Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies

Schedule of disaggregation of revenue

	Three Months Ended September 30,								Nine Months Ended September 30,
Revenue by Service Provided	2020				2019				2020				2019
Mechanical Services	$	621,140	87.0	%	$	590,016	83.5	%	$	1,809,304	83.9	%	$	1,677,632	88.5	%
Electrical Services		92,959	13.0	%		116,902	16.5	%		348,394	16.1	%		218,061	11.5	%
Total	$	714,099	100.0	%	$	706,918	100.0	%	$	2,157,698	100.0	%	$	1,895,693	100.0	%
	Three Months Ended September 30,								Nine Months Ended September 30,
Revenue by Type of Customer	2020				2019				2020				2019
Industrial	$	268,651	37.6	%	$	222,156	31.4	%	$	844,719	39.1	%	$	588,818	31.1	%
Education		135,992	19.0	%		125,836	17.8	%		375,580	17.4	%		292,799	15.4	%
Office Buildings		81,183	11.4	%		83,271	11.8	%		232,349	10.8	%		254,966	13.5	%
Healthcare		86,061	12.1	%		126,909	18.0	%		281,370	13.0	%		306,810	16.2	%
Government		40,631	5.7	%		41,502	5.9	%		119,444	5.5	%		118,224	6.2	%
Retail, Restaurants and Entertainment		64,212	9.0	%		67,141	9.5	%		190,043	8.8	%		184,618	9.7	%
Multi-Family and Residential		21,776	3.0	%		24,121	3.4	%		61,062	2.8	%		83,417	4.4	%
Other		15,593	2.2	%		15,982	2.2	%		53,131	2.6	%		66,041	3.5	%
Total	$	714,099	100.0	%	$	706,918	100.0	%	$	2,157,698	100.0	%	$	1,895,693	100.0	%
	Three Months Ended September 30,								Nine Months Ended September 30,
Revenue by Activity Type	2020				2019				2020				2019
New Construction	$	310,000	43.4	%	$	312,279	44.2	%	$	1,034,833	48.0	%	$	827,718	43.7	%
Existing Building Construction		235,798	33.0	%		224,125	31.6	%		668,067	30.9	%		605,819	31.9	%
Service Projects		69,162	9.7	%		62,668	8.9	%		179,188	8.3	%		171,860	9.1	%
Service Calls, Maintenance and Monitoring		99,139	13.9	%		107,846	15.3	%		275,610	12.8	%		290,296	15.3	%
Total	$	714,099	100.0	%	$	706,918	100.0	%	$	2,157,698	100.0	%	$	1,895,693	100.0	%

Schedule of activity in allowance for credit losses

Activity in our allowance for credit losses consisted of the following (in thousands):

	Service		Construction		Other		Total
Balance at beginning of year	$	3,192	$	3,400	$	315	$	6,907
Impact of new accounting standard		310		331		54		695
Bad debt expense (benefit)		2,651		2,678		(11)		5,318
Deductions for uncollectible receivables written off, net of recoveries		(913)		(623)		—		(1,536)
Credit allowance of acquired companies on the acquisition date		—		502		—		502
Purchase accounting adjustments		—		72		—		72
Reclass to other current liabilities		—		—		(315)		(315)
Balance at September 30, 2020	$	5,240	$	6,360	$	43	$	11,643

Schedule of contract assets and liabilities

The following table presents the changes in contract assets and contract liabilities (in thousands):

	Nine Months Ended September 30,					Year Ended December 31,
	2020				2019
	Contract		Contract		Contract		Contract
	Assets		Liabilities		Assets		Liabilities
Balance at beginning of period	$	2,736	$	166,918	$	10,213	$	130,986
Change due to acquisitions / disposals		7,469		37,047		6,573		31,556
Change related to credit allowance		(79)		—		—		—
Other changes in the period		15,256		13,489		(14,050)		4,376
Balance at end of period	$	25,382	$	217,454	$	2,736	$	166,918

Schedule of lease assets and liabilities

The following table summarizes the lease assets and liabilities included in the consolidated Balance Sheet as follows (in thousands):

	September 30, 2020		December 31, 2019
Lease right-of-use assets	$	95,815	$	84,073
Lease liabilities:
Other current liabilities		16,368		14,016
Long-term lease liabilities		81,638		72,697
Total lease liabilities	$	98,006	$	86,713

Schedule of maturities of lease liabilities

The maturities of lease liabilities are as follows (in thousands):

Year ending December 31—
2020 (excluding the nine months ended September 30, 2020)	$	5,306
2021		19,397
2022		16,353
2023		14,172
2024		12,671
Thereafter		47,693
Total Lease Payments		115,592
Less—Present Value Discount		(17,586)
Present Value of Lease Liabilities	$	98,006

Schedule of supplemental information related to leases

Supplemental information related to leases was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities	$	5,362	$	4,566	$	15,140	$	12,439
Lease right-of-use assets obtained in exchange for lease liabilities	$	1,880	$	6,865	$	24,080	$	21,262