FORM 10-Q |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
EMCOR GROUP, INC. |
(Exact Name of Registrant as Specified in Its Charter) |
Delaware | 11-2125338 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |
301 Merritt Seven Norwalk, Connecticut | 06851-1092 | |
(Address of Principal Executive Offices) | (Zip Code) |
(203) 849-7800 |
(Registrant’s Telephone Number, Including Area Code) |
N/A |
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o |
Page No. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 2. | ||
Item 4. | ||
Item 6. |
June 30, 2017 (Unaudited) | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 385,396 | $ | 464,617 | |||
Accounts receivable, net | 1,501,036 | 1,495,431 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 132,224 | 130,697 | |||||
Inventories | 42,451 | 37,426 | |||||
Prepaid expenses and other | 38,729 | 40,944 | |||||
Total current assets | 2,099,836 | 2,169,115 | |||||
Investments, notes and other long-term receivables | 7,722 | 8,792 | |||||
Property, plant and equipment, net | 127,754 | 127,951 | |||||
Goodwill | 1,010,399 | 979,628 | |||||
Identifiable intangible assets, net | 509,341 | 487,398 | |||||
Other assets | 92,522 | 79,554 | |||||
Total assets | $ | 3,847,574 | $ | 3,852,438 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt and capital lease obligations | $ | 15,318 | $ | 15,030 | |||
Accounts payable | 469,318 | 501,213 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 523,115 | 489,242 | |||||
Accrued payroll and benefits | 271,438 | 310,514 | |||||
Other accrued expenses and liabilities | 189,668 | 195,775 | |||||
Total current liabilities | 1,468,857 | 1,511,774 | |||||
Borrowings under revolving credit facility | 125,000 | 125,000 | |||||
Long-term debt and capital lease obligations | 276,866 | 283,296 | |||||
Other long-term obligations | 397,922 | 394,426 | |||||
Total liabilities | 2,268,645 | 2,314,496 | |||||
Equity: | |||||||
EMCOR Group, Inc. stockholders’ equity: | |||||||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, zero issued and outstanding | — | — | |||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 59,831,304 and 60,606,825 shares issued, respectively | 598 | 606 | |||||
Capital surplus | 662 | 52,219 | |||||
Accumulated other comprehensive loss | (101,160 | ) | (101,703 | ) | |||
Retained earnings | 1,688,278 | 1,596,269 | |||||
Treasury stock, at cost 659,841 shares | (10,302 | ) | (10,302 | ) | |||
Total EMCOR Group, Inc. stockholders’ equity | 1,578,076 | 1,537,089 | |||||
Noncontrolling interests | 853 | 853 | |||||
Total equity | 1,578,929 | 1,537,942 | |||||
Total liabilities and equity | $ | 3,847,574 | $ | 3,852,438 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 1,895,937 | $ | 1,933,416 | $ | 3,787,669 | $ | 3,678,386 | |||||||
Cost of sales | 1,621,436 | 1,658,675 | 3,246,828 | 3,180,537 | |||||||||||
Gross profit | 274,501 | 274,741 | 540,841 | 497,849 | |||||||||||
Selling, general and administrative expenses | 181,337 | 181,811 | 364,338 | 349,213 | |||||||||||
Restructuring expenses | 343 | 641 | 908 | 732 | |||||||||||
Operating income | 92,821 | 92,289 | 175,595 | 147,904 | |||||||||||
Interest expense | (3,069 | ) | (3,118 | ) | (6,140 | ) | (5,494 | ) | |||||||
Interest income | 73 | 192 | 330 | 357 | |||||||||||
Income from continuing operations before income taxes | 89,825 | 89,363 | 169,785 | 142,767 | |||||||||||
Income tax provision | 33,019 | 32,911 | 59,865 | 51,880 | |||||||||||
Income from continuing operations | 56,806 | 56,452 | 109,920 | 90,887 | |||||||||||
Loss from discontinued operation, net of income taxes | (18 | ) | (1,097 | ) | (522 | ) | (1,178 | ) | |||||||
Net income including noncontrolling interests | 56,788 | 55,355 | 109,398 | 89,709 | |||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (30 | ) | 25 | — | 19 | ||||||||||
Net income attributable to EMCOR Group, Inc. | $ | 56,758 | $ | 55,380 | $ | 109,398 | $ | 89,728 | |||||||
Basic earnings (loss) per common share: | |||||||||||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 0.96 | $ | 0.93 | $ | 1.85 | $ | 1.49 | |||||||
From discontinued operation | (0.00 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | |||||||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 0.96 | $ | 0.91 | $ | 1.84 | $ | 1.47 | |||||||
Diluted earnings (loss) per common share: | |||||||||||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 0.95 | $ | 0.92 | $ | 1.84 | $ | 1.48 | |||||||
From discontinued operation | (0.00 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | |||||||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 0.95 | $ | 0.90 | $ | 1.83 | $ | 1.46 | |||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income including noncontrolling interests | $ | 56,788 | $ | 55,355 | $ | 109,398 | $ | 89,709 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (577 | ) | (754 | ) | (691 | ) | (801 | ) | |||||||
Post retirement plans, amortization of actuarial loss included in net income (1) | 625 | 476 | 1,234 | 953 | |||||||||||
Other comprehensive income (loss) | 48 | (278 | ) | 543 | 152 | ||||||||||
Comprehensive income | 56,836 | 55,077 | 109,941 | 89,861 | |||||||||||
Less: Comprehensive (income) loss attributable to noncontrolling interests | (30 | ) | 25 | — | 19 | ||||||||||
Comprehensive income attributable to EMCOR Group, Inc. | $ | 56,806 | $ | 55,102 | $ | 109,941 | $ | 89,880 |
(1) | Net of tax of $0.2 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively, and net of tax of $0.3 million for the six months ended June 30, 2017 and 2016. |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Cash flows - operating activities: | |||||||
Net income including noncontrolling interests | $ | 109,398 | $ | 89,709 | |||
Depreciation and amortization | 20,354 | 19,265 | |||||
Amortization of identifiable intangible assets | 24,257 | 20,011 | |||||
Provision for doubtful accounts | 2,543 | 4,478 | |||||
Deferred income taxes | (6,410 | ) | 1,734 | ||||
Excess tax benefits from share-based compensation | (1,554 | ) | (1,818 | ) | |||
Equity income from unconsolidated entities | (758 | ) | (160 | ) | |||
Other non-cash items | 2,208 | 5,565 | |||||
Distributions from unconsolidated entities | 1,829 | 863 | |||||
Changes in operating assets and liabilities, excluding the effect of businesses acquired | (48,978 | ) | (91,862 | ) | |||
Net cash provided by operating activities | 102,889 | 47,785 | |||||
Cash flows - investing activities: | |||||||
Payments for acquisitions of businesses, net of cash acquired | (82,724 | ) | (232,283 | ) | |||
Proceeds from sale of property, plant and equipment | 1,629 | 909 | |||||
Purchase of property, plant and equipment | (17,668 | ) | (18,950 | ) | |||
Net cash used in investing activities | (98,763 | ) | (250,324 | ) | |||
Cash flows - financing activities: | |||||||
Proceeds from revolving credit facility | — | 220,000 | |||||
Repayments of long-term debt | (7,601 | ) | (8,756 | ) | |||
Repayments of capital lease obligations | (716 | ) | (816 | ) | |||
Dividends paid to stockholders | (9,531 | ) | (9,734 | ) | |||
Repurchase of common stock | (65,775 | ) | (34,074 | ) | |||
Proceeds from exercise of stock options | — | 144 | |||||
Payments to satisfy minimum tax withholding | (2,637 | ) | (4,111 | ) | |||
Issuance of common stock under employee stock purchase plan | 2,191 | 2,383 | |||||
Payments for contingent consideration arrangements | (1,017 | ) | — | ||||
Distributions to noncontrolling interests | — | (2,050 | ) | ||||
Net cash (used in) provided by financing activities | (85,086 | ) | 162,986 | ||||
Effect of exchange rate changes on cash and cash equivalents | 1,739 | (4,259 | ) | ||||
Decrease in cash and cash equivalents | (79,221 | ) | (43,812 | ) | |||
Cash and cash equivalents at beginning of year | 464,617 | 486,831 | |||||
Cash and cash equivalents at end of period | $ | 385,396 | $ | 443,019 | |||
Supplemental cash flow information: | |||||||
Cash paid for: | |||||||
Interest | $ | 5,600 | $ | 4,662 | |||
Income taxes | $ | 67,652 | $ | 69,555 | |||
Non-cash financing activities: | |||||||
Assets acquired under capital lease obligations | $ | 688 | $ | 1,402 |
EMCOR Group, Inc. Stockholders | |||||||||||||||||||||||||||
Total | Common stock | Capital surplus | Accumulated other comprehensive (loss) income (1) | Retained earnings | Treasury stock | Noncontrolling interests | |||||||||||||||||||||
Balance, December 31, 2015 | $ | 1,480,056 | $ | 617 | $ | 130,369 | $ | (76,953 | ) | $ | 1,432,980 | $ | (10,302 | ) | $ | 3,345 | |||||||||||
Net income including noncontrolling interests | 89,709 | — | — | — | 89,728 | — | (19 | ) | |||||||||||||||||||
Other comprehensive income | 152 | — | — | 152 | — | — | — | ||||||||||||||||||||
Common stock issued under share-based compensation plans (2) | 1,135 | 3 | 141 | — | 991 | — | — | ||||||||||||||||||||
Tax withholding for common stock issued under share-based compensation plans | (4,111 | ) | — | (4,111 | ) | — | — | — | — | ||||||||||||||||||
Common stock issued under employee stock purchase plan | 2,383 | — | 2,383 | — | — | — | — | ||||||||||||||||||||
Common stock dividends | (9,734 | ) | — | 102 | — | (9,836 | ) | — | — | ||||||||||||||||||
Repurchase of common stock | (26,076 | ) | (6 | ) | (26,070 | ) | — | — | — | — | |||||||||||||||||
Distributions to noncontrolling interests | (2,050 | ) | — | — | — | — | — | (2,050 | ) | ||||||||||||||||||
Share-based compensation expense | 5,035 | — | 5,035 | — | — | — | — | ||||||||||||||||||||
Balance, June 30, 2016 | $ | 1,536,499 | $ | 614 | $ | 107,849 | $ | (76,801 | ) | $ | 1,513,863 | $ | (10,302 | ) | $ | 1,276 | |||||||||||
Balance, December 31, 2016 | $ | 1,537,942 | $ | 606 | $ | 52,219 | $ | (101,703 | ) | $ | 1,596,269 | $ | (10,302 | ) | $ | 853 | |||||||||||
Net income including noncontrolling interests | 109,398 | — | — | — | 109,398 | — | — | ||||||||||||||||||||
Other comprehensive income | 543 | — | — | 543 | — | — | — | ||||||||||||||||||||
Common stock issued under share-based compensation plans | 1 | 2 | (1 | ) | — | — | — | — | |||||||||||||||||||
Tax withholding for common stock issued under share-based compensation plans | (3,354 | ) | — | (3,354 | ) | — | — | — | — | ||||||||||||||||||
Common stock issued under employee stock purchase plan | 2,191 | — | 2,191 | — | — | — | — | ||||||||||||||||||||
Common stock dividends | (9,531 | ) | — | 84 | — | (9,615 | ) | — | — | ||||||||||||||||||
Repurchase of common stock | (63,430 | ) | (10 | ) | (55,646 | ) | — | (7,774 | ) | — | — | ||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | ||||||||||||||||||||
Share-based compensation expense | 5,169 | — | 5,169 | — | — | — | — | ||||||||||||||||||||
Balance, June 30, 2017 | $ | 1,578,929 | $ | 598 | $ | 662 | $ | (101,160 | ) | $ | 1,688,278 | $ | (10,302 | ) | $ | 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. |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 944 | $ | 5 | $ | 944 | $ | 68 | |||||||
Loss from discontinued operation, net of income taxes | $ | (18 | ) | $ | (1,097 | ) | $ | (522 | ) | $ | (1,178 | ) | |||
Diluted loss per share from discontinued operation | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) |
June 30, 2017 | December 31, 2016 | ||||||
Assets of discontinued operation: | |||||||
Current assets | $ | 865 | $ | 1,233 | |||
Liabilities of discontinued operation: | |||||||
Current liabilities | $ | 3,657 | $ | 4,036 |
For the three months ended June 30, | |||||||
2017 | 2016 | ||||||
Numerator: | |||||||
Income from continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 56,776 | $ | 56,477 | |||
Loss from discontinued operation, net of income taxes | (18 | ) | (1,097 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 56,758 | $ | 55,380 | |||
Denominator: | |||||||
Weighted average shares outstanding used to compute basic earnings (loss) per common share | 59,290,420 | 60,808,502 | |||||
Effect of dilutive securities—Share-based awards | 348,641 | 395,719 | |||||
Shares used to compute diluted earnings (loss) per common share | 59,639,061 | 61,204,221 | |||||
Basic earnings (loss) per common share: | |||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 0.96 | $ | 0.93 | |||
From discontinued operation | (0.00 | ) | (0.02 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 0.96 | $ | 0.91 | |||
Diluted earnings (loss) per common share: | |||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 0.95 | $ | 0.92 | |||
From discontinued operation | (0.00 | ) | (0.02 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 0.95 | $ | 0.90 |
For the six months ended June 30, | |||||||
2017 | 2016 | ||||||
Numerator: | |||||||
Income from continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 109,920 | $ | 90,906 | |||
Loss from discontinued operation, net of income taxes | (522 | ) | (1,178 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 109,398 | $ | 89,728 | |||
Denominator: | |||||||
Weighted average shares outstanding used to compute basic earnings (loss) per common share | 59,527,863 | 60,854,781 | |||||
Effect of dilutive securities—Share-based awards | 345,553 | 421,497 | |||||
Shares used to compute diluted earnings (loss) per common share | 59,873,416 | 61,276,278 | |||||
Basic earnings (loss) per common share: | |||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 1.85 | $ | 1.49 | |||
From discontinued operation | (0.01 | ) | (0.02 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 1.84 | $ | 1.47 | |||
Diluted earnings (loss) per common share: | |||||||
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 1.84 | $ | 1.48 | |||
From discontinued operation | (0.01 | ) | (0.02 | ) | |||
Net income attributable to EMCOR Group, Inc. common stockholders | $ | 1.83 | $ | 1.46 |
June 30, 2017 | December 31, 2016 | ||||||
Raw materials and construction materials | $ | 23,416 | $ | 21,997 | |||
Work in process | 19,035 | 15,429 | |||||
Inventories | $ | 42,451 | $ | 37,426 |
June 30, 2017 | December 31, 2016 | ||||||
Revolving credit facility | $ | 125,000 | $ | 125,000 | |||
Term loan | 292,405 | 300,000 | |||||
Unamortized debt issuance costs | (4,844 | ) | (5,437 | ) | |||
Capitalized lease obligations | 4,598 | 3,732 | |||||
Other | 25 | 31 | |||||
Total debt | 417,184 | 423,326 | |||||
Less: current maturities | 15,318 | 15,030 | |||||
Total long-term debt | $ | 401,866 | $ | 408,296 |
Assets at Fair Value as of June 30, 2017 | |||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash and cash equivalents (1) | $ | 385,396 | $ | — | $ | — | $ | 385,396 | |||||||
Restricted cash (2) | 1,817 | — | — | 1,817 | |||||||||||
Deferred compensation plan assets (3) | 19,806 | — | — | 19,806 | |||||||||||
Total | $ | 407,019 | $ | — | $ | — | $ | 407,019 |
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 June 30, 2017 and December 31, 2016, we had $145.5 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. |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest cost | $ | 2,124 | $ | 2,696 | $ | 4,169 | $ | 5,381 | |||||||
Expected return on plan assets | (3,327 | ) | (3,717 | ) | (6,531 | ) | (7,418 | ) | |||||||
Amortization of unrecognized loss | 724 | 535 | 1,422 | 1,067 | |||||||||||
Net periodic pension cost (income) | $ | (479 | ) | $ | (486 | ) | $ | (940 | ) | $ | (970 | ) |
United States mechanical construction and facilities services segment | United States building services segment | Total | ||||||||||
Balance at December 31, 2015 | $ | — | $ | 81 | $ | 81 | ||||||
Charges | 198 | 534 | 732 | |||||||||
Payments | (52 | ) | (434 | ) | (486 | ) | ||||||
Balance at June 30, 2016 | $ | 146 | $ | 181 | $ | 327 | ||||||
Balance at December 31, 2016 | $ | 188 | $ | 13 | $ | 201 | ||||||
Charges | 218 | 690 | 908 | |||||||||
Payments | (316 | ) | (621 | ) | (937 | ) | ||||||
Balance at June 30, 2017 | $ | 90 | $ | 82 | $ | 172 |
For the three months ended June 30, | |||||||
2017 | 2016 | ||||||
Revenues from unrelated entities: | |||||||
United States electrical construction and facilities services | $ | 449,222 | $ | 420,632 | |||
United States mechanical construction and facilities services | 741,817 | 625,547 | |||||
United States building services | 438,264 | 463,145 | |||||
United States industrial services | 187,476 | 333,508 | |||||
Total United States operations | 1,816,779 | 1,842,832 | |||||
United Kingdom building services | 79,158 | 90,584 | |||||
Total worldwide operations | $ | 1,895,937 | $ | 1,933,416 | |||
Total revenues: | |||||||
United States electrical construction and facilities services | $ | 451,124 | $ | 430,101 | |||
United States mechanical construction and facilities services | 750,442 | 628,770 | |||||
United States building services | 453,849 | 476,458 | |||||
United States industrial services | 187,610 | 333,752 | |||||
Less intersegment revenues | (26,246 | ) | (26,249 | ) | |||
Total United States operations | 1,816,779 | 1,842,832 | |||||
United Kingdom building services | 79,158 | 90,584 | |||||
Total worldwide operations | $ | 1,895,937 | $ | 1,933,416 |
For the six months ended June 30, | |||||||
2017 | 2016 | ||||||
Revenues from unrelated entities: | |||||||
United States electrical construction and facilities services | $ | 892,238 | $ | 768,921 | |||
United States mechanical construction and facilities services | 1,412,946 | 1,233,975 | |||||
United States building services | 878,294 | 906,258 | |||||
United States industrial services | 446,015 | 591,012 | |||||
Total United States operations | 3,629,493 | 3,500,166 | |||||
United Kingdom building services | 158,176 | 178,220 | |||||
Total worldwide operations | $ | 3,787,669 | $ | 3,678,386 | |||
Total revenues: | |||||||
United States electrical construction and facilities services | $ | 895,140 | $ | 784,205 | |||
United States mechanical construction and facilities services | 1,429,833 | 1,240,540 | |||||
United States building services | 908,793 | 932,255 | |||||
United States industrial services | 446,515 | 591,622 | |||||
Less intersegment revenues | (50,788 | ) | (48,456 | ) | |||
Total United States operations | 3,629,493 | 3,500,166 | |||||
United Kingdom building services | 158,176 | 178,220 | |||||
Total worldwide operations | $ | 3,787,669 | $ | 3,678,386 |
For the three months ended June 30, | |||||||
2017 | 2016 | ||||||
Operating income (loss): | |||||||
United States electrical construction and facilities services | $ | 32,118 | $ | 23,011 | |||
United States mechanical construction and facilities services | 53,054 | 37,936 | |||||
United States building services | 20,185 | 18,535 | |||||
United States industrial services | 4,373 | 33,148 | |||||
Total United States operations | 109,730 | 112,630 | |||||
United Kingdom building services | 3,497 | 3,258 | |||||
Corporate administration | (20,063 | ) | (22,958 | ) | |||
Restructuring expenses | (343 | ) | (641 | ) | |||
Total worldwide operations | 92,821 | 92,289 | |||||
Other corporate items: | |||||||
Interest expense | (3,069 | ) | (3,118 | ) | |||
Interest income | 73 | 192 | |||||
Income from continuing operations before income taxes | $ | 89,825 | $ | 89,363 |
For the six months ended June 30, | |||||||
2017 | 2016 | ||||||
Operating income (loss): | |||||||
United States electrical construction and facilities services | $ | 63,152 | $ | 39,718 | |||
United States mechanical construction and facilities services | 93,487 | 61,717 | |||||
United States building services | 34,394 | 32,533 | |||||
United States industrial services | 21,417 | 52,014 | |||||
Total United States operations | 212,450 | 185,982 | |||||
United Kingdom building services | 5,176 | 6,569 | |||||
Corporate administration | (41,123 | ) | (43,915 | ) | |||
Restructuring expenses | (908 | ) | (732 | ) | |||
Total worldwide operations | 175,595 | 147,904 | |||||
Other corporate items: | |||||||
Interest expense | (6,140 | ) | (5,494 | ) | |||
Interest income | 330 | 357 | |||||
Income from continuing operations before income taxes | $ | 169,785 | $ | 142,767 |
June 30, 2017 | December 31, 2016 | ||||||
Total assets: | |||||||
United States electrical construction and facilities services | $ | 588,331 | $ | 631,581 | |||
United States mechanical construction and facilities services | 1,038,760 | 954,633 | |||||
United States building services | 784,941 | 753,434 | |||||
United States industrial services | 832,988 | 850,434 | |||||
Total United States operations | 3,245,020 | 3,190,082 | |||||
United Kingdom building services | 112,777 | 105,081 | |||||
Corporate administration | 489,777 | 557,275 | |||||
Total worldwide operations | $ | 3,847,574 | $ | 3,852,438 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
For the three months ended June 30, | |||||||
2017 | 2016 | ||||||
Revenues | $ | 1,895,937 | $ | 1,933,416 | |||
Revenues (decrease) increase from prior year | (1.9 | )% | 17.0 | % | |||
Operating income | $ | 92,821 | $ | 92,289 | |||
Operating income as a percentage of revenues | 4.9 | % | 4.8 | % | |||
Net income attributable to EMCOR Group, Inc. | $ | 56,758 | $ | 55,380 | |||
Diluted earnings per common share from continuing operations | $ | 0.95 | $ | 0.92 |
For the three months ended June 30, | |||||||||||||
2017 | % of Total | 2016 | % of Total | ||||||||||
Revenues: | |||||||||||||
United States electrical construction and facilities services | $ | 449,222 | 24 | % | $ | 420,632 | 22 | % | |||||
United States mechanical construction and facilities services | 741,817 | 39 | % | 625,547 | 32 | % | |||||||
United States building services | 438,264 | 23 | % | 463,145 | 24 | % | |||||||
United States industrial services | 187,476 | 10 | % | 333,508 | 17 | % | |||||||
Total United States operations | 1,816,779 | 96 | % | 1,842,832 | 95 | % | |||||||
United Kingdom building services | 79,158 | 4 | % | 90,584 | 5 | % | |||||||
Total worldwide operations | $ | 1,895,937 | 100 | % | $ | 1,933,416 | 100 | % |
For the six months ended June 30, | |||||||||||||
2017 | % of Total | 2016 | % of Total | ||||||||||
Revenues: | |||||||||||||
United States electrical construction and facilities services | $ | 892,238 | 24 | % | $ | 768,921 | 21 | % | |||||
United States mechanical construction and facilities services | 1,412,946 | 37 | % | 1,233,975 | 34 | % | |||||||
United States building services | 878,294 | 23 | % | 906,258 | 25 | % | |||||||
United States industrial services | 446,015 | 12 | % | 591,012 | 16 | % | |||||||
Total United States operations | 3,629,493 | 96 | % | 3,500,166 | 95 | % | |||||||
United Kingdom building services | 158,176 | 4 | % | 178,220 | 5 | % | |||||||
Total worldwide operations | $ | 3,787,669 | 100 | % | $ | 3,678,386 | 100 | % |
June 30, 2017 | % of Total | December 31, 2016 | % of Total | June 30, 2016 | % of Total | |||||||||||||||
Backlog: | ||||||||||||||||||||
United States electrical construction and facilities services | $ | 1,257,375 | 31 | % | $ | 1,221,237 | 31 | % | $ | 1,096,872 | 29 | % | ||||||||
United States mechanical construction and facilities services | 1,908,259 | 47 | % | 1,818,536 | 47 | % | 1,737,898 | 46 | % | |||||||||||
United States building services | 707,875 | 17 | % | 663,340 | 17 | % | 772,158 | 20 | % | |||||||||||
United States industrial services | 55,214 | 1 | % | 50,279 | 1 | % | 56,722 | 1 | % | |||||||||||
Total United States operations | 3,928,723 | 96 | % | 3,753,392 | 96 | % | 3,663,650 | 96 | % | |||||||||||
United Kingdom building services | 170,883 | 4 | % | 149,530 | 4 | % | 145,835 | 4 | % | |||||||||||
Total worldwide operations | $ | 4,099,606 | 100 | % | $ | 3,902,922 | 100 | % | $ | 3,809,485 | 100 | % |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of sales | $ | 1,621,436 | $ | 1,658,675 | $ | 3,246,828 | $ | 3,180,537 | |||||||
Gross profit | $ | 274,501 | $ | 274,741 | $ | 540,841 | $ | 497,849 | |||||||
Gross profit, as a percentage of revenues | 14.5 | % | 14.2 | % | 14.3 | % | 13.5 | % |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Selling, general and administrative expenses | $ | 181,337 | $ | 181,811 | $ | 364,338 | $ | 349,213 | |||||||
Selling, general and administrative expenses, as a percentage of revenues | 9.6 | % | 9.4 | % | 9.6 | % | 9.5 | % |
For the three months ended June 30, | |||||||||||||
2017 | % of Segment Revenues | 2016 | % of Segment Revenues | ||||||||||
Operating income (loss): | |||||||||||||
United States electrical construction and facilities services | $ | 32,118 | 7.1 | % | $ | 23,011 | 5.5 | % | |||||
United States mechanical construction and facilities services | 53,054 | 7.2 | % | 37,936 | 6.1 | % | |||||||
United States building services | 20,185 | 4.6 | % | 18,535 | 4.0 | % | |||||||
United States industrial services | 4,373 | 2.3 | % | 33,148 | 9.9 | % | |||||||
Total United States operations | 109,730 | 6.0 | % | 112,630 | 6.1 | % | |||||||
United Kingdom building services | 3,497 | 4.4 | % | 3,258 | 3.6 | % | |||||||
Corporate administration | (20,063 | ) | — | (22,958 | ) | — | |||||||
Restructuring expenses | (343 | ) | — | (641 | ) | — | |||||||
Total worldwide operations | 92,821 | 4.9 | % | 92,289 | 4.8 | % | |||||||
Other corporate items: | |||||||||||||
Interest expense | (3,069 | ) | (3,118 | ) | |||||||||
Interest income | 73 | 192 | |||||||||||
Income from continuing operations before income taxes | $ | 89,825 | $ | 89,363 |
For the six months ended June 30, | |||||||||||||
2017 | % of Segment Revenues | 2016 | % of Segment Revenues | ||||||||||
Operating income (loss): | |||||||||||||
United States electrical construction and facilities services | $ | 63,152 | 7.1 | % | $ | 39,718 | 5.2 | % | |||||
United States mechanical construction and facilities services | 93,487 | 6.6 | % | 61,717 | 5.0 | % | |||||||
United States building services | 34,394 | 3.9 | % | 32,533 | 3.6 | % | |||||||
United States industrial services | 21,417 | 4.8 | % | 52,014 | 8.8 | % | |||||||
Total United States operations | 212,450 | 5.9 | % | 185,982 | 5.3 | % | |||||||
United Kingdom building services | 5,176 | 3.3 | % | 6,569 | 3.7 | % | |||||||
Corporate administration | (41,123 | ) | — | (43,915 | ) | — | |||||||
Restructuring expenses | (908 | ) | — | (732 | ) | — | |||||||
Total worldwide operations | 175,595 | 4.6 | % | 147,904 | 4.0 | % | |||||||
Other corporate items: | |||||||||||||
Interest expense | (6,140 | ) | (5,494 | ) | |||||||||
Interest income | 330 | 357 | |||||||||||
Income from continuing operations before income taxes | $ | 169,785 | $ | 142,767 |
For the six months ended June 30, | |||||||
2017 | 2016 | ||||||
Net cash provided by operating activities | $ | 102,889 | $ | 47,785 | |||
Net cash used in investing activities | $ | (98,763 | ) | $ | (250,324 | ) | |
Net cash (used in) provided by financing activities | $ | (85,086 | ) | $ | 162,986 | ||
Effect of exchange rate changes on cash and cash equivalents | $ | 1,739 | $ | (4,259 | ) |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | After 5 years | |||||||||||||||
Revolving credit facility (including interest at 2.23%) (1) | $ | 136.5 | $ | 2.8 | $ | 5.6 | $ | 128.1 | $ | — | ||||||||||
Term loan (including interest at 2.23%) (1) | 316.7 | 21.7 | 42.3 | 252.7 | — | |||||||||||||||
Capital lease obligations | 4.9 | 1.5 | 2.9 | 0.5 | — | |||||||||||||||
Operating leases | 291.9 | 66.9 | 108.8 | 65.2 | 51.0 | |||||||||||||||
Open purchase obligations (2) | 1,057.2 | 887.1 | 168.7 | 1.4 | — | |||||||||||||||
Other long-term obligations, including current portion (3) | 418.0 | 67.0 | 341.5 | 9.5 | — | |||||||||||||||
Liabilities related to uncertain income tax positions (4) | 2.1 | 1.3 | — | — | 0.8 | |||||||||||||||
Total Contractual Obligations | $ | 2,227.3 | $ | 1,048.3 | $ | 669.8 | $ | 457.4 | $ | 51.8 | ||||||||||
Amount of Commitment Expiration by Period | ||||||||||||||||||||
Other Commercial Commitments | Total Committed | Less than 1 year | 1-3 years | 3-5 years | After 5 years | |||||||||||||||
Letters of credit | $ | 106.0 | $ | 104.9 | $ | 1.1 | $ | — | $ | — |
(1) | On August 3, 2016, we entered into 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”). The proceeds of the 2016 Term Loan were used to repay amounts drawn under our prior credit agreement. As of June 30, 2017, the amount outstanding under the 2016 Term Loan was $292.4 million. As of June 30, 2017, there were borrowings outstanding of $125.0 million under the 2016 Revolving Credit Facility. |
(2) | Represents open purchase orders for material and subcontracting costs related to construction and services contracts. These purchase orders are not reflected in EMCOR’s Condensed Consolidated Balance Sheets and should not impact future cash flows, as amounts should be recovered through customer billings. |
(3) | Represents primarily insurance related liabilities and liabilities for deferred income taxes, incentive compensation and deferred compensation, classified as other long-term liabilities in the Condensed Consolidated Balance Sheets. Cash payments for insurance and deferred compensation related liabilities may be payable beyond three years, but it is not practical to estimate these payments; therefore, these liabilities are reflected in the 1-3 years payment period. We provide funding to our post retirement plans based on at least the minimum funding required by applicable regulations. In determining the minimum required funding, we utilize current actuarial assumptions and exchange rates to forecast estimates of amounts that may be payable for up to five years in the future. In our judgment, minimum funding estimates beyond a five year time horizon cannot be reliably estimated and, therefore, have not been included in the table. |
(4) | Includes $0.2 million of accrued interest. |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Plan or Programs | ||||
April 1, 2017 to April 30, 2017 | 30,863 | $61.90 | 30,863 | $110,353,334 | ||||
May 1, 2017 to May 31, 2017 | 129,780 | $63.24 | 129,780 | $102,141,865 | ||||
June 1, 2017 to June 30, 2017 | None | None | None | $102,141,865 |
(1) | 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. As of June 30, 2017, there remained authorization for us to repurchase approximately $102.1 million of our shares. No shares have been repurchased by us since the programs have been announced other than pursuant to these publicly announced programs. We may repurchase our shares from time to time as permitted by securities laws and other legal requirements. |
EMCOR GROUP, INC. | |
(Registrant) | |
BY: | /s/ ANTHONY J. GUZZI |
Anthony J. Guzzi | |
President and Chief Executive Officer (Principal Executive Officer) | |
BY: | /s/ MARK A. POMPA |
Mark A. Pompa | |
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Exhibit No. | Description | Incorporated By Reference to or Filed Herewith, as Indicated Below | ||
2(a-1) | Purchase Agreement dated as of February 11, 2002 by and among Comfort Systems USA, Inc. and EMCOR-CSI Holding Co. | |||
2(a-2) | Purchase and Sale Agreement dated as of August 20, 2007 between FR X Ohmstede Holdings LLC and EMCOR Group, Inc. | |||
2(a-3) | Purchase and Sale Agreement, dated as of June 17, 2013 by and among Texas Turnaround LLC, a Delaware limited liability company, Altair Strickland Group, Inc., a Texas corporation, Rep Holdings LLC, a Texas limited liability company, ASG Key Employee LLC, a Texas limited liability company, Repcon Key Employee LLC, a Texas limited liability company, Gulfstar MBII, Ltd., a Texas limited partnership, The Trustee of the James T. Robinson and Diana J. Robinson 2010 Irrevocable Trust, The Trustee of the Steven Rothbauer 2012 Descendant’s Trust, The Co-Trustees of the Patia Strickland 2012 Descendant’s Trust, The Co-Trustees of the Carter Strickland 2012 Descendant’s Trust, and The Co-Trustees of the Walton 2012 Grandchildren’s Trust (collectively, “Sellers”) and EMCOR Group, Inc. | |||
3(a-1) | Restated Certificate of Incorporation of EMCOR filed December 15, 1994 | |||
3(a-2) | Amendment dated November 28, 1995 to the Restated Certificate of Incorporation of EMCOR | |||
3(a-3) | Amendment dated February 12, 1998 to the Restated Certificate of Incorporation of EMCOR | |||
3(a-4) | Amendment dated January 27, 2006 to the Restated Certificate of Incorporation of EMCOR | |||
3(a-5) | Amendment dated September 18, 2007 to the Restated Certificate of Incorporation of EMCOR | |||
3(b) | Amended and Restated By-Laws and Amendments thereto | |||
4(a) | Fifth Amended and Restated Credit Agreement dated as of August 3, 2016 by and among EMCOR Group, Inc. and a subsidiary and Bank of Montreal, as Agent and the lenders listed on the signature pages thereof (the “Credit Agreement”) | |||
4(b) | Fifth Amended and Restated Security Agreement dated as of August 3, 2016 among EMCOR, certain of its U.S. subsidiaries, and Bank of Montreal, as Agent | |||
4(c) | Fifth Amended and Restated Pledge Agreement dated as of August 3, 2016 among EMCOR, certain of its U.S. subsidiaries, and Bank of Montreal, as Agent | |||
4(d) | Fourth Amended and Restated Guaranty Agreement dated as of August 3, 2016 by certain of EMCOR’s U.S. subsidiaries in favor of Bank of Montreal, as Agent |
Exhibit No. | Description | Incorporated By Reference to or Filed Herewith, as Indicated Below | ||
10(a) | Form of Severance Agreement (“Severance Agreement”) between EMCOR and each of Sheldon I. Cammaker, R. Kevin Matz and Mark A. Pompa | |||
10(b) | Form of Amendment to Severance Agreement between EMCOR and each of Sheldon I. Cammaker, R. Kevin Matz and Mark A. Pompa | |||
10(c) | Letter Agreement dated October 12, 2004 between Anthony Guzzi and EMCOR (the “Guzzi Letter Agreement”) | |||
10(d) | Form of Confidentiality Agreement between Anthony Guzzi and EMCOR | |||
10(e) | Form of Indemnification Agreement between EMCOR and each of its officers and directors | |||
10(f-1) | Severance Agreement (“Guzzi Severance Agreement”) dated October 25, 2004 between Anthony Guzzi and EMCOR | |||
10(f-2) | Amendment to Guzzi Severance Agreement | |||
10(g-1) | Continuity Agreement dated as of June 22, 1998 between Sheldon I. Cammaker and EMCOR (“Cammaker Continuity Agreement”) | |||
10(g-2) | Amendment dated as of May 4, 1999 to Cammaker Continuity Agreement | |||
10(g-3) | Amendment dated as of March 1, 2007 to Cammaker Continuity Agreement | |||
10(h-1) | Continuity Agreement dated as of June 22, 1998 between R. Kevin Matz and EMCOR (“Matz Continuity Agreement”) | |||
10(h-2) | Amendment dated as of May 4, 1999 to Matz Continuity Agreement | |||
10(h-3) | Amendment dated as of January 1, 2002 to Matz Continuity Agreement | |||
10(h-4) | Amendment dated as of March 1, 2007 to Matz Continuity Agreement | |||
10(i-1) | Continuity Agreement dated as of June 22, 1998 between Mark A. Pompa and EMCOR (“Pompa Continuity Agreement”) | |||
10(i-2) | Amendment dated as of May 4, 1999 to Pompa Continuity Agreement | |||
10(i-3) | Amendment dated as of January 1, 2002 to Pompa Continuity Agreement | |||
10(i-4) | Amendment dated as of March 1, 2007 to Pompa Continuity Agreement | |||
10(j-1) | Change of Control Agreement dated as of October 25, 2004 between Anthony Guzzi (“Guzzi”) and EMCOR (“Guzzi Continuity Agreement”) | |||
10(j-2) | Amendment dated as of March 1, 2007 to Guzzi Continuity Agreement | |||
10(j-3) | Amendment to Continuity Agreements and Severance Agreements with Sheldon I. Cammaker, Anthony J. Guzzi, R. Kevin Matz and Mark A. Pompa |
Exhibit No. | Description | Incorporated By Reference to or Filed Herewith, as Indicated Below | ||
10(k-1) | Amendment dated as of March 29, 2010 to Severance Agreement with Sheldon I. Cammaker, Anthony J. Guzzi, R. Kevin Matz and Mark A. Pompa | |||
10(k-2) | Third Amendment to Severance Agreement dated June 4, 2015 between EMCOR and Sheldon I. Cammaker | |||
10(l-1) | Severance Agreement dated as of October 26, 2016 between EMCOR and Maxine L. Mauricio | |||
10(l-2) | Continuity Agreement dated as of October 26, 2016 between EMCOR and Maxine L. Mauricio (“Mauricio Continuity Agreement”) | |||
10(l-3) | Amendment dated April 10, 2017 to Mauricio Continuity Agreement | |||
10(m-1) | EMCOR Group, Inc. Long-Term Incentive Plan (“LTIP”) | |||
10(m-2) | First Amendment to LTIP and updated Schedule A to LTIP | |||
10(m-3) | Second Amendment to LTIP | |||
10(m-4) | Third Amendment to LTIP | |||
10(m-5) | Fourth Amendment to LTIP | |||
10(m-6) | Form of Certificate Representing Stock Units issued under LTIP | |||
10(m-7) | Fifth Amendment to LTIP | |||
10(m-8) | Sixth Amendment to LTIP | |||
10(n) | Key Executive Incentive Bonus Plan, as amended and restated | |||
10(o-1) | 2007 Incentive Plan | |||
10(o-2) | Form of Option Agreement under 2007 Incentive Plan between EMCOR and each non-employee director electing to receive options as part of annual retainer | |||
10(p-1) | Amended and Restated 2010 Incentive Plan | |||
10(p-2) | Form of Option Agreement under 2010 Incentive Plan between EMCOR and each non-employee director with respect to grant of options upon re-election at June 11, 2010 Annual Meeting of Stockholders | |||
10(p-3) | Form of Option Agreement under 2010 Incentive Plan, as amended, between EMCOR and each non-employee director electing to receive options as part of annual retainer | |||
10(q) | EMCOR Group, Inc. Employee Stock Purchase Plan | |||
10(r) | Director Award Program Adopted May 13, 2011, as amended and restated December 14, 2011 | |||
10(s) | Amendment to Option Agreements |
Exhibit No. | Description | Incorporated By Reference to or Filed Herewith, as Indicated Below | ||
10(t) | Form of Non-LTIP Stock Unit Certificate | |||
10(u) | Form of Director Restricted Stock Unit Agreement | |||
10(v) | Director Award Program, as Amended and Restated December 16, 2014 | |||
10(w) | EMCOR Group, Inc. Voluntary Deferral Plan | |||
10(x) | First Amendment to EMCOR Group, Inc. Voluntary Deferral Plan | |||
10(y) | Form of Executive Restricted Stock Unit Agreement | |||
10(z) | Restricted Stock Unit Award Agreement dated October 23, 2013 between EMCOR and Stephen W. Bershad | |||
10(a)(a) | Restricted Stock Unit Award Agreement dated June 11, 2014 between EMCOR and Stephen W. Bershad | |||
10(b)(b) | Restricted Stock Unit Award Agreement dated June 11, 2015 between EMCOR and Stephen W. Bershad | |||
10(c)(c) | Restricted Stock Unit Award Agreement dated October 29, 2015 between EMCOR and Steven B. Schwarzwaelder | |||
10(d)(d) | Restricted Stock Unit Award Agreement dated June 2, 2016 between EMCOR and Stephen W. Bershad | |||
10(e)(e) | Executive Compensation Recoupment Policy | |||
10(f)(f) | Restricted Stock Unit Award Agreement dated June 30, 2017 between EMCOR and Mark A. Pompa | |||
11 | Computation of Basic EPS and Diluted EPS for the three and six months ended June 30, 2017 and 2016 | |||
31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Anthony J. Guzzi, the President and Chief Executive Officer | |||
31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Mark A. Pompa, the Executive Vice President and Chief Financial Officer | |||
32.1 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by the President and Chief Executive Officer | |||
32.2 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by the Executive Vice President and Chief Financial Officer | |||
95 | Information concerning mine safety violations or other regulatory matters | |||
101 | The following materials from EMCOR Group, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Equity and (vi) the Notes to Condensed Consolidated Financial Statements. | Filed |
(b) | Death or Disability. In the event of Termination of Service |
(d) | Change in Control. Notwithstanding any provision of this |
(a) | pay the Company the amount of tax to be withheld |
1. | I have reviewed this quarterly report on Form 10-Q of EMCOR Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 27, 2017 | /s/ ANTHONY J. GUZZI | |
Anthony J. Guzzi President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of EMCOR Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 27, 2017 | /s/ MARK A. POMPA | |
Mark A. Pompa Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | July 27, 2017 | /s/ ANTHONY J. GUZZI | |
Anthony J. Guzzi President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | July 27, 2017 | /s/ MARK A. POMPA | |
Mark A. Pompa Executive Vice President and Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 24, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | EMCOR GROUP INC | |
Entity Central Index Key | 0000105634 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 59,178,554 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
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 | 59,831,304 | 60,606,825 |
Treasury stock, shares | 659,841 | 659,841 |
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||||
Net income including noncontrolling interests | $ 56,788 | $ 55,355 | $ 109,398 | $ 89,709 | ||
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | (577) | (754) | (691) | (801) | ||
Post retirement plans, amortization of actuarial loss included in net income | [1] | 625 | 476 | 1,234 | 953 | |
Other comprehensive income (loss) | 48 | (278) | 543 | 152 | ||
Comprehensive income | 56,836 | 55,077 | 109,941 | 89,861 | ||
Less: Comprehensive (income) loss attributable to noncontrolling interests | (30) | 25 | 0 | 19 | ||
Comprehensive income attributable to EMCOR Group, Inc. | $ 56,806 | $ 55,102 | $ 109,941 | $ 89,880 | ||
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Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Post retirement plans, amortization of actuarial loss included in net income, tax | $ 0.2 | $ 0.1 | $ 0.3 | $ 0.3 |
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] |
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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 | 89,709 | 89,728 | (19) | |||||||||
Other comprehensive income | 152 | 152 | ||||||||||
Common stock issued under share-based compensation plans | [2] | 1,135 | 3 | 141 | 991 | |||||||
Tax withholding for common stock issued under share-based compensation plans | (4,111) | (4,111) | ||||||||||
Common stock issued under employee stock purchase plan | 2,383 | 2,383 | ||||||||||
Common stock dividends | (9,734) | (9,836) | ||||||||||
Common stock dividends, accrued dividend shares | 102 | |||||||||||
Repurchase of common stock | (26,076) | (6) | (26,070) | |||||||||
Distributions to noncontrolling interests | (2,050) | (2,050) | ||||||||||
Share-based compensation expense | 5,035 | 5,035 | ||||||||||
Balance at Jun. 30, 2016 | 1,536,499 | 614 | 107,849 | (76,801) | 1,513,863 | (10,302) | 1,276 | |||||
Balance at Dec. 31, 2016 | 1,537,942 | 606 | 52,219 | (101,703) | 1,596,269 | (10,302) | 853 | |||||
Net income including noncontrolling interests | 109,398 | 109,398 | 0 | |||||||||
Other comprehensive income | 543 | 543 | ||||||||||
Common stock issued under share-based compensation plans | 1 | 2 | (1) | |||||||||
Tax withholding for common stock issued under share-based compensation plans | (3,354) | (3,354) | ||||||||||
Common stock issued under employee stock purchase plan | 2,191 | 2,191 | ||||||||||
Common stock dividends | (9,531) | (9,615) | ||||||||||
Common stock dividends, accrued dividend shares | 84 | |||||||||||
Repurchase of common stock | (63,430) | (10) | (55,646) | (7,774) | ||||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||||||
Share-based compensation expense | 5,169 | 5,169 | ||||||||||
Balance at Jun. 30, 2017 | $ 1,578,929 | $ 598 | $ 662 | $ (101,160) | $ 1,688,278 | $ (10,302) | $ 853 | |||||
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Condensed Consolidated Statements Of Equity (Parenthetical) $ in Millions |
6 Months Ended |
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Jun. 30, 2016
USD ($)
| |
Accounting Standards Update 2016-09 [Member] | |
Cumulative effect on retained earnings, net of tax | $ 1.0 |
Basis Of Presentation |
6 Months Ended |
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Jun. 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 six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. |
New Accounting Pronouncements |
6 Months Ended |
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Jun. 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. However, our initial conclusion may change as we finalize our assessment. We are still evaluating the impact of the new standard on 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 within such operations 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 are evaluating the enhanced disclosure requirements on our business processes, controls and systems. |
Acquisitions Of Businesses |
6 Months Ended |
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Jun. 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 |
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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):
The loss from discontinued operations in 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 upon the settlement of a previously outstanding contract claim. Included in the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands):
At June 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 June 30, 2017, there remained $0.1 million of obligations related to employee severance, which are expected to be paid during the remainder of 2017. 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 |
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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 six months ended June 30, 2017 and 2016 (in thousands, except share and per share data):
The number of outstanding share-based awards that were excluded from the computation of diluted EPS for the three and six months ended June 30, 2017 because they would be anti-dilutive were 47,200 and zero, respectively. There were no anti-dilutive share-based awards for the three and six months ended June 30, 2016. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands):
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 June 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 June 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 (1.23% at June 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 June 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 June 30, 2017 was 2.23%. 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 June 30, 2017 and December 31, 2016, the balance of the 2016 Term Loan was $292.4 million and $300.0 million, respectively. As of June 30, 2017 and December 31, 2016, we had approximately $105.8 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 June 30, 2017 and December 31, 2016. |
Fair Value Measurements |
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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 June 30, 2017 and December 31, 2016 (in thousands):
________
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 |
6 Months Ended |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended June 30, 2017 and 2016, our income tax provision from continuing operations was $33.0 million and $32.9 million, respectively, based on an effective income tax rate, before discrete items and less amounts attributable to noncontrolling interests, of 37.5% for both periods. The actual income tax rate on income from continuing operations, less amounts attributable to noncontrolling interests, for the three months ended June 30, 2017 and 2016, inclusive of discrete items, was 36.8% for both periods. For the six months ended June 30, 2017 and 2016, our income tax provision from continuing operations was $59.9 million and $51.9 million, respectively, based on effective income tax rates, before discrete items and less amounts attributable to noncontrolling interests, of 37.7% and 37.6%, respectively. The actual income tax rates on income from continuing operations, less amounts attributable to noncontrolling interests, for the six months ended June 30, 2017 and 2016, inclusive of discrete items, were 35.3% and 36.3%, 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 reversal of reserves for previously unrecognized income tax benefits in the first quarter of 2017. As of June 30, 2017 and December 31, 2016, the amount of unrecognized income tax benefits was $1.9 million and $4.0 million (of which $0.6 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 June 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 June 30, 2017 and 2016, $0.1 million and less than $0.1 million of interest expense, respectively, was recognized in the income tax provision. For the six months ended June 30, 2017 and 2016, $0.3 million of interest income and less than $0.1 million of interest expense, respectively, was recognized in the income tax provision. It is reasonably possible that approximately $1.2 million of unrecognized income tax benefits at June 30, 2017, primarily relating to uncertain tax positions attributable to tax return filing positions, will significantly decrease in the next twelve months as a result of estimated settlements with taxing authorities. 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 |
6 Months Ended |
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Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common Stock As of June 30, 2017 and December 31, 2016, there were 59,171,463 and 59,946,984 shares of our common stock outstanding, respectively. During the three months ended June 30, 2017 and 2016, we issued 76,347 and 107,939 shares of common stock, respectively. During the six months ended June 30, 2017 and 2016, we issued 193,381 and 306,066 shares of common stock, respectively. These shares were issued 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 1.0 million shares of our common stock for approximately $63.4 million. Since the inception of the repurchase programs through June 30, 2017, we have repurchased approximately 12.4 million shares of our common stock for approximately $547.9 million. As of June 30, 2017, there remained authorization for us to repurchase approximately $102.1 million of our shares. The repurchase programs 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 |
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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 six months ended June 30, 2017 and 2016 were as follows (in thousands):
Employer Contributions For the six months ended June 30, 2017, our United Kingdom subsidiary contributed approximately $2.3 million to the UK Plan and anticipates contributing an additional $2.3 million during the remainder of 2017. |
Commitments and Contingencies |
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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 $0.3 million and $0.9 million for the three and six months ended June 30, 2017, respectively, and $0.6 million and $0.7 million for the three and six months ended June 30, 2016, respectively. As of June 30, 2017, the balance of these restructuring obligations yet to be paid was approximately $0.2 million, which 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 six months ended June 30, 2017 and 2016 were as follows (in thousands):
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Segment Information |
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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 six months ended June 30, 2017 and 2016 (in thousands):
NOTE 13 Segment Information - (Continued)
NOTE 13 Segment Information - (Continued)
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Fair Value Measurements (Policy) |
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Jun. 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) |
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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):
The loss from discontinued operations in 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 upon the settlement of a previously outstanding contract claim. Included in the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 are the following major classes of assets and liabilities associated with the discontinued operation (in thousands):
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Earnings Per Share (Tables) |
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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 six months ended June 30, 2017 and 2016 (in thousands, except share and per share data):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Debt | Debt in the accompanying Condensed Consolidated Balance Sheets consisted of the following amounts (in thousands):
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Fair Value Measurements (Tables) |
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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 June 30, 2017 and December 31, 2016 (in thousands):
________
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Retirement Plans (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Net Periodic Pension Cost | The components of net periodic pension cost of the UK Plan for the three and six months ended June 30, 2017 and 2016 were as follows (in thousands):
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Commitments and Contingencies Restructuring and Related Activities (Tables) |
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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 six months ended June 30, 2017 and 2016 were as follows (in thousands):
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 six months ended June 30, 2017 and 2016 (in thousands):
NOTE 13 Segment Information - (Continued)
NOTE 13 Segment Information - (Continued)
|
New Accounting Pronouncements New Accounting Pronouncements (Details) $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
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 (Details) $ in Thousands |
Mar. 01, 2017
USD ($)
Company
|
Jan. 04, 2017
Company
|
Apr. 15, 2016
USD ($)
Company
|
Apr. 01, 2016
Company
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
---|---|---|---|---|---|---|
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 |
Inventories (Inventories) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and construction materials | $ 23,416 | $ 21,997 |
Work in process | 19,035 | 15,429 |
Inventories | $ 42,451 | $ 37,426 |
Debt (Schedule Of Debt) (Details) - USD ($) |
Jun. 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 | (4,844,000) | (5,437,000) | |
Capitalized lease obligations | 4,598,000 | 3,732,000 | |
Other | 25,000 | 31,000 | |
Total debt | 417,184,000 | 423,326,000 | |
Less: current maturities | 15,318,000 | 15,030,000 | |
Total long-term debt | 401,866,000 | 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 | $ 292,405,000 | $ 300,000,000 | $ 400,000,000 |
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 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash and cash equivalents | [1] | $ 385,396 | $ 464,617 | ||||||
Restricted cash | [2] | 1,817 | 2,043 | ||||||
Deferred compensation plan assets | [3] | 19,806 | 12,153 | ||||||
Total | 407,019 | 478,813 | |||||||
Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash and cash equivalents | [1] | 385,396 | 464,617 | ||||||
Restricted cash | [2] | 1,817 | 2,043 | ||||||
Deferred compensation plan assets | [3] | 19,806 | 12,153 | ||||||
Total | 407,019 | 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 | $ 145,500 | $ 154,600 | |||||||
|
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Operating Loss Carryforwards [Line Items] | ||||||
Income tax provision | $ 33,019 | $ 32,911 | $ 59,865 | $ 51,880 | ||
Effective income tax rates | 37.50% | 37.50% | 37.70% | 37.60% | ||
Actual income tax rates | 36.80% | 36.80% | 35.30% | 36.30% | ||
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 | 600 | 600 | 2,200 | |||
Accrued interest expense related to unrecognized income tax benefits | 200 | 200 | $ 500 | |||
Interest income related to unrecognized income tax benefits | 300 | |||||
Interest expense related to unrecognized income tax benefits | 100 | $ 100 | $ 100 | |||
Unrecognized income tax benefits to be recognized in the next twelve months | $ 1,200 | $ 1,200 | ||||
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | $ 3,300 |
Retirement Plans (Narrative) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution of U.K. subsidiary to its defined benefit pension plan | $ 2.3 |
Anticipated additional contribution | $ 2.3 |
Retirement Plans (Components Of Net Periodic Pension Benefit Cost) (Details) - Foreign Plan [Member] - United Kingdom Subsidiary [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 2,124 | $ 2,696 | $ 4,169 | $ 5,381 |
Expected return on plan assets | (3,327) | (3,717) | (6,531) | (7,418) |
Amortization of unamortized loss | 724 | 535 | 1,422 | 1,067 |
Net periodic pension cost (income) | $ (479) | $ (486) | $ (940) | $ (970) |
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 343 | $ 641 | $ 908 | $ 732 | ||
Restructuring reserve | 172 | 327 | 172 | 327 | $ 201 | $ 81 |
Employee Severance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Restructuring expenses | $ 343 | $ 641 | $ 908 | $ 732 |
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