.6

14.8

364.0

664.7

134.0

72.1
1,234.8

0.5
1,692.6
279.5
(19.3)
—
1,953.3
3,188.1

Arcosa, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

Operating activities:

Net income .................................................................................................... $
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, depletion, and amortization ..............................................
Impairment charge ......................................................................................
Stock-based compensation expense ......................................................
Provision for deferred income taxes ........................................................
Gains on disposition of property and other assets ................................
Gain on sale of storage tanks business ..................................................
(Increase) decrease in other assets ........................................................
Increase (decrease) in other liabilities .....................................................
Other .............................................................................................................
Changes in current assets and liabilities:

(Increase) decrease in receivables .......................................................
(Increase) decrease in inventories ........................................................
(Increase) decrease in other current assets ........................................
Increase (decrease) in accounts payable ............................................
Increase (decrease) in advance billings ...............................................
Increase (decrease) in accrued liabilities .............................................
Net cash provided by operating activities .................................................

Investing activities:

Proceeds from disposition of property and other assets ......................
Capital expenditures ..................................................................................
Acquisitions, net of cash acquired ...........................................................
Proceeds from sale of businesses ...........................................................
Net cash provided (required) by investing activities ...............................

Financing activities:

Payments to retire debt ............................................................................
Proceeds from issuance of debt ...............................................................
Shares repurchased ...................................................................................
Dividends paid to common shareholders ................................................
Purchase of shares to satisfy employee tax on vested stock ..............
Debt issuance costs ...................................................................................
Other .............................................................................................................
Net cash (required) provided by financing activities ...............................
Net increase (decrease) in cash and cash equivalents ............................
Cash and cash equivalents at beginning of period ....................................
Cash and cash equivalents at end of period ............................................... $

Year Ended December 31,

2022

2021

2020

(in millions)

245.8 $

69.6 $

106.6

154.1

—

19.1

44.8

(11.7)

(189.0)

(3.8)

(16.0)

(3.7)

(65.9)

(26.7)

(8.5)

27.0

21.9

(13.1)

174.3

144.3

2.9

18.0

11.9

(10.3)

—

5.2

(22.6)

(2.2)

(25.9)

(24.6)

(13.3)

34.7

(26.1)

4.9

166.5

32.2

20.0

(138.0)

(85.1)

(75.1)

(523.4)

114.5

7.1

20.0

9.6

(6.4)

—

(7.6)

11.5

0.8

(13.5)

32.6

1.9

43.5

(31.6)

(29.1)

259.9

9.6

(82.1)

(455.7)

—

271.6

90.7

(220.2)
80.0
(15.0)
(9.8)
(12.5)
—
—
(177.5)
87.5
72.9

160.4 $

18.2

(570.3)

(528.2)

(83.2)
500.0

(9.4)
(9.8)
(10.1)
(6.6)
—
380.9
(22.9)
95.8
72.9 $

(104.9)
251.4
(8.0)
(9.8)
(3.8)
—
(1.2)
123.7
(144.6)
240.4
95.8

Income tax payments for the years ended 2022, 2021, and 2020 were $21.9 million, $2.9 million, and $36.9 million,
respectively.

See accompanying Notes to Consolidated Financial Statements.

Arcosa, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity

Common
Stock

Treasury
Stock

$0.01
Par
Value

Capital in
Excess of
Par Value

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Shares Amount

Total
Stockholders’
Equity

(in millions, except par value)

Balances at December 31, 2019 ...............

48.3 $

0.5 $

1,686.7 $

122.9 $

(19.7)

— $

1,790.4

Net income ...................................................

—

Other comprehensive loss .........................

—

Cash dividends on common stock ...........

—

Restricted shares, net ................................

0.3

Shares repurchased ...................................

—

Retirement of treasury stock .....................

(0.4)

Other .............................................................

—

23.3

—

(15.1)

(0.8)

106.6

—

(9.8)

—

(2.4)

—

(0.2)

0.4

—

(7.1)

(8.0)

15.1

—

106.6

(2.4)

(9.8)

16.2

(8.0)

—

(0.8)

Balances at December 31, 2020 ...............

48.2 $

0.5 $

1,694.1 $

219.7 $

(22.1)

— $

1,892.2

Net income ...................................................

—

Other comprehensive income ...................

—

Cash dividends on common stock ...........

—

Restricted shares, net ................................

0.5

Shares repurchased ...................................

—

Retirement of treasury stock .....................

(0.4)

—

20.8

—

(22.3)

69.6

—

(9.8)

—

2.8

—

(0.2)

0.4

—

(12.9)

(9.4)

22.3

69.6

2.8

(9.8)

7.9

(9.4)

—

Balances at December 31, 2021 ...............

48.3 $

0.5 $

1,692.6 $

279.5 $

(19.3)

— $

1,953.3

Net income ...................................................

—

Other comprehensive income ...................

—

Cash dividends on common stock ...........

—

Restricted shares, net ................................

0.7

Shares repurchased ...................................

—

Retirement of treasury stock .....................

(0.6)

—

20.1

—

(28.6)

245.8

—

(9.8)

—

3.6

—

(0.3)

0.6

—

(13.6)

(15.0)

28.6

245.8

3.6

(9.8)

6.5

(15.0)

—

Balances at December 31, 2022 ...............

48.4 $

0.5 $

1,684.1 $

515.5 $

(15.7)

— $

2,184.4

See accompanying Notes to Consolidated Financial Statements.

Arcosa, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Note 1. Overview and Summary of Significant Accounting Policies

Basis of Presentation

Arcosa, Inc. and its consolidated subsidiaries (“Arcosa,” the “Company,” “we,” or “our”), headquartered in Dallas,
Texas, is a provider of infrastructure-related products and solutions with leading brands serving construction,
engineered structures, and transportation markets in North America. Arcosa is a Delaware corporation and was
incorporated in 2018 in connection with the separation (the “Separation”) of Arcosa from Trinity Industries, Inc.
(“Trinity” or “Former Parent”) on November 1, 2018 as an independent, publicly-traded company, listed on the New
York Stock Exchange.

The accompanying Consolidated Financial Statements present our historical financial position, results of
operations, comprehensive income/loss, and cash flows in accordance with accounting principles generally
accepted in the U.S. (“GAAP”). All significant intercompany accounts and transactions have been eliminated.

Stockholders' Equity

Revenue Recognition

Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance
obligations. The transaction price does not include any amounts collected on behalf of third parties. The Company
recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a
customer. The following is a description of principal activities from which the Company generates its revenue,
separated by reportable segments. Payments for our products and services are generally due within normal
commercial terms. For a further discussion regarding the Company’s reportable segments, see Note 4 Segment
Information.

Construction Products

The Construction Products segment recognizes substantially all revenue when the customer has accepted the

product and legal title of the product has passed to the customer.

Engineered Structures

Within the Engineered Structures segment, revenue is recognized for our wind tower, certain utility structure, and
certain storage tanks product lines over time as the products are manufactured using an input approach based on
the costs incurred relative to the total estimated costs of production. We recognize revenue over time for these
products as they are highly customized to the needs of an individual customer resulting in no alternative use to the
Company if not purchased by the customer after the contract is executed, and we have the right to bill the customer
for our work performed to date plus at least a reasonable profit margin for work performed. As of December 31,
2022 and 2021, we had a contract asset of $77.5 million and $54.2 million, respectively, which is included in
receivables, net of allowance, within the Consolidated Balance Sheets. The increase in the contract asset during
2022 is due to timing of deliveries. For all other products, revenue is recognized when the customer has accepted
the product and legal title of the product has passed to the customer.

Transportation Products

The Transportation Products segment recognizes revenue when the customer has accepted the product and legal

title of the product has passed to the customer.

Unsatisfied Performance Obligations

The following table includes estimated revenue expected to be recognized in future periods related to
performance obligations that are unsatisfied or partially satisfied as of December 31, 2022 and the percentage of
the outstanding performance obligations as of December 31, 2022 expected to be delivered during 2023:

Unsatisfied performance obligations at

December 31, 2022

Total
Amount

(in millions)

Percent expected
to be delivered in
2023

Engineered Structures:

Utility, wind, and related structures ............................................................. $
Storage tanks ................................................................................................. $

671.3

—

57 %

Transportation Products:

Inland barges ................................................................................................. $

225.1

100 %

Approximately 24% of the unsatisfied performance obligations for our utility, wind, and related structures in our
Engineered Structures segment are expected to be delivered during the year ending 2024, with the remainder
expected to be delivered during the year ending 2025. On October 3, 2022, the Company completed the sale of its
storage tanks business and its related backlog. Note 2 Acquisitions and Divestitures.

Income Taxes

The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of
temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. Valuation allowances reduce deferred tax assets to an amount that will
more likely than not be realized.

The Company regularly evaluates the likelihood of realization of tax benefits derived from positions it has taken in
various federal and state filings after consideration of all relevant facts, circumstances, and available information.
For those tax positions that are deemed more likely than not to be sustained, the Company recognizes the benefit it
believes is cumulatively greater than 50% likely to be realized. To the extent the Company were to prevail in matters
for which accruals have been established or be required to pay amounts in excess of recorded reserves, the
effective tax rate in a given financial statement period could be materially impacted.

Financial Instruments

The Company considers all highly liquid debt instruments to be cash and cash equivalents if purchased with a
maturity of three months or less. Financial instruments that potentially subject the Company to a concentration of
credit risk are primarily cash investments and receivables. The Company places its cash investments in bank
deposits and highly rated money market funds, and its investment policy limits the amount of credit exposure to any
one commercial issuer. We seek to limit concentrations of credit risk with respect to receivables with control
procedures that monitor the credit worthiness of customers, together with the large number of customers in the
Company's customer base and their dispersion across different industries and geographic areas. As receivables are
generally unsecured, the Company maintains an allowance for doubtful accounts based upon the expected credit
losses. Receivable balances determined to be uncollectible are charged against the allowance. To accelerate the
conversion to cash, the Company may sell a portion of its trade receivables to third parties. The Company has no
recourse to these receivables once they are sold but may have continuing involvement related to servicing and
collection activities. The impact of these transactions in the Company's Consolidated Statements of Operations for
the years ended December 31, 2022, 2021, and 2020 was not significant. The carrying values of cash, receivables,
and accounts payable are considered to be representative of their respective fair values.

Inventories

Inventories are valued at the lower of cost or net realizable value. Cost is determined principally on the first in first
out method. The value of inventory is adjusted for damaged, obsolete, excess, or slow-moving inventory. Work in
process and finished goods include material, labor, and overhead.

Property, Plant, and Equipment

Property, plant, and equipment are stated at cost and depreciated or depleted over their estimated useful lives,
primarily using the straight-line method. The estimated useful lives are: buildings and improvements - 5 to 30 years;
leasehold improvements - the lesser of the term of the lease or 11 years; and machinery and equipment - 3 to 15
years. Depletion of mineral reserves is calculated based on estimated proven and probable reserves using the
units-of-production method on a quarry-by-quarry basis. The costs of ordinary maintenance and repair are charged
to operating costs as incurred.

Goodwill and Intangible Assets

Goodwill is required to be tested for impairment annually, or on an interim basis when events or changes in
circumstances indicate the carrying amount may not be recoverable. The quantitative goodwill impairment test is
assessed at the “reporting unit” level by comparing the reporting unit's estimated fair value with the carrying amount
of its net assets. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized.
The goodwill impairment is measured as the excess of the reporting unit's carrying value over its fair value, not to
exceed the amount of goodwill allocated to the reporting unit. The estimates and judgments that most significantly
affect the fair value calculations are assumptions, consisting of level three inputs, related to revenue and operating
profit growth, discount rates, and exit multiples. As of December 31, 2022 and 2021, the Company's annual
impairment test of goodwill was completed at the reporting unit level and no impairment charges were determined to
be necessary.

Intangible assets are recorded at fair value, using level three inputs, on the date of acquisition and evaluated to
determine their estimated useful life. These assets primarily consist of customer relationships and permits and are
amortized using the straight-line method. The estimated useful lives for definite-lived intangible assets are:
customer relationships - 2 to 22 years; permits - 10 to 29 years; and other - 5 to 10 years.

Indefinite-lived intangible assets primarily relate to an acquired trademark. These assets are not amortized but are
evaluated for impairment annually, or on an interim basis when events or changes in circumstances indicate the
carrying amount may not be recoverable. The impairment test compares the fair value of each asset to its carrying
value using a relief from royalty method. As of December 31, 2022 and 2021, the Company's annual impairment test
was completed and no impairment charges were determined to be necessary.

Long-lived Assets

The Company evaluates the carrying value of long-lived assets to be held and used, including property, plant, and
equipment and definite-lived intangibles, for potential impairment when events or changes in circumstances indicate
the carrying amount may not be recoverable. The carrying value of long-lived assets to be held and used is
considered impaired only when the carrying value is not recoverable through undiscounted future cash flows and
the fair value of the assets is less than their carrying value. Fair value is determined primarily using the anticipated
cash flows discounted at a rate commensurate with the risks involved or market quotes as available. Impairment
losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced by
the estimated cost to dispose of the assets.

Workers’ Compensation

The Company is effectively self-insured for workers’ compensation claims. A third-party administrator is used to
process claims. We accrue our workers' compensation liability based upon independent actuarial studies. As of
December 31, 2022 and 2021, the Company's accrual for worker's compensation costs was $28.2 million and
$28.9 million, respectively, which is included in accrued liabilities and other long-term liabilities within the
Consolidated Balance Sheets.

Warranties

The Company provides various express, limited product warranties that generally range from 1 to 5 years
depending on the product. The warranty costs are estimated using a two-step approach. First, an engineering
estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical,
accepted claims experience, a cost is accrued for all products still within a warranty period for which no claims have
been filed. The Company provides for the estimated cost of product warranties at the time revenue is recognized
related to products covered by warranties and assesses the adequacy of the resulting reserves on a quarterly basis.

As of December 31, 2022 and 2021, the Company's accrual for warranty costs was $1.5 million and $6.3 million,
respectively, which is included in accrued liabilities within the Consolidated Balance Sheets.

Derivative Instruments

The Company may, from time to time, use derivative instruments to mitigate the impact of changes in interest
rates, commodity prices, or changes in foreign currency exchange rates. For derivative instruments designated as
hedges, the Company formally documents the relationship between the derivative instrument and the hedged item,
as well as the risk management objective and strategy for the use of the derivative instrument. This documentation
includes linking the derivative to specific assets or liabilities on the balance sheet, commitments, or forecasted
transactions. At the time a derivative instrument is entered into, and at least quarterly thereafter, the Company
assesses whether the derivative instrument is effective in offsetting the changes in fair value or cash flows of the
hedged item. Any change in the fair value of the hedged instrument is recorded in accumulated other
comprehensive loss (“AOCL”) as a separate component of stockholders' equity and reclassified into earnings in the
period during which the hedged transaction affects earnings. The Company monitors its derivative positions and the
credit ratings of its counterparties and does not anticipate losses due to counterparties' non-performance.

Foreign Currency Translation

Certain operations outside the U.S. prepare financial statements in currencies other than the U.S. dollar. The
income statement amounts are translated at average exchange rates for the year, while the assets and liabilities are
translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of
stockholders' equity and other comprehensive income. The functional currency of our Mexico operations is
considered to be the U.S. dollar. The functional currency of our Canadian operations is considered to be the
Canadian dollar.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) consists of foreign currency translation adjustments and the effective
unrealized gains and losses on the Company's derivative financial instruments, the sum of which, along with net
income, constitutes comprehensive net income (loss). See Note 12 Accumulated Other Comprehensive Loss. All
components are shown net of tax.

Recent Accounting Pronouncements

Recently adopted accounting pronouncements

Effective as of January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, “Financial
Instruments - Credit Losses”, (“ASU 2016-13”), which amends the existing accounting guidance for recognizing
credit losses on financial assets and certain other instruments not measured at fair value through net income,
including financial assets measured at amortized cost, such as trade receivables and contract assets. ASU 2016-13
replaces the existing incurred loss impairment model with an expected credit loss model that requires consideration
of a broader range of information to estimate expected credit losses over the lifetime of the asset. The adoption of
this guidance did not have a material effect on the Company’s Consolidated Financial Statements.

Effective as of January 1, 2021, the Company adopted Accounting Standards Updated No. 2019-12, “Simplifying
the Accounting for Income Taxes”, (“ASU 2019-12”), which simplifies the accounting for income taxes by removing
certain exceptions to the general principles for income taxes. The adoption of the guidance did not have a material
effect on the Company's Consolidated Financial Statements.

Recently issued accounting pronouncements not adopted as of December 31, 2022

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No.
2020-04, “Reference Rate Reform”, (“ASU 2020-04”), which provides optional guidance for contract modifications,
hedging accounting, and other transactions associated with the transition from reference rates that are expected to
be discontinued. ASU 2020-04 is effective for all entities upon issuance through December 31, 2024 as amended by
ASU 2022-06. We continue to evaluate the impact of adoption, but do not expect the guidance to have a material
impact on our Consolidated Financial Statements.

In October 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic
805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, (“ASU 2021-08”),
which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a
business combination in accordance with Topic 606. ASU 2021-08 will become effective for public companies during
interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. We do not
expect this standard to have a material impact on our Consolidated Financial Statements.

Management's Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.

Note 2. Acquisitions and Divestitures

The Company's acquisition activities are summarized below:

Year Ended December 31,

2022

2021

2020

(in millions)

Acquisitions:

Purchase price ....................................................................................... $
Net cash paid ......................................................................................... $
Goodwill recorded .................................................................................. $

75.6 $

75.1 $

11.6 $

539.2 $

523.4 $

149.5 $

474.7

455.7

172.1

2022 Acquisitions

In May 2022, we completed the stock acquisition of Recycled Aggregate Materials Company, Inc. ("RAMCO"), a
leading producer of recycled aggregates in the Los Angeles metropolitan area, which is included in our Construction
Products segment, for a total purchase price of $75.6 million. The acquisition was funded with $80.0 million of
borrowings under our revolving credit facility. The acquisition was recorded as a business combination based on a
preliminary valuation of the assets acquired and liabilities assumed at their acquisition date fair value using
unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets and liabilities ("Level 3" inputs). The preliminary valuation resulted in the recognition of, among others,
$54.2 million of permits with an initial weighted average useful life of 20 years, $6.4 million of property, plant, and
equipment, and $11.6 million of goodwill in our Construction Products segment. The remaining assets and liabilities
were not significant in relation to assets and liabilities at the consolidated or segment level. We expect to complete
our purchase price allocation as soon as reasonably possible, not to exceed one year from the acquisition date.
Adjustments to the preliminary purchase price allocation could be material, particularly with respect to our
preliminary estimates of intangible assets and property, plant, and equipment.

2021 Acquisitions

Southwest Rock Products, LLC

In August 2021, we completed the stock acquisition of Southwest Rock Products, LLC and affiliated entities
(collectively “Southwest Rock”), a natural aggregates company serving the greater Phoenix metropolitan area,
which is included in our Construction Products segment, for a total purchase price of $149.7 million. The acquisition
was funded with cash on hand, $100.0 million of borrowings under our revolving credit facility, and a $15.0 million
holdback payable to the seller upon the extension of a certain mineral reserve lease. The acquisition was recorded
as a business combination based on a valuation of the assets acquired and liabilities assumed at their acquisition
date fair value using Level 3 inputs. The final valuation resulted in the recognition of, among others, $70.7 million of
goodwill, $43.7 million of mineral reserves, and $28.0 million of property, plant, and equipment in our Construction
Products segment. The remaining assets and liabilities were not significant in relation to assets and liabilities at the
consolidated or segment level.

StonePoint Ultimate Holding, LLC

On April 9, 2021, we completed the stock acquisition of StonePoint Ultimate Holding, LLC and affiliated entities
(collectively “StonePoint”), a top 25 U.S. construction aggregates company, which is included in our Construction
Products segment. The purchase price of $372.8 million was funded with proceeds from a private offering of $400.0
million of 4.375% senior unsecured notes that closed on April 6, 2021. See Note 7 Debt for additional information.
The acquisition was recorded as a business combination with valuations of the assets acquired and liabilities
assumed at their acquisition date fair value using Level 3 inputs. The following table represents our final purchase
price allocation as of December 31, 2022:

Cash ............................................................................................... $
Accounts receivable .....................................................................
Inventories .....................................................................................
Property, plant, and equipment ..................................................
Mineral reserves ...........................................................................
Goodwill .........................................................................................
Customer relationships ................................................................
Other assets ..................................................................................
Accounts payable .........................................................................
Accrued liabilities ..........................................................................
Deferred income taxes ................................................................
Other liabilities ..............................................................................
Total net assets acquired ............................................................ $

(in millions)

1.0

18.3

20.9

68.4

198.8

87.7

7.2

10.4

(7.4)

(10.0)

(9.2)

(13.3)

372.8

The goodwill acquired, none of which is tax-deductible, primarily relates to StonePoint's market position and
existing workforce. The customer relationships intangible asset was assigned a useful life of 10 years. Revenues
and operating profit (loss) included in the Consolidated Statement of Operations from the date of the acquisition
were approximately $123.7 million and $(0.1) million during the year ended December 31, 2021, respectively.

The following table represents the unaudited pro-forma consolidated operating results of the Company as if the
StonePoint acquisition had been completed on January 1, 2020. The unaudited pro-forma information makes
certain adjustments to depreciation, depletion, and amortization expense to reflect the fair value recognized in the
purchase price allocation, removes one-time transaction-related costs, and aligns the Company's debt financing
with that as of the acquisition date. The unaudited pro-forma information should not be considered indicative of the
results that would have occurred if the acquisition had been completed on January 1, 2020, nor is such unaudited
pro-forma information necessarily indicative of future results.

Revenues ............................................................................. $
Income before income taxes ............................................. $

Year Ended
December 31, 2021

Year Ended
December 31, 2020

(in millions)

2,082.7
92.1

$
$

2,080.0
138.9

In April 2021, we also completed the acquisition of certain assets and liabilities of a Dallas-Fort Worth, Texas
based recycled aggregates business in our Construction Products segment. The purchase price of the acquisition
was not significant.

2020 Acquisitions

Cherry Industries, Inc.

On January 6, 2020, we completed the stock acquisition of Cherry Industries, Inc. and affiliated entities (“Cherry”),
a leading producer of natural and recycled aggregates in the Houston, Texas market which is included in our
Construction Products segment. The purchase price of $296.8 million was funded with a combination of cash on-
hand, advances under a new $150.0 million five-year term loan, and future payments to the seller for a net cash
paid of $284.1 million during the year ended December 31, 2020. See Note 7 Debt for additional information on our
credit facility. The acquisition was recorded as a business combination with valuations of the assets acquired and
liabilities at their acquisition date fair value using level three inputs. The following table represents our final purchase
price allocation:

Accounts receivable ..................................................................... $
Inventories .....................................................................................
Property, plant, and equipment ..................................................
Mineral reserves ...........................................................................
Goodwill .........................................................................................
Customer relationships ................................................................
Permits ...........................................................................................
Other assets ..................................................................................
Accounts payable .........................................................................
Accrued liabilities ..........................................................................
Deferred income taxes ................................................................
Other liabilities ..............................................................................
Total net assets acquired ............................................................ $

(in millions)

30.5

11.8

58.8

17.2

133.3

62.1

25.4

4.3

(7.5)

(4.9)

(32.7)

(1.5)

296.8

The goodwill acquired, none of which is tax deductible, primarily relates to Cherry's market position and existing
workforce. The customer relationship intangibles and permits were assigned weighted average useful lives of 14.9
years and 19.8 years, respectively. Revenues and operating profit included in the Consolidated Statement of
Operations from the date of the acquisition were approximately $173.2 million and $25.2 million, respectively, during
the year ended December 31, 2020.

The following table represents the unaudited pro-forma consolidated operating results of the Company as if the
Cherry acquisition had been completed on January 1, 2019. The unaudited pro-forma information makes certain
adjustments to depreciation, depletion, and amortization expense to reflect the fair value recognized in the purchase
price allocation, removes one-time transaction-related costs, and aligns the Company's debt financing with that as
of the acquisition date. The unaudited pro-forma information should not be considered indicative of the results that
would have occurred if the acquisition had been completed on January 1, 2019, nor is such unaudited pro-forma
information necessarily indicative of future results.

Year Ended
December 31, 2020

Year Ended
December 31, 2019

Revenues ............................................................................. $
Income before income taxes ............................................. $

(in millions)

1,935.6
144.5

$
$

1,916.9
163.8

Other Acquisitions - 2020

In March 2020, we completed the acquisition of certain assets and liabilities of a traffic structures business in our
Engineered Structures segment for a total purchase price of $25.5 million. The acquisition was recorded as a
business combination based on a valuation of the assets acquired and liabilities assumed at their acquisition date
fair value using level three inputs. The valuation resulted in the recognition of $10.0 million of goodwill in our
Engineered Structures segment. Such assets and liabilities were not significant in relation to assets and liabilities at
the consolidated or segment level.

In June 2020, we completed the acquisition of certain assets and liabilities of a concrete poles business in our

Engineered Structures segment. The purchase price of the acquisition was not significant.

In July 2020, we completed the acquisition of certain assets and liabilities of a telecommunication structures
business in our Engineered Structures segment for a total purchase price of $27.8 million. The acquisition was
recorded as a business combination based on a valuation of the assets acquired and liabilities assumed at their
acquisition date fair value using level three inputs. The valuation resulted in the recognition of $8.5 million of
goodwill in our Engineered Structures segment. Such assets and liabilities were not significant in relation to assets
and liabilities at the consolidated or segment level.

In August 2020, we completed the acquisition of certain assets and liabilities of a natural aggregates business in
our Construction Products segment for a total purchase price of $25.8 million. The acquisition was recorded as a
business combination based on a valuation of the assets acquired and liabilities assumed at their acquisition date
fair value using level three inputs. The valuation resulted in the recognition of $8.7 million of goodwill in our
Construction Products segment. Such assets and liabilities were not significant in relation to assets and liabilities at
the consolidated or segment level.

In October 2020, we completed the stock acquisition of Strata Materials, LLC (“Strata”), a leading provider of
natural and recycled aggregates in the Dallas-Fort Worth, Texas area, which is included in our Construction
Products segment for a total purchase price of $87.0 million. The acquisition was recorded as a business
combination based on a valuation of the assets acquired and liabilities assumed at their acquisition date fair value
using level three inputs. The valuation resulted in the recognition of $51.6 million of permits with an initial weighted
average useful life of 22.8 years and $3.8 million of goodwill in our Construction Products segment. The remaining
assets and liabilities were not significant in relation to assets and liabilities at the consolidated or segment level.

In October 2020, we also completed the acquisition of certain assets and liabilities of a traffic structures business

in our Engineered Structures segment. The purchase price of the acquisition was not significant.

Divestitures

On October 3, 2022, the Company completed the sale of its storage tanks business for $275 million. Net cash
proceeds received at closing were approximately $271.6 million, after transaction closing costs. The sale resulted in
a pre-tax gain of $189.0 million which is presented within operating income in the Consolidated Statement of
Operations. The storage tanks business, historically reported within the Engineered Structures segment,
manufactured steel pressure tanks for the storage and transportation of propane, ammonia, and other gases
serving the residential, commercial, energy, and agricultural markets with operations in the U.S. and Mexico.
Revenues and operating profit of the storage tanks business were $187.3 million and $40.7 million, respectively, for
the year ended December 31, 2022, $217.0 million and $36.6 million, respectively, for the year ended December 31,
2021, and $177.0 million and $18.3 million, respectively, for the year ended December 31, 2020. As the sale of the
storage tanks business is not considered a strategic shift that will have a major effect on the Company's operations
or financial results, it is not reported as a discontinued operation. In October 2022, the Company used
$155.0 million of the cash proceeds from the sale to repay the outstanding loans borrowed under its revolving credit
facility. See Note 7 Debt for additional information.

In November 2021, we completed the divestiture of certain assets and liabilities of an asphalt operation previously
acquired as part of the StonePoint acquisition with a selling price of approximately $19.0 million. The income
statement impact of the disposal was not significant as the assets were recorded at fair value as of their acquisition
date in April 2021.

There were no businesses divested of during the year ended December 31, 2020.

Note 3. Fair Value Accounting

Assets and liabilities measured at fair value on a recurring basis are summarized below:

Fair Value Measurement as of December 31, 2022

Level 1

Level 2

Level 3

Total

(in millions)

Assets:

Interest rate hedge(1)

.................................................... $
Total assets ...................................................................... $

— $

1.8 $

— $

Liabilities:

Contingent consideration(2)

.........................................

Total liabilities ................................................................... $

—

— $

—

— $

2.4

2.4 $

1.8

2.4

Liabilities:

Interest rate hedge(3)
Contingent consideration(2)

.................................................... $

.........................................

Total liabilities ................................................................... $

Fair Value Measurement as of December 31, 2021

Level 1

Level 2

Level 3

Total

(in millions)

3.9 $

—

3.9 $

— $

—

— $

6.7

6.7 $

3.9

6.7

10.6

(1)

(2)

(3)

Included in other assets on the Consolidated Balance Sheets.
Current portion included in accrued liabilities and non-current portion included in other liabilities on the Consolidated Balance Sheets.
Included in other liabilities on the Consolidated Balance Sheets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between
market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes
the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three
levels of inputs that may be used to measure fair values are listed below:

Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. The Company’s

cash equivalents are instruments of the U.S. Treasury or highly rated money market mutual funds.

Level 2 – This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the assets or liabilities. Interest rate hedges
are valued at exit prices obtained from each counterparty. See Note 7 Debt.

Level 3 – This level is defined as unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities. Contingent consideration relates to estimated future payments
owed to the sellers of businesses previously acquired. We estimate the fair value of the contingent consideration
using a discounted cash flow model. The fair value is sensitive to changes in the forecast of sales and changes in
discount rates and is reassessed quarterly based on assumptions used in our latest projections.

Note 4. Segment Information

The Company reports operating results in three principal business segments:

Construction Products. The Construction Products segment primarily produces and sells natural and recycled
aggregates, specialty materials, and construction site support equipment, including trench shields and shoring
products.

Engineered Structures. The Engineered Structures segment primarily manufactures and sells steel structures for
infrastructure businesses, including utility structures for electricity transmission and distribution, structural wind
towers, traffic structures, and telecommunication structures. These products share similar manufacturing
competencies and steel sourcing requirements and can be manufactured across our North American footprint. The
segment also manufactures storage and distribution tanks. On October 3, 2022, the Company completed the sale of
its storage tanks business, and the gain of $189.0 million is included in operating profit below. See Note 2
Acquisitions and Divestitures.

Transportation Products. The Transportation Products segment primarily manufactures and sells inland barges,
fiberglass barge covers, winches, marine hardware, and steel components for railcars and other transportation and
industrial equipment.

The financial information for these segments is shown in the tables below. We operate principally in North

America.

Year Ended December 31, 2022

Aggregates and specialty materials ............. $
Construction site support ...............................
Construction Products ..................................

Utility, wind, and related structures .............
Storage tanks .....................................................
Engineered Structures ..................................

Revenues

Operating
Profit (Loss)

Assets

Depreciation,
Depletion, &
Amortization

Capital
Expenditures

821.4

102.1

923.5 $

96.5 $

1,895.7 $

102.7 $

84.6

813.1

188.9

1,002.0

307.0

956.1

30.5

44.5

Inland barges ......................................................
Steel components .............................................
Transportation Products ...............................

189.9

127.4

317.3

11.5

264.0

15.8

8.8

Segment Totals before Eliminations and
Corporate .........................................................
Corporate .............................................................
Consolidated Total ............................................ $

2,242.8

415.0

3,115.8

—

(66.0)

224.8

149.0

5.1

137.9

0.1

2,242.8 $

349.0 $

3,340.6 $

154.1 $

138.0

Year Ended December 31, 2021

Revenues

Operating
Profit (Loss)

Assets

Depreciation,
Depletion, &
Amortization

Capital
Expenditures

Aggregates and specialty materials .................. $
Construction site support ....................................
Construction Products ......................................

711.6

85.2

796.8 $

83.2 $

1,741.1 $

88.7 $

44.2

Utility, wind, and related structures ...................
Storage tanks .......................................................
Engineered Structures .....................................

Inland barges ........................................................
Steel components ................................................
Transportation Products ...................................

717.9

216.2

934.1

215.7

89.9

305.6

88.0

1,077.9

33.1

32.0

6.4

267.6

17.8

8.8

Segment Totals before Eliminations and
Corporate ...........................................................
Corporate ..............................................................
Eliminations ..........................................................
Consolidated Total ............................................... $

2,036.5

177.6

3,086.6

139.6

—

(0.1)

(70.3)

101.5

—

4.7

—

2,036.4 $

107.3 $

3,188.1 $

144.3 $

85.0

0.1

—

85.1

Year Ended December 31, 2020

Revenues

Operating
Profit (Loss)

Assets

Depreciation,
Depletion, &
Amortization

Capital
Expenditures

Aggregates and specialty materials .................. $
Construction site support ....................................
Construction Products ......................................

529.4

64.2

593.6 $

74.7 $

1,207.9 $

60.1 $

33.8

Utility, wind, and related structures ...................
Storage tanks .......................................................
Engineered Structures .....................................

Inland barges ........................................................
Steel components ................................................
Transportation Products ...................................

695.2

182.5

877.7

378.3

88.2
466.5

80.2

1,028.5

31.5

32.9

54.6

276.1

18.0

13.9

1,937.8
—
(2.2)

1,935.6 $

209.5
(57.7)
—
151.8 $

2,512.5
134.2
—
2,646.7 $

109.6
4.9
—
114.5 $

80.6
1.5
—
82.1

Corporate assets are composed of cash and cash equivalents, certain property, plant, and equipment, and other
assets. Capital expenditures exclude amounts paid for business acquisitions, but include amounts paid for the
acquisition of land and reserves in our Construction Products segment.

Revenues from one customer included in the Engineered Structures segment constituted 9.3%, 9.5%, and 15.3%

of consolidated revenues for the years ended December 31, 2022, 2021, and 2020, respectively.

Revenues and operating profit (loss) for our Mexico operations for the years ended December 31, 2022, 2021,
and 2020 are presented below. The operating profit presented below for the year ended December 31, 2022
excludes the gain on sale of the storage tanks business. See Note 2 Acquisitions and Divestitures. Our Canadian
operations were not significant in relation to the Consolidated Financial Statements.

Mexico:

Year Ended December 31,

2022

2021

2020

(in millions)

Revenues:
External ........................................................................................................................ $ 120.9 $ 137.5 $ 135.3
Intercompany ...............................................................................................................
60.6

65.3

87.7

Operating profit (loss) ..................................................................................................... $

7.5 $

8.4 $

(0.4)

Total assets and long-lived assets for our Mexico operations as of December 31, 2022 and 2021 are presented

below:

$ 186.2 $ 225.2 $ 195.9

Total Assets

Long-Lived Assets

December 31,

2022

2021

2022

2021

(in millions)

Mexico ......................................................................................................... $ 112.5 $ 217.3 $

63.4 $

86.9

Note 5. Property, Plant, and Equipment

The following table summarizes the components of property, plant, and equipment as of December 31, 2022 and
2021.

December 31,
2022

December 31,
2021

Land ............................................................................................................................... $
Mineral reserves ..........................................................................................................
Buildings and improvements ......................................................................................
Machinery and other ....................................................................................................
Construction in progress .............................................................................................

Less accumulated depreciation and depletion ........................................................

(in millions)

138.7 $

506.3

308.3

973.9

83.7
2,010.9

(811.3)
1,199.6 $

137.3

507.3

301.0

973.9

45.4
1,964.9

(763.0)
1,201.9

We did not capitalize any interest expense as part of the construction of facilities and equipment during 2022 or

2021.

As of December 31, 2022 and 2021, the Company had non-operating facilities with a net book value of $15.5
million and $18.7 million, respectively, classified as property, plant, and equipment, net on our Consolidated Balance
Sheets. We estimate the fair market value of properties not currently in use based on the location and condition of
the properties, the fair market value of similar properties in the area, and the Company's experience selling similar
properties in the past. Our estimated fair value of these assets exceeds their book value.

As of December 31, 2022, the Company did not have any property, plant, and equipment classified as held for
sale. As of December 31, 2021, the Company had property, plant, and equipment with a value of $20.4 million
classified as held for sale and included in other current assets on the Consolidated Balance Sheet. These assets
related to a non-operating facility within our Engineered Structures segment that was subsequently sold in February
2022. We recognized an impairment loss on these assets of $2.9 million during the year ended December 31, 2021
as the fair value less the cost to sell these assets was less than their carrying value.

Note 6. Goodwill and Other Intangible Assets

Goodwill

Goodwill by segment is as follows:

December 31,
2022

December 31,
2021

Construction Products ........................................................................................................ $
Engineered Structures ........................................................................................................
Transportation Products .....................................................................................................

(in millions)

483.9 $

437.6

37.0

958.5 $

460.3

437.6

37.0

934.9

The increase in goodwill for Construction Products during the year ended December 31, 2022 is primarily due to
the acquisition of RAMCO and the finalization of the purchase price allocations for StonePoint and Southwest Rock.
See Note 2 Acquisitions and Divestitures.

Intangible Assets

Intangibles, net consisted of the following:

December 31,
2022

December 31,
2021

Intangibles with indefinite lives - Trademarks ............................................................... $

Intangibles with definite lives:

Customer relationships ..................................................................................................
Permits .............................................................................................................................
Other .................................................................................................................................

Less accumulated amortization ......................................................................................

Intangible assets, net ....................................................................................................... $

(in millions)

34.1 $

34.1

136.9

141.7

2.7

281.3

(59.3)

222.0
256.1 $

135.4

87.5

3.9

226.8

(40.6)

186.2
220.3

Total amortization expense from intangible assets was $19.7 million, $18.1 million, and $12.6 million for the years
ended December 31, 2022, 2021 and 2020, respectively. Expected future amortization expense of intangibles as of
December 31, 2022 is as follows:

2023 ......................................................................................................................................................... $
2024 .........................................................................................................................................................
2025 .........................................................................................................................................................
2026 .........................................................................................................................................................
2027 .........................................................................................................................................................
Thereafter ...............................................................................................................................................

19.4
18.1
17.4
14.8
13.0
139.3

Amortization
Expense

(in millions)

Note 7. Debt

The following table summarizes the components of debt as of December 31, 2022 and December 31, 2021:

December 31,
2022

December 31,
2021

Revolving credit facility ................................................................................................ $
Term loan .......................................................................................................................
Senior notes ..................................................................................................................
Finance leases (see Note 8 Leases) .........................................................................

(in millions)

— $

136.8

400.0

19.1

555.9

Less: unamortized debt issuance costs ....................................................................
Total debt .......................................................................................................................... $

(5.3)

550.6 $

125.0

144.4

400.0

16.3

685.7

(6.2)

679.5

On November 1, 2018, the Company entered into a $400.0 million unsecured revolving credit facility that was
scheduled to mature in November 2023. On January 2, 2020, the Company entered into an Amended and Restated
Credit Agreement to increase the revolving credit facility to $500.0 million and added a term loan facility of $150.0
million, in each case with a maturity date of January 2, 2025. The entire term loan was advanced on January 2,
2020. As of December 31, 2022, the term loan had a remaining balance of $136.8 million.

As of December 31, 2022, we had no outstanding loans borrowed under the revolving credit facility, and there
were approximately $25.3 million of letters of credit issued, leaving $474.7 million available. During 2022, the
Company borrowed a net $30 million, which was used to partially finance the acquisition of RAMCO. In the fourth
quarter, the Company used $155.0 million of the cash proceeds from the sale of the storage tanks business to repay
all outstanding loans borrowed under its revolving credit facility. See Note 2 Acquisitions and Divestitures for
additional information. Of the outstanding letters of credit as of December 31, 2022, $24.7 million are expected to
expire in 2023, with the remainder in 2024. The majority of our letters of credit obligations support the Company’s
various insurance programs and generally renew by their terms each year.

In order to increase liquidity in anticipation of the acquisition of StonePoint, the Company entered into an
unsecured 364-Day Credit Agreement on March 26, 2021 providing for a revolving line of credit of $150.0 million,
with an outside maturity date of March 25, 2022. Pricing, covenants, and guarantees were substantially similar to
the Company’s existing revolving credit and term loan facilities. Per the terms of the facility, it terminated on April 6,
2021 upon the closing of the Company’s private offering of $400.0 million in senior notes.

The carrying value of borrowings under our revolving credit and term loan facilities approximate fair value

because the interest rate adjusts to the market interest rate (Level 3 input). See Note 3 Fair Value Accounting.

As of December 31, 2022, the Company had $1.0 million of unamortized debt issuance costs related to the

revolving credit facility, which are included in other assets on the Consolidated Balance Sheet.

Senior Notes

On April 6, 2021, the Company issued $400.0 million aggregate principal amount of 4.375% senior notes (the
“Notes”) that mature in April 2029. Interest on the Notes is payable semiannually. The Notes are senior unsecured
obligations of the Company and are guaranteed on a senior unsecured basis by each of the Company’s domestic
subsidiaries that is a guarantor under our revolving credit and term loan facilities. The terms of the indenture
governing the Notes, among other things, limit the ability of the Company and each of its subsidiaries to create liens
on assets, enter into sale and leaseback transactions, and consolidate, merge or transfer all or substantially all of its
assets and the assets of its subsidiaries. The terms of the indenture also limit the ability of the Company’s non-
guarantor subsidiaries to incur certain types of debt.

At any time prior to April 15, 2024, the Company may redeem all or a portion of the Notes at a redemption price
equal to 100% of the principal amount of the Notes redeemed, plus an applicable make-whole premium and
accrued and unpaid interest to the redemption date. On and after April 15, 2024, the Company may redeem all or a
portion of the Notes at redemption prices set forth in the indenture, plus accrued and unpaid interest to the
redemption date. If a Change of Control Triggering Event (as defined in the indenture) occurs, the Company must
offer to repurchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and
unpaid interest to the date of repurchase.

The estimated fair value of the Notes as of December 31, 2022 was $347.6 million based on a quoted market

price in a market with little activity (Level 2 input).

In connection with the issuance of the Notes, the Company paid $6.6 million of debt issuance costs.

The remaining principal payments under existing debt agreements as of December 31, 2022 are as follows:

Term loan ............................................................
Senior notes .......................................................

8.4

—

8.4

120.0

—

400.0

2023

2024

2025

2026

2027

Thereafter

(in millions)

Interest rate hedges

In December 2018, the Company entered into an interest rate swap instrument, effective as of January 2, 2019
and expiring in October 2023, to reduce the effect of changes in the variable interest rates associated with
borrowings under the Amended and Restated Credit Agreement. The instrument carried an initial notional amount of
$100 million, thereby hedging the first $100 million of borrowings. The instrument effectively fixes the LIBOR
component of borrowings at a monthly rate of 2.71%. As of December 31, 2022, the Company has recorded an
asset of $1.8 million for the fair value of the instrument, all of which is recorded in accumulated other
comprehensive loss. See Note 3 Fair Value Accounting.

Note 8. Leases

We have various leases primarily for office space and certain equipment. At inception, we determine if an
arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating
lease. For leases that contain options to purchase, terminate, or extend, such options are included in the lease term
when it is reasonably certain that the option will be exercised. Some of our lease arrangements contain lease
components and non-lease components which are accounted for as a single lease component as we have elected
the practical expedient to group lease and non-lease components for all leases.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information

available at commencement date in determining the present value of lease payments.

Future minimum lease payments for operating and finance lease obligations as of December 31, 2022 consisted

of the following:

2023 ...................................................................................................................................... $
2024 ......................................................................................................................................
2025 ......................................................................................................................................
2026 ......................................................................................................................................
2027 ......................................................................................................................................
Thereafter ............................................................................................................................
Total undiscounted future minimum obligations ...............................................................
Less imputed interest .........................................................................................................
Present value of net minimum lease obligations .............................................................. $

Operating
Leases

Finance
Leases

(in millions)

7.8 $

6.9

6.3

5.2

3.3
10.8
40.3
(3.7)
36.6 $

6.9

6.8

5.1

1.3

0.2
—
20.3
(1.2)
19.1

The following table summarizes our operating and finance leases and their classification within the Consolidated

Balance Sheet.

Assets

Operating - Other assets ............................................................................................... $
Finance - Property, plant, and equipment, net ..........................................................
Total lease assets .............................................................................................................

Liabilities

Current

Operating - Accrued liabilities .......................................................................................
Finance - Current portion of long-term debt ...............................................................

Non-current

Operating - Other liabilities ...........................................................................................
Finance - Debt ................................................................................................................
Total lease liabilities .......................................................................................................... $

December 31,
2022

December 31,
2021

(in millions)

33.9 $

22.4

56.3

6.7

6.3

29.9

12.8

55.7 $

20.9

16.9

37.8

4.8

6.3

19.1

10.0

40.2

Operating lease costs were $7.3 million and $6.1 million during the years ended December 31, 2022 and 2021,
respectively, and are included in cost of revenues and selling, general, and administrative expenses on the
Consolidated Statements of Operations. Costs related to variable lease rates or leases with terms less than twelve
months were not significant. Amortization of finance lease assets was $5.1 million and $2.5 million during the years
ended December 31, 2022 and 2021, respectively, and is included in cost of revenues and selling, general, and
administrative expenses on the Consolidated Statements of Operations. Interest expense on finance lease liabilities
was not significant during the years ended December 31, 2022 and 2021.

The following table includes supplemental cash flow and non-cash information related to leases:

December 31,
2022

December 31,
2021

Cash paid for amounts included in the measurement of lease liabilities

Cash paid for operating leases .................................................................................... $
Cash paid for finance leases ........................................................................................ $

7.6 $

7.7 $

Right-of-use assets obtained in exchange for lease obligations

Operating leases ............................................................................................................ $
Finance leases ................................................................................................................ $

15.2 $

10.7 $

Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:

6.0

3.2

1.9

14.6

Weighted average remaining lease term - operating leases .....................................
Weighted average remaining lease term - finance leases .........................................
Weighted average discount rate - operating leases ....................................................
Weighted average discount rate - finance leases ........................................................

7.2 years

3.1 years

5.2 %

3.8 %

7.7 years

3.2 years

4.8 %

4.6 %

December 31,
2022

December 31,
2021

Note 9. Other, Net

Other, net (income) expense consists of the following items:

Interest income .............................................................................................. $
Foreign currency exchange transactions ..................................................
Other ...............................................................................................................
Other, net (income) expense ....................................................................... $

Note 10. Income Taxes

The components of the provision for income taxes are as follows:

Year Ended December 31,

2022

2021

2020

(in millions)

(1.1) $

3.3

(0.4)

1.8 $

— $

0.6

(0.3)

0.3 $

(0.4)

3.6

(0.2)

3.0

Year Ended December 31,

2022

2021

2020

(in millions)

Current:

Federal ....................................................................................................... $
State ...........................................................................................................
Foreign .......................................................................................................
Total current..................................................................................................
Deferred:

Federal .......................................................................................................
State ...........................................................................................................
Foreign .......................................................................................................
Total deferred ...............................................................................................
Provision ....................................................................................................... $

11.3 $

0.8 $

7.9

6.4

25.6

37.5

5.7

1.6

44.8

0.7

0.6

2.1

12.6

(2.3)

1.6

11.9

70.4 $

14.0 $

16.6

6.9

(1.5)

22.0

11.3

(0.9)

(0.8)

9.6

31.6

The provision for income taxes results in effective tax rates that differ from the statutory rates. The following is a
reconciliation between the statutory U.S. federal income tax rate and the Company’s effective income tax rate on
income before income taxes:

Statutory rate ................................................................................................
State taxes, including prior year true-ups .............................................
Changes in valuation allowances and reserves ..................................
Statutory depletion ...................................................................................
Prior year true-ups ....................................................................................
Foreign adjustments .................................................................................
Currency adjustments ..............................................................................
Compensation related items ...................................................................
Disallowed transaction costs ..................................................................
Other, net ...................................................................................................
Effective rate ................................................................................................

Year Ended December 31,

2022

2021

2020

21.0 %

3.8

0.1

(1.3)

—

(0.2)

(0.8)

0.2

—
(0.5)
22.3 %

(2.3)

0.1

(3.0)

(3.2)

1.3

(0.4)

1.1

0.9
1.2
16.7 %

3.3

(0.1)

(1.3)

(0.2)

0.3

(1.2)

1.0

0.1
—
22.9 %

In response to the COVID-19 pandemic, on March 27, 2020 the U.S. Congress passed the CARES Act, which
includes certain tax relief and benefits that may impact the Company. As of December 31, 2022, the Company has
repaid all payroll-related taxes deferred in accordance with the provisions of the CARES Act.

Income (loss) before income taxes for the December 31, 2022, 2021, and 2020 was $271.1 million, $76.6 million,
and $143.0 million, respectively, for U.S. operations, and $45.1 million, $7.0 million, and $(4.8) million, respectively,
for foreign operations, principally Mexico and Canada. The Company provides deferred income taxes on the
unrepatriated earnings of its foreign operations where it results in a deferred tax liability.

Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of
deferred tax liabilities and assets are as follows:

December 31,

2022

2021

(in millions)

Deferred tax liabilities:

Depreciation, depletion, and amortization ........................................................................ $

208.5 $

Total deferred tax liabilities .....................................................................................................
Deferred tax assets:

208.5

Workers compensation and other benefits .......................................................................
Warranties and reserves ......................................................................................................
Equity items ...........................................................................................................................
Tax loss carryforwards and credits .....................................................................................
Inventory .................................................................................................................................
Accrued liabilities and other ................................................................................................
Total deferred tax assets ........................................................................................................
Net deferred tax assets (liabilities) before valuation allowances .....................................
Valuation allowances ............................................................................................................
Adjusted net deferred tax assets (liabilities) ....................................................................... $

203.7

17.8

3.2

—

47.0

13.8

6.5

88.3

16.2

1.2

(0.5)

29.2

1.0

1.4

48.5

(160.0)

(115.4)

6.0

5.4

(166.0) $

(120.8)

At December 31, 2022, the Company had $60.3 million of federal consolidated net operating loss carryforwards,
primarily from businesses acquired, and $6.6 million of tax-effected state loss carryforwards remaining. In addition,
the Company had $9.1 million of tax-effected foreign net operating loss carryforwards that will begin to expire in the
year 2023.

We have established a valuation allowance for state and foreign tax operating losses and credits that we have

estimated may not be realizable.

Income tax has not been recognized on the excess of the amount for financial reporting over the tax basis of
investments in foreign subsidiaries that is indefinitely reinvested outside the United States. This amount becomes
taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of
such temporary differences totaled approximately $97.9 million as of December 31, 2022. Determination of the
amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of
the complexities of the hypothetical calculation.

Taxing authority examinations

We have multiple federal tax return filings that are subject to examination by the Internal Revenue Service
(“IRS”). The 2019-2021 tax years are open for the Arcosa, Inc. federal return. During the year ended December 31,
2021, the IRS formally commenced an audit of the 2018 tax return for one of our subsidiaries and the audit was
subsequently closed in 2022. We have various subsidiaries that file separate state tax returns and are subject to
examination by taxing authorities at different times, generally open for their 2019 tax years and forward. We have
various subsidiaries in Mexico that file separate tax returns and are subject to examination by taxing authorities at
different times. The entities are generally open for their 2015 tax years and forward.

Unrecognized tax benefits

Unrecognized tax benefits represent the differences between tax positions taken or expected to be taken on a tax
return and the benefits recognized for financial statement purposes. There were no unrecognized tax benefits as of
December 31, 2022, 2021, and 2020.

The Company accounts for interest expense and penalties related to income tax issues as income tax expense.
Accordingly, interest expense and penalties associated with an uncertain tax position are included in the income tax
provision. There were no accrued interest and penalties as of December 31, 2022, 2021, and 2020.

Note 11. Employee Retirement Plans

The Company sponsors defined contribution plans and defined benefit plans that provide retirement income for

eligible employees and retirees of the Company.

Total employee retirement plan expense, which includes related administrative expenses, is as follows:

Year Ended December 31,

2022

2021

2020

(in millions)

Defined contribution plans .......................................................................... $
Multiemployer plan .......................................................................................

12.5 $

11.9 $

1.6

1.8

14.1 $

13.7 $

10.6

1.7

12.3

Defined Contribution Plans

Established under Internal Revenue Code Section 401(k), the Arcosa, Inc. 401(k) Plan (“401(k) Plan”) is a defined
contribution plan available to all eligible employees. Participants in the 401(k) Plan are eligible to receive future
retirement benefits through elected contributions and a company-funded match with the investment of the funds
directed by the participants.

The Company also sponsors a fully-funded, non-qualified deferred compensation plan. The invested assets and
related liabilities of these participants were approximately $4.3 million at December 31, 2022 and $5.3
million at December 31, 2021, which are included in other assets and other liabilities on the Consolidated Balance
Sheets. Distributions from the Company’s non-qualified deferred compensation plan to participants were
approximately $1.2 million for the year ended December 31, 2022 and $1.0 million for the year ended December 31,
2021.

Multiemployer Plan

The Company contributes to a multiemployer defined benefit pension plan under the terms of a collective-
bargaining agreement that covers certain union-represented employees at one of the facilities of Meyer Utility
Structures, a subsidiary of Arcosa. The risks of participating in a multiemployer plan are different from a single-
employer plan in the following aspects:

•

Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees

of other participating employers.

•

If a participating employer stops contributing to a multiemployer plan, the unfunded obligations of the plan

may be borne by the remaining participating employers.

•

If the Company chooses to stop participating in the multiemployer plan, the Company may be required to

pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

Our participation in the multiemployer plan for the year ended December 31, 2022 is outlined in the table below.
The Pension Protection Act (“PPA”) zone status at December 31, 2022 and 2021 is as of the plan years beginning
January 1, 2022 and 2021, respectively, and is obtained from the multiemployer plan's regulatory filings available in
the public domain and certified by the plan's actuary. Among other factors, plans in the yellow zone are less than
80% funded while plans in the red zone are less than 65% funded. Federal law requires that plans classified in the
yellow or red zones adopt a funding improvement plan or a rehabilitation plan in order to improve the financial
health of the plan. The Company's contributions to the multiemployer plan were less than 5% of total contributions
to the plan. The last column in the table lists the expiration date of the collective bargaining agreement to which the
plan is subject.

PPA Zone
Status

Contributions for Year
Ended December 31,

Pension Fund

Employer
Identification
Number

2022

2021

Rehabilitation
plan status

2022

2021

2020

Surcharge
imposed

Expiration date
of collective
bargaining
agreement

Boilermaker-
Blacksmith National
Pension Trust ................

48-6168020

Yellow Yellow

Implemented

$ 1.6 $ 1.7 $ 1.7

06/30/2025

(in millions)

Employer contributions to the multiemployer plan for the year ending December 31, 2023 are expected to be $1.6

million.

ACG Pension Plan

In connection with the acquisition of ACG in December 2018, the Company assumed the assets and liabilities
related to a defined benefit pension plan. As of December 31, 2022, the plan assets totaled $2.9 million and the
projected benefit obligation totaled $2.6 million, for a net over funded status of $0.3 million, which is included in
other assets on the Consolidated Balance Sheet. The net pension expense for the year ended December 31, 2022
was not significant. Employer contributions for the ACG pension plan for the year ending December 31, 2023 are
not expected to be significant.

Note 12. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the years ended December 31, 2022, December 31, 2021,

and December 31, 2020 are as follows:

Currency
translation
adjustments

Unrealized
gain (loss)
on derivative
financial
instruments

(in millions)

Accumulated
other
comprehensive
loss

Balances at December 31, 2019 ............................................................... $

(16.3) $

(3.4) $

(19.7)

Other comprehensive income (loss), net of tax, before
reclassifications ......................................................................................
Amounts reclassified from accumulated other comprehensive
loss, net of tax expense (benefit) of $0.0, ($0.4), and ($0.4) ........
Other comprehensive income (loss) ...................................................
Balances at December 31, 2020 ...............................................................

Other comprehensive income (loss), net of tax, before
reclassifications ......................................................................................
Amounts reclassified from accumulated other comprehensive
loss, net of tax expense (benefit) of $0.0, ($0.4), and ($0.4) ........
Other comprehensive income (loss) ...................................................
Balances at December 31, 2021 ...............................................................

(0.3)

(3.7)

(4.0)

—

(0.3)

(16.6)

0.3

—

0.3

1.6

(2.1)

(5.5)

1.1

1.4

2.5

1.6

(2.4)

(22.1)

1.4

2.8

(16.3)

(3.0)

(19.3)

Other comprehensive income (loss), net of tax, before
reclassifications ......................................................................................
Amounts reclassified from accumulated other comprehensive
loss, net of tax expense (benefit) of $0.0, ($0.2), and ($0.2) ........
Other comprehensive income (loss) ...................................................
Balances at December 31, 2022 ............................................................... $

(0.7)

—

(0.7)

(17.0) $

3.5

0.8

4.3

2.8

0.8

3.6

1.3 $

(15.7)

Reclassifications of unrealized before-tax losses on derivative financial instruments are included in interest

expense in the Consolidated Statements of Operations.

Note 13. Stock-Based Compensation

Prior to the Separation, Arcosa employees participated in Trinity's equity incentive plans, including equity awards
of restricted stock, restricted stock units, and performance-based restricted stock units in respect of Trinity common
shares.

Following the Separation, outstanding awards granted to Arcosa employees under Trinity's equity incentive plans
were converted based on either the shareholder method or the concentration method. The shares or units
converted using the shareholder method resulted in employees retaining their restricted shares or units in Trinity
common stock and receiving one restricted Arcosa share or unit for every three restricted Trinity shares or units.
The units converted using the concentration method were fully converted into Arcosa units using a conversion ratio
based on the Volume Weighted Average Prices (“VWAP”) of Trinity common stock for the 5 days prior to the
Separation divided by the VWAP of Arcosa common stock for the 5 days following the Separation. The Arcosa units
continue to vest in accordance with their original vesting schedules. There was no significant incremental stock-
based compensation expense recorded as a result of the equity award conversions.

In connection with the Separation, effective November 1, 2018, the Board adopted and Trinity, in its capacity as
sole shareholder of Arcosa prior to the Separation, approved, the Arcosa Inc. 2018 Stock Option and Incentive Plan
(the “Plan”). The Plan provides for the grant of equity awards, including stock options, restricted stock, restricted
stock units, performance shares, and other performance-based awards, to our directors, officers, and employees.
The maximum number of shares of Arcosa common stock that may be issued under the Plan is 4.8 million shares,
which includes the shares granted under the Trinity equity incentive plans that were converted and assumed by
Arcosa as a result of the Separation.

At December 31, 2022, we had 1.7 million shares available for grant. Any equity awards that have been granted
under the Plan that are subsequently forfeited, canceled, or tendered to satisfy tax withholding obligations are
added back to the shares available for grant.

The cost of employee services received in exchange for awards of equity instruments is referred to as share-
based payments and is based on the grant date fair-value of those awards. Stock-based compensation includes
compensation expense, recognized over the applicable vesting periods, for share-based awards. The Company
recognizes compensation expense for both the Arcosa awards and Trinity awards held by our employees. Stock-
based compensation totaled $19.1 million, $18.0 million, and $20.0 million for the years ended December 31, 2022,
2021, and 2020, respectively.

The income tax benefit related to stock-based compensation expense was $5.9 million, $4.6 million, and $2.6

million for the years ended December 31, 2022, 2021, and 2020, respectively.

Equity Awards

Equity awards outstanding as of December 31, 2022 consist of restricted stock, restricted stock units, and
performance units and generally vest for periods ranging from 1 to 15 years from the date of grant. Certain equity
awards vest in their entirety or on a pro-rata basis upon the employee's retirement from the Company and may take
into consideration the employee's age and years of service to the Company, as defined more specifically in the
Company's award agreements. Equity awards granted to non-employee directors under the Plan generally vest one
year from the grant date and are released at that time, in the case of restricted stock, or upon completion of the
directors' service to the Company, in the case of restricted stock units. Expense related to equity awards issued to
eligible employees and directors under the Plan is recognized ratably over the vesting period or to the date on which
retirement eligibility is achieved, if shorter. Performance units vest and settle in shares of our common stock
following the end of a three-year performance period contingent upon the achievement of specific performance
goals during the performance period and certification by the Human Resources Committee of the Board of the
achievement of the performance goals. Performance units are granted to employees based upon a target level of
performance; however, depending upon the achievement of the performance goals during the performance period,
performance units may be issued at an amount between 0% and 200% of the target level. Expense related to
performance units is recognized ratably over the vesting period. Forfeitures are recognized as reduction to expense
in the period in which they occur.

The activity for equity awards held by Arcosa employees for the year ended December 31, 2022 was as follows:

Arcosa Equity
Awards Held by
Arcosa Employees

Trinity Equity
Awards Held by
Arcosa Employees

Weighted
Average
Grant-Date
Fair Value
per Award

Equity awards outstanding at December 31, 2021 ............................
Granted ..................................................................................................
Vested ....................................................................................................
Forfeited .................................................................................................
Equity awards outstanding at December 31, 2022 ............................

1,255,583

451,220

(680,201)

(90,776)

935,826

517,175 $

—

(86,187)

(43,611)

387,377 $

31.31

51.25

33.54

35.35

36.42

At December 31, 2022, unrecognized compensation expense related to equity awards totaled $25.9 million,
which will be recognized over a weighted average period of 2.6 years. The total vesting-date fair value of shares
vested and released was $39.0 million, $32.0 million, and $11.3 million for the years ended December 31, 2022,
2021, and 2020, respectively.

Note 14. Earnings Per Common Share

Basic earnings per common share is computed by dividing net income remaining after allocation to unvested
restricted shares, which includes unvested restricted shares of Arcosa stock held by employees of the Former
Parent, by the weighted average number of basic common shares outstanding for the period. Except when the
effect would be antidilutive, the calculation of diluted earnings per common share includes the weighted average net
impact of nonparticipating unvested restricted shares. Total weighted average restricted shares were 1.5 million
shares, 1.7 million shares, and 1.7 million shares, for the years ended December 31, 2022, 2021, and 2020,
respectively.

The computation of basic and diluted earnings per share follows.

Year Ended December 31, 2022

(in millions, except per share amounts)
Average
Income
Shares
(Loss)

EPS

Net income ................................................................................................................... $
Unvested restricted share participation ................................................................
Net income per common share – basic ...............................................................

245.8

(1.0)

244.8

48.2 $

5.08

Effect of dilutive securities:

Nonparticipating unvested restricted shares ........................................................
Net income per common share – diluted ............................................................. $

—

244.8

0.3

48.5 $

5.05

Year Ended December 31, 2021

(in millions, except per share amounts)
Average
Income
Shares
(Loss)

EPS

69.6

(0.4)

69.2

48.1 $

1.44

Effect of dilutive securities:

—

69.2

0.5

48.6 $

1.42

Year Ended December 31, 2020

(in millions, except per share amounts)
Average
Income
Shares
(Loss)

EPS

106.6

(0.8)

105.8

48.0 $

2.20

—

105.8

0.5

48.5 $

2.18

Note 15. Commitments and Contingencies

The Company is involved in claims and lawsuits incidental to our business arising from various matters including
commercial disputes, alleged product defect and/or warranty claims, intellectual property matters, personal injury
claims, environmental issues, employment and/or workplace-related matters, and various governmental regulations.
At December 31, 2022, the range of reasonably possible losses for such matters, taking into consideration our
rights in indemnity and recourse to third parties is $0.3 million to $1.9 million.

The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these
contingencies when probable losses can be reasonably estimated. At December 31, 2022, total accruals of $2.2
million are included in accrued liabilities in the accompanying Consolidated Balance Sheet. The Company believes
any additional liability from such claims and suits would not be material to its financial position or results of
operations.

Arcosa is subject to remedial orders and federal, state, local, and foreign laws and regulations relating to the
environment. The Company has accrued $0.7 million as of December 31, 2022, included in our total accruals of
$2.2 million discussed above, to cover our probable and estimable liabilities with respect to the investigations,
assessments, and remedial responses to such matters, taking into account currently available information and our
contractual rights to indemnification and recourse to third parties.

Estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise.
Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings,
including those related to the environment or, if we are found to be responsible or liable in any such litigation or
proceeding, that such costs would not be material to the Company.

Other commitments

Non-cancelable purchase obligations amounted to $202.1 million as of December 31, 2022, of which $160.8
million is for the purchase of raw materials and components, primarily by the Engineered Structures and
Transportation Products segments.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures.

The Company maintains disclosure controls and procedures designed to ensure that it is able to collect and
record the information it is required to disclose in the reports it files with the Securities and Exchange Commission
(“SEC”), and to process, summarize, and disclose this information within the time periods specified in the rules of
the SEC. The Company's Chief Executive and Chief Financial Officers are responsible for establishing and
maintaining these procedures and, as required by the rules of the SEC, evaluating their effectiveness. Based on
their evaluation of the Company's disclosure controls and procedures that took place as of the end of the period
covered by this report, the Chief Executive and Chief Financial Officers believe that these procedures are effective
to 1) ensure that the Company is able to collect, process, and disclose the information it is required to disclose in
the reports it files with the SEC within the required time periods and 2) accumulate and communicate this
information to the Company's management, including its Chief Executive and Chief Financial Officers, to allow
timely decisions regarding this disclosure.

Management's Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining effective internal control over financial reporting
as defined in Rules 13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial
reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with accounting principles generally
accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance,
as opposed to absolute assurance, of achieving their internal control objectives.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2022.
In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (the 2013 Framework) (“COSO”) in Internal Control - Integrated Framework. Based on
our assessment, we believe that, as of December 31, 2022, our internal control over financial reporting was
effective based on those criteria.

As permitted by the SEC Staff interpretive guidance for recently acquired businesses, management's assessment
and conclusion on the effectiveness of the Company's disclosure controls and procedures as of December 31, 2022
excludes an assessment of the internal control over financial reporting of the RAMCO business acquired in May
2022. RAMCO represents approximately 3% of consolidated total assets and approximately 1% of consolidated
revenues as of and for the year ended December 31, 2022.

The effectiveness of internal control over financial reporting as of December 31, 2022, has been audited by
Ernst & Young LLP, the independent registered public accounting firm who also audited our Consolidated Financial
Statements. Ernst & Young LLP's attestation report on effectiveness of our internal control over financial reporting
follows.

Changes in Internal Control over Financial Reporting.

During the three months ended December 31, 2022, there have been no changes in the Company’s internal
control over financial reporting that have materially affected or are reasonably likely to materially affect the
Company’s internal control over financial reporting.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Arcosa, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Arcosa, Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2022,
based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Arcosa, Inc. and
subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as
of December 31, 2022, based on the COSO criteria.

As indicated in the accompanying “Management’s Report on Internal Control over Financial Reporting,”
management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not
include the internal controls of the Recycled Aggregate Materials Company, Inc. (RAMCO) business acquired during
the year ended December 31, 2022. RAMCO constituted approximately 3% of total assets and 1% of total revenues
as of and for the year ended December 31, 2022. Our audit of internal control over financial reporting of the
Company also did not include an evaluation of the internal control over financial reporting of such business acquired
during the year ended December 31, 2022.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related
consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the
three years in the period ended December 31, 2022, and the related notes and our report dated February 24, 2023
expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for
its assessment of the effectiveness of internal control over financial reporting included in the accompanying
Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on
the Company’s internal control over financial reporting based on our audit. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting
was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

/s/ ERNST & YOUNG LLP

Dallas, Texas
February 24, 2023

Item 9B. Other Information.

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Information regarding the directors of the Company is incorporated by reference to the information set forth under
the caption “Proposal 1 - Election of Nominated Directors” in the Company's Proxy Statement to be filed for the
2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”). Information relating to the executive officers of
the Company is set forth in Part I of this report under the caption “Information About Our Executive Officers.”
Information relating to the Board of Directors' determinations concerning whether at least one of the members of the
Audit Committee is an “audit committee financial expert” as that term is defined under Item 407 (d)(5) of
Regulation S-K is incorporated by reference to the information set forth under the caption “Corporate Governance -
Board Meetings and Committees - Audit Committee” in the Company's 2023 Proxy Statement. Information regarding
the Company's Audit Committee is incorporated by reference to the information set forth under the caption
“Corporate Governance - Board Meetings and Committees - Audit Committee” in the Company's 2023 Proxy
Statement.

The Company has adopted a Code of Conduct that applies to all of its directors, officers, and employees. The
Code of Conduct is on the Company's website at www.arcosa.com under “Additional Governance Documents”
within the “Corporate Governance” tab of our website. The Company intends to post any amendments or waivers
for its Code of Conduct to the Company's website at www.arcosa.com to the extent applicable to an executive
officer, principal accounting officer, controller, or director of the Company.

Item 11. Executive Compensation.

Information regarding compensation of executive officers and directors is incorporated by reference to the
information set forth under the caption “Executive Compensation” in the Company's 2023 Proxy Statement.
Information concerning compensation committee interlocks and insider participation is incorporated by reference to
the information set forth under the caption “Corporate Governance - Compensation Committee Interlocks and
Insider Participation” in the Company's 2023 Proxy Statement. Information about the compensation committee
report is incorporated by reference to the information set forth under the caption “Executive Compensation - Human
Resources Committee Report” in the Company's 2023 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.

Information concerning security ownership of certain beneficial owners and management is incorporated herein
by reference from the Company's 2023 Proxy Statement, under the caption “Security Ownership of Certain
Beneficial Owners and Management.”

The following table sets forth information about Arcosa common stock that may be issued under Arcosa's equity

compensation plan as of December 31, 2022.

Equity Compensation Plan Information

(a)

(b)

(c)

Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options,
Warrants and
Rights

Weighted-
Average
Exercise
Price of
Outstanding
Options,
Warrants and
Rights

Number of Securities
Remaining Available
for Future Issuance
under Equity
Compensation Plans
(Excluding Securities
Reflected in Column
(a))

Plan Category:

Equity compensation plans approved by security holders:
Restricted stock units and performance units ......................
Equity compensation plans not approved by security
holders ........................................................................................
Total .................................................................................................

885,228 (1) $

—

1,712,513 (2)

—

885,228

—

1,712,513

(1) Represents shares underlying awards that have been granted under the 2018 Stock Option and Incentive
Plan (the “Incentive Plan”) (including Arcosa equity awards issued in respect of outstanding Trinity equity
awards in connection with the Separation). Amounts are comprised of (a) 362,279 shares of common stock
issuable upon the vesting and conversion of restricted stock units and (b) 522,949 shares of common stock
issuable upon the vesting and conversion of performance units, assuming payout at target performance. The
restricted stock units and performance units do not have an exercise price. The performance units are granted
to employees based upon a target level; however, depending upon the achievement of certain specified goals
during the performance period, performance units may be issued at an amount between 0% and 200% of the
target level.

(2) For purposes of calculating the number of shares remaining available for issuance under the Incentive Plan,
this calculation reserves for issuance the potential maximum payout (200% of target) of the outstanding
performance units. Upon certification of actual performance, reserved shares that are not issued will again be
available for issuance under the Incentive Plan.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Information regarding certain relationships and related person transactions is incorporated by reference to the
information set forth under the caption “Transactions with Related Persons” in the Company's 2023 Proxy
Statement. Information regarding the independence of directors is incorporated by reference to the information set
forth under the caption “Corporate Governance - Independence of Directors” in the Company's 2023 Proxy
Statement.

Item 14. Principal Accountant Fees and Services.

Information regarding principal accountant fees and services is incorporated by reference to the information set
forth under the caption “Fees of Independent Registered Public Accounting Firm for Fiscal Years 2022 and 2021” in
the Company's 2023 Proxy Statement.

PART IV

Item 15. Exhibit and Financial Statement Schedules.

(a) (1) Financial Statements.

See Item 8.

(2) Financial Statement Schedule.

All schedules are omitted because they are not required, not significant, not applicable, or the information is

shown in the financial statements or the notes to consolidated financial statements.

(3) Exhibits.

NO.
2.1

2.2

2.3

2.4

3.1

3.2

4.1

4.2

4.3

4.4

4.5

10.1

10.2

10.3

DESCRIPTION

Separation and Distribution Agreement, dated as of October 31, 2018, by and between Trinity
Industries, Inc. and Arcosa, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current
Report on Form 8-K, filed November 1, 2018, File No. 001-38494).
Securities Purchase Agreement dated December 12, 2019 by and among Arcosa MS2, LLC and
Cherry Industries, Inc. and certain affiliated real estate holding companies, the sellers set forth
therein, Leonard L. Cherry in his capacity as “Sellers Representative” and Arcosa Materials, Inc.
solely as buyer guarantor (incorporated by reference to Exhibit 2.3 to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2019, File No. 001-38494).

Unit Purchase Agreement Dated March 22, 2021 by and among StonePoint Ultimate Holding, LLC,
Arcosa Materials, Inc., the persons identified as sellers on the signature pages thereto, and the
representative named therein (incorporated by reference to Exhibit 2.1 to the Company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2021, File No. 001-38494).

Membership Interest Purchase Agreement dated August 4, 2021 by and among Arcosa MS5, LLC,
as Buyer and Southwest Rock Products, LLC, Midwest Land Trust, LLC, White Mountain
Properties, LLC collectively as the Companies, and the Members of the Companies set forth
therein, collectively as the Sellers, and Christopher Reinesch, as the Sellers' Representative
(incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2021, File No. 001-38494).
Restated Certificate of Incorporation of Arcosa, Inc. (incorporated by reference to Exhibit 3.1 to the
Company’s Registration Statement on Form S-8, filed on October 31, 2018, File No. 333-228098).
Amended and Restated Bylaws of Arcosa, Inc. (incorporated by reference to Exhibit 3.1 to the
Company’s Current Report on Form 8-K, filed December 12, 2022, File No. 001-38494).

Description of Arcosa, Inc.’s Capital Stock (filed herewith).

Indenture, dated April 6, 2021, among Arcosa, Inc., the guarantors named therein and Wells Fargo
Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's
Current Report on Form 8-K, filed April 9, 2021, File No. 001-38494).

First Supplemental Indenture dated as of September 30, 2021 among the Guaranteeing
Subsidiaries named therein, Arcosa, Inc. and Wells Fargo Bank, National Association (incorporated
by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021, File No. 001-38494).

Form of 4.375% Senior Note due 2029 (included in Exhibit 4.1 and incorporated by reference to
Exhibit 4.2 of the Company's Current Report on Form 8-K filed on April 9, 2021, File No.
001-38494).

Second Supplemental Indenture dated as of May 17, 2022 among the Guaranteeing Subsidiaries
named therein, Arcosa, Inc. and Computershare Trust Company N.A. (incorporated by reference to
Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022,
File No. 001-38494).

Transition Services Agreement, dated as of October 31, 2018, by and between Trinity Industries,
Inc. and Arcosa, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report
on Form 8-K, filed November 1, 2018, File No. 001-38494).

Tax Matters Agreement, dated as of October 31, 2018, by and between Trinity Industries, Inc. and
Arcosa, Inc. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form
8-K, filed November 1, 2018, File No. 001-38494).

Employee Matters Agreement, dated as of October 31, 2018, by and between Trinity Industries,
Inc. and Arcosa, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Current Report
on Form 8-K, filed November 1, 2018, File No. 001-38494).

10.4

*10.5

*10.6

*10.7

*10.8

*10.9

*10.10

*10.11

*10.12

*10.13

*10.14

*10.15

*10.16

*10.17

*10.18

*10.19

*10.20

*10.21

*10.22

*10.23

*10.24

Intellectual Property Matters Agreement, dated as of October 31, 2018, by and between Trinity
Industries, Inc. and Arcosa, Inc. (incorporated by reference to Exhibit 10.4 to the Company’s
Current Report on Form 8-K, filed November 1, 2018, File No. 001-38494).
Arcosa, Inc. 2018 Stock Option and Incentive Plan (incorporated by reference to Exhibit 99.1 to the
Company’s Registration Statement on Form S-8, filed on October 31, 2018, File No. 333-228098).
Arcosa, Inc. Annual Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company’s
Current Report on Form 8-K, filed November 1, 2018, File No. 001-38494).
Arcosa, Inc. 2018 Deferred Plan for Director Fees (incorporated by reference to Exhibit 10.8 to the
Company’s Current Report on Form 8-K, filed November 1, 2018, File No. 001-38494).
Arcosa, Inc. Supplemental Profit Sharing Plan (incorporated by reference to Exhibit 10.9 to the
Company’s Current Report on Form 8-K, filed November 1, 2018, File No. 001-38494).

Form of Non-Employee Director Restricted Stock Grant Agreement (incorporated by reference to
Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31,
2018, File No. 001-38494).

Form of Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.12 to the
Company’s Annual Report on Form 10-K for the year ended December 31, 2018, File No.
001-38494).

Form of Former Parent Restricted Stock Grant Agreement for grants issued prior to 2008
(incorporated by reference to Exhibit 10.7.1 to Trinity Industries, Inc. Annual Report on Form 10-K
for the year ended December 31, 2018, File No. 001-06903).

Form of Former Parent Restricted Stock Grant Agreement for grants issued commencing 2008
(incorporated by reference to Exhibit 10.7.1.1 to Trinity Industries, Inc. Annual Report on Form 10-K
for the year ended December 31, 2018, File No. 001-06903).

Form of Former Parent Restricted Stock Unit Agreement for Non-Employee Directors for grants
issued prior to 2008 (incorporated by reference to Exhibit 10.7.2 to Trinity Industries, Inc. Annual
Report on Form 10-K for the year ended December 31, 2018, File No. 001-06903).

Form of Former Parent Restricted Stock Unit Agreement for Non-Employee Directors for grants
issued commencing 2008 (incorporated by reference to Exhibit 10.7.2.1 to Trinity Industries, Inc.
Annual Report on Form 10-K for the year ended December 31, 2018, File No. 001-06903).

Form of Former Parent Restricted Stock Unit Agreement for grants issued commencing 2017
(incorporated by reference to Exhibit 10.2 to Trinity Industries, Inc. Form 8-K filed on May 3, 2017,
File No. 001-06903).

Form of Former Parent Performance-Based Restricted Stock Unit Grant Agreement for grants
issued commencing 2017 (incorporated by reference to Exhibit 10.3 to Trinity Industries, Inc. Form
8-K filed on May 3, 2017, File No. 001-06903).

Form of Former Parent Non-Employee Director Restricted Stock Unit Agreement for grants issued
commencing 2017 (incorporated by reference to Exhibit 10.6 to Trinity Industries, Inc. Quarterly
Report on Form 10-Q for the quarter period ended June 30, 2017, File No. 001-06903).

Form of Restricted Stock Unit Agreement for grants commencing 2019 (incorporated by reference
to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 8, 2019, File No.
001-38494).

Form of Non-Employee Director Restricted Stock Unit Agreement for grants commencing 2019
(incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on
May 8, 2019, File No. 001-38494).

Form of Performance-Based Restricted Stock Unit Grant Agreement for grants commencing 2019
(incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on
May 8, 2019, File No. 001-38494).

Amendment Number One to the Arcosa, Inc. 2018 Stock Option and Incentive Plan (incorporated
by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2019, File No. 001-38494).

Amendment Number One to the Arcosa, Inc. Supplemental Profit Sharing Plan (incorporated by
reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the year ended
December 31, 2019, File No. 001-38494).
Form of Restricted Stock Unit Agreement for grants commencing 2022 (incorporated by reference
to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 5, 2022, File No.
001-38494).

Form of Performance-Based Restricted Stock Unit Agreement for grants commencing 2022
(incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on
May 5, 2022, File No. 001-38494).

10.25.1 Amended and Restated Credit Agreement dated as of January 2, 2020 by and among Arcosa, Inc.,

as borrower, the lenders thereto, JPMorgan Chase Bank, National Association, as administrative
agent, Bank of America, N.A., as syndication agent, and Wells Fargo Bank, National Association
and Truist Bank, as co-documentation agents (incorporated by reference to Exhibit 10.1 to the
Company’s Current Report on Form 8-K, filed on January 6, 2020, File No. 001-38494).
10.25.2 Supplement to Subsidiary Guaranty dated as of May 27, 2020 by Arcosa Cherry, LLC (incorporated

by reference to Exhibit 10.1.1 to the Company’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2020, File No. 001-38494).

10.25.3 Supplement to Subsidiary Guaranty dated as of May 27, 2020 by Cherry Industries, Inc.

(incorporated by reference to Exhibit 10.1.2 to the Company’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2020, File No. 001-38494).

10.25.4 Supplement to Subsidiary Guaranty dated as of May 27, 2020 by Cherry Crushed Concrete, Inc.
(incorporated by reference to Exhibit 10.1.3 to the Company’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2020, File No. 001-38494).

10.25.5 Supplement to Subsidiary Guaranty dated as of December 24, 2020 by Arcosa Materials Holdings,

Inc. (incorporated by reference to Exhibit 10.24.5 to the Company's Annual Report on Form 10-K
for the year ended December 31, 2020, File No. 001-38494).

10.25.6 Supplement to Subsidiary Guaranty dated as of August 31, 2021 by Arcosa StonePoint, LLC

(incorporated by reference to Exhibit 10.1.1 to the Company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2021, File No. 001-38494).

10.25.7 Supplement to Subsidiary Guaranty dated as of August 31, 2021 by StonePoint Holding, LLC

(incorporated by reference to Exhibit 10.1.2 to the Company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2021, File No. 001-38494).

10.25.8 Supplement to Subsidiary Guaranty dated as of August 31, 2021 by StonePoint Intermediate

Holding, LLC (incorporated by reference to Exhibit 10.1.3 to the Company's Quarterly Report on
Form 10-Q for the quarter ended September 30, 2021, File No. 001-38494).

10.25.9 Supplement to Subsidiary Guaranty dated as of August 31, 2021 by StonePoint Materials LLC

(incorporated by reference to Exhibit 10.1.4 to the Company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2021, File No. 001-38494).

10.25.10 Supplement to Subsidiary Guaranty dated as of August 31, 2021 by StonePoint Ultimate Holding,

LLC (incorporated by reference to Exhibit 10.1.5 to the Company's Quarterly Report on Form 10-Q
for the quarter ended September 30, 2021, File No. 001-38494).

10.25.11 Amendment Number One to the Amended and Restated Credit Agreement dated March 26, 2021

by and among Arcosa, Inc. as borrower, the lenders thereto, JPMorgan Chase Bank, National
Association, as administrative agent (incorporated by reference to Exhibit 10.1 to the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, File No. 001-38494).

10.25.12 Supplement to Subsidiary Guaranty dated as of April 8, 2022 by Arcosa Aggregates Texas, LLC

(incorporated by reference to Exhibit 10.1.1 to the Company's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2022, File No. 001-38494).

10.25.13 Supplement to Subsidiary Guaranty dated as of April 26, 2022 by Arcosa Aggregates Holdings,

LLC (incorporated by reference to Exhibit 10.1.2 to the Company's Quarterly Report on Form 10-Q
for the quarter ended June 30, 2022, File No. 001-38494).

10.25.14 Amendment Number Two to the Amended and Restated Credit Agreement dated as of June 29,

2022 by and among Arcosa, Inc., as borrower, the lenders thereto, JPMorgan Chase Bank,
National Association, as administrative agent (incorporated by reference to Exhibit 10.2 to the
Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, File No.
001-38494).

10.25.15 Supplement to Subsidiary Guaranty dated as of December 27, 2022 by Southern Aggregates, LLC

(filed herewith).

*10.26

10.27

10.28

21
23.1

Arcosa, Inc. 2022 Change in Control Severance Plan, dated March 3, 2022 (incorporated by
reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 7, 2022,
File No. 001-38494).
Equity Purchase Agreement by and between Arcosa, Inc. and Triarc Tanks Bidco, LLC, dated April
25, 2022 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form
10-Q for the quarter ended June 30, 2022, File No. 001-38494).

Amendment No. 1 to Equity Purchase Agreement by and between Arcosa, Inc. and Triarc Tanks
Bidco, LLC, dated May 13, 2022 (incorporated by reference to Exhibit 10.4 to the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, File No. 001-38494).
Listing of subsidiaries of Arcosa, Inc. (filed herewith).
Consent of Ernst & Young LLP (filed herewith).

23.2

31.1

31.2

32.1

32.2

Consent of John T. Boyd Company (filed herewith).

Rule 13a-15(e) and 15d-15(e) Certification of the Chief Executive Officer (filed herewith).

Rule 13a-15(e) and 15d-15(e) Certification of the Chief Financial Officer (filed herewith).
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (filed herewith).
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (filed herewith).

Mine Safety Disclosure Exhibit (filed herewith).

101.INS Inline XBRL Instance Document (filed electronically herewith).
101.SCH Inline XBRL Taxonomy Extension Schema Document (filed electronically herewith).
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically herewith).
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith).
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith).
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document (filed electronically herewith).

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Management contracts and compensatory plan arrangements

Item 16. Form 10-K Summary.

None.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has

duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

ARCOSA, INC.
Registrant

By /s/ Gail M. Peck
Gail M. Peck
Chief Financial Officer
February 24, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the

following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature

Title

Date

/s/ Antonio Carrillo

Antonio Carrillo

/s/ Gail M. Peck

Gail M. Peck

President and Chief Executive Officer and
Director

(Principal Executive Officer)

Chief Financial Officer

(Principal Financial Officer)

/s/ Mary E. Henderson

Mary E. Henderson

Chief Accounting Officer

(Principal Accounting Officer)

February 24, 2023

/s/ Rhys J. Best

Rhys J. Best

/s/ Joseph Alvarado

Joseph Alvarado

/s/ Jeffrey A. Craig

Jeffrey A. Craig

/s/ Steven J. Demetriou

Steven J. Demetriou

/s/ Ronald J. Gafford
Ronald J. Gafford

/s/ John W. Lindsay
John W. Lindsay

/s/ Kimberly S. Lubel
Kimberly S. Lubel

/s/ Julie A. Piggott
Julie A. Piggott

/s/ Melanie M. Trent

Melanie M. Trent

Non-Executive Chairman

February 24, 2023

Director

February 24, 2023

2022

ANNUAL REPORT

BUILD A BETTER WORLD

ARCOSA TRANSFER AGENT

American Stock Transfer &
Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219

TOLL FREE: 1.800.937.5449

LOCAL & INTERNATIONAL: 1.718.921.8124

ARCOSA.COM

NYSE: ACA