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Retirement Plans
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 consisted of the following components (in thousands):
 20222021
Change in pension benefit obligation  
Benefit obligation at beginning of year$349,147 $383,142 
Interest cost5,693 5,326 
Actuarial gain(116,372)(22,071)
Benefits paid(11,095)(13,939)
Foreign currency exchange rate changes(33,417)(3,311)
Benefit obligation at end of year193,956 349,147 
Change in pension plan assets  
Fair value of plan assets at beginning of year356,532 347,411 
Actual (loss) return on plan assets(105,544)21,809 
Employer contributions4,875 4,956 
Benefits paid(11,095)(13,939)
Foreign currency exchange rate changes(34,484)(3,705)
Fair value of plan assets at end of year210,284 356,532 
Funded status at end of year$16,328 $7,385 
The funded status of the UK Plan of $16.3 million and $7.4 million at December 31, 2022 and 2021, respectively, is included in “Other Assets” in the accompanying Consolidated Balance Sheets. No plan assets are expected to be returned to us during the year ending December 31, 2023.
NOTE 14 - RETIREMENT PLANS (Continued)
The weighted average assumptions used to determine benefit obligations of the UK Plan as of December 31, 2022 and 2021 were as follows:
 20222021
Discount rate5.0 %1.8 %
The components of net periodic pension cost (income) of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands):
 202220212020
Interest cost$5,693 $5,326 $6,401 
Expected return on plan assets(12,088)(12,726)(12,023)
Amortization of unrecognized loss2,073 3,642 2,389 
Net periodic pension cost (income)$(4,322)$(3,758)$(3,233)
The weighted average assumptions used to determine net periodic pension cost of the UK Plan for the years ended December 31, 2022, 2021, and 2020 were as follows:
 202220212020
Discount rate1.8 %1.4 %2.1 %
Annual rate of return on plan assets3.9 %3.9 %4.3 %
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 2022 and 2021 were 2.8% and 2.9%, respectively.
Amounts pertaining to the UK Plan not yet reflected in net periodic pension cost and included in accumulated other comprehensive loss were as follows (in thousands):
 December 31, 2022December 31, 2021
Unrecognized actuarial losses$79,313 $89,572 
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 2022 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 $1.6 million for the year ended December 31, 2022, approximately $2.9 million for the year ended December 31, 2021, and approximately $1.9 million for the year ended December 31, 2020. 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 $1.9 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, 2022 and 2021 were as follows:
 
Asset CategoryTarget
Asset
Allocation		Actual
December 31, 2022		Actual
December 31, 2021
Debt75.0 %80.7 %76.0 %
Cash and cash equivalents15.0 %9.4 %16.5 %
Real estate10.0 %9.9 %7.5 %
Total100.0 %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, 2022 and 2021, 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.
The following tables set forth the fair value of assets of the UK Plan as of December 31, 2022 and 2021 (in thousands):
 Assets at Fair Value as of December 31, 2022
Asset Category    Level 1Level 2Level 3Total
Corporate debt funds$— $23,998 $— $23,998 
Government bond funds— 45,619 — 45,619 
Cash and cash equivalents19,829 — — 19,829 
Total plan assets in fair value hierarchy$19,829 $69,617 $— 89,446 
Plan assets measured using NAV as a practical expedient: (1)
Debt funds99,990 
Real estate funds20,848 
Total plan assets at fair value$210,284 
 Assets at Fair Value as of December 31, 2021
Asset Category    Level 1Level 2Level 3Total
Corporate debt funds$— $67,226 $— $67,226 
Government bond funds— 91,899 — 91,899 
Cash and cash equivalents58,772 — — 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 funds111,971 
Real estate funds26,664 
Total plan assets at fair value$356,532 
_________________
(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 and government bond 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 investments, primarily through U.S. corporate debt, global credit, and structured debt instruments, 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.
Contributions
Our United Kingdom subsidiary expects to contribute approximately $1.3 million to the UK Plan in 2023.
Estimated Future Benefit Payments
The following estimated benefit payments are expected to be made from the UK Plan in the following years (in thousands):
 Pension
Benefit Payments
2023$9,884 
2024$10,201 
2025$10,627 
2026$11,106 
2027$11,476 
Succeeding five years$63,182 
We also sponsor three domestic retirement plans in which participation by new individuals is frozen. The aggregate benefit obligation associated with these plans as of December 31, 2022 and 2021 was approximately $6.7 million and $8.5 million, respectively. The estimated fair value of the plan assets as of December 31, 2022 and 2021 was approximately $4.9 million and $6.3 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, 2022 and 2021 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, 2022 and 2021 included discount rates of approximately 4.80% for 2022 and 2.40% to 2.50% for 2021. Also included was an expected rate of return of 7.00% for both 2022 and 2021. The net periodic pension cost associated with the domestic plans, as well as the reclassification adjustment from accumulated other comprehensive loss to net periodic pension cost, were insignificant for all periods presented. The future estimated benefit payments expected to be made from the plans for the next ten years is approximately $0.5 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 $35.0 million for the year ended December 31, 2022, $33.0 million for the year ended December 31, 2021, and $32.4 million for the year ended December 31, 2020. 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, 2022, 2021, and 2020 were approximately $9.2 million, $7.7 million, and $9.1 million, respectively.
Our United Kingdom subsidiary also has defined contribution retirement plans. The expenses recognized related to employer matching contributions for the years ended December 31, 2022, 2021, and 2020 were approximately $7.3 million, $8.3 million, and $7.4 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 material withdrawal liabilities for the years ended December 31, 2022, 2021, and 2020.
NOTE 14 - RETIREMENT PLANS (Continued)
The following table lists all MEPPs to which our contributions exceeded $2.0 million in 2022. This table also lists all MEPPs to which we contributed in 2022 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 FundEIN/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)
20222021202220212020
National Automatic Sprinkler Industry Pension Fund52-6054620001GreenGreenNA$21,583 $20,987 $17,504 YesMay 2023 to
July 2027
United Association National Pension Fund (Formerly Plumbers & Pipefitters National Pension Fund)52-6152779001GreenGreenNA15,288 14,723 14,095 NoFebruary 2023 to
July 2027
National Electrical Benefit Fund53-0181657001GreenGreenNA15,192 12,310 11,573 NoMay 2023 to
May 2027
Sheet Metal Workers National Pension Fund52-6112463001GreenYellowNA9,505 10,307 11,621 NoMay 2023 to
June 2026
Pension, Hospitalization & Benefit Plan of the Electrical Industry-Pension Trust Account13-6123601001GreenGreenNA8,122 7,355 6,750 NoApril 2023 to
April 2025
Electrical Workers Local No. 26 Pension Trust Fund52-6117919001GreenGreenNA7,844 9,346 7,086 YesMay 2023 to August 2024
Plumbers Pipefitters & Mechanical Equipment Service Local Union 392 Pension Plan31-0655223001RedRedImplemented7,674 7,110 5,667 YesMay 2025
Central Pension Fund of the IUOE & Participating Employers36-6052390001GreenGreenNA7,651 6,627 6,115 NoMarch 2023 to
December 2026
Boilermaker-Blacksmith National Pension Trust48-6168020001GreenYellowNA6,434 3,479 1,574 NoSeptember 2023 to
April 2025
Sheet Metal Workers Pension Plan of Northern California51-6115939001RedRedImplemented6,074 7,850 6,605 NoJune 2023 to June 2026
Edison Pension Plan93-6061681001GreenGreenNA5,325 4,229 3,864 YesDecember 2023
Pipefitters Union Local 537 Pension Fund51-6030859001GreenGreenNA5,039 5,922 4,275 YesAugust 2025
Southern California Pipe Trades Retirement Fund51-6108443001GreenGreenNA4,650 6,272 4,043 NoAugust 2023 to August 2026
Heating, Piping & Refrigeration Pension Fund52-1058013001GreenGreenNA4,625 5,591 3,349 YesJuly 2023 to July 2025
Southern California IBEW-NECA Pension Trust Fund95-6392774001YellowYellowImplemented4,287 4,876 5,719 NoJune 2023 to
May 2026
San Diego Electrical Pension Plan95-6101801001GreenGreenNA4,258 4,068 4,383 YesMay 2024
IBEW 332 Pension Fund - Part A94-2688032004GreenGreenNA4,177 2,339 1,211 NoMay 2023 to May 2024
U.A. Local 393 Pension Trust Fund Defined Benefit94-6359772002GreenGreenNA3,517 3,507 3,168 YesJune 2023 to July 2027
Electrical Contractors Association of the City of Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Pension Plan 251-6030753002GreenGreenNA3,516 4,225 3,004 NoJune 2023
Eighth District Electrical Pension Fund84-6100393001GreenGreenNA3,339 3,298 3,242 YesMay 2023 to August 2024
Northern California Pipe Trades Pension Plan94-3190386001GreenGreenNA3,238 2,663 2,463 NoJune 2023 to June 2024
NOTE 14 - RETIREMENT PLANS (Continued)
Pension FundEIN/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)
20222021202220212020
NECA-IBEW Pension Trust Fund51-6029903001GreenGreenNA3,034 2,491 2,369 NoMay 2023 to December 2023
Arizona Pipe Trades Pension Trust Fund86-6025734001GreenGreenNA2,940 2,020 2,301 YesJune 2023 to June 2024
Sheet Metal Workers Pension Plan of Southern California, Arizona & Nevada95-6052257001GreenYellowNA2,921 3,322 2,706 NoJune 2023 to June 2026
Electrical Workers Pension Plan Local 103 IBEW04-6063734001GreenGreenNA2,900 — — YesAugust 2023
IBEW Local 701 Pension Fund36-6455509001GreenGreenNA2,625 1,276 1,197 YesMay 2023 to September 2023
IBEW Local No. 82 Pension Plan31-6127268001GreenGreenNA2,549 956 18 YesDecember 2023 to October 2025
Local No. 697 IBEW and Electrical Industry Pension Fund51-6133048001GreenGreenNA2,287 1,753 1,583 YesMay 2023
U.A. Local 38 Defined Benefit Pension Fund94-1285319001GreenGreenNA2,010 1,903 2,874 NoJune 2023
Plumbing & Pipe Fitting Local 219 Pension Fund34-6682376001RedRedImplemented1,172 1,167 1,680 YesMay 2023
Plumbers & Pipefitters Local 162 Pension Fund31-6125999001YellowYellowImplemented1,132 1,034 969 YesMay 2023
Steamfitters Local Union No. 420 Pension Plan23-2004424001RedRedImplemented1,018 677 553 NoMay 2023 to April 2024
Carpenters Pension Trust Fund for Northern California94-6050970001RedRedImplemented532 568 385 NoJune 2023
Other Multiemployer Pension Plans    59,707 56,830 53,780  Various
Total Contributions    $236,165 $221,081 $197,726   
 _________________
(1)    The zone status represents the most recent available information for the respective MEPP, which may be 2021 or earlier for the 2022 year and 2020 or earlier for the 2021 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 therefore 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 2020 have resulted in incremental contributions to various MEPPs of approximately $8.8 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 $213.7 million, $178.4 million, and $162.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. Acquisitions made by use since 2020 have resulted in incremental contributions to such other post retirement benefit plans of approximately $18.7 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.