Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-8267 | ||
Entity Registrant Name | EMCOR Group, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
EIN | 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business Flag | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,258,000,000 | ||
Entity Common Stock, Shares Outstanding | 47,687,820 | ||
Entity Central Index Key | 0000105634 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Stamford, Connecticut |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 456,439 | $ 821,345 |
Accounts receivable, less allowance for credit losses of $22,382 and $23,534, respectively | 2,567,371 | 2,204,519 |
Contract assets | 273,176 | 230,143 |
Inventories | 85,641 | 54,098 |
Prepaid expenses and other | 79,346 | 80,889 |
Total current assets | 3,461,973 | 3,390,994 |
Property, plant and equipment, net | 157,819 | 152,066 |
Operating lease right-of-use assets | 268,063 | 260,778 |
Goodwill | 919,151 | 890,268 |
Identifiable intangible assets, net | 593,975 | 589,365 |
Other assets | 123,626 | 157,975 |
Total assets | 5,524,607 | 5,441,446 |
Current liabilities: | ||
Current maturities of long-term debt and finance lease liabilities | 15,567 | 16,235 |
Accounts payable | 849,284 | 734,275 |
Contract liabilities | 1,098,263 | 788,134 |
Accrued payroll and benefits | 465,000 | 490,867 |
Other accrued expenses and liabilities | 258,190 | 274,406 |
Operating lease liabilities, current | 67,218 | 57,814 |
Total current liabilities | 2,753,522 | 2,361,731 |
Long-term debt and finance lease liabilities | 231,625 | 245,450 |
Operating lease liabilities, long-term | 220,764 | 220,836 |
Other long-term obligations | 344,405 | 360,340 |
Total liabilities | 3,550,316 | 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, 60,947,947 and 60,737,006 shares issued, respectively | 609 | 607 |
Capital surplus | 74,795 | 61,874 |
Accumulated other comprehensive loss | (93,451) | (83,562) |
Retained earnings | 3,214,281 | 2,835,504 |
Treasury stock, at cost 13,281,222 and 7,437,268 shares, respectively | (1,222,645) | (562,036) |
Total EMCOR Group, Inc. stockholders’ equity | 1,973,589 | 2,252,387 |
Noncontrolling interests | 702 | 702 |
Total equity | 1,974,291 | 2,253,089 |
Total liabilities and equity | $ 5,524,607 | $ 5,441,446 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses (in US dollars) | $ 22,382 | $ 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 | 60,947,947 | 60,737,006 |
Treasury stock, shares | 13,281,222 | 7,437,268 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 11,076,120 | $ 9,903,580 | $ 8,797,061 |
Cost of sales | 9,472,526 | 8,401,843 | 7,401,679 |
Gross profit | 1,603,594 | 1,501,737 | 1,395,382 |
Selling, general and administrative expenses | 1,038,717 | 970,937 | 903,584 |
Restructuring expenses | 0 | 0 | 2,214 |
Impairment loss on goodwill, identifiable intangible assets, and other long-lived assets | 0 | 0 | 232,750 |
Operating income | 564,877 | 530,800 | 256,834 |
Net periodic pension (cost) income | 4,311 | 3,625 | 2,980 |
Interest expense | (13,199) | (6,071) | (9,009) |
Interest income | 2,761 | 949 | 1,521 |
Income before income taxes | 558,750 | 529,303 | 252,326 |
Income tax provision | 152,628 | 145,602 | 119,383 |
Net income including noncontrolling interests | 406,122 | 383,701 | 132,943 |
Net income attributable to noncontrolling interests | 0 | 169 | 0 |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 406,122 | $ 383,532 | $ 132,943 |
Basic earnings per common share (in US dollars per share) | $ 8.13 | $ 7.09 | $ 2.41 |
Diluted earnings per common share (in US dollars per share) | 8.10 | 7.06 | 2.40 |
Dividends declared per common share (in US dollars per share) | $ 0.54 | $ 0.52 | $ 0.32 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 406,122 | $ 383,701 | $ 132,943 | |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (10,786) | (360) | 2,088 | |
Changes in post retirement plans | [1] | 897 | 26,031 | (22,033) |
Other comprehensive (loss) income | (9,889) | 25,671 | (19,945) | |
Comprehensive income | 396,233 | 409,372 | 112,998 | |
Comprehensive income attributable to noncontrolling interests | 0 | 169 | 0 | |
Comprehensive income attributable to EMCOR Group, Inc. | $ 396,233 | $ 409,203 | $ 112,998 | |
[1]Net of tax (provision) benefit of $(0.3) million, $(8.7) million, and $5.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Post retirement plans, tax | $ (0.3) | $ (8.7) | $ 5.1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows - operating activities: | ||||
Net income including noncontrolling interests | $ 406,122 | $ 383,701 | $ 132,943 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 47,296 | 48,347 | 46,721 | |
Amortization of identifiable intangible assets | 61,315 | 64,089 | 59,950 | |
Provision for credit losses | 5,166 | 8,041 | 3,269 | |
Deferred income taxes | 10,483 | 9,517 | (36,354) | |
Gain on sale or disposal of property, plant and equipment | (6,393) | (782) | (122) | |
Excess tax benefits from share-based compensation | (1,654) | (828) | (191) | |
Equity (income) loss from unconsolidated entities | (391) | 1,170 | (14) | |
Non-cash expense for amortization of debt issuance costs | 960 | 960 | 998 | |
Non-cash expense from contingent consideration arrangements | 1,610 | 1,810 | 649 | |
Non-cash expense for impairment of goodwill, identifiable intangible assets, and other long-lived assets | 0 | 0 | 232,750 | |
Non-cash share-based compensation expense | 12,125 | 11,107 | 11,151 | |
Distributions from unconsolidated entities | 400 | 44 | 0 | |
Changes in operating assets and liabilities, excluding the effect of businesses acquired: | ||||
(Increase) decrease in accounts receivable | (340,091) | (246,856) | 139,377 | |
Increase in inventories | (31,541) | (116) | (12,709) | |
(Increase) decrease in contract assets | (44,725) | (50,648) | 7,829 | |
Increase (decrease) in accounts payable | 111,488 | 54,849 | (9,022) | |
Increase in contract liabilities | 299,897 | 44,713 | 85,142 | |
(Decrease) increase in accrued payroll and benefits and other accrued expenses and liabilities | (30,025) | 46,573 | 113,835 | |
Changes in other assets and liabilities, net | (4,109) | (56,874) | 30,164 | |
Net cash provided by operating activities | 497,933 | 318,817 | 806,366 | |
Cash flows - investing activities: | ||||
Payments for acquisitions of businesses, net of cash acquired | (98,656) | (118,239) | (50,357) | |
Proceeds from sale or disposal of property, plant and equipment | 7,145 | 2,754 | 3,463 | |
Purchases of property, plant and equipment | (49,289) | (36,192) | (47,969) | |
Investments in and advances to unconsolidated entities | 0 | (1,595) | 0 | |
Distributions from unconsolidated entities | 0 | 196 | 0 | |
Net cash used in investing activities | (140,800) | (153,076) | (94,863) | |
Cash flows - financing activities: | ||||
Proceeds from revolving credit facility | 270,000 | 0 | 200,000 | |
Repayments of revolving credit facility | (270,000) | 0 | (250,000) | |
Proceeds from long-term debt | 0 | 0 | 300,000 | |
Repayments of long-term debt and debt issuance costs | (13,875) | (13,875) | (286,987) | |
Repayments of finance lease liabilities | (3,551) | (4,189) | (4,470) | |
Dividends paid to stockholders | (27,187) | (28,163) | (17,674) | |
Repurchases of common stock | (660,609) | (195,546) | (112,553) | |
Taxes paid related to net share settlements of equity awards | (7,539) | (4,210) | (2,640) | |
Issuances of common stock under employee stock purchase plan | 8,177 | 7,328 | 6,557 | |
Payments for contingent consideration arrangements | (5,534) | (6,758) | (4,070) | |
Distributions to noncontrolling interests | 0 | (43) | (70) | |
Net cash used in financing activities | (710,118) | (245,456) | (171,907) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (12,515) | (1,279) | 4,046 | |
(Decrease) increase in cash, cash equivalents, and restricted cash | (365,500) | (80,994) | 543,642 | |
Cash, cash equivalents, and restricted cash at beginning of year (1) | [1] | 822,568 | 903,562 | 359,920 |
Cash, cash equivalents, and restricted cash at end of period (1) | [1] | $ 457,068 | $ 822,568 | $ 903,562 |
[1]Includes $0.6 million, $1.2 million, $0.7 million, and $1.1 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2022, 2021, 2020, and 2019, respectively. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 0.6 | $ 1.2 | $ 0.7 | $ 1.1 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Accumulated Other Comprehensive Loss | [1] | Retained Earnings | Treasury Stock | Noncontrolling Interests | |
Balance at Dec. 31, 2019 | $ 2,057,780 | $ 604 | $ 32,274 | $ (89,288) | $ 2,367,481 | $ (253,937) | $ 646 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income including noncontrolling interests | 132,943 | 132,943 | |||||||
Other comprehensive income (loss) | (19,945) | (19,945) | |||||||
Cumulative-effect adjustment | [2] | (2,307) | (2,307) | ||||||
Common stock issued under share-based compensation plans | 2 | 2 | |||||||
Tax withholding for common stock issued under share-based compensation plans | (2,640) | (2,640) | |||||||
Common stock issued under employee stock purchase plan | 6,557 | 6,557 | |||||||
Common stock dividends | (17,674) | (17,796) | |||||||
Common stock dividends, accrued dividend shares | 122 | ||||||||
Repurchases of common stock | (112,553) | (112,553) | |||||||
Distributions to noncontrolling interests | (70) | (70) | |||||||
Share-based compensation expense | 11,151 | 11,151 | |||||||
Balance at Dec. 31, 2020 | 2,053,244 | 606 | 47,464 | (109,233) | 2,480,321 | (366,490) | 576 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income including noncontrolling interests | 383,701 | 383,532 | 169 | ||||||
Other comprehensive income (loss) | 25,671 | 25,671 | |||||||
Common stock issued under share-based compensation plans | 0 | 1 | (1) | ||||||
Tax withholding for common stock issued under share-based compensation plans | (4,210) | (4,210) | |||||||
Common stock issued under employee stock purchase plan | 7,328 | 7,328 | |||||||
Common stock dividends | (28,163) | (28,349) | |||||||
Common stock dividends, accrued dividend shares | 186 | ||||||||
Repurchases of common stock | (195,546) | (195,546) | |||||||
Distributions to noncontrolling interests | (43) | (43) | |||||||
Share-based compensation expense | 11,107 | 11,107 | |||||||
Balance at Dec. 31, 2021 | 2,253,089 | 607 | 61,874 | (83,562) | 2,835,504 | (562,036) | 702 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income including noncontrolling interests | 406,122 | 406,122 | |||||||
Other comprehensive income (loss) | (9,889) | (9,889) | |||||||
Common stock issued under share-based compensation plans | 2 | 2 | 0 | ||||||
Tax withholding for common stock issued under share-based compensation plans | (7,539) | (7,539) | |||||||
Common stock issued under employee stock purchase plan | 8,177 | 8,177 | |||||||
Common stock dividends | (27,187) | (27,345) | |||||||
Common stock dividends, accrued dividend shares | 158 | ||||||||
Repurchases of common stock | (660,609) | (660,609) | |||||||
Share-based compensation expense | 12,125 | 12,125 | |||||||
Balance at Dec. 31, 2022 | $ 1,974,291 | $ 609 | $ 74,795 | $ (93,451) | $ 3,214,281 | $ (1,222,645) | $ 702 | ||
[1]Represents cumulative foreign currency translation and post retirement liability adjustments of $(8.3) million and $(85.2) million, respectively, as of December 31, 2022, $2.5 million and $(86.1) million, respectively, as of December 31, 2021, and $2.9 million and $(112.1) million, respectively, as of December 31, 2020.[2]Represents adjustment to retained earnings upon the adoption of Accounting Standards Codification Topic 326. |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cumulative foreign currency translation | $ (8.3) | $ 2.5 | $ 2.9 |
Post retirement liability adjustments | $ (85.2) | $ (86.1) | $ (112.1) |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NATURE OF OPERATIONS 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. 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, healthcare, utility, and institutional customers through approximately 100 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and the subsidiaries and joint ventures it controls. All intercompany accounts and transactions have been eliminated. Investments over which we exercise significant influence, but do not control, are accounted for using the equity method of accounting. For joint ventures that have been accounted for using the consolidation method of accounting, noncontrolling interests represent the allocation of earnings to our joint venture partners who either have a minority-ownership interest in the joint venture or are not the primary beneficiary of the joint venture. The results of operations of companies acquired have been included in the results of operations from the date of the respective acquisition. Principles of Preparation The preparation of the consolidated financial statements, in conformity with accounting principles generally accepted in the United States, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. 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. Revenue Recognition Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Refer to Note 3 - Revenue from Contracts with Customers of the notes to consolidated financial statements for additional information. Cash and Cash Equivalents For purposes of the consolidated financial statements, we consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. We maintain a centralized cash management system whereby our excess cash balances are invested in high quality short-term money market instruments, which are considered cash equivalents. We have cash balances in certain of our domestic bank accounts that exceed federally insured limits. 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. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At December 31, 2022 and 2021, our accounts receivable of $2,567.4 million and $2,204.5 million, respectively, were recorded net of allowances for credit losses of $22.4 million and $23.5 million, respectively. The decrease in our allowance for credit losses was attributable to the write-off of specific amounts deemed uncollectible, partially offset by the provision for credit losses recorded during 2022. We have adjusted our allowance for credit losses during 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 provision for credit losses during 2022, 2021, and 2020 amounted to approximately $5.2 million, $8.0 million, and $3.3 million, respectively. The change in the allowance for credit losses for the year ended December 31, 2022 was as follows (in thousands): Balance at December 31, 2021 $ 23,534 Provision for credit losses 5,166 Amounts written off against the allowance, net of recoveries (6,318) Balance at December 31, 2022 $ 22,382 Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined principally using the average cost method. Leases At the inception of a contract, we determine whether the arrangement is or contains a lease. Leases are classified as either operating or finance, based on our evaluation of certain criteria. With the exception of short-term leases (leases with an initial term of 12 months or less), we record right-of-use assets and corresponding lease liabilities on the Consolidated Balance Sheets for all leases with contractual fixed payments. Lease liabilities are measured at the present value of remaining lease payments, while right-of-use assets are initially set equal to the lease liability, as adjusted for any payments made prior to lease commencement, lease incentives, and any initial direct costs incurred by us. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease, and right-of-use assets are subsequently re-measured to reflect the effect of uneven lease payments. For finance leases, right-of-use assets are amortized on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset. Expenses for finance leases include the amortization of right-of-use assets, which is recorded as depreciation and amortization expense, and interest expense, which reflects interest accrued on the lease liability. Short-term leases are not recorded on the Consolidated Balance Sheets but are expensed on a straight-line basis over the lease term. The majority of the Company’s short-term leases relate to equipment used on construction projects. Such equipment leases are considered short-term in nature unless it is reasonably certain that the equipment will be leased for a period greater than 12 months. Refer to Note 16 - Leases of the notes to consolidated financial statements for additional information. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation, including amortization of assets under finance leases, is recorded principally using the straight-line method over estimated useful lives of 3 to 10 years for machinery and equipment, 3 to 7 years for vehicles, furniture and fixtures and computer hardware/software, and 25 years for buildings. Leasehold improvements are amortized over the shorter of the remaining lease term or the expected useful life of the improvement. The carrying values of property, plant and equipment are reviewed for impairment whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. In performing this review for recoverability, property, plant and equipment is assessed for possible impairment by comparing their carrying values to the undiscounted net pre-tax cash flows expected to result from the use of the asset. Impaired assets are written down to their fair values, generally determined based on their estimated future discounted cash flows. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Goodwill, Identifiable Intangible Assets, and Other Long-Lived Assets Goodwill and indefinite-lived intangible assets, such as trade names, are evaluated at least annually for impairment (each October 1, absent any earlier identified impairment indicators) and are written down if impaired. Identifiable intangible assets with finite lives are amortized over their useful lives and are reviewed for impairment whenever facts and circumstances indicate that their carrying values may not be fully recoverable. See Note 8 - Goodwill, Identifiable Intangible Assets, and Other Long-Lived Assets of the notes to consolidated financial statements for additional information. 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 December 31, 2022 and 2021, the estimated current portion of such undiscounted insurance liabilities, included in “Other accrued expenses and liabilities” in the accompanying Consolidated Balance Sheets, were $54.8 million and $61.5 million, respectively. The estimated non-current portion of such undiscounted insurance liabilities included in “Other long-term obligations” as of December 31, 2022 and 2021 were $221.7 million and $242.4 million, respectively. The current portion of anticipated insurance recoveries of $16.0 million and $26.4 million as of December 31, 2022 and 2021, respectively, were included in “Prepaid expenses and other” and the non-current portion of anticipated insurance recoveries of $59.0 million and $99.0 million as of December 31, 2022 and 2021, respectively, were included in “Other assets” in the accompanying Consolidated Balance Sheets. These balances decreased from December 31, 2021 primarily as a result of the payment, by our insurers, of certain claims for which we previously maintained a reserve and corresponding insurance receivable. Foreign Operations The financial statements and transactions of our foreign subsidiaries are maintained in their functional currency and translated into U.S. dollars when preparing our consolidated financial statements. Statements of operations, comprehensive income, and cash flows are translated using weighted average monthly exchange rates, while balance sheets are translated at month-end exchange rates. Translation adjustments are recorded as “Accumulated other comprehensive loss,” a separate component of “Equity.” Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and income tax bases of assets and liabilities as well as for net operating loss and tax credit carryforwards. Deferred income taxes are valued using enacted tax rates expected to be in effect when income taxes are paid or recovered, with the effect of a change in tax laws or rates recognized in the statement of operations in the periods in which such change is enacted. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Deferred income taxes are recorded net of a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making such determination, we consider all available evidence, including projections of future taxable income, tax-planning strategies, and recent results of operations. Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position would be sustained on its technical merits. For positions not meeting the “more likely than not” test, no tax benefit is recognized. To the extent interest and penalties may be assessed related to unrecognized tax benefits, we record accruals for such amounts as a component of the income tax provision. We had no unrecognized income tax benefits as of December 31, 2022 and 2021. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Valuation of Share-Based Compensation Our share-based compensation plans and programs are administered by our Board of Directors or its Compensation and Personnel Committee. See Note 13 - Share-Based Compensation Plans of the notes to consolidated financial statements for additional information regarding these share-based compensation plans and programs. We recognize all share-based payments issued to acquire goods or services in the statement of operations based on the fair value of such payments. Compensation expense related to share-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation expense are recognized in the Consolidated Statements of Operations when the underlying awards vest or are settled. New Accounting Pronouncements The Company is currently evaluating the impact of an accounting standards update issued by the Financial Accounting Standards Board (the “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 market transition from LIBOR, or other interbank offered rates, to alternative reference rates. Such accounting pronouncement, as amended, allows entities to account for and present certain contract modifications, which occur before December 31, 2024 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 upon 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 do not believe that the adoption of this accounting pronouncement will have a material impact on our financial position and/or results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) (2) Identify the performance obligations in the contract At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “unit of account” for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract. In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry. Our contracts are often modified through change orders to account for changes in the scope and price of the goods or services we are providing. Although the Company evaluates each change order to determine whether such modification creates a separate performance obligation, the majority of our change orders are for goods or services that are not distinct within the context of our original contract and, therefore, are not treated as separate performance obligations. (3) Determine the transaction price The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability-weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current, and estimates of future performance. The expected value method is typically utilized in situations where a contract contains a large number of possible outcomes while the most likely amount method is typically utilized in situations where a contract has only two possible outcomes. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts. Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment of and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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. (4) Allocate the transaction price to the 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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. Changes in Estimates Due to uncertainties inherent in the estimation process, as well as the significant judgment involved in determining variable consideration, it is possible that estimates of costs to complete a performance obligation, and/or our estimates of transaction prices, 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, or changes in the estimate of transaction prices, 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, or anticipated contract value, which resulted in a reduction of profitability in excess of $1.0 million, our operating results were negatively impacted by approximately $48.5 million during the year ended December 31, 2022. Of this amount, approximately $33.5 million was reported within our United States electrical construction and facilities services segment, approximately $13.7 million was reported within our United States mechanical construction and facilities services segment, and approximately $1.3 million was reported within our United States building services segment. There were no increases in total estimated costs or reductions to anticipated contract value that had a significant impact on our operating results during each of the years ended December 31, 2021 and 2020. Additionally, there were no significant amounts of revenue recognized during the years ended December 31, 2022 or 2021 related to performance obligations satisfied in prior periods. During the year ended December 31, 2020, we recognized revenue of $6.1 million associated with the final settlement of the contract value for two projects within our United States electrical construction and facilities services segment that were completed or substantially completed in prior periods. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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 18 - 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 (in thousands): 2022 % of 2021 % of 2020 % of United States electrical construction and facilities services: Commercial market sector $ 1,320,392 54 % $ 1,063,242 52 % $ 970,576 53 % Manufacturing market sector 301,606 12 % 230,894 11 % 241,415 13 % Healthcare market sector 178,348 7 % 107,442 5 % 79,275 4 % Institutional market sector 154,077 6 % 178,729 9 % 146,759 8 % Transportation market sector 166,563 7 % 196,313 10 % 192,656 10 % Water and wastewater market sector 21,251 1 % 14,962 1 % 6,882 1 % Hospitality market sector 17,563 1 % 15,346 1 % 23,797 1 % Short duration projects (1) 211,795 9 % 185,277 9 % 145,370 8 % Service work 65,709 3 % 40,963 2 % 28,287 2 % 2,437,304 2,033,168 1,835,017 Less intersegment revenues (4,190) (3,275) (5,038) Total segment revenues $ 2,433,114 $ 2,029,893 $ 1,829,979 2022 % of 2021 % of 2020 % of United States mechanical construction and facilities services: Commercial market sector $ 1,711,772 39 % $ 1,524,685 39 % $ 1,315,973 37 % Manufacturing market sector 632,332 15 % 579,176 15 % 486,753 14 % Healthcare market sector 480,954 11 % 488,910 12 % 346,315 10 % Institutional market sector 353,611 8 % 280,463 7 % 377,738 11 % Transportation market sector 57,026 1 % 84,503 2 % 70,692 2 % Water and wastewater market sector 261,500 6 % 213,315 5 % 185,996 5 % Hospitality market sector 29,511 1 % 38,405 1 % 40,079 1 % Short duration projects (1) 337,522 8 % 297,673 8 % 335,262 10 % Service work 473,328 11 % 452,291 11 % 365,067 10 % 4,337,556 3,959,421 3,523,875 Less intersegment revenues (10,882) (6,835) (7,086) Total segment revenues $ 4,326,674 $ 3,952,586 $ 3,516,789 _________________ (1) Represents those projects which generally are completed within three months or less. 2022 % of 2021 % of 2020 % of United States building services: Mobile mechanical services $ 1,713,989 63 % $ 1,560,120 64 % $ 1,323,499 64 % Commercial site-based services 810,210 30 % 680,351 28 % 587,346 28 % Government site-based services 196,288 7 % 184,272 8 % 167,990 8 % Total segment revenues $ 2,720,487 $ 2,424,743 $ 2,078,835 NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 2022 % of 2021 % of 2020 % of United States industrial services: Field services $ 972,894 87 % $ 853,143 86 % $ 813,872 86 % Shop services 145,873 13 % 133,264 14 % 127,023 14 % Total segment revenues $ 1,118,767 $ 986,407 $ 940,895 Total United States operations $ 10,599,042 $ 9,393,629 $ 8,366,498 2022 % of 2021 % of 2020 % of United Kingdom building services: Service work $ 221,123 46 % $ 261,889 51 % $ 221,373 51 % Project work 255,955 54 % 248,062 49 % 209,190 49 % Total segment revenues $ 477,078 $ 509,951 $ 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 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. 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. As of December 31, 2022 and 2021, contract assets included unbilled revenues for unapproved change orders of approximately $36.0 million and $24.1 million, respectively. Contract assets as of December 31, 2022 and 2021 additionally included $3.8 million and $2.5 million, respectively, associated with claims. There were no claim amounts included within accounts receivable as of December 31, 2022 or 2021. There were contractually billed amounts and retention related to contracts with unapproved change orders and claims of approximately $131.4 million and $130.7 million as of December 31, 2022 and 2021, respectively. For contracts in claim status, contractually billed amounts will generally not be paid by the customer to us until final resolution of the related claims. 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Contract assets, current $ 273,176 $ 230,143 Contract assets, non-current — — Contract liabilities, current (1,098,263) (788,134) Contract liabilities, non-current (2,273) (2,505) Net contract liabilities $ (827,360) $ (560,496) Included within net contract liabilities were $763.2 million and $500.3 million of net contract liabilities on uncompleted construction projects as of December 31, 2022 and 2021, respectively, as follows (in thousands): December 31, 2022 December 31, 2021 Costs incurred on uncompleted construction contracts $ 13,231,612 $ 11,034,038 Estimated earnings, thereon 2,025,929 1,731,479 15,257,541 12,765,517 Less: billings to date 16,020,704 13,265,865 $ (763,163) $ (500,348) Contract assets and contract liabilities increased by approximately $2.1 million and $14.1 million, respectively, as a result of acquisitions made by us in 2022. Excluding the impact of acquisitions, net contract liabilities increased by approximately $254.9 million for the year ended December 31, 2022, due 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. Contract Retentions As of December 31, 2022 and 2021, accounts receivable included $456.9 million and $375.3 million, respectively, of retainage billed under terms of our contracts. These retainage amounts represent amounts which have been contractually invoiced to customers where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. We estimate that approximately 90% of the retainage outstanding as of December 31, 2022 will be collected during 2023. As of December 31, 2022 and 2021, accounts payable included $82.4 million and $71.1 million, respectively, of retainage withheld under terms of our subcontracts. These retainage amounts represent amounts invoiced to the Company by our subcontractors where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. We estimate that approximately 90% of the retainage outstanding as of December 31, 2022 will be paid during 2023. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) Transaction Price Allocated to Remaining Unsatisfied Performance Obligations The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations (in thousands, except for percentages): December 31, 2022 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 2,014,079 27 % United States mechanical construction and facilities services 4,008,919 54 % United States building services 1,151,031 15 % United States industrial services 124,653 2 % Total United States operations 7,298,682 98 % United Kingdom building services 160,617 2 % Total operations $ 7,459,299 100 % Our remaining performance obligations at December 31, 2022 were $7.46 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. 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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 Greater than one year Remaining performance obligations: United States electrical construction and facilities services $ 1,692,127 $ 321,952 United States mechanical construction and facilities services 3,154,465 854,454 United States building services 1,050,462 100,569 United States industrial services 118,642 6,011 Total United States operations 6,015,696 1,282,986 United Kingdom building services 112,687 47,930 Total operations $ 6,128,383 $ 1,330,916 |
Acquisitions Of Businesses
Acquisitions Of Businesses | 12 Months Ended |
Dec. 31, 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 2022, we acquired six companies for total consideration of $100.8 million. Such acquisitions include: (a) a company that provides electrical construction services in the Greater Boston area, the results of operations of which have been included in our United States electrical construction and facilities services segment, and (b) five companies that enhance our presence in geographies where we have existing operations, the results of operations of which were de minimis, consisting of: (i) two companies that provide fire protection services in the Northeastern and Southern regions of the United States, respectively, and that have been included within our United States mechanical construction and facilities services segment, (ii) two companies that specialize in either building automation and controls or mechanical services in the Southwestern and Southern regions of the United States, respectively, and that have been included within our United States building services segment, and (iii) a company that provides electrical construction services in the Midwestern region of the United States and that has been included within our United States electrical construction and facilities services segment. In connection with these acquisitions, we acquired working capital of $7.1 million and other net liabilities of $1.1 million, and have preliminarily ascribed $28.9 million to goodwill and $65.9 million to identifiable intangible assets. During 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 enhance 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 ascribed $38.3 million to goodwill and $70.6 million to identifiable intangible assets. During 2020, we acquired three companies for total consideration of $50.3 million. Such acquisitions include: (a) a company that provides building automation and controls solutions within the Northeastern region of the United States, (b) a full service provider of mechanical services in the Washington, D.C. metro area, and (c) a company that provides mobile mechanical services in the Southern region of the United States. The results of operations for all three companies have been included within our United States building services segment. In connection with these acquisitions, we acquired working capital of $3.0 million and other net liabilities of $3.9 million and have ascribed $13.1 million to goodwill and $38.1 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 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 businesses acquired in 2021 and 2020 have been finalized during their respective measurement periods with an insignificant impact. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table summarizes our calculation of Basic and Diluted Earnings per Common Share (“EPS”) for the years ended December 31, 2022, 2021, and 2020 (in thousands, except share and per share data): 2022 2021 2020 Numerator: Net income attributable to EMCOR Group, Inc. $ 406,122 $ 383,532 $ 132,943 Denominator: Weighted average shares outstanding used to compute basic earnings 49,931,940 54,068,982 55,196,173 Effect of dilutive securities—Share-based awards 204,322 278,552 225,098 Shares used to compute diluted earnings per common share 50,136,262 54,347,534 55,421,271 Basic earnings per common share $ 8.13 $ 7.09 $ 2.41 Diluted earnings per common share $ 8.10 $ 7.06 $ 2.40 The number of outstanding share-based awards excluded from the computation of diluted EPS for the years ended December 31, 2022, 2021, and 2020 because they would be anti-dilutive were 4,926, 9,250, and 24,450, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Raw materials and construction materials $ 74,014 $ 46,186 Work in process 11,627 7,912 Inventories $ 85,641 $ 54,098 The increase in inventories as of December 31, 2022, compared to December 31, 2021, was a result of: (a) advanced purchases of materials and equipment for use on specific construction projects, in an effort to mitigate the impact of extended lead times, which have resulted from supply chain disruptions, and (b) an increase in raw materials on hand to support our fabrication facilities given the growth in demand for our fire protection services. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Machinery and equipment $ 206,249 $ 188,022 Vehicles 68,858 65,946 Furniture and fixtures 25,253 23,698 Computer hardware/software 109,166 108,830 Land, buildings and leasehold improvements 130,358 127,736 Construction in progress 6,060 6,125 Finance lease right-of-use assets (1) 6,117 7,666 552,061 528,023 Accumulated depreciation and amortization (394,242) (375,957) $ 157,819 $ 152,066 ____________________________________________ (1) Finance lease right-of-use assets are recorded net of accumulated amortization. |
Goodwill, Identifiable Intangib
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets | GOODWILL, IDENTIFIABLE INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS Goodwill In connection with our acquisition of businesses, we have recorded goodwill, which represents the excess of the consideration transferred over the fair value of the net tangible and identifiable intangible assets acquired. Our goodwill balance at December 31, 2022 and 2021 was $919.2 million and $890.3 million, respectively, with goodwill attributable to companies acquired in 2022 and 2021 valued at $28.9 million and $38.3 million, respectively. Goodwill is not amortized but instead allocated to its respective reporting unit and evaluated for impairment annually, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. We have determined that our reporting units are consistent with the reportable segments identified in Note 18 - Segment Information of the notes to consolidated financial statements. As of December 31, 2022, approximately 19.4% of our goodwill related to our United States electrical construction and facilities services segment, approximately 34.3% of our goodwill related to our United States mechanical construction and facilities services segment, approximately 33.9% of our goodwill related to our United States building services segment and approximately 12.4% of our goodwill related to our United States industrial services segment. Absent any earlier identified impairment indicators, we perform our annual goodwill impairment assessment on October 1 each fiscal year. Qualitative indicators that may trigger the need for interim quantitative impairment testing include, among others, deterioration in macroeconomic conditions, declining financial performance, deterioration in the operational environment, or an expectation of selling or disposing of a portion of a reporting unit. Additionally, an interim impairment test may be triggered by a significant change in business climate, a loss of a significant customer, increased competition, or a sustained decrease in share price. In assessing whether our goodwill is impaired, we compare the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value exceeds the carrying amount, no impairment is recognized. However, if the carrying amount of the reporting unit exceeds the fair value, the goodwill of the reporting unit is impaired and an impairment loss in the amount of the excess is recognized and charged to operations. We performed our 2022 annual impairment assessment of all reporting units as of October 1, 2022, and determined there was no impairment of goodwill. In completing our annual impairment assessment, we determined the fair value of each of our reporting units using an income approach whereby fair value was calculated utilizing discounted estimated future cash flows, assuming a risk-adjusted industry weighted average cost of capital. The weighted average cost of capital used in our annual impairment testing was 10.3% for our United States construction segments, 10.2% for our United States building services segment, and 11.2% for our United States industrial services segment. These weighted average cost of capital estimates were developed with the assistance of an independent third-party valuation specialist and reflect the overall level of inherent risk within the respective reporting unit and the rate of return a market participant would expect to earn. Our cash flow projections were derived from our most recent internal forecasts of anticipated revenue growth rates and operating margins, with cash flows beyond the discrete forecast period estimated using a terminal value calculation which incorporated historical and forecasted trends, an estimate of long-term growth rates, and assumptions about the future demand for our services. The perpetual growth rate used for our annual testing was 2.5% for all of our reporting units. NOTE 8 - GOODWILL, IDENTIFIABLE INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS (Continued) For the year ended December 31, 2021, no impairment of our goodwill was recognized. However, during the second quarter of 2020, we concluded that the carrying amount of our United States industrial services segment exceeded its fair value, resulting in the recognition of a non-cash goodwill impairment charge of $225.5 million which was included within our results of operations for the year ended December 31, 2020. An interim impairment assessment was considered necessary as a result of the significant impact the COVID-19 pandemic and concurrent decline in demand for oil and other refined products had on our revenue and operating margin expectations for such segment. The valuation methodology utilized in this prior year interim impairment test was consistent with the approach described above. We did not identify indicators of impairment related to any other reporting unit that would have required an interim impairment assessment during 2020 and there was no other impairment of goodwill recognized for the year ended December 31, 2020. Due to the inherent uncertainties involved in making estimates, our assumptions may change in future periods. Estimates and assumptions made for purposes of our goodwill impairment testing may prove to be inaccurate predictions of the future, and other factors used in assessing fair value, such as the weighted average cost of capital, are outside the control of management. Unfavorable changes in certain of these key assumptions may affect future testing results. For example, keeping all other assumptions constant, a 50 basis point increase in the weighted average cost of capital would cause the estimated fair values of our United States electrical construction and facilities services segment, our United States mechanical construction and facilities services segment, our United States building services segment, and our United States industrial services segment to decrease by approximately $90.9 million, $172.1 million, $92.8 million, and $24.1 million, respectively. In addition, keeping all other assumptions constant, a 50 basis point reduction in the perpetual growth rate would cause the estimated fair values of our United States electrical construction and facilities services segment, our United States mechanical construction and facilities services segment, our United States building services segment, and our United States industrial services segment to decrease by approximately $45.0 million, $94.2 million, $48.1 million, and $9.2 million, respectively. Given the amounts by which the fair value exceeds the carrying value for each of our reporting units, the decreases in estimated fair values described above would not have significantly impacted the results of our 2022 impairment tests. Further, for each of our reporting units, other than our United States industrial services segment, a 10% decline in the estimated fair value of such reporting unit, due to other changes in our assumptions, including forecasted future cash flows, would not have significantly impacted the results of our 2022 impairment tests. In the case of our United States industrial services segment, however, such a decrease would cause the estimated fair value of this reporting unit to approximate its carrying value. The changes in the carrying amount of goodwill by reportable segment during the years ended December 31, 2022 and 2021 were as follows (in thousands): United States United States United States United States Total Balance at December 31, 2020 $ 142,545 $ 299,618 $ 302,132 $ 107,488 $ 851,783 Acquisitions and purchase price adjustments 24,467 4,269 9,749 — 38,485 Intersegment transfers (7,500) — 900 6,600 — Balance at December 31, 2021 159,512 303,887 312,781 114,088 890,268 Acquisitions and purchase price adjustments 17,601 6,942 4,340 — 28,883 Intersegment transfers 900 4,500 (5,400) — — Balance at December 31, 2022 $ 178,013 $ 315,329 $ 311,721 $ 114,088 $ 919,151 The aggregate goodwill balance as of December 31, 2020 included $493.6 million of accumulated impairment charges, which were comprised of $139.5 million within the United States building services segment and $354.1 million within the United States industrial services segment. NOTE 8 - GOODWILL, IDENTIFIABLE INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS (Continued) Identifiable Intangible Assets and Other Long-Lived Assets Our identifiable intangible assets, arising out of the acquisition of businesses, include customer relationships, subsidiary trade names, developed technology/vendor network, and contract backlog, all of which are subject to amortization. In addition, our identifiable intangible assets include certain other subsidiary trade names, which are indefinite-lived and therefore not subject to amortization. Absent earlier indicators of impairment, we test for impairment of subsidiary trade names that are not subject to amortization on an annual basis (October 1). In performing this test, we calculate the fair value of each trade name using the “relief from royalty payments” methodology. This approach involves two steps: (a) estimating reasonable royalty rates for each trade name and (b) applying these royalty rates to a net revenue stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of each trade name. If the carrying amount of the trade name is greater than the implied fair value of the trade name, an impairment in the amount of the excess is recognized and charged to operations. In addition, we review for impairment of identifiable intangible assets that are being amortized as well as other long-lived assets whenever facts and circumstances indicate that their carrying values may not be fully recoverable. This test compares their carrying values to the undiscounted pre-tax cash flows expected to result from the use of the assets. If the assets are impaired, the assets are written down to their fair values, generally determined based on their discounted estimated future cash flows. For the years ended December 31, 2022 and 2021, no impairment of our indefinite-lived intangible assets, finite-lived intangible assets, or other long-lived assets was recognized. However, during the second quarter of 2020, given the external market conditions disclosed above, we evaluated certain of our identifiable intangible assets and other long-lived assets for impairment. Such assets included those associated with the businesses in our United States industrial services segment. As a result of these assessments, we recorded non-cash impairment charges of $7.3 million, which were included within our results of operations for the year ended December 31, 2020. Identifiable intangible assets as of December 31, 2022 and 2021 consisted of the following (in thousands): December 31, 2022 Gross Accumulated Accumulated Impairment Charge Total Customer relationships $ 762,516 $ (427,211) $ (4,834) $ 330,471 Trade names (indefinite-lived) 289,121 — (58,933) 230,188 Developed technology/Vendor network 95,661 (74,238) — 21,423 Trade names (finite-lived) 33,791 (25,690) — 8,101 Contract backlog 83,245 (79,453) — 3,792 Total $ 1,264,334 $ (606,592) $ (63,767) $ 593,975 December 31, 2021 Gross Accumulated Accumulated Total Customer relationships $ 717,666 $ (374,764) $ (4,834) $ 338,068 Trade names (indefinite-lived) 274,721 — (58,933) 215,788 Developed technology/Vendor network 95,661 (69,688) — 25,973 Trade names (finite-lived) 32,366 (24,180) — 8,186 Contract backlog 77,995 (76,645) — 1,350 Total $ 1,198,409 $ (545,277) $ (63,767) $ 589,365 NOTE 8 - GOODWILL, IDENTIFIABLE INTANGIBLE ASSETS, AND OTHER LONG-LIVED ASSETS (Continued) Identifiable intangible assets attributable to businesses acquired in 2022 and 2021 have been valued at $65.9 million and $70.6 million, respectively, and consist of customer relationships, trade names, and contract backlog. See Note 4 - Acquisitions of Businesses of the notes to consolidated financial statements for additional information with respect to acquisitions. Identifiable intangible assets are amortized in a manner that best approximates the pattern in which the economic benefits of such assets are consumed, which is generally on a straight-line basis. The weighted average amortization periods for the unamortized balances remaining are, in the aggregate, approximately 7.00 years, which are comprised of the following: 7.25 years for customer relationships, 7.00 years for trade names, 4.75 years for developed technology/vendor network, and 1.00 year for contract backlog. Amortization expense related to identifiable intangible assets with finite lives was $61.3 million, $64.1 million, and $60.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. The following table presents the estimated future amortization expense of identifiable intangible assets in the following years (in thousands): 2023 $ 63,366 2024 59,507 2025 58,002 2026 51,883 2027 38,949 Thereafter 92,080 $ 363,787 Other Considerations |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Term loan, interest payable at varying amounts through 2025 $ 242,813 $ 256,688 Unamortized debt issuance costs (2,080) (3,040) Finance lease liabilities 6,459 8,037 Total debt 247,192 261,685 Less: current maturities 15,567 16,235 Total long-term debt $ 231,625 $ 245,450 Credit Agreement Until March 2, 2020, we had a credit agreement dated August 3, 2016, which provided for a $900.0 million revolving credit facility and a $400.0 million term loan. On March 2, 2020, we amended and restated such agreement to provide 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. As of December 31, 2022 and 2021, the balance of the 2020 Term Loan was $242.8 million and $256.7 million, respectively. There were no direct borrowings outstanding under the 2020 Revolving Credit Facility as of December 31, 2022 and 2021. However, outstanding letters of credit reduce the available capacity under such facility, and as of December 31, 2022 and 2021, we had $71.3 million of letters of credit outstanding. 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 (4.73% at December 31, 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 (7.50% at December 31, 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%. Upon 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 December 31, 2022 and 2021 were 5.73% 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 December 31, 2022 and 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. 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 December 31, 2022 and 2021. We are required to make annual principal payments on the 2020 Term Loan. Any voluntary prepayments are applied against the outstanding balance of the loan and reduce our future scheduled payments on a ratable basis. Based on our outstanding balance, principal payments of $13.9 million are due on December 31 of each year until maturity, with any remaining unpaid principal and interest due on March 2, 2025. Finance Lease Liabilities |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 – Significant 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 December 31, 2022 and 2021 (in thousands): Assets at Fair Value as of December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 456,439 $ — $ — $ 456,439 Restricted cash (2) 629 — — 629 Deferred compensation plan assets (3) 36,882 — — 36,882 Total $ 493,950 $ — $ — $ 493,950 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 December 31, 2022 and 2021, we had $209.4 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. Fair Value of Financial Instruments We believe that the carrying values of our financial instruments, which include accounts receivable and other financing commitments, approximate their fair values due primarily to their short-term maturities and low risk of counterparty default. The carrying value of our debt associated with the 2020 Credit Agreement approximates its fair value due to the variable rate on such debt. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the years ended December 31, 2022, 2021, and 2020, our income tax provision was calculated based on income before income taxes as follows (in thousands): 2022 2021 2020 United States $ 523,273 $ 497,421 $ 228,181 Foreign 35,477 31,882 24,145 $ 558,750 $ 529,303 $ 252,326 Foreign income for each of the years ended December 31, 2022, 2021, and 2020 was predominantly earned in the United Kingdom. The income tax provision for the years ended December 31, 2022, 2021, and 2020 consisted of the following (in thousands): 2022 2021 2020 Current provision: Federal $ 100,707 $ 95,782 $ 115,633 State and local 36,547 35,883 36,182 Foreign 4,891 4,420 3,922 142,145 136,085 155,737 Deferred provision (benefit) 10,483 9,517 (36,354) $ 152,628 $ 145,602 $ 119,383 For the year ended December 31, 2022, our income tax provision was $152.6 million compared to $145.6 million for the year ended December 31, 2021 and $119.4 million for the year ended December 31, 2020. The increase in the income tax provision year-over-year was primarily due to increased income before income taxes. Additionally, the increase in the income tax provision for 2021, when compared to 2020, was partially attributable to the effect of certain increases in the deferred state tax provision. The income tax rates on income before income taxes for the years ended December 31, 2022, 2021, and 2020, were 27.3%, 27.5%, and 47.3%, respectively. The slight decrease in the 2022 effective income tax rate, when compared to 2021, was attributable to the favorable impact of certain discrete tax items. The decrease in the 2021 effective income tax rate, when compared to 2020, was predominantly due to the tax effect, in 2020, of the impairment charges recorded during such year, the majority of which were non-deductible for tax purposes. Refer to Note 8 - Goodwill, Identifiable Intangible Assets, and Other Long-Lived Assets of the notes to consolidated financial statements for further discussion regarding such impairment charges. Items accounting for the differences between income taxes computed at the federal statutory rate and the income tax provision for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands): 2022 2021 2020 Federal income taxes at the statutory rate $ 117,338 $ 111,118 $ 52,989 State and local income taxes, net of federal tax benefits 29,519 31,257 19,290 Permanent differences 5,261 5,316 5,860 Non-deductible impairment charges — — 40,165 Foreign income taxes (including UK statutory rate changes) (155) (2,241) (140) Other 665 152 1,219 $ 152,628 $ 145,602 $ 119,383 NOTE 11 - INCOME TAXES (Continued) The net minimum tax on global intangible low-taxed income for certain earnings of our foreign subsidiaries was approximately $0.1 million for each of the years ended December 31, 2022, 2021, and 2020. The Company recognizes such tax as an expense in the period incurred. As of December 31, 2022, we had undistributed foreign earnings from certain foreign subsidiaries of approximately $145.2 million. Based on our evaluation, and given that a significant portion of such earnings were subject to tax in prior periods, or are indefinitely reinvested, we have concluded that any taxes associated with the repatriation of such foreign earnings would be immaterial. As of December 31, 2022, the amount of cash held by these foreign subsidiaries was approximately $115.8 million which, if repatriated, should not result in any material federal or state income taxes. We file a consolidated federal income tax return including all of our U.S. subsidiaries with the Internal Revenue Service. We additionally file income tax returns with various state, local, and foreign tax agencies. Our income tax returns are subject to audit by various taxing authorities and are currently under examination for the years 2017 through 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides for various tax relief and tax incentive measures, which did not have a material impact on our results of operations. Certain provisions of the CARES Act, however, did favorably impact our liquidity throughout 2020 as they allowed for the deferral of the employer’s portion of Social Security tax payments. Amounts previously deferred were repaid in two installments of approximately $51 million during each of the fourth quarters of 2022 and 2021. On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law. This act provides for tax relief, as well as an omnibus appropriations package that extends various expiring tax provisions and allows for a 100% tax deduction for the cost of business meals in 2021 and 2022. The Consolidated Appropriations Act did not have a material impact on our income tax provision for the years ended December 31, 2022 and 2021. On March 11, 2021, the American Rescue Plan Act was signed into law. Such act includes certain tax provisions that could have an impact on the Company in future periods, including expanded limits on compensation deductions under Section 162(m) of the Internal Revenue Code for tax years beginning after December 31, 2026. We are currently evaluating the impact that this act may have on our financial position and/or results of operations; however, we anticipate that the expanded provisions of Section 162(m) will result in an increase in our effective income tax rate for years beginning after December 31, 2026. On August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. Among other provisions, such act creates an excise tax of 1% on the fair value of net stock repurchases in excess of share issuances made by publicly traded U.S. corporations, effective for repurchases after December 31, 2022. The impact of this excise tax on our financial position, and/or liquidity, in future periods, will vary based on the level of repurchases made by us in a given year. While we are still evaluating the potential impact of this excise tax on our results of operations, interpretive accounting guidance indicates that this tax can be recorded as a component of treasury stock, as opposed to an expense within the statement of operations, given that it is a direct cost associated with the repurchase of our common stock. For tax years beginning after December 31, 2022, the Inflation Reduction Act additionally creates a 15% corporate alternative minimum tax on profits of corporations whose average annual adjusted financial statement income exceeds $1.0 billion for any consecutive three-tax-year period preceding the then current tax year. Based on our average annual income for the preceding three years, which has remained below the aforementioned $1.0 billion threshold, as well as the fact that our effective federal income tax rate has historically been in excess of the 15% alternative minimum tax rate, we do not anticipate that this alternative minimum tax will have an impact on our financial position and/or results of operations. NOTE 11 - INCOME TAXES (Continued) Deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and income tax bases of assets and liabilities. The deferred income tax assets and deferred income tax liabilities recorded as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 December 31, 2021 Deferred income tax assets: Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes: Insurance liabilities $ 57,278 $ 50,316 Operating lease liabilities 78,391 76,451 Deferred compensation 40,682 40,080 Accrued federal payroll taxes (1) — 14,235 Other (including liabilities and reserves) 35,584 31,252 Total deferred income tax assets 211,935 212,334 Valuation allowance for deferred tax assets (3,580) (2,465) Net deferred income tax assets 208,355 209,869 Deferred income tax liabilities: Costs capitalized for financial statement purposes and deducted for income tax purposes: Goodwill and identifiable intangible assets (153,767) (154,382) Operating lease right-of-use assets (73,134) (71,759) Depreciation of property, plant and equipment (28,435) (25,341) Pension asset (4,082) (1,847) Other (10,500) (7,491) Total deferred income tax liabilities (269,918) (260,820) Net deferred income tax liabilities $ (61,563) $ (50,951) _________________ (1) Represents employer Social Security tax payments previously deferred under the CARES Act. At December 31, 2022 and 2021, our net deferred income tax liabilities of $61.6 million and $51.0 million, respectively, were included in “Other long-term obligations” in the accompanying Consolidated Balance Sheet. Valuation allowances are established when necessary to reduce deferred income tax assets when it is more likely than not that a tax benefit will not be realized. As of December 31, 2022 and 2021, the total valuation allowance on deferred income tax assets, related to state and local net operating losses, foreign net operating losses, and foreign income tax credit carryovers, was approximately $3.6 million and $2.5 million, respectively. The increase in our valuation allowances at December 31, 2022 was primarily a result of the recognition of additional deferred tax assets related to net operating loss carryovers that we determined we would likely not be able to utilize. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | COMMON STOCK As of December 31, 2022 and 2021, there were 47,666,725 and 53,299,738 shares of our common stock outstanding, respectively. We have paid quarterly dividends since October 25, 2011. We currently pay a regular quarterly dividend of $0.15 per share. Subsequent to December 31, 2022, our Board of Directors (the “Board”) announced its intention to increase the regular quarterly dividend to $0.18 per share commencing with the dividend to be paid in April 2023. 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 $2.15 billion of our outstanding common stock. During the year ended December 31, 2022, we repurchased approximately 5.8 million shares of our common stock for approximately $660.6 million. Since the inception of the repurchase program through December 31, 2022, we have repurchased approximately 25.0 million shares of our common stock for approximately $1.76 billion. As of December 31, 2022, there remained authorization for us to repurchase approximately $389.8 million of our shares. The repurchase program has no expiration date, does not obligate the Company to acquire any particular amount of common stock, and may be suspended, recommenced, or discontinued at any time or from time to time without prior notice. We may repurchase our shares from time to time to the extent permitted by securities laws and other legal requirements, including provisions in our 2020 Credit Agreement placing limitations on such repurchases. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANS We have an incentive plan under which stock awards, stock units, and other share-based compensation may be granted to officers, non-employee directors, and key employees of the Company. Such plan, as amended, no longer allows for the grant of stock options. Under the terms of this plan, 3,250,000 shares were authorized, and 792,726 shares remain available for grant or issuance as of December 31, 2022. Any issuances under this plan are valued at the fair market value of our common stock on the grant date. Forfeitures are recognized as they occur. The following table summarizes activity regarding restricted stock units since December 31, 2019: Shares Weighted Balance, December 31, 2019 417,578 $ 70.24 Granted 137,771 $ 81.56 Forfeited (984) $ 79.17 Vested (156,447) $ 72.72 Balance, December 31, 2020 397,918 $ 73.16 Granted 129,859 $ 96.32 Forfeited (2,242) $ 78.86 Vested (121,067) $ 77.86 Balance, December 31, 2021 404,468 $ 79.16 Granted 107,621 $ 123.52 Forfeited (4,665) $ 105.88 Vested (189,830) $ 67.40 Balance, December 31, 2022 317,594 $ 100.83 We recognized approximately $12.1 million, $11.1 million, and $11.2 million of compensation expense for stock units awarded to non-employee directors and employees pursuant to our incentive plans for the years ended December 31, 2022, 2021, and 2020, respectively. We have approximately $9.8 million of compensation expense, net of income taxes, which will be recognized over the remaining vesting periods of up to 3 years. In addition, an aggregate of 49,360 restricted stock units granted to current or former non-employee directors vested as of December 31, 2022, but, at the election of such directors, issuance has been deferred for up to 10 years. NOTE 13 - SHARE-BASED COMPENSATION PLANS (Continued) There were 20,000 stock options outstanding at December 31, 2019. Such stock options were exercised during 2020 at a weighted average price of $24.48. The total intrinsic value (the amounts by which the stock price exceeded the exercise price on the date of exercise) for these options was approximately $1.2 million. There has been no other activity with respect to stock options since December 31, 2020, and there were no options outstanding at December 31, 2022 and 2021. The income tax benefit derived in 2022, 2021, and 2020 as a result of share-based compensation was approximately $3.9 million, $2.6 million, and $1.9 million, respectively, of which approximately $1.7 million, $0.8 million, and $0.2 million, respectively, represented excess tax benefits. We have an employee stock purchase plan. Under the terms of this plan, the maximum number of shares of our common stock that may be purchased is 3,000,000 shares. Generally, our corporate employees and non-union employees of our United States subsidiaries are eligible to participate in this plan. Employees covered by collective bargaining agreements generally are not eligible to participate in this plan. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS Defined Benefit 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 Statement of Operations, as described further below. 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. The change in benefit obligations and assets of the UK Plan for the years ended December 31, 2022 and 2021 consisted of the following components (in thousands): 2022 2021 Change in pension benefit obligation Benefit obligation at beginning of year $ 349,147 $ 383,142 Interest cost 5,693 5,326 Actuarial gain (116,372) (22,071) Benefits paid (11,095) (13,939) Foreign currency exchange rate changes (33,417) (3,311) Benefit obligation at end of year 193,956 349,147 Change in pension plan assets Fair value of plan assets at beginning of year 356,532 347,411 Actual (loss) return on plan assets (105,544) 21,809 Employer contributions 4,875 4,956 Benefits paid (11,095) (13,939) Foreign currency exchange rate changes (34,484) (3,705) Fair value of plan assets at end of year 210,284 356,532 Funded status at end of year $ 16,328 $ 7,385 The funded status of the UK Plan of $16.3 million and $7.4 million at December 31, 2022 and 2021, respectively, is included in “Other Assets” in the accompanying Consolidated Balance Sheets. No plan assets are expected to be returned to us during the year ending December 31, 2023. NOTE 14 - RETIREMENT PLANS (Continued) The weighted average assumptions used to determine benefit obligations of the UK Plan as of December 31, 2022 and 2021 were as follows: 2022 2021 Discount rate 5.0 % 1.8 % The components of net periodic pension cost (income) of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands): 2022 2021 2020 Interest cost $ 5,693 $ 5,326 $ 6,401 Expected return on plan assets (12,088) (12,726) (12,023) Amortization of unrecognized loss 2,073 3,642 2,389 Net periodic pension cost (income) $ (4,322) $ (3,758) $ (3,233) The weighted average assumptions used to determine net periodic pension cost of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows: 2022 2021 2020 Discount rate 1.8 % 1.4 % 2.1 % Annual rate of return on plan assets 3.9 % 3.9 % 4.3 % The annual rate of return on plan assets has been determined by modeling possible returns using the actuary’s portfolio return calculator and the fair value of plan assets. This approach models the long term expected returns of the various asset classes held in the portfolio and takes into account the additional benefits of holding a diversified portfolio. For measurement purposes of the liability, the annual rates of inflation of covered pension benefits assumed for 2022 and 2021 were 2.8% and 2.9%, respectively. Amounts pertaining to the UK Plan not yet reflected in net periodic pension cost and included in accumulated other comprehensive loss were as follows (in thousands): December 31, 2022 December 31, 2021 Unrecognized actuarial losses $ 79,313 $ 89,572 Actuarial gains and losses are amortized using a corridor approach whereby cumulative gains and losses in excess of the greater of 10% of the pension benefit obligation or the fair value of plan assets are amortized over the average life expectancy of plan participants. The amortization period for 2022 was 24 years. The reclassification adjustment, net of income taxes, for the UK Plan from accumulated other comprehensive loss into net periodic pension cost was approximately $1.6 million for the year ended December 31, 2022, approximately $2.9 million for the year ended December 31, 2021, and approximately $1.9 million for the year ended December 31, 2020. The estimated unrecognized loss for the UK Plan that will be amortized from accumulated other comprehensive loss into net periodic pension cost over the next year is approximately $1.9 million, net of income taxes. NOTE 14 - RETIREMENT PLANS (Continued) UK Plan Assets The investment policies and strategies for the assets of the UK Plan are established by its trustees (who are independent of the Company) to achieve a reasonable balance between risk, likely return, and administration expense, as well as to maintain funds at a level to meet minimum funding requirements. In order to ensure that an appropriate investment strategy is in place, an analysis of the UK Plan’s assets and liabilities is completed periodically. Target allocation percentages vary over time depending on the perceived risk and return potential of various asset classes and market conditions. The weighted average asset allocations and weighted average target allocations at December 31, 2022 and 2021 were as follows: Asset Category Target Actual Actual Debt 75.0 % 80.7 % 76.0 % Cash and cash equivalents 15.0 % 9.4 % 16.5 % Real estate 10.0 % 9.9 % 7.5 % Total 100.0 % 100.0 % 100.0 % Plan assets of our UK Plan are invested through third-party fund managers in various investments with underlying holdings which, as of December 31, 2022 and 2021, consisted of: (a) cash and cash equivalents, primarily held as collateral for other financial instruments, (b) debt securities, which include United Kingdom government debt and United States, United Kingdom, European, and emerging market corporate debt, and (c) real estate assets, which represent trusts which invest directly or indirectly in various properties throughout the United Kingdom. The following tables set forth the fair value of assets of the UK Plan as of December 31, 2022 and 2021 (in thousands): Assets at Fair Value as of December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total Corporate debt funds $ — $ 23,998 $ — $ 23,998 Government bond funds — 45,619 — 45,619 Cash and cash equivalents 19,829 — — 19,829 Total plan assets in fair value hierarchy $ 19,829 $ 69,617 $ — 89,446 Plan assets measured using NAV as a practical expedient: (1) Debt funds 99,990 Real estate funds 20,848 Total plan assets at fair value $ 210,284 Assets at Fair Value as of December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Corporate debt funds $ — $ 67,226 $ — $ 67,226 Government bond funds — 91,899 — 91,899 Cash and cash equivalents 58,772 — — 58,772 Total plan assets in fair value hierarchy $ 58,772 $ 159,125 $ — 217,897 Plan assets measured using NAV as a practical expedient: (1) Debt funds 111,971 Real estate funds 26,664 Total plan assets at fair value $ 356,532 _________________ (1) Certain investments measured using net asset value (“NAV”) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets. NOTE 14 - RETIREMENT PLANS (Continued) Assets of the UK Plan are allocated within the fair value hierarchy discussed in Note 10 - Fair Value Measurements, based on the nature of the investment. Level 1 assets represent cash and cash equivalents. Level 2 assets consist of corporate debt funds and government bond funds whose underlying investments are valued using observable marketplace inputs. The fair value of the Level 2 assets are generally determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields, and quoted prices. Investments valued using NAV as a practical expedient are excluded from the fair value hierarchy. These investments include: (a) funds which invest predominantly in senior secured debt instruments, targeting diversity across regions and sectors, as well as funds which invest in diversified credit vehicles that seek higher returns than traditional fixed income investments, primarily through U.S. corporate debt, global credit, and structured debt instruments, and (b) funds which aim to provide long-term income through investment in UK property assets. These investments are redeemable at NAV on a monthly or quarterly basis and have redemption notice periods of up to 90 days. In addition, certain of these investments are subject to a lockup period of up to 24 months. The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes the valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Contributions Our United Kingdom subsidiary expects to contribute approximately $1.3 million to the UK Plan in 2023. Estimated Future Benefit Payments The following estimated benefit payments are expected to be made from the UK Plan in the following years (in thousands): Pension 2023 $ 9,884 2024 $ 10,201 2025 $ 10,627 2026 $ 11,106 2027 $ 11,476 Succeeding five years $ 63,182 We also sponsor three domestic retirement plans in which participation by new individuals is frozen. The aggregate benefit obligation associated with these plans as of December 31, 2022 and 2021 was approximately $6.7 million and $8.5 million, respectively. The estimated fair value of the plan assets as of December 31, 2022 and 2021 was approximately $4.9 million and $6.3 million, respectively. The plan assets are considered Level 1 assets within the fair value hierarchy and are predominantly invested in cash, equities, and equity and bond funds. The liability balances as of December 31, 2022 and 2021 are classified as “Other long-term obligations” in the accompanying Consolidated Balance Sheets. The measurement date for these plans is December 31 of each year. The major assumptions used in the actuarial valuations to determine benefit obligations as of December 31, 2022 and 2021 included discount rates of approximately 4.80% for 2022 and 2.40% to 2.50% for 2021. Also included was an expected rate of return of 7.00% for both 2022 and 2021. The net periodic pension cost associated with the domestic plans, as well as the reclassification adjustment from accumulated other comprehensive loss to net periodic pension cost, were insignificant for all periods presented. The future estimated benefit payments expected to be made from the plans for the next ten years is approximately $0.5 million per year. NOTE 14 - RETIREMENT PLANS (Continued) Defined Contribution Plans We have defined contribution retirement and savings plans that cover eligible employees in the United States. Contributions to these plans are based on a percentage of the employee’s base compensation. The expenses recognized for employer contributions to these plans were approximately $35.0 million for the year ended December 31, 2022, $33.0 million for the year ended December 31, 2021, and $32.4 million for the year ended December 31, 2020. At our discretion and subject to applicable plan documents, we may make additional supplemental matching contributions to one of our defined contribution retirement and savings plans. The expenses recognized related to additional supplemental matching contributions for the years ended December 31, 2022, 2021, and 2020 were approximately $9.2 million, $7.7 million, and $9.1 million, respectively. Our United Kingdom subsidiary also has defined contribution retirement plans. The expenses recognized related to employer matching contributions for the years ended December 31, 2022, 2021, and 2020 were approximately $7.3 million, $8.3 million, and $7.4 million, respectively. Multiemployer Plans We participate in approximately 200 multiemployer pension plans (“MEPPs”) that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements (“CBAs”). As one of many participating employers in an MEPP, we are potentially liable with the other participating employers for any plan underfunding, either through an increase in our required contributions or, in the case of our withdrawal from the plan, a payment based upon our proportionate share of the plan's unfunded benefits, in each case, as described below. Our contributions to a particular MEPP are established by the applicable CBAs; however, our required contributions may increase based on the funded status of an MEPP and legal requirements of the Pension Protection Act of 2006 (the “PPA”), which requires substantially underfunded MEPPs to implement a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) to improve their funded status. Factors that could impact the funded status of an MEPP include, without limitation, investment performance, changes in the participant demographics, decline in the number of contributing employers, changes in actuarial assumptions, and the utilization of extended amortization provisions. An FIP or RP requires a particular MEPP to adopt measures to correct its underfunding status. These measures may include, but are not limited to: (a) an increase in our contribution rate as a signatory to the applicable CBA, (b) a reallocation of the contributions already being made by participating employers for various benefits to individuals participating in the MEPP, and/or (c) a reduction in the benefits to be paid to future and/or current retirees. In addition, the PPA requires that a 5% surcharge be levied on employer contributions for the first year commencing after the date the employer receives notice that the MEPP is in critical status and a 10% surcharge on each succeeding year until a CBA is in place with terms and conditions consistent with the RP. We could also be obligated to make payments to MEPPs if we either cease to have an obligation to contribute to the MEPP or significantly reduce our contributions to the MEPP because we reduce our number of employees who are covered by the relevant MEPP for various reasons, including, but not limited to, layoffs or closure of a subsidiary assuming the MEPP has unfunded vested benefits. The amount of such payments (known as a complete or partial withdrawal liability) would equal our proportionate share of the MEPPs’ unfunded vested benefits. We believe that certain of the MEPPs in which we participate may have unfunded vested benefits. Due to uncertainty regarding future factors that could trigger withdrawal liability, as well as the absence of specific information regarding the MEPP’s current financial situation, we are unable to determine: (a) the amount and timing of a future withdrawal liability, if any, and (b) whether our participation in these MEPPs could have a material adverse impact on our financial position, results of operations, or liquidity. We did not record any material withdrawal liabilities for the years ended December 31, 2022, 2021, and 2020. NOTE 14 - RETIREMENT PLANS (Continued) The following table lists all MEPPs to which our contributions exceeded $2.0 million in 2022. This table also lists all MEPPs to which we contributed in 2022 in excess of $0.5 million for MEPPs in the critical status, “red zone,” and $1.0 million for MEPPs in the endangered status, “orange or yellow zones,” as defined by the PPA (in thousands): Pension Fund EIN/Pension Plan Number PPA Zone Status (1) FIP/RP Contributions Contributions greater than 5% of total plan contributions (2) Expiration 2022 2021 2022 2021 2020 National Automatic Sprinkler Industry Pension Fund 52-6054620 001 Green Green NA $ 21,583 $ 20,987 $ 17,504 Yes May 2023 to United Association National Pension Fund (Formerly Plumbers & Pipefitters National Pension Fund) 52-6152779 001 Green Green NA 15,288 14,723 14,095 No February 2023 to National Electrical Benefit Fund 53-0181657 001 Green Green NA 15,192 12,310 11,573 No May 2023 to Sheet Metal Workers National Pension Fund 52-6112463 001 Green Yellow NA 9,505 10,307 11,621 No May 2023 to Pension, Hospitalization & Benefit Plan of the Electrical Industry-Pension Trust Account 13-6123601 001 Green Green NA 8,122 7,355 6,750 No April 2023 to Electrical Workers Local No. 26 Pension Trust Fund 52-6117919 001 Green Green NA 7,844 9,346 7,086 Yes May 2023 to August 2024 Plumbers Pipefitters & Mechanical Equipment Service Local Union 392 Pension Plan 31-0655223 001 Red Red Implemented 7,674 7,110 5,667 Yes May 2025 Central Pension Fund of the IUOE & Participating Employers 36-6052390 001 Green Green NA 7,651 6,627 6,115 No March 2023 to Boilermaker-Blacksmith National Pension Trust 48-6168020 001 Green Yellow NA 6,434 3,479 1,574 No September 2023 to Sheet Metal Workers Pension Plan of Northern California 51-6115939 001 Red Red Implemented 6,074 7,850 6,605 No June 2023 to June 2026 Edison Pension Plan 93-6061681 001 Green Green NA 5,325 4,229 3,864 Yes December 2023 Pipefitters Union Local 537 Pension Fund 51-6030859 001 Green Green NA 5,039 5,922 4,275 Yes August 2025 Southern California Pipe Trades Retirement Fund 51-6108443 001 Green Green NA 4,650 6,272 4,043 No August 2023 to August 2026 Heating, Piping & Refrigeration Pension Fund 52-1058013 001 Green Green NA 4,625 5,591 3,349 Yes July 2023 to July 2025 Southern California IBEW-NECA Pension Trust Fund 95-6392774 001 Yellow Yellow Implemented 4,287 4,876 5,719 No June 2023 to San Diego Electrical Pension Plan 95-6101801 001 Green Green NA 4,258 4,068 4,383 Yes May 2024 IBEW 332 Pension Fund - Part A 94-2688032 004 Green Green NA 4,177 2,339 1,211 No May 2023 to May 2024 U.A. Local 393 Pension Trust Fund Defined Benefit 94-6359772 002 Green Green NA 3,517 3,507 3,168 Yes June 2023 to July 2027 Electrical Contractors Association of the City of Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Pension Plan 2 51-6030753 002 Green Green NA 3,516 4,225 3,004 No June 2023 Eighth District Electrical Pension Fund 84-6100393 001 Green Green NA 3,339 3,298 3,242 Yes May 2023 to August 2024 Northern California Pipe Trades Pension Plan 94-3190386 001 Green Green NA 3,238 2,663 2,463 No June 2023 to June 2024 NOTE 14 - RETIREMENT PLANS (Continued) Pension Fund EIN/Pension Plan Number PPA Zone Status (1) FIP/RP Contributions Contributions greater than 5% of total plan contributions (2) Expiration 2022 2021 2022 2021 2020 NECA-IBEW Pension Trust Fund 51-6029903 001 Green Green NA 3,034 2,491 2,369 No May 2023 to December 2023 Arizona Pipe Trades Pension Trust Fund 86-6025734 001 Green Green NA 2,940 2,020 2,301 Yes June 2023 to June 2024 Sheet Metal Workers Pension Plan of Southern California, Arizona & Nevada 95-6052257 001 Green Yellow NA 2,921 3,322 2,706 No June 2023 to June 2026 Electrical Workers Pension Plan Local 103 IBEW 04-6063734 001 Green Green NA 2,900 — — Yes August 2023 IBEW Local 701 Pension Fund 36-6455509 001 Green Green NA 2,625 1,276 1,197 Yes May 2023 to September 2023 IBEW Local No. 82 Pension Plan 31-6127268 001 Green Green NA 2,549 956 18 Yes December 2023 to October 2025 Local No. 697 IBEW and Electrical Industry Pension Fund 51-6133048 001 Green Green NA 2,287 1,753 1,583 Yes May 2023 U.A. Local 38 Defined Benefit Pension Fund 94-1285319 001 Green Green NA 2,010 1,903 2,874 No June 2023 Plumbing & Pipe Fitting Local 219 Pension Fund 34-6682376 001 Red Red Implemented 1,172 1,167 1,680 Yes May 2023 Plumbers & Pipefitters Local 162 Pension Fund 31-6125999 001 Yellow Yellow Implemented 1,132 1,034 969 Yes May 2023 Steamfitters Local Union No. 420 Pension Plan 23-2004424 001 Red Red Implemented 1,018 677 553 No May 2023 to April 2024 Carpenters Pension Trust Fund for Northern California 94-6050970 001 Red Red Implemented 532 568 385 No June 2023 Other Multiemployer Pension Plans 59,707 56,830 53,780 Various Total Contributions $ 236,165 $ 221,081 $ 197,726 _________________ (1) The zone status represents the most recent available information for the respective MEPP, which may be 2021 or earlier for the 2022 year and 2020 or earlier for the 2021 year. In general, plans with a “green” zone status have a funding ratio of at least 80%, plans with an “orange” or “yellow” zone status have a funding ratio of between 65% and less than 80%, and plans with a “red” zone status are less than 65% funded. (2) This information was obtained from the respective plan’s Form 5500 (“Forms”) for the most current available filing. These dates may not correspond with our fiscal year contributions. The percentages of contributions are based upon disclosures contained in the plans’ Forms. Those Forms, among other things, disclose the names of individual participating employers whose annual contributions account for more than 5% of the aggregate annual amount contributed by all participating employers for a plan year. Accordingly, if the annual contribution of two or more of our subsidiaries each accounted for less than 5% of such contributions, but in the aggregate accounted for in excess of 5% of such contributions, that greater percentage is not available and therefore is not disclosed. The nature and diversity of our operations may result in volatility in the amount of our contributions to a particular MEPP for any given period. That is because, in any given market, a change in the mix, volume of, or size of our projects could result in a change in our direct labor force and a corresponding change in our contributions to the MEPP(s) dictated by the applicable CBA. Additionally, the amount of contributions to a particular MEPP could also be affected by the terms of the CBA, which could require at a particular time, an increase in the contribution rate and/or surcharges. Acquisitions made by us since 2020 have resulted in incremental contributions to various MEPPs of approximately $8.8 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 December 31, 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 $1.5 billion, which represents approximately 20% 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 December 31, 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. Hazardous Materials We are subject to regulation with respect to the handling or disposal of certain materials used in the performance of our services, 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. Collective Bargaining Agreements At December 31, 2022, we employed approximately 35,500 people, approximately 60% of whom are represented by various unions pursuant to approximately 450 collective bargaining agreements between our individual subsidiaries or trade associations and local unions, as well as two collective bargaining agreements that are national or regional in scope. We believe that our relations with our labor unions are generally positive. 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES We lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset. Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements. Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. We account for these non-lease components together with the associated lease component for each of our asset classes. The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments. Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability. Lease Position The following table presents our lease-related assets and liabilities as of December 31, 2022 and 2021 (in thousands): Classification on the Consolidated Balance Sheet December 31, December 31, Assets Operating lease assets Operating lease right-of-use assets $ 268,063 $ 260,778 Finance lease assets Property, plant and equipment, net 6,117 7,666 Total lease assets $ 274,180 $ 268,444 Liabilities Current Operating Operating lease liabilities, current $ 67,218 $ 57,814 Finance Current maturities of long-term debt and finance lease liabilities 2,652 3,320 Noncurrent Operating Operating lease liabilities, long-term 220,764 220,836 Finance Long-term debt and finance lease liabilities 3,807 4,717 Total lease liabilities $ 294,441 $ 286,687 NOTE 16 - LEASES (Continued) Lease Costs The following table presents information related to our lease expense for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Finance lease expense: Amortization expense $ 3,550 $ 4,255 $ 4,562 Interest expense 178 255 355 Operating lease expense 77,143 70,928 69,208 Short-term lease expense (1) 185,061 150,500 139,706 Variable lease expense 6,782 5,421 5,441 Total lease expense $ 272,714 $ 231,359 $ 219,272 _________________ (1) Short-term lease expense includes both leases and rentals with initial terms of one year or less and predominantly represents equipment used on construction projects. Sublease rental income was approximately $3.8 million, $0.2 million, and $0.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Lease Term and Discount Rate The following table presents certain information related to the lease terms and discount rates for our leases as of December 31, 2022 and 2021: December 31, December 31, Weighted-average remaining lease term: Operating leases 5.9 years 6.4 years Finance leases 2.9 years 2.9 years Weighted-average discount rate: Operating leases 3.45 % 3.20 % Finance leases 2.85 % 2.61 % Other Information The following table presents supplemental cash flow information related to our leases for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 74,927 $ 69,797 $ 65,016 Operating cash flows used for finance leases $ 178 $ 255 $ 355 Financing cash flows used for finance leases $ 3,551 $ 4,189 $ 4,470 Right-of-use assets obtained in exchange for new operating lease liabilities $ 75,027 $ 80,661 $ 55,895 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,209 $ 2,301 $ 4,558 NOTE 16 - LEASES (Continued) Maturity of Lease Liabilities The following table reconciles our future minimum lease payments on an undiscounted cash flow basis to our lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 75,479 $ 2,790 2024 58,013 2,145 2025 48,529 1,080 2026 40,055 441 2027 29,132 148 Thereafter 67,803 128 Total minimum lease payments 319,011 6,732 Less: Amount of lease payments representing interest (31,029) (273) Present value of future minimum lease payments $ 287,982 $ 6,459 Current portion of lease liabilities $ 67,218 $ 2,652 Noncurrent portion of lease liabilities 220,764 3,807 Present value of future minimum lease payments $ 287,982 $ 6,459 |
Leasee, Finance Leases | LEASES We lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset. Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements. Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. We account for these non-lease components together with the associated lease component for each of our asset classes. The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments. Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability. Lease Position The following table presents our lease-related assets and liabilities as of December 31, 2022 and 2021 (in thousands): Classification on the Consolidated Balance Sheet December 31, December 31, Assets Operating lease assets Operating lease right-of-use assets $ 268,063 $ 260,778 Finance lease assets Property, plant and equipment, net 6,117 7,666 Total lease assets $ 274,180 $ 268,444 Liabilities Current Operating Operating lease liabilities, current $ 67,218 $ 57,814 Finance Current maturities of long-term debt and finance lease liabilities 2,652 3,320 Noncurrent Operating Operating lease liabilities, long-term 220,764 220,836 Finance Long-term debt and finance lease liabilities 3,807 4,717 Total lease liabilities $ 294,441 $ 286,687 NOTE 16 - LEASES (Continued) Lease Costs The following table presents information related to our lease expense for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Finance lease expense: Amortization expense $ 3,550 $ 4,255 $ 4,562 Interest expense 178 255 355 Operating lease expense 77,143 70,928 69,208 Short-term lease expense (1) 185,061 150,500 139,706 Variable lease expense 6,782 5,421 5,441 Total lease expense $ 272,714 $ 231,359 $ 219,272 _________________ (1) Short-term lease expense includes both leases and rentals with initial terms of one year or less and predominantly represents equipment used on construction projects. Sublease rental income was approximately $3.8 million, $0.2 million, and $0.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Lease Term and Discount Rate The following table presents certain information related to the lease terms and discount rates for our leases as of December 31, 2022 and 2021: December 31, December 31, Weighted-average remaining lease term: Operating leases 5.9 years 6.4 years Finance leases 2.9 years 2.9 years Weighted-average discount rate: Operating leases 3.45 % 3.20 % Finance leases 2.85 % 2.61 % Other Information The following table presents supplemental cash flow information related to our leases for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 74,927 $ 69,797 $ 65,016 Operating cash flows used for finance leases $ 178 $ 255 $ 355 Financing cash flows used for finance leases $ 3,551 $ 4,189 $ 4,470 Right-of-use assets obtained in exchange for new operating lease liabilities $ 75,027 $ 80,661 $ 55,895 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,209 $ 2,301 $ 4,558 NOTE 16 - LEASES (Continued) Maturity of Lease Liabilities The following table reconciles our future minimum lease payments on an undiscounted cash flow basis to our lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 75,479 $ 2,790 2024 58,013 2,145 2025 48,529 1,080 2026 40,055 441 2027 29,132 148 Thereafter 67,803 128 Total minimum lease payments 319,011 6,732 Less: Amount of lease payments representing interest (31,029) (273) Present value of future minimum lease payments $ 287,982 $ 6,459 Current portion of lease liabilities $ 67,218 $ 2,652 Noncurrent portion of lease liabilities 220,764 3,807 Present value of future minimum lease payments $ 287,982 $ 6,459 |
Additional Cash Flow Informatio
Additional Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Cash Flow Information | ADDITIONAL CASH FLOW INFORMATION The following table presents information about cash paid for interest and income taxes for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Cash paid during the year for: Interest $ 11,653 $ 5,259 $ 8,289 Income taxes $ 168,732 $ 130,811 $ 145,386 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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, healthcare, utility, and institutional customers through approximately 100 operating subsidiaries. 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. We refer to our United States electrical construction and facilities services segment and our United States mechanical construction and facilities services segment together as our United States construction segments. 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 18 - SEGMENT INFORMATION (Continued) The following tables present financial information for each of our reportable segments for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Revenues from unrelated entities: United States electrical construction and facilities services $ 2,433,114 $ 2,029,893 $ 1,829,979 United States mechanical construction and facilities services 4,326,674 3,952,586 3,516,789 United States building services 2,720,487 2,424,743 2,078,835 United States industrial services 1,118,767 986,407 940,895 Total United States operations 10,599,042 9,393,629 8,366,498 United Kingdom building services 477,078 509,951 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 2022 2021 2020 Total revenues: United States electrical construction and facilities services $ 2,438,916 $ 2,033,863 $ 1,836,370 United States mechanical construction and facilities services 4,373,050 3,966,123 3,529,880 United States building services 2,821,649 2,523,180 2,161,487 United States industrial services 1,175,469 1,021,217 956,373 Less intersegment revenues (210,042) (150,754) (117,612) Total United States operations 10,599,042 9,393,629 8,366,498 United Kingdom building services 477,078 509,951 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 2022 2021 2020 Operating income (loss): United States electrical construction and facilities services $ 148,728 $ 169,355 $ 162,538 United States mechanical construction and facilities services 332,294 314,420 290,444 United States building services 144,670 122,724 115,523 United States industrial services 19,787 (1,666) 1,175 Total United States operations 645,479 604,833 569,680 United Kingdom building services 29,838 27,998 20,660 Corporate administration (110,440) (102,031) (98,542) Restructuring expenses — — (2,214) Impairment loss on goodwill, identifiable intangible assets, — — (232,750) Total operations 564,877 530,800 256,834 Other items: Net periodic pension (cost) income 4,311 3,625 2,980 Interest expense (13,199) (6,071) (9,009) Interest income 2,761 949 1,521 Income before income taxes $ 558,750 $ 529,303 $ 252,326 NOTE 18 - SEGMENT INFORMATION (Continued) 2022 2021 2020 Capital expenditures: United States electrical construction and facilities services $ 11,228 $ 4,985 $ 8,679 United States mechanical construction and facilities services 12,004 10,182 11,347 United States building services 13,229 11,465 10,259 United States industrial services 9,905 6,159 9,595 Total United States operations 46,366 32,791 39,880 United Kingdom building services 2,816 3,015 3,693 Corporate administration 107 386 4,396 Total operations $ 49,289 $ 36,192 $ 47,969 2022 2021 2020 Depreciation and amortization of property, plant and equipment: United States electrical construction and facilities services $ 7,543 $ 7,229 $ 6,734 United States mechanical construction and facilities services 11,556 11,403 10,964 United States building services 12,900 12,041 12,003 United States industrial services 10,888 11,723 12,405 Total United States operations 42,887 42,396 42,106 United Kingdom building services 2,752 3,938 3,046 Corporate administration 1,657 2,013 1,569 Total operations $ 47,296 $ 48,347 $ 46,721 December 31, 2022 December 31, 2021 December 31, 2020 Contract assets: United States electrical construction and facilities services $ 75,603 $ 48,382 $ 30,986 United States mechanical construction and facilities services 100,109 89,538 67,443 United States building services 56,217 42,382 31,661 United States industrial services 10,727 18,992 11,311 Total United States operations 242,656 199,294 141,401 United Kingdom building services 30,520 30,849 30,555 Total operations $ 273,176 $ 230,143 $ 171,956 December 31, 2022 December 31, 2021 December 31, 2020 Contract liabilities: United States electrical construction and facilities services $ 271,161 $ 200,966 $ 183,499 United States mechanical construction and facilities services 597,001 388,039 373,957 United States building services 182,273 148,812 117,643 United States industrial services 17,746 16,481 17,304 Total United States operations 1,068,181 754,298 692,403 United Kingdom building services 30,082 33,836 29,849 Total operations $ 1,098,263 $ 788,134 $ 722,252 NOTE 18 - SEGMENT INFORMATION (Continued) December 31, 2022 December 31, 2021 December 31, 2020 Long-lived assets: United States electrical construction and facilities services $ 302,448 $ 237,766 $ 177,692 United States mechanical construction and facilities services 519,335 515,741 522,800 United States building services 496,206 498,692 481,733 United States industrial services 341,646 365,563 394,505 Total United States operations 1,659,635 1,617,762 1,576,730 United Kingdom building services 10,320 11,402 12,017 Corporate administration 990 2,535 4,356 Total operations $ 1,670,945 $ 1,631,699 $ 1,593,103 December 31, 2022 December 31, 2021 December 31, 2020 Total assets: United States electrical construction and facilities services $ 1,078,405 $ 855,417 $ 680,060 United States mechanical construction and facilities services 1,845,518 1,672,546 1,552,567 United States building services 1,196,001 1,089,844 1,022,290 United States industrial services 552,545 589,017 550,513 Total United States operations 4,672,469 4,206,824 3,805,430 United Kingdom building services 255,547 241,740 227,894 Corporate administration 596,591 992,882 1,030,516 Total operations $ 5,524,607 $ 5,441,446 $ 5,063,840 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Description Balance at Beginning of Year Costs and Cumulative Effect Adjustment (1) Deductions (2) Balance at Allowance for credit losses Year Ended December 31, 2022 $ 23,534 5,166 — (6,318) $ 22,382 Year Ended December 31, 2021 $ 18,031 8,041 — (2,538) $ 23,534 Year Ended December 31, 2020 $ 14,466 3,269 3,150 (2,854) $ 18,031 _________________ (1) Represents the adjustment to our allowance for credit losses, which was recorded to retained earnings upon the adoption of Accounting Standards Codification Topic 326. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [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 – Significant unobservable inputs that reflect the reporting entity’s own assumptions. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and the subsidiaries and joint ventures it controls. All intercompany accounts and transactions have been eliminated. Investments over which we exercise significant influence, but do not control, are accounted for using the equity method of accounting. For joint ventures that have been accounted for using the consolidation method of accounting, noncontrolling interests represent the allocation of earnings to our joint venture partners who either have a minority-ownership interest in the joint venture or are not the primary beneficiary of the joint venture. |
Principles of Preparation | Principles of Preparation The preparation of the consolidated financial statements, in conformity with accounting principles generally accepted in the United States, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. 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. |
Revenue Recognition | Revenue Recognition Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Refer to Note 3 - Revenue from Contracts with Customers of the notes to consolidated financial statements for additional information. 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) (2) Identify the performance obligations in the contract At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “unit of account” for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract. In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry. Our contracts are often modified through change orders to account for changes in the scope and price of the goods or services we are providing. Although the Company evaluates each change order to determine whether such modification creates a separate performance obligation, the majority of our change orders are for goods or services that are not distinct within the context of our original contract and, therefore, are not treated as separate performance obligations. (3) Determine the transaction price The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability-weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current, and estimates of future performance. The expected value method is typically utilized in situations where a contract contains a large number of possible outcomes while the most likely amount method is typically utilized in situations where a contract has only two possible outcomes. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts. Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment of and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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. (4) Allocate the transaction price to the 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. NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 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. Changes in Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated financial statements, we consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. We maintain a centralized cash management system whereby our excess cash balances are invested in high quality short-term money market instruments, which are considered cash equivalents. We have cash balances in certain of our domestic bank accounts that exceed federally insured limits. |
Accounts Receivable and Allowance for Credit Losses | 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. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined principally using the average cost method. |
Leases | Leases At the inception of a contract, we determine whether the arrangement is or contains a lease. Leases are classified as either operating or finance, based on our evaluation of certain criteria. With the exception of short-term leases (leases with an initial term of 12 months or less), we record right-of-use assets and corresponding lease liabilities on the Consolidated Balance Sheets for all leases with contractual fixed payments. Lease liabilities are measured at the present value of remaining lease payments, while right-of-use assets are initially set equal to the lease liability, as adjusted for any payments made prior to lease commencement, lease incentives, and any initial direct costs incurred by us. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease, and right-of-use assets are subsequently re-measured to reflect the effect of uneven lease payments. For finance leases, right-of-use assets are amortized on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset. Expenses for finance leases include the amortization of right-of-use assets, which is recorded as depreciation and amortization expense, and interest expense, which reflects interest accrued on the lease liability. Short-term leases are not recorded on the Consolidated Balance Sheets but are expensed on a straight-line basis over the lease term. The majority of the Company’s short-term leases relate to equipment used on construction projects. Such equipment leases are considered short-term in nature unless it is reasonably certain that the equipment will be leased for a period greater than 12 months. Refer to Note 16 - Leases of the notes to consolidated financial statements for additional information. We lease real estate, vehicles, and equipment under various arrangements which are classified as either operating or finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset. Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements. Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. We account for these non-lease components together with the associated lease component for each of our asset classes. The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation, including amortization of assets under finance leases, is recorded principally using the straight-line method over estimated useful lives of 3 to 10 years for machinery and equipment, 3 to 7 years for vehicles, furniture and fixtures and computer hardware/software, and 25 years for buildings. Leasehold improvements are amortized over the shorter of the remaining lease term or the expected useful life of the improvement. |
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets | Goodwill, Identifiable Intangible Assets, and Other Long-Lived Assets Goodwill and indefinite-lived intangible assets, such as trade names, are evaluated at least annually for impairment (each October 1, absent any earlier identified impairment indicators) and are written down if impaired. Identifiable intangible assets with finite lives are amortized over their useful lives and are reviewed for impairment whenever facts and circumstances indicate that their carrying values may not be fully recoverable. See Note 8 - Goodwill, Identifiable Intangible Assets, and Other Long-Lived Assets of the notes to consolidated financial statements for additional information. |
Insurance Liabilities | 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. |
Foreign Operations | Foreign Operations The financial statements and transactions of our foreign subsidiaries are maintained in their functional currency and translated into U.S. dollars when preparing our consolidated financial statements. Statements of operations, comprehensive income, and cash flows are translated using weighted average monthly exchange rates, while balance sheets are translated at month-end exchange rates. Translation adjustments are recorded as “Accumulated other comprehensive loss,” a separate component of “Equity.” |
Income Taxes | Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and income tax bases of assets and liabilities as well as for net operating loss and tax credit carryforwards. Deferred income taxes are valued using enacted tax rates expected to be in effect when income taxes are paid or recovered, with the effect of a change in tax laws or rates recognized in the statement of operations in the periods in which such change is enacted. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Deferred income taxes are recorded net of a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making such determination, we consider all available evidence, including projections of future taxable income, tax-planning strategies, and recent results of operations. |
Valuation of Share-based Compensation Plans | Valuation of Share-Based Compensation Our share-based compensation plans and programs are administered by our Board of Directors or its Compensation and Personnel Committee. See Note 13 - Share-Based Compensation Plans of the notes to consolidated financial statements for additional information regarding these share-based compensation plans and programs. We recognize all share-based payments issued to acquire goods or services in the statement of operations based on the fair value of such payments. Compensation expense related to share-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation expense are recognized in the Consolidated Statements of Operations when the underlying awards vest or are settled. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Losses | The change in the allowance for credit losses for the year ended December 31, 2022 was as follows (in thousands): Balance at December 31, 2021 $ 23,534 Provision for credit losses 5,166 Amounts written off against the allowance, net of recoveries (6,318) Balance at December 31, 2022 $ 22,382 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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 (in thousands): 2022 % of 2021 % of 2020 % of United States electrical construction and facilities services: Commercial market sector $ 1,320,392 54 % $ 1,063,242 52 % $ 970,576 53 % Manufacturing market sector 301,606 12 % 230,894 11 % 241,415 13 % Healthcare market sector 178,348 7 % 107,442 5 % 79,275 4 % Institutional market sector 154,077 6 % 178,729 9 % 146,759 8 % Transportation market sector 166,563 7 % 196,313 10 % 192,656 10 % Water and wastewater market sector 21,251 1 % 14,962 1 % 6,882 1 % Hospitality market sector 17,563 1 % 15,346 1 % 23,797 1 % Short duration projects (1) 211,795 9 % 185,277 9 % 145,370 8 % Service work 65,709 3 % 40,963 2 % 28,287 2 % 2,437,304 2,033,168 1,835,017 Less intersegment revenues (4,190) (3,275) (5,038) Total segment revenues $ 2,433,114 $ 2,029,893 $ 1,829,979 2022 % of 2021 % of 2020 % of United States mechanical construction and facilities services: Commercial market sector $ 1,711,772 39 % $ 1,524,685 39 % $ 1,315,973 37 % Manufacturing market sector 632,332 15 % 579,176 15 % 486,753 14 % Healthcare market sector 480,954 11 % 488,910 12 % 346,315 10 % Institutional market sector 353,611 8 % 280,463 7 % 377,738 11 % Transportation market sector 57,026 1 % 84,503 2 % 70,692 2 % Water and wastewater market sector 261,500 6 % 213,315 5 % 185,996 5 % Hospitality market sector 29,511 1 % 38,405 1 % 40,079 1 % Short duration projects (1) 337,522 8 % 297,673 8 % 335,262 10 % Service work 473,328 11 % 452,291 11 % 365,067 10 % 4,337,556 3,959,421 3,523,875 Less intersegment revenues (10,882) (6,835) (7,086) Total segment revenues $ 4,326,674 $ 3,952,586 $ 3,516,789 _________________ (1) Represents those projects which generally are completed within three months or less. 2022 % of 2021 % of 2020 % of United States building services: Mobile mechanical services $ 1,713,989 63 % $ 1,560,120 64 % $ 1,323,499 64 % Commercial site-based services 810,210 30 % 680,351 28 % 587,346 28 % Government site-based services 196,288 7 % 184,272 8 % 167,990 8 % Total segment revenues $ 2,720,487 $ 2,424,743 $ 2,078,835 NOTE 3 - REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) 2022 % of 2021 % of 2020 % of United States industrial services: Field services $ 972,894 87 % $ 853,143 86 % $ 813,872 86 % Shop services 145,873 13 % 133,264 14 % 127,023 14 % Total segment revenues $ 1,118,767 $ 986,407 $ 940,895 Total United States operations $ 10,599,042 $ 9,393,629 $ 8,366,498 2022 % of 2021 % of 2020 % of United Kingdom building services: Service work $ 221,123 46 % $ 261,889 51 % $ 221,373 51 % Project work 255,955 54 % 248,062 49 % 209,190 49 % Total segment revenues $ 477,078 $ 509,951 $ 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 |
Contract Assets and Contract Liabilities | Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Contract assets, current $ 273,176 $ 230,143 Contract assets, non-current — — Contract liabilities, current (1,098,263) (788,134) Contract liabilities, non-current (2,273) (2,505) Net contract liabilities $ (827,360) $ (560,496) |
Net Contract Liabilities on Uncompleted Construction Projects | Included within net contract liabilities were $763.2 million and $500.3 million of net contract liabilities on uncompleted construction projects as of December 31, 2022 and 2021, respectively, as follows (in thousands): December 31, 2022 December 31, 2021 Costs incurred on uncompleted construction contracts $ 13,231,612 $ 11,034,038 Estimated earnings, thereon 2,025,929 1,731,479 15,257,541 12,765,517 Less: billings to date 16,020,704 13,265,865 $ (763,163) $ (500,348) |
Remaining Performance Obligations | The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations (in thousands, except for percentages): December 31, 2022 % of Total Remaining performance obligations: United States electrical construction and facilities services $ 2,014,079 27 % United States mechanical construction and facilities services 4,008,919 54 % United States building services 1,151,031 15 % United States industrial services 124,653 2 % Total United States operations 7,298,682 98 % United Kingdom building services 160,617 2 % Total operations $ 7,459,299 100 % |
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 Greater than one year Remaining performance obligations: United States electrical construction and facilities services $ 1,692,127 $ 321,952 United States mechanical construction and facilities services 3,154,465 854,454 United States building services 1,050,462 100,569 United States industrial services 118,642 6,011 Total United States operations 6,015,696 1,282,986 United Kingdom building services 112,687 47,930 Total operations $ 6,128,383 $ 1,330,916 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Common Share | The following table summarizes our calculation of Basic and Diluted Earnings per Common Share (“EPS”) for the years ended December 31, 2022, 2021, and 2020 (in thousands, except share and per share data): 2022 2021 2020 Numerator: Net income attributable to EMCOR Group, Inc. $ 406,122 $ 383,532 $ 132,943 Denominator: Weighted average shares outstanding used to compute basic earnings 49,931,940 54,068,982 55,196,173 Effect of dilutive securities—Share-based awards 204,322 278,552 225,098 Shares used to compute diluted earnings per common share 50,136,262 54,347,534 55,421,271 Basic earnings per common share $ 8.13 $ 7.09 $ 2.41 Diluted earnings per common share $ 8.10 $ 7.06 $ 2.40 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Raw materials and construction materials $ 74,014 $ 46,186 Work in process 11,627 7,912 Inventories $ 85,641 $ 54,098 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Machinery and equipment $ 206,249 $ 188,022 Vehicles 68,858 65,946 Furniture and fixtures 25,253 23,698 Computer hardware/software 109,166 108,830 Land, buildings and leasehold improvements 130,358 127,736 Construction in progress 6,060 6,125 Finance lease right-of-use assets (1) 6,117 7,666 552,061 528,023 Accumulated depreciation and amortization (394,242) (375,957) $ 157,819 $ 152,066 ____________________________________________ (1) Finance lease right-of-use assets are recorded net of accumulated amortization. |
Goodwill, Identifiable Intang_2
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment during the years ended December 31, 2022 and 2021 were as follows (in thousands): United States United States United States United States Total Balance at December 31, 2020 $ 142,545 $ 299,618 $ 302,132 $ 107,488 $ 851,783 Acquisitions and purchase price adjustments 24,467 4,269 9,749 — 38,485 Intersegment transfers (7,500) — 900 6,600 — Balance at December 31, 2021 159,512 303,887 312,781 114,088 890,268 Acquisitions and purchase price adjustments 17,601 6,942 4,340 — 28,883 Intersegment transfers 900 4,500 (5,400) — — Balance at December 31, 2022 $ 178,013 $ 315,329 $ 311,721 $ 114,088 $ 919,151 |
Schedule of Intangible Assets | Identifiable intangible assets as of December 31, 2022 and 2021 consisted of the following (in thousands): December 31, 2022 Gross Accumulated Accumulated Impairment Charge Total Customer relationships $ 762,516 $ (427,211) $ (4,834) $ 330,471 Trade names (indefinite-lived) 289,121 — (58,933) 230,188 Developed technology/Vendor network 95,661 (74,238) — 21,423 Trade names (finite-lived) 33,791 (25,690) — 8,101 Contract backlog 83,245 (79,453) — 3,792 Total $ 1,264,334 $ (606,592) $ (63,767) $ 593,975 December 31, 2021 Gross Accumulated Accumulated Total Customer relationships $ 717,666 $ (374,764) $ (4,834) $ 338,068 Trade names (indefinite-lived) 274,721 — (58,933) 215,788 Developed technology/Vendor network 95,661 (69,688) — 25,973 Trade names (finite-lived) 32,366 (24,180) — 8,186 Contract backlog 77,995 (76,645) — 1,350 Total $ 1,198,409 $ (545,277) $ (63,767) $ 589,365 |
Schedule of Estimated Future Amortization Expense | The following table presents the estimated future amortization expense of identifiable intangible assets in the following years (in thousands): 2023 $ 63,366 2024 59,507 2025 58,002 2026 51,883 2027 38,949 Thereafter 92,080 $ 363,787 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Term loan, interest payable at varying amounts through 2025 $ 242,813 $ 256,688 Unamortized debt issuance costs (2,080) (3,040) Finance lease liabilities 6,459 8,037 Total debt 247,192 261,685 Less: current maturities 15,567 16,235 Total long-term debt $ 231,625 $ 245,450 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 (in thousands): Assets at Fair Value as of December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 456,439 $ — $ — $ 456,439 Restricted cash (2) 629 — — 629 Deferred compensation plan assets (3) 36,882 — — 36,882 Total $ 493,950 $ — $ — $ 493,950 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 December 31, 2022 and 2021, we had $209.4 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) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | For the years ended December 31, 2022, 2021, and 2020, our income tax provision was calculated based on income before income taxes as follows (in thousands): 2022 2021 2020 United States $ 523,273 $ 497,421 $ 228,181 Foreign 35,477 31,882 24,145 $ 558,750 $ 529,303 $ 252,326 |
Schedule of Income Tax Provision | The income tax provision for the years ended December 31, 2022, 2021, and 2020 consisted of the following (in thousands): 2022 2021 2020 Current provision: Federal $ 100,707 $ 95,782 $ 115,633 State and local 36,547 35,883 36,182 Foreign 4,891 4,420 3,922 142,145 136,085 155,737 Deferred provision (benefit) 10,483 9,517 (36,354) $ 152,628 $ 145,602 $ 119,383 |
Schedule of U.S. Statutory Income Tax Rate Rec | Items accounting for the differences between income taxes computed at the federal statutory rate and the income tax provision for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands): 2022 2021 2020 Federal income taxes at the statutory rate $ 117,338 $ 111,118 $ 52,989 State and local income taxes, net of federal tax benefits 29,519 31,257 19,290 Permanent differences 5,261 5,316 5,860 Non-deductible impairment charges — — 40,165 Foreign income taxes (including UK statutory rate changes) (155) (2,241) (140) Other 665 152 1,219 $ 152,628 $ 145,602 $ 119,383 |
Schedule of Deferred Tax Assets and Liabilities | The deferred income tax assets and deferred income tax liabilities recorded as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 December 31, 2021 Deferred income tax assets: Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes: Insurance liabilities $ 57,278 $ 50,316 Operating lease liabilities 78,391 76,451 Deferred compensation 40,682 40,080 Accrued federal payroll taxes (1) — 14,235 Other (including liabilities and reserves) 35,584 31,252 Total deferred income tax assets 211,935 212,334 Valuation allowance for deferred tax assets (3,580) (2,465) Net deferred income tax assets 208,355 209,869 Deferred income tax liabilities: Costs capitalized for financial statement purposes and deducted for income tax purposes: Goodwill and identifiable intangible assets (153,767) (154,382) Operating lease right-of-use assets (73,134) (71,759) Depreciation of property, plant and equipment (28,435) (25,341) Pension asset (4,082) (1,847) Other (10,500) (7,491) Total deferred income tax liabilities (269,918) (260,820) Net deferred income tax liabilities $ (61,563) $ (50,951) _________________ (1) Represents employer Social Security tax payments previously deferred under the CARES Act. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of activity of restricted stock units | The following table summarizes activity regarding restricted stock units since December 31, 2019: Shares Weighted Balance, December 31, 2019 417,578 $ 70.24 Granted 137,771 $ 81.56 Forfeited (984) $ 79.17 Vested (156,447) $ 72.72 Balance, December 31, 2020 397,918 $ 73.16 Granted 129,859 $ 96.32 Forfeited (2,242) $ 78.86 Vested (121,067) $ 77.86 Balance, December 31, 2021 404,468 $ 79.16 Granted 107,621 $ 123.52 Forfeited (4,665) $ 105.88 Vested (189,830) $ 67.40 Balance, December 31, 2022 317,594 $ 100.83 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligations and Assets | The change in benefit obligations and assets of the UK Plan for the years ended December 31, 2022 and 2021 consisted of the following components (in thousands): 2022 2021 Change in pension benefit obligation Benefit obligation at beginning of year $ 349,147 $ 383,142 Interest cost 5,693 5,326 Actuarial gain (116,372) (22,071) Benefits paid (11,095) (13,939) Foreign currency exchange rate changes (33,417) (3,311) Benefit obligation at end of year 193,956 349,147 Change in pension plan assets Fair value of plan assets at beginning of year 356,532 347,411 Actual (loss) return on plan assets (105,544) 21,809 Employer contributions 4,875 4,956 Benefits paid (11,095) (13,939) Foreign currency exchange rate changes (34,484) (3,705) Fair value of plan assets at end of year 210,284 356,532 Funded status at end of year $ 16,328 $ 7,385 |
Schedule of Weighted Average Assumptions Used To Calculate Benefit Obligation | The weighted average assumptions used to determine benefit obligations of the UK Plan as of December 31, 2022 and 2021 were as follows: 2022 2021 Discount rate 5.0 % 1.8 % |
Components Of Net Periodic Pension Cost (Income) | The components of net periodic pension cost (income) of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands): 2022 2021 2020 Interest cost $ 5,693 $ 5,326 $ 6,401 Expected return on plan assets (12,088) (12,726) (12,023) Amortization of unrecognized loss 2,073 3,642 2,389 Net periodic pension cost (income) $ (4,322) $ (3,758) $ (3,233) |
Schedule of Weighted Average Assumptions Used To Calculate Net Periodic Pension Cost | The weighted average assumptions used to determine net periodic pension cost of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows: 2022 2021 2020 Discount rate 1.8 % 1.4 % 2.1 % Annual rate of return on plan assets 3.9 % 3.9 % 4.3 % |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Amounts pertaining to the UK Plan not yet reflected in net periodic pension cost and included in accumulated other comprehensive loss were as follows (in thousands): December 31, 2022 December 31, 2021 Unrecognized actuarial losses $ 79,313 $ 89,572 |
Schedule of Weighted Average Asset Allocations and Weighted Average Target Allocations | The weighted average asset allocations and weighted average target allocations at December 31, 2022 and 2021 were as follows: Asset Category Target Actual Actual Debt 75.0 % 80.7 % 76.0 % Cash and cash equivalents 15.0 % 9.4 % 16.5 % Real estate 10.0 % 9.9 % 7.5 % Total 100.0 % 100.0 % 100.0 % |
Schedule of Plan Assets Fair Value Hierarchy | The following tables set forth the fair value of assets of the UK Plan as of December 31, 2022 and 2021 (in thousands): Assets at Fair Value as of December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total Corporate debt funds $ — $ 23,998 $ — $ 23,998 Government bond funds — 45,619 — 45,619 Cash and cash equivalents 19,829 — — 19,829 Total plan assets in fair value hierarchy $ 19,829 $ 69,617 $ — 89,446 Plan assets measured using NAV as a practical expedient: (1) Debt funds 99,990 Real estate funds 20,848 Total plan assets at fair value $ 210,284 Assets at Fair Value as of December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Corporate debt funds $ — $ 67,226 $ — $ 67,226 Government bond funds — 91,899 — 91,899 Cash and cash equivalents 58,772 — — 58,772 Total plan assets in fair value hierarchy $ 58,772 $ 159,125 $ — 217,897 Plan assets measured using NAV as a practical expedient: (1) Debt funds 111,971 Real estate funds 26,664 Total plan assets at fair value $ 356,532 _________________ (1) Certain investments measured using net asset value (“NAV”) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets. |
Schedule of Expected Benefit Payments | The following estimated benefit payments are expected to be made from the UK Plan in the following years (in thousands): Pension 2023 $ 9,884 2024 $ 10,201 2025 $ 10,627 2026 $ 11,106 2027 $ 11,476 Succeeding five years $ 63,182 |
Schedule of Multiemployer Plans | The following table lists all MEPPs to which our contributions exceeded $2.0 million in 2022. This table also lists all MEPPs to which we contributed in 2022 in excess of $0.5 million for MEPPs in the critical status, “red zone,” and $1.0 million for MEPPs in the endangered status, “orange or yellow zones,” as defined by the PPA (in thousands): Pension Fund EIN/Pension Plan Number PPA Zone Status (1) FIP/RP Contributions Contributions greater than 5% of total plan contributions (2) Expiration 2022 2021 2022 2021 2020 National Automatic Sprinkler Industry Pension Fund 52-6054620 001 Green Green NA $ 21,583 $ 20,987 $ 17,504 Yes May 2023 to United Association National Pension Fund (Formerly Plumbers & Pipefitters National Pension Fund) 52-6152779 001 Green Green NA 15,288 14,723 14,095 No February 2023 to National Electrical Benefit Fund 53-0181657 001 Green Green NA 15,192 12,310 11,573 No May 2023 to Sheet Metal Workers National Pension Fund 52-6112463 001 Green Yellow NA 9,505 10,307 11,621 No May 2023 to Pension, Hospitalization & Benefit Plan of the Electrical Industry-Pension Trust Account 13-6123601 001 Green Green NA 8,122 7,355 6,750 No April 2023 to Electrical Workers Local No. 26 Pension Trust Fund 52-6117919 001 Green Green NA 7,844 9,346 7,086 Yes May 2023 to August 2024 Plumbers Pipefitters & Mechanical Equipment Service Local Union 392 Pension Plan 31-0655223 001 Red Red Implemented 7,674 7,110 5,667 Yes May 2025 Central Pension Fund of the IUOE & Participating Employers 36-6052390 001 Green Green NA 7,651 6,627 6,115 No March 2023 to Boilermaker-Blacksmith National Pension Trust 48-6168020 001 Green Yellow NA 6,434 3,479 1,574 No September 2023 to Sheet Metal Workers Pension Plan of Northern California 51-6115939 001 Red Red Implemented 6,074 7,850 6,605 No June 2023 to June 2026 Edison Pension Plan 93-6061681 001 Green Green NA 5,325 4,229 3,864 Yes December 2023 Pipefitters Union Local 537 Pension Fund 51-6030859 001 Green Green NA 5,039 5,922 4,275 Yes August 2025 Southern California Pipe Trades Retirement Fund 51-6108443 001 Green Green NA 4,650 6,272 4,043 No August 2023 to August 2026 Heating, Piping & Refrigeration Pension Fund 52-1058013 001 Green Green NA 4,625 5,591 3,349 Yes July 2023 to July 2025 Southern California IBEW-NECA Pension Trust Fund 95-6392774 001 Yellow Yellow Implemented 4,287 4,876 5,719 No June 2023 to San Diego Electrical Pension Plan 95-6101801 001 Green Green NA 4,258 4,068 4,383 Yes May 2024 IBEW 332 Pension Fund - Part A 94-2688032 004 Green Green NA 4,177 2,339 1,211 No May 2023 to May 2024 U.A. Local 393 Pension Trust Fund Defined Benefit 94-6359772 002 Green Green NA 3,517 3,507 3,168 Yes June 2023 to July 2027 Electrical Contractors Association of the City of Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Pension Plan 2 51-6030753 002 Green Green NA 3,516 4,225 3,004 No June 2023 Eighth District Electrical Pension Fund 84-6100393 001 Green Green NA 3,339 3,298 3,242 Yes May 2023 to August 2024 Northern California Pipe Trades Pension Plan 94-3190386 001 Green Green NA 3,238 2,663 2,463 No June 2023 to June 2024 NOTE 14 - RETIREMENT PLANS (Continued) Pension Fund EIN/Pension Plan Number PPA Zone Status (1) FIP/RP Contributions Contributions greater than 5% of total plan contributions (2) Expiration 2022 2021 2022 2021 2020 NECA-IBEW Pension Trust Fund 51-6029903 001 Green Green NA 3,034 2,491 2,369 No May 2023 to December 2023 Arizona Pipe Trades Pension Trust Fund 86-6025734 001 Green Green NA 2,940 2,020 2,301 Yes June 2023 to June 2024 Sheet Metal Workers Pension Plan of Southern California, Arizona & Nevada 95-6052257 001 Green Yellow NA 2,921 3,322 2,706 No June 2023 to June 2026 Electrical Workers Pension Plan Local 103 IBEW 04-6063734 001 Green Green NA 2,900 — — Yes August 2023 IBEW Local 701 Pension Fund 36-6455509 001 Green Green NA 2,625 1,276 1,197 Yes May 2023 to September 2023 IBEW Local No. 82 Pension Plan 31-6127268 001 Green Green NA 2,549 956 18 Yes December 2023 to October 2025 Local No. 697 IBEW and Electrical Industry Pension Fund 51-6133048 001 Green Green NA 2,287 1,753 1,583 Yes May 2023 U.A. Local 38 Defined Benefit Pension Fund 94-1285319 001 Green Green NA 2,010 1,903 2,874 No June 2023 Plumbing & Pipe Fitting Local 219 Pension Fund 34-6682376 001 Red Red Implemented 1,172 1,167 1,680 Yes May 2023 Plumbers & Pipefitters Local 162 Pension Fund 31-6125999 001 Yellow Yellow Implemented 1,132 1,034 969 Yes May 2023 Steamfitters Local Union No. 420 Pension Plan 23-2004424 001 Red Red Implemented 1,018 677 553 No May 2023 to April 2024 Carpenters Pension Trust Fund for Northern California 94-6050970 001 Red Red Implemented 532 568 385 No June 2023 Other Multiemployer Pension Plans 59,707 56,830 53,780 Various Total Contributions $ 236,165 $ 221,081 $ 197,726 _________________ (1) The zone status represents the most recent available information for the respective MEPP, which may be 2021 or earlier for the 2022 year and 2020 or earlier for the 2021 year. In general, plans with a “green” zone status have a funding ratio of at least 80%, plans with an “orange” or “yellow” zone status have a funding ratio of between 65% and less than 80%, and plans with a “red” zone status are less than 65% funded. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The following table presents our lease-related assets and liabilities as of December 31, 2022 and 2021 (in thousands): Classification on the Consolidated Balance Sheet December 31, December 31, Assets Operating lease assets Operating lease right-of-use assets $ 268,063 $ 260,778 Finance lease assets Property, plant and equipment, net 6,117 7,666 Total lease assets $ 274,180 $ 268,444 Liabilities Current Operating Operating lease liabilities, current $ 67,218 $ 57,814 Finance Current maturities of long-term debt and finance lease liabilities 2,652 3,320 Noncurrent Operating Operating lease liabilities, long-term 220,764 220,836 Finance Long-term debt and finance lease liabilities 3,807 4,717 Total lease liabilities $ 294,441 $ 286,687 |
Schedule of Lease Costs | The following table presents information related to our lease expense for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Finance lease expense: Amortization expense $ 3,550 $ 4,255 $ 4,562 Interest expense 178 255 355 Operating lease expense 77,143 70,928 69,208 Short-term lease expense (1) 185,061 150,500 139,706 Variable lease expense 6,782 5,421 5,441 Total lease expense $ 272,714 $ 231,359 $ 219,272 _________________ (1) Short-term lease expense includes both leases and rentals with initial terms of one year or less and predominantly represents equipment used on construction projects. Sublease rental income was approximately $3.8 million, $0.2 million, and $0.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Lease Term and Discount Rate The following table presents certain information related to the lease terms and discount rates for our leases as of December 31, 2022 and 2021: December 31, December 31, Weighted-average remaining lease term: Operating leases 5.9 years 6.4 years Finance leases 2.9 years 2.9 years Weighted-average discount rate: Operating leases 3.45 % 3.20 % Finance leases 2.85 % 2.61 % Other Information The following table presents supplemental cash flow information related to our leases for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 74,927 $ 69,797 $ 65,016 Operating cash flows used for finance leases $ 178 $ 255 $ 355 Financing cash flows used for finance leases $ 3,551 $ 4,189 $ 4,470 Right-of-use assets obtained in exchange for new operating lease liabilities $ 75,027 $ 80,661 $ 55,895 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,209 $ 2,301 $ 4,558 |
Schedule of Maturity of Operating Leases | The following table reconciles our future minimum lease payments on an undiscounted cash flow basis to our lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 75,479 $ 2,790 2024 58,013 2,145 2025 48,529 1,080 2026 40,055 441 2027 29,132 148 Thereafter 67,803 128 Total minimum lease payments 319,011 6,732 Less: Amount of lease payments representing interest (31,029) (273) Present value of future minimum lease payments $ 287,982 $ 6,459 Current portion of lease liabilities $ 67,218 $ 2,652 Noncurrent portion of lease liabilities 220,764 3,807 Present value of future minimum lease payments $ 287,982 $ 6,459 |
Schedule of Maturity of Finance Leases | The following table reconciles our future minimum lease payments on an undiscounted cash flow basis to our lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 75,479 $ 2,790 2024 58,013 2,145 2025 48,529 1,080 2026 40,055 441 2027 29,132 148 Thereafter 67,803 128 Total minimum lease payments 319,011 6,732 Less: Amount of lease payments representing interest (31,029) (273) Present value of future minimum lease payments $ 287,982 $ 6,459 Current portion of lease liabilities $ 67,218 $ 2,652 Noncurrent portion of lease liabilities 220,764 3,807 Present value of future minimum lease payments $ 287,982 $ 6,459 |
Additional Cash Flow Informat_2
Additional Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents information about cash paid for interest and income taxes for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Cash paid during the year for: Interest $ 11,653 $ 5,259 $ 8,289 Income taxes $ 168,732 $ 130,811 $ 145,386 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments | The following tables present financial information for each of our reportable segments for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Revenues from unrelated entities: United States electrical construction and facilities services $ 2,433,114 $ 2,029,893 $ 1,829,979 United States mechanical construction and facilities services 4,326,674 3,952,586 3,516,789 United States building services 2,720,487 2,424,743 2,078,835 United States industrial services 1,118,767 986,407 940,895 Total United States operations 10,599,042 9,393,629 8,366,498 United Kingdom building services 477,078 509,951 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 2022 2021 2020 Total revenues: United States electrical construction and facilities services $ 2,438,916 $ 2,033,863 $ 1,836,370 United States mechanical construction and facilities services 4,373,050 3,966,123 3,529,880 United States building services 2,821,649 2,523,180 2,161,487 United States industrial services 1,175,469 1,021,217 956,373 Less intersegment revenues (210,042) (150,754) (117,612) Total United States operations 10,599,042 9,393,629 8,366,498 United Kingdom building services 477,078 509,951 430,563 Total operations $ 11,076,120 $ 9,903,580 $ 8,797,061 2022 2021 2020 Operating income (loss): United States electrical construction and facilities services $ 148,728 $ 169,355 $ 162,538 United States mechanical construction and facilities services 332,294 314,420 290,444 United States building services 144,670 122,724 115,523 United States industrial services 19,787 (1,666) 1,175 Total United States operations 645,479 604,833 569,680 United Kingdom building services 29,838 27,998 20,660 Corporate administration (110,440) (102,031) (98,542) Restructuring expenses — — (2,214) Impairment loss on goodwill, identifiable intangible assets, — — (232,750) Total operations 564,877 530,800 256,834 Other items: Net periodic pension (cost) income 4,311 3,625 2,980 Interest expense (13,199) (6,071) (9,009) Interest income 2,761 949 1,521 Income before income taxes $ 558,750 $ 529,303 $ 252,326 NOTE 18 - SEGMENT INFORMATION (Continued) 2022 2021 2020 Capital expenditures: United States electrical construction and facilities services $ 11,228 $ 4,985 $ 8,679 United States mechanical construction and facilities services 12,004 10,182 11,347 United States building services 13,229 11,465 10,259 United States industrial services 9,905 6,159 9,595 Total United States operations 46,366 32,791 39,880 United Kingdom building services 2,816 3,015 3,693 Corporate administration 107 386 4,396 Total operations $ 49,289 $ 36,192 $ 47,969 2022 2021 2020 Depreciation and amortization of property, plant and equipment: United States electrical construction and facilities services $ 7,543 $ 7,229 $ 6,734 United States mechanical construction and facilities services 11,556 11,403 10,964 United States building services 12,900 12,041 12,003 United States industrial services 10,888 11,723 12,405 Total United States operations 42,887 42,396 42,106 United Kingdom building services 2,752 3,938 3,046 Corporate administration 1,657 2,013 1,569 Total operations $ 47,296 $ 48,347 $ 46,721 December 31, 2022 December 31, 2021 December 31, 2020 Contract assets: United States electrical construction and facilities services $ 75,603 $ 48,382 $ 30,986 United States mechanical construction and facilities services 100,109 89,538 67,443 United States building services 56,217 42,382 31,661 United States industrial services 10,727 18,992 11,311 Total United States operations 242,656 199,294 141,401 United Kingdom building services 30,520 30,849 30,555 Total operations $ 273,176 $ 230,143 $ 171,956 December 31, 2022 December 31, 2021 December 31, 2020 Contract liabilities: United States electrical construction and facilities services $ 271,161 $ 200,966 $ 183,499 United States mechanical construction and facilities services 597,001 388,039 373,957 United States building services 182,273 148,812 117,643 United States industrial services 17,746 16,481 17,304 Total United States operations 1,068,181 754,298 692,403 United Kingdom building services 30,082 33,836 29,849 Total operations $ 1,098,263 $ 788,134 $ 722,252 NOTE 18 - SEGMENT INFORMATION (Continued) December 31, 2022 December 31, 2021 December 31, 2020 Long-lived assets: United States electrical construction and facilities services $ 302,448 $ 237,766 $ 177,692 United States mechanical construction and facilities services 519,335 515,741 522,800 United States building services 496,206 498,692 481,733 United States industrial services 341,646 365,563 394,505 Total United States operations 1,659,635 1,617,762 1,576,730 United Kingdom building services 10,320 11,402 12,017 Corporate administration 990 2,535 4,356 Total operations $ 1,670,945 $ 1,631,699 $ 1,593,103 December 31, 2022 December 31, 2021 December 31, 2020 Total assets: United States electrical construction and facilities services $ 1,078,405 $ 855,417 $ 680,060 United States mechanical construction and facilities services 1,845,518 1,672,546 1,552,567 United States building services 1,196,001 1,089,844 1,022,290 United States industrial services 552,545 589,017 550,513 Total United States operations 4,672,469 4,206,824 3,805,430 United Kingdom building services 255,547 241,740 227,894 Corporate administration 596,591 992,882 1,030,516 Total operations $ 5,524,607 $ 5,441,446 $ 5,063,840 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Accounts receivable, net | $ 2,567,371,000 | $ 2,204,519,000 | |
Allowance for credit losses | 22,382,000 | 23,534,000 | |
Provision for credit losses | 5,166,000 | 8,041,000 | $ 3,269,000 |
Unrecognized income tax benefits | $ 0 | 0 | |
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Vehicles, Furniture and Fixtures, and Computer Hardware and Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Vehicles, Furniture and Fixtures, and Computer Hardware and Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 7 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 25 years | ||
Other Current Liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Insurance liabilities, current | $ 54,800,000 | 61,500,000 | |
Other Noncurrent Liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Insurance liabilities, noncurrent | 221,700,000 | 242,400,000 | |
Prepaid Expenses and Other Current Assets | |||
Property, Plant and Equipment [Line Items] | |||
Anticipated insurance recoveries, current | 16,000,000 | 26,400,000 | |
Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Anticipated insurance recoveries, noncurrent | $ 59,000,000 | $ 99,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses, beginning balance | $ 23,534 | ||
Provision for credit losses | 5,166 | $ 8,041 | $ 3,269 |
Amounts written off against the allowance, net of recoveries | (6,318) | ||
Allowance for credit losses, ending balance | $ 22,382 | $ 23,534 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customers [Line Items] | |||
Change in total estimated cost or anticipated contract value | $ 48,500,000 | $ 0 | $ 0 |
Performance obligation satisfied in previous period | 0 | 0 | $ 6,100,000 |
Unbilled revenues for unapproved change orders | 36,000,000 | 24,100,000 | |
Claims on contract assets | 3,800,000 | 2,500,000 | |
Claim amounts within accounts receivable | 0 | 0 | |
Contractually billed amounts and retention related to contracts with unapproved change orders and claims | 131,400,000 | 130,700,000 | |
Net contract liabilities, construction | 763,163,000 | 500,348,000 | |
Contract asset impairment | 0 | 0 | |
Accounts receivable, retainage | $ 456,900,000 | 375,300,000 | |
Accounts receivable, retainage estimated to be collected in next fiscal year | 90% | ||
Accounts payable, retainage | $ 82,400,000 | $ 71,100,000 | |
Accounts payable, retainage estimated to be paid in next fiscal year | 90% | ||
Remaining performance obligations | $ 7,459,299,000 | ||
Minimum | |||
Revenue From Contract With Customers [Line Items] | |||
Change in total estimated cost or anticipated contract value | 1,000,000 | ||
2022Acquisitions | |||
Revenue From Contract With Customers [Line Items] | |||
Increase (decrease) in contract assets from acquisitions | 2,100,000 | ||
Increase (decrease) in contract liabilities from acquisitions | 14,100,000 | ||
Excluding2022Acquisitions | |||
Revenue From Contract With Customers [Line Items] | |||
Increase in net contract liabilities | 254,900,000 | ||
United States Electrical Construction And Facilities Services | |||
Revenue From Contract With Customers [Line Items] | |||
Change in total estimated cost or anticipated contract value | 33,500,000 | ||
United States Mechanical Construction And Facilities Services | |||
Revenue From Contract With Customers [Line Items] | |||
Change in total estimated cost or anticipated contract value | 13,700,000 | ||
United States Building Services | |||
Revenue From Contract With Customers [Line Items] | |||
Change in total estimated cost or anticipated contract value | $ 1,300,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 11,076,120 | $ 9,903,580 | $ 8,797,061 | |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,599,042 | 9,393,629 | 8,366,498 | |
United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,433,114 | 2,029,893 | 1,829,979 | |
United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,326,674 | 3,952,586 | 3,516,789 | |
United States Building Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,720,487 | 2,424,743 | 2,078,835 | |
United States Industrial Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,118,767 | 986,407 | 940,895 | |
United Kingdom Building Services | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 477,078 | 509,951 | 430,563 | |
Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,437,304 | 2,033,168 | 1,835,017 | |
Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,337,556 | 3,959,421 | 3,523,875 | |
Intersegment Eliminations [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (4,190) | (3,275) | (5,038) | |
Intersegment Eliminations [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (10,882) | (6,835) | (7,086) | |
Commercial Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,320,392 | $ 1,063,242 | $ 970,576 | |
Percentage of total segment revenues | 54% | 52% | 53% | |
Commercial Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,711,772 | $ 1,524,685 | $ 1,315,973 | |
Percentage of total segment revenues | 39% | 39% | 37% | |
Manufacturing Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 301,606 | $ 230,894 | $ 241,415 | |
Percentage of total segment revenues | 12% | 11% | 13% | |
Manufacturing Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 632,332 | $ 579,176 | $ 486,753 | |
Percentage of total segment revenues | 15% | 15% | 14% | |
Healthcare Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 178,348 | $ 107,442 | $ 79,275 | |
Percentage of total segment revenues | 7% | 5% | 4% | |
Healthcare Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 480,954 | $ 488,910 | $ 346,315 | |
Percentage of total segment revenues | 11% | 12% | 10% | |
Institutional Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 154,077 | $ 178,729 | $ 146,759 | |
Percentage of total segment revenues | 6% | 9% | 8% | |
Institutional Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 353,611 | $ 280,463 | $ 377,738 | |
Percentage of total segment revenues | 8% | 7% | 11% | |
Transportation Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 166,563 | $ 196,313 | $ 192,656 | |
Percentage of total segment revenues | 7% | 10% | 10% | |
Transportation Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 57,026 | $ 84,503 | $ 70,692 | |
Percentage of total segment revenues | 1% | 2% | 2% | |
Water and Wastewater Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 21,251 | $ 14,962 | $ 6,882 | |
Percentage of total segment revenues | 1% | 1% | 1% | |
Water and Wastewater Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 261,500 | $ 213,315 | $ 185,996 | |
Percentage of total segment revenues | 6% | 5% | 5% | |
Hospitality Market Sector [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 17,563 | $ 15,346 | $ 23,797 | |
Percentage of total segment revenues | 1% | 1% | 1% | |
Hospitality Market Sector [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 29,511 | $ 38,405 | $ 40,079 | |
Percentage of total segment revenues | 1% | 1% | 1% | |
Short Duration Projects [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | $ 211,795 | $ 185,277 | $ 145,370 |
Percentage of total segment revenues | 9% | 9% | 8% | |
Short Duration Projects [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | $ 337,522 | $ 297,673 | $ 335,262 |
Percentage of total segment revenues | 8% | 8% | 10% | |
Service Work [Member] | Operating Segments [Member] | United States Electrical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 65,709 | $ 40,963 | $ 28,287 | |
Percentage of total segment revenues | 3% | 2% | 2% | |
Service Work [Member] | Operating Segments [Member] | United States Mechanical Construction And Facilities Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 473,328 | $ 452,291 | $ 365,067 | |
Percentage of total segment revenues | 11% | 11% | 10% | |
Service Work [Member] | Operating Segments [Member] | United Kingdom Building Services | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 221,123 | $ 261,889 | $ 221,373 | |
Percentage of total segment revenues | 46% | 51% | 51% | |
Mobile Mechanical Services [Member] | Operating Segments [Member] | United States Building Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,713,989 | $ 1,560,120 | $ 1,323,499 | |
Percentage of total segment revenues | 63% | 64% | 64% | |
Commercial Site-Based Services [Member] | Operating Segments [Member] | United States Building Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 810,210 | $ 680,351 | $ 587,346 | |
Percentage of total segment revenues | 30% | 28% | 28% | |
Government Site-Based Services [Member] | Operating Segments [Member] | United States Building Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 196,288 | $ 184,272 | $ 167,990 | |
Percentage of total segment revenues | 7% | 8% | 8% | |
Field Services [Member] | Operating Segments [Member] | United States Industrial Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 972,894 | $ 853,143 | $ 813,872 | |
Percentage of total segment revenues | 87% | 86% | 86% | |
Shop Services [Member] | Operating Segments [Member] | United States Industrial Services | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 145,873 | $ 133,264 | $ 127,023 | |
Percentage of total segment revenues | 13% | 14% | 14% | |
Project Work [Member] | Operating Segments [Member] | United Kingdom Building Services | UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 255,955 | $ 248,062 | $ 209,190 | |
Percentage of total segment revenues | 54% | 49% | 49% | |
[1]Represents those projects which generally are completed within three months or less. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 273,176 | $ 230,143 | $ 171,956 |
Contract assets, non-current | 0 | 0 | |
Contract liabilities | (1,098,263) | (788,134) | $ (722,252) |
Contract liabilities, non-current | (2,273) | (2,505) | |
Net contract liabilities | $ (827,360) | $ (560,496) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Net Contract Liabilities on Uncompleted Construction Projects (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Costs incurred on uncompleted construction contracts | $ 13,231,612 | $ 11,034,038 |
Estimated earnings, thereon | 2,025,929 | 1,731,479 |
Costs and estimated earnings on uncompleted construction contracts | 15,257,541 | 12,765,517 |
Less: billings to date | 16,020,704 | 13,265,865 |
Net contract liabilities, construction | $ (763,163) | $ (500,348) |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Revenue, Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 7,459,299 |
Remaining performance obligations, percent | 100% |
UNITED STATES | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 7,298,682 |
Remaining performance obligations, percent | 98% |
UNITED STATES | United States Electrical Construction And Facilities Services | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 2,014,079 |
Remaining performance obligations, percent | 27% |
UNITED STATES | United States Mechanical Construction And Facilities Services | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 4,008,919 |
Remaining performance obligations, percent | 54% |
UNITED STATES | United States Building Services | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 1,151,031 |
Remaining performance obligations, percent | 15% |
UNITED STATES | United States Industrial Services | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 124,653 |
Remaining performance obligations, percent | 2% |
UNITED KINGDOM | United Kingdom Building Services | |
Schedule of Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 160,617 |
Remaining performance obligations, percent | 2% |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 7,459,299 |
UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 7,298,682 |
UNITED STATES | United States Electrical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 2,014,079 |
UNITED STATES | United States Mechanical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 4,008,919 |
UNITED STATES | United States Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,151,031 |
UNITED STATES | United States Industrial Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 124,653 |
UNITED KINGDOM | United Kingdom Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 160,617 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 6,128,383 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | 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 | $ 6,015,696 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | UNITED STATES | United States Electrical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 1,692,127 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | UNITED STATES | United States Mechanical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 3,154,465 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | UNITED STATES | United States Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 1,050,462 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | UNITED STATES | United States Industrial Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 118,642 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | UNITED KINGDOM | United Kingdom Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligations | $ 112,687 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 1,330,916 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED STATES | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 1,282,986 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED STATES | United States Electrical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 321,952 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED STATES | United States Mechanical Construction And Facilities Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 854,454 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED STATES | United States Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 100,569 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED STATES | United States Industrial Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 6,011 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | UNITED KINGDOM | United Kingdom Building Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligations | $ 47,930 |
Acquisitions Of Businesses (Det
Acquisitions Of Businesses (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Company | Dec. 31, 2021 USD ($) Company | Dec. 31, 2020 USD ($) Company | |
Business Acquisition [Line Items] | |||
Number of businesses acquired | Company | 6 | 8 | 3 |
Goodwill ascribed | $ 919,151 | $ 890,268 | $ 851,783 |
2022Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | 100,800 | ||
Working capital acquired | 7,100 | ||
Other net liabilities acquired | 1,100 | ||
Goodwill ascribed | 28,900 | ||
Identifiable intangible assets ascribed | $ 65,900 | ||
2021 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | 131,200 | ||
Working capital acquired | 22,900 | ||
Other net liabilities acquired | 600 | ||
Goodwill ascribed | 38,300 | ||
Identifiable intangible assets ascribed | $ 70,600 | ||
2020 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | 50,300 | ||
Working capital acquired | 3,000 | ||
Other net liabilities acquired | 3,900 | ||
Goodwill ascribed | 13,100 | ||
Identifiable intangible assets ascribed | $ 38,100 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 406,122 | $ 383,532 | $ 132,943 |
Denominator | |||
Weighted average shares outstanding used to compute basic earnings per common share (in shares) | 49,931,940 | 54,068,982 | 55,196,173 |
Effect of dilutive securities-Share-based awards (in shares) | 204,322 | 278,552 | 225,098 |
Shares used to compute diluted earnings per common share (in shares) | 50,136,262 | 54,347,534 | 55,421,271 |
Basic earnings per common share (in US dollars per share) | $ 8.13 | $ 7.09 | $ 2.41 |
Diluted earnings per common share (in US dollars per share) | $ 8.10 | $ 7.06 | $ 2.40 |
Earnings Per Share Antidilutive
Earnings Per Share Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,926 | 9,250 | 24,450 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 74,014 | $ 46,186 |
Work in process | 11,627 | 7,912 |
Inventories | $ 85,641 | $ 54,098 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 552,061 | $ 528,023 | ||
Accumulated depreciation and amortization | (394,242) | (375,957) | ||
Property, plant and equipment, net | 157,819 | 152,066 | ||
Depreciation and amortization | 47,296 | 48,347 | $ 46,721 | |
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 206,249 | 188,022 | ||
Vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 68,858 | 65,946 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 25,253 | 23,698 | ||
Computer hardware/software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 109,166 | 108,830 | ||
Land, buildings and leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 130,358 | 127,736 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 6,060 | 6,125 | ||
Finance lease right-of-use assets (1) | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | [1] | $ 6,117 | $ 7,666 | |
[1]Finance lease right-of-use assets are recorded net of accumulated amortization. |
Goodwill, Identifiable Intang_3
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2022 | |
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | $ 919,151,000 | $ 890,268,000 | $ 851,783,000 | |
Goodwill impairment | 0 | 0 | ||
Goodwill, accumulated impairment loss | 493,600,000 | |||
Other asset impairment charges, excluding goodwill | $ 0 | 0 | 7,300,000 | |
Amortization periods | 7 years | |||
Amortization of identifiable intangible assets | $ 61,315,000 | 64,089,000 | 59,950,000 | |
2022Acquisitions | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | 28,900,000 | |||
Identifiable intangible assets acquired | 65,900,000 | |||
2021 Acquisitions | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | 38,300,000 | |||
Identifiable intangible assets acquired | 70,600,000 | |||
Domestic Segments | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Perpetual growth rate used for annual testing, percentage | 2.50% | |||
Domestic Construction | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Weighted average cost of capital used in annual testing, percentage | 10.30% | |||
United States Electrical Construction And Facilities Services | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | $ 178,013,000 | 159,512,000 | 142,545,000 | |
Goodwill allocated, percentage | 19.40% | |||
Effect of 50 Basis Point Increase in the Weighted Average Costs of Capital | $ 90,900,000 | |||
Effect of 50 Basis Point Decrease in the Perpetual Growth Rate | 45,000,000 | |||
United States Mechanical Construction And Facilities Services | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | $ 315,329,000 | 303,887,000 | 299,618,000 | |
Goodwill allocated, percentage | 34.30% | |||
Effect of 50 Basis Point Increase in the Weighted Average Costs of Capital | 172,100,000 | |||
Effect of 50 Basis Point Decrease in the Perpetual Growth Rate | $ 94,200,000 | |||
United States Building Services | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | $ 311,721,000 | 312,781,000 | 302,132,000 | |
Goodwill allocated, percentage | 33.90% | |||
Weighted average cost of capital used in annual testing, percentage | 10.20% | |||
Effect of 50 Basis Point Increase in the Weighted Average Costs of Capital | $ 92,800,000 | |||
Effect of 50 Basis Point Decrease in the Perpetual Growth Rate | $ 48,100,000 | |||
Goodwill, accumulated impairment loss | 139,500,000 | |||
United States Industrial Services | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Goodwill | $ 114,088,000 | $ 114,088,000 | 107,488,000 | |
Goodwill allocated, percentage | 12.40% | |||
Weighted average cost of capital used in annual testing, percentage | 11.20% | |||
Goodwill impairment | 225,500,000 | |||
Effect of 50 Basis Point Increase in the Weighted Average Costs of Capital | $ 24,100,000 | |||
Effect of 50 Basis Point Decrease in the Perpetual Growth Rate | $ 9,200,000 | |||
Goodwill, accumulated impairment loss | $ 354,100,000 | |||
Customer relationships | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Amortization periods | 7 years 3 months | |||
Developed technology/Vendor network | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Amortization periods | 4 years 9 months | |||
Trade names (finite-lived) | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Amortization periods | 7 years | |||
Contract backlog | ||||
Goodwill and Intangible Assets[Line Items] | ||||
Amortization periods | 1 year |
Goodwill, Identifiable Intang_4
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | $ 890,268,000 | $ 851,783,000 | |
Acquisitions and purchase price adjustments | 28,883,000 | 38,485,000 | |
Goodwill impairment | 0 | 0 | |
Goodwill, intersegment transfers | 0 | 0 | |
Goodwill, Ending balance | 919,151,000 | 890,268,000 | $ 851,783,000 |
United States Electrical Construction And Facilities Services | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 159,512,000 | 142,545,000 | |
Acquisitions and purchase price adjustments | 17,601,000 | 24,467,000 | |
Goodwill, intersegment transfers | 900,000 | (7,500,000) | |
Goodwill, Ending balance | 178,013,000 | 159,512,000 | 142,545,000 |
United States Mechanical Construction And Facilities Services | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 303,887,000 | 299,618,000 | |
Acquisitions and purchase price adjustments | 6,942,000 | 4,269,000 | |
Goodwill, intersegment transfers | 4,500,000 | 0 | |
Goodwill, Ending balance | 315,329,000 | 303,887,000 | 299,618,000 |
United States Building Services | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 312,781,000 | 302,132,000 | |
Acquisitions and purchase price adjustments | 4,340,000 | 9,749,000 | |
Goodwill, intersegment transfers | (5,400,000) | 900,000 | |
Goodwill, Ending balance | 311,721,000 | 312,781,000 | 302,132,000 |
United States Industrial Services | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 114,088,000 | 107,488,000 | |
Acquisitions and purchase price adjustments | 0 | 0 | |
Goodwill impairment | (225,500,000) | ||
Goodwill, intersegment transfers | 0 | 6,600,000 | |
Goodwill, Ending balance | $ 114,088,000 | $ 114,088,000 | $ 107,488,000 |
Goodwill, Identifiable Intang_5
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets - Schedule of Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (606,592) | $ (545,277) |
Total | 363,787 | |
Indefinite-Lived Trade Names, Accumulated Impairment Charge | 58,933 | 58,933 |
Gross Carrying Amount, Trade names (indefinite-lived) | 289,121 | 274,721 |
Total, Trade names (indefinite-lived) | 230,188 | 215,788 |
Gross Carrying Amount, Total | 1,264,334 | 1,198,409 |
Accumulated Impairment Charge, Total | (63,767) | (63,767) |
Total | 593,975 | 589,365 |
Customer relationships | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 762,516 | 717,666 |
Accumulated Amortization | (427,211) | (374,764) |
Accumulated Impairment Charge | (4,834) | (4,834) |
Total | 330,471 | 338,068 |
Developed technology/Vendor network | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 95,661 | 95,661 |
Accumulated Amortization | (74,238) | (69,688) |
Accumulated Impairment Charge | 0 | 0 |
Total | 21,423 | 25,973 |
Trade names (finite-lived) | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,791 | 32,366 |
Accumulated Amortization | (25,690) | (24,180) |
Accumulated Impairment Charge | 0 | 0 |
Total | 8,101 | 8,186 |
Contract backlog | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 83,245 | 77,995 |
Accumulated Amortization | (79,453) | (76,645) |
Accumulated Impairment Charge | 0 | 0 |
Total | $ 3,792 | $ 1,350 |
Goodwill, Identifiable Intang_6
Goodwill, Identifiable Intangible Assets, And Other Long-Lived Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 63,366 |
2024 | 59,507 |
2025 | 58,002 |
2026 | 51,883 |
2027 | 38,949 |
Thereafter | 92,080 |
Total | $ 363,787 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Mar. 02, 2020 | Aug. 03, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding (in US dollars) | $ 71,300,000 | $ 71,300,000 | |||
2016 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement, initiation date | Aug. 03, 2016 | ||||
2016 Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Term Loan (in US dollars) | $ 400,000,000 | ||||
2020 Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Term Loan (in US dollars) | $ 300,000,000 | $ 242,813,000 | $ 256,688,000 | ||
2020 Term Loan | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Term loan, annual principal payments (in US dollars) | $ 13,900,000 | ||||
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 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 (4.73% at December 31, 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 (7.50% at December 31, 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%. Upon 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 December 31, 2022 and 2021 were 5.73% 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 December 31, 2022 and 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. | ||||
Interest rate | 5.73% | 1.10% | |||
Debt Issuance Costs, Gross | $ 3,100,000 | ||||
Base Rate | Minimum | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0% | ||||
Base Rate | Maximum | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Prime Rate, Bank of Montreal | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Commercial lending rate | 7.50% | ||||
Credit Agreement Base Rate, Daily One Month LIBOR Rate | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
London Interbank Offered Rate (LIBOR) | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Commercial lending rate | 4.73% | ||||
London Interbank Offered Rate (LIBOR) | Minimum | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
London Interbank Offered Rate (LIBOR) | Maximum | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Credit Agreeement Base Rate, Federal Funds Rate | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Credit Agreement, 0% Base Rate | 2020 Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Commercial lending rate | 0% | ||||
Revolving Credit Facility | 2016 Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 900,000,000 | ||||
Revolving Credit Facility | 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 | ||||
Borrowings under revolving credit facility (in US dollars) | $ 0 | $ 0 | |||
Commitment fee percentage of unused amount | 0.10% | 0.10% | |||
Revolving Credit Facility | Minimum | 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 | Maximum | 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 ($) | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 02, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (2,080,000) | $ (3,040,000) | |
Finance lease liabilities | 6,459,000 | 8,037,000 | |
Total debt | 247,192,000 | 261,685,000 | |
Less: current maturities | 15,567,000 | 16,235,000 | |
Total long-term debt | 231,625,000 | 245,450,000 | |
2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Term Loan | 242,813,000 | 256,688,000 | $ 300,000,000 |
Revolving Credit Facility | 2020 Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Restricted cash | $ 600 | $ 1,200 | $ 700 | $ 1,100 | |
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 456,439 | 821,345 | |||
Restricted cash | 629 | 1,223 | |||
Deferred compensation plan assets | 36,882 | 42,344 | |||
Total | 493,950 | 864,912 | |||
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 456,439 | 821,345 | ||
Restricted cash | [2] | 629 | 1,223 | ||
Deferred compensation plan assets | [3] | 36,882 | 42,344 | ||
Total | 493,950 | 864,912 | |||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
Restricted cash | [2] | 0 | 0 | ||
Deferred compensation plan assets | [3] | 0 | 0 | ||
Total | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring 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 | Fair Value, Measurements, Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 209,400 | $ 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 December 31, 2022 and 2021, we had $209.4 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 Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax provision | $ 152,628 | $ 145,602 | $ 119,383 |
Income tax rates on income before income taxes | 27.30% | 27.50% | 47.30% |
Income tax expense, foreign minimum tax | $ 100 | $ 100 | $ 100 |
Cash and cash equivalents | 456,439 | 821,345 | |
Deferred social security tax payment | 51,000 | 51,000 | |
Deferred tax liabilities, net | 61,563 | 50,951 | |
Valuation allowance for deferred tax assets | 3,580 | 2,465 | |
Other Noncurrent Liabilities | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax liabilities, net | 61,600 | $ 51,000 | |
Non-US [Member] | Subsidiaries [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings of foreign subsidiaries | 145,200 | ||
Cash and cash equivalents | $ 115,800 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 523,273 | $ 497,421 | $ 228,181 |
Foreign | 35,477 | 31,882 | 24,145 |
Income before income taxes | $ 558,750 | $ 529,303 | $ 252,326 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal provision | $ 100,707 | $ 95,782 | $ 115,633 |
State and local provision | 36,547 | 35,883 | 36,182 |
Foreign provision | 4,891 | 4,420 | 3,922 |
Current income tax provision | 142,145 | 136,085 | 155,737 |
Deferred provision (benefit) | 10,483 | 9,517 | (36,354) |
Income tax provision | $ 152,628 | $ 145,602 | $ 119,383 |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. Statutory Income Tax Rate Rec (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at the statutory rate | $ 117,338 | $ 111,118 | $ 52,989 |
State and local income taxes, net of federal tax benefits | 29,519 | 31,257 | 19,290 |
Permanent differences | 5,261 | 5,316 | 5,860 |
Non-deductible impairment charges | 0 | 0 | 40,165 |
Foreign income taxes (including UK statutory rate changes) | (155) | (2,241) | (140) |
Other | 665 | 152 | 1,219 |
Income tax provision | $ 152,628 | $ 145,602 | $ 119,383 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred income tax assets: | |||
Insurance liabilities | $ 57,278 | $ 50,316 | |
Operating lease liabilities | 78,391 | 76,451 | |
Deferred compensation | 40,682 | 40,080 | |
Accrued federal payroll taxes | 0 | 14,235 | [1] |
Other (including liabilities and reserves) | 35,584 | 31,252 | |
Total deferred income tax assets | 211,935 | 212,334 | |
Valuation allowance for deferred tax assets | (3,580) | (2,465) | |
Net deferred income tax assets | 208,355 | 209,869 | |
Deferred income tax liabilities: | |||
Goodwill and identifiable intangible assets | (153,767) | (154,382) | |
Operating lease right-of-use assets | (73,134) | (71,759) | |
Depreciation of property, plant and equipment | (28,435) | (25,341) | |
Pension asset | (4,082) | (1,847) | |
Other | (10,500) | (7,491) | |
Total deferred income tax liabilities | (269,918) | (260,820) | |
Net deferred income tax liabilities | $ (61,563) | $ (50,951) | |
[1]Represents employer Social Security tax payments previously deferred under the CARES Act. |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 135 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, outstanding (in shares) | 47,666,725 | 47,666,725 | 53,299,738 | 47,666,725 | ||
Dividend paid (in dollars per share) | $ 0.15 | |||||
Stock repurchase, authorized amount (in US dollars) | $ 2,150,000,000 | $ 2,150,000,000 | $ 2,150,000,000 | |||
Number of shares repurchased (in shares) | 5,800,000 | 25,000,000 | ||||
Stock repurchased (in US dollars) | $ 660,609,000 | $ 195,546,000 | $ 112,553,000 | $ 1,760,000,000 | ||
Remaining authorized repurchase amount (in US dollars) | $ 389,800,000 | $ 389,800,000 | $ 389,800,000 | |||
Subsequent Event [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Dividend paid (in dollars per share) | $ 0.18 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under employee stock purchase plan (in shares) | 3,250,000 | |||
Shares available for grant or issuance under share-based compensation plans (in shares) | 792,726 | |||
Compensation expense to be recognized | $ 9,800 | |||
Maximum vesting period | 3 years | |||
Total intrinsic value of options exercised | $ 1,200 | |||
Stock options outstanding (in shares) | 0 | 0 | 0 | |
Tax benefit from issuance of stock | $ 3,900 | $ 2,600 | $ 1,900 | |
Excess tax benefit from share-based compensation | 1,654 | 828 | 191 | |
Awards of Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 12,100 | $ 11,100 | $ 11,200 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vested, but issuance deferred (in shares) | 49,360 | |||
Issuance deferral period | 10 years | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 20,000 | |||
Options exercised (in shares) | 20,000 | |||
Weighted average price, exercised (in dollars per share) | $ 24.48 | |||
Employee Stock Purchase Plan (in shares) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under employee stock purchase plan (in shares) | 3,000,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Schedule of activity of restricted stock units (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Beginning Balance | 404,468 | 397,918 | 417,578 |
Weighted Average Price, Beginning Balance (in dollars per share) | $ 79.16 | $ 73.16 | $ 70.24 |
Shares, Granted | 107,621 | 129,859 | 137,771 |
Weighted Average Price, Granted (in dollars per share) | $ 123.52 | $ 96.32 | $ 81.56 |
Shares, Forfeited | (4,665) | (2,242) | (984) |
Weighted Average Price, Forfeited (in dollars per share) | $ 105.88 | $ 78.86 | $ 79.17 |
Shares, Vested | (189,830) | (121,067) | (156,447) |
Weighted Average Price, Vested (in dollars per share) | $ 67.40 | $ 77.86 | $ 72.72 |
Shares, Ending Balance | 317,594 | 404,468 | 397,918 |
Weighted Average Price, Ending Balance (in dollars per share) | $ 100.83 | $ 79.16 | $ 73.16 |
Defined Benefit Plans - Narrati
Defined Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of plans | plan | 3 | ||
Benefit obligation | $ 6,700 | $ 8,500 | |
Fair value of plan assets | $ 4,900 | $ 6,300 | |
Discount rate | 4.80% | ||
Annual rate of return on plan assets | 7% | 7% | |
Estimated future benefit payments | $ 500 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.40% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.50% | ||
United Kingdom Subsidiary | UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status of UK Plan | $ 16,328 | $ 7,385 | |
Annual rate of inflation | 2.80% | 2.90% | |
Average life expectancy | 24 years | ||
Reclassification adjustment from AOCI, net of income taxes | $ 1,600 | $ 2,900 | $ 1,900 |
Estimated unrecognized loss that will be amortized from AOCI, net of income taxes | 1,900 | ||
Future estimated employer contributions to be paid next year | 1,300 | ||
Benefit obligation | 193,956 | 349,147 | 383,142 |
Fair value of plan assets | $ 210,284 | $ 356,532 | $ 347,411 |
Discount rate | 5% | 1.80% | |
Annual rate of return on plan assets | 3.90% | 3.90% | 4.30% |
Other Assets | United Kingdom Subsidiary | UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status of UK Plan | $ 16,300 | $ 7,400 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Changes in Benefit Obligations and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 8,500 | ||
Benefit obligation at end of year | 6,700 | $ 8,500 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 6,300 | ||
Fair value of plan assets at end of year | 4,900 | 6,300 | |
United Kingdom Subsidiary | UK Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 349,147 | 383,142 | |
Interest cost | 5,693 | 5,326 | $ 6,401 |
Actuarial gain | (116,372) | (22,071) | |
Benefits paid | (11,095) | (13,939) | |
Foreign currency exchange rate changes | (33,417) | (3,311) | |
Benefit obligation at end of year | 193,956 | 349,147 | 383,142 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 356,532 | 347,411 | |
Actual (loss) return on plan assets | (105,544) | 21,809 | |
Employer contributions | 4,875 | 4,956 | |
Benefits paid | (11,095) | (13,939) | |
Foreign currency exchange rate changes | (34,484) | (3,705) | |
Fair value of plan assets at end of year | 210,284 | 356,532 | $ 347,411 |
Funded status at end of year | $ 16,328 | $ 7,385 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Weighted Average Assumptions Used To Calculate Benefit Obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.80% | |
United Kingdom Subsidiary | UK Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5% | 1.80% |
Components Of Net Periodic Pens
Components Of Net Periodic Pension Cost (Income) (Details) - United Kingdom Subsidiary - UK Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 5,693 | $ 5,326 | $ 6,401 |
Expected return on plan assets | (12,088) | (12,726) | (12,023) |
Amortization of unrecognized loss | 2,073 | 3,642 | 2,389 |
Net periodic pension cost (income) | $ (4,322) | $ (3,758) | $ (3,233) |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Weighted Average Assumptions Used To Calculate Net Periodic Pension Costs (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Annual rate of return on plan assets | 7% | 7% | |
United Kingdom Subsidiary | UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.80% | 1.40% | 2.10% |
Annual rate of return on plan assets | 3.90% | 3.90% | 4.30% |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
United Kingdom Subsidiary | UK Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial losses | $ 79,313 | $ 89,572 |
Retirement Plans - Schedule o_5
Retirement Plans - Schedule of Weighted Average Assets Allocation and Weighted Average Target Allocation (Details) - United Kingdom Subsidiary - UK Plan | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation | 100% | 100% |
Asset Allocation | 100% | 100% |
Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation | 75% | 75% |
Asset Allocation | 80.70% | 76% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation | 15% | 15% |
Asset Allocation | 9.40% | 16.50% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation | 10% | 10% |
Asset Allocation | 9.90% | 7.50% |
Retirement Plans - Schedule o_6
Retirement Plans - Schedule of Plan Assets Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 4,900 | $ 6,300 | ||
United Kingdom Subsidiary | UK Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 210,284 | 356,532 | $ 347,411 | |
United Kingdom Subsidiary | UK Plan | Total plan assets in fair value hierarchy | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 89,446 | 217,897 | ||
United Kingdom Subsidiary | UK Plan | Total plan assets in fair value hierarchy | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 19,829 | 58,772 | ||
United Kingdom Subsidiary | UK Plan | Total plan assets in fair value hierarchy | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 69,617 | 159,125 | ||
United Kingdom Subsidiary | UK Plan | Total plan assets in fair value hierarchy | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Corporate debt funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 23,998 | 67,226 | ||
United Kingdom Subsidiary | UK Plan | Corporate debt funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Corporate debt funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 23,998 | 67,226 | ||
United Kingdom Subsidiary | UK Plan | Corporate debt funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Government bond funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 45,619 | 91,899 | ||
United Kingdom Subsidiary | UK Plan | Government bond funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Government bond funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 45,619 | 91,899 | ||
United Kingdom Subsidiary | UK Plan | Government bond funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 19,829 | 58,772 | ||
United Kingdom Subsidiary | UK Plan | Cash and cash equivalents | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 19,829 | 58,772 | ||
United Kingdom Subsidiary | UK Plan | Cash and cash equivalents | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Cash and cash equivalents | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United Kingdom Subsidiary | UK Plan | Debt funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 99,990 | $ 111,971 | |
Fair value of plan assets by hierarchy and NAV [Extensible Enumeration] | Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||
United Kingdom Subsidiary | UK Plan | Real estate funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 20,848 | $ 26,664 | |
Fair value of plan assets by hierarchy and NAV [Extensible Enumeration] | Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||
[1]Certain investments measured using net asset value (“NAV”) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets. |
Retirement Plans - Schedule o_7
Retirement Plans - Schedule of Expected Benefit Payments (Details) - United Kingdom Subsidiary - UK Plan $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 9,884 |
2024 | 10,201 |
2025 | 10,627 |
2026 | 11,106 |
2027 | 11,476 |
Succeeding five years | $ 63,182 |
Multiemployer Plans - Narrative
Multiemployer Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Multiemployer Plans [Line Items] | |||
Withdrawal liability | $ 0 | $ 0 | $ 0 |
Multiemployer Plans, Postretirement Benefit | |||
Multiemployer Plans [Line Items] | |||
Contribution increase due to acquisition | 18,700,000 | ||
Contributions | 213,700,000 | 178,400,000 | 162,700,000 |
Multiemployer Plans, Pension | |||
Multiemployer Plans [Line Items] | |||
Contribution increase due to acquisition | 8,800,000 | ||
Contributions | $ 236,165,000 | $ 221,081,000 | $ 197,726,000 |
Multiemployer Plans, Pension | Minimum | |||
Multiemployer Plans [Line Items] | |||
Number of plans | plan | 200 | ||
Contributions | $ 2,000,000 | ||
Red Zone | Multiemployer Plans, Pension | Minimum | |||
Multiemployer Plans [Line Items] | |||
Contributions | 500,000 | ||
Orange or Yellow Zones | Multiemployer Plans, Pension | Minimum | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 1,000,000 |
Retirement Plans - Schedule o_8
Retirement Plans - Schedule of Multiemployer Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Multiemployer Plans [Line Items] | ||||
EIN | 11-2125338 | |||
Expense recognized | $ 35,000 | $ 33,000 | $ 32,400 | |
Multiemployer Plans, Pension | ||||
Multiemployer Plans [Line Items] | ||||
Contributions | $ 236,165 | $ 221,081 | 197,726 | |
Multiemployer Plans, Pension | National Automatic Sprinkler Industry Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 52-6054620 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 21,583 | $ 20,987 | 17,504 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | United Association National Pension Fund (Formerly Plumbers & Pipefitters National Pension Fund) | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 52-6152779 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 15,288 | $ 14,723 | 14,095 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | National Electrical Benefit Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 53-0181657 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 15,192 | $ 12,310 | 11,573 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Sheet Metal Workers National Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 52-6112463 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Yellow | |
FIP/RP Status | NA | |||
Contributions | $ 9,505 | $ 10,307 | 11,621 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Pension, Hospitalization & Benefit Plan of the Electrical Industry-Pension Trust Account | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 13-6123601 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 8,122 | $ 7,355 | 6,750 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Electrical Workers Local No. 26 Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 52-6117919 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 7,844 | $ 9,346 | 7,086 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Plumbers Pipefitters & Mechanical Equipment Service Local Union 392 Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 31-0655223 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Red | Red | |
FIP/RP Status | Implemented | |||
Contributions | $ 7,674 | $ 7,110 | 5,667 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Central Pension Fund of the IUOE & Participating Employers | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 36-6052390 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 7,651 | $ 6,627 | 6,115 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Boilermaker-Blacksmith National Pension Trust | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 48-6168020 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Yellow | |
FIP/RP Status | NA | |||
Contributions | $ 6,434 | $ 3,479 | 1,574 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Sheet Metal Workers Pension Plan of Northern California | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6115939 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Red | Red | |
FIP/RP Status | Implemented | |||
Contributions | $ 6,074 | $ 7,850 | 6,605 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Edison Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 93-6061681 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 5,325 | $ 4,229 | 3,864 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Pipefitters Union Local 537 Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6030859 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 5,039 | $ 5,922 | 4,275 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Southern California Pipe Trades Retirement Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6108443 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 4,650 | $ 6,272 | 4,043 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Heating, Piping & Refrigeration Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 52-1058013 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 4,625 | $ 5,591 | 3,349 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Southern California IBEW-NECA Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 95-6392774 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Yellow | Yellow | |
FIP/RP Status | Implemented | |||
Contributions | $ 4,287 | $ 4,876 | 5,719 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | San Diego Electrical Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 95-6101801 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 4,258 | $ 4,068 | 4,383 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | IBEW 332 Pension Fund - Part A | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 94-2688032 | |||
Pension Plan Number | 004 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 4,177 | $ 2,339 | 1,211 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | U.A. Local 393 Pension Trust Fund Defined Benefit | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 94-6359772 | |||
Pension Plan Number | 002 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 3,517 | $ 3,507 | 3,168 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Electrical Contractors Association of the City of Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Pension Plan 2 | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6030753 | |||
Pension Plan Number | 002 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 3,516 | $ 4,225 | 3,004 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Eighth District Electrical Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 84-6100393 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 3,339 | $ 3,298 | 3,242 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Northern California Pipe Trades Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 94-3190386 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 3,238 | $ 2,663 | 2,463 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | NECA-IBEW Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6029903 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 3,034 | $ 2,491 | 2,369 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Arizona Pipe Trades Pension Trust Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 86-6025734 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,940 | $ 2,020 | 2,301 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Sheet Metal Workers Pension Plan of Southern California, Arizona & Nevada | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 95-6052257 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Yellow | |
FIP/RP Status | NA | |||
Contributions | $ 2,921 | $ 3,322 | 2,706 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Electrical Workers Pension Plan Local 103 IBEW | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 04-6063734 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,900 | $ 0 | 0 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | IBEW Local 701 Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 36-6455509 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,625 | $ 1,276 | 1,197 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | IBEW Local No. 82 Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 31-6127268 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,549 | $ 956 | 18 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Local No. 697 IBEW and Electrical Industry Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 51-6133048 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,287 | $ 1,753 | 1,583 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | U.A. Local 38 Defined Benefit Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 94-1285319 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Green | Green | |
FIP/RP Status | NA | |||
Contributions | $ 2,010 | $ 1,903 | 2,874 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Plumbing & Pipe Fitting Local 219 Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 34-6682376 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Red | Red | |
FIP/RP Status | Implemented | |||
Contributions | $ 1,172 | $ 1,167 | 1,680 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Plumbers & Pipefitters Local 162 Pension Fund | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 31-6125999 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Yellow | Yellow | |
FIP/RP Status | Implemented | |||
Contributions | $ 1,132 | $ 1,034 | 969 | |
Contributions greater than 5% | [2] | true | ||
Multiemployer Plans, Pension | Steamfitters Local Union No. 420 Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 23-2004424 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Red | Red | |
FIP/RP Status | Implemented | |||
Contributions | $ 1,018 | $ 677 | 553 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Carpenters Pension Trust Fund for Northern California | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 94-6050970 | |||
Pension Plan Number | 001 | |||
Zone Status | [1] | Red | Red | |
FIP/RP Status | Implemented | |||
Contributions | $ 532 | $ 568 | 385 | |
Contributions greater than 5% | [2] | false | ||
Multiemployer Plans, Pension | Other Multiemployer Pension Plans | ||||
Multiemployer Plans [Line Items] | ||||
Contributions | $ 59,707 | $ 56,830 | $ 53,780 | |
[1]The zone status represents the most recent available information for the respective MEPP, which may be 2021 or earlier for the 2022 year and 2020 or earlier for the 2021 year. In general, plans with a “green” zone status have a funding ratio of at least 80%, plans with an “orange” or “yellow” zone status have a funding ratio of between 65% and less than 80%, and plans with a “red” zone status are less than 65% funded.[2]This information was obtained from the respective plan’s Form 5500 (“Forms”) for the most current available filing. These dates may not correspond with our fiscal year contributions. The percentages of contributions are based upon disclosures contained in the plans’ Forms. Those Forms, among other things, disclose the names of individual participating employers whose annual contributions account for more than 5% of the aggregate annual amount contributed by all participating employers for a plan year. Accordingly, if the annual contribution of two or more of our subsidiaries each accounted for less than 5% of such contributions, but in the aggregate accounted for in excess of 5% of such contributions, that greater percentage is not available and therefore is not disclosed. |
Defined Contribution Plans - Na
Defined Contribution Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Expense recognized | $ 35 | $ 33 | $ 32.4 |
Supplemental matching | 9.2 | 7.7 | 9.1 |
United Kingdom Subsidiary | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expense recognized | $ 7.3 | $ 8.3 | $ 7.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) employee collective_bargaining_agreement | |
Loss Contingencies [Line Items] | |
Number of collective bargaining agreements that are national or regional in scope | collective_bargaining_agreement | 2 |
Minimum | |
Loss Contingencies [Line Items] | |
Number of employees | employee | 35,500 |
Number of collective bargaining agreements between our individual subsidiaries and local unions | collective_bargaining_agreement | 450 |
Surety Bond [Member] | |
Loss Contingencies [Line Items] | |
Estimated exposure, contracts with surety bonds | $ | $ 1,500 |
Estimated exposure, contracts with surety bonds, RPO percentage | 20% |
Surety bonds for insurance | $ | $ 48.1 |
Unionized Employees Concentration Risk [Member] | Workforce Subject to Collective Bargaining Arrangements [Member] | |
Loss Contingencies [Line Items] | |
Percentage of employees represented by unions | 60% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Sublease rental income | $ 3.8 | $ 0.2 | $ 0.5 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease right-of-use assets | $ 268,063 | $ 260,778 |
Finance lease right-of-use assets | 6,117 | 7,666 |
Total lease assets | 274,180 | 268,444 |
Current liabilities | ||
Operating lease liabilities, current | 67,218 | 57,814 |
Finance lease liabilities, current | 2,652 | 3,320 |
Noncurrent liabilities | ||
Operating lease liabilities, long-term | 220,764 | 220,836 |
Finance lease liabilities, long-term | 3,807 | 4,717 |
Total lease liabilities | $ 294,441 | $ 286,687 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term debt and finance lease liabilities | Current maturities of long-term debt and finance lease liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance lease liabilities | Long-term debt and finance lease liabilities |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Finance lease expense: | ||||
Amortization expense | $ 3,550 | $ 4,255 | $ 4,562 | |
Interest expense | 178 | 255 | 355 | |
Operating lease expense | 77,143 | 70,928 | 69,208 | |
Short-term lease expense | [1] | 185,061 | 150,500 | 139,706 |
Variable lease expense | 6,782 | 5,421 | 5,441 | |
Total lease expense | $ 272,714 | $ 231,359 | $ 219,272 | |
[1]Short-term lease expense includes both leases and rentals with initial terms of one year or less and predominantly represents equipment used on construction projects. |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term: | ||
Operating leases | 5 years 10 months 24 days | 6 years 4 months 24 days |
Finance leases | 2 years 10 months 24 days | 2 years 10 months 24 days |
Weighed-average discount rate: | ||
Operating leases | 3.45% | 3.20% |
Finance leases | 2.85% | 2.61% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities [Abstract] | |||
Operating cash flows used for operating leases | $ 74,927 | $ 69,797 | $ 65,016 |
Operating cash flows used for finance leases | 178 | 255 | 355 |
Financing cash flows used for finance leases | 3,551 | 4,189 | 4,470 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 75,027 | 80,661 | 55,895 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 2,209 | $ 2,301 | $ 4,558 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 75,479 | |
2024 | 58,013 | |
2025 | 48,529 | |
2026 | 40,055 | |
2027 | 29,132 | |
Thereafter | 67,803 | |
Total minimum lease payments | 319,011 | |
Less: Amount of lease payments representing interest | (31,029) | |
Present value of future minimum lease payments | 287,982 | |
Current portion of lease liabilities | 67,218 | $ 57,814 |
Noncurrent portion of lease liabilities | 220,764 | 220,836 |
Finance Leases | ||
2023 | 2,790 | |
2024 | 2,145 | |
2025 | 1,080 | |
2026 | 441 | |
2027 | 148 | |
Thereafter | 128 | |
Total minimum lease payments | 6,732 | |
Less: Amount of lease payments representing interest | (273) | |
Present value of future minimum lease payments | 6,459 | 8,037 |
Current portion of lease liabilities | 2,652 | 3,320 |
Noncurrent portion of lease liabilities | $ 3,807 | $ 4,717 |
Additional Cash Flow Informat_3
Additional Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid during the year for: | |||
Interest | $ 11,653 | $ 5,259 | $ 8,289 |
Income taxes | $ 168,732 | $ 130,811 | $ 145,386 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Company | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | $ 11,076,120 | $ 9,903,580 | $ 8,797,061 |
Total revenues | 11,076,120 | 9,903,580 | 8,797,061 |
Operating income (loss) | 564,877 | 530,800 | 256,834 |
Restructuring expenses | 0 | 0 | (2,214) |
Impairment loss on goodwill, identifiable intangible assets, and long-lived assets | 0 | 0 | (232,750) |
Net periodic pension (cost) income | 4,311 | 3,625 | 2,980 |
Interest expense | (13,199) | (6,071) | (9,009) |
Interest income | 2,761 | 949 | 1,521 |
Income before income taxes | 558,750 | 529,303 | 252,326 |
Capital expenditures | 49,289 | 36,192 | 47,969 |
Depreciation and amortization of property, plant and equipment | 47,296 | 48,347 | 46,721 |
Contract assets | 273,176 | 230,143 | 171,956 |
Contract liabilities | 1,098,263 | 788,134 | 722,252 |
Long-lived assets | 1,670,945 | 1,631,699 | 1,593,103 |
Total assets | $ 5,524,607 | 5,441,446 | 5,063,840 |
Number of operating subsidiaries | Company | 100 | ||
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | $ 10,599,042 | 9,393,629 | 8,366,498 |
Total revenues | 10,599,042 | 9,393,629 | 8,366,498 |
Operating income (loss) | 645,479 | 604,833 | 569,680 |
Capital expenditures | 46,366 | 32,791 | 39,880 |
Depreciation and amortization of property, plant and equipment | 42,887 | 42,396 | 42,106 |
Contract assets | 242,656 | 199,294 | 141,401 |
Contract liabilities | 1,068,181 | 754,298 | 692,403 |
Long-lived assets | 1,659,635 | 1,617,762 | 1,576,730 |
Total assets | 4,672,469 | 4,206,824 | 3,805,430 |
UNITED STATES | United States Electrical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 2,433,114 | 2,029,893 | 1,829,979 |
UNITED STATES | United States Mechanical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 4,326,674 | 3,952,586 | 3,516,789 |
UNITED STATES | United States Building Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 2,720,487 | 2,424,743 | 2,078,835 |
UNITED STATES | United States Industrial Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 1,118,767 | 986,407 | 940,895 |
UNITED KINGDOM | United Kingdom Building Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 477,078 | 509,951 | 430,563 |
Operating Segments [Member] | UNITED STATES | United States Electrical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 2,437,304 | 2,033,168 | 1,835,017 |
Total revenues | 2,438,916 | 2,033,863 | 1,836,370 |
Operating income (loss) | 148,728 | 169,355 | 162,538 |
Capital expenditures | 11,228 | 4,985 | 8,679 |
Depreciation and amortization of property, plant and equipment | 7,543 | 7,229 | 6,734 |
Contract assets | 75,603 | 48,382 | 30,986 |
Contract liabilities | 271,161 | 200,966 | 183,499 |
Long-lived assets | 302,448 | 237,766 | 177,692 |
Total assets | 1,078,405 | 855,417 | 680,060 |
Operating Segments [Member] | UNITED STATES | United States Mechanical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | 4,337,556 | 3,959,421 | 3,523,875 |
Total revenues | 4,373,050 | 3,966,123 | 3,529,880 |
Operating income (loss) | 332,294 | 314,420 | 290,444 |
Capital expenditures | 12,004 | 10,182 | 11,347 |
Depreciation and amortization of property, plant and equipment | 11,556 | 11,403 | 10,964 |
Contract assets | 100,109 | 89,538 | 67,443 |
Contract liabilities | 597,001 | 388,039 | 373,957 |
Long-lived assets | 519,335 | 515,741 | 522,800 |
Total assets | 1,845,518 | 1,672,546 | 1,552,567 |
Operating Segments [Member] | UNITED STATES | United States Building Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,821,649 | 2,523,180 | 2,161,487 |
Operating income (loss) | 144,670 | 122,724 | 115,523 |
Capital expenditures | 13,229 | 11,465 | 10,259 |
Depreciation and amortization of property, plant and equipment | 12,900 | 12,041 | 12,003 |
Contract assets | 56,217 | 42,382 | 31,661 |
Contract liabilities | 182,273 | 148,812 | 117,643 |
Long-lived assets | 496,206 | 498,692 | 481,733 |
Total assets | 1,196,001 | 1,089,844 | 1,022,290 |
Operating Segments [Member] | UNITED STATES | United States Industrial Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,175,469 | 1,021,217 | 956,373 |
Operating income (loss) | 19,787 | (1,666) | 1,175 |
Capital expenditures | 9,905 | 6,159 | 9,595 |
Depreciation and amortization of property, plant and equipment | 10,888 | 11,723 | 12,405 |
Contract assets | 10,727 | 18,992 | 11,311 |
Contract liabilities | 17,746 | 16,481 | 17,304 |
Long-lived assets | 341,646 | 365,563 | 394,505 |
Total assets | 552,545 | 589,017 | 550,513 |
Operating Segments [Member] | UNITED KINGDOM | United Kingdom Building Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 477,078 | 509,951 | 430,563 |
Operating income (loss) | 29,838 | 27,998 | 20,660 |
Capital expenditures | 2,816 | 3,015 | 3,693 |
Depreciation and amortization of property, plant and equipment | 2,752 | 3,938 | 3,046 |
Contract assets | 30,520 | 30,849 | 30,555 |
Contract liabilities | 30,082 | 33,836 | 29,849 |
Long-lived assets | 10,320 | 11,402 | 12,017 |
Total assets | 255,547 | 241,740 | 227,894 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (110,440) | (102,031) | (98,542) |
Capital expenditures | 107 | 386 | 4,396 |
Depreciation and amortization of property, plant and equipment | 1,657 | 2,013 | 1,569 |
Long-lived assets | 990 | 2,535 | 4,356 |
Total assets | 596,591 | 992,882 | 1,030,516 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (210,042) | (150,754) | (117,612) |
Intersegment Eliminations [Member] | UNITED STATES | United States Electrical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | (4,190) | (3,275) | (5,038) |
Intersegment Eliminations [Member] | UNITED STATES | United States Mechanical Construction And Facilities Services | |||
Segment Reporting Information [Line Items] | |||
Revenues from unrelated entities | $ (10,882) | $ (6,835) | $ (7,086) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | $ 23,534 | $ 18,031 | $ 14,466 | |
Costs and Expenses | 5,166 | 8,041 | 3,269 | |
Cumulative Effect Adjustment | [1] | 3,150 | ||
Deductions | [2] | (6,318) | (2,538) | (2,854) |
Balance at End of Year | $ 22,382 | $ 23,534 | $ 18,031 | |
[1]Represents the adjustment to our allowance for credit losses, which was recorded to retained earnings upon the adoption of Accounting Standards Codification Topic 326.[2]Deductions primarily represent uncollectible balances of accounts receivable written off, net of recoveries. |