UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q



☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended March 31, 2016



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:  1-6314



Tutor Perini Corporation

(Exact name of registrant as specified in its charter)





 

 

MASSACHUSETTS

 

04-1717070

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)



15901 OLDEN STREET, SYLMAR, CALIFORNIA 91342-1093

(Address of principal executive offices)

(Zip code)



(818) 362-8391

(Registrant’s telephone number, including area code)





(Former name, former address and former fiscal year, if changed since last report)



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 and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒  No ☐



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





 

 

Large accelerated filer ☒

 

Accelerated filer ☐



 

 

Non-Accelerated filer ☐

 

Smaller reporting company ☐



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒



The number of shares of common stock, $1.00 par value per share, of the registrant outstanding at May 2, 2016 was 49,072,710.







 



 


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES



INDEX





 

 

 



 

 

Page Number

Part I.

Financial Information:

 



Item 1.

Financial Statements (Unaudited)

 



 

Condensed Consolidated  Statements of Operations for the Three Months Ended March 31, 2016 and 2015 (Unaudited)

3 



 

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2016 and 2015 (Unaudited)

4 



 

Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 (Unaudited)

5 



 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2016 and 2015 (Unaudited)

6 



 

Notes to the Condensed Consolidated Financial Statements

7-23 



Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24-29 



Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29 



Item 4.

Controls and Procedures

29 

Part II.

Other Information:

 



Item 1.

Legal Proceedings

30 



Item 1A.

Risk Factors

30 



Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

30 



Item 3.

Defaults Upon Senior Securities

30 



Item 4.

Mine Safety Disclosures

30 



Item 5.

Other Information

30 



Item 6.

Exhibits

31 



Signatures

 

32 





2


 

Table of Contents

 

PART I.  – FINANCIAL INFORMATION



Item 1. – Financial Statements



TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



UNAUDITED



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,

(in thousands, except per share amounts)

 

2016

 

2015

REVENUE

 

$

1,085,369 

 

$

1,066,465 

COST OF OPERATIONS

 

 

(980,277)

 

 

(975,706)

GROSS PROFIT

 

 

105,092 

 

 

90,759 

General and administrative expenses

 

 

(64,970)

 

 

(70,675)

INCOME FROM CONSTRUCTION OPERATIONS

 

 

40,122 

 

 

20,084 

Other income (expense), net

 

 

682 

 

 

(754)

Interest expense

 

 

(14,080)

 

 

(11,125)

INCOME BEFORE INCOME TAXES

 

 

26,724 

 

 

8,205 

Provision for income taxes

 

 

(11,324)

 

 

(3,079)

NET INCOME

 

$

15,400 

 

$

5,126 



 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.31 

 

$

0.11 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.31 

 

$

0.10 



 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

BASIC

 

 

49,079 

 

 

48,747 

DILUTED

 

 

49,285 

 

 

49,543 



The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.



3


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



UNAUDITED



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,

(in thousands)

 

2016

 

2015

NET INCOME

 

$

15,400 

 

$

5,126 



 

 

 

 

 

 

OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX:

 

 

 

 

 

 

Defined benefit pension plan adjustments

 

 

247 

 

 

 —

Foreign currency translation adjustment

 

 

930 

 

 

(588)

Unrealized (loss) gain in fair value of investments

 

 

8 

 

 

(10)

Unrealized (loss) gain in fair value of interest rate swap

 

 

(35)

 

 

45 

Total other comprehensive (loss) income, net of tax

 

 

1,150 

 

 

(553)



 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME

 

$

16,550 

 

$

4,573 



The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

 

4


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



UNAUDITED





 

 

 

 

 



 

 

 

 

 

(in thousands, except share and per share amounts)

March 31, 2016

 

December 31, 2015

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

90,582 

 

$

75,452 

Restricted cash

 

49,158 

 

 

45,853 

Accounts receivable, including retainage of $488,043 and $484,255

 

1,615,661 

 

 

1,473,615 

Costs and estimated earnings in excess of billings

 

858,356 

 

 

905,175 

Deferred income taxes

 

26,550 

 

 

26,306 

Other current assets

 

91,990 

 

 

108,844 

Total current assets

 

2,732,297 

 

 

2,635,245 

PROPERTY AND EQUIPMENT (net of accumulated depreciation
of $265,195 and $254,477)

 

519,890 

 

 

523,525 

OTHER ASSETS:

 

 

 

 

 

GOODWILL

 

585,006 

 

 

585,006 

INTANGIBLE ASSETS, NET

 

95,654 

 

 

96,540 

OTHER ASSETS

 

198,635 

 

 

196,361 

TOTAL ASSETS

$

4,131,482 

 

$

4,036,677 



 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current maturities of long-term debt

$

99,970 

 

$

88,917 

Accounts payable, including retainage of $204,386 and $204,767

 

1,005,906 

 

 

937,464 

Billings in excess of costs and estimated earnings

 

285,582 

 

 

288,311 

Accrued expenses and other current liabilities

 

160,964 

 

 

159,016 

Total current liabilities

 

1,552,422 

 

 

1,473,708 

LONG-TERM DEBT, less current maturities (net of unamortized

discount and debt issuance cost of $10,948 and $6,697)

 

725,763 

 

 

728,767 

DEFERRED INCOME TAXES

 

274,232 

 

 

273,310 

OTHER LONG-TERM LIABILITIES

 

138,734 

 

 

140,665 

Total liabilities 

 

2,691,151 

 

 

2,616,450 

CONTINGENCIES AND COMMITMENTS (NOTE 6)

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

Preferred stock - authorized 1,000,000 shares ($1 par value), none issued

 

 —

 

 

 —

Common stock - authorized 75,000,000 shares ($1 par value),
issued and outstanding 49,072,710 shares

 

49,073 

 

 

49,073 

Additional paid-in capital

 

1,039,070 

 

 

1,035,516 

Retained earnings

 

393,203 

 

 

377,803 

Accumulated other comprehensive loss

 

(41,015)

 

 

(42,165)

TOTAL STOCKHOLERS' EQUITY

 

1,440,331 

 

 

1,420,227 



 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLERS' EQUITY

$

4,131,482 

 

$

4,036,677 



The accompanying notes are an integral part of these Condensed Consolidated financial statements.

5


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



UNAUDITED







 

 

 

 

 



 

 

 

 

 



Three Months Ended



March 31,

(in thousands)

2016

 

2015

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

$

15,400 

 

$

5,126 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

14,496 

 

 

10,594 

Share-based compensation expense

 

3,647 

 

 

9,159 

Deferred income taxes

 

(155)

 

 

 —

(Gain) loss on sale of property and equipment

 

285 

 

 

(276)

Other long-term liabilities

 

(4,061)

 

 

2,381 

Other non-cash items

 

1,399 

 

 

(2,227)

Changes in other components of working capital 

 

(15,067)

 

 

(27,081)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

15,944 

 

 

(2,324)



 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Acquisition of property and equipment excluding financed purchases

 

(4,812)

 

 

(5,691)

Proceeds from sale of property and equipment

 

939 

 

 

798 

Change in restricted cash

 

(3,305)

 

 

277 

NET CASH USED IN INVESTING ACTIVITIES

 

(7,178)

 

 

(4,616)



 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Proceeds from debt

 

299,785 

 

 

280,200 

Repayment of debt

 

(287,484)

 

 

(262,112)

Issuance of common stock and effect of cashless exercise

 

 —

 

 

(773)

Debt issuance costs

 

(5,937)

 

 

 —

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

6,364 

 

 

17,315 



 

 

 

 

 

Net increase in cash and cash equivalents

 

15,130 

 

 

10,375 

Cash and cash equivalents at beginning of year

 

75,452 

 

 

135,583 

Cash and cash equivalents at end of period

$

90,582 

 

$

145,958 



 

 

 

 

 



The accompanying notes are an integral part of these Condensed Consolidated financial statements.

 

 

 

6


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

UNAUDITED

 

(1)     Basis of Presentation



The Condensed Consolidated Financial Statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States and, therefore, should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three months ended March 31, 2016 may not necessarily be indicative of results that can be expected for the full year.



In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the Company’s consolidated financial position as of March 31, 2016 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Management has evaluated all material events occurring subsequent to the date of the financial statements up to the filing of this Form 10-Q.

 

(2)     Recent Accounting Pronouncements



In the first quarter of 2016, the Company adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30). This ASU requires companies to present, in the balance sheet, debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In addition, the amortization of that debt discount is required to be presented as a component of interest expense. The Company applied this guidance retrospectively, effective January 1, 2016; accordingly, the Company reclassified unamortized debt issuance costs of $5.8 million out of Other Assets and to Long-Term Debt,  less current maturities in its December 31, 2015 Condensed Consolidated Balance Sheet.



In March 2016, the FASB issued ASU No. 2016-09, Improvement to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payments including: accounting for income taxes, forfeitures and statutory tax withholding requirements. The ASU recognizes all tax differences between the book expense and tax deduction through the income statement, eliminating the notion of an additional paid-in capital pool; the ASU allows an entity to elect either to continue to estimate the total number of awards for the which the requisite service period will not be rendered, as is current practice, or to account for forfeitures when they occur; the ASU stipulates that the net settlement of an award for statutory tax withholding purposes would not result, by itself, in liability classification of the award provided the amount withheld does not exceed the employee’s relevant maximum tax rate. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements.



In March 2016, the FASB issued ASU No. 2016-07, Equity Method and Joint Ventures (Topic 323), which eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership. Instead, an equity method investor adds the cost of acquiring the additional interest to the current basis of the previously held interest and adopts the equity method of accounting as of the date the investment becomes qualified as such. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.



In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic-842), which amends the existing guidance in ASC 840 Leases. This amendment requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases. Other significant provisions of the amendment include (i) defining the “lease term” to include the non-cancellable period together with periods for which there is a significant economic incentive for the lessee to extend or not terminate the lease; (ii) defining the initial lease liability to be recorded on the balance sheet to contemplate only those variable lease payments that depend on an index or that are in substance “fixed”; and (iii) a dual approach for determining whether lease expense is recognized on a straight-line or accelerated basis, depending on whether the lessee is expected to consume more than an insignificant portion of the leased asset’s economic benefits. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Lessees and lessors are required to use a modified retrospective transition method for existing leases. Accordingly, they would apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.



7

 


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Subtopic 740-10). This ASU requires entities to present all deferred tax assets and all deferred tax liabilities as noncurrent in a classified balance sheet. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company had $26.6 million of current deferred tax assets and $24.9 million of current deferred tax liabilities as of March 31 2016, which will be presented as noncurrent upon adoption of this ASU.



In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current industry-specific guidance, including ASC 605-35. The new standard prescribes a five-step revenue recognition model that focuses on transfer of control and entitlement to consideration in determining the amount of revenue to be recognized. The guidance also significantly expands qualitative and quantitative disclosure requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for the Company for fiscal years beginning after December 15, 2017 and interim periods within those years. The adoption will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.

 

(3)     Earnings per Share (EPS)



Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period, to which dilutive securities are included in the calculation of diluted EPS, using the treasury stock method. The calculations of the basic and diluted EPS for the three months ended March 31, 2016 and 2015 are presented below:



 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands, except per share data)

2016

 

2015

Net income

$

15,400 

 

$

5,126 



 

 

 

 

 

Weighted-average common shares outstanding - basic

 

49,079 

 

 

48,747 

Effect of diluted stock options and unvested restricted stock

 

206 

 

 

796 

Weighted-average common shares outstanding - diluted

 

49,285 

 

 

49,543 



 

 

 

 

 

Net income per share:

 

 

 

 

 

Basic

$

0.31 

 

$

0.11 

Diluted

$

0.31 

 

$

0.10 

Anti-dilutive securities not included above

 

1,704 

 

 

529 









(4)     Costs and estimated earnings in excess of billings



Reported costs and estimated earnings in excess of billings consists of the following:





 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Claims

$

395,708 

 

$

407,164 

Unapproved change orders

 

224,297 

 

 

270,019 

Other unbilled costs and profits

 

238,351 

 

 

227,992 

Total costs and estimated earnings in excess of billings

$

858,356 

 

$

905,175 



The prerequisite for billing claims and unapproved change orders is the final resolution and agreement between the parties. The prerequisite for billing other unbilled costs and profits is defined in the billing terms of each of the applicable contracts. 

 

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Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

(5)     Financial Commitments



Long-Term Debt



Long-term debt consists of the following:





 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Senior Notes

$

297,366 

 

$

297,118 

Revolving Credit Facility

 

178,738 

 

 

155,815 

Term Loan

 

220,198 

 

 

222,120 

Equipment financing, mortgages and acquisition-related notes

 

124,911 

 

 

133,288 

Other indebtedness

 

4,520 

 

 

9,343 

Total debt

 

825,733 

 

 

817,684 

Less – current maturities

 

(99,970)

 

 

(88,917)

Long-term debt, net

$

725,763 

 

$

728,767 



The following table reconciles the outstanding debt balance to the reported debt balances as of March 31, 2016 and December 31, 2015.





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



March 31, 2016

 

December 31, 2015

(in thousands)

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

 

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

Senior Notes

$

300,000 

 

$

(2,634)

 

$

297,366 

 

$

300,000 

 

$

(2,882)

 

$

297,118 

Revolving Credit Facility

 

183,500 

 

 

(4,762)

 

 

178,738 

 

 

158,000 

 

 

(2,185)

 

 

155,815 

Term Loan

 

223,750 

 

 

(3,552)

 

 

220,198 

 

 

223,750 

 

 

(1,630)

 

 

222,120 



The discount and debt issuance cost related to the Senior Notes is amortized as interest expense based on an imputed interest rate of 7.99%. The debt issuance cost related to the Revolving Credit Facility and Term Loan (as defined below) is amortized as interest expense based on an imputed interest rate of 8.84%.



Amended Credit Agreement



On February 26, 2016, we entered into Waiver and Amendment No. 1 (the “Amendment”) to the Sixth Amended and Restated Credit Agreement (the “Original Facility”; collectively, the “Credit Facility”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer and a syndicate of other lenders. As a result of the Company’s financial results for the fiscal year ended December 31, 2015, which included the previously reported $23.9 million non-cash, pre-tax charge from an adverse ruling on the Brightwater litigation matter in the third quarter as well as $45.6 million of pre-tax charges in the third and fourth quarters for Five Star Electric, the Company was not in compliance with the required consolidated leverage ratio and consolidated fixed charge coverage ratio under the Original Facility, which are both calculated on a rolling four quarter basis. In the Amendment, the lenders waived these covenant violations and modified certain provisions of the Original Facility.



The Credit Facility provides for a $300 million revolving credit facility (the “Revolver”) and a $250 million term loan (the “Term Loan”). As a result of the Amendment, both the Revolver and the Term Loan will now mature on May 1, 2018. The Term Loan principal payments have been modified to include certain additional principal payments, which will be applied against the balloon payment (discussed below). Borrowings under the Revolver bear interest, based either on Bank of America’s prime lending rate, plus an applicable margin, or the London Interbank Offered Rate (“LIBOR”), plus an applicable margin. Borrowings under the Term Loan bear interest based on LIBOR plus an applicable margin. Under the terms of the Amendment, for so long as the Company’s consolidated leverage ratio is greater than 3.5 to 1.0, it will not be permitted to make LIBOR-based borrowings and will therefore be subject to an increased interest rate on borrowings, with such rate being 100 basis points higher than the highest rate under the Original Facility while the Company’s consolidated leverage ratio is greater than 3.5 to 1.0 but not more than 4.0 to 1.0, and an additional 100 basis points higher while the Company’s consolidated leverage ratio is greater than 4.0 to 1.0. The Company also will be subject to increased commitment fees at these higher leverage ratio levels. In addition, until the Company’s consolidated leverage ratio goes below 3.5 to 1.0, LIBOR-based borrowings will convert to base rate borrowings. The Amendment provides for the exclusion of the impact of the Brightwater litigation matter from the calculation of the Company’s consolidated leverage ratio and

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Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

consolidated fixed charge coverage ratio. Interest payments will be due on a monthly basis, rather than a quarterly basis. If the Company is in compliance with the leverage and fixed charge ratio covenants provided in the Original Facility as of December 31, 2016, interest payments will again be due on a quarterly basis thereafter. The Amendment also removes the accordion feature of the Original Facility, which would have allowed either an increase of $300 million in the Revolver or the establishment of one or more new term loan commitments.



The Amendment also modifies several of the covenants in the Original Facility, including the Company’s maximum allowable consolidated leverage ratio to be at 4.25:1.00 in the first quarter of 2016, stepping down to 4.0:1.0 in the second and third quarters of 2016 and then returning to the Original Facility’s range of 3.25:1.00 to 3.00:1.00 beginning with the fourth quarter of 2016. The Credit Facility will continue to require the Company to maintain a minimum consolidated fixed charge coverage ratio of 1.25:1.00. Other usual and customary covenants for credit facilities of this type (such as, restrictions on the payment of dividends and share repurchases) were included in the Original Facility (subject to certain modifications made in the Amendment), while the Amendment adds covenants regarding the Company’s liquidity, including a cap on the cash balance in the Company’s bank account and a weekly minimum liquidity requirement (based on specified available cash balances and availability under the Revolver). The Amendment also requires the Company to achieve certain quarterly cash collection milestones and increases the lenders’ collateral package. Beginning in the fourth quarter of 2016, the Company will be required to make quarterly principal payments towards the Term Loan balloon payment, based on a percentage of certain forecasted cash collections for the prior quarter, in addition to the scheduled amortization payments of the Original Facility.



Substantially all of the Company’s subsidiaries unconditionally guarantee our obligations under the Credit Facility. The obligations under the Credit Facility are secured by a lien on substantially all real and personal property of the Company and its subsidiaries party thereto. Under the Amendment, the Company agreed to increase the lenders’ collateral package, including by pledging to the lenders (i) the equity interests of each direct domestic subsidiary of the Company and (ii) 65% of the stock of each material first-tier foreign restricted subsidiary of the Company.



We utilized the Revolver for letters of credit in the amount of $0.2 million as of March 31, 2016 and December 31, 2015. As of March 31, 2016, we had $116.3 million of additional capacity under the Revolver.



The Company was in compliance with the financial covenants under the Credit Facility for the period ended March 31, 2016.

 

(6)     Contingencies and Commitments



The Company and certain of its subsidiaries are involved in litigation and are contingently liable for commitments and performance guarantees arising in the ordinary course of business. The Company and certain of its customers have made claims arising from the performance under their contracts. The Company recognizes certain significant claims for recovery of incurred cost when it is probable that the claim will result in additional contract revenue and when the amount of the claim can be reliably estimated. These assessments require judgments concerning matters such as litigation developments and outcomes, the anticipated outcome of negotiations, the number of future claims and the cost of both pending and future claims. In addition, because most contingencies are resolved over long periods of time, liabilities may change in the future due to various factors.



Several matters are in the litigation and dispute resolution process. The following discussion provides a background and current status of the more significant matters.



Long Island Expressway/Cross Island Parkway Matter



The Company reconstructed the Long Island Expressway/Cross Island Parkway Interchange project for the New York State Department of Transportation (the “NYSDOT”). The $130 million project was substantially completed in January 2004 and was accepted by the NYSDOT as finally complete in February 2006. The Company incurred significant added costs in completing its work and suffered extended schedule costs due to numerous design errors, undisclosed utility conflicts, lack of coordination with local agencies and other interferences for which the Company believes the NYSDOT is responsible.



In March 2011, the Company filed its claim and complaint with the New York State Court of Claims and served to the New York State Attorney General’s Office, seeking damages in the amount of $53.8 million. In May 2011, the NYSDOT filed a motion to dismiss the Company’s claim on the grounds that the Company had not provided required documentation for project closeout and filing of a claim. In September 2011, the Company reached agreement on final payment with the Comptroller’s Office on behalf of the NYSDOT which resulted in an amount of $0.5 million payable to the Company and formally closed out the project allowing the Company to re-file its claim. The Company re-filed its claim in the amount of $53.8 million with the NYSDOT in February 2012 and

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with the Court of Claims in March 2012. In May 2012, the NYSDOT served its answer and counterclaims in the amount of $151 million alleging fraud in the inducement and punitive damages related to disadvantaged business enterprise (“DBE”) requirements for the project. The Court subsequently ruled that NYSDOT’s counterclaims may only be asserted as a defense and offset to the Company’s claims and not as affirmative claims. In November 2014, the Appellate Division First Department affirmed the dismissal of the City’s affirmative defenses and counterclaims based on DBE fraud. The Company does not expect the counterclaims to have any material effect on its consolidated financial statements.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Fontainebleau Matter



Desert Mechanical Inc. (“DMI”) and Fisk Electric Company (“Fisk”), wholly owned subsidiaries of the Company, were subcontractors on the Fontainebleau Project in Las Vegas (“Fontainebleau”), a hotel/casino complex with approximately 3,800 rooms. In June 2009, Fontainebleau filed for bankruptcy protection, under Chapter 11 of the U.S. Bankruptcy Code, in the Southern District of Florida. Fontainebleau is headquartered in Miami, Florida.



DMI and Fisk filed liens in Nevada for approximately $44 million, representing unreimbursed costs to date and lost profits, including anticipated profits. Other unaffiliated subcontractors have also filed liens. In June 2009, DMI filed suit against Turnberry West Construction, Inc., the general contractor, in the 8th Judicial District Court, Clark County, Nevada (the “District Court”), and in May 2010, the court entered an order in favor of DMI for approximately $45 million.



In January 2010, the Bankruptcy Court approved the sale of the property to Icahn Nevada Gaming Acquisition, LLC, and this transaction closed in February 2010. As a result of a July 2010 ruling relating to certain priming liens, there was approximately $125 million set aside from this sale, which is available for distribution to satisfy the creditor claims based on seniority. At that time, the total estimated sustainable lien amount was approximately $350 million. The project lender filed suit against the mechanic’s lien claimants, including DMI and Fisk, alleging that certain mechanic’s liens are invalid and that all mechanic’s liens are subordinate to the lender’s claims against the property. The Nevada Supreme Court ruled in October 2012 in an advisory opinion at the request of the Bankruptcy Court that lien priorities would be determined in favor of the mechanic lien holders under Nevada law.



In October 2013, a settlement was reached by and among the Statutory Lienholders and the other interested parties. The Bankruptcy Court appointed a mediator to facilitate the execution of that settlement agreement, but the mediator was unable to yield a settlement. DMI will file a Motion to Terminate Mediation and proceed with litigating its claims in the District Court.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Honeywell Street/Queens Boulevard Bridges Matter



In 1999, the Company was awarded a contract for reconstruction of the Honeywell Street/Queens Boulevard Bridges project for the City of New York (the “City”). In June 2003, after substantial completion of the project, the Company initiated an action to recover $8.8 million in claims against the City on behalf of itself and its subcontractors. In March 2010, the City filed counterclaims for $74.6 million and other relief, alleging fraud in connection with the DBE requirements for the project. In May 2010, the Company served the City with its response to the City’s counterclaims and affirmative defenses. In August 2013, the Court granted the Company’s motion to dismiss the City’s affirmative defenses and counterclaims relating to fraud. In September 2013, the City filed a Notice of Appeal to the Court’s decision; said appeal was dismissed by the Appellate Court in November 2014. A notice of trial has been filed.



The Company does not expect ultimate resolution of this matter to have any material effect on its consolidated financial statements.



Westgate Planet Hollywood Matter



Tutor-Saliba Corporation (“TSC”), a wholly owned subsidiary of the Company, contracted to construct a timeshare development project in Las Vegas which was substantially completed in December 2009. The Company’s claims against the owner, Westgate Planet Hollywood Las Vegas, LLC (“WPH”), relate to unresolved owner change orders and other claims. The Company filed a lien on the project in the amount of $23.2 million, and filed its complaint with the District Court, Clark County, Nevada. Several

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subcontractors have also recorded liens, some of which have been released by bonds and some of which have been released as a result of subsequent payment. WPH has posted a mechanic’s lien release bond for $22.3 million.



WPH filed a cross-complaint alleging non-conforming and defective work for approximately $51 million, primarily related to alleged defects, misallocated costs, and liquidated damages. WPH revised the amount of their counterclaims to approximately $45 million.



Following multiple post-trial motions, final judgment was entered in this matter on March 20, 2014. TSC was awarded total judgment in the amount of $19.7 million on its breach of contract claim, which includes an award of interest up through the date of judgment, plus attorney’s fees and costs. WPH has paid $0.6 million of that judgment. WPH was awarded total judgment in the amount of $3.1 million on its construction defect claims, which includes interest up through the date of judgment. The awards are not offsetting. WPH and its Sureties have filed a notice of appeal. TSC has filed a notice of appeal on the defect award. In July 2014, the Court ordered WPH to post an additional supersedeas bond on appeal, in the amount of $1.7 million, in addition to the lien release bond of $22.3 million, which increases the security up to $24.0 million. The Nevada Supreme Court has not yet ruled on this matter.



The Company does not expect ultimate resolution of this matter to have any material effect on its consolidated financial statements. Management has made an estimate of the total anticipated recovery on this project and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



U.S. Department of Commerce, National Oceanic and Atmospheric Administration Matter



Rudolph and Sletten, Inc. (“R&S”), a wholly owned subsidiary of the Company, entered into a contract with the United States Department of Commerce, National Oceanic and Atmospheric Administration (“NOAA”) for the construction of a 287,000 square-foot facility for NOAA’s Southwest Fisheries Science Center Replacement Headquarters and Laboratory in La Jolla, California. The contract work began on May 24, 2010, and was substantially completed in September 2012. R&S incurred significant additional costs as a result of a design that contained errors and omissions, NOAA’s unwillingness to correct design flaws in a timely fashion and a refusal to negotiate the time and pricing associated with change order work.



R&S has filed three certified claims against NOAA for contract adjustments related to the unresolved Owner change orders, delays, design deficiencies and other claims. The First Certified Claim was submitted on August 20, 2013, in the amount of $26.8 million ("First Certified Claim") and the Second Certified Claim was submitted on October 30, 2013, in the amount of $2.6 million ("Second Certified Claim") and the Third Certified Claim was submitted on October 1, 2014 in the amount of $0.7 million (“Third Certified Claim”).



NOAA requested an extension to issue a decision on the First Certified Claim and on the Third Certified Claim, but did not request an extension of time to review the Second Certified Claim. On January 6, 2014, R&S filed suit in the United States Federal Court of Claims on the Second Certified Claim plus interest and attorney's fees and costs. This was followed by a submission of a lawsuit on the First Certified Claim on July 31, 2014. In February 2015, the Court denied NOAA’s motion to dismiss the Second Certified Claim. In March 2015, the Contracting Officer issued decisions on all Claims accepting a total of approximately $1.0 million of claims and denying approximately $29.5 million of claims. On April 14, 2015, the Court consolidated the cases and has commenced discovery through mid-2016. No trial date has been set.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Five Star Electric Matter



In the third quarter of 2015, Five Star Electric Corp. ("Five Star"), a subsidiary of the Company that was acquired in 2011, entered into a tolling agreement related to an ongoing investigation being conducted by the United States Attorney for the Eastern District of New York (“USAO EDNY”). The tolling agreement extended the statute of limitations to avoid the expiration of any unexpired statute of limitations while the investigation is pending. Five Star has been cooperating with the USAO EDNY since late June 2014, when it was first made aware of the investigation, and has been providing information related to its use of certain minority-owned, women-owned, small and disadvantaged business enterprises and, in addition, most recently, information regarding certain of Five Star’s employee compensation, benefit and tax practices. The investigation covers the period of 2005-2014.



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The Company cannot predict the ultimate outcome of the investigation and cannot accurately estimate any potential liability that Five Star or the Company may incur or the impact of the results of the investigation on Five Star or the Company.



Alaskan Way Viaduct Matter



In January 2011, Seattle Tunnel Partners (“STP”), a joint venture between Dragados USA, Inc. and the Company, entered into a design-build contract with the Washington State Department of Transportation ("WSDOT") for the construction of a large diameter bored tunnel in downtown Seattle, King County, Washington to replace the Alaskan Way Viaduct, also known as State Route 99.



The construction of the large diameter bored tunnel requires the use of a tunnel boring machine (“TBM”). In December 2013, the TBM struck a steel pipe, installed by WSDOT as a well casing for an exploratory well. The TBM was damaged and was required to be shut down for repair. STP has asserted that the steel pipe casing was a differing site condition that WSDOT failed to properly disclose. The Disputes Review Board mandated by the contract to hear disputes issued a decision finding the steel casing was a Type I differing site condition. WSDOT has not accepted that finding.



The TBM is insured under a Builder’s Risk Insurance Policy (“the Policy”) with Great Lakes Reinsurance (UK) PLC and a consortium of other insurers (the “Insurers”). STP submitted the claims to the insurer and requested interim payments under the Policy. The Insurers refused to pay and denied coverage. In June 2015, STP filed a lawsuit in the King County Superior Court, State of Washington (“Washington Superior Court”) seeking declaratory relief concerning contract interpretation as well as damages as a result of the Insurers’ breach of its obligations under the terms of the Policy.  WSDOT is deemed a plaintiff since WSDOT is an insured under the Policy and had filed its own claim for damages. Trial is scheduled for June 2017.



In October 2015, WSDOT filed a complaint against STP in the Washington Superior Court for breach of contract and declaratory relief concerning contract interpretation. The Complaint was dismissed upon motion by STP. In March 2016, WSDOT refiled action against STP in Thurston County Superior Court.



As of March 2016, the Company has concluded that the potential for a material adverse financial impact due to the Insurer’s and WSDOT’s respective legal actions are neither probable nor remote. Management has made an estimate of the total anticipated recovery on this project and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the financial statements at that time.

 

(7)     Share-Based Compensation



The Company’s share-based compensation plan is described, and informational disclosures are provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. In the first three months of 2016 and 2015, 483,387 and 291,500 restricted stock units were granted at weighted-average per share prices of $19.14 and $23.35, respectively. During the first three months of 2016 and 2015, the Company awarded 274,000 and 259,000 stock options at weighted-average exercise prices of $16.20 and $16.07 per share, respectively. The options expire ten years after the grant date. Both the restricted stock units and options granted in 2016 and 2015 vest upon the achievement of defined performance targets.

  

(8)     Other Comprehensive Income (Loss)



The tax effects of the components of other comprehensive income (loss) are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Three Months Ended



March 31, 2016

 

March 31, 2015

(in thousands)

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

 

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plan adjustments

$

427 

 

$

(180)

 

$

247 

 

$

 -

 

$

 -

 

$

 -

Foreign currency translation adjustment

 

1,604 

 

 

(674)

 

 

930 

 

 

(964)

 

 

376 

 

 

(588)

Unrealized gain (loss) in fair value of investments

 

13 

 

 

(5)

 

 

8 

 

 

(16)

 

 

6 

 

 

(10)

Unrealized gain (loss) in fair value of interest rate swap

 

(62)

 

 

27 

 

 

(35)

 

 

74 

 

 

(29)

 

 

45 

Total other comprehensive income (loss)

$

1,982 

 

$

(832)

 

$

1,150 

 

$

(906)

 

$

353 

 

$

(553)



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The following tables present the changes in accumulated other comprehensive income (“AOCI”) balances by component (after tax) for the three months ended March 31, 2016 and 2015.





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2016

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Gain in Fair Value of Investments, net

 

Unrealized Gain (Loss) in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(38,242)

 

$

(4,603)

 

$

656 

 

$

24 

 

$

(42,165)

Other comprehensive income (loss) before reclassifications

 

 —

 

 

930 

 

 

8 

 

 

(35)

 

 

903 

Amounts reclassified from AOCI

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Total other comprehensive income (loss)

 

247 

 

 

930 

 

 

8 

 

 

(35)

 

 

1,150 

Balance at the end of the quarter

$

(37,995)

 

$

(3,673)

 

$

664 

 

$

(11)

 

$

(41,015)







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2015

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Loss in Fair Value of Investments, net

 

Unrealized Gain in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(40,268)

 

$

(1,389)

 

$

(110)

 

$

149 

 

$

(41,618)

Other comprehensive income (loss)

 

 —

 

 

(588)

 

 

(10)

 

 

45 

 

 

(553)

Balance at the end of the quarter

$

(40,268)

 

$

(1,977)

 

$

(120)

 

$

194 

 

$

(42,171)



The items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Operations are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Location in

 

Three Months Ended



 

Condensed Consolidated

 

March 31,

(in thousands)

 

Statements of Earnings

 

2016

 

2015

Defined benefit pension plan adjustments

 

Various accounts(1)

 

$

427 

 

$

 —

Income tax benefit

 

Income tax expense

 

 

(180)

 

 

 —

Net of tax

 

 

 

$

247 

 

$

 —


(1)

Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and general and administrative expense.

  

(9)     Income Taxes



The Company’s income tax provision was $11.3 million for the three months ended March 31, 2016, with an effective tax rate of 42.4% for the three months ended March 31, 2016, compared to $3.1 million with an effective tax rate of 37.5% for the same period in 2015. The effective tax rate for the first quarter of 2016 was unfavorably impacted by various discrete items, including certain state tax rate changes on deferred taxes. The effective tax rate in the first quarter of 2015 was favorably impacted by adjustments related to prior year tax positions.

 

(10)     Fair Value Measurements



The fair value hierarchy established by ASC 820, Fair Value Measurements, prioritizes the use of inputs used in valuation techniques into the following three levels:



Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — inputs are other than Level 1 inputs that are observable, either directly or indirectly

Level 3 — unobservable inputs



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The following is a summary of financial statement items carried at estimated fair values measured on a recurring basis as of the dates presented:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

Fair Value Hierarchy

 

Fair Value Hierarchy

(in thousands)

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Level 1

 

Level 2

 

Level 3

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (a)

 

$

90,582 

 

$

90,582 

 

$

 —

 

$

 —

 

$

75,452 

 

$

75,452 

 

$

 —

 

$

 —

Restricted cash (a)

 

 

49,158 

 

 

49,158 

 

 

 —

 

 

 —

 

 

45,853 

 

 

45,853 

 

 

 —

 

 

 —

Investments in lieu of retainage (b)

 

 

44,036 

 

 

37,988 

 

 

6,048 

 

 

 —

 

 

41,566 

 

 

35,350 

 

 

6,216 

 

 

 —

Total

 

$

183,776 

 

$

177,728 

 

$

6,048 

 

$

 —

 

$

162,871 

 

$

156,655 

 

$

6,216 

 

$

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract (c)

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —

Total

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —


(a)

Cash, cash equivalents and restricted cash consist primarily of money market funds with original maturity dates of three months or less, for which fair value is determined through quoted market prices.

(b)

Investments in lieu of retainage are classified as accounts  receivable and are comprised primarily of money market funds, U.S. Treasury Notes and other municipal bonds, the majority of which are rated Aa3 or better. The fair values of the U.S. Treasury Notes and municipal bonds are obtained from readily-available pricing sources for comparable instruments and, as such, the Company has classified these assets as Level 2.

(c)

The Company values the interest rate swap liability utilizing a discounted cash flow model that takes into consideration forward interest rates observable in the market and the counterparty’s risk.



The Company did not have transfers between Levels 1 and 2 for either financial assets or liabilities, during the three months ended March 31, 2016 or 2015.



The carrying amount of cash and cash equivalents approximates fair value due to the short-term nature of these items. The carrying value of receivables, payables and other amounts arising out of normal contract activities, including retainage, which may be settled beyond one year, is estimated to approximate fair value. Of the Company’s long-term debt, the fair values of the Senior Notes as of March 31, 2016 and December 31, 2015 were $295.5 million and $305.6 million, respectively, compared to the carrying value of $299.1 million and $299.0 million as of March 31, 2016 and December 31, 2015, respectively. The fair value of the Senior Notes was estimated using current observable market prices for the Company’s Senior Notes, which are Level 1 inputs. The reported value of the Company’s remaining long-term debt at March 31, 2016 and December 31, 2015 approximates fair value.

 

(11)     Business Segments



The Company offers general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of the manpower, equipment, materials and subcontractors required for the timely completion of a project in accordance with the terms and specifications contained in a construction contract. The Company also offers self-performed construction services: site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and HVAC. As described further below, our business is conducted through three segments: Civil, Building and Specialty Contractors. These segments are determined based on how the Company’s Chairman and Chief Executive Officer (chief operating decision maker) aggregates business units when evaluating performance and allocating resources.



The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure. The civil contracting services include construction and rehabilitation of highways, bridges, mass-transit systems, and water management and wastewater treatment facilities.



The Building segment has significant experience providing services to a number of specialized building markets for private and public works customers, including the high-rise residential, hospitality and gaming, transportation, health care, commercial and government offices, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and high-tech markets.



The Specialty Contractors segment specializes in electrical, mechanical, plumbing, HVAC, fire protection systems and pneumatically placed concrete for a full range of civil and building construction projects in the industrial, commercial, hospitality and gaming, and

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mass-transit end markets. This segment provides the Company with unique strengths and capabilities, which allow the Company to position itself as a full-service contractor with greater control over scheduled work, project delivery and risk management.



The following table sets forth certain reportable segment information relating to the Company’s operations for the three months ended March 31, 2016 and 2015:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Reportable Segments

 

 

 

 

 

 



 

 

 

 

 

 

Specialty

 

 

 

 

 

 

 

Consolidated

(in thousands)

Civil

 

 

Building

 

Contractors

 

Totals

 

Corporate

 

Total

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

367,501 

 

$

487,994 

 

$

281,773 

 

$

1,137,268 

 

$

 —

 

$

1,137,268 

Elimination of intersegment revenue

 

(31,643)

 

 

(20,256)

 

 

 —

 

 

(51,899)

 

 

 —

 

 

(51,899)

Revenue from external customers

$

335,858 

 

$

467,738 

 

$

281,773 

 

$

1,085,369 

 

$

 —

 

$

1,085,369 

Income from construction operations

$

33,665 

 

$

12,450 

 

$

9,413 

 

$

55,528 

 

$

(15,406)

(a)

$

40,122 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

392,876 

 

$

416,063 

 

$

293,017 

 

$

1,101,956 

 

$

 —

 

$

1,101,956 

Elimination of intersegment revenue

 

(18,202)

 

 

(17,233)

 

 

(56)

 

 

(35,491)

 

 

 —

 

 

(35,491)

Revenue from external customers

$

374,674 

 

$

398,830 

 

$

292,961 

 

$

1,066,465 

 

$

 —

 

$

1,066,465 

Income from construction operations

$

30,593 

 

$

(2,279)

 

$

10,524 

 

$

38,838 

 

$

(18,754)

(a)

$

20,084 

(a)

Consists primarily of corporate general and administrative expenses.



During the three months ended March 31, 2016, the Company recorded net favorable adjustments totaling $3.0 million in income from construction operations ($0.04 per diluted share) for various Five Star Electric projects in New York in the Specialty Contractors segment. The net impact included material adjustments related to two electrical subcontract projects: a favorable adjustment of $14.0 million for a completed project ($0.17 per diluted share) and an unfavorable adjustment of $13.8 million for a project that is nearly complete ($0.17 per diluted share).



There were no material changes in contract estimates at completion that impacted income from construction operations for the three months ended March 31, 2015.



Income from construction operations for the three months ended March 31, 2016 includes depreciation and amortization of $8.1 million for the Civil segment, $0.6 million for the Building segment, $1.3 million for the Specialty Contractors segment and $2.9 million for Corporate. Income from construction operations for the three months ended March 31, 2015 includes depreciation and amortization of $5.5 million for the Civil segment, $0.7 million for the Building segment, $1.4 million for the Specialty Contractors segment and $2.5 million for Corporate.



A reconciliation of segment results to the consolidated income before income taxes is as follows:





 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Income from construction operations

$

40,122 

 

$

20,084 

Other income (expense), net

 

682 

 

 

(754)

Interest expense

 

(14,080)

 

 

(11,125)

Income before income taxes

$

26,724 

 

$

8,205 



Total assets by segment are as follows:







 

 

 

 

 



 

 

 

 

 

(in thousands)

March 31, 2016

 

December 31, 2015

Civil

$

1,947,787 

 

$

1,964,038 

Building

 

902,669 

 

 

795,851 

Specialty Contractors

 

843,379 

 

 

860,285 

Corporate and other (a)

 

437,647 

 

 

416,503 

Total Assets

$

4,131,482 

 

$

4,036,677 

(a)

Consists principally of cash and cash equivalents as well as corporate transportation and other equipment.

 



16


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

(12)     Employee Pension Plans



The Company has a defined benefit pension plan and an unfunded supplemental retirement plan. Effective September 1, 2004, all benefit accruals under these plans were frozen; however, the current vested benefit was preserved. The pension disclosure presented below includes aggregated amounts for both of the Company’s plans.



The following table sets forth the net periodic benefit cost for the three months ended March 31, 2016 and 2015:





 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Interest cost

$

1,053 

 

$

1,011 

Expected return on plan assets

 

(1,203)

 

 

(1,256)

Amortization of net loss

 

427 

 

 

1,460 

Other

 

150 

 

 

 —

Net periodic benefit cost

$

427 

 

$

1,215 



The Company contributed $0.3 million and $0.9 million to its defined benefit pension plan during the three months ended March 31, 2016 and 2015, respectively. The Company expects to contribute an additional $1.5 million to its defined benefit pension plan during the remainder of fiscal year 2016.

 

(13)     Related Party Transactions



The Company leases certain facilities from an entity owned by Ronald N. Tutor, the Company’s Chairman and Chief Executive Officer, at market lease rates. Under these leases the Company paid $0.7 million for each of the three months ended March 31, 2016 and 2015, respectively, and recognized expense of $0.8 million for each of the three months ended March 31, 2016 and 2015, respectively.  



Raymond R. Oneglia, Vice Chairman of O&G Industries, Inc. (“O&G”), is a director of the Company, and O&G owns 500,000 shares of the Company’s common stock. The Company and O&G formed a joint venture to provide contracting services for a highway construction project. O&G provides equipment and services to the joint venture on customary trade terms. The joint venture paid O&G $1.1 million and $2.0 million for the three months ended March 31, 2016 and 2015, respectively. The Company has a  30% percent interest in the joint venture, which it accounts for using the proportionate consolidation method.



Peter Arkley, Senior Managing Director, Construction Services Group, of Alliant Insurance Services, Inc. (“Alliant”), is a director of the Company. The Company uses Alliant for various insurance related services. The associated expenses for services provided for the three months ended March 31, 2016 and 2015 were $2.0 million and $0.8 million, respectively. The Company owed Alliant $1.9 million and $7.5 million as of March 31, 2016 and December 31, 2015, respectively, for services rendered.

 



 

(14)     Separate Financial Information of Subsidiary Guarantors of Indebtedness



The Company’s obligations on its Senior Notes is guaranteed by substantially all of the Company’s existing and future subsidiaries that guarantee obligations under the Credit Facility (the “Guarantors”). The guarantees are full and unconditional as well as joint and several, and the Guarantors are 100%-owned by the Company.



The following supplemental condensed consolidating financial information reflects the summarized financial information of the Company as the issuer of the senior unsecured notes, the Guarantors and the Company’s non-guarantor subsidiaries on a combined basis. 

17


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

176,725 

 

$

986,361 

 

$

7,104 

 

$

(84,821)

 

$

1,085,369 

Cost of operations

 

 

(154,289)

 

 

(910,809)

 

 

 —

 

 

84,821 

 

 

(980,277)

Gross profit

 

$

22,436 

 

$

75,552 

 

$

7,104 

 

$

 —

 

$

105,092 

General and administrative expenses

 

 

(21,658)

 

 

(42,837)

 

 

(475)

 

 

 —

 

 

(64,970)

Income from construction operations

 

$

778 

 

$

32,715 

 

$

6,629 

 

$

 —

 

$

40,122 

Equity in earnings of subsidiaries

 

 

23,079 

 

 

 —

 

 

 —

 

 

(23,079)

 

 

 —

Other income (expense), net

 

 

(621)

 

 

1,060 

 

 

243 

 

 

 —

 

 

682 

Interest expense

 

 

(13,484)

 

 

(596)

 

 

 —

 

 

 —

 

 

(14,080)

Income (Loss) before income taxes

 

$

9,752 

 

$

33,179 

 

$

6,872 

 

$

(23,079)

 

$

26,724 

Benefit (Provision) for income taxes

 

 

5,648 

 

 

(14,060)

 

 

(2,912)

 

 

 —

 

 

(11,324)

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

938 

 

 

 —

 

 

 —

 

 

(938)

 

 

 —

Defined benefit pension plan adjustments

 

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Foreign currency translation adjustment

 

 

 —

 

 

930 

 

 

 —

 

 

 —

 

 

930 

Unrealized gain in fair value of investments

 

 

 —

 

 

8 

 

 

 —

 

 

 —

 

 

8 

Unrealized loss in fair value of interest rate swap

 

 

(35)

 

 

 —

 

 

 —

 

 

 —

 

 

(35)

Total other comprehensive (loss) income, net of tax

 

$

1,150 

 

$

938 

 

$

 —

 

$

(938)

 

$

1,150 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

16,550 

 

$

20,057 

 

$

3,960 

 

$

(24,017)

 

$

16,550 



18


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

236,292 

 

$

885,103 

 

$

4,291 

 

$

(59,221)

 

$

1,066,465 

Cost of operations

 

 

(209,833)

 

 

(825,094)

 

 

 —

 

 

59,221 

 

 

(975,706)

Gross profit

 

$

26,459 

 

$

60,009 

 

$

4,291 

 

$

 —

 

$

90,759 

General and administrative expenses

 

 

(25,035)

 

 

(45,166)

 

 

(474)

 

 

 —

 

 

(70,675)

Income from construction operations

 

$

1,424 

 

$

14,843 

 

$

3,817 

 

$

 —

 

$

20,084 

Equity in earnings of subsidiaries

 

 

11,940 

 

 

 —

 

 

 —

 

 

(11,940)

 

 

 —

Other income (expense), net

 

 

(2,068)

 

 

1,196 

 

 

118 

 

 

 —

 

 

(754)

Interest expense

 

 

(10,264)

 

 

(861)

 

 

 —

 

 

 —

 

 

(11,125)

Income (Loss) before income taxes

 

$

1,032 

 

$

15,178 

 

$

3,935 

 

$

(11,940)

 

$

8,205 

Benefit (Provision) for income taxes

 

 

4,094 

 

 

(5,696)

 

 

(1,477)

 

 

 —

 

 

(3,079)

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

(598)

 

 

 —

 

 

 —

 

 

598 

 

 

 —

Defined benefit pension plan adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Foreign currency translation adjustment

 

 

 —

 

 

(588)

 

 

 —

 

 

 —

 

 

(588)

Unrealized loss in fair value of investments

 

 

 —

 

 

(10)

 

 

 —

 

 

 —

 

 

(10)

Unrealized gain in fair value of interest rate swap

 

 

45 

 

 

 —

 

 

 —

 

 

 —

 

 

45 

Total other comprehensive (loss) income, net of tax

 

$

(553)

 

$

(598)

 

$

 —

 

$

598 

 

$

(553)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

4,573 

 

$

8,884 

 

$

2,458 

 

$

(11,342)

 

$

4,573 



19


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

Restricted cash

 

3,260 

 

 

3,686 

 

 

42,212 

 

 

 —

 

 

49,158 

Accounts receivable

 

393,473 

 

 

1,300,463 

 

 

90,244 

 

 

(168,519)

 

 

1,615,661 

Costs and estimated earnings in excess of billings

 

115,635 

 

 

816,642 

 

 

152 

 

 

(74,073)

 

 

858,356 

Deferred income taxes

 

16,566 

 

 

9,984 

 

 

 —

 

 

 —

 

 

26,550 

Other current assets

 

39,685 

 

 

41,897 

 

 

8,478 

 

 

1,930 

 

 

91,990 

Total current assets

$

618,345 

 

$

2,212,823 

 

$

141,791 

 

$

(240,662)

 

$

2,732,297 

Property and equipment

 

102,371 

 

 

413,513 

 

 

4,006 

 

 

 —

 

 

519,890 

Intercompany notes and receivables

 

 —

 

 

270,676 

 

 

 —

 

 

(270,676)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

95,654 

 

 

 —

 

 

 —

 

 

95,654 

Investment in subsidiaries

 

2,122,342 

 

 

 —

 

 

 —

 

 

(2,122,342)

 

 

 —

Other Assets

 

92,320 

 

 

86,370 

 

 

25,735 

 

 

(5,790)

 

 

198,635 

Total assets

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

125,255 

 

$

34,715 

 

$

 —

 

$

(60,000)

 

$

99,970 

Accounts payable

 

210,902 

 

 

974,776 

 

 

1,634 

 

 

(181,406)

 

 

1,005,906 

Billings in excess of costs and estimated earnings

 

88,888 

 

 

198,182 

 

 

593 

 

 

(2,081)

 

 

285,582 

Accrued expenses and other current liabilities

 

36,144 

 

 

79,481 

 

 

42,514 

 

 

2,825 

 

 

160,964 

Total current liabilities

$

461,189 

 

$

1,287,154 

 

$

44,741 

 

$

(240,662)

 

$

1,552,422 

Long-term debt, less current maturities

 

655,029 

 

 

76,524 

 

 

 —

 

 

(5,790)

 

 

725,763 

Deferred income taxes

 

40,066 

 

 

211,828 

 

 

22,338 

 

 

 —

 

 

274,232 

Other long-term liabilities

 

104,897 

 

 

2,323 

 

 

31,514 

 

 

 —

 

 

138,734 

Intercompany notes and advances payable

 

233,866 

 

 

 —

 

 

36,810 

 

 

(270,676)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,440,331 

 

 

2,086,213 

 

 

36,129 

 

 

(2,122,342)

 

 

1,440,331 

Total liabilities and stockholders' equity

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 

 

 

20


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

47,196 

 

$

26,892 

 

$

1,364 

 

$

 —

 

$

75,452 

Restricted cash

 

3,369 

 

 

3,283 

 

 

39,201 

 

 

 —

 

 

45,853 

Accounts receivable

 

358,437 

 

 

1,179,919 

 

 

82,004 

 

 

(146,745)

 

 

1,473,615 

Costs and estimated earnings in excess of billings

 

114,580 

 

 

868,026 

 

 

152 

 

 

(77,583)

 

 

905,175 

Deferred income taxes

 

2,255 

 

 

21,356 

 

 

2,695 

 

 

 —

 

 

26,306 

Other current assets

 

60,119 

 

 

48,482 

 

 

11,662 

 

 

(11,419)

 

 

108,844 

Total current assets

$

585,956 

 

$

2,147,958 

 

$

137,078 

 

$

(235,747)

 

$

2,635,245 

Property and equipment

 

105,306 

 

 

414,143 

 

 

4,076 

 

 

 —

 

 

523,525 

Intercompany notes and receivables

 

 —

 

 

148,637 

 

 

 —

 

 

(148,637)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

96,540 

 

 

 —

 

 

 —

 

 

96,540 

Investment in subsidiaries

 

1,962,983 

 

 

 —

 

 

 —

 

 

(1,962,983)

 

 

 —

Other Assets

 

58,722 

 

 

128,094 

 

 

15,268 

 

 

(5,723)

 

 

196,361 

Total assets

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

107,283 

 

$

41,634 

 

$

 —

 

$

(60,000)

 

$

88,917 

Accounts payable

 

211,679 

 

 

890,268 

 

 

3,222 

 

 

(167,705)

 

 

937,464 

Billings in excess of costs and estimated earnings

 

89,303 

 

 

203,003 

 

 

1,716 

 

 

(5,711)

 

 

288,311 

Accrued expenses and other current liabilities

 

6,145 

 

 

115,392 

 

 

39,810 

 

 

(2,331)

 

 

159,016 

Total current liabilities

$

414,410 

 

$

1,250,297 

 

$

44,748 

 

$

(235,747)

 

$

1,473,708 

Long-term debt, less current maturities

 

653,669 

 

 

80,821 

 

 

 —

 

 

(5,723)

 

 

728,767 

Deferred income taxes

 

 —

 

 

273,310 

 

 

 —

 

 

 —

 

 

273,310 

Other long-term liabilities

 

106,588 

 

 

3,278 

 

 

30,799 

 

 

 —

 

 

140,665 

Intercompany notes and advances payable

 

118,073 

 

 

 —

 

 

30,564 

 

 

(148,637)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,420,227 

 

 

1,912,672 

 

 

50,311 

 

 

(1,962,983)

 

 

1,420,227 

Total liabilities and stockholders' equity

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



 

21


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,626 

 

 

8,800 

 

 

70 

 

 

 —

 

 

14,496 

Equity in earnings of subsidiaries

 

 

(23,079)

 

 

 —

 

 

 —

 

 

23,079 

 

 

 —

Share-based compensation expense

 

 

3,647 

 

 

 —

 

 

 —

 

 

 —

 

 

3,647 

Deferred income taxes

 

 

(153)

 

 

(2)

 

 

 —

 

 

 —

 

 

(155)

(Gain) loss on sale of property and equipment

 

 

202 

 

 

83 

 

 

 —

 

 

 —

 

 

285 

Other long-term liabilities

 

 

(3,822)

 

 

(954)

 

 

715 

 

 

 —

 

 

(4,061)

Other non-cash items

 

 

(90)

 

 

1,489 

 

 

 —

 

 

 —

 

 

1,399 

Changes in other components of working capital 

 

 

12,879 

 

 

(25,578)

 

 

(2,368)

 

 

 —

 

 

(15,067)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

10,610 

 

$

2,957 

 

$

2,377 

 

$

 —

 

$

15,944 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment excluding financed purchases

 

 

(1,282)

 

 

(3,530)

 

 

 —

 

 

 —

 

 

(4,812)

Proceeds from sale of property and equipment

 

 

75 

 

 

864 

 

 

 —

 

 

 —

 

 

939 

(Increase) decrease in intercompany advances

 

 

 —

 

 

24,653 

 

 

 —

 

 

(24,653)

 

 

 —

Change in restricted cash

 

 

109 

 

 

(403)

 

 

(3,011)

 

 

 —

 

 

(3,305)

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(1,098)

 

$

21,584 

 

$

(3,011)

 

$

(24,653)

 

$

(7,178)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

299,785 

 

 

 —

 

 

 —

 

 

 —

 

 

299,785 

Repayment of debt

 

 

(276,202)

 

 

(11,282)

 

 

 —

 

 

 —

 

 

(287,484)

Debt Issuance Costs

 

 

(5,937)

 

 

 —

 

 

 —

 

 

 —

 

 

(5,937)

Increase (decrease) in intercompany advances

 

 

(24,628)

 

 

 —

 

 

(25)

 

 

24,653 

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

(6,982)

 

$

(11,282)

 

$

(25)

 

$

24,653 

 

$

6,364 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

2,530 

 

 

13,259 

 

 

(659)

 

 

 —

 

 

15,130 

Cash and cash equivalents at beginning of year

 

 

47,196 

 

 

26,892 

 

 

1,364 

 

 

 —

 

 

75,452 

Cash and cash equivalents at end of period

 

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

 

 

22


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,223 

 

 

5,303 

 

 

68 

 

 

 —

 

 

10,594 

Equity in earnings of subsidiaries

 

 

(11,940)

 

 

 —

 

 

 —

 

 

11,940 

 

 

 —

Share-based compensation expense

 

 

9,159 

 

 

 —

 

 

 —

 

 

 —

 

 

9,159 

Deferred income taxes

 

 

(24,392)

 

 

24,392 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of investments

 

 

(17)

 

 

17 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of property and equipment

 

 

17 

 

 

(293)

 

 

 —

 

 

 —

 

 

(276)

Other long-term liabilities

 

 

(1,288)

 

 

3,669 

 

 

 —

 

 

 —

 

 

2,381 

Other non-cash items

 

 

1,176 

 

 

(3,403)

 

 

 —

 

 

 —

 

 

(2,227)

Changes in other components of working capital 

 

 

(73,266)

 

 

43,701 

 

 

2,484 

 

 

 —

 

 

(27,081)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

 

$

(90,202)

 

$

82,868 

 

$

5,010 

 

$

 —

 

$

(2,324)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(729)

 

 

(4,962)

 

 

 —

 

 

 —

 

 

(5,691)

Proceeds from sale of property and equipment

 

 

 —

 

 

798 

 

 

 —

 

 

 —

 

 

798 

Decrease (increase) in intercompany advances

 

 

 —

 

 

(57,146)

 

 

 —

 

 

57,146 

 

 

 —

Change in restricted cash

 

 

 —

 

 

283 

 

 

(6)

 

 

 —

 

 

277 

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(729)

 

$

(61,027)

 

$

(6)

 

$

57,146 

 

$

(4,616)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

280,200 

 

 

 —

 

 

 —

 

 

 —

 

 

280,200 

Repayment of debt

 

 

(252,748)

 

 

(9,364)

 

 

 —

 

 

 —

 

 

(262,112)

Issuance of common stock and effect of cashless exercise

 

 

(773)

 

 

 —

 

 

 —

 

 

 —

 

 

(773)

Increase (decrease) in intercompany advances

 

 

61,103 

 

 

 —

 

 

(3,957)

 

 

(57,146)

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

87,782 

 

$

(9,364)

 

$

(3,957)

 

$

(57,146)

 

$

17,315 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(3,149)

 

 

12,477 

 

 

1,047 

 

 

 —

 

 

10,375 

Cash and cash equivalents at beginning of year

 

 

75,087 

 

 

36,764 

 

 

23,732 

 

 

 —

 

 

135,583 

Cash and cash equivalents at end of period

 

$

71,938 

 

$

49,241 

 

$

24,779 

 

$

 —

 

$

145,958 

  



 

23


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations



The following discusses our financial position at March 31, 2016 and the results of our operations for the three months ended March 31, 2016 and should be read in conjunction with: (1) the unaudited Condensed Consolidated Financial Statements and notes contained herein, and (2) the audited consolidated financial statements and accompanying notes to our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.



Forward-Looking Statements



This Quarterly Report on Form 10-Q, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our future results, which are intended to be covered by the safe harbor provision for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are statements that could be deemed forward-looking statements. Words such as “achieve,” “anticipate,” “assumes,” “believes,” “continue,” “could,” “estimate,” “expects,” “forecast,” “hope,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “would,” variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Although such statements are based on currently available financial and economic data as well as management’s estimates and expectations, forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause our actual results to differ materially from what may be inferred from the forward-looking statements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors potentially contributing to such differences include, among others:



·

A significant slowdown or decline in economic conditions;

·

Decreases in the level of government spending for infrastructure and other public projects;

·

Increased competition and failure to secure new contracts;

·

Failure to meet our obligations under our debt agreements;

·

Inaccurate estimates of contract risks, revenue or costs, which may result in lower than anticipated profits, or losses;

·

Client cancellations of, or reductions in scope under, contracts reported in our backlog;

·

Unfavorable outcomes of legal proceedings and failure to promptly recover significant working capital invested in projects subject to unresolved legal claims;

·

The requirement to perform extra, or change order, work, resulting in disputes or claims or adversely affecting our working capital, profits and cash flows;

·

Failure to meet contractual schedule requirements, which could result in higher cost and reduced profits or, in some cases, exposure to financial liability for liquidated damages and/or damages to customers;

·

Inability to retain key members of our management, to hire and retain personnel required to complete projects or implement succession plans for key officers;

·

Possible systems and information technology interruptions;

·

Failure of our joint venture partners to perform their venture obligations, which could impose additional financial and performance obligations on us, resulting in reduced profits or losses;

·

Failure to comply with laws and regulations related to government contracts;

·

Impairments of our goodwill or other indefinite-lived intangible assets;

·

Civil unrest, security issues, labor conditions and other unforeseeable events in the countries in which we do business, resulting in unanticipated losses.



Executive Overview

 

Consolidated revenue for the three months ended March 31, 2016 was $1.1 billion, an increase of 2% compared to the same period in 2015.



Income from construction operations for the three months ended March 31, 2016 was $40.1 million, about double compared to $20.1 million for the same period in 2015. The increase was principally due to increased activity on various mass-transit and building projects and lower general and administrative expenses.



The effective tax rate for the three months ended March 31, 2016 was 42.4% compared to 37.5% for three months ended March 31, 2015. See “Corporate, Tax and Other Matters” below for a detailed discussion of the changes in the effective tax rate.



Earnings per diluted share for three months ended March 31, 2016 as $0.31 compared to $0.10 for three months ended March 31, 2015. The strong increase was primarily due to the same factors that generated the increased income from construction operations, which are discussed above.

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Table of Contents

 



Consolidated new awards for the three months ended March 31, 2016 were $1.8 billion compared to $1.0 billion for the three months ended March 31, 2015. The increase was driven by a $663 million mass-transit project in New York in the Civil segment and a $285 million hospitality and gaming project in California in the Building segment.

 

Consolidated backlog as of March 31, 2016 was $8.2 billion compared to $7.8 billion as of March 31, 2015. The increase was primarily due to the new awards mentioned above. As of March 31, 2016, the mix of backlog by segment was approximately 41%, 35% and 24% for the Civil, Building and Specialty Contractors segments, respectively.



The following table presents the Company’s backlog by business segment, reflecting changes from December 31, 2015 to March 31, 2016:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Backlog at

 

New

 

Revenue

 

Backlog at

(in millions)

December 31, 2015

 

Awards (a)

 

Recognized

 

March 31, 2016

Civil

$

2,743.7 

 

$

938.3 

 

$

(335.9)

 

$

3,346.1 

Building

 

2,780.4 

 

 

562.0 

 

 

(467.7)

 

 

2,874.7 

Specialty Contractors

 

1,941.0 

 

 

279.2 

 

 

(281.8)

 

 

1,938.4 

Total

$

7,465.1 

 

$

1,779.5 

 

$

(1,085.4)

 

$

8,159.2 

(a)

New awards consist of the original contract price of projects added to our backlog plus or minus subsequent changes to the estimated total contract price of existing contracts.



In addition to our existing backlog, we have approximately $1.2 billion of pending contract awards consisting primarily of various building projects in California and Florida. We anticipate booking many of these pending awards into backlog over the next several quarters. We continue to track several large-scale civil and building prospects for both public and private sector customers.



The outlook remains favorable for growth over the next several years. In addition to our large volume of backlog, we expect significant new award activity based on long-term capital spending plans by various state, local and federal customers, favorable budget trends and typically bipartisan support for infrastructure and investments. For example, the recently enacted $305-billion Fixing America’s Surface Transportation (FAST) Act is expected to provide state and local agencies with federal funding for numerous highway, bridge and mass-transit projects between 2016 and 2020. In addition, several very large, long-duration civil infrastructure programs with which we are already involved are progressing, such as California’s High-Speed Rail system and the New York Metropolitan Transportation Authority’s East Side Access project. Planning and early projects are also underway related to Amtrak’s Northeast Corridor Improvements, including the Gateway Program, which will eventually bring new rail tunnels beneath the Hudson River to connect service between New Jersey and New York’s Penn Station. Finally, sustained low interest rates and capital costs are expected to drive high demand and continued spending by private and public customers on building and infrastructure projects.



For a more detailed discussion of operating performance of each business segment, corporate general and administrative expense and other items, see “Results of Segment Operations” and “Corporate, Tax and Other Matters” below.



Results of Segment Operations



The Company provides professional services to private and public customers in the fields of construction and construction management, including specialty construction services involving electrical; mechanical; heating, ventilation and air conditioning (HVAC); plumbing and pneumatically placed concrete primarily in the United States and its territories and in certain other international locations. The Company’s three principal business segments are: Civil, Building and Specialty Contractors. More information on these business segments is set forth in “Item 1. – Business” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.



Civil Segment



Revenue and income from construction operations for the Civil segment are summarized as follows:



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in millions)

 

2016

 

2015

Revenue

 

$

335.9 

 

$

374.7 

Income from construction operations

 

 

33.7 

 

 

30.6 



Revenue for the three months ended March 31, 2016 decreased 10% compared to the same period in 2015. The decrease was primarily driven by reduced activity on a platform project at Hudson Yards and a runway reconstruction project in New York, partially offset by increased activity on mass-transit projects in New York and California.

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Income from construction operations increased 10% for the three months ended March 31, 2016 compared to the same period in 2015, primarily due to the above-mentioned increased activity on mass-transit projects in New York and California.



Operating margin was 10.0% for the three months ended March 31, 2016, compared to 8.2% for the three months ended March 31, 2015. The margin increase was due to favorable performance on certain mass-transit projects in New York and California.



New awards in the Civil segment totaled $938 million for three months ended March 31, 2016 compared to $223 million for the three months ended March 31, 2015. New awards in the first quarter of 2016 included a $663 million mass-transit project in New York as well as the company’s share of more than $150 million of additional contract scope for a mass-transit project in California. New awards for the first quarter of 2015 included a $58 million highway improvement project in Pennsylvania and a $56 million tunnel project in New York.



Backlog for the Civil segment was $3.3 billion as of March 31, 2016, consistent with $3.4 billion as of March 31, 2015. The segment continues to experience strong demand reflected in a large pipeline of prospective projects and supported by favorable budget trends, agencies’ long-term spending plans and the recently enacted five-year, $305-billion FAST Act. In particular, there are a number of large prospective civil projects expected to be bid in 2016, with subsequent awards anticipated in the second half of the year or early 2017. The Civil segment is well positioned to capture its share of these prospective projects, but faces continued strong competition from various other firms, including occasional aggressive bids from foreign competitors.



Building Segment



Revenue and income from construction operations for the Building segment are as follows:



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in millions)

 

2016

 

2015

Revenue

 

$

467.7 

 

$

398.8 

Income (Loss) from construction operations

 

 

12.5 

 

 

(2.3)



Revenue for the three months ended March 31, 2016 increased 17% compared to the same period in 2015. The growth was primarily driven by increased activity on certain commercial office, technology, government, hospitality and gaming, and retail building projects in California. The growth was partially offset by reduced activity on a hospitality and gaming project in Mississippi, an office building project in New York and a courthouse project in Florida, all of which are either completed or nearly completed.



Income from construction operations increased substantially for the three months ended March 31, 2016 compared to the same period in 2015. The increase was primarily due to the increased activity discussed above. In addition, our first quarter 2015 results included an unfavorable adjustment on an office building project in New York.



Operating margin was 2.7% for three months ended March 31, 2016 compared to (0.6)% for the three months ended March 31, 2015. The margin increase was primarily due to the reasons discussed above regarding changes in revenue and income from construction operations.



New awards in the Building segment totaled $562 million for the three months ended March 31, 2016 compared to $466 million for the three months ended March 31, 2015. New awards in the first quarter of 2016 included a $285 million hospitality and gaming project in California. New awards in the first quarter of 2015 included a $239 million hospitality building project and a $117 million mixed-use building project, both in Pennsylvania.



Backlog for the Building segment was $2.9 billion as of March 31, 2016 compared to $2.3 billion as of March 31, 2015. The strong growth in the segment’s backlog was driven by commercial office and hospitality and gaming projects awarded since the second quarter of 2015. Building segment backlog is expected to continue to grow based on a large volume of pending awards for projects primarily in California and Florida, a favorable end-market environment and a large pipeline of prospective projects. The Company anticipates that strong demand for building projects will continue as a result of customer spending supported by sustained low interest rates. The Building segment is well positioned to capture its share of prospective projects based on its strong customer relationships and a long-term reputation for excellence in delivering high-quality projects on time and within budget.



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Table of Contents

 

Specialty Contractors Segment



Revenue and income from construction operations for the Specialty Contractors segment are:





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in millions)

 

2016

 

2015

Revenue

 

$

281.8 

 

$

293.0 

Income from construction operations

 

 

9.4 

 

 

10.5 



Revenue for the three months ended March 31, 2016 decreased a modest 4% compared to the same period in 2015.



Income from construction operations decreased 11% for the three months ended March 31, 2016 compared to the same period in 2015. The decrease was primarily due to decreased activity on various mechanical projects in New York, partially offset by net favorable adjustments totaling $3.0 million for various electrical projects in New York. Included in the net favorable adjustments were material adjustments related to two electrical subcontract projects: a favorable adjustment of $14.0 million resulting from the maturation of ongoing negotiations for a completed project and an unfavorable adjustment of $13.8 million as a result of change-order negotiations and project closeout costs.



Operating margin was 3.3% for the three months ended March 31, 2016 compared to 3.6% for the three months ended March 31, 2015. The margin decrease was primarily due to the reduced activity on various mechanical projects in New York.



New awards in the Specialty Contractors segment totaled $279 million for the three months ended March 31, 2016 compared to $334 million for the three months ended March 31, 2015. New awards in the first quarter of 2016 included an $86 million electrical subcontract for a mass-transit project in New York and a $32 million mechanical subcontract for a health care project, also in New York. New awards in the first quarter of 2015 included a $90 million electrical subcontract for a mass-transit project in New York.



Backlog for the Specialty Contractors segment was $1.9 billion as of March 31, 2016 compared to $2.1 billion as of March 31, 2015. The Specialty Contractors segment has a significant pipeline of prospective projects, with demand for its services supported by strong continued spending on civil and building projects. The segment is well positioned to capture its share of prospective projects based on the size and scale of our business units that primarily operate in New York, Texas, Florida and California and the strong reputation held by these business units for high-quality work on large, complex projects.



Corporate, Tax and Other Matters



Corporate General and Administrative Expenses



Corporate general and administrative expenses were $15.4 million during the three months ended March 31, 2016 compared to $18.8 million during the three months ended March 31, 2015. The lower corporate general and administrative expenses in the first quarter of 2016 were due principally to reduced performance-based incentive compensation expense.



Other Income  (Expense), Interest Expense and Provision for Income Taxes





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in millions)

 

2016

 

2015

Other income (expense), net

 

$

0.7 

 

$

(0.8)

Interest expense

 

 

(14.1)

 

 

(11.1)

Provision for income taxes

 

 

(11.3)

 

 

(3.1)



Other income (expense), net improved by $1.5 million for the three months ended March 31, 2016 compared to the same period in 2015. The improvement was due to a decrease in contingent earn-out liabilities related to past business acquisitions.



Interest expense increased $3.0 million for the three months ended March 31, 2016 compared to the same period in 2015. The increase is primarily due to a 1.1% increase in the Company’s average borrowing rate in the first quarter of 2016 and the write off of deferred debt issuance costs associated with the amendment of the Company’s Credit Facility, which were partially offset by a reduction in the Company’s average borrowings of $67.5 million.



The effective income tax rate was 42.4% for the three months ended March 31, 2016 compared to 37.5% for the same period in 2015. The effective tax rate for the first quarter of 2016 was unfavorably impacted by various discrete items, including certain state tax rate changes on deferred taxes. The effective tax rate in the first quarter of 2015 was favorably impacted by adjustments related to prior year tax positions.



27


 

Table of Contents

 

Liquidity and Capital Resources



Liquidity is provided by available cash and cash equivalents, cash generated from operations, credit facilities and access to capital markets. We have a $300 million revolving credit facility, which may be used for revolving loans, letters of credit and/or general purposes. We believe that for at least the next 12 months, cash generated from operations, along with our unused credit capacity of $116.3 million and cash position, is sufficient to support operating requirements. 



Cash and Working Capital



Cash and cash equivalents were $90.6 million as of March 31, 2016 compared to $75.5 million as of December 31, 2015, with balances including cash held by us and available for general corporate purposes of $32.9 million and $18.4 million, respectively, and our proportionate share of cash held by joint ventures, available only for joint venture-related uses including distributions to joint venture partners, of $57.7 million and $57.0 million, respectively. In addition, our restricted cash, held primarily to secure insurance-related contingent obligations, was $49.2 million as of March 31, 2016 compared to $45.9 million as of December 31, 2015.



A summary of cash flows for the three months ended March 31, 2016 and 2015 is set forth below:





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in millions)

 

 

2016

 

 

2015

Cash flows from:

 

 

 

 

 

 

Operating activities

 

$

15.9 

 

$

(2.3)

Investing activities

 

 

(7.2)

 

 

(4.6)

Financing activities

 

 

6.4 

 

 

17.3 

Net increase in cash

 

 

15.1 

 

 

10.4 

Cash at beginning of year

 

 

75.5 

 

 

135.5 

Cash at end of period

 

$

90.6 

 

$

145.9 



During the three months ended March 31, 2016, we generated $15.9 million in cash from operating activities, which was primarily generated through earnings sources, somewhat offset by the change in working capital. In the first quarter of 2015, we received funds related to the full and final settlements on the CityCenter matter and used the proceeds to make substantial payments to subcontractors and other vendors. This activity, along with significant funding of working capital for several of our larger civil and building projects, resulted in the use of $2.3 million of cash from operating activities for the first quarter of 2015.



During the first three months of 2016, we used $7.2 million in cash from investing activities, due primarily to the acquisition of property and equipment, as compared to the use of cash of $4.6 million from investing activities in the same period of 2015.



For the first quarter of 2016, net cash provided by financing activities was $6.4 million, which was primarily due to increased net borrowings of $12.3 million, partially offset by $5.9 million in debt issuance costs associated with the restructuring of our Credit Facility in the first quarter of 2016. Net cash provided by financing activities for the comparable quarter of 2015 was $17.3 million, which was due to increased net borrowings under our Credit Facility offset by cash used for scheduled debt payments.



At March 31, 2016, we had working capital of $1.2 billion, and a ratio of current assets to current liabilities of 1.76 and a ratio of debt to equity of 0.57 compared to working capital of $1.2 billion, and a ratio of current assets to current liabilities of 1.79 and a ratio of debt to equity of 0.58 at December 31, 2015.



Long-Term Debt



We had $183.5 million of outstanding borrowings under our Revolver as of March 31, 2016 and $158.0 million of outstanding borrowings under our Revolver as of December 31, 2015. The change was primarily due to the timing of certain collections from clients that were received just after the 2016 first quarter cutoff. The Revolving Credit Facility balance reported on the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 includes unamortized debt issuance cost of $4.8 million and $2.2 million. We utilized the Revolver for letters of credit in the amount of $0.2 million as of March 31, 2016 and December 31, 2015. Accordingly, as of March 31, 2016, we had $116.3 million of additional capacity under the Revolver. 



On February 26, 2016, we entered into Waiver and Amendment No. 1 (the “Amendment”) to the Original Facility (collectively, the “Credit Facility”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer and a syndicate of other lenders. As a result of the Amendment, both the Revolver and the Term Loan will now mature on May 1, 2018, and beginning in the fourth quarter of 2016, the Company will be required to make quarterly principal payments, in addition to the scheduled amortization payments of the Original Facility, towards the Term Loan balloon payment based on a percentage of certain forecasted cash collections for the prior quarter.



28


 

Table of Contents

 

Borrowings under the Credit Facility bear interest based on an applicable margin added to either Bank of America’s prime lending rate or the London Interbank Offered Rate (“LIBOR”). Under the terms of the Amendment, for so long as the Company’s consolidated leverage ratio is greater than 3.5:1.0, it will not be permitted to make LIBOR-based borrowings under the Revolver and will be subject to an increased interest rate on borrowings. The interest rate will be 100 to 200 basis points higher than the highest pricing tier under the Original Facility depending on the Company’s consolidated leverage ratio. The Company also will be subject to increased commitment fees at these higher leverage ratio levels. The Amendment removes the accordion feature of the Original Facility, which would have allowed for additional borrowings of up to $300 million subject to lender approval. 



The Amendment provides for the exclusion of the impact of the $23.9 million non-cash, pre-tax charge from the adverse ruling on the Brightwater litigation matter from both the calculation of the Company’s consolidated leverage ratio and consolidated fixed charge coverage ratio. In addition, the Amendment modified several of the covenants in the Original Facility, including the Company’s maximum allowable consolidated leverage ratio to be at 4.25:1.00 in the first quarter of 2016, stepping down to 4.00:1.00 in the second and third quarters of 2016 and then returning to the Original Facility’s range of 3.25:1.00 to 3.00:1.00 beginning with the fourth quarter of 2016. The Amendment adds covenants regarding the Company’s liquidity, including a cap on the cash balance in the Company’s bank account and a weekly minimum liquidity requirement (based on specified available cash balances and availability under the Revolver). Lastly, the Amendment requires the Company to achieve certain quarterly cash collection milestones and increases the lenders’ collateral package.



We are in compliance with all of the covenants under our Credit Facility as of March 31, 2016. The table below presents our actual and required consolidated fixed charge coverage ratio and consolidated leverage ratio under the Credit Facility for the period, which are calculated on a 12-month rolling basis: 





 

 

 

 



 

 

 

 



 

For the Three Months Ended March 31, 2016



 

Actual

 

Required

Fixed charge coverage ratio

 

1.58 : 1.00

 

> or = 1.25 : 1.00

Leverage ratio

 

3.85 : 1.00

 

< or = 4.25 : 1.00



There has been no significant change in our contractual obligations from that described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016.



Off-Balance Sheet Arrangements



As of March 31, 2016, we do not have any off-balance sheet financing or other arrangements with unconsolidated entities, such as entities often referred to as structured finance or special purpose entities which are often established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Accordingly, we are not exposed to any financing, liquidity, market or credit risk that could arise from such arrangements.



Critical Accounting Policies



Our significant accounting policies are described in Note 1. Description of Business and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in Part IV, Item 15. Exhibits and Financial Statement Schedules, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.  Our critical accounting policies are also identified and discussed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.



Recently Issued Accounting Pronouncements



See Note 2 of the Notes to Condensed Consolidated Financial Statements.  



Item 3. Quantitative and Qualitative Disclosures About Market Risk



There has been no material change in our exposure to market risk from that described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016.

 

Item 4. Controls and Procedures



Disclosure Controls and Procedures



An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined by Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded

29


 

Table of Contents

 

that the Company’s disclosure controls and procedures (a) were effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.



Changes in Internal Controls Over Financial Reporting



There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II. – OTHER INFORMATION



Item 1. Legal Proceedings



From time to time in the ordinary course of business, we are subject to claims, asserted or unasserted, or named as a party to lawsuits or investigations. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings cannot be predicted with any certainty and, in the case of more complex legal proceedings, the results are difficult to predict at all. We disclosed information about certain of our legal proceedings in Part I, Item 3 of our Annual Report on Form 10-K for the year ended December 31, 2015. For an update to those disclosures, see Note 6 of the Notes to the Condensed Consolidated Financial Statements.



Item 1A. Risk Factors



Information regarding risk factors affecting our business is discussed in our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes from those risk factors during the three months ended March 31, 2016.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



None.



Item 3. Defaults Upon Senior Securities



None.



Item 4. Mine Safety Disclosures



Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires domestic mine operators to disclose violations and orders issued under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) by the federal Mine Safety and Health Administration. We do not act as the owner of any mines but we may act as a mining operator as defined under the Mine Act where we may be an independent contractor performing services or construction of such mine.



Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Act and Item 104 Regulation S-K is included in Exhibit 95.





Item 5. Other Information



None.



30


 

Table of Contents

 

Item 6. Exhibits





 

 



 

 

Exhibit 3.     Articles of Incorporation and By-laws



3.1

Restated Articles of Organization (incorporated by reference to Exhibit 3.1 to Form10-K (File No. 001-06314) filed on March 31, 1997).



3.2

Articles of Amendment to the Restated Articles of Organization of Tutor Perini Corporation (incorporated by reference to Exhibit 3.1 to Form 8-K filed on April 12, 2000).



3.3

Articles of Amendment to the Restated Articles of Organization of Tutor Perini Corporation (incorporated by reference to Exhibit 3.1 to Form 8-K filed on September 11, 2008).



3.4

Articles of Amendment to the Restated Articles of Organization of Tutor Perini Corporation (incorporated by reference to Exhibit 3.5 to Form 10-Q filed on August 10, 2009).



3.5

Second Amended and Restated By-laws of Tutor Perini Corporation (incorporated by reference to Exhibit 3.1 to Form 8-K filed on November 24, 2009).



 

 

Exhibit 10.1

Waiver and Amendment No. 1 to the Sixth Amended and Restated Credit Agreement dated as of February 26, 2016, with Bank of America, N.A., as Administrative Agent and L/C Issuer and a syndicate of other lenders (incorporated by reference to Exhibit 10.14 to Form 10-K filed on February 29, 2016).



 

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 — filed herewith.

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 — filed herewith.

Exhibit 32.1

Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 — filed herewith.

Exhibit 32.2

Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 — filed herewith.



 

Exhibit 95

Mine Safety Disclosure — filed herewith.



 

Exhibit 101.INS

XBRL Instance Document.

Exhibit 101.SCH

XBRL Taxonomy Extension Schema Document.

Exhibit 101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document.

Exhibit 101.LAB

XBRL Taxonomy Extension Label Linkbase Document.

Exhibit 101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document.

Exhibit 101.DEF

XBRL Taxonomy Extension Definition Linkbase Document.



 

31


 

Table of Contents

 

SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





 

 



Tutor Perini Corporation



(Registrant)



 

Dated: May 4, 2016

By:

/s/Gary G. Smalley



Gary G. Smalley



Executive Vice President and Chief Financial Officer

 



32



Exhibit 31.1

Exhibit 31.1



CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002



I, Ronald N. Tutor, certify that:



1.

I have reviewed this quarterly report on Form 10-Q of Tutor Perini Corporation;



2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;



4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:



a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;



c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and



5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):



a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and



b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.







 

 

Date: May 4, 2016

 

/s/Ronald N. Tutor



 

Ronald N. Tutor



 

Chairman and Chief Executive Officer





Exhibit 31.2

Exhibit 31.2



CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002



I, Gary G. Smalley, certify that:



1.

I have reviewed this quarterly report on Form 10-Q of Tutor Perini  Corporation;



2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;



4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:



a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;



c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and



5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):



a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and



b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.







 

 

Date: May 4, 2016

 

/s/Gary G.  Smalley



 

Gary G.  Smalley



 

Executive Vice President and Chief Financial Officer





Exhibit 32.1

Exhibit 32.1



CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the quarterly report of Tutor Perini Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ronald N. Tutor, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:



(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.







 

Date: May 4, 2016

/s/Ronald N. Tutor



Ronald N. Tutor



Chairman and Chief Executive Officer



A signed original of this written statement required by Section 906 has been provided to Tutor Perini Corporation and will be retained by Tutor Perini Corporation and furnished to the Securities and Exchange Commission or its staff upon request.





Exhibit 32.2

Exhibit 32.2



CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the quarterly report of Tutor Perini Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gary G.  Smalley, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:



(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.







 

Date: May 4, 2016

/s/Gary G.  Smalley



Gary G.  Smalley



Executive Vice President and Chief Financial Officer



A signed original of this written statement required by Section 906 has been provided to Tutor Perini Corporation and will be retained by Tutor Perini Corporation and furnished to the Securities and Exchange Commission or its staff upon request.





Exhibit 95

Exhibit 95



MINE SAFETY DISCLOSURE



Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires domestic mine operators to disclose violations and orders issued under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) by the federal Mine Safety and Health Administration (“MSHA”). We do not act as the owner of any mines but we may act as a mining operator as defined under the Mine Act where we may be an independent contractor performing services or construction of such mine. Due to timing and other factors, the data may not agree with the mine data retrieval system maintained by MSHA.



The following table provides information for the 1st Quarter ending March 31, 2016.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mine (1)

 

Mine Act §104 Violations (2)

 

Mine Act §104 (b) Orders (3)

 

Mine Act §104 (d) Citations and Orders (4)

 

Mine Act §110 (b)(2)
Violations (5)

 

Mine Act §107 (a) Orders (6)

 

Proposed Assessments from MSHA (In dollars ($)

 

Mining Related Fatalities

 

Mine Act §104(e) Notice (yes/no) (7)

 

Pending Legal Action before Federal Mine Safety and Health Review Commission (yes/no)

1st Quarter Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buchanan Mine #1

 

6 

 

 -

 

 -

 

 -

 

 -

 

$

5,655 

 

 -

 

No

 

No






(1) United States mines.

(2) The total number of violations received from MSHA under §104 of the Mine Act, which includes citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

(3) The total number of orders issued by MSHA under §104(b) of the Mine Act, which represents a failure to abate a citation under §104(a) within the period of time prescribed by MSHA.

(4) The total number of citations and orders issued by MSHA under §104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards.

(5) The total number of flagrant violations issued by MSHA under §110(b)(2) of the Mine Act.

(6) The total number of orders issued by MSHA under §107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed.

(7) A written notice from the MSHA regarding a pattern of violations, or a potential to have such pattern under §104(e) of the Mine Act.











tpc-20160331.xml
Attachment: EX-101.INS


tpc-20160331.xsd
Attachment: EX-101.SCH


tpc-20160331_cal.xml
Attachment: EX-101.CAL


tpc-20160331_def.xml
Attachment: EX-101.DEF


tpc-20160331_lab.xml
Attachment: EX-101.LAB


tpc-20160331_pre.xml
Attachment: EX-101.PRE


v3.4.0.3
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2016
May. 02, 2016
Document and Entity Information    
Entity Registrant Name TUTOR PERINI Corp  
Entity Central Index Key 0000077543  
Document Type 10-Q  
Document Period End Date Mar. 31, 2016  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   49,072,710
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q1  

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]    
REVENUE $ 1,085,369 $ 1,066,465
COST OF OPERATIONS (980,277) (975,706)
GROSS PROFIT 105,092 90,759
General and administrative expenses (64,970) (70,675)
INCOME FROM CONSTRUCTION OPERATIONS 40,122 20,084
Other income (expense), net 682 (754)
Interest expense (14,080) (11,125)
INCOME BEFORE INCOME TAXES 26,724 8,205
Provision for income taxes (11,324) (3,079)
NET INCOME $ 15,400 $ 5,126
BASIC EARNINGS PER COMMON SHARE (in dollars per share) $ 0.31 $ 0.11
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) $ 0.31 $ 0.10
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
BASIC (in shares) 49,079 48,747
DILUTED (in shares) 49,285 49,543

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]    
NET INCOME $ 15,400 $ 5,126
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX:    
Defined benefit pension plan adjustments 247  
Foreign currency translation adjustment 930 (588)
Unrealized (loss) gain in fair value of investments 8 (10)
Unrealized (loss) gain in fair value of interest rate swap (35) 45
Total other comprehensive (loss) income, net of tax 1,150 (553)
TOTAL COMPREHENSIVE INCOME $ 16,550 $ 4,573

v3.4.0.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
CURRENT ASSETS:    
Cash and cash equivalents $ 90,582 $ 75,452
Restricted cash 49,158 45,853
Accounts receivable, including retainage of $488,043 and $484,255 1,615,661 1,473,615
Costs and estimated earnings in excess of billings 858,356 905,175
Deferred income taxes 26,550 26,306
Other current assets 91,990 108,844
Total current assets 2,732,297 2,635,245
PROPERTY AND EQUIPMENT (net of accumulated depreciation of $265,195 and $254,477) 519,890 523,525
OTHER ASSETS:    
GOODWILL 585,006 585,006
INTANGIBLE ASSETS, NET 95,654 96,540
OTHER ASSETS 198,635 196,361
TOTAL ASSETS 4,131,482 4,036,677
CURRENT LIABILITIES:    
Current maturities of long-term debt 99,970 88,917
Accounts payable, including retainage of $204,386 and $204,767 1,005,906 937,464
Billings in excess of costs and estimated earnings 285,582 288,311
Accrued expenses and other current liabilities 160,964 159,016
Total current liabilities 1,552,422 1,473,708
LONG-TERM DEBT, less current maturities (net of unamortized discount and debt issuance cost of $10,948 and $6,697) 725,763 728,767
DEFERRED INCOME TAXES 274,232 273,310
OTHER LONG-TERM LIABILITIES 138,734 140,665
Total liabilities $ 2,691,151 $ 2,616,450
CONTINGENCIES AND COMMITMENTS (NOTE 6)
STOCKHOLDERS' EQUITY:    
Preferred stock-- authorized 1,000,000 shares ($1 par value), none issued
Common stock - authorized 75,000,000 shares ($1 par value), issued and outstanding 49,072,710 shares $ 49,073 $ 49,073
Additional paid-in capital 1,039,070 1,035,516
Retained earnings 393,203 377,803
Accumulated other comprehensive loss (41,015) (42,165)
TOTAL STOCKHOLERS' EQUITY 1,440,331 1,420,227
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY $ 4,131,482 $ 4,036,677

v3.4.0.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]    
Accounts receivable, retainage $ 488,043 $ 484,255
Accumulated depreciation 265,195 254,477
Accounts payable, retainage 204,386 204,767
Unamortized discount and debt issuance cost $ 10,948 $ 6,697
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value (in dollars per share) $ 1 $ 1
Preferred stock, shares issued 0 0
Common stock, shares authorized 75,000,000 75,000,000
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, shares issued 49,072,710 49,072,710
Common stock, shares outstanding 49,072,710 49,072,710

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash Flows from Operating Activities:    
Net income $ 15,400 $ 5,126
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 14,496 10,594
Stock-based compensation expense 3,647 9,159
Deferred income taxes (155)  
(Gain) loss on sale of property and equipment 285 (276)
Other long-term liabilities (4,061) 2,381
Other non-cash items 1,399 (2,227)
Changes in other components of working capital (15,067) (27,081)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 15,944 (2,324)
Cash Flows from Investing Activities:    
Acquisition of property and equipment excluding financed purchases (4,812) (5,691)
Proceeds from sale of property and equipment 939 798
Change in restricted cash (3,305) 277
NET CASH USED IN INVESTING ACTIVITIES (7,178) (4,616)
Cash Flows from Financing Activities:    
Proceeds from debt 299,785 280,200
Repayment of debt (287,484) (262,112)
Issuance of common stock and effect of cashless exercise   (773)
Debt issuance costs (5,937)  
NET CASH PROVIDED BY FINANCING ACTIVITIES 6,364 17,315
Net increase in cash and cash equivalents 15,130 10,375
Cash and cash equivalents at beginning of year 75,452 135,583
Cash and cash equivalents at end of period $ 90,582 $ 145,958

v3.4.0.3
Basis of Presentation
3 Months Ended
Mar. 31, 2016
Basis of Presentation [Abstract]  
Basis of Presentation

(1)     Basis of Presentation



The Condensed Consolidated Financial Statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States and, therefore, should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three months ended March 31, 2016 may not necessarily be indicative of results that can be expected for the full year.



In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the Company’s consolidated financial position as of March 31, 2016 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Management has evaluated all material events occurring subsequent to the date of the financial statements up to the filing of this Form 10-Q.

 


v3.4.0.3
Recent Accounting Pronouncements
3 Months Ended
Mar. 31, 2016
Recent Accounting Pronouncements [Abstract]  
Recent Accounting Pronouncements

(2)     Recent Accounting Pronouncements



In the first quarter of 2016, the Company adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30). This ASU requires companies to present, in the balance sheet, debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In addition, the amortization of that debt discount is required to be presented as a component of interest expense. The Company applied this guidance retrospectively, effective January 1, 2016; accordingly, the Company reclassified unamortized debt issuance costs of $5.8 million out of Other Assets and to Long-Term Debt,  less current maturities in its December 31, 2015 Condensed Consolidated Balance Sheet.



In March 2016, the FASB issued ASU No. 2016-09, Improvement to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payments including: accounting for income taxes, forfeitures and statutory tax withholding requirements. The ASU recognizes all tax differences between the book expense and tax deduction through the income statement, eliminating the notion of an additional paid-in capital pool; the ASU allows an entity to elect either to continue to estimate the total number of awards for the which the requisite service period will not be rendered, as is current practice, or to account for forfeitures when they occur; the ASU stipulates that the net settlement of an award for statutory tax withholding purposes would not result, by itself, in liability classification of the award provided the amount withheld does not exceed the employee’s relevant maximum tax rate. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements.



In March 2016, the FASB issued ASU No. 2016-07, Equity Method and Joint Ventures (Topic 323), which eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership. Instead, an equity method investor adds the cost of acquiring the additional interest to the current basis of the previously held interest and adopts the equity method of accounting as of the date the investment becomes qualified as such. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.



In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic-842), which amends the existing guidance in ASC 840 Leases. This amendment requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases. Other significant provisions of the amendment include (i) defining the “lease term” to include the non-cancellable period together with periods for which there is a significant economic incentive for the lessee to extend or not terminate the lease; (ii) defining the initial lease liability to be recorded on the balance sheet to contemplate only those variable lease payments that depend on an index or that are in substance “fixed”; and (iii) a dual approach for determining whether lease expense is recognized on a straight-line or accelerated basis, depending on whether the lessee is expected to consume more than an insignificant portion of the leased asset’s economic benefits. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Lessees and lessors are required to use a modified retrospective transition method for existing leases. Accordingly, they would apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.



In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Subtopic 740-10). This ASU requires entities to present all deferred tax assets and all deferred tax liabilities as noncurrent in a classified balance sheet. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company had $26.6 million of current deferred tax assets and $24.9 million of current deferred tax liabilities as of March 31 2016, which will be presented as noncurrent upon adoption of this ASU.



In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current industry-specific guidance, including ASC 605-35. The new standard prescribes a five-step revenue recognition model that focuses on transfer of control and entitlement to consideration in determining the amount of revenue to be recognized. The guidance also significantly expands qualitative and quantitative disclosure requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for the Company for fiscal years beginning after December 15, 2017 and interim periods within those years. The adoption will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.

 


v3.4.0.3
Earnings per Share
3 Months Ended
Mar. 31, 2016
Earnings per Share [Abstract]  
Earnings per Share

(3)     Earnings per Share (EPS)



Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period, to which dilutive securities are included in the calculation of diluted EPS, using the treasury stock method. The calculations of the basic and diluted EPS for the three months ended March 31, 2016 and 2015 are presented below:



 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands, except per share data)

2016

 

2015

Net income

$

15,400 

 

$

5,126 



 

 

 

 

 

Weighted-average common shares outstanding - basic

 

49,079 

 

 

48,747 

Effect of diluted stock options and unvested restricted stock

 

206 

 

 

796 

Weighted-average common shares outstanding - diluted

 

49,285 

 

 

49,543 



 

 

 

 

 

Net income per share:

 

 

 

 

 

Basic

$

0.31 

 

$

0.11 

Diluted

$

0.31 

 

$

0.10 

Anti-dilutive securities not included above

 

1,704 

 

 

529 




v3.4.0.3
Costs and estimated earnings in excess of billings
3 Months Ended
Mar. 31, 2016
Costs and estimated earnings in excess of billings [Abstract]  
Costs and estimated earnings in excess of billings

(4)     Costs and estimated earnings in excess of billings



Reported costs and estimated earnings in excess of billings consists of the following:





 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Claims

$

395,708 

 

$

407,164 

Unapproved change orders

 

224,297 

 

 

270,019 

Other unbilled costs and profits

 

238,351 

 

 

227,992 

Total costs and estimated earnings in excess of billings

$

858,356 

 

$

905,175 



The prerequisite for billing claims and unapproved change orders is the final resolution and agreement between the parties. The prerequisite for billing other unbilled costs and profits is defined in the billing terms of each of the applicable contracts. 

 


v3.4.0.3
Financial Commitments
3 Months Ended
Mar. 31, 2016
Financial Commitments [Abstract]  
Financial Commitments

(5)     Financial Commitments



Long-Term Debt



Long-term debt consists of the following:





 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Senior Notes

$

297,366 

 

$

297,118 

Revolving Credit Facility

 

178,738 

 

 

155,815 

Term Loan

 

220,198 

 

 

222,120 

Equipment financing, mortgages and acquisition-related notes

 

124,911 

 

 

133,288 

Other indebtedness

 

4,520 

 

 

9,343 

Total debt

 

825,733 

 

 

817,684 

Less – current maturities

 

(99,970)

 

 

(88,917)

Long-term debt, net

$

725,763 

 

$

728,767 



The following table reconciles the outstanding debt balance to the reported debt balances as of March 31, 2016 and December 31, 2015.





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



March 31, 2016

 

December 31, 2015

(in thousands)

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

 

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

Senior Notes

$

300,000 

 

$

(2,634)

 

$

297,366 

 

$

300,000 

 

$

(2,882)

 

$

297,118 

Revolving Credit Facility

 

183,500 

 

 

(4,762)

 

 

178,738 

 

 

158,000 

 

 

(2,185)

 

 

155,815 

Term Loan

 

223,750 

 

 

(3,552)

 

 

220,198 

 

 

223,750 

 

 

(1,630)

 

 

222,120 



The discount and debt issuance cost related to the Senior Notes is amortized as interest expense based on an imputed interest rate of 7.99%. The debt issuance cost related to the Revolving Credit Facility and Term Loan (as defined below) is amortized as interest expense based on an imputed interest rate of 8.84%.



Amended Credit Agreement



On February 26, 2016, we entered into Waiver and Amendment No. 1 (the “Amendment”) to the Sixth Amended and Restated Credit Agreement (the “Original Facility”; collectively, the “Credit Facility”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer and a syndicate of other lenders. As a result of the Company’s financial results for the fiscal year ended December 31, 2015, which included the previously reported $23.9 million non-cash, pre-tax charge from an adverse ruling on the Brightwater litigation matter in the third quarter as well as $45.6 million of pre-tax charges in the third and fourth quarters for Five Star Electric, the Company was not in compliance with the required consolidated leverage ratio and consolidated fixed charge coverage ratio under the Original Facility, which are both calculated on a rolling four quarter basis. In the Amendment, the lenders waived these covenant violations and modified certain provisions of the Original Facility.



The Credit Facility provides for a $300 million revolving credit facility (the “Revolver”) and a $250 million term loan (the “Term Loan”). As a result of the Amendment, both the Revolver and the Term Loan will now mature on May 1, 2018. The Term Loan principal payments have been modified to include certain additional principal payments, which will be applied against the balloon payment (discussed below). Borrowings under the Revolver bear interest, based either on Bank of America’s prime lending rate, plus an applicable margin, or the London Interbank Offered Rate (“LIBOR”), plus an applicable margin. Borrowings under the Term Loan bear interest based on LIBOR plus an applicable margin. Under the terms of the Amendment, for so long as the Company’s consolidated leverage ratio is greater than 3.5 to 1.0, it will not be permitted to make LIBOR-based borrowings and will therefore be subject to an increased interest rate on borrowings, with such rate being 100 basis points higher than the highest rate under the Original Facility while the Company’s consolidated leverage ratio is greater than 3.5 to 1.0 but not more than 4.0 to 1.0, and an additional 100 basis points higher while the Company’s consolidated leverage ratio is greater than 4.0 to 1.0. The Company also will be subject to increased commitment fees at these higher leverage ratio levels. In addition, until the Company’s consolidated leverage ratio goes below 3.5 to 1.0, LIBOR-based borrowings will convert to base rate borrowings. The Amendment provides for the exclusion of the impact of the Brightwater litigation matter from the calculation of the Company’s consolidated leverage ratio and consolidated fixed charge coverage ratio. Interest payments will be due on a monthly basis, rather than a quarterly basis. If the Company is in compliance with the leverage and fixed charge ratio covenants provided in the Original Facility as of December 31, 2016, interest payments will again be due on a quarterly basis thereafter. The Amendment also removes the accordion feature of the Original Facility, which would have allowed either an increase of $300 million in the Revolver or the establishment of one or more new term loan commitments.



The Amendment also modifies several of the covenants in the Original Facility, including the Company’s maximum allowable consolidated leverage ratio to be at 4.25:1.00 in the first quarter of 2016, stepping down to 4.0:1.0 in the second and third quarters of 2016 and then returning to the Original Facility’s range of 3.25:1.00 to 3.00:1.00 beginning with the fourth quarter of 2016. The Credit Facility will continue to require the Company to maintain a minimum consolidated fixed charge coverage ratio of 1.25:1.00. Other usual and customary covenants for credit facilities of this type (such as, restrictions on the payment of dividends and share repurchases) were included in the Original Facility (subject to certain modifications made in the Amendment), while the Amendment adds covenants regarding the Company’s liquidity, including a cap on the cash balance in the Company’s bank account and a weekly minimum liquidity requirement (based on specified available cash balances and availability under the Revolver). The Amendment also requires the Company to achieve certain quarterly cash collection milestones and increases the lenders’ collateral package. Beginning in the fourth quarter of 2016, the Company will be required to make quarterly principal payments towards the Term Loan balloon payment, based on a percentage of certain forecasted cash collections for the prior quarter, in addition to the scheduled amortization payments of the Original Facility.



Substantially all of the Company’s subsidiaries unconditionally guarantee our obligations under the Credit Facility. The obligations under the Credit Facility are secured by a lien on substantially all real and personal property of the Company and its subsidiaries party thereto. Under the Amendment, the Company agreed to increase the lenders’ collateral package, including by pledging to the lenders (i) the equity interests of each direct domestic subsidiary of the Company and (ii) 65% of the stock of each material first-tier foreign restricted subsidiary of the Company.



We utilized the Revolver for letters of credit in the amount of $0.2 million as of March 31, 2016 and December 31, 2015. As of March 31, 2016, we had $116.3 million of additional capacity under the Revolver.



The Company was in compliance with the financial covenants under the Credit Facility for the period ended March 31, 2016.

 


v3.4.0.3
Contingencies and Commitments
3 Months Ended
Mar. 31, 2016
Contingencies and Commitments [Abstract]  
Contingencies and Commitments

(6)     Contingencies and Commitments



The Company and certain of its subsidiaries are involved in litigation and are contingently liable for commitments and performance guarantees arising in the ordinary course of business. The Company and certain of its customers have made claims arising from the performance under their contracts. The Company recognizes certain significant claims for recovery of incurred cost when it is probable that the claim will result in additional contract revenue and when the amount of the claim can be reliably estimated. These assessments require judgments concerning matters such as litigation developments and outcomes, the anticipated outcome of negotiations, the number of future claims and the cost of both pending and future claims. In addition, because most contingencies are resolved over long periods of time, liabilities may change in the future due to various factors.



Several matters are in the litigation and dispute resolution process. The following discussion provides a background and current status of the more significant matters.



Long Island Expressway/Cross Island Parkway Matter



The Company reconstructed the Long Island Expressway/Cross Island Parkway Interchange project for the New York State Department of Transportation (the “NYSDOT”). The $130 million project was substantially completed in January 2004 and was accepted by the NYSDOT as finally complete in February 2006. The Company incurred significant added costs in completing its work and suffered extended schedule costs due to numerous design errors, undisclosed utility conflicts, lack of coordination with local agencies and other interferences for which the Company believes the NYSDOT is responsible.



In March 2011, the Company filed its claim and complaint with the New York State Court of Claims and served to the New York State Attorney General’s Office, seeking damages in the amount of $53.8 million. In May 2011, the NYSDOT filed a motion to dismiss the Company’s claim on the grounds that the Company had not provided required documentation for project closeout and filing of a claim. In September 2011, the Company reached agreement on final payment with the Comptroller’s Office on behalf of the NYSDOT which resulted in an amount of $0.5 million payable to the Company and formally closed out the project allowing the Company to re-file its claim. The Company re-filed its claim in the amount of $53.8 million with the NYSDOT in February 2012 and with the Court of Claims in March 2012. In May 2012, the NYSDOT served its answer and counterclaims in the amount of $151 million alleging fraud in the inducement and punitive damages related to disadvantaged business enterprise (“DBE”) requirements for the project. The Court subsequently ruled that NYSDOT’s counterclaims may only be asserted as a defense and offset to the Company’s claims and not as affirmative claims. In November 2014, the Appellate Division First Department affirmed the dismissal of the City’s affirmative defenses and counterclaims based on DBE fraud. The Company does not expect the counterclaims to have any material effect on its consolidated financial statements.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Fontainebleau Matter



Desert Mechanical Inc. (“DMI”) and Fisk Electric Company (“Fisk”), wholly owned subsidiaries of the Company, were subcontractors on the Fontainebleau Project in Las Vegas (“Fontainebleau”), a hotel/casino complex with approximately 3,800 rooms. In June 2009, Fontainebleau filed for bankruptcy protection, under Chapter 11 of the U.S. Bankruptcy Code, in the Southern District of Florida. Fontainebleau is headquartered in Miami, Florida.



DMI and Fisk filed liens in Nevada for approximately $44 million, representing unreimbursed costs to date and lost profits, including anticipated profits. Other unaffiliated subcontractors have also filed liens. In June 2009, DMI filed suit against Turnberry West Construction, Inc., the general contractor, in the 8th Judicial District Court, Clark County, Nevada (the “District Court”), and in May 2010, the court entered an order in favor of DMI for approximately $45 million.



In January 2010, the Bankruptcy Court approved the sale of the property to Icahn Nevada Gaming Acquisition, LLC, and this transaction closed in February 2010. As a result of a July 2010 ruling relating to certain priming liens, there was approximately $125 million set aside from this sale, which is available for distribution to satisfy the creditor claims based on seniority. At that time, the total estimated sustainable lien amount was approximately $350 million. The project lender filed suit against the mechanic’s lien claimants, including DMI and Fisk, alleging that certain mechanic’s liens are invalid and that all mechanic’s liens are subordinate to the lender’s claims against the property. The Nevada Supreme Court ruled in October 2012 in an advisory opinion at the request of the Bankruptcy Court that lien priorities would be determined in favor of the mechanic lien holders under Nevada law.



In October 2013, a settlement was reached by and among the Statutory Lienholders and the other interested parties. The Bankruptcy Court appointed a mediator to facilitate the execution of that settlement agreement, but the mediator was unable to yield a settlement. DMI will file a Motion to Terminate Mediation and proceed with litigating its claims in the District Court.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Honeywell Street/Queens Boulevard Bridges Matter



In 1999, the Company was awarded a contract for reconstruction of the Honeywell Street/Queens Boulevard Bridges project for the City of New York (the “City”). In June 2003, after substantial completion of the project, the Company initiated an action to recover $8.8 million in claims against the City on behalf of itself and its subcontractors. In March 2010, the City filed counterclaims for $74.6 million and other relief, alleging fraud in connection with the DBE requirements for the project. In May 2010, the Company served the City with its response to the City’s counterclaims and affirmative defenses. In August 2013, the Court granted the Company’s motion to dismiss the City’s affirmative defenses and counterclaims relating to fraud. In September 2013, the City filed a Notice of Appeal to the Court’s decision; said appeal was dismissed by the Appellate Court in November 2014. A notice of trial has been filed.



The Company does not expect ultimate resolution of this matter to have any material effect on its consolidated financial statements.



Westgate Planet Hollywood Matter



Tutor-Saliba Corporation (“TSC”), a wholly owned subsidiary of the Company, contracted to construct a timeshare development project in Las Vegas which was substantially completed in December 2009. The Company’s claims against the owner, Westgate Planet Hollywood Las Vegas, LLC (“WPH”), relate to unresolved owner change orders and other claims. The Company filed a lien on the project in the amount of $23.2 million, and filed its complaint with the District Court, Clark County, Nevada. Several subcontractors have also recorded liens, some of which have been released by bonds and some of which have been released as a result of subsequent payment. WPH has posted a mechanic’s lien release bond for $22.3 million.



WPH filed a cross-complaint alleging non-conforming and defective work for approximately $51 million, primarily related to alleged defects, misallocated costs, and liquidated damages. WPH revised the amount of their counterclaims to approximately $45 million.



Following multiple post-trial motions, final judgment was entered in this matter on March 20, 2014. TSC was awarded total judgment in the amount of $19.7 million on its breach of contract claim, which includes an award of interest up through the date of judgment, plus attorney’s fees and costs. WPH has paid $0.6 million of that judgment. WPH was awarded total judgment in the amount of $3.1 million on its construction defect claims, which includes interest up through the date of judgment. The awards are not offsetting. WPH and its Sureties have filed a notice of appeal. TSC has filed a notice of appeal on the defect award. In July 2014, the Court ordered WPH to post an additional supersedeas bond on appeal, in the amount of $1.7 million, in addition to the lien release bond of $22.3 million, which increases the security up to $24.0 million. The Nevada Supreme Court has not yet ruled on this matter.



The Company does not expect ultimate resolution of this matter to have any material effect on its consolidated financial statements. Management has made an estimate of the total anticipated recovery on this project and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



U.S. Department of Commerce, National Oceanic and Atmospheric Administration Matter



Rudolph and Sletten, Inc. (“R&S”), a wholly owned subsidiary of the Company, entered into a contract with the United States Department of Commerce, National Oceanic and Atmospheric Administration (“NOAA”) for the construction of a 287,000 square-foot facility for NOAA’s Southwest Fisheries Science Center Replacement Headquarters and Laboratory in La Jolla, California. The contract work began on May 24, 2010, and was substantially completed in September 2012. R&S incurred significant additional costs as a result of a design that contained errors and omissions, NOAA’s unwillingness to correct design flaws in a timely fashion and a refusal to negotiate the time and pricing associated with change order work.



R&S has filed three certified claims against NOAA for contract adjustments related to the unresolved Owner change orders, delays, design deficiencies and other claims. The First Certified Claim was submitted on August 20, 2013, in the amount of $26.8 million ("First Certified Claim") and the Second Certified Claim was submitted on October 30, 2013, in the amount of $2.6 million ("Second Certified Claim") and the Third Certified Claim was submitted on October 1, 2014 in the amount of $0.7 million (“Third Certified Claim”).



NOAA requested an extension to issue a decision on the First Certified Claim and on the Third Certified Claim, but did not request an extension of time to review the Second Certified Claim. On January 6, 2014, R&S filed suit in the United States Federal Court of Claims on the Second Certified Claim plus interest and attorney's fees and costs. This was followed by a submission of a lawsuit on the First Certified Claim on July 31, 2014. In February 2015, the Court denied NOAA’s motion to dismiss the Second Certified Claim. In March 2015, the Contracting Officer issued decisions on all Claims accepting a total of approximately $1.0 million of claims and denying approximately $29.5 million of claims. On April 14, 2015, the Court consolidated the cases and has commenced discovery through mid-2016. No trial date has been set.



Management has made an estimate of the total anticipated recovery on this project, and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the consolidated financial statements at that time.



Five Star Electric Matter



In the third quarter of 2015, Five Star Electric Corp. ("Five Star"), a subsidiary of the Company that was acquired in 2011, entered into a tolling agreement related to an ongoing investigation being conducted by the United States Attorney for the Eastern District of New York (“USAO EDNY”). The tolling agreement extended the statute of limitations to avoid the expiration of any unexpired statute of limitations while the investigation is pending. Five Star has been cooperating with the USAO EDNY since late June 2014, when it was first made aware of the investigation, and has been providing information related to its use of certain minority-owned, women-owned, small and disadvantaged business enterprises and, in addition, most recently, information regarding certain of Five Star’s employee compensation, benefit and tax practices. The investigation covers the period of 2005-2014.



The Company cannot predict the ultimate outcome of the investigation and cannot accurately estimate any potential liability that Five Star or the Company may incur or the impact of the results of the investigation on Five Star or the Company.



Alaskan Way Viaduct Matter



In January 2011, Seattle Tunnel Partners (“STP”), a joint venture between Dragados USA, Inc. and the Company, entered into a design-build contract with the Washington State Department of Transportation ("WSDOT") for the construction of a large diameter bored tunnel in downtown Seattle, King County, Washington to replace the Alaskan Way Viaduct, also known as State Route 99.



The construction of the large diameter bored tunnel requires the use of a tunnel boring machine (“TBM”). In December 2013, the TBM struck a steel pipe, installed by WSDOT as a well casing for an exploratory well. The TBM was damaged and was required to be shut down for repair. STP has asserted that the steel pipe casing was a differing site condition that WSDOT failed to properly disclose. The Disputes Review Board mandated by the contract to hear disputes issued a decision finding the steel casing was a Type I differing site condition. WSDOT has not accepted that finding.



The TBM is insured under a Builder’s Risk Insurance Policy (“the Policy”) with Great Lakes Reinsurance (UK) PLC and a consortium of other insurers (the “Insurers”). STP submitted the claims to the insurer and requested interim payments under the Policy. The Insurers refused to pay and denied coverage. In June 2015, STP filed a lawsuit in the King County Superior Court, State of Washington (“Washington Superior Court”) seeking declaratory relief concerning contract interpretation as well as damages as a result of the Insurers’ breach of its obligations under the terms of the Policy.  WSDOT is deemed a plaintiff since WSDOT is an insured under the Policy and had filed its own claim for damages. Trial is scheduled for June 2017.



In October 2015, WSDOT filed a complaint against STP in the Washington Superior Court for breach of contract and declaratory relief concerning contract interpretation. The Complaint was dismissed upon motion by STP. In March 2016, WSDOT refiled action against STP in Thurston County Superior Court.



As of March 2016, the Company has concluded that the potential for a material adverse financial impact due to the Insurer’s and WSDOT’s respective legal actions are neither probable nor remote. Management has made an estimate of the total anticipated recovery on this project and such estimate is included in revenue recorded to date. To the extent new facts become known or the final recovery included in the claim settlement varies from the estimate, the impact of the change will be reflected in the financial statements at that time.

 


v3.4.0.3
Share-Based Compensation
3 Months Ended
Mar. 31, 2016
Share-Based Compensation [Abstract]  
Share-Based Compensation

(7)     Share-Based Compensation



The Company’s share-based compensation plan is described, and informational disclosures are provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. In the first three months of 2016 and 2015, 483,387 and 291,500 restricted stock units were granted at weighted-average per share prices of $19.14 and $23.35, respectively. During the first three months of 2016 and 2015, the Company awarded 274,000 and 259,000 stock options at weighted-average exercise prices of $16.20 and $16.07 per share, respectively. The options expire ten years after the grant date. Both the restricted stock units and options granted in 2016 and 2015 vest upon the achievement of defined performance targets.

  


v3.4.0.3
Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2016
Other Comprehensive Income (Loss) [Abstract]  
Other Comprehensive Income (Loss)

(8)     Other Comprehensive Income (Loss)



The tax effects of the components of other comprehensive income (loss) are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Three Months Ended



March 31, 2016

 

March 31, 2015

(in thousands)

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

 

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plan adjustments

$

427 

 

$

(180)

 

$

247 

 

$

 -

 

$

 -

 

$

 -

Foreign currency translation adjustment

 

1,604 

 

 

(674)

 

 

930 

 

 

(964)

 

 

376 

 

 

(588)

Unrealized gain (loss) in fair value of investments

 

13 

 

 

(5)

 

 

8 

 

 

(16)

 

 

6 

 

 

(10)

Unrealized gain (loss) in fair value of interest rate swap

 

(62)

 

 

27 

 

 

(35)

 

 

74 

 

 

(29)

 

 

45 

Total other comprehensive income (loss)

$

1,982 

 

$

(832)

 

$

1,150 

 

$

(906)

 

$

353 

 

$

(553)



The following tables present the changes in accumulated other comprehensive income (“AOCI”) balances by component (after tax) for the three months ended March 31, 2016 and 2015.





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2016

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Gain in Fair Value of Investments, net

 

Unrealized Gain (Loss) in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(38,242)

 

$

(4,603)

 

$

656 

 

$

24 

 

$

(42,165)

Other comprehensive income (loss) before reclassifications

 

 —

 

 

930 

 

 

8 

 

 

(35)

 

 

903 

Amounts reclassified from AOCI

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Total other comprehensive income (loss)

 

247 

 

 

930 

 

 

8 

 

 

(35)

 

 

1,150 

Balance at the end of the quarter

$

(37,995)

 

$

(3,673)

 

$

664 

 

$

(11)

 

$

(41,015)







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2015

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Loss in Fair Value of Investments, net

 

Unrealized Gain in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(40,268)

 

$

(1,389)

 

$

(110)

 

$

149 

 

$

(41,618)

Other comprehensive income (loss)

 

 —

 

 

(588)

 

 

(10)

 

 

45 

 

 

(553)

Balance at the end of the quarter

$

(40,268)

 

$

(1,977)

 

$

(120)

 

$

194 

 

$

(42,171)



The items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Operations are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Location in

 

Three Months Ended



 

Condensed Consolidated

 

March 31,

(in thousands)

 

Statements of Earnings

 

2016

 

2015

Defined benefit pension plan adjustments

 

Various accounts(1)

 

$

427 

 

$

 —

Income tax benefit

 

Income tax expense

 

 

(180)

 

 

 —

Net of tax

 

 

 

$

247 

 

$

 —


(1)

Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and general and administrative expense.

  


v3.4.0.3
Income Taxes
3 Months Ended
Mar. 31, 2016
Income Taxes [Abstract]  
Income Taxes

(9)     Income Taxes



The Company’s income tax provision was $11.3 million for the three months ended March 31, 2016, with an effective tax rate of 42.4% for the three months ended March 31, 2016, compared to $3.1 million with an effective tax rate of 37.5% for the same period in 2015.  The effective tax rate for the first quarter of 2016 was unfavorably impacted by various discrete items, including certain state tax rate changes on deferred taxes. The effective tax rate in the first quarter of 2015 was favorably impacted by adjustments related to prior year tax positions.

 


v3.4.0.3
Fair Value Measurements
3 Months Ended
Mar. 31, 2016
Fair Value Measurements [Abstract]  
Fair Value Measurements

(10)     Fair Value Measurements



The fair value hierarchy established by ASC 820, Fair Value Measurements, prioritizes the use of inputs used in valuation techniques into the following three levels:



Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — inputs are other than Level 1 inputs that are observable, either directly or indirectly

Level 3 — unobservable inputs



The following is a summary of financial statement items carried at estimated fair values measured on a recurring basis as of the dates presented:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

Fair Value Hierarchy

 

Fair Value Hierarchy

(in thousands)

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Level 1

 

Level 2

 

Level 3

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (a)

 

$

90,582 

 

$

90,582 

 

$

 —

 

$

 —

 

$

75,452 

 

$

75,452 

 

$

 —

 

$

 —

Restricted cash (a)

 

 

49,158 

 

 

49,158 

 

 

 —

 

 

 —

 

 

45,853 

 

 

45,853 

 

 

 —

 

 

 —

Investments in lieu of retainage (b)

 

 

44,036 

 

 

37,988 

 

 

6,048 

 

 

 —

 

 

41,566 

 

 

35,350 

 

 

6,216 

 

 

 —

Total

 

$

183,776 

 

$

177,728 

 

$

6,048 

 

$

 —

 

$

162,871 

 

$

156,655 

 

$

6,216 

 

$

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract (c)

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —

Total

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —


(a)

Cash, cash equivalents and restricted cash consist primarily of money market funds with original maturity dates of three months or less, for which fair value is determined through quoted market prices.

(b)

Investments in lieu of retainage are classified as accounts  receivable and are comprised primarily of money market funds, U.S. Treasury Notes and other municipal bonds, the majority of which are rated Aa3 or better. The fair values of the U.S. Treasury Notes and municipal bonds are obtained from readily-available pricing sources for comparable instruments and, as such, the Company has classified these assets as Level 2.

(c)

The Company values the interest rate swap liability utilizing a discounted cash flow model that takes into consideration forward interest rates observable in the market and the counterparty’s risk.



The Company did not have transfers between Levels 1 and 2 for either financial assets or liabilities, during the three months ended March 31, 2016 or 2015.



The carrying amount of cash and cash equivalents approximates fair value due to the short-term nature of these items. The carrying value of receivables, payables and other amounts arising out of normal contract activities, including retainage, which may be settled beyond one year, is estimated to approximate fair value. Of the Company’s long-term debt, the fair values of the Senior Notes as of March 31, 2016 and December 31, 2015 were $295.5 million and $305.6 million, respectively, compared to the carrying value of $299.1 million and $299.0 million as of March 31, 2016 and December 31, 2015, respectively. The fair value of the Senior Notes was estimated using current observable market prices for the Company’s Senior Notes, which are Level 1 inputs. The reported value of the Company’s remaining long-term debt at March 31, 2016 and December 31, 2015 approximates fair value.

 


v3.4.0.3
Business Segments
3 Months Ended
Mar. 31, 2016
Business Segments [Abstract]  
Business Segments

(11)     Business Segments



The Company offers general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of the manpower, equipment, materials and subcontractors required for the timely completion of a project in accordance with the terms and specifications contained in a construction contract. The Company also offers self-performed construction services: site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and HVAC. As described further below, our business is conducted through three segments: Civil, Building and Specialty Contractors. These segments are determined based on how the Company’s Chairman and Chief Executive Officer (chief operating decision maker) aggregates business units when evaluating performance and allocating resources.



The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure. The civil contracting services include construction and rehabilitation of highways, bridges, mass-transit systems, and water management and wastewater treatment facilities.



The Building segment has significant experience providing services to a number of specialized building markets for private and public works customers, including the high-rise residential, hospitality and gaming, transportation, health care, commercial and government offices, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and high-tech markets.



The Specialty Contractors segment specializes in electrical, mechanical, plumbing, HVAC, fire protection systems and pneumatically placed concrete for a full range of civil and building construction projects in the industrial, commercial, hospitality and gaming, and mass-transit end markets. This segment provides the Company with unique strengths and capabilities, which allow the Company to position itself as a full-service contractor with greater control over scheduled work, project delivery and risk management.



The following table sets forth certain reportable segment information relating to the Company’s operations for the three months ended March 31, 2016 and 2015:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Reportable Segments

 

 

 

 

 

 



 

 

 

 

 

 

Specialty

 

 

 

 

 

 

 

Consolidated

(in thousands)

Civil

 

 

Building

 

Contractors

 

Totals

 

Corporate

 

Total

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

367,501 

 

$

487,994 

 

$

281,773 

 

$

1,137,268 

 

$

 —

 

$

1,137,268 

Elimination of intersegment revenue

 

(31,643)

 

 

(20,256)

 

 

 —

 

 

(51,899)

 

 

 —

 

 

(51,899)

Revenue from external customers

$

335,858 

 

$

467,738 

 

$

281,773 

 

$

1,085,369 

 

$

 —

 

$

1,085,369 

Income from construction operations

$

33,665 

 

$

12,450 

 

$

9,413 

 

$

55,528 

 

$

(15,406)

(a)

$

40,122 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

392,876 

 

$

416,063 

 

$

293,017 

 

$

1,101,956 

 

$

 —

 

$

1,101,956 

Elimination of intersegment revenue

 

(18,202)

 

 

(17,233)

 

 

(56)

 

 

(35,491)

 

 

 —

 

 

(35,491)

Revenue from external customers

$

374,674 

 

$

398,830 

 

$

292,961 

 

$

1,066,465 

 

$

 —

 

$

1,066,465 

Income from construction operations

$

30,593 

 

$

(2,279)

 

$

10,524 

 

$

38,838 

 

$

(18,754)

(a)

$

20,084 

(a)

Consists primarily of corporate general and administrative expenses.



During the three months ended March 31, 2016, the Company recorded net favorable adjustments totaling $3.0 million in income from construction operations ($0.04 per diluted share) for various Five Star Electric projects in New York in the Specialty Contractors segment. The net impact included material adjustments related to two electrical subcontract projects: a favorable adjustment of $14.0 million for a completed project ($0.17 per diluted share) and an unfavorable adjustment of $13.8 million for a project that is nearly complete ($0.17 per diluted share).



There were no material changes in contract estimates at completion that impacted income from construction operations for the three months ended March 31, 2015.



Income from construction operations for the three months ended March 31, 2016 includes depreciation and amortization of $8.1 million for the Civil segment,  $0.6 million for the Building segment,  $1.3 million for the Specialty Contractors segment and $2.9 million for Corporate. Income from construction operations for the three months ended March 31, 2015 includes depreciation and amortization of $5.5 million for the Civil segment,  $0.7 million for the Building segment,  $1.4 million for the Specialty Contractors segment and $2.5 million for Corporate.



A reconciliation of segment results to the consolidated income before income taxes is as follows:





 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Income from construction operations

$

40,122 

 

$

20,084 

Other income (expense), net

 

682 

 

 

(754)

Interest expense

 

(14,080)

 

 

(11,125)

Income before income taxes

$

26,724 

 

$

8,205 



Total assets by segment are as follows:







 

 

 

 

 



 

 

 

 

 

(in thousands)

March 31, 2016

 

December 31, 2015

Civil

$

1,947,787 

 

$

1,964,038 

Building

 

902,669 

 

 

795,851 

Specialty Contractors

 

843,379 

 

 

860,285 

Corporate and other (a)

 

437,647 

 

 

416,503 

Total Assets

$

4,131,482 

 

$

4,036,677 

(a)

Consists principally of cash and cash equivalents as well as corporate transportation and other equipment.

 


v3.4.0.3
Employee Pension Plans
3 Months Ended
Mar. 31, 2016
Employee Pension Plans [Abstract]  
Employee Pension Plans

(12)     Employee Pension Plans



The Company has a defined benefit pension plan and an unfunded supplemental retirement plan. Effective September 1, 2004, all benefit accruals under these plans were frozen; however, the current vested benefit was preserved. The pension disclosure presented below includes aggregated amounts for both of the Company’s plans.



The following table sets forth the net periodic benefit cost for the three months ended March 31, 2016 and 2015:





 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Interest cost

$

1,053 

 

$

1,011 

Expected return on plan assets

 

(1,203)

 

 

(1,256)

Amortization of net loss

 

427 

 

 

1,460 

Other

 

150 

 

 

 —

Net periodic benefit cost

$

427 

 

$

1,215 



The Company contributed $0.3 million and $0.9 million to its defined benefit pension plan during the three months ended March 31, 2016 and 2015, respectively. The Company expects to contribute an additional $1.5 million to its defined benefit pension plan during the remainder of fiscal year 2016.

 


v3.4.0.3
Related Party Transactions
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions

(13)     Related Party Transactions



The Company leases certain facilities from an entity owned by Ronald N. Tutor, the Company’s Chairman and Chief Executive Officer, at market lease rates. Under these leases the Company paid $0.7 million for each of the three months ended March 31, 2016 and 2015, respectively, and recognized expense of $0.8 million for each of the three months ended March 31, 2016 and 2015, respectively.  



Raymond R. Oneglia, Vice Chairman of O&G Industries, Inc. (“O&G”), is a director of the Company, and O&G owns 500,000 shares of the Company’s common stock. The Company and O&G formed a joint venture to provide contracting services for a highway construction project. O&G provides equipment and services to the joint venture on customary trade terms. The joint venture paid O&G $1.1 million and $2.0 million for the three months ended March 31, 2016 and 2015, respectively. The Company has a  30% percent interest in the joint venture, which it accounts for using the proportionate consolidation method.



Peter Arkley, Senior Managing Director, Construction Services Group, of Alliant Insurance Services, Inc. (“Alliant”), is a director of the Company. The Company uses Alliant for various insurance related services. The associated expenses for services provided for the three months ended March 31, 2016 and 2015 were $2.0 million and $0.8 million, respectively. The Company owed Alliant $1.9 million and $7.5 million as of March 31, 2016 and December 31, 2015, respectively, for services rendered.

 


v3.4.0.3
Separate Financial Information of Subsidiary Guarantors of Indebtedness
3 Months Ended
Mar. 31, 2016
Separate Financial Information of Subsidiary Guarantors of Indebtedness [Abstract]  
Separate Financial Information of Subsidiary Guarantors of Indebtedness

(14)     Separate Financial Information of Subsidiary Guarantors of Indebtedness



The Company’s obligations on its Senior Notes is guaranteed by substantially all of the Company’s existing and future subsidiaries that guarantee obligations under the Credit Facility (the “Guarantors”). The guarantees are full and unconditional as well as joint and several, and the Guarantors are 100%-owned by the Company.



The following supplemental condensed consolidating financial information reflects the summarized financial information of the Company as the issuer of the senior unsecured notes, the Guarantors and the Company’s non-guarantor subsidiaries on a combined basis. 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

176,725 

 

$

986,361 

 

$

7,104 

 

$

(84,821)

 

$

1,085,369 

Cost of operations

 

 

(154,289)

 

 

(910,809)

 

 

 —

 

 

84,821 

 

 

(980,277)

Gross profit

 

$

22,436 

 

$

75,552 

 

$

7,104 

 

$

 —

 

$

105,092 

General and administrative expenses

 

 

(21,658)

 

 

(42,837)

 

 

(475)

 

 

 —

 

 

(64,970)

Income from construction operations

 

$

778 

 

$

32,715 

 

$

6,629 

 

$

 —

 

$

40,122 

Equity in earnings of subsidiaries

 

 

23,079 

 

 

 —

 

 

 —

 

 

(23,079)

 

 

 —

Other income (expense), net

 

 

(621)

 

 

1,060 

 

 

243 

 

 

 —

 

 

682 

Interest expense

 

 

(13,484)

 

 

(596)

 

 

 —

 

 

 —

 

 

(14,080)

Income (Loss) before income taxes

 

$

9,752 

 

$

33,179 

 

$

6,872 

 

$

(23,079)

 

$

26,724 

Benefit (Provision) for income taxes

 

 

5,648 

 

 

(14,060)

 

 

(2,912)

 

 

 —

 

 

(11,324)

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

938 

 

 

 —

 

 

 —

 

 

(938)

 

 

 —

Defined benefit pension plan adjustments

 

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Foreign currency translation adjustment

 

 

 —

 

 

930 

 

 

 —

 

 

 —

 

 

930 

Unrealized gain in fair value of investments

 

 

 —

 

 

8 

 

 

 —

 

 

 —

 

 

8 

Unrealized loss in fair value of interest rate swap

 

 

(35)

 

 

 —

 

 

 —

 

 

 —

 

 

(35)

Total other comprehensive (loss) income, net of tax

 

$

1,150 

 

$

938 

 

$

 —

 

$

(938)

 

$

1,150 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

16,550 

 

$

20,057 

 

$

3,960 

 

$

(24,017)

 

$

16,550 



TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

236,292 

 

$

885,103 

 

$

4,291 

 

$

(59,221)

 

$

1,066,465 

Cost of operations

 

 

(209,833)

 

 

(825,094)

 

 

 —

 

 

59,221 

 

 

(975,706)

Gross profit

 

$

26,459 

 

$

60,009 

 

$

4,291 

 

$

 —

 

$

90,759 

General and administrative expenses

 

 

(25,035)

 

 

(45,166)

 

 

(474)

 

 

 —

 

 

(70,675)

Income from construction operations

 

$

1,424 

 

$

14,843 

 

$

3,817 

 

$

 —

 

$

20,084 

Equity in earnings of subsidiaries

 

 

11,940 

 

 

 —

 

 

 —

 

 

(11,940)

 

 

 —

Other income (expense), net

 

 

(2,068)

 

 

1,196 

 

 

118 

 

 

 —

 

 

(754)

Interest expense

 

 

(10,264)

 

 

(861)

 

 

 —

 

 

 —

 

 

(11,125)

Income (Loss) before income taxes

 

$

1,032 

 

$

15,178 

 

$

3,935 

 

$

(11,940)

 

$

8,205 

Benefit (Provision) for income taxes

 

 

4,094 

 

 

(5,696)

 

 

(1,477)

 

 

 —

 

 

(3,079)

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

(598)

 

 

 —

 

 

 —

 

 

598 

 

 

 —

Defined benefit pension plan adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Foreign currency translation adjustment

 

 

 —

 

 

(588)

 

 

 —

 

 

 —

 

 

(588)

Unrealized loss in fair value of investments

 

 

 —

 

 

(10)

 

 

 —

 

 

 —

 

 

(10)

Unrealized gain in fair value of interest rate swap

 

 

45 

 

 

 —

 

 

 —

 

 

 —

 

 

45 

Total other comprehensive (loss) income, net of tax

 

$

(553)

 

$

(598)

 

$

 —

 

$

598 

 

$

(553)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

4,573 

 

$

8,884 

 

$

2,458 

 

$

(11,342)

 

$

4,573 



TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

Restricted cash

 

3,260 

 

 

3,686 

 

 

42,212 

 

 

 —

 

 

49,158 

Accounts receivable

 

393,473 

 

 

1,300,463 

 

 

90,244 

 

 

(168,519)

 

 

1,615,661 

Costs and estimated earnings in excess of billings

 

115,635 

 

 

816,642 

 

 

152 

 

 

(74,073)

 

 

858,356 

Deferred income taxes

 

16,566 

 

 

9,984 

 

 

 —

 

 

 —

 

 

26,550 

Other current assets

 

39,685 

 

 

41,897 

 

 

8,478 

 

 

1,930 

 

 

91,990 

Total current assets

$

618,345 

 

$

2,212,823 

 

$

141,791 

 

$

(240,662)

 

$

2,732,297 

Property and equipment

 

102,371 

 

 

413,513 

 

 

4,006 

 

 

 —

 

 

519,890 

Intercompany notes and receivables

 

 —

 

 

270,676 

 

 

 —

 

 

(270,676)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

95,654 

 

 

 —

 

 

 —

 

 

95,654 

Investment in subsidiaries

 

2,122,342 

 

 

 —

 

 

 —

 

 

(2,122,342)

 

 

 —

Other Assets

 

92,320 

 

 

86,370 

 

 

25,735 

 

 

(5,790)

 

 

198,635 

Total assets

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

125,255 

 

$

34,715 

 

$

 —

 

$

(60,000)

 

$

99,970 

Accounts payable

 

210,902 

 

 

974,776 

 

 

1,634 

 

 

(181,406)

 

 

1,005,906 

Billings in excess of costs and estimated earnings

 

88,888 

 

 

198,182 

 

 

593 

 

 

(2,081)

 

 

285,582 

Accrued expenses and other current liabilities

 

36,144 

 

 

79,481 

 

 

42,514 

 

 

2,825 

 

 

160,964 

Total current liabilities

$

461,189 

 

$

1,287,154 

 

$

44,741 

 

$

(240,662)

 

$

1,552,422 

Long-term debt, less current maturities

 

655,029 

 

 

76,524 

 

 

 —

 

 

(5,790)

 

 

725,763 

Deferred income taxes

 

40,066 

 

 

211,828 

 

 

22,338 

 

 

 —

 

 

274,232 

Other long-term liabilities

 

104,897 

 

 

2,323 

 

 

31,514 

 

 

 —

 

 

138,734 

Intercompany notes and advances payable

 

233,866 

 

 

 —

 

 

36,810 

 

 

(270,676)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,440,331 

 

 

2,086,213 

 

 

36,129 

 

 

(2,122,342)

 

 

1,440,331 

Total liabilities and stockholders' equity

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 

 

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

47,196 

 

$

26,892 

 

$

1,364 

 

$

 —

 

$

75,452 

Restricted cash

 

3,369 

 

 

3,283 

 

 

39,201 

 

 

 —

 

 

45,853 

Accounts receivable

 

358,437 

 

 

1,179,919 

 

 

82,004 

 

 

(146,745)

 

 

1,473,615 

Costs and estimated earnings in excess of billings

 

114,580 

 

 

868,026 

 

 

152 

 

 

(77,583)

 

 

905,175 

Deferred income taxes

 

2,255 

 

 

21,356 

 

 

2,695 

 

 

 —

 

 

26,306 

Other current assets

 

60,119 

 

 

48,482 

 

 

11,662 

 

 

(11,419)

 

 

108,844 

Total current assets

$

585,956 

 

$

2,147,958 

 

$

137,078 

 

$

(235,747)

 

$

2,635,245 

Property and equipment

 

105,306 

 

 

414,143 

 

 

4,076 

 

 

 —

 

 

523,525 

Intercompany notes and receivables

 

 —

 

 

148,637 

 

 

 —

 

 

(148,637)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

96,540 

 

 

 —

 

 

 —

 

 

96,540 

Investment in subsidiaries

 

1,962,983 

 

 

 —

 

 

 —

 

 

(1,962,983)

 

 

 —

Other Assets

 

58,722 

 

 

128,094 

 

 

15,268 

 

 

(5,723)

 

 

196,361 

Total assets

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

107,283 

 

$

41,634 

 

$

 —

 

$

(60,000)

 

$

88,917 

Accounts payable

 

211,679 

 

 

890,268 

 

 

3,222 

 

 

(167,705)

 

 

937,464 

Billings in excess of costs and estimated earnings

 

89,303 

 

 

203,003 

 

 

1,716 

 

 

(5,711)

 

 

288,311 

Accrued expenses and other current liabilities

 

6,145 

 

 

115,392 

 

 

39,810 

 

 

(2,331)

 

 

159,016 

Total current liabilities

$

414,410 

 

$

1,250,297 

 

$

44,748 

 

$

(235,747)

 

$

1,473,708 

Long-term debt, less current maturities

 

653,669 

 

 

80,821 

 

 

 —

 

 

(5,723)

 

 

728,767 

Deferred income taxes

 

 —

 

 

273,310 

 

 

 —

 

 

 —

 

 

273,310 

Other long-term liabilities

 

106,588 

 

 

3,278 

 

 

30,799 

 

 

 —

 

 

140,665 

Intercompany notes and advances payable

 

118,073 

 

 

 —

 

 

30,564 

 

 

(148,637)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,420,227 

 

 

1,912,672 

 

 

50,311 

 

 

(1,962,983)

 

 

1,420,227 

Total liabilities and stockholders' equity

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,626 

 

 

8,800 

 

 

70 

 

 

 —

 

 

14,496 

Equity in earnings of subsidiaries

 

 

(23,079)

 

 

 —

 

 

 —

 

 

23,079 

 

 

 —

Share-based compensation expense

 

 

3,647 

 

 

 —

 

 

 —

 

 

 —

 

 

3,647 

Deferred income taxes

 

 

(153)

 

 

(2)

 

 

 —

 

 

 —

 

 

(155)

(Gain) loss on sale of property and equipment

 

 

202 

 

 

83 

 

 

 —

 

 

 —

 

 

285 

Other long-term liabilities

 

 

(3,822)

 

 

(954)

 

 

715 

 

 

 —

 

 

(4,061)

Other non-cash items

 

 

(90)

 

 

1,489 

 

 

 —

 

 

 —

 

 

1,399 

Changes in other components of working capital 

 

 

12,879 

 

 

(25,578)

 

 

(2,368)

 

 

 —

 

 

(15,067)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

10,610 

 

$

2,957 

 

$

2,377 

 

$

 —

 

$

15,944 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment excluding financed purchases

 

 

(1,282)

 

 

(3,530)

 

 

 —

 

 

 —

 

 

(4,812)

Proceeds from sale of property and equipment

 

 

75 

 

 

864 

 

 

 —

 

 

 —

 

 

939 

(Increase) decrease in intercompany advances

 

 

 —

 

 

24,653 

 

 

 —

 

 

(24,653)

 

 

 —

Change in restricted cash

 

 

109 

 

 

(403)

 

 

(3,011)

 

 

 —

 

 

(3,305)

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(1,098)

 

$

21,584 

 

$

(3,011)

 

$

(24,653)

 

$

(7,178)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

299,785 

 

 

 —

 

 

 —

 

 

 —

 

 

299,785 

Repayment of debt

 

 

(276,202)

 

 

(11,282)

 

 

 —

 

 

 —

 

 

(287,484)

Debt Issuance Costs

 

 

(5,937)

 

 

 —

 

 

 —

 

 

 —

 

 

(5,937)

Increase (decrease) in intercompany advances

 

 

(24,628)

 

 

 —

 

 

(25)

 

 

24,653 

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

(6,982)

 

$

(11,282)

 

$

(25)

 

$

24,653 

 

$

6,364 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

2,530 

 

 

13,259 

 

 

(659)

 

 

 —

 

 

15,130 

Cash and cash equivalents at beginning of year

 

 

47,196 

 

 

26,892 

 

 

1,364 

 

 

 —

 

 

75,452 

Cash and cash equivalents at end of period

 

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

 

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,223 

 

 

5,303 

 

 

68 

 

 

 —

 

 

10,594 

Equity in earnings of subsidiaries

 

 

(11,940)

 

 

 —

 

 

 —

 

 

11,940 

 

 

 —

Share-based compensation expense

 

 

9,159 

 

 

 —

 

 

 —

 

 

 —

 

 

9,159 

Deferred income taxes

 

 

(24,392)

 

 

24,392 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of investments

 

 

(17)

 

 

17 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of property and equipment

 

 

17 

 

 

(293)

 

 

 —

 

 

 —

 

 

(276)

Other long-term liabilities

 

 

(1,288)

 

 

3,669 

 

 

 —

 

 

 —

 

 

2,381 

Other non-cash items

 

 

1,176 

 

 

(3,403)

 

 

 —

 

 

 —

 

 

(2,227)

Changes in other components of working capital 

 

 

(73,266)

 

 

43,701 

 

 

2,484 

 

 

 —

 

 

(27,081)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

 

$

(90,202)

 

$

82,868 

 

$

5,010 

 

$

 —

 

$

(2,324)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(729)

 

 

(4,962)

 

 

 —

 

 

 —

 

 

(5,691)

Proceeds from sale of property and equipment

 

 

 —

 

 

798 

 

 

 —

 

 

 —

 

 

798 

Decrease (increase) in intercompany advances

 

 

 —

 

 

(57,146)

 

 

 —

 

 

57,146 

 

 

 —

Change in restricted cash

 

 

 —

 

 

283 

 

 

(6)

 

 

 —

 

 

277 

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(729)

 

$

(61,027)

 

$

(6)

 

$

57,146 

 

$

(4,616)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

280,200 

 

 

 —

 

 

 —

 

 

 —

 

 

280,200 

Repayment of debt

 

 

(252,748)

 

 

(9,364)

 

 

 —

 

 

 —

 

 

(262,112)

Issuance of common stock and effect of cashless exercise

 

 

(773)

 

 

 —

 

 

 —

 

 

 —

 

 

(773)

Increase (decrease) in intercompany advances

 

 

61,103 

 

 

 —

 

 

(3,957)

 

 

(57,146)

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

87,782 

 

$

(9,364)

 

$

(3,957)

 

$

(57,146)

 

$

17,315 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(3,149)

 

 

12,477 

 

 

1,047 

 

 

 —

 

 

10,375 

Cash and cash equivalents at beginning of year

 

 

75,087 

 

 

36,764 

 

 

23,732 

 

 

 —

 

 

135,583 

Cash and cash equivalents at end of period

 

$

71,938 

 

$

49,241 

 

$

24,779 

 

$

 —

 

$

145,958 

  


v3.4.0.3
Earnings per Share (Tables)
3 Months Ended
Mar. 31, 2016
Earnings per Share [Abstract]  
Calculations of the Basic and Diluted EPS



 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands, except per share data)

2016

 

2015

Net income

$

15,400 

 

$

5,126 



 

 

 

 

 

Weighted-average common shares outstanding - basic

 

49,079 

 

 

48,747 

Effect of diluted stock options and unvested restricted stock

 

206 

 

 

796 

Weighted-average common shares outstanding - diluted

 

49,285 

 

 

49,543 



 

 

 

 

 

Net income per share:

 

 

 

 

 

Basic

$

0.31 

 

$

0.11 

Diluted

$

0.31 

 

$

0.10 

Anti-dilutive securities not included above

 

1,704 

 

 

529 




v3.4.0.3
Costs and estimated earnings in excess of billings (Tables)
3 Months Ended
Mar. 31, 2016
Costs and estimated earnings in excess of billings [Abstract]  
Costs and estimated earnings in excess of billings



 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Claims

$

395,708 

 

$

407,164 

Unapproved change orders

 

224,297 

 

 

270,019 

Other unbilled costs and profits

 

238,351 

 

 

227,992 

Total costs and estimated earnings in excess of billings

$

858,356 

 

$

905,175 




v3.4.0.3
Financial Commitments (Tables)
3 Months Ended
Mar. 31, 2016
Financial Commitments [Abstract]  
Long-term Debt



 

 

 

 

 



 

 

 

 

 



March 31,

 

December 31,

(in thousands)

2016

 

2015

Senior Notes

$

297,366 

 

$

297,118 

Revolving Credit Facility

 

178,738 

 

 

155,815 

Term Loan

 

220,198 

 

 

222,120 

Equipment financing, mortgages and acquisition-related notes

 

124,911 

 

 

133,288 

Other indebtedness

 

4,520 

 

 

9,343 

Total debt

 

825,733 

 

 

817,684 

Less – current maturities

 

(99,970)

 

 

(88,917)

Long-term debt, net

$

725,763 

 

$

728,767 



Reconciliation Of Outstanding Debt Balance To Reported Debt Balance



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



March 31, 2016

 

December 31, 2015

(in thousands)

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

 

Outstanding Long-Term Debt

 

Unamortized Discount and Issuance Cost

 

Reported Long-Term Debt

Senior Notes

$

300,000 

 

$

(2,634)

 

$

297,366 

 

$

300,000 

 

$

(2,882)

 

$

297,118 

Revolving Credit Facility

 

183,500 

 

 

(4,762)

 

 

178,738 

 

 

158,000 

 

 

(2,185)

 

 

155,815 

Term Loan

 

223,750 

 

 

(3,552)

 

 

220,198 

 

 

223,750 

 

 

(1,630)

 

 

222,120 




v3.4.0.3
Other Comprehensive Income (Loss) (Tables)
3 Months Ended
Mar. 31, 2016
Other Comprehensive Income (Loss) [Abstract]  
Schedule Of Tax Effects Of The Components Of Other Comprehensive Income (Loss)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Three Months Ended



March 31, 2016

 

March 31, 2015

(in thousands)

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

 

Before-Tax Amount

 

Tax (Expense) Benefit

 

Net-of-Tax Amount

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plan adjustments

$

427 

 

$

(180)

 

$

247 

 

$

 -

 

$

 -

 

$

 -

Foreign currency translation adjustment

 

1,604 

 

 

(674)

 

 

930 

 

 

(964)

 

 

376 

 

 

(588)

Unrealized gain (loss) in fair value of investments

 

13 

 

 

(5)

 

 

8 

 

 

(16)

 

 

6 

 

 

(10)

Unrealized gain (loss) in fair value of interest rate swap

 

(62)

 

 

27 

 

 

(35)

 

 

74 

 

 

(29)

 

 

45 

Total other comprehensive income (loss)

$

1,982 

 

$

(832)

 

$

1,150 

 

$

(906)

 

$

353 

 

$

(553)



Schedule Of Changes In AOCI Balances By Component (After-Tax)



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2016

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Gain in Fair Value of Investments, net

 

Unrealized Gain (Loss) in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(38,242)

 

$

(4,603)

 

$

656 

 

$

24 

 

$

(42,165)

Other comprehensive income (loss) before reclassifications

 

 —

 

 

930 

 

 

8 

 

 

(35)

 

 

903 

Amounts reclassified from AOCI

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Total other comprehensive income (loss)

 

247 

 

 

930 

 

 

8 

 

 

(35)

 

 

1,150 

Balance at the end of the quarter

$

(37,995)

 

$

(3,673)

 

$

664 

 

$

(11)

 

$

(41,015)







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended March 31, 2015

(in thousands)

Defined Benefit Pension Plan

 

Foreign Currency Translation

 

Unrealized Loss in Fair Value of Investments, net

 

Unrealized Gain in Fair Value of Interest Rate Swap, net

 

Accumulated Other Comprehensive Income (Loss), Net

Balance at the beginning of the quarter

$

(40,268)

 

$

(1,389)

 

$

(110)

 

$

149 

 

$

(41,618)

Other comprehensive income (loss)

 

 —

 

 

(588)

 

 

(10)

 

 

45 

 

 

(553)

Balance at the end of the quarter

$

(40,268)

 

$

(1,977)

 

$

(120)

 

$

194 

 

$

(42,171)



Schedule Of Items Reclassified Out Of AOCI And The Corresponding Location And Impact On The Condensed Consolidated Statements Of Operations



 

 

 

 

 

 

 

 



 

Location in

 

Three Months Ended



 

Condensed Consolidated

 

March 31,

(in thousands)

 

Statements of Earnings

 

2016

 

2015

Defined benefit pension plan adjustments

 

Various accounts(1)

 

$

427 

 

$

 —

Income tax benefit

 

Income tax expense

 

 

(180)

 

 

 —

Net of tax

 

 

 

$

247 

 

$

 —


(1)

Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and general and administrative expense.


v3.4.0.3
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2016
Fair Value Measurements [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2016

 

December 31, 2015



 

Fair Value Hierarchy

 

Fair Value Hierarchy

(in thousands)

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Level 1

 

Level 2

 

Level 3

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (a)

 

$

90,582 

 

$

90,582 

 

$

 —

 

$

 —

 

$

75,452 

 

$

75,452 

 

$

 —

 

$

 —

Restricted cash (a)

 

 

49,158 

 

 

49,158 

 

 

 —

 

 

 —

 

 

45,853 

 

 

45,853 

 

 

 —

 

 

 —

Investments in lieu of retainage (b)

 

 

44,036 

 

 

37,988 

 

 

6,048 

 

 

 —

 

 

41,566 

 

 

35,350 

 

 

6,216 

 

 

 —

Total

 

$

183,776 

 

$

177,728 

 

$

6,048 

 

$

 —

 

$

162,871 

 

$

156,655 

 

$

6,216 

 

$

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract (c)

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —

Total

 

$

17 

 

$

 —

 

$

17 

 

$

 —

 

$

45 

 

$

 —

 

$

45 

 

$

 —


(a)

Cash, cash equivalents and restricted cash consist primarily of money market funds with original maturity dates of three months or less, for which fair value is determined through quoted market prices.

(b)

Investments in lieu of retainage are classified as accounts  receivable and are comprised primarily of money market funds, U.S. Treasury Notes and other municipal bonds, the majority of which are rated Aa3 or better. The fair values of the U.S. Treasury Notes and municipal bonds are obtained from readily-available pricing sources for comparable instruments and, as such, the Company has classified these assets as Level 2.

(c)

The Company values the interest rate swap liability utilizing a discounted cash flow model that takes into consideration forward interest rates observable in the market and the counterparty’s risk.


v3.4.0.3
Business Segments (Tables)
3 Months Ended
Mar. 31, 2016
Business Segments [Abstract]  
Reportable Segments



Reportable Segments

 

 

 

 

 

 



 

 

 

 

 

 

Specialty

 

 

 

 

 

 

 

Consolidated

(in thousands)

Civil

 

 

Building

 

Contractors

 

Totals

 

Corporate

 

Total

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

367,501 

 

$

487,994 

 

$

281,773 

 

$

1,137,268 

 

$

 —

 

$

1,137,268 

Elimination of intersegment revenue

 

(31,643)

 

 

(20,256)

 

 

 —

 

 

(51,899)

 

 

 —

 

 

(51,899)

Revenue from external customers

$

335,858 

 

$

467,738 

 

$

281,773 

 

$

1,085,369 

 

$

 —

 

$

1,085,369 

Income from construction operations

$

33,665 

 

$

12,450 

 

$

9,413 

 

$

55,528 

 

$

(15,406)

(a)

$

40,122 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

392,876 

 

$

416,063 

 

$

293,017 

 

$

1,101,956 

 

$

 —

 

$

1,101,956 

Elimination of intersegment revenue

 

(18,202)

 

 

(17,233)

 

 

(56)

 

 

(35,491)

 

 

 —

 

 

(35,491)

Revenue from external customers

$

374,674 

 

$

398,830 

 

$

292,961 

 

$

1,066,465 

 

$

 —

 

$

1,066,465 

Income from construction operations

$

30,593 

 

$

(2,279)

 

$

10,524 

 

$

38,838 

 

$

(18,754)

(a)

$

20,084 

(a)

Consists primarily of corporate general and administrative expenses.



Reconciliation of Segment Results to Consolidated Income Before Income Taxes



 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Income from construction operations

$

40,122 

 

$

20,084 

Other income (expense), net

 

682 

 

 

(754)

Interest expense

 

(14,080)

 

 

(11,125)

Income before income taxes

$

26,724 

 

$

8,205 



Schedule of Assets by Segment



 

 

 

 

 

(in thousands)

March 31, 2016

 

December 31, 2015

Civil

$

1,947,787 

 

$

1,964,038 

Building

 

902,669 

 

 

795,851 

Specialty Contractors

 

843,379 

 

 

860,285 

Corporate and other (a)

 

437,647 

 

 

416,503 

Total Assets

$

4,131,482 

 

$

4,036,677 

(a)

Consists principally of cash and cash equivalents as well as corporate transportation and other equipment.

 


v3.4.0.3
Employee Pension Plans (Tables)
3 Months Ended
Mar. 31, 2016
Employee Pension Plans [Abstract]  
Components of Net Periodic Benefit Cost



 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands)

2016

 

2015

Interest cost

$

1,053 

 

$

1,011 

Expected return on plan assets

 

(1,203)

 

 

(1,256)

Amortization of net loss

 

427 

 

 

1,460 

Other

 

150 

 

 

 —

Net periodic benefit cost

$

427 

 

$

1,215 




v3.4.0.3
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Tables)
3 Months Ended
Mar. 31, 2016
Separate Financial Information of Subsidiary Guarantors of Indebtedness [Abstract]  
Condensed Consolidating Statement of Operations

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

176,725 

 

$

986,361 

 

$

7,104 

 

$

(84,821)

 

$

1,085,369 

Cost of operations

 

 

(154,289)

 

 

(910,809)

 

 

 —

 

 

84,821 

 

 

(980,277)

Gross profit

 

$

22,436 

 

$

75,552 

 

$

7,104 

 

$

 —

 

$

105,092 

General and administrative expenses

 

 

(21,658)

 

 

(42,837)

 

 

(475)

 

 

 —

 

 

(64,970)

Income from construction operations

 

$

778 

 

$

32,715 

 

$

6,629 

 

$

 —

 

$

40,122 

Equity in earnings of subsidiaries

 

 

23,079 

 

 

 —

 

 

 —

 

 

(23,079)

 

 

 —

Other income (expense), net

 

 

(621)

 

 

1,060 

 

 

243 

 

 

 —

 

 

682 

Interest expense

 

 

(13,484)

 

 

(596)

 

 

 —

 

 

 —

 

 

(14,080)

Income (Loss) before income taxes

 

$

9,752 

 

$

33,179 

 

$

6,872 

 

$

(23,079)

 

$

26,724 

Benefit (Provision) for income taxes

 

 

5,648 

 

 

(14,060)

 

 

(2,912)

 

 

 —

 

 

(11,324)

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

938 

 

 

 —

 

 

 —

 

 

(938)

 

 

 —

Defined benefit pension plan adjustments

 

 

247 

 

 

 —

 

 

 —

 

 

 —

 

 

247 

Foreign currency translation adjustment

 

 

 —

 

 

930 

 

 

 —

 

 

 —

 

 

930 

Unrealized gain in fair value of investments

 

 

 —

 

 

8 

 

 

 —

 

 

 —

 

 

8 

Unrealized loss in fair value of interest rate swap

 

 

(35)

 

 

 —

 

 

 —

 

 

 —

 

 

(35)

Total other comprehensive (loss) income, net of tax

 

$

1,150 

 

$

938 

 

$

 —

 

$

(938)

 

$

1,150 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

16,550 

 

$

20,057 

 

$

3,960 

 

$

(24,017)

 

$

16,550 



TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Revenue

 

$

236,292 

 

$

885,103 

 

$

4,291 

 

$

(59,221)

 

$

1,066,465 

Cost of operations

 

 

(209,833)

 

 

(825,094)

 

 

 —

 

 

59,221 

 

 

(975,706)

Gross profit

 

$

26,459 

 

$

60,009 

 

$

4,291 

 

$

 —

 

$

90,759 

General and administrative expenses

 

 

(25,035)

 

 

(45,166)

 

 

(474)

 

 

 —

 

 

(70,675)

Income from construction operations

 

$

1,424 

 

$

14,843 

 

$

3,817 

 

$

 —

 

$

20,084 

Equity in earnings of subsidiaries

 

 

11,940 

 

 

 —

 

 

 —

 

 

(11,940)

 

 

 —

Other income (expense), net

 

 

(2,068)

 

 

1,196 

 

 

118 

 

 

 —

 

 

(754)

Interest expense

 

 

(10,264)

 

 

(861)

 

 

 —

 

 

 —

 

 

(11,125)

Income (Loss) before income taxes

 

$

1,032 

 

$

15,178 

 

$

3,935 

 

$

(11,940)

 

$

8,205 

Benefit (Provision) for income taxes

 

 

4,094 

 

 

(5,696)

 

 

(1,477)

 

 

 —

 

 

(3,079)

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income of subsidiaries

 

 

(598)

 

 

 —

 

 

 —

 

 

598 

 

 

 —

Defined benefit pension plan adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Foreign currency translation adjustment

 

 

 —

 

 

(588)

 

 

 —

 

 

 —

 

 

(588)

Unrealized loss in fair value of investments

 

 

 —

 

 

(10)

 

 

 —

 

 

 —

 

 

(10)

Unrealized gain in fair value of interest rate swap

 

 

45 

 

 

 —

 

 

 —

 

 

 —

 

 

45 

Total other comprehensive (loss) income, net of tax

 

$

(553)

 

$

(598)

 

$

 —

 

$

598 

 

$

(553)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss)

 

$

4,573 

 

$

8,884 

 

$

2,458 

 

$

(11,342)

 

$

4,573 



Condensed Consolidating Balance Sheet

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

Restricted cash

 

3,260 

 

 

3,686 

 

 

42,212 

 

 

 —

 

 

49,158 

Accounts receivable

 

393,473 

 

 

1,300,463 

 

 

90,244 

 

 

(168,519)

 

 

1,615,661 

Costs and estimated earnings in excess of billings

 

115,635 

 

 

816,642 

 

 

152 

 

 

(74,073)

 

 

858,356 

Deferred income taxes

 

16,566 

 

 

9,984 

 

 

 —

 

 

 —

 

 

26,550 

Other current assets

 

39,685 

 

 

41,897 

 

 

8,478 

 

 

1,930 

 

 

91,990 

Total current assets

$

618,345 

 

$

2,212,823 

 

$

141,791 

 

$

(240,662)

 

$

2,732,297 

Property and equipment

 

102,371 

 

 

413,513 

 

 

4,006 

 

 

 —

 

 

519,890 

Intercompany notes and receivables

 

 —

 

 

270,676 

 

 

 —

 

 

(270,676)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

95,654 

 

 

 —

 

 

 —

 

 

95,654 

Investment in subsidiaries

 

2,122,342 

 

 

 —

 

 

 —

 

 

(2,122,342)

 

 

 —

Other Assets

 

92,320 

 

 

86,370 

 

 

25,735 

 

 

(5,790)

 

 

198,635 

Total assets

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

125,255 

 

$

34,715 

 

$

 —

 

$

(60,000)

 

$

99,970 

Accounts payable

 

210,902 

 

 

974,776 

 

 

1,634 

 

 

(181,406)

 

 

1,005,906 

Billings in excess of costs and estimated earnings

 

88,888 

 

 

198,182 

 

 

593 

 

 

(2,081)

 

 

285,582 

Accrued expenses and other current liabilities

 

36,144 

 

 

79,481 

 

 

42,514 

 

 

2,825 

 

 

160,964 

Total current liabilities

$

461,189 

 

$

1,287,154 

 

$

44,741 

 

$

(240,662)

 

$

1,552,422 

Long-term debt, less current maturities

 

655,029 

 

 

76,524 

 

 

 —

 

 

(5,790)

 

 

725,763 

Deferred income taxes

 

40,066 

 

 

211,828 

 

 

22,338 

 

 

 —

 

 

274,232 

Other long-term liabilities

 

104,897 

 

 

2,323 

 

 

31,514 

 

 

 —

 

 

138,734 

Intercompany notes and advances payable

 

233,866 

 

 

 —

 

 

36,810 

 

 

(270,676)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,440,331 

 

 

2,086,213 

 

 

36,129 

 

 

(2,122,342)

 

 

1,440,331 

Total liabilities and stockholders' equity

$

2,935,378 

 

$

3,664,042 

 

$

171,532 

 

$

(2,639,470)

 

$

4,131,482 

 

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Non-

 

 

 

 

 

 



Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

47,196 

 

$

26,892 

 

$

1,364 

 

$

 —

 

$

75,452 

Restricted cash

 

3,369 

 

 

3,283 

 

 

39,201 

 

 

 —

 

 

45,853 

Accounts receivable

 

358,437 

 

 

1,179,919 

 

 

82,004 

 

 

(146,745)

 

 

1,473,615 

Costs and estimated earnings in excess of billings

 

114,580 

 

 

868,026 

 

 

152 

 

 

(77,583)

 

 

905,175 

Deferred income taxes

 

2,255 

 

 

21,356 

 

 

2,695 

 

 

 —

 

 

26,306 

Other current assets

 

60,119 

 

 

48,482 

 

 

11,662 

 

 

(11,419)

 

 

108,844 

Total current assets

$

585,956 

 

$

2,147,958 

 

$

137,078 

 

$

(235,747)

 

$

2,635,245 

Property and equipment

 

105,306 

 

 

414,143 

 

 

4,076 

 

 

 —

 

 

523,525 

Intercompany notes and receivables

 

 —

 

 

148,637 

 

 

 —

 

 

(148,637)

 

 

 —

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 —

 

 

585,006 

 

 

 —

 

 

 —

 

 

585,006 

Intangible assets, net

 

 —

 

 

96,540 

 

 

 —

 

 

 —

 

 

96,540 

Investment in subsidiaries

 

1,962,983 

 

 

 —

 

 

 —

 

 

(1,962,983)

 

 

 —

Other Assets

 

58,722 

 

 

128,094 

 

 

15,268 

 

 

(5,723)

 

 

196,361 

Total assets

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

107,283 

 

$

41,634 

 

$

 —

 

$

(60,000)

 

$

88,917 

Accounts payable

 

211,679 

 

 

890,268 

 

 

3,222 

 

 

(167,705)

 

 

937,464 

Billings in excess of costs and estimated earnings

 

89,303 

 

 

203,003 

 

 

1,716 

 

 

(5,711)

 

 

288,311 

Accrued expenses and other current liabilities

 

6,145 

 

 

115,392 

 

 

39,810 

 

 

(2,331)

 

 

159,016 

Total current liabilities

$

414,410 

 

$

1,250,297 

 

$

44,748 

 

$

(235,747)

 

$

1,473,708 

Long-term debt, less current maturities

 

653,669 

 

 

80,821 

 

 

 —

 

 

(5,723)

 

 

728,767 

Deferred income taxes

 

 —

 

 

273,310 

 

 

 —

 

 

 —

 

 

273,310 

Other long-term liabilities

 

106,588 

 

 

3,278 

 

 

30,799 

 

 

 —

 

 

140,665 

Intercompany notes and advances payable

 

118,073 

 

 

 —

 

 

30,564 

 

 

(148,637)

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies and commitments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,420,227 

 

 

1,912,672 

 

 

50,311 

 

 

(1,962,983)

 

 

1,420,227 

Total liabilities and stockholders' equity

$

2,712,967 

 

$

3,520,378 

 

$

156,422 

 

$

(2,353,090)

 

$

4,036,677 



Condensed Consolidating Statement of Cash Flows

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2016



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,400 

 

$

19,119 

 

$

3,960 

 

$

(23,079)

 

$

15,400 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,626 

 

 

8,800 

 

 

70 

 

 

 —

 

 

14,496 

Equity in earnings of subsidiaries

 

 

(23,079)

 

 

 —

 

 

 —

 

 

23,079 

 

 

 —

Share-based compensation expense

 

 

3,647 

 

 

 —

 

 

 —

 

 

 —

 

 

3,647 

Deferred income taxes

 

 

(153)

 

 

(2)

 

 

 —

 

 

 —

 

 

(155)

(Gain) loss on sale of property and equipment

 

 

202 

 

 

83 

 

 

 —

 

 

 —

 

 

285 

Other long-term liabilities

 

 

(3,822)

 

 

(954)

 

 

715 

 

 

 —

 

 

(4,061)

Other non-cash items

 

 

(90)

 

 

1,489 

 

 

 —

 

 

 —

 

 

1,399 

Changes in other components of working capital 

 

 

12,879 

 

 

(25,578)

 

 

(2,368)

 

 

 —

 

 

(15,067)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

10,610 

 

$

2,957 

 

$

2,377 

 

$

 —

 

$

15,944 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment excluding financed purchases

 

 

(1,282)

 

 

(3,530)

 

 

 —

 

 

 —

 

 

(4,812)

Proceeds from sale of property and equipment

 

 

75 

 

 

864 

 

 

 —

 

 

 —

 

 

939 

(Increase) decrease in intercompany advances

 

 

 —

 

 

24,653 

 

 

 —

 

 

(24,653)

 

 

 —

Change in restricted cash

 

 

109 

 

 

(403)

 

 

(3,011)

 

 

 —

 

 

(3,305)

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(1,098)

 

$

21,584 

 

$

(3,011)

 

$

(24,653)

 

$

(7,178)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

299,785 

 

 

 —

 

 

 —

 

 

 —

 

 

299,785 

Repayment of debt

 

 

(276,202)

 

 

(11,282)

 

 

 —

 

 

 —

 

 

(287,484)

Debt Issuance Costs

 

 

(5,937)

 

 

 —

 

 

 —

 

 

 —

 

 

(5,937)

Increase (decrease) in intercompany advances

 

 

(24,628)

 

 

 —

 

 

(25)

 

 

24,653 

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

(6,982)

 

$

(11,282)

 

$

(25)

 

$

24,653 

 

$

6,364 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

2,530 

 

 

13,259 

 

 

(659)

 

 

 —

 

 

15,130 

Cash and cash equivalents at beginning of year

 

 

47,196 

 

 

26,892 

 

 

1,364 

 

 

 —

 

 

75,452 

Cash and cash equivalents at end of period

 

$

49,726 

 

$

40,151 

 

$

705 

 

$

 —

 

$

90,582 

 

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015



UNAUDITED





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Non-

 

 

 

 

 

 



 

Tutor Perini

 

Guarantor

 

Guarantor

 

 

 

 

Total

(in thousands)

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Eliminations

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,126 

 

$

9,482 

 

$

2,458 

 

$

(11,940)

 

$

5,126 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,223 

 

 

5,303 

 

 

68 

 

 

 —

 

 

10,594 

Equity in earnings of subsidiaries

 

 

(11,940)

 

 

 —

 

 

 —

 

 

11,940 

 

 

 —

Share-based compensation expense

 

 

9,159 

 

 

 —

 

 

 —

 

 

 —

 

 

9,159 

Deferred income taxes

 

 

(24,392)

 

 

24,392 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of investments

 

 

(17)

 

 

17 

 

 

 —

 

 

 —

 

 

 —

(Gain) loss on sale of property and equipment

 

 

17 

 

 

(293)

 

 

 —

 

 

 —

 

 

(276)

Other long-term liabilities

 

 

(1,288)

 

 

3,669 

 

 

 —

 

 

 —

 

 

2,381 

Other non-cash items

 

 

1,176 

 

 

(3,403)

 

 

 —

 

 

 —

 

 

(2,227)

Changes in other components of working capital 

 

 

(73,266)

 

 

43,701 

 

 

2,484 

 

 

 —

 

 

(27,081)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

 

$

(90,202)

 

$

82,868 

 

$

5,010 

 

$

 —

 

$

(2,324)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(729)

 

 

(4,962)

 

 

 —

 

 

 —

 

 

(5,691)

Proceeds from sale of property and equipment

 

 

 —

 

 

798 

 

 

 —

 

 

 —

 

 

798 

Decrease (increase) in intercompany advances

 

 

 —

 

 

(57,146)

 

 

 —

 

 

57,146 

 

 

 —

Change in restricted cash

 

 

 —

 

 

283 

 

 

(6)

 

 

 —

 

 

277 

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

 

$

(729)

 

$

(61,027)

 

$

(6)

 

$

57,146 

 

$

(4,616)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

280,200 

 

 

 —

 

 

 —

 

 

 —

 

 

280,200 

Repayment of debt

 

 

(252,748)

 

 

(9,364)

 

 

 —

 

 

 —

 

 

(262,112)

Issuance of common stock and effect of cashless exercise

 

 

(773)

 

 

 —

 

 

 —

 

 

 —

 

 

(773)

Increase (decrease) in intercompany advances

 

 

61,103 

 

 

 —

 

 

(3,957)

 

 

(57,146)

 

 

 —

NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES

 

$

87,782 

 

$

(9,364)

 

$

(3,957)

 

$

(57,146)

 

$

17,315 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(3,149)

 

 

12,477 

 

 

1,047 

 

 

 —

 

 

10,375 

Cash and cash equivalents at beginning of year

 

 

75,087 

 

 

36,764 

 

 

23,732 

 

 

 —

 

 

135,583 

Cash and cash equivalents at end of period

 

$

71,938 

 

$

49,241 

 

$

24,779 

 

$

 —

 

$

145,958 




v3.4.0.3
Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Current deferred tax assets $ 26,550 $ 26,306
Current deferred tax liabilities 24,900  
Long-Term Debt, Less Current Maturities [Member] | Reclassification [Member]    
Unamortized debt issuance costs   5,800
Tutor Perini Corporation [Member]    
Current deferred tax assets $ 16,566 $ 2,255

v3.4.0.3
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net income $ 15,400 $ 5,126
Weighted-average common shares outstanding - basic 49,079 48,747
Effect of diluted stock options and unvested restricted stock 206 796
Weighted-average common shares outstanding - diluted 49,285 49,543
Net income per share: Basic $ 0.31 $ 0.11
Net income per share: Diluted $ 0.31 $ 0.10
Anti-dilutive securities not included above 1,704 529
Tutor Perini Corporation [Member]    
Net income $ 15,400 $ 5,126

v3.4.0.3
Costs and estimated earnings in excess of billings (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Costs and estimated earnings in excess of billings [Abstract]    
Claims $ 395,708 $ 407,164
Unapproved change orders 224,297 270,019
Other unbilled costs and profits 238,351 227,992
Total costs and estimated earnings in excess of billings $ 858,356 $ 905,175

v3.4.0.3
Financial Commitments (Narrative) (Details)
3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2016
Mar. 31, 2016
USD ($)
Mar. 31, 2015
USD ($)
Sep. 30, 2016
Dec. 31, 2015
USD ($)
Amended Credit Agreement [Abstract]          
Operating Income (Loss)   $ 40,122,000 $ 20,084,000    
Loan outstanding   825,733,000     $ 817,684,000
Senior Unsecured Notes [Member]          
Amended Credit Agreement [Abstract]          
Loan outstanding   297,366,000     297,118,000
Original Term Loan [Member]          
Amended Credit Agreement [Abstract]          
Face amount   250,000,000      
Term Loan [Member]          
Amended Credit Agreement [Abstract]          
Loan outstanding   220,198,000     222,120,000
Original Facility [Member]          
Amended Credit Agreement [Abstract]          
Revolver optional increase removed by amendment   $ 300,000,000      
Percentage of foreign restricted subsidiary stock pledged as collateral   65.00%      
Original Facility [Member] | Amendment Terms Based On Leverage Ratio Greater Than 3.5 to 1.0 [Member]          
Amended Credit Agreement [Abstract]          
Leverage ratio, Required   3.5      
Maximum adjustment to Applicable Rate (as a percent)   1.00%      
Original Facility [Member] | Amendment Terms Based On Leverage Ratio Greater Than 4.0 to 1.0 [Member]          
Amended Credit Agreement [Abstract]          
Leverage ratio, Required   4.0      
Maximum adjustment to Applicable Rate (as a percent)   1.00%      
Original Facility [Member] | Minimum [Member[          
Amended Credit Agreement [Abstract]          
Fixed charge coverage ratio, Required   1.25      
Original Facility [Member] | Minimum [Member[ | Scenario Plan [Member]          
Amended Credit Agreement [Abstract]          
Leverage ratio, Required 3.00        
Original Facility [Member] | Maximum [Member] | Scenario Plan [Member]          
Amended Credit Agreement [Abstract]          
Leverage ratio, Required 3.25 4.25   4.0  
Original Revolver [Member]          
Amended Credit Agreement [Abstract]          
Loan outstanding   $ 178,738,000     155,815,000
Available borrowing capacity   116,300,000      
Letters Of Credit [Member]          
Amended Credit Agreement [Abstract]          
Letters of credit outstanding   200,000     200,000
Revolver [Member]          
Amended Credit Agreement [Abstract]          
Maximum borrowing capacity   $ 300,000,000      
Brightwater Matter [Member]          
Amended Credit Agreement [Abstract]          
Pre-tax charge         23,900,000
Five Star Electric [Member]          
Amended Credit Agreement [Abstract]          
Pre-tax charge         $ 45,600,000

v3.4.0.3
Financial Commitments (Long-Term Debt) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]    
Total debt $ 825,733 $ 817,684
Less - current maturities (99,970) (88,917)
Long-term debt, net 725,763 728,767
Senior Unsecured Notes [Member]    
Debt Instrument [Line Items]    
Total debt $ 297,366 297,118
Imputed interest rate 7.99%  
Original Revolver [Member]    
Debt Instrument [Line Items]    
Total debt $ 178,738 155,815
Imputed interest rate 8.84%  
Term Loan [Member]    
Debt Instrument [Line Items]    
Total debt $ 220,198 222,120
Equipment Financing, Mortgages And Acquisition-related Notes [Member]    
Debt Instrument [Line Items]    
Total debt 124,911 133,288
Other Indebtedness    
Debt Instrument [Line Items]    
Total debt $ 4,520 $ 9,343

v3.4.0.3
Financial Commitments (Reconciliation Of Outstanding Debt Balance To Reported Debt Balance) (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Unamortized Discount and Issuance Cost $ (10,948) $ (6,697)
Total debt 825,733 817,684
Original Revolver [Member]    
Outstanding Long Term Debt 183,500 158,000
Unamortized Discount and Issuance Cost (4,762) (2,185)
Total debt 178,738 155,815
Senior Unsecured Notes [Member]    
Outstanding Long Term Debt 300,000 300,000
Unamortized Discount and Issuance Cost (2,634) (2,882)
Total debt 297,366 297,118
Term Loan [Member]    
Outstanding Long Term Debt 223,750 223,750
Unamortized Discount and Issuance Cost (3,552) (1,630)
Total debt $ 220,198 $ 222,120

v3.4.0.3
Contingencies and Commitments (Details)
$ in Thousands
1 Months Ended 12 Months Ended
Oct. 01, 2014
USD ($)
Mar. 20, 2014
USD ($)
Oct. 30, 2013
USD ($)
Aug. 20, 2013
USD ($)
Mar. 31, 2015
USD ($)
Mar. 31, 2011
USD ($)
Jun. 30, 2003
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2009
USD ($)
room
Mar. 31, 2016
USD ($)
claim
Sep. 30, 2015
ft²
Jul. 31, 2014
USD ($)
May. 31, 2012
USD ($)
Sep. 30, 2011
USD ($)
Jul. 31, 2010
USD ($)
May. 31, 2010
USD ($)
Mar. 31, 2010
USD ($)
Jun. 30, 2009
USD ($)
Feb. 28, 2006
USD ($)
Loss Contingencies [Line Items]                                      
Contract receivables               $ 1,473,615   $ 1,615,661                  
Tutor Perini Corporation [Member]                                      
Loss Contingencies [Line Items]                                      
Contract receivables               358,437   $ 393,473                  
Long Island Expressway/Cross Island Parkway Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Estimated value of project completed in Feb. 2006                                     $ 130,000
Value of claim filed           $ 53,800                          
Amount receivable as per final agreement                           $ 500          
Value of counterclaim filed                         $ 151,000            
Fontainebleau Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Number of rooms in hotel/casino complex | room                 3,800                    
Amount of court order in favor of plaintiff                               $ 45,000      
Total outstanding liens on property, including subcontractors' liens                                   $ 44,000  
Amount set aside from approved sale for distribution to satisfy creditor claims                             $ 125,000        
Estimated sustainable lien amount                             $ 350,000        
Honeywell Street/Queens Boulevard Bridges Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Value of claim filed             $ 8,800                        
Value of counterclaim filed                                 $ 74,600    
Westgate Planet Hollywood Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Settlement receipt   $ 600                                  
Total awards   19,700                                  
Damages awarded which were anticipated to be paid including interest   $ 3,100                                  
Value of cross complaint filed                 $ 51,000                    
Value of counterclaim filed                 45,000                    
Total outstanding liens on property, including subcontractors' liens                 23,200                    
Value of mechanic's lien release bond                 $ 22,300     $ 22,300              
Value of supersedeas bond                       1,700              
Total value of security                       $ 24,000              
Brightwater Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Pre-tax charge               $ 23,900                      
U.S. Department of Commerce, National Oceanic and Atmospheric Administration Matter [Member]                                      
Loss Contingencies [Line Items]                                      
Total awards         $ 1,000                            
Value of claim filed $ 700   $ 2,600 $ 26,800                              
Number of claims | claim                   3                  
Square footage of facility | ft²                     287,000                
Total awards denied         $ 29,500                            

v3.4.0.3
Share-Based Compensation (Details) - $ / shares
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Restricted Stock Units [Member]    
Share-Based Compensation [Line Items]    
Units granted 483,387 291,500
Weighted-average per share prices $ 19.14 $ 23.35
Stock Options [Member]    
Share-Based Compensation [Line Items]    
Stock options awarded 274,000 259,000
Weighted-average exercise prices $ 16.20 $ 16.07

v3.4.0.3
Other Comprehensive Income (Loss) (Schedule Of Tax Effects Of The Components Of Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Other Comprehensive Income (Loss) [Abstract]    
Defined benefit pension plan adjustments, Before-Tax Amount $ 427  
Defined benefit pension plan adjustments, Tax (Expense) Benefit (180)  
Defined benefit pension plan adjustments, Net-of-Tax Amount 247  
Foreign currency translation adjustment, Before-Tax Amount 1,604 $ (964)
Foreign currency translation adjustment, Tax (Expense) Benefit (674) 376
Foreign currency translation adjustment, Net-of-Tax Amount 930 (588)
Unrealized gain (loss) in fair value of investments, Before-Tax Amount 13 (16)
Unrealized gain (loss) in fair value of investments, Tax (Expense) Benefit (5) 6
Unrealized gain (loss) in fair value of investments, Net-of-Tax Amount 8 (10)
Unrealized gain (loss) in fair value of interest rate swap, Before-Tax Amount (62) 74
Unrealized gain (loss) in fair value of interest rate swap, Tax (Expense) Benefit 27 (29)
Unrealized gain (loss) in fair value of interest rate swap, Net-of-Tax Amount (35) 45
Total other comprehensive income (loss), Before-Tax Amount 1,982 (906)
Total other comprehensive income (loss), Tax (Expense) Benefit (832) 353
Total other comprehensive (loss) income, net of tax $ 1,150 $ (553)

v3.4.0.3
Other Comprehensive Income (Loss) (Schedule Of Changes In AOCI Balances By Component (After-Tax)) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter $ 1,420,227  
Net other comprehensive income (loss) 1,150 $ (553)
Balance at the end of the quarter 1,440,331  
Defined Benefit Pension Plan [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter (38,242) (40,268)
Amounts reclassified from AOCI 247  
Net other comprehensive income (loss) 247  
Balance at the end of the quarter (37,995) (40,268)
Foreign Currency Translation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter (4,603) (1,389)
Other comprehensive income (loss) before reclassifications 930  
Net other comprehensive income (loss) 930 (588)
Balance at the end of the quarter (3,673) (1,977)
Unrealized Gain (Loss) in Fair Value of Investments, net [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter 656 (110)
Other comprehensive income (loss) before reclassifications 8  
Net other comprehensive income (loss) 8 (10)
Balance at the end of the quarter 664 (120)
Unrealized Gain (Loss) in Fair Value of Interest Rate Swap, net [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter 24 149
Other comprehensive income (loss) before reclassifications (35)  
Net other comprehensive income (loss) (35) 45
Balance at the end of the quarter (11) 194
Accumulated Other Comprehensive (Loss) Income [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Balance at the beginning of the quarter (42,165) (41,618)
Other comprehensive income (loss) before reclassifications 903  
Amounts reclassified from AOCI 247  
Net other comprehensive income (loss) 1,150 (553)
Balance at the end of the quarter $ (41,015) $ (42,171)

v3.4.0.3
Other Comprehensive Income (Loss) (Schedule Of Items Reclassified Out Of AOCI And The Corresponding Location And Impact On The Condensed Consolidated Statements Of Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Income tax provision $ 11,324 $ 3,079
NET INCOME 15,400 $ 5,126
Reclassification out of Accumulated Other Comprehensive Income [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Defined benefit pension plan adjustments (427)
Income tax provision 180
NET INCOME $ 247

v3.4.0.3
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Taxes [Abstract]    
Income tax provision $ 11,324 $ 3,079
Effective income tax rate 42.40% 37.50%

v3.4.0.3
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Long-term Debt    
Transfers between Levels 1 and 2, description The Company did not have transfers between Levels 1 and 2 for either financial assets or liabilities, during the three months ended March 31, 2016 or 2015.  
Fair Value [Member] | Senior Unsecured Notes [Member]    
Long-term Debt    
Debt $ 295.5 $ 305.6
Carrying Value [Member] | Senior Unsecured Notes [Member]    
Long-term Debt    
Debt $ 299.1 $ 299.0

v3.4.0.3
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Assets:    
Restricted cash $ 49,158 $ 45,853
Fair Value Measured On A Recurring Basis [Member] | Quoted Prices In Active Markets (Level 1) [Member]    
Assets:    
Cash and cash equivalents 90,582 75,452
Restricted cash 49,158 45,853
Investments in lieu of retainage 37,988 35,350
Total assets 177,728 156,655
Fair Value Measured On A Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Assets:    
Investments in lieu of retainage 6,048 6,216
Total assets 6,048 6,216
Liabilities:    
Interest rate swap contract 17 45
Total liabilities 17 45
Carrying Value [Member] | Fair Value Measured On A Recurring Basis [Member]    
Assets:    
Cash and cash equivalents 90,582 75,452
Restricted cash 49,158 45,853
Investments in lieu of retainage 44,036 41,566
Total assets 183,776 162,871
Liabilities:    
Interest rate swap contract 17 45
Total liabilities $ 17 $ 45

v3.4.0.3
Business Segments (Narrative) (Details)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2016
USD ($)
segment
item
$ / shares
Mar. 31, 2015
USD ($)
$ / shares
Segment Reporting Information [Line Items]    
Number of reportable segments | segment 3  
Income from construction operations $ 40,122 $ 20,084
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ / shares $ 0.31 $ 0.10
Depreciation and amortization $ 14,496 $ 10,594
Tutor Perini Corporation [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations 778 1,424
Depreciation and amortization 5,626 5,223
Building [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations 12,450 (2,279)
Depreciation and amortization 600 700
Civil [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations 33,665 30,593
Depreciation and amortization 8,100 5,500
Specialty Contractors [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations 9,413 10,524
Depreciation and amortization 1,300 1,400
Corporate [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations (15,406) (18,754)
Depreciation and amortization 2,900 $ 2,500
Five Star Electric [Member] | Specialty Contractors [Member] | Scenario Favorable Adjustment [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations $ 3,000  
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ / shares $ 0.04  
Five Star Electric Subcontract [Member] | Specialty Contractors [Member]    
Segment Reporting Information [Line Items]    
Number of projects | item 2  
Five Star Electric Subcontract [Member] | Specialty Contractors [Member] | Scenario Unfavorable Adjustment [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations $ 13,800  
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ / shares $ 0.17  
Five Star Electric Subcontract [Member] | Specialty Contractors [Member] | Scenario Favorable Adjustment [Member]    
Segment Reporting Information [Line Items]    
Income from construction operations $ 14,000  
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ / shares $ 0.17  

v3.4.0.3
Business Segments (Reportable Segments) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Business Segments [Line items]    
Revenue $ 1,085,369 $ 1,066,465
Income from construction operations 40,122 20,084
Other income (expense), net 682 (754)
Interest expense (14,080) (11,125)
INCOME BEFORE INCOME TAXES 26,724 8,205
Elimination Of Intersegment Revenues [Member]    
Business Segments [Line items]    
Revenue (51,899) (35,491)
Operating segment [Member]    
Business Segments [Line items]    
Revenue 1,137,268 1,101,956
Reportable Segments [Member]    
Business Segments [Line items]    
Revenue 1,085,369 1,066,465
Income from construction operations 55,528 38,838
Reportable Segments [Member] | Elimination Of Intersegment Revenues [Member]    
Business Segments [Line items]    
Revenue (51,899) (35,491)
Reportable Segments [Member] | Operating segment [Member]    
Business Segments [Line items]    
Revenue 1,137,268 1,101,956
Civil [Member]    
Business Segments [Line items]    
Revenue 335,858 374,674
Income from construction operations 33,665 30,593
Civil [Member] | Elimination Of Intersegment Revenues [Member]    
Business Segments [Line items]    
Revenue (31,643) (18,202)
Civil [Member] | Operating segment [Member]    
Business Segments [Line items]    
Revenue 367,501 392,876
Building [Member]    
Business Segments [Line items]    
Revenue 467,738 398,830
Income from construction operations 12,450 (2,279)
Building [Member] | Elimination Of Intersegment Revenues [Member]    
Business Segments [Line items]    
Revenue (20,256) (17,233)
Building [Member] | Operating segment [Member]    
Business Segments [Line items]    
Revenue 487,994 416,063
Specialty Contractors [Member]    
Business Segments [Line items]    
Revenue 281,773 292,961
Income from construction operations 9,413 10,524
Specialty Contractors [Member] | Elimination Of Intersegment Revenues [Member]    
Business Segments [Line items]    
Revenue   (56)
Specialty Contractors [Member] | Operating segment [Member]    
Business Segments [Line items]    
Revenue 281,773 293,017
Corporate [Member]    
Business Segments [Line items]    
Income from construction operations $ (15,406) $ (18,754)

v3.4.0.3
Business Segments (Reconciliation of Segment Results to Consolidated Income Before Income Taxes) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income from construction operations $ 40,122 $ 20,084
Other income (expense), net 682 (754)
Interest expense (14,080) (11,125)
INCOME BEFORE INCOME TAXES 26,724 8,205
Tutor Perini Corporation [Member]    
Income from construction operations 778 1,424
Other income (expense), net (621) (2,068)
Interest expense (13,484) (10,264)
INCOME BEFORE INCOME TAXES $ 9,752 $ 1,032

v3.4.0.3
Business Segments (Schedule of Assets by Segment) (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Reportable segment information    
Total Assets $ 4,131,482 $ 4,036,677
Civil [Member]    
Reportable segment information    
Total Assets 1,947,787 1,964,038
Building [Member]    
Reportable segment information    
Total Assets 902,669 795,851
Specialty Contractors [Member]    
Reportable segment information    
Total Assets 843,379 860,285
Corporate [Member]    
Reportable segment information    
Total Assets $ 437,647 $ 416,503

v3.4.0.3
Employee Pension Plans (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Summary of net periodic benefit cost    
Interest cost $ 1,053 $ 1,011
Expected return on plan assets (1,203) (1,256)
Amortization of net loss 427 1,460
Other 150  
Net periodic benefit cost 427 1,215
Company contribution 300 $ 900
Expected contributions remainder of current fiscal year $ 1,500  

v3.4.0.3
Related Party Transactions (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Chairman and Chief Executive Officer [Member]      
Related Party Transaction, Due from (to) Related Party [Abstract]      
Lease expense $ 0.7 $ 0.7  
Expenses incurred with related party $ 0.8 0.8  
O&G [Member]      
Related Party Transaction, Due from (to) Related Party [Abstract]      
Number of Company's shares of common stock held by related party joint venture partner (in shares) 500,000    
Expenses incurred with related party $ 1.1 2.0  
Ownership percentage in joint venture 30.00%    
Alliant Insurance Services, Inc. [Member]      
Related Party Transaction, Due from (to) Related Party [Abstract]      
Insurance expense $ 2.0 $ 0.8  
Owed to related party $ 1.9   $ 7.5

v3.4.0.3
Separate Financial Information of Subsidiary Guarantors of Indebtedness, Condensed Consolidating Statement of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS    
REVENUE $ 1,085,369 $ 1,066,465
COST OF OPERATIONS (980,277) (975,706)
GROSS PROFIT 105,092 90,759
General and administrative expenses (64,970) (70,675)
INCOME FROM CONSTRUCTION OPERATIONS 40,122 20,084
Other (Expense) Income, net 682 (754)
Interest Expense (14,080) (11,125)
INCOME BEFORE INCOME TAXES 26,724 8,205
Benefit (Provision) for Income Taxes (11,324) (3,079)
NET INCOME 15,400 5,126
Other Comprehensive Income:    
Defined benefit pension plan adjustments 247  
Foreign currency translation adjustment 930 (588)
Change in fair value of investments 8 (10)
Change in fair value of interest rate swap (35) 45
Total other comprehensive (loss) income, net of tax 1,150 (553)
TOTAL COMPREHENSIVE INCOME 16,550 4,573
Eliminations [Member]    
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS    
REVENUE (84,821) (59,221)
COST OF OPERATIONS 84,821 59,221
Equity in Earnings of Subsidiaries (23,079) (11,940)
INCOME BEFORE INCOME TAXES (23,079) (11,940)
NET INCOME (23,079) (11,940)
Other Comprehensive Income:    
Other Comprehensive Income of Subsidiaries (938) 598
Total other comprehensive (loss) income, net of tax (938) 598
TOTAL COMPREHENSIVE INCOME (24,017) (11,342)
Tutor Perini Corporation [Member]    
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS    
REVENUE 176,725 236,292
COST OF OPERATIONS (154,289) (209,833)
GROSS PROFIT 22,436 26,459
General and administrative expenses (21,658) (25,035)
INCOME FROM CONSTRUCTION OPERATIONS 778 1,424
Equity in Earnings of Subsidiaries 23,079 11,940
Other (Expense) Income, net (621) (2,068)
Interest Expense (13,484) (10,264)
INCOME BEFORE INCOME TAXES 9,752 1,032
Benefit (Provision) for Income Taxes 5,648 4,094
NET INCOME 15,400 5,126
Other Comprehensive Income:    
Other Comprehensive Income of Subsidiaries 938 (598)
Defined benefit pension plan adjustments 247  
Change in fair value of interest rate swap (35) 45
Total other comprehensive (loss) income, net of tax 1,150 (553)
TOTAL COMPREHENSIVE INCOME 16,550 4,573
Guarantor Subsidiaries [Member]    
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS    
REVENUE 986,361 885,103
COST OF OPERATIONS (910,809) (825,094)
GROSS PROFIT 75,552 60,009
General and administrative expenses (42,837) (45,166)
INCOME FROM CONSTRUCTION OPERATIONS 32,715 14,843
Other (Expense) Income, net 1,060 1,196
Interest Expense (596) (861)
INCOME BEFORE INCOME TAXES 33,179 15,178
Benefit (Provision) for Income Taxes (14,060) (5,696)
NET INCOME 19,119 9,482
Other Comprehensive Income:    
Foreign currency translation adjustment 930 (588)
Change in fair value of investments 8 (10)
Total other comprehensive (loss) income, net of tax 938 (598)
TOTAL COMPREHENSIVE INCOME 20,057 8,884
Non-Guarantor Subsidiaries [Member]    
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS    
REVENUE 7,104 4,291
GROSS PROFIT 7,104 4,291
General and administrative expenses (475) (474)
INCOME FROM CONSTRUCTION OPERATIONS 6,629 3,817
Other (Expense) Income, net 243 118
INCOME BEFORE INCOME TAXES 6,872 3,935
Benefit (Provision) for Income Taxes (2,912) (1,477)
NET INCOME 3,960 2,458
Other Comprehensive Income:    
TOTAL COMPREHENSIVE INCOME $ 3,960 $ 2,458

v3.4.0.3
Separate Financial Information of Subsidiary Guarantors of Indebtedness, Condensed Consolidating Balance Sheet (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
CONDENSED CONSOLIDATING BALANCE SHEET        
Ownership interest in guarantors 100.00%      
ASSETS        
Cash and Cash Equivalents $ 90,582 $ 75,452 $ 145,958 $ 135,583
Restricted Cash 49,158 45,853    
Accounts Receivable 1,615,661 1,473,615    
Costs and Estimated Earnings in Excess of Billings 858,356 905,175    
Deferred Income Taxes 26,550 26,306    
Other Current Assets 91,990 108,844    
Total current assets 2,732,297 2,635,245    
Property and Equipment, net 519,890 523,525    
Other Assets:        
GOODWILL 585,006 585,006    
Intangible Assets, net 95,654 96,540    
OTHER ASSETS 198,635 196,361    
TOTAL ASSETS 4,131,482 4,036,677    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current Maturities of Long-term Debt 99,970 88,917    
Accounts Payable 1,005,906 937,464    
Billings in Excess of Costs and Estimated Earnings 285,582 288,311    
Accrued Expenses and Other Current Liabilities 160,964 159,016    
Total current liabilities 1,552,422 1,473,708    
Long-term Debt, less current maturities 725,763 728,767    
Deferred Income Taxes 274,232 273,310    
Other Long-term Liabilities $ 138,734 $ 140,665    
Contingencies and Commitments    
Stockholders' Equity $ 1,440,331 $ 1,420,227    
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY 4,131,482 4,036,677    
Eliminations [Member]        
ASSETS        
Accounts Receivable (168,519) (146,745)    
Costs and Estimated Earnings in Excess of Billings (74,073) (77,583)    
Other Current Assets 1,930 (11,419)    
Total current assets (240,662) (235,747)    
Intercompany Notes and Receivables (270,676) (148,637)    
Other Assets:        
Investment in Subsidiaries (2,122,342) (1,962,983)    
OTHER ASSETS (5,790) (5,723)    
TOTAL ASSETS (2,639,470) (2,353,090)    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current Maturities of Long-term Debt (60,000) (60,000)    
Accounts Payable (181,406) (167,705)    
Billings in Excess of Costs and Estimated Earnings (2,081) (5,711)    
Accrued Expenses and Other Current Liabilities 2,825 (2,331)    
Total current liabilities (240,662) (235,747)    
Long-term Debt, less current maturities (5,790) (5,723)    
Intercompany Notes and Advances Payable $ (270,676) $ (148,637)    
Contingencies and Commitments    
Stockholders' Equity $ (2,122,342) $ (1,962,983)    
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY (2,639,470) (2,353,090)    
Tutor Perini Corporation [Member]        
ASSETS        
Cash and Cash Equivalents 49,726 47,196 71,938 75,087
Restricted Cash 3,260 3,369    
Accounts Receivable 393,473 358,437    
Costs and Estimated Earnings in Excess of Billings 115,635 114,580    
Deferred Income Taxes 16,566 2,255    
Other Current Assets 39,685 60,119    
Total current assets 618,345 585,956    
Property and Equipment, net 102,371 105,306    
Other Assets:        
Investment in Subsidiaries 2,122,342 1,962,983    
OTHER ASSETS 92,320 58,722    
TOTAL ASSETS 2,935,378 2,712,967    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current Maturities of Long-term Debt 125,255 107,283    
Accounts Payable 210,902 211,679    
Billings in Excess of Costs and Estimated Earnings 88,888 89,303    
Accrued Expenses and Other Current Liabilities 36,144 6,145    
Total current liabilities 461,189 414,410    
Long-term Debt, less current maturities 655,029 653,669    
Deferred Income Taxes 40,066      
Other Long-term Liabilities 104,897 106,588    
Intercompany Notes and Advances Payable $ 233,866 $ 118,073    
Contingencies and Commitments    
Stockholders' Equity $ 1,440,331 $ 1,420,227    
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY 2,935,378 2,712,967    
Guarantor Subsidiaries [Member]        
ASSETS        
Cash and Cash Equivalents 40,151 26,892 49,241 36,764
Restricted Cash 3,686 3,283    
Accounts Receivable 1,300,463 1,179,919    
Costs and Estimated Earnings in Excess of Billings 816,642 868,026    
Deferred Income Taxes 9,984 21,356    
Other Current Assets 41,897 48,482    
Total current assets 2,212,823 2,147,958    
Property and Equipment, net 413,513 414,143    
Intercompany Notes and Receivables 270,676 148,637    
Other Assets:        
GOODWILL 585,006 585,006    
Intangible Assets, net 95,654 96,540    
OTHER ASSETS 86,370 128,094    
TOTAL ASSETS 3,664,042 3,520,378    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current Maturities of Long-term Debt 34,715 41,634    
Accounts Payable 974,776 890,268    
Billings in Excess of Costs and Estimated Earnings 198,182 203,003    
Accrued Expenses and Other Current Liabilities 79,481 115,392    
Total current liabilities 1,287,154 1,250,297    
Long-term Debt, less current maturities 76,524 80,821    
Deferred Income Taxes 211,828 273,310    
Other Long-term Liabilities $ 2,323 $ 3,278    
Contingencies and Commitments    
Stockholders' Equity $ 2,086,213 $ 1,912,672    
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY 3,664,042 3,520,378    
Non-Guarantor Subsidiaries [Member]        
ASSETS        
Cash and Cash Equivalents 705 1,364 $ 24,779 $ 23,732
Restricted Cash 42,212 39,201    
Accounts Receivable 90,244 82,004    
Costs and Estimated Earnings in Excess of Billings 152 152    
Deferred Income Taxes   2,695    
Other Current Assets 8,478 11,662    
Total current assets 141,791 137,078    
Property and Equipment, net 4,006 4,076    
Other Assets:        
OTHER ASSETS 25,735 15,268    
TOTAL ASSETS 171,532 156,422    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Accounts Payable 1,634 3,222    
Billings in Excess of Costs and Estimated Earnings 593 1,716    
Accrued Expenses and Other Current Liabilities 42,514 39,810    
Total current liabilities 44,741 44,748    
Deferred Income Taxes 22,338      
Other Long-term Liabilities 31,514 30,799    
Intercompany Notes and Advances Payable $ 36,810 $ 30,564    
Contingencies and Commitments    
Stockholders' Equity $ 36,129 $ 50,311    
TOTAL LIABILITIES AND STOCKHOLERS' EQUITY $ 171,532 $ 156,422    

v3.4.0.3
Separate Financial Information of Subsidiary Guarantors of Indebtedness, Condensed Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash Flows from Operating Activities:    
Net income (loss) $ 15,400 $ 5,126
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 14,496 10,594
Stock-based compensation expense 3,647 9,159
Deferred income taxes (155)  
(Gain) loss on sale of property and equipment 285 (276)
Other long-term liabilities (4,061) 2,381
Other non-cash items 1,399 (2,227)
Changes in other components of working capital (15,067) (27,081)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 15,944 (2,324)
Cash Flows from Investing Activities:    
Acquisition of property and equipment excluding financed purchases (4,812) (5,691)
Proceeds from sale of property and equipment 939 798
Change in restricted cash (3,305) 277
NET CASH USED IN INVESTING ACTIVITIES (7,178) (4,616)
Cash Flows from Financing Activities:    
Proceeds from debt 299,785 280,200
Repayment of debt (287,484) (262,112)
Issuance of common stock and effect of cashless exercise   (773)
Debt issuance costs (5,937)  
NET CASH PROVIDED BY FINANCING ACTIVITIES 6,364 17,315
Net increase in cash and cash equivalents 15,130 10,375
Cash and cash equivalents at beginning of year 75,452 135,583
Cash and cash equivalents at end of period 90,582 145,958
Eliminations [Member]    
Cash Flows from Operating Activities:    
Net income (loss) (23,079) (11,940)
Adjustments to reconcile net income to net cash from operating activities:    
Equity in earnings of subsidiaries 23,079 11,940
Cash Flows from Investing Activities:    
Increase (decrease) in intercompany advances (24,653) 57,146
NET CASH USED IN INVESTING ACTIVITIES (24,653) 57,146
Cash Flows from Financing Activities:    
Increase (decrease) in intercompany advances 24,653 (57,146)
NET CASH PROVIDED BY FINANCING ACTIVITIES 24,653 (57,146)
Tutor Perini Corporation [Member]    
Cash Flows from Operating Activities:    
Net income (loss) 15,400 5,126
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 5,626 5,223
Equity in earnings of subsidiaries (23,079) (11,940)
Stock-based compensation expense 3,647 9,159
Deferred income taxes (153) (24,392)
(Gain) loss on sale of investments   (17)
(Gain) loss on sale of property and equipment 202 17
Other long-term liabilities (3,822) (1,288)
Other non-cash items (90) 1,176
Changes in other components of working capital 12,879 (73,266)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 10,610 (90,202)
Cash Flows from Investing Activities:    
Acquisition of property and equipment excluding financed purchases (1,282) (729)
Proceeds from sale of property and equipment 75  
Change in restricted cash 109  
NET CASH USED IN INVESTING ACTIVITIES (1,098) (729)
Cash Flows from Financing Activities:    
Proceeds from debt 299,785 280,200
Repayment of debt (276,202) (252,748)
Issuance of common stock and effect of cashless exercise   (773)
Debt issuance costs (5,937)  
Increase (decrease) in intercompany advances (24,628) 61,103
NET CASH PROVIDED BY FINANCING ACTIVITIES (6,982) 87,782
Net increase in cash and cash equivalents 2,530 (3,149)
Cash and cash equivalents at beginning of year 47,196 75,087
Cash and cash equivalents at end of period 49,726 71,938
Guarantor Subsidiaries [Member]    
Cash Flows from Operating Activities:    
Net income (loss) 19,119 9,482
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 8,800 5,303
Deferred income taxes (2) 24,392
(Gain) loss on sale of investments   17
(Gain) loss on sale of property and equipment 83 (293)
Other long-term liabilities (954) 3,669
Other non-cash items 1,489 (3,403)
Changes in other components of working capital (25,578) 43,701
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,957 82,868
Cash Flows from Investing Activities:    
Acquisition of property and equipment excluding financed purchases (3,530) (4,962)
Proceeds from sale of property and equipment 864 798
Increase (decrease) in intercompany advances 24,653 (57,146)
Change in restricted cash (403) 283
NET CASH USED IN INVESTING ACTIVITIES 21,584 (61,027)
Cash Flows from Financing Activities:    
Repayment of debt (11,282) (9,364)
NET CASH PROVIDED BY FINANCING ACTIVITIES (11,282) (9,364)
Net increase in cash and cash equivalents 13,259 12,477
Cash and cash equivalents at beginning of year 26,892 36,764
Cash and cash equivalents at end of period 40,151 49,241
Non-Guarantor Subsidiaries [Member]    
Cash Flows from Operating Activities:    
Net income (loss) 3,960 2,458
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 70 68
Other long-term liabilities 715  
Changes in other components of working capital (2,368) 2,484
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,377 5,010
Cash Flows from Investing Activities:    
Change in restricted cash (3,011) (6)
NET CASH USED IN INVESTING ACTIVITIES (3,011) (6)
Cash Flows from Financing Activities:    
Increase (decrease) in intercompany advances (25) (3,957)
NET CASH PROVIDED BY FINANCING ACTIVITIES (25) (3,957)
Net increase in cash and cash equivalents (659) 1,047
Cash and cash equivalents at beginning of year 1,364 23,732
Cash and cash equivalents at end of period $ 705 $ 24,779

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IDEA: XBRL DOCUMENT
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