Retirement Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

RETIREMENT PLANS

Defined Benefit Plans

The funded status of our defined benefit plans, which represents the difference between the fair value of plan assets and the projected benefit obligations, is recognized in the Consolidated Balance Sheets with a corresponding adjustment to accumulated other comprehensive income (loss). Gains and losses for the differences between actuarial assumptions and actual results are recognized through accumulated other comprehensive income (loss). These amounts will be subsequently recognized as net periodic pension cost (income) within the Consolidated Statement of Operations, as described further below.

Our United Kingdom subsidiary has a defined benefit pension plan covering all eligible employees (the “UK Plan”); however, no individual joining the company after October 31, 2001 may participate in the UK Plan. On May 31, 2010, we curtailed the future accrual of benefits for active employees under such plan.

The change in benefit obligations and assets of the UK Plan for the years ended December 31, 2021 and 2020 consisted of the following components (in thousands):

	2021		2020
Change in pension benefit obligation
Benefit obligation at beginning of year	$	383,142	$	322,766
Interest cost	5,326		6,401
Actuarial (gain) loss	(22,071)		50,863
Benefits paid	(13,939)		(10,029)
Foreign currency exchange rate changes	(3,311)		13,141
Benefit obligation at end of year	349,147		383,142
Change in pension plan assets
Fair value of plan assets at beginning of year	347,411		307,001
Actual return on plan assets	21,809		34,380
Employer contributions	4,956		4,665
Benefits paid	(13,939)		(10,029)
Foreign currency exchange rate changes	(3,705)		11,394
Fair value of plan assets at end of year	356,532		347,411
Funded (unfunded) status at end of year	$	7,385	$	(35,731)

The overfunded status of the UK Plan of $7.4 million at December 31, 2021 and the underfunded status of the UK Plan of $35.7 million at December 31, 2020 are included in “Other Assets” and “Other long-term obligations,” respectively, in the accompanying Consolidated Balance Sheets. No plan assets are expected to be returned to us during the year ending December 31, 2022.

NOTE 14 - RETIREMENT PLANS (Continued)

The weighted average assumptions used to determine benefit obligations as of December 31, 2021 and 2020 were as follows:

	2021		2020
Discount rate	1.8	%	1.4	%

The below table shows certain information for the UK Plan, as of December 31, 2020, when the accumulated benefit obligation was in excess of plan assets (in thousands):

	December 31, 2020
Projected benefit obligation	$	383,142
Accumulated benefit obligation	$	383,142
Fair value of plan assets	$	347,411

The components of net periodic pension cost (income) of the UK Plan for the years ended December 31, 2021, 2020, and 2019 were as follows (in thousands):

	2021		2020		2019
Interest cost	$	5,326	$	6,401	$	7,961
Expected return on plan assets	(12,726)		(12,023)		(12,165)
Amortization of unrecognized loss	3,642		2,389		2,342
Net periodic pension cost (income)	$	(3,758)	$	(3,233)	$	(1,862)

The weighted average assumptions used to determine net periodic pension cost for the years ended December 31, 2021, 2020, and 2019 were as follows:

	2021		2020		2019
Discount rate	1.4	%	2.1	%	2.9	%
Annual rate of return on plan assets	3.9	%	4.3	%	4.9	%

The annual rate of return on plan assets has been determined by modeling possible returns using the actuary’s portfolio return calculator and the fair value of plan assets. This approach models the long term expected returns of the various asset classes held in the portfolio and takes into account the additional benefits of holding a diversified portfolio. For measurement purposes of the liability, the annual rates of inflation of covered pension benefits assumed for 2021 and 2020 were 2.9% and 2.5%, respectively.

Amounts not yet reflected in net periodic pension cost and included in accumulated other comprehensive loss were as follows (in thousands):

	December 31, 2021		December 31, 2020
Unrecognized actuarial losses	$	89,572	$	125,020

Actuarial gains and losses are amortized using a corridor approach whereby cumulative gains and losses in excess of the greater of 10% of the pension benefit obligation or the fair value of plan assets are amortized over the average life expectancy of plan participants. The amortization period for 2021 was 24 years.

The reclassification adjustment, net of income taxes, for the UK Plan from accumulated other comprehensive loss into net periodic pension cost was approximately $2.9 million for the year ended December 31, 2021, and approximately $1.9 million for the years ended December 31, 2020 and 2019. The estimated unrecognized loss for the UK Plan that will be amortized from accumulated other comprehensive loss into net periodic pension cost over the next year is approximately $1.8 million, net of income taxes.

NOTE 14 - RETIREMENT PLANS (Continued)

UK Plan Assets

The investment policies and strategies for the assets of the UK Plan are established by its trustees (who are independent of the Company) to achieve a reasonable balance between risk, likely return, and administration expense, as well as to maintain funds at a level to meet minimum funding requirements. In order to ensure that an appropriate investment strategy is in place, an analysis of the UK Plan’s assets and liabilities is completed periodically. Target allocation percentages vary over time depending on the perceived risk and return potential of various asset classes and market conditions. The weighted average asset allocations and weighted average target allocations at December 31, 2021 and 2020 were as follows:

Asset Category	Target Asset Allocation 2021		Actual December 31, 2021		Target Asset Allocation 2020		Actual December 31, 2020
Debt	75.0	%	76.0	%	65.0	%	63.0	%
Equity	—	%	—	%	15.0	%	12.7	%
Cash and cash equivalents	15.0	%	16.5	%	10.0	%	17.1	%
Real estate	10.0	%	7.5	%	10.0	%	7.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%

Plan assets of our UK Plan are invested through third-party fund managers in various investments with underlying holdings which, as of December 31, 2021 and 2020, consisted of: (a) cash and cash equivalents, primarily held as collateral for other financial instruments, (b) debt securities, which include United Kingdom government debt and United States, United Kingdom, European, and emerging market corporate debt, and (c) real estate assets, which represent trusts which invest directly or indirectly in various properties throughout the United Kingdom. In addition, investment holdings as of December 31, 2020 contained equity securities, which included marketable equity and equity like instruments across developed global equity markets.

The following tables set forth the fair value of assets of the UK Plan as of December 31, 2021 and 2020 (in thousands):

	Assets at Fair Value as of December 31, 2021
Asset Category	Level 1		Level 2		Level 3		Total
Corporate debt funds	$	—	$	67,226	$	—	$	67,226
Government bond funds	—		91,899		—		91,899
Cash and cash equivalents	58,772		—		—		58,772
Total plan assets in fair value hierarchy	$	58,772	$	159,125	$	—	217,897
Plan assets measured using NAV as a practical expedient: (1)
Debt funds							111,971
Real estate funds							26,664
Total plan assets at fair value							$	356,532

	Assets at Fair Value as of December 31, 2020
Asset Category	Level 1		Level 2		Level 3		Total
Corporate debt funds	$	—	$	65,486	$	—	$	65,486
Government bond funds	—		57,133		—		57,133
Equity funds	—		44,132		—		44,132
Cash and cash equivalents	59,246		—		—		59,246
Total plan assets in fair value hierarchy	$	59,246	$	166,751	$	—	225,997
Plan assets measured using NAV as a practical expedient: (1)
Debt funds							96,196
Real estate funds							25,218
Total plan assets at fair value							$	347,411

_________________

(1)Certain investments measured using net asset value (“NAV”) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets.

NOTE 14 - RETIREMENT PLANS (Continued)

Assets of the UK Plan are allocated within the fair value hierarchy discussed in Note 10 - Fair Value Measurements, based on the nature of the investment. Level 1 assets represent cash and cash equivalents. Level 2 assets consist of corporate debt funds, government bond funds, and equity funds whose underlying investments are valued using observable marketplace inputs. The fair value of the Level 2 assets are generally determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields, and quoted prices.

Investments valued using NAV as a practical expedient are excluded from the fair value hierarchy. These investments include: (a) funds which invest predominantly in senior secured debt instruments, targeting diversity across regions and sectors, as well as funds which invest in diversified credit vehicles that seek higher returns than traditional fixed income, primarily through investments in U.S. corporate debt, global credit, and structured debt, and (b) funds which aim to provide long-term income through investment in UK property assets. These investments are redeemable at NAV on a monthly or quarterly basis and have redemption notice periods of up to 90 days. In addition, certain of these investments are subject to a lockup period of up to 24 months.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes the valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Cash Flows:

Contributions

Our United Kingdom subsidiary expects to contribute approximately $4.5 million to the UK Plan in 2022.

Estimated Future Benefit Payments

The following estimated benefit payments are expected to be paid in the following years (in thousands):

	Pension Benefit Payments
2022	$	11,266
2023	$	11,171
2024	$	11,525
2025	$	12,099
2026	$	12,545
Succeeding five years	$	69,416

We also sponsor three domestic retirement plans in which participation by new individuals is frozen. The benefit obligation associated with these plans as of December 31, 2021 and 2020 was approximately $8.5 million and $9.2 million, respectively. The estimated fair value of the plan assets as of December 31, 2021 and 2020 was approximately $6.3 million and $6.0 million, respectively. The plan assets are considered Level 1 assets within the fair value hierarchy and are predominantly invested in cash, equities, and equity and bond funds. The liability balances as of December 31, 2021 and 2020 are classified as “Other long-term obligations” in the accompanying Consolidated Balance Sheets. The measurement date for these plans is December 31 of each year. The major assumptions used in the actuarial valuations to determine benefit obligations as of December 31, 2021 and 2020 included discount rates of 2.40% to 2.50% for 2021 and 2.00% to 2.25% for 2020. Also, included was an expected rate of return of 7.00% for both 2021 and 2020. The net periodic pension cost associated with the domestic plans was approximately $0.1 million for the year ended December 31, 2021 and $0.3 million for each of the years ended December 31, 2020 and 2019. The reclassification adjustment, net of income taxes, from accumulated other comprehensive loss into net periodic pension cost was approximately $0.3 million for each of the years ended December 31, 2021 and 2020, and approximately $0.2 million for the year ended December 31, 2019. The estimated loss for these plans that will be amortized from accumulated other comprehensive loss into net periodic pension cost over the next year is approximately $0.1 million, net of income taxes. The future estimated benefit payments expected to be paid from the plans for the next ten years is approximately $0.6 million per year.

NOTE 14 - RETIREMENT PLANS (Continued)

Defined Contribution Plans

We have defined contribution retirement and savings plans that cover eligible employees in the United States. Contributions to these plans are based on a percentage of the employee’s base compensation. The expenses recognized for employer contributions to these plans were approximately $33.0 million for the year ended December 31, 2021 and approximately $32.4 million for each of the years ended December 31, 2020 and 2019. At our discretion and subject to applicable plan documents, we may make additional supplemental matching contributions to one of our defined contribution retirement and savings plans. The expenses recognized related to additional supplemental matching contributions for the years ended December 31, 2021, 2020, and 2019 were approximately $7.7 million, $9.1 million, and $6.8 million, respectively.

Our United Kingdom subsidiary also has defined contribution retirement plans. The expense recognized related to employer matching contributions for the years ended December 31, 2021, 2020, and 2019 was approximately $8.3 million, $7.4 million, and $6.1 million, respectively.

Multiemployer Plans

We participate in approximately 200 multiemployer pension plans (“MEPPs”) that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements (“CBAs”). As one of many participating employers in an MEPP, we are potentially liable with the other participating employers for any plan underfunding, either through an increase in our required contributions or, in the case of our withdrawal from the plan, a payment based upon our proportionate share of the plan's unfunded benefits, in each case, as described below. Our contributions to a particular MEPP are established by the applicable CBAs; however, our required contributions may increase based on the funded status of an MEPP and legal requirements of the Pension Protection Act of 2006 (the “PPA”), which requires substantially underfunded MEPPs to implement a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) to improve their funded status. Factors that could impact the funded status of an MEPP include, without limitation, investment performance, changes in the participant demographics, decline in the number of contributing employers, changes in actuarial assumptions, and the utilization of extended amortization provisions.

An FIP or RP requires a particular MEPP to adopt measures to correct its underfunding status. These measures may include, but are not limited to: (a) an increase in our contribution rate as a signatory to the applicable CBA, (b) a reallocation of the contributions already being made by participating employers for various benefits to individuals participating in the MEPP, and/or (c) a reduction in the benefits to be paid to future and/or current retirees. In addition, the PPA requires that a 5% surcharge be levied on employer contributions for the first year commencing after the date the employer receives notice that the MEPP is in critical status and a 10% surcharge on each succeeding year until a CBA is in place with terms and conditions consistent with the RP.

We could also be obligated to make payments to MEPPs if we either cease to have an obligation to contribute to the MEPP or significantly reduce our contributions to the MEPP because we reduce our number of employees who are covered by the relevant MEPP for various reasons, including, but not limited to, layoffs or closure of a subsidiary assuming the MEPP has unfunded vested benefits. The amount of such payments (known as a complete or partial withdrawal liability) would equal our proportionate share of the MEPPs’ unfunded vested benefits. We believe that certain of the MEPPs in which we participate may have unfunded vested benefits. Due to uncertainty regarding future factors that could trigger withdrawal liability, as well as the absence of specific information regarding the MEPP’s current financial situation, we are unable to determine: (a) the amount and timing of a future withdrawal liability, if any, and (b) whether our participation in these MEPPs could have a material adverse impact on our financial position, results of operations, or liquidity. We did not record any withdrawal liability for the years ended December 31, 2021, 2020, and 2019.

NOTE 14 - RETIREMENT PLANS (Continued)

The following table lists all MEPPs to which our contributions exceeded $2.0 million in 2021. This table also lists all MEPPs to which we contributed in 2021 in excess of $0.5 million for MEPPs in the critical status, “red zone,” and $1.0 million for MEPPs in the endangered status, “orange or yellow zones,” as defined by the PPA (in thousands):

Pension Fund	EIN/Pension Plan Number		PPA Zone Status (1)		FIP/RP Status	Contributions						Contributions greater than 5% of total plan contributions (2)	Expiration date or range of expiration dates of CBA(s)
			2021	2020		2021		2020		2019
National Automatic Sprinkler Industry Pension Fund	52-6054620	001	Green	Red	NA	$	20,987	$	17,504	$	15,924	Yes	March 2022 to August 2025
United Association National Pension Fund (Formerly Plumbers & Pipefitters National Pension Fund)	52-6152779	001	Green	Yellow	NA	14,723		14,095		13,821		No	February 2022 to August 2026
National Electrical Benefit Fund	53-0181657	001	Green	Green	NA	12,310		11,573		16,901		No	April 2022 to May 2026
Pension, Hospitalization & Benefit Plan of the Electrical Industry-Pension Trust Account	13-6123601	001	Green	Green	NA	12,291		11,264		10,075		No	April 2022 to June 2024
Sheet Metal Workers National Pension Fund	52-6112463	001	Yellow	Yellow	Implemented	10,307		11,621		11,713		No	May 2022 to July 2027
Electrical Workers Local No. 26 Pension Trust Fund	52-6117919	001	Green	Green	NA	9,346		7,086		8,434		Yes	May 2022 to July 2024
Sheet Metal Workers Pension Plan of Northern California	51-6115939	001	Red	Red	Implemented	7,850		6,605		6,233		No	June 2022 to June 2026
Plumbers Pipefitters & Mechanical Equipment Service Local Union 392 Pension Plan	31-0655223	001	Red	Red	Implemented	7,110		5,667		6,412		Yes	June 2022
Central Pension Fund of the IUOE & Participating Employers	36-6052390	001	Green	Green	NA	6,627		6,115		6,253		No	March 2022 to December 2024
Southern California Pipe Trades Retirement Fund	51-6108443	001	Green	Green	NA	6,272		4,043		3,274		No	June 2022 to August 2026
Pipefitters Union Local 537 Pension Fund	51-6030859	001	Green	Green	NA	5,922		4,275		4,754		Yes	February 2022 to August 2025
Heating, Piping & Refrigeration Pension Fund	52-1058013	001	Green	Green	NA	5,591		3,349		4,185		No	July 2022
Southern California IBEW-NECA Pension Trust Fund	95-6392774	001	Yellow	Yellow	Implemented	4,876		5,719		6,277		No	June 2022 to May 2026
Edison Pension Plan	93-6061681	001	Green	Green	NA	4,229		3,864		5,361		Yes	December 2023
Electrical Contractors Association of the City of Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Pension Plan 2	51-6030753	002	Green	Green	NA	4,225		3,004		3,204		No	May 2022 to June 2022
Arizona Pipe Trades Pension Trust Fund	86-6025734	001	Green	Green	NA	4,076		4,142		6,071		Yes	May 2022 to June 2024
San Diego Electrical Pension Plan	95-6101801	001	Green	Green	NA	4,068		4,383		3,843		Yes	May 2024
U.A. Local 393 Pension Trust Fund Defined Benefit	94-6359772	002	Green	Green	NA	3,507		3,168		3,858		Yes	June 2022 to June 2024
Boilermaker-Blacksmith National Pension Trust	48-6168020	001	Yellow	Yellow	Implemented	3,479		1,574		1,681		No	April 2022 to September 2024
Sheet Metal Workers Pension Plan of Southern California, Arizona & Nevada	95-6052257	001	Yellow	Yellow	Implemented	3,322		2,706		2,423		No	June 2022 to June 2026
Eighth District Electrical Pension Fund	84-6100393	001	Green	Green	NA	3,298		3,242		3,590		Yes	May 2023 to August 2024
Northern California Pipe Trades Pension Plan	94-3190386	001	Green	Green	NA	2,663		2,463		3,077		No	June 2022 to June 2024

NOTE 14 - RETIREMENT PLANS (Continued)
Pension Fund	EIN/Pension Plan Number		PPA Zone Status (1)		FIP/RP Status	Contributions						Contributions greater than 5% of total plan contributions (2)	Expiration date or range of expiration dates of CBA(s)
			2021	2020		2021		2020		2019
Atlanta Plumbers and Steamfitters Pension Fund	58-1233396	001	Green	Green	NA	2,496		1,576		310		Yes	May 2022 to January 2025
NECA-IBEW Pension Trust Fund	51-6029903	001	Green	Green	NA	2,491		2,369		2,528		No	May 2022 to December 2022
IBEW 332 Pension Fund - Part A	94-2688032	004	Green	Green	NA	2,339		1,211		1,633		No	May 2024
U.A. Plumbers Local 24 Pension Fund	22-6042823	001	Green	Green	NA	2,270		2,460		2,460		Yes	April 2025
IBEW Local 595 Pension Plan	94-6279541	001	Green	Green	NA	2,042		569		1,653		No	November 2022 to May 2023
Plumbing & Pipe Fitting Local 219 Pension Fund	34-6682376	001	Red	Red	Implemented	1,167		1,680		1,937		Yes	May 2022 to May 2025
Plumbers & Pipefitters Local 162 Pension Fund	31-6125999	001	Yellow	Yellow	Implemented	1,034		969		1,124		Yes	May 2022
Steamfitters Local Union No. 420 Pension Plan	23-2004424	001	Red	Red	Implemented	677		553		641		No	May 2022 to April 2024
South Florida Electrical Workers Pension Plan and Trust	59-6230530	001	Red	Red	Implemented	594		261		323		No	August 2022
Carpenters Pension Trust Fund for Northern California	94-6050970	001	Red	Red	Implemented	568		385		435		No	June 2023
Other Multiemployer Pension Plans						55,315		54,587		55,070			Various
Total Contributions						$	228,072	$	204,082	$	215,478

 _________________

(1)    The zone status represents the most recent available information for the respective MEPP, which may be 2020 or earlier for the 2021 year and 2019 or earlier for the 2020 year. In general, plans with a “green” zone status have a funding ratio of at least 80%, plans with an “orange” or “yellow” zone status have a funding ratio of between 65% and less than 80%, and plans with a “red” zone status are less than 65% funded.

(2)    This information was obtained from the respective plan’s Form 5500 (“Forms”) for the most current available filing. These dates may not correspond with our fiscal year contributions. The percentages of contributions are based upon disclosures contained in the plans’ Forms. Those Forms, among other things, disclose the names of individual participating employers whose annual contributions account for more than 5% of the aggregate annual amount contributed by all participating employers for a plan year. Accordingly, if the annual contribution of two or more of our subsidiaries each accounted for less than 5% of such contributions, but in the aggregate accounted for in excess of 5% of such contributions, that greater percentage is not available and accordingly is not disclosed.

The nature and diversity of our operations may result in volatility in the amount of our contributions to a particular MEPP for any given period. That is because, in any given market, a change in the mix, volume of, or size of our projects could result in a change in our direct labor force and a corresponding change in our contributions to the MEPP(s) dictated by the applicable CBA. Additionally, the amount of contributions to a particular MEPP could also be affected by the terms of the CBA, which could require at a particular time, an increase in the contribution rate and/or surcharges. Acquisitions made by us since 2019 have resulted in incremental contributions to various MEPPs of approximately $3.8 million.

Additionally, we contribute to certain multiemployer plans that provide post retirement benefits such as health and welfare benefits and/or defined contribution/annuity plans, among others. Our contributions to these plans were approximately $168.4 million, $156.1 million, and $153.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. Acquisitions made by use since 2019 have resulted in incremental contributions to such other post retirement benefit plans of approximately $2.9 million. The amount of contributions to these plans is also subject, for the most part, to the factors discussed above in conjunction with the MEPPs.