10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2016

OR

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

For the transition period from                  to                 

Commission file number: 001-33225

Great Lakes Dredge & Dock Corporation

(Exact name of registrant as specified in its charter)

Delaware	20-5336063
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2122 York Road, Oak Brook, IL	60523
(Address of principal executive offices)	(Zip Code)

(630) 574-3000

(Registrant’s telephone number, including area code)

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  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

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

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

As of July 29, 2016, 60,747,587 shares of the Registrant’s Common Stock, par value $.0001 per share, were outstanding.

Great Lakes Dredge & Dock Corporation and Subsidiaries

Quarterly Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

For the Quarterly Period ended June 30, 2016

INDEX

		Page
	Part I Financial Information (Unaudited)	3
Item 1	Financial Statements	3
	Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015	3
	Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2016 and 2015	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months ended June 30, 2016 and 2015	5
	Condensed Consolidated Statements of Equity for the Six Months Ended June 30, 2016 and 2015	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and 2015	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4	Controls and Procedures	38
	Part II Other Information	39
Item 1	Legal Proceedings	39
Item 1A	Risk Factors	39
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3	Defaults Upon Senior Securities	39
Item 4	Mine Safety Disclosures	39
Item 5	Other Information	39
Item 6	Exhibits	40
	Signature	41
	Exhibit Index	42

2

PART I — Financial Information

Item 1. Financial Statements.

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share amounts)  

	June 30,			December 31,
	2016			2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	21,236		$	14,184
Accounts receivable—net		110,940			130,777
Contract revenues in excess of billings		74,915			81,195
Inventories		35,053			35,963
Prepaid expenses and other current assets		76,107			67,614
Total current assets		318,251			329,733
PROPERTY AND EQUIPMENT—Net		416,484			430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		85,544			86,004
INVENTORIES—Noncurrent		46,867			41,646
INVESTMENTS IN JOINT VENTURES		5,293			3,761
OTHER		7,470			6,770
TOTAL	$	879,909		$	898,124
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	97,088		$	118,846
Accrued expenses		62,179			72,277
Billings in excess of contract revenues		4,971			7,061
Revolving credit facility		45,000			—
Current portion of long term debt		10,469			7,506
Total current liabilities		219,707			205,690
7 3/8% SENIOR NOTES		272,498			271,998
REVOLVING CREDIT FACILITY		—			20,000
NOTES PAYABLE		47,821			53,792
DEFERRED INCOME TAXES		70,979			74,006
OTHER		19,669			20,465
Total liabilities		630,674			645,951
COMMITMENTS AND CONTINGENCIES (Note 9)
EQUITY:
Common stock—$.0001 par value; 90,000 authorized, 61,026 and 60,709 shares issued; 60,748 and 60,431 shares outstanding at June 30, 2016 and December 31, 2015, respectively.		6			6
Treasury stock, at cost		(1,433	)		(1,433	)
Additional paid-in capital		285,506			283,247
Accumulated deficit		(33,418	)		(27,664	)
Accumulated other comprehensive loss		(1,426	)		(1,983	)
Total equity		249,235			252,173
TOTAL	$	879,909		$	898,124

See notes to unaudited condensed consolidated financial statements.

3

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Contract revenues	$	192,192		$	238,877		$	355,311		$	413,434
Costs of contract revenues		167,936			206,590			311,065			370,465
Gross profit		24,256			32,287			44,246			42,969
General and administrative expenses		19,751			15,543			39,840			33,491
Impairment of goodwill		—			2,750			—			2,750
(Gain) loss on sale of assets—net		687			5			677			(3	)
Operating income		3,818			13,989			3,729			6,731
Interest expense—net		(5,903	)		(5,567	)		(11,624	)		(11,197	)
Equity in earnings (loss) of joint ventures		128			(2,616	)		13			(3,714	)
Other expense		(518	)		(618	)		(1,281	)		(1,059	)
Income (loss) before income taxes		(2,475	)		5,188			(9,163	)		(9,239	)
Income tax (provision) benefit		756			(2,464	)		3,409			3,573
Net income (loss)	$	(1,719	)	$	2,724		$	(5,754	)	$	(5,666	)
Basic earnings (loss) per share	$	(0.03	)	$	0.05		$	(0.10	)	$	(0.09	)
Basic weighted average shares		60,711			60,473			60,609			60,369
Diluted earnings (loss) per share	$	(0.03	)	$	0.05		$	(0.10	)	$	(0.09	)
Diluted weighted average shares		60,711			60,924			60,609			60,369

See notes to unaudited condensed consolidated financial statements.

4

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in thousands)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016			2015		2016			2015
Net income (loss)	$	(1,719	)	$	2,724	$	(5,754	)	$	(5,666	)
Currency translation adjustment—net of tax (1)		148			53		557			(755	)
Comprehensive income (loss)	$	(1,571	)	$	2,777	$	(5,197	)	$	(6,421	)

(1) Net of income tax (provision) benefit of $(99) and $(35) for the three months ended June 30, 2016 and 2015, respectively and $(370) and $500 for the six months ended June 30, 2016 and 2015, respectively.

See notes to unaudited condensed consolidated financial statements.

5

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Equity

(Unaudited)

(in thousands)

																	Accumulated
	Sharesof				Shares of						Additional						Other
	Common		Common		Treasury			Treasury			Paid-In			Accumulated			Comprehensive
	Stock		Stock		Stock			Stock			Capital			Deficit			Loss			Total
BALANCE—January 1, 2016		60,709	$	6		(278	)	$	(1,433	)	$	283,247		$	(27,664	)	$	(1,983	)	$	252,173
Share-based compensation		102		—		—			—			2,006			—			—			2,006
Vesting of restricted stock units, including impact of shares withheld for taxes		71		—		—			—			(162	)		—			—			(162	)
Exercise of options and purchases from employee stock plans		144		—		—			—			415			—			—			415
Net loss		—		—		—			—			—			(5,754	)		—			(5,754	)
Other comprehensive income—net of tax		—		—		—			—			—			—			557			557
BALANCE—June 30, 2016		61,026	$	6		(278	)	$	(1,433	)	$	285,506		$	(33,418	)	$	(1,426	)	$	249,235

															Accumulated
	Shares of				Shares of				Additional						Other
	Common		Common		Treasury		Treasury		Paid-In			Accumulated			Comprehensive
	Stock		Stock		Stock		Stock		Capital			Deficit			Loss			Total
BALANCE—January 1, 2015		60,170	$	6		—	$	—	$	278,166		$	(21,475	)	$	(734	)	$	255,963
Share-based compensation		93		—		—		—		2,058			—			—			2,058
Vesting of restricted stock units, including impact of shares withheld for taxes		98		—		—		—		(265	)		—			—			(265	)
Exercise of options and purchases from employee stock plans		160		—		—		—		846			—			—			846
Excess income tax benefit from share-based compensation		—		—		—		—		(13	)		—			—			(13	)
Net loss		—		—		—		—		—			(5,666	)		—			(5,666	)
Other comprehensive loss—net of tax		—		—		—		—		—			—			(755	)		(755	)
BALANCE—June 30, 2015		60,521	$	6		—	$	—	$	280,792		$	(27,141	)	$	(1,489	)	$	252,168

See notes to unaudited condensed consolidated financial statements.

6

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Six Months Ended
	June 30,
	2016			2015
OPERATING ACTIVITIES:
Net loss	$	(5,754	)	$	(5,666	)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
Depreciation and amortization		28,820			33,025
Equity in (earnings) loss of joint ventures		(3,815	)		4,939
Cash distributions from joint ventures		1,233			—
Deferred income taxes		(2,657	)		(3,659	)
(Gain) loss on sale of assets		677			(3	)
Impairment of goodwill		—			2,750
Gain on adjustment of contingent consideration		—			(8,444	)
Amortization of deferred financing fees		1,249			1,212
Unrealized net gain from mark-to-market valuations of derivatives		(5,605	)		(2,629	)
Unrealized foreign currency gain		(244	)		(789	)
Share-based compensation expense		2,006			2,058
Excess income tax benefit from share-based compensation		—			13
Changes in assets and liabilities:
Accounts receivable		19,553			5,644
Contract revenues in excess of billings		6,604			(34,625	)
Inventories		(4,311	)		(291	)
Prepaid expenses and other current assets		(4,162	)		1,418
Accounts payable and accrued expenses		(23,456	)		1,126
Billings in excess of contract revenues		(2,108	)		(750	)
Other noncurrent assets and liabilities		(770	)		(2,210	)
Cash provided by (used in) operating activities		7,260			(6,881	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(32,150	)		(36,830	)
Proceeds from dispositions of property and equipment		10,318			115
Cash used in investing activities		(21,832	)		(36,715	)

7

	Six Months Ended
	June 30,
	2016			2015
FINANCING ACTIVITIES:
Deferred financing fees		—			(29	)
Repayments of long term note payable		(531	)		—
Taxes paid on settlement of vested share awards		(162	)		(265	)
Repayments of term loan facility		(2,500	)		(2,500	)
Repayments of equipment debt		(708	)		(506	)
Proceeds from equipment debt		—			410
Exercise of options and purchases from employee stock plans		415			846
Excess income tax benefit from share-based compensation		—			(13	)
Borrowings under revolving loans		91,500			79,000
Repayments of revolving loans		(66,500	)		(61,000	)
Net cash provided by financing activities		21,514			15,943
Effect of foreign currency exchange rates on cash and cash equivalents		110			(40	)
Net increase (decrease) in cash and cash equivalents		7,052			(27,693	)
Cash and cash equivalents at beginning of period		14,184			42,389
Cash and cash equivalents at end of period	$	21,236		$	14,696
Supplemental Cash Flow Information
Cash paid for interest	$	12,815		$	12,296
Cash paid (refunded) for income taxes	$	(331	)	$	987
Non-cash Investing and Financing Activities
Property and equipment purchased but not yet paid	$	4,289		$	2,690
Property and equipment purchased on capital leases and equipment notes	$	—		$	1,825
Property and equipment purchased on notes payable	$	—		$	15,569

See notes to unaudited condensed consolidated financial statements.

8

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(dollar amounts in thousands, except per share amounts or as otherwise noted)

1. Basis of presentation

The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Great Lakes Dredge & Dock Corporation and Subsidiaries (the “Company” or “Great Lakes”) and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015 and cash flows for the six months ended June 30, 2016 and 2015 have been included.

The components of costs of contract revenues include labor, equipment (including depreciation, maintenance, insurance and long-term rentals), subcontracts, fuel, supplies, short-term rentals and project overhead. Hourly labor is generally hired on a project-by-project basis. Costs of contract revenues vary significantly depending on the type and location of work performed and assets utilized.

The Company’s cost structure includes significant annual equipment-related costs, including depreciation, maintenance, insurance and long-term rentals. These costs have averaged approximately 21% of total costs of contract revenues over the prior three years. During the year, both equipment utilization and the timing of fixed cost expenditures fluctuate significantly. Accordingly, the Company allocates these fixed equipment costs to interim periods in proportion to revenues recognized over the year, to better match revenues and expenses. Specifically, at each interim reporting date the Company compares actual revenues earned to date on its dredging contracts to expected annual revenues and recognizes equipment costs on the same proportionate basis. In the fourth quarter, any over or under allocated equipment costs are recognized such that the expense for the year equals actual equipment costs incurred during the year.

The Company has three operating segments: dredging, Terra Contracting Services, LLC (“Terra”) and Great Lakes Environmental & Infrastructure, LLC (“GLEI”), previously referred to as Magnus Pacific, LLC, which were aggregated into two reportable segments: dredging and environmental & infrastructure, previously referred to as environmental & remediation. As Terra and GLEI have similarity in economic margins, services, production processes, customer types, distribution methods and regulatory environment, they were aggregated into one reporting segment. There has been no change in the Company’s identification of operating segments and reportable segments. The Company has determined that the operating segments are the Company’s three reporting units. Due to a decline in the overall financial performance and declining cash flows in the Terra Contracting Services, LLC (“Terra”) reporting unit, the Company concluded there was a triggering event that required an interim impairment test for the reporting unit in the second quarter of 2015 and recorded a goodwill impairment charge of $2,750 during the quarter ended June 30, 2015. This impairment of goodwill is discussed in Note 6. The Company performed its most recent annual test of impairment as of July 1, 2015 for the remaining goodwill with no indication of impairment as of the test date. The Company will perform its next scheduled annual test of goodwill in the third quarter of 2016.

The condensed consolidated results of operations and comprehensive income for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements.

9

In February 2016, the FASB issued Accounting Standard Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). The Board issued this update to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-02 on its financial statements.

In November 2015, the FASB issued Accounting Standard Update No. 2015-17 (“ASU 2015-17”), Income Taxes: Balance Sheet Classifications of Deferred Taxes (Topic 740) which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in the balance sheet. The update is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. As of December 31, 2015, the Company elected to early adopt this ASU 2015-17 on a prospective basis and therefore, prior years were not retrospectively adjusted.

In April 2015, the FASB issued Accounting Standard Update No. 2015-03 (“ASU 2015-03”), Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for fiscal years beginning after December 15, 2015, and is required to be applied retrospectively. The Company adopted this standard in the first quarter of 2016 on a retrospective basis. As a result, the Company presented $3,502 of unamortized debt issuance costs that had been included in other assets in the consolidated balance sheet as of December 31, 2015 as direct deductions from the carrying amounts of the related debt liabilities.

In May 2014, the FASB issued Accounting Standard Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606), which supersedes the existing revenue recognition requirements. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 has been deferred to be effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, which will be its first quarter of fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements.

2. Earnings per share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed similarly to basic earnings per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. For the three months ended June 30, 2016, the dilutive effect of 651 thousand stock options and restricted stock units were excluded from the diluted weighted-average common shares outstanding as the Company incurred a loss during this period. For the six months ended June 30, 2016 and 2015, the dilutive effect of 523 thousand and 488 thousand stock options and restricted stock units, respectively, were excluded from the diluted weighted-average common shares outstanding as the Company incurred a loss during these periods. For the three and six months ended June 30, 2016, 1,603 thousand and 1,694 thousand stock options and restricted stock units were excluded from the calculation of diluted earnings per share based on the application of the treasury stock method, as such stock options and restricted stock units were determined to be anti-dilutive. Similarly, for the three months ended June 30, 2015, 1,019 thousand stock options and restricted stock units were excluded from the calculation of diluted earnings per share based on the application of the treasury stock method.

The computations for basic and diluted earnings (loss) per share are as follows:

	Three Months Ended					Six Months Ended
(shares in thousands)	June 30,					June 30,
	2016			2015		2016			2015
Net income (loss)	$	(1,719	)	$	2,724	$	(5,754	)	$	(5,666	)
Weighted-average common shares outstanding — basic		60,711			60,473		60,609			60,369
Effect of stock options and restricted stock units		—			451		—			—
Weighted-average common shares outstanding — diluted		60,711			60,924		60,609			60,369
Earnings (loss) per share —basic	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)
Earnings (loss) per share — diluted	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)

10

3. Accounts receivable and contracts in progress

Accounts receivable at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Completed contracts	$	23,742		$	37,111
Contracts in progress		74,240			70,787
Retainage		17,392			27,203
		115,374			135,101
Allowance for doubtful accounts		(454	)		(754	)
Total accounts receivable—net	$	114,920		$	134,347
Current portion of accounts receivable—net	$	110,940		$	130,777
Long-term accounts receivable and retainage		3,980			3,570
Total accounts receivable—net	$	114,920		$	134,347

The components of contracts in progress at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Costs and earnings in excess of billings:
Costs and earnings for contracts in progress	$	360,254		$	230,159
Amounts billed		(310,461	)		(176,283	)
Costs and earnings in excess of billings for contracts in progress		49,793			53,876
Costs and earnings in excess of billings for completed contracts		25,122			27,319
Total contract revenues in excess of billings	$	74,915		$	81,195
Billings in excess of costs and earnings:
Amounts billed	$	(285,086	)	$	(207,550	)
Costs and earnings for contracts in progress		280,115			200,489
Total billings in excess of contract revenues	$	(4,971	)	$	(7,061	)

The Company has $17,910 included in costs in excess of billings that are dependent upon the sale of environmental credits earned for a wetland mitigation project. The sale of these credits is subject to market factors that could cause the amount of expected revenue to be higher or lower than currently estimated. If the amount of proceeds received from the sale of the environmental credits is lower than our expectations, we could sustain a loss of part or all of the costs incurred related to this project. Additionally, the timing of realization may be impacted by the timing of a delay in the sale of these environmental credits, resulting in a longer period to recover our investment.

11

4. Accrued expenses 

Accrued expenses at June 30, 2016 and December 31, 2015 are as follows:

	June 30,		December 31,
	2016		2015
Insurance	$	16,858	$	16,291
Accumulated deficit in joint ventures		14,359		15,408
Interest		9,154		8,743
Payroll and employee benefits		9,076		13,317
Percentage of completion adjustment		1,769		2,837
Income and other taxes		1,519		3,726
Fuel hedge contracts		—		4,388
Other		9,444		7,567
Total accrued expenses	$	62,179	$	72,277

5. Long-term debt

Credit Agreement

On June 4, 2012, the Company entered into a senior revolving credit agreement, as subsequently amended, (the “Credit Agreement”) with certain financial institutions from time to time party thereto as lenders, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and an Issuing Lender, Bank of America, N.A., as Syndication Agent and PNC Bank, National Association, BMO Harris Bank N.A. and Fifth Third Bank, as Co-Documentation Agents. The Credit Agreement provides for a senior revolving credit facility in an aggregate principal amount of up to $199,000, multicurrency borrowings up to a $50,000 sublimit and swingline loans up to a $10,000 sublimit. The Credit Agreement also includes an incremental loans feature that will allow the Company to increase the senior revolving credit facility by an aggregate principal amount of up to $15,000. This feature is subject to lenders providing incremental commitments for such increase, provided that no default or event of default exists, and the Company being in pro forma compliance with the existing financial covenants, both before and after giving effect to the increase, and subject to other standard conditions. The Credit Agreement is collateralized by a substantial portion of the Company’s operating equipment with a net book value at June 30, 2016 of $135,813.

On June 24, 2016, the Company entered into the seventh amendment to the Credit Agreement which modified the Credit Agreement to allow for the sale of the vessel known as the Reem Island and provided for the collateral release to effect the sale. The reduction in the collateral pool resulted in a reduction in the size of the Credit Facility, from $210,000 to $199,000. In addition, the net cash proceeds of the sale of the Reem Island, $10,000, were applied to the revolving loans outstanding.

On June 30, 2016 the Company entered into the eighth amendment (the “Eighth Amendment”) to the Credit Agreement which increased the margin applicable to interest rates, letters of credit and commitment fees thereunder. Depending on the Company’s consolidated total leverage ratio (as defined in the Credit Agreement and further described below), borrowings under the revolving credit facility will bear interest at the option of the Company at either the LIBOR rate plus a margin between 1.50% and 3.50% or a base rate plus a margin between 0.50% and 2.50%.

In addition, the Eighth Amendment modifies the consolidated total leverage covenant contained in the Credit Agreement and adds a maximum capital expenditures covenant. The Company may not permit the consolidated total leverage ratio to be greater than (i) 5.00 to 1.00 for the fiscal quarter ending June 30, 2016, (ii) 4.75 to 1.00 for the fiscal quarter ending September 30, 2016 and (iii) 4.50 to 1.00 for any fiscal quarter ending thereafter. Further, the Company and its subsidiaries may not allow its aggregate capital expenditures to exceed (i) $105,000 for the fiscal year ending December 31, 2016 and (ii) $45,000 during any fiscal year thereafter.

Last, the Eighth Amendment requires the Company and its subsidiaries party to the Credit Agreement to pledge their respective inventory as security for the revolving credit facility.

The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type. The Credit Agreement also contains customary events of default (including non-payment of principal or interest on any material debt and breaches of covenants) as well as events of default relating to certain actions by the Company’s surety bonding provider. The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.25 to 1.00.

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The obligations of Great Lakes under the Credit Agreement are unconditionally guaranteed, on a joint and several basis, by each existing and subsequently acquired or formed material direct and indirect domestic subsidiary of the Company. During a year, the Company frequently borrows and repays amounts under its revolving credit facility. As of June 30, 2016, the Company had $45,000 of borrowings on the revolver and $53,424 of letters of credit outstanding, resulting in $100,576 of availability under the Credit Agreement. At June 30, 2016, the Company was in compliance with its various financial covenants under the Credit Agreement.

Term loan facility

On November 4, 2014, the Company entered into a senior secured term loan facility consisting of a term loan in an aggregate principal amount of $50,000 (the “Term Loan Facility”) pursuant to a Loan and Security Agreement, as subsequently amended, (the “Loan Agreement”) by and among the lenders party thereto from time to time and Bank of America, N.A., as administrative agent. The Company borrowed an aggregate principal amount of $47,360 in 2014 and an additional $2,640 in 2015. The proceeds from the Term Loan Facility will be used for the working capital and general corporate purposes of the Company, including to repay borrowings under the Credit Agreement made to finance the construction of the Company’s dual mode articulated tug/barge trailing suction hopper dredge (the “ATB”).

The Term Loan Facility has a term of 5 years. The borrowings under the Term Loan Facility bear interest at a fixed rate of 4.655% per annum. If an event of default occurs under the Loan Agreement, the interest rate will increase by 2.00% per annum during the continuance of such event of default.

The Term Loan Facility provides for monthly amortization payments, payable in arrears, which commenced on December 4, 2014, at an annual amount of (i) approximately 10% of the principal amount of the Term Loan Facility during the first two years of the term, (ii) approximately 20% of the principal amount of the Term Loan Facility during the third and fourth years of the term, and (iii) approximately 25% of the principal amount of the Term Loan Facility during the final year of the term, with the remainder due on the maturity date of the facility. In addition, the Company has usual and customary mandatory prepayment provisions and may optionally prepay the Term Loan Facility in whole or in part at any time, subject to a minimum prepayment amount.

The Loan Agreement includes representations, affirmative and negative covenants and events of default customary for financings of this type and includes the same financial covenants that are currently set forth in the Credit Agreement. The Term Loan Facility is collateralized by a portion of the Company’s operating equipment with a net book value at June 30, 2016 of $48,926.

Senior notes

The Company has outstanding $275,000 of 7.375% senior notes due February 2019. There is an optional redemption on all notes. The redemption prices are 103.7% in 2015, 101.8% in 2016 and 100% in any year following, until the notes mature in 2019.  Interest is paid semi-annually and principal is due at maturity.

Other

The Company enters into note arrangements to finance certain vessels and ancillary equipment.  During the first quarter of 2015, the Company financed the $15,569 acquisition of a vessel previously under an operating lease with a note bearing interest at 5.75% to maturity in 2023.  The current portion of all equipment notes is $2,418. The long term portion is $15,896 and is included in notes payable or other long term liabilities.

6. Impairment of goodwill

The Company’s annual goodwill impairment test is conducted in the third quarter of each year and interim evaluations are performed when the Company determines that a triggering event has occurred that would more likely than not reduce the fair value of goodwill below its carrying value. Due to a decline in the overall financial performance and declining cash flows in the Terra reporting unit, the Company concluded there was a triggering event that required an interim impairment test for the reporting unit in the second quarter of 2015.

The Company performed step one of the goodwill impairment test as of June 30, 2015, which compared the fair value of the Terra reporting unit against its carrying amount, including goodwill. In deriving the fair value of the Terra reporting unit, the Company used both a market-based approach and an income-based approach. Under the income approach, the fair value of the reporting unit is based on the present value of estimated future cash flows. Under the market approach, the Company uses the guideline public company method by applying estimated market-based enterprise value multiples to the reporting unit’s estimated revenue and Adjusted

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EBITDA from continuing operations. Based on the first step analysis, management concluded that the fair value of the Terra reporting unit was less than its carrying value; therefore, the Company performed step two of the goodwill impairment analysis.  

Step two of the goodwill impairment analysis measures the impairment charge by allocating the reporting unit’s fair value to all of the assets and liabilities of the reporting unit in a hypothetical analysis that calculates implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as a loss on impairment of goodwill.

Management determined that the Terra reporting unit’s implied fair value of goodwill was below the carrying value as of June 30, 2015. As a result, the Company recorded an impairment charge of $2,750 in the second quarter of 2015.

The change in the carrying value of goodwill for the period ended June 30, 2015 is as follows:

	DredgingSegment		Environmental & InfrastructureSegment			Total
Balance — December 31, 2014	$	76,576	$	9,750		$	86,326
Impairment of goodwill		—		(2,750	)		(2,750	)
BALANCE—June 30, 2015	$	76,576	$	7,000		$	83,576

7. Fair value measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has been established by GAAP that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance describes three levels of inputs that may be used to measure fair value:

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

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. At times, the Company holds certain derivative contracts that it uses to manage foreign currency risk or commodity price risk. The Company does not hold or issue derivatives for speculative or trading purposes. The fair values of these financial instruments are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	At June 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	1,217	$	—	$	1,217	$	—

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			Fair Value Measurements at Reporting Date Using
Description	At December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	4,388	$	—	$	4,388	$	—

Fuel hedge contracts

The Company is exposed to certain market risks, primarily commodity price risk as it relates to the diesel fuel purchase requirements, which occur in the normal course of business. The Company enters into heating oil commodity swap contracts to hedge the risk that fluctuations in diesel fuel prices will have an adverse impact on cash flows associated with its domestic dredging contracts. The Company’s goal is to hedge approximately 80% of the fuel requirements for work in domestic backlog.

As of June 30, 2016, the Company was party to various swap arrangements to hedge the price of a portion of its diesel fuel purchase requirements for work in its backlog to be performed through May 2017. As of June 30, 2016, there were 11.0 million gallons remaining on these contracts which represent approximately 80% of the Company’s forecasted domestic fuel purchases through May 2017. Under these swap agreements, the Company will pay fixed prices ranging from $1.02 to $1.71 per gallon.

At June 30, 2016 the fair value asset of the fuel hedge contracts was estimated to be $1,217 and is recorded in prepaid expenses and other current assets. At December 31, 2015, the fair value liability of the fuel hedge contracts was estimated to be $4,388 and is recorded in accrued expenses. Changes in the fair value of fuel hedge contracts being recorded in the Statement of Operations are recorded as cost of contract revenues. The fair values of fuel hedges are corroborated using inputs that are readily observable in public markets; therefore, the Company determines fair value of these fuel hedges using Level 2 inputs.

The Company is exposed to counterparty credit risk associated with non-performance of its various derivative instruments. The Company’s risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher. In addition, all counterparties are monitored on a continuous basis.

The fair value of the fuel hedge contracts outstanding as of June 30, 2016 and December 31, 2015 is as follows:

		Fair Value at
		June 30,		December 31,
	Balance Sheet Location	2016		2015
Asset derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Prepaid expenses and other current assets	$	1,217	$	—
Liability derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Accrued expenses	$	—	$	4,388

Assets and liabilities measured at fair value on a nonrecurring basis  

All other nonfinancial assets and liabilities measured at fair value in the financial statements on a nonrecurring basis are subject to fair value measurements and disclosures. Nonfinancial assets and liabilities included in our condensed consolidated balance sheets and measured on a nonrecurring basis consist of goodwill and long-lived assets, including other acquired intangibles. Goodwill and long-lived assets are measured at fair value to test for and measure impairment, if any, at least annually for goodwill or when necessary for both goodwill and long-lived assets.

The Company estimated the fair value of our Terra reporting unit for our goodwill impairment test by using both a market-based approach and an income-based approach. The income approach is dependent on a number of factors, including estimates of future market growth trends, forecasted revenues and expenses based upon historical operating data, appropriate discount rates and other variables. The market approach measures the value of a reporting unit through comparison to comparable companies. Under the

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market approach, the Company uses the guideline public company method by applying estimated market-based enterprise value multiples to the reporting unit’s estimated revenue and Adjusted EBITDA from continuing operations. The Company analyzed companies that performed similar services or are considered peers.

An impairment of goodwill was recorded in the amount of $2,750 in the second quarter of 2015. The fair value of goodwill was determined using quantitative models that contained significant unobservable inputs. See Note 6.

	FairValue Measurements Using Significant Unobservable Inputs (Level 3)
	2015
Goodwill
Balance at January 1,	$	86,326
Impairment of goodwill		(2,750	)
Balance at December 31,	$	83,576

Accumulated other comprehensive income (loss)

Changes in the components of the accumulated balances of other comprehensive income (loss) are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Cumulative translation adjustments—net of tax	$	148	$	53	$	557	$	(755	)

Other financial instruments

The carrying value of financial instruments included in current assets and current liabilities approximates fair value due to the short-term maturities of these instruments. Based on timing of the cash flows and comparison to current market interest rates, the carrying value of our senior revolving credit agreement approximates fair value. The Term Loan Facility approximates fair value based upon stable market interest rates and Company credit ratings from inception to year end. In January 2011 and again in November 2014, the Company issued a total of $275,000 of 7.375% senior notes due February 1, 2019, which were outstanding at June 30, 2016 (See Note 5). The senior notes are senior unsecured obligations of the Company and its subsidiaries that guarantee the senior notes. The fair value of the senior notes was $263,313 at June 30, 2016, which is a Level 1 fair value measurement as the senior notes value was obtained using quoted prices in active markets. It is impracticable to determine the fair value of outstanding letters of credit or performance, bid and payment bonds due to uncertainties as to the amount and timing of future obligations, if any.

8. Share-based compensation

The Company’s 2007 Long-Term Incentive Plan permits the granting of stock options, stock appreciation rights, restricted stock and restricted stock units to its employees and directors for up to 5.8 million shares of common stock.

In March 2016, the Company granted 716 thousand restricted stock units to certain employees pursuant to the plan. In addition, all non-employee directors on the Company’s board of directors are paid a portion of their board-related compensation in stock grants. Compensation cost charged to expense related to share-based compensation arrangements was $1,079 and $1,001 for the three months ended June 30, 2016 and 2015, respectively, and $2,006 and $2,058 for the six months ended June 30, 2016 and 2015, respectively.

9. Commitments and contingencies

Commercial commitments

Performance and bid bonds are customarily required for dredging and marine construction projects, as well as some environmental & infrastructure projects. The Company has a bonding agreement with Zurich American Insurance Company (“Zurich”) under which the Company can obtain performance, bid and payment bonds (the “Zurich Bonding Agreement”). In April 2015, we entered into additional bonding agreements with ACE Holdings, Inc., Argonaut Insurance Company, Berkley Insurance Company, and Liberty Mutual Insurance Company (collectively, the “Additional Sureties”). The bonding agreements with the Additional Sureties contain similar terms and conditions as the Zurich Bonding Agreement. The Company also has outstanding bonds with Travelers Casualty and Surety Company of America. Bid bonds are generally obtained for a percentage of bid value and amounts outstanding typically range

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from $1,000 to $10,000. At June 30, 2016, the Company had outstanding performance bonds with a notional amount of approximately $1,067,719, of which $41,082 relates to projects from the Company’s historical demolition business. The revenue value remaining in backlog related to these projects totaled approximately $488,122.

In connection with the sale of our historical demolition business, the Company was obligated to keep in place the surety bonds on pending demolition projects for the period required under the respective contract for a project.

Certain foreign projects performed by the Company have warranty periods, typically spanning no more than one to three years beyond project completion, whereby the Company retains responsibility to maintain the project site to certain specifications during the warranty period. Generally, any potential liability of the Company is mitigated by insurance, shared responsibilities with consortium partners, and/or recourse to owner-provided specifications.

Legal proceedings and other contingencies

As is customary with negotiated contracts and modifications or claims to competitively bid contracts with the federal government, the government has the right to audit the books and records of the Company to ensure compliance with such contracts, modifications, or claims, and the applicable federal laws. The government has the ability to seek a price adjustment based on the results of such audit. Any such audits have not had, and are not expected to have, a material impact on the financial position, operations, or cash flows of the Company.

Various legal actions, claims, assessments and other contingencies arising in the ordinary course of business are pending against the Company and certain of its subsidiaries. These matters are subject to many uncertainties, and it is possible that some of these matters could ultimately be decided, resolved, or settled adversely to the Company. Although the Company is subject to various claims and legal actions that arise in the ordinary course of business, except as described below, the Company is not currently a party to any material legal proceedings or environmental claims. The Company records an accrual when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe any of these proceedings, individually or in the aggregate, would be expected to have a material effect on results of operations, cash flows or financial condition.

On April 23, 2014, the Company completed the sale of NASDI, LLC (“NASDI”) and Yankee Environmental Services, LLC (“Yankee”), which together comprised the Company’s historical demolition business, to a privately owned demolition company. Under the terms of the divestiture, the Company retained certain pre-closing liabilities relating to the disposed business. Certain of these liabilities and a legal action brought by the Company to enforce the buyer’s obligations under the sale agreement are described below.

In 2009, NASDI received a letter stating that the Attorney General for the Commonwealth of Massachusetts is investigating alleged violations of the Massachusetts Solid Waste Act. The Company believes that the Massachusetts Attorney General is investigating waste disposal activities at an allegedly unpermitted disposal site owned by a third party with whom NASDI contracted for the disposal of waste materials in 2007 and 2008. Per the Massachusetts Attorney General’s request, NASDI executed a tolling agreement regarding the matter in 2009 and engaged in further discussions with the Massachusetts Attorney General’s office. On or about February 5, 2016, the parties agreed to a tentative settlement in the amount of $275, without any admission of liability and subject to final documentation. On June 3, 2016, a Consent Judgment was entered as a final judgment in Massachusetts Superior Court to implement that settlement.

On January 14, 2015, the Company and our subsidiary, NASDI Holdings, LLC, brought an action in the Delaware Court of Chancery to enforce the terms of the Company's agreement to sell NASDI and Yankee. Under the terms of the agreement, the Company received cash of $5,309 and retained the right to receive additional proceeds based upon future collections of outstanding accounts receivable and work in process existing at the date of close. The Company seeks specific performance of buyer’s obligation to collect and to remit the additional proceeds, and other related relief. Defendants have filed counterclaims alleging that the Company misrepresented the quality of its contracts and receivables prior to the sale. The Company denies defendants’ allegations and intends to vigorously defend against the counterclaims.

Except as noted above, the Company has not accrued any amounts with respect to the above matters, as the Company does not believe, based on information currently known to it, that a loss relating to these matters is probable, and an estimate of a range of potential losses relating to these matters cannot reasonably be made.

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10. Investments 

The Company owns 50% of TerraSea Environmental Solutions (“TerraSea”) as a joint venture. TerraSea is engaged in the environmental services business through its ability to remediate contaminated soil and dredged sediment treatment. At June 30, 2016 and December 31, 2015, the Company had net advances to TerraSea of $24,782 and $27,592, respectively, which are recorded in other current assets. The Company has an accumulated deficit in joint ventures, which represents losses recognized to date in excess of our investment in TerraSea, of $14,359 and $14,271 at June 30, 2016 and December 31, 2015, respectively, which is presented in accrued expenses. The Company has commenced the wind down of TerraSea with its joint venture partner. The Company believes its net advances to TerraSea are ultimately recoverable either through the operations of the joint venture or as an obligation of our joint venture partner. The joint venture partner has notified the Company that it disagrees with the amount of net advances to TerraSea. The Company believes that its joint venture partner remains obligated for its share of net advances, and any future advances necessary to complete TerraSea’s remaining project. During July 2015, the Company proposed taking a larger percent of the loss on a TerraSea project. Based on this proposal, the Company accrued $1,506 at June 30, 2015 representing the estimated share of additional losses to be assumed. The joint venture partner and the Company are continuing discussions. If those discussions do not lead to a resolution satisfactory to both parties, the joint venture partner and the Company will go to binding arbitration as stipulated by the TerraSea operating agreement. To the extent that net advances are not fully recoverable, additional losses may result in future periods. The Company and its joint venture partner remained obligated to fund TerraSea through the completion of its remaining project. The remaining TerraSea project was substantially complete at June 30, 2016.

11. Business dispositions

On April 23, 2014, the Company entered into an agreement and completed the sale of NASDI and Yankee, its two former subsidiaries that comprised our historical demolition business.  Under the terms of the agreement, the Company received cash of $5,309 and retained the right to receive additional proceeds based upon future collections of outstanding accounts receivable and work in process existing at the date of close, including recovery of outstanding claims for additional compensation from customers, net of future payments of accounts payable existing at the date of close, including any future payments of obligations associated with outstanding claims.  In the fourth quarter of 2013, the Company recorded a preliminary loss on disposal of assets held for sale in discontinued operations. The loss on disposal is subject to change based on the value of additional proceeds received on the working capital existing at the date of disposition.  The amount and timing of the working capital settlement and the amount and timing of the realization of additional net proceeds may be impacted by the litigation with the buyer of the historical demolition business. However, management believes that the ultimate resolution of these matters will not be material to the Company’s consolidated financial position or results of operations.

Subsequent to the end of the quarter, the Company entered into a definitive agreement to sell the assets associated with certain services lines of the environmental & infrastructure segment’s business, excluding the assets supporting the remediation service line.

12. Segment information

The Company and its subsidiaries currently operate in two reportable segments: dredging and environmental & infrastructure, previously referred to as the environment & remediation segment. The Company’s financial reporting systems present various data for management to run the business, including profit and loss statements prepared according to the segments presented. Management uses operating income to evaluate performance between the two segments. Segment information for the periods presented is provided as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Dredging
Contract revenues	$	153,661		$	190,046		$	298,674		$	344,174
Operating income		10,624			18,115			21,209			25,989
Environmental & infrastructure
Contract revenues	$	39,782		$	49,926		$	58,872		$	71,478
Operating loss		(6,806	)		(4,126	)		(17,480	)		(19,258	)
Intersegment revenues	$	(1,251	)	$	(1,095	)	$	(2,235	)	$	(2,218	)
Total
Contract revenues	$	192,192		$	238,877		$	355,311		$	413,434
Operating income		3,818			13,989			3,729			6,731

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Foreign dredging revenue of $11,683 and $13,192 for the three and six months ended June 30, 2016, respectively, was attributable to work done in the Middle East. Foreign dredging revenue for the three and six months ended June 30, 2015 was $47,539 and $89,238, respectively.

The majority of the Company’s long-lived assets are marine vessels and related equipment. At any point in time, the Company may employ certain assets outside of the U.S., as needed, to perform work on the Company’s foreign projects.

13. Subsidiary guarantors

The Company’s long-term debt at June 30, 2016 includes $275,000 of 7.375% senior notes due February 1, 2019. The Company’s obligations under these senior unsecured notes are guaranteed by the Company’s 100% owned domestic subsidiaries. Such guarantees are full, unconditional and joint and several.

The following supplemental financial information sets forth for the Company’s subsidiary guarantors (on a combined basis), the Company’s non-guarantor subsidiaries (on a combined basis) and Great Lakes Dredge & Dock Corporation, exclusive of its subsidiaries (“GLDD Corporation”):

(i) balance sheets as of June 30, 2016 and December 31, 2015;

(ii) statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015; and

(iii) statements of cash flows for the six months ended June 30, 2016 and 2015.

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GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2016
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	20,303		$	931	$	2	$	—		$	21,236
Accounts receivable — net		110,844			96		—		—			110,940
Contract revenues in excess of billings		72,873			2,042		—		—			74,915
Inventories		35,053			—		—		—			35,053
Prepaid expenses and other current assets		75,644			265		198		—			76,107
Total current assets		314,717			3,334		200		—			318,251
PROPERTY AND EQUIPMENT—Net		416,476			8		—		—			416,484
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		85,544			—		—		—			85,544
INVENTORIES — Noncurrent		46,867			—		—		—			46,867
INVESTMENTS IN JOINT VENTURES		5,293			—		—		—			5,293
RECEIVABLES FROM AFFILIATES		10,321			6,524		82,176		(99,021	)		—
INVESTMENTS IN SUBSIDIARIES		3,539			—		627,171		(630,710	)		—
OTHER		6,787			1		682		—			7,470
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	96,990		$	98	$	—	$	—		$	97,088
Accrued expenses		52,248			614		9,317		—			62,179
Revolving Credit Facility		—			—		45,000		—			45,000
Billings in excess of contract revenues		4,856			115		—		—			4,971
Current portion of long term debt		1,441			—		9,028		—			10,469
Total current liabilities		155,535			827		63,345		—			219,707
7 3/8% SENIOR NOTES		—			—		272,498		—			272,498
NOTES PAYABLE		256			—		47,565		—			47,821
DEFERRED INCOME TAXES		(783	)		—		71,762		—			70,979
PAYABLES TO AFFILIATES		88,088			5,268		5,665		(99,021	)		—
OTHER		19,510			—		159		—			19,669
Total liabilities		262,606			6,095		460,994		(99,021	)		630,674
TOTAL EQUITY		626,938			3,772		249,235		(630,710	)		249,235
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909

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GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2015
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	12,035		$	2,147	$	2	$	—		$	14,184
Accounts receivable — net		129,978			799		—		—			130,777
Contract revenues in excess of billings		79,477			1,718		—		—			81,195
Inventories		35,963			—		—		—			35,963
Prepaid expenses and other current assets		66,919			218		477		—			67,614
Total current assets		324,372			4,882		479		—			329,733
PROPERTY AND EQUIPMENT—Net		430,192			18		—		—			430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		86,004			—		—		—			86,004
INVENTORIES — Noncurrent		41,646			—		—		—			41,646
INVESTMENTS IN JOINT VENTURES		3,761			—		—		—			3,761
RECEIVABLES FROM AFFILIATES		18,326			6,009		70,738		(95,073	)		—
INVESTMENTS IN SUBSIDIARIES		3,706			—		621,984		(625,690	)		—
OTHER		6,702			3		65		—			6,770
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	118,619		$	227	$	—	$	—		$	118,846
Accrued expenses		62,861			509		8,907		—			72,277
Billings in excess of contract revenues		6,964			97		—		—			7,061
Current portion of long term debt		1,424			—		6,082		—			7,506
Total current liabilities		189,868			833		14,989		—			205,690
7 3/8% SENIOR NOTES		—			—		271,998		—			271,998
REVOLVING CREDIT FACILITY		—			—		20,000		—			20,000
NOTE PAYABLE		323			—		53,469		—			53,792
DEFERRED INCOME TAXES		(783	)		—		74,789		—			74,006
PAYABLES TO AFFILIATES		85,859			3,505		5,709		(95,073	)		—
OTHER		20,326			—		139		—			20,465
Total liabilities		295,593			4,338		441,093		(95,073	)		645,951
TOTAL EQUITY		619,116			6,574		252,173		(625,690	)		252,173
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124

21

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	192,709		$	—		$	—		$	(517	)	$	192,192
Costs of contract revenues		(167,005	)		(1,448	)		—			517			(167,936	)
Gross profit		25,704			(1,448	)		—			—			24,256
OPERATING EXPENSES:
General and administrative expenses		19,806			—			(55	)		—			19,751
Loss on sale of assets—net		687			—			—			—			687
Operating income (loss)		5,211			(1,448	)		55			—			3,818
Interest expense—net		(184	)		—			(5,719	)		—			(5,903	)
Equity in earnings of subsidiaries		(96	)		—			3,190			(3,094	)		—
Equity in earnings of joint ventures		128			—			—			—			128
Other expense		(518	)		—			—			—			(518	)
Income (loss) before income taxes		4,541			(1,448	)		(2,474	)		(3,094	)		(2,475	)
Income tax benefit		1			—			755			—			756
Net income (loss)	$	4,542		$	(1,448	)	$	(1,719	)	$	(3,094	)	$	(1,719	)
Comprehensive income (loss)	$	4,542		$	(1,300	)	$	(1,571	)	$	(3,242	)	$	(1,571	)

22

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	235,151		$	4,318		$	—		$	(592	)	$	238,877
Costs of contract revenues		(203,184	)		(3,998	)		—			592			(206,590	)
Gross profit		31,967			320			—			—			32,287
OPERATING EXPENSES:
General and administrative expenses		15,543			—			—			—			15,543
Impairment of goodwill		2,750			—			—			—			2,750
Loss on sale of assets—net		5			—			—			—			5
Operating income		13,669			320			—			—			13,989
Interest expense—net		40			—			(5,607	)		—			(5,567	)
Equity in earnings of subsidiaries		—			—			10,696			(10,696	)		—
Equity in loss of joint ventures		(2,616	)		—			—			—			(2,616	)
Other expense		(618	)		—			—			—			(618	)
Income before income taxes		10,475			320			5,089			(10,696	)		5,188
Income tax provision		—			(99	)		(2,365	)		—			(2,464	)
Net income	$	10,475		$	221		$	2,724		$	(10,696	)	$	2,724
Comprehensive income	$	10,475		$	274		$	2,777		$	(10,749	)	$	2,777

23

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	356,288		$	—		$	—		$	(977	)	$	355,311
Costs of contract revenues		(309,188	)		(2,854	)		—			977			(311,065	)
Gross profit		47,100			(2,854	)		—			—			44,246
OPERATING EXPENSES:
General and administrative expenses		39,891			4			(55	)		—			39,840
Loss on sale of assets—net		677			—			—			—			677
Operating income (loss)		6,532			(2,858	)		55			—			3,729
Interest expense—net		(365	)		—			(11,259	)		—			(11,624	)
Equity in earnings of subsidiaries		(178	)		—			2,041			(1,863	)		—
Equity in earnings of joint ventures		13			—			—			—			13
Other expense		(1,273	)		(8	)		—			—			(1,281	)
Income (loss) before income taxes		4,729			(2,866	)		(9,163	)		(1,863	)		(9,163	)
Income tax benefit		—			—			3,409			—			3,409
Net income (loss)	$	4,729		$	(2,866	)	$	(5,754	)	$	(1,863	)	$	(5,754	)
Comprehensive income (loss)	$	4,729		$	(2,309	)	$	(5,197	)	$	(2,420	)	$	(5,197	)

24

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	407,505		$	7,510		$	—		$	(1,581	)	$	413,434
Costs of contract revenues		(364,388	)		(7,658	)		—			1,581			(370,465	)
Gross profit		43,117			(148	)		—			—			42,969
OPERATING EXPENSES:
General and administrative expenses		33,491			—			—			—			33,491
Impairment of goodwill		2,750			—			—			—			2,750
Gain on sale of assets—net		(3	)		—			—			—			(3	)
Operating income (loss)		6,879			(148	)		—			—			6,731
Interest expense—net		(259	)		—			(10,938	)		—			(11,197	)
Equity in earnings of subsidiaries		4			—			1,519			(1,523	)		—
Equity in loss of joint ventures		(3,714	)		—			—			—			(3,714	)
Other income		(1,052	)		(7	)		—			—			(1,059	)
Income (loss) before income taxes		1,858			(155	)		(9,419	)		(1,523	)		(9,239	)
Income tax (provision) benefit		—			(180	)		3,753			—			3,573
Net income (loss)	$	1,858		$	(335	)	$	(5,666	)	$	(1,523	)	$	(5,666	)
Comprehensive income (loss)	$	1,858		$	(1,090	)	$	(6,421	)	$	(768	)	$	(6,421	)

25

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Cash provided by (used in) operating activities	$	19,388		$	(2,210	)	$	(9,918	)	$	—		$	7,260
INVESTING ACTIVITIES:
Purchases of property and equipment		(32,150	)		—			—			—			(32,150	)
Proceeds from dispositions of property and equipment		10,318			—			—			—			10,318
Net change in accounts with affiliates		13,734			—			—			(13,734	)		—
Net cash flows used in investing activities		(8,098	)		—			—			(13,734	)		(21,832	)
FINANCING ACTIVITIES:
Repayments of long term note payable		—			—			(531	)		—			(531	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayments of equipment debt		(708	)		—			—			—			(708	)
Net change in accounts with affiliates		20,686			884			(35,304	)		13,734			—
Intercompany dividends		(23,000	)		—			23,000			—			—
Exercise of options and purchases from employee stock plans		—			—			415			—			415
Taxes paid on settlement of vested share awards		—			—			(162	)		—			(162	)
Borrowings under revolving loans		—			—			91,500			—			91,500
Repayments of revolving loans		—			—			(66,500	)		—			(66,500	)
Net cash flows provided by (used in) financing activities		(3,022	)		884			9,918			13,734			21,514
Effect of foreign currency exchange rates on cash and cash equivalents		—			110			—			—			110
Net increase (decrease) in cash and cash equivalents		8,268			(1,216	)		—			—			7,052
Cash and cash equivalents at beginning of period		12,035			2,147			2			—			14,184
Cash and cash equivalents at end of period	$	20,303		$	931		$	2		$	—		$	21,236

26

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	$	4,427		$	(322	)	$	(10,986	)	$	—		$	(6,881	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(36,830	)		—			—			—			(36,830	)
Proceeds from dispositions of property and equipment		115			—			—			—			115
Net change in accounts with affiliates		(12,571	)		—			—			12,571			—
Net cash flows used in investing activities		(49,286	)		—			—			12,571			(36,715	)
FINANCING ACTIVITIES:
Deferred financing fees		—			—			(29	)		—			(29	)
Taxes paid on settlement of vested share awards		—			—			(265	)		—			(265	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayment of equipment debt		(506	)		—			—			—			(506	)
Proceeds from equipment debt		2			—			408			—			410
Net change in accounts with affiliates		—			1,232			11,339			(12,571	)		—
Capital contributions		16,800			—			(16,800	)		—			—
Exercise of options and purchases from employee stock plans		—			—			846			—			846
Excess income tax benefit from share-based compensation		—			—			(13	)		—			(13	)
Borrowings under revolving loans		—			—			79,000			—			79,000
Repayments of revolving loans		—			—			(61,000	)		—			(61,000	)
Net cash flows provided by financing activities		16,296			1,232			10,986			(12,571	)		15,943
Effect of foreign currency exchange rates on cash and cash equivalents		—			(40	)		—			—			(40	)
Net increase (decrease) in cash and cash equivalents		(28,563	)		870			—			—			(27,693	)
Cash and cash equivalents at beginning of period		41,724			663			2			—			42,389
Cash and cash equivalents at end of period	$	13,161		$	1,533		$	2		$	—		$	14,696

27

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

Cautionary note regarding forward-looking statements

Certain statements in this Quarterly Report on Form 10-Q may constitute “forward-looking” statements as defined in Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Exchange Commission (“SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Great Lakes Dredge & Dock Corporation and its subsidiaries (“Great Lakes” or the “Company”), or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “may,” “would,” “could,” “should,” “seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Great Lakes cautions investors that any forward-looking statements made by Great Lakes are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Great Lakes, include, but are not limited to, risks and uncertainties that are described in Item 1A. “Risk Factors” of Great Lakes’ Annual Report on Form 10-K for the year ended December 31, 2015, and in other securities filings by Great Lakes with the SEC.

Although Great Lakes believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements. Great Lakes’ future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made only as of the date hereof and Great Lakes does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

General

The Company is the largest provider of dredging services in the United States and a major provider of environmental and infrastructure services. In addition, the Company is the only U.S. dredging service provider with significant international operations. The mobility of the Company’s fleet enables the Company to move equipment in response to changes in demand for dredging services.

Dredging generally involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Domestically, our work generally is performed in coastal waterways and deep water ports. The U.S. dredging market consists of four primary types of work: capital, coastal protection, maintenance and rivers & lakes. The Company’s bid market is defined as the aggregate dollar value of domestic dredging projects on which the Company bid or could have bid if not for capacity constraints (“bid market”). The Company experienced an average combined bid market share in the U.S. of 49% over the prior three years, including 66%, 44%, 32% and 58% of the domestic capital, coastal protection, maintenance and rivers & lakes sectors, respectively.

The Company’s largest domestic dredging customer is the U.S. Army Corps of Engineers (the “Corps”), which has responsibility for federally funded projects related to navigation and flood control of U.S. waterways. In the first six months of 2016, the Company’s dredging revenues earned from contracts with federal government agencies, including the Corps as well as other federal entities such as the U.S. Coast Guard and the U.S. Navy were approximately 66% of dredging revenues, above the Company’s prior three year average of 62%.

The Company’s environmental & infrastructure segment, previously referred to as the environmental & remediation segment, provides environmental and geotechnical construction as well as soil, water and sediment environmental remediation for the state, local and private party markets. Environmental and geotechnical construction includes the creation, repair or stabilization of environmental barriers including slurry walls, in-situ stabilization, coal combustion residuals pond cap and close, dam and levee rehabilitation and other specialty civil construction. Remediation involves the containment, immobilization or removal of contamination from an environment through the use of any combination of isolation, treatment, or exhumation techniques including off-site disposal based on the quantity and severity of the contamination. The environmental & infrastructure segment, which is comprised of Great Lakes Environmental & Infrastructure, LLC (“GLEI”), previously referred to as Magnus Pacific, LLC, and Terra Contracting Services, LLC (“Terra”), accounted for 17% of total revenues in the first six months of 2016.

28

The Company has three operating segments: dredging, Terra and GLEI, which were aggregated into two reportable segments: dredging and environmental & infrastructure. As Terra and GLEI have similarity in economic margins, services, production processes, customer types, distribution methods and regulatory environment, they were aggregated into one reporting segment. There has been no change in the Company’s identification of operating segments and reportable segments. The Company has determined that the operating segments are the Company’s three reporting units.

Results of operations

The following tables set forth the components of net income (loss) and Adjusted EBITDA, as defined below, as a percentage of contract revenues for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Contract revenues		100.0	%		100.0	%		100.0	%		100.0	%
Costs of contract revenues		(87.4	)		(86.5	)		(87.5	)		(89.6	)
Gross profit		12.6			13.5			12.5			10.4
General and administrative expenses		10.3			6.5			11.2			8.1
Impairment of goodwill		—			1.2			—			0.7
(Gain) loss on sale of assets—net		0.4			—			0.2			—
Operating income		2.0			5.8			1.0			1.6
Interest expense—net		(3.1	)		(2.3	)		(3.3	)		(2.7	)
Equity in earnings (loss) of joint ventures		0.1			(1.1	)		—			(0.9	)
Other expense		(0.3	)		(0.3	)		(0.4	)		(0.3	)
Income (loss) before income taxes		(1.3	)		2.1			(2.6	)		(2.3	)
Income tax (provision) benefit		0.4			(1.0	)		1.0			0.9
Net income (loss)		(0.9	)		1.1			(1.6	)		(1.4	)
Adjusted EBITDA		9.5	%		14.0	%		8.8	%		9.1	%

29

Adjusted EBITDA, as provided herein, represents net income, adjusted for net interest expense, income taxes, depreciation and amortization expense, debt extinguishment, accelerated maintenance expense for new international deployments, goodwill or asset impairments and gains on bargain purchase acquisitions. Adjusted EBITDA is not a measure derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company presents Adjusted EBITDA as an additional measure by which to evaluate the Company’s operating trends. The Company believes that Adjusted EBITDA is a measure frequently used to evaluate the performance of companies with substantial leverage and that the Company’s primary stakeholders (i.e., its stockholders, bondholders and banks) use Adjusted EBITDA to evaluate the Company’s period to period performance. Additionally, management believes that Adjusted EBITDA provides a transparent measure of the Company’s recurring operating performance and allows management to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. For this reason, the Company uses a measure based upon Adjusted EBITDA to assess performance for purposes of determining compensation under the Company’s incentive plan. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, amounts determined in accordance with GAAP including: (a) operating income as an indicator of operating performance; or (b) cash flows from operations as a measure of liquidity. As such, the Company’s use of Adjusted EBITDA, instead of a GAAP measure, has limitations as an analytical tool, including the inability to determine profitability or liquidity due to the exclusion of accelerated maintenance expense for new international deployments, goodwill or asset impairments, gains on bargain purchase acquisitions, interest and income tax expense and the associated significant cash requirements and the exclusion of depreciation and amortization, which represent significant and unavoidable operating costs given the level of indebtedness and capital expenditures needed to maintain the Company’s business. For these reasons, the Company uses operating income to measure the Company’s operating performance and uses Adjusted EBITDA only as a supplement. The following is a reconciliation of Adjusted EBITDA to net income (loss):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016			2015		2016			2015
(in thousands)
Net income (loss)	$	(1,719	)	$	2,724	$	(5,754	)	$	(5,666	)
Adjusted for:
Interest expense—net		5,903			5,567		11,624			11,197
Income tax provision (benefit)		(756	)		2,464		(3,409	)		(3,573	)
Depreciation and amortization		14,892			19,872		28,820			33,025
Impairment of goodwill		—			2,750		—			2,750
Adjusted EBITDA	$	18,320		$	33,377	$	31,281		$	37,733

The following table sets forth, by segment and type of work, the Company’s contract revenues for each of the periods indicated:

	Three Months Ended									Six Months Ended
	June 30,									June 30,
Revenues (in thousands)	2016			2015			Change			2016			2015			Change
Dredging:
Capital—U.S.	$	40,335		$	57,742			(30.1	)%	$	92,272		$	105,099			(12.2	)%
Capital—foreign		11,683			47,539			(75.4	)%		13,192			89,238			(85.2	)%
Coastal protection		57,426			51,576			11.3	%		104,639			71,648			46.0	%
Maintenance		28,641			26,129			9.6	%		66,224			68,276			(3.0	)%
Rivers & lakes		15,576			7,060			120.6	%		22,347			9,913			125.4	%
Total dredging revenues		153,661			190,046			(19.1	)%		298,674			344,174			(13.2	)%
Environmental & infrastructure		39,782			49,926			(20.3	)%		58,872			71,478			(17.6	)%
Intersegment revenue		(1,251	)		(1,095	)		14.2	%		(2,235	)		(2,218	)		0.8	%
Total revenues	$	192,192		$	238,877			(19.5	)%	$	355,311		$	413,434			(14.1	)%

Total revenue for the 2016 second quarter was $192.2 million, a decrease compared to revenue of $238.9 million in the 2015 second quarter. For the six months ended June 30, 2016, total revenue was $355.3 million, down from $413.4 million for the same period in the prior year, representing a decrease of 14%. For the six months ended June 30, 2016, decreases in foreign and domestic capital, maintenance and environmental & infrastructure revenues were slightly offset by increases in coastal protection and rivers & lakes revenues.

Capital dredging consists primarily of port expansion projects, which involve the deepening of channels and berthing basins to allow access by larger, deeper draft ships and the provision of land fill used to expand port facilities. In addition to port work, capital projects also include coastal restoration and land reclamations, trench digging for pipelines, tunnels and cables, and other dredging

30

related to the construction of breakwaters, jetties, canals and other marine structures. Domestic capital dredging revenue decreased by $17.4 million, or 30%, to $40.3 million, in the 2016 second quarter compared to the same period in 2015. For the six months ended June 30, 2016, domestic capital dredging was $92.3 million compared to $105.1 million for the same period in 2015. The decrease in domestic capital dredging revenues for the six months ended June 30, 2016 was largely attributable to revenue earned on the PortMiami deepening project in the 2015 first half that did not repeat during the first half of the current year. Revenue for the first six months of 2016 was driven by a coastal restoration project in Louisiana, a liquefied natural gas (“LNG”) project in Texas, a deepening project on the Delaware River and the Savannah Harbor deepening project.

Foreign capital projects typically involve land reclamations, channel deepening and port infrastructure development. In the second quarter of 2016, foreign dredging revenue was $11.7 million, a decrease of $35.9 million, or 75%, from the same quarter in the prior year. Foreign capital revenue for the first half of 2016 was $13.2 million, a decrease of $76.0 million, or 85%, as compared to the six months ended June 30, 2015. Revenue for the six months ended June 30, 2016 was driven by a project in Saudi Arabia, the final stages of demobilization on the Suez Canal project and a project in Bahrain. In comparison, revenue for the first six months of 2015 was driven by greater amounts of revenue earned on the Suez Canal deepening project and a project in Bahrain, in addition to several projects in Brazil that did not repeat in the first six months of 2016.

Coastal protection projects generally involve moving sand from the ocean floor to shoreline locations where erosion threatens shoreline assets. Coastal protection revenue was $57.4 million in the second quarter of 2016, up $5.9 million or 11%, compared to the 2015 second quarter. For the six months ended June 30, 2016, coastal protection was $104.6 million, up $33.0 million or 46%, from $71.6 million for the same period in 2015. The increase in coastal protection revenue for the first six months of 2016 was attributable to a greater amount of revenue earned on large projects in New Jersey for the repair of shorelines damaged as a result of Superstorm Sandy and recent winter storms. Additionally, two projects in Florida contributed to coastal protection revenue in the first half of 2016.

Maintenance dredging consists of the re-dredging of previously deepened waterways and harbors to remove silt, sand and other accumulated sediments. Maintenance revenue for the second quarter of 2016 was $28.6 million, an increase of $2.5 million, or 10%, compared to revenue of $26.1 million for the same period in 2015. For the six months ended June 30, 2016, maintenance revenue was $66.2 million, down $2.1 million, or 3%, from $68.3 million for the first half of 2015. The decrease in maintenance dredging revenues for the first half of 2016 was mostly attributable to revenue earned on a large harbor project in North Carolina as well as on harbor projects in Florida in the six months ended June 30, 2015 that did not repeat in the first half of 2016.  This decrease was partially offset by revenue earned on a harbor project in Maryland as well as maintenance dredging work in Georgia and Massachusetts.

Domestic rivers & lakes dredging and related operations typically consist of lake and river dredging, inland levee and construction dredging, environmental restoration and habitat improvement and other marine construction projects. Rivers & lakes revenue in the second quarter of 2016 was $15.6 million, an increase of $8.5 million, or 121%, compared to the second quarter of 2015. For the six months ended June 30, 2016, rivers & lakes revenue was $22.3 million, up $12.4 million, or 125%, from $9.9 million in the first six months of 2015. The increase in rivers & lakes revenue for the first six months of 2016 was driven by a reservoir project in Kansas and a greater amount of revenue earned on a lake project in Illinois, as compared to the prior year period.

The environmental & infrastructure segment’s services include environmental and geotechnical construction, specifically, slurry wall construction, in-situ stabilization, large scale reclamation, and habitat restoration. In addition, the segment provides remediation services which involve the containment, immobilization or removal of contamination from an environment through the use of any combination of isolation, treatment, or exhumation techniques including off-site disposal based on the quantity and severity of the contamination. The environmental & infrastructure segment recorded revenues of $39.8 million for the three months ended June 30, 2016, down 20% compared to $49.9 million for the same period in 2015. For the six months ended June 30, 2016, environmental & infrastructure revenue was $58.9 million, a $12.6 million decrease from $71.5 million for the same period in the prior year. Environmental & infrastructure revenue for the first six months of 2016 included work on a large mine project in Washington as well as on remediation projects in Michigan and Indiana and a geotechnical project in California. The decrease in revenue during the first six months of 2016 was mostly attributable to a greater amount of revenue earned on remediation projects in the Midwest, California and New Jersey in the prior year period.

Consolidated gross profit for the 2016 second quarter decreased by $8.0 million, or 25%, to $24.3 million, from $32.3 million in the second quarter of 2015. Gross profit margin (gross profit divided by revenue) for the 2016 second quarter decreased to 12.6% from 13.5% for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company had a consolidated gross profit of $44.2 million, up $1.2 million or 3%, from $43.0 million in the same period of the prior year. Gross profit margin for the six months ended June 30, 2016 increased to 12.5% from 10.4% for the same prior year period. The increase in gross profit for the six months ended June 30, 2016 was driven by strong performance on several domestic coastal protection, rivers & lakes and maintenance projects which positively impacted margins. The increased gross profit at the dredging segment was partially offset by increased operating overhead costs, primarily due to increased personnel costs and underutilized equipment in the environmental &

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infrastructure segment. In comparison, gross profit in the 2015 first half was negatively impacted by contract losses on a site development project in the Company’s environmental & infrastructure segment partially offset by strong contract margin on our Suez Canal project.

General and administrative expenses totaled $19.8 million for the quarter ended June 30, 2016, up from general and administrative expenses of $15.5 million in the second quarter of 2015. For the six months ended June 30, 2016 and 2015, general and administrative expenses totaled $39.8 million and $33.5 million, respectively. Increased general and administrative expenses in the first six months of 2016 were attributable to a reduction in the value of the Magnus contingent seller note payable of $7.0 million for the six months ended June 30, 2015. General and administrative expenses were also impacted by a $1.9 million increase in legal and professional fees which was partially offset by a decrease in amortization expense of $3.1 million, mostly related to the Magnus acquisition.

Operating income for the three months ended June 30, 2016 was $3.8 million, a decrease of $10.2 million, compared to operating income of $14.0 million in the same period of 2015. For the six months ended June 30, 2016, the Company experienced operating income of $3.7 million, down $3.0 million, or 45%, from $6.7 million in the same prior year period. The change in the Company’s operating income for the first six months of 2016 was attributable to an increase in general and administrative expenses, partially offset by an increase in gross profit described above. Further, operating income for the six months ended June 30, 2016 includes a $0.7 million loss related to the sale of an underutilized dredge.  

Net interest expense totaled $5.9 million for the three months ended June 30, 2016, in line with interest expense of $5.6 million from the same period of 2015. For the six months ended June 30, 2016, interest expense was $11.6 million, in line with interest expense of $11.2 million for the six months ended June 30, 2015.

The income tax benefit for the three months ended June 30, 2016 was $0.8 million compared to an income tax provision of $2.5 million for the 2015 second quarter. For the six months ended June 30, 2016 and 2015, the income tax benefit was $3.4 million and $3.6 million, respectively. The effective tax rate for the six months ended June 30, 2016 was 37.2%, in line with the effective tax rate of 38.7% for the same period of 2015.

The Company experienced a net loss of $1.7 million and loss per diluted share of $0.03 for the 2016 second quarter compared to net income of $2.7 million and earnings per diluted share of $0.05 for the same period of 2015. For the six months ended June 30, 2016, the Company had a net loss of $5.8 million and a loss per diluted share of $0.10 compared to a net loss of $5.7 million with a loss per diluted share of $0.09 for the same period of 2015. The lower operating income experienced in the first six months of 2016 was offset by equity in loss of joint ventures, related to losses at two of the Company’s joint ventures, of $3.7 million for the first six months of 2015.

Adjusted EBITDA (as defined on page 30) for the three months ended June 30, 2016 and 2015 was $18.3 million and $33.4 million, respectively. For the six months ended June 30, 2016 and 2015, Adjusted EBITDA was $31.3 million and $37.7 million, respectively. The change in Adjusted EBITDA during the current year period was attributable to lower operating income during the first six months of 2016 as described above. Additionally, the Company experienced higher depreciation and amortization expense in the 2015 first half as compared to the current year period.

Results by segment

Dredging

Dredging segment revenues for the quarter ended June 30, 2016 were $153.7 million, a decrease of $36.4 million, or 19%, compared to $190.0 million for the quarter ended June 30, 2015. For the six months ended June 30, 2016, dredging segment revenues were $298.7 million, down $45.5 million, or 13%, compared to revenues of $344.2 million for the same prior year period. For the six months ended June 30, 2016, the dredging segment experienced decreases in foreign and domestic capital and maintenance revenues which were partially offset by increases in coastal protection and rivers & lakes revenues. Current year revenues were driven by large coastal protection projects in New Jersey for the repair of shorelines damaged as a result of Superstorm Sandy and recent winter storm events, a coastal restoration project in Louisiana, a reservoir project in Kansas and harbor maintenance dredging work in Maryland.

Dredging segment gross profit in the second quarter of 2016 decreased 21% to $24.1 million compared to $30.4 million in the same period of the prior year. Dredging segment gross profit margin for the three months ended June 30, 2016 decreased to 15.7% from 16.0% for the three months ended June 30, 2015. For the six months ended June 30, 2016, the dredging segment gross profit was $47.4 million down slightly from a gross profit of $48.6 million in the same period of the prior year. Dredging segment gross profit margin for the six months ended June 30, 2016 increased to 15.9% from 14.1% for the 2015 first half. Dredging segment gross profit for the 2016 first half was impacted by strong performance on several coastal protection, maintenance and rivers & lakes projects, mostly offset by lower foreign capital profit margin, as compared to the same prior year period. During the six months ended June 30,

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2015, the Company experienced strong contract margin on our Suez Canal deepening project partially offset by the tightening of margin on some projects due to either mechanical downtime or weather.

Operating income at the dredging segment for the three months ended June 30, 2016 decreased $7.5 million, to $10.6 million from $18.1 million for the same period in the prior year. For the six months ended June 30, 2016, operating income was $21.2 million, a $4.8 million decrease from $26.0 million in the first half of 2015. The decrease in operating income for the 2016 first half is the result of slightly lower gross profit, described above, as well as an increase in general and administrative expenses, specifically related to higher payroll and benefits expense and legal and professional fees. Further, dredging segment operating income for the six months ended June 30, 2016 includes a $0.7 million loss related to the sale of an underutilized dredge.

Environmental & infrastructure

Environmental & infrastructure segment revenues for the quarter ended June 30, 2016 were $39.8 million, a decrease of $10.1 million, or 20%, compared to $49.9 million for the three months ended June 30, 2015. For the six months ended June 30, 2016, environmental & infrastructure segment revenues were $58.9 million, down $12.6 million, or 18%, from revenue of $71.5 million for the first six months of 2015. Environmental & infrastructure revenues for the first six months of 2016 included work on a large mine project in Washington as well as on remediation projects in Michigan and Indiana and a geotechnical project in California. The decrease in revenue during the first three months of 2016 was mostly attributable to a greater amount of revenue earned on remediation projects in the Midwest, California and New Jersey in the prior year period.

Environmental & infrastructure segment gross profit in the second quarter of 2016 was $0.2 million compared to $1.9 million in the second quarter of 2015. For the three months ended June 30, 2016 and 2015, the environmental & infrastructure segment had a gross profit margin of 0.5% and 3.8%, respectively. The environmental & infrastructure segment experienced a negative gross profit of $3.2 million and $5.7 million for the six months ended June 30, 2016 and 2015, respectively. Environmental & infrastructure negative gross profit margin for the first six months of 2016 was 5.4% compared 7.9% for the same period of the prior year. For the six months ended June 30, 2016, the environmental & infrastructure segment’s performance improved compared to the same period in the prior year, mostly attributable to strong performance on several projects. However, the environmental & infrastructure segment experienced higher operating overhead expense compared to the prior year period, primarily related to higher personnel costs and underutilized equipment. In comparison, negative gross profit in the first six months of 2015 was mostly attributable to contract losses on a site development project.

The environmental & infrastructure segment experienced an operating loss of $6.8 million and $4.1 million for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016, the environmental & infrastructure segment experienced an operating loss of $17.5 million, compared to $19.3 million for the same period of the prior year. The change in operating loss for the six months ended June 30, 2016 is the result of an increase in general and administrative expenses, specifically related to the reduction in the value of the Magnus contingent seller note payable of $7.0 million for the six months ended June 30, 2015. This increase was partially offset by a decrease in amortization expense, lower payroll and benefits expense and the change in negative gross profit, as described above.

Bidding activity and backlog

The following table sets forth, by reporting segment and type of dredging work, the Company’s backlog as of the dates indicated:

	June 30,		December31,		June 30,
Backlog (in thousands)	2016		2015		2015
Dredging:
Capital - U.S.	$	344,230	$	411,506	$	253,462
Capital - foreign		39,271		1,750		55,599
Coastal protection		149,748		118,858		178,560
Maintenance		21,077		77,995		28,990
Rivers & lakes		68,263		67,589		85,939
Dredging Backlog		622,589		677,698		602,550
Environmental & infrastructure		54,014		73,349		149,498
Total Backlog	$	676,603	$	751,047	$	752,048

The Company’s contract backlog represents its estimate of the revenues that will be realized under the portion of the contracts remaining to be performed. For dredging contracts these estimates are based primarily upon the time and costs required to mobilize the necessary assets to and from the project site, the amount and type of material to be dredged and the expected production

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capabilities of the equipment performing the work. For environmental & infrastructure contracts, these estimates are based on the time and remaining costs required to complete the project relative to total estimated project costs and project revenues agreed to with the customer. However, these estimates are necessarily subject to variances based upon actual circumstances. Because of these factors, as well as factors affecting the time required to complete each job, backlog is not always indicative of future revenues or profitability. Also, 53% of the Company’s June 30, 2016 dredging backlog relates to federal government contracts, which can be canceled at any time without penalty to the government, subject to the Company’s contractual right to recover the Company’s actual committed costs and profit on work performed up to the date of cancellation. The Company’s backlog may fluctuate significantly from quarter to quarter based upon the type and size of the projects the Company is awarded from the bid market. A quarterly increase or decrease of the Company’s backlog does not necessarily result in an improvement or a deterioration of the Company’s business. The Company’s backlog includes only those projects for which the Company has obtained a signed contract with the customer.

The domestic dredging bid market for the 2016 second quarter totaled $221.9 million, resulting in $348.1 million of work awarded in the first six months of 2016. This represents a decrease of $102.4 million compared to the first six months of 2015. Awards during the current year period include coastal protection projects in Virginia and North Carolina, a coastal restoration project in Louisiana and a maintenance project in Washington. The bid market for the six months ended June 30, 2016 was down compared to the prior year primarily due to the award of the Savannah Harbor deepening project during the first quarter of 2015. For the contracts awarded in the current year, the Company won 81%, or $92.0 million of the coastal protection projects, 84%, or $27.2 million of the domestic capital projects, 6%, or $7.5 million of the maintenance projects and 25%, or $16.8 million of the rivers & lakes projects through June 30, 2016. The Company won 41% of the overall domestic bid market for the first six months of 2016, which is below the Company’s prior three year average of 49%. Variability in contract wins from quarter to quarter is not unusual and one quarter’s win rate is generally not indicative of the win rate the Company is likely to achieve for a full year.

The Company’s contracted dredging backlog was $622.6 million at June 30, 2016 compared to $677.7 million of backlog at December 31, 2015. These amounts do not reflect approximately $58.3 million of domestic low bids pending formal award and additional phases (“options”) pending on projects currently in backlog at June 30, 2016. At December 31, 2015 the amount of domestic low bids and options pending award was $82.8 million.

Domestic capital dredging backlog at June 30, 2016 was $67.3 million lower than at December 31, 2015. During the first six months of 2016, the Company was awarded a coastal restoration project in Louisiana. Additionally, the Company continued to earn revenue on a deepening project on the Delaware River, an LNG project in Texas, a coastal restoration project in Louisiana and the Savannah Harbor deepening project during the first half of 2016. The Panama Canal expansion was completed during the second quarter of 2016, which continues to put pressure on the ports on the East Coast to continue with their studies and plans to deepen and widen in anticipation of the post-Panamax vessels. In April 2016, the federal court in New Orleans approved the October 2015 settlement, of approximately $20 billion, between the United States, the five Gulf States and BP for damages from the Deepwater Horizon oil spill. Louisiana will receive a minimum of $6.8 billion for claims related to natural resource damages under the Oil Pollution Act, Clean Water Act civil penalties, and the State’s various economic claims. Many of the Gulf States previously committed to spending a portion of the fines received to repair the natural resources impacted by the oil spill including on coastal restoration projects that include dredging. Although the bulk of the fines are to be paid over the next 15 to 18 years, the Company expects several coastal restoration projects envisioned by the States to come to fruition in the next couple of years providing a new source of domestic capital dredging projects on which the Company will bid.

Foreign capital dredging backlog at June 30, 2016 was $37.5 million higher than at December 31, 2015. During the first six months of 2016, the Company was awarded two land reclamation and development projects in the Middle East. Upcoming projects expected to be awarded are not being completed under the tight time constraints that were required on prior years’ large infrastructure projects. As a result, anticipated margins in the current year are expected to be lower than margins experienced internationally over the past several years. The world’s need for reclaimed land continues to expand to support global energy consumption, seaborne trade, population growth and tourism all of which are expected to add nearly 400 viable dredging projects over the next six years. Besides the Middle East, the Company continues to pursue ancillary work in South America where we have positioned a clamshell dredge and operate as a reputable regional provider. The Company expects the additional opportunities globally to provide a continued source of future international dredging revenue.

Coastal protection dredging backlog at June 30, 2016 was $30.9 million higher than at December 31, 2015. In the first six months of 2016, the Company was awarded large coastal protection projects in Virginia and North Carolina as well as two projects in Florida. In the first six months of 2016, the Company continued to earn revenue on several large coastal protection projects in New Jersey as well as on projects in Florida that were in backlog at December 31, 2015. Funding related to Northeastern U.S. beach replenishment continues to be released and the Company is anticipating these new dredging projects along the coast to extend through 2017. Federal and state government actions continue to support the repair and improvement of America’s coastline through the completion of protective beaches and berms.

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Maintenance dredging backlog was down $56.9 million from December 31, 2015. During the first half of 2016, the Company was awarded and completed a maintenance project in Louisiana. During the first six months of 2016, the Company continued to earn revenue on projects in Georgia, Maryland and Massachusetts which were in backlog at December 31, 2015. The Water Resources Reform and Development Act (WRRDA) calls for full use of Harbor Maintenance Trust Fund (“HMTF”) within ten years for its intended purpose of maintaining future access to the waterways and ports that support our nation’s economy. Through the increased appropriation of HMTF monies, the Corps has substantially increased projects for maintenance dredging in 2016 and the Company anticipates an increase in harbor projects to be let to bid throughout the government’s current fiscal year and beyond. Despite the progress the House and Senate made on their budget bills, and the record level of funding provided to the Corps in both versions, including hitting the HMTF targets, it does not appear likely that a budget will be signed into law for fiscal year 2017. It is uncertain whether there will be an omnibus budget passed later this year. The Company expects the Corps’ funding to remain at the previous year’s level.

Rivers & lakes backlog at June 30, 2016 was in line with backlog at December 31, 2015. The Company was awarded projects in New Jersey and Mississippi during the first six months of 2016. For the six months ended June 30, 2016, the Company continued to earn revenue on a reservoir project in Kansas and a lake project in Illinois which were in backlog at December 31, 2015. The Corps’ work plan for 2016 includes several upper Mississippi River projects to open channels that are often clogged by silt and sediment from upstream, in addition to planned levee repair along the Mississippi River. Additionally, the Company’s rivers & lakes dredges are well suited for marsh projects in Louisiana that are expected to be let to bid through the Coastal Protection and Restoration Authority over the next year.

Environmental & infrastructure services backlog decreased $19.3 million from December 31, 2015. During the first six months of 2016, the Company continued to earn revenue on a large mine project in Washington as well as on remediation projects in Michigan and Indiana and a geotechnical project in California which were in backlog at December 31, 2015. The Company was awarded two remediation projects, two geotechnical projects and an underground infrastructure project during the first six months of 2016. Subsequent to the end of the quarter, the Company entered into a definitive agreement to sell the assets associated with certain services lines of the environmental & infrastructure segment’s business, excluding the assets supporting the remediation service line. Included in the sale were in progress contracts. As a result, backlog within these services lines of business are not expected to be converted into revenue. At June 30, 2016, backlog included $4.9 million of revenue remaining on projects within these services lines of business.  As part of the environmental & infrastructure segment’s initiatives, the Company intends to focus on geographical expansion in the geotechnical services business. Additionally, the Company anticipates additional contracting opportunities arising from the transformation of the U.S. energy infrastructure, specifically related to the remediation requirements as mandated by the Environmental Protection Agency’s rule to regulate the disposal of coal combustion residuals from electric utilities promulgated in June 2015.

Liquidity and capital resources

The Company’s principal sources of liquidity are net cash flows provided by operating activities and proceeds from previous issuances of long term debt. The Company’s principal uses of cash are to meet debt service requirements, finance capital expenditures, provide working capital and other general corporate purposes.

The Company’s net cash provided by (used in) operating activities for the six months ended June 30, 2016 and 2015 totaled $7.3 million and $(6.9) million, respectively. Normal increases or decreases in the level of working capital relative to the level of operational activity impact cash flow from operating activities. The increase in the first six months of 2016 compared to the same period in the prior year was driven by the lower investment in working capital, specifically related to the final billings and collections on large projects completed late in 2015, during the current year period. Further contributing to the change year over year, during the first half of 2015, the Company recorded a reduction in the fair value of the Magnus seller note payable of $7.0 million to zero, in addition to reductions in interest and other contingent consideration.

The Company’s net cash flows used in investing activities for the first six months of 2016 and 2015 totaled $21.8 million and $36.7 million, respectively. Investing activities in both periods primarily relate to normal course upgrades and capital maintenance of the Company’s dredging fleet. During the six months ended June 30, 2016, the Company spent $11.3 million on the construction of a dual mode articulated tug/barge trailing suction hopper dredge (“ATB”), compared to $12.1 million in the same period in the prior year. The Company received $10.0 million for the sale of an underutilized dredge during the current year period.

The Company’s net cash flows provided by financing activities for the six months ended June 30, 2016 and 2015 totaled $21.5 million and $15.9 million, respectively. The increase in net cash flows provided by financing activities is primarily due to net borrowings on the Company’s revolver during the first six months of 2016 of $25 million, compared to net borrowings of $18 million for the same period in the prior year.

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On June 4, 2012, the Company entered into a senior revolving credit agreement, as subsequently amended, (the “Credit Agreement”) with certain financial institutions from time to time party thereto as lenders, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and an Issuing Lender, Bank of America, N.A., as Syndication Agent and PNC Bank, National Association, BMO Harris Bank N.A. and Fifth Third Bank, as Co-Documentation Agents. The Credit Agreement provides for a senior revolving credit facility in an aggregate principal amount of up to $199 million, multicurrency borrowings up to a $50 million sublimit and swingline loans up to a $10 million sublimit. The Credit Agreement also includes an incremental loans feature that will allow the Company to increase the senior revolving credit facility by an aggregate principal amount of up to $15 million. This feature is subject to lenders providing incremental commitments for such increase, provided that no default or event of default exists, and the Company being in pro forma compliance with the existing financial covenants, both before and after giving effect to the increase, and subject to other standard conditions.

On June 24, 2016, the Company entered into the seventh amendment to the Credit Agreement which modified the Credit Agreement to allow for the sale of the vessel known as the Reem Island and provided for the collateral release to affect the sale. The reduction in the collateral pool resulted in a reduction in the size of the Credit Facility, from $210 million to $199 million. In addition, the net cash proceeds of the sale of the Reem Island, $10 million, were applied to the revolving loans outstanding.

On June 30, 2016 the Company entered into the eighth amendment (the “Eighth Amendment”) to the Credit Agreement which increased the margin applicable to interest rates, letters of credit and commitment fees thereunder.   Depending on the Company’s consolidated total leverage ratio (as defined in the Credit Agreement and further described below), borrowings under the revolving credit facility will bear interest at the option of the Company at either the LIBOR rate plus a margin between 1.50% and 3.50% or a base rate plus a margin between 0.50% and 2.50%.

In addition, the Eighth Amendment modifies the consolidated total leverage covenant contained in the Credit Agreement and adds a maximum capital expenditures covenant. The Company may not permit the consolidated total leverage ratio to be greater than (i) 5.00 to 1.00 for the fiscal quarter ending June 30, 2016, (ii) 4.75 to 1.00 for the fiscal quarter ending September 30, 2016 and (iii) 4.50 to 1.00 for any fiscal quarter ending thereafter. Further, the Company and its subsidiaries may not allow its aggregate capital expenditures to exceed (i) $105 million for the fiscal year ending December 31, 2016 and (ii) $45 million during any fiscal year thereafter.

Last, the Eighth Amendment requires the Company and its subsidiaries party to the Credit Agreement to pledge their respective inventory as security for the revolving credit facility.

The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type. The Credit Agreement also contains customary events of default (including non-payment of principal or interest on any material debt and breaches of covenants) as well as events of default relating to certain actions by the Company’s surety bonding provider. The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.25 to 1.00.

The obligations of Great Lakes under the Credit Agreement are unconditionally guaranteed, on a joint and several basis, by each existing and subsequently acquired or formed material direct and indirect domestic subsidiary of the Company. During a year, the Company frequently borrows and repays amounts under its revolving credit facility. As of June 30, 2016, the Company had $45.0 million of borrowings on the revolver and $53.4 million of letters of credit outstanding, resulting in $100.6 million of availability under the Credit Agreement. Borrowings under the line of credit may be limited based on the Company’s requirements to comply with its covenants. At June 30, 2016, the Company was in compliance with its various covenants under the Credit Agreement.

The Company’s Credit Agreement matures on June 2, 2017 and the Company is in discussions with lenders to finalize a successor credit facility with substantially similar terms as the current Credit Agreement. The Company believes that it will finalize a successor credit facility in the third quarter of 2016.

On November 4, 2014, the Company entered into a senior secured term loan facility consisting of a term loan in an aggregate principal amount of $50 million (the “Term Loan Facility”) pursuant to a Loan and Security Agreement, as subsequently amended, (the “Loan Agreement”) by and among, the lenders party thereto from time to time and Bank of America, N.A., as administrative agent. The Company borrowed an aggregate principal amount of $47.4 million in 2014 and an additional $2.6 million in 2015. The proceeds from the Term Loan Facility will be used for the working capital and general corporate purposes of the Company, including to repay borrowings under the Credit Agreement made to finance the construction of the Company’s ATB.

The Term Loan Facility has a term of 5 years. The borrowings under the Term Loan Facility bear interest at a fixed rate of 4.655% per annum. If an event of default occurs under the Loan Agreement, the interest rate will increase by 2.00% per annum during the continuance of such event of default.

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The Term Loan Facility provides for monthly amortization payments, payable in arrears, which commenced on December 4, 2014, at an annual amount of (i) approximately 10% of the principal amount of the Term Loan Facility during the first two years of the term, (ii) approximately 20% of the principal amount of the Term Loan Facility during the third and fourth years of the term, and (iii) approximately 25% of the principal amount of the Term Loan Facility during the final year of the term, with the remainder due on the maturity date of the facility. In addition, the Company may optionally prepay the Term Loan Facility in whole or in part at any time, subject to a minimum prepayment amount.

The Loan Agreement includes representations, affirmative and negative covenants and events of default customary for financings of this type and includes the same financial covenants that are currently set forth in the Credit Agreement.

Performance and bid bonds are customarily required for dredging and marine construction projects, as well as some environmental & infrastructure projects. The Company has a bonding agreement (the “Zurich Bonding Agreement”) with Zurich American Insurance Company (“Zurich”) under which the Company can obtain performance, bid and payment bonds. In April 2015, we entered into additional bonding agreements with ACE Holdings, Inc., Argonaut Insurance Company, Berkley Insurance Company, and Liberty Mutual Insurance Company (collectively, the “Additional Sureties”). The bonding agreements with the Additional Sureties contain similar terms and conditions as the Zurich Bonding Agreement. The Company also has outstanding bonds with Travelers Casualty and Surety Company of America. Bid bonds are generally obtained for a percentage of bid value and amounts outstanding typically range from $1 million to $10 million. At June 30, 2016, the Company had outstanding performance bonds totaling approximately $1,067.7 million, of which $41.1 million relates to projects from the Company’s historical demolition business. The revenue value remaining in backlog related to these projects totaled approximately $488.1 million.

In connection with the sale of our historical demolition business, the Company was obligated to keep in place the surety bonds on pending demolition projects for the period required under the respective contract for a project.

In January 2011, the Company issued $250 million in aggregate principal amount of its 7.375% senior notes due February 1, 2019. Approximately $180 million of the net proceeds from the original issuance of the senior notes were used to prepay all of the Company’s 7.75% senior subordinated notes due December 2013, including prepayment premiums and accrued and unpaid interest.  In November 2014, the Company issued an additional $25 million in aggregate principal amount of its 7.375% senior notes due February 1, 2019. The proceeds from this issuance were used to repay indebtedness incurred under our senior secured revolving credit facility in connection with the acquisition of Magnus Pacific Corporation, and for general corporate purposes. The indenture governing the senior notes, among other things, limits the ability of the Company and its restricted subsidiaries to (i) pay dividends, or make certain other restricted payments or investments; (ii) incur additional indebtedness and issue disqualified stock; (iii) create liens on its assets; (iv) transfer and sell assets; (v) merge, consolidate or sell all or substantially all of its assets; (vi) enter into certain transactions with affiliates; (vii) create restrictions on dividends or other payments by its restricted subsidiaries and (viii) create guarantees of indebtedness by restricted subsidiaries. These covenants are subject to a number of important limitations and exceptions that are described in the indenture governing the senior notes.

The impact of changes in functional currency exchange rates against the U.S. dollar on non-U.S. dollar cash balances, primarily the Brazilian Real and Australian Dollar, is reflected in the cumulative translation adjustment—net within accumulated other comprehensive loss. Cash held in non-U.S. dollar currencies primarily is used for project-related and other operating costs in those currencies reducing the Company’s exposure to future realized exchange gains and losses.

The Company believes its cash and cash equivalents, its anticipated cash flows from operations and availability under its revolving credit facility will be sufficient to fund the Company’s operations, capital expenditures, and the scheduled debt service requirements for the next twelve months. Beyond the next twelve months, the Company’s ability to fund its working capital needs, planned capital expenditures, scheduled debt payments and dividends, if any, and to comply with all the financial covenants under the Credit Agreement and bonding agreement, depends on its future operating performance and cash flows, which in turn, are subject to prevailing economic conditions and to financial, business and other factors, some of which are beyond the Company’s control.

Critical accounting policies and estimates

In preparing its consolidated financial statements, the Company follows GAAP, which is described in Note 1 to the Company’s December 31, 2015 Consolidated Financial Statements included on Form 10-K. The application of these principles requires significant judgments or an estimation process that can affect the results of operations, financial position and cash flows of the Company, as well as the related footnote disclosures. The Company continually reviews its accounting policies and financial information disclosures. There have been no material changes in the Company’s critical accounting policies or estimates since December 31, 2015.

37

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 

The market risk of the Company’s financial instruments as of June 30, 2016 has not materially changed since December 31, 2015. The market risk profile of the Company on December 31, 2015 is disclosed in Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Item 4. Controls and Procedures.

a) Evaluation of disclosure controls and procedures.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures, as required by Rule 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) as of June 30, 2016. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act a) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure and b) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective in providing such a reasonable assurance.

b) Changes in internal control over financial reporting.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended June 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

38

PART II — Other Information

Item 1. Legal Proceedings.

See Note 9 “Commitments and Contingencies” in the Notes to Condensed Consolidated Financial Statements.

In addition, we have reached a tentative settlement with the Environmental Protection Agency (“EPA”) relating to a project we performed at the Mayport Naval Station from 2010-2012. The EPA is alleging violations of the Marine Protection, Research, and Sanctuaries Act (“MPRSA”). We have an agreement in principle with the EPA to settle the matter by paying a penalty, without any admission of liability. The proposed penalty will not have a material effect on the Company’s operations, cash flows or financial condition, although settlement is subject to the parties entering into a final consent agreement.

Item 1A. Risk Factors.

In Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, we included a risk factor relating to risks associated with our then-pending review of strategic alternatives by our Board of Directors. As disclosed in our Current Report on Form 8-K filed on August 4, 2016, that review has now been concluded after a thorough and comprehensive review.  As a result of such announcement, the market price and trading volume of our stock may fluctuate significantly.  

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

On September 11, 2015, the Company announced a share repurchase program approved by the Board of Directors of the Company, authorizing, but not obligating, the repurchase of up to an aggregate amount of $15,000,000 of its common stock from time to time through December 31, 2016. No repurchases were made in the second quarter of 2016. As of June 30, 2016, the approximate dollar value of shares still available for repurchase under the authorization was $13,575,000.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information

None.

39

Item 6. Exhibits 

10.1	Amendment No. 7 to Credit Agreement, dated as of June 24, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingling Lender and an Issuing Lender, and other lenders party thereto.*
10.2	Amendment No. 8 to Credit Agreement, dated as of June 24, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingling Lender and an Issuing Lender, and other lenders party thereto.*
10.3	Amendment to Loan and Security Agreement, dated as of July 12, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Bank of America, National Association, as Administrative Agent, and other lenders party thereto.*
31.1	Certification Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
31.2	Certification Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
101.INS	XBRL Instance Document. *
101.SCH	XBRL Taxonomy Extension Schema. *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. *
101.DEF	XBRL Taxonomy Extension Definition Linkbase. *
101.LAB	XBRL Taxonomy Extension Label Linkbase. *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. *
*    Filed herewith

40

SIGNATURE

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

Great Lakes Dredge & Dock Corporation
(registrant)
By:	/s/  Mark W. Marinko
	Mark W. Marinko
	Senior Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer and Duly Authorized Officer)

Date:  August 4, 2016

41

EXHIBIT INDEX

Number	Document Description
10.1	Amendment No. 7 to Credit Agreement, dated as of June 24, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingling Lender and an Issuing Lender, and other lenders party thereto.*
10.2	Amendment No. 8 to Credit Agreement, dated as of June 24, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingling Lender and an Issuing Lender, and other lenders party thereto.*
10.3	Amendment to Loan and Security Agreement, dated as of July 12, 2016, by and among Great Lakes Dredge & Dock Corporation, the other Credit Parties party thereto, Bank of America, National Association, as Administrative Agent, and other lenders party thereto.*
31.1	Certification Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
31.2	Certification Pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
101.INS	XBRL Instance Document. *
101.SCH	XBRL Taxonomy Extension Schema. *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. *
101.DEF	XBRL Taxonomy Extension Definition Linkbase. *
101.LAB	XBRL Taxonomy Extension Label Linkbase. *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. *
*    Filed herewith

42

EX-10.1

Exhibit 10.1

AMENDMENT NO. 7
TO CREDIT AGREEMENT

This Amendment is entered into as of June 24, 2016 by and among Great Lakes Dredge & Dock Corporation (the “Borrower”), the other “Credit Parties” from time to time party to the Credit Agreement referred to and defined below (together with the Borrower, the “Credit Parties”), the Lenders (as defined below) signatory hereto and Wells Fargo Bank, National Association, as Swingline Lender, an Issuing Lender and the Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement referred to and defined below.

The Borrower, the other Credit Parties, the financial institutions from time to time party thereto (collectively, the “Lenders”) and the Administrative Agent are parties to a Credit Agreement, dated as of June 4, 2012 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”).

The Borrower has requested that the Administrative Agent release its lien on the vessel known as “Reem Island,” and the Administrative Agent and the Required Lenders are willing to do so on the terms and subject to the conditions set forth herein.

ACCORDINGLY, in consideration of the foregoing premises, the terms and conditions stated herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Borrower, the other Credit Parties, the Required Lenders and the Administrative Agent, such parties hereby agree as follows:

1.Amendment to the Credit Agreement. Subject to the satisfaction of each of the conditions set forth in Section 3, Schedule I to the Credit Agreement is hereby amended in its entirety to read as set forth in Schedule I hereto.

2.Consent to Sale of Reem Island. The Borrower has indicated its intention to sell the vessel known as “Reem Island”, which vessel is subject to the First Preferred Fleet Mortgage dated June 4, 2012 by the Borrower to the Administrative Agent (“Reem Island”). Subject to the satisfaction of each of the conditions set forth in Section 3, the Lenders executing this Amendment hereby consent to such sale (the “Reem Island Sale”) and authorize the Administrative Agent to release Reem Island from the Security Documents. The foregoing consent is limited to its express terms and does not constitute or imply consent to any other transaction, whether or not similar to the Reem Island Sale.

3.Effectiveness of this Amendment; Conditions Precedent. The provisions of Sections 1 and 2 shall be effective only if, on or before the date hereof (or such later date as the Administrative Agent agrees to in writing), the Administrative Agent has received each of the following:

(a)Counterparts of this Amendment duly executed by the Borrower, the other
Credit Parties and the Required Lenders.

(b)Remittance of the entire Net Cash Proceeds of the Reem Island Sale (which shall in no event be less than $10,000,000 or, if greater, the amount necessary to reduce the Outstandings to an amount not greater than the Aggregate Commitment Amount, as determined after giving effect to the amendment in Section 1 above), which Net Cash Proceeds shall be applied, first, to the principal amount of outstanding Swingline Loans, and second to the principal amount of outstanding Revolving Credit Loans.

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4.Representations and Warranties. 

(a)Each of the Borrower and each Credit Party hereby represents and warrants that this Amendment and the Credit Agreement as amended hereby (collectively, the “Amendment Documents”) constitute legal, valid and binding obligations of each Credit Party, enforceable against the Credit Parties in accordance with their terms.

(b)Each of the Borrower and each Credit Party hereby represents and warrants that its execution and delivery of this Amendment, and the performance of the Amendment Documents, have been duly authorized by all necessary corporate or limited liability company action, do not violate any provision of its organizational documents, will not violate any law, regulation, court order or writ applicable to it, and will not require the approval or consent of any governmental agency, or of any other third party under the terms of any contract or agreement to which it or any of its Affiliates is bound (which has not been previously obtained), including without limitation, the Bonding Agreement, the Wells Fargo Documents and the Note Indenture.

(c)Each of the Borrower and each Credit Party hereby represents and warrants that after giving effect to the provisions of this Amendment, (i) no Default or Event of Default has occurred and is continuing or will have occurred and be continuing and (ii) all of the representations and warranties of each Credit Party contained in any Loan Document (other than representations and warranties which, in accordance with their express terms, are made only as of an earlier specified date) are, and will be, true and correct as of the date of its execution and delivery hereof or thereof in all material respects as though made on and as of such date.

5.Reaffirmation, Ratification and Acknowledgment. The Borrower and each other Credit Party hereby (a) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each Loan Document to which it is a party, (b) agrees and acknowledges that such ratification and reaffirmation is not a condition to the continued effectiveness of such Loan Documents, and (c) agrees that neither such ratification and reaffirmation, nor the Administrative Agent’s, or any Lender’s solicitation of such ratification and reaffirmation, constitutes a course of dealing giving rise to any obligation or condition requiring a similar or any other ratification or reaffirmation from the Borrower or such other Credit Parties with respect to any subsequent modifications to the Credit Agreement or the other Loan Documents. Except as modified hereby, the Credit Agreement is in all respects ratified and confirmed, and the Credit Agreement as modified by this Amendment shall be read, taken and so construed as one and the same instrument. Each of the Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Neither the execution, delivery nor effectiveness of this Amendment shall operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, or of any Default or Event of Default (whether or not known to the Administrative Agent or the Lenders), under any of the Loan Documents, except as specifically set forth herein. From and after the effectiveness of this Amendment, (x) each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby and (y) all references to the Credit Agreement appearing in any other Loan Document, or any other document, instrument or agreement executed and/or delivered in connection therewith, shall mean and be a reference to the Credit Agreement, as amended hereby.

6.Release. In further consideration of the execution by the Administrative Agent and the Required Lenders of this Amendment, to the extent permitted by applicable law, the Borrower and each Credit Party, on behalf of itself and all of its successors and assigns (collectively, the “Releasors”), hereby completely, voluntarily, knowingly, and unconditionally release and forever discharge the Administrative Agent, each Lender, each Issuing Lender, the Swingline Lender, each of their advisors, professionals and employees, each affiliate of the foregoing and all of their respective permitted successors and assigns (collectively, the “Releasees”), from any and all claims, actions, suits, and other

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liabilities, including, without limitation, any so-called “lender liability” claims or defenses (collectively, “Claims”), whether arising in law or in equity, which any of the Releasors ever had, now has or hereinafter can, shall or may have against any of the Releasees for, upon or by reason of any matter, cause or thing whatsoever from time to time occurred on or prior to the date hereof, in any way concerning, relating to, or arising from (a) the Credit Agreement or any of the other Loan Documents (including, without limitation, with respect to the payment, performance, validity or enforceability of the Borrower’s or any other Credit Party’s obligations thereunder, the liens securing such obligations, or any or all of the terms or conditions of any Loan Document), (b) the financial condition, business or operations of the Borrower or any other Credit Party, and (c) the negotiation, documentation and execution of this Amendment and any documents relating hereto, except for Claims determined in a final and nonappealable judgment by a court of competent jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of such Releasee. The Releasors hereby acknowledge that they have been advised by legal counsel of the meaning and consequences of this release. 

7.Governing Law.THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

8.Administrative Agent’s Expenses. The Borrower hereby agrees to promptly reimburse the Administrative Agent for all of the reasonable and documented out-of-pocket expenses (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent) it has heretofore or hereafter incurred or incurs in connection with the preparation, negotiation and execution of this Amendment and the other documents, agreements and instruments contemplated hereby.

9.Counterparts. This Amendment may be executed in counterparts, each of which shall be an original and all of which when together shall constitute one and the same agreement among the parties. Delivery of any executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart hereof.

[Remainder of page left intentionally blank]

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

GREAT LAKES DREDGE & DOCK CORPORATION, as Borrower

By _/s/ Jonathan W. Berger__________________

Name: Jonathan W. Berger

Title: Chief Executive Officer

GREAT LAKES DREDGE & DOCK ENVIRONMENTAL, INC., as a Credit Party

By _/s/ Jonathan W. Berger__________________

Name: Jonathan W. Berger

Title: President & Chief Executive Officer

GREAT LAKES DREDGE & DOCK COMPANY, LLC, as a Credit Party

By __/s/ Kyle Johnson_______________________

Name: Kyle Johnson

Title: Chief Operating Officer & Executive VP

DAWSON MARINE SERVICES COMPANY, as a Credit Party

By __/s/ Michael R. Sayer____________________

Name: Michael R. Sayer

Title: Treasurer

NASDI HOLDINGS, LLC, formerly known as NASDI Holdings Corporation, as a Credit Party

By _/s/ Jonathan W. Berger__________________

Name: Jonathan W. Berger

Title: Chief Executive Officer

FIFTY-THREE DREDGING CORPORATION,as a Credit Party

By ___/s/ Mark L Reid______________________

Name: Mark L. Reid

Title: President

TERRA CONTRACTING SERVICES, LLC, as a Credit Party

By ___/s/ Maria G. Trujillo___________________

Name: Maria G. Trujillo

Title: Treasurer

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, as Swingline Lender and as a Lender

By ___/s/ Kristine Netjes_____________________

Name: Kristine Netjes

Title: Senior Vice President

BANK OF AMERICA, N.A., as a Lender

By ___/s/ John M. Schuessler________________

Name: John M. Schuessler

Title: Senior Vice President

PNC BANK, NATIONAL ASSOCIATION, as a Lender

By ___/s/ Patrick Flaherty____________________

Name: Patrick Flaherty

Title: Managing Director

BMO HARRIS FINANCING, INC., as a Lender

By ___/s/ John Armstrong____________________

Name: John Armstrong

Title: Managing Director

FIFTH THIRD BANK, as a Lender

By _______________________________________

Name:

Title:

MB FINANCIAL BANK, N.A., as a Lender

By _______________________________________

Name:

Title:

DEUTSCHE BANK AG, NEW YORK BRANCH, as a Lender

By _______________________________________

Name:

Title:

By _______________________________________

Name:

Title:

SUNTRUST BANK, as a Lender

By _______________________________________

Name:

Title:

SCHEDULE I

Commitments

Lender	August 2014 Incremental Commitment Increase	Commitment1	Commitment Percentage
Wells Fargo Bank, National Association	$0	$47,380,952.38	23.8095238%
Bank of America, N.A.	$0	$28,428,571.43	14.2857143%
PNC Bank National Association	$0	$23,690,476.19	11.9047619%
BMO Harris Financing, Inc.	$0	$23,690,476.19	11.9047619%
Fifth Third Bank	$0	$23,690,476.19	11.9047619%
MB Financial Bank, N.A.	$0	$9,476,190.48	4.7619048%
Deutsche Bank AG, New York Branch	$0	$9,476,190.48	4.7619048%
SunTrust Bank	$35,000,000	$33,166,666.67	16.6666667%
Total	$35,000,000.00	$199,000,000	100%

¹ Commitment amount includes the August 2014 Incremental Commitment Increase of each Lender providing same.

EX-10.2

Exhibit 10.2

AMENDMENT NO. 8
TO CREDIT AGREEMENT

This Amendment is entered into as of June 30, 2016 by and among Great Lakes Dredge & Dock Corporation (the “Borrower”), the other “Credit Parties” from time to time party to the Credit Agreement referred to and defined below (together with the Borrower, the “Credit Parties”), the Lenders (as defined below) signatory hereto and Wells Fargo Bank, National Association, as Swingline Lender, an Issuing Lender and the Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement referred to and defined below.

The Borrower, the other Credit Parties, the financial institutions from time to time party thereto (collectively, the “Lenders”) and the Administrative Agent are parties to a Credit Agreement, dated as of June 4, 2012 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”).

The Borrower has requested various modifications to the Credit Agreement, and the Administrative Agent and the Required Lenders are willing to grant the Borrower’s request on the terms and subject to the conditions set forth herein.

ACCORDINGLY, in consideration of the foregoing premises, the terms and conditions stated herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Borrower, the other Credit Parties, the Required Lenders and the Administrative Agent, such parties hereby agree as follows:

1.Amendments to the Credit Agreement. Subject to the satisfaction of each of the conditions set forth in Section 3, the Credit Agreement is hereby amended as follows:

(a)The table in the definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended in its entirety to read as follows:

Pricing Level	Consolidated Total Leverage Ratio	Commitment Fee	LIBOR Rate Loans / Financial Letters of Credit	Performance Letters of Credit	Base Rate Loans
I	Greater than or equal to 4.50 to 1.00	0.50%	3.50%	1.25%	2.50%
II	Greater than or equal to 4.00 to 1.00, but less than 4.50 to 1.00	0.50%	3.00%	1.125%	2.00%
III	Greater than or equal to 3.50 to 1.00, but less than 4.00 to 1.00	0.45%	2.50%	1.125%	1.50%
IV	Greater than or equal to 3.00 to 1.00, but less than 3.50 to 1.00	0.40%	2.25%	1.125%	1.25%

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Pricing Level	Consolidated Total Leverage Ratio	Commitment Fee	LIBOR Rate Loans / Financial Letters of Credit	Performance Letters of Credit	Base Rate Loans
V	Greater than or equal to 2.25 to 1.00, but less than 3.00 to 1.00	0.35%	2.00%	1.000%	1.00%
VI	Greater than or equal to 1.50 to 1.00, but less than 2.25 to 1.00	0.30%	1.75%	0.875%	0.75%
VII	Less than to 1.50 to 1.00	0.25%	1.50%	0.750%	0.50%

(b)The phrase, “or (iii) become the subject of a Bail-in Action”, is hereby inserted at the end of clause (d) of the definition of “Defaulting Lender” in Section 1.1 of the Credit Agreement (immediately before the semi-colon and proviso in that definition).

(c)The definition of “Federal Funds Rate” in Section 1.1 of the Credit Agreement is hereby amended in its entirety to read as follows:

“Federal Funds Rate” means, for any day, the rate per annum determined by the Federal Reserve Bank of New York based on federal funds transactions on such day (or, if such day is not a Business Day, for the immediately preceding Business Day) and published as the federal funds effective rate by the Federal Reserve Bank of New York on the Business Day next succeeding such day, or, if such rate is not so published for any day that is a Business Day, the rate otherwise established by the Administrative Agent in any reasonable manner as the rate per annum applicable to federal funds transactions. Notwithstanding the foregoing, if the Federal Funds Rate as determined pursuant to the foregoing would be less than 0%, the Federal Funds Rate shall be 0%.

(d)The following sentence is hereby inserted at the end of the definition of “LIBOR” in Section 1.1 of the Credit Agreement:

Notwithstanding the foregoing, if LIBOR as determined pursuant to the foregoing would be less than 0%, LIBOR shall be 0%.

(e)The following definitions are hereby inserted in Section 1.1 of the Credit Agreement in their respective alphabetical order:

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the

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supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

(f)The last sentence of Section 5.15(a)(iv) of the Credit Agreement is hereby amended in its entirety to read as follows:

Subject to Section 12.22, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

(g)The last sentence of Section 8.6 of the Credit Agreement is hereby amended in its entirety to read as follows:

Promptly following a Perfection Trigger Event and continuing thereafter while such Perfection Period remains in effect, all policies and certificates of entry with respect to hull and machinery insurance to the extent relating to the Designated Vessels and insurance relating to inventory shall name the Administrative Agent as an additional insured and contain a loss payable clause which, by language reasonably acceptable to the Administrative Agent, shall provide for payment to the Administrative Agent or its order to the extent relating to the Designated Vessels or inventory, and shall provide that no cancellation thereof shall be effective until at least 30 days written notice has been provided to the Administrative Agent.

(h)The phrase, “Receivables Security Agreement”, in Section 8.13 of the Credit Agreement is hereby deleted, and the phrase, “Receivables Security Agreement and, to the extent requested by the Administrative Agent, any other Security Document granting a security interest in inventory of one or more Credit Parties”, is substituted therefor.

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(i)Section 9.14(a) of the Credit Agreement is hereby amended in its entirety to read as follows: 

(a)Consolidated Total Leverage Ratio.  As of the last day of any fiscal quarter of the Borrower, permit the Consolidated Total Leverage Ratio to be greater than the applicable ratio set forth below:

Fiscal Quarter-End	Maximum Ratio
Each fiscal quarter-end prior to June 30, 2016	4.50 to 1
June 30, 2016	5.00 to 1
September 30, 2016	4.75 to 1
Each fiscal quarter-end after September 30, 2016	4.50 to 1

(j)The following new paragraph (c) is inserted at the end of Section 9.14 of the Credit Agreement:

(c)Capital Expenditures. Permit the aggregate Capital Expenditures of the Borrower and its Subsidiaries to exceed (i) $105,000,000 during the Fiscal Year ending December 31, 2016, or (ii) $45,000,000 during any subsequent Fiscal Year.

(k)The following new Section 12.22 is hereby inserted immediately after Section 12.21 of the Credit Agreement:

12.22Acknowledgment and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

(a)the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

(b)the effects of any Bail-In Action on any such liability, including, if applicable:

(i)a reduction in full or in part or cancellation of any such liability;

(ii)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

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US.106886489.04

(iii)the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.  

2.Amendment Fee. If the Termination Date has not occurred on or before July 31, 2016, the Borrower will pay the Administrative Agent, for the benefit of each Lender that has executed and delivered this Amendment to the Administrative Agent prior to 4:00 p.m. (Central time) on the date hereof, an amendment fee in an amount equal to 15 basis points (0.15%) of the Aggregate Revolving Credit Commitments. Such amendment fee shall be due and payable on August 1, 2016.

3.Effectiveness of this Amendment; Conditions Precedent. The provisions of Section 1 shall be effective only if, on or before the date hereof (or such later date as the Administrative Agent agrees to in writing), the Administrative Agent has received each of the following, each in form and substance satisfactory to the Administrative Agent:

(a)Counterparts of this Amendment duly executed by the Borrower, the other Credit Parties and the Required Lenders.

(b)An Inventory Security Agreement (the “Inventory Security Agreement”), duly executed by the Borrower and the other Credit Parties, granting the Administrative Agent a security interest in substantially all inventory of the Borrower and such Credit Parties.

(c)A certificate of an officer of the Borrower and each other Credit Party (i) certifying that the execution, delivery and performance of this Amendment and the Inventory Security Agreement, and the performance of the Credit Agreement as amended hereby, have been duly approved by all necessary action of the board of directors (or equivalent governing body) of the Borrower and each such Credit Party, and attaching true and correct copies of the applicable resolutions granting such approval, (ii) certifying that there have been no amendments to or restatements of the articles of incorporation, bylaws or other similar organizational  or governing documents the Borrower or any other Credit Party as furnished to the Administrative Agent in connection with the execution and delivery of the Credit Agreement, other than those that may be attached to the certificate, and (iii) certifying the names of the officers of the Borrower and the other Credit Parties that are authorized to sign this Amendment and the Inventory Security Agreement, together with the true signatures of such officers.

(d)a written opinion or opinions of counsel to the Borrower and other Credit Parties.

4.Representations and Warranties.

(a)Each of the Borrower and each Credit Party hereby represents and warrants that this Amendment, the Inventory Security Agreement and the Credit Agreement as amended hereby (collectively, the “Amendment Documents”) constitute legal, valid and binding obligations of each Credit Party, enforceable against the Credit Parties in accordance with their terms.

(b)Each of the Borrower and each Credit Party hereby represents and warrants that its execution and delivery of this Amendment and the Inventory Security Agreement, and the performance of the Amendment Documents, have been duly authorized by all necessary corporate or limited liability company action, do not violate any provision of its organizational documents, will not violate any law, regulation, court order or writ applicable to it, and will not require the approval or consent of any governmental agency, or of any other third party under the terms of any contract or agreement to which it or any of its Affiliates is bound (which has not been previously obtained), including without limitation, the Bonding Agreement, the Wells Fargo

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US.106886489.04

Documents and the Note Indenture. 

(c)Each of the Borrower and each Credit Party hereby represents and warrants that after giving effect to the provisions of this Amendment, (i) no Default or Event of Default has occurred and is continuing or will have occurred and be continuing and (ii) all of the representations and warranties of each Credit Party contained in any Loan Document (other than representations and warranties which, in accordance with their express terms, are made only as of an earlier specified date) are, and will be, true and correct as of the date of its execution and delivery hereof or thereof in all material respects as though made on and as of such date.

5.Reaffirmation, Ratification and Acknowledgment. The Borrower and each other Credit Party hereby (a) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each Loan Document to which it is a party, (b) agrees and acknowledges that such ratification and reaffirmation is not a condition to the continued effectiveness of such Loan Documents, and (c) agrees that neither such ratification and reaffirmation, nor the Administrative Agent’s, or any Lender’s solicitation of such ratification and reaffirmation, constitutes a course of dealing giving rise to any obligation or condition requiring a similar or any other ratification or reaffirmation from the Borrower or such other Credit Parties with respect to any subsequent modifications to the Credit Agreement or the other Loan Documents. Except as modified hereby, the Credit Agreement is in all respects ratified and confirmed, and the Credit Agreement as modified by this Amendment shall be read, taken and so construed as one and the same instrument. Each of the Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Neither the execution, delivery nor effectiveness of this Amendment shall operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, or of any Default or Event of Default (whether or not known to the Administrative Agent or the Lenders), under any of the Loan Documents, except as specifically set forth herein. From and after the effectiveness of this Amendment, (x) each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby and (y) all references to the Credit Agreement appearing in any other Loan Document, or any other document, instrument or agreement executed and/or delivered in connection therewith, shall mean and be a reference to the Credit Agreement, as amended hereby. This Agreement is a Loan Document, as defined in the Credit Agreement.

6.Release. In further consideration of the execution by the Administrative Agent and the Required Lenders of this Amendment, to the extent permitted by applicable law, the Borrower and each Credit Party, on behalf of itself and all of its successors and assigns (collectively, the “Releasors”), hereby completely, voluntarily, knowingly, and unconditionally release and forever discharge the Administrative Agent, each Lender, each Issuing Lender, the Swingline Lender, each of their advisors, professionals and employees, each affiliate of the foregoing and all of their respective permitted successors and assigns (collectively, the “Releasees”), from any and all claims, actions, suits, and other liabilities, including, without limitation, any so-called “lender liability” claims or defenses (collectively, “Claims”), whether arising in law or in equity, which any of the Releasors ever had, now has or hereinafter can, shall or may have against any of the Releasees for, upon or by reason of any matter, cause or thing whatsoever from time to time occurred on or prior to the date hereof, in any way concerning, relating to, or arising from (a) the Credit Agreement or any of the other Loan Documents (including, without limitation, with respect to the payment, performance, validity or enforceability of the Borrower’s or any other Credit Party’s obligations thereunder, the liens securing such obligations, or any or all of the terms or conditions of any Loan Document), (b) the financial condition, business or operations of the Borrower or any other Credit Party, and (c) the negotiation, documentation and execution of this Amendment and any documents relating hereto, except for Claims determined in a final and nonappealable judgment by a court of competent jurisdiction to have resulted from the gross negligence,

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US.106886489.04

bad faith or willful misconduct of such Releasee. The Releasors hereby acknowledge that they have been advised by legal counsel of the meaning and consequences of this release. 

7.Governing Law.THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

8.Administrative Agent’s Expenses. The Borrower hereby agrees to promptly reimburse the Administrative Agent for all of the reasonable and documented out-of-pocket expenses (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent) it has heretofore or hereafter incurred or incurs in connection with the preparation, negotiation and execution of this Amendment and the other documents, agreements and instruments contemplated hereby.

9.Counterparts. This Amendment may be executed in counterparts, each of which shall be an original and all of which when together shall constitute one and the same agreement among the parties. Delivery of any executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart hereof.

[Remainder of page left intentionally blank]

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US.106886489.04

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

GREAT LAKES DREDGE & DOCK CORPORATION, as Borrower

By ___/s/ Mark W. Marinko__________________

Name: Mark W. Marinko

Title: Chief Financial Officer

GREAT LAKES DREDGE & DOCK ENVIRONMENTAL, INC., as a Credit Party

By __/s/ Katherine M. O’Halloran______________

Name: Katherine M. O’Halloran

Title: Treasurer

GREAT LAKES DREDGE & DOCK COMPANY, LLC, as a Credit Party

By ___/s/ Mark W. Marinko__________________

Name: Mark W. Marinko

Title: Chief Financial Officer

DAWSON MARINE SERVICES COMPANY, as a Credit Party

By __/s/ Michael R. Sayer____________________

Name: Michael R. Sayer

Title: Treasurer

NASDI HOLDINGS, LLC, formerly known as NASDI Holdings Corporation, as a Credit Party

By __/s/ Katherine M. O’Halloran______________

Name: Katherine M. O’Halloran

Title: Treasurer

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

FIFTY-THREE DREDGING CORPORATION,as a Credit Party

By __/s/ Katherine M. O’Halloran______________

Name: Katherine M. O’Halloran

Title: Treasurer

TERRA CONTRACTING SERVICES, LLC, as a Credit Party

By ___/s/ Maria G. Trujillo___________________

Name: Maria G. Trujillo

Title: Treasurer

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, as Swingline Lender and as a Lender

By ___/s/ Kristine Netjes_____________________

Name: Kristine Netjes

Title: Senior Vice President

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

BANK OF AMERICA, N.A., as a Lender

By ___/s/ John M. Schuessler________________

Name: John M. Schuessler

Title: Senior Vice President

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

PNC BANK, NATIONAL ASSOCIATION, as a Lender

By ___/s/ Patrick Flaherty____________________

Name: Patrick Flaherty

Title: Managing Director

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

BMO HARRIS FINANCING, INC., as a Lender

By _______________________________________

Name:

Title:

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

FIFTH THIRD BANK, as a Lender

By ___/s/ Terick R. Hinze____________________

Name: Terick R. Hinze

Title: Vice President

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

MB FINANCIAL BANK, N.A., as a Lender

By _______________________________________

Name:

Title:

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

DEUTSCHE BANK AG, NEW YORK BRANCH, as a Lender

By _______________________________________

Name:

Title:

By _______________________________________

Name:

Title:

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

SUNTRUST BANK, as a Lender

By ___/s/ Lisa Garling_______________________

Name: Lisa Garling

Title: Director

Signature page to Amendment No. 8 to Great Lakes Dredge & Dock Corporation Credit Agreement

EX-10.3

Exhibit 10.3

AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”) is made as of this 12th day of July, 2016, by and among GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation (the “Borrower”), GREAT LAKES DREDGE & DOCK COMPANY, LLC, a Delaware limited liability company (the “Guarantor”), Banc of America Leasing & Capital, LLC, a Delaware limited liability company, The Huntington National Bank, a national banking organization organized under U.S. federal law, Pacific Western Bank, a California state-chartered bank, and SunTrust Equipment Finance & Leasing Corp., a Virginia corporation (together with their successors and assigns, collectively, the “Lenders”) and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”).

RECITALS

Borrower, Guarantor, Lenders and Administrative Agent are parties to that certain Loan and Security Agreement dated as of November 4, 2014 (the “Loan Agreement”); and

Borrower, Guarantor, Lenders and Administrative Agent desire to amend the Loan Agreement as more fully set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lender and Borrower agree as follows:

1. Definitions.  Unless otherwise expressly noted herein, terms used but not defined herein shall have the meaning ascribed in the Loan Agreement.

2. Amendments.  Section 7.01(r) is hereby amended by striking “.” at the end of subsection (ii) and adding the following:

“; and

(iii) Notwithstanding subsections (i) and (ii) hereof, for the fiscal quarters then ending June 30, 2016 and September 30, 2016, Section 9.14(a) in the Existing Credit Agreement as the Existing Credit Agreement is in effect on the Closing Date without regard to any subsequent amendment, modification or restatement of the Existing Credit Agreement shall be amended and restated in its entirety to read as follows:

(a) Consolidated Total Leverage Ratio.  As of the last day of the fiscal quarter then ending June 30, 2016 of the Borrower, permit the Consolidated Total Leverage Ratio to be greater than 5.00 to 1.00.  As of the last day of the fiscal quarter then ending September 30, 2016 of the Borrower, permit the Consolidated Total Leverage Ratio to be greater than 4.75 to 1.00.”

" ""

For the avoidance of doubt, with respect to the fiscal quarter ending December 31, 2016 and each fiscal quarter thereafter, no such amendment shall apply.

3. Effect on Loan Agreement.  This Amendment shall be effective upon execution by the parties hereto.  Except as set forth herein, the Loan Agreement remains in full force and effect.

4. Waiver of Prior Default.  Lenders hereby notify Borrower that Lenders hereby waive any Default or Event of Default under the Loan Documents existing or occurring prior to the date hereof with respect to the Borrower’s compliance with the Consolidated Total Leverage Ratio for the fiscal quarter then ending June 30, 2016(the “Prior Default”).  This waiver is expressly limited to the Prior Default, and each Lender hereby expressly reserves all of its rights and remedies with respect to any Default, Event of Default, default or event of default under the Loan Documents other than the Prior Default.  

5. Amendment Fee.  In connection with this Amendment, the Borrower shall pay a fee in the amount of 0.05% of the aggregate principal amount of the Loans outstanding on the date hereof, to be shared ratably by the Lenders pursuant to each Lender’s Applicable Percentage of the Loans.

6. Counterparts.  This Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

[Remainder of this page intentionally left lank; Signature Page follows]

" ""

IN WITNESS WHEREOF, the parties hereto have executed this Amendment the day and year first written above. 

GREAT LAKES DREDGE & DOCK CORPORATION, as the Borrower

By:_/s/ Jonathan W. Berger

Name: Jonathan W. Berger

Title: Chief Executive Officer

GREAT LAKES DREDGE & DOCK COMPANY, LLC, as the Guarantor

By:_/s/ Jonathan W. Berger

Name: Jonathan W. Berger

Title: Chief Executive Officer

BANK OF AMERICA, N.A., as Administrative Agent

By:_/s/ Bridgett J. Manduk Mowry

Name: Bridgett J. Manduk Mowry

Title: Vice President

BANC OF AMERICA LEASING & CAPITAL, LLC, as a Lender

By:_/s/ David L. Pauley

Name: David L. Pauley

Title: Senior Vice President

" ""

THE HUNTINGTON NATIONAL BANK, as a Lender

By:_/s/ Kim J. Trombetta

Name: Kim J. Trombetta

Title: Sr. Vice President

PACIFIC WESTERN BANK, as a Lender

By:_/s/ Audrey Yen

Name: Audrey Yen

Title: Authorized Signatory

SunTrust Equipment Finance & Leasing Corp., as a Lender

By:_/s/ Lesley Dedrick

Name: Lesley Dedrick

Title: Vice President

" ""

EX-31.1

Exhibit 31.1

CERTIFICATIONS PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, Jonathan W. Berger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Great Lakes Dredge & Dock Corporation;

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

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

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

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

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

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

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

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

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

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

Date: August 4, 2016

/s/ Jonathan W. Berger

Jonathan W. Berger

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, Mark W. Marinko, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Great Lakes Dredge & Dock Corporation;

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

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

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

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

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

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

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

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

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

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

Date: August 4, 2016

/s/ Mark W. Marinko

Mark W. Marinko

Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Great Lakes Dredge & Dock Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jonathan W. Berger, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

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

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

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by Great Lakes Dredge & Dock Corporation for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

/s/ Jonathan W. Berger

Jonathan W. Berger

Chief Executive Officer

Date: August 4, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Great Lakes Dredge & Dock Corporation and will be retained by Great Lakes Dredge & Dock Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Great Lakes Dredge & Dock Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark W. Marinko, Senior Vice President and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

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

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

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by Great Lakes Dredge & Dock Corporation for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

/s/ Mark W. Marinko

Mark W. Marinko

Senior Vice President and Chief Financial Officer

Date: August 4, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Great Lakes Dredge & Dock Corporation and will be retained by Great Lakes Dredge & Dock Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	GLDD
Entity Registrant Name	Great Lakes Dredge & Dock CORP
Entity Central Index Key	0001372020
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		60,747,587

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 21,236	$ 14,184
Accounts receivable—net	110,940	130,777
Contract revenues in excess of billings	74,915	81,195
Inventories	35,053	35,963
Prepaid expenses and other current assets	76,107	67,614
Total current assets	318,251	329,733
PROPERTY AND EQUIPMENT—Net	416,484	430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net	85,544	86,004
INVENTORIES—Noncurrent	46,867	41,646
INVESTMENTS IN JOINT VENTURES	5,293	3,761
OTHER	7,470	6,770
TOTAL	879,909	898,124
CURRENT LIABILITIES:
Accounts payable	97,088	118,846
Accrued expenses	62,179	72,277
Billings in excess of contract revenues	4,971	7,061
Revolving credit facility	45,000
Current portion of long term debt	10,469	7,506
Total current liabilities	219,707	205,690
7 3/8% SENIOR NOTES	272,498	271,998
REVOLVING CREDIT FACILITY	45,000	20,000
NOTES PAYABLE	47,821	53,792
DEFERRED INCOME TAXES	70,979	74,006
OTHER	19,669	20,465
Total liabilities	630,674	645,951
COMMITMENTS AND CONTINGENCIES (Note 9)
EQUITY:
Common stock—$.0001 par value; 90,000 authorized, 61,026 and 60,709 shares issued; 60,748 and 60,431 shares outstanding at June 30, 2016 and December 31, 2015, respectively.	6	6
Treasury stock, at cost	(1,433)	(1,433)
Additional paid-in capital	285,506	283,247
Accumulated deficit	(33,418)	(27,664)
Accumulated other comprehensive loss	(1,426)	(1,983)
Total equity	249,235	252,173
TOTAL	$ 879,909	$ 898,124

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	61,026,000	60,709,000
Common stock, shares outstanding	60,748,000	60,431,000

XML

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Contract revenues	$ 192,192	$ 238,877	$ 355,311	$ 413,434
Costs of contract revenues	167,936	206,590	311,065	370,465
Gross profit	24,256	32,287	44,246	42,969
General and administrative expenses	19,751	15,543	39,840	33,491
Impairment of goodwill		2,750		2,750
(Gain) loss on sale of assets—net	687	5	677	(3)
Operating income	3,818	13,989	3,729	6,731
Interest expense—net	(5,903)	(5,567)	(11,624)	(11,197)
Equity in earnings (loss) of joint ventures	128	(2,616)	13	(3,714)
Other expense	(518)	(618)	(1,281)	(1,059)
Income (loss) before income taxes	(2,475)	5,188	(9,163)	(9,239)
Income tax (provision) benefit	756	(2,464)	3,409	3,573
Net income (loss)	$ (1,719)	$ 2,724	$ (5,754)	$ (5,666)
Basic earnings (loss) per share	$ (0.03)	$ 0.05	$ (0.10)	$ (0.09)
Basic weighted average shares	60,711	60,473	60,609	60,369
Diluted earnings (loss) per share	$ (0.03)	$ 0.05	$ (0.10)	$ (0.09)
Diluted weighted average shares	60,711	60,924	60,609	60,369

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)		$ (1,719)	$ 2,724	$ (5,754)	$ (5,666)
Currency translation adjustment-net of tax	[1]	148	53	557	(755)
Comprehensive income (loss)		$ (1,571)	$ 2,777	$ (5,197)	$ (6,421)

[1] Net of income tax (provision) benefit of $(99) and $(35) for the three months ended June 30, 2016 and 2015, respectively and $(370) and $500 for the six months ended June 30, 2016 and 2015, respectively.

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Currency translation adjustment, tax	$ (99)	$ (35)	$ (370)	$ 500

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Condensed Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
BALANCE - value at Dec. 31, 2014	$ 255,963	$ 6		$ 278,166	$ (21,475)	$ (734)
BALANCE - shares at Dec. 31, 2014		60,170
Share-based compensation, Value	2,058			2,058
Share-based compensation, Shares		93
Vesting of restricted stock units, including impact of shares withheld for taxes, value	(265)			(265)
Vesting of restricted stock units, including impact of shares withheld for taxes, shares		98
Exercise of options and purchases from employee stock plans, Value	846			846
Exercise of options and purchases from employee stock plans, Shares		160
Excess income tax benefit from share-based compensation	(13)			(13)
Net loss	(5,666)				(5,666)
Other comprehensive income—net of tax	(755)					(755)
BALANCE - value at Jun. 30, 2015	252,168	$ 6		280,792	(27,141)	(1,489)
BALANCE - shares at Jun. 30, 2015		60,521
BALANCE - value at Dec. 31, 2015	252,173	$ 6	$ (1,433)	283,247	(27,664)	(1,983)
BALANCE - shares at Dec. 31, 2015		60,709	(278)
Share-based compensation, Value	2,006			2,006
Share-based compensation, Shares		102
Vesting of restricted stock units, including impact of shares withheld for taxes, value	(162)			(162)
Vesting of restricted stock units, including impact of shares withheld for taxes, shares		71
Exercise of options and purchases from employee stock plans, Value	415			415
Exercise of options and purchases from employee stock plans, Shares		144
Net loss	(5,754)				(5,754)
Other comprehensive income—net of tax	557					557
BALANCE - value at Jun. 30, 2016	$ 249,235	$ 6	$ (1,433)	$ 285,506	$ (33,418)	$ (1,426)
BALANCE - shares at Jun. 30, 2016		61,026	(278)

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES:
Net loss	$ (5,754)	$ (5,666)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
Depreciation and amortization	28,820	33,025
Equity in (earnings) loss of joint ventures	(3,815)	4,939
Cash distributions from joint ventures	1,233
Deferred income taxes	(2,657)	(3,659)
(Gain) loss on sale of assets—net	677	(3)
Impairment of goodwill		2,750
Gain on adjustment of contingent consideration		(8,444)
Amortization of deferred financing fees	1,249	1,212
Unrealized net gain from mark-to-market valuations of derivatives	(5,605)	(2,629)
Unrealized foreign currency gain	(244)	(789)
Share-based compensation expense	2,006	2,058
Excess income tax benefit from share-based compensation		13
Changes in assets and liabilities:
Accounts receivable	19,553	5,644
Contract revenues in excess of billings	6,604	(34,625)
Inventories	(4,311)	(291)
Prepaid expenses and other current assets	(4,162)	1,418
Accounts payable and accrued expenses	(23,456)	1,126
Billings in excess of contract revenues	(2,108)	(750)
Other noncurrent assets and liabilities	(770)	(2,210)
Cash provided by (used in) operating activities	7,260	(6,881)
INVESTING ACTIVITIES:
Purchases of property and equipment	(32,150)	(36,830)
Proceeds from dispositions of property and equipment	10,318	115
Net cash flows used in investing activities	(21,832)	(36,715)
FINANCING ACTIVITIES:
Deferred financing fees		(29)
Repayments of long term note payable	(531)
Taxes paid on settlement of vested share awards	(162)	(265)
Repayments of term loan facility	(2,500)	(2,500)
Repayments of equipment debt	(708)	(506)
Proceeds from equipment debt		410
Exercise of options and purchases from employee stock plans	415	846
Excess income tax benefit from share-based compensation		(13)
Borrowings under revolving loans	91,500	79,000
Repayments of revolving loans	(66,500)	(61,000)
Net cash provided by financing activities	21,514	15,943
Effect of foreign currency exchange rates on cash and cash equivalents	110	(40)
Net increase (decrease) in cash and cash equivalents	7,052	(27,693)
Cash and cash equivalents at beginning of period	14,184	42,389
Cash and cash equivalents at end of period	21,236	14,696
Supplemental Cash Flow Information
Cash paid for interest	12,815	12,296
Cash paid (refunded) for income taxes	(331)	987
Non-cash Investing and Financing Activities
Property and equipment purchased but not yet paid	$ 4,289	2,690
Property and equipment purchased on capital leases and equipment notes		1,825
Property and equipment purchased on notes payable		$ 15,569

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Basis Of Presentation Policies

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis Of Presentation

1. Basis of presentation

The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Great Lakes Dredge & Dock Corporation and Subsidiaries (the “Company” or “Great Lakes”) and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015 and cash flows for the six months ended June 30, 2016 and 2015 have been included.

The components of costs of contract revenues include labor, equipment (including depreciation, maintenance, insurance and long-term rentals), subcontracts, fuel, supplies, short-term rentals and project overhead. Hourly labor is generally hired on a project-by-project basis. Costs of contract revenues vary significantly depending on the type and location of work performed and assets utilized.

The Company’s cost structure includes significant annual equipment-related costs, including depreciation, maintenance, insurance and long-term rentals. These costs have averaged approximately 21% of total costs of contract revenues over the prior three years. During the year, both equipment utilization and the timing of fixed cost expenditures fluctuate significantly. Accordingly, the Company allocates these fixed equipment costs to interim periods in proportion to revenues recognized over the year, to better match revenues and expenses. Specifically, at each interim reporting date the Company compares actual revenues earned to date on its dredging contracts to expected annual revenues and recognizes equipment costs on the same proportionate basis. In the fourth quarter, any over or under allocated equipment costs are recognized such that the expense for the year equals actual equipment costs incurred during the year.

The Company has three operating segments: dredging, Terra Contracting Services, LLC (“Terra”) and Great Lakes Environmental & Infrastructure, LLC (“GLEI”), previously referred to as Magnus Pacific, LLC, which were aggregated into two reportable segments: dredging and environmental & infrastructure, previously referred to as environmental & remediation. As Terra and GLEI have similarity in economic margins, services, production processes, customer types, distribution methods and regulatory environment, they were aggregated into one reporting segment. There has been no change in the Company’s identification of operating segments and reportable segments. The Company has determined that the operating segments are the Company’s three reporting units. Due to a decline in the overall financial performance and declining cash flows in the Terra Contracting Services, LLC (“Terra”) reporting unit, the Company concluded there was a triggering event that required an interim impairment test for the reporting unit in the second quarter of 2015 and recorded a goodwill impairment charge of $2,750 during the quarter ended June 30, 2015. This impairment of goodwill is discussed in Note 6. The Company performed its most recent annual test of impairment as of July 1, 2015 for the remaining goodwill with no indication of impairment as of the test date. The Company will perform its next scheduled annual test of goodwill in the third quarter of 2016.

The condensed consolidated results of operations and comprehensive income for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued Accounting Standard Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). The Board issued this update to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-02 on its financial statements.

In November 2015, the FASB issued Accounting Standard Update No. 2015-17 (“ASU 2015-17”), Income Taxes: Balance Sheet Classifications of Deferred Taxes (Topic 740) which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in the balance sheet. The update is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. As of December 31, 2015, the Company elected to early adopt this ASU 2015-17 on a prospective basis and therefore, prior years were not retrospectively adjusted.

In April 2015, the FASB issued Accounting Standard Update No. 2015-03 (“ASU 2015-03”), Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for fiscal years beginning after December 15, 2015, and is required to be applied retrospectively. The Company adopted this standard in the first quarter of 2016 on a retrospective basis. As a result, the Company presented $3,502 of unamortized debt issuance costs that had been included in other assets in the consolidated balance sheet as of December 31, 2015 as direct deductions from the carrying amounts of the related debt liabilities.

In May 2014, the FASB issued Accounting Standard Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606), which supersedes the existing revenue recognition requirements. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 has been deferred to be effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, which will be its first quarter of fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements.

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

2. Earnings per share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed similarly to basic earnings per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. For the three months ended June 30, 2016, the dilutive effect of 651 thousand stock options and restricted stock units were excluded from the diluted weighted-average common shares outstanding as the Company incurred a loss during this period. For the six months ended June 30, 2016 and 2015, the dilutive effect of 523 thousand and 488 thousand stock options and restricted stock units, respectively, were excluded from the diluted weighted-average common shares outstanding as the Company incurred a loss during these periods. For the three and six months ended June 30, 2016, 1,603 thousand and 1,694 thousand stock options and restricted stock units were excluded from the calculation of diluted earnings per share based on the application of the treasury stock method, as such stock options and restricted stock units were determined to be anti-dilutive. Similarly, for the three months ended June 30, 2015, 1,019 thousand stock options and restricted stock units were excluded from the calculation of diluted earnings per share based on the application of the treasury stock method.

The computations for basic and diluted earnings (loss) per share are as follows:

	Three Months Ended					Six Months Ended
(shares in thousands)	June 30,					June 30,
	2016			2015		2016			2015
Net income (loss)	$	(1,719	)	$	2,724	$	(5,754	)	$	(5,666	)
Weighted-average common shares outstanding — basic		60,711			60,473		60,609			60,369
Effect of stock options and restricted stock units		—			451		—			—
Weighted-average common shares outstanding — diluted		60,711			60,924		60,609			60,369
Earnings (loss) per share —basic	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)
Earnings (loss) per share — diluted	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)

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Accounts Receivable And Contracts In Progress

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Accounts receivable and contracts in progress

3. Accounts receivable and contracts in progress

Accounts receivable at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Completed contracts	$	23,742		$	37,111
Contracts in progress		74,240			70,787
Retainage		17,392			27,203
		115,374			135,101
Allowance for doubtful accounts		(454	)		(754	)
Total accounts receivable—net	$	114,920		$	134,347
Current portion of accounts receivable—net	$	110,940		$	130,777
Long-term accounts receivable and retainage		3,980			3,570
Total accounts receivable—net	$	114,920		$	134,347

The components of contracts in progress at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Costs and earnings in excess of billings:
Costs and earnings for contracts in progress	$	360,254		$	230,159
Amounts billed		(310,461	)		(176,283	)
Costs and earnings in excess of billings for contracts in progress		49,793			53,876
Costs and earnings in excess of billings for completed contracts		25,122			27,319
Total contract revenues in excess of billings	$	74,915		$	81,195
Billings in excess of costs and earnings:
Amounts billed	$	(285,086	)	$	(207,550	)
Costs and earnings for contracts in progress		280,115			200,489
Total billings in excess of contract revenues	$	(4,971	)	$	(7,061	)

The Company has $17,910 included in costs in excess of billings that are dependent upon the sale of environmental credits earned for a wetland mitigation project. The sale of these credits is subject to market factors that could cause the amount of expected revenue to be higher or lower than currently estimated. If the amount of proceeds received from the sale of the environmental credits is lower than our expectations, we could sustain a loss of part or all of the costs incurred related to this project. Additionally, the timing of realization may be impacted by the timing of a delay in the sale of these environmental credits, resulting in a longer period to recover our investment.

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Accrued Expenses

6 Months Ended

Jun. 30, 2016

Payables And Accruals [Abstract]

Accrued Expenses

4. Accrued expenses

Accrued expenses at June 30, 2016 and December 31, 2015 are as follows:

	June 30,		December 31,
	2016		2015
Insurance	$	16,858	$	16,291
Accumulated deficit in joint ventures		14,359		15,408
Interest		9,154		8,743
Payroll and employee benefits		9,076		13,317
Percentage of completion adjustment		1,769		2,837
Income and other taxes		1,519		3,726
Fuel hedge contracts		—		4,388
Other		9,444		7,567
Total accrued expenses	$	62,179	$	72,277

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Long-term Debt

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt

5. Long-term debt

Credit Agreement

On June 4, 2012, the Company entered into a senior revolving credit agreement, as subsequently amended, (the “Credit Agreement”) with certain financial institutions from time to time party thereto as lenders, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and an Issuing Lender, Bank of America, N.A., as Syndication Agent and PNC Bank, National Association, BMO Harris Bank N.A. and Fifth Third Bank, as Co-Documentation Agents. The Credit Agreement provides for a senior revolving credit facility in an aggregate principal amount of up to $199,000, multicurrency borrowings up to a $50,000 sublimit and swingline loans up to a $10,000 sublimit. The Credit Agreement also includes an incremental loans feature that will allow the Company to increase the senior revolving credit facility by an aggregate principal amount of up to $15,000. This feature is subject to lenders providing incremental commitments for such increase, provided that no default or event of default exists, and the Company being in pro forma compliance with the existing financial covenants, both before and after giving effect to the increase, and subject to other standard conditions. The Credit Agreement is collateralized by a substantial portion of the Company’s operating equipment with a net book value at June 30, 2016 of $135,813.

On June 24, 2016, the Company entered into the seventh amendment to the Credit Agreement which modified the Credit Agreement to allow for the sale of the vessel known as the Reem Island and provided for the collateral release to effect the sale. The reduction in the collateral pool resulted in a reduction in the size of the Credit Facility, from $210,000 to $199,000. In addition, the net cash proceeds of the sale of the Reem Island, $10,000, were applied to the revolving loans outstanding.

On June 30, 2016 the Company entered into the eighth amendment (the “Eighth Amendment”) to the Credit Agreement which increased the margin applicable to interest rates, letters of credit and commitment fees thereunder. Depending on the Company’s consolidated total leverage ratio (as defined in the Credit Agreement and further described below), borrowings under the revolving credit facility will bear interest at the option of the Company at either the LIBOR rate plus a margin between 1.50% and 3.50% or a base rate plus a margin between 0.50% and 2.50%.

In addition, the Eighth Amendment modifies the consolidated total leverage covenant contained in the Credit Agreement and adds a maximum capital expenditures covenant. The Company may not permit the consolidated total leverage ratio to be greater than (i) 5.00 to 1.00 for the fiscal quarter ending June 30, 2016, (ii) 4.75 to 1.00 for the fiscal quarter ending September 30, 2016 and (iii) 4.50 to 1.00 for any fiscal quarter ending thereafter. Further, the Company and its subsidiaries may not allow its aggregate capital expenditures to exceed (i) $105,000 for the fiscal year ending December 31, 2016 and (ii) $45,000 during any fiscal year thereafter.

Last, the Eighth Amendment requires the Company and its subsidiaries party to the Credit Agreement to pledge their respective inventory as security for the revolving credit facility.

The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type. The Credit Agreement also contains customary events of default (including non-payment of principal or interest on any material debt and breaches of covenants) as well as events of default relating to certain actions by the Company’s surety bonding provider. The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.25 to 1.00.

The obligations of Great Lakes under the Credit Agreement are unconditionally guaranteed, on a joint and several basis, by each existing and subsequently acquired or formed material direct and indirect domestic subsidiary of the Company. During a year, the Company frequently borrows and repays amounts under its revolving credit facility. As of June 30, 2016, the Company had $45,000 of borrowings on the revolver and $53,424 of letters of credit outstanding, resulting in $100,576 of availability under the Credit Agreement. At June 30, 2016, the Company was in compliance with its various financial covenants under the Credit Agreement.

Term loan facility

On November 4, 2014, the Company entered into a senior secured term loan facility consisting of a term loan in an aggregate principal amount of $50,000 (the “Term Loan Facility”) pursuant to a Loan and Security Agreement, as subsequently amended, (the “Loan Agreement”) by and among the lenders party thereto from time to time and Bank of America, N.A., as administrative agent. The Company borrowed an aggregate principal amount of $47,360 in 2014 and an additional $2,640 in 2015. The proceeds from the Term Loan Facility will be used for the working capital and general corporate purposes of the Company, including to repay borrowings under the Credit Agreement made to finance the construction of the Company’s dual mode articulated tug/barge trailing suction hopper dredge (the “ATB”).

The Term Loan Facility has a term of 5 years. The borrowings under the Term Loan Facility bear interest at a fixed rate of 4.655% per annum. If an event of default occurs under the Loan Agreement, the interest rate will increase by 2.00% per annum during the continuance of such event of default.

The Term Loan Facility provides for monthly amortization payments, payable in arrears, which commenced on December 4, 2014, at an annual amount of (i) approximately 10% of the principal amount of the Term Loan Facility during the first two years of the term, (ii) approximately 20% of the principal amount of the Term Loan Facility during the third and fourth years of the term, and (iii) approximately 25% of the principal amount of the Term Loan Facility during the final year of the term, with the remainder due on the maturity date of the facility. In addition, the Company has usual and customary mandatory prepayment provisions and may optionally prepay the Term Loan Facility in whole or in part at any time, subject to a minimum prepayment amount.

The Loan Agreement includes representations, affirmative and negative covenants and events of default customary for financings of this type and includes the same financial covenants that are currently set forth in the Credit Agreement. The Term Loan Facility is collateralized by a portion of the Company’s operating equipment with a net book value at June 30, 2016 of $48,926.

Senior notes

The Company has outstanding $275,000 of 7.375% senior notes due February 2019. There is an optional redemption on all notes. The redemption prices are 103.7% in 2015, 101.8% in 2016 and 100% in any year following, until the notes mature in 2019.  Interest is paid semi-annually and principal is due at maturity.

Other

The Company enters into note arrangements to finance certain vessels and ancillary equipment.  During the first quarter of 2015, the Company financed the $15,569 acquisition of a vessel previously under an operating lease with a note bearing interest at 5.75% to maturity in 2023.  The current portion of all equipment notes is $2,418. The long term portion is $15,896 and is included in notes payable or other long term liabilities.

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Impairment Of Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Impairment Of Goodwill

6. Impairment of goodwill

The Company’s annual goodwill impairment test is conducted in the third quarter of each year and interim evaluations are performed when the Company determines that a triggering event has occurred that would more likely than not reduce the fair value of goodwill below its carrying value. Due to a decline in the overall financial performance and declining cash flows in the Terra reporting unit, the Company concluded there was a triggering event that required an interim impairment test for the reporting unit in the second quarter of 2015.

The Company performed step one of the goodwill impairment test as of June 30, 2015, which compared the fair value of the Terra reporting unit against its carrying amount, including goodwill. In deriving the fair value of the Terra reporting unit, the Company used both a market-based approach and an income-based approach. Under the income approach, the fair value of the reporting unit is based on the present value of estimated future cash flows. Under the market approach, the Company uses the guideline public company method by applying estimated market-based enterprise value multiples to the reporting unit’s estimated revenue and Adjusted EBITDA from continuing operations. Based on the first step analysis, management concluded that the fair value of the Terra reporting unit was less than its carrying value; therefore, the Company performed step two of the goodwill impairment analysis.  

Step two of the goodwill impairment analysis measures the impairment charge by allocating the reporting unit’s fair value to all of the assets and liabilities of the reporting unit in a hypothetical analysis that calculates implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as a loss on impairment of goodwill.

Management determined that the Terra reporting unit’s implied fair value of goodwill was below the carrying value as of June 30, 2015. As a result, the Company recorded an impairment charge of $2,750 in the second quarter of 2015.

The change in the carrying value of goodwill for the period ended June 30, 2015 is as follows:

	DredgingSegment		Environmental & InfrastructureSegment			Total
Balance — December 31, 2014	$	76,576	$	9,750		$	86,326
Impairment of goodwill		—		(2,750	)		(2,750	)
BALANCE—June 30, 2015	$	76,576	$	7,000		$	83,576

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair value measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has been established by GAAP that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance describes three levels of inputs that may be used to measure fair value:

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

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. At times, the Company holds certain derivative contracts that it uses to manage foreign currency risk or commodity price risk. The Company does not hold or issue derivatives for speculative or trading purposes. The fair values of these financial instruments are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	At June 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	1,217	$	—	$	1,217	$	—

			Fair Value Measurements at Reporting Date Using
Description	At December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	4,388	$	—	$	4,388	$	—

Fuel hedge contracts

The Company is exposed to certain market risks, primarily commodity price risk as it relates to the diesel fuel purchase requirements, which occur in the normal course of business. The Company enters into heating oil commodity swap contracts to hedge the risk that fluctuations in diesel fuel prices will have an adverse impact on cash flows associated with its domestic dredging contracts. The Company’s goal is to hedge approximately 80% of the fuel requirements for work in domestic backlog.

As of June 30, 2016, the Company was party to various swap arrangements to hedge the price of a portion of its diesel fuel purchase requirements for work in its backlog to be performed through May 2017. As of June 30, 2016, there were 11.0 million gallons remaining on these contracts which represent approximately 80% of the Company’s forecasted domestic fuel purchases through May 2017. Under these swap agreements, the Company will pay fixed prices ranging from $1.02 to $1.71 per gallon.

At June 30, 2016 the fair value asset of the fuel hedge contracts was estimated to be $1,217 and is recorded in prepaid expenses and other current assets. At December 31, 2015, the fair value liability of the fuel hedge contracts was estimated to be $4,388 and is recorded in accrued expenses. Changes in the fair value of fuel hedge contracts being recorded in the Statement of Operations are recorded as cost of contract revenues. The fair values of fuel hedges are corroborated using inputs that are readily observable in public markets; therefore, the Company determines fair value of these fuel hedges using Level 2 inputs.

The Company is exposed to counterparty credit risk associated with non-performance of its various derivative instruments. The Company’s risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher. In addition, all counterparties are monitored on a continuous basis.

The fair value of the fuel hedge contracts outstanding as of June 30, 2016 and December 31, 2015 is as follows:

		Fair Value at
		June 30,		December 31,
	Balance Sheet Location	2016		2015
Asset derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Prepaid expenses and other current assets	$	1,217	$	—
Liability derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Accrued expenses	$	—	$	4,388

Assets and liabilities measured at fair value on a nonrecurring basis  

All other nonfinancial assets and liabilities measured at fair value in the financial statements on a nonrecurring basis are subject to fair value measurements and disclosures. Nonfinancial assets and liabilities included in our condensed consolidated balance sheets and measured on a nonrecurring basis consist of goodwill and long-lived assets, including other acquired intangibles. Goodwill and long-lived assets are measured at fair value to test for and measure impairment, if any, at least annually for goodwill or when necessary for both goodwill and long-lived assets.

The Company estimated the fair value of our Terra reporting unit for our goodwill impairment test by using both a market-based approach and an income-based approach. The income approach is dependent on a number of factors, including estimates of future market growth trends, forecasted revenues and expenses based upon historical operating data, appropriate discount rates and other variables. The market approach measures the value of a reporting unit through comparison to comparable companies. Under the market approach, the Company uses the guideline public company method by applying estimated market-based enterprise value multiples to the reporting unit’s estimated revenue and Adjusted EBITDA from continuing operations. The Company analyzed companies that performed similar services or are considered peers.

An impairment of goodwill was recorded in the amount of $2,750 in the second quarter of 2015. The fair value of goodwill was determined using quantitative models that contained significant unobservable inputs. See Note 6.

	FairValue Measurements Using Significant Unobservable Inputs (Level 3)
	2015
Goodwill
Balance at January 1,	$	86,326
Impairment of goodwill		(2,750	)
Balance at December 31,	$	83,576

Accumulated other comprehensive income (loss)

Changes in the components of the accumulated balances of other comprehensive income (loss) are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Cumulative translation adjustments—net of tax	$	148	$	53	$	557	$	(755	)

Other financial instruments

The carrying value of financial instruments included in current assets and current liabilities approximates fair value due to the short-term maturities of these instruments. Based on timing of the cash flows and comparison to current market interest rates, the carrying value of our senior revolving credit agreement approximates fair value. The Term Loan Facility approximates fair value based upon stable market interest rates and Company credit ratings from inception to year end. In January 2011 and again in November 2014, the Company issued a total of $275,000 of 7.375% senior notes due February 1, 2019, which were outstanding at June 30, 2016 (See Note 5). The senior notes are senior unsecured obligations of the Company and its subsidiaries that guarantee the senior notes. The fair value of the senior notes was $263,313 at June 30, 2016, which is a Level 1 fair value measurement as the senior notes value was obtained using quoted prices in active markets. It is impracticable to determine the fair value of outstanding letters of credit or performance, bid and payment bonds due to uncertainties as to the amount and timing of future obligations, if any.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

8. Share-based compensation

The Company’s 2007 Long-Term Incentive Plan permits the granting of stock options, stock appreciation rights, restricted stock and restricted stock units to its employees and directors for up to 5.8 million shares of common stock.

In March 2016, the Company granted 716 thousand restricted stock units to certain employees pursuant to the plan. In addition, all non-employee directors on the Company’s board of directors are paid a portion of their board-related compensation in stock grants. Compensation cost charged to expense related to share-based compensation arrangements was $1,079 and $1,001 for the three months ended June 30, 2016 and 2015, respectively, and $2,006 and $2,058 for the six months ended June 30, 2016 and 2015, respectively.

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Commitments And Contingencies

6 Months Ended

Jun. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments And Contingencies

9. Commitments and contingencies

Commercial commitments

Performance and bid bonds are customarily required for dredging and marine construction projects, as well as some environmental & infrastructure projects. The Company has a bonding agreement with Zurich American Insurance Company (“Zurich”) under which the Company can obtain performance, bid and payment bonds (the “Zurich Bonding Agreement”). In April 2015, we entered into additional bonding agreements with ACE Holdings, Inc., Argonaut Insurance Company, Berkley Insurance Company, and Liberty Mutual Insurance Company (collectively, the “Additional Sureties”). The bonding agreements with the Additional Sureties contain similar terms and conditions as the Zurich Bonding Agreement. The Company also has outstanding bonds with Travelers Casualty and Surety Company of America. Bid bonds are generally obtained for a percentage of bid value and amounts outstanding typically range from $1,000 to $10,000. At June 30, 2016, the Company had outstanding performance bonds with a notional amount of approximately $1,067,719, of which $41,082 relates to projects from the Company’s historical demolition business. The revenue value remaining in backlog related to these projects totaled approximately $488,122.

In connection with the sale of our historical demolition business, the Company was obligated to keep in place the surety bonds on pending demolition projects for the period required under the respective contract for a project.

Certain foreign projects performed by the Company have warranty periods, typically spanning no more than one to three years beyond project completion, whereby the Company retains responsibility to maintain the project site to certain specifications during the warranty period. Generally, any potential liability of the Company is mitigated by insurance, shared responsibilities with consortium partners, and/or recourse to owner-provided specifications.

Legal proceedings and other contingencies

As is customary with negotiated contracts and modifications or claims to competitively bid contracts with the federal government, the government has the right to audit the books and records of the Company to ensure compliance with such contracts, modifications, or claims, and the applicable federal laws. The government has the ability to seek a price adjustment based on the results of such audit. Any such audits have not had, and are not expected to have, a material impact on the financial position, operations, or cash flows of the Company.

Various legal actions, claims, assessments and other contingencies arising in the ordinary course of business are pending against the Company and certain of its subsidiaries. These matters are subject to many uncertainties, and it is possible that some of these matters could ultimately be decided, resolved, or settled adversely to the Company. Although the Company is subject to various claims and legal actions that arise in the ordinary course of business, except as described below, the Company is not currently a party to any material legal proceedings or environmental claims. The Company records an accrual when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe any of these proceedings, individually or in the aggregate, would be expected to have a material effect on results of operations, cash flows or financial condition.

On April 23, 2014, the Company completed the sale of NASDI, LLC (“NASDI”) and Yankee Environmental Services, LLC (“Yankee”), which together comprised the Company’s historical demolition business, to a privately owned demolition company. Under the terms of the divestiture, the Company retained certain pre-closing liabilities relating to the disposed business. Certain of these liabilities and a legal action brought by the Company to enforce the buyer’s obligations under the sale agreement are described below.

In 2009, NASDI received a letter stating that the Attorney General for the Commonwealth of Massachusetts is investigating alleged violations of the Massachusetts Solid Waste Act. The Company believes that the Massachusetts Attorney General is investigating waste disposal activities at an allegedly unpermitted disposal site owned by a third party with whom NASDI contracted for the disposal of waste materials in 2007 and 2008. Per the Massachusetts Attorney General’s request, NASDI executed a tolling agreement regarding the matter in 2009 and engaged in further discussions with the Massachusetts Attorney General’s office. On or about February 5, 2016, the parties agreed to a tentative settlement in the amount of $275, without any admission of liability and subject to final documentation. On June 3, 2016, a Consent Judgment was entered as a final judgment in Massachusetts Superior Court to implement that settlement.

On January 14, 2015, the Company and our subsidiary, NASDI Holdings, LLC, brought an action in the Delaware Court of Chancery to enforce the terms of the Company's agreement to sell NASDI and Yankee. Under the terms of the agreement, the Company received cash of $5,309 and retained the right to receive additional proceeds based upon future collections of outstanding accounts receivable and work in process existing at the date of close. The Company seeks specific performance of buyer’s obligation to collect and to remit the additional proceeds, and other related relief. Defendants have filed counterclaims alleging that the Company misrepresented the quality of its contracts and receivables prior to the sale. The Company denies defendants’ allegations and intends to vigorously defend against the counterclaims.

Except as noted above, the Company has not accrued any amounts with respect to the above matters, as the Company does not believe, based on information currently known to it, that a loss relating to these matters is probable, and an estimate of a range of potential losses relating to these matters cannot reasonably be made.

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Investments

6 Months Ended

Jun. 30, 2016

Equity Method Investments And Joint Ventures [Abstract]

Investments

10. Investments

The Company owns 50% of TerraSea Environmental Solutions (“TerraSea”) as a joint venture. TerraSea is engaged in the environmental services business through its ability to remediate contaminated soil and dredged sediment treatment. At June 30, 2016 and December 31, 2015, the Company had net advances to TerraSea of $24,782 and $27,592, respectively, which are recorded in other current assets. The Company has an accumulated deficit in joint ventures, which represents losses recognized to date in excess of our investment in TerraSea, of $14,359 and $14,271 at June 30, 2016 and December 31, 2015, respectively, which is presented in accrued expenses. The Company has commenced the wind down of TerraSea with its joint venture partner. The Company believes its net advances to TerraSea are ultimately recoverable either through the operations of the joint venture or as an obligation of our joint venture partner. The joint venture partner has notified the Company that it disagrees with the amount of net advances to TerraSea. The Company believes that its joint venture partner remains obligated for its share of net advances, and any future advances necessary to complete TerraSea’s remaining project. During July 2015, the Company proposed taking a larger percent of the loss on a TerraSea project. Based on this proposal, the Company accrued $1,506 at June 30, 2015 representing the estimated share of additional losses to be assumed. The joint venture partner and the Company are continuing discussions. If those discussions do not lead to a resolution satisfactory to both parties, the joint venture partner and the Company will go to binding arbitration as stipulated by the TerraSea operating agreement. To the extent that net advances are not fully recoverable, additional losses may result in future periods. The Company and its joint venture partner remained obligated to fund TerraSea through the completion of its remaining project. The remaining TerraSea project was substantially complete at June 30, 2016.

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Business Dispositions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Dispositions

11. Business dispositions

On April 23, 2014, the Company entered into an agreement and completed the sale of NASDI and Yankee, its two former subsidiaries that comprised our historical demolition business.  Under the terms of the agreement, the Company received cash of $5,309 and retained the right to receive additional proceeds based upon future collections of outstanding accounts receivable and work in process existing at the date of close, including recovery of outstanding claims for additional compensation from customers, net of future payments of accounts payable existing at the date of close, including any future payments of obligations associated with outstanding claims.  In the fourth quarter of 2013, the Company recorded a preliminary loss on disposal of assets held for sale in discontinued operations. The loss on disposal is subject to change based on the value of additional proceeds received on the working capital existing at the date of disposition.  The amount and timing of the working capital settlement and the amount and timing of the realization of additional net proceeds may be impacted by the litigation with the buyer of the historical demolition business. However, management believes that the ultimate resolution of these matters will not be material to the Company’s consolidated financial position or results of operations.

Subsequent to the end of the quarter, the Company entered into a definitive agreement to sell the assets associated with certain services lines of the environmental & infrastructure segment’s business, excluding the assets supporting the remediation service line.

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Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

12. Segment information

The Company and its subsidiaries currently operate in two reportable segments: dredging and environmental & infrastructure, previously referred to as the environment & remediation segment. The Company’s financial reporting systems present various data for management to run the business, including profit and loss statements prepared according to the segments presented. Management uses operating income to evaluate performance between the two segments. Segment information for the periods presented is provided as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Dredging
Contract revenues	$	153,661		$	190,046		$	298,674		$	344,174
Operating income		10,624			18,115			21,209			25,989
Environmental & infrastructure
Contract revenues	$	39,782		$	49,926		$	58,872		$	71,478
Operating loss		(6,806	)		(4,126	)		(17,480	)		(19,258	)
Intersegment revenues	$	(1,251	)	$	(1,095	)	$	(2,235	)	$	(2,218	)
Total
Contract revenues	$	192,192		$	238,877		$	355,311		$	413,434
Operating income		3,818			13,989			3,729			6,731

Foreign dredging revenue of $11,683 and $13,192 for the three and six months ended June 30, 2016, respectively, was attributable to work done in the Middle East. Foreign dredging revenue for the three and six months ended June 30, 2015 was $47,539 and $89,238, respectively.

The majority of the Company’s long-lived assets are marine vessels and related equipment. At any point in time, the Company may employ certain assets outside of the U.S., as needed, to perform work on the Company’s foreign projects.

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Subsidiary Guarantors

6 Months Ended

Jun. 30, 2016

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Subsidiary Guarantors

13. Subsidiary guarantors

The Company’s long-term debt at June 30, 2016 includes $275,000 of 7.375% senior notes due February 1, 2019. The Company’s obligations under these senior unsecured notes are guaranteed by the Company’s 100% owned domestic subsidiaries. Such guarantees are full, unconditional and joint and several.

The following supplemental financial information sets forth for the Company’s subsidiary guarantors (on a combined basis), the Company’s non-guarantor subsidiaries (on a combined basis) and Great Lakes Dredge & Dock Corporation, exclusive of its subsidiaries (“GLDD Corporation”):

(i) balance sheets as of June 30, 2016 and December 31, 2015;

(ii) statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015; and

(iii) statements of cash flows for the six months ended June 30, 2016 and 2015.

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2016
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	20,303		$	931	$	2	$	—		$	21,236
Accounts receivable — net		110,844			96		—		—			110,940
Contract revenues in excess of billings		72,873			2,042		—		—			74,915
Inventories		35,053			—		—		—			35,053
Prepaid expenses and other current assets		75,644			265		198		—			76,107
Total current assets		314,717			3,334		200		—			318,251
PROPERTY AND EQUIPMENT—Net		416,476			8		—		—			416,484
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		85,544			—		—		—			85,544
INVENTORIES — Noncurrent		46,867			—		—		—			46,867
INVESTMENTS IN JOINT VENTURES		5,293			—		—		—			5,293
RECEIVABLES FROM AFFILIATES		10,321			6,524		82,176		(99,021	)		—
INVESTMENTS IN SUBSIDIARIES		3,539			—		627,171		(630,710	)		—
OTHER		6,787			1		682		—			7,470
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	96,990		$	98	$	—	$	—		$	97,088
Accrued expenses		52,248			614		9,317		—			62,179
Revolving Credit Facility		—			—		45,000		—			45,000
Billings in excess of contract revenues		4,856			115		—		—			4,971
Current portion of long term debt		1,441			—		9,028		—			10,469
Total current liabilities		155,535			827		63,345		—			219,707
7 3/8% SENIOR NOTES		—			—		272,498		—			272,498
NOTES PAYABLE		256			—		47,565		—			47,821
DEFERRED INCOME TAXES		(783	)		—		71,762		—			70,979
PAYABLES TO AFFILIATES		88,088			5,268		5,665		(99,021	)		—
OTHER		19,510			—		159		—			19,669
Total liabilities		262,606			6,095		460,994		(99,021	)		630,674
TOTAL EQUITY		626,938			3,772		249,235		(630,710	)		249,235
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2015
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	12,035		$	2,147	$	2	$	—		$	14,184
Accounts receivable — net		129,978			799		—		—			130,777
Contract revenues in excess of billings		79,477			1,718		—		—			81,195
Inventories		35,963			—		—		—			35,963
Prepaid expenses and other current assets		66,919			218		477		—			67,614
Total current assets		324,372			4,882		479		—			329,733
PROPERTY AND EQUIPMENT—Net		430,192			18		—		—			430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		86,004			—		—		—			86,004
INVENTORIES — Noncurrent		41,646			—		—		—			41,646
INVESTMENTS IN JOINT VENTURES		3,761			—		—		—			3,761
RECEIVABLES FROM AFFILIATES		18,326			6,009		70,738		(95,073	)		—
INVESTMENTS IN SUBSIDIARIES		3,706			—		621,984		(625,690	)		—
OTHER		6,702			3		65		—			6,770
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	118,619		$	227	$	—	$	—		$	118,846
Accrued expenses		62,861			509		8,907		—			72,277
Billings in excess of contract revenues		6,964			97		—		—			7,061
Current portion of long term debt		1,424			—		6,082		—			7,506
Total current liabilities		189,868			833		14,989		—			205,690
7 3/8% SENIOR NOTES		—			—		271,998		—			271,998
REVOLVING CREDIT FACILITY		—			—		20,000		—			20,000
NOTE PAYABLE		323			—		53,469		—			53,792
DEFERRED INCOME TAXES		(783	)		—		74,789		—			74,006
PAYABLES TO AFFILIATES		85,859			3,505		5,709		(95,073	)		—
OTHER		20,326			—		139		—			20,465
Total liabilities		295,593			4,338		441,093		(95,073	)		645,951
TOTAL EQUITY		619,116			6,574		252,173		(625,690	)		252,173
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	192,709		$	—		$	—		$	(517	)	$	192,192
Costs of contract revenues		(167,005	)		(1,448	)		—			517			(167,936	)
Gross profit		25,704			(1,448	)		—			—			24,256
OPERATING EXPENSES:
General and administrative expenses		19,806			—			(55	)		—			19,751
Loss on sale of assets—net		687			—			—			—			687
Operating income (loss)		5,211			(1,448	)		55			—			3,818
Interest expense—net		(184	)		—			(5,719	)		—			(5,903	)
Equity in earnings of subsidiaries		(96	)		—			3,190			(3,094	)		—
Equity in earnings of joint ventures		128			—			—			—			128
Other expense		(518	)		—			—			—			(518	)
Income (loss) before income taxes		4,541			(1,448	)		(2,474	)		(3,094	)		(2,475	)
Income tax benefit		1			—			755			—			756
Net income (loss)	$	4,542		$	(1,448	)	$	(1,719	)	$	(3,094	)	$	(1,719	)
Comprehensive income (loss)	$	4,542		$	(1,300	)	$	(1,571	)	$	(3,242	)	$	(1,571	)

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	235,151		$	4,318		$	—		$	(592	)	$	238,877
Costs of contract revenues		(203,184	)		(3,998	)		—			592			(206,590	)
Gross profit		31,967			320			—			—			32,287
OPERATING EXPENSES:
General and administrative expenses		15,543			—			—			—			15,543
Impairment of goodwill		2,750			—			—			—			2,750
Loss on sale of assets—net		5			—			—			—			5
Operating income		13,669			320			—			—			13,989
Interest expense—net		40			—			(5,607	)		—			(5,567	)
Equity in earnings of subsidiaries		—			—			10,696			(10,696	)		—
Equity in loss of joint ventures		(2,616	)		—			—			—			(2,616	)
Other expense		(618	)		—			—			—			(618	)
Income before income taxes		10,475			320			5,089			(10,696	)		5,188
Income tax provision		—			(99	)		(2,365	)		—			(2,464	)
Net income	$	10,475		$	221		$	2,724		$	(10,696	)	$	2,724
Comprehensive income	$	10,475		$	274		$	2,777		$	(10,749	)	$	2,777

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	356,288		$	—		$	—		$	(977	)	$	355,311
Costs of contract revenues		(309,188	)		(2,854	)		—			977			(311,065	)
Gross profit		47,100			(2,854	)		—			—			44,246
OPERATING EXPENSES:
General and administrative expenses		39,891			4			(55	)		—			39,840
Loss on sale of assets—net		677			—			—			—			677
Operating income (loss)		6,532			(2,858	)		55			—			3,729
Interest expense—net		(365	)		—			(11,259	)		—			(11,624	)
Equity in earnings of subsidiaries		(178	)		—			2,041			(1,863	)		—
Equity in earnings of joint ventures		13			—			—			—			13
Other expense		(1,273	)		(8	)		—			—			(1,281	)
Income (loss) before income taxes		4,729			(2,866	)		(9,163	)		(1,863	)		(9,163	)
Income tax benefit		—			—			3,409			—			3,409
Net income (loss)	$	4,729		$	(2,866	)	$	(5,754	)	$	(1,863	)	$	(5,754	)
Comprehensive income (loss)	$	4,729		$	(2,309	)	$	(5,197	)	$	(2,420	)	$	(5,197	)

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	407,505		$	7,510		$	—		$	(1,581	)	$	413,434
Costs of contract revenues		(364,388	)		(7,658	)		—			1,581			(370,465	)
Gross profit		43,117			(148	)		—			—			42,969
OPERATING EXPENSES:
General and administrative expenses		33,491			—			—			—			33,491
Impairment of goodwill		2,750			—			—			—			2,750
Gain on sale of assets—net		(3	)		—			—			—			(3	)
Operating income (loss)		6,879			(148	)		—			—			6,731
Interest expense—net		(259	)		—			(10,938	)		—			(11,197	)
Equity in earnings of subsidiaries		4			—			1,519			(1,523	)		—
Equity in loss of joint ventures		(3,714	)		—			—			—			(3,714	)
Other income		(1,052	)		(7	)		—			—			(1,059	)
Income (loss) before income taxes		1,858			(155	)		(9,419	)		(1,523	)		(9,239	)
Income tax (provision) benefit		—			(180	)		3,753			—			3,573
Net income (loss)	$	1,858		$	(335	)	$	(5,666	)	$	(1,523	)	$	(5,666	)
Comprehensive income (loss)	$	1,858		$	(1,090	)	$	(6,421	)	$	(768	)	$	(6,421	)

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Cash provided by (used in) operating activities	$	19,388		$	(2,210	)	$	(9,918	)	$	—		$	7,260
INVESTING ACTIVITIES:
Purchases of property and equipment		(32,150	)		—			—			—			(32,150	)
Proceeds from dispositions of property and equipment		10,318			—			—			—			10,318
Net change in accounts with affiliates		13,734			—			—			(13,734	)		—
Net cash flows used in investing activities		(8,098	)		—			—			(13,734	)		(21,832	)
FINANCING ACTIVITIES:
Repayments of long term note payable		—			—			(531	)		—			(531	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayments of equipment debt		(708	)		—			—			—			(708	)
Net change in accounts with affiliates		20,686			884			(35,304	)		13,734			—
Intercompany dividends		(23,000	)		—			23,000			—			—
Exercise of options and purchases from employee stock plans		—			—			415			—			415
Taxes paid on settlement of vested share awards		—			—			(162	)		—			(162	)
Borrowings under revolving loans		—			—			91,500			—			91,500
Repayments of revolving loans		—			—			(66,500	)		—			(66,500	)
Net cash flows provided by (used in) financing activities		(3,022	)		884			9,918			13,734			21,514
Effect of foreign currency exchange rates on cash and cash equivalents		—			110			—			—			110
Net increase (decrease) in cash and cash equivalents		8,268			(1,216	)		—			—			7,052
Cash and cash equivalents at beginning of period		12,035			2,147			2			—			14,184
Cash and cash equivalents at end of period	$	20,303		$	931		$	2		$	—		$	21,236

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	$	4,427		$	(322	)	$	(10,986	)	$	—		$	(6,881	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(36,830	)		—			—			—			(36,830	)
Proceeds from dispositions of property and equipment		115			—			—			—			115
Net change in accounts with affiliates		(12,571	)		—			—			12,571			—
Net cash flows used in investing activities		(49,286	)		—			—			12,571			(36,715	)
FINANCING ACTIVITIES:
Deferred financing fees		—			—			(29	)		—			(29	)
Taxes paid on settlement of vested share awards		—			—			(265	)		—			(265	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayment of equipment debt		(506	)		—			—			—			(506	)
Proceeds from equipment debt		2			—			408			—			410
Net change in accounts with affiliates		—			1,232			11,339			(12,571	)		—
Capital contributions		16,800			—			(16,800	)		—			—
Exercise of options and purchases from employee stock plans		—			—			846			—			846
Excess income tax benefit from share-based compensation		—			—			(13	)		—			(13	)
Borrowings under revolving loans		—			—			79,000			—			79,000
Repayments of revolving loans		—			—			(61,000	)		—			(61,000	)
Net cash flows provided by financing activities		16,296			1,232			10,986			(12,571	)		15,943
Effect of foreign currency exchange rates on cash and cash equivalents		—			(40	)		—			—			(40	)
Net increase (decrease) in cash and cash equivalents		(28,563	)		870			—			—			(27,693	)
Cash and cash equivalents at beginning of period		41,724			663			2			—			42,389
Cash and cash equivalents at end of period	$	13,161		$	1,533		$	2		$	—		$	14,696

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Basis Of Presentation Policies (Policies)

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued Accounting Standard Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). The Board issued this update to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. The Company is currently evaluating the impact of ASU 2016-02 on its financial statements.

In November 2015, the FASB issued Accounting Standard Update No. 2015-17 (“ASU 2015-17”), Income Taxes: Balance Sheet Classifications of Deferred Taxes (Topic 740) which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in the balance sheet. The update is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. As of December 31, 2015, the Company elected to early adopt this ASU 2015-17 on a prospective basis and therefore, prior years were not retrospectively adjusted.

In April 2015, the FASB issued Accounting Standard Update No. 2015-03 (“ASU 2015-03”), Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for fiscal years beginning after December 15, 2015, and is required to be applied retrospectively. The Company adopted this standard in the first quarter of 2016 on a retrospective basis. As a result, the Company presented $3,502 of unamortized debt issuance costs that had been included in other assets in the consolidated balance sheet as of December 31, 2015 as direct deductions from the carrying amounts of the related debt liabilities.

In May 2014, the FASB issued Accounting Standard Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606), which supersedes the existing revenue recognition requirements. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 has been deferred to be effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, which will be its first quarter of fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computations For Basic And Diluted Earnings Per Share

The computations for basic and diluted earnings (loss) per share are as follows:

	Three Months Ended					Six Months Ended
(shares in thousands)	June 30,					June 30,
	2016			2015		2016			2015
Net income (loss)	$	(1,719	)	$	2,724	$	(5,754	)	$	(5,666	)
Weighted-average common shares outstanding — basic		60,711			60,473		60,609			60,369
Effect of stock options and restricted stock units		—			451		—			—
Weighted-average common shares outstanding — diluted		60,711			60,924		60,609			60,369
Earnings (loss) per share —basic	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)
Earnings (loss) per share — diluted	$	(0.03	)	$	0.05	$	(0.10	)	$	(0.09	)

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Accounts Receivable And Contracts In Progress (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule Of Accounts Receivable

Accounts receivable at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Completed contracts	$	23,742		$	37,111
Contracts in progress		74,240			70,787
Retainage		17,392			27,203
		115,374			135,101
Allowance for doubtful accounts		(454	)		(754	)
Total accounts receivable—net	$	114,920		$	134,347
Current portion of accounts receivable—net	$	110,940		$	130,777
Long-term accounts receivable and retainage		3,980			3,570
Total accounts receivable—net	$	114,920		$	134,347

Components Of Contracts In Progress

The components of contracts in progress at June 30, 2016 and December 31, 2015 are as follows:

	June 30,			December 31,
	2016			2015
Costs and earnings in excess of billings:
Costs and earnings for contracts in progress	$	360,254		$	230,159
Amounts billed		(310,461	)		(176,283	)
Costs and earnings in excess of billings for contracts in progress		49,793			53,876
Costs and earnings in excess of billings for completed contracts		25,122			27,319
Total contract revenues in excess of billings	$	74,915		$	81,195
Billings in excess of costs and earnings:
Amounts billed	$	(285,086	)	$	(207,550	)
Costs and earnings for contracts in progress		280,115			200,489
Total billings in excess of contract revenues	$	(4,971	)	$	(7,061	)

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Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2016

Payables And Accruals [Abstract]

Accrued Expenses

Accrued expenses at June 30, 2016 and December 31, 2015 are as follows:

	June 30,		December 31,
	2016		2015
Insurance	$	16,858	$	16,291
Accumulated deficit in joint ventures		14,359		15,408
Interest		9,154		8,743
Payroll and employee benefits		9,076		13,317
Percentage of completion adjustment		1,769		2,837
Income and other taxes		1,519		3,726
Fuel hedge contracts		—		4,388
Other		9,444		7,567
Total accrued expenses	$	62,179	$	72,277

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Impairment Of Goodwill (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in the carrying value of goodwill for the period ended June 30, 2015 is as follows:

	DredgingSegment		Environmental & InfrastructureSegment			Total
Balance — December 31, 2014	$	76,576	$	9,750		$	86,326
Impairment of goodwill		—		(2,750	)		(2,750	)
BALANCE—June 30, 2015	$	76,576	$	7,000		$	83,576

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule Of Fair Values Of Financial Instruments And Nonfinancial Assets And Liabilities Measured At The Reporting Date

The fair values of these financial instruments are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	At June 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	1,217	$	—	$	1,217	$	—

			Fair Value Measurements at Reporting Date Using
Description	At December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fuel hedge contracts	$	4,388	$	—	$	4,388	$	—

Schedule Fair Value Measurements Balance Sheet Location

The fair value of the fuel hedge contracts outstanding as of June 30, 2016 and December 31, 2015 is as follows:

		Fair Value at
		June 30,		December 31,
	Balance Sheet Location	2016		2015
Asset derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Prepaid expenses and other current assets	$	1,217	$	—
Liability derivatives:
Derivatives not designated as hedging instruments
Fuel hedge contracts	Accrued expenses	$	—	$	4,388

Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation

The fair value of goodwill was determined using quantitative models that contained significant unobservable inputs. See Note 6.

	FairValue Measurements Using Significant Unobservable Inputs (Level 3)
	2015
Goodwill
Balance at January 1,	$	86,326
Impairment of goodwill		(2,750	)
Balance at December 31,	$	83,576

Changes In Components Of Accumulated Other Comprehensive Income (Loss)

Changes in the components of the accumulated balances of other comprehensive income (loss) are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Cumulative translation adjustments—net of tax	$	148	$	53	$	557	$	(755	)

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting By Segment

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Dredging
Contract revenues	$	153,661		$	190,046		$	298,674		$	344,174
Operating income		10,624			18,115			21,209			25,989
Environmental & infrastructure
Contract revenues	$	39,782		$	49,926		$	58,872		$	71,478
Operating loss		(6,806	)		(4,126	)		(17,480	)		(19,258	)
Intersegment revenues	$	(1,251	)	$	(1,095	)	$	(2,235	)	$	(2,218	)
Total
Contract revenues	$	192,192		$	238,877		$	355,311		$	413,434
Operating income		3,818			13,989			3,729			6,731

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Subsidiary Guarantors (Tables)

6 Months Ended

Jun. 30, 2016

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Consolidating of Balance Sheet

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2016
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	20,303		$	931	$	2	$	—		$	21,236
Accounts receivable — net		110,844			96		—		—			110,940
Contract revenues in excess of billings		72,873			2,042		—		—			74,915
Inventories		35,053			—		—		—			35,053
Prepaid expenses and other current assets		75,644			265		198		—			76,107
Total current assets		314,717			3,334		200		—			318,251
PROPERTY AND EQUIPMENT—Net		416,476			8		—		—			416,484
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		85,544			—		—		—			85,544
INVENTORIES — Noncurrent		46,867			—		—		—			46,867
INVESTMENTS IN JOINT VENTURES		5,293			—		—		—			5,293
RECEIVABLES FROM AFFILIATES		10,321			6,524		82,176		(99,021	)		—
INVESTMENTS IN SUBSIDIARIES		3,539			—		627,171		(630,710	)		—
OTHER		6,787			1		682		—			7,470
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	96,990		$	98	$	—	$	—		$	97,088
Accrued expenses		52,248			614		9,317		—			62,179
Revolving Credit Facility		—			—		45,000		—			45,000
Billings in excess of contract revenues		4,856			115		—		—			4,971
Current portion of long term debt		1,441			—		9,028		—			10,469
Total current liabilities		155,535			827		63,345		—			219,707
7 3/8% SENIOR NOTES		—			—		272,498		—			272,498
NOTES PAYABLE		256			—		47,565		—			47,821
DEFERRED INCOME TAXES		(783	)		—		71,762		—			70,979
PAYABLES TO AFFILIATES		88,088			5,268		5,665		(99,021	)		—
OTHER		19,510			—		159		—			19,669
Total liabilities		262,606			6,095		460,994		(99,021	)		630,674
TOTAL EQUITY		626,938			3,772		249,235		(630,710	)		249,235
TOTAL	$	889,544		$	9,867	$	710,229	$	(729,731	)	$	879,909

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2015
(In thousands)
ASSETS	Subsidiary Guarantors			Non-Guarantor Subsidiaries		GLDD Corporation		Eliminations			Consolidated Totals
CURRENT ASSETS:
Cash and cash equivalents	$	12,035		$	2,147	$	2	$	—		$	14,184
Accounts receivable — net		129,978			799		—		—			130,777
Contract revenues in excess of billings		79,477			1,718		—		—			81,195
Inventories		35,963			—		—		—			35,963
Prepaid expenses and other current assets		66,919			218		477		—			67,614
Total current assets		324,372			4,882		479		—			329,733
PROPERTY AND EQUIPMENT—Net		430,192			18		—		—			430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net		86,004			—		—		—			86,004
INVENTORIES — Noncurrent		41,646			—		—		—			41,646
INVESTMENTS IN JOINT VENTURES		3,761			—		—		—			3,761
RECEIVABLES FROM AFFILIATES		18,326			6,009		70,738		(95,073	)		—
INVESTMENTS IN SUBSIDIARIES		3,706			—		621,984		(625,690	)		—
OTHER		6,702			3		65		—			6,770
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	118,619		$	227	$	—	$	—		$	118,846
Accrued expenses		62,861			509		8,907		—			72,277
Billings in excess of contract revenues		6,964			97		—		—			7,061
Current portion of long term debt		1,424			—		6,082		—			7,506
Total current liabilities		189,868			833		14,989		—			205,690
7 3/8% SENIOR NOTES		—			—		271,998		—			271,998
REVOLVING CREDIT FACILITY		—			—		20,000		—			20,000
NOTE PAYABLE		323			—		53,469		—			53,792
DEFERRED INCOME TAXES		(783	)		—		74,789		—			74,006
PAYABLES TO AFFILIATES		85,859			3,505		5,709		(95,073	)		—
OTHER		20,326			—		139		—			20,465
Total liabilities		295,593			4,338		441,093		(95,073	)		645,951
TOTAL EQUITY		619,116			6,574		252,173		(625,690	)		252,173
TOTAL	$	914,709		$	10,912	$	693,266	$	(720,763	)	$	898,124

Schedule Of Condensed Consolidating Operations And Comprehensive Income

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	356,288		$	—		$	—		$	(977	)	$	355,311
Costs of contract revenues		(309,188	)		(2,854	)		—			977			(311,065	)
Gross profit		47,100			(2,854	)		—			—			44,246
OPERATING EXPENSES:
General and administrative expenses		39,891			4			(55	)		—			39,840
Loss on sale of assets—net		677			—			—			—			677
Operating income (loss)		6,532			(2,858	)		55			—			3,729
Interest expense—net		(365	)		—			(11,259	)		—			(11,624	)
Equity in earnings of subsidiaries		(178	)		—			2,041			(1,863	)		—
Equity in earnings of joint ventures		13			—			—			—			13
Other expense		(1,273	)		(8	)		—			—			(1,281	)
Income (loss) before income taxes		4,729			(2,866	)		(9,163	)		(1,863	)		(9,163	)
Income tax benefit		—			—			3,409			—			3,409
Net income (loss)	$	4,729		$	(2,866	)	$	(5,754	)	$	(1,863	)	$	(5,754	)
Comprehensive income (loss)	$	4,729		$	(2,309	)	$	(5,197	)	$	(2,420	)	$	(5,197	)

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
Contract revenues	$	407,505		$	7,510		$	—		$	(1,581	)	$	413,434
Costs of contract revenues		(364,388	)		(7,658	)		—			1,581			(370,465	)
Gross profit		43,117			(148	)		—			—			42,969
OPERATING EXPENSES:
General and administrative expenses		33,491			—			—			—			33,491
Impairment of goodwill		2,750			—			—			—			2,750
Gain on sale of assets—net		(3	)		—			—			—			(3	)
Operating income (loss)		6,879			(148	)		—			—			6,731
Interest expense—net		(259	)		—			(10,938	)		—			(11,197	)
Equity in earnings of subsidiaries		4			—			1,519			(1,523	)		—
Equity in loss of joint ventures		(3,714	)		—			—			—			(3,714	)
Other income		(1,052	)		(7	)		—			—			(1,059	)
Income (loss) before income taxes		1,858			(155	)		(9,419	)		(1,523	)		(9,239	)
Income tax (provision) benefit		—			(180	)		3,753			—			3,573
Net income (loss)	$	1,858		$	(335	)	$	(5,666	)	$	(1,523	)	$	(5,666	)
Comprehensive income (loss)	$	1,858		$	(1,090	)	$	(6,421	)	$	(768	)	$	(6,421	)

Condensed Cash Flow Statement

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Cash provided by (used in) operating activities	$	19,388		$	(2,210	)	$	(9,918	)	$	—		$	7,260
INVESTING ACTIVITIES:
Purchases of property and equipment		(32,150	)		—			—			—			(32,150	)
Proceeds from dispositions of property and equipment		10,318			—			—			—			10,318
Net change in accounts with affiliates		13,734			—			—			(13,734	)		—
Net cash flows used in investing activities		(8,098	)		—			—			(13,734	)		(21,832	)
FINANCING ACTIVITIES:
Repayments of long term note payable		—			—			(531	)		—			(531	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayments of equipment debt		(708	)		—			—			—			(708	)
Net change in accounts with affiliates		20,686			884			(35,304	)		13,734			—
Intercompany dividends		(23,000	)		—			23,000			—			—
Exercise of options and purchases from employee stock plans		—			—			415			—			415
Taxes paid on settlement of vested share awards		—			—			(162	)		—			(162	)
Borrowings under revolving loans		—			—			91,500			—			91,500
Repayments of revolving loans		—			—			(66,500	)		—			(66,500	)
Net cash flows provided by (used in) financing activities		(3,022	)		884			9,918			13,734			21,514
Effect of foreign currency exchange rates on cash and cash equivalents		—			110			—			—			110
Net increase (decrease) in cash and cash equivalents		8,268			(1,216	)		—			—			7,052
Cash and cash equivalents at beginning of period		12,035			2,147			2			—			14,184
Cash and cash equivalents at end of period	$	20,303		$	931		$	2		$	—		$	21,236

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(In thousands)
	Subsidiary Guarantors			Non-Guarantor Subsidiaries			GLDD Corporation			Eliminations			Consolidated Totals
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	$	4,427		$	(322	)	$	(10,986	)	$	—		$	(6,881	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(36,830	)		—			—			—			(36,830	)
Proceeds from dispositions of property and equipment		115			—			—			—			115
Net change in accounts with affiliates		(12,571	)		—			—			12,571			—
Net cash flows used in investing activities		(49,286	)		—			—			12,571			(36,715	)
FINANCING ACTIVITIES:
Deferred financing fees		—			—			(29	)		—			(29	)
Taxes paid on settlement of vested share awards		—			—			(265	)		—			(265	)
Repayments of term loan facility		—			—			(2,500	)		—			(2,500	)
Repayment of equipment debt		(506	)		—			—			—			(506	)
Proceeds from equipment debt		2			—			408			—			410
Net change in accounts with affiliates		—			1,232			11,339			(12,571	)		—
Capital contributions		16,800			—			(16,800	)		—			—
Exercise of options and purchases from employee stock plans		—			—			846			—			846
Excess income tax benefit from share-based compensation		—			—			(13	)		—			(13	)
Borrowings under revolving loans		—			—			79,000			—			79,000
Repayments of revolving loans		—			—			(61,000	)		—			(61,000	)
Net cash flows provided by financing activities		16,296			1,232			10,986			(12,571	)		15,943
Effect of foreign currency exchange rates on cash and cash equivalents		—			(40	)		—			—			(40	)
Net increase (decrease) in cash and cash equivalents		(28,563	)		870			—			—			(27,693	)
Cash and cash equivalents at beginning of period		41,724			663			2			—			42,389
Cash and cash equivalents at end of period	$	13,161		$	1,533		$	2		$	—		$	14,696

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Basis Of Presentation (Narrative) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2016 segment	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Average equipment-related costs of total costs of contract revenue		21.00%
Number of operating Segments | segment		3
Number of reportable segments | segment		2
Impairment of goodwill | $	$ 2,750		$ 2,750
Unamortized debt issuance costs | $				$ 3,502
Terra and GLEI [Member]
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments | segment		1
Terra Contracting Services [Member]
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Impairment of goodwill | $	$ 2,750

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Earnings Per Share (Narrative) (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Shares excluded from computation of diluted earnings per share	1,603	1,019	1,694
Securities excluded from computation of earnings per share amount due to loss	651		523	488

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (1,719)	$ 2,724	$ (5,754)	$ (5,666)
Weighted-average common shares outstanding — basic	60,711	60,473	60,609	60,369
Effect of stock options and restricted stock units		451
Weighted-average common shares outstanding — diluted	60,711	60,924	60,609	60,369
Earnings (loss) per share — basic	$ (0.03)	$ 0.05	$ (0.10)	$ (0.09)
Earnings (loss) per share — diluted	$ (0.03)	$ 0.05	$ (0.10)	$ (0.09)

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Accounts Receivable And Contracts In Progress (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable [Line Items]
Retainage	$ 17,392	$ 27,203
Accounts receivable, gross	115,374	135,101
Allowance for doubtful accounts	(454)	(754)
Total accounts receivable—net	114,920	134,347
Current portion of accounts receivable—net	110,940	130,777
Long-term accounts receivable and retainage	3,980	3,570
Completed Contracts [Member]
Accounts Notes And Loans Receivable [Line Items]
contracts	23,742	37,111
Contracts In Progress [Member]
Accounts Notes And Loans Receivable [Line Items]
contracts	$ 74,240	$ 70,787

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Accounts Receivable And Contracts In Progress (Components Of Contracts In Progress) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable [Line Items]
Costs and earnings in excess of billings for contracts in progress	$ 49,793	$ 53,876
Costs and earnings in excess of billings for completed contracts	25,122	27,319
Total contract revenues in excess of billings	74,915	81,195
Total billings in excess of contract revenues	(4,971)	(7,061)
Costs And Earnings In Excess Of Billings [Member]
Accounts Notes And Loans Receivable [Line Items]
Costs and earnings for contracts in progress	360,254	230,159
Amounts billed	(310,461)	(176,283)
Billings In Excess Of Costs And Earnings [Member]
Accounts Notes And Loans Receivable [Line Items]
Costs and earnings for contracts in progress	280,115	200,489
Amounts billed	$ (285,086)	$ (207,550)

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Accounts Receivable And Contracts In Progress (Narrative) (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Receivables [Abstract]
Costs in excess of billings	$ 17,910

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Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Insurance	$ 16,858	$ 16,291
Accumulated deficit in joint ventures	14,359	15,408
Interest	9,154	8,743
Payroll and employee benefits	9,076	13,317
Percentage of completion adjustment	1,769	2,837
Income and other taxes	1,519	3,726
Fuel hedge contracts		4,388
Other	9,444	7,567
Total accrued expenses	$ 62,179	$ 72,277

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Long-Term Debt (Narrative) (Details) - USD ($)		3 Months Ended	6 Months Ended
	Jun. 24, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Nov. 04, 2014	Jun. 04, 2012
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 199,000,000							$ 210,000,000
Net book value of related assets			$ 135,813,000
Fixed Charge Coverage Ratio			1.25%
Revolving credit facility			$ 45,000,000		$ 20,000,000
Letters of credit outstanding			53,424,000
Letter of credit remaining borrowing capacity			100,576,000
Borrowed aggregate principal amount					2,640,000	$ 47,360,000
Purchases of property and equipment			32,150,000	$ 36,830,000
Long-term Debt, Current Maturities			10,469,000		$ 7,506,000
7.375% Senior Notes Due In 2019 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 275,000,000
Debt Instrument, Interest Rate, Stated Percentage			7.375%
Maturity date			Feb. 01, 2019
If Redeemed In 2015 [Member] | 7.375% Senior Notes Due In 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			103.70%
If Redeemed In 2016 [Member] | 7.375% Senior Notes Due In 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			101.80%
If Redeemed After 2016 [Member] | 7.375% Senior Notes Due In 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			100.00%
Term Loan Facility [Member]
Debt Instrument [Line Items]
Net book value of related assets			$ 48,926,000
Debt instrument, face amount							$ 50,000,000
Debt Instrument, Term			5 years
Term Loan Facility Bear Interest Fixed Rate			4.655%
Debt Instrument, Interest Rate, Increase (Decrease)			2.00%
Percentage of principal to be repaid yearly during first two years of term			10.00%
Percentage of principal to be repaid yearly during third and fourth years of term			20.00%
Percentage of principal to be repaid during fifth year of term			25.00%
Vessels and Ancillary Equipment [Member]
Debt Instrument [Line Items]
Purchases of property and equipment		$ 15,569,000
Operating leases expiration year			2023
Long-term Debt, Current Maturities		2,418,000
Long-term Debt, Excluding Current Maturities		$ 15,896,000
Vessels and Ancillary Equipment [Member] | 5.75% Senior Notes Due In 2023 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		5.75%
Maximum [Member]
Debt Instrument [Line Items]
Total leverage ratio for fiscal quarter ending June 30, 2016			5.00%
Total leverage ratio for fiscal quarter ending September 30, 2016			4.75%
Total leverage ratio for any fiscal quarter ending thereafter			4.50%
Aggregate capital expenditures for fiscal year ending December 30, 2016			$ 105,000,000
Aggregate capital expenditures during any fiscal year thereafter			$ 45,000,000
Maximum [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.50%
Maximum [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.50%
Minimum [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.50%
Minimum [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.50%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								199,000,000
Line of credit facility optional increase capacity								15,000,000
Revolving credit facility, interest rate description			The Credit Agreement is collateralized by a substantial portion of the Company's operating equipment with a net book value at March 31, 2016 of $148,785. Depending on the Company's consolidated leverage ratio (as defined in the Credit Agreement), borrowings under the revolving credit facility will bear interest at the option of the Company at either a LIBOR rate plus a margin of between 1.50% to 2.50% per annum or a base rate plus a margin of between 0.50% to 1.50% per annum.
Repayments of Lines of Credit	$ 10,000,000
Multicurrency [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								50,000,000
Swingline Loans [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 10,000,000

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Impairment Of Goodwill (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Goodwill [Line Items]
Impairment of goodwill	$ 2,750	$ 2,750
Terra Contracting Services [Member]
Goodwill [Line Items]
Impairment of goodwill	$ 2,750

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Impairment Of Goodwill (Change In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Goodwill [Line Items]
Goodwill, Beginning Balance		$ 86,326
Impairment of goodwill	$ (2,750)	(2,750)
Goodwill, Ending Balance	83,576	83,576
Dredging Segment [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		76,576
Goodwill, Ending Balance	76,576	76,576
Environmental & Remediation Segment [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		9,750
Impairment of goodwill		(2,750)
Goodwill, Ending Balance	$ 7,000	$ 7,000

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Fair Value Measurements (Fair Value Measurements At Reporting Date Using) (Details) - Fuel Hedge Contracts [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Net Asset (Liability)	$ 1,217	$ 4,388
Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Net Asset (Liability)	$ 1,217	$ 4,388

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Fair Value Measurements (Narrative) (Details) gal in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) $ / gal gal	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Derivatives Fair Value [Line Items]
Derivative underlying hedge percent		80.00%
Derivative, Nonmonetary Notional Amount, Volume | gal		11.0
Fair value hedge assets		$ 1,217,000
Fair value hedge liabilities				$ 4,388,000
Impairment of goodwill	$ 2,750,000		$ 2,750,000
7.375% Senior Notes Due In 2019 [Member]
Derivatives Fair Value [Line Items]
Debt instrument, face amount		$ 275,000,000
Stated interest rate		7.375%
Maturity date		Feb. 01, 2019
7.375% Senior Notes Due In 2019 [Member] | Fair Value, Inputs, Level 1 [Member]
Derivatives Fair Value [Line Items]
Fair value of debt		$ 263,313,000
Terra Contracting Services [Member]
Derivatives Fair Value [Line Items]
Impairment of goodwill	$ 2,750,000
Minimum [Member]
Derivatives Fair Value [Line Items]
Fixed price range | $ / gal		1.02
Maximum [Member]
Derivatives Fair Value [Line Items]
Fixed price range | $ / gal		1.71

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Fair Value Measurements (Schedule of Balance Sheet Location Fuel Hedge Contracts) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives Fair Value [Line Items]
Fair value hedge assets	$ 1,217
Fair value hedge liabilities		$ 4,388
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | Fuel Hedge Contracts [Member]
Derivatives Fair Value [Line Items]
Fair value hedge assets	$ 1,217
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Fuel Hedge Contracts [Member]
Derivatives Fair Value [Line Items]
Fair value hedge liabilities		$ 4,388

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Fair Value Measurements (Fair Value Measurements Using Significant Unobservable) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2015
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Impairment of goodwill	$ (2,750)	$ (2,750)
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 86,326	$ 86,326
Impairment of goodwill			(2,750)
Ending balance			$ 83,576

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Fair Value Measurements (Changes In Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Cumulative translation adjustments—net of tax	[1]	$ 148	$ 53	$ 557	$ (755)

[1] Net of income tax (provision) benefit of $(99) and $(35) for the three months ended June 30, 2016 and 2015, respectively and $(370) and $500 for the six months ended June 30, 2016 and 2015, respectively.

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Share-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units	716
Share-based compensation expense		$ 1,079	$ 1,001	$ 2,006	$ 2,058
Employees And Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares available for grant		5,800		5,800

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Commitments And Contingencies (Narrative) (Details) - USD ($)			6 Months Ended
	Feb. 05, 2016	Jan. 14, 2015	Jun. 30, 2016
Commitments And Contingencies [Line Items]
Outstanding performance bonds			$ 1,067,719,000
Revenue value remaining from outstanding performance bonds			488,122,000
Tentative settlement subject to final documentation	$ 275,000
Proceeds from Legal Settlements		$ 5,309,000
Discontinued Operations [Member]
Commitments And Contingencies [Line Items]
Outstanding performance bonds			41,082,000
Minimum [Member]
Commitments And Contingencies [Line Items]
Bids bond range			$ 1,000,000
Warranty periods			1 year
Maximum [Member]
Commitments And Contingencies [Line Items]
Bids bond range			$ 10,000,000
Warranty periods			3 years

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Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Schedule Of Equity Method Investments [Line Items]
Accumulated deficit in joint ventures		$ 14,359	$ 15,408
TerraSea Environmental Solutions [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership percentage		50.00%
Other current assets		$ 24,782	27,592
Accumulated deficit in joint ventures		$ 14,359	$ 14,271
Provision for losses to be assumed	$ 1,506

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Business Dispositions (Narrative) (Details) $ in Thousands	Apr. 23, 2014 USD ($)
NASDI and Yankee
Business Acquisition [Line Items]
Proceeds from Divestiture of Businesses	$ 5,309

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Segment Information (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) segment	Jun. 30, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Contract revenues	$ 192,192	$ 238,877	$ 355,311	$ 413,434
Dredging Segment [Member] | Foreign [Member]
Segment Reporting Information [Line Items]
Contract revenues	$ 11,683	$ 47,539	$ 13,192	$ 89,238

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Segment Information (Segment Reporting By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Contract revenues	$ 192,192	$ 238,877	$ 355,311	$ 413,434
Operating income (loss)	3,818	13,989	3,729	6,731
Dredging Segment [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	10,624	18,115	21,209	25,989
Environmental And Infrastructure Segment [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	(6,806)	(4,126)	(17,480)	(19,258)
Operating Segment [Member] | Dredging Segment [Member]
Segment Reporting Information [Line Items]
Contract revenues	153,661	190,046	298,674	344,174
Operating Segment [Member] | Environmental And Infrastructure Segment [Member]
Segment Reporting Information [Line Items]
Contract revenues	39,782	49,926	58,872	71,478
Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Contract revenues	$ (1,251)	$ (1,095)	$ (2,235)	$ (2,218)

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Subsidiary Guarantors (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
7 3/8% SENIOR NOTES	$ 272,498	$ 271,998
Senior Notes [Member]
Condensed Financial Statements, Captions [Line Items]
7 3/8% SENIOR NOTES	$ 275,000
Debt Instrument, Interest Rate, Stated Percentage	7.375%
Owned Domestic Subsidiaries Percent	100.00%

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Subsidiary Guarantors (Condensed Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 21,236	$ 14,184	$ 14,696	$ 42,389
Accounts receivable—net	110,940	130,777
Contract revenues in excess of billings	74,915	81,195
Inventories	35,053	35,963
Prepaid expenses and other current assets	76,107	67,614
Total current assets	318,251	329,733
PROPERTY AND EQUIPMENT—Net	416,484	430,210
GOODWILL AND OTHER INTANGIBLE ASSETS—Net	85,544	86,004
INVENTORIES—Noncurrent	46,867	41,646
INVESTMENTS IN JOINT VENTURES	5,293	3,761
OTHER	7,470	6,770
TOTAL	879,909	898,124
LIABILITIES AND EQUITY
Accounts payable	97,088	118,846
Accrued expenses	62,179	72,277
Revolving credit facility	45,000
Billings in excess of contract revenues	4,971	7,061
Current portion of long term debt	10,469	7,506
Total current liabilities	219,707	205,690
7 3/8% SENIOR NOTES	272,498	271,998
NOTES PAYABLE	47,821	53,792
DEFERRED INCOME TAXES	70,979	74,006
OTHER	19,669	20,465
Total liabilities	630,674	645,951
TOTAL EQUITY	249,235	252,173	252,168	255,963
TOTAL	879,909	898,124
REVOLVING CREDIT FACILITY	45,000	20,000
Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	20,303	12,035	13,161	41,724
Accounts receivable—net	110,844	129,978
Contract revenues in excess of billings	72,873	79,477
Inventories	35,053	35,963
Prepaid expenses and other current assets	75,644	66,919
Total current assets	314,717	324,372
PROPERTY AND EQUIPMENT—Net	416,476	430,192
GOODWILL AND OTHER INTANGIBLE ASSETS—Net	85,544	86,004
INVENTORIES—Noncurrent	46,867	41,646
INVESTMENTS IN JOINT VENTURES	5,293	3,761
RECEIVABLES FROM AFFILIATES	10,321	18,326
INVESTMENTS IN SUBSIDIARIES	3,539	3,706
OTHER	6,787	6,702
TOTAL	889,544	914,709
LIABILITIES AND EQUITY
Accounts payable	96,990	118,619
Accrued expenses	52,248	62,861
Billings in excess of contract revenues	4,856	6,964
Current portion of long term debt	1,441	1,424
Total current liabilities	155,535	189,868
NOTES PAYABLE	256	323
Deferred Tax Assets	(783)	(783)
PAYABLES TO AFFILIATES	88,088	85,859
OTHER	19,510	20,326
Total liabilities	262,606	295,593
TOTAL EQUITY	626,938	619,116
TOTAL	889,544	914,709
Non Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	931	2,147	1,533	663
Accounts receivable—net	96	799
Contract revenues in excess of billings	2,042	1,718
Prepaid expenses and other current assets	265	218
Total current assets	3,334	4,882
PROPERTY AND EQUIPMENT—Net	8	18
RECEIVABLES FROM AFFILIATES	6,524	6,009
OTHER	1	3
TOTAL	9,867	10,912
LIABILITIES AND EQUITY
Accounts payable	98	227
Accrued expenses	614	509
Billings in excess of contract revenues	115	97
Total current liabilities	827	833
PAYABLES TO AFFILIATES	5,268	3,505
Total liabilities	6,095	4,338
TOTAL EQUITY	3,772	6,574
TOTAL	9,867	10,912
GLDD Corporation [Member]
ASSETS
Cash and cash equivalents	2	2	$ 2	$ 2
Prepaid expenses and other current assets	198	477
Total current assets	200	479
RECEIVABLES FROM AFFILIATES	82,176	70,738
INVESTMENTS IN SUBSIDIARIES	627,171	621,984
OTHER	682	65
TOTAL	710,229	693,266
LIABILITIES AND EQUITY
Accrued expenses	9,317	8,907
Revolving credit facility	45,000
Current portion of long term debt	9,028	6,082
Total current liabilities	63,345	14,989
7 3/8% SENIOR NOTES	272,498	271,998
NOTES PAYABLE	47,565	53,469
DEFERRED INCOME TAXES	71,762	74,789
PAYABLES TO AFFILIATES	5,665	5,709
OTHER	159	139
Total liabilities	460,994	441,093
TOTAL EQUITY	249,235	252,173
TOTAL	710,229	693,266
REVOLVING CREDIT FACILITY		20,000
Consolidation Eliminations [Member]
ASSETS
RECEIVABLES FROM AFFILIATES	(99,021)	(95,073)
INVESTMENTS IN SUBSIDIARIES	(630,710)	(625,690)
TOTAL	(729,731)	(720,763)
LIABILITIES AND EQUITY
PAYABLES TO AFFILIATES	(99,021)	(95,073)
Total liabilities	(99,021)	(95,073)
TOTAL EQUITY	(630,710)	(625,690)
TOTAL	$ (729,731)	$ (720,763)

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Subsidiary Guarantors (Condensed Consolidated Statement Operations And Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Contract revenues	$ 192,192	$ 238,877	$ 355,311	$ 413,434
Costs of contract revenues	(167,936)	(206,590)	(311,065)	(370,465)
Gross profit	24,256	32,287	44,246	42,969
General and administrative expenses	19,751	15,543	39,840	33,491
Impairment of goodwill		2,750		2,750
(Gain) loss on sale of assets—net	687	5	677	(3)
Operating income	3,818	13,989	3,729	6,731
Interest expense—net	(5,903)	(5,567)	(11,624)	(11,197)
Equity in earnings (loss) of joint ventures	128	(2,616)	13	(3,714)
Other income (expense)	(518)	(618)	(1,281)	(1,059)
Income (loss) before income taxes	(2,475)	5,188	(9,163)	(9,239)
Income tax (provision) benefit	756	(2,464)	3,409	3,573
Net income (loss)	(1,719)	2,724	(5,754)	(5,666)
Comprehensive income (loss)	(1,571)	2,777	(5,197)	(6,421)
Consolidation Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Contract revenues	(517)	(592)	(977)	(1,581)
Costs of contract revenues	517	592	977	1,581
Equity in earnings (loss) of subsidiaries	(3,094)	(10,696)	(1,863)	(1,523)
Income (loss) before income taxes	(3,094)	(10,696)	(1,863)	(1,523)
Net income (loss)	(3,094)	(10,696)	(1,863)	(1,523)
Comprehensive income (loss)	(3,242)	(10,749)	(2,420)	(768)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Contract revenues	192,709	235,151	356,288	407,505
Costs of contract revenues	(167,005)	(203,184)	(309,188)	(364,388)
Gross profit	25,704	31,967	47,100	43,117
General and administrative expenses	19,806	15,543	39,891	33,491
Impairment of goodwill		2,750		2,750
(Gain) loss on sale of assets—net	687	5	677	(3)
Operating income	5,211	13,669	6,532	6,879
Interest expense—net	(184)	40	(365)	(259)
Equity in earnings (loss) of subsidiaries	(96)		(178)	4
Equity in earnings (loss) of joint ventures	128	(2,616)	13	(3,714)
Other income (expense)	(518)	(618)	(1,273)	(1,052)
Income (loss) before income taxes	4,541	10,475	4,729	1,858
Income tax (provision) benefit	1
Net income (loss)	4,542	10,475	4,729	1,858
Comprehensive income (loss)	4,542	10,475	4,729	1,858
Non Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Contract revenues		4,318		7,510
Costs of contract revenues	(1,448)	(3,998)	(2,854)	(7,658)
Gross profit	(1,448)	320	(2,854)	(148)
General and administrative expenses			4
Operating income	(1,448)	320	(2,858)	(148)
Other income (expense)			(8)	(7)
Income (loss) before income taxes	(1,448)	320	(2,866)	(155)
Income tax (provision) benefit		(99)		(180)
Net income (loss)	(1,448)	221	(2,866)	(335)
Comprehensive income (loss)	(1,300)	274	(2,309)	(1,090)
GLDD Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
General and administrative expenses	(55)		(55)
Operating income	55		55
Interest expense—net	(5,719)	(5,607)	(11,259)	(10,938)
Equity in earnings (loss) of subsidiaries	3,190	10,696	2,041	1,519
Income (loss) before income taxes	(2,474)	5,089	(9,163)	(9,419)
Income tax (provision) benefit	755	(2,365)	3,409	3,753
Net income (loss)	(1,719)	2,724	(5,754)	(5,666)
Comprehensive income (loss)	$ (1,571)	$ 2,777	$ (5,197)	$ (6,421)

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Subsidiary Guarantors (Condensed Consolidated of Cash Flow) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	$ 7,260	$ (6,881)
INVESTING ACTIVITIES:
Purchases of property and equipment	(32,150)	(36,830)
Proceeds from dispositions of property and equipment	10,318	115
Net cash flows used in investing activities	(21,832)	(36,715)
FINANCING ACTIVITIES:
Deferred financing fees		(29)
Taxes paid on settlement of vested share awards	(162)	(265)
Repayments of long term note payable	(531)
Repayments of term loan facility	(2,500)	(2,500)
Repayments of equipment debt	(708)	(506)
Proceeds from equipment debt		410
Exercise of options and purchases from employee stock plans	415	846
Excess income tax benefit from share-based compensation		(13)
Borrowings under revolving loans	91,500	79,000
Repayments of revolving loans	(66,500)	(61,000)
Net cash provided by financing activities	21,514	15,943
Effect of foreign currency exchange rates on cash and cash equivalents	110	(40)
Net increase (decrease) in cash and cash equivalents	7,052	(27,693)
Cash and cash equivalents at beginning of period	14,184	42,389
Cash and cash equivalents at end of period	21,236	14,696
Consolidation Eliminations [Member]
INVESTING ACTIVITIES:
Net change in accounts with affiliates	(13,734)	12,571
Net cash flows used in investing activities	(13,734)	12,571
FINANCING ACTIVITIES:
Net change in accounts with affiliates	13,734	(12,571)
Net cash provided by financing activities	13,734	(12,571)
Guarantor Subsidiaries [Member]
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	19,388	4,427
INVESTING ACTIVITIES:
Purchases of property and equipment	(32,150)	(36,830)
Proceeds from dispositions of property and equipment	10,318	115
Net change in accounts with affiliates	13,734	(12,571)
Net cash flows used in investing activities	(8,098)	(49,286)
FINANCING ACTIVITIES:
Repayments of equipment debt	(708)	(506)
Proceeds from equipment debt		2
Net change in accounts with affiliates	20,686
Capital contributions		16,800
Intercompany dividends	(23,000)
Net cash provided by financing activities	(3,022)	16,296
Net increase (decrease) in cash and cash equivalents	8,268	(28,563)
Cash and cash equivalents at beginning of period	12,035	41,724
Cash and cash equivalents at end of period	20,303	13,161
Non Guarantor Subsidiaries [Member]
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	(2,210)	(322)
FINANCING ACTIVITIES:
Net change in accounts with affiliates	884	1,232
Net cash provided by financing activities	884	1,232
Effect of foreign currency exchange rates on cash and cash equivalents	110	(40)
Net increase (decrease) in cash and cash equivalents	(1,216)	870
Cash and cash equivalents at beginning of period	2,147	663
Cash and cash equivalents at end of period	931	1,533
GLDD Corporation [Member]
OPERATING ACTIVITIES:
Net cash flows provided by (used in) operating activities	(9,918)	(10,986)
FINANCING ACTIVITIES:
Deferred financing fees		(29)
Taxes paid on settlement of vested share awards	(162)	(265)
Repayments of long term note payable	(531)
Repayments of term loan facility	(2,500)	(2,500)
Proceeds from equipment debt		408
Net change in accounts with affiliates	(35,304)	11,339
Capital contributions		(16,800)
Intercompany dividends	23,000
Exercise of options and purchases from employee stock plans	415	846
Excess income tax benefit from share-based compensation		(13)
Borrowings under revolving loans	91,500	79,000
Repayments of revolving loans	(66,500)	(61,000)
Net cash provided by financing activities	9,918	10,986
Cash and cash equivalents at beginning of period	2	2
Cash and cash equivalents at end of period	$ 2	$ 2