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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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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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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99.1
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URS CORPORATION
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Dated: May 7, 2013
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By:
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/s/ Reed N. Brimhall | |
Reed N. Brimhall
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Vice President and Chief Accounting Officer
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Exhibit No.
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Description
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99.1
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Contacts:
URS Corporation
Sam Ramraj
Vice President,
Investor Relations
(415) 774-2700
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Sard Verbinnen & Co
Jamie Tully/Delia Cannan
(212) 687-8080
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March 29, 2013
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December 28, 2012
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 248.8 | $ | 314.5 | ||||
Accounts receivable, including retentions of $129.1 and $114.4, respectively
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1,522.2 | 1,554.8 | ||||||
Costs and accrued earnings in excess of billings on contracts
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1,326.7 | 1,384.3 | ||||||
Less receivable allowances
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(67.8 | ) | (69.7 | ) | ||||
Net accounts receivable
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2,781.1 | 2,869.4 | ||||||
Deferred tax assets
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73.6 | 67.6 | ||||||
Inventory
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60.1 | 61.5 | ||||||
Other current assets
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186.9 | 204.2 | ||||||
Total current assets
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3,350.5 | 3,517.2 | ||||||
Investments in and advances to unconsolidated joint ventures
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272.2 | 278.3 | ||||||
Property and equipment at cost, net
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680.5 | 687.5 | ||||||
Intangible assets, net
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655.5 | 692.2 | ||||||
Goodwill
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3,229.9 | 3,247.1 | ||||||
Other long-term assets
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435.4 | 364.2 | ||||||
Total assets
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$ | 8,624.0 | $ | 8,786.5 | ||||
LIABILITIES AND EQUITY
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Current liabilities:
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Current portion of long-term debt
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$ | 83.0 | $ | 71.8 | ||||
Accounts payable and subcontractors payable, including retentions of $31.9 and $32.3, respectively
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680.7 | 803.5 | ||||||
Accrued salaries and employee benefits
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535.2 | 558.8 | ||||||
Billings in excess of costs and accrued earnings on contracts
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264.2 | 289.1 | ||||||
Other current liabilities
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259.5 | 277.8 | ||||||
Total current liabilities
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1,822.6 | 2,001.0 | ||||||
Long-term debt
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2,002.4 | 1,992.5 | ||||||
Deferred tax liabilities
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329.5 | 328.3 | ||||||
Self-insurance reserves
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133.1 | 129.8 | ||||||
Pension and post-retirement benefit obligations
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288.5 | 300.9 | ||||||
Other long-term liabilities
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291.1 | 271.0 | ||||||
Total liabilities
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4,867.2 | 5,023.5 | ||||||
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 $.01; authorized 200.0 shares; 89.1 and 88.9 shares issued, respectively; and 76.0 and 76.8 shares outstanding, respectively
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0.9 | 0.9 | ||||||
Treasury stock, 13.1 and 12.1 shares at cost, respectively
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(540.0 | ) | (494.9 | ) | ||||
Additional paid-in capital
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3,021.0 | 3,003.9 | ||||||
Accumulated other comprehensive loss
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(145.6 | ) | (113.2 | ) | ||||
Retained earnings
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1,280.3 | 1,224.4 | ||||||
Total URS stockholders’ equity
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3,616.6 | 3,621.1 | ||||||
Noncontrolling interests
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140.2 | 141.9 | ||||||
Total stockholders’ equity
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3,756.8 | 3,763.0 | ||||||
Total liabilities and stockholders’ equity
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$ | 8,624.0 | $ | 8,786.5 |
Three Months Ended
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March 29,
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March 30,
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2013
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2012
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Revenues
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$ | 2,802.5 | $ | 2,361.5 | ||||
Cost of revenues
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(2,651.3 | ) | (2,203.2 | ) | ||||
General and administrative expenses
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(22.7 | ) | (20.0 | ) | ||||
Acquisition-related expenses
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— | (5.6 | ) | |||||
Equity in income (loss) of unconsolidated joint ventures
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24.1 | 28.7 | ||||||
Operating income (loss)
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152.6 | 161.4 | ||||||
Interest expense
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(21.1 | ) | (9.8 | ) | ||||
Other income (expenses)
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(2.5 | ) | 2.5 | |||||
Income (loss) before income taxes
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129.0 | 154.1 | ||||||
Income tax expense
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(42.2 | ) | (48.6 | ) | ||||
Net income (loss) including noncontrolling
interests
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86.8 | 105.5 | ||||||
Noncontrolling interests in income of consolidated subsidiaries
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(14.9 | ) | (25.8 | ) | ||||
Net income (loss) attributable to URS
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$ | 71.9 | $ | 79.7 | ||||
Earnings per share:
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Basic
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$ | 0.97 | $ | 1.08 | ||||
Diluted
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$ | 0.96 | $ | 1.07 | ||||
Weighted-average shares outstanding:
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Basic
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74.4 | 74.0 | ||||||
Diluted
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74.9 | 74.3 | ||||||
Cash dividends declared per share
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$ | 0.21 | $ | 0.20 |
Three Months Ended
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March 29,
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March 30,
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2013
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2012
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Cash flows from operating activities:
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Net income (loss) including noncontrolling interests
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$ | 86.8 | $ | 105.5 | ||||
Adjustments to reconcile net income (loss) to net cash from operating activities:
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Depreciation and amortization
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39.9 | 20.0 | ||||||
Amortization of intangible assets
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27.6 | 17.2 | ||||||
Amortization of debt issuance costs and discount/premium
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0.1 | 0.8 | ||||||
Foreign currency (gains) losses related to foreign currency derivatives and intercompany loans
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2.5 | (2.5 | ) | |||||
Normal profit
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(0.6 | ) | 1.4 | |||||
Provision for doubtful accounts
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1.1 | 1.4 | ||||||
Loss (gain) on disposal of property and equipment
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(1.0 | ) | — | |||||
Deferred income taxes
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(6.9 | ) | 2.1 | |||||
Stock-based compensation
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11.0 | 11.3 | ||||||
Excess tax benefits from stock-based compensation
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— | (0.4 | ) | |||||
Equity in income of unconsolidated joint ventures
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(24.1 | ) | (28.7 | ) | ||||
Dividends received from unconsolidated joint ventures
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23.1 | 18.6 | ||||||
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
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Accounts receivable and costs and accrued earnings in excess of billings on contracts
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88.8 | (68.8 | ) | |||||
Inventory
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1.4 | (0.5 | ) | |||||
Other current assets
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3.0 | (5.4 | ) | |||||
Advances to unconsolidated joint ventures
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— | (5.7 | ) | |||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
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(129.9 | ) | (20.1 | ) | ||||
Billings in excess of costs and accrued earnings on contracts
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(12.5 | ) | (65.5 | ) | ||||
Other long-term liabilities
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35.2 | (4.1 | ) | |||||
Other long-term assets
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(95.8 | ) | 2.7 | |||||
Total adjustments and changes
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(37.1 | ) | (126.2 | ) | ||||
Net cash from operating activities
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49.7 | (20.7 | ) | |||||
Cash flows from investing activities:
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Proceeds from disposal of property and equipment
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3.4 | 9.5 | ||||||
Investments in unconsolidated joint ventures
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(0.1 | ) | (4.0 | ) | ||||
Changes in restricted cash
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1.9 | 1.7 | ||||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
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(25.0 | ) | (17.8 | ) | ||||
Net cash from investing activities
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(19.8 | ) | (10.6 | ) |
Three Months Ended
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March 29,
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March 30,
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2013
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2012
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Cash flows from financing activities:
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Borrowings from long-term debt
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— | 998.9 | ||||||
Payments on long-term debt
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(1.2 | ) | (1.6 | ) | ||||
Borrowings from revolving line of credit
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255.0 | 50.0 | ||||||
Payments on revolving line of credit
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(234.5 | ) | (73.6 | ) | ||||
Net payments under foreign lines of credit and short-term notes
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(2.3 | ) | (8.9 | ) | ||||
Net change in overdrafts
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(31.4 | ) | 0.6 | |||||
Payments on capital lease obligations
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(4.5 | ) | (2.6 | ) | ||||
Payments of debt issuance costs
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— | (8.7 | ) | |||||
Excess tax benefits from stock-based compensation
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— | 0.4 | ||||||
Proceeds from employee stock purchases and exercises of stock options
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6.3 | 1.0 | ||||||
Distributions to noncontrolling interests
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(15.7 | ) | (15.5 | ) | ||||
Contributions and advances from noncontrolling interests
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0.8 | 0.5 | ||||||
Dividends paid
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(14.9 | ) | — | |||||
Repurchases of common stock
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(45.1 | ) | (40.0 | ) | ||||
Net cash from financing activities
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(87.5 | ) | 900.5 | |||||
Net change in cash and cash equivalents
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(57.6 | ) | 869.2 | |||||
Effect of foreign exchange rate changes on cash and cash equivalents
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(8.1 | ) | 4.3 | |||||
Cash and cash equivalents at beginning of period
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314.5 | 436.0 | ||||||
Cash and cash equivalents at end of period
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$ | 248.8 | $ | 1,309.5 | ||||
Supplemental information:
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Interest paid
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$ | 6.3 | $ | 7.3 | ||||
Taxes paid
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$ | 10.2 | $ | 8.8 | ||||
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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$ | 17.8 | $ | 3.9 | ||||
Cash dividends declared but not paid
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$ | 16.0 | $ | 15.2 |
Three Months Ended
March 30, 2012
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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 acquisition-related expenses
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$ | 83.1 | $ | 1.12 | ||||
Acquisition-related expenses, net of tax
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(3.4 | ) | (.05 | ) | ||||
Net income and diluted EPS
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$ | 79.7 | $ | 1.07 |
(In millions)
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Infrastructure &
Environment
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Federal
Services
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Energy &
Construction
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Oil & Gas
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Total
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As of March 29, 2013
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Backlog
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$ | 3,173.0 | $ | 3,067.5 | $ | 5,878.0 | $ | 679.4 | $ | 12,797.9 | ||||||||||
Option years
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178.7 | 2,665.8 | 2,019.1 | — | 4,863.6 | |||||||||||||||
Indefinite delivery contracts
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2,375.9 | 3,232.3 | 236.0 | 655.5 | 6,499.7 | |||||||||||||||
Total book of business
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$ | 5,727.6 | $ | 8,965.6 | $ | 8,133.1 | $ | 1,334.9 | $ | 24,161.2 | ||||||||||
As of December 28, 2012
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Backlog
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$ | 3,028.4 | $ | 3,476.9 | $ | 5,947.1 | $ | 823.8 | $ | 13,276.2 | ||||||||||
Option years
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197.3 | 2,728.1 | 2,056.8 | — | 4,982.2 | |||||||||||||||
Indefinite delivery contracts
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2,572.4 | 3,238.7 | 236.0 | 611.7 | 6,658.8 | |||||||||||||||
Total book of business
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$ | 5,798.1 | $ | 9,443.7 | $ | 8,239.9 | $ | 1,435.5 | $ | 24,917.2 |
March 29,
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December 28,
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(In millions)
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2013
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2012
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Backlog by market sector:
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Federal
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$ | 5,966.5 | $ | 6,546.5 | ||||
Infrastructure
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2,983.9 | 2,957.6 | ||||||
Oil & Gas
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1,453.6 | 1,461.3 | ||||||
Power
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1,417.4 | 1,416.1 | ||||||
Industrial
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976.5 | 894.7 | ||||||
Total backlog
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$ | 12,797.9 | $ | 13,276.2 |
Three Months Ended
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(In millions)
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March 29,
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March 30,
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2013
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2012
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Revenues
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Infrastructure & Environment
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$ | 933.4 | $ | 964.2 | ||||
Federal Services
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678.2 | 717.1 | ||||||
Energy & Construction
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664.8 | 725.7 | ||||||
Oil & Gas (1)
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583.8 | — | ||||||
Inter-segment eliminations
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(57.7 | ) | (45.5 | ) | ||||
Total revenues
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$ | 2,802.5 | $ | 2,361.5 | ||||
Operating income (loss)
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Infrastructure & Environment
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$ | 41.3 | $ | 45.9 | ||||
Federal Services
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99.1 | 93.0 | ||||||
Energy & Construction
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27.1 | 48.1 | ||||||
Oil & Gas (1)
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7.8 | — | ||||||
Corporate
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(22.7 | ) | (25.6 | ) | ||||
Total operating income (loss)
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$ | 152.6 | $ | 161.4 |
(1)
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The operating results of Flint were included in the three months ended March 29, 2013, but not in the corresponding period ended March 30, 2012, as we completed the acquisition in May 2012.
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(In millions)
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Federal
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Infrastructure
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Oil and Gas
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Power
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Industrial
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Total
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Three months ended March 29, 2013
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Infrastructure & Environment
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$ | 163.6 | $ | 383.0 | $ | 141.2 | $ | 45.1 | $ | 172.4 | $ | 905.3 | ||||||||||||
Federal Services
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677.9 | — | — | — | — | 677.9 | ||||||||||||||||||
Energy & Construction
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226.9 | 53.2 | 89.2 | 167.8 | 109.5 | 646.6 | ||||||||||||||||||
Oil & Gas (1)
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— | — | 572.7 | — | — | 572.7 | ||||||||||||||||||
Total
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$ | 1,068.4 | $ | 436.2 | $ | 803.1 | $ | 212.9 | $ | 281.9 | $ | 2,802.5 | ||||||||||||
Three months ended March 30, 2012
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Infrastructure & Environment
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$ | 179.3 | $ | 384.3 | $ | 124.7 | $ | 55.4 | $ | 183.5 | $ | 927.2 | ||||||||||||
Federal Services
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717.0 | — | — | — | — | 717.0 | ||||||||||||||||||
Energy & Construction
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277.0 | 53.7 | 38.5 | 236.6 | 111.5 | 717.3 | ||||||||||||||||||
Oil & Gas (1)
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— | — | — | — | — | — | ||||||||||||||||||
Total
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$ | 1,173.3 | $ | 438.0 | $ | 163.2 | $ | 292.0 | $ | 295.0 | $ | 2,361.5 |
(1)
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The operating results of Flint were included in the three months ended March 29, 2013, but not in the corresponding period ended March 30, 2012, as we completed the acquisition in May 2012.
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