000010563412/312021Q1FALSE54,556,40318,06318,0311,000,0001,000,0000.100.100.010.01200,000,000200,000,00060,662,38360,571,1405,932,7045,815,240111111111111At the Company’s election, borrowings under the 2020 Credit Agreement bear interest at either: (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (0.11% at March 31, 2021) 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 (3.25 at March 31, 2021), (b) the federal funds effective rate, plus 1/2 of 1.00%, (c) the daily one month LIBOR rate, plus 1.00%, or (d) 0.00%. The interest rate in effect at March 31, 2021 was 1.11%. A commitment fee is payable on the average daily unused amount of the 2020 Revolving Credit Facility, which ranges from 0.10% to 0.25%, based on certain financial tests. The fee was 0.10% of the unused amount as of March 31, 2021. Fees for letters of credit issued under the 2020 Revolving Credit Facility range from 0.75% to 1.75% of the respective face amounts of outstanding letters of credit, depending on the nature of the letter of credit, and are computed based on certain financial tests.0.5071.3270.6100,00000001056342021-01-012021-03-31xbrli:shares00001056342021-04-27iso4217:USD00001056342021-03-3100001056342020-12-31iso4217:USDxbrli:shares00001056342020-01-012020-03-3100001056342019-12-3100001056342020-03-310000105634us-gaap:CommonStockMember2019-12-310000105634us-gaap:AdditionalPaidInCapitalMember2019-12-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000105634us-gaap:RetainedEarningsMember2019-12-310000105634us-gaap:TreasuryStockMember2019-12-310000105634us-gaap:NoncontrollingInterestMember2019-12-310000105634us-gaap:RetainedEarningsMember2020-01-012020-03-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000105634us-gaap:CommonStockMember2020-01-012020-03-310000105634us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000105634us-gaap:TreasuryStockMember2020-01-012020-03-310000105634us-gaap:CommonStockMember2020-03-310000105634us-gaap:AdditionalPaidInCapitalMember2020-03-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000105634us-gaap:RetainedEarningsMember2020-03-310000105634us-gaap:TreasuryStockMember2020-03-310000105634us-gaap:NoncontrollingInterestMember2020-03-310000105634us-gaap:CommonStockMember2020-12-310000105634us-gaap:AdditionalPaidInCapitalMember2020-12-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000105634us-gaap:RetainedEarningsMember2020-12-310000105634us-gaap:TreasuryStockMember2020-12-310000105634us-gaap:NoncontrollingInterestMember2020-12-310000105634us-gaap:RetainedEarningsMember2021-01-012021-03-310000105634us-gaap:NoncontrollingInterestMember2021-01-012021-03-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000105634us-gaap:CommonStockMember2021-01-012021-03-310000105634us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000105634us-gaap:TreasuryStockMember2021-01-012021-03-310000105634us-gaap:CommonStockMember2021-03-310000105634us-gaap:AdditionalPaidInCapitalMember2021-03-310000105634us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000105634us-gaap:RetainedEarningsMember2021-03-310000105634us-gaap:TreasuryStockMember2021-03-310000105634us-gaap:NoncontrollingInterestMember2021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:CommercialMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-31xbrli:pure0000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:CommercialMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:InstitutionalMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:InstitutionalMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMembereme:HospitalityMarketSectorMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMembereme:HospitalityMarketSectorMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ManufacturingMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ManufacturingMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:HealthcareMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:HealthcareMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:TransportationMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:TransportationMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:WaterandWastewaterMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:WaterandWastewaterMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ShortDurationProjectsMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ShortDurationProjectsMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ServiceWorkMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMembereme:ServiceWorkMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:IntersegmentEliminationMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:CommercialMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:CommercialMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:InstitutionalMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:InstitutionalMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMembereme:HospitalityMarketSectorMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMembereme:HospitalityMarketSectorMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ManufacturingMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ManufacturingMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:HealthcareMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:HealthcareMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:TransportationMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:TransportationMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:WaterandWastewaterMarketSectorMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:WaterandWastewaterMarketSectorMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ShortDurationProjectsMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ShortDurationProjectsMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ServiceWorkMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMembereme:ServiceWorkMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:IntersegmentEliminationMember2020-01-012020-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:CommercialSiteBasedServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:CommercialSiteBasedServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:GovernmentSiteBasedServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:GovernmentSiteBasedServicesMember2020-01-012020-03-310000105634eme:MechanicalServicesMembercountry:USeme:UnitedStatesBuildingServicesMember2021-01-012021-03-310000105634eme:MechanicalServicesMembercountry:USeme:UnitedStatesBuildingServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:EnergyServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesBuildingServicesMembereme:EnergyServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesBuildingServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesBuildingServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesIndustrialServicesMembereme:FieldServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMembereme:FieldServicesMember2020-01-012020-03-310000105634country:USeme:ShopServicesMembereme:UnitedStatesIndustrialServicesMember2021-01-012021-03-310000105634country:USeme:ShopServicesMembereme:UnitedStatesIndustrialServicesMember2020-01-012020-03-310000105634country:USeme:UnitedStatesIndustrialServicesMember2021-01-012021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMember2020-01-012020-03-310000105634country:US2021-01-012021-03-310000105634country:US2020-01-012020-03-310000105634country:GBeme:ServiceWorkMembereme:UnitedKingdomBuildingServicesMemberMember2021-01-012021-03-310000105634country:GBeme:ServiceWorkMembereme:UnitedKingdomBuildingServicesMemberMember2020-01-012020-03-310000105634country:GBeme:ProjectWorkMembereme:UnitedKingdomBuildingServicesMemberMember2021-01-012021-03-310000105634country:GBeme:ProjectWorkMembereme:UnitedKingdomBuildingServicesMemberMember2020-01-012020-03-310000105634country:GBeme:UnitedKingdomBuildingServicesMemberMember2021-01-012021-03-310000105634country:GBeme:UnitedKingdomBuildingServicesMemberMember2020-01-012020-03-310000105634eme:A2021AcquisitionsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMember2021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMember2021-03-310000105634country:USeme:UnitedStatesBuildingServicesMember2021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMember2021-03-310000105634country:US2021-03-310000105634country:GBeme:UnitedKingdomBuildingServicesMemberMember2021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMember2021-04-012021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMember2022-04-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMember2021-04-012021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMember2022-04-012021-03-310000105634country:US2021-04-01eme:UnitedStatesBuildingServicesMember2021-03-310000105634country:USeme:UnitedStatesBuildingServicesMember2022-04-012021-03-310000105634country:US2021-04-01eme:UnitedStatesIndustrialServicesMember2021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMember2022-04-012021-03-310000105634country:US2021-04-012021-03-310000105634country:US2022-04-012021-03-310000105634country:GB2021-04-01eme:UnitedKingdomBuildingServicesMemberMember2021-03-310000105634country:GBeme:UnitedKingdomBuildingServicesMemberMember2022-04-012021-03-3100001056342021-04-012021-03-3100001056342022-04-012021-03-3100001056342020-01-012020-12-310000105634eme:A2021AcquisitionsMember2021-03-310000105634eme:A2020AcquisitionsMember2020-01-012020-12-310000105634eme:A2020AcquisitionsMember2020-12-31eme:Company00001056342021-02-012021-02-0100001056342021-01-112021-01-1100001056342020-11-062020-11-0600001056342020-08-032020-08-0300001056342020-01-022020-01-020000105634eme:TermLoan2020Member2021-03-310000105634eme:TermLoan2020Member2020-12-310000105634eme:CreditAgreement2016MemberMember2016-08-032016-08-030000105634us-gaap:RevolvingCreditFacilityMembereme:RevolvingCreditFacility2016MemberMember2016-08-030000105634eme:TermLoan2016MemberMember2016-08-030000105634us-gaap:RevolvingCreditFacilityMembereme:RevolvingCreditFacility2020Member2020-03-020000105634eme:TermLoan2020Member2020-03-020000105634eme:CreditAgreement2020Member2021-01-012021-03-310000105634us-gaap:RevolvingCreditFacilityMembereme:RevolvingCreditFacility2020Member2021-03-310000105634us-gaap:BaseRateMembersrt:MinimumMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634us-gaap:BaseRateMembersrt:MaximumMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634us-gaap:LondonInterbankOfferedRateLIBORMembereme:CreditAgreement2020Member2021-03-310000105634srt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634srt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634eme:CreditAgreementBaseRateBankofMontrealPrimeRateMembereme:CreditAgreement2020Member2021-03-310000105634eme:CreditAgreementBaseRateDailyOneMonthLIBORRateMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634eme:CreditAgreement2020Membereme:CreditAgreement0BaseRateMember2021-01-012021-03-310000105634eme:CreditAgreement2020Member2021-03-310000105634srt:MinimumMembereme:RevolvingCreditFacility2020Memberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310000105634srt:MaximumMembereme:RevolvingCreditFacility2020Memberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310000105634us-gaap:RevolvingCreditFacilityMembereme:RevolvingCreditFacility2020Member2021-01-012021-03-310000105634srt:MinimumMembereme:RevolvingCreditFacility2020Memberus-gaap:RevolvingCreditFacilityMember2021-03-310000105634srt:MaximumMembereme:RevolvingCreditFacility2020Memberus-gaap:RevolvingCreditFacilityMember2021-03-310000105634eme:RevolvingCreditFacility2020Member2021-03-310000105634eme:CreditAgreementBaseRateFederalFundsRateMembereme:CreditAgreement2020Member2021-01-012021-03-310000105634eme:RevolvingCreditFacility2020Member2020-12-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-03-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310000105634us-gaap:FairValueMeasurementsRecurringMember2021-03-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310000105634us-gaap:FairValueMeasurementsRecurringMember2020-12-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-03-310000105634us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310000105634eme:RepurchaseProgramSep2011toMar2021Member2021-03-3100001056342001-09-262021-03-31eme:plan0000105634country:US2021-03-310000105634eme:UnitedKingdomSubsidiaryMemberus-gaap:ForeignPlanMember2021-01-012021-03-310000105634eme:UnitedKingdomSubsidiaryMemberus-gaap:ForeignPlanMember2020-01-012020-03-310000105634country:US2021-01-012021-03-310000105634eme:UnitedKingdomSubsidiaryMemberus-gaap:ForeignPlanMember2021-03-310000105634country:US2020-01-012020-03-310000105634country:USeme:UnitedStatesBuildingServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesBuildingServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634country:USeme:UnitedStatesIndustrialServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000105634us-gaap:IntersegmentEliminationMember2021-01-012021-03-310000105634us-gaap:IntersegmentEliminationMember2020-01-012020-03-310000105634country:GBus-gaap:OperatingSegmentsMembereme:UnitedKingdomBuildingServicesMemberMember2021-01-012021-03-310000105634country:GBus-gaap:OperatingSegmentsMembereme:UnitedKingdomBuildingServicesMemberMember2020-01-012020-03-310000105634us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000105634us-gaap:CorporateNonSegmentMember2020-01-012020-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2021-03-310000105634country:USeme:UnitedStatesElectricalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2020-12-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2021-03-310000105634country:USeme:UnitedStatesMechanicalConstructionAndFacilitiesServicesMemberus-gaap:OperatingSegmentsMember2020-12-310000105634country:USeme:UnitedStatesBuildingServicesMemberus-gaap:OperatingSegmentsMember2021-03-310000105634country:USeme:UnitedStatesBuildingServicesMemberus-gaap:OperatingSegmentsMember2020-12-310000105634country:USeme:UnitedStatesIndustrialServicesMemberus-gaap:OperatingSegmentsMember2021-03-310000105634country:USeme:UnitedStatesIndustrialServicesMemberus-gaap:OperatingSegmentsMember2020-12-310000105634country:US2020-12-310000105634country:GBus-gaap:OperatingSegmentsMembereme:UnitedKingdomBuildingServicesMemberMember2021-03-310000105634country:GBus-gaap:OperatingSegmentsMembereme:UnitedKingdomBuildingServicesMemberMember2020-12-310000105634us-gaap:CorporateNonSegmentMember2021-03-310000105634us-gaap:CorporateNonSegmentMember2020-12-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission file number 1-8267
EMCOR Group, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware11-2125338
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification Number)
301 Merritt Seven
Norwalk,Connecticut06851-1092
(Address of Principal Executive Offices)(Zip Code)
(203)
849-7800
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common StockEMENew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).  Yes      No  
Applicable Only To Corporate Issuers
Number of shares of Common Stock outstanding as of the close of business on April 27, 2021: 54,556,403 shares.


Table of Contents


























[This Page Intentionally Left Blank]



Table of Contents
EMCOR Group, Inc.
TABLE OF CONTENTS
 
  Page No.
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 2.
Item 4.
Item 6.


Table of Contents
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They generally contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” variations of such wording and other words or phrases of similar meaning. Forward-looking statements in this report include discussions of our future operating or financial performance and other forward-looking commentary regarding aspects of our business, including market share growth, gross profit, remaining performance obligations, project mix, projects with varying profit margins, selling, general and administrative expenses, and trends in our business and other characterizations of future events or circumstances, such as the effects of the COVID-19 pandemic. Each forward-looking statement included in this report is subject to risks and uncertainties, including those identified in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section, and other sections of this report, and in our Form 10-K for the year ended December 31, 2020, including, without limitation, the “Risk Factors” section of such Form 10-K. Such risks and uncertainties could cause actual results to differ materially from those that might be anticipated from, or projected or implied by, our forward-looking statements. The forward-looking statements contained in this report speak only as of the filing date of this report. We undertake no obligation to update any forward-looking statements. However, any further disclosures made on related subjects in our subsequent reports on Forms 10-K, 10-Q, and 8-K should be consulted. We caution investors not to place undue reliance on forward-looking statements, due to their inherent uncertainty.


Table of Contents
PART I. – FINANCIAL INFORMATION.
ITEM 1. FINANCIAL STATEMENTS.
EMCOR Group, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
March 31,
2021
(Unaudited)
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents$758,833 $902,867 
Accounts receivable, less allowance for credit losses of $18,063 and $18,031, respectively2,037,525 1,922,096 
Contract assets192,369 171,956 
Inventories48,212 53,338 
Prepaid expenses and other68,692 70,679 
Total current assets3,105,631 3,120,936 
Property, plant and equipment, net157,202 158,427 
Operating lease right-of-use assets239,457 242,155 
Goodwill862,323 851,783 
Identifiable intangible assets, net580,555 582,893 
Other assets116,021 107,646 
Total assets$5,061,189 $5,063,840 
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt and finance lease liabilities$16,713 $16,910 
Accounts payable624,884 671,886 
Contract liabilities739,572 722,252 
Accrued payroll and benefits384,942 450,955 
Other accrued expenses and liabilities272,942 247,597 
Operating lease liabilities, current54,354 53,632 
Total current liabilities2,093,407 2,163,232 
Long-term debt and finance lease liabilities259,714 259,619 
Operating lease liabilities, long-term201,894 205,362 
Other long-term obligations385,502 382,383 
Total liabilities2,940,517 3,010,596 
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, 60,662,383 and 60,571,140 shares issued, respectively607 606 
Capital surplus48,693 47,464 
Accumulated other comprehensive loss(107,844)(109,233)
Retained earnings2,557,919 2,480,321 
Treasury stock, at cost 5,932,704 and 5,815,240 shares, respectively(379,407)(366,490)
Total EMCOR Group, Inc. stockholders’ equity2,119,968 2,052,668 
Noncontrolling interests704 576 
Total equity2,120,672 2,053,244 
Total liabilities and equity$5,061,189 $5,063,840 
See Notes to Consolidated Financial Statements.
1

Table of Contents

EMCOR Group, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)(Unaudited)
Three months ended March 31,
20212020
Revenues$2,304,049 $2,299,832 
Cost of sales1,962,976 1,966,771 
Gross profit341,073 333,061 
Selling, general and administrative expenses224,069 226,997 
Restructuring expenses 69 
Operating income117,004 105,995 
Net periodic pension (cost) income908 742 
Interest expense, net(1,363)(2,488)
Income before income taxes116,549 104,249 
Income tax provision31,604 28,584 
Net income including noncontrolling interests84,945 75,665 
Less: Net income attributable to noncontrolling interests(171) 
Net income attributable to EMCOR Group, Inc.$84,774 $75,665 
Basic earnings per common share$1.54 $1.35 
Diluted earnings per common share$1.54 $1.35 
Dividends declared per common share$0.13 $0.08 
See Notes to Consolidated Financial Statements.


2

Table of Contents
EMCOR Group, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)(Unaudited)        
Three months ended March 31,
20212020
Net income including noncontrolling interests$84,945 $75,665 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments585 (2,984)
Post retirement plans, amortization of actuarial loss included in net income (1)
804 550 
Other comprehensive income (loss)1,389 (2,434)
Comprehensive income86,334 73,231 
Less: Comprehensive income attributable to noncontrolling interests(171) 
Comprehensive income attributable to EMCOR Group, Inc.$86,163 $73,231 
_________
(1)Net of tax of $0.2 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively.
See Notes to Consolidated Financial Statements.

3

Table of Contents
EMCOR Group, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)(Unaudited) 
Three months ended March 31,
20212020
Cash flows - operating activities:
Net income including noncontrolling interests$84,945 $75,665 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization12,001 11,767 
Amortization of identifiable intangible assets14,989 14,747 
Provision for credit losses507 2,614 
Deferred income taxes14 4,375 
Non-cash share-based compensation expense3,193 3,291 
Other reconciling items(739)42 
Changes in operating assets and liabilities, excluding the effect of businesses acquired(203,899)(191,314)
Net cash used in operating activities(88,989)(78,813)
Cash flows - investing activities:
Payments for acquisitions of businesses, net of cash acquired(24,326)(2,582)
Proceeds from sale or disposal of property, plant and equipment766 196 
Purchases of property, plant and equipment(8,204)(12,035)
Net cash used in investing activities(31,764)(14,421)
Cash flows - financing activities:
Proceeds from revolving credit facility 200,000 
Repayments of revolving credit facility (50,000)
Proceeds from long-term debt 300,000 
Repayments of long-term debt and debt issuance costs (257,549)
Repayments of finance lease liabilities(1,145)(1,277)
Dividends paid to stockholders(7,121)(4,500)
Repurchases of common stock(12,917)(99,048)
Taxes paid related to net share settlements of equity awards(3,750)(2,492)
Issuances of common stock under employee stock purchase plan1,731 1,638 
Payments for contingent consideration arrangements(693)(653)
Distributions to noncontrolling interests(43) 
Net cash (used in) provided by financing activities(23,938)86,119 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash886 (4,678)
Decrease in cash, cash equivalents, and restricted cash(143,805)(11,793)
Cash, cash equivalents, and restricted cash at beginning of year (1)
903,562 359,920 
Cash, cash equivalents, and restricted cash at end of period (2)
$759,757 $348,127 
_________
(1)Includes $0.7 million and $1.1 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of December 31, 2020 and 2019, respectively.
(2)Includes $0.9 million and $1.0 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheets as of March 31, 2021 and 2020, respectively.

See Notes to Consolidated Financial Statements.
4

Table of Contents
EMCOR Group, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
For the three months ended March 31, 2020 and 2021
(In thousands)(Unaudited)        
  EMCOR Group, Inc. Stockholders 
 TotalCommon
stock
Capital
surplus
Accumulated other comprehensive loss (1)
Retained
earnings
Treasury
stock
Noncontrolling
interests
Balance, December 31, 2019$2,057,780 $604 $32,274 $(89,288)$2,367,481 $(253,937)$646 
Net income including noncontrolling interests75,665 — — — 75,665 — — 
Other comprehensive loss(2,434)— — (2,434)— — — 
Cumulative-effect adjustment (2)
(2,307)— — — (2,307)— — 
Common stock issued under share-based compensation plans1 1 — — — — — 
Tax withholding for common stock issued under share-based compensation plans(2,492)— (2,492)— — — — 
Common stock issued under employee stock purchase plan1,638 — 1,638 — — — — 
Common stock dividends(4,500)— 34 — (4,534)— — 
Repurchases of common stock(99,048)— — — — (99,048)— 
Share-based compensation expense3,291 — 3,291 — — — — 
Balance, March 31, 2020$2,027,594 $605 $34,745 $(91,722)$2,436,305 $(352,985)$646 
Balance, December 31, 2020$2,053,244 $606 $47,464 $(109,233)$2,480,321 $(366,490)$576 
Net income including noncontrolling interests84,945 — — — 84,774 — 171 
Other comprehensive income1,389 — — 1,389 — — — 
Common stock issued under share-based compensation plans1 1 — — — — — 
Tax withholding for common stock issued under share-based compensation plans(3,750)— (3,750)— — — — 
Common stock issued under employee stock purchase plan1,731 — 1,731 — — — — 
Common stock dividends(7,121)— 55 — (7,176)— — 
Repurchases of common stock(12,917)— — — — (12,917)— 
Distributions to noncontrolling interests(43)— — — — — (43)
Share-based compensation expense3,193 — 3,193 — — — — 
Balance, March 31, 2021$2,120,672 $607 $48,693 $(107,844)$2,557,919 $(379,407)$704 
 _________
(1)Represents cumulative foreign currency translation adjustments and post retirement liability adjustments.
(2)Represents adjustment to retained earnings upon the adoption of Accounting Standards Codification Topic 326.
See Notes to Consolidated Financial Statements.
5

Table of Contents

EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)

NOTE 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to 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 (“U.S. GAAP”) 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 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.
Our reportable segments and related disclosures reflect certain reclassifications of prior year amounts from our United States electrical construction and facilities services segment to our United States industrial services and our United States building services segments due to changes in our internal reporting structure aimed at realigning our service offerings.
The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021.
NOTE 2 - New Accounting Pronouncements
On January 1, 2021, we adopted the accounting pronouncement issued by the Financial Accounting Standards Board (“FASB”) that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to intraperiod tax allocations and the methodology for calculating income taxes in an interim period. The guidance also simplifies aspects of the accounting for franchise taxes as well as enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The adoption of this accounting pronouncement did not have a material impact on our financial position and/or results of operations.
The Company is currently evaluating the impact of an accounting standards update issued by the FASB, which provides temporary optional expedients and exceptions to existing U.S. GAAP. This guidance is aimed at easing the financial reporting burdens related to reference rate reform, including the expected market transition from LIBOR, or other interbank offered rates, to alternative reference rates. Such accounting pronouncement allows entities to account for and present certain contract modifications, which occur before December 31, 2022 and result from the transition to an alternative reference rate, as an event that does not require remeasurement at the modification date or reassessment of a previous accounting determination. While we are still evaluating the impact of this pronouncement, we do not anticipate that it will have a material impact on our financial position and/or results of operations as we are not exposed to any contracts that reference LIBOR, other than our credit agreement dated as of March 2, 2020, which contains provisions that allow for the amendment of such agreement to use alternative reference rates in the event of the discontinuation of LIBOR.
NOTE 3 - Revenue from Contracts with Customers
The Company recognizes 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 by applying the following five step model:
(1) Identify the contract with a customer
A contract with a customer exists when: (a) the parties have approved the contract and are committed to perform their respective obligations, (b) the rights of the parties can be identified, (c) payment terms can be identified, (d) the arrangement has commercial substance, and (e) collectability of consideration is probable. Judgment is required when determining if the contractual criteria are met, specifically in the earlier stages of a project when a formally executed contract may not yet exist. In these situations, the Company evaluates all relevant facts and circumstances, including the existence of other forms of documentation or historical experience with our customers that may indicate a contractual agreement is in place and revenue should be recognized. In determining if the collectability of consideration is probable, the Company considers the customer’s ability and intention to pay such consideration through an evaluation of several factors, including an assessment of the creditworthiness of the customer and our prior collection history with such customer.


6

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
(2) Identify the performance obligations in the contract
At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “unit of account” for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract.
In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry.
Our contracts are often modified through change orders to account for changes in the scope and price of the goods or services we are providing. Although the Company evaluates each change order to determine whether such modification creates a separate performance obligation, the majority of our change orders are for goods or services that are not distinct within the context of our original contract and, therefore, are not treated as separate performance obligations.
(3) Determine the transaction price
The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability-weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current, and estimates of future performance. The expected value method is typically utilized in situations where a contract contains a large number of possible outcomes while the most likely amount method is typically utilized in situations where a contract has only two possible outcomes.
Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts.
Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment of and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied.
7

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
Contract claims are another form of variable consideration which is common within our industry. Claim amounts represent revenue that has been recognized for contract modifications that are not submitted or are in dispute as to both scope and price. In estimating the transaction price for claims, the Company considers all relevant facts available. However, given the uncertainty surrounding claims, including the potential long-term nature of dispute resolution and the broad range of possible consideration amounts, there is an increased likelihood that any additional contract revenue associated with contract claims is constrained. The resolution of claims involves negotiations and, in certain cases, litigation. In the event litigation costs are incurred by us in connection with claims, such litigation costs are expensed as incurred, although we may seek to recover these costs.
For some transactions, the receipt of consideration does not match the timing of the transfer of goods or services to the customer. For such contracts, the Company evaluates whether this timing difference represents a financing arrangement within the contract. Although rare, if a contract is determined to contain a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money when determining the transaction price of such contract. Although our customers may retain a portion of the contract price until completion of the project and final contract settlement, these retainage amounts are not considered a significant financing component as the intent of the withheld amounts is to provide the customer with assurance that we will complete our obligations under the contract rather than to provide financing to the customer. In addition, although we may be entitled to advanced payments from our customers on certain contracts, these advanced payments generally do not represent a significant financing component as the payments are used to meet working capital demands that can be higher in the early stages of a contract, as well as to protect us from our customer failing to meet its obligations under the contract.
Changes in the estimates of transaction prices are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the ultimate outcome differs from the Company’s previous estimate. For the three months ended March 31, 2021 and 2020, there were no significant amounts of revenue recognized during the period related to performance obligations satisfied in prior periods. In addition, for the three months ended March 31, 2021 and 2020, there were no significant reversals of revenue recognized associated with the revision of transaction prices.
(4) Allocate the transaction price to performance obligations in the contract
For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The Company determines the standalone selling price based on the price at which the performance obligation would have been sold separately in similar circumstances to similar customers. If the standalone selling price is not observable, the Company estimates the standalone selling price taking into account all available information such as market conditions and internal pricing guidelines. In certain circumstances, the standalone selling price is determined using an expected profit margin on anticipated costs related to the performance obligation.
(5) Recognize revenue as performance obligations are satisfied
The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to its customers. A good or service is considered to be transferred when the customer obtains control. The Company can transfer control of a good or service and satisfy its performance obligations either over time or at a point in time. The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes revenue over time if one of the following three criteria are met: (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as we perform, (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (c) the Company’s performance does not create an asset with an alternative use to us, and we have an enforceable right to payment for performance completed to date.
For our performance obligations satisfied over time, we recognize revenue by measuring the progress toward complete satisfaction of that performance obligation. The selection of the method to measure progress towards completion can be either an input method or an output method and requires judgment based on the nature of the goods or services to be provided.



8

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
For our construction contracts, revenue is generally recognized over time as our performance creates or enhances an asset that the customer controls as it is created or enhanced. Our fixed price construction projects generally use a cost-to-cost input method to measure our progress towards complete satisfaction of the performance obligation as we believe it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. For our unit price construction contracts, progress towards complete satisfaction is measured through an output method, such as the amount of units produced or delivered, when our performance does not produce significant amounts of work in process or finished goods prior to complete satisfaction of such performance obligations.
For our services contracts, revenue is also generally recognized over time as the customer simultaneously receives and consumes the benefits of our performance as we perform the service. For our fixed price service contracts with specified service periods, revenue is generally recognized on a straight-line basis over such service period when our inputs are expended evenly, and the customer receives and consumes the benefits of our performance throughout the contract term.
The timing of revenue recognition for the manufacturing of new build heat exchangers within our United States industrial services segment depends on the payment terms of the contract, as our performance does not create an asset with an alternative use to us. For those contracts for which we have a right to payment for performance completed to date at all times throughout our performance, inclusive of a cancellation, we recognize revenue over time. For these performance obligations, we use a cost-to-cost input method to measure our progress towards complete satisfaction of the performance obligation as we believe it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. However, for those contracts for which we do not have a right, at all times, to payment for performance completed to date, we recognize revenue at the point in time when control is transferred to the customer. For bill-and-hold arrangements, revenue is recognized when the customer obtains control of the heat exchanger, which may be prior to shipping if certain recognition criteria are met.
For certain of our revenue streams, such as call-out repair and service work, outage services, refinery turnarounds, and specialty welding services that are performed under time and materials contracts, our progress towards complete satisfaction of such performance obligations is measured using an output method as the customer receives and consumes the benefits of our performance completed to date.
Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicate a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. For the three months ended March 31, 2021 and 2020, there were no changes in total estimated costs that had a significant impact on our operating results. In addition, there were no significant losses recognized during the three months ended March 31, 2021 and 2020.
Disaggregation of Revenues
Our revenues are principally derived from contracts to provide construction services relating to electrical and mechanical systems, as well as to provide a number of building services and industrial services to our customers. Our contracts are with many different customers in numerous industries. Refer to Note 14 - Segment Information of the notes to consolidated financial statements for additional information on how we disaggregate our revenues by reportable segment, as well as a more complete description of our business.






9

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
The following tables provide further disaggregation of our revenues, by categories we use to evaluate our financial performance within each of our reportable segments, for the three months ended March 31, 2021 and 2020 (in thousands):
For the three months ended March 31,
2021% of
Total
2020% of
Total
United States electrical construction and facilities services:
Commercial market sector$244,983 53 %$239,846 52 %
Institutional market sector43,129 9 %37,393 8 %
Hospitality market sector4,664 1 %5,082 1 %
Manufacturing market sector48,423 11 %66,843 14 %
Healthcare market sector19,414 4 %19,225 4 %
Transportation market sector42,031 9 %44,180 9 %
Water and wastewater market sector3,651 1 %2,329 1 %
Short duration projects (1)
43,800 10 %40,270 9 %
Service work7,268 2 %7,447 2 %
457,363 462,615 
Less intersegment revenues(1,195)(812)
Total segment revenues$456,168 $461,803 

For the three months ended March 31,
2021% of
Total
2020% of
Total
United States mechanical construction and facilities services:
Commercial market sector$366,675 40 %$304,690 36 %
Institutional market sector69,304 8 %76,997 9 %
Hospitality market sector8,529 1 %7,714 1 %
Manufacturing market sector105,427 12 %115,582 14 %
Healthcare market sector112,785 12 %88,059 10 %
Transportation market sector18,417 2 %14,346 2 %
Water and wastewater market sector43,848 5 %40,513 5 %
Short duration projects (1)
88,783 10 %97,202 12 %
Service work91,778 10 %90,893 11 %
905,546 835,996 
Less intersegment revenues(1,621)(1,884)
Total segment revenues$903,925 $834,112 
 ________
(1)Represents those projects which generally are completed within three months or less.
For the three months ended March 31,
2021% of
Total
2020% of
Total
United States building services:
Commercial site-based services$175,647 30 %$143,438 27 %
Government site-based services41,072 7 %42,917 8 %
Mobile mechanical services334,950 58 %312,919 59 %
Energy services30,170 5 %28,337 6 %
Total segment revenues$581,839 $527,611 
10

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
For the three months ended March 31,
2021% of
Total
2020% of
Total
United States industrial services:
Field services$207,554 88 %$323,654 89 %
Shop services27,828 12 %40,275 11 %
Total segment revenues$235,382 $363,929 
Total United States operations$2,177,314 $2,187,455 
For the three months ended March 31,
2021% of
Total
2020% of
Total
United Kingdom building services:
Service work$61,991 49 %$55,106 49 %
Project work64,744 51 %57,271 51 %
Total segment revenues$126,735 $112,377 
Total operations$2,304,049 $2,299,832 
Accounts Receivable and Allowance for Credit Losses
Accounts receivable are recognized in the period we deliver goods and services to our customers or when our right to consideration is unconditional. The Company maintains an allowance for credit losses to reduce outstanding receivables to their net realizable value. A considerable amount of judgment is required when determining expected credit losses. Estimates of such losses are recorded when we believe a customer, or group of customers, may not be able to meet their financial obligations due to deterioration in financial condition or credit rating. Relevant factors include our prior collection history with our customers, the related aging of past due balances, projections of credit losses based on historical trends in credit quality indicators or past events, and forecasts of future economic conditions. In addition to monitoring delinquent accounts, management reviews the credit quality of its receivables by, among other things, obtaining credit ratings of significant customers, assessing economic and market conditions, and evaluating material changes to a customer’s business, cash flows, and financial condition.
At March 31, 2021 and December 31, 2020, our allowance for credit losses was $18.1 million and $18.0 million, respectively. Allowances for credit losses are based on the best facts available and are reassessed and adjusted on a regular basis as additional information is received. Should anticipated collections fail to materialize, or if future economic conditions compare unfavorably to our forecasts, we could experience an increase in our credit losses.
The change in the allowance for credit losses for the three months ended March 31, 2021 was as follows (in thousands):
Balance at December 31, 2020$18,031 
Provision for credit losses507 
Amounts written off against the allowance, net of recoveries(475)
Balance at March 31, 2021$18,063 
Contract Assets and Contract Liabilities
The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our construction projects when revenues recognized under the cost-to-cost measure of progress exceed the amounts invoiced to our customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from our customers based upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. In addition, many of our time and materials arrangements, as well as our contracts to perform turnaround services within the United States industrial services segment, are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded as revenue is recognized in advance of billings.
11

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
Also included in contract assets are amounts we seek or will seek to collect from customers or others for errors or changes in contract specifications or design, contract change orders or modifications in dispute or unapproved as to scope and/or price, or other customer-related causes of unanticipated additional contract costs (claims and unapproved change orders). Our contract assets do not include capitalized costs to obtain and fulfill a contract. Contract assets are generally classified as current within the Consolidated Balance Sheets.
Contract liabilities from our construction contracts arise when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when we expect to recognize such revenue. The long-term portion of contract liabilities is included in “Other long-term obligations” in the Consolidated Balance Sheets.
Net contract liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):
March 31, 2021December 31, 2020
Contract assets, current$192,369 $171,956 
Contract assets, non-current  
Contract liabilities, current(739,572)(722,252)
Contract liabilities, non-current(2,314)(2,283)
Net contract liabilities$(549,517)$(552,579)
The $3.1 million decrease in net contract liabilities for the three months ended March 31, 2021 was primarily attributable to a decrease in the net contract liabilities on our uncompleted construction contracts. Contract assets and contract liabilities increased by approximately $0.9 million and $0.1 million, respectively, as a result of acquisitions made by us in 2021. There was no significant impairment of contract assets recognized during the periods presented.
Transaction Price Allocated to Remaining Unsatisfied 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 as of March 31, 2021 (in thousands, except for percentages):
March 31, 2021% of Total
Remaining performance obligations:
United States electrical construction and facilities services$1,161,996 24 %
United States mechanical construction and facilities services2,664,548 56 %
United States building services678,343 14 %
United States industrial services120,964 3 %
Total United States operations4,625,851 97 %
United Kingdom building services149,306 3 %
Total operations$4,775,157 100 %
Our remaining performance obligations at March 31, 2021 were $4.78 billion. Remaining performance obligations increase with awards of new contracts and decrease as we perform work and recognize revenue on existing contracts. We include a project within our remaining performance obligations at such time the project is awarded and agreement on contract terms has been reached. Our remaining performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of the total transaction price can be made.



12

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 3 - Revenue from Contracts with Customers (Continued)
Remaining performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of our construction contracts are subject to cancellation at the election of our customers, in accordance with industry practice, we do not limit the amount of unrecognized revenue included within remaining performance obligations for these contracts as the risk of cancellation is very low due to the inherent substantial economic penalty that our customers would incur upon cancellation or termination. We believe our reported remaining performance obligations for our construction contracts are firm and contract cancellations have not had a material adverse effect on us.
Remaining performance obligations also include unrecognized revenues expected to be realized over the remaining term of service contracts. However, to the extent a service contract includes a cancellation clause which allows for the termination of such contract by either party without a substantive penalty, the remaining contract term, and therefore, the amount of unrecognized revenues included within remaining performance obligations, is limited to the notice period required for the termination.
Our remaining performance obligations are comprised of: (a) original contract amounts, (b) change orders for which we have received written confirmations from our customers, (c) pending change orders for which we expect to receive confirmations in the ordinary course of business, (d) claim amounts that we have made against customers for which we have determined we have a legal basis under existing contractual arrangements and as to which the variable consideration constraint does not apply, and (e) other forms of variable consideration to the extent that such variable consideration has been included within the transaction price of our contracts. Such claim and other variable consideration amounts were immaterial for all periods presented.
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 yearGreater than one year
Remaining performance obligations:
United States electrical construction and facilities services$1,027,765 $134,231 
United States mechanical construction and facilities services2,166,825 497,723 
United States building services621,684 56,659 
United States industrial services120,964  
Total United States operations3,937,238 688,613 
United Kingdom building services117,903 31,403 
Total operations$4,055,141 $720,016 
NOTE 4 - Acquisitions of Businesses
Acquisitions are accounted for utilizing the acquisition method of accounting and the prices paid for them are allocated to their respective assets and liabilities based upon the estimated fair value of such assets and liabilities at the dates of their respective acquisition by us.
During the first quarter of 2021, we acquired two companies for total consideration of $24.0 million. One company provides mechanical services within the Southern region of the United States, and the results of its operations have been included in our United States mechanical construction and facilities services segment. The other company provides electrical construction services for a broad array of customers in the Midwestern region of the United States, and the results of its operations have been included in our United States electrical construction and facilities services segment. In connection with these acquisitions, we acquired working capital of $4.4 million and other net liabilities of $3.5 million, including certain deferred tax liabilities, and have preliminarily ascribed $10.4 million to goodwill and $12.7 million to identifiable intangible assets.
During 2020, we acquired three companies for total consideration of $50.3 million. Such companies include: (a) a company that provides building automation and controls solutions within the Northeastern region of the United States, (b) a full service provider of mechanical services within the Washington, D.C. metro area, and (c) a company that provides mobile mechanical services in the Southern region of the United States. The results of operations for all three companies have been included within our United States building services segment. In connection with these acquisitions, we acquired working capital of $3.0 million and other net liabilities of $3.9 million and have preliminarily ascribed $13.1 million to goodwill and $38.1 million to identifiable intangible assets.
13

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 4 - Acquisitions of Businesses (continued)
We expect that the majority of the goodwill acquired in connection with these acquisitions will be deductible for tax purposes. The purchase price allocations for one of the businesses acquired in 2021 and one of the businesses acquired in 2020 are preliminary and subject to change during their respective measurement periods. As we finalize such purchase price allocations, adjustments may be recorded relating to finalization of intangible asset valuations, tax matters, or other items. Although not expected to be significant, such adjustments may result in changes in the valuation of assets and liabilities acquired. The purchase price allocations for the other businesses acquired in 2021 and 2020 have been finalized during their respective measurement periods with an insignificant impact.
NOTE 5 - Earnings Per Share
Calculation of Basic and Diluted Earnings per Common Share
The following table summarizes our calculation of Basic and Diluted Earnings per Common Share (“EPS”) for the three months ended March 31, 2021 and 2020 (in thousands, except share and per share data):
For the three months ended
March 31,
 20212020
Numerator:
Net income attributable to EMCOR Group, Inc. common stockholders$84,774 $75,665 
Denominator:
Weighted average shares outstanding used to compute basic earnings per common share54,896,548 56,007,122 
Effect of dilutive securities—Share-based awards238,756 203,606 
Shares used to compute diluted earnings per common share55,135,304 56,210,728 
Basic earnings per common share$1.54 $1.35 
Diluted earnings per common share$1.54 $1.35 
There were no anti-dilutive share-based awards outstanding for the three months ended March 31, 2021; however, the number of share-based awards excluded from the computation of diluted EPS for the three months ended March 31, 2020 because they would be anti-dilutive were 95,084.
NOTE 6 - Inventories
Inventories in the accompanying Consolidated Balance Sheets consisted of the following amounts as of March 31, 2021 and December 31, 2020 (in thousands):
March 31,
2021
December 31,
2020
Raw materials and construction materials$37,088 $42,240 
Work in process11,124 11,098 
Inventories$48,212 $53,338 








14

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 7 - Debt            
Debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of March 31, 2021 and December 31, 2020 (in thousands):
March 31,
2021
December 31,
2020
Term loan$270,563 $270,563 
Unamortized debt issuance costs(3,761)(4,000)
Finance lease liabilities9,625 9,966 
Total debt276,427 276,529 
Less: current maturities16,713 16,910 
Total long-term debt$259,714 $259,619 
Credit Agreement        
Until March 2, 2020, we had a credit agreement dated as of August 3, 2016, which provided 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”). On March 2, 2020, we amended and restated the 2016 Credit Agreement to provide for a $1.3 billion revolving credit facility (the “2020 Revolving Credit Facility”) and a $300.0 million term loan (the “2020 Term Loan”) (collectively referred to as the “2020 Credit Agreement”) expiring March 2, 2025. We may increase the 2020 Revolving Credit Facility to $1.9 billion if additional lenders are identified and/or existing lenders are willing to increase their current commitments. We may allocate up to $400.0 million of available capacity under the 2020 Revolving Credit Facility to letters of credit for our account or for the account of any of our subsidiaries.
At the Company’s election, borrowings under the 2020 Credit Agreement bear interest at either: (1) a base rate plus a margin of 0.00% to 0.75%, based on certain financial tests, or (2) United States dollar LIBOR (0.11% at March 31, 2021) 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 (3.25% at March 31, 2021), (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 March 31, 2021 was 1.11%. A commitment fee is payable on the average daily unused amount of the 2020 Revolving Credit Facility, which ranges from 0.10% to 0.25%, based on certain financial tests. The fee was 0.10% of the unused amount as of March 31, 2021. Fees for letters of credit issued under the 2020 Revolving Credit Facility range from 0.75% to 1.75% of the respective face amounts of outstanding letters of credit, depending on the nature of the letter of credit, and are computed based on certain financial tests.
As of March 31, 2021 and December 31, 2020, the balance of the 2020 Term Loan was $270.6 million. As of March 31, 2021 and December 31, 2020, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility; however, we had $71.3 million of letters of credit outstanding, which reduce the available capacity under such facility. We capitalized an additional $3.1 million of debt issuance costs associated with the 2020 Credit Agreement. Debt issuance costs are amortized over the life of the agreement as part of interest expense.
Obligations under the 2020 Credit Agreement are guaranteed by most of our direct and indirect subsidiaries and are secured by substantially all of our assets. The 2020 Credit Agreement contains various covenants providing for, among other things, the maintenance of certain financial ratios and certain limitations on the payment of dividends, common stock repurchases, investments, acquisitions, indebtedness, and capital expenditures. We were in compliance with all such covenants as of March 31, 2021 and December 31, 2020.
We are required to make annual principal payments on the 2020 Term Loan. Any voluntary prepayments are applied against the outstanding balance of the loan and reduce our future scheduled payments on a ratable basis. Based on our outstanding balance, principal payments of $13.9 million are due on December 31 of each year until maturity, with any remaining unpaid principal and interest due on March 2, 2025.




15

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 8 - Fair Value Measurements        
For disclosure purposes, we utilize a fair value hierarchy to categorize qualifying assets and liabilities into three broad levels based on the priority of the inputs used to determine their fair values. The hierarchy, which gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs, is comprised of the following three levels:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 – Observable inputs, other than Level 1 inputs, that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 – Unobservable inputs that reflect the reporting entity’s own assumptions.
Recurring Fair Value Measurements
The following tables summarize the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands):  
 Assets at Fair Value as of March 31, 2021
Asset CategoryLevel 1Level 2Level 3Total
Cash and cash equivalents (1)
$758,833 $ $ $758,833 
Restricted cash (2)
924   924 
Deferred compensation plan assets (3)
42,424   42,424 
Total$802,181 $ $ $802,181 
 Assets at Fair Value as of December 31, 2020
Asset CategoryLevel 1Level 2Level 3Total
Cash and cash equivalents (1)
$902,867 $ $ $902,867 
Restricted cash (2)
695   695 
Deferred compensation plan assets (3)
36,491   36,491 
Total$940,053 $ $ $940,053 
 ________
(1)Cash and cash equivalents consist of deposit accounts and money market funds with original maturity dates of three months or less, which are Level 1 assets. At March 31, 2021 and December 31, 2020, we had $396.5 million and $482.2 million, respectively, in money market funds.
(2)Restricted cash is classified as “Prepaid expenses and other” in the Consolidated Balance Sheets. Restricted cash primarily represents cash held in account for use on customer contracts.
(3)Deferred compensation plan assets are classified as “Other assets” in the Consolidated Balance Sheets.
Nonrecurring Fair Value Measurements
We have recorded goodwill and identifiable intangible assets in connection with our business acquisitions. Such assets are measured at fair value at the time of acquisition based on valuation techniques that appropriately represent the methods which would be used by other market participants in determining fair value. In addition, goodwill and intangible assets are tested for impairment using similar valuation methodologies to determine the fair value of such assets. Periodically, we engage an independent third-party valuation specialist to assist with the valuation process, including the selection of appropriate methodologies and the development of market-based assumptions. The inputs used for these fair value measurements represent Level 3 inputs.
Fair Value of Financial Instruments
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 2020 Credit Agreement approximates its fair value due to the variable rate on such debt. 
16

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 9 - Income Taxes
The following table presents our income tax provision and our income tax rate for the three months ended March 31, 2021 and 2020 (in thousands, except percentages):
 For the three months ended
March 31,
 20212020
Income tax provision$31,604 $28,584 
Income tax rate27.2 %27.4 %
The difference between the U.S. statutory tax rate of 21% and our income tax rate for both the three months ended March 31, 2021 and 2020 was primarily a result of state and local income taxes and other permanent book to tax differences. The increase in the 2021 income tax provision was primarily due to increased income before income taxes.
As of March 31, 2021 and December 31, 2020, we had no unrecognized income tax benefits.
We file a consolidated federal income tax return including all of our U.S. subsidiaries with the Internal Revenue Service. We additionally file income tax returns with various state, local, and foreign tax agencies. Our income tax returns are subject to audit by various taxing authorities and are currently under examination for the years 2014 through 2019.
NOTE 10 - Common Stock        
As of March 31, 2021 and December 31, 2020, there were 54,729,679 and 54,755,900 shares of our common stock outstanding, respectively.
During the three months ended March 31, 2021 and 2020, we issued 91,243 and 101,695 shares of common stock, respectively. These shares were issued upon either the satisfaction of required conditions under our share-based compensation plans or the purchase of common stock pursuant to our employee stock purchase plan. We have paid quarterly dividends since October 25, 2011. We currently pay a regular quarterly dividend of $0.13 per share.
In September 2011, our Board of Directors (the “Board”) authorized a share repurchase program allowing us to begin repurchasing shares of our outstanding common stock. Subsequently, the Board has from time to time increased the amount of our common stock that we may repurchase under such program. Since the inception of the repurchase program, the Board has authorized us to repurchase up to $1.15 billion of our outstanding common stock. During the three months ended March 31, 2021, we repurchased approximately 0.1 million shares of our common stock for approximately $12.9 million. Since the inception of the repurchase program through March 31, 2021, we have repurchased approximately 17.7 million shares of our common stock for approximately $917.0 million. As of March 31, 2021, there remained authorization for us to repurchase approximately $233.0 million of our shares. The repurchase program has no expiration date, does 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 2020 Credit Agreement placing limitations on such repurchases. The repurchase program has been and will be funded from our operations.
NOTE 11 - Retirement 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 our balance sheet with a corresponding adjustment to accumulated other comprehensive income (loss). Gains and losses for the differences between actuarial assumptions and actual results, and unrecognized service costs, are recognized through accumulated other comprehensive income (loss). These amounts will be subsequently recognized as net periodic pension cost (income) within the statement of operations.
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. We also sponsor three domestic retirement plans in which participation by new individuals is frozen.

17

Table of Contents
EMCOR Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
NOTE 11 - Retirement Plans (Continued)
Components of Net Periodic Pension Cost
The components of net periodic pension cost (income) of the UK Plan for the three months ended March 31, 2021 and 2020 were as follows (in thousands): 
 For the three months ended
March 31,
 20212020
Interest cost$1,336 $1,596 
Expected return on plan assets(3,192)(2,997)
Amortization of unrecognized loss913 595 
Net periodic pension cost (income)$(943)$(806)
The net periodic pension cost associated with the domestic plans was less than $0.1 million for each of the three months ended March 31, 2021 and 2020.
Employer Contributions
For the three months ended March 31, 2021, our United Kingdom subsidiary contributed approximately $1.2 million to the UK Plan and anticipates contributing an additional $3.8 million during the remainder of 2021. No contributions were made to our domestic plans for the three months ended March 31, 2021.
NOTE 12 - Commitments and Contingencies
Government Contracts
As a government contractor, we are subject to U.S. government audits and investigations relating to our operations, which such audits may result in 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 Proceedings     
We are involved in several legal 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. We do not believe that any such matters will have a material adverse effect on our financial position, results of operations, or liquidity. We record a loss contingency if the potential loss from a proceeding or claim is considered probable and the amount can be reasonably estimated or a range of loss can be determined. We provide disclosure when it is reasonably possible that a loss will be incurred in excess of any recorded provision. Significant judgment is required in these determinations. As additional information becomes available, we reassess prior determinations and may change our estimates. Additional claims may be asserted against us in the future. Litigation is subject to many uncertainties, and the outcome of litigation is not predictable with assurance. It is possible that a litigation matter for which liabilities have not been recorded could be decided unfavorably to us, and that any such unfavorable decision could have a material adverse effect on our financial position, results of operations, or liquidity.
Restructuring expenses
No material expenses in connection with restructuring were incurred during the three months ended March 31, 2021 and 2020, and no material restructuring expenses are expected to be incurred during the remainder of 2021. As of March 31, 2021, the balance of restructuring obligations yet to be paid was approximately $2.6 million. Such remaining amounts will be paid pursuant to our contractual obligations through 2022.