URS CORP /NEW/

CIK:0000102379|SEC Filings

EARNINGS PER SHARE

6 Months Ended

Jul. 04, 2014

Notes to Financial Statements [Abstract]

	Three Months Ended		Six Months Ended
	July 4,	June 28,	July 4,	June 28,
(In millions)	2014	2013	2014	2013

Weighted-average shares of common stock outstanding⁽¹⁾	68.3	73.8	69.9	74.1
Effect of dilutive restricted stock awards and units and employee stock purchase plan shares	0.5	0.2	0.6	0.3
Weighted-average shares of common stock outstanding – Diluted	68.8	74.0	70.5	74.4

NOTE 3. EARNINGS PER SHARE

In our computation of diluted EPS, we exclude the potential shares related to nonvested restricted stock awards and units that have an anti-dilutive effect on EPS or that currently have not met performance conditions. For the three and six months ended July 4, 2014, there were no potential shares related to nonvested restricted stock awards that would have an anti-dilutive effect. For the three and six months ended June 28, 2013, potential shares that had an anti-dilutive effect were 0.6 million and 0.3 million shares, respectively.

The following table summarizes the components of weighted-average common shares outstanding for both basic and diluted EPS:

Weighted-average shares of common stock outstanding are net of treasury stock and exclude nonvested restricted stock awards.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jul. 04, 2014	Jun. 28, 2013
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$ 147	$ 169
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	71	79
Amortization of intangible assets	49	55
Gain on disposal of property and equipment	(14)	(10)
Deferred income taxes	(10)	12
Stock-based compensation	18	23
Equity in income of unconsolidated joint ventures	(36)	(42)
Dividends received from unconsolidated joint ventures	44	52
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
Accounts receivable and costs and accrued earnings in excess of billings on contracts	6	129
Other current assets	11	25
Other long-term assets	(6)	(122)
Accounts payable, accrued salaries and employee benefits, and other current liabilities	(2)	(281)
Billings in excess of costs and accrued earnings on contracts	(14)	(25)
Other long-term liabilities	(2)	26
Total adjustments and changes	115	(79)
Net cash from operating activities	262	90
Cash flows from investing activities:
Proceeds from disposal of property and equipment	33	26
Changes in restricted cash	3	2
Capital expenditures, less equipment purchased through capital leases and equipment notes	(42)	(46)
Net cash from investing activities	(6)	(18)
Cash flows from financing activities:
Payments on long-term debt	(3)	(2)
Borrowings from revolving line of credit	663	858
Payments on revolving line of credit	(581)	(823)
Net payments on other indebtedness	(11)	(24)
Net change in overdrafts	1	(13)
Excess tax benefits from stock-based compensation		2
Proceeds from employee stock purchases and exercises of stock options	2	13
Distributions to noncontrolling interests	(36)	(32)
Dividends paid	(31)	(31)
Repurchases of common stock	(266)	(93)
Net cash from financing activities	(262)	(145)
Net change in cash and cash equivalents	(6)	(73)
Effect of foreign exchange rate changes on cash and cash equivalents	5	(8)
Cash and cash equivalents at beginning of period	284	315
Cash and cash equivalents at end of period	283	234
Supplemental information:
Interest paid	36	40
Taxes paid	34	98
Supplemental schedule of non-cash investing and financing activities:
Equipment acquired with capital lease obligations and equipment note obligations	$ 31	$ 29

CONSOLIDATED BALANCE SHEETS (USD $)	Jul. 04, 2014	Jan. 03, 2014
Current assets:
Cash and cash equivalents	$ 283,000,000	$ 284,000,000
Accounts receivable, including retentions of $139 and $117, respectively	1,374,000,000	1,393,000,000
Costs and accrued earnings in excess of billings on contracts	1,537,000,000	1,521,000,000
Less receivable allowances	(59,000,000)	(65,000,000)
Net accounts receivable	2,852,000,000	2,849,000,000
Other current assets	231,000,000	258,000,000
Total current assets	3,366,000,000	3,391,000,000
Investments in and advances to unconsolidated joint ventures	244,000,000	245,000,000
Property and equipment, net of accumulated depreciation of $715 and $676, respectively	592,000,000	608,000,000
Intangible assets, net	523,000,000	570,000,000
Goodwill	3,709,000,000	3,696,000,000
Other long-term assets	221,000,000	208,000,000
Total assets	8,655,000,000	8,718,000,000
Current liabilities:
Current portion of long-term debt	51,000,000	45,000,000
Accounts payable and subcontractors payable, including retentions of $29 and $29, respectively	692,000,000	688,000,000
Accrued salaries and employee benefits	523,000,000	507,000,000
Billings in excess of costs and accrued earnings on contracts	222,000,000	233,000,000
Other current liabilities	327,000,000	366,000,000
Total current liabilities	1,815,000,000	1,839,000,000
Long-term debt	1,779,000,000	1,667,000,000
Deferred tax liabilities	428,000,000	444,000,000
Self-insurance reserves	128,000,000	127,000,000
Pension and post-retirement benefit obligations	281,000,000	286,000,000
Other long-term liabilities	136,000,000	128,000,000
Total liabilities	4,567,000,000	4,491,000,000
Commitments and contingencies
URS stockholders' equity:
Preferred stock, authorized 3 shares; no shares outstanding........	0	0
Common stock, par value 4.01; authorized 200 shares; 89 and 89 shares issued, respectively; and 69 and 75 shares outstanding, respectively	1,000,000	1,000,000
Treasury stock, 20 and 14 shares at cost, respectively...............	(854,000,000)	(588,000,000)
Additional paid-in capital	3,059,000,000	3,038,000,000
Accumulated other comprehensive loss	(178,000,000)	(201,000,000)
Retained earnings	1,915,000,000	1,831,000,000
Total URS stockholders' equity	3,943,000,000	4,081,000,000
Noncontrolling interests	145,000,000	146,000,000
Total stockholders' equity	4,088,000,000	4,227,000,000
Total liabilities and stockholders' equity	$ 8,655,000,000	$ 8,718,000,000