Notes to Consolidated Financial Statements The components of the net deferred income tax liability (asset) included in “Other accrued expenses and liabilities” in the accompanying Consolidated Balance Sheets for the years ended December 31, 2000, and 1999 were as follows (in thousands): Income before income taxes and extraordinary item for the years ended December 31, 2000, 1999, and 1998 consisted of the following (in thousands): On March 18, 1998, EMCOR sold, pursuant to an underwritten public offering, 1,100,000 of its common stock at a price of $21.875 per share. As part of a program previously authorized by the Board of Directors, EMCOR purchased 174,100 and 957,900 shares of its common stock during 1999 and 1998, respectively. The aggregate amount of $16.8 million paid for those shares has been classified  as “Treasury stock, at cost” in the Consolidated Balance Sheet at December 31, 2000. EMCOR management is authorized to  repurchase up to $20.0 million of EMCOR’s common stock under this program. EMCOR has stock based compensation plans under which employees receive stock options and outside directors receive stock options or shares of common stock. During 2000 and 1999, certain stock options were granted by the board of directors outside of established stock option plans. A summary of the general terms of the stock option and stock unit plans, plus other stock option grants follows: (1) At the election of an individual serving as a Director, the individual may elect to receive one-third, two-thirds or all of his retainer for a calendar year in the form of stock options. Such options become exercisable quarterly over the calendar year. In addition, the individual will receive additional stock options equal to the product of 0.5 times the amount of stock options otherwise issued as a result of his election. (2) At the election of an individual serving as a Director, the individual may elect to receive one-third, two-thirds or all of his retainer for a calendar year in the form of deferred stock units equal in value to the retainer. In addition, the individual will receive additional deferred stock units equal to 0.2 times the amount of deferred stock units otherwise issued as a result of his election. Following termination of Board service, the director receives shares of common stock equal to the number of deferred stock units. (3) The grant date is the first business day of a calendar year for individuals who are serving as Directors as of such date, and on the date of grant. (4) The grant date is the first business day of a calendar year for individuals who are serving as Directors as of such date. 33 EMCOR, 2000 Annual Report 2000 1999 Deferred tax liabilities: Costs capitalized for financial statement purposes and deducted for income tax purposes $ 7,885 $ 23,407 Total deferred tax liabilities 7,885 23,407 Deferred tax assets: Net operating loss carryforwards (16,257) (42,166) Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes (49,900) (64,149) Other (6,403) (2,899) Total deferred tax assets (72,560) (109,214) Valuation allowance for deferred tax assets 68,787 88,781 Net deferred tax assets (3,773) (20,433) Net deferred tax liability $ 4,112 $ 2,974 2000 1999 1998 United States $ 59,105 $ 42,714 $ 27,130 Foreign 12,482 6,964 2,611 $ 71,587 $ 49,678 $ 29,741 Note H –  Common Stock Note I –  Stock Options and Warrants Authorized Exercise Shares Vesting Expiration Price 1994 Management Stock Option Plan 1,000,000 Generally, 33 1 ⁄3% on Ten years from Fair market value of (the “1994 Plan”) each anniversary of grant date common stock on grant date grant date 1995 Non-Employee Directors’ Non-Qualified 200,000 100% on grant date Ten years from  Fair market value of Stock Option Plan (the “1995 Plan”) grant date common stock on grant date 1997 Non-Employee Directors’ Non-Qualified 300,000 (1) Five years from Fair market value of Stock Option Plan (the“1997 Directors’ grant date common stock Stock Option Plan”) on grant date (3) 1997 Stock Plan for Directors (the “1997  150,000 (2) Five years from  Fair market value Directors’ Stock Plan”) grant date of common stock on grant date (4) Other Stock Option Grants Not applicable Generally, either  Ten years from Fair market value of 100% on first  grant date common stock anniversary of grant on grant date date or 33 1 ⁄3% on each anniversary of  grant date