Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Primoris Services Corp
Entity Central Index Key	0001361538
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 794.7
Entity Common Stock, Shares Outstanding		51,752,201
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 161,122	$ 139,465
Short-term investments		30,992
Customer retention deposits and restricted cash	2,598	481
Accounts receivable, net	320,588	337,382
Costs and estimated earnings in excess of billings	116,455	68,654
Inventory and uninstalled contract materials	67,796	58,116
Prepaid expenses and other current assets	18,265	31,720
Total current assets	686,824	666,810
Property and equipment, net	283,545	271,431
Deferred tax asset - long-term	1,075
Intangible assets, net	36,438	39,581
Goodwill	124,161	119,410
Other long-term assets	211	400
Total assets	1,132,254	1,097,632
Current liabilities:
Accounts payable	124,450	128,793
Billings in excess of costs and estimated earnings	139,875	158,595
Accrued expenses and other current liabilities	93,596	83,401
Dividends payable	2,842	2,062
Current portion of capital leases	974	1,650
Current portion of long-term debt	54,436	38,909
Current portion of contingent earnout liabilities		5,901
Total current liabilities	416,173	419,311
Long-term capital leases, net of current portion	22	657
Long-term debt, net of current portion	219,853	204,029
Deferred tax liabilities - long-term		5,929
Long-term contingent earnout liabilities, net of current portion		1,021
Other long-term liabilities	12,741	12,899
Total liabilities	$ 648,789	$ 643,846
Commitments and contingencies
Stockholders' equity
Preferred stock-$.0001 par value, 1,000,000 shares authorized, none issued and outstanding at December 31, 2015 and 2014
Common stock-$.0001 par value; 90,000,000 shares authorized; 51,676,140 and 51,561,396 issued and outstanding at December 31, 2015 and 2014, respectively	$ 5	$ 5
Additional paid-in capital	163,344	160,186
Retained earnings	319,899	293,628
Noncontrolling interests	217	(33)
Total stockholders' equity	483,465	453,786
Total liabilities and stockholders' equity	$ 1,132,254	$ 1,097,632

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	51,676,140	51,561,396
Common stock, shares outstanding	51,676,140	51,561,396

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF INCOME
Revenues	$ 1,929,415	$ 2,086,194	$ 1,944,220
Cost of revenues	1,709,542	1,850,154	1,688,205
Gross profit	219,873	236,040	256,015
Selling, general and administrative expenses	152,104	132,248	130,778
Operating income	67,769	103,792	125,237
Other income (expense):
Income (loss) from non-consolidated entities		5,264	(4,836)
Foreign exchange gain (loss)	(763)	374	153
Other income (expense)	1,723	(757)	4,804
Interest income	56	88	110
Interest expense	(7,688)	(6,433)	(5,892)
Income before provision for income taxes	61,097	102,328	119,576
Provision for income taxes	(23,946)	(38,646)	(44,896)
Net income	37,151	63,682	74,680
Less net income attributable to noncontrolling interests	(279)	(526)	(5,020)
Net income attributable to Primoris	$ 36,872	$ 63,156	$ 69,660
Dividends per common share (in dollars per share)	$ 0.205	$ 0.150	$ 0.135
Earnings per share attributable to Primoris:
Basic (in dollars per share)	0.71	1.22	1.35
Diluted (in dollars per share)	$ 0.71	$ 1.22	$ 1.35
Weighted average common shares outstanding:
Basic (in shares)	51,647	51,607	51,540
Diluted (in shares)	51,798	51,747	51,610

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Non Controlling Interest	Total
Balance at Dec. 31, 2012	$ 5	$ 155,605	$ 175,517	$ 1,511	$ 332,638
Balance (in shares) at Dec. 31, 2012	51,403,686
Increase (Decrease) in Stockholders' Equity Roll Forward
Net income			69,660	5,020	74,680
Issuance of shares to employees and directors		3,062			3,062
Issuance of shares to employees and directors (in shares)	153,579
Amortization of Restricted Stock Units		366			366
Issuance of shares as part of Q3C acquisition		463			463
Issuance of shares as part of Q3C acquisition (in shares)	29,273
Cancelled shares for redemption of note receivable		(300)			(300)
Cancelled shares for redemption of note receivable (in shares)	(15,144)
Distribution of non-controlling entities				(5,500)	(5,500)
Dividends			(6,961)		(6,961)
Balance at Dec. 31, 2013	$ 5	159,196	238,216	1,031	398,448
Balance (in shares) at Dec. 31, 2013	51,571,394
Increase (Decrease) in Stockholders' Equity Roll Forward
Net income			63,156	526	63,682
Issuance of shares to employees and directors		2,897			2,897
Issuance of shares to employees and directors (in shares)	90,002
Amortization of Restricted Stock Units		934			934
Dividend equivalent Units accrued - Restricted Stock Units		3	(3)
Repurchase of stock		(2,844)			(2,844)
Repurchase of stock (in shares)	(100,000)
Distribution of non-controlling entities				(1,590)	(1,590)
Dividends			(7,741)		(7,741)
Balance at Dec. 31, 2014	$ 5	160,186	293,628	(33)	453,786
Balance (in shares) at Dec. 31, 2014	51,561,396
Increase (Decrease) in Stockholders' Equity Roll Forward
Net income			36,872	279	37,151
Issuance of shares to employees and directors		2,096			2,096
Issuance of shares to employees and directors (in shares)	114,744
Amortization of Restricted Stock Units		1,050			1,050
Dividend equivalent Units accrued - Restricted Stock Units		12	(12)
Distribution of non-controlling entities				(29)	(29)
Dividends			(10,589)		(10,589)
Balance at Dec. 31, 2015	$ 5	$ 163,344	$ 319,899	$ 217	$ 483,465
Balance (in shares) at Dec. 31, 2015	51,676,140

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 37,151	$ 63,682	$ 74,680
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	58,408	50,918	42,421
Amortization of intangible assets	6,793	7,504	7,467
Goodwill & intangible asset impairment	401		808
Stock-based compensation expense	1,050	934	367
Gain on sale of property and equipment	(2,116)	(1,895)	(1,406)
(Income) from non-consolidated entities		(5,264)	(97)
Impairment expense for non-consolidated entities			4,932
Other than temporary basis difference for non-consolidated entities			3,975
Distributions received from non-consolidated entities			2,821
Net deferred tax liabilities (assets)	(7,004)	8,970	(12,582)
Changes in assets and liabilities:
Customer retention deposits and restricted cash	(2,117)	4,823	30,073
Accounts receivable	19,528	(29,659)	(36,860)
Costs and estimated earnings in excess of billings	(47,499)	(11,508)	(15,445)
Other current assets	4,949	(25,767)	(14,774)
Other long-term assets	189	72
Accounts payable	(5,086)	921	(25,131)
Billings in excess of costs and estimated earnings	(19,619)	(14,770)	14,473
Contingent earnout liabilities	(6,722)	(4,145)	(14,900)
Accrued expenses and other current liabilities	11,729	(7,354)	15,824
Other long-term liabilities	(1,658)	(1,361)	1,107
Net cash used in operating activities	48,377	36,101	77,753
Cash flows from investing activities:
Purchase of property and equipment	(67,097)	(87,954)	(87,050)
Proceeds from sale of property and equipment	9,889	5,814	7,865
Purchase of short-term investments		(33,770)	(23,110)
Sale of short-term investments	30,992	21,464	7,448
Cash received from the sale of equity method investments		6,439
Cash paid for acquisitions	(22,302)	(14,596)	(2,273)
Net cash used in investing activities	(48,518)	(102,603)	(97,120)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	75,278	58,519	107,609
Repayment of capital leases	(1,336)	(3,276)	(4,618)
Repayment of long-term debt	(43,927)	(35,107)	(35,896)
Proceeds from issuance of common stock purchased under a long-term incentive plan	1,621	1,671	1,455
Cash distribution to non-controlling interest holder	(29)	(1,590)	(5,500)
Repurchase of common stock		(2,844)
Dividends paid	(9,809)	(7,483)	(5,157)
Net cash provided by financing activities	21,798	9,890	57,893
Net change in cash and cash equivalents	21,657	(56,612)	38,526
Cash and cash equivalents at beginning of year	139,465	196,077	157,551
Cash and cash equivalents at end of the year	161,122	139,465	196,077
Cash paid during the period for:
Interest	7,688	6,432	5,532
Income taxes, net of refunds received	18,696	57,613	48,126
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Obligations incurred for the acquisition of property and equipment	25		2,637
Dividends declared and not yet paid	$ 2,842	$ 2,062	$ 1,805

Nature of Business

12 Months Ended

Dec. 31, 2015

Nature of Business

Nature of Business

Note 1—Nature of Business

Organization and operations — Primoris Services Corporation is a holding company of various construction and product engineering subsidiaries. The Company’s underground and directional drilling operations install, replace and repair natural gas, petroleum, telecommunications and water pipeline systems, including large diameter pipeline systems. The Company’s industrial, civil and engineering operations build and provide maintenance services to industrial facilities including power plants, petrochemical facilities, and other processing plants; construct multi-level parking structures; and engage in the construction of highways, bridges and other environmental construction activities. The Company is incorporated in the State of Delaware, and its corporate headquarters are located at 2100 McKinney Avenue, Suite 1500, Dallas, Texas 75201.

Reportable Operating Segments — The Company segregates its business into three operating segments: the West Construction Services segment (“West segment”), the East Construction Services segment (“East segment”) and the Energy segment (“Energy segment”). See Note 16 — Reportable Operating Segments.

The following table lists the Company’s primary operating subsidiaries and their operating segment:

Subsidiary		Operating Segment
ARB, Inc. (“ARB”)		West
ARB Structures, Inc.		West
Q3 Contracting, Inc. (“Q3C”)		West
Rockford Corporation (“Rockford”)		West
Vadnais Trenchless Services, Inc. (“Vadnais”); acquired in 2014		West
Silva Group (“Silva”)		East
Cardinal Contractors, Inc.		East
BW Primoris, LLC (“BWP”)		East
James Construction Group, LLC (“JCG”):
JCG Heavy Civil Division		East
JCG Infrastructure and Maintenance Division		East
Primoris Energy Services Corporation (“PES”)		Energy
PES Industrial Division (formerly JCG Industrial Division)		Energy
OnQuest, Inc.		Energy
OnQuest, Canada, ULC (Born Heaters Canada, ULC prior to 2013)		Energy
Primoris Aevenia, Inc. (“Aevenia”); acquired February 28, 2015		Energy

PES acquired two subsidiaries, The Saxon Group (“Saxon”) in 2012 and Force Specialty Services, Inc. (“FSSI”) in 2013. Effective January 1, 2014, Saxon and FSSI were merged into PES along with the Industrial division of JCG. Throughout this Form 10-K, references to FSSI, Saxon and James Industrial are to the divisions of PES for 2015 and 2014, while the references for the years prior to 2014 are to the entities or divisions.

The Company owned 50% of the Blythe Power Constructors joint venture (“Blythe”) created for the installation of a parabolic trough solar field and steam generation system in California, and its operations have been included as part of the West Construction Services segment. The Company determined that in accordance with FASB Topic 810, the Company was the primary beneficiary of a variable interest entity and has consolidated the results of Blythe in its financial statements. The project has been completed, the project warranty expired in May 2015 and dissolution of the joint venture was completed in the third quarter 2015.

The Company owns a 50% interest in two separate joint ventures, both formed in 2015. The Carlsbad Power Constructors joint venture (“Carlsbad”) will engineer and construct a gas-fired power generation facility and a joint venture titled “ARB Inc. & B&M Engineering Co.” (“Wilmington”) will also engineer and construct a co-generation facility. Both projects are located in the Southern California area. The joint venture operations are included as part of the West segment. As a result of determining that the Company is the primary beneficiary of the two VIE’s, the results of the Carlsbad and Wilmington joint ventures are consolidated in the Company’s financial statements. The Carlsbad project is expected to be completed in 2017 and the Wilmington project in 2018.

Financial information for the joint ventures is presented in “Note 13— Noncontrolling Interests”.

In January 2014, the Company created a wholly owned subsidiary, BW Primoris, LLC, a Texas limited liability company (“BWP”). BWP’s goal is to develop water projects, primarily in Texas, that will need the Company’s construction services. On January 22, 2014, BWP entered into an agreement to purchase the assets and business of Blaus Wasser, LLC, a Wyoming limited liability company, for approximately $5 million. BWP entered into an intercompany construction contract with Cardinal Contractors, Inc. to build a small water treatment facility which will be owned by BWP. Beginning in 2016, the facility will generate revenues through a take-or-pay contract with a West Texas municipal entity. All intercompany revenue and profit of the construction project was eliminated, and at December 31, 2015, a total of $13.8 million has been capitalized as property, plant and equipment, including the $5 million acquisition cost.

In May 2014, the Company created a wholly owned subsidiary, Vadnais Trenchless Services, Inc., a California company (“Vadnais”), which on June 5, 2014, purchased the assets of Vadnais Corporation for $6.4 million. Vadnais Corporation was a general contractor specializing in micro-tunneling based in California. The assets purchased were primarily equipment, building and land. The purchase included a contingent earnout on meeting certain operating targets. See “Note 4—Business Combinations” for further information.

During the third quarter 2014, the Company made three small purchases totaling $8.2 million acquiring the net assets of Surber Roustabout, LLC (“Surber”), Ram-Fab, LLC (“Ram-Fab”) and Williams Testing, LLC (“Williams”). Surber and Ram-Fab operate as divisions of PES, and Williams is a division of Cardinal Contractors, Inc. Surber provides general oil and gas related construction activities in Texas; Ram-Fab is a fabricator of custom piping systems located in Arkansas; and Williams provides construction services related to sewer pipeline maintenance, rehabilitation and integrity testing in the Florida market. The Surber and Ram-Fab purchases provided for contingent earnout amounts as discussed in “Note 4— Business Combinations”.

On February 28, 2015, the Company acquired the net assets of Aevenia, Inc. for $22.3 million in cash, and established a new entity, Primoris Aevenia, Inc. (“Aevenia”), which operates as part of the Company’s Energy segment. Headquartered in Moorhead, Minnesota, Aevenia is an energy and electrical construction company. Aevenia specializes in overhead and underground line work, substations, telecom/fiber, and certain other client-specific on-demand call out services. The majority of their work is delivered under unit-price Master Services Agreements (“MSAs”). Aevenia has operations in Minnesota, North Dakota, South Dakota and Iowa. The Company believes there are opportunities for Aevenia to grow sales by performing in-house work for other Primoris subsidiaries and to expand the Company’s offerings to new geographies in the Midwest United States. See “Note 4— Business Combinations”.

Unless specifically noted otherwise, as used throughout these consolidated financial statements, “Primoris”, “the Company”, “we”, “our”, “us” or “its” refers to the business, operations and financial results of the Company and its wholly-owned subsidiaries.

Seasonality—Primoris’ results of operations are subject to quarterly variations. Most of the variation is the result of weather, particularly rain, ice and snow, which can impact the Company’s ability to perform construction services. While the majority of the Company’s work is in the southern half of the United States, these seasonal impacts affect revenues and profitability since gas and other utilities defer routine replacement and repair during their period of peak demand. Any quarter can be affected either negatively or positively by atypical weather patterns in any part of the country. In addition, demand for new projects tends to be lower during the early part of the year due to clients’ internal budget cycles. As a result, the Company usually experiences higher revenues and earnings in the third and fourth quarters of the year as compared to the first two quarters, with the fourth quarter revenues and earnings usually less than the third quarter revenues and earnings but higher than the second quarter revenues and earnings.

Variability—In addition to seasonality, the Company is dependent on large construction projects, which tend not to be seasonal, but can fluctuate from year to year based on general economic conditions and client requirements. Our business may be affected by declines or delays in new projects or by client project schedules. Because of the cyclical nature of our business, the financial results for any period may fluctuate from prior periods, and the Company’s financial condition and operating results may vary from quarter-to-quarter. Results from one quarter may not be indicative of its financial condition or operating results for any other quarter or for an entire year.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Basis of presentation—The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the financial statement rules and regulations of the Securities and Exchange Commission (“SEC”). References for Financial Accounting Standards Board (“FASB”) standards are made to the FASB Accounting Standards Codification (“ASC”).

Certain reclassifications have been made to the prior year Consolidated Balance Sheet to conform classification of deferred tax assets and liabilities to the current year presentation as outlined on “Note 2—Summary of Significant Accounting Policies — Recently Issued Accounting Pronouncements” and had no impact on net income or earnings per share.

Principles of consolidation—The accompanying Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and the noncontrolling interests of the Blythe, Carlsbad and Wilmington joint ventures, which are variable interest entities for which the Company is the primary beneficiary as determined under the provisions of ASC Topic 810-10-45. All intercompany balances and transactions have been eliminated in consolidation.

Use of estimates—The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. As a construction contractor, the Company uses significant estimates for costs to complete construction projects and the contract value of construction projects. These estimates have a direct effect on gross profit as reported in these consolidated financial statements. Actual results could materially differ from the Company’s estimates.

Operating cycle— In the accompanying consolidated balance sheets, assets and liabilities relating to long-term construction contracts (e.g. costs and estimated earnings in excess of billings, billings in excess of costs and estimated earnings) are considered current assets and current liabilities, since they are expected to be realized or liquidated in the normal course of contract completion, although completion may require more than one calendar year.

Consequently, the Company has significant working capital invested in assets that may have a liquidation period extending beyond one year. The Company has claims receivable and retention due from various customers and others that are currently in dispute, the realization of which is subject to binding arbitration, final negotiation or litigation, all of which may extend beyond one calendar year.

Cash and cash equivalents—The Company considers all highly liquid investments with an original maturity of three months or less when purchased as cash equivalents.

Short-term investments—The Company classifies as short-term investments all securities or other assets acquired which have ready marketability and can be liquidated, if necessary, within the current operating cycle and which have readily determinable fair values. Short-term investments are classified as available for sale and are recorded at fair value using the specific identification method. At December 31, 2015, the Company had no short-term investments. In prior years, the majority of the Company’s short-term investments were in short-term dollar-denominated bank deposits and U.S. Treasury Bills in order to provide government backing of the investments.

Customer retention deposits and restricted cash—Customer retention deposits consist of contract retention payments made by customers into bank escrow cash accounts as required in some state jurisdictions. Investments for these amounts are limited to highly graded U.S. and municipal government debt obligations, investment grade commercial paper and CDs, which limits credit risk on these balances. Escrow cash accounts are released to the Company by customers as projects are completed in accordance with contract terms.

Inventory and uninstalled contract materials—Inventory consists of expendable construction materials and small tools that will be used in construction projects and is valued at the lower of cost, using first-in, first-out method, or market. Uninstalled contract materials are certain job specific materials not yet installed, primarily for highway construction projects, which are valued using the specific identification method relating the cost incurred to a specific project. In most cases, the Company is able to invoice a state agency for the materials, but title has not yet passed to the state agency.

Business combinations—Business combinations are accounted for using the acquisition method of accounting. We use the fair value of the assets acquired and liabilities assumed to account for the purchase price of businesses. The determination of fair value requires estimates and judgments of future cash flow expectations to assign fair values to the identifiable tangible and intangible assets. GAAP provides a “measurement period” of up to one year in which to finalize all fair value estimates associated with the acquisition of a business. Most estimates are preliminary until the end of the measurement period. During the measurement period, any material, newly discovered information that existed at the acquisition date would be reflected as an adjustment to the initial valuations and estimates. After the measurement date, any adjustments would be recorded as a current period income or expense. Changes in deferred tax asset valuation allowances and acquired tax uncertainties after the measurement period are also recognized in current period net income. Expenses incurred in connection with a business combination are expensed as incurred.

Goodwill and other intangible assets—The Company accounts for goodwill in accordance with ASC Topic 350 “Intangibles — Goodwill and Other”. Under ASC Topic 350, goodwill is not amortized but is subject to an annual impairment test as of the first day of the fourth quarter of each year, with more frequent testing if indicators of potential impairment exist. The impairment review is performed at the reporting unit level for those units with recorded goodwill. In the fourth quarter, an impairment expense of $401 was recorded relating to the goodwill attributed to Cardinal Contractors, Inc., which is a part of the East Segment, and in December 2013, an expense of $808 was recorded relating to an FSSI intangible asset, a part of the Energy Segment, for customer relations reflecting the impairment of the asset. There were no other impairments of goodwill for the years ended December 31, 2015, 2014 and 2013.

Income tax— Current income tax expense is the amount of income taxes expected to be paid for the financial results of the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax basis of assets and liabilities between GAAP and the tax codes. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards as set forth in ASC Topic 740. The difference between a tax position taken or expected to be taken on the Company’s income tax returns and the benefit recognized on our financial statements is referred to as an unrecognized tax benefit. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest and penalties related to uncertain tax positions, if any, as a component of income tax expense.

Comprehensive income—The Company accounts for comprehensive income in accordance with ASC Topic 220 “Comprehensive Income”, which specifies the computation, presentation and disclosure requirements for comprehensive income (loss). During the reported periods, the Company had no material other comprehensive income.

Foreign operations—At December 31, 2015, the Company had operations in Canada with assets aggregating approximately $14,111, compared to $11,505 at December 31, 2014. The Canadian operations had revenues of $17,763 and income before tax of $252 for the year ending December 31, 2015; revenues of $19,840 and income before tax of $3,183 for the year ended December 31, 2014, and revenues of $15,993 and income before tax of $2,742 for the year ending December 31, 2013.

Functional currencies and foreign currency translation—The Company uses the United States dollar as its functional currency in Canada for the Canadian operations of OnQuest Canada, as substantially all monetary transactions are made in U.S. dollars, and other significant economic facts and circumstances currently support that position. Since these factors may change, the Company periodically assesses its position with respect to the functional currency of its foreign subsidiary. Non-monetary balance sheet items and related revenue, gain, expense and loss accounts are valued using historical rates. All other items are re-measured using the current exchange rate in effect at the balance sheet date. Foreign exchange losses of $763 in 2015, gains of $374 in 2014 and gains of $153 in 2013 are included in the “other income or expense” line of the Consolidated Statements of Income.

Partnerships and joint ventures — As is normal in the construction industry, the Company is periodically a member of a partnership or a joint venture. These partnerships or joint ventures are used primarily for the execution of single contracts or projects. The Company’s ownership can vary from a small noncontrolling ownership to a significant ownership interest. The Company evaluates each partnership or joint venture to determine whether the entity is considered a variable interest entity (“VIE”) as defined in ASC Topic 810, and if a VIE, whether the Company is the primary beneficiary of the VIE, which would require the Company to consolidate the VIE with the Company’s financial statements. When consolidation occurs, the Company accounts for the interests of the other parties as a noncontrolling interest and discloses the net income attributable to noncontrolling interests. See Note 13 — “Nonconrolling Interests” for further information

Equity method of accounting— The Company accounts for its interest in an investment using the equity method of accounting per ASC Topic 323 if the Company is not the primary beneficiary of a VIE or does not have a controlling interest. The investment is recorded at cost and the carrying amount is adjusted periodically to recognize the Company’s proportionate share of income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or an other than temporary decrease in the value of its investment.

In the event a partially owned equity affiliate were to incur a loss and the Company’s cumulative proportionate share of the loss exceeded the carrying amount of the equity method investment, application of the equity method would be suspended and the Company’s proportionate share of further losses would not be recognized unless the Company committed to provide further financial support to the affiliate. The Company would resume application of the equity method once the affiliate became profitable and the Company’s proportionate share of the affiliate’s earnings equals the Company’s cumulative proportionate share of losses that were not recognized during the period the application of the equity method was suspended.

See Note 8 — “Equity Method Investments” regarding prior-year impairments of investments in partially owned affiliates.

Cash concentration—The Company places its cash in short term U.S. Treasury bonds and certificates of deposit (“CDs”). At December 31, 2015 and 2014, the Company had cash balances of $161.1 million and $139.5 million, respectively. At December 31, 2015, the $161.1 million of cash consisted of $131.2 million in U.S. Treasury bill funds, backed by the federal government, and the remaining $29.9 million are held in high credit quality financial institutions in order to mitigate the risk of holding funds not backed by the federal government or in excess of federally backed limits. At December 31, 2014, the $139.5 million consisted of $121.5 million held in U.S. Treasury bill funds and $18.0 million with high credit quality financial institutions.

Collective bargaining agreements—Approximately 24% of the Company’s hourly employees, primarily consisting of field laborers, were covered by collective bargaining agreements in 2015. Upon renegotiation of such agreements, the Company could be exposed to increases in hourly costs and work stoppages. Of the 83 collective bargaining agreements to which the Company is a party to, 56 will require renegotiation during 2016. The Company has not had a work stoppage in more than 20 years.

Multiemployer plans — Various subsidiaries in the West segment are signatories to collective bargaining agreements. These agreements require that the Company participate in and contribute to a number of multiemployer benefit plans for its union employees at rates determined by the agreements. The trustees for each multiemployer plan determine the eligibility and allocations of contributions and benefit amounts, determine the types of benefits and administer the plan. Federal law requires that if the Company were to withdraw from an agreement, it would incur a withdrawal obligation. The potential withdrawal obligation may be significant. In accordance with GAAP, any withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably estimated. In November 2011, the Company withdrew from the Central States Southeast and Southwest Areas Pension Fund multiemployer pension plan, as discussed in “Note 15 — Commitments and Contingencies”. The Company has no plans to withdraw from any other agreements.

Worker’s compensation insurance—The Company self-insures worker’s compensation claims to a certain level. The Company maintained a self-insurance reserve totaling $26,779 and $22,270 at December 31, 2015 and 2014, respectively. The amount is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. Claims administration expenses are charged to current operations as incurred. Future payments may materially differ from the reserve amounts.

Fair value of financial instruments—The consolidated financial statements include financial instruments for which the fair value may differ from amounts reflected on a historical basis. Financial instruments of the Company consist of cash, accounts receivable, short-term investments, accounts payable and certain accrued liabilities. These financial instruments generally approximate fair market value based on their short-term nature. The carrying value of the Company’s long-term debt approximates fair value based on comparison with current prevailing market rates for loans of similar risks and maturities.

The fair value of financial instruments is measured and disclosure is made in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures”.

Revenue recognition

Fixed-price contracts — Historically, a substantial portion of the Company’s revenue has been generated under fixed-price contracts. For fixed-price contracts, the Company recognizes revenues primarily using the percentage-of-completion method, which may result in uneven and irregular results. In the percentage-of-completion method, estimated contract values, estimated cost at completion and total costs incurred to date are used to calculate revenues earned. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. Total estimated costs, and thus contract revenues and income, can be impacted by changes in productivity, scheduling, the unit cost of labor, subcontracts, materials and equipment. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation and politics may affect the progress of a project’s completion and thus the timing of revenue recognition. To the extent that original cost estimates are modified, estimated costs to complete increase, delivery schedules are delayed, or progress under a contract is otherwise impeded, cash flow, revenue recognition and profitability from a particular contract may be adversely affected.

The Company considers unapproved change orders to be contract variations for which it has customer approval for a change in scope but for which it does not have an agreed upon price change. Costs associated with unapproved change orders are included in the estimated cost to complete the contracts and are treated as project costs as incurred. The Company recognizes revenue equal to costs incurred on unapproved change orders based on an estimated probability of realization from change order approval. Unapproved change orders involve the use of estimates, and it is reasonably possible that revisions to the estimated costs and recoverable amounts may be required in future reporting periods to reflect changes in estimates or final agreements with customers.

The Company considers claims to be amounts it seeks, or will seek, to collect from customers or others for customer-caused changes in contract specifications or design, or other customer-related causes of unanticipated additional contract costs on which there is no agreement with customers on both scope and price changes. Claims are included in the calculation of revenues when realization is probable and amounts can be reliably determined. Revenues in excess of contract costs incurred on claims are recognized when the amounts have been agreed upon with the customer. Revenue in excess of contract costs from claims is recognized when an agreement is reached with customers as to the value of the claims, which in some instances may not occur until after completion of work under the contract. Costs associated with claims are included in the estimated costs to complete the contracts and are treated as project costs when incurred.

Other contract forms — The Company also uses unit-price, time and material, and cost reimbursable plus fee contracts. For these jobs, revenue is recognized primarily based on contractual terms. For example, time and material contract revenues are generally recognized on an input basis, based on labor hours incurred and on purchases made. Similarly, unit price contracts generally recognize revenue on an output based measurement such as the completion of specific units at a specified unit price.

At any time, if an estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full at that time. The loss amount is recognized as an “accrued loss provision” and is included in the accrued expenses and other liabilities amount on the balance sheet. For fixed price contracts, as the percentage-of-completion method is used to calculate revenues, the accrued loss provision is changed so that the gross profit for the contract remains zero in future periods. If we anticipate that there will be a loss for unit price or cost reimbursable contracts, the projected loss is recognized in full at that time.

Changes in job performance, job conditions and estimated profitability, including those arising from final contract settlements, may result in revisions to costs and income. These revisions are recognized in the period in which the revisions are identified.

In all forms of contracts, the Company estimates its collectability of contract amounts at the same time that it estimates project costs. If the Company anticipates that there may be issues associated with the collectability of the full amount calculated as revenues, the Company may reduce the amount recognized as revenue to reflect the uncertainty associated with realization of the eventual cash collection. For example, when a cost reimbursable project exceeds the client’s expected budget amount, the client frequently requests an adjustment to the final amount. Similarly, some utility clients reserve the right to audit costs for significant periods after performance of the work. In these situations, the Company may choose to defer recognition of revenue up to the time that the client pays for the services.

The caption “Costs and estimated earnings in excess of billings” in the Consolidated Balance Sheet represents unbilled receivables which arise when revenues have been recorded but the amount will not be billed until a later date. Balances represent: (a) unbilled amounts arising from the use of the percentage-of-completion method of accounting which may not be billed under the terms of the contract until a later date or project milestone, (b) incurred costs to be billed under cost reimbursement type contracts, (c) amounts arising from routine lags in billing, or (d) the revenue associated with unapproved change orders or claims when realization is probable and amounts can be reliably determined. For those contracts in which billings exceed contract revenues recognized to date, the excess amounts are included in the caption “Billings in excess of costs and estimated earnings”.

In accordance with applicable terms of certain construction contracts, retainage amounts may be withheld by customers until completion and acceptance of the project. Some payments of the retainage may not be received for a significant period after completion of our portion of a project. In some jurisdictions, retainage amounts are deposited into an escrow account.

Accounts receivable—Accounts receivable and contract receivables are primarily with public and private companies and governmental agencies located in the United States. Credit terms for payment of products and services are extended to customers in the normal course of business and no interest is charged. Contract receivables are generally progress billings on projects, and as a result, are short term in nature. Generally, the Company requires no collateral from its customers, but files statutory liens or stop notices on any construction projects when collection problems are anticipated. While a project is underway, the Company estimates its collectability of contract amounts at the same time that it estimates project costs. As discussed in the “Revenue recognition” section above, realization of the eventual cash collection may be recognized as adjustments to the contract profitability, otherwise, the Company uses the allowance method of accounting for losses from uncollectible accounts. Under this method an allowance is provided based upon historical experience and management’s evaluation of outstanding contract receivables at the end of each year. Receivables are written off in the period deemed uncollectible. The allowance for doubtful accounts at December 31, 2015 and 2014 was $480 and $540, respectively.

Significant revision in contract estimate — Revenue recognition is based on the percentage-of-completion method for firm fixed-price contracts. Under this method, the costs incurred to date as a percentage of total estimated costs are used to calculate revenue. Total estimated costs, and thus contract revenues and margin, are impacted by many factors, which can cause significant changes in estimates during the life cycle of a project.

For projects that were in process at the end of the prior year, there can be a difference in revenues and profits that would have been recognized in the prior year, had current year estimates of costs to complete been known at the end of the prior year. For example, unusual weather in the first half of 2015 significantly changed the estimated costs to complete for several large highway projects. The changes impacted the percentage of completion calculation and profitability in 2015. If these changes had been known in 2014, the revenue and profitability in 2014 would have been decreased.

During the year ended December 31, 2015, certain contracts had revisions in cost estimates from those projected at December 31, 2014. If the revised estimates had been applied in the prior year, the gross profit earned on these contracts would have resulted in an increase of approximately $1,540 in gross profit in 2014. Similarly, had the revised estimates as of December 31, 2014 been applied in the prior year; the gross profit earned on these contracts would have resulted in an increase of approximately $17,266 in gross profit in 2013. The revised estimates for the year ended December 31, 2013 would have resulted in a gross profit increase of approximately $10,867 in the year 2012.

The following table presents the financial impact of the changes in estimates that would have been reflected in the years 2014 and 2013 had the revised estimates been applied to the particular year.

	Estimated net impact of change in estimate for year the year ended
	2014			2013

Revised estimates in 2015 that impact 2014	$	1,540		$	—
Revised estimates in 2014 that impact 2013	(17,266		)	17,266
Revised estimates in 2013 that impact 2012	—			(10,867		)

Net impact to gross margin	$	(15,726	)	$	6,399

EPS impact to year	$	(0.19	)	$	0.08

Customer concentration — The Company operates in multiple industry segments encompassing the construction of commercial, industrial and public works infrastructure assets throughout primarily the United States. Typically, the top ten customers in any one calendar year generate revenues in excess of 50% of total revenues; however, the group that comprise the top ten customers varies from year to year. See “Note 17 — Customer Concentrations” for further discussion.

Property and equipment—Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the related assets, usually ranging from three to thirty years. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations.

The Company assesses the recoverability of property and equipment whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. We perform an undiscounted operation cash flow analysis to determine if impairment exists. The amount of property and equipment impairment, if any, is measured based on fair value and is charged to operations in the period in which property and equipment impairment is determined by management. As of December 31, 2015 and 2014, the Company’s management has not identified any material impairment of its property and equipment.

Taxes collected from customers—Taxes collected from the Company’s customers are recorded on a net basis.

Share-based payments and stock-based compensation—In July 2008, the shareholders approved and the Company adopted the Primoris Services Corporation 2008 Long-term Incentive Equity Plan, which was replaced by the Primoris Services Corporation 2013 Long-term Incentive Equity Plan (“Equity Plan”) after approval of the shareholders and adoption by the Company on May 3, 2013. Detailed discussion of shares issued under the Equity Plan are included in “Note 20 — “Deferred Compensation Agreements and Stock-Based Compensation” and in Note 24—“Stockholders’ Equity”. Such share issuances include grants of Restricted Stock Units to executives, issuance of stock to certain senior managers and executives and issuances of stock to non-employee members of the Board of Directors.

Contingent Earnout Liabilities—As part of past acquisitions, the Company agreed to pay cash to the sellers upon meeting certain operating performance targets for specified periods subsequent to the acquisition date. Each quarter, the Company evaluates the fair value of the estimated contingency and records a non-operating charge for the change in the fair value. Upon meeting the target, the Company reflects the full liability on the balance sheet and records a charge to “Selling, general and administration expense” for the change in the fair value of the liability from the prior period. See “Note 14 — “Contingent Earnout Liabilities” for further discussion.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption will require new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of the impact of the changes on prior years. The FASB recently deferred the effective date for the Company to January 1, 2018. The Company is currently evaluating the potential impact of adoption and the implementation approach to be used.

In February 2015, the FASB issued ASU 2015-02 “Consolidation (Topic 810): Amendment to the Consolidation Analysis” which amends existing consolidation guidance, including amending the guidance related to determining whether an entity is a variable interest entity. The update is effective for interim and annual periods beginning after December 15, 2015, although early adoption is permitted. The guidance may be applied using a modified retrospective approach whereby the entity records a cumulative effect of adoption at the beginning of the fiscal year of initial application. A reporting entity may also apply the amendments on a full retrospective basis. The Company is currently evaluating the potential impact of this authoritative guidance on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15 “ Presentation of Financial Statements — Going Concern (Subtopic 205-40)” to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. The guidance is effective for annual and interim periods ending after December 15, 2016. This guidance will impact the disclosure and presentation of how we report any substantial doubt about our ability to continue as a going concern, if such substantial doubt were to exist. The Company will adopt this guidance effective January 1, 2017.

During November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The ASU provides for early adoption on both a prospective or retrospective basis. The ASU eliminates the need to analyze temporary differences to determine if deferred taxes should be reported as current or noncurrent. Past practice did not typically align with the time period in which deferred taxes were expected to be recovered or settled. For this reason, we early adopted ASU 2015-17 effective December 31, 2015 resulting in the classification of all deferred tax assets and liabilities as a net non-current deferred tax asset of $1,075 in our Consolidated Balance Sheet as of December 31, 2015. The ASU was adopted on a retrospective basis and accordingly, the presentation of net deferred taxes as of December 31, 2014 was conformed to the current year presentation, resulting in a net non-current deferred tax liability of $5,929, in order to provide improved comparability of deferred taxes between years.

On February 25, 2016, The FASB issued ASU 2016-02 “Leases (Topic 842)”. The ASU will require recognition of operating leases with lease terms of more than twelve months on the balance sheet as both assets for the rights and liabilities for the obligations created by the leases. The ASU will require disclosures that provide qualitative and quantitative information for the lease assets and liabilities recorded in the financial statements. The Company will evaluate the potential impact of the ASU on our consolidated financial statements. The guidance is effective for fiscal years beginning after December 15, 2018.

Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Measurements

Fair Value Measurements

Note 3—Fair Value Measurements

ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. ASC Topic 820 addresses fair value GAAP for financial assets and financial liabilities that are re-measured and reported at fair value at each reporting period and for non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis.

In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are “unobservable data points” for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.

The following table presents, for each of the fair value hierarchy levels identified under ASC Topic 820, the Company’s financial assets and certain liabilities that are required to be measured at fair value at December 31, 2015 and 2014:

			Fair Value Measurements at Reporting Date
	Amount Recorded on Balance Sheet		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets as of December 31, 2015:
Cash and cash equivalents	$	161,122	$	161,122	—	—
Liabilities as of December 31, 2015: None

Assets as of December 31, 2014:
Cash and cash equivalents	$	139,465	$	139,465	—	—
Short-term investments	$	30,992	$	30,992	—	—
Liabilities as of December 31, 2014:
Contingent consideration	$	6,922	—		—	$	6,922

Short-term investments consist primarily of U.S. Treasury bills with various financial institutions that are backed by the federal government. There were no short-term investments at December 31, 2015.

Other financial instruments of the Company not listed in the table consist of accounts receivable, accounts payable and certain accrued liabilities. These financial instruments generally approximate fair value based on their short-term nature. The carrying value of the Company’s long-term debt approximates fair value based on comparison with current prevailing market rates for loans of similar risks and maturities.

The following table provides changes to the Company’s contingent consideration liability Level 3 fair value measurements during the years ended December 31, 2015 and 2014:

	Significant Unobservable Inputs (Level 3)
	2015			2014
Contingent Consideration Liability
Beginning balance	$	6,922		$	9,233
Additions to contingent consideration liability:
Vadnais acquisition	—			679
Surber and Ram-Fab acquisitions	—			1,154
Change in fair value of contingent consideration liability during year	125			856
Reductions in the contingent consideration liability:
Payment to Q3C sellers for meeting performance targets — 2014 & 2015	(5,000		)	(5,000		)
Reduction due to earn-outs not acheived — Surber, Vadnais and Ram Fab	(2,047		)	—

Ending balance	$	—		$	6,922

On a quarterly basis, the Company assesses the estimated fair value of the contractual obligation to pay the contingent consideration and any changes in estimated fair value are recorded as a non-operating charge in the Company’s statement of income. Fluctuations in the fair value of contingent consideration are impacted by two unobservable inputs, management’s estimate of the probability (which has ranged from 33% to 100%) of the acquired company meeting the contractual operating performance target and the estimated discount rate (a rate that approximates the Company’s cost of capital). Significant changes in either of those inputs in isolation would result in a different fair value measurement. Generally, a change in the assumption of the probability of meeting the performance target is accompanied by a directionally similar change in the fair value of contingent consideration liability, whereas a change in assumption used of the estimated discount rate is accompanied by a directionally opposite change in the fair value of contingent consideration liability.

Upon meeting the target, the Company reflects the full liability on the balance sheet and records a charge to “Selling, general and administration expense” for the change in the fair value of the liability from the prior period. See “Note 14 — “Contingent Earnout Liabilities” for further discussion.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations

Business Combinations

Note 4—Business Combinations

2015 Acquisitions

On February 28, 2015, the Company acquired the net assets of Aevenia, Inc. for $22.3 million in cash, and established a new entity, Primoris Aevenia, Inc. (“Aevenia”), which operates as part of the Company’s Energy segment. The acquisition provides electrical construction expertise for the Company and provides a greater presence and convenient access to the central plans area of the United States.

The purchase was accounted for using the acquisition method of accounting. The assets were purchased for their estimated fair value and included current assets, current liabilities, plant and equipment, intangible assets and goodwill.

Since the acquisition date through December 31, 2015, Aevenia contributed revenues of $23,695 and gross margin of $2,378. Costs related to the Aevenia acquisition in the amount of $151 were expensed in 2015.

2014 Acquisitions

In May 2014, the Company created a wholly-owned subsidiary, Vadnais Trenchless Services, Inc., a California corporation (“Vadnais”) and on June 5, 2014, the Company purchased certain assets from Vadnais Corporation, a general contractor specializing in micro-tunneling based in California. The assets were purchased for their estimated fair value of $6,355 in cash and included equipment, building and land. In addition, upon meeting certain operating targets, the sellers could receive a contingent earnout of $900 over a two-year period. The estimated fair value of the potential contingent consideration on the acquisition date was $679. The purchase was accounted for using the acquisition method of accounting. See Note 14 — “Contingent Consideration”.

During the third quarter 2014, the Company made three small acquisitions totaling $8,244 acquiring the net assets of Surber, Ram-Fab, and Williams (the “Third Quarter 2014 Acquisitions”). Surber and Ram-Fab operate as divisions of PES in the Energy segment, and Williams is a division of Cardinal Contractors, Inc. in the East segment. Surber provides general oil and gas related construction activities in Texas; Ram-Fab is a fabricator of custom piping systems located in Arkansas; and Williams provides construction services related to sewer pipeline maintenance, rehabilitation and integrity testing in the Florida market. The Surber purchase provided for a contingent earnout amount of up to $1,800 over a 3-year period, based on meeting certain operating targets, which had an estimated fair value of $955 on the acquisition date. The Ram-Fab purchase included a $200 contingent earnout based on estimated earnings of a six-month operating project, which had an estimated fair value of $200 on the acquisition date. All of the purchases were accounted for using the acquisition method of accounting. See Note 14 — “Contingent Consideration”.

From the acquisition dates for the Vadnais acquisition and the Third Quarter 2014 Acquisitions through December 31, 2014, their first partial year, they contributed revenues of $9,300 and gross loss of $45. Acquisition costs related to these 2014 acquisitions of $355 were expensed in 2014.

The fair value of the assets acquired and the liabilities assumed for the 2015 and 2014 acquisitions is detailed in the section below “Schedule of Assets Acquired and Liabilities Assumed for 2015 and 2014 Acquisitions”.

Summary of Cash Paid for Acquisitions for the years ended December 31, 2015 and 2014

The following table summarizes the cash paid for acquisitions for the years ended December 31, 2015 and 2014.

	Year ended December 31,
	2015		2014

Aevenia — purchased February 28, 2015	22,302		—
Vadnais — purchased June 5, 2014	—		6,355
Surber — purchased July 28, 2014	—		3,642
Ram-Fab — purchased August 29, 2014	—		3,569
Williams — purchased September 19, 2014	—		1,030

Cash paid	$	22,302	$	14,596

Schedule of Assets Acquired and Liabilities Assumed for 2015 and 2014 Acquisitions

The following table summarizes the fair value of the assets acquired and the liabilities assumed at the acquisition date:

	Year ended December 31,
	2015 Acquisition			2014 Acquisitions

Cash	—			3
Accounts receivable	2,734			2,768
Inventory and other assets	1,154			711
Prepaid expenses	322			57
Property, plant and equipment	11,173			11,802
Other assets	—			4
Intangible assets	3,850			1,779
Goodwill	5,152			784
Accounts payable	(743		)	(570		)
Accrued expenses	(1,340		)	(905		)

Total	$	22,302		$	16,433

Identifiable Tangible Assets. For each of the acquisitions, significant identifiable tangible assets acquired include accounts receivable, inventory and fixed assets, consisting primarily of construction equipment. The Company determined that the recorded value of accounts receivable and inventory reflect fair value of those assets. The Company estimated the fair value of fixed assets on the effective dates of the acquisitions using a market approach, based on comparable market values for similar equipment of similar condition and age.

Identifiable Intangible Assets. The Company estimated and used the assistance of an independent third party valuation specialist to determine the fair value of the intangible assets acquired for the acquisitions. The fair value measurements of the intangible assets were based primarily on significant unobservable inputs and thus represent a Level 3 measurement as defined in Note 3 — “Fair Value Measurements”. Based on the Company’s assessment, the acquired intangible asset categories, fair value and average amortization periods, generally on a straight-line basis, are as follows:

	Amortization Period	2015 Fair Value		2014 Fair Value

Tradename	3 to 10 years	$	—	$	650
Non-compete agreements	2 to 5 years	1,350		250
Customer relationships	5 to 10 years	2,500		879

Total		$	3,850	$	1,779

The fair value of the tradename was determined based on the “relief from royalty” method. A royalty rate was selected based on consideration of several factors, including external research of third party trade name licensing agreements and their royalty rate levels, and management estimates. The useful life was estimated at ten years for the Third Quarter 2014 Acquisitions based on management’s expectation for continuing value of the tradename in the future.

The fair value for the non-compete agreements was valued based on a discounted “income approach” model, including estimated financial results with and without the non-compete agreements in place. The agreements were analyzed based on the potential impact of competition that certain individuals could have on the financial results, assuming the agreements were not in place. An estimate of the probability of competition was applied and the results were compared to a similar model assuming the agreements were in place.

The customer relationships were valued utilizing the “excess earnings method” of the income approach. The estimated discounted cash flows associated with existing customers and projects were based on historical and market participant data. Such discounted cash flows were net of fair market returns on the various tangible and intangible assets that are necessary to realize the potential cash flows.

Goodwill. Goodwill for Aevenia largely consists of expected benefits from providing electrical construction expertise for the Company and the greater presence and convenient access to the central plains area of the United States. Goodwill attributable to Surber consists largely for the expected benefits from the geographic expansion into the growing Midland/Permian Basin area of Texas and to the expansion of offerings for the Energy segment to include more pipeline and station work and a greater presence and convenient access to south Texas, the Houston ship channel and Louisiana. Goodwill also includes the value of the assembled workforce of the various acquired businesses.

Based on the current tax treatment of the acquisitions, the goodwill and other intangible assets associated with them are deductible for income tax purposes over a fifteen-year period.

Supplemental Unaudited Pro Forma Information

In accordance with ASC 805, the following pro forma information for the twelve months ended December 31, 2015 and 2014 presents the results of operations of the Company as if the Aevenia acquisition, the Vadnais acquisition and the Third Quarter 2014 Acquisitions had all occurred at the beginning of 2014. The supplemental pro forma information has been adjusted to include:

		the pro forma impact of amortization of intangible assets and depreciation of property, plant and equipment, based on the fair values assigned to the purchased assets;
		the pro forma impact of the expense associated with the amortization of the discount for the fair value of the contingent consideration (related to the Third Quarter 2014 Acquisitions) for potential earnout liabilities that may be achieved during the years 2015 through 2017; and
		the pro forma tax effect of both the income before income taxes and the pro forma adjustments, calculated using a tax rate of 39.0% for the years ended 2015 and 2014.

The pro forma results are presented for illustrative purposes only and are not necessarily indicative of, or intended to represent, the results that would have been achieved had the various acquisitions been completed on January 1, 2014. For example, the pro forma results do not reflect any operating efficiencies and associated cost savings that the Company might have achieved with respect to the acquisitions.

	2015		2014
	(unaudited)		(unaudited)
Revenues	$	1,932,413	$	2,154,440
Income before provision for income taxes	$	59,309	$	104,745
Net income attributable to Primoris	$	35,781	$	64,631

Weighted average common shares outstanding:
Basic	51,647		51,607
Diluted	51,798		51,747

Earnings per share attributable to Primoris:
Basic	$	0.69	$	1.25
Diluted	$	0.69	$	1.25

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

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+ Details

Accounts Receivable

12 Months Ended

Dec. 31, 2015

Accounts Receivable.

Accounts Receivable

Note 5—Accounts Receivable

The following is a summary of accounts receivable at December 31:

	2015		2014
Contracts receivable, net of allowance for doubtful accounts of $480 and $540 for 2015 and 2014, respectively	$	288,300	$	287,806
Retention receivable	31,396		49,104

	319,696		336,910
Other accounts receivable	892		472

	$	320,588	$	337,382

Costs and Estimated Earnings on Uncompleted Contracts

12 Months Ended

Dec. 31, 2015

Costs and Estimated Earnings on Uncompleted Contracts

Costs and Estimated Earnings on Uncompleted Contracts

Note 6—Costs and Estimated Earnings on Uncompleted Contracts

Costs and estimated earnings on uncompleted contracts consist of the following at December 31:

	2015			2014
Costs incurred on uncompleted contracts	$	5,413,224		$	5,194,769
Gross profit recognized	625,280			613,510

	6,038,504			5,808,279
Less: billings to date	(6,061,924		)	(5,898,220		)

	$	(23,420	)	$	(89,941	)

This amount is included in the accompanying consolidated balance sheets at December 31 under the following captions:

	2015			2014
Costs and estimated earnings in excess of billings	$	116,455		$	68,654
Billings in excess of cost and estimated earnings	(139,875		)	(158,595		)

	$	(23,420	)	$	(89,941	)

Property and Equipment

12 Months Ended

Dec. 31, 2015

Property and Equipment

Property and Equipment

Note 7—Property and Equipment

The following is a summary of property and equipment at December 31:

	2015			2014			Useful Life
Land and buildings	$	54,827		$	40,604		30 years
Leasehold improvements	11,071			11,267			Lease life
Office equipment	5,958			3,651			3 - 5 years
Construction equipment	340,895			308,915			3 - 7 years
Transportation equipment	93,613			83,845			3 - 18 years

	506,364			448,282
Less: accumulated depreciation and amortization	(222,819		)	(176,851		)

Net property and equipment	$	283,545		$	271,431

Equity Method Investments	12 Months Ended
Equity Method Investments	Dec. 31, 2015
Equity Method Investments.
Equity Method Investments	Note 8—Equity Method Investments WesPac Energy LLC and WesPac Midstream LLC On July 1, 2010, the Company acquired a 50% membership interest in WesPac Energy LLC (“WesPac”), a Nevada limited liability company, from Kealine Holdings, LLC (“Kealine”), a Nevada limited liability company, with Kealine retaining a remaining 50% membership interest. WesPac developed pipeline and terminal projects, primarily for the oil and gas industry. On September 30, 2013, WesPac, Kealine and the Company entered into an agreement (the “Midstream Agreement”) with Highstar Capital IV, LP (“Highstar”), to form a new entity, WesPac Midstream LLC, a Delaware limited liability company (“Midstream”), with WesPac contributing project assets to Midstream and Highstar investing $6,082 in cash. The Company accounted for the investment using the equity method of accounting and recorded its proportionate share of operating expenses. During the fourth quarter of 2013, the Company determined that the investment was impaired and recorded a non-cash impairment charge and wrote-off the total value of its equity investment of $4,932. In 2014, the Company entered into negotiations with the members of Midstream, and in August 2014, the Company entered into a redemption agreement for the sale of all of the Company’s ownership in both WesPac and Midstream for a total of $5,250 in cash, which was recorded as income from non-consolidated entities. St.—Bernard Levee Partners The Company purchased a 30% interest in St.—Bernard Levee Partners (“Bernard”) in 2009 for $300 and accounted for this investment using the equity method. Bernard engaged in construction activities in Louisiana, and all work was completed in January 2013. The Company’s share of Bernard distributions for the year ended December 31, 2013 was $145. Alvah, Inc. As part of its acquisition of Q3C in November 2012, the Company acquired a 49% membership interest in Alvah, Inc., a California corporation (“Alvah”). Alvah was engaged in electrical contracting activities, primarily in Northern California. On February 5, 2014, the majority owner of Alvah, in accordance with the original investment agreement, elected to purchase the Company’s minority interest effective January 1, 2014 for a cash payment of $1,189.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 9—Goodwill and Intangible Assets

Goodwill was recorded at our reporting units at December 31 as follows:

Reporting Unit	Segment	2015		2014
Rockford	West	$	32,079	$	32,079
Q3C	West	13,160		13,160
JCG (includes JCG Heavy Civil and Infrastructure and Maintenance divisions)	East	42,866		42,866
Cardinal Contractors, Inc.	East	—		401
PES (includes PPS, PES Industrial, FSSI, Saxon and Surber divisions)	Energy	28,463		28,463
OnQuest Canada, ULC	Energy	2,441		2,441
Aevenia	Energy	5,152		—


Total Goodwill		$	124,161	$	119,410

The table below summarizes the intangible asset categories, amounts and the average amortization periods, which are generally on a straight-line basis, at December 31:

	Amortization		Amount
	Period		2015		2014
Tradename	3 to 10 years		$	15,019	$	18,194
Non-compete agreements	2 to 5 years		1,424		1,074
Customer relationships	5 to 15 years		19,995		20,313

		Total	$	36,438	$	39,581

Amortization expense of intangible assets was $6,793, $7,504 and $7,467 for the years ended December 31, 2015, 2014 and 2013, respectively. Estimated future amortization expense for intangible assets as of December 31, 2015 is as follows:

For the Years Ending December 31,	Estimated Intangible Amortization Expense
2016	$	6,460
2017	6,183
2018	5,719
2019	5,510
2020	3,112
Thereafter	9,454

	$	36,438

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2015

Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities

Note 10—Accounts Payable and Accrued Liabilities

At December 31, 2015 and 2014, accounts payable included retention amounts of approximately $8,375 and $9,285, respectively. These amounts due to subcontractors have been retained pending contract completion and customer acceptance of jobs.

The following is a summary of accrued expenses and other current liabilities at December 31:

	2015		2014
Payroll and related employee benefits	$	33,358	$	37,261
Insurance, including self-insurance reserves	44,695		34,377
Reserve for estimated losses on uncompleted contracts	7,261		2,363
Corporate income taxes and other taxes	2,447		3,775
Accrued administrative cost	1,415		1,059
Other	4,420		4,566

	$	93,596	$	83,401

Capital Leases

12 Months Ended

Dec. 31, 2015

Capital Leases

Capital Leases

Note 11—Capital Leases

The Company leases vehicles and certain equipment under capital leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment, and accordingly, the leases are recorded as assets and liabilities. Included in depreciation expense is amortization of vehicles and equipment held under capital leases, amortized over their useful lives on a straight-line basis.

At December 31, 2015, total assets under capital leases were $4,874, accumulated depreciation was $4,103 and the net book value was $771. For 2014, total assets under capital leases were $5,528, accumulated depreciation was $3,506 and the net book value of assets was $2,022.

The following is a schedule by year of the future minimum lease payments required under capital leases together with their present value as of December 31:

2016	$	990
2017	7
2018	6
2019	6
2020	5

Total minimum lease payments	$	1,014
Amounts representing interest	(18		)

Net present value of minimum lease payments	996
Less: current portion of capital lease obligations	(974		)

Long-term capital lease obligations	$	22

Credit Arrangements

12 Months Ended

Dec. 31, 2015

Credit Arrangements

Credit Arrangements

Note 12—Credit Arrangements

Credit facilities and long-term debt consist of the following at December 31:

	2015			2014

Commercial equipment notes payable to various commercial equipment finance companies and banks with interest rates that range from 1.78% to 3.51% per annum. Monthly principal and interest payments are due in the amount of $2,521 per month until the maturity dates, which range from November 30, 2016 to December 13, 2020. The notes are secured by certain construction equipment of the Company	$	83,711		$	112,420

Commercial equipment notes payable to various commercial equipment finance companies and banks with interest rates that range from 1.94% to 2.75% per annum. Monthly principal and interest payments are due in the amount of $999 per month until the maturity dates, which range from March 31, 2019 to September 24, 2021. The notes are secured by certain construction equipment assets of the Company	44,587			55,518

Commercial equipment notes payable to various commercial equipment finance companies and banks with interest rates that range from 2.01% to 2.19% per annum. Monthly principal and interest payments are due in the amount of $735 per month until the maturity dates, which range from March 5, 2020 to September 24, 2020. The notes are secured by certain construction equipment assets of the Company	38,041			—

Two secured mortgage notes payable to a bank, with an interest rate of 4.3% per annum. Monthly principal and interest payments of $60 per month began January 1, 2016 and continue until the maturity date of January 1, 2031. The notes are secured by two buildings	7,950			—

Senior Secured Notes payable to an insurance finance company, with interest rates that range from 3.65% to 4.60% per annum, with quarterly interest payments. Principal repayment for the $50,000 loan starts on December 28, 2016, for the $25,000 loan on July 15, 2017 and for the second $25,000 loan on November 9, 2019, and continue until their maturity dates, which range from December 28, 2022 to November 9, 2025. The notes are secured by the assets of the Company	100,000			75,000


	274,289			242,938
Less: current portion	(54,436		)	(38,909		)

Long-term debt, net of current portion	$	219,853		$	204,029

Scheduled maturities of long-term debt are as follows:

Year Ending
December 31,