Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 | 49,348,272 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 262,370 | $ 821,345 |
Accounts receivable, less allowance for credit losses of $23,869 and $23,534, respectively | 2,439,594 | 2,204,519 |
Contract assets | 264,764 | 230,143 |
Inventories | 93,464 | 54,098 |
Prepaid expenses and other | 65,348 | 80,889 |
Total current assets | 3,125,540 | 3,390,994 |
Property, plant and equipment, net | 155,411 | 152,066 |
Operating lease right-of-use assets | 271,084 | 260,778 |
Goodwill | 901,208 | 890,268 |
Identifiable intangible assets, net | 577,284 | 589,365 |
Other assets | 115,917 | 157,975 |
Total assets | 5,146,444 | 5,441,446 |
Current liabilities: | ||
Current maturities of long-term debt and finance lease liabilities | 15,635 | 16,235 |
Accounts payable | 722,924 | 734,275 |
Contract liabilities | 925,733 | 788,134 |
Accrued payroll and benefits | 439,319 | 490,867 |
Other accrued expenses and liabilities | 236,908 | 274,406 |
Operating lease liabilities, current | 62,416 | 57,814 |
Total current liabilities | 2,402,935 | 2,361,731 |
Long-term debt and finance lease liabilities | 245,004 | 245,450 |
Operating lease liabilities, long-term | 227,719 | 220,836 |
Other long-term obligations | 317,995 | 360,340 |
Total liabilities | 3,193,653 | 3,188,357 |
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, 60,908,763 and 60,737,006 shares issued, respectively | 609 | 607 |
Capital surplus | 65,212 | 61,874 |
Accumulated other comprehensive loss | (93,223) | (83,562) |
Retained earnings | 2,995,844 | 2,835,504 |
Treasury stock, at cost 11,543,782 and 7,437,268 shares, respectively | (1,016,353) | (562,036) |
Total EMCOR Group, Inc. stockholders' equity | 1,952,089 | 2,252,387 |
Noncontrolling interests | 702 | 702 |
Total equity | 1,952,791 | 2,253,089 |
Total liabilities and equity | $ 5,146,444 | $ 5,441,446 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses (in US dollars) | $ 23,869 | $ 23,534 |
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 | 60,908,763 | 60,737,006 |
Treasury stock, shares | 11,543,782 | 7,437,268 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,707,388 | $ 2,437,666 | $ 5,299,937 | $ 4,741,715 |
Cost of sales | 2,324,380 | 2,061,387 | 4,564,374 | 4,024,363 |
Gross profit | 383,008 | 376,279 | 735,563 | 717,352 |
Selling, general and administrative expenses | 245,364 | 242,921 | 497,962 | 466,990 |
Operating income | 137,644 | 133,358 | 237,601 | 250,362 |
Net periodic pension (cost) income | 1,094 | 922 | 2,263 | 1,830 |
Interest expense, net | (1,751) | (1,316) | (3,040) | (2,679) |
Income before income taxes | 136,987 | 132,964 | 236,824 | 249,513 |
Income tax provision | 36,323 | 35,616 | 62,774 | 67,220 |
Net income including noncontrolling interests | 100,664 | 97,348 | 174,050 | 182,293 |
Net (loss) income attributable to noncontrolling interests | 0 | (2) | 0 | 169 |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 100,664 | $ 97,350 | $ 174,050 | $ 182,124 |
Basic earnings per common share (in US dollars per share) | $ 1.99 | $ 1.79 | $ 3.37 | $ 3.34 |
Diluted earnings per common share (in US dollars per share) | 1.99 | 1.78 | 3.36 | 3.32 |
Dividends declared per common share (in US dollars per share) | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income including noncontrolling interests | $ 100,664 | $ 97,348 | $ 174,050 | $ 182,293 | |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation adjustments | (7,703) | 111 | (10,545) | 696 | |
Post retirement plans, amortization of actuarial loss included in net income (1) | [1] | 429 | 808 | 884 | 1,612 |
Other comprehensive (loss) income | (7,274) | 919 | (9,661) | 2,308 | |
Comprehensive income | 93,390 | 98,267 | 164,389 | 184,601 | |
Comprehensive (loss) income attributable to noncontrolling interests | 0 | (2) | 0 | 169 | |
Comprehensive income attributable to EMCOR Group, Inc. | $ 93,390 | $ 98,269 | $ 164,389 | $ 184,432 | |
[1]Net of tax of $0.1 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively, and net of tax of $0.3 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Post retirement plans, amortization of actuarial loss included in net income, tax | $ 0.1 | $ 0.2 | $ 0.3 | $ 0.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows - operating activities: | |||
Net income including noncontrolling interests | $ 174,050 | $ 182,293 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 23,106 | 24,110 | |
Amortization of identifiable intangible assets | 30,031 | 30,996 | |
Non-cash share-based compensation expense | 6,463 | 5,850 | |
Other reconciling items | 2,290 | 3,784 | |
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (254,791) | (254,005) | |
Net cash used in operating activities | (18,851) | (6,972) | |
Cash flows - investing activities: | |||
Payments for acquisitions of businesses, net of cash acquired | (26,614) | (55,846) | |
Proceeds from sale or disposal of property, plant and equipment | 1,033 | 1,445 | |
Purchases of property, plant and equipment | (27,747) | (16,734) | |
Distributions from unconsolidated entities | 0 | 196 | |
Net cash used in investing activities | (53,328) | (70,939) | |
Cash flows - financing activities: | |||
Proceeds from revolving credit facility | 100,000 | 0 | |
Repayments of revolving credit facility | (100,000) | 0 | |
Repayments of finance lease liabilities | (1,889) | (2,228) | |
Dividends paid to stockholders | (13,619) | (14,236) | |
Repurchases of common stock | (454,317) | (138,030) | |
Taxes paid related to net share settlements of equity awards | (7,239) | (3,771) | |
Issuances of common stock under employee stock purchase plan | 4,023 | 3,561 | |
Payments for contingent consideration arrangements | (2,049) | (2,338) | |
Distributions to noncontrolling interests | 0 | (43) | |
Net cash used in financing activities | (475,090) | (157,085) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (11,757) | 1,222 | |
Decrease in cash, cash equivalents, and restricted cash | (559,026) | (233,774) | |
Cash, cash equivalents, and restricted cash at beginning of year (1) | [1] | 822,568 | 903,562 |
Cash, cash equivalents, and restricted cash at end of period (2) | [2] | $ 263,542 | $ 669,788 |
[1]Includes $1.2 million and $0.7 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively.[2]Includes $1.2 million and $0.9 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of June 30, 2022 and 2021, respectively. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 1.2 | $ 1.2 | $ 0.9 | $ 0.7 |
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, 2020 | $ 2,053,244 | $ 606 | $ 47,464 | $ (109,233) | $ 2,480,321 | $ (366,490) | $ 576 | |
Net income including noncontrolling interests | 182,293 | 182,124 | 169 | |||||
Other comprehensive income (loss) | 2,308 | 2,308 | ||||||
Common stock issued under share-based compensation plans | 1 | 1 | ||||||
Tax withholding for common stock issued under share-based compensation plans | (3,771) | (3,771) | ||||||
Common stock issued under employee stock purchase plan | 3,561 | 3,561 | ||||||
Common stock dividends | (14,236) | (14,336) | ||||||
Common stock dividends, accrued dividend shares | 100 | |||||||
Repurchases of common stock | (138,030) | (138,030) | ||||||
Distributions to noncontrolling interests | (43) | (43) | ||||||
Share-based compensation expense | 5,850 | 5,850 | ||||||
Balance at Jun. 30, 2021 | 2,091,177 | 607 | 53,204 | (106,925) | 2,648,109 | (504,520) | 702 | |
Balance at Mar. 31, 2021 | 2,120,672 | 607 | 48,693 | (107,844) | 2,557,919 | (379,407) | 704 | |
Net income including noncontrolling interests | 97,348 | 97,350 | (2) | |||||
Other comprehensive income (loss) | 919 | 919 | ||||||
Tax withholding for common stock issued under share-based compensation plans | (21) | (21) | ||||||
Common stock issued under employee stock purchase plan | 1,830 | 1,830 | ||||||
Common stock dividends | (7,115) | (7,160) | ||||||
Common stock dividends, accrued dividend shares | 45 | |||||||
Repurchases of common stock | (125,113) | (125,113) | ||||||
Share-based compensation expense | 2,657 | 2,657 | ||||||
Balance at Jun. 30, 2021 | 2,091,177 | 607 | 53,204 | (106,925) | 2,648,109 | (504,520) | 702 | |
Balance at Dec. 31, 2021 | 2,253,089 | 607 | 61,874 | (83,562) | 2,835,504 | (562,036) | 702 | |
Net income including noncontrolling interests | 174,050 | 174,050 | ||||||
Other comprehensive income (loss) | (9,661) | (9,661) | ||||||
Common stock issued under share-based compensation plans | 2 | 2 | ||||||
Tax withholding for common stock issued under share-based compensation plans | (7,239) | (7,239) | ||||||
Common stock issued under employee stock purchase plan | 4,023 | 4,023 | ||||||
Common stock dividends | (13,619) | (13,710) | ||||||
Common stock dividends, accrued dividend shares | 91 | |||||||
Repurchases of common stock | (454,317) | (454,317) | ||||||
Share-based compensation expense | 6,463 | 6,463 | ||||||
Balance at Jun. 30, 2022 | 1,952,791 | 609 | 65,212 | (93,223) | 2,995,844 | (1,016,353) | 702 | |
Balance at Mar. 31, 2022 | 2,135,798 | 608 | 62,374 | (85,949) | 2,901,909 | (743,846) | 702 | |
Net income including noncontrolling interests | 100,664 | 100,664 | ||||||
Other comprehensive income (loss) | (7,274) | (7,274) | ||||||
Common stock issued under share-based compensation plans | 1 | 1 | ||||||
Tax withholding for common stock issued under share-based compensation plans | (2,295) | (2,295) | ||||||
Common stock issued under employee stock purchase plan | 2,068 | 2,068 | ||||||
Common stock dividends | (6,689) | (6,729) | ||||||
Common stock dividends, accrued dividend shares | 40 | |||||||
Repurchases of common stock | (272,507) | (272,507) | ||||||
Share-based compensation expense | 3,025 | 3,025 | ||||||
Balance at Jun. 30, 2022 | $ 1,952,791 | $ 609 | $ 65,212 | $ (93,223) | $ 2,995,844 | $ (1,016,353) | $ 702 | |
[1]Represents cumulative foreign currency translation adjustments and post retirement liability adjustments. |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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 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 (“U.S. GAAP”) 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 and related disclosures reflect certain reclassifications of prior year amounts from our United States mechanical construction and facilities services segment to our United States building services segment, and from our United States building services segment to our United States construction segments, due to changes in our internal reporting structure aimed at realigning our service offerings. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsThe Company is currently evaluating the impact of an accounting standards update issued by the Financial Accounting Standards Board (“FASB”), which provides temporary optional expedients and exceptions to existing U.S. GAAP. This guidance is aimed at easing the financial reporting burdens related to reference rate reform, including the expected market transition from LIBOR, or other interbank offered rates, to alternative reference rates. Such accounting pronouncement allows entities to account for and present certain contract modifications, which occur before December 31, 2022 and result from the transition to an alternative reference rate, as an event that does not require remeasurement at the modification date or reassessment of a previous accounting determination. While we are still evaluating the impact of this pronouncement, we do not anticipate that it will have a material impact on our financial position and/or results of operations, as we are not exposed to any contracts that reference LIBOR, other than our credit agreement dated as of March 2, 2020, which contains provisions that allow for the amendment of such agreement to use alternative reference rates in the event of the discontinuation of LIBOR.In October 2021, an accounting pronouncement was issued by the FASB, that changes how an entity accounts for revenue contracts it acquires in a business combination. The pronouncement requires entities to apply the revenue recognition guidance within Accounting Standards Codification Topic 606 to recognize and measure contract assets and liabilities from contracts with customers in a business combination, creating an exception to the fair value recognition and measurement principle typically utilized when valuing acquired assets. The guidance is aimed at improving comparability by addressing when an acquirer should recognize a contract asset or contract liability, as well as how such assets and liabilities should be measured, and will generally result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the target entity prior to acquisition. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, with early adoption permitted. We are currently evaluating the potential impact of this accounting pronouncement; however, we do not believe that its adoption will have a material impact on our financial position and/or results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
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 we expect 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) collectability 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 collectability 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. NOTE 3 - Revenue from Contracts with Customers (Continued) 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 six months ended June 30, 2022 and 2021, there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. In addition, for the three and six months ended June 30, 2022 and 2021, there were no significant reversals of revenue recognized associated with the revision of transaction prices. NOTE 3 - Revenue from Contracts with Customers (Continued) (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 number 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. NOTE 3 - Revenue from Contracts with Customers (Continued) 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 indicates 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. Based on an evaluation of individual projects that had revisions to total estimated costs, which resulted in a reduction of profitability in excess of $1.0 million, our operating results were negatively impacted by approximately $11.8 million and $23.8 million, during the three and six months ended June 30, 2022, respectively. Of the amount recorded during the three months ended June 30, 2022, approximately $7.7 million was recorded within our United States electrical construction and facilities services segment and approximately $4.1 million was recorded within our United States mechanical construction and facilities services segment. Of the amount recorded during the six months ended June 30, 2022, approximately $14.3 million was recorded within our United States electrical construction and facilities services segment and approximately $9.5 million was recorded within our United States mechanical construction and facilities services segment. There were no changes in total estimated costs that had a significant impact on our operating results during the three and six months ended June 30, 2021. Disaggregation of Revenues Our revenues are principally derived from contracts to provide construction services relating to electrical and mechanical systems, as well as to provide a number of building services and industrial services to our customers. Our contracts are with many different customers in numerous industries. Refer to Note 14 - Segment Information of the notes to consolidated financial statements for additional information on how we disaggregate our revenues by reportable segment. 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 six months ended June 30, 2022 and 2021 (in thousands): For the three months ended June 30, 2022 % of 2021 % of United States electrical construction and facilities services: Commercial market sector $ 299,206 53 % $ 254,456 51 % Manufacturing market sector 65,304 11 % 52,114 10 % Healthcare market sector 43,278 8 % 25,847 5 % Institutional market sector 37,689 7 % 53,181 11 % Transportation market sector 42,440 7 % 53,179 11 % Water and wastewater market sector 5,184 1 % 1,877 1 % Hospitality market sector 2,689 1 % 4,100 1 % Short duration projects (1) 52,868 9 % 38,173 8 % Service work 17,095 3 % 9,810 2 % 565,753 492,737 Less intersegment revenues (1,641) (607) Total segment revenues $ 564,112 $ 492,130 ________ (1) Represents those projects which generally are completed within three months or less. NOTE 3 - Revenue from Contracts with Customers (Continued) For the three months ended June 30, 2022 % of 2021 % of United States mechanical construction and facilities services: Commercial market sector $ 401,778 38 % $ 396,824 41 % Manufacturing market sector 155,290 14 % 118,109 12 % Healthcare market sector 127,253 12 % 121,412 13 % Institutional market sector 92,440 9 % 71,464 7 % Transportation market sector 16,246 1 % 20,704 2 % Water and wastewater market sector 67,746 6 % 44,702 5 % Hospitality market sector 8,300 1 % 11,258 1 % Short duration projects (1) 85,216 8 % 81,829 8 % Service work 114,707 11 % 103,557 11 % 1,068,976 969,859 Less intersegment revenues (2,629) (1,195) Total segment revenues $ 1,066,347 $ 968,664 ________ (1) Represents those projects which generally are completed within three months or less. For the three months ended June 30, 2022 % of 2021 % of United States building services: Mobile mechanical services $ 439,326 65 % $ 412,397 67 % Commercial site-based services 193,082 28 % 152,851 25 % Government site-based services 45,439 7 % 46,587 8 % Total segment revenues $ 677,847 $ 611,835 For the three months ended June 30, 2022 % of 2021 % of United States industrial services: Field services $ 247,542 87 % $ 208,797 89 % Shop services 36,992 13 % 26,366 11 % Total segment revenues $ 284,534 $ 235,163 Total United States operations $ 2,592,840 $ 2,307,792 For the three months ended June 30, 2022 % of 2021 % of United Kingdom building services: Service work $ 54,261 47 % $ 66,572 51 % Project work 60,287 53 % 63,302 49 % Total segment revenues $ 114,548 $ 129,874 Total operations $ 2,707,388 $ 2,437,666 NOTE 3 - Revenue from Contracts with Customers (Continued) For the six months ended June 30, 2022 % of 2021 % of United States electrical construction and facilities services: Commercial market sector $ 569,521 52 % $ 500,297 52 % Manufacturing market sector 131,769 12 % 100,568 10 % Healthcare market sector 75,348 7 % 45,998 5 % Institutional market sector 69,455 6 % 96,820 10 % Transportation market sector 87,522 8 % 95,210 10 % Water and wastewater market sector 10,496 1 % 5,528 1 % Hospitality market sector 5,312 1 % 8,764 1 % Short duration projects (1) 108,916 10 % 82,582 9 % Service work 30,424 3 % 17,575 2 % 1,088,763 953,342 Less intersegment revenues (2,621) (1,817) Total segment revenues $ 1,086,142 $ 951,525 For the six months ended June 30, 2022 % of 2021 % of United States mechanical construction and facilities services: Commercial market sector $ 781,382 38 % $ 763,301 41 % Manufacturing market sector 304,861 15 % 239,795 13 % Healthcare market sector 247,304 12 % 234,068 12 % Institutional market sector 163,067 8 % 140,768 7 % Transportation market sector 32,299 1 % 39,121 2 % Water and wastewater market sector 129,490 6 % 88,550 5 % Hospitality market sector 16,379 1 % 19,787 1 % Short duration projects (1) 180,310 9 % 168,594 9 % Service work 216,622 10 % 192,047 10 % 2,071,714 1,886,031 Less intersegment revenues (4,897) (2,866) Total segment revenues $ 2,066,817 $ 1,883,165 ________ (1) Represents those projects which generally are completed within three months or less. For the six months ended June 30, 2022 % of 2021 % of United States building services: Mobile mechanical services $ 812,897 62 % $ 763,714 65 % Commercial site-based services 396,632 31 % 328,498 28 % Government site-based services 96,119 7 % 87,659 7 % Total segment revenues $ 1,305,648 $ 1,179,871 NOTE 3 - Revenue from Contracts with Customers (Continued) For the six months ended June 30, 2022 % of 2021 % of United States industrial services: Field services $ 518,960 87 % $ 416,351 88 % Shop services 76,325 13 % 54,194 12 % Total segment revenues $ 595,285 $ 470,545 Total United States operations $ 5,053,892 $ 4,485,106 For the six months ended June 30, 2022 % of 2021 % of United Kingdom building services: Service work $ 119,078 48 % $ 128,563 50 % Project work 126,967 52 % 128,046 50 % Total segment revenues $ 246,045 $ 256,609 Total operations $ 5,299,937 $ 4,741,715 Accounts Receivable and Allowance for Credit Losses Accounts receivable are recognized in the period we deliver goods and services to our customers or when our right to consideration is unconditional. The Company maintains an allowance for credit losses to reduce outstanding receivables to their net realizable value. A considerable amount of judgment is required when determining expected credit losses. Estimates of such losses are recorded when we believe a customer, or group of customers, may not be able to meet their financial obligations due to deterioration in financial condition or credit rating. Factors relevant to our assessment include our prior collection history with our customers, the related aging of past due balances, projections of credit losses based on historical trends in credit quality indicators or past events, and forecasts of future economic conditions. In addition to monitoring delinquent accounts, management reviews the credit quality of its receivables by, among other things, obtaining credit ratings of significant customers, assessing economic and market conditions, and evaluating material changes to a customer’s business, cash flows, and financial condition. At June 30, 2022 and December 31, 2021, our allowance for credit losses was $23.9 million and $23.5 million, respectively. The increase in our allowance for credit losses was attributable to an increase in the provision for credit losses, largely offset by the write-off of specific amounts deemed unrecoverable. We have adjusted our allowance for credit losses during the first six months of 2022 to account for the impact of changing economic conditions, including rising interest rates. Allowances for credit losses are based on the best facts available and are reassessed and adjusted on a regular basis as additional information is received. Should anticipated collections fail to materialize, or if future economic conditions compare unfavorably to our forecasts, we could experience an increase in our credit losses. The change in the allowance for credit losses for the six months ended June 30, 2022 was as follows (in thousands): Balance at December 31, 2021 $ 23,534 Provision for credit losses 1,561 Amounts written off against the allowance, net of recoveries (1,226) Balance at June 30, 2022 $ 23,869 Contract Assets and Contract Liabilities The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our construction projects when revenues recognized under the cost-to-cost measure of progress exceed the amounts invoiced to our customers, as the amounts are not yet billable 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. NOTE 3 - Revenue from Contracts with Customers (Continued) 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 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 in the accompanying Consolidated Balance Sheets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, 2021 Contract assets, current $ 264,764 $ 230,143 Contract assets, non-current — — Contract liabilities, current (925,733) (788,134) Contract liabilities, non-current (1,609) (2,505) Net contract liabilities $ (662,578) $ (560,496) The $102.1 million increase in net contract liabilities for the six months ended June 30, 2022 was primarily attributable to an increase in net contract liabilities on our uncompleted construction projects, partially as a result of the timing of invoicing to our customers, which included advanced billings on several large projects in the earlier stages of completion, resulting in amounts invoiced exceeding the revenue recognized for such projects. There was no significant impairment of contract assets recognized during the periods 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 as of June 30, 2022 (in thousands, except for percentages): June 30, % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,537,344 24 % United States mechanical construction and facilities services 3,566,879 55 % United States building services 1,070,734 17 % United States industrial services 130,763 2 % Total United States operations 6,305,720 98 % United Kingdom building services 155,412 2 % Total operations $ 6,461,132 100 % Our remaining performance obligations at June 30, 2022 were $6.46 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 the total transaction price can be made. NOTE 3 - Revenue from Contracts with Customers (Continued) 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 for these contracts as the risk of cancellation is very low due to the inherent substantial economic penalty that our customers would incur upon cancellation or termination. 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 $ 1,380,133 $ 157,211 United States mechanical construction and facilities services 2,906,302 660,577 United States building services 967,580 103,154 United States industrial services 130,763 — Total United States operations 5,384,778 920,942 United Kingdom building services 132,498 22,914 Total operations $ 5,517,276 $ 943,856 |
Acquisitions Of Businesses
Acquisitions Of Businesses | 6 Months Ended |
Jun. 30, 2022 | |
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 upon the estimated fair value of such assets and liabilities at the dates of their respective acquisition by us. During the first half of 2022, we acquired three companies, each for an immaterial amount. Two companies, the results of operations of which have been included within our United States mechanical construction and facilities services segment, provide fire protection services in the Northeastern and Southern regions of the United States, respectively. The third company, the results of operations of which have been included within our United States building services segment, specializes in building automation and controls in the Southwestern region of the United States. During calendar year 2021, we acquired eight companies for total consideration of $131.2 million. Such acquisitions include: (a) two companies, the results of operations of which have been included within our United States mechanical construction and facilities services segment, consisting of: (i) a company that provides mechanical services within the Southern region of the United States and (ii) a company that provides fire protection services in the Midwestern region of the United States, (b) two companies that provide electrical construction services for a broad array of customers in the Midwestern region of the United States, the results of operations of which have been included in our United States electrical construction and facilities services segment, and (c) four companies, the results of operations of which have been included within our United States building services segment, consisting of: (i) a company that provides mobile mechanical services across North Texas and (ii) three companies that bolster our presence in geographies where we have existing operations and provide either mobile mechanical services or building automation and controls solutions. In connection with these acquisitions, we acquired working capital of $22.9 million and other net liabilities of $0.6 million, including certain deferred tax liabilities, and have preliminarily ascribed $38.3 million to goodwill and $70.6 million to identifiable intangible assets. NOTE 4 - Acquisitions of Businesses (Continued) We expect that the majority of the goodwill acquired in connection with these acquisitions will be deductible for tax purposes. The purchase price allocations for the businesses acquired in 2022 and one of the businesses acquired in 2021 are preliminary and subject to change during their respective measurement periods. As we finalize such purchase price allocations, adjustments may be recorded relating to finalization of intangible asset valuations, tax matters, or other items. Although not expected to be significant, such adjustments may result in changes in the valuation of assets and liabilities acquired. The purchase price allocations for the other businesses acquired in 2021 have been finalized during their respective measurement periods with an insignificant impact. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Calculation of Basic and Diluted Earnings per Common Share The following tables summarize our calculation of Basic and Diluted Earnings per Common Share (“EPS”) for the three and six months ended June 30, 2022 and 2021 (in thousands, except share and per share data): For the three months ended 2022 2021 Numerator: Net income attributable to EMCOR Group, Inc. common stockholders $ 100,664 $ 97,350 Denominator: Weighted average shares outstanding used to compute basic earnings per common share 50,507,024 54,301,466 Effect of dilutive securities—Share-based awards 204,746 286,347 Shares used to compute diluted earnings per common share 50,711,770 54,587,813 Basic earnings per common share $ 1.99 $ 1.79 Diluted earnings per common share $ 1.99 $ 1.78 For the six months ended 2022 2021 Numerator: Net income attributable to EMCOR Group, Inc. common stockholders $ 174,050 $ 182,124 Denominator: Weighted average shares outstanding used to compute basic earnings per common share 51,610,014 54,594,208 Effect of dilutive securities—Share-based awards 204,150 262,551 Shares used to compute diluted earnings per common share 51,814,164 54,856,759 Basic earnings per common share $ 3.37 $ 3.34 Diluted earnings per common share $ 3.36 $ 3.32 The number of share-based awards excluded from the computation of diluted EPS for the three and six months ended June 30, 2022 because they would be anti-dilutive were 57,949 and 57,899, respectively. The number of share-based awards excluded from the computation of diluted EPS for the three and six months ended June 30, 2021 because they would be anti-dilutive were 1,500 and 14,136, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Raw materials and construction materials $ 81,961 $ 46,186 Work in process 11,503 7,912 Inventories $ 93,464 $ 54,098 The increase in inventories as of June 30, 2022, compared to December 31, 2021, was primarily a result of advanced purchases of materials and equipment for use on specific construction projects, in an effort to mitigate the impact of increased lead times, which have resulted from supply chain disruptions. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Term loan $ 256,688 $ 256,688 Unamortized debt issuance costs (2,560) (3,040) Finance lease liabilities 6,511 8,037 Total debt 260,639 261,685 Less: current maturities 15,635 16,235 Total long-term debt $ 245,004 $ 245,450 Credit Agreement We have a credit agreement dated as of March 2, 2020, which provides for a $1.3 billion revolving credit facility (the “2020 Revolving Credit Facility”) and a $300.0 million term loan (the “2020 Term Loan”) (collectively referred to as the “2020 Credit Agreement”) expiring March 2, 2025. We may increase the 2020 Revolving Credit Facility to $1.9 billion if additional lenders are identified and/or existing lenders are willing to increase their current commitments. We may allocate up to $400.0 million of available capacity under the 2020 Revolving Credit Facility to letters of credit for our account or for the account of any of our subsidiaries. At the Company’s election, borrowings under the 2020 Credit Agreement bear interest at either: (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (1.67% at June 30, 2022) plus 1.00% to 1.75%, based on certain financial tests. The base rate is determined by the greater of: (a) the prime commercial lending rate announced by Bank of Montreal from time to time (4.75% at June 30, 2022), (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%. In the event of the discontinuation of LIBOR, our 2020 Credit Agreement contains provisions which allow for the use of alternate benchmark rates. The interest rates in effect at June 30, 2022 and December 31, 2021 were 2.67% and 1.10%, respectively. A commitment fee is payable on the average daily unused amount of the 2020 Revolving Credit Facility, which ranges from 0.10% to 0.25%, based on certain financial tests. The fee was 0.10% of the unused amount as of June 30, 2022 and December 31, 2021. Fees for letters of credit issued under the 2020 Revolving Credit Facility range from 0.75% to 1.75% of the respective face amounts of outstanding letters of credit, depending on the nature of the letter of credit, and are computed based on certain financial tests. As of June 30, 2022 and December 31, 2021, the balance of the 2020 Term Loan was $256.7 million. As of June 30, 2022 and December 31, 2021, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility; however, we had $71.3 million of letters of credit outstanding, which reduce the available capacity under such facility. We capitalized an additional $3.1 million of debt issuance costs associated with the 2020 Credit Agreement. Debt issuance costs are amortized over the life of the agreement as part of interest expense. Obligations under the 2020 Credit Agreement are guaranteed by most of our direct and indirect subsidiaries and are secured by substantially all of our assets. The 2020 Credit Agreement contains various covenants providing for, among other things, the maintenance of certain financial ratios and certain limitations on the payment of dividends, common stock repurchases, investments, acquisitions, indebtedness, and capital expenditures. We were in compliance with all such covenants as of June 30, 2022 and December 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For disclosure purposes, we utilize a fair value hierarchy to categorize qualifying assets and liabilities into three broad levels based on the priority of the inputs used to determine their fair values. The hierarchy, which gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs, is comprised of the following three levels: Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs, that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Unobservable inputs that reflect the reporting entity’s own assumptions. Recurring Fair Value Measurements The following tables summarize the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): Assets at Fair Value as of June 30, 2022 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 262,370 $ — $ — $ 262,370 Restricted cash (2) 1,172 — — 1,172 Deferred compensation plan assets (3) 36,045 — — 36,045 Total $ 299,587 $ — $ — $ 299,587 Assets at Fair Value as of December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 821,345 $ — $ — $ 821,345 Restricted cash (2) 1,223 — — 1,223 Deferred compensation plan assets (3) 42,344 — — 42,344 Total $ 864,912 $ — $ — $ 864,912 ________ (1) Cash and cash equivalents consist of deposit accounts and money market funds with original maturity dates of three months or less, which are Level 1 assets. At June 30, 2022 and December 31, 2021, we had $48.7 million and $336.0 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. Nonrecurring Fair Value Measurements We have recorded goodwill and identifiable intangible assets in connection with our business acquisitions. Such assets are measured at fair value at the time of acquisition based on valuation techniques that appropriately represent the methods which would be used by other market participants in determining fair value. In addition, goodwill and intangible assets are tested for impairment using similar valuation methodologies to determine the fair value of such assets. Periodically, we engage an independent third-party valuation specialist to assist with the valuation process, including the selection of appropriate methodologies and the development of market-based assumptions. The inputs used for these nonrecurring fair value measurements represent Level 3 inputs. NOTE 8 - Fair Value Measurements (Continued) Fair Value of Financial Instruments |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents our income tax provision and our income tax rate for the three and six months ended June 30, 2022 and 2021 (in thousands, except percentages): For the three months ended For the six months ended 2022 2021 2022 2021 Income tax provision $ 36,323 $ 35,616 $ 62,774 $ 67,220 Income tax rate 26.5 % 26.8 % 26.5 % 27.0 % The difference between the U.S. statutory tax rate of 21% and our income tax rate for both the three and six months ended June 30, 2022 and 2021 was primarily a result of state and local income taxes and other permanent book-to-tax differences. The increase in our income tax provision for the three months ended June 30, 2022 was due to an increase in income before income taxes, while the decrease in our income tax provision for the six months ended June 30, 2022 was a result of a reduction in income before income taxes as well as a decrease in our income tax rate during the period. The decrease in our income tax rate for the three and six months ended June 30, 2022 was attributable to: (a) a reduction in certain permanent book-to-tax differences, (b) the favorable impact of certain discrete tax items during the first half of 2022, including an increase in the income tax benefit recognized upon the issuance of common stock under our share-based compensation programs, and (c) a reduction in our state income tax rate due to a change in the allocation of earnings among the jurisdictions in which our income is taxed. As of June 30, 2022 and December 31, 2021, we had no unrecognized income tax benefits. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock As of June 30, 2022 and December 31, 2021, there were 49,364,981 and 53,299,738 shares of our common stock outstanding, respectively. During the three months ended June 30, 2022 and 2021, we issued 76,426 and 36,044 shares of common stock, respectively. During the six months ended June 30, 2022 and 2021, we issued 171,757 and 127,287 shares of common stock, respectively. These shares were issued upon either the satisfaction of required conditions under our share-based compensation plans or 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 $0.13 per share. Subsequent to June 30, 2022, our Board of Directors (the “Board”) announced its intention to increase the regular quarterly divided to $0.15 per share commencing with the dividend to be paid in October 2022. In September 2011, the Board authorized a share repurchase program allowing us to begin repurchasing shares of our outstanding common stock. Subsequently, the Board has from time to time increased the amount authorized for repurchases under such program. Since the inception of the repurchase program, the Board has authorized us to repurchase up to $1.65 billion of our outstanding common stock. During the six months ended June 30, 2022, we repurchased approximately 4.1 million shares of our common stock for approximately $454.3 million. Since the inception of the repurchase program through June 30, 2022, we have repurchased approximately 23.3 million shares of our common stock for approximately $1.55 billion. As of June 30, 2022, there remained authorization for us to repurchase approximately $96.1 million of our shares. Subsequent to June 30, 2022, the Board authorized us to repurchase up to an additional $500.0 million of our outstanding common stock. 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 2020 Credit Agreement placing limitations on such repurchases. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The funded status of our defined benefit plans, which represents the difference between the fair value of plan assets and the projected benefit obligations, is recognized in the Consolidated Balance Sheets with a corresponding adjustment to accumulated other comprehensive income (loss). Gains and losses for the differences between actuarial assumptions and actual results are recognized through accumulated other comprehensive income (loss). These amounts will be subsequently recognized as net periodic pension cost (income) within the Consolidated Statements of Operations. 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. Amounts related to these domestic retirement plans were immaterial for all periods presented. Components of Net Periodic Pension Cost The components of net periodic pension cost (income) of the UK Plan for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): For the three months ended For the six months ended 2022 2021 2022 2021 Interest cost $ 1,452 $ 1,350 $ 2,981 $ 2,686 Expected return on plan assets (3,082) (3,223) (6,326) (6,415) Amortization of unrecognized loss 528 922 1,084 1,835 Net periodic pension cost (income) $ (1,102) $ (951) $ (2,261) $ (1,894) Employer Contributions For the six months ended June 30, 2022, our United Kingdom subsidiary contributed approximately $2.3 million to the UK Plan and anticipates contributing an additional $1.8 million during the remainder of 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Severance Agreements We have agreements with our executive officers and certain other key management personnel providing for severance benefits for such employees upon termination of their employment under certain circumstances. Guarantees In the ordinary course of business, we, at times, guarantee obligations of our subsidiaries under certain contracts. Generally, we are liable under such an arrangement only if our subsidiary fails to perform its obligations under the contract. Historically, we have not incurred any substantial liabilities as a consequence of these guarantees. Surety Bonds The terms of our construction contracts frequently require that we obtain from surety companies, and provide to our customers, surety bonds as a condition to the award of such contracts. These surety bonds are issued in return for premiums, which vary depending on the size and type of the bond, and secure our payment and performance obligations under such contracts. We have agreed to indemnify the surety companies for amounts, if any, paid by them in respect of surety bonds issued on our behalf. As of June 30, 2022, based on the percentage-of-completion of our projects covered by surety bonds, our aggregate estimated exposure, assuming defaults on all our then existing contractual obligations, was approximately $1.6 billion, which represents approximately 25% of our total remaining performance obligations. Surety bonds are sometimes provided to secure obligations for wages and benefits payable to or for certain of our employees, at the request of labor unions representing such employees. In addition, surety bonds may be issued as collateral for certain insurance obligations. As of June 30, 2022, we satisfied approximately $48.1 million of the collateral requirements of our insurance programs by utilizing surety bonds. We are not aware of any losses in connection with surety bonds that have been posted on our behalf, and we do not expect to incur significant losses in the foreseeable future. NOTE 12 - Commitments and Contingencies (continued) Hazardous Materials We are subject to regulation with respect to the handling of certain materials used in construction, which are classified as hazardous or toxic by federal, state, and local agencies. Our practice is to avoid participation in projects principally involving the remediation or removal of such materials. However, when remediation is required as part of our contract performance, we believe we comply with all applicable regulations governing the discharge of hazardous materials into the environment or otherwise relating to the protection of the environment. Government Contracts As a government contractor, we are subject to U.S. government audits and investigations relating to our operations, which such audits may result in 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. We do not believe that any such matters will have a material adverse effect on our financial position, results of operations, or liquidity. We record a loss contingency if the potential loss from a proceeding or claim is considered probable and the amount can be reasonably estimated or a range of loss can be determined. We provide disclosure when it is reasonably possible that a loss will be incurred in excess of any recorded provision. Significant judgment is required in these determinations. As additional information becomes available, we reassess prior determinations and may change our estimates. Additional claims may be asserted against us in the future. Litigation is subject to many uncertainties, and the outcome of litigation is not predictable with assurance. It is possible that a litigation matter for which liabilities have not been recorded could be decided unfavorably to us, and that any such unfavorable decision could have a material adverse effect on our financial position, results of operations, or liquidity. Insurance Liabilities We have loss payment deductibles for certain workers’ compensation, automobile liability, general liability, and property claims, have self-insured retentions for certain other casualty claims, and are self-insured for employee-related healthcare claims. In addition, we maintain a wholly-owned captive insurance subsidiary to manage certain of our insurance liabilities. Losses are recorded based upon estimates of our liability for claims incurred and for claims incurred but not reported. The liabilities are derived from known facts, historical trends, and industry averages, utilizing the assistance of an independent third-party actuary to determine the best estimate for the majority of these obligations. As of June 30, 2022 and December 31, 2021, the estimated current portion of such undiscounted insurance liabilities, included in “Other accrued expenses and liabilities” in the accompanying Consolidated Balance Sheets, were $53.2 million and $61.5 million, respectively. The estimated non-current portion of such undiscounted insurance liabilities included in “Other long-term obligations” as of June 30, 2022 and December 31, 2021 were $213.0 million and $242.4 million, respectively. The current portion of anticipated insurance recoveries of $15.8 million and $26.4 million as of June 30, 2022 and December 31, 2021, respectively, were included in “Prepaid expenses and other” and the non-current portion of anticipated insurance recoveries of $57.6 million and $99.0 million as of June 30, 2022 and December 31, 2021, respectively, were included in “Other assets” in the accompanying Consolidated Balance Sheets. These balances decreased from December 31, 2021 as a result of the payment, by our insurers, of certain claims for which we previously maintained a reserve and corresponding insurance receivable. |
Additional Cash Flow
Additional Cash Flow | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Cash Flow Information | Additional Cash Flow Information The following table presents additional cash flow information for the six months ended June 30, 2022 and 2021 (in thousands): For the six months ended 2022 2021 Cash paid for: Interest $ 3,096 $ 2,634 Income taxes $ 103,560 $ 85,339 Right-of-use assets obtained in exchange for new operating lease liabilities $ 43,183 $ 32,938 Right-of-use assets obtained in exchange for new finance lease liabilities $ 576 $ 1,321 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are one of the largest specialty contractors in the United States and a leading provider of electrical and mechanical construction and facilities services, building services, and industrial services. Our services are provided to a broad range of commercial, industrial, utility, and institutional customers through approximately 90 operating subsidiaries, which specialize principally in providing construction services relating to electrical and mechanical systems in all types of facilities and in providing various services relating to the operation, maintenance, and management of those facilities. Such operating subsidiaries are organized into the following reportable segments: • United States electrical construction and facilities services; • United States mechanical construction and facilities services; • United States building services; • United States industrial services; and • United Kingdom building services. For a more complete description of our operations, refer to Item 1. Business of our Form 10-K for the year ended December 31, 2021. Our reportable segments and related disclosures reflect certain reclassifications of prior year amounts from our United States mechanical construction and facilities services segment to our United States building services segment, and from our United States building services segment to our United States construction segments, due to changes in our internal reporting structure aimed at realigning our service offerings. NOTE 14 - Segment Information (continued) The following tables present financial information for each of our reportable segments for the three and six months ended June 30, 2022 and 2021 (in thousands): For the three months ended 2022 2021 Revenues from unrelated entities: United States electrical construction and facilities services $ 564,112 $ 492,130 United States mechanical construction and facilities services 1,066,347 968,664 United States building services 677,847 611,835 United States industrial services 284,534 235,163 Total United States operations 2,592,840 2,307,792 United Kingdom building services 114,548 129,874 Total operations $ 2,707,388 $ 2,437,666 Total revenues: United States electrical construction and facilities services $ 566,029 $ 492,814 United States mechanical construction and facilities services 1,073,623 971,215 United States building services 702,829 636,978 United States industrial services 287,440 252,444 Less intersegment revenues (37,081) (45,659) Total United States operations 2,592,840 2,307,792 United Kingdom building services 114,548 129,874 Total operations $ 2,707,388 $ 2,437,666 For the six months ended 2022 2021 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,086,142 $ 951,525 United States mechanical construction and facilities services 2,066,817 1,883,165 United States building services 1,305,648 1,179,871 United States industrial services 595,285 470,545 Total United States operations 5,053,892 4,485,106 United Kingdom building services 246,045 256,609 Total operations $ 5,299,937 $ 4,741,715 Total revenues: United States electrical construction and facilities services 1,089,443 953,589 United States mechanical construction and facilities services 2,078,479 1,887,937 United States building services 1,355,060 1,227,423 United States industrial services 611,941 498,372 Less intersegment revenues (81,031) (82,215) Total United States operations 5,053,892 4,485,106 United Kingdom building services 246,045 256,609 Total operations $ 5,299,937 $ 4,741,715 NOTE 14 - Segment Information (continued) For the three months ended 2022 2021 Operating income (loss): United States electrical construction and facilities services $ 35,095 $ 43,012 United States mechanical construction and facilities services 76,945 76,724 United States building services 38,161 32,538 United States industrial services 6,458 (208) Total United States operations 156,659 152,066 United Kingdom building services 6,415 7,047 Corporate administration (25,430) (25,755) Total operations 137,644 133,358 Other items: Net periodic pension (cost) income 1,094 922 Interest expense, net (1,751) (1,316) Income before income taxes $ 136,987 $ 132,964 For the six months ended 2022 2021 Operating income (loss): United States electrical construction and facilities services $ 55,088 $ 83,264 United States mechanical construction and facilities services 135,619 139,900 United States building services 62,083 63,658 United States industrial services 19,716 (2,651) Total United States operations 272,506 284,171 United Kingdom building services 17,003 16,458 Corporate administration (51,908) (50,267) Total operations 237,601 250,362 Other items: Net periodic pension (cost) income 2,263 1,830 Interest expense, net (3,040) (2,679) Income before income taxes $ 236,824 $ 249,513 June 30, December 31, Total assets: United States electrical construction and facilities services $ 921,152 $ 855,417 United States mechanical construction and facilities services 1,800,072 1,672,546 United States building services 1,193,169 1,089,844 United States industrial services 614,110 589,017 Total United States operations 4,528,503 4,206,824 United Kingdom building services 241,792 241,740 Corporate administration 376,149 992,882 Total operations $ 5,146,444 $ 5,441,446 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Policy) | 6 Months Ended |
Jun. 30, 2022 | |
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 we expect 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) collectability 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 collectability 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. NOTE 3 - Revenue from Contracts with Customers (Continued) 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 six months ended June 30, 2022 and 2021, there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. In addition, for the three and six months ended June 30, 2022 and 2021, there were no significant reversals of revenue recognized associated with the revision of transaction prices. NOTE 3 - Revenue from Contracts with Customers (Continued) (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 number 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. |
Accounts Receivable and Allowance for Credit Losses | Accounts receivable are recognized in the period we deliver goods and services to our customers or when our right to consideration is unconditional. The Company maintains an allowance for credit losses to reduce outstanding receivables to their net realizable value. A considerable amount of judgment is required when determining expected credit losses. Estimates of such losses are recorded when we believe a customer, or group of customers, may not be able to meet their financial obligations due to deterioration in financial condition or credit rating. Factors relevant to our assessment include our prior collection history with our customers, the related aging of past due balances, projections of credit losses based on historical trends in credit quality indicators or past events, and forecasts of future economic conditions. In addition to monitoring delinquent accounts, management reviews the credit quality of its receivables by, among other things, obtaining credit ratings of significant customers, assessing economic and market conditions, and evaluating material changes to a customer’s business, cash flows, and financial condition. |
Fair Value Measurements (Policy
Fair Value Measurements (Policy) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | For disclosure purposes, we utilize a fair value hierarchy to categorize qualifying assets and liabilities into three broad levels based on the priority of the inputs used to determine their fair values. The hierarchy, which gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs, is comprised of the following three levels: Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs, that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Unobservable inputs that reflect the reporting entity’s own assumptions. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance Liabilities | Insurance LiabilitiesWe have loss payment deductibles for certain workers’ compensation, automobile liability, general liability, and property claims, have self-insured retentions for certain other casualty claims, and are self-insured for employee-related healthcare claims. In addition, we maintain a wholly-owned captive insurance subsidiary to manage certain of our insurance liabilities. Losses are recorded based upon estimates of our liability for claims incurred and for claims incurred but not reported. The liabilities are derived from known facts, historical trends, and industry averages, utilizing the assistance of an independent third-party actuary to determine the best estimate for the majority of these obligations. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 and 2021 (in thousands): For the three months ended June 30, 2022 % of 2021 % of United States electrical construction and facilities services: Commercial market sector $ 299,206 53 % $ 254,456 51 % Manufacturing market sector 65,304 11 % 52,114 10 % Healthcare market sector 43,278 8 % 25,847 5 % Institutional market sector 37,689 7 % 53,181 11 % Transportation market sector 42,440 7 % 53,179 11 % Water and wastewater market sector 5,184 1 % 1,877 1 % Hospitality market sector 2,689 1 % 4,100 1 % Short duration projects (1) 52,868 9 % 38,173 8 % Service work 17,095 3 % 9,810 2 % 565,753 492,737 Less intersegment revenues (1,641) (607) Total segment revenues $ 564,112 $ 492,130 ________ (1) Represents those projects which generally are completed within three months or less. NOTE 3 - Revenue from Contracts with Customers (Continued) For the three months ended June 30, 2022 % of 2021 % of United States mechanical construction and facilities services: Commercial market sector $ 401,778 38 % $ 396,824 41 % Manufacturing market sector 155,290 14 % 118,109 12 % Healthcare market sector 127,253 12 % 121,412 13 % Institutional market sector 92,440 9 % 71,464 7 % Transportation market sector 16,246 1 % 20,704 2 % Water and wastewater market sector 67,746 6 % 44,702 5 % Hospitality market sector 8,300 1 % 11,258 1 % Short duration projects (1) 85,216 8 % 81,829 8 % Service work 114,707 11 % 103,557 11 % 1,068,976 969,859 Less intersegment revenues (2,629) (1,195) Total segment revenues $ 1,066,347 $ 968,664 ________ (1) Represents those projects which generally are completed within three months or less. For the three months ended June 30, 2022 % of 2021 % of United States building services: Mobile mechanical services $ 439,326 65 % $ 412,397 67 % Commercial site-based services 193,082 28 % 152,851 25 % Government site-based services 45,439 7 % 46,587 8 % Total segment revenues $ 677,847 $ 611,835 For the three months ended June 30, 2022 % of 2021 % of United States industrial services: Field services $ 247,542 87 % $ 208,797 89 % Shop services 36,992 13 % 26,366 11 % Total segment revenues $ 284,534 $ 235,163 Total United States operations $ 2,592,840 $ 2,307,792 For the three months ended June 30, 2022 % of 2021 % of United Kingdom building services: Service work $ 54,261 47 % $ 66,572 51 % Project work 60,287 53 % 63,302 49 % Total segment revenues $ 114,548 $ 129,874 Total operations $ 2,707,388 $ 2,437,666 NOTE 3 - Revenue from Contracts with Customers (Continued) For the six months ended June 30, 2022 % of 2021 % of United States electrical construction and facilities services: Commercial market sector $ 569,521 52 % $ 500,297 52 % Manufacturing market sector 131,769 12 % 100,568 10 % Healthcare market sector 75,348 7 % 45,998 5 % Institutional market sector 69,455 6 % 96,820 10 % Transportation market sector 87,522 8 % 95,210 10 % Water and wastewater market sector 10,496 1 % 5,528 1 % Hospitality market sector 5,312 1 % 8,764 1 % Short duration projects (1) 108,916 10 % 82,582 9 % Service work 30,424 3 % 17,575 2 % 1,088,763 953,342 Less intersegment revenues (2,621) (1,817) Total segment revenues $ 1,086,142 $ 951,525 For the six months ended June 30, 2022 % of 2021 % of United States mechanical construction and facilities services: Commercial market sector $ 781,382 38 % $ 763,301 41 % Manufacturing market sector 304,861 15 % 239,795 13 % Healthcare market sector 247,304 12 % 234,068 12 % Institutional market sector 163,067 8 % 140,768 7 % Transportation market sector 32,299 1 % 39,121 2 % Water and wastewater market sector 129,490 6 % 88,550 5 % Hospitality market sector 16,379 1 % 19,787 1 % Short duration projects (1) 180,310 9 % 168,594 9 % Service work 216,622 10 % 192,047 10 % 2,071,714 1,886,031 Less intersegment revenues (4,897) (2,866) Total segment revenues $ 2,066,817 $ 1,883,165 ________ (1) Represents those projects which generally are completed within three months or less. For the six months ended June 30, 2022 % of 2021 % of United States building services: Mobile mechanical services $ 812,897 62 % $ 763,714 65 % Commercial site-based services 396,632 31 % 328,498 28 % Government site-based services 96,119 7 % 87,659 7 % Total segment revenues $ 1,305,648 $ 1,179,871 NOTE 3 - Revenue from Contracts with Customers (Continued) For the six months ended June 30, 2022 % of 2021 % of United States industrial services: Field services $ 518,960 87 % $ 416,351 88 % Shop services 76,325 13 % 54,194 12 % Total segment revenues $ 595,285 $ 470,545 Total United States operations $ 5,053,892 $ 4,485,106 For the six months ended June 30, 2022 % of 2021 % of United Kingdom building services: Service work $ 119,078 48 % $ 128,563 50 % Project work 126,967 52 % 128,046 50 % Total segment revenues $ 246,045 $ 256,609 Total operations $ 5,299,937 $ 4,741,715 |
Accounts Receivable, Allowance for Credit Losses | The change in the allowance for credit losses for the six months ended June 30, 2022 was as follows (in thousands): Balance at December 31, 2021 $ 23,534 Provision for credit losses 1,561 Amounts written off against the allowance, net of recoveries (1,226) Balance at June 30, 2022 $ 23,869 |
Contract Assets and Contract Liabilities | Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, 2021 Contract assets, current $ 264,764 $ 230,143 Contract assets, non-current — — Contract liabilities, current (925,733) (788,134) Contract liabilities, non-current (1,609) (2,505) Net contract liabilities $ (662,578) $ (560,496) |
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 as of June 30, 2022 (in thousands, except for percentages): June 30, % of Total Remaining performance obligations: United States electrical construction and facilities services $ 1,537,344 24 % United States mechanical construction and facilities services 3,566,879 55 % United States building services 1,070,734 17 % United States industrial services 130,763 2 % Total United States operations 6,305,720 98 % United Kingdom building services 155,412 2 % Total operations $ 6,461,132 100 % |
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 $ 1,380,133 $ 157,211 United States mechanical construction and facilities services 2,906,302 660,577 United States building services 967,580 103,154 United States industrial services 130,763 — Total United States operations 5,384,778 920,942 United Kingdom building services 132,498 22,914 Total operations $ 5,517,276 $ 943,856 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Common Share | The following tables summarize our calculation of Basic and Diluted Earnings per Common Share (“EPS”) for the three and six months ended June 30, 2022 and 2021 (in thousands, except share and per share data): For the three months ended 2022 2021 Numerator: Net income attributable to EMCOR Group, Inc. common stockholders $ 100,664 $ 97,350 Denominator: Weighted average shares outstanding used to compute basic earnings per common share 50,507,024 54,301,466 Effect of dilutive securities—Share-based awards 204,746 286,347 Shares used to compute diluted earnings per common share 50,711,770 54,587,813 Basic earnings per common share $ 1.99 $ 1.79 Diluted earnings per common share $ 1.99 $ 1.78 For the six months ended 2022 2021 Numerator: Net income attributable to EMCOR Group, Inc. common stockholders $ 174,050 $ 182,124 Denominator: Weighted average shares outstanding used to compute basic earnings per common share 51,610,014 54,594,208 Effect of dilutive securities—Share-based awards 204,150 262,551 Shares used to compute diluted earnings per common share 51,814,164 54,856,759 Basic earnings per common share $ 3.37 $ 3.34 Diluted earnings per common share $ 3.36 $ 3.32 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Raw materials and construction materials $ 81,961 $ 46,186 Work in process 11,503 7,912 Inventories $ 93,464 $ 54,098 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Term loan $ 256,688 $ 256,688 Unamortized debt issuance costs (2,560) (3,040) Finance lease liabilities 6,511 8,037 Total debt 260,639 261,685 Less: current maturities 15,635 16,235 Total long-term debt $ 245,004 $ 245,450 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis | The following tables summarize the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): Assets at Fair Value as of June 30, 2022 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 262,370 $ — $ — $ 262,370 Restricted cash (2) 1,172 — — 1,172 Deferred compensation plan assets (3) 36,045 — — 36,045 Total $ 299,587 $ — $ — $ 299,587 Assets at Fair Value as of December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 821,345 $ — $ — $ 821,345 Restricted cash (2) 1,223 — — 1,223 Deferred compensation plan assets (3) 42,344 — — 42,344 Total $ 864,912 $ — $ — $ 864,912 ________ (1) Cash and cash equivalents consist of deposit accounts and money market funds with original maturity dates of three months or less, which are Level 1 assets. At June 30, 2022 and December 31, 2021, we had $48.7 million and $336.0 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 (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The following table presents our income tax provision and our income tax rate for the three and six months ended June 30, 2022 and 2021 (in thousands, except percentages): For the three months ended For the six months ended 2022 2021 2022 2021 Income tax provision $ 36,323 $ 35,616 $ 62,774 $ 67,220 Income tax rate 26.5 % 26.8 % 26.5 % 27.0 % |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Pension Cost (Income) | The components of net periodic pension cost (income) of the UK Plan for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): For the three months ended For the six months ended 2022 2021 2022 2021 Interest cost $ 1,452 $ 1,350 $ 2,981 $ 2,686 Expected return on plan assets (3,082) (3,223) (6,326) (6,415) Amortization of unrecognized loss 528 922 1,084 1,835 Net periodic pension cost (income) $ (1,102) $ (951) $ (2,261) $ (1,894) |
Additional Cash Flow Informatio
Additional Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents additional cash flow information for the six months ended June 30, 2022 and 2021 (in thousands): For the six months ended 2022 2021 Cash paid for: Interest $ 3,096 $ 2,634 Income taxes $ 103,560 $ 85,339 Right-of-use assets obtained in exchange for new operating lease liabilities $ 43,183 $ 32,938 Right-of-use assets obtained in exchange for new finance lease liabilities $ 576 $ 1,321 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | The following tables present financial information for each of our reportable segments for the three and six months ended June 30, 2022 and 2021 (in thousands): For the three months ended 2022 2021 Revenues from unrelated entities: United States electrical construction and facilities services $ 564,112 $ 492,130 United States mechanical construction and facilities services 1,066,347 968,664 United States building services 677,847 611,835 United States industrial services 284,534 235,163 Total United States operations 2,592,840 2,307,792 United Kingdom building services 114,548 129,874 Total operations $ 2,707,388 $ 2,437,666 Total revenues: United States electrical construction and facilities services $ 566,029 $ 492,814 United States mechanical construction and facilities services 1,073,623 971,215 United States building services 702,829 636,978 United States industrial services 287,440 252,444 Less intersegment revenues (37,081) (45,659) Total United States operations 2,592,840 2,307,792 United Kingdom building services 114,548 129,874 Total operations $ 2,707,388 $ 2,437,666 For the six months ended 2022 2021 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,086,142 $ 951,525 United States mechanical construction and facilities services 2,066,817 1,883,165 United States building services 1,305,648 1,179,871 United States industrial services 595,285 470,545 Total United States operations 5,053,892 4,485,106 United Kingdom building services 246,045 256,609 Total operations $ 5,299,937 $ 4,741,715 Total revenues: United States electrical construction and facilities services 1,089,443 953,589 United States mechanical construction and facilities services 2,078,479 1,887,937 United States building services 1,355,060 1,227,423 United States industrial services 611,941 498,372 Less intersegment revenues (81,031) (82,215) Total United States operations 5,053,892 4,485,106 United Kingdom building services 246,045 256,609 Total operations $ 5,299,937 $ 4,741,715 NOTE 14 - Segment Information (continued) For the three months ended 2022 2021 Operating income (loss): United States electrical construction and facilities services $ 35,095 $ 43,012 United States mechanical construction and facilities services 76,945 76,724 United States building services 38,161 32,538 United States industrial services 6,458 (208) Total United States operations 156,659 152,066 United Kingdom building services 6,415 7,047 Corporate administration (25,430) (25,755) Total operations 137,644 133,358 Other items: Net periodic pension (cost) income 1,094 922 Interest expense, net (1,751) (1,316) Income before income taxes $ 136,987 $ 132,964 For the six months ended 2022 2021 Operating income (loss): United States electrical construction and facilities services $ 55,088 $ 83,264 United States mechanical construction and facilities services 135,619 139,900 United States building services 62,083 63,658 United States industrial services 19,716 (2,651) Total United States operations 272,506 284,171 United Kingdom building services 17,003 16,458 Corporate administration (51,908) (50,267) Total operations 237,601 250,362 Other items: Net periodic pension (cost) income 2,263 1,830 Interest expense, net (3,040) (2,679) Income before income taxes $ 236,824 $ 249,513 June 30, December 31, Total assets: United States electrical construction and facilities services $ 921,152 $ 855,417 United States mechanical construction and facilities services 1,800,072 1,672,546 United States building services 1,193,169 1,089,844 United States industrial services 614,110 589,017 Total United States operations 4,528,503 4,206,824 United Kingdom building services 241,792 241,740 Corporate administration 376,149 992,882 Total operations $ 5,146,444 $ 5,441,446 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue From Contract With Customers [Line Items] | |||||
Performance obligation satisfied in previous period | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in estimate of transaction price | 0 | 0 | 0 | 0 | |
Change in total estimated cost | 11,800,000 | $ 0 | 23,800,000 | $ 0 | |
Allowance for credit losses | 23,869,000 | 23,869,000 | $ 23,534,000 | ||
Increase in net contract liabilities | 102,100,000 | ||||
Contract asset impairment | 0 | $ 0 | |||
Remaining performance obligations | 6,461,132,000 | 6,461,132,000 | |||
Minimum [Member] | |||||
Revenue From Contract With Customers [Line Items] | |||||
Change in total estimated cost | 1,000,000 | ||||
United States Electrical Construction And Facilities Services [Member] | |||||
Revenue From Contract With Customers [Line Items] | |||||
Change in total estimated cost | 7,700,000 | 14,300,000 | |||
United States Mechanical Construction And Facilities Services [Member] | |||||
Revenue From Contract With Customers [Line Items] | |||||
Change in total estimated cost | $ 4,100,000 | $ 9,500,000 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 2,707,388 | $ 2,437,666 | $ 5,299,937 | $ 4,741,715 | |
UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 2,592,840 | 2,307,792 | 5,053,892 | 4,485,106 | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 564,112 | 492,130 | 1,086,142 | 951,525 | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 565,753 | 492,737 | 1,088,763 | 953,342 | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Commercial Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 299,206 | $ 254,456 | $ 569,521 | $ 500,297 | |
Percent of individual segment | 53% | 51% | 52% | 52% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Manufacturing Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 65,304 | $ 52,114 | $ 131,769 | $ 100,568 | |
Percent of individual segment | 11% | 10% | 12% | 10% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Healthcare Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 43,278 | $ 25,847 | $ 75,348 | $ 45,998 | |
Percent of individual segment | 8% | 5% | 7% | 5% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Institutional Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 37,689 | $ 53,181 | $ 69,455 | $ 96,820 | |
Percent of individual segment | 7% | 11% | 6% | 10% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Transportation Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 42,440 | $ 53,179 | $ 87,522 | $ 95,210 | |
Percent of individual segment | 7% | 11% | 8% | 10% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Water and Wastewater Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 5,184 | $ 1,877 | $ 10,496 | $ 5,528 | |
Percent of individual segment | 1% | 1% | 1% | 1% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Hospitality Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 2,689 | $ 4,100 | $ 5,312 | $ 8,764 | |
Percent of individual segment | 1% | 1% | 1% | 1% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Short Duration Projects [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | [1] | $ 52,868 | $ 38,173 | $ 108,916 | $ 82,582 |
Percent of individual segment | 9% | 8% | 10% | 9% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Service Work [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 17,095 | $ 9,810 | $ 30,424 | $ 17,575 | |
Percent of individual segment | 3% | 2% | 3% | 2% | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | Intersegment Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ (1,641) | $ (607) | $ (2,621) | $ (1,817) | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 1,066,347 | 968,664 | 2,066,817 | 1,883,165 | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 1,068,976 | 969,859 | 2,071,714 | 1,886,031 | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Commercial Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 401,778 | $ 396,824 | $ 781,382 | $ 763,301 | |
Percent of individual segment | 38% | 41% | 38% | 41% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Manufacturing Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 155,290 | $ 118,109 | $ 304,861 | $ 239,795 | |
Percent of individual segment | 14% | 12% | 15% | 13% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Healthcare Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 127,253 | $ 121,412 | $ 247,304 | $ 234,068 | |
Percent of individual segment | 12% | 13% | 12% | 12% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Institutional Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 92,440 | $ 71,464 | $ 163,067 | $ 140,768 | |
Percent of individual segment | 9% | 7% | 8% | 7% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Transportation Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 16,246 | $ 20,704 | $ 32,299 | $ 39,121 | |
Percent of individual segment | 1% | 2% | 1% | 2% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Water and Wastewater Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 67,746 | $ 44,702 | $ 129,490 | $ 88,550 | |
Percent of individual segment | 6% | 5% | 6% | 5% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Hospitality Market Sector [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 8,300 | $ 11,258 | $ 16,379 | $ 19,787 | |
Percent of individual segment | 1% | 1% | 1% | 1% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Short Duration Projects [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | [1] | $ 85,216 | $ 81,829 | $ 180,310 | $ 168,594 |
Percent of individual segment | 8% | 8% | 9% | 9% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Operating Segments [Member] | Service Work [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 114,707 | $ 103,557 | $ 216,622 | $ 192,047 | |
Percent of individual segment | 11% | 11% | 10% | 10% | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | Intersegment Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ (2,629) | $ (1,195) | $ (4,897) | $ (2,866) | |
United States Building Services [Member] | UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | 677,847 | 611,835 | 1,305,648 | 1,179,871 | |
United States Building Services [Member] | UNITED STATES | Mobile Mechanical Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 439,326 | $ 412,397 | $ 812,897 | $ 763,714 | |
Percent of individual segment | 65% | 67% | 62% | 65% | |
United States Building Services [Member] | UNITED STATES | Commercial Site-Based Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 193,082 | $ 152,851 | $ 396,632 | $ 328,498 | |
Percent of individual segment | 28% | 25% | 31% | 28% | |
United States Building Services [Member] | UNITED STATES | Government Site-Based Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 45,439 | $ 46,587 | $ 96,119 | $ 87,659 | |
Percent of individual segment | 7% | 8% | 7% | 7% | |
United States Industrial Services [Member] | UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 284,534 | $ 235,163 | $ 595,285 | $ 470,545 | |
United States Industrial Services [Member] | UNITED STATES | Field Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 247,542 | $ 208,797 | $ 518,960 | $ 416,351 | |
Percent of individual segment | 87% | 89% | 87% | 88% | |
United States Industrial Services [Member] | UNITED STATES | Shop Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 36,992 | $ 26,366 | $ 76,325 | $ 54,194 | |
Percent of individual segment | 13% | 11% | 13% | 12% | |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 114,548 | $ 129,874 | $ 246,045 | $ 256,609 | |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | Service Work [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 54,261 | $ 66,572 | $ 119,078 | $ 128,563 | |
Percent of individual segment | 47% | 51% | 48% | 50% | |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | Project Work [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from unrelated entities | $ 60,287 | $ 63,302 | $ 126,967 | $ 128,046 | |
Percent of individual segment | 53% | 49% | 52% | 50% | |
[1]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 Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ 23,869 | $ 23,534 |
Provision for credit losses | 1,561 | |
Amounts written off against the allowance, net of recoveries | $ (1,226) |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current | $ 264,764 | $ 230,143 |
Contract assets, non-current | 0 | 0 |
Contract liabilities, current | (925,733) | (788,134) |
Contract liabilities, non-current | (1,609) | (2,505) |
Net contract liabilities | $ (662,578) | $ (560,496) |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Schedule of Revenue, Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 6,461,132 |
Remaining performance obligations, percent | 100% |
UNITED STATES | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 6,305,720 |
Remaining performance obligations, percent | 98% |
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,537,344 |
Remaining performance obligations, percent | 24% |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 3,566,879 |
Remaining performance obligations, percent | 55% |
UNITED STATES | United States Building Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,070,734 |
Remaining performance obligations, percent | 17% |
UNITED STATES | United States Industrial Services [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 130,763 |
Remaining performance obligations, percent | 2% |
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 155,412 |
Remaining performance obligations, percent | 2% |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Schedule of Revenue. Remaining Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 6,461,132 |
UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 6,305,720 |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,537,344 |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 3,566,879 |
United States Building Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,070,734 |
United States Industrial Services [Member] | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 130,763 |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 155,412 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 5,517,276 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 5,384,778 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 1,380,133 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 2,906,302 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 967,580 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 130,763 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | 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 | $ 132,498 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 943,856 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 920,942 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | 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 | |
Remaining performance obligations | $ 157,211 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | 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 | |
Remaining performance obligations | $ 660,577 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | 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 | |
Remaining performance obligations | $ 103,154 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | 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 | |
Remaining performance obligations | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | 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 | |
Remaining performance obligations | $ 22,914 |
Acquisitions Of Businesses (Det
Acquisitions Of Businesses (Details) $ in Thousands | 12 Months Ended | ||||
Jun. 06, 2022 Company | Apr. 04, 2022 Company | Mar. 11, 2022 Company | Dec. 31, 2021 USD ($) Company | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of businesses acquired | Company | 1 | 1 | 1 | 8 | |
Goodwill | $ 890,268 | $ 901,208 | |||
2021 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 131,200 | ||||
Working capital acquired | 22,900 | ||||
Other net liabilities | 600 | ||||
Goodwill | 38,300 | ||||
Identifiable intangible assets | $ 70,600 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator | ||||
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars) | $ 100,664 | $ 97,350 | $ 174,050 | $ 182,124 |
Denominator | ||||
Weighted average shares outstanding used to compute basic earnings per common share (in shares) | 50,507,024 | 54,301,466 | 51,610,014 | 54,594,208 |
Effect of dilutive securities-Share-based awards (in shares) | 204,746 | 286,347 | 204,150 | 262,551 |
Shares used to compute diluted earnings per common share (in shares) | 50,711,770 | 54,587,813 | 51,814,164 | 54,856,759 |
Basic earnings per common share (in US dollars per share) | $ 1.99 | $ 1.79 | $ 3.37 | $ 3.34 |
Diluted earnings per common share (in US dollars per share) | $ 1.99 | $ 1.78 | $ 3.36 | $ 3.32 |
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) | 57,949 | 1,500 | 57,899 | 14,136 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 81,961 | $ 46,186 |
Work in process | 11,503 | 7,912 |
Inventories | $ 93,464 | $ 54,098 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Mar. 02, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||
Interest rate description | At the Company’s election, borrowings under the 2020 Credit Agreement bear interest at either: (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (1.67% at June 30, 2022) plus 1.00% to 1.75%, based on certain financial tests. The base rate is determined by the greater of: (a) the prime commercial lending rate announced by Bank of Montreal from time to time (4.75% at June 30, 2022), (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%. In the event of the discontinuation of LIBOR, our 2020 Credit Agreement contains provisions which allow for the use of alternate benchmark rates. The interest rates in effect at June 30, 2022 and December 31, 2021 were 2.67% and 1.10%, respectively. A commitment fee is payable on the average daily unused amount of the 2020 Revolving Credit Facility, which ranges from 0.10% to 0.25%, based on certain financial tests. The fee was 0.10% of the unused amount as of June 30, 2022 and December 31, 2021. Fees for letters of credit issued under the 2020 Revolving Credit Facility range from 0.75% to 1.75% of the respective face amounts of outstanding letters of credit, depending on the nature of the letter of credit, and are computed based on certain financial tests. | |||
Letters of credit outstanding (in US dollars) | $ 71,300,000 | $ 71,300,000 | ||
2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Credit agreement, initiation date | Mar. 02, 2020 | |||
Expiration date of credit agreement | Mar. 02, 2025 | |||
Interest rate | 2.67% | 1.10% | ||
Debt issuance costs | $ 3,100,000 | |||
2020 Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Borrowings under revolving credit facility (in US dollars) | $ 0 | $ 0 | ||
2020 Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Term Loan (in US dollars) | 300,000,000 | $ 256,688,000 | $ 256,688,000 | |
2020 Term Loan | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Term loan, annual principal payments (in US dollars) | $ 13,900,000 | |||
Base Rate [Member] | Minimum [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0% | |||
Base Rate [Member] | Maximum [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Prime Rate, Bank of Montreal [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Commercial lending rate | 4.75% | |||
Credit Agreement Base Rate, Daily One Month LIBOR Rate [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1% | |||
London Interbank Offered Rate (LIBOR) [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Commercial lending rate | 1.67% | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Credit Agreement Base Rate, Federal Funds Rate [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Credit Agreement, 0% Base Rate [Member] | 2020 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0% | |||
Revolving Credit Facility [Member] | 2020 Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 1,300,000,000 | |||
Increase in borrowing capacity (in US dollars) | $ 1,900,000,000 | |||
Letters of credit maximum borrowing capacity (in US dollars) | $ 400,000,000 | |||
Commitment fee percentage of unused amount | 0.10% | 0.10% | ||
Revolving Credit Facility [Member] | Minimum [Member] | 2020 Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage of unused amount | 0.10% | |||
Letter of credit fees | 0.75% | |||
Revolving Credit Facility [Member] | Maximum [Member] | 2020 Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage of unused amount | 0.25% | |||
Letter of credit fees | 1.75% |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Mar. 02, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (2,560,000) | $ (3,040,000) | |
Finance lease liabilities | 6,511,000 | 8,037,000 | |
Total debt | 260,639,000 | 261,685,000 | |
Less: current maturities | 15,635,000 | 16,235,000 | |
Total long-term debt | 245,004,000 | 245,450,000 | |
2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan | $ 256,688,000 | $ 256,688,000 | $ 300,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash | $ 1,200 | $ 1,200 | $ 900 | $ 700 | |
Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 262,370 | 821,345 | ||
Restricted cash | [2] | 1,172 | 1,223 | ||
Deferred compensation plan assets | [3] | 36,045 | 42,344 | ||
Total | 299,587 | 864,912 | |||
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] | 262,370 | 821,345 | ||
Restricted cash | [2] | 1,172 | 1,223 | ||
Deferred compensation plan assets | [3] | 36,045 | 42,344 | ||
Total | 299,587 | 864,912 | |||
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 | $ 48,700 | $ 336,000 | |||
[1]Cash and cash equivalents consist of deposit accounts and money market funds with original maturity dates of three months or less, which are Level 1 assets. At June 30, 2022 and December 31, 2021, we had $48.7 million and $336.0 million, respectively, in money market funds.[2]Restricted cash is classified as “Prepaid expenses and other” in the Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts.[3]Deferred compensation plan assets are classified as “Other assets” in the Consolidated Balance Sheets. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Federal income tax rate, percent | 21% | |
Unrecognized income tax benefits | $ 0 | $ 0 |
- Schedule of Income Tax Provis
- Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision | $ 36,323 | $ 35,616 | $ 62,774 | $ 67,220 |
Income tax rate | 26.50% | 26.80% | 26.50% | 27% |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 249 Months Ended | ||||
Jul. 26, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock, outstanding | 49,364,981 | 49,364,981 | 49,364,981 | 53,299,738 | |||
Common stock, issued | 76,426 | 36,044 | 171,757 | 127,287 | |||
Common stock, dividend, per share (in dollars per share) | $ 0.13 | ||||||
Stock repurchase, authorized amount (in US dollars) | $ 1,650,000,000 | $ 1,650,000,000 | $ 1,650,000,000 | ||||
Number of shares repurchased | 4,100,000 | 23,300,000 | |||||
Stock repurchased (in US dollars) | 272,507,000 | $ 125,113,000 | $ 454,317,000 | $ 138,030,000 | $ 1,550,000,000 | ||
Remaining authorized repurchase amount (in US dollars) | $ 96,100,000 | $ 96,100,000 | $ 96,100,000 | ||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in quarterly dividend (in dollars per share) | $ 0.15 | ||||||
Stock repurchase, authorized amount (in US dollars) | $ 500,000,000 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) plan | |
United Kingdom Subsidiary [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions to defined benefit pension plans | $ 2.3 |
Anticipated additional contribution | $ 1.8 |
United States Subsidiaries | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of plans | plan | 3 |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Pension Benefit Cost (Income)) (Details) - United Kingdom Subsidiary [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 1,452 | $ 1,350 | $ 2,981 | $ 2,686 |
Expected return on plan assets | (3,082) | (3,223) | (6,326) | (6,415) |
Amortization of unrecognized loss | 528 | 922 | 1,084 | 1,835 |
Net periodic pension cost (income) | $ (1,102) | $ (951) | $ (2,261) | $ (1,894) |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Surety Bond | ||
Other Commitments [Line Items] | ||
Aggregate estimated exposure, certain performance obligations | $ 1,600 | |
Aggregate estimated exposure, certain performance obligations, percentage | 25% | |
Aggregate estimated exposure, other contractual obligations | $ 48.1 | |
Other accrued expenses and liabilities | ||
Other Commitments [Line Items] | ||
Insurance liabilities, current | 53.2 | $ 61.5 |
Other long-term obligations | ||
Other Commitments [Line Items] | ||
Insurance liabilities, noncurrent | 213 | 242.4 |
Prepaid expenses and other | ||
Other Commitments [Line Items] | ||
Anticipated insurance recoveries, current | 15.8 | 26.4 |
Other assets | ||
Other Commitments [Line Items] | ||
Anticipated insurance recoveries, noncurrent | $ 57.6 | $ 99 |
Additional Cash Flow Informat_2
Additional Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid for: | ||
Interest | $ 3,096 | $ 2,634 |
Income taxes | 103,560 | 85,339 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 43,183 | 32,938 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 576 | $ 1,321 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | $ 2,707,388 | $ 2,437,666 | $ 5,299,937 | $ 4,741,715 | |
Total revenues | 2,707,388 | 2,437,666 | 5,299,937 | 4,741,715 | |
Total assets | 5,146,444 | 5,146,444 | $ 5,441,446 | ||
Net periodic pension (cost) income | 1,094 | 922 | 2,263 | 1,830 | |
Interest expense, net | (1,751) | (1,316) | (3,040) | (2,679) | |
Operating income (loss) | 137,644 | 133,358 | 237,601 | 250,362 | |
Income before income taxes | 136,987 | 132,964 | 236,824 | 249,513 | |
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 2,592,840 | 2,307,792 | 5,053,892 | 4,485,106 | |
Total revenues | 2,592,840 | 2,307,792 | 5,053,892 | 4,485,106 | |
Total assets | 4,528,503 | 4,528,503 | 4,206,824 | ||
Operating income (loss) | 156,659 | 152,066 | 272,506 | 284,171 | |
United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 564,112 | 492,130 | 1,086,142 | 951,525 | |
United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 1,066,347 | 968,664 | 2,066,817 | 1,883,165 | |
United States Building Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 677,847 | 611,835 | 1,305,648 | 1,179,871 | |
United States Industrial Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 284,534 | 235,163 | 595,285 | 470,545 | |
United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 114,548 | 129,874 | 246,045 | 256,609 | |
Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 565,753 | 492,737 | 1,088,763 | 953,342 | |
Total revenues | 566,029 | 492,814 | 1,089,443 | 953,589 | |
Total assets | 921,152 | 921,152 | 855,417 | ||
Operating income (loss) | 35,095 | 43,012 | 55,088 | 83,264 | |
Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 1,068,976 | 969,859 | 2,071,714 | 1,886,031 | |
Total revenues | 1,073,623 | 971,215 | 2,078,479 | 1,887,937 | |
Total assets | 1,800,072 | 1,800,072 | 1,672,546 | ||
Operating income (loss) | 76,945 | 76,724 | 135,619 | 139,900 | |
Operating Segments [Member] | United States Building Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 702,829 | 636,978 | 1,355,060 | 1,227,423 | |
Total assets | 1,193,169 | 1,193,169 | 1,089,844 | ||
Operating income (loss) | 38,161 | 32,538 | 62,083 | 63,658 | |
Operating Segments [Member] | United States Industrial Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 287,440 | 252,444 | 611,941 | 498,372 | |
Total assets | 614,110 | 614,110 | 589,017 | ||
Operating income (loss) | 6,458 | (208) | 19,716 | (2,651) | |
Operating Segments [Member] | United Kingdom Building Services [Member] [Member] | UNITED KINGDOM | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 114,548 | 129,874 | 246,045 | 256,609 | |
Total assets | 241,792 | 241,792 | 241,740 | ||
Operating income (loss) | 6,415 | 7,047 | 17,003 | 16,458 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 376,149 | 376,149 | $ 992,882 | ||
Operating income (loss) | (25,430) | (25,755) | (51,908) | (50,267) | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | (37,081) | (45,659) | (81,031) | (82,215) | |
Intersegment Eliminations [Member] | United States Electrical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | (1,641) | (607) | (2,621) | (1,817) | |
Intersegment Eliminations [Member] | United States Mechanical Construction And Facilities Services [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | $ (2,629) | $ (1,195) | $ (4,897) | $ (2,866) |