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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Cash paid (in thousands) for:


	Year Ended December 31,
	2019		2018		2017
Interest	$	8,817	$	3,743	$	2,832
Income taxes	$	45,288	$	33,401	$	38,144

Schedule of contracts in progress

Contracts in progress are as follows (in thousands):


	December 31,
	2019		2018
Costs incurred on contracts in progress	$	2,518,581	$	1,574,460
Estimated earnings, net of losses		405,891		300,514
Less—Billings to date		(3,033,112)		(1,958,567)
Less—Unbilled accounts receivable		(55,542)		(37,180)
	$	(164,182)	$	(120,773)

Costs and estimated earnings in excess of billings	$	2,736	$	10,213
Billings in excess of costs and estimated earnings		(166,918)		(130,986)
	$	(164,182)	$	(120,773)

Schedule of disaggregation of revenue

Our consolidated 2019 revenue was derived from contracts to provide service activities in the mechanical and electrical services segments we serve. Refer to Note 14 – Segment Information for additional information on our reportable segments. We disaggregate our revenue from contracts with customers by activity, customer type and contract type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the following tables (dollars in thousands):


	Year Ended December 31,
Revenue by Service Provided	2019				2018				2017
Mechanical Services	$	2,251,560	86.1	%	$	2,176,223	99.7	%	$	1,787,922	100.0	%
Electrical Services		363,717	13.9	%		6,656	0.3	%		—	—
Total	$	2,615,277	100.0	%	$	2,182,879	100.0	%	$	1,787,922	100.0	%

	Year Ended December 31,
Revenue by Type of Customer	2019				2018				2017
Industrial	$	886,668	33.9	%	$	596,557	27.3	%	$	395,362	22.1	%
Education		412,318	15.8	%		391,937	18.0	%		351,808	19.7	%
Office Buildings		348,640	13.3	%		288,090	13.2	%		248,604	13.9	%
Healthcare		358,155	13.7	%		319,958	14.7	%		224,643	12.6	%
Government		162,507	6.2	%		143,958	6.6	%		140,843	7.9	%
Retail, Restaurants and Entertainment		248,083	9.5	%		225,348	10.3	%		223,593	12.5	%
Multi-Family and Residential		104,693	4.0	%		136,075	6.2	%		116,844	6.5	%
Other		94,213	3.6	%		80,956	3.7	%		86,225	4.8	%
Total	$	2,615,277	100.0	%	$	2,182,879	100.0	%	$	1,787,922	100.0	%

	Year Ended December 31,
Revenue by Activity Type	2019				2018				2017
New Construction	$	1,201,122	45.9	%	$	829,978	38.0	%	$	684,687	38.3	%
Existing Building Construction		793,159	30.3	%		796,946	36.5	%		580,737	32.4	%
Service Projects		231,228	8.9	%		206,506	9.5	%		197,703	11.1	%
Service Calls, Maintenance and Monitoring		389,768	14.9	%		349,449	16.0	%		324,795	18.2	%
Total	$	2,615,277	100.0	%	$	2,182,879	100.0	%	$	1,787,922	100.0	%

Schedule of contract assets and liabilities


	Year Ended December 31,
	2019				2018
	Contract		Contract		Contract		Contract
	Assets		Liabilities		Assets		Liabilities
Balance at beginning of period	$	10,213	$	130,986	$	30,116	$	106,005
Change due to acquisitions / disposals		6,573		31,556		2,833		8,195
Change due to conditional versus unconditional		(14,050)		—		6,244		—
Reclassified to unbilled accounts receivable		—		—		(28,980)		—
Change in timing for performance obligation to be satisfied		—		4,376		—		16,786
Balance at end of period	$	2,736	$	166,918	$	10,213	$	130,986

Schedule of lease assets and liabilities

The following table summarizes the lease assets and liabilities included in the consolidated Balance Sheet as follows (in thousands):


	December 31, 2019
Lease right-of-use assets	$	84,073
Lease liabilities:
Other current liabilities		14,016
Long-term lease liabilities		72,697
Total lease liabilities	$	86,713

Schedule of maturities of lease liabilities

The maturities of lease liabilities as of December 31, 2019 are as follows (in thousands):


Year ending December 31—
2020	$	17,124
2021		15,096
2022		12,873
2023		10,797
2024		9,222
Thereafter		36,954
Total Lease Payments		102,066
Less—Present Value Discount		(15,353)
Present Value of Lease Liabilities	$	86,713

Schedule of future minimum rental payments under noncancelable operating leases

The following table represents future minimum rental payments under noncancelable operating leases under ASC 840 as of December 31, 2018 (in thousands):


Year ending December 31—
2019	$	13,503
2020		10,768
2021		9,449
2022		7,707
2023		6,402
Thereafter		28,328
	$	76,157

Schedule of supplemental information related to leases

Supplemental information related to leases was as follows (in thousands):


	Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	16,895
Lease right-of-use assets obtained in exchange for lease liabilities	$	26,811