Company Quick10K Filing
Quick10K
Tutor Perini
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$17.71 50 $886
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-08-07 Earnings, Exhibits
8-K 2018-05-25 Officers, Shareholder Vote, Exhibits
8-K 2018-01-05 Officers, Exhibits
UN Unilever
AXTA Axalta Coating Systems
HL Hecla Mining
MERC Mercer
NAK Northern Dynasty Minerals
USAP Universal Stainless & Alloy Products
THM International Tower Hill Mines
GMO General Moly
CGA China Green Agriculture
AMTX Aemetis
TPC 2018-09-30
Part I. – Financial Information
Item 1. – Financial Statements
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. – Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 tpc-20180930xex10_1.htm
EX-31.1 tpc-20180930xex31_1.htm
EX-31.2 tpc-20180930xex31_2.htm
EX-32.1 tpc-20180930xex32_1.htm
EX-32.2 tpc-20180930xex32_2.htm
EX-95 tpc-20180930xex95.htm

Tutor Perini Earnings 2018-09-30

TPC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 tpc-20180930x10q.htm 10-Q TPC Form 10-Q - Q3 2018





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 September 30, 2018



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 every Interactive Data File required to be submitted 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 such files). Yes   No 



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





 

 

Large accelerated filer 

 

Accelerated filer 



 

 

Non-Accelerated filer 

 

Smaller reporting company 



 

 

Emerging growth company 

 

 



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act 



Indicate by check mark whether the registrant is a shell company (as defined 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 November 2, 2018 was 50,025,996.





 



 


 

TUTOR PERINI CORPORATION AND SUBSIDIARIES



TABLE OF CONTENTS





 

 

 



 

 

Page Numbers

Part I.

Financial Information:

 



Item 1.

Financial Statements:

 



 

Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2018 and 2017 (Unaudited)



 

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017 (Unaudited)



 

Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 (Unaudited)



 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 (Unaudited)



 

Notes to Condensed Consolidated Financial Statements (Unaudited)

7-29 



Item 2.

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

30-36 



Item 3.

Quantitative and Qualitative Disclosures About Market Risk

36 



Item 4.

Controls and Procedures

36 

Part II.

Other Information:

 



Item 1.

Legal Proceedings

36 



Item 1A.

Risk Factors

36 



Item 4.

Mine Safety Disclosures

36 



Item 5.

Other Information

37 



Item 6.

Exhibits

37 



Signature

 

38 

 

2


 

PART I. – FINANCIAL INFORMATION



Item 1. – Financial Statements



TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



UNAUDITED











 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Nine Months Ended



September 30,

 

September 30,

(in thousands, except per common share amounts)

2018

 

2017

 

2018

 

2017

REVENUE

$

1,123,137 

 

$

1,199,505 

 

$

3,271,378 

 

$

3,564,140 

COST OF OPERATIONS

 

(1,012,013)

 

 

(1,081,254)

 

 

(2,974,546)

 

 

(3,240,332)

GROSS PROFIT

 

111,124 

 

 

118,251 

 

 

296,832 

 

 

323,808 

General and administrative expenses

 

(63,818)

 

 

(69,179)

 

 

(195,636)

 

 

(203,674)

INCOME FROM CONSTRUCTION OPERATIONS

 

47,306 

 

 

49,072 

 

 

101,196 

 

 

120,134 

Other income, net

 

1,909 

 

 

967 

 

 

3,739 

 

 

42,373 

Interest expense

 

(16,411)

 

 

(15,643)

 

 

(47,474)

 

 

(53,726)

INCOME BEFORE INCOME TAXES

 

32,804 

 

 

34,396 

 

 

57,461 

 

 

108,781 

Provision for income taxes

 

(7,368)

 

 

(9,096)

 

 

(15,071)

 

 

(37,084)

NET INCOME

 

25,436 

 

 

25,300 

 

 

42,390 

 

 

71,697 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

4,164 

 

 

1,716 

 

 

8,359 

 

 

4,253 

NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

$

21,272 

 

$

23,584 

 

$

34,031 

 

$

67,444 

BASIC EARNINGS PER COMMON SHARE

$

0.43 

 

$

0.47 

 

$

0.68 

 

$

1.36 

DILUTED EARNINGS PER COMMON SHARE

$

0.42 

 

$

0.47 

 

$

0.68 

 

$

1.33 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

BASIC

 

50,018 

 

 

49,775 

 

 

49,927 

 

 

49,602 

DILUTED

 

50,375 

 

 

50,587 

 

 

50,210 

 

 

50,768 





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

 

3


 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



UNAUDITED











 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Nine Months Ended



September 30,

 

September 30,

(in thousands)

2018

 

2017

 

2018

 

2017

NET INCOME

$

25,436 

 

$

25,300 

 

$

42,390 

 

$

71,697 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plan adjustments

 

365 

 

 

269 

 

 

1,100 

 

 

806 

Foreign currency translation adjustments

 

376 

 

 

726 

 

 

(1,432)

 

 

1,321 

Unrealized gain (loss) in fair value of investments

 

(129)

 

 

12 

 

 

(1,143)

 

 

(12)

TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

 

612 

 

 

1,007 

 

 

(1,475)

 

 

2,115 



 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

26,048 

 

 

26,307 

 

 

40,915 

 

 

73,812 

LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

4,164 

 

 

1,716 

 

 

8,359 

 

 

4,253 

COMPREHENSIVE INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

$

21,884 

 

$

24,591 

 

$

32,556 

 

$

69,559 





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

 

 



4


 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



UNAUDITED









 

 

 

 

 



 

 

 

 

 



As of September 30,

 

As of December 31,

(in thousands, except share and per share amounts)

2018

 

2017

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents ($32,040 and $53,067 related to variable interest entities (VIEs))

$

118,258 

 

$

192,868 

Restricted cash

 

3,436 

 

 

4,780 

Restricted investments

 

53,116 

 

 

53,014 

Accounts receivable ($75,999 and $30,003 related to VIEs)

 

1,325,465 

 

 

1,265,717 

Retainage receivable ($31,694 and $12,410 related to VIEs)

 

492,937 

 

 

535,939 

Costs and estimated earnings in excess of billings

 

1,085,651 

 

 

932,758 

Other current assets ($33,033 and $0 related to VIEs)

 

130,023 

 

 

89,316 

Total current assets

 

3,208,886 

 

 

3,074,392 

PROPERTY AND EQUIPMENT (P&E), net of accumulated depreciation
of $345,405 and $359,188 (net P&E of $47,559 and $11,641 related to VIEs)

 

494,498 

 

 

467,499 

GOODWILL

 

585,006 

 

 

585,006 

INTANGIBLE ASSETS, NET

 

86,797 

 

 

89,454 

OTHER ASSETS

 

49,981 

 

 

47,772 

TOTAL ASSETS

$

4,425,168 

 

$

4,264,123 



 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current maturities of long-term debt

$

20,601 

 

$

30,748 

Accounts payable ($10,793 and $19,243 related to VIEs)

 

611,100 

 

 

699,971 

Retainage payable

 

213,430 

 

 

261,820 

Billings in excess of cost and estimated earnings ($261,187 and $120,952 related to VIEs)

 

648,287 

 

 

456,869 

Accrued expenses and other current liabilities ($46,164 and $0 related to VIEs)

 

162,102 

 

 

132,438 

Total current liabilities

 

1,655,520 

 

 

1,581,846 

LONG-TERM DEBT, less current maturities, net of unamortized
discounts and debt issuance costs totaling $37,749 and $45,631

 

780,723 

 

 

705,528 

DEFERRED INCOME TAXES

 

106,636 

 

 

108,504 

OTHER LONG-TERM LIABILITIES

 

148,917 

 

 

163,465 

TOTAL LIABILITIES

 

2,691,796 

 

 

2,559,343 



 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (NOTE 9)

 

 

 

 

 



 

 

 

 

 

EQUITY

 

 

 

 

 

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 50,025,996 and 49,781,010 shares

 

50,026 

 

 

49,781 

Additional paid-in capital

 

1,098,639 

 

 

1,084,205 

Retained earnings

 

652,276 

 

 

622,007 

Accumulated other comprehensive loss

 

(44,193)

 

 

(42,718)

Total stockholders' equity

 

1,756,748 

 

 

1,713,275 

Noncontrolling interests

 

(23,376)

 

 

(8,495)

TOTAL EQUITY

 

1,733,372 

 

 

1,704,780 



 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

$

4,425,168 

 

$

4,264,123 



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

 

5


 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



UNAUDITED











 

 

 

 

 



 

 

 

 

 



Nine Months Ended September 30,

(in thousands)

2018

 

2017

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

$

42,390 

 

$

71,697 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

Depreciation

 

30,924 

 

 

37,806 

Amortization of intangible assets

 

2,657 

 

 

2,657 

Share-based compensation expense

 

17,779 

 

 

16,057 

Change in debt discounts and deferred debt issuance costs

 

8,962 

 

 

14,725 

Deferred income taxes

 

233 

 

 

642 

Loss (gain) on sale of property and equipment

 

823 

 

 

(376)

Changes in other components of working capital 

 

(136,113)

 

 

(143,213)

Other long-term liabilities

 

(2,606)

 

 

(2,876)

Other, net

 

190 

 

 

4,785 

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

(34,761)

 

 

1,904 



 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Acquisition of property and equipment

 

(64,411)

 

 

(9,712)

Proceeds from sale of property and equipment

 

5,462 

 

 

1,440 

Investment in securities

 

(13,841)

 

 

(48,657)

Proceeds from maturities and sales of investments in securities

 

14,302 

 

 

 —

NET CASH USED IN INVESTING ACTIVITIES

 

(58,488)

 

 

(56,929)



 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Proceeds from debt

 

1,502,177 

 

 

1,991,457 

Repayment of debt

 

(1,444,760)

 

 

(1,866,072)

Business acquisition related payment

 

(15,951)

 

 

 —

Issuance of common stock and effect of cashless exercise

 

(2,671)

 

 

(11,147)

Distributions paid to noncontrolling interests

 

(22,500)

 

 

(2,500)

Contributions from noncontrolling interests

 

1,000 

 

 

1,250 

Debt issuance and extinguishment costs

 

 —

 

 

(15,268)

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

17,295 

 

 

97,720 



 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(75,954)

 

 

42,695 

Cash, cash equivalents and restricted cash at beginning of period

 

197,648 

 

 

196,607 

Cash, cash equivalents and restricted cash at end of period

$

121,694 

 

$

239,302 



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 generally accepted accounting principles in the United States (“GAAP”). Therefore, they should be read in conjunction with the audited consolidated financial statements and the related notes included in Tutor Perini Corporation’s (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the three and nine months ended September 30, 2018 may not be indicative of the results that will be achieved for the full year ending December 31, 2018.



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 September 30, 2018 and its consolidated statements of income and cash flows for the interim periods presented. Intercompany transactions of consolidated subsidiaries have been eliminated.

 

(2)     Recent Accounting Pronouncements



New accounting pronouncements implemented by the Company during the nine months ended September 30, 2018 are discussed below.



In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequent ASUs (collectively, “ASC 606”). ASC 606 amends the existing accounting standards for revenue recognition and establishes principles for recognizing revenue upon the transfer of promised goods or services to customers based on the expected consideration to be received in exchange for those goods or services. The Company adopted this ASU effective January 1, 2018 using the modified retrospective transition method. The Company recognized the cumulative effect of initially applying the new revenue standard to all contracts not yet completed or substantially completed as of January 1, 2018 as an immaterial reduction to beginning retained earnings. The impact of adoption on the Company’s opening balance sheet was primarily related to the deferral of costs incurred to fulfill certain contracts that were previously recorded in income in the period incurred, but under the new standard will be capitalized and amortized over the period of contract performance. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods; however, certain balances have been reclassified to conform to the current year presentation.



The effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASC 606 were as follows:







 

 

 

 

 

 

 

 



 

 

BALANCE SHEET

Balance as of

 

Adjustments due to

 

Balance as of

(in thousands)

December 31, 2017(a)

 

ASC 606

 

January 1, 2018

ASSETS

 

 

 

 

 

 

 

 

Accounts receivable(b)

$

1,801,656 

 

$

(535,939)

 

$

1,265,717 

Retainage receivable(b)

 

 —

 

 

535,939 

 

 

535,939 

Other current assets

 

89,316 

 

 

32,773 

 

 

122,089 



 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable(b)

$

961,791 

 

$

(261,820)

 

$

699,971 

Retainage payable(b)

 

 —

 

 

261,820 

 

 

261,820 

Billings in excess of costs and estimated earnings

 

456,869 

 

 

39,785 

 

 

496,654 

Deferred income taxes

 

108,504 

 

 

(1,537)

 

 

106,967 



 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Retained earnings

$

622,007 

 

$

(3,762)

 

$

618,245 

Noncontrolling interests

 

(8,495)

 

 

(1,714)

 

 

(10,209)

(a)

Balances as previously reported on the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.  

(b)

Prior to the adoption of ASC 606, retainage receivable and payable balances were included within accounts receivable and accounts payable, respectively.



7


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

In accordance with the new revenue standard requirements, the disclosure of the impacts of adoption on the Condensed Consolidated Statement of Income and Condensed Consolidated Balance Sheet were as follows:







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30, 2018



 

 

 

Balance Without

 

 

STATEMENT OF INCOME

 

 

 

Adoption of

 

Effect of

(in thousands)

 

As Reported

 

ASC 606

 

Change

REVENUE

 

$

1,123,137 

 

$

1,122,571 

 

$

566 

COST OF OPERATIONS

 

 

(1,012,013)

 

 

(1,011,808)

 

 

(205)

GROSS PROFIT

 

 

111,124 

 

 

110,763 

 

 

361 

General and administrative expenses

 

 

(63,818)

 

 

(63,818)

 

 

 —

INCOME FROM CONSTRUCTION OPERATIONS

 

 

47,306 

 

 

46,945 

 

 

361 

Other income, net

 

 

1,909 

 

 

1,909 

 

 

 —

Interest expense

 

 

(16,411)

 

 

(16,411)

 

 

 —

INCOME BEFORE INCOME TAXES

 

 

32,804 

 

 

32,443 

 

 

361 

Provision for income taxes

 

 

(7,368)

 

 

(7,303)

 

 

(65)

NET INCOME

 

 

25,436 

 

 

25,140 

 

 

296 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

4,164 

 

 

4,024 

 

 

140 

NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

 

$

21,272 

 

$

21,116 

 

$

156 









 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30, 2018



 

 

 

Balance Without

 

 

STATEMENT OF INCOME

 

 

 

Adoption of

 

Effect of

(in thousands)

 

As Reported

 

ASC 606

 

Change

REVENUE

 

$

3,271,378 

 

$

3,279,764 

 

$

(8,386)

COST OF OPERATIONS

 

 

(2,974,546)

 

 

(2,981,921)

 

 

7,375 

GROSS PROFIT

 

 

296,832 

 

 

297,843 

 

 

(1,011)

General and administrative expenses

 

 

(195,636)

 

 

(195,636)

 

 

 —

INCOME FROM CONSTRUCTION OPERATIONS

 

 

101,196 

 

 

102,207 

 

 

(1,011)

Other income, net

 

 

3,739 

 

 

3,739 

 

 

 —

Interest expense

 

 

(47,474)

 

 

(47,474)

 

 

 —

INCOME BEFORE INCOME TAXES

 

 

57,461 

 

 

58,472 

 

 

(1,011)

Provision for income taxes

 

 

(15,071)

 

 

(15,358)

 

 

287 

NET INCOME

 

 

42,390 

 

 

43,114 

 

 

(724)

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

8,359 

 

 

8,379 

 

 

(20)

NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

 

$

34,031 

 

$

34,735 

 

$

(704)





8


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

As of September 30, 2018



 

 

 

Balance Without

 

 

BALANCE SHEET

 

 

 

Adoption of

 

Effect of

(in thousands)

 

As Reported

 

ASC 606

 

Change

ASSETS

 

 

 

 

 

 

 

 

 

Accounts receivable(a)

 

$

1,325,465 

 

$

1,816,399 

 

$

(490,934)

Retainage receivable(a)

 

 

492,937 

 

 

 —

 

 

492,937 

Costs and estimated earnings in excess of billings

 

 

1,085,651 

 

 

1,089,452 

 

 

(3,801)

Other current assets

 

 

130,023 

 

 

89,875 

 

 

40,148 



 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Accounts payable(a)

 

$

611,100 

 

$

824,530 

 

$

(213,430)

Retainage payable(a)

 

 

213,430 

 

 

 —

 

 

213,430 

Billings in excess of costs and estimated earnings

 

 

648,287 

 

 

601,913 

 

 

46,374 

Accrued expenses and other current liabilities

 

 

162,102 

 

 

162,727 

 

 

(625)

Deferred income taxes

 

 

106,636 

 

 

107,835 

 

 

(1,199)



 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Retained earnings

 

$

652,276 

 

$

656,742 

 

$

(4,466)

Noncontrolling interests

 

 

(23,376)

 

 

(21,643)

 

 

(1,733)

(a)

Prior to the adoption of ASC 606, retainage receivable and payable balances were included within accounts receivable and payable, respectively.



The adoption of ASC 606 had no impact on the cash flows used in operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.



In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be included with cash and cash equivalent balances in the statement of cash flows. The Company retrospectively adopted this ASU effective January 1, 2018. The adoption of this ASU resulted in an increase of net cash used in investing activities of $33.1 million for the nine months ended September 30, 2017.



In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies the scope of modification accounting under Topic 718 with respect to changes to the terms or conditions of a share-based payments award. Under this new guidance, modification accounting would not apply if a change to an award does not affect the total current fair value, vesting conditions or the classification of the award. The Company adopted this ASU effective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.



In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU provides guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act of 2017 (the “Tax Act”) in the period of enactment. Staff Accounting Bulletin (“SAB”) No. 118 provides for a provisional one year measurement period to finalize the accounting for certain income tax effects related to the Tax Act and requires disclosure of the reasons for incomplete accounting. The Company applied the guidance provided in SAB No. 118 in 2017 and adopted this ASU effective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.



New accounting pronouncements requiring implementation in future periods are discussed below.



In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), as amended and supplemented by subsequent ASUs (collectively, “ASU 2016-02”). ASU 2016-02 amends the existing guidance in Accounting Standards Codification (“ASC”) 840, Leases.  This ASU requires, among other things, the recognition of lease right-of-use assets and lease liabilities by lessees for those leases currently classified as operating leases. ASU 2016-02 allows companies to adopt the new standard by applying either a modified retrospective method to the beginning of the earliest period presented in the financial statements or an optional transition method to initially apply the standard on January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the standard using the optional transition method. The

9


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

Company has selected its leasing software solution and is in the process of identifying and implementing other changes to its business processes, systems and controls to support adoption of the new standard in 2019. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the adoption to result in a material increase to its assets and liabilities. The Company does not expect this ASU to have a material impact on its consolidated statements of income or cash flows.



In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This ASU simplifies the calculation of goodwill impairment by eliminating Step 2 of the impairment test prescribed by ASC 350, Intangibles—Goodwill and Other. Step 2 requires companies to calculate the implied fair value of their goodwill by estimating the fair value of their assets, other than goodwill, and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. The calculated net fair value of the assets would then be compared to the fair value of the reporting unit to determine the implied fair value of goodwill, and to the extent that the carrying value of goodwill was less than the implied fair value, a loss would be recognized. Under ASU 2017-04, however, goodwill is impaired when the calculated fair value of a reporting unit is less than its carrying value, and the impairment charge will equal that difference (i.e., impairment will be calculated at the reporting unit level and there will be no need to estimate the fair value of individual assets and liabilities). This guidance will be effective for any goodwill impairment tests performed in fiscal years beginning after December 15, 2019; however, early adoption is permitted for tests performed on testing dates after January 1, 2017. The Company expects to early adopt this ASU in the fourth quarter of 2018 and does not expect its adoption to have a material impact on its consolidated financial statements.



In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from the Accumulated Other Comprehensive Income. This ASU gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income as a result of the Tax Act. Entities can apply the provisions of this ASU either in the period of adoption or retrospectively. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements.

 

(3)     Revenue



Revenue Recognition



The Company derives revenue from long-term construction contracts with public and private customers primarily in the United States and its territories and in certain other international locations. The Company’s construction contracts are generally each accounted for as a single unit of account (i.e., as a single performance obligation).



Throughout the execution of construction contracts, the Company and its affiliated entities recognize revenue with the continuous transfer of control to the customer. The customer typically controls the asset under construction by either contractual termination clauses or by the Company’s rights to payment for work already performed on the asset under construction that does not have an alternative use for the Company.



Because control transfers over time, revenue is recognized to the extent of progress towards completion of the performance obligations. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services provided. The Company generally uses the cost-to-cost method for its contracts, which measures progress towards completion for each performance obligation based on the ratio of costs incurred to date to the total estimated costs at completion for the respective performance obligation. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Revenue, including estimated fees or profits, is recorded proportionately as costs are incurred. Cost of operations includes labor, materials, subcontractor costs, and other direct and indirect costs, including depreciation and amortization.



Due to the nature of the work required to be performed on many of the Company’s performance obligations, estimating total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Assumptions as to the occurrence of future events and the likelihood and amount of variable consideration, including the impact of change orders, claims, contract disputes and the achievement of contractual performance criteria, and award or other incentive fees are made during the contract performance period. The Company estimates variable consideration at the most likely amount it expects to receive. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and

10


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

determination of whether to include estimated amounts in the transaction price are based largely on an assessment of anticipated performance and all information (historical, current and forecasted) that is reasonably available to management.



Disaggregation of Revenue



The following tables disaggregate revenue by end market, customer type and contract type, which the Company believes best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months

 

Nine Months



 

Ended September 30,

 

Ended September 30,

(in thousands)

 

2018

 

2018

Civil segment revenue by end market:

 

 

 

 

 

 

Mass transit

 

$

177,619 

 

$

485,841 

Bridges

 

 

128,240 

 

 

311,979 

Highways

 

 

46,553 

 

 

129,619 

Tunneling

 

 

33,377 

 

 

66,009 

Other

 

 

45,699 

 

 

103,627 

Total Civil segment revenue

 

$

431,488 

 

$

1,097,075 







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months

 

Nine Months



 

Ended September 30,

 

Ended September 30,

(in thousands)

 

2018

 

2018

Building segment revenue by end market:

 

 

 

 

 

 

Health care facilities

 

$

127,219 

 

$

320,416 

Commercial and industrial facilities

 

 

57,505 

 

 

290,571 

Hospitality and gaming

 

 

65,744 

 

 

226,999 

Municipal and government

 

 

67,003 

 

 

187,984 

Mixed use

 

 

40,758 

 

 

121,348 

Education facilities

 

 

43,405 

 

 

108,763 

Other

 

 

53,858 

 

 

136,631 

Total Building segment revenue

 

$

455,492 

 

$

1,392,712 







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months

 

Nine Months



 

Ended September 30,

 

Ended September 30,

(in thousands)

 

2018

 

2018

Specialty Contractors segment revenue by end market:

 

 

 

 

 

 

Mass transit

 

$

63,457 

 

$

216,808 

Mixed use

 

 

37,587 

 

 

137,420 

Commercial and industrial facilities

 

 

48,601 

 

 

136,892 

Education facilities

 

 

26,024 

 

 

77,626 

Transportation

 

 

17,150 

 

 

73,154 

Condominiums

 

 

18,254 

 

 

64,104 

Health care facilities

 

 

12,873 

 

 

43,861 

Other

 

 

12,211 

 

 

31,726 

Total Specialty Contractors segment revenue

 

$

236,157 

 

$

781,591 





11


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30, 2018



 

 

 

 

 

 

 

Specialty

 

 

 

(in thousands)

 

Civil

 

Building

 

Contractors

 

Total

Revenue by customer type:

 

 

 

 

 

 

 

 

 

 

 

 

State and local agencies

 

$

341,067 

 

$

177,377 

 

$

99,913 

 

$

618,357 

Federal agencies

 

 

26,944 

 

 

52,890 

 

 

12,058 

 

 

91,892 

Private owners

 

 

63,477 

 

 

225,225 

 

 

124,186 

 

 

412,888 

Total revenue

 

$

431,488 

 

$

455,492 

 

$

236,157 

 

$

1,123,137 









 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30, 2018



 

 

 

 

 

 

 

Specialty

 

 

 

(in thousands)

 

Civil

 

Building

 

Contractors

 

Total

Revenue by customer type:

 

 

 

 

 

 

 

 

 

 

 

 

State and local agencies

 

$

894,613 

 

$

452,918 

 

$

312,541 

 

$

1,660,072 

Federal agencies

 

 

67,571 

 

 

149,464 

 

 

45,770 

 

 

262,805 

Private owners

 

 

134,891 

 

 

790,330 

 

 

423,280 

 

 

1,348,501 

Total revenue

 

$

1,097,075 

 

$

1,392,712 

 

$

781,591 

 

$

3,271,378 



State and local agencies. The Company’s state and local government customers include state transportation departments, metropolitan authorities, cities, municipal agencies, school districts and public universities. Services provided to state and local customers are primarily pursuant to contracts awarded through competitive bidding processes. Construction services for state and local government customers have included mass-transit systems, bridges, highways, judicial and correctional facilities, schools and dormitories, health care facilities, convention centers, parking structures and other municipal buildings. The vast majority of the Company’s civil contracting and building construction services are provided in locations throughout the United States and its territories.



Federal agencies. The Company’s federal government customers include the U.S. State Department, the U.S. Navy, the U.S. Army Corps of Engineers, the U.S. Air Force and the National Park Service. Services provided to federal agencies are typically pursuant to competitively bid contracts for specific or multi-year assignments that involve new construction or infrastructure repairs or improvements. A portion of revenue from federal agencies is derived from projects in overseas locations.



Private owners. The Company’s private customers include real estate developers, health care companies, technology companies, hospitality and gaming resort owners, Native American sovereign nations, public corporations and private universities. Services are provided to private customers through negotiated contract arrangements, as well as through competitive bids.



Most federal, state and local government contracts contain provisions that permit the termination of contracts, in whole or in part, for the convenience of government customers, among other reasons.







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30, 2018



 

 

 

 

 

 

 

Specialty

 

 

 

(in thousands)

 

Civil

 

Building

 

Contractors

 

Total

Revenue by contract type:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed price

 

$

272,996 

 

$

91,972 

 

$

193,607 

 

$

558,575 

Guaranteed maximum price

 

 

3,025 

 

 

269,069 

 

 

18,720 

 

 

290,814 

Unit price

 

 

141,917 

 

 

9,938 

 

 

7,939 

 

 

159,794 

Cost plus fee and other

 

 

13,550 

 

 

84,513 

 

 

15,891 

 

 

113,954 

Total revenue

 

$

431,488 

 

$

455,492 

 

$

236,157 

 

$

1,123,137 



12


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30, 2018



 

 

 

 

 

 

 

Specialty

 

 

 

(in thousands)

 

Civil

 

Building

 

Contractors

 

Total

Revenue by contract type:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed price

 

$

716,826 

 

$

267,630 

 

$

675,526 

 

$

1,659,982 

Guaranteed maximum price

 

 

11,200 

 

 

801,537 

 

 

51,762 

 

 

864,499 

Unit price

 

 

332,118 

 

 

29,526 

 

 

21,829 

 

 

383,473 

Cost plus fee and other

 

 

36,931 

 

 

294,019 

 

 

32,474 

 

 

363,424 

Total revenue

 

$

1,097,075 

 

$

1,392,712 

 

$

781,591 

 

$

3,271,378 



Fixed price. Fixed price or lump sum contracts are most commonly used for projects in the Civil and Specialty Contractors segments and generally commit the Company to provide all of the resources required to complete a project for a fixed sum. Usually, fixed price contracts transfer more risk to the Company, but offer the opportunity for greater profits. Billings on fixed price contracts are typically based on estimated progress against predetermined contractual milestones.



Guaranteed maximum price (“GMP”). GMP contracts provide for a cost plus fee arrangement up to a maximum agreed upon price. These contracts place risks on the Company for amounts in excess of the GMP, but may permit an opportunity for greater profits than under cost plus fee contracts through sharing agreements with the owner on any cost savings that may be realized. Services provided by our Building segment to various private customers are often performed under GMP contracts. Billings on GMP contracts typically occur on a monthly basis and are based on actual costs incurred plus a negotiated margin.



Unit price. Unit price contracts are most prevalent for projects in the Civil and Specialty Contractors segments and generally commit the Company to provide an estimated or undetermined number of units or components that comprise a project at a fixed price per unit. This approach shifts the risk of estimating the quantity of units required to the project owner, but the risk of increased cost per unit is borne by the Company, unless otherwise allowed for in the contract. Billings on unit price contracts typically occur on a monthly basis and are based on actual quantity of work performed or completed during the billing period.



Cost plus fee. Cost plus fee contracts are used for many projects in the Building and Specialty Contractors segments. Cost plus fee contracts include cost plus fixed fee contracts and cost plus award fee contracts. Cost plus fixed fee contracts provide for reimbursement of approved project costs plus a fixed fee. Cost plus award fee contracts provide for reimbursement of the project costs plus a base fee, as well as an incentive fee based on cost and/or schedule performance. Cost plus fee contracts serve to minimize the Company’s financial risk, but may also limit profits. Billings on cost plus fee contracts typically occur on a monthly basis based on actual costs incurred plus a negotiated margin.



Changes in Contract Estimates that Impact Revenue



Changes to the total estimated contract revenue or cost, either due to unexpected events or revisions to management’s initial estimates, for a given project are recognized in the period in which they are determined. Net revenue recognized during the three and nine months ended September 30, 2018 related to performance obligations satisfied (or partially satisfied) in prior periods was immaterial.



Remaining Performance Obligations



Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and exclude unexercised contract options. As of September 30, 2018, the aggregate amounts of the transaction prices allocated to the remaining performance obligations of the Company’s construction contracts are $4.2 billion,  $2.1 billion and $1.7 billion for the Civil, Building and Specialty Contractors segments, respectively. The Company typically recognizes revenue on Civil segment projects over a period of three to five years, whereas for projects in the Building and Specialty Contractors segments, the Company typically recognizes revenue over a period of one to three years.

 

13


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

(4)     Contract Assets and Liabilities



Contract assets include amounts due under retainage provisions, costs and estimated earnings in excess of billings and capitalized contract costs. The amounts as included on the Condensed Consolidated Balance Sheets consist of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

As of September 30,

 

As of January 1,

(in thousands)

 

2018

 

2018

Retainage receivable

 

$

492,937 

 

$

535,939 

Costs and estimated earnings in excess of billings:

 

 

 

 

 

 

Claims

 

 

672,858 

 

 

549,849 

Unapproved change orders

 

 

349,286 

 

 

296,591 

Other unbilled costs and profits

 

 

63,507 

 

 

86,318 

Total costs and estimated earnings in excess of billings

 

 

1,085,651 

 

 

932,758 

Capitalized contract costs

 

 

41,221 

 

 

32,773 

Total contract assets

 

$

1,619,809 

 

$

1,501,470 



Retainage receivable represents amounts invoiced to customers where payments have been partially withheld pending the completion of certain milestones, satisfaction of other contractual conditions or the completion of the project. Retainage agreements vary from project to project and balances could be outstanding for several months or years depending on a number of circumstances such as contract-specific terms, project performance and other variables that may arise as the Company makes progress towards completion.



Costs and estimated earnings in excess of billings represent the excess of contract costs and profits (or contract revenue) over the amount of contract billings to date and are classified as a current asset. Costs and estimated earnings in excess of billings result when either: 1) the appropriate contract revenue amount has been recognized over time in accordance with ASC 606, but a portion of the revenue recorded cannot be billed currently due to the billing terms defined in the contract, or 2) costs are incurred related to certain claims and unapproved change orders. Claims occur when there is a dispute regarding both a change in the scope of work and the price associated with that change. Unapproved change orders occur when a change in the scope of work results in additional work being performed before the parties have agreed on the corresponding change in the contract price. The Company routinely estimates recovery related to claims and unapproved change orders as a form of variable consideration at the most likely amount it expects to receive and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Claims and unapproved change orders are billable upon the agreement and resolution between the contractual parties and after the execution of contractual amendments. Increases in claims and unapproved change orders typically result from costs being incurred against existing or new positions; decreases normally result from resolutions and subsequent billings. As discussed in Note 9, Commitments and Contingencies, the resolution of these claims and unapproved change orders may require litigation or other forms of dispute resolution proceedings. Other unbilled costs and profits are billable in accordance with the billing terms of each of the existing contractual arrangements and, as such, the timing of contract billing cycles can cause fluctuations in the balance of unbilled costs and profits. Ultimate resolution of other unbilled costs and profits typically involves incremental progress toward contractual requirements or milestones.



Capitalized contract costs primarily represent costs to fulfill a contract that (1) directly relate to an existing or anticipated contract, (2) generate or enhance resources that will be used in satisfying performance obligations in the future and (3) are expected to be recovered through the contract, and are included in other current assets. Capitalized contract costs are generally expensed to the associated contract over the period of anticipated use on the project. During the three and nine months ended September 30, 2018,  $4.0 million and $12.2 million of previously capitalized contract costs were amortized and recognized as expense on the related contracts, respectively.



Contract liabilities include amounts owed under retainage provisions and billings in excess of costs and estimated earnings. The amount as reported on the Condensed Consolidated Balance Sheets consist of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

As of September 30,

 

As of January 1,

(in thousands)

 

2018

 

2018

Retainage payable

 

$

213,430 

 

$

261,820 

Billings in excess of costs and estimated earnings

 

 

648,287 

 

 

496,654 

Total contract liabilities

 

$

861,717 

 

$

758,474 



14


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

Retainage payable represents amounts invoiced to the Company by subcontractors where payments have been partially withheld pending the completion of certain milestones, other contractual conditions or upon the completion of the project. Generally, retainage payable is not remitted to subcontractors until the associated retainage receivable from customers is collected.



Billings in excess of costs and estimated earnings represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date. The balance may fluctuate depending on the timing of contract billings and the recognition of contract revenue. Revenue recognized during the three and nine months ended September 30, 2018 and included in the opening billings in excess of costs and estimated earnings balances for each period totaled $251.4 million and $341.2 million, respectively.

 

(5)     Cash, Cash Equivalents and Restricted Cash



The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows:







 

 

 

 

 

 



 

 

 

 

 

 



 

As of September 30,

 

As of December 31,

(in thousands)

 

2018

 

2017

Cash and cash equivalents available for general corporate purposes

 

$

53,927 

 

$

94,713 

Joint venture cash and cash equivalents

 

 

64,331 

 

 

98,155 

Cash and cash equivalents

 

 

118,258 

 

 

192,868 

Restricted cash

 

 

3,436 

 

 

4,780 

Total cash, cash equivalents and restricted cash

 

$

121,694 

 

$

197,648 



Cash equivalents include short-term, highly liquid investments with maturities of three months or less when acquired. Cash and cash equivalents consist of amounts available for the Company’s general purposes, the Company’s proportionate share of cash held by the Company’s unconsolidated joint ventures and 100% of amounts held by the Company’s consolidated joint ventures. In both cases, cash held by joint ventures is available only for joint venture-related uses, including future distributions to joint venture partners.



Amounts included in restricted cash are primarily held as collateral to secure insurance-related contingent obligations, such as insurance claim deductibles, in lieu of letters of credit.

 

15


 

Table of Contents

 

TUTOR PERINI CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

UNAUDITED

 

(6)     Earnings Per Common Share (EPS)



Basic EPS and diluted EPS are calculated by dividing net income attributable to Tutor Perini Corporation by the following: for basic EPS, the weighted-average number of common shares outstanding during the period; and for diluted EPS, the sum of the weighted-average number of both outstanding common shares and potentially dilutive securities, which for the Company can include restricted stock units, unexercised stock options and the Convertible Notes, as defined in Note 8, Financial Commitments. In accordance with ASC 260, Earnings Per Share, the settlement of the principal amount of the Convertible Notes has no impact on diluted EPS because the Company has the intent and ability to settle the principal amount in cash. The Company calculates the effect of the potentially dilutive restricted stock units and stock options using the treasury stock method.





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except per common share data)

2018

 

2017

 

2018

 

2017

Net income attributable to Tutor Perini Corporation

$

21,272 

 

$

23,584 

 

$

34,031 

 

$

67,444 



 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

50,018 

 

 

49,775 

 

 

49,927 

 

 

49,602 

Effect of dilutive restricted stock units and stock options

 

357 

 

 

812 

 

 

283 

 

 

1,166 

Weighted-average common shares outstanding, diluted

 

50,375 

 

 

50,587 

 

 

50,210 

 

 

50,768 



 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Tutor Perini Corporation per common share: