Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-8267 | |
Entity Registrant Name | EMCOR Group, Inc. | |
Entity Central Index Key | 0000105634 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-2125338 | |
Entity Address, Address Line One | 301 Merritt Seven | |
Entity Address, City or Town | Norwalk, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06851-1092 | |
City Area Code | (203) | |
Local Phone Number | 849-7800 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | EME | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,153,125 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 368,073 | $ 363,907 |
Accounts receivable, less allowance for doubtful accounts of $15,095 and $15,361, respectively | 1,926,765 | 1,773,620 |
Contract assets | 179,005 | 158,243 |
Inventories | 38,721 | 42,321 |
Prepaid expenses and other | 45,549 | 48,116 |
Total current assets | 2,558,113 | 2,386,207 |
Investments, notes and other long-term receivables | 1,478 | 2,899 |
Property, plant and equipment, net | 149,023 | 134,351 |
Operating lease right-of-use assets | 232,996 | 0 |
Goodwill | 1,019,590 | 990,887 |
Identifiable intangible assets, net | 482,785 | 488,286 |
Other assets | 88,736 | 86,177 |
Total assets | 4,532,721 | 4,088,807 |
Current liabilities: | ||
Current maturities of long-term debt and finance lease liabilities | 18,196 | 16,013 |
Accounts payable | 584,824 | 652,091 |
Contract liabilities | 565,957 | 552,290 |
Accrued payroll and benefits | 387,351 | 343,069 |
Other accrued expenses and liabilities | 185,414 | 170,935 |
Operating lease liabilities, current | 51,632 | 0 |
Total current liabilities | 1,793,374 | 1,734,398 |
Borrowings under revolving credit facility | 0 | 25,000 |
Long-term debt and finance lease liabilities | 247,837 | 254,764 |
Operating lease liabilities, long-term | 193,502 | 0 |
Other long-term obligations | 322,197 | 333,204 |
Total liabilities | 2,556,910 | 2,347,366 |
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, 60,287,296 and 60,123,184 shares issued, respectively | 603 | 601 |
Capital surplus | 30,786 | 21,103 |
Accumulated other comprehensive loss | (87,370) | (87,662) |
Retained earnings | 2,285,083 | 2,060,440 |
Treasury stock, at cost 4,139,421 shares | (253,937) | (253,937) |
Total EMCOR Group, Inc. stockholders' equity | 1,975,165 | 1,740,545 |
Noncontrolling interests | 646 | 896 |
Total equity | 1,975,811 | 1,741,441 |
Total liabilities and equity | $ 4,532,721 | $ 4,088,807 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in US dollars) | $ 15,095 | $ 15,361 |
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 | 60,287,296 | 60,123,184 |
Treasury stock, shares | 4,139,421 | 4,139,421 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,287,741 | $ 2,047,049 | $ 6,770,671 | $ 5,901,323 |
Cost of sales | 1,951,754 | 1,737,710 | 5,779,550 | 5,032,021 |
Gross profit | 335,987 | 309,339 | 991,121 | 869,302 |
Selling, general and administrative expenses | 220,119 | 197,334 | 652,536 | 578,266 |
Restructuring expenses | 119 | 229 | 567 | 693 |
Impairment loss on identifiable intangible assets | 0 | 0 | 0 | 907 |
Operating income | 115,749 | 111,776 | 338,018 | 289,436 |
Net periodic pension (cost) income | 381 | 615 | 1,187 | 2,069 |
Interest expense, net | (2,678) | (2,736) | (8,732) | (8,011) |
Income from continuing operations before income taxes | 113,452 | 109,655 | 330,473 | 283,494 |
Income tax provision | 31,618 | 29,711 | 92,257 | 76,873 |
Income from continuing operations | 81,834 | 79,944 | 238,216 | 206,621 |
Loss from discontinued operation, net of income taxes | 0 | (523) | 0 | (1,010) |
Net income including noncontrolling interests | 81,834 | 79,421 | 238,216 | 205,611 |
Less: Net income attributable to noncontrolling interests | 0 | (48) | 0 | (48) |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 81,834 | $ 79,373 | $ 238,216 | $ 205,563 |
Basic earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.46 | $ 1.37 | $ 4.24 | $ 3.54 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.46 | 1.36 | 4.24 | 3.52 |
Diluted earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.45 | 1.36 | 4.22 | 3.52 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.45 | 1.35 | 4.22 | 3.50 |
Dividends declared per common share (in US dollars per share) | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income including noncontrolling interests | $ 81,834 | $ 79,421 | $ 238,216 | $ 205,611 | |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation adjustments | (983) | (289) | (1,280) | (669) | |
Post retirement plans, amortization of actuarial loss included in net income (1) | [1] | 509 | 573 | 1,572 | 1,553 |
Other comprehensive (loss) income | (474) | 284 | 292 | 884 | |
Comprehensive income | 81,360 | 79,705 | 238,508 | 206,495 | |
Less: Comprehensive income attributable to noncontrolling interests | 0 | (48) | 0 | (48) | |
Comprehensive income attributable to EMCOR Group, Inc. | $ 81,360 | $ 79,657 | $ 238,508 | $ 206,447 | |
[1] | Net of tax of $0.1 million for each of the three months ended September 30, 2019 and 2018 , and net of tax of $0.4 million and $0.7 million for the nine months ended September 30, 2019 and 2018 , respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Post retirement plans, amortization of actuarial loss included in net income, tax | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash flows - operating activities: | |||
Net income including noncontrolling interests | $ 238,216 | $ 205,611 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,412 | 28,685 | |
Amortization of identifiable intangible assets | 34,500 | 31,482 | |
Provision for doubtful accounts | 1,621 | 261 | |
Deferred income taxes | (913) | 4,685 | |
Excess tax benefits from share-based compensation | (601) | (1,065) | |
Equity loss (income) from unconsolidated entities | 1,213 | (247) | |
Non-cash expense from contingent consideration arrangements | 1,203 | 186 | |
Non-cash expense for impairment of identifiable intangible assets | 0 | 907 | |
Non-cash share-based compensation expense | 8,840 | 8,502 | |
Distributions from unconsolidated entities | 916 | 2,442 | |
Other reconciling items | 364 | 446 | |
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (140,850) | (216,003) | |
Net cash provided by operating activities | 176,921 | 65,892 | |
Cash flows - investing activities: | |||
Payments for acquisitions of businesses, net of cash acquired | (79,984) | (25,710) | |
Proceeds from sale of property, plant and equipment | 1,612 | 915 | |
Purchase of property, plant and equipment | (35,829) | (28,674) | |
Investments in and advances to unconsolidated entities | (794) | (3,484) | |
Distributions from unconsolidated entities | 38 | 82 | |
Net cash used in investing activities | (114,957) | (56,871) | |
Cash flows - financing activities: | |||
Repayments of revolving credit facility | (25,000) | 0 | |
Repayments of long-term debt and debt issuance costs | (11,400) | (11,434) | |
Repayments of finance lease liabilities | (3,357) | (1,050) | |
Dividends paid to stockholders | (13,458) | (14,036) | |
Repurchase of common stock | 0 | (90,804) | |
Taxes paid related to net share settlements of equity awards | (3,771) | (3,745) | |
Issuance of common stock under employee stock purchase plan | 4,501 | 4,286 | |
Payments for contingent consideration arrangements | (3,589) | (3,300) | |
Distributions to noncontrolling interests | (250) | 0 | |
Net cash used in financing activities | (56,324) | (120,083) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,047) | (1,985) | |
Increase (decrease) in cash, cash equivalents and restricted cash | 3,593 | (113,047) | |
Cash, cash equivalents and restricted cash at beginning of year (1) | [1] | 366,214 | 469,388 |
Cash, cash equivalents and restricted cash at end of period (2) | [2] | 369,807 | 356,341 |
Cash paid for: | |||
Interest | 9,891 | 9,078 | |
Income taxes | $ 94,514 | $ 95,330 | |
[1] | Includes $2.3 million and $2.0 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2018 and 2017, respectively. | ||
[2] | Includes $1.7 million and $2.4 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of September 30, 2019 and 2018, respectively. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 1.7 | $ 2.3 | $ 2.4 | $ 2 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | [1] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | |
Balance at Dec. 31, 2017 | $ 1,674,117 | $ 599 | $ 8,005 | $ (94,200) | $ 1,796,556 | $ (37,693) | $ 850 | ||
Net income including noncontrolling interests | 205,611 | 205,563 | 48 | ||||||
Other comprehensive (loss) income | 884 | 884 | |||||||
Cumulative-effect adjustment | [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 | (3,745) | (3,745) | |||||||
Common stock issued under employee stock purchase plan | 4,286 | 1 | 4,285 | ||||||
Common stock dividends | (14,036) | (14,152) | |||||||
Common stock dividends, accrued dividend shares | 116 | ||||||||
Repurchase of common stock | (95,639) | 95,639 | |||||||
Share-based compensation expense | 8,502 | 8,502 | |||||||
Balance at Sep. 30, 2018 | 1,779,126 | 601 | 17,162 | (93,316) | 1,987,113 | (133,332) | 898 | ||
Balance at Jun. 30, 2018 | 1,735,133 | 600 | 13,054 | (93,600) | 1,912,430 | (98,201) | 850 | ||
Net income including noncontrolling interests | 79,421 | 79,373 | 48 | ||||||
Other comprehensive (loss) income | 284 | 284 | |||||||
Common stock issued under employee stock purchase plan | 1,528 | 1 | 1,527 | ||||||
Common stock dividends | (4,655) | (4,690) | |||||||
Common stock dividends, accrued dividend shares | 35 | ||||||||
Repurchase of common stock | (35,131) | (35,131) | |||||||
Share-based compensation expense | 2,546 | 2,546 | |||||||
Balance at Sep. 30, 2018 | 1,779,126 | 601 | 17,162 | (93,316) | 1,987,113 | (133,332) | 898 | ||
Balance at Dec. 31, 2018 | 1,741,441 | 601 | 21,103 | (87,662) | 2,060,440 | (253,937) | 896 | ||
Net income including noncontrolling interests | 238,216 | 238,216 | 0 | ||||||
Other comprehensive (loss) income | 292 | 292 | |||||||
Common stock issued under share-based compensation plans | 0 | 2 | (2) | ||||||
Tax withholding for common stock issued under share-based compensation plans | (3,771) | (3,771) | |||||||
Common stock issued under employee stock purchase plan | 4,501 | 4,501 | |||||||
Common stock dividends | (13,458) | (13,573) | |||||||
Common stock dividends, accrued dividend shares | 115 | ||||||||
Distributions to noncontrolling interests | (250) | (250) | |||||||
Share-based compensation expense | 8,840 | 8,840 | |||||||
Balance at Sep. 30, 2019 | 1,975,811 | 603 | 30,786 | (87,370) | 2,285,083 | (253,937) | 646 | ||
Balance at Jun. 30, 2019 | 1,894,831 | 603 | 26,640 | (86,896) | 2,207,775 | (253,937) | 646 | ||
Net income including noncontrolling interests | 81,834 | 81,834 | 0 | ||||||
Other comprehensive (loss) income | (474) | (474) | |||||||
Tax withholding for common stock issued under share-based compensation plans | (36) | (36) | |||||||
Common stock issued under employee stock purchase plan | 1,532 | 1,532 | |||||||
Common stock dividends | (4,491) | (4,526) | |||||||
Common stock dividends, accrued dividend shares | 35 | ||||||||
Share-based compensation expense | 2,615 | 2,615 | |||||||
Balance at Sep. 30, 2019 | $ 1,975,811 | $ 603 | $ 30,786 | $ (87,370) | $ 2,285,083 | $ (253,937) | $ 646 | ||
[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, “Revenue from Contracts with Customers.” |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited 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 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. Our reportable segments reflect certain reclassifications of prior year amounts from our United States mechanical construction and facilities services segment to our United States industrial services segment due to changes in our internal reporting structure. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2019, we adopted the accounting pronouncement issued by the Financial Accounting Standards Board (“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 continue to be recognized in a manner similar to previous accounting guidance. We adopted this pronouncement utilizing the transition practical expedient added by the FASB, which eliminated the requirement that entities apply the new lease standard to the comparative periods presented in the year of adoption. The adoption of this accounting pronouncement resulted in the recognition of operating lease right-of-use assets and associated lease liabilities on our balance sheet of $220.2 million and $227.1 million , respectively, as of January 1, 2019. Additional required disclosures have been included within Note 14 - Leases of the notes to consolidated financial statements. Such adoption did not have an impact on our liquidity, results of operations or our compliance with the various covenants contained within our 2016 Credit Agreement as described in further detail within Note 8 - Debt of the notes to consolidated financial statements. On January 1, 2019, we adopted the accounting pronouncement issued by the FASB related to the reporting of certain items in accumulated other comprehensive income (loss) (“AOCI”). This guidance provides entities the option to reclassify to retained earnings certain tax effects stranded in AOCI as a result of tax reform. As part of our adoption of this accounting pronouncement, we elected not to reclassify the stranded tax effects related to the retirement plans of our United States subsidiaries as such amounts are immaterial. Tax effects remaining in AOCI will be released upon liquidation of each individual retirement plan. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company recognizes 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 by applying the following five step model: (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 of 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 and nine months ended September 30, 2019 , there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. For the three and nine months ended September 30, 2018, we recognized revenue of $6.3 million associated with the final settlement of contract value for two projects which were completed in prior periods. In addition, for the three and nine months ended September 30, 2019 and 2018 , there were no significant reversals of revenue recognized associated with the revision of 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 as it is created or enhanced. 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 which occurs as we incur costs on our contracts. 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 for 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. For these performance obligations, we 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 which occurs as we incur costs on our contracts. 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 certain recognition criteria 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 and nine months ended September 30, 2019 , there were no changes in total estimated costs that had a significant impact on our operating results. During the three and nine months ended September 30, 2018, we recognized losses of $4.7 million and $5.5 million , respectively, related to a change in total estimated costs on a transportation project within our United States electrical construction and facilities services segment, resulting in part from contract scope issues. There were no significant losses recognized during the three and nine months ended September 30, 2019. 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 15 - Segment Information of the notes to 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 for the three and nine months ended September 30, 2019 and 2018 (in thousands): For the three months ended September 30, 2019 % of Total 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 260,871 47 % $ 196,293 40 % Institutional market sector 33,702 6 % 27,903 6 % Hospitality market sector 2,243 1 % 9,860 2 % Manufacturing market sector 121,488 22 % 100,563 20 % Healthcare market sector 24,701 4 % 28,121 6 % Transportation market sector 52,744 9 % 72,816 15 % Water and wastewater market sector 3,709 1 % 4,194 1 % Short duration projects (1) 42,296 7 % 38,452 8 % Service work 14,174 3 % 8,147 2 % 555,928 486,349 Less intersegment revenues (1,291 ) (375 ) Total segment revenues $ 554,637 $ 485,974 United States mechanical construction and facilities services: Commercial market sector $ 293,202 33 % $ 287,350 38 % Institutional market sector 94,886 11 % 77,676 10 % Hospitality market sector 6,888 1 % 26,170 3 % Manufacturing market sector 150,199 17 % 89,779 12 % Healthcare market sector 84,418 10 % 55,843 7 % Transportation market sector 7,855 1 % 3,072 1 % Water and wastewater market sector 42,637 5 % 43,033 6 % Short duration projects (1) 91,897 10 % 72,388 9 % Service work 100,196 12 % 107,168 14 % 872,178 762,479 Less intersegment revenues (2,990 ) (2,984 ) Total segment revenues $ 869,188 $ 759,495 ________ (1) Represents those projects which generally are completed within three months or less. For the three months ended September 30, 2019 % of 2018 % of United States building services: Commercial site-based services $ 133,179 25 % $ 120,917 26 % Government site-based services 42,412 8 % 52,332 11 % Mechanical services 333,696 63 % 276,722 58 % Energy services 22,835 4 % 23,730 5 % Total segment revenues $ 532,122 $ 473,701 United States industrial services: Field services $ 194,569 83 % $ 181,873 80 % Shop services 39,597 17 % 45,440 20 % Total segment revenues $ 234,166 $ 227,313 Total United States operations $ 2,190,113 $ 1,946,483 United Kingdom building services: Service work $ 49,098 50 % $ 51,815 52 % Projects & extras 48,530 50 % 48,751 48 % Total segment revenues $ 97,628 $ 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 For the nine months ended September 30, 2019 % of Total 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 816,602 49 % $ 579,958 41 % Institutional market sector 87,643 5 % 86,971 6 % Hospitality market sector 11,930 1 % 22,665 2 % Manufacturing market sector 338,448 20 % 280,375 20 % Healthcare market sector 63,725 4 % 103,307 7 % Transportation market sector 162,538 10 % 216,591 15 % Water and wastewater market sector 14,342 1 % 14,947 1 % Short duration projects (1) 124,152 8 % 93,177 6 % Service work 35,439 2 % 25,151 2 % 1,654,819 1,423,142 Less intersegment revenues (2,710 ) (2,874 ) Total segment revenues $ 1,652,109 $ 1,420,268 ________ (1) Represents those projects which generally are completed within three months or less. For the nine months ended September 30, 2019 % of 2018 % of United States mechanical construction and facilities services: Commercial market sector $ 874,512 36 % $ 780,629 36 % Institutional market sector 232,843 9 % 219,830 10 % Hospitality market sector 28,807 1 % 73,888 3 % Manufacturing market sector 386,853 16 % 271,133 13 % Healthcare market sector 220,445 9 % 181,669 8 % Transportation market sector 22,880 1 % 13,002 1 % Water and wastewater market sector 131,385 5 % 122,275 6 % Short duration projects (1) 273,001 11 % 223,200 10 % Service work 282,094 12 % 291,694 13 % 2,452,820 2,177,320 Less intersegment revenues (8,137 ) (9,193 ) Total segment revenues $ 2,444,683 $ 2,168,127 ________ (1) Represents those projects which generally are completed within three months or less. For the nine months ended September 30, 2019 % of 2018 % of United States building services: Commercial site-based services $ 420,078 27 % $ 386,721 28 % Government site-based services 133,990 8 % 162,888 12 % Mechanical services 920,684 59 % 764,313 55 % Energy services 93,147 6 % 75,564 5 % Total segment revenues $ 1,567,899 $ 1,389,486 United States industrial services: Field services $ 664,188 84 % $ 486,362 80 % Shop services 124,083 16 % 124,117 20 % Total segment revenues $ 788,271 $ 610,479 Total United States operations $ 6,452,962 $ 5,588,360 United Kingdom building services: Service work $ 160,561 51 % $ 162,088 52 % Projects & extras 157,148 49 % 150,875 48 % Total segment revenues $ 317,709 $ 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 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 revenues 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 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 Consolidated Balance Sheets. Contract liabilities from our long-term construction contracts arise 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 Consolidated Balance Sheets. Net contract liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Contract assets, current $ 179,005 $ 158,243 Contract assets, non-current — — Contract liabilities, current (565,957 ) (552,290 ) Contract liabilities, non-current (2,025 ) (2,069 ) Net contract liabilities $ (388,977 ) $ (396,116 ) The $7.1 million decrease in net contract liabilities for the nine months ended September 30, 2019 was primarily attributable to a decrease in net contract liabilities on our uncompleted long-term construction contracts, partially as a result of the timing of billings to our customers. Contract assets and contract liabilities increased by approximately $6.2 million and $13.0 million , respectively, as a result of acquisitions made by us in 2019. There was no significant impairment of contract assets recognized during either period presented. 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): September 30, 2019 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,095,254 27 % United States mechanical construction and facilities services 2,190,556 54 % United States building services 544,913 14 % United States industrial services 83,478 2 % Total United States operations 3,914,201 97 % United Kingdom building services 120,887 3 % Total worldwide operations $ 4,035,088 100 % Our remaining performance obligations at September 30, 2019 were $4.04 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 $ 999,218 $ 96,036 United States mechanical construction and facilities services 1,758,285 432,271 United States building services 534,628 10,285 United States industrial services 83,478 — Total United States operations 3,375,609 538,592 United Kingdom building services 80,841 40,046 Total worldwide operations $ 3,456,450 $ 578,638 |
Acquisitions Of Businesses
Acquisitions Of Businesses | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions Of Businesses | Acquisitions of Businesses Acquisitions are accounted for utilizing the acquisition method of accounting and the prices paid for them are allocated to their respective assets and liabilities based on the estimated fair value of such assets and liabilities at the dates of their respective acquisition by us. During the first nine months of 2019, we acquired five companies for total consideration of $83.6 million . One company provides electrical contracting services in central Iowa and its results have been included within our United States electrical construction and facilities services segment. Another company provides mechanical contracting services in south-central and eastern Texas and its results have been included within our United States mechanical construction and facilities services segment. The results of operations for the remaining three companies have been included within our United States building services segment. Of these three companies, one company provides mobile mechanical services in the Southern region of the United States while the remaining two companies provide building automation and controls solutions in the Western region of the United States. In connection with these acquisitions, we acquired working capital of $25.3 million and other net assets of $1.0 million and have preliminarily ascribed $28.3 million to goodwill and $29.0 million to identifiable intangible assets. During calendar year 2018, we acquired four companies for total consideration of $71.6 million . Two companies provide mobile mechanical services, one within the Eastern region and the other within the Western region of the United States. The third company is a full service provider of mechanical services within the Southern region of the United States. The results of these three companies have been included in our United States building services segment. The fourth company provides electrical construction and maintenance services for industrial and commercial buildings in north Texas, and its results have been included in our United States electrical construction and facilities services segment. In connection with these acquisitions, we acquired working capital of $8.7 million and have preliminarily ascribed $26.3 million to goodwill and $36.6 million to identifiable intangible assets. We expect that all of the goodwill acquired in connection with these acquisitions will be deductible for tax purposes. The purchase price allocations for the businesses acquired in 2019 and one of the businesses acquired in 2018 are preliminary and subject to change during their respective measurement periods. The purchase price allocations for the remaining three businesses acquired in 2018 have been finalized with an insignificant impact. |
Disposition of Assets
Disposition of Assets | 9 Months Ended |
Sep. 30, 2019 | |
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, 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 consolidated financial statements as discontinued operations. No income or expense was recognized from the discontinued operation for the three and nine months ended September 30, 2019 . The results of discontinued operations for the three and nine months ended September 30, 2018 were as follows (in thousands): For the three months ended September 30, 2018 For the nine months ended September 30, 2018 Revenues $ — $ — Loss from discontinued operation, net of income taxes $ (523 ) $ (1,010 ) Diluted loss per share from discontinued operation $ (0.01 ) $ (0.02 ) The loss from discontinued operations in 2018 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 Consolidated Balance Sheet at December 31, 2018 were approximately $3.7 million of current liabilities associated with the discontinued operation, primarily consisting of contract retentions, contract warranty obligations and other accrued expenses. No significant liabilities remain as of September 30, 2019 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share data): For the three months ended September 30, 2019 2018 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 81,834 $ 79,896 Loss from discontinued operation, net of income taxes — (523 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 81,834 $ 79,373 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 56,216,840 58,208,203 Effect of dilutive securities—Share-based awards 341,610 333,107 Shares used to compute diluted earnings (loss) per common share 56,558,450 58,541,310 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.46 $ 1.37 From discontinued operation — (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.46 $ 1.36 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.45 $ 1.36 From discontinued operation — (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.45 $ 1.35 For the nine months ended September 30, 2019 2018 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 238,216 $ 206,573 Loss from discontinued operation, net of income taxes — (1,010 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 238,216 $ 205,563 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 56,189,388 58,422,928 Effect of dilutive securities—Share-based awards 305,042 331,939 Shares used to compute diluted earnings (loss) per common share 56,494,430 58,754,867 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 4.24 $ 3.54 From discontinued operation — (0.02 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 4.24 $ 3.52 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 4.22 $ 3.52 From discontinued operation — (0.02 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 4.22 $ 3.50 There were no anti-dilutive share-based awards for the three and nine months ended September 30, 2019 and the three months ended September 30, 2018. The number of outstanding share-based awards that were excluded from the computation of diluted EPS for the nine months ended September 30, 2018 because they would be anti-dilutive were 550 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Raw materials and construction materials $ 29,829 $ 30,006 Work in process 8,892 12,315 Inventories $ 38,721 $ 42,321 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Revolving credit facility $ — $ 25,000 Term loan 258,228 269,620 Unamortized debt issuance costs (2,175 ) (3,065 ) Finance lease obligations (1) 9,980 4,213 Other — 9 Total debt 266,033 295,777 Less: current maturities 18,196 16,013 Total long-term debt $ 247,837 $ 279,764 ________ (1) See Note 14 - Leases for further disclosure regarding finance lease obligations. Credit Agreement We have a credit agreement dated as of August 3, 2016 , which provides 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 . 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 September 30, 2019 and December 31, 2018 . 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 September 30, 2019 . 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 ( 2.04% at September 30, 2019 ) 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 ( 5.00% at September 30, 2019 ), (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 September 30, 2019 was 3.04% . 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 September 30, 2019 and December 31, 2018 , the balance of the 2016 Term Loan was $258.2 million and $269.6 million , respectively. As of September 30, 2019 and December 31, 2018 , we had approximately $109.0 million of letters of credit outstanding. There were no borrowings outstanding under the 2016 Revolving Credit Facility as of September 30, 2019. There were $25.0 million in borrowings outstanding under the 2016 Revolving Credit Facility as of December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 (in thousands): Assets at Fair Value as of September 30, 2019 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 368,073 $ — $ — $ 368,073 Restricted cash (2) 1,734 — — 1,734 Deferred compensation plan assets (3) 27,937 — — 27,937 Total $ 397,744 $ — $ — $ 397,744 Assets at Fair Value as of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 363,907 $ — $ — $ 363,907 Restricted cash (2) 2,307 — — 2,307 Deferred compensation plan assets (3) 23,124 — — 23,124 Total $ 389,338 $ — $ — $ 389,338 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2019 and December 31, 2018 , we had $176.6 million and $161.3 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the 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 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 | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2018, we finalized our accounting for the income tax effects of the Tax Cuts and Jobs Act (the “Tax Act”). We continue to monitor for potential future changes in certain state and local tax regulations resulting from the Tax Act which may have an impact on our consolidated income tax provision in future periods. For the three months ended September 30, 2019 and 2018 , our income tax provision from continuing operations was $31.6 million and $29.7 million , respectively, based on an effective income tax rate, before discrete items and less amounts attributable to noncontrolling interests, of 27.9% and 27.7% , respectively. The actual income tax rate on income from continuing operations, less amounts attributable to noncontrolling interests, for the three months ended September 30, 2019 and 2018 , inclusive of discrete items, was 27.9% and 27.1% , respectively. For the nine months ended September 30, 2019 and 2018 , our income tax provision from continuing operations was $92.3 million and $76.9 million , respectively, based on an effective income tax rate, before discrete items and less amounts attributable to noncontrolling interests, of 28.1% and 27.7% , respectively. The actual income tax rate on income from continuing operations, less amounts attributable to noncontrolling interests, for the nine months ended September 30, 2019 and 2018 , inclusive of discrete items, was 27.9% and 27.1% , respectively. The actual income tax rates differed from the statutory tax rate due to state and local income taxes and other permanent book to tax differences. The increase in the 2019 income tax provision was primarily due to increased income from continuing operations. The increase in the actual income tax rate on income from continuing operations for both the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018, was primarily due to the continued application of the Tax Act, including the implementation of interpretative guidance issued regarding certain permanent differences and other non-deductible expenses. As of September 30, 2019 and December 31, 2018 , we had no unrecognized income tax benefits. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock As of September 30, 2019 and December 31, 2018 , there were 56,147,875 and 55,983,763 shares of our common stock outstanding, respectively. During the three months ended September 30, 2019 and 2018 , we issued 18,651 and 47,125 shares of common stock, respectively. During the nine months ended September 30, 2019 and 2018 , we issued 164,112 and 218,055 shares of common stock, respectively. These shares were issued 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. We have paid quarterly dividends since October 25, 2011. We currently pay a regular quarterly dividend of $0.08 per share. On September 26, 2011, our Board of Directors (the “Board”) authorized us to repurchase up to $100.0 million of our outstanding common stock. Subsequently, the Board has from time to time increased the amount of our common stock that we may repurchase. Since the inception of the repurchase program, the Board has authorized us to repurchase up to $950.0 million of our outstanding common stock. No shares of our common stock were repurchased during the nine months ended September 30, 2019 . Since the inception of the repurchase program through September 30, 2019 , we have repurchased approximately 15.9 million shares of our common stock for approximately $791.5 million . As of September 30, 2019 , there remained authorization for us to repurchase approximately $158.5 million of our shares. The repurchase program has no expiration date, does 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 program has been and will be funded from our operations. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
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. We also sponsor three domestic retirement plans in which participation by new individuals is frozen. Components of Net Periodic Pension Cost The components of net periodic pension cost (income) of the UK Plan for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Interest cost $ 1,925 $ 1,959 $ 5,968 $ 6,103 Expected return on plan assets (2,941 ) (3,344 ) (9,121 ) (10,415 ) Amortization of unrecognized loss 566 638 1,756 1,985 Net periodic pension cost (income) $ (450 ) $ (747 ) $ (1,397 ) $ (2,327 ) The net periodic pension cost associated with the domestic plans was approximately $0.1 million for each of the three months ended September 30, 2019 and 2018 and $0.2 million for each of the nine months ended September 30, 2019 and 2018 . Employer Contributions For the nine months ended September 30, 2019 , our United Kingdom subsidiary contributed approximately $3.1 million to the UK Plan and anticipates contributing an additional $1.2 million during the remainder of 2019. Contributions to the domestic plans were approximately $0.2 million for the nine months ended September 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 Proceedings We are involved in several legal 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 $0.1 million and $0.6 million for the three and nine months ended September 30, 2019 , respectively, and $0.2 million and $0.7 million for the three and nine months ended September 30, 2018 , respectively. As of September 30, 2019 , the balance of restructuring obligations yet to be paid was $0.7 million . Such remaining amounts will be paid pursuant to our contractual obligations throughout 2020 and 2021. No material expenses in connection with restructuring from continuing operations are expected to be incurred during the remainder of 2019. The changes in restructuring activity by reportable segment during the nine months ended September 30, 2019 and 2018 were as follows (in thousands): United States United States building services segment Corporate administration Total Balance at December 31, 2017 $ 452 $ 40 $ — $ 492 Charges — 693 — 693 Payments (330 ) (646 ) — (976 ) Balance at September 30, 2018 $ 122 $ 87 $ — $ 209 Balance at December 31, 2018 $ 30 $ 176 $ 1,424 $ 1,630 Charges — 567 — 567 Payments (30 ) (708 ) (723 ) (1,461 ) Balance at September 30, 2019 $ — $ 35 $ 701 $ 736 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, we adopted Accounting Standards Codification Topic 842, “Leases” (“ASC 842”). This pronouncement requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet for most leases. We adopted this pronouncement utilizing the transition practical expedient which eliminates the requirement that the new lease standard be applied to comparative periods presented in the year of adoption. As part of our adoption, we elected to utilize the package of practical expedients permitted under the new standard, which allowed us to not reassess: (a) whether an existing contract is or contains a lease, (b) the classification for existing leases and (c) initial direct costs. Further, as permitted by the standard, we made an accounting policy election not to record right-of-use assets or lease liabilities for leases with an initial term of 12 months or less. Instead, consistent with previous accounting guidance, we will recognize payments for such leases in the statement of operations on a straight-line basis over the lease term. We lease real estate, vehicles and equipment under various operating and finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset. Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements. Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. As permitted by ASC 842, we have elected to account for these non-lease components together with the associated lease component. This election has been made for each of our asset classes. The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis over a similar term. Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability. Lease Position as of September 30, 2019 The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheet as of September 30, 2019 (in thousands): Classification on the Consolidated Balance Sheet September 30, Assets Operating lease assets Operating lease right-of-use assets $ 232,996 Finance lease assets Property, plant and equipment, net 9,894 Total lease assets $ 242,890 Liabilities Current Operating Operating lease liabilities, current $ 51,632 Finance Current maturities of long-term debt and finance lease liabilities 4,192 Noncurrent Operating Operating lease liabilities, long-term 193,502 Finance Long-term debt and finance lease liabilities 5,788 Total lease liabilities $ 255,114 Lease Costs The following table presents information related to lease expense for the nine months ended September 30, 2019 (in thousands): For the nine months ended September 30, 2019 Finance lease expense: Amortization expense $ 3,396 Interest expense 325 Operating lease expense 49,408 Short-term lease expense 108,930 Variable lease expense 3,358 Total lease expense $ 165,417 Lease Term and Discount Rate The following table presents certain information related to lease terms and discount rates for leases as of September 30, 2019 : September 30, Weighted-average remaining lease term: Operating leases 6.6 years Finance leases 3.0 years Weighed-average discount rate: Operating leases 4.17 % Finance leases 4.16 % Other Information The following table presents supplemental cash flow information related to leases for the nine months ended September 30, 2019 (in thousands): For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 48,966 Operating cash flows used for finance leases $ 325 Financing cash flows used for finance leases $ 3,357 Right-of-use assets obtained in exchange for new operating lease liabilities $ 57,400 Right-of-use assets obtained in exchange for new finance lease liabilities $ 4,471 Maturity of Lease Liabilities The following table reconciles future minimum lease payments on an undiscounted cash flow basis to the lease liabilities reported in the Consolidated Balance Sheet as of September 30, 2019 (in thousands): Operating Leases Finance Leases October 1, 2019 to September 30, 2020 $ 60,630 $ 4,507 October 1, 2020 to September 30, 2021 49,507 3,077 October 1, 2021 to September 30, 2022 40,141 1,857 October 1, 2022 to September 30, 2023 33,471 838 October 1, 2023 to September 30, 2024 24,566 164 Thereafter 73,298 142 Total minimum lease payments 281,613 10,585 Less: Amount of lease payments representing interest (36,479 ) (605 ) Present value of future minimum lease payments $ 245,134 $ 9,980 Current portion of lease liabilities $ 51,632 $ 4,192 Noncurrent portion of lease liabilities 193,502 5,788 Present value of future minimum lease payments $ 245,134 $ 9,980 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments reflect certain reclassifications of prior year amounts from our United States mechanical construction and facilities services segment to our United States industrial services segment due to changes in our internal reporting structure. 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 processing, food processing 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 mechanical 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 and nine months ended September 30, 2019 and 2018 (in thousands): For the three months ended September 30, 2019 2018 Revenues from unrelated entities: United States electrical construction and facilities services $ 554,637 $ 485,974 United States mechanical construction and facilities services 869,188 759,495 United States building services 532,122 473,701 United States industrial services 234,166 227,313 Total United States operations 2,190,113 1,946,483 United Kingdom building services 97,628 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 Total revenues: United States electrical construction and facilities services $ 556,088 $ 486,642 United States mechanical construction and facilities services 877,571 770,617 United States building services 550,002 490,624 United States industrial services 247,258 227,487 Less intersegment revenues (40,806 ) (28,887 ) Total United States operations 2,190,113 1,946,483 United Kingdom building services 97,628 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 For the nine months ended September 30, 2019 2018 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,652,109 $ 1,420,268 United States mechanical construction and facilities services 2,444,683 2,168,127 United States building services 1,567,899 1,389,486 United States industrial services 788,271 610,479 Total United States operations 6,452,962 5,588,360 United Kingdom building services 317,709 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 Total revenues: United States electrical construction and facilities services $ 1,655,147 $ 1,425,190 United States mechanical construction and facilities services 2,465,287 2,195,951 United States building services 1,622,509 1,437,498 United States industrial services 809,510 611,947 Less intersegment revenues (99,491 ) (82,226 ) Total United States operations 6,452,962 5,588,360 United Kingdom building services 317,709 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 For the three months ended September 30, 2019 2018 Operating income (loss): United States electrical construction and facilities services $ 33,630 $ 34,473 United States mechanical construction and facilities services 61,213 59,236 United States building services 35,051 29,315 United States industrial services 5,561 7,637 Total United States operations 135,455 130,661 United Kingdom building services 4,754 4,457 Corporate administration (24,341 ) (23,113 ) Restructuring expenses (119 ) (229 ) Total worldwide operations 115,749 111,776 Other corporate items: Net periodic pension (cost) income 381 615 Interest expense, net (2,678 ) (2,736 ) Income from continuing operations before income taxes $ 113,452 $ 109,655 For the nine months ended September 30, 2019 2018 Operating income (loss): United States electrical construction and facilities services $ 120,380 $ 106,309 United States mechanical construction and facilities services 156,152 156,273 United States building services 90,535 68,822 United States industrial services 31,209 12,312 Total United States operations 398,276 343,716 United Kingdom building services 14,371 12,828 Corporate administration (74,062 ) (65,508 ) Restructuring expenses (567 ) (693 ) Impairment loss on identifiable intangible assets — (907 ) Total worldwide operations 338,018 289,436 Other corporate items: Net periodic pension (cost) income 1,187 2,069 Interest expense, net (8,732 ) (8,011 ) Income from continuing operations before income taxes $ 330,473 $ 283,494 September 30, December 31, Total assets: United States electrical construction and facilities services $ 820,229 $ 702,112 United States mechanical construction and facilities services 1,228,920 1,080,829 United States building services 984,514 846,221 United States industrial services 872,115 864,622 Total United States operations 3,905,778 3,493,784 United Kingdom building services 163,069 146,379 Corporate administration 463,874 448,644 Total worldwide operations $ 4,532,721 $ 4,088,807 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 4, 2019, we entered into a definitive agreement to acquire Batchelor & Kimball, Inc. (“BKI”) in an all-cash transaction. BKI is a leading full service provider of mechanical construction and maintenance services in the South and Southeast regions of the United States, and its results will be included within our United States mechanical construction and facilities services segment. The transaction is expected to close by the end of 2019, subject to customary closing conditions and regulatory approvals. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The Company recognizes 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 by applying the following five step model: (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 of 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 and nine months ended September 30, 2019 , there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. For the three and nine months ended September 30, 2018, we recognized revenue of $6.3 million associated with the final settlement of contract value for two projects which were completed in prior periods. In addition, for the three and nine months ended September 30, 2019 and 2018 , there were no significant reversals of revenue recognized associated with the revision of 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 as it is created or enhanced. 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 which occurs as we incur costs on our contracts. 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 for 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. For these performance obligations, we 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 which occurs as we incur costs on our contracts. 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 certain recognition criteria 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. |
Fair Value Measurements (Policy
Fair Value Measurements (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
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. |
Leases (Policy)
Leases (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | On January 1, 2019, we adopted Accounting Standards Codification Topic 842, “Leases” (“ASC 842”). This pronouncement requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet for most leases. We adopted this pronouncement utilizing the transition practical expedient which eliminates the requirement that the new lease standard be applied to comparative periods presented in the year of adoption. As part of our adoption, we elected to utilize the package of practical expedients permitted under the new standard, which allowed us to not reassess: (a) whether an existing contract is or contains a lease, (b) the classification for existing leases and (c) initial direct costs. Further, as permitted by the standard, we made an accounting policy election not to record right-of-use assets or lease liabilities for leases with an initial term of 12 months or less. Instead, consistent with previous accounting guidance, we will recognize payments for such leases in the statement of operations on a straight-line basis over the lease term. We lease real estate, vehicles and equipment under various operating and finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset. Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements. Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. As permitted by ASC 842, we have elected to account for these non-lease components together with the associated lease component. This election has been made for each of our asset classes. The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis over a similar term. Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables provide further disaggregation of our revenues by categories we use to evaluate our financial performance within each of our reportable segments for the three and nine months ended September 30, 2019 and 2018 (in thousands): For the three months ended September 30, 2019 % of Total 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 260,871 47 % $ 196,293 40 % Institutional market sector 33,702 6 % 27,903 6 % Hospitality market sector 2,243 1 % 9,860 2 % Manufacturing market sector 121,488 22 % 100,563 20 % Healthcare market sector 24,701 4 % 28,121 6 % Transportation market sector 52,744 9 % 72,816 15 % Water and wastewater market sector 3,709 1 % 4,194 1 % Short duration projects (1) 42,296 7 % 38,452 8 % Service work 14,174 3 % 8,147 2 % 555,928 486,349 Less intersegment revenues (1,291 ) (375 ) Total segment revenues $ 554,637 $ 485,974 United States mechanical construction and facilities services: Commercial market sector $ 293,202 33 % $ 287,350 38 % Institutional market sector 94,886 11 % 77,676 10 % Hospitality market sector 6,888 1 % 26,170 3 % Manufacturing market sector 150,199 17 % 89,779 12 % Healthcare market sector 84,418 10 % 55,843 7 % Transportation market sector 7,855 1 % 3,072 1 % Water and wastewater market sector 42,637 5 % 43,033 6 % Short duration projects (1) 91,897 10 % 72,388 9 % Service work 100,196 12 % 107,168 14 % 872,178 762,479 Less intersegment revenues (2,990 ) (2,984 ) Total segment revenues $ 869,188 $ 759,495 ________ (1) Represents those projects which generally are completed within three months or less. For the three months ended September 30, 2019 % of 2018 % of United States building services: Commercial site-based services $ 133,179 25 % $ 120,917 26 % Government site-based services 42,412 8 % 52,332 11 % Mechanical services 333,696 63 % 276,722 58 % Energy services 22,835 4 % 23,730 5 % Total segment revenues $ 532,122 $ 473,701 United States industrial services: Field services $ 194,569 83 % $ 181,873 80 % Shop services 39,597 17 % 45,440 20 % Total segment revenues $ 234,166 $ 227,313 Total United States operations $ 2,190,113 $ 1,946,483 United Kingdom building services: Service work $ 49,098 50 % $ 51,815 52 % Projects & extras 48,530 50 % 48,751 48 % Total segment revenues $ 97,628 $ 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 For the nine months ended September 30, 2019 % of Total 2018 % of Total United States electrical construction and facilities services: Commercial market sector $ 816,602 49 % $ 579,958 41 % Institutional market sector 87,643 5 % 86,971 6 % Hospitality market sector 11,930 1 % 22,665 2 % Manufacturing market sector 338,448 20 % 280,375 20 % Healthcare market sector 63,725 4 % 103,307 7 % Transportation market sector 162,538 10 % 216,591 15 % Water and wastewater market sector 14,342 1 % 14,947 1 % Short duration projects (1) 124,152 8 % 93,177 6 % Service work 35,439 2 % 25,151 2 % 1,654,819 1,423,142 Less intersegment revenues (2,710 ) (2,874 ) Total segment revenues $ 1,652,109 $ 1,420,268 ________ (1) Represents those projects which generally are completed within three months or less. For the nine months ended September 30, 2019 % of 2018 % of United States mechanical construction and facilities services: Commercial market sector $ 874,512 36 % $ 780,629 36 % Institutional market sector 232,843 9 % 219,830 10 % Hospitality market sector 28,807 1 % 73,888 3 % Manufacturing market sector 386,853 16 % 271,133 13 % Healthcare market sector 220,445 9 % 181,669 8 % Transportation market sector 22,880 1 % 13,002 1 % Water and wastewater market sector 131,385 5 % 122,275 6 % Short duration projects (1) 273,001 11 % 223,200 10 % Service work 282,094 12 % 291,694 13 % 2,452,820 2,177,320 Less intersegment revenues (8,137 ) (9,193 ) Total segment revenues $ 2,444,683 $ 2,168,127 ________ (1) Represents those projects which generally are completed within three months or less. For the nine months ended September 30, 2019 % of 2018 % of United States building services: Commercial site-based services $ 420,078 27 % $ 386,721 28 % Government site-based services 133,990 8 % 162,888 12 % Mechanical services 920,684 59 % 764,313 55 % Energy services 93,147 6 % 75,564 5 % Total segment revenues $ 1,567,899 $ 1,389,486 United States industrial services: Field services $ 664,188 84 % $ 486,362 80 % Shop services 124,083 16 % 124,117 20 % Total segment revenues $ 788,271 $ 610,479 Total United States operations $ 6,452,962 $ 5,588,360 United Kingdom building services: Service work $ 160,561 51 % $ 162,088 52 % Projects & extras 157,148 49 % 150,875 48 % Total segment revenues $ 317,709 $ 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 |
Contract Assets and Contract Liabilities | Net contract liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Contract assets, current $ 179,005 $ 158,243 Contract assets, non-current — — Contract liabilities, current (565,957 ) (552,290 ) Contract liabilities, non-current (2,025 ) (2,069 ) Net contract liabilities $ (388,977 ) $ (396,116 ) |
Remaining 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): September 30, 2019 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,095,254 27 % United States mechanical construction and facilities services 2,190,556 54 % United States building services 544,913 14 % United States industrial services 83,478 2 % Total United States operations 3,914,201 97 % United Kingdom building services 120,887 3 % Total worldwide operations $ 4,035,088 100 % |
Remaining Performance Obligations, 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 $ 999,218 $ 96,036 United States mechanical construction and facilities services 1,758,285 432,271 United States building services 534,628 10,285 United States industrial services 83,478 — Total United States operations 3,375,609 538,592 United Kingdom building services 80,841 40,046 Total worldwide operations $ 3,456,450 $ 578,638 |
Disposition of Assets (Tables)
Disposition of Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 for the three and nine months ended September 30, 2018 were as follows (in thousands): For the three months ended September 30, 2018 For the nine months ended September 30, 2018 Revenues $ — $ — Loss from discontinued operation, net of income taxes $ (523 ) $ (1,010 ) Diluted loss per share from discontinued operation $ (0.01 ) $ (0.02 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share data): For the three months ended September 30, 2019 2018 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 81,834 $ 79,896 Loss from discontinued operation, net of income taxes — (523 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 81,834 $ 79,373 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 56,216,840 58,208,203 Effect of dilutive securities—Share-based awards 341,610 333,107 Shares used to compute diluted earnings (loss) per common share 56,558,450 58,541,310 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.46 $ 1.37 From discontinued operation — (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.46 $ 1.36 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.45 $ 1.36 From discontinued operation — (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.45 $ 1.35 For the nine months ended September 30, 2019 2018 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 238,216 $ 206,573 Loss from discontinued operation, net of income taxes — (1,010 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 238,216 $ 205,563 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 56,189,388 58,422,928 Effect of dilutive securities—Share-based awards 305,042 331,939 Shares used to compute diluted earnings (loss) per common share 56,494,430 58,754,867 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 4.24 $ 3.54 From discontinued operation — (0.02 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 4.24 $ 3.52 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 4.22 $ 3.52 From discontinued operation — (0.02 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 4.22 $ 3.50 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Raw materials and construction materials $ 29,829 $ 30,006 Work in process 8,892 12,315 Inventories $ 38,721 $ 42,321 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Revolving credit facility $ — $ 25,000 Term loan 258,228 269,620 Unamortized debt issuance costs (2,175 ) (3,065 ) Finance lease obligations (1) 9,980 4,213 Other — 9 Total debt 266,033 295,777 Less: current maturities 18,196 16,013 Total long-term debt $ 247,837 $ 279,764 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 (in thousands): Assets at Fair Value as of September 30, 2019 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 368,073 $ — $ — $ 368,073 Restricted cash (2) 1,734 — — 1,734 Deferred compensation plan assets (3) 27,937 — — 27,937 Total $ 397,744 $ — $ — $ 397,744 Assets at Fair Value as of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 363,907 $ — $ — $ 363,907 Restricted cash (2) 2,307 — — 2,307 Deferred compensation plan assets (3) 23,124 — — 23,124 Total $ 389,338 $ — $ — $ 389,338 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2019 and December 31, 2018 , we had $176.6 million and $161.3 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the 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 Consolidated Balance Sheets. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Pension Cost | The components of net periodic pension cost (income) of the UK Plan for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Interest cost $ 1,925 $ 1,959 $ 5,968 $ 6,103 Expected return on plan assets (2,941 ) (3,344 ) (9,121 ) (10,415 ) Amortization of unrecognized loss 566 638 1,756 1,985 Net periodic pension cost (income) $ (450 ) $ (747 ) $ (1,397 ) $ (2,327 ) |
Commitments and Contingencies R
Commitments and Contingencies Restructuring and Related Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The changes in restructuring activity by reportable segment during the nine months ended September 30, 2019 and 2018 were as follows (in thousands): United States United States building services segment Corporate administration Total Balance at December 31, 2017 $ 452 $ 40 $ — $ 492 Charges — 693 — 693 Payments (330 ) (646 ) — (976 ) Balance at September 30, 2018 $ 122 $ 87 $ — $ 209 Balance at December 31, 2018 $ 30 $ 176 $ 1,424 $ 1,630 Charges — 567 — 567 Payments (30 ) (708 ) (723 ) (1,461 ) Balance at September 30, 2019 $ — $ 35 $ 701 $ 736 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheet as of September 30, 2019 (in thousands): Classification on the Consolidated Balance Sheet September 30, Assets Operating lease assets Operating lease right-of-use assets $ 232,996 Finance lease assets Property, plant and equipment, net 9,894 Total lease assets $ 242,890 Liabilities Current Operating Operating lease liabilities, current $ 51,632 Finance Current maturities of long-term debt and finance lease liabilities 4,192 Noncurrent Operating Operating lease liabilities, long-term 193,502 Finance Long-term debt and finance lease liabilities 5,788 Total lease liabilities $ 255,114 |
Schedule of Lease Cost | The following table presents information related to lease expense for the nine months ended September 30, 2019 (in thousands): For the nine months ended September 30, 2019 Finance lease expense: Amortization expense $ 3,396 Interest expense 325 Operating lease expense 49,408 Short-term lease expense 108,930 Variable lease expense 3,358 Total lease expense $ 165,417 |
Schedule of Lease Term and Discount Rate | The following table presents certain information related to lease terms and discount rates for leases as of September 30, 2019 : September 30, Weighted-average remaining lease term: Operating leases 6.6 years Finance leases 3.0 years Weighed-average discount rate: Operating leases 4.17 % Finance leases 4.16 % |
Schedule of Supplemental Cash Flow Lease Information | The following table presents supplemental cash flow information related to leases for the nine months ended September 30, 2019 (in thousands): For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 48,966 Operating cash flows used for finance leases $ 325 Financing cash flows used for finance leases $ 3,357 Right-of-use assets obtained in exchange for new operating lease liabilities $ 57,400 Right-of-use assets obtained in exchange for new finance lease liabilities $ 4,471 |
Schedule of Maturity of Lease Liabilities | The following table reconciles future minimum lease payments on an undiscounted cash flow basis to the lease liabilities reported in the Consolidated Balance Sheet as of September 30, 2019 (in thousands): Operating Leases Finance Leases October 1, 2019 to September 30, 2020 $ 60,630 $ 4,507 October 1, 2020 to September 30, 2021 49,507 3,077 October 1, 2021 to September 30, 2022 40,141 1,857 October 1, 2022 to September 30, 2023 33,471 838 October 1, 2023 to September 30, 2024 24,566 164 Thereafter 73,298 142 Total minimum lease payments 281,613 10,585 Less: Amount of lease payments representing interest (36,479 ) (605 ) Present value of future minimum lease payments $ 245,134 $ 9,980 Current portion of lease liabilities $ 51,632 $ 4,192 Noncurrent portion of lease liabilities 193,502 5,788 Present value of future minimum lease payments $ 245,134 $ 9,980 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Information About Industry Segments And Geographic Areas | The following tables present information about industry segments and geographic areas for the three and nine months ended September 30, 2019 and 2018 (in thousands): For the three months ended September 30, 2019 2018 Revenues from unrelated entities: United States electrical construction and facilities services $ 554,637 $ 485,974 United States mechanical construction and facilities services 869,188 759,495 United States building services 532,122 473,701 United States industrial services 234,166 227,313 Total United States operations 2,190,113 1,946,483 United Kingdom building services 97,628 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 Total revenues: United States electrical construction and facilities services $ 556,088 $ 486,642 United States mechanical construction and facilities services 877,571 770,617 United States building services 550,002 490,624 United States industrial services 247,258 227,487 Less intersegment revenues (40,806 ) (28,887 ) Total United States operations 2,190,113 1,946,483 United Kingdom building services 97,628 100,566 Total worldwide operations $ 2,287,741 $ 2,047,049 For the nine months ended September 30, 2019 2018 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,652,109 $ 1,420,268 United States mechanical construction and facilities services 2,444,683 2,168,127 United States building services 1,567,899 1,389,486 United States industrial services 788,271 610,479 Total United States operations 6,452,962 5,588,360 United Kingdom building services 317,709 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 Total revenues: United States electrical construction and facilities services $ 1,655,147 $ 1,425,190 United States mechanical construction and facilities services 2,465,287 2,195,951 United States building services 1,622,509 1,437,498 United States industrial services 809,510 611,947 Less intersegment revenues (99,491 ) (82,226 ) Total United States operations 6,452,962 5,588,360 United Kingdom building services 317,709 312,963 Total worldwide operations $ 6,770,671 $ 5,901,323 For the three months ended September 30, 2019 2018 Operating income (loss): United States electrical construction and facilities services $ 33,630 $ 34,473 United States mechanical construction and facilities services 61,213 59,236 United States building services 35,051 29,315 United States industrial services 5,561 7,637 Total United States operations 135,455 130,661 United Kingdom building services 4,754 4,457 Corporate administration (24,341 ) (23,113 ) Restructuring expenses (119 ) (229 ) Total worldwide operations 115,749 111,776 Other corporate items: Net periodic pension (cost) income 381 615 Interest expense, net (2,678 ) (2,736 ) Income from continuing operations before income taxes $ 113,452 $ 109,655 For the nine months ended September 30, 2019 2018 Operating income (loss): United States electrical construction and facilities services $ 120,380 $ 106,309 United States mechanical construction and facilities services 156,152 156,273 United States building services 90,535 68,822 United States industrial services 31,209 12,312 Total United States operations 398,276 343,716 United Kingdom building services 14,371 12,828 Corporate administration (74,062 ) (65,508 ) Restructuring expenses (567 ) (693 ) Impairment loss on identifiable intangible assets — (907 ) Total worldwide operations 338,018 289,436 Other corporate items: Net periodic pension (cost) income 1,187 2,069 Interest expense, net (8,732 ) (8,011 ) Income from continuing operations before income taxes $ 330,473 $ 283,494 September 30, December 31, Total assets: United States electrical construction and facilities services $ 820,229 $ 702,112 United States mechanical construction and facilities services 1,228,920 1,080,829 United States building services 984,514 846,221 United States industrial services 872,115 864,622 Total United States operations 3,905,778 3,493,784 United Kingdom building services 163,069 146,379 Corporate administration 463,874 448,644 Total worldwide operations $ 4,532,721 $ 4,088,807 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease right-of-use assets | $ 232,996 | $ 0 | |
Operating lease liabilities, total | $ 245,134 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating lease right-of-use assets | $ 220,200 | ||
Operating lease liabilities, total | $ 227,100 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||
Performance obligation satisfied in previous period | $ 0 | $ 6,300,000 | $ 0 | $ 6,300,000 | |
Change in estimate of transaction price | 0 | 0 | 0 | 0 | |
Change in total estimated cost | 0 | $ 4,700,000 | 0 | $ 5,500,000 | |
Loss on contracts | 0 | 0 | |||
Change in net contract liabilities | 7,100,000 | ||||
Contract asset impairment | 0 | $ 0 | |||
Remaining performance obligations | $ 4,035,088,000 | 4,035,088,000 | |||
2019 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Increase in contract assets from acquisitions | 6,200,000 | ||||
Increase in contract liabilities from acquisitions | $ 13,000,000 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 2,287,741 | $ 2,047,049 | $ 6,770,671 | $ 5,901,323 | ||||
UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 2,190,113 | 1,946,483 | 6,452,962 | 5,588,360 | ||||
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 554,637 | 485,974 | 1,652,109 | 1,420,268 | ||||
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 869,188 | 759,495 | 2,444,683 | 2,168,127 | ||||
United States Building Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 532,122 | 473,701 | 1,567,899 | 1,389,486 | ||||
United States Industrial Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 234,166 | 227,313 | 788,271 | 610,479 | ||||
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 97,628 | 100,566 | 317,709 | 312,963 | ||||
Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 555,928 | 486,349 | 1,654,819 | 1,423,142 | ||||
Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | 872,178 | 762,479 | 2,452,820 | 2,177,320 | ||||
Intersegment Eliminations [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | (1,291) | (375) | (2,710) | (2,874) | ||||
Intersegment Eliminations [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | (2,990) | (2,984) | (8,137) | (9,193) | ||||
Commercial Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 260,871 | $ 196,293 | $ 816,602 | $ 579,958 | ||||
Percent of individual segment | 47.00% | 40.00% | 49.00% | 41.00% | ||||
Commercial Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 293,202 | $ 287,350 | $ 874,512 | $ 780,629 | ||||
Percent of individual segment | 33.00% | 38.00% | 36.00% | 36.00% | ||||
Institutional Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 33,702 | $ 27,903 | $ 87,643 | $ 86,971 | ||||
Percent of individual segment | 6.00% | 6.00% | 5.00% | 6.00% | ||||
Institutional Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 94,886 | $ 77,676 | $ 232,843 | $ 219,830 | ||||
Percent of individual segment | 11.00% | 10.00% | 9.00% | 10.00% | ||||
Hospitality Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 2,243 | $ 9,860 | $ 11,930 | $ 22,665 | ||||
Percent of individual segment | 1.00% | 2.00% | 1.00% | 2.00% | ||||
Hospitality Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 6,888 | $ 26,170 | $ 28,807 | $ 73,888 | ||||
Percent of individual segment | 1.00% | 3.00% | 1.00% | 3.00% | ||||
Manufacturing Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 121,488 | $ 100,563 | $ 338,448 | $ 280,375 | ||||
Percent of individual segment | 22.00% | 20.00% | 20.00% | 20.00% | ||||
Manufacturing Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 150,199 | $ 89,779 | $ 386,853 | $ 271,133 | ||||
Percent of individual segment | 17.00% | 12.00% | 16.00% | 13.00% | ||||
Healthcare Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 24,701 | $ 28,121 | $ 63,725 | $ 103,307 | ||||
Percent of individual segment | 4.00% | 6.00% | 4.00% | 7.00% | ||||
Healthcare Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 84,418 | $ 55,843 | $ 220,445 | $ 181,669 | ||||
Percent of individual segment | 10.00% | 7.00% | 9.00% | 8.00% | ||||
Transportation Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 52,744 | $ 72,816 | $ 162,538 | $ 216,591 | ||||
Percent of individual segment | 9.00% | 15.00% | 10.00% | 15.00% | ||||
Transportation Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 7,855 | $ 3,072 | $ 22,880 | $ 13,002 | ||||
Percent of individual segment | 1.00% | 1.00% | 1.00% | 1.00% | ||||
Water and Wastewater Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 3,709 | $ 4,194 | $ 14,342 | $ 14,947 | ||||
Percent of individual segment | 1.00% | 1.00% | 1.00% | 1.00% | ||||
Water and Wastewater Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 42,637 | $ 43,033 | $ 131,385 | $ 122,275 | ||||
Percent of individual segment | 5.00% | 6.00% | 5.00% | 6.00% | ||||
Short Duration Projects [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 42,296 | [1] | $ 38,452 | [1] | $ 124,152 | [2] | $ 93,177 | [2] |
Percent of individual segment | 7.00% | 8.00% | 8.00% | 6.00% | ||||
Short Duration Projects [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 91,897 | [1] | $ 72,388 | [1] | $ 273,001 | [3] | $ 223,200 | [3] |
Percent of individual segment | 10.00% | 9.00% | 11.00% | 10.00% | ||||
Service Work [Member] | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 49,098 | $ 51,815 | $ 160,561 | $ 162,088 | ||||
Percent of individual segment | 50.00% | 52.00% | 51.00% | 52.00% | ||||
Service Work [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 14,174 | $ 8,147 | $ 35,439 | $ 25,151 | ||||
Percent of individual segment | 3.00% | 2.00% | 2.00% | 2.00% | ||||
Service Work [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 100,196 | $ 107,168 | $ 282,094 | $ 291,694 | ||||
Percent of individual segment | 12.00% | 14.00% | 12.00% | 13.00% | ||||
Commercial Site-Based Services [Member] | United States Building Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 133,179 | $ 120,917 | $ 420,078 | $ 386,721 | ||||
Percent of individual segment | 25.00% | 26.00% | 27.00% | 28.00% | ||||
Government Site-Based Services [Member] | United States Building Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 42,412 | $ 52,332 | $ 133,990 | $ 162,888 | ||||
Percent of individual segment | 8.00% | 11.00% | 8.00% | 12.00% | ||||
Mechanical Services [Member] | United States Building Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 333,696 | $ 276,722 | $ 920,684 | $ 764,313 | ||||
Percent of individual segment | 63.00% | 58.00% | 59.00% | 55.00% | ||||
Energy Services [Member] | United States Building Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 22,835 | $ 23,730 | $ 93,147 | $ 75,564 | ||||
Percent of individual segment | 4.00% | 5.00% | 6.00% | 5.00% | ||||
Field Services [Member] | United States Industrial Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 194,569 | $ 181,873 | $ 664,188 | $ 486,362 | ||||
Percent of individual segment | 83.00% | 80.00% | 84.00% | 80.00% | ||||
Shop Services [Member] | United States Industrial Services [Member] | UNITED STATES | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 39,597 | $ 45,440 | $ 124,083 | $ 124,117 | ||||
Percent of individual segment | 17.00% | 20.00% | 16.00% | 20.00% | ||||
Projects & Extras [Member] | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenues | $ 48,530 | $ 48,751 | $ 157,148 | $ 150,875 | ||||
Percent of individual segment | 50.00% | 48.00% | 49.00% | 48.00% | ||||
[1] | Represents those projects which generally are completed within three months or less. | |||||||
[2] | Represents those projects which generally are completed within three months or less. | |||||||
[3] | Represents those projects which generally are completed within three months or less. |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current | $ 179,005 | $ 158,243 |
Contract assets, non-current | 0 | 0 |
Contract liabilities, current | (565,957) | (552,290) |
Contract liabilities, non-current | (2,025) | (2,069) |
Net contract liabilities | $ (388,977) | $ (396,116) |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Revenue, Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 4,035,088 |
Remaining performance obligations, percent | 100.00% |
UNITED STATES | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 3,914,201 |
Remaining performance obligations, percent | 97.00% |
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,095,254 |
Remaining performance obligations, percent | 27.00% |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 2,190,556 |
Remaining performance obligations, percent | 54.00% |
UNITED STATES | United States Building Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 544,913 |
Remaining performance obligations, percent | 14.00% |
UNITED STATES | United States Industrial Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 83,478 |
Remaining performance obligations, percent | 2.00% |
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 120,887 |
Remaining performance obligations, percent | 3.00% |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Schedule of Revenue. Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,035,088 |
UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 3,914,201 |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,095,254 |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 2,190,556 |
United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 544,913 |
United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 83,478 |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 120,887 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 3,456,450 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 3,375,609 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 999,218 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 1,758,285 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 534,628 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 83,478 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 80,841 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 578,638 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 538,592 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 96,036 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 432,271 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 10,285 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 40,046 |
Acquisitions Of Businesses (Det
Acquisitions Of Businesses (Details) $ in Thousands | Sep. 16, 2019Company | Aug. 01, 2019Company | May 10, 2019Company | Apr. 01, 2019Company | Jan. 04, 2019Company | Nov. 01, 2018Company | Oct. 02, 2018Company | May 03, 2018Company | Apr. 04, 2018Company | Sep. 30, 2019USD ($) | Nov. 01, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 1,019,590 | $ 990,887 | ||||||||||
Number of businesses acquired | Company | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||
2019 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | 83,600 | |||||||||||
Working capital acquired | 25,300 | |||||||||||
Other net assets | 1,000 | |||||||||||
Goodwill | 28,300 | |||||||||||
Identifiable intangible assets | $ 29,000 | |||||||||||
2018 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 71,600 | |||||||||||
Working capital acquired | 8,700 | |||||||||||
Goodwill | 26,300 | |||||||||||
Identifiable intangible assets | $ 36,600 |
Disposition of Assets (Narrativ
Disposition of Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||
Loss from discontinued operation, net of income taxes | $ 0 | $ (523,000) | $ 0 | $ (1,010,000) | |
From discontinued operation (in US dollars per share) | $ 0 | $ (0.01) | $ 0 | $ (0.02) | |
UNITED KINGDOM | Discontinued Operations [Member] | United Kingdom Construction [Member] | |||||
Income Statement [Abstract] | |||||
Revenues | $ 0 | $ 0 | |||
Loss from discontinued operation, net of income taxes | $ (523,000) | $ (1,010,000) | |||
From discontinued operation (in US dollars per share) | $ (0.01) | $ (0.02) | |||
Current liabilities | $ 0 | $ 0 | $ 3,700,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Income from continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars) | $ 81,834 | $ 79,896 | $ 238,216 | $ 206,573 |
Loss from discontinued operation, net of income taxes (in US dollars) | 0 | (523) | 0 | (1,010) |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 81,834 | $ 79,373 | $ 238,216 | $ 205,563 |
Denominator | ||||
Weighted average shares outstanding used to compute basic earnings (loss) per common share (in shares) | 56,216,840 | 58,208,203 | 56,189,388 | 58,422,928 |
Effect of dilutive securities-Share-based awards (in shares) | 341,610 | 333,107 | 305,042 | 331,939 |
Shares used to compute diluted earnings (loss) per common share (in shares) | 56,558,450 | 58,541,310 | 56,494,430 | 58,754,867 |
Basic earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.46 | $ 1.37 | $ 4.24 | $ 3.54 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.46 | 1.36 | 4.24 | 3.52 |
Diluted earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.45 | 1.36 | 4.22 | 3.52 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.45 | $ 1.35 | $ 4.22 | $ 3.50 |
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) | 0 | 0 | 0 | 550 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 29,829 | $ 30,006 |
Work in process | 8,892 | 12,315 |
Inventories | $ 38,721 | $ 42,321 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 03, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 30, 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 (2.04% at September 30, 2019) 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 (5.00% at September 30, 2019), (b) the federal funds effective rate, plus 1/2 of 1.00%, (c) the daily one month LIBOR rate, plus 1.00%, or (d) 0.00%. The interest rate in effect at September 30, 2019 was 3.04%. 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) | $ 11,400,000 | $ 11,434,000 | ||||||
Letters of credit outstanding (in US dollars) | 109,000,000 | $ 109,000,000 | ||||||
Borrowings under revolving credit facility (in US dollars) | $ 0 | 25,000,000 | ||||||
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 | 3.04% | |||||||
2016 Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowings under revolving credit facility (in US dollars) | $ 0 | 25,000,000 | ||||||
2016 Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term Loan (in US dollars) | $ 400,000,000 | $ 258,228,000 | $ 269,620,000 | |||||
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 | |||||||
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 | 5.00% | |||||||
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 | 2.04% | |||||||
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] | 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 ($) | Sep. 30, 2019 | Dec. 31, 2018 | Aug. 03, 2016 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 0 | $ 25,000,000 | ||
Unamortized debt issuance costs | (2,175,000) | (3,065,000) | ||
Finance lease obligations | [1] | 9,980,000 | 4,213,000 | |
Other | 0 | 9,000 | ||
Total debt | 266,033,000 | 295,777,000 | ||
Less: current maturities | 18,196,000 | 16,013,000 | ||
Total long-term debt | 247,837,000 | 279,764,000 | ||
2016 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 258,228,000 | $ 269,620,000 | $ 400,000,000 | |
[1] | See Note 14 - Leases for further disclosure regarding finance lease obligations. |
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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash | $ 1,700 | $ 2,300 | $ 2,400 | $ 2,000 | |
Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 368,073 | 363,907 | ||
Restricted cash | [2] | 1,734 | 2,307 | ||
Deferred compensation plan assets | [3] | 27,937 | 23,124 | ||
Total | 397,744 | 389,338 | |||
Fair Value, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 368,073 | 363,907 | ||
Restricted cash | [2] | 1,734 | 2,307 | ||
Deferred compensation plan assets | [3] | 27,937 | 23,124 | ||
Total | 397,744 | 389,338 | |||
Fair Value, 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, 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, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 176,600 | $ 161,300 | |||
[1] | Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2019 and December 31, 2018 , we had $176.6 million and $161.3 million , respectively, in money market funds. | ||||
[2] | Restricted cash is classified as “Prepaid expenses and other” in the Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts. | ||||
[3] | Deferred compensation plan assets are classified as “Other assets” in the Consolidated Balance Sheets. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax provision | $ 31,618 | $ 29,711 | $ 92,257 | $ 76,873 | |
Effective income tax rates | 27.90% | 27.70% | 28.10% | 27.70% | |
Actual income tax rates | 27.90% | 27.10% | 27.90% | 27.10% | |
Unrecognized income tax benefits | $ 0 | $ 0 | $ 0 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 96 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 26, 2011 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock, outstanding | 56,147,875 | 56,147,875 | 56,147,875 | 55,983,763 | |||
Common stock, issued | 18,651 | 47,125 | 164,112 | 218,055 | |||
Common stock, dividend, per share | $ 0.08 | ||||||
Stock repurchased (in US dollars) | $ 35,131,000 | $ 95,639,000 | |||||
Common Stock [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of shares repurchased | 0 | 15,900,000 | |||||
Stock repurchased (in US dollars) | $ 791,500,000 | ||||||
Remaining authorized repurchase amount (in US dollars) | $ 158,500,000 | $ 158,500,000 | 158,500,000 | ||||
Common Stock [Member] | RepurchaseProgramSep262011 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 | ||||||
Common Stock [Member] | RepurchaseProgramSep2011toSep2019 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase, authorized amount (in US dollars) | $ 950,000,000 | $ 950,000,000 | $ 950,000,000 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)plan | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)plan | Sep. 30, 2018USD ($) | |
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost (income) | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 |
Number of plans | plan | 3 | 3 | ||
Contributions to defined benefit pension plans | $ 200,000 | |||
UK Plan | United Kingdom Subsidiary [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost (income) | $ (450,000) | $ (747,000) | (1,397,000) | $ (2,327,000) |
Contributions to defined benefit pension plans | 3,100,000 | |||
Anticipated additional contribution | $ 1,200,000 | $ 1,200,000 |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Pension Benefit Cost) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost (income) | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 |
UK Plan | United Kingdom Subsidiary [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1,925,000 | 1,959,000 | 5,968,000 | 6,103,000 |
Expected return on plan assets | (2,941,000) | (3,344,000) | (9,121,000) | (10,415,000) |
Amortization of unrecognized loss | 566,000 | 638,000 | 1,756,000 | 1,985,000 |
Net periodic pension cost (income) | $ (450,000) | $ (747,000) | $ (1,397,000) | $ (2,327,000) |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 119 | $ 229 | $ 567 | $ 693 | ||
Restructuring reserve | 736 | 209 | 736 | 209 | $ 1,630 | $ 492 |
Employee Severance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 100 | $ 200 | $ 600 | $ 700 |
Schedule of Restructuring Activ
Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 736 | $ 209 | $ 736 | $ 209 | $ 1,630 | $ 492 |
Restructuring expenses | 119 | 229 | 567 | 693 | ||
Payments for restructuring | (1,461) | (976) | ||||
Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 100 | 200 | 600 | 700 | ||
UNITED STATES | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 0 | 122 | 0 | 122 | 30 | 452 |
Restructuring expenses | 0 | 0 | ||||
Payments for restructuring | (30) | (330) | ||||
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 35 | 87 | 35 | 87 | 176 | 40 |
Restructuring expenses | 567 | 693 | ||||
Payments for restructuring | (708) | (646) | ||||
UNITED STATES | Operating Segments [Member] | Corporate, Non-Segment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 701 | $ 0 | 701 | 0 | $ 1,424 | $ 0 |
Restructuring expenses | 0 | 0 | ||||
Payments for restructuring | $ (723) | $ 0 |
Leases (Schedule of Lease Asset
Leases (Schedule of Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease right-of-use assets | $ 232,996 | $ 0 |
Finance lease right-of-use assets | 9,894 | |
Total lease assets | 242,890 | |
Liabilities | ||
Operating lease liabilities, current | 51,632 | 0 |
Finance lease liabilities, current | 4,192 | |
Operating lease liabilities, long-term | 193,502 | $ 0 |
Finance lease liabilities, long-term | 5,788 | |
Total lease liabilities | $ 255,114 |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Finance lease amortization expense | $ 3,396 |
Finance lease interest expense | 325 |
Operating lease expense | 49,408 |
Short-term lease expense | 108,930 |
Variable lease expense | 3,358 |
Total lease expense | $ 165,417 |
Leases (Schedule of Lease Term
Leases (Schedule of Lease Term and Discount Rate) (Details) | Sep. 30, 2019 |
Weighted-average remaining lease term: | |
Operating leases | 6 years 7 months 6 days |
Finance leases | 3 years |
Weighed-average discount rate: | |
Operating leases | 4.17% |
Finance leases | 4.16% |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Lease Information) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used for operating leases | $ 48,966 |
Operating cash flows used for finance leases | 325 |
Financing cash flows used for finance leases | 3,357 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 57,400 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 4,471 |
Leases (Schedule of Maturity of
Leases (Schedule of Maturity of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Operating Leases | |||
October 1, 2019 to September 30, 2020 | $ 60,630 | ||
October 1, 2020 to September 30, 2021 | 49,507 | ||
October 1, 2021 to September 30, 2022 | 40,141 | ||
October 1, 2022 to September 30, 2023 | 33,471 | ||
October 1, 2023 to September 30, 2024 | 24,566 | ||
Thereafter | 73,298 | ||
Total minimum lease payments | 281,613 | ||
Less: Amount of lease payments representing interest | (36,479) | ||
Present value of future minimum lease payments | 245,134 | ||
Current portion of lease liabilities | 51,632 | $ 0 | |
Noncurrent portion of lease liabilities | 193,502 | 0 | |
Finance Leases | |||
October 1, 2019 to September 30, 2020 | 4,507 | ||
October 1, 2020 to September 30, 2021 | 3,077 | ||
October 1, 2021 to September 30, 2022 | 1,857 | ||
October 1, 2022 to September 30, 2023 | 838 | ||
October 1, 2023 to September 30, 2024 | 164 | ||
Thereafter | 142 | ||
Total minimum lease payments | 10,585 | ||
Less: Amount of lease payments representing interest | (605) | ||
Present value of future minimum lease payments | [1] | 9,980 | $ 4,213 |
Current portion of lease liabilities | 4,192 | ||
Noncurrent portion of lease liabilities | $ 5,788 | ||
[1] | See Note 14 - Leases for further disclosure regarding finance lease obligations. |
Segment Information (Informatio
Segment Information (Information About Industry Segments And Geographic Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | $ 2,287,741 | $ 2,047,049 | $ 6,770,671 | $ 5,901,323 | |
Total revenues | 2,287,741 | 2,047,049 | 6,770,671 | 5,901,323 | |
Operating income (loss) | 115,749 | 111,776 | 338,018 | 289,436 | |
Restructuring expenses | (119) | (229) | (567) | (693) | |
Impairment loss on identifiable intangible assets | 0 | 0 | 0 | (907) | |
Net periodic pension (cost) income | 381 | 615 | 1,187 | 2,069 | |
Interest expense, net | (2,678) | (2,736) | (8,732) | (8,011) | |
Income from continuing operations before income taxes | 113,452 | 109,655 | 330,473 | 283,494 | |
Total assets | 4,532,721 | 4,532,721 | $ 4,088,807 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | (40,806) | (28,887) | (99,491) | (82,226) | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (24,341) | (23,113) | (74,062) | (65,508) | |
Total assets | 463,874 | 463,874 | 448,644 | ||
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 2,190,113 | 1,946,483 | 6,452,962 | 5,588,360 | |
Total revenues | 2,190,113 | 1,946,483 | 6,452,962 | 5,588,360 | |
Operating income (loss) | 135,455 | 130,661 | 398,276 | 343,716 | |
Total assets | 3,905,778 | 3,905,778 | 3,493,784 | ||
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 554,637 | 485,974 | 1,652,109 | 1,420,268 | |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 869,188 | 759,495 | 2,444,683 | 2,168,127 | |
UNITED STATES | United States Building Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 532,122 | 473,701 | 1,567,899 | 1,389,486 | |
UNITED STATES | United States Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 234,166 | 227,313 | 788,271 | 610,479 | |
UNITED STATES | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 555,928 | 486,349 | 1,654,819 | 1,423,142 | |
Total revenues | 556,088 | 486,642 | 1,655,147 | 1,425,190 | |
Operating income (loss) | 33,630 | 34,473 | 120,380 | 106,309 | |
Restructuring expenses | 0 | 0 | |||
Total assets | 820,229 | 820,229 | 702,112 | ||
UNITED STATES | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 872,178 | 762,479 | 2,452,820 | 2,177,320 | |
Total revenues | 877,571 | 770,617 | 2,465,287 | 2,195,951 | |
Operating income (loss) | 61,213 | 59,236 | 156,152 | 156,273 | |
Total assets | 1,228,920 | 1,228,920 | 1,080,829 | ||
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 550,002 | 490,624 | 1,622,509 | 1,437,498 | |
Operating income (loss) | 35,051 | 29,315 | 90,535 | 68,822 | |
Restructuring expenses | (567) | (693) | |||
Total assets | 984,514 | 984,514 | 846,221 | ||
UNITED STATES | Operating Segments [Member] | United States Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 247,258 | 227,487 | 809,510 | 611,947 | |
Operating income (loss) | 5,561 | 7,637 | 31,209 | 12,312 | |
Total assets | 872,115 | 872,115 | 864,622 | ||
UNITED STATES | Operating Segments [Member] | Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring expenses | 0 | 0 | |||
UNITED STATES | Intersegment Eliminations [Member] | United States Electrical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | (1,291) | (375) | (2,710) | (2,874) | |
UNITED STATES | Intersegment Eliminations [Member] | United States Mechanical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | (2,990) | (2,984) | (8,137) | (9,193) | |
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 97,628 | 100,566 | 317,709 | 312,963 | |
UNITED KINGDOM | Operating Segments [Member] | United Kingdom Building Services [Member] [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 97,628 | 100,566 | 317,709 | 312,963 | |
Operating income (loss) | 4,754 | $ 4,457 | 14,371 | $ 12,828 | |
Total assets | $ 163,069 | $ 163,069 | $ 146,379 |