TUTOR PERINI CORPTPC
TUTOR PERINI CORP Fair Value Disclosure
Fair Value Measurements
The fair value hierarchy established by ASC 820 prioritizes the use of inputs used in valuation techniques into the following three levels:
•Level 1 inputs are observable quoted prices in active markets for identical assets or liabilities
•Level 2 inputs are observable, either directly or indirectly, but are not Level 1 inputs
•Level 3 inputs are unobservable
The following fair value hierarchy table presents the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2025 and 2024:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Hierarchy | Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(a) | $ | 734,553 | $ | — | $ | — | $ | 734,553 | $ | 455,084 | $ | — | $ | — | $ | 455,084 | |||||||||||||||||||||||||||||||
Restricted cash(a) | 35,641 | — | — | 35,641 | 9,104 | — | — | 9,104 | |||||||||||||||||||||||||||||||||||||||
Restricted investments(b) | — | 228,959 | — | 228,959 | — | 139,986 | — | 139,986 | |||||||||||||||||||||||||||||||||||||||
Investments in lieu of retention(c) | 27,849 | 159,142 | — | 186,991 | 38,359 | 106,765 | — | 145,124 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 798,043 | $ | 388,101 | $ | — | $ | 1,186,144 | $ | 502,547 | $ | 246,751 | $ | — | $ | 749,298 | |||||||||||||||||||||||||||||||
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(a)Includes money market funds and short-term investments with maturity dates of three months or less when acquired.
(b)Restricted investments, as of December 31, 2025 and 2024, consist of AFS debt securities, which are valued based on pricing models determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
(c)Investments in lieu of retention are included in retention receivable as of December 31, 2025 and 2024, and are composed of money market funds of $27.8 million and $38.4 million, respectively, and AFS debt securities of $159.1 million and $106.8 million, respectively. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of AFS debt securities are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
Investments in AFS debt securities consisted of the following as of December 31, 2025 and 2024:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||
| (in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||
| Restricted investments: | |||||||||||||||||||||||||||||
| Corporate debt securities | $ | 205,584 | $ | 1,900 | $ | (472) | $ | 207,012 | $ | 118,421 | $ | 603 | $ | (1,242) | $ | 117,782 | |||||||||||||
| U.S. government agency securities | 12,300 | 11 | (329) | 11,982 | 16,323 | 35 | (663) | 15,695 | |||||||||||||||||||||
| Municipal bonds | 10,282 | 32 | (534) | 9,780 | 7,159 | — | (831) | 6,328 | |||||||||||||||||||||
| Corporate certificates of deposit | 198 | — | (13) | 185 | 200 | — | (19) | 181 | |||||||||||||||||||||
| Total restricted investments | 228,364 | 1,943 | (1,348) | 228,959 | 142,103 | 638 | (2,755) | 139,986 | |||||||||||||||||||||
| Investments in lieu of retention: | |||||||||||||||||||||||||||||
| Corporate debt securities | 140,749 | 844 | (38) | 141,555 | 106,014 | 224 | (491) | 105,747 | |||||||||||||||||||||
| U.S. government agency securities | 4,337 | — | (43) | 4,294 | — | — | — | — | |||||||||||||||||||||
| Municipal bonds | 13,349 | 218 | (274) | 13,293 | 830 | 188 | — | 1,018 | |||||||||||||||||||||
| Total investments in lieu of retention | 158,435 | 1,062 | (355) | 159,142 | 106,844 | 412 | (491) | 106,765 | |||||||||||||||||||||
| Total AFS debt securities | $ | 386,799 | $ | 3,005 | $ | (1,703) | $ | 388,101 | $ | 248,947 | $ | 1,050 | $ | (3,246) | $ | 246,751 | |||||||||||||
The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual AFS debt securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024:
| As of December 31, 2025 | ||||||||||||||||||||||||||
| Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||
| (in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
| Restricted investments: | ||||||||||||||||||||||||||
| Corporate debt securities | $ | 57,673 | $ | (221) | $ | 20,907 | $ | (251) | $ | 78,580 | $ | (472) | ||||||||||||||
| U.S. government agency securities | 3,056 | (31) | 3,550 | (298) | 6,606 | (329) | ||||||||||||||||||||
| Municipal bonds | 2,171 | (7) | 4,894 | (527) | 7,065 | (534) | ||||||||||||||||||||
| Corporate certificates of deposit | — | — | 185 | (13) | 185 | (13) | ||||||||||||||||||||
| Total restricted investments | 62,900 | (259) | 29,536 | (1,089) | 92,436 | (1,348) | ||||||||||||||||||||
| Investments in lieu of retention: | ||||||||||||||||||||||||||
| Corporate debt securities | 4,796 | (37) | 2,982 | (1) | 7,778 | (38) | ||||||||||||||||||||
| U.S. government agency securities | 4,294 | (43) | — | — | 4,294 | (43) | ||||||||||||||||||||
| Municipal bonds | 11,855 | (274) | — | — | 11,855 | (274) | ||||||||||||||||||||
| Total investments in lieu of retention | 20,945 | (354) | 2,982 | (1) | 23,927 | (355) | ||||||||||||||||||||
| Total AFS debt securities | $ | 83,845 | $ | (613) | $ | 32,518 | $ | (1,090) | $ | 116,363 | $ | (1,703) | ||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||
| Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||
| (in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
| Restricted investments: | ||||||||||||||||||||||||||
| Corporate debt securities | $ | 23,985 | $ | (159) | $ | 30,384 | $ | (1,083) | $ | 54,369 | $ | (1,242) | ||||||||||||||
| U.S. government agency securities | 4,371 | (43) | 10,699 | (620) | 15,070 | (663) | ||||||||||||||||||||
| Municipal bonds | 704 | (13) | 5,560 | (818) | 6,264 | (831) | ||||||||||||||||||||
| Corporate certificates of deposit | — | — | 181 | (19) | 181 | (19) | ||||||||||||||||||||
| Total restricted investments | 29,060 | (215) | 46,824 | (2,540) | 75,884 | (2,755) | ||||||||||||||||||||
| Investments in lieu of retention: | ||||||||||||||||||||||||||
| Corporate debt securities | 24,470 | (149) | 37,755 | (342) | 62,225 | (491) | ||||||||||||||||||||
| Total investments in lieu of retention | 24,470 | (149) | 37,755 | (342) | 62,225 | (491) | ||||||||||||||||||||
| Total AFS debt securities | $ | 53,530 | $ | (364) | $ | 84,579 | $ | (2,882) | $ | 138,109 | $ | (3,246) | ||||||||||||||
The amortized cost and fair value of AFS debt securities by contractual maturity as of December 31, 2025 are summarized in the table below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
| (in thousands) | Amortized Cost | Fair Value | |||||||||
| Due within one year | $ | 82,463 | $ | 82,483 | |||||||
| Due after one year through five years | 290,855 | 292,585 | |||||||||
| Due after five years | 13,481 | 13,033 | |||||||||
| Total | $ | 386,799 | $ | 388,101 | |||||||
The carrying values of receivables, payables and other amounts arising out of normal contract activities, including retention, which may be settled beyond one year, are estimated to approximate fair value. Of the Company’s long-term debt, the fair value of the 2024 Senior Notes was $444.2 million and $441.9 million as of December 31, 2025 and 2024, respectively. The fair values of the 2024 Senior Notes were determined using Level 1 inputs, specifically current observable market prices. The fair value of the Term Loan B was $121.9 million as of December 31, 2024. The fair value of the Term Loan B was determined using Level 2 inputs, specifically third-party quoted market prices. The reported value of the Company’s remaining borrowings approximates fair value as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.