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Revenue from Contracts with Customers Revenue from Contracts with Customers (Tables) | 9 Months Ended
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Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Disaggregation of Revenue | The following tables provide further disaggregation of our revenues by categories we use to evaluate our financial performance within each of our reportable segments (in thousands):
| For the three months ended September 30, 2018 |  | % of Total |  | For the nine months ended September 30, 2018 |  | % of Total
United States electrical construction and facilities services: |  |  |  |  |  |  |
Commercial market sector | $ | 196,293 |  |  | 40 | % |  | $ | 579,958 |  |  | 41 | %
Institutional market sector | 27,903 |  |  | 6 | % |  | 86,971 |  |  | 6 | %
Hospitality market sector | 9,860 |  |  | 2 | % |  | 22,665 |  |  | 2 | %
Manufacturing market sector | 100,563 |  |  | 20 | % |  | 280,375 |  |  | 20 | %
Healthcare market sector | 28,121 |  |  | 6 | % |  | 103,307 |  |  | 7 | %
Transportation market sector | 72,816 |  |  | 15 | % |  | 216,591 |  |  | 15 | %
Water and wastewater market sector | 4,194 |  |  | 1 | % |  | 14,947 |  |  | 1 | %
Short duration projects (1) | 38,452 |  |  | 8 | % |  | 93,177 |  |  | 6 | %
Service work | 8,147 |  |  | 2 | % |  | 25,151 |  |  | 2 | %
| 486,349 |  |  |  |  | 1,423,142 |  |  |
Less intersegment revenues | (375 | ) |  |  |  |  | (2,874 | ) |  |
Total segment revenues | $ | 485,974 |  |  |  |  | $ | 1,420,268 |  |  |
United States mechanical construction and facilities services: |  |  |  |  |  |  |
Commercial market sector | $ | 289,032 |  |  | 37 | % |  | $ | 784,543 |  |  | 35 | %
Institutional market sector | 78,084 |  |  | 10 | % |  | 221,790 |  |  | 10 | %
Hospitality market sector | 26,170 |  |  | 3 | % |  | 73,888 |  |  | 3 | %
Manufacturing market sector | 96,203 |  |  | 12 | % |  | 295,126 |  |  | 13 | %
Healthcare market sector | 55,844 |  |  | 7 | % |  | 181,964 |  |  | 8 | %
Transportation market sector | 3,072 |  |  | 1 | % |  | 13,002 |  |  | 1 | %
Water and wastewater market sector | 43,032 |  |  | 6 | % |  | 122,302 |  |  | 6 | %
Short duration projects (1) | 76,711 |  |  | 10 | % |  | 236,720 |  |  | 11 | %
Service work | 107,168 |  |  | 14 | % |  | 291,694 |  |  | 13 | %
| 775,316 |  |  |  |  | 2,221,029 |  |  |
Less intersegment revenues | (2,984 | ) |  |  |  |  | (9,193 | ) |  |
Total segment revenues | $ | 772,332 |  |  |  |  | $ | 2,211,836 |  |  |
________
(1) | Represents those projects which generally are completed within three months or less.
| For the three months ended September 30, 2018 |  | % of Total |  | For the nine months ended September 30, 2018 |  | % of Total
United States building services: |  |  |  |  |  |  |
Commercial site-based services | $ | 120,917 |  |  | 26 | % |  | $ | 386,721 |  |  | 28 | %
Government site-based services | 52,332 |  |  | 11 | % |  | 162,888 |  |  | 12 | %
Mechanical services | 276,722 |  |  | 58 | % |  | 764,313 |  |  | 55 | %
Energy services | 23,730 |  |  | 5 | % |  | 75,564 |  |  | 5 | %
Total segment revenues | $ | 473,701 |  |  |  |  | $ | 1,389,486 |  |  |
United States industrial services: |  |  |  |  |  |  |
Field services | $ | 169,036 |  |  | 79 | % |  | $ | 442,653 |  |  | 78 | %
Shop services | 45,440 |  |  | 21 | % |  | 124,117 |  |  | 22 | %
Total segment revenues | $ | 214,476 |  |  |  |  | $ | 566,770 |  |  |
Total United States operations | $ | 1,946,483 |  |  |  |  | $ | 5,588,360 |  |  |
United Kingdom building services: |  |  |  |  |  |  |
Service work | $ | 51,815 |  |  | 52 | % |  | $ | 162,088 |  |  | 52 | %
Projects & extras | 48,751 |  |  | 48 | % |  | 150,875 |  |  | 48 | %
Total segment revenues | $ | 100,566 |  |  |  |  | $ | 312,963 |  |  |
Total worldwide operations | $ | 2,047,049 |  |  |  |  | $ | 5,901,323 |  |  |
Contract Assets and Contract Liabilities | Net contract liabilities consisted of the following (in thousands):
| September 30, 2018 |  | December 31, 2017
Contract assets, current | $ | 168,665 |  |  | $ | 122,621 |
Contract assets, non-current | — |  |  | — |
Contract liabilities, current | (531,284 | ) |  | (524,156 | )
Contract liabilities, non-current | (2,905 | ) |  | — |
Deferred revenue (1) | — |  |  | (47,328 | )
Net contract liabilities | $ | (365,524 | ) |  | $ | (448,863 | )
________ (1) Represents deferred revenue on service contracts, which was included in “Accrued expenses and other” and “Other long-term liabilities” in the Condensed Consolidated Balance Sheet as of December 31 2017. For the periods after December 31, 2017, these amounts are included within “Contract liabilities.”
Remaining Performance Obligations | The following table presents the transaction price allocated to remaining unsatisfied performance obligations (“remaining performance obligations”) for each of our reportable segments and their respective percentages of total remaining performance obligations (in thousands, except for percentages):
| September 30, 2018 |  | % of Total
Remaining performance obligations: |  |  |
United States electrical construction and facilities services | $ | 1,181,620 |  |  | 30 | %
United States mechanical construction and facilities services | 2,152,271 |  |  | 54 | %
United States building services | 434,386 |  |  | 11 | %
United States industrial services | 74,659 |  |  | 2 | %
Total United States operations | 3,842,936 |  |  | 97 | %
United Kingdom building services | 126,732 |  |  | 3 | %
Total worldwide operations | $ | 3,969,668 |  |  | 100 | %
Remaining Performance Obligations, Expected Timing of Satisfaction | Refer to the table below for additional information regarding our remaining performance obligations, including an estimate of when we expect to recognize such remaining performance obligations as revenue (in thousands):
| Within one year |  | Greater than one year
Remaining performance obligations: |  |  |
United States electrical construction and facilities services | $ | 1,054,046 |  |  | $ | 127,574 |
United States mechanical construction and facilities services | 1,571,103 |  |  | 581,168 |
United States building services | 421,903 |  |  | 12,483 |
United States industrial services | 74,659 |  |  | — |
Total United States operations | 3,121,711 |  |  | 721,225 |
United Kingdom building services | 76,905 |  |  | 49,827 |
Total worldwide operations | $ | 3,198,616 |  |  | $ | 771,052 |
Schedule of Changes in Accounting Principles | The following tables compare the differences between our reported and pro forma results under previous revenue guidance for each financial statement line item within our reported Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations, as of and for the three and nine months ended September 30, 2018 (in thousands):
| As reported |  | Pro forma
| September 30, 2018 (Unaudited)
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 353,912 |  |  | $ | 353,912 |
Accounts receivable | 1,715,462 |  |  | 1,715,012 |
Contract assets | 168,665 |  |  | 162,481 |
Inventories | 41,932 |  |  | 50,019 |
Prepaid expenses and other | 44,221 |  |  | 43,068 |
Total current assets | 2,324,192 |  |  | 2,324,492 |
Investments, notes and other long-term receivables | 3,542 |  |  | 3,542 |
Property, plant and equipment, net | 128,765 |  |  | 128,765 |
Goodwill | 978,243 |  |  | 978,243 |
Identifiable intangible assets, net | 471,447 |  |  | 471,447 |
Other assets | 89,704 |  |  | 89,704 |
Total assets | $ | 3,995,893 |  |  | $ | 3,996,193 |
LIABILITIES AND EQUITY |  |  |
Current liabilities: |  |  |
Current maturities of long-term debt and capital lease obligations | $ | 15,769 |  |  | $ | 15,769 |
Accounts payable | 529,618 |  |  | 529,618 |
Contract liabilities | 531,284 |  |  | 486,518 |
Accrued payroll and benefits | 343,797 |  |  | 343,797 |
Other accrued expenses and liabilities | 169,100 |  |  | 213,048 |
Total current liabilities | 1,589,568 |  |  | 1,588,750 |
Borrowings under revolving credit facility | 25,000 |  |  | 25,000 |
Long-term debt and capital lease obligations | 258,569 |  |  | 258,569 |
Other long-term obligations | 343,630 |  |  | 343,998 |
Total liabilities | 2,216,767 |  |  | 2,216,317 |
Total equity | 1,779,126 |  |  | 1,779,876 |
Total liabilities and equity | $ | 3,995,893 |  |  | $ | 3,996,193 |
| As reported |  | Pro forma |  | As reported |  | Pro forma
| For the three months ended September 30, 2018 (Unaudited) |  | For the nine months ended September 30, 2018 (Unaudited)
Revenues | $ | 2,047,049 |  |  | $ | 2,038,281 |  |  | $ | 5,901,323 |  |  | $ | 5,893,227 |
Cost of sales | 1,737,710 |  |  | 1,732,027 |  |  | 5,032,021 |  |  | 5,028,089 |
Gross profit | 309,339 |  |  | 306,254 |  |  | 869,302 |  |  | 865,138 |
Selling, general and administrative expenses | 197,334 |  |  | 197,334 |  |  | 578,266 |  |  | 578,266 |
Restructuring expenses | 229 |  |  | 229 |  |  | 693 |  |  | 693 |
Impairment loss on identifiable intangible assets | — |  |  | — |  |  | 907 |  |  | 907 |
Operating income | 111,776 |  |  | 108,691 |  |  | 289,436 |  |  | 285,272 |
Net periodic pension (cost) income | 615 |  |  | 615 |  |  | 2,069 |  |  | 2,069 |
Interest expense | (3,588 | ) |  | (3,588 | ) |  | (10,041 | ) |  | (10,041 | )
Interest income | 852 |  |  | 852 |  |  | 2,030 |  |  | 2,030 |
Income from continuing operations before income taxes | 109,655 |  |  | 106,570 |  |  | 283,494 |  |  | 279,330 |
Income tax provision | 29,711 |  |  | 28,875 |  |  | 76,873 |  |  | 75,744 |
Income from continuing operations | 79,944 |  |  | 77,695 |  |  | 206,621 |  |  | 203,586 |
Loss from discontinued operation, net of income taxes | (523 | ) |  | (523 | ) |  | (1,010 | ) |  | (1,010 | )
Net income including noncontrolling interests | 79,421 |  |  | 77,172 |  |  | 205,611 |  |  | 202,576 |
Less: Net income attributable to noncontrolling interests | (48 | ) |  | (48 | ) |  | (48 | ) |  | (48 | )
Net income attributable to EMCOR Group, Inc. | $ | 79,373 |  |  | $ | 77,124 |  |  | $ | 205,563 |  |  | $ | 202,528 |
Basic earnings per common share: |  |  |  |  |  |  |
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 1.37 |  |  | $ | 1.33 |  |  | $ | 3.54 |  |  | $ | 3.48 |
Diluted earnings per common share: |  |  |  |  |  |  |
From continuing operations attributable to EMCOR Group, Inc. common stockholders | $ | 1.36 |  |  | $ | 1.33 |  |  | $ | 3.52 |  |  | $ | 3.46 |

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