Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 28, 2018 | May 21, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DYCOM INDUSTRIES INC | |
Entity Central Index Key | 67,215 | |
Current Fiscal Year End Date | --01-26 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 28, 2018 | |
Entity Common Stock, Shares Outstanding | 31,194,881 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Current assets: | ||
Cash and equivalents | $ 57,946 | $ 84,029 |
Accounts receivable, net | 644,980 | 318,684 |
Contract assets | 101,163 | 369,472 |
Inventories | 84,260 | 79,039 |
Income tax receivable | 15,568 | 13,852 |
Other current assets | 32,165 | 39,710 |
Total current assets | 936,082 | 904,786 |
Property and equipment, net | 416,258 | 414,768 |
Goodwill | 325,840 | 321,743 |
Intangible assets, net | 178,075 | 171,469 |
Other | 26,755 | 28,190 |
Total non-current assets | 946,928 | 936,170 |
Total assets | 1,883,010 | 1,840,956 |
Current liabilities: | ||
Accounts payable | 112,200 | 92,361 |
Current portion of debt | 28,875 | 26,469 |
Contract liabilities | 5,730 | 6,480 |
Accrued insurance claims | 40,182 | 53,890 |
Income taxes payable | 1,902 | 755 |
Other accrued liabilities | 86,971 | 79,657 |
Total current liabilities | 275,860 | 259,612 |
Long-term debt | 731,736 | 733,843 |
Accrued insurance claims | 59,865 | 59,385 |
Deferred tax liabilities, net non-current | 62,817 | 57,428 |
Other liabilities | 5,750 | 5,692 |
Total liabilities | 1,136,028 | 1,115,960 |
COMMITMENTS AND CONTINGENCIES, Note 19 | ||
Stockholders’ equity: | ||
Preferred stock, par value $1.00 per share: 1,000,000 shares authorized: no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.33 1/3 per share: 150,000,000 shares authorized: 31,193,069 and 31,185,669 issued and outstanding, respectively | 10,398 | 10,395 |
Additional paid-in capital | 11,010 | 6,170 |
Accumulated other comprehensive loss | (1,234) | (1,146) |
Retained earnings | 726,808 | 709,577 |
Total stockholders’ equity | 746,982 | 724,996 |
Total liabilities and stockholders’ equity | $ 1,883,010 | $ 1,840,956 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 28, 2018 | Jan. 27, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.333 | $ 0.333 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 31,193,069 | 31,185,669 |
Common stock, shares outstanding | 31,193,069 | 31,185,669 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
REVENUES: | ||
Contract revenues | $ 731,375 | $ 786,338 |
EXPENSES: | ||
Costs of earned revenues, excluding depreciation and amortization | 599,573 | 621,475 |
General and administrative (including stock-based compensation expense of $4.9 million and $4.9 million, respectively) | 62,283 | 61,317 |
Depreciation and amortization | 43,355 | 37,411 |
Total | 705,211 | 720,203 |
Interest expense, net | (10,166) | (9,382) |
Other income, net | 7,711 | 4,793 |
Income before income taxes | 23,709 | 61,546 |
Provision (benefit) for income taxes: | ||
Current | 1,095 | 25,519 |
Deferred | 5,383 | (2,769) |
Total provision for income taxes | 6,478 | 22,750 |
Net income | $ 17,231 | $ 38,796 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.55 | $ 1.24 |
Diluted earnings per common share (in dollars per share) | $ 0.53 | $ 1.22 |
Shares used in computing earnings per common share: | ||
Basic (in shares) | 31,190,366 | 31,357,124 |
Diluted (in shares) | 32,407,914 | 31,909,926 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Income Statement [Abstract] | ||
Stock-based compensation | $ 4,863 | $ 4,915 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,231 | $ 38,796 |
Foreign currency translation losses, net of tax | (88) | (165) |
Comprehensive income | $ 17,143 | $ 38,631 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
OPERATING ACTIVITIES: | ||
Net income | $ 17,231 | $ 38,796 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | ||
Depreciation and amortization | 43,355 | 37,411 |
Deferred income tax provision (benefit) | 5,383 | (2,769) |
Stock-based compensation | 4,863 | 4,915 |
Bad debt (recovery) expense, net | (24) | 98 |
Gain on sale of fixed assets | (8,415) | (5,048) |
Amortization of debt discount | 4,672 | 4,425 |
Amortization of debt issuance costs and other | 887 | 835 |
Excess tax benefit from share-based awards | 0 | (1,274) |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (8,552) | (31,164) |
Contract assets, net | (44,133) | (44,636) |
Other current assets and inventory | (10,533) | (5,680) |
Other assets | (212) | 330 |
Income taxes receivable/payable | (568) | 20,643 |
Accounts payable | 13,169 | 13,338 |
Accrued liabilities, insurance claims, and other liabilities | 7,454 | 12,102 |
Net cash provided by operating activities | 24,577 | 42,322 |
INVESTING ACTIVITIES: | ||
Cash paid for acquisitions, net of cash acquired | (20,917) | (26,427) |
Capital expenditures | (34,497) | (58,312) |
Proceeds from sale of assets | 8,011 | 5,753 |
Other investing activities | 1,576 | 628 |
Net cash used in investing activities | (45,827) | (78,358) |
FINANCING ACTIVITIES: | ||
Proceeds from borrowings on senior credit agreement, including term loans | 0 | 208,000 |
Principal payments on senior credit agreement, including term loans | (4,813) | (146,188) |
Repurchase of common stock | 0 | (37,909) |
Exercise of stock options | 67 | 946 |
Restricted stock tax withholdings | (87) | (221) |
Excess tax benefit from share-based awards | 0 | 1,274 |
Net cash (used in) provided by financing activities | (4,833) | 25,902 |
Net decrease in cash and equivalents and restricted cash | (26,083) | (10,134) |
CASH AND EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 90,182 | 34,899 |
CASH AND EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 64,099 | 24,765 |
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW ACTIVITIES AND NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Cash paid for interest | 5,415 | 4,907 |
Cash paid for taxes, net | 2,322 | 4,962 |
Purchases of capital assets included in accounts payable or other accrued liabilities at period end | $ 6,769 | $ 9,579 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Apr. 28, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Accounting | 1. Basis of Presentation Dycom Industries, Inc. (“Dycom” or the “Company”) is a leading provider of specialty contracting services throughout the United States and in Canada. The Company provides program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries, all of which are wholly-owned, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the Company’s audited financial statements included in the Company’s Transition Report on Form 10-K for the six months ended January 27, 2018 , filed with the SEC on March 2, 2018 . In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included. This includes all normal and recurring adjustments and elimination of intercompany accounts and transactions. Operating results for the interim period are not necessarily indicative of the results expected for any subsequent interim or annual period. Accounting Period. In September 2017, the Company’s Board of Directors approved a change in the Company’s fiscal year end from the last Saturday in July to the last Saturday in January. The change in fiscal year end better aligns the Company’s fiscal year with the planning cycles of its customers. For quarterly comparisons, there were no changes to the months in each fiscal quarter. Beginning with fiscal 2019, each fiscal year ends on the last Saturday in January and consists of either 52 or 53 weeks of operations (with the additional week of operations occurring in the fourth fiscal quarter). The Company refers to the period beginning January 28, 2018 and ending January 26, 2019 as “fiscal 2019”, the period beginning July 30, 2017 and ending January 27, 2018 as the “2018 transition period”, and the period beginning July 31, 2016 and ending July 29, 2017 as “fiscal 2017”. Segment Information. The Company operates in one reportable segment. Its services are provided by its operating segments on a decentralized basis. Each operating segment consists of a subsidiary (or in certain instances, the combination of two or more subsidiaries). Management of the operating segments report to the Company’s Chief Operating Officer who reports to the Chief Executive Officer, the chief operating decision maker. All of the Company’s operating segments have been aggregated into one reportable segment based on their similar economic characteristics, nature of services and production processes, type of customers, and service distribution methods. |
Significant Accounting Policies
Significant Accounting Policies and Estimates | 3 Months Ended |
Apr. 28, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Significant Accounting Policies and Estimates Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. These estimates are based on the Company’s historical experience and management’s understanding of current facts and circumstances. At the time they are made, the Company believes that such estimates are fair when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole. However, actual results could differ materially from those estimates. There have been no material changes to the Company’s significant accounting policies and critical accounting estimates described in the Company’s Transition Report on Form 10-K for the six months ended January 27, 2018 except as described below. Revenue Recognition. The Company performs a substantial majority of its services under master service agreements and other contracts that contain customer-specified service requirements. These agreements include discrete pricing for individual tasks including, for example, the placement of underground or aerial fiber, directional boring, and fiber splicing, each based on a specific unit of measure. Contractual agreements exist when each party involved approves and commits to the agreement, the rights of the parties and payment terms are identified, the agreement has commercial substance, and collectability of consideration is probable. The Company’s services are performed for the sole benefit of its customers, whereby the assets being created or maintained are controlled by the customer and the services the Company performs do not have alternative benefits for the Company. Revenue is recognized over time as services are performed and customers simultaneously receive and consume the benefits provided by the Company. Output measures such as units delivered are utilized to assess progress against specific contractual performance obligations for the majority of the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the output method using units delivered best represents the measure of progress against the performance obligations incorporated within the contractual agreements. This method captures the amount of units delivered pursuant to contracts and is used only when the Company’s performance does not produce significant amounts of work in process prior to complete satisfaction of the performance obligation. For a portion of contract items, representing approximately 5.0% of contract revenues during the three months ended April 28, 2018 , units to be completed consist of multiple tasks. For these items, the transaction price is allocated to each task based on relative standalone measurements, such as similar selling prices for similar tasks, or in the alternative, the cost to perform tasks. Revenue is recognized for these items as the tasks are completed as a measurement of progress in the satisfaction of the corresponding performance obligation. For certain contracts, representing approximately 2.5% of contract revenues, the Company uses the cost-to-cost measure of progress. These contracts are generally lump sum jobs that are completed over a three to four month period. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs. Contract costs include direct labor, direct materials, and subcontractor costs, as well as an allocation of indirect costs. Contract revenues are recorded as costs are incurred. For contracts using the cost-to-cost measure of progress, the Company accrues the entire amount of a contract loss, if any, at the time the loss is determined to be probable and can be reasonably estimated. Accounts receivable, net. The Company grants credit to its customers, generally without collateral, under normal payment terms (typically 30 to 90 days after invoicing). Generally, invoicing occurs within 45 days after the related services are performed. Accounts receivable represents an unconditional right to consideration arising from the Company’s performance under contracts with customers. Accounts receivable include billed accounts receivable, unbilled accounts receivable, and retainage. The carrying value of such receivables, net of the allowance for doubtful accounts, represents their estimated realizable value. Unbilled accounts receivable represent amounts the Company has an unconditional right to receive payment for although invoicing is subject to the completion of certain process or other requirements. Such requirements may include the passage of time, completion of other items within a statement of work, or other billing requirements within contract terms. Certain of the Company’s contracts contain retainage provisions where a portion of the revenue earned is withheld from payment as a form of security until contractual provisions are met. The collectability of retainage is included in the Company’s overall assessment of the collectability of accounts receivable amounts due. The Company expects to collect the outstanding balance of accounts receivable, net (including trade accounts receivable, unbilled accounts receivable, and retainage) within the next twelve months. The Company estimates its allowance for doubtful accounts for specific accounts receivable balances based on historical collection trends, the age of outstanding receivables, and the credit worthiness of the Company’s customers. Contract assets. Contract assets include unbilled amounts typically resulting from arrangements whereby the right to payment is conditioned on completing additional tasks or services for a performance obligation. Contract liabilities. Contract liabilities consist of amounts invoiced to customers in excess of revenue recognized. The Company’s contract asset and liability is reported in a net position on a contract by contract basis at the end of each reporting period. As of April 28, 2018 and January 27, 2018 , the contract liabilities balance is classified as current based on the timing of when the Company expects to complete the tasks for the recognition of revenue. Fair Value of Financial Instruments. The Company’s financial instruments primarily consist of cash and equivalents, restricted cash, accounts receivable, income taxes receivable and payable, accounts payable, certain accrued expenses, and long-term debt. The carrying amounts of these items approximate fair value due to their short maturity, except for the fair value of Company’s long-term debt, which is based on observable market-based inputs (Level 2). See Note 13, Debt , for further information regarding the fair value of such financial instruments. The Company’s cash and equivalents are based on quoted market prices in active markets for identical assets (Level 1) as of April 28, 2018 and January 27, 2018 . During the three months ended April 28, 2018 and April 29, 2017 , the Company had no material nonrecurring fair value measurements of assets or liabilities subsequent to their initial recognition. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Apr. 28, 2018 | |
Accounting Standards [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. Accounting Standards There have been no changes in the expected dates of adoption or estimated effects on the Company’s consolidated financial statements of recently issued accounting pronouncements from those disclosed in the Company’s Transition Report on Form 10-K for the six months ended January 27, 2018 , filed with the SEC on March 2, 2018 . Further, there have been no additional accounting standards issued as of the date of this Quarterly Report on Form 10-Q that are applicable to the consolidated financial statements of the Company. Accounting standards adopted during the period are covered in this Quarterly Report on Form 10-Q. Recently Adopted Accounting Standards Revenue Recognition . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU No. 2014-09 and related updates are referred to herein as “ASU 2014-09”. ASU 2014-09 replaces numerous requirements in GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method and the modified retrospective method. Under the full retrospective method, the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. Effective January 28, 2018, the Company adopted the requirements of ASU 2014-09 using the modified retrospective method. As a practical expedient, the Company adopted the new standard only for existing contracts as of January 28, 2018, the date of adoption. Any contracts that had expired prior to January 28, 2018 were not evaluated against the new standard. The Company believes its application of the new standard to only those contracts existing as of January 28, 2018 did not have a material impact on adoption. As of January 28, 2018, the date of adoption, the Company reclassified $311.7 million of unbilled receivables from contract assets (historically referred to as Costs and Estimated Earnings in Excess of Billings) to accounts receivable, net in accordance with the guidance under ASU 2014-09. As of April 28, 2018, the disclosure of the impact of adoption on the Company’s condensed consolidated balance sheet is as follows (dollars in thousands): April 28, 2018 As reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Accounts receivable, net $ 644,980 $ 326,973 $ 318,007 Contract assets $ 101,163 $ 419,170 $ (318,007 ) The adoption of ASU 2014-09 resulted in balance sheet classification changes for amounts that have not been invoiced to customers but for which the Company has satisfied the performance obligation and has an unconditional right to receive payment. Prior to the adoption of ASU 2014-09, amounts not yet invoiced to customers were included in the Company’s contract assets regardless of rights to payment. These amounts represent unbilled accounts receivable for which the Company has an unconditional right to receive payment although invoicing is subject to the completion of certain process or other requirements. Such requirements may include the passage of time, completion of other items within a statement of work, or other billing requirements within contract terms. The standard did not have an impact to opening retained earnings or the Company’s condensed consolidated statement of operations as there was no change in timing or amount of revenue recognized under contracts with customers, as compared to the Company’s historical revenue recognition practices. Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 is intended to reduce the diversity in practice regarding the classification and presentation of changes in restricted cash within the statement of cash flows. The amendments in this update require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 effective January 28, 2018, the first day of fiscal 2019, and applied this change of presentation retrospectively to the Company’s condensed consolidated statement of cash flows for the three months ended April 29, 2017 . As a result of the retrospective adoption, the beginning-of-period and end-of-period total amounts have been restated to include restricted cash of $5.4 million , $5.4 million , and $6.2 million as of January 28, 2017, April 29, 2017, and January 27, 2018, respectively. Restricted cash primarily relates to funding provisions of the Company’s insurance program. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) . In an effort to reduce diversity in practice regarding the classification of certain transactions within the statement of cash flows, ASU 2016-15 addresses eight specific cash flow issues including, among other things, the classification of debt prepayment or debt extinguishment costs. Historically, the Company has classified certain cash flows related to debt prepayment or debt extinguishment costs as operating activities. Upon adoption of ASU 2016-15, the Company is required to classify such cash flows as financing activities. The adoption of ASU 2016-15 as it relates to any of the other seven cash flow issues specified does not have a material effect on the Company’s consolidated statement of cash flows. The Company adopted ASU 2016-15 effective January 28, 2018, the first day of fiscal 2019, on a retrospective basis as required. There was no impact to the Company’s condensed consolidated statement of cash flows for the three months ended April 28, 2018 or April 29, 2017 as a result of the adoption. The Company also adopted the following Accounting Standards Updates during the three months ended April 28, 2018 , neither of which had a material effect on the Company’s consolidated financial statements: ASU Adoption Date 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory January 28, 2018 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 28, 2018 Accounting Standards Not Yet Adopted Leases . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 substantially retains the classification for leasing transactions as finance or operating leases. The new guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms greater than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For finance leases the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases the lessee would recognize total lease expense on a straight-line basis. As a result of the adoption of ASU 2016-02, it is expected that the Company's operating leases with terms greater than twelve months will be recognized as lease assets and lease liabilities on its consolidated balance sheet. ASU 2016-02 is not expected to have a material effect on the amount of expense recognized in connection with the Company’s current lease contracts as compared to current practice. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach and will be effective for the Company for the fiscal year ended January 25, 2020 and interim reporting periods within that year. The Company continues to evaluate the impact of adoption. |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 3 Months Ended |
Apr. 28, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share | Computation of Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts): For the Three Months Ended April 28, 2018 April 29, 2017 Net income available to common stockholders (numerator) $ 17,231 $ 38,796 Weighted-average number of common shares (denominator) 31,190,366 31,357,124 Basic earnings per common share $ 0.55 $ 1.24 Weighted-average number of common shares 31,190,366 31,357,124 Potential shares of common stock arising from stock options, and unvested restricted share units 602,549 552,802 Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021 (1) 614,999 — Total shares-diluted (denominator) 32,407,914 31,909,926 Diluted earnings per common share $ 0.53 $ 1.22 Anti-dilutive weighted shares excluded from the calculation of earnings per common share: Stock-based awards 80,847 96,020 0.75% convertible senior notes due 2021 4,390,735 5,005,734 Warrants 5,005,734 5,005,734 Total 9,477,316 10,107,488 (1) Under the treasury stock method, the convertible senior notes will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the conversion price for the convertible senior notes of $96.89 per share. The warrants associated with the Company’s convertible senior notes will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the warrant strike price of $130.43 per share. For the three months ended April 28, 2018 , the Company’s average stock price of $110.46 exceeded the conversion price for the convertible senior notes. As a result, shares presumed to be issuable under the convertible senior notes that were dilutive during the period are included in the calculation of diluted earnings per share for the three months ended April 28, 2018 . As the Company’s average stock price did not exceed the strike price for the warrants, the underlying common shares were anti-dilutive as reflected in the table above. In connection with the offering of the convertible senior notes, the Company entered into convertible note hedge transactions with counterparties for the purpose of reducing the potential dilution to common stockholders from the conversion of the notes and offsetting any potential cash payments in excess of the principal amount of the notes. Prior to conversion, the convertible note hedge is not included for purposes of the calculation of earnings per common share as its effect would be anti-dilutive. Upon conversion, the convertible note hedge is expected to offset the dilutive effect of the convertible senior notes when the average stock price for the period is above $96.89 per share. See Note 13, Debt , for additional information related to the Company’s convertible senior notes, warrant transactions, and hedge transactions. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 28, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2019. During March 2018, the Company acquired certain assets and assumed certain liabilities of a telecommunications construction and maintenance services provider in the Midwest and Northeast United States for $20.9 million , net of cash acquired. This acquisition expands the Company’s geographic presence within its existing customer base. Fiscal 2017. During March 2017, the Company acquired Texstar Enterprises, Inc. (“Texstar”) for $26.1 million , net of cash acquired. Texstar provides construction and maintenance services for telecommunications providers in the Southwest and Pacific Northwest United States. This acquisition expands the Company’s geographic presence within its existing customer base. Purchase Price Allocations The purchase price allocation of Texstar was completed within the 12-month measurement period from the date of acquisition. Adjustments to provisional amounts were recognized in the reporting period in which the adjustments were determined and were not material. The purchase price allocation of the business acquired in fiscal 2019 is preliminary and will be completed when valuations for intangible assets and other amounts are finalized within the 12-month measurement period from the date of acquisition. The following table summarizes the aggregate consideration paid for businesses acquired in fiscal 2019 and fiscal 2017 (dollars in millions): 2019 2017 Assets Accounts receivable $ 6.0 $ 8.9 Contract assets — 2.4 Inventories and other current assets 0.2 0.2 Property and equipment 0.5 5.6 Goodwill 4.1 10.1 Intangible assets - customer relationships 12.3 9.8 Intangible assets - trade names and other — 0.7 Total assets 23.1 37.7 Liabilities Accounts payable 2.2 3.2 Accrued and other current liabilities — 3.4 Deferred tax liabilities, net non-current — 5.0 Total liabilities 2.2 11.6 Net Assets Acquired $ 20.9 $ 26.1 The goodwill associated with the stock purchase of Texstar is not deductible for tax purposes. Results of businesses acquired are included in the condensed consolidated financial statements from their respective dates of acquisition. The revenues and net income of the fiscal 2019 acquisition and Texstar were not material during the three months ended April 28, 2018 or April 29, 2017 . |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 28, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable, Contract Assets, and Contract Liabilities The following provides further details on the balance sheet accounts of accounts receivable, net, contract assets, and contract liabilities. See Note 2, Significant Accounting Policies and Estimates , for further information on the Company’s policies related to these balance sheet accounts, as well as its revenue recognition policies. Accounts Receivable Accounts receivable consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Trade accounts receivable $ 309,724 $ 300,271 Unbilled accounts receivable 318,007 — Retainage 18,225 19,411 Total 645,956 319,682 Less: allowance for doubtful accounts (976 ) (998 ) Accounts receivable, net $ 644,980 $ 318,684 See Note 3, Accounting Standards , for further information on the comparative unbilled accounts receivable as of April 28, 2018 and January 27, 2018 as a result of the adoption of ASU 2014-09. Trade accounts receivable and unbilled accounts receivable increased $2.1 million and $3.9 million , respectively, from the fiscal 2019 acquisition. During the three months ended April 28, 2018 and April 29, 2017 , write-offs to the allowance for doubtful accounts, net of recoveries, were not material. Contract Assets and Contract Liabilities Net contract assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Contract assets $ 101,163 $ 369,472 Contract liabilities 5,730 6,480 Contract assets, net $ 95,433 $ 362,992 See Note 3, Accounting Standards, for further information on the comparative contract assets as of April 28, 2018 and January 27, 2018 as a result of the adoption of ASU 2014-09. Excluding the impact of the adoption of ASU 2014-09, the increase in contract assets is primarily a result of a general increase in services performed during the three months ended April 28, 2018 under the related contracts as compared to billing requirements met during the period. There were no other material changes in contract assets during the periods. During the three months ended April 28, 2018 , the Company performed services and recognized an immaterial amount of revenue related to its contract liabilities that existed at January 27, 2018. Customer Credit Concentration Customers whose combined amounts of trade accounts receivable and contract assets, net exceeded 10% of total combined accounts receivable and contract assets, net as of April 28, 2018 or January 27, 2018 were as follows (dollars in millions): April 28, 2018 January 27, 2018 Amount % of Total Amount % of Total Comcast Corporation $ 164.2 22.2% $ 166.5 24.5% Verizon Communications Inc. $ 156.5 21.1% $ 98.2 14.4% CenturyLink, Inc. $ 120.3 16.3% $ 126.0 18.5% AT&T Inc. $ 102.8 13.9% $ 79.2 11.6% The Company believes that none of its significant customers were experiencing financial difficulties that would materially impact the collectability of the Company’s total accounts receivable and contract assets, net as of April 28, 2018 or January 27, 2018 . |
Other Current Assets and Other
Other Current Assets and Other Assets | 3 Months Ended |
Apr. 28, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets and Other Assets | Other Current Assets and Other Assets Other current assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Prepaid expenses $ 18,461 $ 13,167 Insurance recoveries/receivables for accrued insurance claims 911 13,701 Receivables on equipment sales 1,344 31 Deposits and other current assets, including restricted cash 11,449 12,811 Total other current assets $ 32,165 $ 39,710 Other assets (long-term) consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Deferred financing costs $ 3,496 $ 3,873 Restricted cash 5,253 5,253 Insurance recoveries/receivables for accrued insurance claims 5,576 6,722 Other non-current deposits and assets 12,430 12,342 Total other assets $ 26,755 $ 28,190 Insurance recoveries/receivables represent amounts related to accrued insurance claims that exceed the Company’s loss retention and are covered by insurance. During the three months ended April 28, 2018 , total insurance recoveries/receivables decreased approximately $13.9 million related to the settlement of claims. |
Cash and Equivalents and Restri
Cash and Equivalents and Restricted Cash | 3 Months Ended |
Apr. 28, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | 8. Cash and Equivalents and Restricted Cash Amounts of cash and equivalents and restricted cash reported in the condensed consolidated statement of cash flows consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Cash and equivalents $ 57,946 $ 84,029 Restricted cash included in: Other current assets 900 900 Other assets (long-term) 5,253 5,253 Total cash and equivalents and restricted cash $ 64,099 $ 90,182 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Apr. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (dollars in thousands): Estimated Useful Lives (Years) April 28, 2018 January 27, 2018 Land — $ 3,470 $ 3,470 Buildings 10-35 12,437 12,315 Leasehold improvements 1-10 14,696 14,202 Vehicles 1-5 540,862 536,379 Computer hardware and software 1-7 123,306 117,058 Office furniture and equipment 1-10 12,126 11,686 Equipment and machinery 1-10 277,450 273,712 Total 984,347 968,822 Less: accumulated depreciation (568,089 ) (554,054 ) Property and equipment, net $ 416,258 $ 414,768 Depreciation expense was $37.7 million and $31.2 million for the three months ended April 28, 2018 and April 29, 2017 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company’s goodwill balance was $325.8 million and $321.7 million as of April 28, 2018 and January 27, 2018 , respectively. Changes in the carrying amount of goodwill were as follows (dollars in thousands): Goodwill Accumulated Impairment Losses Total Balance as of January 27, 2018 $ 517,510 $ (195,767 ) $ 321,743 Goodwill from fiscal 2019 acquisition 4,097 — 4,097 Balance as of April 28, 2018 $ 521,607 $ (195,767 ) $ 325,840 The Company’s goodwill resides in multiple reporting units and primarily consists of expected synergies resulting from acquisitions, including the expansion of the Company’s geographic presence and strengthening of its customer base. Goodwill and other indefinite-lived intangible assets are assessed annually for impairment, or more frequently if events occur that would indicate a potential reduction in the fair value of a reporting unit below its carrying value. The profitability of individual reporting units may suffer periodically due to downturns in customer demand and the level of overall economic activity including, in particular, construction and housing activity. The Company’s customers may reduce capital expenditures and defer or cancel pending projects during times of slowing economic conditions. Additionally, adverse conditions in the economy and future volatility in the equity and credit markets could impact the valuation of the Company’s reporting units. The cyclical nature of the Company’s business, the high level of competition existing within its industry, and the concentration of its revenues from a limited number of customers may also cause results to vary. These factors may affect individual reporting units disproportionately, relative to the Company as a whole. As a result, the performance of one or more of the reporting units could decline, resulting in an impairment of goodwill or intangible assets. The Company has historically completed its annual goodwill impairment assessment as of the first day of the fourth fiscal quarter of each year. As a result of the change in the Company’s fiscal year end, the annual goodwill impairment assessment date was changed to the first day of the fiscal quarter ending on the last Saturday in January, as this became the first day of the Company’s fourth fiscal quarter. For the 2018 transition period, the assessment was performed as of October 29, 2017. As a result of the Company’s 2018 transition period assessment, the Company determined that the fair values of each of the reporting units and the indefinite-lived intangible asset were substantially in excess of their carrying values and no impairment had occurred. As of April 28, 2018 , the Company continues to believe the goodwill and the indefinite-lived intangible asset are recoverable for all of its reporting units; however, significant adverse changes in the projected revenues and cash flows of a reporting unit could result in an impairment of goodwill or the indefinite-lived intangible asset . There can be no assurances that goodwill or the indefinite-lived intangible asset may not be impaired in future periods. Intangible Assets The Company’s intangible assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Weighted Average Remaining Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships 11.7 $ 312,017 $ 141,096 $ 170,921 $ 299,717 $ 135,544 $ 164,173 Trade names 8.3 10,350 7,992 2,358 10,350 7,872 2,478 UtiliQuest trade name — 4,700 — 4,700 4,700 — 4,700 Non-compete agreements 2.2 450 354 96 450 332 118 $ 327,517 $ 149,442 $ 178,075 $ 315,217 $ 143,748 $ 171,469 Amortization of the Company’s customer relationship intangibles is recognized on an accelerated basis as a function of the expected economic benefit. Amortization for the Company’s other finite-lived intangibles is recognized on a straight-line basis over the estimated useful life. Amortization expense for finite-lived intangible assets was $5.7 million and $6.2 million for the three months ended April 28, 2018 and April 29, 2017 , respectively. As of April 28, 2018 , the Company believes that the carrying amounts of its intangible assets are recoverable. However, if adverse events were to occur or circumstances were to change indicating that the carrying amount of such assets may not be fully recoverable, the assets would be reviewed for impairment and the assets could be impaired. |
Accrued Insurance Claims
Accrued Insurance Claims | 3 Months Ended |
Apr. 28, 2018 | |
Accrued Insurance Claims [Abstract] | |
Accrued Insurance Claims | Accrued Insurance Claims For claims within its insurance program, the Company retains the risk of loss, up to certain limits, for matters related to automobile liability, general liability (including damages associated with underground facility locating services), workers’ compensation, and employee group health. With regard to losses occurring in the twelve month policy period ending January 30, 2019, the Company retains the risk of loss up to $1.0 million on a per occurrence basis for automobile liability, general liability, and workers’ compensation. These retention amounts are applicable to all of the states in which the Company operates, except with respect to workers’ compensation insurance in two states in which the Company participates in state-sponsored insurance funds. Aggregate stop-loss coverage for automobile liability, general liability, and workers’ compensation claims is $78.9 million for the twelve month policy period ending January 30, 2019. The Company is party to a stop-loss agreement for losses under its employee group health plan. For calendar year 2019, the Company retains the risk of loss, on an annual basis, up to the first $400,000 of claims per participant, as well as an annual aggregate amount. Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands): April 28, 2018 January 27, 2018 Accrued insurance claims - current $ 40,182 $ 53,890 Accrued insurance claims - non-current 59,865 59,385 Total accrued insurance claims $ 100,047 $ 113,275 Insurance recoveries/receivables: Current (included in Other current assets) $ 911 $ 13,701 Non-current (included in Other assets) 5,576 6,722 Total insurance recoveries/receivables $ 6,487 $ 20,423 During the three months ended April 28, 2018 , total insurance recoveries/receivables decreased approximately $13.9 million related to the settlement of claims which were paid by the Company’s insurers. Accrued insurance claims decreased by a corresponding amount. |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Apr. 28, 2018 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Accrued payroll and related taxes $ 25,522 $ 23,010 Accrued employee benefit and incentive plan costs 10,010 16,097 Accrued construction costs 34,769 24,582 Other current liabilities 16,670 15,968 Total other accrued liabilities $ 86,971 $ 79,657 |
Debt
Debt | 3 Months Ended |
Apr. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding indebtedness consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Credit Agreement - Revolving facility (matures April 2020) $ — $ — Credit Agreement - Term loan facilities (mature April 2020) 353,250 358,063 0.75% convertible senior notes, net (mature September 2021) 407,361 402,249 760,611 760,312 Less: current portion (28,875 ) (26,469 ) Long-term debt $ 731,736 $ 733,843 Senior Credit Agreement The Company and certain of its subsidiaries are party to a credit agreement with various lenders, dated as of December 3, 2012 (as amended as of June 17, 2016, May 20, 2016, April 24, 2015 and September 9, 2015), that matures on April 24, 2020 (as amended, the “Credit Agreement”). The Credit Agreement provides for a $450.0 million revolving facility, $385.0 million in aggregate term loan facilities, and contains a sublimit of $200.0 million for the issuance of letters of credit. Subject to certain conditions the Credit Agreement provides the Company with the ability to enter into one or more incremental facilities, either by increasing the revolving commitments under the Credit Agreement and/or in the form of term loans up to the greater of (i) $150.0 million and (ii) an amount such that, after giving effect to such incremental facilities on a pro forma basis (assuming that the amount of the incremental commitments are fully drawn and funded), the consolidated senior secured leverage ratio does not exceed 2.25 to 1.00. The consolidated senior secured leverage ratio is the ratio of the Company’s consolidated senior secured indebtedness to its trailing twelve month consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined by the Credit Agreement. Borrowings under the Credit Agreement are guaranteed by substantially all of the Company’s subsidiaries and secured by the equity interests of the substantial majority of the Company’s subsidiaries. Borrowings under the Credit Agreement bear interest at the rates described below based upon the Company’s consolidated leverage ratio, which is the ratio of the Company’s consolidated total funded debt to its trailing twelve month consolidated EBITDA, as defined by the Credit Agreement. In addition, the Company incurs certain fees for unused balances and letters of credit at the rates described below, also based upon the Company’s consolidated leverage ratio: Borrowings - Eurodollar Rate Loans 1.25% - 2.00% plus LIBOR Borrowings - Base Rate Loans 0.25% - 1.00% plus administrative agent’s base rate (1) Unused Revolver Commitment 0.25% - 0.40% Standby Letters of Credit 1.25% - 2.00% Commercial Letters of Credit 0.625% - 1.00% (1) The agent’s base rate is described in the Credit Agreement as the highest of (i) the administrative agent’s prime rate, (ii) the Federal Funds Rate plus 0.50% , and (iii) the Eurodollar rate plus 1.00% , plus an applicable margin. Standby letters of credit of approximately $48.6 million , issued as part of the Company’s insurance program, were outstanding under the Credit Agreement as of both April 28, 2018 and January 27, 2018 . The weighted average interest rates and fees for balances under the Credit Agreement as of April 28, 2018 and January 27, 2018 were as follows: Weighted Average Rate End of Period April 28, 2018 January 27, 2018 Borrowings - Term loan facilities 3.63% 3.30% Borrowings - Revolving facility (1) —% —% Standby Letters of Credit 1.75% 1.75% Unused Revolver Commitment 0.35% 0.35% (1) There were no outstanding borrowings under the revolving facility as of April 28, 2018 or January 27, 2018 . The Credit Agreement contains a financial covenant that requires the Company to maintain a consolidated leverage ratio of not greater than 3.50 to 1.00 , as measured at the end of each fiscal quarter. It provides for certain increases to this ratio as specified in the Credit Agreement in connection with permitted acquisitions. In addition, the Credit Agreement contains a financial covenant that requires the Company to maintain a consolidated interest coverage ratio, which is the ratio of the Company’s trailing twelve month consolidated EBITDA to its consolidated interest expense, as defined by the Credit Agreement, of not less than 3.00 to 1.00 , as measured at the end of each fiscal quarter. At both April 28, 2018 and January 27, 2018 , the Company was in compliance with the financial covenants of the Credit Agreement and had borrowing availability under the revolving facility of $401.4 million as determined by the most restrictive covenant. 0.75% Convertible Senior Notes Due 2021 On September 15, 2015, the Company issued 0.75% convertible senior notes due September 2021 (the “Notes”) in a private placement in the principal amount of $485.0 million . The Notes, governed by the terms of an indenture between the Company and a bank trustee are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company. The Notes bear interest at a rate of 0.75% per year, payable in cash semiannually in March and September, and will mature on September 15, 2021, unless earlier purchased by the Company or converted. In the event the Company fails to perform certain obligations under the indenture, the Notes will accrue additional interest. Certain events are considered “events of default” under the Notes, which may result in the acceleration of the maturity of the Notes, as described in the indenture. Each $1,000 of principal of the Notes is convertible into 10.3211 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $96.89 per share. The conversion rate is subject to adjustment in certain circumstances, including in connection with specified fundamental changes (as defined in the indenture). In addition, holders of the Notes have the right to require the Company to repurchase all or a portion of their notes on the occurrence of a fundamental change at a price of 100% of their principal amount plus accrued and unpaid interest. Prior to June 15, 2021, the Notes are convertible by the Note holder under the following circumstances: (1) during any fiscal quarter commencing after October 24, 2015 (and only during such fiscal quarter) if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days period ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on such trading day ( $125.96 assuming an applicable conversion price of $96.89 ); (2) during the five consecutive business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after June 15, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their Notes at any time regardless of the foregoing circumstances. Upon conversion, the Notes will be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Company intends to settle the principal amount of the Notes with cash. During the three months ended April 28, 2018 , the closing price of the Company’s common stock did not meet or exceed 130% of the applicable conversion price of the Notes for at least 20 of the last 30 consecutive trading dates of the quarter. Additionally, no other conditions allowing holders of the Notes to convert have been met as of April 28, 2018 . As a result, the Notes were not convertible during the three months ended April 28, 2018 and are classified as long-term debt. In accordance with ASC Topic 470, Debt , certain convertible debt instruments that may be settled in cash upon conversion are required to be accounted for as separate liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar instrument that does not have an associated convertible feature using an indicative market interest rate (“Comparable Yield”) as of the date of issuance. The difference between the principal amount of the notes and the carrying amount represents a debt discount. The debt discount is amortized to interest expense using the Comparable Yield ( 5.5% with respect to the Notes) using the effective interest rate method over the term of the notes. The Company incurred $4.7 million and $4.4 million of interest expense during the three months ended April 28, 2018 and April 29, 2017 , respectively, for the non-cash amortization of the debt discount. The liability component of the Notes consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Liability component Principal amount of 0.75% convertible senior notes due September 2021 $ 485,000 $ 485,000 Less: Debt discount (70,227 ) (74,899 ) Less: Debt issuance costs (7,412 ) (7,852 ) Net carrying amount of Notes $ 407,361 $ 402,249 The equity component of the Notes was recognized at issuance and represents the difference between the principal amount of the Notes and the fair value of the liability component of the Notes at issuance. The equity component approximated $112.6 million at the time of issuance and its fair value is not remeasured as long as it continues to meet the conditions for equity classification. The following table summarizes the fair value of the Notes, net of the debt discount and debt issuance costs. The fair value of the Notes is based on the closing trading price per $100 of the Notes as of the last day of trading for the respective periods (Level 2), which was $126.61 and $136.01 as of April 28, 2018 and January 27, 2018 , respectively (dollars in thousands): April 28, 2018 January 27, 2018 Fair value of principal amount of Notes $ 614,059 $ 659,649 Less: Debt discount and debt issuance costs (77,639 ) (82,751 ) Fair value of Notes $ 536,420 $ 576,898 Convertible Note Hedge and Warrant Transactions In connection with the offering of the Notes, the Company entered into convertible note hedge transactions with counterparties to reduce the potential dilution to common stockholders from the conversion of the Notes and offsetting any potential cash payments in excess of the principal amount of the Notes. In the event that shares or cash are deliverable to holders of the Notes upon conversion at limits defined in the indenture, counterparties to the convertible note hedge will be required to deliver up to 5.006 million shares of the Company’s common stock or pay cash to the Company in a similar amount as the value that the Company delivers to the holders of the Notes based on a conversion price of $96.89 per share. In addition, the Company entered into separately negotiated warrant transactions with the same counterparties as the convertible note hedge transactions whereby the Company sold warrants to purchase, subject to certain anti-dilution adjustments, up to 5.006 million shares of the Company’s common stock at a price of $130.43 per share. The warrants will not have a dilutive effect on the Company’s earnings per share unless the Company’s quarterly average share price exceeds the warrant strike price of $130.43 per share. In this event, the Company expects to settle the warrant transactions on a net share basis whereby it will issue shares of its common stock. Upon settlement of the conversion premium of the Notes, convertible note hedge, and warrants, the resulting dilutive impact of these transactions, if any, would be the number of shares necessary to settle the value of the warrant transactions above $130.43 per share. The net amounts incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the consolidated balance sheets during fiscal 2016 and are not expected to be remeasured in subsequent reporting periods. The Company recorded an initial deferred tax liability of $43.4 million in connection with the debt discount associated with the Notes and recorded an initial deferred tax asset of $43.2 million in connection with the convertible note hedge transactions. Both the deferred tax liability and deferred tax asset are included in non-current deferred tax liabilities in the condensed consolidated balance sheets. See Note 14, Income Taxes , for additional information regarding the Company’s deferred tax liabilities and assets. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s interim income tax provisions are based on the effective income tax rate expected to be applicable for the full fiscal year, adjusted for specific items that are required to be recognized in the period in which they occur. Deferred tax assets and liabilities are based on the enacted tax rate that will apply in future periods when such assets and liabilities are expected to be settled or realized. The Tax Cuts and Jobs Act of 2017 (“Tax Reform”) was enacted in December 2017 and includes significant changes to U.S. income tax law. Tax Reform, among other things, reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent. As a result, the Company’s net deferred tax liabilities as of January 27, 2018 were remeasured to reflect the reduced rate under Tax Reform. The Company’s effective income tax rate of 27.3% and 37.0% for the three months ended April 28, 2018 and April 29, 2017 , respectively, differs from the applicable U.S. federal corporate income tax rate for each respective period primarily as the result of non-deductible and non-taxable items, tax credits recognized in relation to pre-tax results, and certain impacts from the vesting and exercise of share-based awards. The Company’s interpretations of the provisions of Tax Reform could differ from future interpretations and guidance from the U.S Treasury Department, the IRS and other regulatory agencies, including state taxing authorities in jurisdictions where the Company operates. Any future adjustments resulting from these factors would impact the Company’s provision for income taxes and effective tax rate in the period in which they are made. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Apr. 28, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net The components of other income, net, were as follows (dollars in thousands): For the Three Months Ended April 28, 2018 April 29, 2017 Gain on sale of fixed assets $ 8,415 $ 5,048 Miscellaneous (expense), net (704 ) (255 ) Total other income, net $ 7,711 $ 4,793 The Company participates in a customer-sponsored vendor payment program. All eligible accounts receivable from this customer are included in the program and payment is received pursuant to a non-recourse sale to the customer’s bank partner. This program effectively reduces the time to collect these receivables as compared to that customer’s standard payment terms. The Company incurs a discount fee to the bank on the payments received that is reflected as an expense component in other income, net, in the condensed consolidated statements of operations. During each of the three months ended April 28, 2018 and April 29, 2017 , miscellaneous expense, net includes approximately $0.9 million of discount fee expense incurred in connection with the non-recourse sale of accounts receivable under this program. The program has not changed since its inception during fiscal 2016. |
Capital Stock
Capital Stock | 3 Months Ended |
Apr. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock Repurchases of Common Stock. During the three months ended April 29, 2017 , the Company repurchased and canceled 400,000 shares of its common stock, at an average price of $94.77 per share, for $37.9 million . The Company did not repurchase any of its common stock during the three months ended April 28, 2018 . As of April 28, 2018 , $95.2 million remained available for repurchases through August 2018 under the Company’s share repurchase program. |
Stock-Based Awards
Stock-Based Awards | 3 Months Ended |
Apr. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | Stock-Based Awards The Company has certain stock-based compensation plans under which it grants stock-based awards, including common stock, stock options, restricted share units, and performance-based restricted share units (“Performance RSUs”) to attract, retain, and reward talented employees, officers, and directors, and to align the interests of employees, officers, and directors with those of the stockholders. Compensation expense for stock-based awards is based on fair value at the measurement date. It fluctuates over time as a function of the duration of vesting periods of the stock-based awards and the Company’s performance, as measured by criteria set forth in performance-based awards. This expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized depends on the quantity of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period. The performance criteria for the Company’s performance-based equity awards utilize the Company’s operating earnings (adjusted for certain amounts) as a percentage of contract revenues for the applicable four-quarter period (a “Performance Year”) and its Performance Year operating cash flow level (adjusted for certain amounts). Additionally, certain awards include three-year performance goals that, if met, result in supplemental shares awarded. For Performance RSUs, the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if it determines it is probable that performance criteria for the awards will be met. Stock-based compensation expense and the related tax benefit recognized and realized during the three months ended April 28, 2018 and April 29, 2017 were as follows (dollars in thousands): For the Three Months Ended April 28, 2018 April 29, 2017 Stock-based compensation $ 4,863 $ 4,915 Income tax effect of stock-based compensation $ 1,069 $ 1,943 As of April 28, 2018 , the Company had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs (based on the Company’s estimate of performance goal achievement) of $3.8 million , $11.5 million , and $31.9 million , respectively. This expense will be recognized over a weighted-average number of years of 2.6 , 2.8 , and 2.5 , respectively, based on the average remaining service periods for the awards. As of April 28, 2018 , the Company may recognize an additional $13.4 million in compensation expense in future periods if the maximum amount of Performance RSUs is earned based on certain performance measures being met. Stock Options The following table summarizes stock option award activity during the three months ended April 28, 2018 : Stock Options Shares Weighted Average Exercise Price Outstanding as of January 27, 2018 636,730 $ 27.93 Granted 28,796 $ 106.19 Options exercised (5,084 ) $ 13.15 Canceled — $ — Outstanding as of April 28, 2018 660,442 $ 31.46 Exercisable options as of April 28, 2018 544,423 $ 21.71 RSUs and Performance RSUs The following table summarizes RSU and Performance RSU award activity during the three months ended April 28, 2018 : Restricted Stock RSUs Performance RSUs Share Units Weighted Average Grant Price Share Units Weighted Average Grant Price Outstanding as of January 27, 2018 133,896 $ 71.81 390,327 $ 80.52 Granted 39,612 $ 106.36 218,628 $ 106.19 Share units vested (3,099 ) $ 76.98 — $ — Forfeited or canceled (3,299 ) $ 59.10 (10,437 ) $ 81.55 Outstanding as of April 28, 2018 167,110 $ 80.16 598,518 $ 89.88 The total amount of granted Performance RSUs presented above consists of 158,841 target shares and 59,787 supplemental shares. The total amount of Performance RSUs outstanding as of April 28, 2018 consists of 431,118 target shares and 167,400 supplemental shares. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Apr. 28, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | The Company’s customer base is highly concentrated, with its top five customers during the three months ended April 28, 2018 and April 29, 2017 accounting for approximately 78.8% and 78.4% , respectively, of its total contract revenues. Customers whose contract revenues exceeded 10% of total contract revenues during the three months ended April 28, 2018 or April 29, 2017 , as well as total contract revenues from all other customers combined, were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total AT&T Inc. $ 177.0 24.2% $ 213.1 27.1% Comcast Corporation 159.2 21.8 152.9 19.4 Verizon Communications Inc. 122.1 16.7 66.8 8.5 CenturyLink, Inc. (1) 89.7 12.3 146.2 18.6 Total other customers combined 183.4 25.0 207.3 26.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% (1) For comparison purposes in the table above, amounts from CenturyLink, Inc. and Level 3 Communications, Inc. have been combined for periods prior to their November 2017 merger. See Note 6, Accounts Receivable, Contract Assets, and Contract Liabilities , for information on the Company’s customer credit concentration and collectability of trade accounts receivable and contract assets. Customer Type Total contract revenues by customer type during the three months ended April 28, 2018 and April 29, 2017 were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total Telecommunications $ 667.2 91.2% $ 725.3 92.2% Underground facility locating 45.1 6.2 42.1 5.4 Electrical and gas utilities and other 19.1 2.6 18.9 2.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% Remaining Performance Obligations Master service agreements and other contractual agreements with customers contain customer-specified service requirements, such as discrete pricing for individual tasks. In most cases, the Company’s customers are not contractually committed to procure specific volumes of services under these agreements. Services are generally performed pursuant to these agreements in accordance with individual work orders. An individual work order generally is completed within one year or in many cases, less than one week. As a result, the Company’s remaining performance obligations under the work orders not yet completed is not meaningful in relation to the Company’s overall revenue at any given point in time. The Company applies the practical expedient in Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Apr. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies During the fourth quarter of fiscal 2016, one of the Company’s subsidiaries ceased operations. This subsidiary contributed to a multiemployer pension plan, the Pension, Hospitalization and Benefit Plan of the Electrical Industry - Pension Trust Fund (the “Plan”). In October 2016, the Plan demanded payment for a claimed withdrawal liability of approximately $13.0 million . In December 2016, the Company submitted a formal request to the Plan seeking review of the Plan’s withdrawal liability determination. The Company is disputing the claim of a withdrawal liability demanded by the Plan as it believes there is a statutory exemption available under the Employee Retirement Income Security Act (“ERISA”) for multiemployer pension plans that primarily cover employees in the building and construction industry. The Plan has taken the position that the work at issue does not qualify for the statutory exemption. The Company has submitted this dispute to arbitration, as required by ERISA, with a hearing expected sometime in calendar 2018. There can be no assurance that the Company will be successful in asserting the statutory exemption as a defense in the arbitration proceeding. As required by ERISA, in November 2016, the subsidiary began making monthly payments of a withdrawal liability to the Plan in the amount of approximately $0.1 million . If the Company prevails in disputing the withdrawal liability, all such payments will be refunded to the subsidiary. With respect to the acquisition from Goodman, $22.5 million of the purchase price was placed into escrow to cover indemnification claims and working capital adjustments. During fiscal 2017, $2.5 million of escrowed funds were released following resolution of closing working capital and $10.0 million of escrowed funds were released as a result of Goodman’s resolution of a sales tax liability with the State of Texas. In April 2018, $9.7 million of escrowed funds were released in connection with the resolution of certain indemnification claims, of which Dycom received $1.6 million. There was no impact on the Company’s results of operations related to the escrow release. As of April 28, 2018 , approximately $0.3 million remains in escrow pending resolution of certain post-closing indemnification claims. From time to time, the Company is party to various claims and legal proceedings arising in the ordinary course of our business. While the resolution of these matters cannot be predicted with certainty, it is the opinion of management, based on information available at this time, that the outcome of any such claims or proceedings will not have a material effect on our financial statements. For claims within its insurance program, the Company retains the risk of loss, up to certain limits, for matters related to automobile liability, general liability (including damages associated with underground facility locating services), workers’ compensation, and employee group health. The Company has established reserves that it believes to be adequate based on current evaluations and experience with these types of claims. For these claims, the effect on the Company’s financial statements is generally limited to the amount needed to satisfy insurance deductibles or retentions. Commitments Performance Bonds and Guarantees. The Company has obligations under performance and other surety contract bonds related to certain of its customer contracts. Performance bonds generally provide a customer with the right to obtain payment and/or performance from the issuer of the bond if the Company fails to perform its contractual obligations. As of April 28, 2018 and January 27, 2018 , the Company had $110.2 million and $118.1 million , respectively, of outstanding performance and other surety contract bonds. The Company periodically guarantees certain obligations of its subsidiaries, including obligations in connection with obtaining state contractor licenses and leasing real property and equipment. Letters of Credit. The Company has standby letters of credit issued under its Credit Agreement as part of its insurance program. These standby letters of credit collateralize obligations to the Company’s insurance carriers in connection with the settlement of potential claims. As of both April 28, 2018 and January 27, 2018 , the Company had $48.6 million of outstanding standby letters of credit issued under the Credit Agreement. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 28, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Dycom Industries, Inc. (“Dycom” or the “Company”) is a leading provider of specialty contracting services throughout the United States and in Canada. The Company provides program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries, all of which are wholly-owned, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the Company’s audited financial statements included in the Company’s Transition Report on Form 10-K for the six months ended January 27, 2018 , filed with the SEC on March 2, 2018 . In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included. This includes all normal and recurring adjustments and elimination of intercompany accounts and transactions. Operating results for the interim period are not necessarily indicative of the results expected for any subsequent interim or annual period. |
Accounting Period | Accounting Period. In September 2017, the Company’s Board of Directors approved a change in the Company’s fiscal year end from the last Saturday in July to the last Saturday in January. The change in fiscal year end better aligns the Company’s fiscal year with the planning cycles of its customers. For quarterly comparisons, there were no changes to the months in each fiscal quarter. Beginning with fiscal 2019, each fiscal year ends on the last Saturday in January and consists of either 52 or 53 weeks of operations (with the additional week of operations occurring in the fourth fiscal quarter). The Company refers to the period beginning January 28, 2018 and ending January 26, 2019 as “fiscal 2019”, the period beginning July 30, 2017 and ending January 27, 2018 as the “2018 transition period”, and the period beginning July 31, 2016 and ending July 29, 2017 as “fiscal 2017”. |
Segment Reporting Disclosure | Segment Information. The Company operates in one reportable segment. Its services are provided by its operating segments on a decentralized basis. Each operating segment consists of a subsidiary (or in certain instances, the combination of two or more subsidiaries). Management of the operating segments report to the Company’s Chief Operating Officer who reports to the Chief Executive Officer, the chief operating decision maker. All of the Company’s operating segments have been aggregated into one reportable segment based on their similar economic characteristics, nature of services and production processes, type of customers, and service distribution methods. |
Significant Accounting Polici28
Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Apr. 28, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Dycom Industries, Inc. (“Dycom” or the “Company”) is a leading provider of specialty contracting services throughout the United States and in Canada. The Company provides program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries, all of which are wholly-owned, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the Company’s audited financial statements included in the Company’s Transition Report on Form 10-K for the six months ended January 27, 2018 , filed with the SEC on March 2, 2018 . In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included. This includes all normal and recurring adjustments and elimination of intercompany accounts and transactions. Operating results for the interim period are not necessarily indicative of the results expected for any subsequent interim or annual period. |
Accounting Period | Accounting Period. In September 2017, the Company’s Board of Directors approved a change in the Company’s fiscal year end from the last Saturday in July to the last Saturday in January. The change in fiscal year end better aligns the Company’s fiscal year with the planning cycles of its customers. For quarterly comparisons, there were no changes to the months in each fiscal quarter. Beginning with fiscal 2019, each fiscal year ends on the last Saturday in January and consists of either 52 or 53 weeks of operations (with the additional week of operations occurring in the fourth fiscal quarter). The Company refers to the period beginning January 28, 2018 and ending January 26, 2019 as “fiscal 2019”, the period beginning July 30, 2017 and ending January 27, 2018 as the “2018 transition period”, and the period beginning July 31, 2016 and ending July 29, 2017 as “fiscal 2017”. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. These estimates are based on the Company’s historical experience and management’s understanding of current facts and circumstances. At the time they are made, the Company believes that such estimates are fair when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole. However, actual results could differ materially from those estimates. |
Revenue Recognition | Contract assets. Contract assets include unbilled amounts typically resulting from arrangements whereby the right to payment is conditioned on completing additional tasks or services for a performance obligation. Contract liabilities. Contract liabilities consist of amounts invoiced to customers in excess of revenue recognized. The Company’s contract asset and liability is reported in a net position on a contract by contract basis at the end of each reporting period. As of April 28, 2018 and January 27, 2018 , the contract liabilities balance is classified as current based on the timing of when the Company expects to complete the tasks for the recognition of revenue. Revenue Recognition. The Company performs a substantial majority of its services under master service agreements and other contracts that contain customer-specified service requirements. These agreements include discrete pricing for individual tasks including, for example, the placement of underground or aerial fiber, directional boring, and fiber splicing, each based on a specific unit of measure. Contractual agreements exist when each party involved approves and commits to the agreement, the rights of the parties and payment terms are identified, the agreement has commercial substance, and collectability of consideration is probable. The Company’s services are performed for the sole benefit of its customers, whereby the assets being created or maintained are controlled by the customer and the services the Company performs do not have alternative benefits for the Company. Revenue is recognized over time as services are performed and customers simultaneously receive and consume the benefits provided by the Company. Output measures such as units delivered are utilized to assess progress against specific contractual performance obligations for the majority of the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the output method using units delivered best represents the measure of progress against the performance obligations incorporated within the contractual agreements. This method captures the amount of units delivered pursuant to contracts and is used only when the Company’s performance does not produce significant amounts of work in process prior to complete satisfaction of the performance obligation. For a portion of contract items, representing approximately 5.0% of contract revenues during the three months ended April 28, 2018 , units to be completed consist of multiple tasks. For these items, the transaction price is allocated to each task based on relative standalone measurements, such as similar selling prices for similar tasks, or in the alternative, the cost to perform tasks. Revenue is recognized for these items as the tasks are completed as a measurement of progress in the satisfaction of the corresponding performance obligation. For certain contracts, representing approximately 2.5% of contract revenues, the Company uses the cost-to-cost measure of progress. These contracts are generally lump sum jobs that are completed over a three to four month period. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs. Contract costs include direct labor, direct materials, and subcontractor costs, as well as an allocation of indirect costs. Contract revenues are recorded as costs are incurred. For contracts using the cost-to-cost measure of progress, the Company accrues the entire amount of a contract loss, if any, at the time the loss is determined to be probable and can be reasonably estimated. |
Allowance for Doubtful Accounts | Accounts receivable, net. The Company grants credit to its customers, generally without collateral, under normal payment terms (typically 30 to 90 days after invoicing). Generally, invoicing occurs within 45 days after the related services are performed. Accounts receivable represents an unconditional right to consideration arising from the Company’s performance under contracts with customers. Accounts receivable include billed accounts receivable, unbilled accounts receivable, and retainage. The carrying value of such receivables, net of the allowance for doubtful accounts, represents their estimated realizable value. Unbilled accounts receivable represent amounts the Company has an unconditional right to receive payment for although invoicing is subject to the completion of certain process or other requirements. Such requirements may include the passage of time, completion of other items within a statement of work, or other billing requirements within contract terms. Certain of the Company’s contracts contain retainage provisions where a portion of the revenue earned is withheld from payment as a form of security until contractual provisions are met. The collectability of retainage is included in the Company’s overall assessment of the collectability of accounts receivable amounts due. The Company expects to collect the outstanding balance of accounts receivable, net (including trade accounts receivable, unbilled accounts receivable, and retainage) within the next twelve months. The Company estimates its allowance for doubtful accounts for specific accounts receivable balances based on historical collection trends, the age of outstanding receivables, and the credit worthiness of the Company’s customers. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The Company’s financial instruments primarily consist of cash and equivalents, restricted cash, accounts receivable, income taxes receivable and payable, accounts payable, certain accrued expenses, and long-term debt. The carrying amounts of these items approximate fair value due to their short maturity, except for the fair value of Company’s long-term debt, which is based on observable market-based inputs (Level 2). See Note 13, Debt , for further information regarding the fair value of such financial instruments. The Company’s cash and equivalents are based on quoted market prices in active markets for identical assets (Level 1) as of April 28, 2018 and January 27, 2018 . During the three months ended April 28, 2018 and April 29, 2017 , the Company had no material nonrecurring fair value measurements of assets or liabilities subsequent to their initial recognition. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards Revenue Recognition . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU No. 2014-09 and related updates are referred to herein as “ASU 2014-09”. ASU 2014-09 replaces numerous requirements in GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method and the modified retrospective method. Under the full retrospective method, the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. Effective January 28, 2018, the Company adopted the requirements of ASU 2014-09 using the modified retrospective method. As a practical expedient, the Company adopted the new standard only for existing contracts as of January 28, 2018, the date of adoption. Any contracts that had expired prior to January 28, 2018 were not evaluated against the new standard. The Company believes its application of the new standard to only those contracts existing as of January 28, 2018 did not have a material impact on adoption. As of January 28, 2018, the date of adoption, the Company reclassified $311.7 million of unbilled receivables from contract assets (historically referred to as Costs and Estimated Earnings in Excess of Billings) to accounts receivable, net in accordance with the guidance under ASU 2014-09. As of April 28, 2018, the disclosure of the impact of adoption on the Company’s condensed consolidated balance sheet is as follows (dollars in thousands): April 28, 2018 As reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Accounts receivable, net $ 644,980 $ 326,973 $ 318,007 Contract assets $ 101,163 $ 419,170 $ (318,007 ) The adoption of ASU 2014-09 resulted in balance sheet classification changes for amounts that have not been invoiced to customers but for which the Company has satisfied the performance obligation and has an unconditional right to receive payment. Prior to the adoption of ASU 2014-09, amounts not yet invoiced to customers were included in the Company’s contract assets regardless of rights to payment. These amounts represent unbilled accounts receivable for which the Company has an unconditional right to receive payment although invoicing is subject to the completion of certain process or other requirements. Such requirements may include the passage of time, completion of other items within a statement of work, or other billing requirements within contract terms. The standard did not have an impact to opening retained earnings or the Company’s condensed consolidated statement of operations as there was no change in timing or amount of revenue recognized under contracts with customers, as compared to the Company’s historical revenue recognition practices. Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 is intended to reduce the diversity in practice regarding the classification and presentation of changes in restricted cash within the statement of cash flows. The amendments in this update require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 effective January 28, 2018, the first day of fiscal 2019, and applied this change of presentation retrospectively to the Company’s condensed consolidated statement of cash flows for the three months ended April 29, 2017 . As a result of the retrospective adoption, the beginning-of-period and end-of-period total amounts have been restated to include restricted cash of $5.4 million , $5.4 million , and $6.2 million as of January 28, 2017, April 29, 2017, and January 27, 2018, respectively. Restricted cash primarily relates to funding provisions of the Company’s insurance program. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) . In an effort to reduce diversity in practice regarding the classification of certain transactions within the statement of cash flows, ASU 2016-15 addresses eight specific cash flow issues including, among other things, the classification of debt prepayment or debt extinguishment costs. Historically, the Company has classified certain cash flows related to debt prepayment or debt extinguishment costs as operating activities. Upon adoption of ASU 2016-15, the Company is required to classify such cash flows as financing activities. The adoption of ASU 2016-15 as it relates to any of the other seven cash flow issues specified does not have a material effect on the Company’s consolidated statement of cash flows. The Company adopted ASU 2016-15 effective January 28, 2018, the first day of fiscal 2019, on a retrospective basis as required. There was no impact to the Company’s condensed consolidated statement of cash flows for the three months ended April 28, 2018 or April 29, 2017 as a result of the adoption. The Company also adopted the following Accounting Standards Updates during the three months ended April 28, 2018 , neither of which had a material effect on the Company’s consolidated financial statements: ASU Adoption Date 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory January 28, 2018 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 28, 2018 Accounting Standards Not Yet Adopted Leases . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 substantially retains the classification for leasing transactions as finance or operating leases. The new guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms greater than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For finance leases the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases the lessee would recognize total lease expense on a straight-line basis. As a result of the adoption of ASU 2016-02, it is expected that the Company's operating leases with terms greater than twelve months will be recognized as lease assets and lease liabilities on its consolidated balance sheet. ASU 2016-02 is not expected to have a material effect on the amount of expense recognized in connection with the Company’s current lease contracts as compared to current practice. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach and will be effective for the Company for the fiscal year ended January 25, 2020 and interim reporting periods within that year. The Company continues to evaluate the impact of adoption. |
Accounting Standards (Tables)
Accounting Standards (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Accounting Standards [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As of January 28, 2018, the date of adoption, the Company reclassified $311.7 million of unbilled receivables from contract assets (historically referred to as Costs and Estimated Earnings in Excess of Billings) to accounts receivable, net in accordance with the guidance under ASU 2014-09. As of April 28, 2018, the disclosure of the impact of adoption on the Company’s condensed consolidated balance sheet is as follows (dollars in thousands): April 28, 2018 As reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Accounts receivable, net $ 644,980 $ 326,973 $ 318,007 Contract assets $ 101,163 $ 419,170 $ (318,007 ) |
Computation of Earnings Per C30
Computation of Earnings Per Common Share (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts): For the Three Months Ended April 28, 2018 April 29, 2017 Net income available to common stockholders (numerator) $ 17,231 $ 38,796 Weighted-average number of common shares (denominator) 31,190,366 31,357,124 Basic earnings per common share $ 0.55 $ 1.24 Weighted-average number of common shares 31,190,366 31,357,124 Potential shares of common stock arising from stock options, and unvested restricted share units 602,549 552,802 Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021 (1) 614,999 — Total shares-diluted (denominator) 32,407,914 31,909,926 Diluted earnings per common share $ 0.53 $ 1.22 Anti-dilutive weighted shares excluded from the calculation of earnings per common share: Stock-based awards 80,847 96,020 0.75% convertible senior notes due 2021 4,390,735 5,005,734 Warrants 5,005,734 5,005,734 Total 9,477,316 10,107,488 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate consideration paid for businesses acquired in fiscal 2019 and fiscal 2017 (dollars in millions): 2019 2017 Assets Accounts receivable $ 6.0 $ 8.9 Contract assets — 2.4 Inventories and other current assets 0.2 0.2 Property and equipment 0.5 5.6 Goodwill 4.1 10.1 Intangible assets - customer relationships 12.3 9.8 Intangible assets - trade names and other — 0.7 Total assets 23.1 37.7 Liabilities Accounts payable 2.2 3.2 Accrued and other current liabilities — 3.4 Deferred tax liabilities, net non-current — 5.0 Total liabilities 2.2 11.6 Net Assets Acquired $ 20.9 $ 26.1 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Trade accounts receivable $ 309,724 $ 300,271 Unbilled accounts receivable 318,007 — Retainage 18,225 19,411 Total 645,956 319,682 Less: allowance for doubtful accounts (976 ) (998 ) Accounts receivable, net $ 644,980 $ 318,684 |
Contract with Customer, Asset and Liability | Contract Assets and Contract Liabilities Net contract assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Contract assets $ 101,163 $ 369,472 Contract liabilities 5,730 6,480 Contract assets, net $ 95,433 $ 362,992 |
Accounts Receivable Risk | Customers whose combined amounts of trade accounts receivable and contract assets, net exceeded 10% of total combined accounts receivable and contract assets, net as of April 28, 2018 or January 27, 2018 were as follows (dollars in millions): April 28, 2018 January 27, 2018 Amount % of Total Amount % of Total Comcast Corporation $ 164.2 22.2% $ 166.5 24.5% Verizon Communications Inc. $ 156.5 21.1% $ 98.2 14.4% CenturyLink, Inc. $ 120.3 16.3% $ 126.0 18.5% AT&T Inc. $ 102.8 13.9% $ 79.2 11.6% Customers whose contract revenues exceeded 10% of total contract revenues during the three months ended April 28, 2018 or April 29, 2017 , as well as total contract revenues from all other customers combined, were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total AT&T Inc. $ 177.0 24.2% $ 213.1 27.1% Comcast Corporation 159.2 21.8 152.9 19.4 Verizon Communications Inc. 122.1 16.7 66.8 8.5 CenturyLink, Inc. (1) 89.7 12.3 146.2 18.6 Total other customers combined 183.4 25.0 207.3 26.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% Total contract revenues by customer type during the three months ended April 28, 2018 and April 29, 2017 were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total Telecommunications $ 667.2 91.2% $ 725.3 92.2% Underground facility locating 45.1 6.2 42.1 5.4 Electrical and gas utilities and other 19.1 2.6 18.9 2.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% |
Other Current Assets and Othe33
Other Current Assets and Other Assets (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Prepaid expenses $ 18,461 $ 13,167 Insurance recoveries/receivables for accrued insurance claims 911 13,701 Receivables on equipment sales 1,344 31 Deposits and other current assets, including restricted cash 11,449 12,811 Total other current assets $ 32,165 $ 39,710 |
Schedule of Non current Assets | Other assets (long-term) consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Deferred financing costs $ 3,496 $ 3,873 Restricted cash 5,253 5,253 Insurance recoveries/receivables for accrued insurance claims 5,576 6,722 Other non-current deposits and assets 12,430 12,342 Total other assets $ 26,755 $ 28,190 |
Cash and Equivalents and Rest34
Cash and Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | Amounts of cash and equivalents and restricted cash reported in the condensed consolidated statement of cash flows consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Cash and equivalents $ 57,946 $ 84,029 Restricted cash included in: Other current assets 900 900 Other assets (long-term) 5,253 5,253 Total cash and equivalents and restricted cash $ 64,099 $ 90,182 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (dollars in thousands): Estimated Useful Lives (Years) April 28, 2018 January 27, 2018 Land — $ 3,470 $ 3,470 Buildings 10-35 12,437 12,315 Leasehold improvements 1-10 14,696 14,202 Vehicles 1-5 540,862 536,379 Computer hardware and software 1-7 123,306 117,058 Office furniture and equipment 1-10 12,126 11,686 Equipment and machinery 1-10 277,450 273,712 Total 984,347 968,822 Less: accumulated depreciation (568,089 ) (554,054 ) Property and equipment, net $ 416,258 $ 414,768 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The Company’s goodwill balance was $325.8 million and $321.7 million as of April 28, 2018 and January 27, 2018 , respectively. Changes in the carrying amount of goodwill were as follows (dollars in thousands): Goodwill Accumulated Impairment Losses Total Balance as of January 27, 2018 $ 517,510 $ (195,767 ) $ 321,743 Goodwill from fiscal 2019 acquisition 4,097 — 4,097 Balance as of April 28, 2018 $ 521,607 $ (195,767 ) $ 325,840 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Weighted Average Remaining Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships 11.7 $ 312,017 $ 141,096 $ 170,921 $ 299,717 $ 135,544 $ 164,173 Trade names 8.3 10,350 7,992 2,358 10,350 7,872 2,478 UtiliQuest trade name — 4,700 — 4,700 4,700 — 4,700 Non-compete agreements 2.2 450 354 96 450 332 118 $ 327,517 $ 149,442 $ 178,075 $ 315,217 $ 143,748 $ 171,469 |
Accrued Insurance Claims (Table
Accrued Insurance Claims (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Accrued Insurance Claims [Abstract] | |
Accrued Insurance Disclosure | Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands): April 28, 2018 January 27, 2018 Accrued insurance claims - current $ 40,182 $ 53,890 Accrued insurance claims - non-current 59,865 59,385 Total accrued insurance claims $ 100,047 $ 113,275 Insurance recoveries/receivables: Current (included in Other current assets) $ 911 $ 13,701 Non-current (included in Other assets) 5,576 6,722 Total insurance recoveries/receivables $ 6,487 $ 20,423 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Accrued payroll and related taxes $ 25,522 $ 23,010 Accrued employee benefit and incentive plan costs 10,010 16,097 Accrued construction costs 34,769 24,582 Other current liabilities 16,670 15,968 Total other accrued liabilities $ 86,971 $ 79,657 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Indebtedness | The Company’s outstanding indebtedness consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Credit Agreement - Revolving facility (matures April 2020) $ — $ — Credit Agreement - Term loan facilities (mature April 2020) 353,250 358,063 0.75% convertible senior notes, net (mature September 2021) 407,361 402,249 760,611 760,312 Less: current portion (28,875 ) (26,469 ) Long-term debt $ 731,736 $ 733,843 |
Schedule Interest Rates for the Credit Agreement | The weighted average interest rates and fees for balances under the Credit Agreement as of April 28, 2018 and January 27, 2018 were as follows: Weighted Average Rate End of Period April 28, 2018 January 27, 2018 Borrowings - Term loan facilities 3.63% 3.30% Borrowings - Revolving facility (1) —% —% Standby Letters of Credit 1.75% 1.75% Unused Revolver Commitment 0.35% 0.35% (1) There were no outstanding borrowings under the revolving facility as of April 28, 2018 Borrowings under the Credit Agreement bear interest at the rates described below based upon the Company’s consolidated leverage ratio, which is the ratio of the Company’s consolidated total funded debt to its trailing twelve month consolidated EBITDA, as defined by the Credit Agreement. In addition, the Company incurs certain fees for unused balances and letters of credit at the rates described below, also based upon the Company’s consolidated leverage ratio: Borrowings - Eurodollar Rate Loans 1.25% - 2.00% plus LIBOR Borrowings - Base Rate Loans 0.25% - 1.00% plus administrative agent’s base rate (1) Unused Revolver Commitment 0.25% - 0.40% Standby Letters of Credit 1.25% - 2.00% Commercial Letters of Credit 0.625% - 1.00% (1) The agent’s base rate is described in the Credit Agreement as the highest of (i) the administrative agent’s prime rate, (ii) the Federal Funds Rate plus 0.50% , and (iii) the Eurodollar rate plus 1.00% , plus an applicable margin. |
Convertible Debt | The following table summarizes the fair value of the Notes, net of the debt discount and debt issuance costs. The fair value of the Notes is based on the closing trading price per $100 of the Notes as of the last day of trading for the respective periods (Level 2), which was $126.61 and $136.01 as of April 28, 2018 and January 27, 2018 , respectively (dollars in thousands): April 28, 2018 January 27, 2018 Fair value of principal amount of Notes $ 614,059 $ 659,649 Less: Debt discount and debt issuance costs (77,639 ) (82,751 ) Fair value of Notes $ 536,420 $ 576,898 The liability component of the Notes consisted of the following (dollars in thousands): April 28, 2018 January 27, 2018 Liability component Principal amount of 0.75% convertible senior notes due September 2021 $ 485,000 $ 485,000 Less: Debt discount (70,227 ) (74,899 ) Less: Debt issuance costs (7,412 ) (7,852 ) Net carrying amount of Notes $ 407,361 $ 402,249 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | The components of other income, net, were as follows (dollars in thousands): For the Three Months Ended April 28, 2018 April 29, 2017 Gain on sale of fixed assets $ 8,415 $ 5,048 Miscellaneous (expense), net (704 ) (255 ) Total other income, net $ 7,711 $ 4,793 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense and Related Tax Benefit Recognized | Stock-based compensation expense and the related tax benefit recognized and realized during the three months ended April 28, 2018 and April 29, 2017 were as follows (dollars in thousands): For the Three Months Ended April 28, 2018 April 29, 2017 Stock-based compensation $ 4,863 $ 4,915 Income tax effect of stock-based compensation $ 1,069 $ 1,943 |
Schedule of Share-based Compensation, Stock Options Award Activity | The following table summarizes stock option award activity during the three months ended April 28, 2018 : Stock Options Shares Weighted Average Exercise Price Outstanding as of January 27, 2018 636,730 $ 27.93 Granted 28,796 $ 106.19 Options exercised (5,084 ) $ 13.15 Canceled — $ — Outstanding as of April 28, 2018 660,442 $ 31.46 Exercisable options as of April 28, 2018 544,423 $ 21.71 |
Schedule of Share-based Compensation, RSU and Performance RSU Activity | The following table summarizes RSU and Performance RSU award activity during the three months ended April 28, 2018 : Restricted Stock RSUs Performance RSUs Share Units Weighted Average Grant Price Share Units Weighted Average Grant Price Outstanding as of January 27, 2018 133,896 $ 71.81 390,327 $ 80.52 Granted 39,612 $ 106.36 218,628 $ 106.19 Share units vested (3,099 ) $ 76.98 — $ — Forfeited or canceled (3,299 ) $ 59.10 (10,437 ) $ 81.55 Outstanding as of April 28, 2018 167,110 $ 80.16 598,518 $ 89.88 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 3 Months Ended |
Apr. 28, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule that Represents A Significant Portion of the Company’s Customer Base and Each Over 10% of Total Revenue | Customers whose combined amounts of trade accounts receivable and contract assets, net exceeded 10% of total combined accounts receivable and contract assets, net as of April 28, 2018 or January 27, 2018 were as follows (dollars in millions): April 28, 2018 January 27, 2018 Amount % of Total Amount % of Total Comcast Corporation $ 164.2 22.2% $ 166.5 24.5% Verizon Communications Inc. $ 156.5 21.1% $ 98.2 14.4% CenturyLink, Inc. $ 120.3 16.3% $ 126.0 18.5% AT&T Inc. $ 102.8 13.9% $ 79.2 11.6% Customers whose contract revenues exceeded 10% of total contract revenues during the three months ended April 28, 2018 or April 29, 2017 , as well as total contract revenues from all other customers combined, were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total AT&T Inc. $ 177.0 24.2% $ 213.1 27.1% Comcast Corporation 159.2 21.8 152.9 19.4 Verizon Communications Inc. 122.1 16.7 66.8 8.5 CenturyLink, Inc. (1) 89.7 12.3 146.2 18.6 Total other customers combined 183.4 25.0 207.3 26.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% Total contract revenues by customer type during the three months ended April 28, 2018 and April 29, 2017 were as follows (dollars in millions): For the Three Months Ended April 28, 2018 April 29, 2017 Amount % of Total Amount % of Total Telecommunications $ 667.2 91.2% $ 725.3 92.2% Underground facility locating 45.1 6.2 42.1 5.4 Electrical and gas utilities and other 19.1 2.6 18.9 2.4 Total contract revenues $ 731.4 100.0% $ 786.3 100.0% |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Apr. 28, 2018segment | |
Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Significant Accounting Polici44
Significant Accounting Policies and Estimates - Revenue Recognition (Details) | 3 Months Ended |
Apr. 28, 2018 | |
Revenue from External Customer [Line Items] | |
Composite Revenue, percentage | 5.00% |
Maximum | Revenue Recognized Using Cost To Cost Percentage of Completion Method | |
Revenue from External Customer [Line Items] | |
Percentage of Revenue | 2.50% |
Accounting Standards (Details)
Accounting Standards (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | $ 644,980 | $ 318,684 |
Contract assets | 101,163 | 369,472 |
Balances Without Adoption of ASU 2014-09 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | 326,973 | |
Contract assets | 419,170 | |
ASU 2014-09 | Adjustments for ASU 2014-09 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | 318,007 | |
Contract assets | $ (318,007) | $ 311,700 |
Accounting Standards - Narrativ
Accounting Standards - Narratives (Details) - USD ($) $ in Millions | Jan. 27, 2018 | Apr. 29, 2017 | Jan. 28, 2017 |
Accounting Standards [Abstract] | |||
Restricted cash | $ 6.2 | $ 5.4 | $ 5.4 |
Computation of Earnings Per C47
Computation of Earnings Per Common Share - Basic and Diluted Earnings Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Basic earnings per unit | ||
Net income | $ 17,231 | $ 38,796 |
Weighted-average number of common shares (in shares) | 31,190,366 | 31,357,124 |
Basic earnings per common share (in dollars per share) | $ 0.55 | $ 1.24 |
Diluted earnings per unit | ||
Weighted-average number of common shares (in shares) | 31,190,366 | 31,357,124 |
Potential common stock arising from stock options, and unvested restricted share units (in shares) | 602,549 | 552,802 |
Potential shares of common stock issuable on exercise of convertible senior notes | 614,999 | 0 |
Total shares-diluted (in shares) | 32,407,914 | 31,909,926 |
Diluted earnings per common share (in dollars per share) | $ 0.53 | $ 1.22 |
Anti-dilutive weighted shares excluded from the calculation of earnings per share (in shares) | 9,477,316 | 10,107,488 |
Stock-based awards | ||
Diluted earnings per unit | ||
Anti-dilutive weighted shares excluded from the calculation of earnings per share (in shares) | 80,847 | 96,020 |
Convertible senior notes | ||
Diluted earnings per unit | ||
Anti-dilutive weighted shares excluded from the calculation of earnings per share (in shares) | 4,390,735 | 5,005,734 |
Warrants | ||
Diluted earnings per unit | ||
Anti-dilutive weighted shares excluded from the calculation of earnings per share (in shares) | 5,005,734 | 5,005,734 |
Computation of Earnings Per C48
Computation of Earnings Per Common Share - Narratives (Details) - $ / shares | Apr. 28, 2018 | Sep. 15, 2015 |
Shares used in computing earnings per common share: | ||
Weighted average stock price (usd per share) | $ 110.46 | |
Convertible Note Hedge | ||
Shares used in computing earnings per common share: | ||
Debt instrument, convertible, conversion price (per share) | $ 96.89 | $ 96.89 |
0.75% Convertible Senior Notes Due 2021 | ||
Shares used in computing earnings per common share: | ||
Debt, interest rate (in percent) | 0.75% | |
Debt instrument, convertible, conversion price (per share) | 96.89 | |
Class of warrant or right, exercise price of warrants or rights (per warrant) | $ 130.43 | $ 130.43 |
Acquisitions - Narratives (Deta
Acquisitions - Narratives (Details) - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Aero Communications, Inc. | ||
Business Acquisition [Line Items] | ||
Payment to acquire business, net of cash acquired | $ 20.9 | |
Texstar Enterprises, Inc. | ||
Business Acquisition [Line Items] | ||
Payment to acquire business, net of cash acquired | $ 26.1 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Apr. 28, 2018 | Jul. 29, 2017 |
Business Acquisition [Line Items] | ||
Accounts receivable | $ 6 | $ 8.9 |
Costs and estimated earnings in excess of billings | 0 | 2.4 |
Inventories and other current assets | 0.2 | 0.2 |
Property and equipment | 0.5 | 5.6 |
Goodwill | 4.1 | 10.1 |
Total assets | 23.1 | 37.7 |
Accounts payable | 2.2 | 3.2 |
Accrued and other current liabilities | 0 | 3.4 |
Deferred tax liabilities, net non-current | 0 | 5 |
Total liabilities | 2.2 | 11.6 |
Net Assets Acquired | 20.9 | 26.1 |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets | 12.3 | 9.8 |
Trade names | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 0 | $ 0.7 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 309,724 | $ 300,271 |
Unbilled accounts receivable | 318,007 | 0 |
Retainage | 18,225 | 19,411 |
Total | 645,956 | 319,682 |
Less: allowance for doubtful accounts | (976) | (998) |
Accounts receivable, net | $ 644,980 | $ 318,684 |
Accounts Receivable - Narrative
Accounts Receivable - Narratives (Details) $ in Millions | 3 Months Ended |
Apr. 28, 2018USD ($) | |
Receivables [Abstract] | |
Increase in trade receivables | $ 2.1 |
Increase in unbilled receivables | $ 3.9 |
Accounts Receivable Contract As
Accounts Receivable Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Receivables [Abstract] | ||
Contract assets | $ 101,163 | $ 369,472 |
Contract liabilities | 5,730 | 6,480 |
Contract assets, net | $ 95,433 | $ 362,992 |
Accounts Receivable Concentrati
Accounts Receivable Concentration Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | Jan. 27, 2018 | |
Concentration Risk | |||
Accounts Receivable, Net, Current | $ 644,980 | $ 318,684 | |
Concentration risk percentage | 100.00% | 100.00% | |
Customer Concentration Risk | Trade Accounts Receivable and Costs and Estimated Earnings | Comcast Corporation | |||
Concentration Risk | |||
Accounts Receivable, Net, Current | $ 164,200 | $ 166,500 | |
Concentration risk percentage | 22.20% | 24.50% | |
Customer Concentration Risk | Trade Accounts Receivable and Costs and Estimated Earnings | Verizon Communications Inc. | |||
Concentration Risk | |||
Accounts Receivable, Net, Current | $ 156,500 | $ 98,200 | |
Concentration risk percentage | 21.10% | 14.40% | |
Customer Concentration Risk | Trade Accounts Receivable and Costs and Estimated Earnings | CenturyLink, Inc. | |||
Concentration Risk | |||
Accounts Receivable, Net, Current | $ 120,300 | $ 126,000 | |
Concentration risk percentage | 16.30% | 18.50% | |
Customer Concentration Risk | Trade Accounts Receivable and Costs and Estimated Earnings | AT&T Inc. | |||
Concentration Risk | |||
Accounts Receivable, Net, Current | $ 102,800 | $ 79,200 | |
Concentration risk percentage | 13.90% | 11.60% |
Other Current Assets and Othe55
Other Current Assets and Other Assets - Current (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 18,461 | $ 13,167 |
Insurance recoveries/receivables for accrued insurance claims | 911 | 13,701 |
Receivables on equipment sales | 1,344 | 31 |
Deposits and other current assets, including restricted cash | 11,449 | 12,811 |
Total other current assets | $ 32,165 | $ 39,710 |
Other Current Assets and Othe56
Other Current Assets and Other Assets - Non-current (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred financing costs | $ 3,496 | $ 3,873 |
Restricted cash | 5,253 | 5,253 |
Insurance recoveries/receivables for accrued insurance claims | 5,576 | 6,722 |
Other non-current deposits and assets | 12,430 | 12,342 |
Total other assets | 26,755 | $ 28,190 |
Decrease in accrued insurance claims | $ 13,900 |
Cash and Equivalents and Rest57
Cash and Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 | Apr. 29, 2017 | Jan. 28, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and equivalents | $ 57,946 | $ 84,029 | ||
Restricted cash included in: | ||||
Other current assets | 900 | 900 | ||
Other assets (long-term) | 5,253 | 5,253 | ||
Total cash and equivalents and restricted cash | $ 64,099 | $ 90,182 | $ 24,765 | $ 34,899 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 984,347 | $ 968,822 |
Less: accumulated depreciation | (568,089) | (554,054) |
Property and equipment, net | 416,258 | 414,768 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,470 | 3,470 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 12,437 | 12,315 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 35 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 14,696 | 14,202 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 540,862 | 536,379 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 123,306 | 117,058 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 7 years | |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 12,126 | 11,686 |
Office furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Office furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Equipment and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 277,450 | $ 273,712 |
Equipment and machinery | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Equipment and machinery | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years |
Property and Equipment - Deprec
Property and Equipment - Depreciation Expense and Repairs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 37.7 | $ 31.2 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 28, 2018 | Apr. 29, 2017 | Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 325,840 | $ 321,743 | |
Amortization of intangible assets | $ 5,700 | $ 6,200 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill gross | $ 521,607 | $ 517,510 |
Accumulated impairment losses | (195,767) | $ (195,767) |
Beginning balance | 321,743 | |
Goodwill, Acquired During Period | 4,097 | |
Ending balance | $ 325,840 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 28, 2018 | Apr. 29, 2017 | Jan. 27, 2018 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 5,700 | $ 6,200 | |
Intangible Assets, Gross (Excluding Goodwill) | 327,517 | $ 315,217 | |
Accumulated Amortization | 149,442 | 143,748 | |
Intangible Assets, Net | 178,075 | 171,469 | |
UtiliQuest | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 4,700 | 4,700 | |
Accumulated Amortization | 0 | 0 | |
Intangible Assets, Net | $ 4,700 | 4,700 | |
Customer relationships | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Usesul life | 11 years 8 months 6 days | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 312,017 | 299,717 | |
Accumulated Amortization | 141,096 | 135,544 | |
Intangible Assets, Net | $ 170,921 | 164,173 | |
Trade names | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Usesul life | 8 years 3 months 24 days | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 10,350 | 10,350 | |
Accumulated Amortization | 7,992 | 7,872 | |
Intangible Assets, Net | $ 2,358 | 2,478 | |
Non-compete agreements | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Usesul life | 2 years 2 months 12 days | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 450 | 450 | |
Accumulated Amortization | 354 | 332 | |
Intangible Assets, Net | $ 96 | $ 118 |
Accrued Insurance Claims - Narr
Accrued Insurance Claims - Narratives (Details) | 3 Months Ended | |
Apr. 28, 2018USD ($)state | Apr. 29, 2017USD ($) | |
Accrued Insurance Claims [Line Items] | ||
Number of states with state-sponsored insurance fund | state | 2 | |
Aggregate stop loss coverage for automobile liability, general liability, and workers' compensation claims before adjustment | $ 78,900,000 | |
Insurance liability, annual retained risk loss | 400,000 | |
Decrease in accrued insurance claims | 13,900,000 | |
Losses Incurred but not Recognized from Insurance Claims | 54,500,000 | $ 53,300,000 |
Maximum | ||
Accrued Insurance Claims [Line Items] | ||
Retained risk of loss, general liability and workers' compensation, maximum automobile liability | $ 1,000,000 |
Accrued Insurance Claims (Detai
Accrued Insurance Claims (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Accrued Insurance Claims [Abstract] | ||
Accrued insurance claims - current | $ 40,182 | $ 53,890 |
Accrued insurance claims - non-current | 59,865 | 59,385 |
Total accrued insurance claims | 100,047 | 113,275 |
Insurance recoveries/receivables: | ||
Current (included in Other current assets) | 911 | 13,701 |
Non-current (included in Other assets) | 5,576 | 6,722 |
Insurance Settlements Receivable | $ 6,487 | $ 20,423 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related taxes | $ 25,522 | $ 23,010 |
Accrued employee benefit and incentive plan costs | 10,010 | 16,097 |
Accrued construction costs | 34,769 | 24,582 |
Other current liabilities | 16,670 | 15,968 |
Total other accrued liabilities | $ 86,971 | $ 79,657 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Apr. 28, 2018 | Jan. 27, 2018 |
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 760,611 | $ 760,312 |
Less: current portion | (28,875) | (26,469) |
Long-term debt | 731,736 | 733,843 |
0.75% Convertible Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 407,361 | 402,249 |
Debt, interest rate (in percent) | 0.75% | |
Credit Agreement - Revolving facility (matures April 2020) | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 0 | 0 |
Credit Agreement - Term Loan (matures April 2020) | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 353,250 | $ 358,063 |
Debt - Senior Credit Agreement
Debt - Senior Credit Agreement (Details) | Sep. 15, 2015USD ($) | Apr. 28, 2018USD ($) | Jan. 27, 2018USD ($) |
Line of Credit Facility [Line Items] | |||
Debt instrument, covenant compliance, consolidated leverage ratio, maximum | 3.50 | ||
Letters of credit outstanding amount | $ 48,600,000 | $ 48,600,000 | |
Debt instrument, covenant compliance, consolidated interest coverage ratio, maximum | 3 | ||
Additional borrowing availability | $ 401,400,000 | 401,400,000 | |
Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit current borrowing capacity | $ 200,000,000 | ||
Letters of credit outstanding amount | $ 48,600,000 | ||
Incremental Facility, Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | 150,000,000 | ||
Credit Agreement - Term Loan (matures April 2020) | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 385,000,000 | ||
Debt instrument, covenant compliance, consolidated leverage ratio, maximum | 2.25 | ||
Credit Agreement - Revolving facility (matures April 2020) | |||
Line of Credit Facility [Line Items] | |||
Line of credit current borrowing capacity | $ 450,000,000 |
Debt - Interest Rates of the Cr
Debt - Interest Rates of the Credit Agreement (Details) | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Credit Agreement - Revolving facility (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 0.35% | 0.35% |
Minimum | Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 1.25% | |
Minimum | Commercial Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 0.625% | |
Minimum | Credit Agreement - Revolving facility (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 0.25% | |
Maximum | Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 2.00% | |
Maximum | Commercial Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 1.00% | |
Maximum | Credit Agreement - Revolving facility (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee (in percent) | 0.40% | |
Eurodollar | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Eurodollar | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Eurodollar | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Administrative Agent Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Administrative Agent Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Federal Funds | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% |
Debt - Interest Rates at Period
Debt - Interest Rates at Period End (Details) - USD ($) | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Line of Credit Facility [Line Items] | ||
Debt Instrument Fair Value, Per Stated Incremental Portion on Principal | $ 126.61 | $ 136.01 |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 1.75% | 1.75% |
Line of credit | $ 0 | $ 0 |
Credit Agreement - Term Loan (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 3.63% | 3.30% |
Credit Agreement - Revolving facility (matures April 2020) | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, effective interest rate | 0.00% | 0.00% |
Unutilized commitment fee (in percent) | 0.35% | 0.35% |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes Due 2021 (Details) | Sep. 15, 2015USD ($)$ / shares | Apr. 28, 2018USD ($) | Apr. 29, 2017USD ($) | Oct. 24, 2015trading_day | Jan. 27, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Amortization of debt discount | $ 4,672,000 | $ 4,425,000 | |||
0.75% Convertible Senior Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate (in percent) | 0.75% | ||||
Debt instrument, face amount | $ 485,000,000 | $ 485,000,000 | $ 485,000,000 | ||
Debt instrument conversion ratio | 0.0103211 | ||||
Debt instrument, convertible, conversion price (per share) | $ / shares | $ 96.89 | ||||
Convertible debt, trading day threshold | trading_day | 20 | ||||
Convertible debt, consecutive trading day threshold | 30 days | ||||
Convertible debt, percentage of stock trigger price threshold | 130.00% | ||||
Debt instrument conversion trigger price | $ / shares | $ 125.96 | ||||
Convertible debt, measurement period for percentage of product sale price of common stock and applicable conversion threshold | 98.00% | ||||
Convertible debt, comparable yield | 5.50% | ||||
Amortization of debt discount | $ 4,700,000 | $ 4,400,000 | |||
Convertible Debt | 407,361,000 | 402,249,000 | |||
Unamortized discount | 70,227,000 | 74,899,000 | |||
Debt issuance cost | $ 7,412,000 | $ 7,852,000 |
Debt - Components of the Conver
Debt - Components of the Convertible Notes (Details) - USD ($) | 3 Months Ended | |||
Apr. 28, 2018 | Apr. 29, 2017 | Jan. 27, 2018 | Sep. 15, 2015 | |
Debt Instrument [Line Items] | ||||
Equity component of 0.75% senior convertible notes due 2021, net | $ 112,600,000 | |||
Amortization of debt discount | 4,672,000 | $ 4,425,000 | ||
Estimate of Fair Value Measurement | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 614,059,000 | $ 659,649,000 | ||
Less: Debt discount and debt issuance costs | (77,639,000) | (82,751,000) | ||
Net carrying amount of Notes | 536,420,000 | 576,898,000 | ||
0.75% Convertible Senior Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 485,000,000 | 485,000,000 | $ 485,000,000 | |
Debt Instrument, Unamortized Discount | (70,227,000) | (74,899,000) | ||
Debt issuance cost | (7,412,000) | (7,852,000) | ||
Net carrying amount of Notes | 407,361,000 | $ 402,249,000 | ||
Amortization of debt discount | $ 4,700,000 | $ 4,400,000 |
Debt - Convertible Note Hedge a
Debt - Convertible Note Hedge and Warrant Transactions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Apr. 28, 2018 | Sep. 15, 2015 |
Convertible Note Hedge | ||
Debt Instrument [Line Items] | ||
Derivative, Number of Instruments Held | 5,006 | |
Debt instrument, convertible, conversion price (per share) | $ 96.89 | $ 96.89 |
Deferred tax liability | $ 43.4 | |
Deferred tax asset, derivative instrument | $ 43.2 | |
0.75% Convertible Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, conversion price (per share) | $ 96.89 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (shares) | 5,006 | |
Class of warrant or right, exercise price of warrants or rights (per warrant) | $ 130.43 | $ 130.43 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 27.30% | 37.00% |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Other Income and Expenses [Abstract] | ||
Gain on sale of fixed assets | $ 8,415 | $ 5,048 |
Miscellaneous (expense), net | (704) | (255) |
Total other income, net | 7,711 | 4,793 |
Other financial services costs | $ 900 | $ 900 |
Capital Stock - Narratives (Det
Capital Stock - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Repurchase of common stock, shares | 400,000 | |
Average Price Per Share (in dollars per share) | $ 94.77 | |
Total Consideration (In thousands) | $ 0 | $ 37,909 |
Remaining authorized shares for repurchases (shares) | $ 95,200 |
Stock-Based Awards - Tax Benefi
Stock-Based Awards - Tax Benefit Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation | $ 4,863 | $ 4,915 |
Income tax effect of stock-based compensation | $ 1,069 | $ 1,943 |
Stock-Based Awards - Narratives
Stock-Based Awards - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 28, 2018 | Jan. 27, 2018 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to stock options | $ 3.8 | |
Total compensation cost not yet recognized, period for recognition | 2 years 7 months 6 days | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to stock options | $ 11.5 | |
Total compensation cost not yet recognized, period for recognition | 2 years 9 months 18 days | |
Granted (in shares) | 39,612 | |
Shares outstanding | 167,110 | 133,896 |
Performance RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to stock options | $ 31.9 | |
Total compensation cost not yet recognized, period for recognition | 2 years 6 months | |
Compensation expense | $ 13.4 | |
RSUs outstanding (in shares) | 158,841 | |
Granted (in shares) | 218,628 | |
Shares outstanding | 598,518 | 390,327 |
Target Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding | 431,118 | |
Supplemental Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 59,787 | |
Shares outstanding | 167,400 |
Stock-Based Awards - Stock Opti
Stock-Based Awards - Stock Options (Details) - Stock Options | 3 Months Ended |
Apr. 28, 2018$ / sharesshares | |
Stock Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 636,730 |
Granted (in shares) | shares | 28,796 |
Options exercised (in shares) | shares | (5,084) |
Canceled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 660,442 |
Exercisable options (in shares) | shares | 544,423 |
Stock Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning balance (in dollars per shares) | $ / shares | $ 27.93 |
Options granted (in dollars per shares) | $ / shares | 106.19 |
Options exercised (in dollars per shares) | $ / shares | 13.15 |
Canceled (in dollars per shares) | $ / shares | 0 |
Ending balance (in dollars per shares) | $ / shares | 31.46 |
Weighted average remaining contractual life, shares exercisable (In years) | $ / shares | $ 21.71 |
Stock-Based Awards - RSU's and
Stock-Based Awards - RSU's and Performance RSU's (Details) | 3 Months Ended |
Apr. 28, 2018$ / sharesshares | |
RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 133,896 |
Granted (in shares) | shares | 39,612 |
Share units vested (in shares) | shares | (3,099) |
Forfeited or canceled (in shares) | shares | (3,299) |
Ending balance (in shares) | shares | 167,110 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning balance (in dollars per shares) | $ / shares | $ 71.81 |
Granted (in dollars per shares) | $ / shares | 106.36 |
Share units vested (in dollars per shares) | $ / shares | 76.98 |
Forfeited or canceled (in dollars per shares) | $ / shares | 59.10 |
Ending balance (in dollars per shares) | $ / shares | $ 80.16 |
Performance RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 390,327 |
Granted (in shares) | shares | 218,628 |
Share units vested (in shares) | shares | 0 |
Forfeited or canceled (in shares) | shares | (10,437) |
Ending balance (in shares) | shares | 598,518 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning balance (in dollars per shares) | $ / shares | $ 80.52 |
Granted (in dollars per shares) | $ / shares | 106.19 |
Share units vested (in dollars per shares) | $ / shares | 0 |
Forfeited or canceled (in dollars per shares) | $ / shares | 81.55 |
Ending balance (in dollars per shares) | $ / shares | $ 89.88 |
Concentration of Credit Risk -
Concentration of Credit Risk - Narratives (Details) $ in Thousands | 3 Months Ended | ||
Apr. 28, 2018USD ($)customer | Apr. 29, 2017 | Jan. 27, 2018USD ($) | |
Concentration Risk | |||
Number of customers classified as highly concentrated | customer | 5 | ||
Concentration risk percentage | 100.00% | 100.00% | |
Accounts receivable, net | $ | $ 644,980 | $ 318,684 | |
Sales Revenue, Services, Net | Customer Concentration Risk | |||
Concentration Risk | |||
Concentration risk percentage | 10.00% | ||
Sales Revenue, Services, Net | Customer Concentration Risk | Five Unnamed Customers | |||
Concentration Risk | |||
Concentration risk percentage | 78.80% | 78.40% |
Concentration of Credit Risk 81
Concentration of Credit Risk - Revenue Concentration Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Concentration Risk | ||
Contract revenues | $ 731,375 | $ 786,338 |
Concentration risk percentage | 100.00% | 100.00% |
Sales Revenue, Services, Net | Customer Concentration Risk | ||
Concentration Risk | ||
Concentration risk percentage | 10.00% | |
Sales Revenue, Services, Net | Customer Concentration Risk | Five Unnamed Customers | ||
Concentration Risk | ||
Concentration risk percentage | 78.80% | 78.40% |
Sales Revenue, Services, Net | Customer Concentration Risk | AT&T Inc. | ||
Concentration Risk | ||
Contract revenues | $ 177,000 | $ 213,100 |
Concentration risk percentage | 24.20% | 27.10% |
Sales Revenue, Services, Net | Customer Concentration Risk | Comcast Corporation | ||
Concentration Risk | ||
Contract revenues | $ 159,200 | $ 152,900 |
Concentration risk percentage | 21.80% | 19.40% |
Sales Revenue, Services, Net | Customer Concentration Risk | Verizon Communications Inc. | ||
Concentration Risk | ||
Contract revenues | $ 122,100 | $ 66,800 |
Concentration risk percentage | 16.70% | 8.50% |
Sales Revenue, Services, Net | Customer Concentration Risk | CenturyLink, Inc.(1) | ||
Concentration Risk | ||
Contract revenues | $ 89,700 | $ 146,200 |
Concentration risk percentage | 12.30% | 18.60% |
Sales Revenue, Services, Net | Customer Concentration Risk | Total other customers combined | ||
Concentration Risk | ||
Contract revenues | $ 183,400 | $ 207,300 |
Concentration risk percentage | 25.00% | 26.40% |
Concentration of Credit Risk 82
Concentration of Credit Risk - Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 28, 2018 | Apr. 29, 2017 | |
Concentration Risk | ||
Contract revenues | $ 731,375 | $ 786,338 |
Concentration risk percentage | 100.00% | 100.00% |
Customer Concentration Risk | Sales Revenue, Services, Net | ||
Concentration Risk | ||
Concentration risk percentage | 10.00% | |
Customer Concentration Risk | Sales Revenue, Services, Net | Telecommunications | ||
Concentration Risk | ||
Contract revenues | $ 667,200 | $ 725,300 |
Concentration risk percentage | 91.20% | 92.20% |
Customer Concentration Risk | Sales Revenue, Services, Net | Underground facility locating | ||
Concentration Risk | ||
Contract revenues | $ 45,100 | $ 42,100 |
Concentration risk percentage | 6.20% | 5.40% |
Customer Concentration Risk | Sales Revenue, Services, Net | Electrical and gas utilities and other | ||
Concentration Risk | ||
Contract revenues | $ 19,100 | $ 18,900 |
Concentration risk percentage | 2.60% | 2.40% |
Commitment and Contingencies -
Commitment and Contingencies - Narratives (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2016 | Apr. 29, 2017 | Apr. 28, 2018 | Jan. 27, 2018 | |
Loss Contingencies [Line Items] | ||||
Loss contingency, estimated loss | $ 13 | |||
Loss contingency accrual, payments | $ 0.1 | |||
Letters of credit outstanding amount | $ 48.6 | 48.6 | ||
Standby Letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding amount | 48.6 | |||
Goodman Networks, Inc. Wireline Operations | ||||
Loss Contingencies [Line Items] | ||||
Escrow deposit | 0.3 | |||
Funds released from escrow | $ 2.5 | |||
Performance Guarantee and Surety Bond [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantor obligations, carrying value | 110.2 | 118.1 | ||
Indemnification Portion Subject to Certain Conditions, Not Less Than Twelve Months | Goodman Networks, Inc. Wireline Operations | ||||
Loss Contingencies [Line Items] | ||||
Escrow deposit | 22.5 | |||
Indemnification Portion Subject to Seller Satisfaction of Certain Liabilities | Goodman Networks, Inc. Wireline Operations | ||||
Loss Contingencies [Line Items] | ||||
Escrow deposit | $ 9.7 | $ 10 |