Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | EMCOR GROUP INC | |
Entity Central Index Key | 105,634 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,455,325 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 352,443 | $ 467,430 |
Accounts receivable, less allowance for doubtful accounts of $18,365 and $17,230, respectively | 1,572,919 | 1,607,922 |
Contract assets | 158,895 | 122,621 |
Inventories | 43,727 | 42,724 |
Prepaid expenses and other | 41,793 | 43,812 |
Total current assets | 2,169,777 | 2,284,509 |
Investments, notes and other long-term receivables | 3,680 | 2,309 |
Property, plant and equipment, net | 124,797 | 127,156 |
Goodwill | 965,046 | 964,893 |
Identifiable intangible assets, net | 484,368 | 495,036 |
Other assets | 94,331 | 92,001 |
Total assets | 3,841,999 | 3,965,904 |
Current liabilities: | ||
Current maturities of long-term debt and capital lease obligations | 15,480 | 15,364 |
Accounts payable | 487,333 | 567,840 |
Contract liabilities | 556,306 | 524,156 |
Accrued payroll and benefits | 259,875 | 322,865 |
Other accrued expenses and liabilities | 193,303 | 220,727 |
Total current liabilities | 1,512,297 | 1,650,952 |
Borrowings under revolving credit facility | 25,000 | 25,000 |
Long-term debt and capital lease obligations | 266,478 | 269,786 |
Other long-term obligations | 346,558 | 346,049 |
Total liabilities | 2,150,333 | 2,291,787 |
EMCOR Group, Inc. stockholders' equity: | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, zero issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 200,000,000 shares authorized, 59,969,133 and 59,870,980 shares issued, respectively | 600 | 599 |
Capital surplus | 9,386 | 8,005 |
Accumulated other comprehensive loss | (93,320) | (94,200) |
Retained earnings | 1,846,328 | 1,796,556 |
Treasury stock, at cost 1,518,448 and 1,072,552 shares, respectively | (72,178) | (37,693) |
Total EMCOR Group, Inc. stockholders' equity | 1,690,816 | 1,673,267 |
Noncontrolling interests | 850 | 850 |
Total equity | 1,691,666 | 1,674,117 |
Total liabilities and equity | $ 3,841,999 | $ 3,965,904 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in US dollars) | $ 18,365 | $ 17,230 |
Preferred stock, par value (in US dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in US dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 59,969,133 | 59,870,980 |
Treasury stock, shares | 1,518,448 | 1,072,552 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 1,900,388 | $ 1,891,732 |
Cost of sales | 1,631,269 | 1,625,392 |
Gross profit | 269,119 | 266,340 |
Selling, general and administrative expenses | 190,288 | 183,001 |
Restructuring expenses | 90 | 565 |
Operating income | 78,741 | 82,774 |
Interest expense | (2,996) | (3,071) |
Interest income | 544 | 257 |
Income from continuing operations before income taxes | 76,289 | 79,960 |
Income tax provision | 20,633 | 26,846 |
Income from continuing operations | 55,656 | 53,114 |
Loss from discontinued operation, net of income taxes | (282) | (504) |
Net income including noncontrolling interests | 55,374 | 52,610 |
Less: Net loss attributable to noncontrolling interests | 0 | 30 |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 55,374 | $ 52,640 |
Basic earnings (loss) per common share: | ||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.95 | $ 0.89 |
From discontinued operation (in US dollars per share) | 0 | (0.01) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 0.95 | 0.88 |
Diluted earnings (loss) per common share: | ||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 0.94 | 0.88 |
From discontinued operation (in US dollars per share) | 0 | (0.01) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 0.94 | 0.87 |
Dividends declared per common share (in US dollars per share) | $ 0.08 | $ 0.08 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $ 55,374 | $ 52,610 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | 495 | (114) | |
Post retirement plans, amortization of actuarial loss included in net income (1) | [1] | 385 | 609 |
Other comprehensive income | 880 | 495 | |
Comprehensive income | 56,254 | 53,105 | |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 30 | |
Comprehensive income attributable to EMCOR Group, Inc. | $ 56,254 | $ 53,135 | |
[1] | Net of tax of $0.4 million and $0.2 million for the three months ended March 31, 2018 and 2017, respectively. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Post retirement plans, amortization of actuarial loss included in net income, tax | $ 0.4 | $ 0.2 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Cash flows - operating activities: | |||
Net income including noncontrolling interests | $ 55,374 | $ 52,610 | |
Depreciation and amortization | 9,711 | 10,190 | |
Amortization of identifiable intangible assets | 10,668 | 12,181 | |
Provision for doubtful accounts | 1,135 | 1,478 | |
Deferred income taxes | 2,944 | (5,910) | |
Excess tax benefits from share-based compensation | (716) | (864) | |
Equity income from unconsolidated entities | (41) | (516) | |
Other non-cash items | 3,647 | (508) | |
Distributions from unconsolidated entities | 1,585 | 90 | |
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (143,394) | (72,656) | |
Net cash used in operating activities | (59,087) | (3,905) | |
Cash flows - investing activities: | |||
Payments for acquisitions of businesses, net of cash acquired | (2,689) | (81,393) | |
Proceeds from sale of property, plant and equipment | 242 | 399 | |
Purchase of property, plant and equipment | (6,588) | (10,575) | |
Investments in and advances to unconsolidated entities | (2,804) | 0 | |
Net cash used in investing activities | (11,839) | (91,569) | |
Cash flows - financing activities: | |||
Repayments of long-term debt and debt issuance costs | (3,800) | (3,800) | |
Repayments of capital lease obligations | (372) | (347) | |
Dividends paid to stockholders | (4,704) | (4,793) | |
Repurchase of common stock | (34,485) | (54,901) | |
Taxes paid related to net share settlements of equity awards | (3,267) | (2,637) | |
Issuance of common stock under employee stock purchase plan | 1,337 | 864 | |
Net cash used in financing activities | (45,291) | (65,614) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,733 | 490 | |
Decrease in cash, cash equivalents and restricted cash | (114,484) | (160,598) | |
Cash, cash equivalents and restricted cash at beginning of year (1) | [1] | 469,388 | 466,660 |
Cash, cash equivalents and restricted cash at end of period (2) | [2] | 354,904 | 306,062 |
Cash paid for: | |||
Interest | 2,650 | 2,841 | |
Income taxes | 2,741 | 2,681 | |
Non-cash financing activities: | |||
Assets acquired under capital lease obligations | $ 541 | $ 466 | |
[1] | Includes $2.0 million of restricted cash classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheet as of December 31, 2017 and 2016. | ||
[2] | Includes $2.5 million and $3.3 million of restricted cash classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheet as of March 31, 2018 and 2017, respectively. |
Condensed Consolidated Stateme8
Condensed Consolidated Statements Of Cash Flows Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 2.5 | $ 2 | $ 3.3 | $ 2 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | [1] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | |
Balance at Dec. 31, 2016 | $ 1,537,942 | $ 606 | $ 52,219 | $ (101,703) | $ 1,596,269 | $ (10,302) | $ 853 | ||
Net income including noncontrolling interests | 52,610 | 52,640 | (30) | ||||||
Other comprehensive income | 495 | 495 | |||||||
Common stock issued under share-based compensation plans | 0 | 1 | (1) | ||||||
Tax withholding for common stock issued under share-based compensation plans | (2,637) | (2,637) | |||||||
Common stock issued under employee stock purchase plan | 864 | 864 | |||||||
Common stock dividends | (4,793) | (4,839) | |||||||
Common stock dividends, accrued dividend shares | 46 | ||||||||
Repurchase of common stock | (53,307) | (8) | (53,299) | ||||||
Share-based compensation expense | 2,967 | 2,967 | |||||||
Balance at Mar. 31, 2017 | 1,534,141 | 599 | 159 | (101,208) | 1,644,070 | (10,302) | 823 | ||
Balance at Dec. 31, 2017 | 1,674,117 | 599 | 8,005 | (94,200) | 1,796,556 | (37,693) | 850 | ||
Net income including noncontrolling interests | 55,374 | 55,374 | 0 | ||||||
Other comprehensive income | 880 | 880 | |||||||
Cumulative-effect adjustment (2) | [2] | (854) | (854) | ||||||
Common stock issued under share-based compensation plans | 0 | 1 | (1) | ||||||
Tax withholding for common stock issued under share-based compensation plans | (3,267) | (3,267) | |||||||
Common stock issued under employee stock purchase plan | 1,337 | 1,337 | |||||||
Common stock dividends | (4,704) | (4,748) | |||||||
Common stock dividends, accrued dividend shares | 44 | ||||||||
Repurchase of common stock | (34,485) | 0 | 0 | (34,485) | |||||
Share-based compensation expense | 3,268 | 3,268 | |||||||
Balance at Mar. 31, 2018 | $ 1,691,666 | $ 600 | $ 9,386 | $ (93,320) | $ 1,846,328 | $ (72,178) | $ 850 | ||
[1] | Represents cumulative foreign currency translation adjustments and post retirement liability adjustments. | ||||||||
[2] | Represents adjustment to retained earnings upon the adoption of Accounting Standards Codification Topic 606. |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. References to the “Company,” “EMCOR,” “we,” “us,” “our” and similar words refer to EMCOR Group, Inc. and its consolidated subsidiaries unless the context indicates otherwise. Readers of this report should refer to the consolidated financial statements and the notes thereto included in our latest Annual Report on Form 10-K filed with the Securities and Exchange Commission. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of those of a normal recurring nature) necessary to present fairly our financial position and the results of our operations. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2018, we adopted the accounting pronouncement issued by the Financial Accounting Standards Board (“FASB”) to clarify existing guidance on revenue recognition. This guidance includes the required steps to achieve the core principle that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We adopted this pronouncement on a modified retrospective basis, and its impact on our financial position and results of operations, as well as required additional disclosures, are included in Note 3 - Revenue from Contracts with Customers. As a result of the adoption of this standard, certain changes have been made to the Condensed Consolidated Balance Sheets. The accounts previously named “Costs and estimated earnings in excess of billings on uncompleted contracts” and “Billings in excess of costs and estimated earnings on uncompleted contracts” have been renamed “Contract assets” and “Contract liabilities”, respectively. In addition, for periods beginning after December 31, 2017, amounts representing deferred revenues on services contracts, which were previously included in “Other accrued expenses and liabilities” within the Condensed Consolidated Balance Sheets, have been reclassified as “Contract liabilities.” On January 1, 2018, we adopted the accounting pronouncement issued by the FASB to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. This guidance requires entities to show changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows. This guidance was adopted on a retrospective basis, and such adoption did not have a material impact on our financial position and/or results of operations. In February 2016, an accounting pronouncement was issued by the FASB to replace existing lease accounting guidance. This pronouncement is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet for most leases. Expenses associated with leases will continue to be recognized in a manner similar to current accounting guidance. This pronouncement is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption is required to be applied on a modified retrospective basis for each prior reporting period presented. Although we have not yet quantified the impact that the adoption of this pronouncement will have on our financial position and/or results of operations, we have begun a process to identify a complete population of our leases. Such process includes reviewing various contracts to identify whether such arrangements convey the right to control the use of an identified asset. We continue to evaluate the impact of the new accounting pronouncement, including enhanced disclosure requirements, on our business processes, controls and systems. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“ASC 606”) on January 1, 2018. The adoption of ASC 606 represents a change in accounting principle that aligns revenue recognition with the timing of when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps in accordance with ASC 606: (1) Identify the contract with a customer A contract with a customer exists when: (a) the parties have approved the contract and are committed to perform their respective obligations, (b) the rights of the parties can be identified, (c) payment terms can be identified, (d) the arrangement has commercial substance, and (e) collectibility of consideration is probable. Judgment is required when determining if the contractual criteria are met, specifically in the earlier stages of a project when a formally executed contract may not yet exist. In these situations, the Company evaluates all relevant facts and circumstances, including the existence of other forms of documentation or historical experience with our customers that may indicate a contractual agreement is in place and revenue should be recognized. In determining if the collectibility of consideration is probable, the Company considers the customer’s ability and intention to pay such consideration through an evaluation of several factors, including an assessment of the creditworthiness of the customer and our prior collection history with such customer. (2) Identify the performance obligations in the contract At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “unit of account” for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract. In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry. Our contracts are often modified through change orders to account for changes in the scope and price of the goods or services we are providing. Although the Company evaluates each change order to determine whether such modification creates a separate performance obligation, the majority of our change orders are for goods or services that are not distinct within the context of our original contract and therefore are not treated as separate performance obligations. (3) Determine the transaction price The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current and estimates of future performance. The expected value method is typically utilized in situations where a contract contains a large number of possible outcomes while the most likely amount method is typically utilized in situations where a contract has only two possible outcomes. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts. Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer, but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied. Contract claims are another form of variable consideration which is common within our industry. Claim amounts represent revenue that has been recognized for contract modifications that are not submitted or are in dispute as to both scope and price. In estimating the transaction price for claims, the Company considers all relevant facts available. However, given the uncertainty surrounding claims, including the potential long-term nature of dispute resolution and the broad range of possible consideration amounts, there is an increased likelihood that any additional contract revenue associated with contract claims is constrained. The resolution of claims involves negotiations and, in certain cases, litigation. In the event litigation costs are incurred by us in connection with claims, such litigation costs are expensed as incurred, although we may seek to recover these costs. For some transactions, the receipt of consideration does not match the timing of the transfer of goods or services to the customer. For such contracts, the Company evaluates whether this timing difference represents a financing arrangement within the contract. Although rare, if a contract is determined to contain a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money when determining the transaction price of such contract. Although our customers may retain a portion of the contract price until completion of the project and final contract settlement, these retainage amounts are not considered a significant financing component as the intent of the withheld amounts is to provide the customer with assurance that we will complete our obligations under the contract rather than to provide financing to the customer. In addition, although we may be entitled to advanced payments from our customers on certain contracts, these advanced payments generally do not represent a significant financing component as the payments are used to meet working capital demands that can be higher in the early stages of a contract, as well as to protect us from our customer failing to meet its obligations under the contract. Changes in the estimates of transaction prices are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the ultimate outcome differs from the Company’s previous estimate. For the three months ended March 31, 2018 and 2017 , there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. In addition, there were no significant reversals of revenue recognized associated with the revision to transaction prices. (4) Allocate the transaction price to performance obligations in the contract For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The Company determines the standalone selling price based on the price at which the performance obligation would have been sold separately in similar circumstances to similar customers. If the standalone selling price is not observable, the Company estimates the standalone selling price taking into account all available information such as market conditions and internal pricing guidelines. In certain circumstances, the standalone selling price is determined using an expected profit margin on anticipated costs related to the performance obligation. (5) Recognize revenue as performance obligations are satisfied The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to its customers. A good or service is considered to be transferred when the customer obtains control. The Company can transfer control of a good or service and satisfy its performance obligations either over time or at a point in time. The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes revenue over time if one of the following three criteria are met: (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as we perform, (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (c) the Company’s performance does not create an asset with an alternative use to us, and we have an enforceable right to payment for performance completed to date. For our performance obligations satisfied over time, we recognize revenue by measuring the progress toward complete satisfaction of that performance obligation. The selection of the method to measure progress towards completion can be either an input method or an output method and requires judgment based on the nature of the goods or services to be provided. For our construction contracts, revenue is generally recognized over time as our performance creates or enhances an asset that the customer controls. Our fixed price construction projects generally use a cost-to-cost input method to measure our progress towards complete satisfaction of the performance obligation as we believe it best depicts the transfer of control to the customer. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. For our unit price construction contracts, progress towards complete satisfaction is measured through an output method such as the amount of units produced or delivered, when our performance does not produce significant amounts of work in process or finished goods prior to complete satisfaction of such performance obligations. For our services contracts, revenue is also generally recognized over time as the customer simultaneously receives and consumes the benefits of our performance as we perform the service. For our fixed price service contracts with specified service periods, revenue is generally recognized on a straight-line basis over such service period when our inputs are expended evenly, and the customer receives and consumes the benefits of our performance throughout the contract term. The timing of revenue recognition for the manufacturing of new build heat exchangers within our United States industrial services segment depends on the payment terms of the contract, as our performance does not create an asset with an alternative use to us. For those contracts which we have a right to payment for performance completed to date at all times throughout our performance, inclusive of a cancellation, we recognize revenue over time. These performance obligations use a cost-to-cost input method to measure our progress towards complete satisfaction of the performance obligation as we believe it best depicts the transfer of control to the customer. However, for those contracts for which we do not have a right, at all times, to payment for performance completed to date, we recognize revenue at the point in time when control is transferred to the customer. For bill-and-hold arrangements, revenue is recognized when the customer obtains control of the heat exchanger, which may be prior to shipping, if the criteria of ASC 606 are met. For certain of our revenue streams, such as call-out repair and service work, outage services, refinery turnarounds and specialty welding services that are performed under time and materials contracts, our progress towards complete satisfaction of such performance obligations is measured using an output method as the customer receives and consumes the benefits of our performance completed to date. Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicate a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. For the three months ended March 31, 2018 and 2017 , there were no changes in total estimated costs that had a significant impact to our operating results. In addition, for the three months ended March 31, 2018 and 2017 , there were no significant losses recognized. Disaggregation of Revenues Our revenues are principally derived from contracts to provide construction services relating to electrical and mechanical systems, as well as to provide a number of building services and industrial services to our customers. Our contracts are with many different customers in numerous industries. Refer to Note 14 - Segment Information of the notes to the condensed consolidated financial statements for additional information on how we disaggregate our revenues by reportable segment, as well as a more complete description of our business. The following tables provide further disaggregation of our revenues by categories we use to evaluate our financial performance within each of our reportable segments (in thousands): For the three months ended March 31, 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 184,382 40 % Institutional market sector 28,008 6 % Hospitality market sector 5,516 1 % Manufacturing market sector 85,794 19 % Healthcare market sector 38,507 8 % Transportation market sector 71,264 16 % Water and wastewater market sector 4,613 1 % Short duration projects (1) 29,530 7 % Service work 8,168 2 % 455,782 Less intersegment revenues (1,030 ) Total segment revenues $ 454,752 United States mechanical construction and facilities services: Commercial market sector $ 231,851 33 % Institutional market sector 65,627 9 % Hospitality market sector 26,527 4 % Manufacturing market sector 99,876 14 % Healthcare market sector 66,114 10 % Transportation market sector 5,206 1 % Water and wastewater market sector 36,751 5 % Short duration projects (1) 83,895 12 % Service work 86,225 12 % 702,072 Less intersegment revenues (3,225 ) Total segment revenues $ 698,847 ________ (1) Represents those projects which generally are completed within three months or less. United States building services: Commercial site-based services $ 146,761 32 % Government site-based services 55,409 12 % Mechanical services 227,342 50 % Energy services 25,240 6 % Total segment revenues $ 454,752 For the three months ended March 31, 2018 % of Total United States industrial services: Field services $ 148,090 80 % Shop services 37,057 20 % Total segment revenues $ 185,147 Total United States operations $ 1,793,498 United Kingdom building services: Service work $ 55,275 52 % Projects & extras 51,615 48 % Total segment revenues $ 106,890 Total worldwide operations $ 1,900,388 Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when our right to consideration is unconditional. Accounts receivable are recognized net of an allowance for doubtful accounts. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our long-term construction projects when revenue recognized under the cost-to-cost measure of progress exceed the amounts invoiced to our customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from our customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. In addition, many of our time and materials arrangements, as well as our contracts to perform turnaround services within the United States industrial services segment, are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Also included in contract assets are amounts we seek or will seek to collect from customers or others for errors or changes in contract specifications or design, contract change orders or modifications in dispute or unapproved as to both scope and/or price or other customer-related causes of unanticipated additional contract costs (claims and unapproved change orders). Our contract assets do not include capitalized costs to obtain and fulfill a contract. Contract assets are generally classified as current within the Condensed Consolidated Balance Sheets. Contract liabilities from our long-term construction contracts occur when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when we expect to recognize such revenue. The long-term portion of contract liabilities is included in “Other long-term obligations” in the Condensed Consolidated Balance Sheets. Net contract liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Contract assets, current $ 158,895 $ 122,621 Contract assets, non-current — — Contract liabilities, current (556,306 ) (524,156 ) Contract liabilities, non-current (4,785 ) — Deferred revenue (1) — (47,328 ) Net contract liabilities $ (402,196 ) $ (448,863 ) ________ (1) Represents deferred revenue on service contracts, which was included in “Accrued expenses and other” and “Other long-term liabilities” in the Condensed Consolidated Balance Sheet as of December 31 2017. For the periods after December 31, 2017, these amounts are included within “Contract liabilities”. The $46.7 million decrease in net contract liabilities for the three months ended March 31, 2018 was attributable to a decrease in our net contract liability balance on our uncompleted long-term construction contracts, partially offset by an increase in advanced payments received on certain of our service contracts, net of revenues recognized during the period. There was no significant impairment of contract assets recognized during the period. Transaction Price Allocated to Remaining Unsatisfied Performance Obligations The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations (in thousands, except for percentages): March 31, 2018 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,133,811 31 % United States mechanical construction and facilities services 1,822,381 51 % United States building services 424,196 12 % United States industrial services 64,450 2 % Total United States operations 3,444,838 96 % United Kingdom building services 158,905 4 % Total worldwide operations $ 3,603,743 100 % Our remaining performance obligations at March 31, 2018 were $3.60 billion . Remaining performance obligations increase with awards of new contracts and decrease as we perform work and recognize revenue on existing contracts. We include a project within our remaining performance obligations at such time the project is awarded and agreement on contract terms has been reached. Our remaining performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of total transaction price can be made. Remaining performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of our construction contracts are subject to cancellation at the election of our customers, in accordance with industry practice, we do not limit the amount of unrecognized revenue included within remaining performance obligations due to the inherent substantial economic penalty that would be incurred by our customers upon cancellation. We believe our reported remaining performance obligations for our construction contracts are firm and contract cancellations have not had a material adverse effect on us. Remaining performance obligations also include unrecognized revenues expected to be realized over the remaining term of service contracts. However, to the extent a service contract includes a cancellation clause which allows for the termination of such contract by either party without a substantive penalty, the remaining contract term, and therefore, the amount of unrecognized revenues included within remaining performance obligations, is limited to the notice period required for the termination. Our remaining performance obligations are comprised of: (a) original contract amounts, (b) change orders for which we have received written confirmations from our customers, (c) pending change orders for which we expect to receive confirmations in the ordinary course of business, (d) claim amounts that we have made against customers for which we have determined we have a legal basis under existing contractual arrangements and as to which the variable consideration constraint does not apply, and (e) other forms of variable consideration to the extent that such variable consideration has been included within the transaction price of our contracts. Such claim and other variable consideration amounts were immaterial for all periods presented. Refer to the table below for additional information regarding our remaining performance obligations, including an estimate of when we expect to recognize such remaining performance obligations as revenue (in thousands): Within one year Greater than one year Remaining performance obligations: United States electrical construction and facilities services $ 932,331 $ 201,480 United States mechanical construction and facilities services 1,434,719 387,662 United States building services 402,065 22,131 United States industrial services 64,450 — Total United States operations 2,833,565 611,273 United Kingdom building services 98,103 60,802 Total worldwide operations $ 2,931,668 $ 672,075 Impact of the Adoption of ASC 606 on our Financial Statements The Company adopted ASC 606 on a modified retrospective basis. As part of such adoption, the new standard was applied only to those contracts which were not completed as of the date of adoption. Additionally, the Company has not retrospectively restated contract positions for contract modifications made prior to the adoption of ASC 606. The cumulative effect of applying the new guidance was recorded on January 1, 2018 as a reduction to retained earnings in the amount of $0.9 million , net of tax. The majority of this adjustment related to: (a) a change in the measurement of our progress towards complete satisfaction of performance obligations for certain of our contracts within the United States electrical construction and facilities services segment, (b) a change in the timing of revenue recognition from point in time to over time for certain repair projects within the United Kingdom building services segment, (c) the recognition of revenue for certain bill-and-hold arrangements within our United States industrial services segment that was not allowed under previous revenue recognition guidance, (d) the recognition of variable consideration for contract bonuses within certain of our construction contracts, and (e) a change in the timing of revenue recognition from a point in time to over time for certain of our contracts within our United States industrial services segment to manufacture or repair heat exchangers. These adjustments were not material to our financial position either individually or in the aggregate. The following tables compare the differences between our reported and pro forma results under previous revenue guidance for each financial statement line item within our reported Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations, as of and for the three months ended March 31, 2018 (in thousands): As reported Pro forma March 31, 2018 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 352,443 $ 352,443 Accounts receivable 1,572,919 1,568,739 Contract assets 158,895 159,053 Inventories 43,727 47,872 Prepaid expenses and other 41,793 40,874 Total current assets 2,169,777 2,168,981 Investments, notes and other long-term receivables 3,680 3,680 Property, plant and equipment, net 124,797 124,797 Goodwill 965,046 965,046 Identifiable intangible assets, net 484,368 484,368 Other assets 94,331 94,331 Total assets $ 3,841,999 $ 3,841,203 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt and capital lease obligations $ 15,480 $ 15,480 Accounts payable 487,333 487,333 Contract liabilities 556,306 503,418 Accrued payroll and benefits 259,875 259,875 Other accrued expenses and liabilities 193,303 246,425 Total current liabilities 1,512,297 1,512,531 Borrowings under revolving credit facility 25,000 25,000 Long-term debt and capital lease obligations 266,478 266,478 Other long-term obligations 346,558 345,667 Total liabilities 2,150,333 2,149,676 Total equity 1,691,666 1,691,527 Total liabilities and equity $ 3,841,999 $ 3,841,203 As reported Pro forma For the three months ended March 31, 2018 (Unaudited) Revenues $ 1,900,388 $ 1,899,490 Cost of sales 1,631,269 1,631,732 Gross profit 269,119 267,758 Selling, general and administrative expenses 190,288 190,288 Restructuring expenses 90 90 Operating income 78,741 77,380 Interest expense (2,996 ) (2,996 ) Interest income 544 544 Income from continuing operations before income taxes 76,289 74,928 Income tax provision 20,633 20,265 Income from continuing operations 55,656 54,663 Loss from discontinued operation, net of income taxes (282 ) (282 ) Net income including noncontrolling interests 55,374 54,381 Less: Net loss attributable to noncontrolling interests — — Net income attributable to EMCOR Group, Inc. $ 55,374 $ 54,381 Basic earnings per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.93 Diluted earnings per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.93 The adoption of ASC 606 had no impact on the Company’s cash flows from operations. The differences between our reported operating results and the pro forma operating results presented in the above tables for the three months ended March 31, 2018 primarily related to the previously referenced items identified upon adoption of ASC 606. |
Acquisitions Of Businesses
Acquisitions Of Businesses | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions Of Businesses | Acquisitions of Businesses No acquisitions were made during the three months ended March 31, 2018. On January 4, 2017 , March 1, 2017 and November 1, 2017 , we acquired three companies for a total consideration of $109.3 million . One company provides fire protection and alarm services primarily in the Southern region of the United States. The second company provides millwright services for manufacturing companies throughout the United States. Both of their results have been included in our United States mechanical construction and facilities services segment. The third company provides mobile mechanical services within the Western region of the United States, and its results have been included in our United States building services segment. In connection with these acquisitions, we acquired working capital of $9.6 million and other net assets of $2.3 million and have preliminarily ascribed $40.8 million to goodwill and $56.6 million to identifiable intangible assets. We expect that all of the acquired goodwill will be deductible for tax purposes. The purchase price allocation for the business acquired in November of 2017 is still preliminary and subject to change during its respective measurement period. The purchase price allocations for the businesses acquired in January and March of 2017 have been finalized with an insignificant impact. The acquisition of these businesses was accounted for by the acquisition method, and the prices paid for them have been allocated to their respective assets and liabilities, based upon the estimated fair value of their assets and liabilities at the dates of their respective acquisitions by us. |
Disposition of Assets
Disposition of Assets | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets | Disposition of Assets Due to a historical pattern of losses in the construction operations of our United Kingdom segment and our negative assessment of construction market conditions in the United Kingdom for the foreseeable future, we ceased construction operations in the United Kingdom during the third quarter of 2014. The results of the construction operations of our United Kingdom segment for all periods are presented in the Condensed Consolidated Financial Statements as discontinued operations. The results of discontinued operations are as follows (in thousands): For the three months ended March 31, 2018 2017 Revenues $ — $ — Loss from discontinued operation, net of income taxes $ (282 ) $ (504 ) Diluted loss per share from discontinued operation $ (0.00 ) $ (0.01 ) The loss from discontinued operations in 2018 and 2017 was primarily due to legal costs related to the settlement of final contract balances on certain construction projects completed in prior years. Included in the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands): March 31, December 31, Assets of discontinued operation: Current assets $ 151 $ 242 Liabilities of discontinued operation: Current liabilities $ 2,672 $ 2,811 At March 31, 2018 , the assets and liabilities of the discontinued operation consisted of accounts receivable, contract retentions and contract warranty obligations that are expected to be collected or fulfilled in the ordinary course of business. Additionally at March 31, 2018 , there remained less than $0.1 million of obligations related to employee severance, which are expected to be paid during the remainder of 2018. The settlement of the remaining assets and liabilities may result in additional income and/or expenses. Such income and/or expenses are expected to be immaterial and will be reflected as discontinued operations as incurred. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Calculation of Basic and Diluted Earnings (Loss) per Common Share The following tables summarize our calculation of Basic and Diluted Earnings (Loss) per Common Share (“EPS”) for the three months ended March 31, 2018 and 2017 (in thousands, except share and per share data): For the three months ended March 31, 2018 2017 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 55,656 $ 53,144 Loss from discontinued operation, net of income taxes (282 ) (504 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 55,374 $ 52,640 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 58,739,115 59,769,136 Effect of dilutive securities—Share-based awards 325,049 342,466 Shares used to compute diluted earnings (loss) per common share 59,064,164 60,111,602 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.89 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.88 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.88 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.87 The number of outstanding share-based awards that were excluded from the computation of diluted EPS for the three months ended March 31, 2018 and 2017 because they would be anti-dilutive were 20,675 and 500 , respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): March 31, December 31, Raw materials and construction materials $ 25,017 $ 23,924 Work in process 18,710 18,800 Inventories $ 43,727 $ 42,724 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): March 31, December 31, Revolving credit facility $ 25,000 $ 25,000 Term loan 281,013 284,810 Unamortized debt issuance costs (3,954 ) (4,251 ) Capitalized lease obligations 4,883 4,571 Other 16 20 Total debt 306,958 310,150 Less: current maturities 15,480 15,364 Total long-term debt $ 291,478 $ 294,786 Credit Agreement Until August 3, 2016, we had a credit agreement dated as of November 25, 2013 (as amended, the “2013 Credit Agreement”), which provided for a revolving credit facility of $750.0 million (the “2013 Revolving Credit Facility”) and a term loan of $350.0 million (the “2013 Term Loan”). On August 3, 2016 , we amended and restated the 2013 Credit Agreement to provide for a $900.0 million revolving credit facility (the “2016 Revolving Credit Facility”) and a $400.0 million term loan (the “2016 Term Loan”) (collectively referred to as the “2016 Credit Agreement”) expiring August 3, 2021 . The proceeds of the 2016 Term Loan were used to repay amounts drawn under the 2013 Term Loan, as well as a portion of the outstanding balance under the 2013 Revolving Credit Facility. We may increase the 2016 Revolving Credit Facility to $1.3 billion if additional lenders are identified and/or existing lenders are willing to increase their current commitments. We may allocate up to $300.0 million of available capacity under the 2016 Revolving Credit Facility to letters of credit for our account or for the account of any of our subsidiaries. Obligations under the 2016 Credit Agreement are guaranteed by most of our direct and indirect subsidiaries and are secured by substantially all of our assets. The 2016 Credit Agreement contains various covenants providing for, among other things, maintenance of certain financial ratios and certain limitations on payment of dividends, common stock repurchases, investments, acquisitions, indebtedness and capital expenditures. We were in compliance with all such covenants as of March 31, 2018 and December 31, 2017 . A commitment fee is payable on the average daily unused amount of the 2016 Revolving Credit Facility, which ranges from 0.15% to 0.30% , based on certain financial tests. The fee was 0.15% of the unused amount as of March 31, 2018 . Borrowings under the 2016 Credit Agreement bear interest at (1) a base rate plus a margin of 0.00% to 0.75% , based on certain financial tests, or (2) United States dollar LIBOR ( 2.30% at March 31, 2018 ) plus 1.00% to 1.75% , based on certain financial tests. The base rate is determined by the greater of (a) the prime commercial lending rate announced by Bank of Montreal from time to time ( 4.75% at March 31, 2018 ), (b) the federal funds effective rate, plus ½ of 1.00% , (c) the daily one month LIBOR rate, plus 1.00% , or (d) 0.00% . The interest rate in effect at March 31, 2018 was 3.30% . Fees for letters of credit issued under the 2016 Revolving Credit Facility range from 1.00% to 1.75% of the respective face amounts of outstanding letters of credit and are computed based on certain financial tests. Debt issuance costs are amortized over the life of the agreement and are included as part of interest expense. The 2016 Term Loan previously required us to make principal payments of $5.0 million on the last day of March, June, September and December of each year, which commenced with the calendar quarter ended December 31, 2016. On December 30, 2016, we made a payment of $100.0 million , of which $5.0 million represented our required quarterly payment and $95.0 million represented a prepayment of outstanding principal. Such prepayment was applied against the remaining mandatory quarterly payments on a ratable basis. As a result, commencing with the calendar quarter ended March 31, 2017, our required quarterly payment has been reduced to $3.8 million . All unpaid principal and interest is due on August 3, 2021. As of March 31, 2018 and December 31, 2017 , the balance of the 2016 Term Loan was $281.0 million and $284.8 million , respectively. As of March 31, 2018 and December 31, 2017 , we had approximately $109.9 million and $110.1 million of letters of credit outstanding, respectively. There were $25.0 million in borrowings outstanding under the 2016 Revolving Credit Facility as of March 31, 2018 and December 31, 2017 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, which gives the highest priority to quoted prices in active markets, is comprised of the following three levels: Level 1 – Unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs. Level 2 inputs would typically include quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the measurement and unobservable. The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2018 and December 31, 2017 (in thousands): Assets at Fair Value as of March 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 352,443 $ — $ — $ 352,443 Restricted cash (2) 2,461 — — 2,461 Deferred compensation plan assets (3) 25,966 — — 25,966 Total $ 380,870 $ — $ — $ 380,870 Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 467,430 $ — $ — $ 467,430 Restricted cash (2) 1,958 — — 1,958 Deferred compensation plan assets (3) 22,054 — — 22,054 Total $ 491,442 $ — $ — $ 491,442 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At March 31, 2018 and December 31, 2017 , we had $178.0 million and $194.2 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts. (3) Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. We believe that the carrying values of our financial instruments, which include accounts receivable and other financing commitments, approximate their fair values due primarily to their short-term maturities and low risk of counterparty default. The carrying value of our debt associated with the 2016 Credit Agreement approximates its fair value due to the variable rate on such debt. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21% , effective January 1, 2018. As a result of the reduction of the U.S. corporate tax rate to 21%, U.S. generally accepted accounting principles require companies to re-value their deferred tax assets and liabilities as of the date of enactment, with the resulting tax effects accounted for in the reporting period of enactment. Based on currently available information, the Company’s estimated value of its net deferred federal and state tax liability balances have been reduced by approximately $39.3 million , which was recorded as a reduction of income tax expense in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. Such estimate will be finalized upon the completion of the 2017 federal and state income tax returns as the Company continues to evaluate any further guidance that may be issued related to the Tax Act. The Tax Act provides for a change from a worldwide to a territorial tax system and requires a one-time transition tax on certain deferred foreign income of specified foreign corporations. Staff Accounting Bulletin 118 provides a measurement period for companies to evaluate the effects of the Tax Act and the Company made a provisional estimate at December 31, 2017 that the impact of such transition tax was expected to be immaterial. The Company has concluded, after completion of its analysis during the first quarter of 2018 that it is not subject to such transition tax. Our income tax provision for the three months ended March 31, 2018 also included an estimate of the minimum tax on global intangible low-taxed income for certain earnings of our foreign subsidiaries, as required under the Tax Act. The Company continues to evaluate the effects of the Tax Act related to the repatriation of certain foreign earnings and believes that such effects are immaterial. For the three months ended March 31, 2018 and 2017 , our income tax provision from continuing operations was $20.6 million and $26.8 million , respectively, based on an effective income tax rate, before discrete items and less amounts attributable to noncontrolling interests, of 27.6% and 37.8% , respectively. The actual income tax rate on income from continuing operations, less amounts attributable to noncontrolling interests, for the three months ended March 31, 2018 and 2017 , inclusive of discrete items, was 27.0% and 33.6% , respectively. The decrease in the 2018 income tax provision and the 2018 actual income tax rate on income from continuing operations was primarily due to the enactment of the Tax Act. As of March 31, 2018 and December 31, 2017 , the amount of unrecognized income tax benefits was $0.8 million . We report interest expense and/or income related to unrecognized income tax benefits in the income tax provision. As of March 31, 2018 and December 31, 2017 , we had approximately $0.1 million of accrued interest expense related to unrecognized income tax benefits included as a liability in the Condensed Consolidated Balance Sheets. Total income tax reserves included in “Other long-term liabilities” were $0.9 million as of March 31, 2018 and December 31, 2017. For the three months ended March 31, 2018 and 2017 , less than $0.1 million of interest expense and approximately $0.4 million of interest income, respectively, was recognized in the income tax provision. We do not anticipate any significant changes to our reserves for uncertain tax positions in the next twelve months. We file income tax returns with the Internal Revenue Service and various state, local and foreign tax agencies. The Company is currently under examination by various taxing authorities for the years 2012 through 2015. During the first quarter of 2017, the Company settled an examination with a taxing authority which resulted in a $3.3 million reversal of reserves for previously uncertain tax positions. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock As of March 31, 2018 and December 31, 2017 , there were 58,450,685 and 58,798,428 shares of our common stock outstanding, respectively. During the three months ended March 31, 2018 and 2017 , we issued 98,153 and 117,034 shares of common stock, respectively, primarily upon: (a) the satisfaction of required conditions under certain of our share-based compensation plans and (b) the purchase of common stock pursuant to our employee stock purchase plan. On September 26, 2011, our Board of Directors authorized us to repurchase up to $100.0 million of our outstanding common stock. On December 5, 2013, October 23, 2014, October 28, 2015 and October 25, 2017, our Board of Directors authorized us to repurchase up to an additional $100.0 million , $250.0 million , $200.0 million and $100.0 million of our outstanding common stock, respectively. During 2018, we have repurchased approximately 445,896 shares of our common stock for approximately $34.5 million . Since the inception of the repurchase programs through March 31, 2018 , we have repurchased approximately 13.3 million shares of our common stock for approximately $609.7 million . As of March 31, 2018 , there remained authorization for us to repurchase approximately $140.3 million of our shares. The repurchase programs have no expiration date and do not obligate the Company to acquire any particular amount of common stock and may be suspended, recommenced or discontinued at any time or from time to time without prior notice. We may repurchase our shares from time to time to the extent permitted by securities laws and other legal requirements, including provisions in our 2016 Credit Agreement placing limitations on such repurchases. The repurchase programs have been and will be funded from our operations. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Our United Kingdom subsidiary has a defined benefit pension plan covering all eligible employees (the “UK Plan”); however, no individual joining the company after October 31, 2001 may participate in the UK Plan. On May 31, 2010, we curtailed the future accrual of benefits for active employees under such plan. Components of Net Periodic Pension Cost The components of net periodic pension cost of the UK Plan for the three months ended March 31, 2018 and 2017 were as follows (in thousands): For the three months ended March 31, 2018 2017 Interest cost $ 2,099 $ 2,045 Expected return on plan assets (3,581 ) (3,204 ) Amortization of unrecognized loss 682 698 Net periodic pension cost (income) $ (800 ) $ (461 ) Employer Contributions For the three months ended March 31, 2018 , our United Kingdom subsidiary contributed approximately $1.1 million to the UK Plan and anticipates contributing an additional $3.9 million during the remainder of 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Government Contracts As a government contractor, we are subject to U.S. government audits and investigations relating to our operations, fines, penalties and compensatory and treble damages, and possible suspension or debarment from doing business with the government. Based on currently available information, we believe the outcome of ongoing government disputes and investigations will not have a material impact on our financial position, results of operations or liquidity. Legal Matters One of our subsidiaries was a subcontractor to a mechanical contractor (“Mechanical Contractor”) on a construction project where an explosion occurred in 2010. The Mechanical Contractor has asserted claims, in the context of an arbitration proceeding against our subsidiary, alleging that our subsidiary is responsible for a portion of the damages for which the Mechanical Contractor may be liable as a result of: (a) personal injury suffered by individuals as a result of the explosion and (b) the Mechanical Contractor’s legal fees and associated management costs in defending against any and all such claims. The Mechanical Contractor previously asserted claims under the Connecticut and Massachusetts Unfair and Deceptive Trade Practices Acts, but such claims have been withdrawn. The general contractor (as assignee of the Mechanical Contractor) on the construction project, and for whom the Mechanical Contractor worked, has alleged that our subsidiary is responsible for losses asserted by the owner of the project and/or the general contractor because of delays in completion of the project and for damages to the owner’s property. We believe, and have been advised by counsel, that we have a number of meritorious defenses to all such matters. We believe that the ultimate outcome of such matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Notwithstanding our assessment of the final impact of this matter, we are not able to estimate with any certainty the amount of loss, if any, which would be associated with an adverse resolution. We are involved in several other proceedings in which damages and claims have been asserted against us. We believe that we have a number of valid defenses to such proceedings and claims and intend to vigorously defend ourselves. Other potential claims may exist that have not yet been asserted against us. We do not believe that any such matters will have a material adverse effect on our financial position, results of operations or liquidity. Litigation is subject to many uncertainties and the outcome of litigation is not predictable with assurance. It is possible that some litigation matters for which liabilities have not been recorded could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial position, results of operations or liquidity. Restructuring expenses Restructuring expenses, relating to employee severance obligations, were less than $0.1 million and $0.6 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 , the balance of these restructuring obligations yet to be paid was $0.3 million , and the majority is expected to be paid during the remainder of 2018. No material expenses in connection with restructuring from continuing operations are expected to be incurred during the remainder of 2018. The changes in restructuring activity by reportable segments during the three months ended March 31, 2018 and 2017 were as follows (in thousands): United States United States United States building services segment Total Balance at December 31, 2016 $ — $ 188 $ 13 $ 201 Charges — 62 503 565 Payments — (110 ) (420 ) (530 ) Balance at March 31, 2017 $ — $ 140 $ 96 $ 236 Balance at December 31, 2017 $ 452 $ — $ 40 $ 492 Charges — — 90 90 Payments (147 ) — (120 ) (267 ) Balance at March 31, 2018 $ 305 $ — $ 10 $ 315 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have the following reportable segments, which provide services associated with the design, integration, installation, start-up, operation and maintenance of various systems: (a) United States electrical construction and facilities services (involving systems for electrical power transmission and distribution; premises electrical and lighting systems; process instrumentation in the refining, chemical process, food process and mining industries; low-voltage systems, such as fire alarm, security and process control; voice and data communication; roadway and transit lighting; and fiber optic lines); (b) United States mechanical construction and facilities services (involving systems for heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; fire protection; plumbing, process and high-purity piping; controls and filtration; water and wastewater treatment; central plant heating and cooling; cranes and rigging; millwrighting; and steel fabrication, erection and welding); (c) United States building services; (d) United States industrial services; and (e) United Kingdom building services. The “United States building services” and “United Kingdom building services” segments principally consist of those operations which provide a portfolio of services needed to support the operation and maintenance of customers’ facilities, including commercial and government site-based operations and maintenance; facility maintenance and services, including reception, security and catering services; outage services to utilities and industrial plants; military base operations support services; mobile maintenance and services; floor care and janitorial services; landscaping, lot sweeping and snow removal; facilities management; vendor management; call center services; installation and support for building systems; program development, management and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects for federal, state and local governmental agencies and bodies; and small modification and retrofit projects, which services are not generally related to customers’ construction programs. The “United States industrial services” segment principally consists of those operations which provide industrial maintenance and services, including those for refineries and petrochemical plants, including on-site repairs, maintenance and service of heat exchangers, towers, vessels and piping; design, manufacturing, repair and hydro blast cleaning of shell and tube heat exchangers and related equipment; refinery turnaround planning and engineering services; specialty welding services; overhaul and maintenance of critical process units in refineries and petrochemical plants; and specialty technical services for refineries and petrochemical plants. The following tables present information about industry segments and geographic areas for the three months ended March 31, 2018 and 2017 (in thousands): For the three months ended March 31, 2018 2017 Revenues from unrelated entities: United States electrical construction and facilities services $ 454,752 $ 443,016 United States mechanical construction and facilities services 698,847 671,129 United States building services 454,752 440,030 United States industrial services 185,147 258,539 Total United States operations 1,793,498 1,812,714 United Kingdom building services 106,890 79,018 Total worldwide operations $ 1,900,388 $ 1,891,732 Total revenues: United States electrical construction and facilities services $ 457,169 $ 444,016 United States mechanical construction and facilities services 705,880 679,391 United States building services 470,099 454,944 United States industrial services 185,720 258,905 Less intersegment revenues (25,370 ) (24,542 ) Total United States operations 1,793,498 1,812,714 United Kingdom building services 106,890 79,018 Total worldwide operations $ 1,900,388 $ 1,891,732 For the three months ended March 31, 2018 2017 Operating income (loss): United States electrical construction and facilities services $ 35,851 $ 31,034 United States mechanical construction and facilities services 39,572 40,433 United States building services 17,034 14,209 United States industrial services 3,469 17,044 Total United States operations 95,926 102,720 United Kingdom building services 4,570 1,679 Corporate administration (21,665 ) (21,060 ) Restructuring expenses (90 ) (565 ) Total worldwide operations 78,741 82,774 Other corporate items: Interest expense (2,996 ) (3,071 ) Interest income 544 257 Income from continuing operations before income taxes $ 76,289 $ 79,960 March 31, December 31, Total assets: United States electrical construction and facilities services $ 605,483 $ 617,471 United States mechanical construction and facilities services 1,058,495 1,097,240 United States building services 783,271 764,085 United States industrial services 776,659 772,899 Total United States operations 3,223,908 3,251,695 United Kingdom building services 157,380 131,806 Corporate administration 460,711 582,403 Total worldwide operations $ 3,841,999 $ 3,965,904 |
Fair Value Measurements (Policy
Fair Value Measurements (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | We use a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, which gives the highest priority to quoted prices in active markets, is comprised of the following three levels: Level 1 – Unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs. Level 2 inputs would typically include quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the measurement and unobservable. |
Revenue from Contracts with C25
Revenue from Contracts with Customers Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide further disaggregation of our revenues by categories we use to evaluate our financial performance within each of our reportable segments (in thousands): For the three months ended March 31, 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 184,382 40 % Institutional market sector 28,008 6 % Hospitality market sector 5,516 1 % Manufacturing market sector 85,794 19 % Healthcare market sector 38,507 8 % Transportation market sector 71,264 16 % Water and wastewater market sector 4,613 1 % Short duration projects (1) 29,530 7 % Service work 8,168 2 % 455,782 Less intersegment revenues (1,030 ) Total segment revenues $ 454,752 United States mechanical construction and facilities services: Commercial market sector $ 231,851 33 % Institutional market sector 65,627 9 % Hospitality market sector 26,527 4 % Manufacturing market sector 99,876 14 % Healthcare market sector 66,114 10 % Transportation market sector 5,206 1 % Water and wastewater market sector 36,751 5 % Short duration projects (1) 83,895 12 % Service work 86,225 12 % 702,072 Less intersegment revenues (3,225 ) Total segment revenues $ 698,847 ________ (1) Represents those projects which generally are completed within three months or less. United States building services: Commercial site-based services $ 146,761 32 % Government site-based services 55,409 12 % Mechanical services 227,342 50 % Energy services 25,240 6 % Total segment revenues $ 454,752 For the three months ended March 31, 2018 % of Total United States industrial services: Field services $ 148,090 80 % Shop services 37,057 20 % Total segment revenues $ 185,147 Total United States operations $ 1,793,498 United Kingdom building services: Service work $ 55,275 52 % Projects & extras 51,615 48 % Total segment revenues $ 106,890 Total worldwide operations $ 1,900,388 |
Contract Assets and Contract Liabilities | Net contract liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Contract assets, current $ 158,895 $ 122,621 Contract assets, non-current — — Contract liabilities, current (556,306 ) (524,156 ) Contract liabilities, non-current (4,785 ) — Deferred revenue (1) — (47,328 ) Net contract liabilities $ (402,196 ) $ (448,863 ) ________ (1) Represents deferred revenue on service contracts, which was included in “Accrued expenses and other” and “Other long-term liabilities” in the Condensed Consolidated Balance Sheet as of December 31 2017. For the periods after December 31, 2017, these amounts are included within “Contract liabilities”. |
Remaining Performance Obligation | The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations (in thousands, except for percentages): March 31, 2018 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,133,811 31 % United States mechanical construction and facilities services 1,822,381 51 % United States building services 424,196 12 % United States industrial services 64,450 2 % Total United States operations 3,444,838 96 % United Kingdom building services 158,905 4 % Total worldwide operations $ 3,603,743 100 % |
Remaining Performance Obligation, Expected Timing of Satisfaction | Refer to the table below for additional information regarding our remaining performance obligations, including an estimate of when we expect to recognize such remaining performance obligations as revenue (in thousands): Within one year Greater than one year Remaining performance obligations: United States electrical construction and facilities services $ 932,331 $ 201,480 United States mechanical construction and facilities services 1,434,719 387,662 United States building services 402,065 22,131 United States industrial services 64,450 — Total United States operations 2,833,565 611,273 United Kingdom building services 98,103 60,802 Total worldwide operations $ 2,931,668 $ 672,075 |
Schedule of Changes in Accounting Principles | The following tables compare the differences between our reported and pro forma results under previous revenue guidance for each financial statement line item within our reported Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations, as of and for the three months ended March 31, 2018 (in thousands): As reported Pro forma March 31, 2018 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 352,443 $ 352,443 Accounts receivable 1,572,919 1,568,739 Contract assets 158,895 159,053 Inventories 43,727 47,872 Prepaid expenses and other 41,793 40,874 Total current assets 2,169,777 2,168,981 Investments, notes and other long-term receivables 3,680 3,680 Property, plant and equipment, net 124,797 124,797 Goodwill 965,046 965,046 Identifiable intangible assets, net 484,368 484,368 Other assets 94,331 94,331 Total assets $ 3,841,999 $ 3,841,203 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt and capital lease obligations $ 15,480 $ 15,480 Accounts payable 487,333 487,333 Contract liabilities 556,306 503,418 Accrued payroll and benefits 259,875 259,875 Other accrued expenses and liabilities 193,303 246,425 Total current liabilities 1,512,297 1,512,531 Borrowings under revolving credit facility 25,000 25,000 Long-term debt and capital lease obligations 266,478 266,478 Other long-term obligations 346,558 345,667 Total liabilities 2,150,333 2,149,676 Total equity 1,691,666 1,691,527 Total liabilities and equity $ 3,841,999 $ 3,841,203 As reported Pro forma For the three months ended March 31, 2018 (Unaudited) Revenues $ 1,900,388 $ 1,899,490 Cost of sales 1,631,269 1,631,732 Gross profit 269,119 267,758 Selling, general and administrative expenses 190,288 190,288 Restructuring expenses 90 90 Operating income 78,741 77,380 Interest expense (2,996 ) (2,996 ) Interest income 544 544 Income from continuing operations before income taxes 76,289 74,928 Income tax provision 20,633 20,265 Income from continuing operations 55,656 54,663 Loss from discontinued operation, net of income taxes (282 ) (282 ) Net income including noncontrolling interests 55,374 54,381 Less: Net loss attributable to noncontrolling interests — — Net income attributable to EMCOR Group, Inc. $ 55,374 $ 54,381 Basic earnings per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.93 Diluted earnings per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.93 |
Disposition of Assets (Tables)
Disposition of Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Components Of The Results of Discontinued Operations For The Construction Operations of the United Kingdom Segment | The results of discontinued operations are as follows (in thousands): For the three months ended March 31, 2018 2017 Revenues $ — $ — Loss from discontinued operation, net of income taxes $ (282 ) $ (504 ) Diluted loss per share from discontinued operation $ (0.00 ) $ (0.01 ) The loss from discontinued operations in 2018 and 2017 was primarily due to legal costs related to the settlement of final contract balances on certain construction projects completed in prior years. Included in the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands): March 31, December 31, Assets of discontinued operation: Current assets $ 151 $ 242 Liabilities of discontinued operation: Current liabilities $ 2,672 $ 2,811 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Common Share | The following tables summarize our calculation of Basic and Diluted Earnings (Loss) per Common Share (“EPS”) for the three months ended March 31, 2018 and 2017 (in thousands, except share and per share data): For the three months ended March 31, 2018 2017 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 55,656 $ 53,144 Loss from discontinued operation, net of income taxes (282 ) (504 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 55,374 $ 52,640 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 58,739,115 59,769,136 Effect of dilutive securities—Share-based awards 325,049 342,466 Shares used to compute diluted earnings (loss) per common share 59,064,164 60,111,602 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.89 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 0.95 $ 0.88 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.88 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 0.94 $ 0.87 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): March 31, December 31, Raw materials and construction materials $ 25,017 $ 23,924 Work in process 18,710 18,800 Inventories $ 43,727 $ 42,724 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): March 31, December 31, Revolving credit facility $ 25,000 $ 25,000 Term loan 281,013 284,810 Unamortized debt issuance costs (3,954 ) (4,251 ) Capitalized lease obligations 4,883 4,571 Other 16 20 Total debt 306,958 310,150 Less: current maturities 15,480 15,364 Total long-term debt $ 291,478 $ 294,786 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis | The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2018 and December 31, 2017 (in thousands): Assets at Fair Value as of March 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 352,443 $ — $ — $ 352,443 Restricted cash (2) 2,461 — — 2,461 Deferred compensation plan assets (3) 25,966 — — 25,966 Total $ 380,870 $ — $ — $ 380,870 Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 467,430 $ — $ — $ 467,430 Restricted cash (2) 1,958 — — 1,958 Deferred compensation plan assets (3) 22,054 — — 22,054 Total $ 491,442 $ — $ — $ 491,442 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At March 31, 2018 and December 31, 2017 , we had $178.0 million and $194.2 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts. (3) Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Pension Cost | The components of net periodic pension cost of the UK Plan for the three months ended March 31, 2018 and 2017 were as follows (in thousands): For the three months ended March 31, 2018 2017 Interest cost $ 2,099 $ 2,045 Expected return on plan assets (3,581 ) (3,204 ) Amortization of unrecognized loss 682 698 Net periodic pension cost (income) $ (800 ) $ (461 ) |
Commitments and Contingencies R
Commitments and Contingencies Restructuring and Related Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The changes in restructuring activity by reportable segments during the three months ended March 31, 2018 and 2017 were as follows (in thousands): United States United States United States building services segment Total Balance at December 31, 2016 $ — $ 188 $ 13 $ 201 Charges — 62 503 565 Payments — (110 ) (420 ) (530 ) Balance at March 31, 2017 $ — $ 140 $ 96 $ 236 Balance at December 31, 2017 $ 452 $ — $ 40 $ 492 Charges — — 90 90 Payments (147 ) — (120 ) (267 ) Balance at March 31, 2018 $ 305 $ — $ 10 $ 315 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information About Industry Segments And Geographic Areas | The following tables present information about industry segments and geographic areas for the three months ended March 31, 2018 and 2017 (in thousands): For the three months ended March 31, 2018 2017 Revenues from unrelated entities: United States electrical construction and facilities services $ 454,752 $ 443,016 United States mechanical construction and facilities services 698,847 671,129 United States building services 454,752 440,030 United States industrial services 185,147 258,539 Total United States operations 1,793,498 1,812,714 United Kingdom building services 106,890 79,018 Total worldwide operations $ 1,900,388 $ 1,891,732 Total revenues: United States electrical construction and facilities services $ 457,169 $ 444,016 United States mechanical construction and facilities services 705,880 679,391 United States building services 470,099 454,944 United States industrial services 185,720 258,905 Less intersegment revenues (25,370 ) (24,542 ) Total United States operations 1,793,498 1,812,714 United Kingdom building services 106,890 79,018 Total worldwide operations $ 1,900,388 $ 1,891,732 For the three months ended March 31, 2018 2017 Operating income (loss): United States electrical construction and facilities services $ 35,851 $ 31,034 United States mechanical construction and facilities services 39,572 40,433 United States building services 17,034 14,209 United States industrial services 3,469 17,044 Total United States operations 95,926 102,720 United Kingdom building services 4,570 1,679 Corporate administration (21,665 ) (21,060 ) Restructuring expenses (90 ) (565 ) Total worldwide operations 78,741 82,774 Other corporate items: Interest expense (2,996 ) (3,071 ) Interest income 544 257 Income from continuing operations before income taxes $ 76,289 $ 79,960 March 31, December 31, Total assets: United States electrical construction and facilities services $ 605,483 $ 617,471 United States mechanical construction and facilities services 1,058,495 1,097,240 United States building services 783,271 764,085 United States industrial services 776,659 772,899 Total United States operations 3,223,908 3,251,695 United Kingdom building services 157,380 131,806 Corporate administration 460,711 582,403 Total worldwide operations $ 3,841,999 $ 3,965,904 |
Revenue from Contracts with C34
Revenue from Contracts with Customers Revenue from Contracts with Customers (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue from Contract with Customer [Abstract] | |||
Performance obligation satisfied in previous period | $ 0 | $ 0 | |
Change in estimate of transaction price | 0 | 0 | |
Change in total estimated costs, measure of progress | 0 | 0 | |
Loss on contracts | 0 | $ 0 | |
Change in net contract liabilities | 46,700,000 | ||
Contract asset impairment | 0 | ||
Remaining performance obligations | 3,603,743,000 | ||
Cumulative effect on retained earnings, net of tax | [1] | $ 854,000 | |
[1] | Represents adjustment to retained earnings upon the adoption of Accounting Standards Codification Topic 606. |
Revenue from Contracts with C35
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 1,900,388 | |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 1,793,498 | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 454,752 | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 698,847 | |
United States Building Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 454,752 | |
United States Industrial Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 185,147 | |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 106,890 | |
Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 455,782 | |
Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | 702,072 | |
Intersegment Eliminations [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | (1,030) | |
Intersegment Eliminations [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | (3,225) | |
Commercial Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 184,382 | |
Percent of total segment | 40.00% | |
Commercial Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 231,851 | |
Percent of total segment | 33.00% | |
Institutional Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 28,008 | |
Percent of total segment | 6.00% | |
Institutional Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 65,627 | |
Percent of total segment | 9.00% | |
Hospitality Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 5,516 | |
Percent of total segment | 1.00% | |
Hospitality Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 26,527 | |
Percent of total segment | 4.00% | |
Manufacturing Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 85,794 | |
Percent of total segment | 19.00% | |
Manufacturing Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 99,876 | |
Percent of total segment | 14.00% | |
Healthcare Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 38,507 | |
Percent of total segment | 8.00% | |
Healthcare Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 66,114 | |
Percent of total segment | 10.00% | |
Transportation Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 71,264 | |
Percent of total segment | 16.00% | |
Transportation Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 5,206 | |
Percent of total segment | 1.00% | |
Water and Wastewater Market Sector [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 4,613 | |
Percent of total segment | 1.00% | |
Water and Wastewater Market Sector [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 36,751 | |
Percent of total segment | 5.00% | |
Short Duration Projects [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 29,530 | [1] |
Percent of total segment | 7.00% | |
Short Duration Projects [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 83,895 | [1] |
Percent of total segment | 12.00% | |
Service Work [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 8,168 | |
Percent of total segment | 2.00% | |
Service Work [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 86,225 | |
Percent of total segment | 12.00% | |
Service Work [Member] | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 55,275 | |
Percent of total segment | 52.00% | |
Commercial Site-Based Services [Member] | United States Building Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 146,761 | |
Percent of total segment | 32.00% | |
Government Site-Based Services [Member] | United States Building Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 55,409 | |
Percent of total segment | 12.00% | |
Mechanical Services [Member] | United States Building Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 227,342 | |
Percent of total segment | 50.00% | |
Energy Services [Member] | United States Building Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 25,240 | |
Percent of total segment | 6.00% | |
Field Services [Member] | United States Industrial Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 148,090 | |
Percent of total segment | 80.00% | |
Shop Services [Member] | United States Industrial Services [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 37,057 | |
Percent of total segment | 20.00% | |
Projects & Extras [Member] | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, disaggregation | $ 51,615 | |
Percent of total segment | 48.00% | |
[1] | Represents those projects which generally are completed within three months or less. |
Revenue from Contracts with C36
Revenue from Contracts with Customers - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customers [Abstract] | |||
Contract assets, current | $ 158,895 | $ 122,621 | |
Contract assets, non-current | 0 | 0 | |
Contract liabilities, current | (556,306) | (524,156) | |
Contract liabilities, non-current | (4,785) | 0 | |
Deferred revenue (1) | [1] | 0 | (47,328) |
Net contract liabilities | $ (402,196) | $ (448,863) | |
[1] | Represents deferred revenue on service contracts, which was included in “Accrued expenses and other” and “Other long-term liabilities” in the Condensed Consolidated Balance Sheet as of December 31 2017. For the periods after December 31, 2017, these amounts are included within “Contract liabilities”. |
Revenue from Contracts with C37
Revenue from Contracts with Customers - Schedule of Revenue, Remaining Performance Obligation (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 3,603,743 |
Remaining performance obligations, percent | 100.00% |
UNITED STATES | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 3,444,838 |
Remaining performance obligations, percent | 96.00% |
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,133,811 |
Remaining performance obligations, percent | 31.00% |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,822,381 |
Remaining performance obligations, percent | 51.00% |
UNITED STATES | United States Building Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 424,196 |
Remaining performance obligations, percent | 12.00% |
UNITED STATES | United States Industrial Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 64,450 |
Remaining performance obligations, percent | 2.00% |
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 158,905 |
Remaining performance obligations, percent | 4.00% |
Revenue from Contracts with C38
Revenue from Contracts with Customers - Schedule of Revenue. Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,603,743 |
UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 3,444,838 |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,133,811 |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,822,381 |
United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 424,196 |
United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 64,450 |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 158,905 |
Within One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 2,931,668 |
Within One Year | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 2,833,565 |
Within One Year | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 932,331 |
Within One Year | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,434,719 |
Within One Year | United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 402,065 |
Within One Year | United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 64,450 |
Within One Year | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 98,103 |
Greater Than One Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 672,075 |
Greater Than One Year | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 611,273 |
Greater Than One Year | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 201,480 |
Greater Than One Year | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 387,662 |
Greater Than One Year | United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 22,131 |
Greater Than One Year | United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 0 |
Greater Than One Year | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 60,802 |
Revenue from Contracts with C39
Revenue from Contracts with Customers - Schedule of Condensed Balance Sheet and Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | ||||
Cash and cash equivalents | $ 352,443 | $ 467,430 | ||
Accounts receivable | 1,572,919 | 1,607,922 | ||
Contract assets | 158,895 | 122,621 | ||
Inventories | 43,727 | 42,724 | ||
Prepaid expenses and other | 41,793 | 43,812 | ||
Total current assets | 2,169,777 | 2,284,509 | ||
Investments, notes and other long-term receivables | 3,680 | 2,309 | ||
Property, plant and equipment, net | 124,797 | 127,156 | ||
Goodwill | 965,046 | 964,893 | ||
Identifiable intangible assets, net | 484,368 | 495,036 | ||
Other assets | 94,331 | 92,001 | ||
Total assets | 3,841,999 | 3,965,904 | ||
Current liabilities: | ||||
Current maturities of long-term debt and capital lease obligations | 15,480 | 15,364 | ||
Accounts payable | 487,333 | 567,840 | ||
Contract liabilities | 556,306 | 524,156 | ||
Accrued payroll and benefits | 259,875 | 322,865 | ||
Other accrued expenses and liabilities | 193,303 | 220,727 | ||
Total current liabilities | 1,512,297 | 1,650,952 | ||
Borrowings under revolving credit facility | 25,000 | 25,000 | ||
Long-term debt and capital lease obligations | 266,478 | 269,786 | ||
Other long-term obligations | 346,558 | 346,049 | ||
Total liabilities | 2,150,333 | 2,291,787 | ||
Total equity | 1,691,666 | $ 1,534,141 | 1,674,117 | $ 1,537,942 |
Total liabilities and equity | 3,841,999 | $ 3,965,904 | ||
Income Statement [Abstract] | ||||
Revenues | 1,900,388 | 1,891,732 | ||
Cost of sales | 1,631,269 | 1,625,392 | ||
Gross profit | 269,119 | 266,340 | ||
Selling, general and administrative expenses | 190,288 | 183,001 | ||
Restructuring expenses | 90 | 565 | ||
Operating income | 78,741 | 82,774 | ||
Interest expense | (2,996) | (3,071) | ||
Interest income | 544 | 257 | ||
Income from continuing operations before income taxes | 76,289 | 79,960 | ||
Income tax provision | 20,633 | 26,846 | ||
Income from continuing operations | 55,656 | 53,114 | ||
Loss from discontinued operation, net of income taxes | (282) | (504) | ||
Net income including noncontrolling interests | 55,374 | 52,610 | ||
Less: Net loss attributable to noncontrolling interests | 0 | 30 | ||
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 55,374 | $ 52,640 | ||
Basic earnings per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.95 | $ 0.89 | ||
Diluted earnings per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.94 | $ 0.88 | ||
Pro Forma [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | $ 352,443 | |||
Accounts receivable | 1,568,739 | |||
Contract assets | 159,053 | |||
Inventories | 47,872 | |||
Prepaid expenses and other | 40,874 | |||
Total current assets | 2,168,981 | |||
Investments, notes and other long-term receivables | 3,680 | |||
Property, plant and equipment, net | 124,797 | |||
Goodwill | 965,046 | |||
Identifiable intangible assets, net | 484,368 | |||
Other assets | 94,331 | |||
Total assets | 3,841,203 | |||
Current liabilities: | ||||
Current maturities of long-term debt and capital lease obligations | 15,480 | |||
Accounts payable | 487,333 | |||
Contract liabilities | 503,418 | |||
Accrued payroll and benefits | 259,875 | |||
Other accrued expenses and liabilities | 246,425 | |||
Total current liabilities | 1,512,531 | |||
Borrowings under revolving credit facility | 25,000 | |||
Long-term debt and capital lease obligations | 266,478 | |||
Other long-term obligations | 345,667 | |||
Total liabilities | 2,149,676 | |||
Total equity | 1,691,527 | |||
Total liabilities and equity | 3,841,203 | |||
Income Statement [Abstract] | ||||
Revenues | 1,899,490 | |||
Cost of sales | 1,631,732 | |||
Gross profit | 267,758 | |||
Selling, general and administrative expenses | 190,288 | |||
Restructuring expenses | 90 | |||
Operating income | 77,380 | |||
Interest expense | (2,996) | |||
Interest income | 544 | |||
Income from continuing operations before income taxes | 74,928 | |||
Income tax provision | 20,265 | |||
Income from continuing operations | 54,663 | |||
Loss from discontinued operation, net of income taxes | (282) | |||
Net income including noncontrolling interests | 54,381 | |||
Less: Net loss attributable to noncontrolling interests | 0 | |||
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 54,381 | |||
Basic earnings per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.93 | |||
Diluted earnings per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.93 |
Acquisitions Of Businesses (Det
Acquisitions Of Businesses (Details) $ in Thousands | Nov. 01, 2017Company | Mar. 01, 2017USD ($)Company | Jan. 04, 2017Company | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 965,046 | $ 964,893 | |||
Number of businesses acquired | Company | 1 | 1 | 1 | ||
2017 Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 109,300 | ||||
Working capital acquired | 9,600 | ||||
Other net assets | 2,300 | ||||
Goodwill | 40,800 | ||||
Identifiable intangible assets | $ 56,600 |
Disposition of Assets (Narrativ
Disposition of Assets (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
Loss from discontinued operation, net of income taxes | $ (282) | $ (504) | ||
From discontinued operation (in US dollars per share) | $ 0 | $ (0.01) | ||
Restructuring reserve | $ 315 | $ 236 | $ 492 | $ 201 |
UNITED KINGDOM | Discontinued Operations [Member] | United Kingdom Construction [Member] | ||||
Income Statement [Abstract] | ||||
Revenues | 0 | 0 | ||
Loss from discontinued operation, net of income taxes | $ (282) | $ (504) | ||
From discontinued operation (in US dollars per share) | $ 0 | $ (0.01) | ||
Assets of discontinued operation: | ||||
Current assets | $ 151 | 242 | ||
Liabilities of discontinued operation: | ||||
Current liabilities | 2,672 | $ 2,811 | ||
Employee Severance [Member] | UNITED KINGDOM | Discontinued Operations [Member] | United Kingdom Construction [Member] | ||||
Income Statement [Abstract] | ||||
Restructuring reserve | $ 100 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator | ||
Income from continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars) | $ 55,656 | $ 53,144 |
Loss from discontinued operation, net of income taxes (in US dollars) | (282) | (504) |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 55,374 | $ 52,640 |
Denominator | ||
Weighted average shares outstanding used to compute basic earnings (loss) per common share (in shares) | 58,739,115 | 59,769,136 |
Effect of dilutive securities-Share-based awards (in shares) | 325,049 | 342,466 |
Shares used to compute diluted earnings (loss) per common share (in shares) | 59,064,164 | 60,111,602 |
Basic earnings (loss) per common share: | ||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.95 | $ 0.89 |
From discontinued operation (in US dollars per share) | 0 | (0.01) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 0.95 | 0.88 |
Diluted earnings (loss) per common share: | ||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 0.94 | 0.88 |
From discontinued operation (in US dollars per share) | 0 | (0.01) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 0.94 | $ 0.87 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive share-based awards excluded from calculation of diluted earnings per share (in shares) | 20,675 | 500 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 25,017 | $ 23,924 |
Work in process | 18,710 | 18,800 |
Inventories | $ 43,727 | $ 42,724 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 03, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 30, 2016 | Aug. 02, 2016 |
Line of Credit Facility [Line Items] | ||||||||
Interest rate description | Borrowings under the 2016 Credit Agreement bear interest at (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (2.30% at March 31, 2018) plus 1.00% to 1.75%, based on certain financial tests. The base rate is determined by the greater of (a) the prime commercial lending rate announced by Bank of Montreal from time to time (4.75% at March 31, 2018), (b) the federal funds effective rate, plus ½ of 1.00%, (c) the daily one month LIBOR rate, plus 1.00%, or (d) 0.00%. The interest rate in effect at March 31, 2018 was 3.30%. Fees for letters of credit issued under the 2016 Revolving Credit Facility range from 1.00% to 1.75% of the respective face amounts of outstanding letters of credit and are computed based on certain financial tests. | |||||||
Repayments of long-term debt (in US dollars) | $ 3,800,000 | $ 3,800,000 | ||||||
Letters of credit outstanding (in US dollars) | 109,900,000 | $ 110,100,000 | ||||||
Borrowings under revolving credit facility (in US dollars) | 25,000,000 | 25,000,000 | ||||||
2016 Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term Loan (in US dollars) | $ 400,000,000 | $ 281,013,000 | 284,810,000 | |||||
Periodic principal payment on term loan (in US dollars) | $ 3,800,000 | $ 5,000,000 | $ 5,000,000 | |||||
Term loan, annual principal payments (in US dollars) | $ 100,000,000 | |||||||
Repayments of long-term debt (in US dollars) | $ 95,000,000 | |||||||
2013 Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term Loan (in US dollars) | $ 350,000,000 | |||||||
2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, initiation date | Aug. 3, 2016 | |||||||
Expiration date of credit agreement | Aug. 3, 2021 | |||||||
Interest rate | 3.30% | |||||||
2016 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowings under revolving credit facility (in US dollars) | $ 25,000,000 | $ 25,000,000 | ||||||
Base Rate [Member] | Minimum [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Base Rate [Member] | Maximum [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.75% | |||||||
Prime Rate, Bank of Montreal [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commercial lending rate | 4.75% | |||||||
Credit Agreement Base Rate, Daily One Month LIBOR Rate [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commercial lending rate | 2.30% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Credit Agreement Base Rate, Federal Funds Rate [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Credit Agreement, 0% Base Rate [Member] | 2016 Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Revolving Credit Facility [Member] | 2013 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 750,000,000 | |||||||
Revolving Credit Facility [Member] | 2016 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 900,000,000 | |||||||
Increase in borrowing capacity (in US dollars) | $ 1,300,000,000 | |||||||
Letters of credit maximum borrowing capacity (in US dollars) | $ 300,000,000 | |||||||
Commitment fee percentage of unused amount | 0.15% | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | 2016 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage of unused amount | 0.15% | |||||||
Letter of credit fees | 1.00% | |||||||
Revolving Credit Facility [Member] | Maximum [Member] | 2016 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage of unused amount | 0.30% | |||||||
Letter of credit fees | 1.75% |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Aug. 03, 2016 |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 25,000,000 | $ 25,000,000 | |
Unamortized debt issuance costs | (3,954,000) | (4,251,000) | |
Capitalized lease obligations | 4,883,000 | 4,571,000 | |
Other | 16,000 | 20,000 | |
Total debt | 306,958,000 | 310,150,000 | |
Less: current maturities | 15,480,000 | 15,364,000 | |
Total long-term debt | 291,478,000 | 294,786,000 | |
2016 Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan | $ 281,013,000 | $ 284,810,000 | $ 400,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash | $ 2,500 | $ 2,000 | $ 3,300 | $ 2,000 | |
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 352,443 | 467,430 | ||
Restricted cash | [2] | 2,461 | 1,958 | ||
Deferred compensation plan assets | [3] | 25,966 | 22,054 | ||
Total | 380,870 | 491,442 | |||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 352,443 | 467,430 | ||
Restricted cash | [2] | 2,461 | 1,958 | ||
Deferred compensation plan assets | [3] | 25,966 | 22,054 | ||
Total | 380,870 | 491,442 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
Restricted cash | [2] | 0 | 0 | ||
Deferred compensation plan assets | [3] | 0 | 0 | ||
Total | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
Restricted cash | [2] | 0 | 0 | ||
Deferred compensation plan assets | [3] | 0 | 0 | ||
Total | 0 | 0 | |||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 178,000 | $ 194,200 | |||
[1] | Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At March 31, 2018 and December 31, 2017, we had $178.0 million and $194.2 million, respectively, in money market funds. | ||||
[2] | Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts. | ||||
[3] | Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Federal tax rate, percent | 21.00% | 35.00% | |
Income tax benefit from the Tax Act | $ 39,300 | ||
Income tax provision | $ 20,633 | $ 26,846 | |
Effective income tax rates | 27.60% | 37.80% | |
Actual income tax rates | 27.00% | 33.60% | |
Unrecognized income tax benefits | $ 800 | 800 | |
Accrued interest expense related to unrecognized income tax benefits | 100 | 100 | |
Interest income related to unrecognized income tax benefits | $ 400 | ||
Interest expense related to unrecognized income tax benefits | 100 | ||
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | $ 3,300 | ||
Other Long-term Liabilities [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax reserves | $ 900 | $ 900 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 78 Months Ended | |||||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Oct. 25, 2017 | Oct. 28, 2015 | Oct. 23, 2014 | Dec. 05, 2013 | Sep. 26, 2011 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock, outstanding | 58,450,685 | 58,450,685 | 58,798,428 | ||||||
Common stock, issued | 98,153 | 117,034 | |||||||
Stock repurchased (in US dollars) | $ 34,485,000 | $ 53,307,000 | |||||||
Common Stock [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Number of shares repurchased | 13,300,000 | ||||||||
Stock repurchased (in US dollars) | 0 | $ 8,000 | $ 609,700,000 | ||||||
Remaining authorized repurchase amount (in US dollars) | $ 140,300,000 | $ 140,300,000 | |||||||
Common Stock [Member] | RepurchaseProgramSep262011 | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 | ||||||||
Common Stock [Member] | RepurchaseProgramDec052013 | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 | ||||||||
Common Stock [Member] | RepurchaseProgramOct232014 | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase, authorized amount (in US dollars) | $ 250,000,000 | ||||||||
Common Stock [Member] | RepurchaseProgramOct282015 | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase, authorized amount (in US dollars) | $ 200,000,000 | ||||||||
Number of shares repurchased | 445,896 | ||||||||
Stock repurchased (in US dollars) | $ 34,500,000 | ||||||||
Common Stock [Member] | RepurchaseProgramOct252017 | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution of U.K. subsidiary to its defined benefit pension plan | $ 1.1 |
Anticipated additional contribution | $ 3.9 |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Pension Benefit Cost) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 2,099 | $ 2,045 |
Expected return on plan assets | (3,581) | (3,204) |
Amortization of unrecognized loss | 682 | 698 |
Net periodic pension cost (income) | $ (800) | $ (461) |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||||
Restructuring expenses | $ 90 | $ 565 | ||
Restructuring reserve | 315 | 236 | $ 492 | $ 201 |
Employee Severance [Member] | ||||
Loss Contingencies [Line Items] | ||||
Restructuring expenses | $ 90 | $ 565 |
Schedule of Restructuring Activ
Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 315 | $ 236 | $ 492 | $ 201 |
Restructuring expenses | 90 | 565 | ||
Payments for restructuring | (267) | (530) | ||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 90 | 565 | ||
UNITED STATES | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 305 | 0 | 452 | 0 |
Restructuring expenses | 0 | 0 | ||
Payments for restructuring | (147) | 0 | ||
UNITED STATES | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 0 | 140 | 0 | 188 |
Restructuring expenses | 0 | 62 | ||
Payments for restructuring | 0 | (110) | ||
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 10 | 96 | $ 40 | $ 13 |
Restructuring expenses | 90 | 503 | ||
Payments for restructuring | $ (120) | $ (420) |
Segment Information (Informatio
Segment Information (Information About Industry Segments And Geographic Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | $ 1,900,388 | $ 1,891,732 | |
Total revenues | 1,900,388 | 1,891,732 | |
Operating income (loss) | 78,741 | 82,774 | |
Restructuring expenses | (90) | (565) | |
Interest expense | (2,996) | (3,071) | |
Interest income | 544 | 257 | |
Income from continuing operations before income taxes | 76,289 | 79,960 | |
Total assets | 3,841,999 | $ 3,965,904 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (25,370) | (24,542) | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (21,665) | (21,060) | |
Total assets | 460,711 | 582,403 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 1,793,498 | 1,812,714 | |
Total revenues | 1,793,498 | 1,812,714 | |
Operating income (loss) | 95,926 | 102,720 | |
Total assets | 3,223,908 | 3,251,695 | |
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 454,752 | 443,016 | |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 698,847 | 671,129 | |
UNITED STATES | United States Building Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 454,752 | 440,030 | |
UNITED STATES | United States Industrial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 185,147 | 258,539 | |
UNITED STATES | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 457,169 | 444,016 | |
Operating income (loss) | 35,851 | 31,034 | |
Restructuring expenses | 0 | 0 | |
Total assets | 605,483 | 617,471 | |
UNITED STATES | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 705,880 | 679,391 | |
Operating income (loss) | 39,572 | 40,433 | |
Restructuring expenses | 0 | (62) | |
Total assets | 1,058,495 | 1,097,240 | |
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 470,099 | 454,944 | |
Operating income (loss) | 17,034 | 14,209 | |
Restructuring expenses | (90) | (503) | |
Total assets | 783,271 | 764,085 | |
UNITED STATES | Operating Segments [Member] | United States Industrial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 185,720 | 258,905 | |
Operating income (loss) | 3,469 | 17,044 | |
Total assets | 776,659 | 772,899 | |
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 106,890 | 79,018 | |
UNITED KINGDOM | Operating Segments [Member] | United Kingdom Building Services [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 106,890 | 79,018 | |
Operating income (loss) | 4,570 | $ 1,679 | |
Total assets | $ 157,380 | $ 131,806 |