Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 23, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | EMCOR GROUP INC | |
Entity Central Index Key | 105,634 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,813,795 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 480,496 | $ 464,617 |
Accounts receivable, less allowance for doubtful accounts of $16,948 and $12,252, respectively | 1,537,819 | 1,495,431 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 135,602 | 130,697 |
Inventories | 43,653 | 37,426 |
Prepaid expenses and other | 34,402 | 40,944 |
Total current assets | 2,231,972 | 2,169,115 |
Investments, notes and other long-term receivables | 7,604 | 8,792 |
Property, plant and equipment, net | 126,563 | 127,951 |
Goodwill | 1,010,399 | 979,628 |
Identifiable intangible assets, net | 497,278 | 487,398 |
Other assets | 92,505 | 79,554 |
Total assets | 3,966,321 | 3,852,438 |
Current liabilities: | ||
Current maturities of long-term debt and capital lease obligations | 15,364 | 15,030 |
Accounts payable | 485,701 | 501,213 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 532,386 | 489,242 |
Accrued payroll and benefits | 309,237 | 310,514 |
Other accrued expenses and liabilities | 209,591 | 195,775 |
Total current liabilities | 1,552,279 | 1,511,774 |
Borrowings under revolving credit facility | 125,000 | 125,000 |
Long-term debt and capital lease obligations | 273,506 | 283,296 |
Other long-term obligations | 397,671 | 394,426 |
Total liabilities | 2,348,456 | 2,314,496 |
EMCOR Group, Inc. stockholders' equity: | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, zero issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 200,000,000 shares authorized, 59,850,983 and 60,606,825 shares issued, respectively | 599 | 606 |
Capital surplus | 4,343 | 52,219 |
Accumulated other comprehensive loss | (100,559) | (101,703) |
Retained earnings | 1,748,100 | 1,596,269 |
Treasury stock, at cost 1,044,474 and 659,841 shares, respectively | (35,471) | (10,302) |
Total EMCOR Group, Inc. stockholders' equity | 1,617,012 | 1,537,089 |
Noncontrolling interests | 853 | 853 |
Total equity | 1,617,865 | 1,537,942 |
Total liabilities and equity | $ 3,966,321 | $ 3,852,438 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in US dollars) | $ 16,948 | $ 12,252 |
Preferred stock, par value (in US dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in US dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 59,850,983 | 60,606,825 |
Treasury stock, shares | 1,044,474 | 659,841 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,886,691 | $ 1,923,174 | $ 5,674,360 | $ 5,601,560 |
Cost of sales | 1,591,621 | 1,655,130 | 4,838,449 | 4,835,667 |
Gross profit | 295,070 | 268,044 | 835,911 | 765,893 |
Selling, general and administrative expenses | 188,565 | 181,441 | 552,903 | 530,654 |
Restructuring expenses | 46 | 539 | 954 | 1,271 |
Operating income | 106,459 | 86,064 | 282,054 | 233,968 |
Interest expense | (3,324) | (3,479) | (9,464) | (8,973) |
Interest income | 277 | 161 | 607 | 518 |
Income from continuing operations before income taxes | 103,412 | 82,746 | 273,197 | 225,513 |
Income tax provision | 38,608 | 30,783 | 98,473 | 82,663 |
Income from continuing operations | 64,804 | 51,963 | 174,724 | 142,850 |
Loss from discontinued operation, net of income taxes | (207) | (406) | (729) | (1,584) |
Net income including noncontrolling interests | 64,597 | 51,557 | 173,995 | 141,266 |
Less: Net income attributable to noncontrolling interests | 0 | (26) | 0 | (7) |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 64,597 | $ 51,531 | $ 173,995 | $ 141,259 |
Basic earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.10 | $ 0.85 | $ 2.94 | $ 2.35 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | (0.01) | (0.03) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.10 | 0.84 | 2.93 | 2.32 |
Diluted earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.09 | 0.85 | 2.93 | 2.33 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | (0.01) | (0.03) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.09 | 0.84 | 2.92 | 2.30 |
Dividends declared per common share (in US dollars per share) | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income including noncontrolling interests | $ 64,597 | $ 51,557 | $ 173,995 | $ 141,266 | |
Other comprehensive income, net of tax: | |||||
Foreign currency translation adjustments | (39) | (255) | (730) | (1,056) | |
Post retirement plans, amortization of actuarial loss included in net income | [1] | 640 | 440 | 1,874 | 1,393 |
Other comprehensive income | 601 | 185 | 1,144 | 337 | |
Comprehensive income | 65,198 | 51,742 | 175,139 | 141,603 | |
Less: Comprehensive income attributable to noncontrolling interests | 0 | (26) | 0 | (7) | |
Comprehensive income attributable to EMCOR Group, Inc. | $ 65,198 | $ 51,716 | $ 175,139 | $ 141,596 | |
[1] | Net of tax of $0.2 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and net of tax of $0.5 million and $0.4 million for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Post retirement plans, amortization of actuarial loss included in net income, tax | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.4 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows - operating activities: | ||
Net income including noncontrolling interests | $ 173,995 | $ 141,266 |
Depreciation and amortization | 30,235 | 29,117 |
Amortization of identifiable intangible assets | 36,320 | 30,678 |
Provision for doubtful accounts | 6,027 | 3,962 |
Deferred income taxes | (5,991) | (830) |
Excess tax benefits from share-based compensation | (1,565) | (2,062) |
Equity income from unconsolidated entities | (1,132) | (719) |
Other non-cash items | 4,735 | 6,844 |
Distributions from unconsolidated entities | 2,308 | 863 |
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (6,648) | (80,195) |
Net cash provided by operating activities | 238,284 | 128,924 |
Cash flows - investing activities: | ||
Payments for acquisitions of businesses, net of cash acquired | (82,724) | (232,883) |
Proceeds from sale of property, plant and equipment | 2,125 | 1,850 |
Purchase of property, plant and equipment | (26,113) | (29,306) |
Net cash used in investing activities | (106,712) | (260,339) |
Cash flows - financing activities: | ||
Proceeds from revolving credit facility | 0 | 220,000 |
Repayments of revolving credit facility | 0 | (95,000) |
Borrowings from long-term debt | 0 | 400,000 |
Repayments of long-term debt and debt issuance costs | (11,401) | (317,987) |
Repayments of capital lease obligations | (1,079) | (1,144) |
Dividends paid to stockholders | (14,266) | (14,598) |
Repurchase of common stock | (90,944) | (34,805) |
Proceeds from exercise of stock options | 0 | 508 |
Payments to satisfy minimum tax withholding | (3,376) | (4,166) |
Issuance of common stock under employee stock purchase plan | 3,459 | 3,583 |
Payments for contingent consideration arrangements | (1,017) | 0 |
Distributions to noncontrolling interests | 0 | (2,050) |
Net cash (used in) provided by financing activities | (118,624) | 154,341 |
Effect of exchange rate changes on cash and cash equivalents | 2,931 | (5,199) |
Increase in cash and cash equivalents | 15,879 | 17,727 |
Cash and cash equivalents at beginning of year | 464,617 | 486,831 |
Cash and cash equivalents at end of period | 480,496 | 504,558 |
Cash paid for: | ||
Interest | 8,507 | 7,920 |
Income taxes | 95,584 | 98,176 |
Non-cash financing activities: | ||
Assets acquired under capital lease obligations | $ 1,133 | $ 1,738 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | [1] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | |
Balance at Dec. 31, 2015 | $ 1,480,056 | $ 617 | $ 130,369 | $ (76,953) | $ 1,432,980 | $ (10,302) | $ 3,345 | ||
Net income including noncontrolling interests | 141,266 | 141,259 | 7 | ||||||
Other comprehensive income | 337 | 337 | |||||||
Common stock issued under share-based compensation plans | [2] | 1,492 | 3 | 498 | 991 | ||||
Tax withholding for common stock issued under share-based compensation plans | (4,166) | (4,166) | |||||||
Common stock issued under employee stock purchase plan | 3,583 | 3,583 | |||||||
Common stock dividends | (14,598) | (14,741) | |||||||
Common stock dividends, accrued dividend shares | 143 | ||||||||
Repurchase of common stock | (29,028) | (6) | (29,022) | ||||||
Distributions to noncontrolling interests | (2,050) | (2,050) | |||||||
Share-based compensation expense | 7,000 | 7,000 | |||||||
Balance at Sep. 30, 2016 | 1,583,892 | 614 | 108,405 | (76,616) | 1,560,489 | (10,302) | 1,302 | ||
Balance at Dec. 31, 2016 | 1,537,942 | 606 | 52,219 | (101,703) | 1,596,269 | (10,302) | 853 | ||
Net income including noncontrolling interests | 173,995 | 173,995 | 0 | ||||||
Other comprehensive income | 1,144 | 1,144 | |||||||
Common stock issued under share-based compensation plans | 1 | 2 | (1) | ||||||
Tax withholding for common stock issued under share-based compensation plans | (3,376) | (3,376) | |||||||
Common stock issued under employee stock purchase plan | 3,459 | 1 | 3,458 | ||||||
Common stock dividends | (14,266) | (14,390) | |||||||
Common stock dividends, accrued dividend shares | 124 | ||||||||
Repurchase of common stock | (88,599) | (10) | (55,646) | (7,774) | (25,169) | ||||
Distributions to noncontrolling interests | 0 | 0 | |||||||
Share-based compensation expense | 7,565 | 7,565 | |||||||
Balance at Sep. 30, 2017 | $ 1,617,865 | $ 599 | $ 4,343 | $ (100,559) | $ 1,748,100 | $ (35,471) | $ 853 | ||
[1] | Represents cumulative foreign currency translation adjustments and post retirement liability adjustments. | ||||||||
[2] | Includes a $1.0 million adjustment to retained earnings to recognize net operating loss carryforwards attributable to excess tax benefits on stock compensation upon the adoption of Accounting Standards Update No. 2016-09. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements Of Equity (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
Cumulative effect on retained earnings, net of tax | $ 1 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. References to the “Company,” “EMCOR,” “we,” “us,” “our” and similar words refer to EMCOR Group, Inc. and its consolidated subsidiaries unless the context indicates otherwise. Readers of this report should refer to the consolidated financial statements and the notes thereto included in our latest Annual Report on Form 10-K filed with the Securities and Exchange Commission. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of those of a normal recurring nature) necessary to present fairly our financial position and the results of our operations. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2017, we adopted the accounting pronouncement issued by the Financial Accounting Standards Board (“FASB”) to simplify the presentation of deferred income taxes within the balance sheet. This pronouncement eliminates the requirement that deferred tax assets and liabilities are presented as current or noncurrent based on the nature of the underlying assets and liabilities. Instead, the pronouncement requires that all deferred tax assets and liabilities, including valuation allowances, be classified as noncurrent. We adopted this pronouncement on a retrospective basis. As a result of such adoption, approximately $41.7 million of net deferred tax assets, which were previously presented as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheet as of December 31, 2016, were reclassified as a reduction to “Other long-term obligations.” On January 1, 2017, we adopted the accounting pronouncement issued by the FASB to simplify the accounting for goodwill impairment. This guidance eliminates the requirement that an entity calculate the implied fair value of goodwill when measuring an impairment charge. Instead, an entity would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. We adopted this pronouncement on a prospective basis. The adoption of this guidance did not have a material impact on our financial position and/or results of operations. In February 2016, an accounting pronouncement was issued by the FASB to replace existing lease accounting guidance. This pronouncement is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet for most leases. Expenses associated with leases will continue to be recognized in a manner similar to current accounting guidance. This pronouncement is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption is required to be applied on a modified retrospective basis for each prior reporting period presented. We have not yet determined the effect that the adoption of this pronouncement may have on our financial position and/or results of operations. In May 2014, an accounting pronouncement was issued by the FASB to clarify existing guidance on revenue recognition. This guidance includes the required steps to achieve the core principle that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This pronouncement is effective for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. The guidance permits the use of one of two retrospective transition methods. We anticipate adopting the standard on January 1, 2018 using the modified retrospective method. We have substantially completed the process to evaluate the impact of the new pronouncement on our contracts, including identifying potential differences that will result from applying the requirements of the new guidance. As a result of the review of our various types of revenue arrangements, we do not anticipate that the adoption will have a material impact on our financial position and/or results of operations, particularly as it relates to revenues generated from long-term construction, service maintenance, and time and materials contracts. With respect to our shop services operations within our United States industrial services segment, which currently recognize revenue related to the engineering, manufacturing and repair of shell and tube heat exchangers when the product is shipped and all other revenue recognition criteria have been met, the adoption of the new standard will accelerate the timing of revenue recognition for certain contracts for which control is transferred to our customers over time instead of at a point in time. We have also drafted revised accounting policies and have evaluated the enhanced disclosure requirements on our business processes, controls and systems. |
Acquisitions Of Businesses
Acquisitions Of Businesses | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions Of Businesses | Acquisitions of Businesses On January 4, 2017 and March 1, 2017 , we acquired two companies for a total consideration of $84.8 million . One company provides fire protection and alarm services primarily in the Southern region of the United States, and its results have been included in our United States mechanical construction and facilities services segment. The other company provides mobile mechanical services within the Western region of the United States, and its results have been included in our United States building services segment. In connection with these acquisitions, we acquired working capital of $9.6 million and other net assets of $0.3 million and have preliminarily ascribed $28.7 million to goodwill and $46.2 million to identifiable intangible assets. We expect that all of the acquired goodwill will be deductible for tax purposes. The purchase price allocations for the businesses acquired in 2017 are still preliminary and subject to change during their respective measurement periods. The acquisition of these businesses was accounted for by the acquisition method, and the prices paid for them have been allocated to their respective assets and liabilities, based upon the estimated fair value of their assets and liabilities at the dates of their respective acquisitions by us. On April 15, 2016 , we completed the acquisition of Ardent Services, L.L.C. and Rabalais Constructors, LLC (collectively, “Ardent”). This acquisition has been included in our United States electrical construction and facilities services segment. Ardent provides electrical and instrumentation services to the energy infrastructure market in North America, and this acquisition further strengthens our position in electrical construction and services and broadens our capabilities across the industrial and energy sectors, especially in the Gulf Coast, Midwest and Western regions of the United States. Under the terms of the transaction, we acquired 100% of Ardent’s equity interests for total consideration of $201.4 million . In connection with the acquisition of Ardent, we acquired working capital of $34.1 million and other net assets of $3.9 million and have ascribed $121.9 million to goodwill and $41.5 million to identifiable intangible assets. We expect that $99.7 million of the acquired goodwill will be deductible for tax purposes. The weighted average amortization period for the identifiable intangible assets is approximately 13.5 years. We completed the final allocation of Ardent’s purchase price during the first quarter of 2017 with an insignificant impact. On April 1, 2016 , we acquired a company for an immaterial amount. This company provides mobile mechanical services within the Southeastern region of the United States, and its results have been included in our United States building services segment. The purchase price for this acquisition was finalized in 2016. |
Disposition of Assets
Disposition of Assets | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets | Disposition of Assets Due to a historical pattern of losses in the construction operations of our United Kingdom segment and our negative assessment of construction market conditions in the United Kingdom for the foreseeable future, we ceased construction operations in the United Kingdom during the third quarter of 2014. The results of the construction operations of our United Kingdom segment for all periods are presented in the Condensed Consolidated Financial Statements as discontinued operations. The results of discontinued operations are as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2017 2016 2017 2016 Revenues $ (81 ) $ 40 $ 863 $ 108 Loss from discontinued operation, net of income taxes $ (207 ) $ (406 ) $ (729 ) $ (1,584 ) Diluted loss per share from discontinued operation $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.03 ) The loss from discontinued operations for the three and nine months ended September 30, 2017 was primarily due to legal costs related to the settlement of final contract balances on certain construction projects completed in prior years, partially offset by revenues recognized in the second quarter of 2017 upon the settlement of a previously outstanding contract claim. Included in the Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands): September 30, December 31, Assets of discontinued operation: Current assets $ 360 $ 1,233 Liabilities of discontinued operation: Current liabilities $ 3,511 $ 4,036 At September 30, 2017 , the assets and liabilities of the discontinued operation consisted of accounts receivable, contract retentions and contract warranty obligations that are expected to be collected or fulfilled in the ordinary course of business. Additionally at September 30, 2017 , there remained less than $0.1 million of obligations related to employee severance, which are expected to be paid in 2018. The settlement of the remaining assets and liabilities may result in additional income and/or expenses. Such income and/or expenses are expected to be immaterial and will be reflected as discontinued operations as incurred. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Calculation of Basic and Diluted Earnings (Loss) per Common Share The following tables summarize our calculation of Basic and Diluted Earnings (Loss) per Common Share (“EPS”) for the three and nine months ended September 30, 2017 and 2016 (in thousands, except share and per share data): For the three months ended September 30, 2017 2016 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 64,804 $ 51,937 Loss from discontinued operation, net of income taxes (207 ) (406 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 64,597 $ 51,531 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 59,061,768 60,889,484 Effect of dilutive securities—Share-based awards 357,432 428,573 Shares used to compute diluted earnings (loss) per common share 59,419,200 61,318,057 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.10 $ 0.85 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.10 $ 0.84 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.09 $ 0.85 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.09 $ 0.84 For the nine months ended September 30, 2017 2016 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 174,724 $ 142,843 Loss from discontinued operation, net of income taxes (729 ) (1,584 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 173,995 $ 141,259 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 59,371,672 60,866,532 Effect of dilutive securities—Share-based awards 349,513 423,856 Shares used to compute diluted earnings (loss) per common share 59,721,185 61,290,388 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 2.94 $ 2.35 From discontinued operation (0.01 ) (0.03 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 2.93 $ 2.32 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 2.93 $ 2.33 From discontinued operation (0.01 ) (0.03 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 2.92 $ 2.30 There were 500 anti-dilutive share-based awards excluded from the computation of diluted EPS for the three and nine months ended September 30, 2017 . There were no anti-dilutive share-based awards for the three and nine months ended September 30, 2016 . |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Raw materials and construction materials $ 25,709 $ 21,997 Work in process 17,944 15,429 Inventories $ 43,653 $ 37,426 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Revolving credit facility $ 125,000 $ 125,000 Term loan 288,608 300,000 Unamortized debt issuance costs (4,548 ) (5,437 ) Capitalized lease obligations 4,788 3,732 Other 22 31 Total debt 413,870 423,326 Less: current maturities 15,364 15,030 Total long-term debt $ 398,506 $ 408,296 Credit Agreement Until August 3, 2016, we had a credit agreement dated as of November 25, 2013 (as amended, the “2013 Credit Agreement”), which provided for a revolving credit facility of $750.0 million (the “2013 Revolving Credit Facility”) and a term loan of $350.0 million (the “2013 Term Loan”). On August 3, 2016 , we amended and restated the 2013 Credit Agreement to provide for a $900.0 million revolving credit facility (the “2016 Revolving Credit Facility”) and a $400.0 million term loan (the “2016 Term Loan”) (collectively referred to as the “2016 Credit Agreement”) expiring August 3, 2021 . The proceeds of the 2016 Term Loan were used to repay amounts drawn under the 2013 Term Loan, as well as a portion of the outstanding balance under the 2013 Revolving Credit Facility. We may increase the 2016 Revolving Credit Facility to $1.3 billion if additional lenders are identified and/or existing lenders are willing to increase their current commitments. We may allocate up to $300.0 million of available capacity under the 2016 Revolving Credit Facility to letters of credit for our account or for the account of any of our subsidiaries. Obligations under the 2016 Credit Agreement are guaranteed by most of our direct and indirect subsidiaries and are secured by substantially all of our assets. The 2016 Credit Agreement contains various covenants providing for, among other things, maintenance of certain financial ratios and certain limitations on payment of dividends, common stock repurchases, investments, acquisitions, indebtedness and capital expenditures. We were in compliance with all such covenants as of September 30, 2017 and December 31, 2016 . A commitment fee is payable on the average daily unused amount of the 2016 Revolving Credit Facility, which ranges from 0.15% to 0.30% , based on certain financial tests. The fee was 0.15% of the unused amount as of September 30, 2017 . Borrowings under the 2016 Credit Agreement bear interest at (1) a base rate plus a margin of 0.00% to 0.75% , based on certain financial tests, or (2) United States dollar LIBOR ( 1.24% at September 30, 2017 ) plus 1.00% to 1.75% , based on certain financial tests. The base rate is determined by the greater of (a) the prime commercial lending rate announced by Bank of Montreal from time to time ( 4.25% at September 30, 2017 ), (b) the federal funds effective rate, plus ½ of 1.00% , (c) the daily one month LIBOR rate, plus 1.00% , or (d) 0.00% . The interest rate in effect at September 30, 2017 was 2.24% . Fees for letters of credit issued under the 2016 Revolving Credit Facility range from 1.00% to 1.75% of the respective face amounts of outstanding letters of credit and are computed based on certain financial tests. We capitalized an additional $3.0 million of debt issuance costs associated with the 2016 Credit Agreement. Debt issuance costs are amortized over the life of the agreement and are included as part of interest expense. The 2016 Term Loan required us to make principal payments of $5.0 million on the last day of March, June, September and December of each year, which commenced with the calendar quarter ended December 31, 2016. On December 30, 2016, we made a payment of $100.0 million , of which $5.0 million represented our required quarterly payment and $95.0 million represented a prepayment of outstanding principal. Such prepayment was applied against the remaining mandatory quarterly payments on a ratable basis. As a result, commencing with the calendar quarter ended March 31, 2017, our required quarterly payment has been reduced to $3.8 million . All unpaid principal and interest is due on August 3, 2021. As of September 30, 2017 and December 31, 2016 , the balance of the 2016 Term Loan was $288.6 million and $300.0 million , respectively. As of September 30, 2017 and December 31, 2016 , we had approximately $111.8 million and $91.9 million of letters of credit outstanding, respectively. There were $125.0 million in borrowings outstanding under the 2016 Revolving Credit Facility as of September 30, 2017 and December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, which gives the highest priority to quoted prices in active markets, is comprised of the following three levels: Level 1 – Unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs. Level 2 inputs would typically include quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the measurement and unobservable. The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2017 and December 31, 2016 (in thousands): Assets at Fair Value as of September 30, 2017 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 480,496 $ — $ — $ 480,496 Restricted cash (2) 2,082 — — 2,082 Deferred compensation plan assets (3) 20,372 — — 20,372 Total $ 502,950 $ — $ — $ 502,950 Assets at Fair Value as of December 31, 2016 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 464,617 $ — $ — $ 464,617 Restricted cash (2) 2,043 — — 2,043 Deferred compensation plan assets (3) 12,153 — — 12,153 Total $ 478,813 $ — $ — $ 478,813 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2017 and December 31, 2016 , we had $187.0 million and $154.6 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. (3) Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. We believe that the carrying values of our financial instruments, which include accounts receivable and other financing commitments, approximate their fair values due primarily to their short-term maturities and low risk of counterparty default. The carrying value of our debt associated with the 2016 Credit Agreement approximates its fair value due to the variable rate on such debt. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended September 30, 2017 and 2016 , our income tax provision from continuing operations was $38.6 million and $30.8 million , respectively, based on an effective income tax rate, before discrete items and less amounts attributable to noncontrolling interests, of 37.1% and 38.1% , respectively. The actual income tax rate on income from continuing operations, less amounts attributable to noncontrolling interests, for the three months ended September 30, 2017 and 2016 , inclusive of discrete items, was 37.3% and 37.2% , respectively. For the nine months ended September 30, 2017 and 2016 , our income tax provision from continuing operations was $98.5 million and $82.7 million , respectively, based on effective income tax rates, before discrete items and less amounts attributable to noncontrolling interests, of 37.4% and 37.8% , respectively. The actual income tax rates on income from continuing operations, less amounts attributable to noncontrolling interests, for the nine months ended September 30, 2017 and 2016 , inclusive of discrete items, were 36.0% and 36.7% , respectively. The increase in the 2017 income tax provision was primarily due to increased income from continuing operations. The decrease in the 2017 actual income tax rate on income from continuing operations was due to the net impact of discrete items, inclusive of the reversal of reserves for previously unrecognized income tax benefits in the first quarter of 2017. As of September 30, 2017 and December 31, 2016 , the amount of unrecognized income tax benefits was $1.9 million and $4.0 million (of which $0.7 million and $2.2 million , if recognized, would favorably affect our effective income tax rate), respectively. We report interest expense and/or income related to unrecognized income tax benefits in the income tax provision. As of September 30, 2017 and December 31, 2016 , we had approximately $0.2 million and $0.5 million , respectively, of accrued interest expense related to unrecognized income tax benefits included as a liability in the Condensed Consolidated Balance Sheets. For the three months ended September 30, 2017 and 2016 , less than $0.1 million of interest expense and less than $0.1 million of interest income, respectively, was recognized in the income tax provision. For the nine months ended September 30, 2017 and 2016 , $0.3 million and less than $0.1 million of interest income, respectively, was recognized in the income tax provision. We do not anticipate any significant changes to our reserves for uncertain tax positions in the next twelve months. We file income tax returns with the Internal Revenue Service and various state, local and foreign tax agencies. The Company is currently under examination by various taxing authorities for the years 2012 through 2015. During the first quarter of 2017, the Company settled an examination with a taxing authority which resulted in the recognition of $3.3 million of income tax benefits upon the reversal of reserves for previously uncertain tax positions. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock As of September 30, 2017 and December 31, 2016 , there were 58,806,509 and 59,946,984 shares of our common stock outstanding, respectively. During the three months ended September 30, 2017 and 2016 , we issued 19,679 and 47,050 shares of common stock, respectively, primarily upon: (a) the purchase of common stock pursuant to our employee stock purchase plan and (b) the satisfaction of required conditions under certain of our share-based compensation plans. During the nine months ended September 30, 2017 and 2016 , we issued 213,060 and 353,116 shares of common stock, respectively, primarily upon: (a) the satisfaction of required conditions under certain of our share-based compensation plans, (b) the purchase of common stock pursuant to our employee stock purchase plan and (c) the exercise of stock options. On September 26, 2011, our Board of Directors authorized us to repurchase up to $100.0 million of our outstanding common stock. On December 5, 2013, October 23, 2014 and October 28, 2015, our Board of Directors authorized us to repurchase up to an additional $100.0 million , $250.0 million and $200.0 million of our outstanding common stock, respectively. During 2017, we have repurchased approximately 1.4 million shares of our common stock for approximately $88.6 million . Since the inception of the repurchase programs through September 30, 2017 , we have repurchased approximately 12.8 million shares of our common stock for approximately $573.0 million . As of September 30, 2017 , there remained authorization for us to repurchase approximately $77.0 million of our shares. Subsequent to September 30, 2017, our Board of Directors authorized us to repurchase up to an additional $100.0 million of our outstanding common stock. The repurchase programs have no expiration date and do not obligate the Company to acquire any particular amount of common stock and may be suspended, recommenced or discontinued at any time or from time to time without prior notice. We may repurchase our shares from time to time to the extent permitted by securities laws and other legal requirements, including provisions in our 2016 Credit Agreement placing limitations on such repurchases. The repurchase programs have been and will be funded from our operations. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Our United Kingdom subsidiary has a defined benefit pension plan covering all eligible employees (the “UK Plan”); however, no individual joining the company after October 31, 2001 may participate in the UK Plan. On May 31, 2010, we curtailed the future accrual of benefits for active employees under such plan. Components of Net Periodic Pension Cost The components of net periodic pension cost of the UK Plan for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2017 2016 2017 2016 Interest cost $ 2,162 $ 2,465 $ 6,331 $ 7,846 Expected return on plan assets (3,388 ) (3,398 ) (9,919 ) (10,816 ) Amortization of unrecognized loss 738 489 2,160 1,556 Net periodic pension cost (income) $ (488 ) $ (444 ) $ (1,428 ) $ (1,414 ) Employer Contributions For the nine months ended September 30, 2017 , our United Kingdom subsidiary contributed approximately $3.5 million to the UK Plan and anticipates contributing an additional $1.3 million during the remainder of 2017. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Government Contracts As a government contractor, we are subject to U.S. government audits and investigations relating to our operations, including claims for fines, penalties and compensatory and treble damages, and possible suspension or debarment from doing business with the government. Based on currently available information, we believe the outcome of ongoing government disputes and investigations will not have a material impact on our financial position, results of operations or liquidity. Legal Matters One of our subsidiaries was a subcontractor to a mechanical contractor (“Mechanical Contractor”) on a construction project where an explosion occurred in 2010. The Mechanical Contractor has asserted claims, in the context of an arbitration proceeding against our subsidiary, alleging that our subsidiary is responsible for a portion of the damages for which the Mechanical Contractor may be liable as a result of: (a) personal injury suffered by individuals as a result of the explosion and (b) the Mechanical Contractor’s legal fees and associated management costs in defending against any and all such claims. The Mechanical Contractor previously asserted claims under the Connecticut and Massachusetts Unfair and Deceptive Trade Practices Acts, but such claims were recently withdrawn. The general contractor (as assignee of the Mechanical Contractor) on the construction project, and for whom the Mechanical Contractor worked, has alleged that our subsidiary is responsible for losses asserted by the owner of the project and/or the general contractor because of delays in completion of the project and for damages to the owner’s property. We believe, and have been advised by counsel, that we have a number of meritorious defenses to all such matters. We believe that the ultimate outcome of such matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Notwithstanding our assessment of the final impact of this matter, we are not able to estimate with any certainty the amount of loss, if any, which would be associated with an adverse resolution. We are involved in several other proceedings in which damages and claims have been asserted against us. We believe that we have a number of valid defenses to such proceedings and claims and intend to vigorously defend ourselves. Other potential claims may exist that have not yet been asserted against us. We do not believe that any such matters will have a material adverse effect on our financial position, results of operations or liquidity. Litigation is subject to many uncertainties and the outcome of litigation is not predictable with assurance. It is possible that some litigation matters for which liabilities have not been recorded could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial position, results of operations or liquidity. Restructuring expenses Restructuring expenses, primarily relating to employee severance obligations, were less than $0.1 million and $1.0 million for the three and nine months ended September 30, 2017, respectively, and $0.5 million and $1.3 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2017 , the balance of these restructuring obligations yet to be paid was less than $0.1 million and is expected to be paid during the remainder of 2017. No material expenses in connection with restructuring from continuing operations are expected to be incurred during the remainder of 2017. The changes in restructuring activity by reportable segments during the nine months ended September 30, 2017 and 2016 were as follows (in thousands): United States United States building services segment Total Balance at December 31, 2015 $ — $ 81 $ 81 Charges 401 870 1,271 Payments (108 ) (770 ) (878 ) Balance at September 30, 2016 $ 293 $ 181 $ 474 Balance at December 31, 2016 $ 188 $ 13 $ 201 Charges 181 773 954 Payments (369 ) (737 ) (1,106 ) Balance at September 30, 2017 $ — $ 49 $ 49 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments reflect certain reclassifications of prior year amounts from our United States mechanical construction and facilities services segment to our United States building services segment due to changes in our internal reporting structure. We have the following reportable segments, which provide services associated with the design, integration, installation, start-up, operation and maintenance of various systems: (a) United States electrical construction and facilities services (involving systems for electrical power transmission and distribution; premises electrical and lighting systems; process instrumentation in the refining, chemical process, food process and mining industries; low-voltage systems, such as fire alarm, security and process control; voice and data communication; roadway and transit lighting; and fiber optic lines); (b) United States mechanical construction and facilities services (involving systems for heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; fire protection; plumbing, process and high-purity piping; controls and filtration; water and wastewater treatment; central plant heating and cooling; cranes and rigging; millwrighting; and steel fabrication, erection and welding); (c) United States building services; (d) United States industrial services; and (e) United Kingdom building services. The “United States building services” and “United Kingdom building services” segments principally consist of those operations which provide a portfolio of services needed to support the operation and maintenance of our customers’ facilities, including commercial and government site-based operations and maintenance; facility maintenance and services, including reception, security and catering services; outage services to utilities and industrial plants; military base operations support services; mobile maintenance and services; floor care and janitorial services; landscaping, lot sweeping and snow removal; facilities management; vendor management; call center services; installation and support for building systems; program development, management and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects for federal, state and local governmental agencies and bodies; and small modification and retrofit projects, which services are not generally related to customers’ construction programs. The “United States industrial services” segment principally consists of those operations which provide industrial maintenance and services, including those for refineries and petrochemical plants, including on-site repairs, maintenance and service of heat exchangers, towers, vessels and piping; design, manufacturing, repair and hydro blast cleaning of shell and tube heat exchangers and related equipment; refinery turnaround planning and engineering services; specialty welding services; overhaul and maintenance of critical process units in refineries and petrochemical plants; and specialty technical services for refineries and petrochemical plants. The following tables present information about industry segments and geographic areas for the three and nine months ended September 30, 2017 and 2016 (in thousands): For the three months ended September 30, 2017 2016 Revenues from unrelated entities: United States electrical construction and facilities services $ 457,919 $ 458,553 United States mechanical construction and facilities services 760,084 691,818 United States building services 437,107 460,715 United States industrial services 145,679 239,052 Total United States operations 1,800,789 1,850,138 United Kingdom building services 85,902 73,036 Total worldwide operations $ 1,886,691 $ 1,923,174 Total revenues: United States electrical construction and facilities services $ 460,066 $ 465,476 United States mechanical construction and facilities services 767,398 696,549 United States building services 451,396 475,106 United States industrial services 147,133 239,489 Less intersegment revenues (25,204 ) (26,482 ) Total United States operations 1,800,789 1,850,138 United Kingdom building services 85,902 73,036 Total worldwide operations $ 1,886,691 $ 1,923,174 For the nine months ended September 30, 2017 2016 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,350,157 $ 1,227,474 United States mechanical construction and facilities services 2,173,030 1,925,793 United States building services 1,315,401 1,366,973 United States industrial services 591,694 830,064 Total United States operations 5,430,282 5,350,304 United Kingdom building services 244,078 251,256 Total worldwide operations $ 5,674,360 $ 5,601,560 Total revenues: United States electrical construction and facilities services $ 1,355,206 $ 1,249,681 United States mechanical construction and facilities services 2,197,231 1,937,089 United States building services 1,360,189 1,407,361 United States industrial services 593,648 831,111 Less intersegment revenues (75,992 ) (74,938 ) Total United States operations 5,430,282 5,350,304 United Kingdom building services 244,078 251,256 Total worldwide operations $ 5,674,360 $ 5,601,560 For the three months ended September 30, 2017 2016 Operating income (loss): United States electrical construction and facilities services $ 46,583 $ 30,927 United States mechanical construction and facilities services 57,484 38,890 United States building services 25,981 23,125 United States industrial services (4,844 ) 14,586 Total United States operations 125,204 107,528 United Kingdom building services 3,933 2,591 Corporate administration (22,632 ) (23,516 ) Restructuring expenses (46 ) (539 ) Total worldwide operations 106,459 86,064 Other corporate items: Interest expense (3,324 ) (3,479 ) Interest income 277 161 Income from continuing operations before income taxes $ 103,412 $ 82,746 For the nine months ended September 30, 2017 2016 Operating income (loss): United States electrical construction and facilities services $ 109,735 $ 70,645 United States mechanical construction and facilities services 150,971 100,607 United States building services 60,375 55,658 United States industrial services 16,573 66,600 Total United States operations 337,654 293,510 United Kingdom building services 9,109 9,160 Corporate administration (63,755 ) (67,431 ) Restructuring expenses (954 ) (1,271 ) Total worldwide operations 282,054 233,968 Other corporate items: Interest expense (9,464 ) (8,973 ) Interest income 607 518 Income from continuing operations before income taxes $ 273,197 $ 225,513 September 30, December 31, Total assets: United States electrical construction and facilities services $ 595,680 $ 631,581 United States mechanical construction and facilities services 1,055,857 954,633 United States building services 774,449 753,434 United States industrial services 840,757 850,434 Total United States operations 3,266,743 3,190,082 United Kingdom building services 121,659 105,081 Corporate administration 577,919 557,275 Total worldwide operations $ 3,966,321 $ 3,852,438 |
Fair Value Measurements (Policy
Fair Value Measurements (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | We use a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, which gives the highest priority to quoted prices in active markets, is comprised of the following three levels: Level 1 – Unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than Level 1 inputs. Level 2 inputs would typically include quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the measurement and unobservable. |
Disposition of Assets (Tables)
Disposition of Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Components Of The Results of Discontinued Operations For The Construction Operations of the United Kingdom Segment | The results of discontinued operations are as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2017 2016 2017 2016 Revenues $ (81 ) $ 40 $ 863 $ 108 Loss from discontinued operation, net of income taxes $ (207 ) $ (406 ) $ (729 ) $ (1,584 ) Diluted loss per share from discontinued operation $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.03 ) The loss from discontinued operations for the three and nine months ended September 30, 2017 was primarily due to legal costs related to the settlement of final contract balances on certain construction projects completed in prior years, partially offset by revenues recognized in the second quarter of 2017 upon the settlement of a previously outstanding contract claim. Included in the Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands): September 30, December 31, Assets of discontinued operation: Current assets $ 360 $ 1,233 Liabilities of discontinued operation: Current liabilities $ 3,511 $ 4,036 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Common Share | The following tables summarize our calculation of Basic and Diluted Earnings (Loss) per Common Share (“EPS”) for the three and nine months ended September 30, 2017 and 2016 (in thousands, except share and per share data): For the three months ended September 30, 2017 2016 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 64,804 $ 51,937 Loss from discontinued operation, net of income taxes (207 ) (406 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 64,597 $ 51,531 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 59,061,768 60,889,484 Effect of dilutive securities—Share-based awards 357,432 428,573 Shares used to compute diluted earnings (loss) per common share 59,419,200 61,318,057 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.10 $ 0.85 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.10 $ 0.84 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 1.09 $ 0.85 From discontinued operation (0.00 ) (0.01 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 1.09 $ 0.84 For the nine months ended September 30, 2017 2016 Numerator: Income from continuing operations attributable to EMCOR Group, Inc. common stockholders $ 174,724 $ 142,843 Loss from discontinued operation, net of income taxes (729 ) (1,584 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 173,995 $ 141,259 Denominator: Weighted average shares outstanding used to compute basic earnings (loss) per common share 59,371,672 60,866,532 Effect of dilutive securities—Share-based awards 349,513 423,856 Shares used to compute diluted earnings (loss) per common share 59,721,185 61,290,388 Basic earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 2.94 $ 2.35 From discontinued operation (0.01 ) (0.03 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 2.93 $ 2.32 Diluted earnings (loss) per common share: From continuing operations attributable to EMCOR Group, Inc. common stockholders $ 2.93 $ 2.33 From discontinued operation (0.01 ) (0.03 ) Net income attributable to EMCOR Group, Inc. common stockholders $ 2.92 $ 2.30 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Raw materials and construction materials $ 25,709 $ 21,997 Work in process 17,944 15,429 Inventories $ 43,653 $ 37,426 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands): September 30, December 31, Revolving credit facility $ 125,000 $ 125,000 Term loan 288,608 300,000 Unamortized debt issuance costs (4,548 ) (5,437 ) Capitalized lease obligations 4,788 3,732 Other 22 31 Total debt 413,870 423,326 Less: current maturities 15,364 15,030 Total long-term debt $ 398,506 $ 408,296 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis | The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2017 and December 31, 2016 (in thousands): Assets at Fair Value as of September 30, 2017 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 480,496 $ — $ — $ 480,496 Restricted cash (2) 2,082 — — 2,082 Deferred compensation plan assets (3) 20,372 — — 20,372 Total $ 502,950 $ — $ — $ 502,950 Assets at Fair Value as of December 31, 2016 Asset Category Level 1 Level 2 Level 3 Total Cash and cash equivalents (1) $ 464,617 $ — $ — $ 464,617 Restricted cash (2) 2,043 — — 2,043 Deferred compensation plan assets (3) 12,153 — — 12,153 Total $ 478,813 $ — $ — $ 478,813 ________ (1) Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2017 and December 31, 2016 , we had $187.0 million and $154.6 million , respectively, in money market funds. (2) Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. (3) Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Pension Cost | The components of net periodic pension cost of the UK Plan for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2017 2016 2017 2016 Interest cost $ 2,162 $ 2,465 $ 6,331 $ 7,846 Expected return on plan assets (3,388 ) (3,398 ) (9,919 ) (10,816 ) Amortization of unrecognized loss 738 489 2,160 1,556 Net periodic pension cost (income) $ (488 ) $ (444 ) $ (1,428 ) $ (1,414 ) |
Commitments and Contingencies R
Commitments and Contingencies Restructuring and Related Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The changes in restructuring activity by reportable segments during the nine months ended September 30, 2017 and 2016 were as follows (in thousands): United States United States building services segment Total Balance at December 31, 2015 $ — $ 81 $ 81 Charges 401 870 1,271 Payments (108 ) (770 ) (878 ) Balance at September 30, 2016 $ 293 $ 181 $ 474 Balance at December 31, 2016 $ 188 $ 13 $ 201 Charges 181 773 954 Payments (369 ) (737 ) (1,106 ) Balance at September 30, 2017 $ — $ 49 $ 49 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Information About Industry Segments And Geographic Areas | The following tables present information about industry segments and geographic areas for the three and nine months ended September 30, 2017 and 2016 (in thousands): For the three months ended September 30, 2017 2016 Revenues from unrelated entities: United States electrical construction and facilities services $ 457,919 $ 458,553 United States mechanical construction and facilities services 760,084 691,818 United States building services 437,107 460,715 United States industrial services 145,679 239,052 Total United States operations 1,800,789 1,850,138 United Kingdom building services 85,902 73,036 Total worldwide operations $ 1,886,691 $ 1,923,174 Total revenues: United States electrical construction and facilities services $ 460,066 $ 465,476 United States mechanical construction and facilities services 767,398 696,549 United States building services 451,396 475,106 United States industrial services 147,133 239,489 Less intersegment revenues (25,204 ) (26,482 ) Total United States operations 1,800,789 1,850,138 United Kingdom building services 85,902 73,036 Total worldwide operations $ 1,886,691 $ 1,923,174 For the nine months ended September 30, 2017 2016 Revenues from unrelated entities: United States electrical construction and facilities services $ 1,350,157 $ 1,227,474 United States mechanical construction and facilities services 2,173,030 1,925,793 United States building services 1,315,401 1,366,973 United States industrial services 591,694 830,064 Total United States operations 5,430,282 5,350,304 United Kingdom building services 244,078 251,256 Total worldwide operations $ 5,674,360 $ 5,601,560 Total revenues: United States electrical construction and facilities services $ 1,355,206 $ 1,249,681 United States mechanical construction and facilities services 2,197,231 1,937,089 United States building services 1,360,189 1,407,361 United States industrial services 593,648 831,111 Less intersegment revenues (75,992 ) (74,938 ) Total United States operations 5,430,282 5,350,304 United Kingdom building services 244,078 251,256 Total worldwide operations $ 5,674,360 $ 5,601,560 For the three months ended September 30, 2017 2016 Operating income (loss): United States electrical construction and facilities services $ 46,583 $ 30,927 United States mechanical construction and facilities services 57,484 38,890 United States building services 25,981 23,125 United States industrial services (4,844 ) 14,586 Total United States operations 125,204 107,528 United Kingdom building services 3,933 2,591 Corporate administration (22,632 ) (23,516 ) Restructuring expenses (46 ) (539 ) Total worldwide operations 106,459 86,064 Other corporate items: Interest expense (3,324 ) (3,479 ) Interest income 277 161 Income from continuing operations before income taxes $ 103,412 $ 82,746 For the nine months ended September 30, 2017 2016 Operating income (loss): United States electrical construction and facilities services $ 109,735 $ 70,645 United States mechanical construction and facilities services 150,971 100,607 United States building services 60,375 55,658 United States industrial services 16,573 66,600 Total United States operations 337,654 293,510 United Kingdom building services 9,109 9,160 Corporate administration (63,755 ) (67,431 ) Restructuring expenses (954 ) (1,271 ) Total worldwide operations 282,054 233,968 Other corporate items: Interest expense (9,464 ) (8,973 ) Interest income 607 518 Income from continuing operations before income taxes $ 273,197 $ 225,513 September 30, December 31, Total assets: United States electrical construction and facilities services $ 595,680 $ 631,581 United States mechanical construction and facilities services 1,055,857 954,633 United States building services 774,449 753,434 United States industrial services 840,757 850,434 Total United States operations 3,266,743 3,190,082 United Kingdom building services 121,659 105,081 Corporate administration 577,919 557,275 Total worldwide operations $ 3,966,321 $ 3,852,438 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) $ in Millions | Dec. 31, 2016USD ($) |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 41.7 |
Acquisitions Of Businesses (Det
Acquisitions Of Businesses (Details) $ in Thousands | Mar. 01, 2017USD ($)Company | Jan. 04, 2017Company | Apr. 15, 2016USD ($)Company | Apr. 01, 2016Company | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,010,399 | $ 979,628 | ||||
Number of businesses acquired | Company | 1 | 1 | 1 | 1 | ||
Q1 2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 84,800 | |||||
Working capital acquired | 9,600 | |||||
Other net assets | 300 | |||||
Goodwill | 28,700 | |||||
Identifiable intangible assets | $ 46,200 | |||||
Ardent [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||
Purchase price | $ 201,400 | |||||
Working capital acquired | 34,100 | |||||
Other net assets | 3,900 | |||||
Goodwill | 121,900 | |||||
Identifiable intangible assets | 41,500 | |||||
Acquired goodwill, tax deductible amount | $ 99,700 | |||||
Intangible amortization period | 13 years 6 months |
Disposition of Assets (Narrativ
Disposition of Assets (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||||
Loss from discontinued operation, net of income taxes | $ (207) | $ (406) | $ (729) | $ (1,584) | ||
From discontinued operation (in US dollars per share) | $ 0 | $ (0.01) | $ (0.01) | $ (0.03) | ||
Restructuring reserve | $ 49 | $ 474 | $ 49 | $ 474 | $ 201 | $ 81 |
UNITED KINGDOM | Discontinued Operations [Member] | United Kingdom Construction [Member] | ||||||
Income Statement [Abstract] | ||||||
Revenues | (81) | 40 | 863 | 108 | ||
Loss from discontinued operation, net of income taxes | $ (207) | $ (406) | $ (729) | $ (1,584) | ||
From discontinued operation (in US dollars per share) | $ 0 | $ (0.01) | $ (0.01) | $ (0.03) | ||
Assets of discontinued operation: | ||||||
Current assets | $ 360 | $ 360 | 1,233 | |||
Liabilities of discontinued operation: | ||||||
Current liabilities | 3,511 | 3,511 | $ 4,036 | |||
Employee Severance [Member] | UNITED KINGDOM | Discontinued Operations [Member] | United Kingdom Construction [Member] | ||||||
Income Statement [Abstract] | ||||||
Restructuring reserve | $ 100 | $ 100 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator | ||||
Income from continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars) | $ 64,804 | $ 51,937 | $ 174,724 | $ 142,843 |
Loss from discontinued operation, net of income taxes (in US dollars) | (207) | (406) | (729) | (1,584) |
Net income attributable to EMCOR Group, Inc. (in US dollars) | $ 64,597 | $ 51,531 | $ 173,995 | $ 141,259 |
Denominator | ||||
Weighted average shares outstanding used to compute basic earnings (loss) per common share (in shares) | 59,061,768 | 60,889,484 | 59,371,672 | 60,866,532 |
Effect of dilutive securities-Share-based awards (in shares) | 357,432 | 428,573 | 349,513 | 423,856 |
Shares used to compute diluted earnings (loss) per common share (in shares) | 59,419,200 | 61,318,057 | 59,721,185 | 61,290,388 |
Basic earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.10 | $ 0.85 | $ 2.94 | $ 2.35 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | (0.01) | (0.03) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.10 | 0.84 | 2.93 | 2.32 |
Diluted earnings (loss) per common share: | ||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | 1.09 | 0.85 | 2.93 | 2.33 |
From discontinued operation (in US dollars per share) | 0 | (0.01) | (0.01) | (0.03) |
Net income attributable to EMCOR Group, Inc. common stockholders (in US dollars per share) | $ 1.09 | $ 0.84 | $ 2.92 | $ 2.30 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive share-based awards excluded from calculation of diluted earnings per share (in shares) | 500 | 0 | 500 | 0 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 25,709 | $ 21,997 |
Work in process | 17,944 | 15,429 |
Inventories | $ 43,653 | $ 37,426 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 03, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||||||
Interest rate description | Borrowings under the 2016 Credit Agreement bear interest at (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (1.24% at September 30, 2017) plus 1.00% to 1.75%, based on certain financial tests. The base rate is determined by the greater of (a) the prime commercial lending rate announced by Bank of Montreal from time to time (4.25% at September 30, 2017), (b) the federal funds effective rate, plus ½ of 1.00%, (c) the daily one month LIBOR rate, plus 1.00%, or (d) 0.00%. The interest rate in effect at September 30, 2017 was 2.24%. Fees for letters of credit issued under the 2016 Revolving Credit Facility range from 1.00% to 1.75% of the respective face amounts of outstanding letters of credit and are computed based on certain financial tests. | |||||
Repayments of long-term debt (in US dollars) | $ 11,401,000 | $ 317,987,000 | ||||
Letters of credit outstanding (in US dollars) | $ 91,900,000 | 111,800,000 | $ 91,900,000 | |||
Borrowings under revolving credit facility (in US dollars) | 125,000,000 | $ 125,000,000 | 125,000,000 | |||
2013 Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Term Loan (in US dollars) | $ 350,000,000 | |||||
2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit agreement, initiation date | Aug. 3, 2016 | |||||
Expiration date of credit agreement | Aug. 3, 2021 | |||||
Interest rate | 2.24% | |||||
Debt issuance costs, capitalized (in US dollars) | 3,000,000 | 3,000,000 | ||||
2016 Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings under revolving credit facility (in US dollars) | 125,000,000 | $ 125,000,000 | 125,000,000 | |||
2016 Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Term Loan (in US dollars) | $ 400,000,000 | 300,000,000 | 288,608,000 | 300,000,000 | ||
Periodic principal payment on term loan (in US dollars) | 5,000,000 | $ 3,800,000 | ||||
Term loan, annual principal payments (in US dollars) | $ 100,000,000 | 100,000,000 | ||||
Repayments of long-term debt (in US dollars) | $ 95,000,000 | |||||
Base Rate [Member] | Minimum [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Base Rate [Member] | Maximum [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Prime Rate, Bank of Montreal [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Commercial lending rate | 4.25% | |||||
Credit Agreement Base Rate, Daily One Month LIBOR Rate [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Commercial lending rate | 1.24% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Credit Agreement Base Rate, Federal Funds Rate [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Credit Agreement, 0% Base Rate [Member] | 2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Revolving Credit Facility [Member] | 2013 Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 750,000,000 | |||||
Revolving Credit Facility [Member] | 2016 Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility maximum borrowing capacity (in US dollars) | $ 900,000,000 | |||||
Increase in borrowing capacity (in US dollars) | $ 1,300,000,000 | |||||
Letters of credit maximum borrowing capacity (in US dollars) | $ 300,000,000 | |||||
Commitment fee percentage of unused amount | 0.15% | |||||
Revolving Credit Facility [Member] | Minimum [Member] | 2016 Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage of unused amount | 0.15% | |||||
Letter of credit fees | 1.00% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | 2016 Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage of unused amount | 0.30% | |||||
Letter of credit fees | 1.75% |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Aug. 03, 2016 |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 125,000,000 | $ 125,000,000 | |
Unamortized debt issuance costs | (4,548,000) | (5,437,000) | |
Capitalized lease obligations | 4,788,000 | 3,732,000 | |
Other | 22,000 | 31,000 | |
Total debt | 413,870,000 | 423,326,000 | |
Less: current maturities | 15,364,000 | 15,030,000 | |
Total long-term debt | 398,506,000 | 408,296,000 | |
2016 Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 125,000,000 | 125,000,000 | |
2016 Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan | $ 288,608,000 | $ 300,000,000 | $ 400,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Carried At Fair Value Measured On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | $ 480,496 | $ 464,617 |
Restricted cash | [2] | 2,082 | 2,043 |
Deferred compensation plan assets | [3] | 20,372 | 12,153 |
Total | 502,950 | 478,813 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | 480,496 | 464,617 |
Restricted cash | [2] | 2,082 | 2,043 |
Deferred compensation plan assets | [3] | 20,372 | 12,153 |
Total | 502,950 | 478,813 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash | [2] | 0 | 0 |
Deferred compensation plan assets | [3] | 0 | 0 |
Total | 0 | 0 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash | [2] | 0 | 0 |
Deferred compensation plan assets | [3] | 0 | 0 |
Total | 0 | 0 | |
Money Market Funds [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 187,000 | $ 154,600 | |
[1] | Cash and cash equivalents include money market funds with original maturity dates of three months or less, which are Level 1 assets. At September 30, 2017 and December 31, 2016, we had $187.0 million and $154.6 million, respectively, in money market funds. | ||
[2] | Restricted cash is classified as “Prepaid expenses and other” in the Condensed Consolidated Balance Sheets. | ||
[3] | Deferred compensation plan assets are classified as “Other assets” in the Condensed Consolidated Balance Sheets. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income tax provision | $ 38,608 | $ 30,783 | $ 98,473 | $ 82,663 | ||
Effective income tax rates | 37.10% | 38.10% | 37.40% | 37.80% | ||
Actual income tax rates | 37.30% | 37.20% | 36.00% | 36.70% | ||
Unrecognized income tax benefits | $ 1,900 | $ 1,900 | $ 4,000 | |||
Unrecognized income tax benefits, if recognized, that would favorably affect the effective income tax rate | 700 | 700 | 2,200 | |||
Accrued interest expense related to unrecognized income tax benefits | 200 | 200 | $ 500 | |||
Interest income related to unrecognized income tax benefits | $ 100 | $ 300 | $ 100 | |||
Interest expense related to unrecognized income tax benefits | $ 100 | |||||
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | $ 3,300 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 72 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Oct. 25, 2017 | Dec. 31, 2016 | Oct. 28, 2015 | Oct. 23, 2014 | Dec. 05, 2013 | Sep. 26, 2011 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Common stock, outstanding | 58,806,509 | 58,806,509 | 58,806,509 | 59,946,984 | |||||||
Common stock, issued | 19,679 | 47,050 | 213,060 | 353,116 | |||||||
Stock repurchased (in US dollars) | $ 88,599,000 | $ 29,028,000 | |||||||||
Common Stock [Member] | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Number of shares repurchased | 12,800,000 | ||||||||||
Stock repurchased (in US dollars) | 10,000 | $ 6,000 | $ 573,000,000 | ||||||||
Remaining authorized repurchase amount (in US dollars) | $ 77,000,000 | $ 77,000,000 | $ 77,000,000 | ||||||||
Common Stock [Member] | RepurchaseProgramSep262011 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 | ||||||||||
Common Stock [Member] | RepurchaseProgramDec052013 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 | ||||||||||
Common Stock [Member] | RepurchaseProgramOct232014 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock repurchase, authorized amount (in US dollars) | $ 250,000,000 | ||||||||||
Common Stock [Member] | RepurchaseProgramOct282015 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock repurchase, authorized amount (in US dollars) | $ 200,000,000 | ||||||||||
Number of shares repurchased | 1,400,000 | ||||||||||
Stock repurchased (in US dollars) | $ 88,600,000 | ||||||||||
Subsequent Event [Member] | Common Stock [Member] | RepurchaseProgramOct252017 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Stock repurchase, authorized amount (in US dollars) | $ 100,000,000 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution of U.K. subsidiary to its defined benefit pension plan | $ 3.5 |
Anticipated additional contribution | $ 1.3 |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Pension Benefit Cost) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 2,162 | $ 2,465 | $ 6,331 | $ 7,846 |
Expected return on plan assets | (3,388) | (3,398) | (9,919) | (10,816) |
Amortization of unamortized loss | 738 | 489 | 2,160 | 1,556 |
Net periodic pension cost (income) | $ (488) | $ (444) | $ (1,428) | $ (1,414) |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 46 | $ 539 | $ 954 | $ 1,271 | ||
Restructuring reserve | 49 | 474 | 49 | 474 | $ 201 | $ 81 |
Employee Severance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 46 | $ 539 | $ 954 | $ 1,271 |
Schedule of Restructuring Activ
Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 49 | $ 474 | $ 49 | $ 474 | $ 201 | $ 81 |
Restructuring expenses | 46 | 539 | 954 | 1,271 | ||
Payments for restructuring | (1,106) | (878) | ||||
Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 46 | 539 | 954 | 1,271 | ||
UNITED STATES | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 0 | 293 | 0 | 293 | 188 | 0 |
Restructuring expenses | 181 | 401 | ||||
Payments for restructuring | (369) | (108) | ||||
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 49 | $ 181 | 49 | 181 | $ 13 | $ 81 |
Restructuring expenses | 773 | 870 | ||||
Payments for restructuring | $ (737) | $ (770) |
Segment Information (Informatio
Segment Information (Information About Industry Segments And Geographic Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | $ 1,886,691 | $ 1,923,174 | $ 5,674,360 | $ 5,601,560 | |
Total revenues | 1,886,691 | 1,923,174 | 5,674,360 | 5,601,560 | |
Operating income (loss) | 106,459 | 86,064 | 282,054 | 233,968 | |
Restructuring expenses | (46) | (539) | (954) | (1,271) | |
Interest expense | (3,324) | (3,479) | (9,464) | (8,973) | |
Interest income | 277 | 161 | 607 | 518 | |
Income from continuing operations before income taxes | 103,412 | 82,746 | 273,197 | 225,513 | |
Total assets | 3,966,321 | 3,966,321 | $ 3,852,438 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | (25,204) | (26,482) | (75,992) | (74,938) | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (22,632) | (23,516) | (63,755) | (67,431) | |
Total assets | 577,919 | 577,919 | 557,275 | ||
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 1,800,789 | 1,850,138 | 5,430,282 | 5,350,304 | |
Total revenues | 1,800,789 | 1,850,138 | 5,430,282 | 5,350,304 | |
Operating income (loss) | 125,204 | 107,528 | 337,654 | 293,510 | |
Total assets | 3,266,743 | 3,266,743 | 3,190,082 | ||
UNITED STATES | United States Electrical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 457,919 | 458,553 | 1,350,157 | 1,227,474 | |
UNITED STATES | United States Mechanical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 760,084 | 691,818 | 2,173,030 | 1,925,793 | |
UNITED STATES | United States Building Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 437,107 | 460,715 | 1,315,401 | 1,366,973 | |
UNITED STATES | United States Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 145,679 | 239,052 | 591,694 | 830,064 | |
UNITED STATES | Operating Segments [Member] | United States Electrical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 460,066 | 465,476 | 1,355,206 | 1,249,681 | |
Operating income (loss) | 46,583 | 30,927 | 109,735 | 70,645 | |
Total assets | 595,680 | 595,680 | 631,581 | ||
UNITED STATES | Operating Segments [Member] | United States Mechanical Construction And Facilities Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 767,398 | 696,549 | 2,197,231 | 1,937,089 | |
Operating income (loss) | 57,484 | 38,890 | 150,971 | 100,607 | |
Restructuring expenses | (181) | (401) | |||
Total assets | 1,055,857 | 1,055,857 | 954,633 | ||
UNITED STATES | Operating Segments [Member] | United States Building Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 451,396 | 475,106 | 1,360,189 | 1,407,361 | |
Operating income (loss) | 25,981 | 23,125 | 60,375 | 55,658 | |
Restructuring expenses | (773) | (870) | |||
Total assets | 774,449 | 774,449 | 753,434 | ||
UNITED STATES | Operating Segments [Member] | United States Industrial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 147,133 | 239,489 | 593,648 | 831,111 | |
Operating income (loss) | (4,844) | 14,586 | 16,573 | 66,600 | |
Total assets | 840,757 | 840,757 | 850,434 | ||
UNITED KINGDOM | United Kingdom Building Services [Member] [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from unrelated entities | 85,902 | 73,036 | 244,078 | 251,256 | |
UNITED KINGDOM | Operating Segments [Member] | United Kingdom Building Services [Member] [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 85,902 | 73,036 | 244,078 | 251,256 | |
Operating income (loss) | 3,933 | $ 2,591 | 9,109 | $ 9,160 | |
Total assets | $ 121,659 | $ 121,659 | $ 105,081 |