EMCOR is subject to regulation with respect to the handling of certain materials used in construction which are classified as hazardous or toxic by federal, state and local agencies. EMCOR’s practice is to avoid participation in projects principally involving the remediation or removal of such materials. However, where remediation is a required part of contract performance, EMCOR believes it complies with all applicable regulations governing the discharge of material into the environment or otherwise relating to the protection of the environment.

The following presents information about cash paid for interest and income taxes for the years ended December 31, 1999, 1998 and 1997 (in thousands):

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EMCOR adopted Statement of Financial Accounting Standards No. 131, “Disclosures About Segments of an Enterprise and Related Information” (“SFAS 131”) in 1998. SFAS 131 changed the way EMCOR reports information about its operating segments. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. EMCOR evaluates financial performance based on the operating income of the reportable business units.

EMCOR has the following reportable segments pursuant to SFAS 131: United States electrical construction and facilities services, United States mechanical construction and facilities services, Canada construction and facilities services and United Kingdom construction and facilities services. United States other services primarily represents those operations which principally provide consulting and maintenance services. Other International represents EMCOR’s operations outside of the United States, Canada, and the United Kingdom, primarily in the Middle East and performing electrical construction, mechanical construction and facilities services. Inter-segment sales are not material for any of the periods presented. The Extraordinary items--loss on early extinguishment of debt, net of income taxes, of $4.8 million and $1.0 million for the years ended December 31, 1998 and 1997, respectively, are related to Corporate Administration of EMCOR.