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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
March 31, 2024
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
(State or Other Jurisdiction of
Incorporation or Organization)

15901 OLDEN STREET, SYLMAR, CALIFORNIA
(Address of Principal Executive Offices)
04-1717070
(I.R.S. Employer Identification No.)

91342-1093
(Zip Code)
(818) 362-8391
(Registrant’s Telephone Number, Including Area Code)
None
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 par valueTPCThe New York Stock Exchange

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.

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 April 18, 2024 was 52,284,162.


TUTOR PERINI CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
Page Numbers
2

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 common share amounts)20242023
REVENUE$1,048,987 $776,300 
COST OF OPERATIONS(933,736)(800,469)
GROSS PROFIT (LOSS)115,251 (24,169)
General and administrative expenses(66,445)(57,776)
INCOME (LOSS) FROM CONSTRUCTION OPERATIONS48,806 (81,945)
Other income, net5,311 6,417 
Interest expense(19,307)(21,513)
INCOME (LOSS) BEFORE INCOME TAXES34,810 (97,041)
Income tax (expense) benefit(7,308)48,112 
NET INCOME (LOSS)27,502 (48,929)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS11,742 267 
NET INCOME (LOSS) ATTRIBUTABLE TO TUTOR PERINI CORPORATION$15,760 $(49,196)
BASIC EARNINGS (LOSS) PER COMMON SHARE$0.30 $(0.95)
DILUTED EARNINGS (LOSS) PER COMMON SHARE$0.30 $(0.95)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
BASIC52,092 51,551 
DILUTED52,515 51,551 
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 (LOSS)
UNAUDITED
Three Months Ended
March 31,
(in thousands)20242023
NET INCOME (LOSS)$27,502 $(48,929)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Defined benefit pension plan adjustments321 301 
Foreign currency translation adjustments(927)250 
Unrealized gain (loss) in fair value of investments(236)1,329 
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX(842)1,880 
COMPREHENSIVE INCOME (LOSS)26,660 (47,049)
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS11,275 420 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TUTOR PERINI CORPORATION$15,385 $(47,469)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4

TUTOR PERINI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands, except share and per share amounts)As of March 31,
2024
As of December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ($171,727 and $173,118 related to variable interest entities (“VIEs”))
$358,304 $380,564 
Restricted cash14,749 14,116 
Restricted investments130,499 130,287 
Accounts receivable ($51,822 and $84,014 related to VIEs)
1,057,229 1,054,014 
Retention receivable ($154,951 and $161,187 related to VIEs)
550,224 580,926 
Costs and estimated earnings in excess of billings ($72,566 and $58,089 related to VIEs)
1,156,571 1,143,846 
Other current assets ($22,155 and $26,725 related to VIEs)
199,138 217,601 
Total current assets3,466,714 3,521,354 
PROPERTY AND EQUIPMENT (“P&E”), net of accumulated depreciation of $546,716 and $534,171 (net P&E of $33,813 and $35,135 related to VIEs)
438,605 441,291 
GOODWILL205,143 205,143 
INTANGIBLE ASSETS, NET67,746 68,305 
DEFERRED INCOME TAXES
69,737 74,083 
OTHER ASSETS122,462 119,680 
TOTAL ASSETS$4,370,407 $4,429,856 
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt$21,109 $117,431 
Accounts payable ($23,199 and $24,160 related to VIEs)
600,190 466,545 
Retention payable ($22,011 and $22,841 related to VIEs)
227,731 223,138 
Billings in excess of costs and estimated earnings ($425,410 and $439,759 related to VIEs)
1,002,268 1,103,530 
Accrued expenses and other current liabilities ($10,572 and $18,206 related to VIEs)
191,909 214,309 
Total current liabilities2,043,207 2,124,953 
LONG-TERM DEBT, less current maturities, net of unamortized discount and debt issuance costs totaling $9,389 and $11,000
780,058 782,314 
OTHER LONG-TERM LIABILITIES243,908 238,678 
TOTAL LIABILITIES3,067,173 3,145,945 
COMMITMENTS AND CONTINGENCIES (NOTE 11)
EQUITY
Stockholders' equity:
Preferred stock - authorized 1,000,000 shares ($1 par value), none issued
  
Common stock - authorized 112,500,000 shares ($1 par value), issued and outstanding 52,284,162 and 52,025,497 shares
52,284 52,025 
Additional paid-in capital1,146,008 1,146,204 
Retained earnings148,906 133,146 
Accumulated other comprehensive loss(40,162)(39,787)
Total stockholders' equity1,307,036 1,291,588 
Noncontrolling interests(3,802)(7,677)
TOTAL EQUITY1,303,234 1,283,911 
TOTAL LIABILITIES AND EQUITY$4,370,407 $4,429,856 
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
Three Months Ended March 31,
(in thousands)20242023
Cash Flows from Operating Activities:
Net income (loss)
$27,502 $(48,929)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation13,023 9,849 
Amortization of intangible assets559 559 
Share-based compensation expense5,524 3,071 
Change in debt discounts and deferred debt issuance costs1,806 1,004 
Deferred income taxes3,494 (86,265)
Gain on sale of property and equipment(227)(4,975)
Changes in other components of working capital47,173 148,182 
Other long-term liabilities790 (2,256)
Other, net(1,370)1,088 
NET CASH PROVIDED BY OPERATING ACTIVITIES98,274 21,328 
Cash Flows from Investing Activities:
Acquisition of property and equipment(10,434)(17,796)
Proceeds from sale of property and equipment628 6,540 
Investments in securities(12,045)(386)
Proceeds from maturities and sales of investments in securities11,530 4,755 
NET CASH USED IN INVESTING ACTIVITIES(10,321)(6,887)
Cash Flows from Financing Activities:
Proceeds from debt 259,500 
Repayment of debt(100,188)(238,101)
Cash payments related to share-based compensation(1,440)(123)
Distributions paid to noncontrolling interests(7,400)(8,500)
Contributions from noncontrolling interests 2,000 
Debt issuance, extinguishment and modification costs(552)(407)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES(109,580)14,369 
Net increase (decrease) in cash, cash equivalents and restricted cash(21,627)28,810 
Cash, cash equivalents and restricted cash at beginning of period394,680 273,831 
Cash, cash equivalents and restricted cash at end of period$373,053 $302,641 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.


6

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, 2023. The results of operations for the three months ended March 31, 2024 may not be indicative of the results that will be achieved for the full year ending December 31, 2024.
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, 2024 and its consolidated statements of operations and cash flows for the interim periods presented. Intercompany balances and transactions have been eliminated. Certain amounts in the condensed consolidated financial statements and notes thereto of prior years have been reclassified to conform to the current year presentation.
(2)Recent Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (“Topic 280”): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosure of incremental segment information on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the guidance on the consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (“Topic 740”): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires public entities to disclose specific categories in its annual effective tax rate reconciliation and disaggregated information about significant reconciling items by jurisdiction and by nature. ASU 2023-09 also requires entities to disclose their income tax payments (net of refunds) to international, federal, and state and local jurisdictions. This guidance is effective for fiscal years beginning after December 15, 2024, and requires prospective application with the option to apply it retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements and disclosures.
(3)Revenue
Disaggregation of Revenue
The following tables disaggregate revenue by end market, customer type and contract type, which the Company believes best depict how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors for the three months ended March 31, 2024 and 2023.
Three Months Ended
March 31,
(in thousands)20242023
Civil segment revenue by end market:
Mass transit (includes certain transportation and tunneling projects)$252,516 $188,460 
Military facilities105,144 85,567 
Commercial and industrial sites39,490 22,726 
Bridges27,672 30,645 
Power and energy26,198 10,176 
Other21,145 12,296 
Total Civil segment revenue$472,165 $349,870 
7

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

Three Months Ended
March 31,
(in thousands)20242023
Building segment revenue by end market:
Government$130,611 $89,620 
Health care facilities111,987 50,417 
Education facilities68,159 48,077 
Mass transit (includes transportation projects)61,175 33,320 
Sports and entertainment15,639 13,466 
Commercial and industrial facilities11,369 38,271 
Hospitality and gaming2,752 19,606 
Other(a)
10,250 (63,124)
Total Building segment revenue$411,942 $229,653 
Three Months Ended
March 31,
(in thousands)20242023
Specialty Contractors segment revenue by end market:
Mass transit (includes certain transportation and tunneling projects)$48,126 $47,545 
Commercial and industrial facilities28,210 54,227 
Multi-unit residential24,726 32,796 
Government22,953 21,069 
Health care facilities16,710 9,531 
Water14,216 28,334 
Other(a)
9,939 3,275 
Total Specialty Contractors segment revenue$164,880 $196,777 
Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
(in thousands)CivilBuildingSpecialty
Contractors
TotalCivilBuildingSpecialty
Contractors
Total
Revenue by customer type:
State and local agencies$283,995 $246,519 $76,953 $607,467 $213,427 $136,601 $85,682 $435,710 
Federal agencies113,454 46,052 439 159,945 95,984 41,735 1,893 139,612 
Private owners(a)
74,716 119,371 87,488 281,575 40,459 51,317 109,202 200,978 
Total revenue$472,165 $411,942 $164,880 $1,048,987 $349,870 $229,653 $196,777 $776,300 


8

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
(in thousands)CivilBuildingSpecialty
Contractors
TotalCivilBuildingSpecialty
Contractors
Total
Revenue by contract type:
Fixed price$422,720 $170,146 $139,503 $732,369 $311,373 $96,116 $166,155 $573,644 
Guaranteed maximum price(a)
46 187,300 623 187,969 62 69,778 1,756 71,596 
Unit price33,854  20,545 54,399 33,012  24,064 57,076 
Cost plus fee and other15,545 54,496 4,209 74,250 5,423 63,759 4,802 73,984 
Total revenue$472,165 $411,942 $164,880 $1,048,987 $349,870 $229,653 $196,777 $776,300 
____________________________________________________________________________________________________
(a)The three-month period ended March 31, 2023 includes the negative impact of a non-cash charge of $83.6 million that resulted from an adverse legal ruling (of which $72.2 million impacted the Building segment and $11.4 million impacted the Specialty Contractors segment). Refer to Note 18, Business Segments, for additional details.

Changes in Contract Estimates that Impact Revenue
Changes to the total estimated contract revenue or cost for a given project, either due to unexpected events or revisions to management’s initial estimates, are recognized in the period in which they are determined. Net revenue recognized during the three months ended March 31, 2024 related to performance obligations satisfied (or partially satisfied) in prior periods was immaterial. Revenue was negatively impacted during the three months ended March 31, 2023 related to performance obligations satisfied (or partially satisfied) in prior periods by $108.0 million. Refer to Note 18, Business Segments, for additional details on significant adjustments.
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 March 31, 2024, the aggregate amounts of the transaction prices allocated to the remaining performance obligations of the Company’s construction contracts were $4.1 billion, $1.8 billion and $1.1 billion for the Civil, Building and Specialty Contractors segments, respectively. As of March 31, 2023, the aggregate amounts of the transaction prices allocated to the remaining performance obligations of the Company’s construction contracts were $4.4 billion, $2.2 billion and $1.2 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.
(4)Contract Assets and Liabilities
The Company classifies contract assets and liabilities that may be settled beyond one year from the balance sheet date as current, consistent with the length of time of the Company’s project operating cycle.
Contract assets include amounts due under retention provisions, costs and estimated earnings in excess of billings and capitalized contract costs. The amounts as included on the Condensed Consolidated Balance Sheets consisted of the following:
(in thousands)As of March 31,
2024
As of December 31,
2023
Retention receivable$550,224 $580,926 
Costs and estimated earnings in excess of billings:
Claims519,399 562,646 
Unapproved change orders558,521 512,831 
Other unbilled costs and profits78,651 68,369 
Total costs and estimated earnings in excess of billings1,156,571 1,143,846 
Capitalized contract costs103,946 117,913 
Total contract assets$1,810,741 $1,842,685 
9

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

Retention 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. Retention 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 toward 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 Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“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 11, 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 are included in other current assets and 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. Capitalized contract costs are generally expensed to the associated contract over the period of anticipated use on the project. During the three months ended March 31, 2024, $16.3 million of previously capitalized contract costs were amortized and recognized as expense on the related contracts. During the three months ended March 31, 2023, $10.8 million of previously capitalized contract costs were amortized and recognized as expense on the related contracts.
Contract liabilities include amounts owed under retention provisions and billings in excess of costs and estimated earnings. The amount as reported on the Condensed Consolidated Balance Sheets consisted of the following:
(in thousands)As of March 31,
2024
As of December 31,
2023
Retention payable$227,731 $223,138 
Billings in excess of costs and estimated earnings1,002,268 1,103,530 
Total contract liabilities$1,229,999 $1,326,668 
Retention 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, retention payable is not remitted to subcontractors until the associated retention 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 months ended March 31, 2024 and 2023 and included in the opening billings in excess of costs and estimated earnings balances for each period totaled $482.0 million and $365.1 million, respectively.
10

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

(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:
(in thousands)As of March 31,
2024
As of December 31,
2023
Cash and cash equivalents available for general corporate purposes$128,942 $145,055 
Joint venture cash and cash equivalents229,362 235,509 
Cash and cash equivalents358,304 380,564 
Restricted cash14,749 14,116 
Total cash, cash equivalents and restricted cash$373,053 $394,680 
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.
Restricted cash includes amounts primarily held as collateral to secure insurance-related contingent obligations, such as insurance claim deductibles, in lieu of letters of credit.
(6)Earnings Per Common Share
Basic earnings per common share (“EPS”) and diluted EPS are calculated by dividing net income (loss) 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 (“RSUs”) and unexercised stock options. The Company calculates the effect of the potentially dilutive RSUs and stock options using the treasury stock method.
Three Months Ended March 31,
(in thousands, except per common share data)20242023
Net income (loss) attributable to Tutor Perini Corporation$15,760 $(49,196)
Weighted-average common shares outstanding, basic52,092 51,551 
Effect of dilutive RSUs and stock options423  
Weighted-average common shares outstanding, diluted52,515 51,551 
Net income (loss) attributable to Tutor Perini Corporation per common share:
Basic$0.30 $(0.95)
Diluted$0.30 $(0.95)
Anti-dilutive securities not included above1,421 2,857 
For the three months ended March 31, 2023, all outstanding RSUs and stock options were excluded from the calculation of weighted-average diluted shares outstanding, as the shares have an anti-dilutive effect due to the net loss for the period.
(7)Income Taxes
The Company recognized an income tax expense for the three months ended March 31, 2024 of $7.3 million resulting in an effective income tax rate of 21.0%. The effective income tax rate for the three months ended March 31, 2024 was consistent with the 21.0% federal statutory rate as the impacts of rate reductions from earnings attributable to noncontrolling interests (for
11

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

which income taxes are not the responsibility of the Company) and federal income tax credits were offset by non-deductible expenses, share-based compensation adjustments and state income taxes (net of federal tax benefit).
The Company recognized an income tax benefit for the three months ended March 31, 2023 of $48.1 million resulting in an effective income tax rate of 49.6%. The effective income tax rate was higher than the 21.0% federal statutory rate primarily due to the pre-tax loss for the period and projected for the year. In periods reporting pre-tax losses, a tax benefit increases the effective income tax rate because it increases the tax benefit generated from the pre-tax loss. The tax benefits that caused a higher effective tax rate were primarily the earnings attributable to noncontrolling interests (for which income taxes are not the responsibility of the Company) and state income taxes (net of the federal tax benefit), partially offset by non-deductible expenses.
(8)Goodwill and Intangible Assets
Goodwill
The following table presents the changes in the carrying amount of goodwill since its inception through March 31, 2024:
(in thousands)CivilBuildingSpecialty
Contractors
Total
Gross goodwill as of December 31, 2023
$492,074 $424,724 $156,193 $1,072,991 
Accumulated impairment as of December 31, 2023
(286,931)(424,724)(156,193)(867,848)
Goodwill as of December 31, 2023205,143   205,143 
Current year activity    
Goodwill as of March 31, 2024$205,143 $ $ $205,143 
The Company performed its annual impairment test in the fourth quarter of 2023 and concluded goodwill was not impaired. In addition, the Company determined that no triggering events occurred and no circumstances changed since the date of our annual impairment test that would more likely than not reduce the fair value of the Civil reporting unit below its carrying amount.
The Company will continue to monitor events and circumstances for changes that indicate the Civil reporting unit goodwill would need to be reevaluated for impairment during future interim periods prior to the annual impairment test. These future events and circumstances include, but are not limited to, changes in the overall financial performance of the Civil reporting unit, as well as other quantitative and qualitative factors which could indicate potential triggering events for possible impairment.
Intangible Assets
Intangible assets consist of the following:
As of March 31, 2024Weighted-Average Amortization Period
(in thousands)CostAccumulated
Amortization
Accumulated Impairment ChargeCarrying Value
Trade names (non-amortizable)$117,600 $— $(67,190)$50,410 Indefinite
Trade names (amortizable)69,250 (28,682)(23,232)17,336 20 years
Contractor license6,000 — (6,000) N/A
Customer relationships39,800 (23,155)(16,645) N/A
Construction contract backlog149,290 (149,290)—  N/A
Total$381,940 $(201,127)$(113,067)$67,746 
12

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

As of December 31, 2023Weighted-Average Amortization Period
(in thousands)CostAccumulated
Amortization
Accumulated Impairment ChargeCarrying Value
Trade names (non-amortizable)$117,600 $— $(67,190)$50,410 Indefinite
Trade names (amortizable)69,250 (28,123)(23,232)17,895 20 years
Contractor license6,000 — (6,000) N/A
Customer relationships39,800 (23,155)(16,645) N/A
Construction contract backlog149,290 (149,290)—  N/A
Total$381,940 $(200,568)$(113,067)$68,305 
Amortization expense related to amortizable intangible assets for both the three months ended March 31, 2024 and 2023 was $0.6 million. As of March 31, 2024, future amortization expense related to amortizable intangible assets will be approximately $1.7 million for the remainder of 2024, $2.2 million per year for the years 2025 through 2029 and $4.6 million thereafter.
The Company performed its annual impairment test for non-amortizable trade names during the fourth quarter of 2023. Based on this assessment, the Company concluded that its non-amortizable trade names were not impaired. In addition, the Company determined that no triggering events occurred and no circumstances changed since the date of our annual impairment test that would indicate impairment of its non-amortizable trade names. Other amortizable intangible assets are reviewed for impairment whenever circumstances indicate that the future cash flows generated by the assets might be less than the assets’ net carrying value. The Company had no impairment of intangible assets during the three months ended March 31, 2024 or 2023.
(9)Financial Commitments
Long-Term Debt
Long-term debt as reported on the Condensed Consolidated Balance Sheets consisted of the following:
(in thousands)As of March 31,
2024
As of December 31,
2023
2017 Senior Notes$498,703 $498,410 
Term Loan B266,959 357,744 
Revolver  
Equipment financing and mortgages31,238 34,807 
Other indebtedness4,267 8,784 
Total debt801,167 899,745 
Less: Current maturities(a)
21,109 117,431 
Long-term debt, net$780,058 $782,314 
____________________________________________________________________________________________________
(a)Current maturities at December 31, 2023 included the $91.0 million principal prepayment on the Term Loan B that was made in February 2024.
The following table reconciles the outstanding debt balances to the reported debt balances as of March 31, 2024 and December 31, 2023:
As of March 31, 2024As of December 31, 2023
(in thousands)Outstanding DebtUnamortized Discounts and Issuance CostsDebt,
as reported
Outstanding DebtUnamortized Discounts and Issuance CostsDebt,
as reported
2017 Senior Notes$500,000 $(1,297)$498,703 $500,000 $(1,590)$498,410 
Term Loan B275,051 (8,092)266,959 367,154 (9,410)357,744 
13

TUTOR PERINI CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

The unamortized issuance costs related to the Revolver were $1.2 million and $1.4 million as of March 31, 2024 and December 31, 2023, respectively, and are included in other assets on the Condensed Consolidated Balance Sheets.
2020 Credit Agreement
On August 18, 2020, the Company entered into a credit agreement (as amended, the “2020 Credit Agreement”) with BMO Bank N.A. (f/k/a BMO Harris Bank N.A.), as Administrative Agent, Swing Line Lender and L/C Issuer and other lenders. The 2020 Credit Agreement provided for a $425.0 million term loan B facility (the “Term Loan B”) and a $175.0 million (which will be reduced to $170.0 million following the effectiveness of the amendment to the 2020 Credit Agreement entered into on April 15, 2024, as described in further detail in Note 19, Subsequent Events) revolving credit facility (the “Revolver”), with sub-limits for the issuance of letters of credit and swing line loans up to the aggregate amounts of $75.0 million and $10.0 million, respectively. The Term Loan B will mature on August 18, 2027, except that if any of the 2017 Senior Notes (defined below) remain outstanding beyond future dates specified below, the maturity of certain amounts of the Term Loan B will be accelerated (“spring-forward maturity”). The spring-forward maturity provisions are as follows: (i) if on January 30, 2025, any of the 2017 Senior Notes remain outstanding, the maturity date for one tranche of the Term Loan B (representing 10.2% of the principal balance) shall be January 30, 2025 (which is 91 days prior to the maturity of the 2017 Senior Notes) and (ii) if on April 21, 2025, any of the 2017 Senior Notes remain outstanding, the maturity date for another tranche of the Term Loan B (representing 89.8% of the principal balance) shall be April 21, 2025 (which is 10 days prior to the maturity of the 2017 Senior Notes), subject to certain further exceptions. However, following the redemption of the 2017 Senior Notes, which will occur on May 2, 2024 (as described in further detail in Note 19, Subsequent Events), the spring-forward maturity in respect of both tranches of the Term Loan B will no longer be in effect. The Revolver will mature on August 18, 2025, unless any of the 2017 Senior Notes are outstanding on January 30, 2025, in which case any extensions of credit under the Revolver will mature and the commitments under the Revolver will be reduced to zero, in each case, on January 30, 2025, subject to certain further exceptions. However, following the effectiveness of the April 15, 2024 amendment described in further detail in Note 19, the Revolver will mature (a) if any tranche of the Term Loan B, any incremental term loan or any refinancing term loan (or any refinancing or replacement thereof) remains outstanding, the earlier of (i) May 20, 2027 and (ii) the date that is ninety (90) days prior to the final maturity of any tranche of the Term Loan B, any incremental term loan or any refinancing term loan (or any refinancing or replacement thereof), as applicable and (b) if no obligations are outstanding with respect to any tranche of the Term Loan B, any incremental term loan or any refinancing term loan, August 18, 2027.
On April 15, 2024, as described in further detail in Note 19, Subsequent Events, the Company entered into an amendment in respect of the 2020 Credit Agreement to, among other things, extend the maturity of the Revolver and permanently reduce the aggregate commitments in respect of the Revolver by $5.0 million from $175.0 million to $170.0 million. The effectiveness of the amendment is subject to the satisfaction or waiver of certain conditions precedent more fully described in Note 19, Subsequent Events.
The 2020 Credit Agreement permits the Company to repay any or all borrowings outstanding under the 2020 Credit Agreement at any time prior to maturity without penalty. The 2020 Credit Agreement requires the Company to make regularly scheduled payments of principal on the Term Loan B in quarterly installments equal to 0.25% of the initial principal amount of the Term Loan B. The 2020 Credit Agreement also requires the Company to make prepayments on the Term Loan B in connection with certain asset sales, receipts of insurance proceeds, incurrences of certain indebtedness and annual excess cash flow (in each case, subject to certain customary exceptions). At December 31, 2023, current maturities of long-term debt in the accompanying Condensed Consolidated Balance Sheet included $91.0 million prepayment of principal on the Term Loan B, relating to the mandatory prepayment provision of the 2020 Credit Agreement in respect of annual excess cash flow. The $91.0 million prepayment included in current maturities at December 31, 2023, which was due by the first week of April 2024, was paid in February 2024.
Subject to certain exceptions, at any time prior to maturity, the 2020 Credit Agreement provides the Company with the right to increase the commitments under the Revolver and/or to establish one or more term loan facilities in an aggregate amount up to (i) the greater of $173.5 million and 50% LTM EBITDA (as defined in the 2020 Credit Agreement) plus (ii) additional amounts if (A) in the case of pari passu first lien secured indebtedness, the First Lien Net Leverage Ratio (as defined in the 2020 Credit Agreement) does not exceed 1.35:1.00, (B) in the case of junior lien secured indebtedness, the Total Net Leverage Ratio (as defined in the 2020 Credit Agreement) does not exceed 3.50:1.00 and (C) in the case of unsecured indebtedness, (x) the Total Net Leverage Ratio does not exceed 3.50:1.00 or (y) the Fixed Charge Coverage Ratio (as defined in the 2020 Credit Agreement) is no less than 2.00:1.00.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

Borrowings under the 2020 Credit Agreement bear interest, at the Company’s option, at a rate equal to (i) (A) in the case of the Term Loan B, following the amendment to the 2020 Credit Agreement on May 2, 2023 (as discussed below), (x) the Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) (calculated with a 11.448 basis point, 26.161 basis point and 42.826 basis point credit spread adjustment for a 1, 3 and 6 month interest period, respectively) or (y) a base rate (determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 50 basis points and (3) the Adjusted Term SOFR rate for a one-month interest period plus 100 basis points) and (B) in case of the Revolver, following the amendment to the 2020 Credit Agreement on October 31, 2022 (as discussed below), (x) the Adjusted Term SOFR rate (calculated with a 10 basis point credit spread adjustment for all interest periods) or (y) a base rate (determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 50 basis points and (3) the Adjusted Term SOFR rate for a one-month interest period plus 100 basis points) plus, in each case, (ii) an applicable margin. The margin applicable to the Term Loan B is between 4.50% and 4.75% for Adjusted Term SOFR and between 3.50% and 3.75% for base rate, and, in each case, is based on the Total Net Leverage Ratio. The margin applicable to the Revolver is between 4.25% and 4.75% for Adjusted Term SOFR and 3.25% and 3.75% for base rate, and, in each case, is based on the First Lien Net Leverage Ratio. Effective following the amendment to the 2020 Credit Agreement on October 31, 2022, the Company’s original London Interbank Offered Rate (“LIBOR”) option in respect of the Revolver was transitioned to Adjusted Term SOFR. Effective May 2, 2023, the 2020 Credit Agreement was further amended to transition the Company’s original LIBOR option in respect of the Term Loan B to Adjusted Term SOFR. In addition to paying interest on outstanding principal under the 2020 Credit Agreement, the Company will pay a commitment fee to the lenders under the Revolver in respect of the unutilized commitments thereunder. The Company will pay customary letter of credit fees. If a payment or bankruptcy event of default occurs and is continuing, the otherwise applicable margin on overdue amounts will be increased by 2% per annum. The 2020 Credit Agreement includes customary provisions for the replacement of Adjusted Term SOFR with an alternative benchmark rate upon Adjusted Term SOFR being discontinued. There were no borrowings under the Revolver during the three months ended March 31, 2024. At March 31, 2024, the borrowing rate on the Revolver was 12.3%.
As amended, the 2020 Credit Agreement requires, solely with respect to the Revolver, the Company and its restricted subsidiaries to maintain a maximum First Lien Net Leverage Ratio of 3.50:1.00, effective the fiscal quarter ended December 31, 2022 and increasing to 3.75:1.00 for the fiscal quarter ending March 31, 2023 and subsequently stepping down to 3.00:1.00 for the fiscal quarter ending June 30, 2023, 2.50:1.00 for the fiscal quarter ending September 30, 2023 and 2.25:1.00 for the fiscal quarter ending December 31, 2023 and each fiscal quarter thereafter. The 2020 Credit Agreement also includes certain customary representations and warranties, affirmative covenants and events of default. Subject to certain exceptions, substantially all of the Company’s existing and future material wholly-owned subsidiaries unconditionally guarantee the obligations of the Company under the 2020 Credit Agreement; additionally, subject to certain exceptions, the obligations are secured by a lien on substantially all of the assets of the Company and its subsidiaries guaranteeing these obligations.
As of March 31, 2024, the entire $175.0 million was available under the Revolver. The Company had not utilized the Revolver for letters of credit. The Company was in compliance with the financial covenant under the 2020 Credit Agreement for the period ended March 31, 2024.
2024 Senior Notes
On April 22, 2024, as described in further detail in Note 19, Subsequent Events, the Company issued $400.0 million in aggregate principal amount of 11.875% Senior Notes due April 30, 2029 (the “2024 Senior Notes”) in a private placement offering.
2017 Senior Notes
On April 20, 2017, the Company issued $500.0 million in aggregate principal amount of 6.875% Senior Notes due May 1, 2025 (the “2017 Senior Notes”) in a private placement offering. Interest on the 2017 Senior Notes is payable in arrears semi-annually in May and November of each year, beginning in November 2017.
The Company may redeem the 2017 Senior Notes at specified redemption prices described in the indenture. Upon a change of control, holders of the 2017 Senior Notes may require the Company to repurchase all or part of the 2017 Senior Notes at 101% of the principal amount thereof, plus accrued and unpaid interest to the redemption date.
The 2017 Senior Notes are senior unsecured obligations of the Company and are guaranteed by substantially all of the Company’s existing and future subsidiaries that also guarantee obligations under the Company’s 2020 Credit Agreement, as
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

defined above. In addition, the indenture for the 2017 Senior Notes provides for customary covenants, including events of default and restrictions on the payment of dividends and share repurchases.
As described in further detail in Note 19, Subsequent Events, the proceeds of the 2024 Senior Notes, together with cash on hand, will be used to redeem in full, all of the outstanding obligations in respect of the 2017 Senior Notes. A Notice of Conditional Full Redemption was delivered to holders of the 2017 Senior Notes on April 17, 2024, and the redemption of the 2017 Senior Notes will occur on May 2, 2024.
Interest Expense
Interest expense as reported in the Condensed Consolidated Statements of Operations consisted of the following:
Three Months Ended
March 31,
(in thousands)20242023
Cash interest expense:
Interest on Term Loan B$8,488 $9,749 
Interest on 2017 Senior Notes8,594 8,594 
Interest on Revolver 1,745 
Other interest419 421 
Total cash interest expense17,501 20,509 
Non-cash interest expense:(a)
Amortization of discount and debt issuance costs on Term Loan B1,318 571 
Amortization of debt issuance costs on 2017 Senior Notes293 273 
Amortization of debt issuance costs on Revolver195 160 
Total non-cash interest expense1,806 1,004 
Total interest expense$19,307 $21,513 
____________________________________________________________________________________________________
(a)The combination of cash and non-cash interest expense produces effective interest rates that are higher than contractual rates. Accordingly, the effective interest rates for the 2017 Senior Notes and Term Loan B were 7.13% and 13.13%, respectively, for the three months ended March 31, 2024.
(10)Leases
The Company leases certain office space, construction and office equipment, vehicles and temporary housing generally under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of March 31, 2024, the Company’s operating leases have remaining lease terms ranging from less than one year to 14 years, some of which include options to renew the leases. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

The following table presents components of lease expense for the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
(in thousands)20242023
Operating lease expense$3,320 $3,474 
Short-term lease expense(a)
12,323 13,919 
15,643 17,393 
Less: Sublease income199 194 
Total lease expense$15,444 $17,199 
____________________________________________________________________________________________________
(a)Short-term lease expense includes all leases with lease terms of up to one year. Short-term leases include, among other things, construction equipment rented on an as-needed basis as well as temporary housing.
The following table presents supplemental balance sheet information related to operating leases:
(dollars in thousands)Balance Sheet Line ItemAs of March 31,
2024
As of December 31,
2023
Assets
Right-of-use assetsOther assets$51,254 $48,878 
Total lease assets$51,254 $48,878 
Liabilities
Current lease liabilitiesAccrued expenses and other current liabilities$6,605 $6,275 
Long-term lease liabilitiesOther long-term liabilities49,981 47,781 
Total lease liabilities$56,586 $54,056 
Weighted-average remaining lease term9.9 years10.3 years
Weighted-average discount rate12.01 %12.13 %
The following table presents supplemental cash flow information and non-cash activity related to operating leases:
Three Months Ended
March 31,
(in thousands)20242023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities$(3,168)$(3,446)
Non-cash activity:
Right-of-use assets obtained in exchange for lease liabilities$4,154 $318 
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

The following table presents maturities of operating lease liabilities on an undiscounted basis as of March 31, 2024:
Year (in thousands)
Operating Leases
2024 (excluding the three months ended March 31, 2024)
$9,428 
202511,580 
20269,704 
20278,281 
20288,183 
Thereafter52,269 
Total lease payments99,445 
Less: Imputed interest42,859 
Total$56,586 
(11)Commitments and Contingencies
The Company and certain of its subsidiaries are involved in litigation and other legal proceedings and forms of dispute resolution in the ordinary course of business, including but not limited to disputes over contract payment and/or performance-related issues (such as disagreements regarding delay or a change in the scope of work of a project and/or the price associated with that change) and other matters incidental to the Company’s business. In accordance with ASC 606, the Company makes assessments of these types of matters on a routine basis and, to the extent permitted by ASC 606, estimates and records recovery related to these matters as a form of variable consideration at the most likely amount the Company expects to receive, as discussed further in Note 4, Contract Assets and Liabilities. In addition, the Company is contingently liable for litigation, performance guarantees and other commitments arising in the ordinary course of business, which are accounted for in accordance with ASC 450, Contingencies. Management reviews these matters regularly and updates or revises its estimates as warranted by subsequent information and developments. These assessments require judgments concerning matters that are inherently uncertain, such as litigation developments and outcomes, the anticipated outcome of negotiations and the estimated cost of resolving disputes. Consequently, these assessments are estimates, and actual amounts may vary from such estimates. In addition, because such matters are typically resolved over long periods of time, the Company’s assets and liabilities may change over time should the circumstances dictate. The description of the legal proceedings listed below include management’s assessment of those proceedings. Management believes that, based on current information and discussions with the Company’s legal counsel, the ultimate resolution of other matters is not expected to have a material effect on the Company’s consolidated financial position, results of operations or cash flows.
A description of the material pending legal proceedings, other than ordinary routine litigation incidental to the business is as follows:
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 Company has a 45% interest in STP.
The construction of the large-diameter bored tunnel required 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 significantly damaged and was required to be repaired. 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 (material) differing site condition. WSDOT did not accept that finding.
The TBM was 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 Insurers 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 seeking declaratory relief concerning contract interpretation, as well as damages as a result of the Insurers’ breach of their obligations under the terms of the Policy. STP is also asserting extra-contractual and statutory claims
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UNAUDITED

against the Insurers. STP submitted damages to the Insurers in the King County lawsuit in the amount of $532 million. WSDOT is deemed a plaintiff since WSDOT is an insured under the Policy and had filed its own claim for damages. Hitachi Zosen (“Hitachi”), the manufacturer of the TBM, joined the case as a plaintiff for costs incurred to repair the damages to the TBM.
In April and September 2018, rulings received on pre-trial motions limited some of the potential recoveries under the Policy for STP, WSDOT and Hitachi. On August 2, 2021, the Court of Appeals reversed in part certain of those limitations but affirmed other parts of those rulings. On September 15, 2022, the Washington Supreme Court affirmed the decision of the Court of Appeals, which limits recovery of certain damages under the Policy. Based on the rulings of the Court of Appeals, the case will continue for adjudication on the remaining facts and legal issues, including the number of covered occurrences which could increase the amount of available coverage under the Policy and the amount of investigative costs that are subject to the Policy limits. STP also has claims for costs, fees, pre-judgment interest and extra-contractual and statutory claims, which are not subject to the Policy limits. The case has been scheduled for trial commencing September 23, 2024.
In addition, STP has a pending case in the Washington Superior Court against HNTB Corporation (“HNTB”), its design firm on the project, wherein STP alleges that HNTB is liable for providing design services that resulted in the TBM striking the steel pipe described above and for additional steel quantity costs associated with the project. STP’s complaint seeks in excess of $640 million. The case is scheduled for trial to commence on April 27, 2025.
With respect to STP’s direct and indirect claims against the Insurers and HNTB, management has included in receivables an estimate of the total anticipated recovery concluded to be probable.
In March 2016, WSDOT filed a complaint against STP in Thurston County Superior Court alleging breach of contract, seeking $57.2 million in delay-related damages and seeking declaratory relief concerning contract interpretation. STP subsequently filed a counterclaim against WSDOT seeking the same damages in excess of $640 million. The jury trial between STP and WSDOT commenced on October 7, 2019 and concluded on December 13, 2019, with a jury verdict in favor of WSDOT awarding them $57.2 million in damages. The Company recorded the impact of the jury verdict during the fourth quarter of 2019, resulting in a pre-tax charge of $166.8 million, which included $25.7 million for the Company’s 45% proportionate share of the $57.2 million in damages awarded by the jury to WSDOT. The charge was for non-cash write-downs primarily related to the costs and estimated earnings in excess of billings and receivables that the Company previously recorded to reflect its expected recovery in this case.
STP filed a petition for discretionary review by the Washington Supreme Court on July 12, 2022, which was denied by the Supreme Court on October 10, 2022. On October 18, 2022, STP paid the damages and associated interest from the judgment, which included the Company’s proportionate share of $34.6 million. As a result, the lawsuit between STP and WSDOT has concluded.
(12)Share-Based Compensation
As of March 31, 2024, there were 1,457,658 shares of common stock available for grant under the Tutor Perini Corporation Omnibus Incentive Plan. During the three months ended March 31, 2024 and 2023, the Company granted the following share-based instruments: (1) RSUs totaling 30,000 and 590,188, respectively, with weighted-average grant date fair values per unit of $12.68 and $8.66, respectively; (2) cash-settled performance stock units (“CPSUs”) totaling 645,180 and 901,541, respectively, with weighted-average grant date fair values per unit of $19.17 and $13.78, respectively; and (3) deferred cash awards (“DCAs”), including cash-settled stock units, with service-based vesting conditions and payouts indexed to shares of the Company’s common stock totaling 673,855 and 90,000, respectively, with weighted-average grant date fair values per unit of $12.75 and $8.98, respectively.
As of March 31, 2024 and December 31, 2023, the Company recognized liabilities for CPSUs, RSUs with guaranteed minimum payouts and DCAs on the Condensed Consolidated Balance Sheets totaling approximately $7.5 million and $4.9 million, respectively. During the three months ended March 31, 2024, the Company paid approximately $1.0 million, respectively, to settle certain awards.
For the three months ended March 31, 2024 and 2023, the Company recognized, as part of general and administrative expenses, costs for share-based payment arrangements totaling $5.5 million and $3.1 million, respectively. As of March 31, 2024, the balance of unamortized share-based compensation expense was $37.5 million, which is expected to be recognized over a weighted-average period of 2.4 years.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

(13)Employee Pension Plans
The Company has a defined benefit pension plan and an unfunded supplemental retirement plan. Effective June 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 a summary of the net periodic benefit cost for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
(in thousands)20242023
Interest cost$911 $969 
Service cost231 255 
Expected return on plan assets(944)(978)
Recognized net actuarial losses437 413 
Net periodic benefit cost$635 $659 
The Company contributed $0.7 million to its defined benefit pension plan during the three months ended March 31, 2024. The Company expects to contribute an additional $1.8 million in cash by the end of 2024. Due to availability of our prefunded pension balance related to the defined benefit pension plan, the Company was not required to make any cash payments during the three months ended March 31, 2023.
(14)Fair Value Measurements
The fair value hierarchy established by ASC 820, Fair Value Measurement, prioritizes the use of inputs used in valuation techniques into the following three levels:
Level 1 inputs are observable quoted prices in active markets for identical assets or liabilities
Level 2 inputs are observable, either directly or indirectly, but are not Level 1 inputs
Level 3 inputs are unobservable
The following fair value hierarchy table presents the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
As of March 31, 2024As of December 31, 2023
Fair Value HierarchyFair Value Hierarchy
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents(a)
$358,304 $ $ $358,304 $380,564 $ $ $380,564 
Restricted cash(a)
14,749   14,749 14,116   14,116 
Restricted investments(b)
 130,499  130,499  130,287  130,287 
Investments in lieu of retention(c)
28,342 87,614  115,956 19,988 86,961  106,949 
Total$401,395 $218,113 $ $619,508 $414,668 $217,248 $ $631,916 
____________________________________________________________________________________________________
(a)Includes money market funds and short-term investments with maturity dates of three months or less when acquired.
(b)Restricted investments, as of March 31, 2024 and December 31, 2023, consist of available-for-sale (“AFS”) debt securities, which are valued based on pricing models determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
(c)Investments in lieu of retention are included in retention receivable as of March 31, 2024 and December 31, 2023, and are composed of money market funds of $28.3 million and $20.0 million, respectively, and AFS debt securities of $87.6 million and $87.0 million, respectively. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of AFS debt securities are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

Investments in AFS debt securities consisted of the following as of March 31, 2024 and December 31, 2023:
As of March 31, 2024As of December 31, 2023
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
Restricted investments:
Corporate debt securities$101,568 $395 $(2,257)$99,706 $95,903 $762 $(2,202)$94,463 
U.S. government agency securities24,380 4 (1,050)23,334 29,082 18 (1,054)28,046 
Municipal bonds7,899 4 (908)6,995 8,227 5 (914)7,318 
Corporate certificates of deposit495  (31)464 498  (38)460 
Total restricted investments134,342 403 (4,246)130,499 133,710 785 (4,208)130,287 
Investments in lieu of retention:
Corporate debt securities88,134 105 (1,682)86,557 87,601 246 (1,950)85,897 
Municipal bonds824 233  1,057 823 241  1,064 
Total investments in lieu of retention88,958 338 (1,682)87,614 88,424 487 (1,950)86,961 
Total AFS debt securities$223,300 $741 $(5,928)$218,113 $222,134 $1,272 $(6,158)$217,248 
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
UNAUDITED

The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023:
As of March 31, 2024
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$22,242 $(123)$37,507 $(2,134)$59,749 $(2,257)
U.S. government agency securities3,333 (24)14,869 (1,026)18,202 (1,050)
Municipal bonds  6,814 (908)6,814 (908)
Corporate certificates of deposit  465 (31)465 (31)
Total restricted investments25,575 (147)59,655 (4,099)85,230 (4,246)
Investments in lieu of retention:
Corporate debt securities24,714 (125)45,925 (1,557)70,639 (1,682)
Total investments in lieu of retention24,714 (125)45,925 (1,557)70,639 (1,682)
Total AFS debt securities$50,289 $(272)$105,580 $(5,656)$155,869 $(5,928)
As of December 31, 2023
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$4,971 $(3)$40,649 $(2,199)$45,620 $(2,202)
U.S. government agency securities1,280 (4)22,858 (1,050)24,138 (1,054)
Municipal bonds99 (2)7,038 (912)7,137 (914)
Corporate certificates of deposit  460 (38)460 (38)
Total restricted investments6,350 (9)71,005 (4,199)77,355 (4,208)
Investments in lieu of retention:
Corporate debt securities11,398 (55)49,726 (1,895)61,124 (1,950)
Total investments in lieu of retention11,398 (55)49,726 (1,895)61,124 (1,950)
Total AFS debt securities$17,748 $(64)$120,731 $(6,094)$138,479 $(6,158)
The unrealized losses in AFS debt securities as of March 31, 2024 and December 31, 2023 are primarily attributable to market interest rate increases and not a deterioration in credit quality of the issuers. Management evaluated the unrealized losses in AFS debt securities considering factors including credit ratings and other relevant information, which may indicate that contractual cash flows are not expected to occur. Based on the analysis, management determined that credit losses did not exist for AFS debt securities in an unrealized loss position as of March 31, 2024 and December 31, 2023.
It is not considered likely that the Company will be required to sell the investments before full recovery of the amortized cost basis of the AFS debt securities, which may be at maturity. As a result, consistent with the same period in 2023, the Company has not recognized any impairment losses in earnings during the three months ended March 31, 2024.
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TUTOR PERINI CORPORATION AND SUBSIDIARIES