1-7567
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94-1381538
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(Commission File No.)
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(IRS Employer Identification No.)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(c)
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Exhibits
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URS CORPORATION | |||
Dated: August 9, 2011
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By:
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/s/ Reed N. Brimhall | |
Reed N. Brimhall | |||
Vice President, Controller and Chief Accounting Officer | |||
Exhibit No.
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Description
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Contacts:
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||
URS Corporation
Sam Ramraj
Vice President,
Investor Relations
(415) 774-2700
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Sard Verbinnen & Co
Hugh Burns/Jamie Tully/Briana Kelly
(212) 687-8080
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July 1, 2011
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December 31, 2010
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||||||
ASSETS
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||||||
Current assets:
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||||||
Cash and cash equivalents
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$ | 433.8 | $ | 573.8 | ||||
Accounts receivable, including retentions of $65.2 and $69.1, respectively
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1,018.0 | 1,102.8 | ||||||
Costs and accrued earnings in excess of billings on contracts
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1,250.8 | 1,157.1 | ||||||
Less receivable allowances
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(40.5 | ) | (42.8 | ) | ||||
Net accounts receivable
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2,228.3 | 2,217.1 | ||||||
Deferred tax assets
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70.6 | 83.3 | ||||||
Other current assets
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171.3 | 134.8 | ||||||
Total current assets
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2,904.0 | 3,009.0 | ||||||
Investments in and advances to unconsolidated joint ventures
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116.6 | 65.5 | ||||||
Property and equipment at cost, net
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270.8 | 266.1 | ||||||
Intangible assets, net
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557.1 | 514.1 | ||||||
Goodwill
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3,599.8 | 3,393.2 | ||||||
Other assets
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157.5 | 103.5 | ||||||
Total assets
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$ | 7,605.8 | $ | 7,351.4 | ||||
LIABILITIES AND EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion of long-term debt
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$ | 361.8 | $ | 60.5 | ||||
Accounts payable and subcontractors payable, including retentions of $38.4 and $46.5, respectively
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702.6 | 673.9 | ||||||
Accrued salaries and employee benefits
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498.2 | 441.6 | ||||||
Billings in excess of costs and accrued earnings on contracts
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319.0 | 275.8 | ||||||
Other current liabilities
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229.4 | 213.3 | ||||||
Total current liabilities
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2,111.0 | 1,665.1 | ||||||
Long-term debt
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395.9 | 641.3 | ||||||
Deferred tax liabilities
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346.0 | 326.9 | ||||||
Self-insurance reserves
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104.5 | 105.9 | ||||||
Pension and post-retirement benefit obligations
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213.3 | 230.8 | ||||||
Other long-term liabilities
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180.2 | 180.4 | ||||||
Total liabilities
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3,350.9 | 3,150.4 | ||||||
Commitments and contingencies
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||||||||
URS stockholders’ equity:
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||||||||
Preferred stock, authorized 3.0 shares; no shares outstanding
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— | — | ||||||
Common stock, par value $.01; authorized 200.0 shares; 87.7 and 86.9 shares issued, respectively; and 79.7 and 81.9 shares outstanding, respectively
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0.9 | 0.9 | ||||||
Treasury stock, 8.0 and 5.0 shares at cost, respectively
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(348.8 | ) | (212.1 | ) | ||||
Additional paid-in capital
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2,939.3 | 2,924.3 | ||||||
Accumulated other comprehensive loss
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(17.0 | ) | (36.9 | ) | ||||
Retained earnings
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1,569.9 | 1,441.0 | ||||||
Total URS stockholders’ equity
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4,144.3 | 4,117.2 | ||||||
Noncontrolling interests
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110.6 | 83.8 | ||||||
Total stockholders’ equity
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4,254.9 | 4,201.0 | ||||||
Total liabilities and stockholders’ equity
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$ | 7,605.8 | $ | 7,351.4 |
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Three Months Ended
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Six Months Ended
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July 1,
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July 2,
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July 1,
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July 2,
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||||||||||||
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2011
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2010
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2011
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2010
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||||||||||||
Revenues
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$ | 2,360.3 | $ | 2,249.4 | $ | 4,680.1 | $ | 4,456.9 | ||||||||
Cost of revenues
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(2,228.3 | ) | (2,121.7 | ) | (4,431.1 | ) | (4,208.5 | ) | ||||||||
General and administrative expenses
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(19.0 | ) | (13.3 | ) | (41.4 | ) | (33.4 | ) | ||||||||
Acquisition-related expenses
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(1.0 | ) | (4.1 | ) | (1.0 | ) | (4.1 | ) | ||||||||
Equity in income of unconsolidated joint ventures
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38.6 | 24.3 | 76.0 | 48.9 | ||||||||||||
Operating income
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150.6 | 134.6 | 282.6 | 259.8 | ||||||||||||
Interest expense
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(5.1 | ) | (5.1 | ) | (10.2 | ) | (14.4 | ) | ||||||||
Income before income taxes
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145.5 | 129.5 | 272.4 | 245.4 | ||||||||||||
Income tax expense
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(54.9 | ) | (50.3 | ) | (98.9 | ) | (52.5 | ) | ||||||||
Net income including noncontrolling interests
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90.6 | 79.2 | 173.5 | 192.9 | ||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax
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(23.8 | ) | (17.3 | ) | (44.6 | ) | (35.4 | ) | ||||||||
Net income attributable to URS
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$ | 66.8 | $ | 61.9 | $ | 128.9 | $ | 157.5 | ||||||||
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Earnings per share:
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Basic
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$ | 0.87 | $ | 0.76 | $ | 1.66 | $ | 1.94 | ||||||||
Diluted
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$ | 0.86 | $ | 0.76 | $ | 1.65 | $ | 1.93 | ||||||||
Weighted-average shares outstanding:
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||||||||||||||||
Basic
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77.2 | 81.2 | 77.8 | 81.3 | ||||||||||||
Diluted
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77.7 | 81.5 | 78.2 | 81.7 |
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Three Months Ended
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Six Months Ended
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July 1,
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July 2,
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July 1,
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July 2,
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||||||||||||
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2011
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2010
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2011
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2010
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Cash flows from operating activities:
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Net income including noncontrolling interests
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$ | 90.6 | $ | 79.2 | $ | 173.5 | $ | 192.9 | ||||||||
Adjustments to reconcile net income to net cash from operating activities:
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Depreciation and amortization
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20.6 | 19.9 | 40.8 | 39.7 | ||||||||||||
Amortization of intangible assets
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15.2 | 11.1 | 28.2 | 22.2 | ||||||||||||
Amortization of debt issuance costs
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1.6 | 1.9 | 3.2 | 5.0 | ||||||||||||
Normal profit
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2.4 | — | 3.4 | — | ||||||||||||
Provision for doubtful accounts
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5.3 | 1.2 | 6.6 | 1.9 | ||||||||||||
Deferred income taxes
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(0.8 | ) | 21.5 | 24.8 | 28.3 | |||||||||||
Stock-based compensation
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10.4 | 10.4 | 22.4 | 20.8 | ||||||||||||
Excess tax benefits from stock-based compensation
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(0.1 | ) | (0.4 | ) | (0.8 | ) | (3.3 | ) | ||||||||
Equity in income of unconsolidated joint ventures
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(38.6 | ) | (24.2 | ) | (76.0 | ) | (48.9 | ) | ||||||||
Dividends received from unconsolidated joint ventures
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29.5 | 17.7 | 41.4 | 35.0 | ||||||||||||
Changes in operating assets, liabilities and other, net of effects of consolidation and/or deconsolidation of joint ventures and business acquisitions:
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Accounts receivable and costs and accrued earnings in excess of billings on contracts
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24.4 | 156.3 | 23.3 | 9.2 | ||||||||||||
Other current assets
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(9.2 | ) | (26.5 | ) | (13.2 | ) | (19.2 | ) | ||||||||
Advances to unconsolidated joint ventures
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5.5 | 3.1 | (3.8 | ) | (1.5 | ) | ||||||||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
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(31.2 | ) | (78.0 | ) | (30.0 | ) | (131.0 | ) | ||||||||
Billings in excess of costs and accrued earnings on contracts
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15.9 | (0.9 | ) | 19.2 | (31.3 | ) | ||||||||||
Other long-term liabilities
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9.6 | (0.3 | ) | (2.2 | ) | 7.9 | ||||||||||
Other assets
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0.9 | (5.9 | ) | 2.1 | (7.6 | ) | ||||||||||
Total adjustments and changes
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61.4 | 106.9 | 89.4 | (72.8 | ) | |||||||||||
Net cash from operating activities
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152.0 | 186.1 | 262.9 | 120.1 | ||||||||||||
Cash flows from investing activities:
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||||||||||||||||
Payments for business acquisitions, net of cash acquired, and for exercised shares in connection with a prior business acquisition
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(275.9 | ) | — | (278.8 | ) | — | ||||||||||
Changes in cash related to consolidation and/or deconsolidation of joint ventures
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— | — | — | 20.7 | ||||||||||||
Proceeds from disposal of property and equipment
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0.7 | 2.4 | 2.2 | 3.4 | ||||||||||||
Investments in unconsolidated joint ventures
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(4.8 | ) | (2.0 | ) | (12.0 | ) | (4.5 | ) | ||||||||
Changes in restricted cash
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— | — | (0.3 | ) | (0.2 | ) | ||||||||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
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(20.3 | ) | (11.4 | ) | (31.3 | ) | (18.8 | ) | ||||||||
Maturity of short-term investment
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— | 0.2 | — | 30.2 | ||||||||||||
Net cash from investing activities
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(300.3 | ) | (10.8 | ) | (320.2 | ) | 30.8 |
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Three Months Ended
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Six Months Ended
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July 1,
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July 2,
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July 1,
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July 2,
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||||||||||||
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2011
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2010
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2011
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2010
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Cash flows from financing activities:
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Borrowing from revolving line of credit
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100.0 | — | 100.0 | — | ||||||||||||
Payments on revolving line of credit and long-term debt
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(52.3 | ) | (2.5 | ) | (54.4 | ) | (5.1 | ) | ||||||||
Net borrowings (payments) under lines of credit and short-term notes
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13.3 | (0.3 | ) | 5.8 | (0.6 | ) | ||||||||||
Net change in overdrafts
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50.9 | 1.1 | 32.3 | (3.5 | ) | |||||||||||
Payments on capital lease obligations
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(2.0 | ) | (1.7 | ) | (4.1 | ) | (3.4 | ) | ||||||||
Excess tax benefits from stock-based compensation
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0.1 | 0.4 | 0.8 | 3.3 | ||||||||||||
Proceeds from employee stock purchases and exercises of stock options
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4.6 | 5.2 | 6.1 | 6.3 | ||||||||||||
Distributions to noncontrolling interests
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(23.0 | ) | (27.8 | ) | (38.6 | ) | (40.0 | ) | ||||||||
Contributions and advances from noncontrolling interests
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2.9 | 1.0 | 6.1 | 9.0 | ||||||||||||
Repurchases of common stock
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— | — | (136.7 | ) | (48.4 | ) | ||||||||||
Net cash from financing activities
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94.5 | (24.6 | ) | (82.7 | ) | (82.4 | ) | |||||||||
Net change in cash and cash equivalents
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(53.8 | ) | 150.7 | (140.0 | ) | 68.5 | ||||||||||
Cash and cash equivalents at beginning of period
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487.6 | 638.4 | 573.8 | 720.6 | ||||||||||||
Cash and cash equivalents at end of period
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$ | 433.8 | $ | 789.1 | $ | 433.8 | $ | 789.1 | ||||||||
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Supplemental information:
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Interest paid
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$ | 3.7 | $ | 5.8 | $ | 7.8 | $ | 12.2 | ||||||||
Taxes paid
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$ | 35.4 | $ | 3.8 | $ | 92.6 | $ | 6.6 | ||||||||
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Supplemental schedule of non-cash investing and financing activities:
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Equipment acquired with capital lease obligations and equipment note obligations
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$ | 2.7 | $ | 1.6 | $ | 5.1 | $ | 3.4 | ||||||||
Purchase of equity securities unsettled as of July 2, 2010
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$ | — | $ | 42.5 | $ | — | $ | 42.5 |
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Six Months Ended July 2, 2010
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(In millions, except per share data)
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Net Income
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Diluted EPS
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Before the impact of the reduction in the effective income tax rate
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$ | 115.4 | $ | 1.41 | ||||
Impact on net income of the reduction in the effective income tax rate
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42.1 | .52 | ||||||
Net income
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$ | 157.5 | $ | 1.93 |
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Infrastructure
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Energy
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&
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Federal
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&
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(In billions)
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Environment
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Services
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Construction
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Total
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As of July 1, 2011
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Backlog
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$ | 3.4 | $ | 5.4 | $ | 7.3 | $ | 16.1 | ||||||||
Option years
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0.3 | 2.8 | 2.0 | 5.1 | ||||||||||||
Indefinite delivery contracts
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2.9 | 3.4 | 1.2 | 7.5 | ||||||||||||
Total book of business
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$ | 6.6 | $ | 11.6 | $ | 10.5 | $ | 28.7 | ||||||||
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As of December 31, 2010
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Backlog
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$ | 3.3 | $ | 6.0 | $ | 7.3 | $ | 16.6 | ||||||||
Option years
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0.4 | 2.3 | 2.1 | 4.8 | ||||||||||||
Indefinite delivery contracts
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3.4 | 3.2 | 1.1 | 7.7 | ||||||||||||
Total book of business
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$ | 7.1 | $ | 11.5 | $ | 10.5 | $ | 29.1 |
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July 1,
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December 31,
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||||||
(In billions)
|
2011
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2010
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Backlog by market sector:
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Power
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$ | 1.3 | $ | 1.4 | ||||
Infrastructure
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3.0 | 2.6 | ||||||
Industrial and commercial
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1.6 | 1.3 | ||||||
Federal
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10.2 | 11.3 | ||||||
Total backlog
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$ | 16.1 | $ | 16.6 |
Three Months Ended
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Six Months Ended
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(In millions)
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July 1,
|
July 2,
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July 1,
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July 2,
|
||||||||||||
2011
|
2010
|
2011
|
2010
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|||||||||||||
Revenues
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||||||||||||
Infrastructure & Environment (1)
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$ | 929.5 | $ | 751.1 | $ | 1,839.4 | $ | 1,526.2 | ||||||||
Federal Services (2)
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668.6 | 652.0 | 1,249.8 | 1,289.6 | ||||||||||||
Energy & Construction
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810.5 | 859.7 | 1,676.8 | 1,667.7 | ||||||||||||
Inter-segment, eliminations and other
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(48.3 | ) | (13.4 | ) | (85.9 | ) | (26.6 | ) | ||||||||
Total revenues
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$ | 2,360.3 | $ | 2,249.4 | $ | 4,680.1 | $ | 4,456.9 | ||||||||
Operating income
|
||||||||||||||||
Infrastructure & Environment (1)
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$ | 54.3 | $ | 54.6 | $ | 109.9 | $ | 105.9 | ||||||||
Federal Services (2)
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45.8 | 37.6 | 81.6 | 73.4 | ||||||||||||
Energy & Construction
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69.5 | 55.7 | 132.5 | 113.9 | ||||||||||||
General and administrative expenses
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(19.0 | ) | (13.3 | ) | (41.4 | ) | (33.4 | ) | ||||||||
Total operating income
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$ | 150.6 | $ | 134.6 | $ | 282.6 | $ | 259.8 |
(1)
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The operating results of Scott Wilson were included in the three and six months ended July 1, 2011, but not in the corresponding periods ended July 2, 2010, as we completed the acquisition in September 2010.
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(2)
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The operating results of Apptis were included in the three and six months ended July 1, 2011, but not in the corresponding periods ended July 2, 2010, as we completed the acquisition in June 2011.
|
Three months ended July 1, 2011 (In millions)
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Power
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Infrastructure
|
Federal
|
Industrial and Commercial
|
Total
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|||||||||||||||
Infrastructure & Environment (1)
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$ | 48.4 | $ | 396.1 | $ | 150.2 | $ | 316.9 | $ | 911.6 | ||||||||||
Federal Services (2)
|
— | — | 668.4 | — | 668.4 | |||||||||||||||
Energy & Construction
|
207.9 | 82.5 | 341.3 | 148.6 | 780.3 | |||||||||||||||
Total
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$ | 256.3 | $ | 478.6 | $ | 1,159.9 | $ | 465.5 | $ | 2,360.3 | ||||||||||
Six months ended July 1, 2011 (In millions)
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Power
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Infrastructure
|
Federal
|
Industrial and Commercial
|
Total
|
|||||||||||||||
Infrastructure & Environment (1)
|
$ | 101.2 | $ | 790.2 | $ | 310.3 | $ | 607.5 | $ | 1,809.2 | ||||||||||
Federal Services (2)
|
— | — | 1,249.3 | — | 1,249.3 | |||||||||||||||
Energy & Construction
|
455.4 | 188.5 | 664.8 | 312.9 | 1,621.6 | |||||||||||||||
Total
|
$ | 556.6 | $ | 978.7 | $ | 2,224.4 | $ | 920.4 | $ | 4,680.1 | ||||||||||
Three months ended July 2, 2010 (In millions)
|
Power
|
Infrastructure
|
Federal
|
Industrial and Commercial
|
Total
|
|||||||||||||||
Infrastructure & Environment (1)
|
$ | 36.6 | $ | 333.7 | $ | 160.0 | $ | 212.4 | $ | 742.7 | ||||||||||
Federal Services (2)
|
— | — | 651.8 | — | 651.8 | |||||||||||||||
Energy & Construction
|
241.9 | 147.2 | 296.1 | 169.7 | 854.9 | |||||||||||||||
Total
|
$ | 278.5 | $ | 480.9 | $ | 1,107.9 | $ | 382.1 | $ | 2,249.4 | ||||||||||
Six months ended July 2, 2010 (In millions)
|
Power
|
Infrastructure
|
Federal
|
Industrial and Commercial
|
Total
|
|||||||||||||||
Infrastructure & Environment (1)
|
$ | 68.3 | $ | 690.9 | $ | 335.0 | $ | 415.3 | $ | 1,509.5 | ||||||||||
Federal Services (2)
|
— | — | 1,288.5 | — | 1,288.5 | |||||||||||||||
Energy & Construction
|
500.3 | 261.2 | 556.9 | 340.5 | 1,658.9 | |||||||||||||||
Total
|
$ | 568.6 | $ | 952.1 | $ | 2,180.4 | $ | 755.8 | $ | 4,456.9 |
(1)
|
The operating results of Scott Wilson were included in the three and six months ended July 1, 2011, but not in the corresponding periods ended July 2, 2010 as we completed the acquisition in September 2010.
|
(2)
|
The operating results of Apptis were included in the three and six months ended July 1, 2011, but not in the corresponding periods ended July 2, 2010 as we completed the acquisition in June 2011.
|