[14] Separate Financial Information of Subsidiary Guarantors of Indebtedness

As discussed in Note 4 — Financial Commitments, the Company’s obligation to pay principal and interest on its 7.625% senior unsecured notes due November 1, 2018, is guaranteed on a joint and several basis by substantially all of the Company’s existing and future subsidiaries that guarantee obligations under the Company’s Amended Credit Agreement (the “Guarantors”). The guarantees are full and unconditional and the Guarantors are 100%-owned by the Company.

The following supplemental condensed consolidating financial information reflects the summarized financial information of the Company as the issuer of the senior unsecured notes, the Guarantors and the Company’s non- guarantor subsidiaries on a combined basis.

CONDENSED CONSOLIDATING BALANCE SHEET - DECEMBER 31, 2014

(in thousands)




					Non-
	Tutor Perini		Guarantor		Guarantor				Total
	Corporation		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and Cash Equivalents	$	75,087	$	36,764	$	23,732	$	—	$	135,583
Restricted Cash		3,369		5,274		35,727		—		44,370
Accounts Receivable		299,427		1,246,635		37,064		(103,622)		1,479,504
Costs and Estimated Earnings in Excess of Billings		70,344		700,362		152		(44,456)		726,402
Deferred Income Taxes		—		15,639		—		2,323		17,962
Other Current Assets		39,196		42,750		24,397		(37,608)		68,735
Total Current Assets		487,423		2,047,424		121,072		(183,363)		2,472,556

Long-term Investments										—
Property and Equipment, net		92,413		430,876		4,313		—		527,602
Intercompany Notes and Receivables		—		122,401		—		(122,401)		—
Other Assets:
Goodwill		—		585,006		—		—		585,006
Intangible Assets, net		—		100,254		—		—		100,254
Investment in Subsidiaries		2,154,562		19,519		50		(2,174,131)		—
Other		83,503		9,847		—		(5,453)		87,897
	$	2,817,901	$	3,315,327	$	125,435	$	(2,485,348)	$	3,773,315

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Maturities of Long-term Debt	$	34,776	$	46,516	$	—	$	—	$	81,292
Accounts Payable		186,958		716,851		3,749		(109,384)		798,174
Billings in Excess of Costs and Estimated Earnings		139,020		185,807		2,672		(8,203)		319,296
Accrued Expenses and Other Current Liabilities		33,018		95,177		58,571		(26,952)		159,814
Total Current Liabilities		393,772		1,044,351		64,992		(144,539)		1,358,576

Long-term Debt, less current maturities		712,460		112,060		—		(40,453)		784,067
Deferred Income Taxes		142,457		7,914		—		—		150,371
Other Long-term Liabilities		112,899		1,897		—		—		114,796
Intercompany Notes and Advances Payable		90,373		—		35,619		(125,992)		—
								—		—
Contingencies and Commitments										—

Stockholders’ Equity		1,365,939		2,149,105		24,824		(2,174,363)		1,365,505
	$	2,817,900	$	3,315,327	$	125,435	$	(2,485,347)	$	3,773,315

CONDENSED CONSOLIDATING BALANCE SHEET - DECEMBER 31, 2013

(in thousands)


					Non-
	Tutor Perini		Guarantor		Guarantor				Total
	Corporation		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and Cash Equivalents	$	88,995	$	18,031	$	12,897	$	—	$	119,923
Restricted Cash		18,833		8,040		15,721		—		42,594
Accounts Receivable		208,227		1,126,012		47,958		(90,951)		1,291,246
Costs and Estimated Earnings in Excess of Billings		99,779		505,979		152		(32,662)		573,248
Deferred Income Taxes		—		15,866		—		(7,626)		8,240
Other Current Assets		37,605		26,234		24,462		(37,632)		50,669
Total Current Assets		453,439		1,700,162		101,190		(168,871)		2,085,920

Long-term Investments		46,283		—		—		—		46,283
Property and Equipment, net		77,562		415,993		4,570		—		498,125
Intercompany Notes and Receivables		—		428,190		—		(428,190)		—
Other Assets:
Goodwill		—		577,756		—		—		577,756
Intangible Assets, net		—		113,740		—		—		113,740
Investment in Subsidiaries		2,181,280		29		50		(2,181,359)		—
Other		70,269		10,528		—		(5,183)		75,614
	$	2,828,833	$	3,246,398	$	105,810	$	(2,783,603)	$	3,397,438

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Maturities of Long-term Debt		50,578		64,080		—		—		114,658
Accounts Payable		162,292		677,997		6,039		(88,103)		758,225
Billings in Excess of Costs and Estimated Earnings		90,267		177,285		34		—		267,586
Accrued Expenses and Other Current Liabilities		58,232		99,257		48,369		(47,841)		158,017
Total Current Liabilities		361,369		1,018,619		54,442		(135,944)		1,298,486

Long-term Debt, less current maturities		575,356		84,053		—		(40,183)		619,226
Deferred Income Taxes		107,448		6,885		—		—		114,333
Other Long-term Liabilities		114,677		3,181		—		—		117,858
Intercompany Notes and Advances Payable		422,448		—		23,462		(445,910)		—

Contingencies and Commitments

Stockholders’ Equity		1,247,535		2,133,660		27,906		(2,161,566)		1,247,535
	$	2,828,833	$	3,246,398	$	105,810	$	(2,783,603)	$	3,397,438

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2014

(in thousands)



	Tutor					Non-
	Perini		Guarantor			Guarantor						Total
	Corporation		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	959,010	$	3,690,075		$	—		$	(156,776)		$	4,492,309
Cost of operations		808,285		3,353,098			(17,740)			(156,776)			3,986,867

Gross profit		150,725		336,977	-		17,740	-		—	-		505,442

General and administrative expenses		80,151		181,714			1,887			—			263,752

INCOME FROM CONSTRUCTION OPERATIONS		70,574		155,263			15,853			—			241,690

Equity in earnings of subsidiaries		95,501		—			—			(95,501)			—
Other income (expense), net		(8,322)		(1,705)			491			—			(9,536)
Interest expense		(40,658)		(4,058)			—			—			(44,716)

Income before income taxes		117,095		149,500	-		16,344	-		(95,501)	-		187,438

Provision for Income Taxes		(9,159)		(63,411)			(6,932)			—			(79,502)

NET INCOME (LOSS)	$	107,936	$	86,089	-	$	9,412	-	$	(95,501)	-	$	107,936

Other Comprehensive Income:
Other Comprehensive Income of Subsidiaries		(433)		—	-		—			433			—
Change in pension benefit plans assets/liabilities		(8,155)		—	-		—			—			(8,155)
Foreign currency translation		—		(637)			—			—			(637)
Change in fair value of investments		—		204			—			—			204
Change in fair value of interest rate swap		348		—			—			—			348
Total other comprehensive income (loss)		(8,240)		(433)			—			433			(8,240)

Total Comprehensive Income (Loss)	$	99,696	$	85,656		$	9,412		$	(95,068)		$	99,696

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2013

(in thousands)



	Tutor					Non-
	Perini		Guarantor			Guarantor						Total
	Corporation		Subsidiaries			Subsidiaries			Eliminations			Consolidated

Revenues	$	680,440	$	3,315,608		$	—		$	179,624		$	4,175,672
Cost of operations		590,675		2,960,569			(22,100)			179,624			3,708,768

Gross profit		89,765		355,039	-		22,100	-		—	-		466,904

General and administrative expenses		77,507		183,723			1,852			—			263,082

INCOME FROM CONSTRUCTION OPERATIONS		12,258		171,316			20,248			—			203,822

Equity in earnings of subsidiaries		122,875		—			—			(122,875)			—
Other income (expense), net		(27,162)		8,075			512			—			(18,575)
Interest expense		(41,987)		(3,645)			—			—			(45,632)

Income before income taxes		65,984		175,746	-		20,760	-		(122,875)	-		139,615

Provision for Income Taxes		21,312		(65,852)			(7,779)			—			(52,319)

NET INCOME (LOSS)	$	87,296	$	109,894	-	$	12,981	-	$	(122,875)	-	$	87,296

Other Comprehensive Income:
Other comprehensive income of subsidiaries		(1,293)		—	-		—			1,293			—
Change in pension benefit plans assets/liabilities		10,910		—			—			—			10,910
Foreign currency translation		—		(738)			—			—			(738)
Change in fair value of investments		—		(555)			—			—			(555)
Change in fair value of interest rate swap		578		—			—			—			578
Total other comprehensive income (loss)		10,195		(1,293)			—			1,293			10,195

Total Comprehensive Income (Loss)	$	97,491	$	108,601		$	12,981		$	(121,582)		$	97,491

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2012

(in thousands)



	Tutor					Non-
	Perini		Guarantor			Guarantor						Total
	Corporation		Subsidiaries			Subsidiaries			Eliminations			Consolidated

Revenues	$	429,926	$	3,769,814		$	—		$	(88,269)		$	4,111,471
Cost of operations		375,914		3,421,877			(13,183)			(88,269)			3,696,339

Gross profit		54,012		347,937	-		13,183	-		—	-		415,132

General and Administrative Expenses		71,983		186,831			1,555			—			260,369
Goodwill and intangible assets impairment		—		376,574			—			—			376,574

INCOME FROM CONSTRUCTION OPERATIONS		(17,971)		(215,468)	-		11,628	-		—	-		(221,811)

Equity in earnings of subsidiaries		(225,100)		—			—			225,100			—
Other income (expense), net		(2,603)		382			364			—			(1,857)
Interest expense		(40,067)		(4,107)			—			—			(44,174)

Income before income taxes		(285,741)		(219,193)	-		11,992	-		225,100	-		(267,842)

Provision for Income Taxes		20,341		(13,155)			(4,744)			—			2,442

NET INCOME (LOSS)	$	(265,400)	$	(232,348)	-	$	7,248	-	$	225,100	-	$	(265,400)

Other Comprehensive Income:
Other comprehensive income of subsidiaries		620		—			—			(620)			—
Tax adjustment on minimum pension liability		(1,610)		—			—			—			(1,610)
Foreign currency translation		—		382			—			—			382
Change in fair value of investments		—		238			—			—			238
Change in fair value of interest rate swap		(974)		—			—			—			(974)
Realized loss on sale of investments recorded in net income (loss)		2,005		—			—			—			2,005
Total other comprehensive income (loss)		41		620			—			(620)			41

Total Comprehensive Income (Loss)	$	(265,359)	$	(231,728)		$	7,248		$	224,480		$	(265,359)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2014

(in thousands)




					Non-
	Tutor Perini		Guarantor		Guarantor				Total
	Corporation		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash Flows from Operating Activities:
Net income (loss)	$	107,936	$	86,089	$	9,412	$	(95,501)	$	107,936
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		4,592		51,109		271		—		55,972
Equity in earnings of subsidiaries		(95,501)		—		—		95,501		—
Stock-based compensation expense		19,256		(641)		—		—		18,615
Excess income tax benefit from stock-based compensation		(787)		—		—		—		(787)
Deferred income taxes		39,186		(17,726)		—		—		21,460
(Gain) loss on sale of investments		1,786		—		—		—		1,786
(Gain) loss on sale of property and equipment		833		(32)		—		—		801
Other long-term liabilities		20,221		(17,147)		—		—		3,074
Other non-cash items		(7,029)		10,302		—		—		3,273
Changes in other components of working capital		(26,100)		(264,203)		21,495		—		(268,808)
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES	$	64,393	$	(152,249)	$	31,178	$	—	$	(56,678)

Cash Flows from Investing Activities:
Acquisition of property and equipment excluding financed purchases		(17,626)		(57,387)		—		—		(75,013)
Proceeds from sale of property and equipment		(784)		6,119		—		—		5,335
Proceeds from sale of available-for-sale securities		44,497		(0)		—		—		44,497
Change in restricted cash		15,464		2,766		(20,006)		—		(1,776)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	$	41,551	$	(48,502)	$	(20,006)	$	—	$	(26,957)

Cash Flows from Financing Activities:
Proceeds from debt		1,078,932		77,807		—		—		1,156,739
Repayment of debt		(957,830)		(68,519)		—		—		(1,026,349)
Business acquisition-related payments		(26,430)		0		—		—		(26,430)
Excess income tax benefit from stock-based compensation		787		—		—		—		787
Issuance of common stock and effect of cashless exercise		(1,772)		1		—		—		(1,771)
Debt Issuance Costs		(3,681)		0		—		—		(3,681)
Increase (decrease) in intercompany advances		(209,858)		210,195		(337)		—		—
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES	$	(119,852)	$	219,484	$	(337)	$	—	$	99,295

Net (Decrease) Increase in Cash and Cash Equivalents		(13,908)		18,733		10,835		—		15,660
Cash and Cash Equivalents at Beginning of Year		88,995		18,031		12,897		—		119,923
Cash and Cash Equivalents at End of Period	$	75,087	$	36,764	$	23,732	$	—	$	135,583

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2013

(in thousands)




					Non-
	Tutor Perini		Guarantor		Guarantor				Total
	Corporation		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash Flows from Operating Activities:
Net income (loss)	$	87,296	$	109,894	$	12,981	$	(122,875)	$	87,296
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		10,893		48,246		271		—		59,410
Equity in earnings of subsidiaries		(122,875)		—		—		122,875		—
Stock-based compensation expense		6,623		—		—		—		6,623
Excess income tax benefit from stock-based compensation		(1,148)		—		—		—		(1,148)
Deferred income taxes		921		8,088		—		—		9,009
(Gain) loss on sale of property and equipment		—		49		—		—		49
Other long-term liabilities		24,359		(1,252)		—		—		23,107
Other non-cash items		(4,341)		622		—		—		(3,719)
Changes in other components of working capital		72,359		(184,543)		(17,715)		—		(129,899)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	$	74,087	$	(18,896)	$	(4,463)	$	—	$	50,728

Cash Flows from Investing Activities:
Acquisition of property and equipment excluding financed purchases		(21,267)		(21,093)		—		—		(42,360)
Proceeds from sale of property and equipment		6		2,657		—		—		2,663
Change in restricted cash		11,403		441		(15,721)		—		(3,877)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	$	(9,858)	$	(17,995)	$	(15,721)	$	—	$	(43,574)

Cash Flows from Financing Activities:
Proceeds from debt		627,520		25,760		—		—		653,280
Repayment of debt		(647,795)		(29,000)		—		—		(676,795)
Business acquisition related payments		(31,038)		—		—		—		(31,038)
Excess income tax benefit from stock-based compensation		1,148		—		—		—		1,148
Issuance of common stock and effect of cashless exercise		(1,882)		—		—		—		(1,882)
Increase (decrease) in intercompany advances		12,150		(16,223)		4,073		—		—
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES	$	(39,897)	$	(19,463)	$	4,073	$	—	$	(55,287)

Net Increase (Decrease) in Cash and Cash Equivalents		24,332		(56,354)		(16,111)		—		(48,133)
Cash and Cash Equivalents at Beginning of Year		64,663		74,385		29,008		—		168,056
Cash and Cash Equivalents at End of Period	$	88,995	$	18,031	$	12,897	$	—	$	119,923

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2012

(in thousands)




					Non-
	Tutor Perini		Guarantor		Guarantor				Total
	Corporation		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash Flows from Operating Activities:
Net income (loss)	$	(265,400)	$	(232,348)	$	7,248	$	225,100	$	(265,400)
Adjustments to reconcile net income to net cash from operating activities:
Goodwill and intangible assets impairment		—		376,574		—		—		376,574
Depreciation and amortization		5,373		55,812		272		—		61,457
Equity in earnings of subsidiaries		225,100		—		—		(225,100)		—
Stock-based compensation expense		9,470		—		—		—		9,470
Adjustment of interest rate swap to fair value		264		—		—		—		264
Deferred income taxes		(20,220)		(5,386)		—		—		(25,606)
Loss on sale of investments		2,699		—						2,699
(Gain) loss on sale of property and equipment		—		316		—		—		316
Other long-term liabilities		(2,518)		(2,586)		—		—		(5,104)
Other non-cash items		(228)		376		—		—		148
Changes in other components of working capital		25,251		(268,525)		20,593		—		(222,681)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	$	(20,209)	$	(75,767)	$	28,113	$	—	$	(67,863)

Cash Flows from Investing Activities:
Acquisition of property and equipment excluding financed purchases		(15,041)		(26,311)		—		—		(41,352)
Proceeds from sale of property and equipment		364		11,395		—		—		11,759
Investments in available-for-sale securities		—		(535)		—		—		(535)
Proceeds from sale of available-for-sale securities		16,553		—		—		—		16,553
Change in restricted cash		(3,251)		(29)		—		—		(3,280)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	$	(1,375)	$	(15,480)	$	—	$	—	$	(16,855)

Cash Flows from Financing Activities:
Proceeds from debt		688,425		—		—		—		688,425
Repayment of debt		(601,282)		(24,840)		—		—		(626,122)
Business acquisition related payments		(11,462)		—		—		—		(11,462)
Issuance of common stock and effect of cashless exercise		(308)		—		—		—		(308)
Debt issuance costs		(1,999)		—		—		—		(1,999)
Increase (decrease) in intercompany advances		(122,063)		137,980		(15,917)		—		—
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES	$	(48,689)	$	113,140	$	(15,917)	$	—	$	48,534

Net Increase (Decrease) in Cash and Cash Equivalents		(70,273)		21,893		12,196		—		(36,184)
Cash and Cash Equivalents at Beginning of Year		134,936		52,492		16,812		—		204,240
Cash and Cash Equivalents at End of Period	$	64,663	$	74,385	$	29,008	$	—	$	168,056