Primoris Services (PRIM) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document and Entity Information
Entity Registrant Name	Primoris Services Corp
Entity Central Index Key	1,361,538
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,540,664
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents ($38,750 and $ 60,256 related to VIEs. See Note 10)	$ 139,404	$ 170,385
Restricted cash	35,492
Accounts receivable, net	375,763	291,589
Contract assets	360,710	265,902
Prepaid expenses and other current assets	40,103	15,338
Total current assets	951,472	743,214
Property and equipment, net	356,843	311,777
Deferred tax assets	8,887
Intangible assets, net	94,089	44,800
Goodwill	197,071	153,374
Other long-term assets	5,639	2,575
Total assets	1,614,001	1,255,740
Current liabilities:
Accounts payable	219,180	140,943
Contract liabilities	195,326	169,377
Accrued liabilities	130,479	76,027
Dividends payable	3,092	3,087
Current portion of long-term debt	65,376	65,464
Total current liabilities	613,453	454,898
Long-term debt, net of current portion	354,910	193,351
Deferred tax liabilities		13,571
Other long-term liabilities	68,451	31,737
Total liabilities	1,036,814	693,557
Commitments and contingencies (See Note 16)
Stockholders' equity
Common stock—$.0001 par value; 90,000,000 shares authorized; 51,530,572 and 51,448,753 issued and outstanding at June 30, 2018 and December 31, 2017	5	5
Additional paid-in capital	162,928	160,502
Accumulated other comprehensive income	377
Retained earnings	402,158	395,961
Noncontrolling interest	11,719	5,715
Total stockholders’ equity	577,187	562,183
Total liabilities and stockholders’ equity	$ 1,614,001	$ 1,255,740

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
VIEs
Cash and cash equivalents	$ 139,404	$ 170,385
Stockholders' equity
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	51,530,572	51,448,753
Common stock, shares outstanding	51,530,572	51,448,753
VIEs
VIEs
Cash and cash equivalents	$ 38,750	$ 60,256

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Revenue	$ 648,787	$ 631,165	$ 1,152,906	$ 1,192,667
Cost of revenue	577,368	546,682	1,036,927	1,053,131
Gross profit	71,419	84,483	115,979	139,536
Selling, general and administrative expenses	43,489	44,881	80,445	84,514
Acquisition and related costs	7,668	1,096	9,363	1,317
Operating income	20,262	38,506	26,171	53,705
Other income (expense):
Foreign exchange gain	1,256	109	1,513	132
Other income (expense), net	(771)	(13)	(783)	(13)
Interest income	340	114	612	183
Interest expense	(3,191)	(2,145)	(5,189)	(4,407)
Income before provision for income taxes	17,896	36,571	22,324	49,600
Provision for income taxes	(3,705)	(14,175)	(3,917)	(18,692)
Net income	14,191	22,396	18,407	30,908
Less net income attributable to noncontrolling interests	(2,476)	(851)	(6,004)	(1,672)
Net income attributable to Primoris	$ 11,715	$ 21,545	$ 12,403	$ 29,236
Dividends per common share (in dollars per share)	$ 0.060	$ 0.055	$ 0.120	$ 0.110
Earnings per share:
Basic (in dollars per share)	0.23	0.42	0.24	0.57
Diluted (in dollars per share)	$ 0.23	$ 0.42	$ 0.24	$ 0.56
Weighted average common shares outstanding:
Basic (in shares)	51,531	51,437	51,505	51,515
Diluted (in shares)	51,793	51,688	51,770	51,771

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 14,191	$ 22,396	$ 18,407	$ 30,908
Other comprehensive income, net of tax:
Foreign currency translation adjustments	377		377
Comprehensive income	14,568	22,396	18,784	30,908
Less net income attributable to noncontrolling interests	(2,476)	(851)	(6,004)	(1,672)
Comprehensive income attributable to Primoris	$ 12,092	$ 21,545	$ 12,780	$ 29,236

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 18,407	$ 30,908
Adjustments to reconcile net income to net cash (used in) provided by operating activities (net of effect of acquisitions):
Depreciation	30,014	28,139
Amortization of intangible assets	5,161	3,611
Intangible asset impairment		477
Stock-based compensation expense	430	690
Gain on sale of property and equipment	(1,580)	(3,208)
Other non-cash items	68	87
Changes in assets and liabilities:
Accounts receivable	18,331	53,650
Contract assets	(64,074)	(22,627)
Other current assets	(6,036)	4,604
Other long-term assets	(499)	381
Accounts payable	2,115	(37,060)
Contract liabilities	(18,220)	45,647
Accrued liabilities	13,647	8,298
Other long-term liabilities	1,520	2,692
Net cash (used in) provided by operating activities	(716)	116,289
Cash flows from investing activities:
Purchase of property and equipment	(46,107)	(44,697)
Issuance of a note receivable	(15,000)
Proceeds from a note receivable	15,000
Proceeds from sale of property and equipment	5,811	4,664
Cash paid for acquisitions, net of cash and restricted cash acquired	(111,030)	(66,205)
Net cash used in investing activities	(151,326)	(106,238)
Cash flows from financing activities:
Borrowings under revolving line of credit	170,000
Proceeds from issuance of long-term debt	19,467
Repayment of long-term debt and capital leases	(28,048)	(24,679)
Proceeds from issuance of common stock purchased under a long-term incentive plan	1,498	1,148
Repurchase of common stock		(4,999)
Dividends paid	(6,179)	(5,668)
Net cash provided by (used in) financing activities	156,738	(34,198)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(185)
Net change in cash, cash equivalents and restricted cash	4,511	(24,147)
Cash, cash equivalents and restricted cash at beginning of the period	170,385	135,823
Cash, cash equivalents and restricted cash at end of the period	174,896	111,676
Cash paid:
Interest	4,191	4,663
Income taxes, net of refunds received	3,610	15,554
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Obligations incurred for the acquisition of property		4,163
Dividends declared and not yet paid	$ 3,092	$ 2,829

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2018
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. Our underground and directional drilling operations install, replace and repair natural gas, petroleum, telecommunications and water pipeline systems, including large diameter pipeline systems. Our 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. Our transmission and distribution operations install, replace and repair gas and electric utility systems. We are incorporated in the state of Delaware, and our corporate headquarters are located at 2100 McKinney Avenue, Suite 1500, Dallas, Texas 75201. Unless specifically noted otherwise, as used throughout these condensed consolidated financial statements, “Primoris”, “the Company”, “we”, “our”, “us” or “its” refers to the business, operations and financial results of us and our wholly-owned subsidiaries. Reportable Segments — We segregate our business into five reportable segments: the Power, Industrial and Engineering (“Power”) segment, the Pipeline and Underground (“Pipeline”) segment, the Utilities and Distribution (“Utilities”) segment, the Transmission and Distribution (“Transmission”) segment, which is a new reportable segment created in connection with the acquisition of Willbros Group, Inc. (“Willbros”), and the Civil segment. See Note 17 – “ Reportable Segments ” for a brief description of the reportable segments and their operations. The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses were made. Acquisition of Willbros Group, Inc. — On June 1, 2018, we completed our acquisition of Willbros for approximately $111.0 million, net of cash and restricted cash acquired. Willbros is a specialty energy infrastructure contractor serving the oil and gas and power industries through its utility transmission and distribution, oil and gas, and Canadian operations, which principally executes industrial and power projects. The utility transmission and distribution operations are included in the Transmission segment, the oil and gas operations are included in the Pipeline segment, and the Canadian operations are included in the Power segment. See Note 6— “ Business Combinations ”. Other Acquisitions — On May 26, 2017, we acquired the net assets of Florida Gas Contractors (“FGC”) for $37.7 million; on May 30, 2017, we acquired certain engineering assets for approximately $2.3 million; and on June 16, 2017, we acquired the net assets of Coastal Field Services (“Coastal”) for $27.5 million. FGC operations are included in the Utilities segment, the engineering assets are included in the operations of the Power segment, and Coastal operations are included in the Pipeline segment. See Note 6— “ Business Combinations ”. Joint Ventures —We own a 50% interest in two separate joint ventures, both formed in 2015. The Carlsbad Power Constructors joint venture (“Carlsbad”) is engineering and constructing a gas-fired power generation facility, and the ARB Inc. & B&M Engineering Co. joint venture (“Wilmington”) is also engineering and constructing a gas-fired power generation facility. Both projects are located in Southern California. The joint venture operations are included as part of the Power segment. As a result of determining that we are the primary beneficiary of the two variable interest entities ("VIEs”), the results of the Carlsbad and Wilmington joint ventures are consolidated in our financial statements. The Wilmington project was substantially complete as of December 31, 2017, and the Carlsbad project is expected to be completed in 2018. Financial information for the joint ventures is presented in Note 10 – “Noncontrolling Interests ”.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Basis of Presentation
Basis of Presentation	Note 2—Basis of Presentation Interim consolidated financial statements — The interim condensed consolidated financial statements for the three and six month periods ended June 30, 2018 and 2017 have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As such, certain disclosures, which would substantially duplicate the disclosures contained in our Annual Report on Form 10-K, filed on February 26, 2018, which contains our audited consolidated financial statements for the year ended December 31, 2017, have been omitted. This Second Quarter 2018 Report on Form 10-Q should be read in concert with our most recent Annual Report on Form 10-K. The interim financial information is unaudited. In the opinion of management, the interim information includes all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim financial information. Reclassification — Certain previously reported amounts have been reclassified to conform to the current year presentation. Restricted cash — Restricted cash consists of cash balances that are restricted as to withdrawal or usage. As a result of the Willbros acquisition, we acquired cash pledged to secure letters of credit, which is recorded as restricted cash at June 30, 2018. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals of such amounts shown in the Condensed Consolidated Statements of Cash Flows (in thousands). June 30, December 31, 2018 2017 Cash and cash equivalents $ 139,404 $ 170,385 Restricted cash 35,492 — $ 174,896 $ 170,385 Customer concentration — We operate in multiple industry segments encompassing the construction of commercial, industrial and public works infrastructure assets primarily throughout the United States. Typically, the top ten customers in any one calendar year generate revenue in excess of 50% of total revenue; however, the group that comprises the top ten customers varies from year to year. During the three and six months ended June 30, 2018, revenue generated by the top ten customers were approximately $322.6 million and $581.6 million, respectively, which represented 50.4% and 49.7%, respectively, of total revenue during the applicable period. During the three and six months ended June 30, 2018, a state department of transportation customer represented 9.4% and 9.3% of total revenue, respectively, and a California utility customer represented 8.7% and 9.0% of total revenue, respectively. During the three and six months ended June 30, 2017, revenues generated by the top ten customers were approximately $330.2 million and $713.5 million, respectively, which represented 52.3% and 59.8%, respectively, of total revenues during the applicable period. During the three and six months ended June 30, 2017, two large pipeline projects represented 11.0% and 19.2% of total revenues, respectively and a state department of transportation customer represented 10.6% and 10.5% of total revenues, respectively. At June 30, 2018, approximately 6.5% of our accounts receivable were due from one customer, and that customer provided 8.8% our revenue for the six months ended June 30, 2018. In addition, of total accounts receivable, approximately 5.1% are from one customer with whom we are currently engaged in a dispute resolution. See Note 16 – “ Commitments and Contingencies ”. At June 30, 2017, approximately 11.7% of our accounts receivable were due from one customer, and that customer provided 8.8% of our revenue for the six months ended June 30, 2017. In addition, approximately 11.0% of total accounts receivable at June 30, 2017 were from one customer with whom we are currently engaged in a dispute resolution. Multiemployer plans — Various of our subsidiaries are signatories to collective bargaining agreements. These agreements require that we participate in and contribute to a number of multiemployer benefit plans for our 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. To the extent that any plans are underfunded, the Employee Retirement Income Security Act of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, requires that if we were to withdraw from an agreement or if a plan is terminated, we may incur a withdrawal obligation. The potential withdrawal obligation may be significant. In accordance with Generally Accepted Accounting Principles (“GAAP”), any withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably estimated. In November 2011, we withdrew from the Central States Southeast and Southwest Areas Pension Fund multiemployer plan, as discussed in Note 16 — “Commitments and Contingencies” . We have no plans to withdraw from any other agreements. .

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 3—Recent Accounting Pronouncements Recently adopted accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ”, with several clarifying updates issued during 2016 and 2017. The new standard is effective for reporting periods beginning after December 15, 2017 and supersedes all prior revenue recognition standards including the guidance in ASC Topic 605, “ Revenue Recognition ”. Under Topic 606, revenue recognition occurs when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. See Note 4 — “ Revenue” for further details. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)” , which requires a reporting entity to include restricted cash and restricted cash equivalents in its cash and cash-equivalent balances presented in the entity’s statement of cash flows. A reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents. Transfers between non-restricted and restricted cash should not be presented as cash flow activities in the statement of cash flows. Furthermore, an entity with a material restricted cash balance must disclose information regarding the nature of the restrictions. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We adopted the ASU as of January 1, 2018. See our Condensed Consolidated Statements of Cash Flows for more information. In January 2017, the FASB issued ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ", which changes the definition of a business to assist entities with evaluating when a set of acquired assets and activities is a business. ASU 2017-01 requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. ASU 2017-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted the ASU as of January 1, 2018, and it did not impact the determination of our business combinations. In May 2017, the FASB issued ASU 2017-09, “ Compensation — Stock Compensation (Topic 718) — Scope of Modification Accounting ”. The ASU amends the scope of modification accounting for share-based payment arrangements. The amendments in the ASU clarify when to account for a change in the terms or conditions of share-based payment awards as a modification under ASC 718, “Compensation — Stock Compensation” . The ASU is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted the ASU as of January 1, 2018, and it did not have a material impact on our consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”, to add various language issued by the Securities and Exchange Commission (“SEC”) in Staff Accounting Bulletin No. 118 (“SAB 118”) to ASC 740 “Income Taxes”. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the Tax Cuts and Jobs Act (the “Tax Act”), which became effective for us on January 1, 2018. We have evaluated the potential impacts of SAB 118 and have applied this guidance to our consolidated financial statements and related disclosures beginning in the fourth quarter of our fiscal year 2017. See Note 13 — “Income Taxes ” for additional information on SAB 118 and the impacts of the Tax Act. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) ”. In July 2018, the FASB issued two updates to ASU 2016-02, ASU 2018-10, “Codification Improvements to Topic 842, Leases” , and ASU 2018-11, “Leases (Topic 842): Targeted Improvements” . ASU 2016-02 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 standard is effective for fiscal years beginning after December 15, 2018, and initially required a modified restrospective transition method where a company applies the new leases standard at the beginning of the earliest period presented in the financial statements. ASU 2018-11 added an optional transition method where a company applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings. We have already revised our credit agreements to address the impact of ASU 2016-02 and continue to assess the effect the guidance will have on our existing accounting policies and consolidated financial statements. We expect there will be an increase in assets and liabilities on the Consolidated Balance Sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities. We are currently in the process of inventorying all lease obligations and associated right-of-use assets. We have also engaged a third party to assist us in the process, but have not yet determined the impact to our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, " Simplifying the Test for Goodwill Impairment ". ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019 and will be applied prospectively. We do not expect the adoption of ASU 2017-04 to have an impact on our financial position, results of operations or cash flows.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue
Revenue	Note 4—Revenue On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Adoption changed our accounting policy for revenue recognition. Results for periods prior to January 1, 2018 are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. The cumulative impact of adopting Topic 606 was immaterial and did not require an adjustment to retained earnings. However, we have reclassified prior year balance sheet and cash flow amounts to conform to current year presentation. We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts. A substantial portion of our revenue is derived from contracts that are fixed-price or unit-price and is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For time and material and cost reimbursable plus fee contracts, revenue is recognized primarily on an input basis, based on contract costs incurred as defined within the respective contracts. Costs to obtain contracts are generally not significant and are expensed in the period incurred. We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. Topic 606 defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation. As of June 30, 2018, we had $1.85 billion of remaining performance obligations. We expect to recognize approximately 84% of our remaining performance obligations as revenue during the next four quarters and the remaining balance thereafter. Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue 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 revenue 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 nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, 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. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three and six months ended June 30, 2018, revenue recognized from performance obligations satisfied in previous periods was $3.7 million and $25.0 million, respectively. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full in the period it is identified and recognized as an “accrued loss provision” which is included in “Contract liabilities” on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods. At June 30, 2018, we had approximately $85.3 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $77.1 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through June 30, 2018. In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we 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. The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. The caption “Contract assets” in the Condensed Consolidated Balance Sheets represents the following: · unbilled revenue (formerly costs and estimated earnings in excess of billings), which arise when revenue has been recorded but the amount will not be billed until a later date; · retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and · contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating the cost incurred to a specific project. Contract assets consist of the following (in thousands): June 30, December 31, 2018 2017 Unbilled revenue $ 243,478 $ 160,092 Retention receivable 84,623 66,586 Contract materials (not yet installed) 32,609 39,224 $ 360,710 $ 265,902 Contract assets increased by $94.8 million compared to December 31, 2017 due primarily to a $30.8 million increase from the acquisition of Willbros in the second quarter of 2018 and higher unbilled revenue. The caption “Contract liabilities” in the Condensed Consolidated Balance Sheets represents deferred revenue (formerly billings in excess of costs and estimated earnings) on billings in excess of contract revenue recognized to date, and the accrued loss provision. Contract liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Deferred revenue $ 181,053 $ 159,310 Accrued loss provision 14,273 10,067 $ 195,326 $ 169,377 Contract liabilities increased by $25.9 million compared to December 31, 2017 primarily due to a $44.3 million increase from the acquisition of Willbros in the second quarter of 2018, partially offset by lower deferred revenue. Revenue recognized for the six months ended June 30, 2018, that was included in the contract liability balance at the beginning of the year was approximately $132.7 million. The following tables present our revenue disaggregated into various categories. Master Service Agreements (“MSA”) and Non-MSA revenue was as follows (in thousands): For the three months ended June 30, 2018 Segment MSA Non-MSA Total Power $ 22,672 $ 144,329 $ 167,001 Pipeline 12,213 78,392 90,605 Utilities 168,336 60,516 228,852 Transmission 35,517 6,937 42,454 Civil — 119,875 119,875 Total $ 238,738 $ 410,049 $ 648,787 For the six months ended June 30, 2018 Segment MSA Non-MSA Total Power $ 42,070 $ 291,486 $ 333,556 Pipeline 19,493 128,695 148,188 Utilities 288,103 107,459 395,562 Transmission 35,517 6,937 42,454 Civil — 233,146 233,146 Total $ 385,183 $ 767,723 $ 1,152,906 Revenue by contract type was as follows (in thousands): For the three months ended June 30, 2018 Segment Fixed-price Unit-price Cost reimbursable (1) Total Power $ 108,383 $ 14,532 $ 44,086 $ 167,001 Pipeline 28,102 31,678 30,825 90,605 Utilities 41,299 127,863 59,690 228,852 Transmission 8,000 25,457 8,997 42,454 Civil 14,780 92,132 12,963 119,875 Total $ 200,564 $ 291,662 $ 156,561 $ 648,787 (1) Includes time and material and cost reimbursable plus fee contracts. For the six months ended June 30, 2018 Segment Fixed-price Unit-price Cost reimbursable (1) Total Power $ 225,038 $ 25,644 $ 82,874 $ 333,556 Pipeline 40,622 50,323 57,243 148,188 Utilities 105,363 194,614 95,585 395,562 Transmission 8,000 25,457 8,997 42,454 Civil 24,423 179,212 29,511 233,146 Total $ 403,446 $ 475,250 $ 274,210 $ 1,152,906 (1) Includes time and material and cost reimbursable plus fee contracts. Each of these contract types presents advantages and disadvantages. Typically, we assume more risk with fixed-price contracts. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. However, these types of contracts offer additional profits when we complete the work for less than originally estimated. Unit-price and cost reimbursable contracts generally subject us to lower risk. Accordingly, the associated base fees are usually lower than fees earned on fixed-price contracts. Under these contracts, our profit may vary if actual costs vary significantly from the negotiated rates.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Fair Value Measurements	Note 5—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, our financial assets and liabilities that are required to be measured at fair value at June 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements at Reporting Date Significant Quoted Prices Other Significant in Active Markets Observable Unobservable for Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets as of June 30, 2018: Cash and cash equivalents $ 139,404 $ — $ — Restricted cash 35,492 — — Liabilities as of June 30, 2018: Contingent consideration $ — $ — $ 1,500 Assets as of December 31, 2017: Cash and cash equivalents $ 170,385 $ — $ — Liabilities as of December 31, 2017: Contingent consideration $ — $ — $ 716 Other financial instruments 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 our 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 our contingent consideration liability Level 3 fair value measurements during the six months ended June 30, 2018 (in thousands): Significant Unobservable Inputs (Level 3) Contingent Consideration Liability 2018 2017 Beginning balance, January 1, $ 716 $ — FGC acquisition — 1,200 Change in fair value of contingent consideration liability during year 784 13 Ending balance, June 30, $ 1,500 $ 1,213 On a quarterly basis, we assess 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 our 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 our 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 of the estimated discount rate is accompanied by a directionally opposite change in the fair value of contingent consideration liability. Upon meeting the target, we reflect the full liability on the balance sheet and record a charge to “Other income (expense), net” for the change in the fair value of the liability from the prior period. The May 2017 acquisition of FGC included an earnout of $1.5 million, contingent upon meeting certain performance targets. The estimated fair value of the contingent consideration on the acquisition date was $1.2 million. Under ASC 805, we are required to estimate the fair value of contingent consideration based on facts and circumstances that existed as of the acquisition date and remeasure to fair value at each reporting date until the contingency is resolved. As a result of that remeasurement, we increased the fair value of the contingent consideration in the second quarter of 2018 related to the FGC performance target contemplated in their purchase agreement, and increased the liability by $0.8 million with a corresponding increase in non-operating expense. We expect to pay the full $1.5 million liability in the third quarter of 2018.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2018
Business Combinations
Business Combinations	Note 6 — Business Combinations 2018 Acquisition Acquisition of Willbros Group, Inc. On June 1, 2018, we acquired all of the outstanding common stock of Willbros, a specialty energy infrastructure contractor serving the oil and gas and power industries for approximately $111.0 million, net of cash and restricted cash acquired. The total purchase price was funded through a combination of existing cash balances and borrowings under our revolving credit facility. The tables below represent the purchase consideration and preliminary estimated fair values of the assets acquired and liabilities assumed. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts, which may differ materially from these preliminary estimates, will continue to be refined and will be finalized as soon as possible, but no later than one year from the acquisition date. The primary areas of the preliminary estimates that are not yet finalized relate to property, plant and equipment, identifiable intangible assets, contract assets and liabilities, deferred income taxes, uncertain tax positions, and the fair value of certain contractual obligations. Purchase consideration (in thousands) Total purchase consideration $ 164,758 Less cash and restricted cash acquired (53,728) Net cash paid 111,030 Preliminary identifiable assets acquired and liabilities assumed (in thousands) Cash and restricted cash $ 53,728 Accounts receivable 102,719 Contract assets 30,762 Other current assets 18,767 Property, plant and equipment 33,171 Intangible assets: Customer relationships 52,650 Non-compete agreements 1,600 Tradename 200 Deferred income taxes 22,466 Other non-current assets 2,261 Accounts payable and accrued liabilities (117,736) Contract liabilities (44,258) Other non-current liabilities (35,269) Total identifiable net assets 121,061 Goodwill 43,697 Total purchase consideration $ 164,758 We separated the operations of Willbros among three of our segments. The utility transmission and distribution operations created the newly formed Transmission segment, the oil and gas operations are included in the Pipeline segment, and the Canadian operations are included in the Power segment. Goodwill associated with the Willbros acquisition principally consists of expected benefits from the expansion of our services into electric utility-focused offerings and the expansion of our geographic presence. Goodwill also includes the value of the assembled workforce. We allocated $34.7 million of goodwill to the Transmission segment, $6.1 million to the Power segment, and $2.8 million to the Pipeline segment. Based on the current tax treatment, goodwill is not expected to be deductible for income tax purposes. For the period June 1, 2018, the acquisition date, to June 30, 2018, Willbros contributed revenue of $61.0 million and gross profit of $6.4 million. Acquisition related costs were $7.7 million and $9.3 million for the three and six months ended June 30, 2018, respectively, related to the acquisition of Willbros and are included in “Merger and related costs” on the Condensed Consolidated Statements of Income. Such costs primarily consisted of severance and retention bonus costs for certain employees of Willbros and professional fees paid to advisors. 2017 Acquisitions Acquisition of Florida Gas Contractors On May 26, 2017, we acquired certain assets of FGC, a utility contractor specializing in underground natural gas infrastructure, for approximately $33.0 million in cash. In addition, the sellers could receive a contingent earnout amount of up to $1.5 million over a one-year period ending May 26, 2018, based on the achievement of certain operating targets. The estimated fair value of the potential contingent consideration as of the acquisition date was $1.2 million. FGC operates in the Utilities segment and expands our presence in the Florida and Southeast markets. The purchase was accounted for using the acquisition method of accounting. During the fourth quarter of 2017, we finalized the estimate of fair value of the acquired assets of FGC, which included $4.8 million of fixed assets; $3.3 million of working capital; $9.1 million of intangible assets; and $17.0 million of goodwill. In connection with the FGC acquisition, we also paid $3.5 million to acquire certain land and buildings. Intangible assets primarily consist of customer relationships. Goodwill associated with the FGC acquisition principally consists of expected benefits from providing expertise for our construction efforts in the underground utility business as well as the expansion of our geographic presence. Goodwill also includes the value of the assembled workforce that FGC provides to us. Based on the current tax treatment, goodwill will be deductible for income tax purposes over a fifteen-year period. For the three and six months ended June 30, 2018, FGC contributed revenue of $8.4 million and $16.0 million, respectively, and gross profit of $2.8 million and $5.0 million, respectively. For the period May 26, 2017, the acquisition date, to June 30, 2017, FGC contributed revenue of $2.2 million and gross profit of $0.5 million. Acquisition of Engineering Assets On May 30, 2017, we acquired certain engineering assets for approximately $2.3 million in cash, which further enhances our ability to provide quality service for engineering and design projects. The purchase was accounted for using the acquisition method of accounting. The allocation of the total purchase price consisted of $0.2 million of fixed assets and $2.1 million of intangible assets. Intangible assets primarily consist of customer relationships. The operations of this acquisition were fully integrated into our Power segment operations and no separate financial results were maintained. Therefore, it is impracticable for us to report separately the amounts of revenue and gross profit included in the Condensed Consolidated Statements of Income. Acquisition of Coastal Field Services On June 16, 2017, we acquired certain assets and liabilities of Coastal for approximately $27.5 million. Coastal provides pipeline construction and maintenance, pipe and vessel coating and insulation, and integrity support services for companies in the oil and gas industry. Coastal operates in the Pipeline segment and increases our market share in the Gulf Coast energy market. The purchase was accounted for using the acquisition method of accounting. During the second quarter of 2018, we finalized the estimate of the fair value of the acquired assets, which included $4.0 million of fixed assets; $4.6 million of working capital; $9.9 million of intangible assets; $9.3 million of goodwill; and $0.3 million of long-term capital leases. Intangible assets primarily consist of customer relationships and tradename. Goodwill associated with the Coastal acquisition principally consists of expected benefits from providing expertise for our expansion of services in the pipeline construction and maintenance business. Goodwill also includes the value of the assembled workforce that Coastal provides to us. Based on the current tax treatment, goodwill will be deductible for income tax purposes over a fifteen-year period. For the three and six months ended June 30, 2018, Coastal contributed revenue of $4.2 million and $9.2 million, respectively, and gross profit of $0.6 million and $1.0 million, respectively. For the period June 16, 2017, the acquisition date, to June 30, 2017, Coastal contributed revenue of $1.0 million and gross profit of $0.4 million. Supplemental Unaudited Pro Forma Information for the three and six months ended June 30, 2018 and 2017 The following pro forma information for the three and six months ended June 30, 2018 and 2017 presents our results of operations as if the acquisitions of Willbros, FGC, and Coastal had occurred at the beginning of 2017. 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 purchase price allocations; · the pro forma impact of the expense associated with the amortization of the discount for the fair value of the contingent consideration liability associated with the FGC acquisition; · the pro forma impact of nonrecurring merger and related costs directly attributable to the acquisitions; · the pro forma impact of interest expense relating to the acquisitions; and · the pro forma tax effect of both income before income taxes, and the pro forma adjustments, calculated using a tax rate of 28.0% and 40.0% for the three and six months ended June 30, 2018 and 2017, respectively. 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, 2017. For example, the pro forma results do not reflect any operating efficiencies and associated cost savings that we might have achieved with respect to the acquisitions. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 774,018 $ 869,039 $ 1,479,118 $ 1,610,081 Income before provision for income taxes $ 14,641 $ 37,156 $ 15,447 $ 35,426 Net income attributable to Primoris $ 9,371 $ 21,896 $ 7,451 $ 20,732 Weighted average common shares outstanding: Basic 51,531 51,437 51,505 51,515 Diluted 51,793 51,688 51,770 51,771 Earnings per share: Basic $ 0.18 $ 0.43 $ 0.14 $ 0.40 Diluted $ 0.18 $ 0.42 $ 0.14 $ 0.40

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 7—Goodwill and Intangible Assets The change in goodwill by segment for the six months ended June 30, 2018 was as follows (in thousands): Power Pipeline Utilities Transmission Civil Total Balance at January 1, 2018 $ 24,391 $ 51,521 $ 37,312 $ — $ 40,150 $ 153,374 Goodwill acquired during the year 6,101 2,849 — 34,747 — 43,697 Balance at June 30, 2018 $ 30,492 $ 54,370 $ 37,312 $ 34,747 $ 40,150 $ 197,071 At June 30, 2018 and December 31, 2017, intangible assets other than goodwill totaled $94.1 million and $44.8 million, respectively, net of amortization. The table below summarizes the intangible asset categories, amounts and the average amortization periods, which are on a straight-line basis (in thousands): June 30, 2018 December 31, 2017 Weighted Gross Carrying Accumulated Gross Carrying Accumulated Tradename 9 years $ 31,590 $ (23,451) $ 32,175 $ (22,238) Customer relationships 16 years 102,550 (19,239) 49,900 (16,338) Non-compete agreements 5 years 3,500 (1,037) 1,900 (820) Other 3 years 275 (99) 275 (54) Total 15 years $ 137,915 $ (43,826) $ 84,250 $ (39,450) Amortization expense of intangible assets was $2.7 million and $1.9 million for the three months ended June 30, 2018 and 2017, respectively and amortization expense for the six months ended June 30, 2018 and 2017 was $5.2 million and $3.6 million, respectively. Estimated future amortization expense for intangible assets is as follows (in thousands): Estimated Intangible For the Years Ending Amortization December 31, Expense 2018 (remaining six months) $ 6,280 2019 12,145 2020 9,394 2021 8,155 2022 6,989 Thereafter 51,126 $ 94,089

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities	Note 8—Accounts Payable and Accrued Liabilities At June 30, 2018 and December 31, 2017, accounts payable were $219.2 million and $140.9 million, respectively. These balances included retention amounts for the same periods of approximately $15.6 million and $13.5 million, respectively. The retention amounts are due to subcontractors and have been retained pending contract completion and customer acceptance of jobs. The following is a summary of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2018 2017 Payroll and related employee benefits $ 68,942 $ 45,708 Insurance, including self-insurance reserves 28,467 21,391 Corporate income taxes and other taxes 9,728 2,843 Other 23,342 6,085 $ 130,479 $ 76,027

Credit Arrangements

Credit Arrangements	6 Months Ended
	Jun. 30, 2018
Credit Arrangements
Credit Arrangements	Note 9—Credit Arrangements Long-term debt and credit facilities consist of the following (in thousands): June 30, December 31, 2018 2017 Commercial equipment notes $ 157,227 $ 165,532 Mortgage notes 11,013 11,242 Revolving credit facility 170,000 — Senior secured notes 82,143 82,143 Total debt 420,383 258,917 Unamortized debt issuance costs (97) (102) Total debt, net $ 420,286 $ 258,815 Less: current portion (65,376) (65,464) Long-term debt, net of current portion $ 354,910 $ 193,351 The weighted average interest rate on total debt outstanding at June 30, 2018 and December 31, 2017 was 3.9% and 3.0%, respectively. Commercial Notes Payable and Mortgage Notes Payable From time to time, we enter into commercial equipment notes payable with various equipment finance companies and banks. At June 30, 2018, interest rates ranged from 1.78% to 4.40% per annum and maturity dates ranged from September 20, 2018 to May 25, 2023. The notes are secured by certain construction equipment. We also entered into two secured mortgage notes payable to a bank in December 2015 totaling $8.0 million, with interest rates of 4.3% per annum and maturity dates of January 1, 2031. The mortgage notes are secured by two buildings. During 2017, we acquired three properties from a related party and assumed three mortgage notes secured by the properties totaling $4.2 million, with interest rates of 5.0% per annum and maturity dates of October 1, 2038. Revolving Credit Facility On September 29, 2017, we entered into an amended and restated credit agreement (the “Credit Agreement”) with CIBC Bank USA, as administrative agent (the “Administrative Agent”) and co-lead arranger, The Bank of the West, as co-lead arranger, and Branch Banking and Trust Company, IBERIABANK, Bank of America, and Simmons Bank (the “Lenders”), which increased our borrowing capacity from $125.0 million to $200.0 million. The Credit Agreement consists of a $200.0 million revolving credit facility (“Revolving Credit Facility”), whereby the Lenders agreed to make loans on a revolving basis from time to time and to issue letters of credit for up to the $200.0 million committed amount, and contains an accordion feature that will allow us to increase the borrowing capacity thereunder from $200.0 million up to $250.0 million, subject to obtaining additional or increased lender commitments. The termination date of the Credit Agreement is September 29, 2022. We capitalized $0.6 million of debt issuance costs during the third quarter of 2017 that are being amortized as interest expense over the life of the Credit Agreement. The principal amount of any loans under the Credit Agreement will bear interest at either: (i) LIBOR plus an applicable margin as specified in the Credit Agreement (based on our senior debt to EBITDA ratio as defined in the Credit Agreement), or (ii) the Base Rate (which is the greater of (a) the Federal Funds Rate plus 0.50% or (b) the prime rate as announced by the Administrative Agent). Non-use fees, letter of credit fees and administrative agent fees are payable at rates specified in the Credit Agreement. The principal amount of any loan drawn under the Credit Agreement may be prepaid in whole or in part at any time, with a minimum prepayment of $5.0 million. The Credit Agreement includes customary restrictive covenants for facilities of this type, as discussed below. At June 30, 2018, commercial letters of credit outstanding were $26.0 million, borrowings under the Credit Agreement were $170.0 million, and available borrowing capacity was $4.0 million. Senior Secured Notes and Shelf Agreement On December 28, 2012, we entered into a $50.0 million Senior Secured Notes purchase agreement (“Senior Notes”) and a $25.0 million private shelf agreement (the “Notes Agreement”) by and among us, The Prudential Investment Management, Inc. and certain Prudential affiliates (the “Noteholders”). On June 3, 2015, the Notes Agreement was amended to provide for the issuance of additional notes of up to $75.0 million over the three year period ending June 3, 2018 ("Additional Senior Notes"). The Senior Notes amount was funded on December 28, 2012. The Senior Notes are due December 28, 2022 and bear interest at an annual rate of 3.65%, paid quarterly in arrears. Annual principal payments of $7.1 million are required from December 28, 2016 through December 28, 2021 with a final payment due on December 28, 2022. The principal amount may be prepaid, with a minimum prepayment of $5.0 million, at any time, subject to make-whole provisions. On July 25, 2013, we drew $25.0 million available under the Notes Agreement. The notes are due July 25, 2023 and bear interest at an annual rate of 3.85%, paid quarterly in arrears. Seven annual principal payments of $3.6 million are required from July 25, 2017 with a final payment due on July 25, 2023. On November 9, 2015, we drew $25.0 million available under the Additional Senior Notes Agreement. The notes are due November 9, 2025 and bear interest at an annual rate of 4.6%, paid quarterly in arrears. Seven annual principal payments of $3.6 million are required from November 9, 2019, with a final payment due on November 9, 2025. Loans made under both the Credit Agreement and the Notes Agreement are secured by our assets, including, among others, our cash, inventory, equipment (excluding equipment subject to permitted liens), and accounts receivable. All of our domestic subsidiaries have issued joint and several guaranties in favor of the Lenders and Noteholders for all amounts under the Credit Agreement and Notes Agreement. Both the Credit Agreement and the Notes Agreement contain various restrictive and financial covenants including, among others, senior debt/EBITDA ratio and debt service coverage requirements. In addition, the agreements include restrictions on investments, change of control provisions and provisions in the event we dispose more than 20% of our total assets. We were in compliance with the covenants for the Credit Agreement and Notes Agreement at June 30, 2018. On July 9, 2018, we amended the Credit Agreement and paid off and extinguished all of the notes issued under the Senior Secured Notes and Shelf Agreement. See Note 18 — “Subsequent Events” for further details. Canadian Credit Facility We have a demand credit facility for $8.0 million in Canadian dollars with a Canadian bank for purposes of issuing commercial letters of credit in Canada. The credit facility has an annual renewal and provides for the issuance of commercial letters of credit for a term of up to five years. The facility provides for an annual fee of 1.0% for any issued and outstanding commercial letters of credit. Letters of credit can be denominated in either Canadian or U.S. dollars. At June 30, 2018, letters of credit outstanding was $0.5 million in Canadian dollars, and the available borrowing capacity was $7.5 million in Canadian dollars. The credit facility contains a working capital restrictive covenant for OnQuest Canada, ULC. At June 30, 2018, OnQuest Canada, ULC was in compliance with the covenant.

Noncontrolling Interests

Noncontrolling Interests	6 Months Ended
	Jun. 30, 2018
Noncontrolling Interests
Noncontrolling Interests	Note 10 — Noncontrolling Interests We are currently participating in two joint ventures, each of which operates in the Power segment. Both joint ventures have been determined to be a VIE and we were determined to be the primary beneficiary as a result of our significant influence over the joint venture operations. Each joint venture is a partnership, and consequently, the tax effect of only our share of the income was recognized by us. The net assets of the joint ventures are restricted for use by the specific project and are not available for our general operations. Carlsbad Joint Venture The Carlsbad joint venture’s operating activities began in 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 29,437 $ 26,203 $ 71,257 $ 37,003 Net income attributable to noncontrolling interests $ 2,330 $ 12 $ 5,444 $ 380 The Carlsbad joint venture made no distributions to the partners, and we made no capital contributions to the Carlsbad joint venture during the six months ended June 30, 2018. The project is expected to be completed in 2018. The carrying value of the assets and liabilities associated with the operations of the Carlsbad joint venture are included in our Condensed Consolidated Balance Sheets as follows (in thousands): June 30, December 31, 2018 2017 Cash $ 29,988 $ 44,308 Accounts receivable $ — $ 15,343 Contract assets $ 16,269 $ — Contract liabilities $ 19,124 $ 42,743 Accounts payable $ 4,703 $ 12,352 Due to Primoris $ 6,986 $ — Wilmington Joint Venture The Wilmington joint venture’s operating activities began in October 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 437 $ 12,289 $ 1,921 $ 24,599 Net income attributable to noncontrolling interests $ 146 $ 839 $ 560 $ 1,292 The Wilmington joint venture made no distributions to the partners, and we made no capital contributions to the Wilmington joint venture during the six months ended June 30, 2018. The project was substantially complete as of December 31, 2017. The carrying value of the assets and liabilities associated with the operations of the Wilmington joint venture are included in our Condensed Consolidated Balance Sheets as follows (in thousands): June 30, December 31, 2018 2017 Cash $ 8,762 $ 15,948 Accounts receivable $ 8 $ 598 Contract liabilities $ 212 $ 1,480 Accounts payable $ 154 $ 759 Due to Primoris $ 405 $ 7,428 Summary – Joint Venture Balance Sheets The following table summarizes the total balance sheet amounts for the Carlsbad and Willmington joint ventures, which are included in our Condensed Consolidated Balance Sheets, and the total consolidated balance sheet amounts (in thousands): Joint Venture Consolidated At June 30, 2018 Amounts Amounts Cash $ 38,750 $ 139,404 Accounts receivable $ 8 $ 375,763 Contract assets $ 16,269 $ 360,710 Accounts payable $ 4,857 $ 219,180 Contract liabilities $ 19,336 $ 195,326 At December 31, 2017 Cash $ 60,256 $ 170,385 Accounts receivable $ 15,941 $ 291,589 Accounts payable $ 13,111 $ 140,943 Contract liabilities $ 44,223 $ 169,377

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions
Related Party Transactions	Note 11—Related Party Transactions Prior to March 2017, we leased three properties in California from Stockdale Investment Group, Inc. (“SIGI”). Our Chairman of the Board of Directors, who is also our largest stockholder, and his family hold a majority interest in SIGI. In March 2017, we exercised a right of first refusal and purchased the SIGI properties. The purchase was approved by our Board of Directors for $12.8 million. We assumed three mortgage notes totaling $4.2 million with the remainder paid in cash. During the six months ended June 30, 2018 and 2017, we paid $0 and $0.2 million, respectively, in lease payments to SIGI for the use of these properties. We lease properties from other individuals that are current employees. The amounts leased are not material and each arrangement was approved by the Board of Directors.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation.
Stock-Based Compensation	Note 12—Stock-Based Compensation In May 2013, the shareholders approved and we adopted the Primoris Services Corporation 2013 Long-term Incentive Equity Plan (“Equity Plan”). Our Board of Directors has granted 259,065 Restricted Stock Units (“Units”) to executives under the Equity Plan. The grants were documented in RSU Award Agreements, which provide for a vesting schedule and require continuing employment of the executive. The Units are subject to earlier acceleration, termination, cancellation or forfeiture as provided in the underlying RSU Award Agreement. At June 30, 2018, a total of 202,121 Units were vested. The vesting schedule for the remaining Units are as follows: Number of Units For the Years Ending December 31, to Vest 2019 51,552 2020 5,392 56,944 Under guidance of ASC Topic 718 “ Compensation — Stock Compensation ”, stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the stock-based award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the award). The fair value of the Units was based on the closing market price of our common stock on the day prior to the date of the grant. Stock compensation expense for the Units is being amortized using the straight-line method over the service period. We recognized $0.2 million in compensation expense for the each of the three months ended June 30, 2018 and 2017, respectively, and $0.4 million and $0.7 million for the six months ended June 30, 2018 and 2017, respectively. At June 30, 2018, approximately $0.8 million of unrecognized compensation expense remained for the Units, which will be recognized over a weighted average period of 1.1 years. Vested Units accrue “Dividend Equivalent Units” (as defined in the Equity Plan), which will be accrued as additional Units. At June 30, 2018, a total of 3,974 Dividend Equivalent Units were accrued.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes
Income Taxes	Note 13—Income Taxes We are subject to extensive tax liabilities imposed by multiple jurisdictions. We determine our best estimate of the annual effective tax rate at each interim period using expected annual pre-tax earnings, statutory tax rates, and available tax planning opportunities. Certain significant or unusual items are separately recognized in the quarter in which they occur which can cause variability in the effective tax rate from quarter to quarter. We recognize interest and penalties related to uncertain tax positions, if any, as an income tax expense. The Tax Act was signed into law on December 22, 2017. This legislation makes significant changes to the U.S. Internal Revenue Code including a reduction of the U.S. federal corporate income tax rate from 35% to 21% beginning on January 1, 2018. Other changes require complex computations not previously provided in U.S. tax law. Given the significance of the legislation, the SEC staff issued SAB 118, which provides guidance on accounting for uncertainties of the effects of the Tax Act. Specifically, SAB 118 allowed companies to record provisional estimates of the impact of the Tax Act in the period ended December 31, 2017. The provisional estimates are to be finalized during a one-year “measurement period” similar to that used when accounting for business combinations. Our measurement period remains open as we continue to evaluate the effects of the Tax Act on our deductions for tax depreciation and executive compensation accruals. No changes to the provisional estimates occurred during the six months ended June 30, 2018. We do not include the income tax expense or benefit related to the net earnings or loss attributable to noncontrolling interest in our income tax expense as the entities are considered pass-through entities and, as such, the income tax expense or benefit is attributable to its owners. The effective tax rate on income including noncontrolling interests for the six months ended June 30, 2018 and 2017 was 17.5% and 37.7%, respectively. Excluding noncontrolling interest, the effective tax rate on income attributable to Primoris for the six months ended June 30, 2018 and 2017 was 24.0% and 39.0%, respectively. Our 2018 tax rate differs from the U.S. federal statutory rate of 21% primarily due to the impact of state income taxes, investment tax credits, and nondeductible components of per diem expenses. Our 2017 tax rate differs from the U.S. federal statutory rate of 35% primarily due to state income taxes, the Domestic Production Activity Deduction, and nondeductible components of per diem expenses. Primoris’ U.S. federal income tax returns are generally no longer subject to examination for tax years before 2014. The statutes of limitation of state and foreign jurisdictions generally vary between 3 to 5 years. Accordingly, Primoris’ state and foreign income tax returns are generally no longer subject to examination for tax years before 2012. We are subject to examination for certain Willbros tax matters beginning after 2007 for the U.S. federal and most state income tax returns, and after 2010 for Canada. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial reporting basis and tax basis of our assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to reverse. The effects of remeasurement of deferred tax assets and liabilities resulting from changes in tax rates are recognized in income in the period of enactment.

Dividends and Earnings Per Shar

Dividends and Earnings Per Share	6 Months Ended
	Jun. 30, 2018
Dividends and Earnings Per Share
Dividends and Earnings Per Share	Note 14—Dividends and Earnings Per Share We have paid or declared cash dividends during 2018 and 2017 as follows: Declaration Date Record Date Payable Date Amount Per Share February 21, 2017 March 31, 2017 April 15, 2017 $ May 5, 2017 June 30, 2017 July 14, 2017 $ August 2, 2017 September 29, 2017 October 14, 2017 $ November 2, 2017 December 29, 2017 January 15, 2018 $ February 21, 2018 March 30, 2018 April 13, 2018 $ May 4, 2018 June 29, 2018 July 13, 2018 $ The payment of future dividends is contingent upon our revenue and earnings, capital requirements and our general financial condition, as well as contractual restrictions and other considerations deemed relevant by the Board of Directors. The table below presents the computation of basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 (in thousands, except per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income attributable to Primoris $ 11,715 $ 21,545 $ 12,403 $ 29,236 Denominator: Weighted average shares for computation of basic earnings per share 51,531 51,437 51,505 51,515 Dilutive effect of shares issued to independent directors — — 3 3 Dilutive effect of restricted stock units (1) 262 251 262 253 Weighted average shares for computation of diluted earnings per share 51,793 51,688 51,770 51,771 Earnings per share attributable to Primoris: Basic $ 0.23 $ 0.42 $ 0.24 $ 0.57 Diluted $ 0.23 $ 0.42 $ 0.24 $ 0.56 (1) Represents the dilutive effect of the grant of Units and vested Dividend Equivalent Units for the respective periods presented.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	Note 15—Stockholders’ Equity Common stock We issued 71,757 shares of common stock in February 2018 and 65,429 shares of common stock in February 2017 under our long-term retention plan (“LTR Plan”). The shares were purchased by the participants in the LTR Plan with payment made to us of $1.5 million in February 2018 and $1.1 million in February 2017. Our LTR Plan for managers and executives allows participants to use a portion of their annual bonus amount to purchase our common stock at a discount from the market price. The shares purchased in February 2018 were for bonus amounts earned in 2017, and the number of shares was calculated at 75% of the average closing market price of December 2017. The shares purchased in February 2017 were for bonus amounts earned in 2016, and the number of shares was calculated at 75% of the average closing market price of January 2017. In February 2018 and 2017, we issued 10,062 shares and 11,784 shares of common stock, respectively, as part of the quarterly compensation of the non-employee members of the Board of Directors. As discussed in Note 12 — “Stock–Based Compensation” , as of June 30, 2018, the Board of Directors has granted a total of 259,065 shares of Units under the Equity Plan and these Units have accrued 3,974 Dividend Equivalent Units. Share repurchase plan In May 2018, our Board of Directors authorized a $5.0 million share repurchase program that expires on December 31, 2018. Under the share repurchase program, we can, depending on market conditions, share price and other factors, acquire shares of our common stock on the open market or in privately negotiated transactions. There were no share repurchases in the six months ended June 30, 2018. In February 2017, our Board of Directors authorized a $5.0 million share repurchase program under which we could, depending on market conditions, share price and other factors, acquire shares of our common stock on the open market or in privately negotiated transactions. During the month of March 2017, we purchased and cancelled 216,350 shares of common stock, which in the aggregate, equaled $5.0 million, at an average price of $23.10 per share.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies.
Commitments and Contingencies	Note 16—Commitments and Contingencies Leases — We lease certain property and equipment under non-cancellable operating leases, which expire at various dates through 2023. The leases require us to pay all taxes, insurance, maintenance and utilities and are classified as operating leases in accordance with ASC Topic 840 “Leases”. Total lease expense during the three and six months ended June 30, 2018 was $9.9 million and $16.7 million, respectively, compared to $5.9 million and $12.0 million, respectively, for the same periods in 2017. Total lease expense associated with operating leases acquired in the Willbros acquisition from the acquisition date of June 1, 2018 to June 30, 2018 was approximately $2.6 million. Withdrawal liability for multiemployer pension plan — In November 2011, members of the Pipe Line Contractors Association (“PLCA”), including ARB, Rockford and Q3C (prior to our acquisition in 2012), withdrew from the Central States, Southeast and Southwest Areas Pension Fund multiemployer pension plan (“Plan”) in order to mitigate additional liability in connection with the significantly underfunded Plan. During the first quarter of 2016, we received a final payment schedule for our withdrawal liability. Based on this schedule, the liability recorded at June 30, 2018 was $4.3 million, which is included in Accrued liabilities on the Condensed Consolidated Balance Sheets. We expect to pay the remaining liability balance during 2018, and have no plans to withdraw from any other labor agreements. NTTA settlement — On February 7, 2012, we were sued in an action entitled North Texas Tollway Authority (“NTTA”), Plaintiff v. James Construction Group, LLC, and KBR, Inc., Defendants, v. Reinforced Earth Company, Third-Party Defendant (the “Lawsuit”). On February 25, 2015 the Lawsuit was settled, and we recorded a liability for $17.0 million. A second defendant agreed to provide up to $5.4 million to pay for the total expected remediation cost of approximately $22.4 million. We will use our settlement obligation to pay for a third-party contractor approved by the NTTA. In the event that the total remediation costs exceed the $22.4 million, the second defendant would pay 20% of the excess amount and we would pay for 80% of the excess amount. During the six months ended June 30, 2018, we increased our liability by $0.3 million and spent $0.4 million for remediation. While we continue to monitor the progress toward remediation and the total remediation costs, at this time we cannot determine the eventual remediation cost. At June 30, 2018, the remaining accrual balance was $15.1 million. Legal proceedings — We have been engaged in a dispute resolution to collect money we believe we are owed for a construction project completed in 2014. Because of uncertainties associated with the project, including uncertainty of the amounts that would be collected, we used a zero profit margin approach to recording revenue during the construction period for the project. For the project, a cost reimbursable contract, we had recorded a receivable of $32.9 million with a reserve of approximately $18.1 million included in “Contract liabilities”. During the second quarter of 2018, we received a partial payment on the receivable balance of $12.0 million, reducing our receivable balance to $20.9 million. At this time, we cannot predict the amount that we will collect nor the timing of any collection. The dispute resolution for the receivable initially required international arbitration; however, in the first half of 2016, the owner sought bankruptcy protection in U.S. bankruptcy court. We have initiated litigation against the sureties who have provided lien and stop payment release bonds for the total amount owed. A trial date has been tentatively set for the fourth quarter of 2018. We are subject to other claims and legal proceedings arising out of our business. We provide for costs related to contingencies when a loss from such claims is probable and the amount is reasonably estimable. In determining whether it is possible to provide an estimate of loss, or range of possible loss, we review and evaluate our litigation and regulatory matters on a quarterly basis in light of potentially relevant factual and legal developments. If we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for a potential litigation loss. Management is unable to ascertain the ultimate outcome of other claims and legal proceedings; however, after review and consultation with counsel and taking into consideration relevant insurance coverage and related deductibles/self-insurance retention, management believes that it has meritorious defense to the claims and believes that the reasonably possible outcome of such claims will not, individually or in the aggregate, have a materially adverse effect on our consolidated results of operations, financial condition or cash flow. SEC Inquiry — We have been cooperating with an inquiry by the staff of the SEC, which appears to be focused on certain percentage-of-completion contract revenue recognition practices of the Company during 2013 and 2014. We are continuing to respond to the staff’s inquiries in connection with this matter. We currently expect this matter to be resolved during 2018. Litigation matters related to the acquisition of Willbros — In the fourth quarter of 2014, Willbros announced a restatement of its Condensed Consolidated Financial Statements for the March 2014 and June 2014 quarters. On October 28, 2014, a complaint was filed in the United States District Court for the Southern District of Texas seeking class action status on behalf of purchasers of Willbros’ stock and alleging damages on their behalf arising from the matters that led to the restatement. On February 16, 2018, Willbros reached an agreement in principle, which, if approved by the Court, would settle all claims against the defendants and be fully funded by Willbros’ insurance carriers. On April 17, 2018, the Court signed an Order Preliminarily Approving Settlement and Providing Notice, preliminarily approving the settlement. On August 2, 2018, at a hearing to determine whether the parties’ settlement was fair, reasonable and adequate to the Settlement Class Members, the Court approved the settlement and entered the Order on August 3, 2018. In addition, two shareholder derivative lawsuits were filed purportedly on behalf of Willbros in connection with the restatement. One of the lawsuits was voluntarily dismissed by the plaintiff on April 23, 2015. On October 24, 2016, the Court dismissed the second lawsuit with prejudice. Plaintiffs’ motion for reconsideration was denied on December 21, 2016. Plaintiffs filed a Notice of Appeal on January 20, 2017. The appeal is assigned to the 14th Court of Appeals, Houston, Texas; the court heard oral argument in the appeal on January 30, 2018 but it has not yet issued an opinion. We believe that any judgement would be fully funded by Willbros insurance carriers. On April 11, 2018, Willbros submitted for review to the SEC a preliminary proxy concerning the pending merger with Primoris. On April 24, 2018, a securities class action suit was filed by a purported stockholder in the United States District Court for the Southern District of Texas seeking injunctive relief with regards to the pending merger. The suit, Karl Graulich v. Willbros Group Inc. [sic], et al., Case 4:18-cv-01286 , named as defendants Willbros and its directors. The complaint was voluntarily dismissed by the plaintiff on May 9, 2018. Bonding — At June 30, 2018 and December 31, 2017, the Company had bid and completion bonds issued and outstanding totaling approximately $568.2 million and $705.7 million, respectively.

Reportable Segments

Reportable Segments	6 Months Ended
	Jun. 30, 2018
Reportable Segments
Reportable Segments	Note 17—Reportable Segments We segregate our business into five reportable segments: the Power segment, the Pipeline segment, the Utilities segment, the Transmission segment, which is a new reportable segment created in connection with the acquisition of Willbros, and the Civil segment. Each of our reportable segments is comprised of similar business units that specialize in services unique to the segment. Driving the end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment; the production processes of each segment; the type or class of customer using the segment’s services; the methods used by the segment to provide the services; and the regulatory environment of each segment’s customers. The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made. The following is a brief description of the reportable segments: The Power segment operates throughout the United States and specializes in a range of services that include full EPC project delivery, turnkey construction, retrofits, upgrades, repairs, outages, and maintenance for entities in the petroleum, petrochemical, water, and other industries. The Pipeline segment operates throughout the United States and specializes in a range of services, including pipeline construction, pipeline maintenance, pipeline facility work, compressor stations, pump stations, metering facilities, and other pipeline related services for entities in the petroleum and petrochemical industries. The Utilities segment operates primarily in California, the Midwest, and the Southeast regions of the United States and specializes in a range of services, including utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation. The Transmission segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in a range of services in electric and gas transmission and distribution, including comprehensive engineering, procurement, maintenance and contruction, repair, and restoration of utility infrastructure. The Civil segment operates primarily in the Southeastern and Gulf Coast regions of the United States and specializes in highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects. All intersegment revenue and gross profit, which were immaterial, have been eliminated in the following tables. Segment Revenue Revenue by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): For the three months ended June 30, 2018 2017 % of % of Total Total Segment Revenue Revenue Revenue Revenue Power $ 167,001 $ 157,773 Pipeline 90,605 134,623 Utilities 228,852 212,942 Transmission (1) 42,454 — Civil 119,875 125,827 Total $ 648,787 $ 631,165 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . For the six months ended June 30, 2018 2017 % of % of Total Total Segment Revenue Revenue Revenue Revenue Power $ 333,556 $ 289,013 Pipeline 148,188 318,068 Utilities 395,562 329,922 Transmission (1) 42,454 — Civil 233,146 255,664 Total $ 1,152,906 $ 1,192,667 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . Segment Gross Profit Gross profit by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): For the three months ended June 30, 2018 2017 % of % of Segment Segment Segment Gross Profit Revenue Gross Profit Revenue Power $ 20,526 $ 18,132 Pipeline 10,678 39,366 Utilities 34,564 32,347 Transmission (1) 5,721 — Civil (70) (5,362) Total $ 71,419 $ 84,483 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . For the six months ended June 30, 2018 2017 % of % of Segment Segment Segment Gross Profit Revenue Gross Profit Revenue Power $ 44,597 $ 33,656 Pipeline 18,569 67,491 Utilities 43,615 40,620 Transmission (1) 5,721 — Civil 3,477 (2,231) Total $ 115,979 $ 139,536 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . Segment Goodwill The amount of goodwill recorded by each segment at June 30, 2018 and at December 31, 2017 is presented in Note 7 – “ Goodwill and Intangible Assets” . Geographic Region — Revenue and Total Assets The majority of our revenue is derived from customers in the United States with approximately 1.4% generated from sources outside of the United States, principally in Canada. At June 30, 2018 and December 31, 2017, approximately 2.2% of total assets were located outside of the United States.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events.
Subsequent Events	Note 18—Subsequent Events Amendment to the Credit Agreement On July 9, 2018, we entered into the First Amendment and Joinder to the Amended and Restated Credit Agreement (the “July Amendment”) with the Administrative Agent and the Lenders. On August 3, 2018, we entered into the Second Amendment to the Amended and Restated Credit Agreement (the “August Amendment”, and together with the July Amendment, the “Amendments”) with the Administrative agent and the Lenders. The Amendments amend the Credit Agreement, dated as of September 29, 2017, among such parties. The Amendments, among other things, modify the Credit Agreement to include a $220.0 million term loan (the “Term Loan”), increases the accordion feature that will allow us to increase the Term Loan or borrowing capacity under the Revolving Credit Facility by $75.0 million, and extends the maturity date of the Credit Agreement from September 29, 2022 to July 9, 2023. The Term Loan requires quarterly principal payments equal to 1.250%, or 5.000% per annum, of the original principal amount of the Term Loan for the first three years and 1.875%, or 7.500% per annum, of the original principal amount of the Term Loan for years four and five, with the balance due on July 9, 2023. The first principal payment will be due on September 30, 2018. The proceeds from the Term Loan were used to refinance and extinguish all of the notes issued under our Senior Secured Notes and Shelf Agreement, to pay down a significant portion of the borrowings under our Revolving Credit Facility that was used to finance the acquisition of Willbros, and for general corporate purposes. Cash Dividend On August 2, 2018, the Board of Directors declared a cash dividend of $0.06 per share of common stock for stockholders of record as of September 28, 2018, payable on or about October 15, 2018.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Basis of Presentation
Reclassification	Reclassification — Certain previously reported amounts have been reclassified to conform to the current year presentation.
Restricted cash	Restricted cash — Restricted cash consists of cash balances that are restricted as to withdrawal or usage. As a result of the Willbros acquisition, we acquired cash pledged to secure letters of credit, which is recorded as restricted cash at June 30, 2018. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals of such amounts shown in the Condensed Consolidated Statements of Cash Flows (in thousands). June 30, December 31, 2018 2017 Cash and cash equivalents $ 139,404 $ 170,385 Restricted cash 35,492 — $ 174,896 $ 170,385
Customer concentration	Customer concentration — We operate in multiple industry segments encompassing the construction of commercial, industrial and public works infrastructure assets primarily throughout the United States. Typically, the top ten customers in any one calendar year generate revenue in excess of 50% of total revenue; however, the group that comprises the top ten customers varies from year to year. During the three and six months ended June 30, 2018, revenue generated by the top ten customers were approximately $322.6 million and $581.6 million, respectively, which represented 50.4% and 49.7%, respectively, of total revenue during the applicable period. During the three and six months ended June 30, 2018, a state department of transportation customer represented 9.4% and 9.3% of total revenue, respectively, and a California utility customer represented 8.7% and 9.0% of total revenue, respectively. During the three and six months ended June 30, 2017, revenues generated by the top ten customers were approximately $330.2 million and $713.5 million, respectively, which represented 52.3% and 59.8%, respectively, of total revenues during the applicable period. During the three and six months ended June 30, 2017, two large pipeline projects represented 11.0% and 19.2% of total revenues, respectively and a state department of transportation customer represented 10.6% and 10.5% of total revenues, respectively. At June 30, 2018, approximately 6.5% of our accounts receivable were due from one customer, and that customer provided 8.8% our revenue for the six months ended June 30, 2018. In addition, of total accounts receivable, approximately 5.1% are from one customer with whom we are currently engaged in a dispute resolution. See Note 16 – “ Commitments and Contingencies ”. At June 30, 2017, approximately 11.7% of our accounts receivable were due from one customer, and that customer provided 8.8% of our revenue for the six months ended June 30, 2017. In addition, approximately 11.0% of total accounts receivable at June 30, 2017 were from one customer with whom we are currently engaged in a dispute resolution.
Multiemployer plans	Multiemployer plans — Various of our subsidiaries are signatories to collective bargaining agreements. These agreements require that we participate in and contribute to a number of multiemployer benefit plans for our 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. To the extent that any plans are underfunded, the Employee Retirement Income Security Act of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, requires that if we were to withdraw from an agreement or if a plan is terminated, we may incur a withdrawal obligation. The potential withdrawal obligation may be significant. In accordance with Generally Accepted Accounting Principles (“GAAP”), any withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably estimated. In November 2011, we withdrew from the Central States Southeast and Southwest Areas Pension Fund multiemployer plan, as discussed in Note 16 — “Commitments and Contingencies” . We have no plans to withdraw from any other agreements. .
Revenue recognition	On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Adoption changed our accounting policy for revenue recognition. Results for periods prior to January 1, 2018 are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. The cumulative impact of adopting Topic 606 was immaterial and did not require an adjustment to retained earnings. However, we have reclassified prior year balance sheet and cash flow amounts to conform to current year presentation. We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts. A substantial portion of our revenue is derived from contracts that are fixed-price or unit-price and is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For time and material and cost reimbursable plus fee contracts, revenue is recognized primarily on an input basis, based on contract costs incurred as defined within the respective contracts. Costs to obtain contracts are generally not significant and are expensed in the period incurred. We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. Topic 606 defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation. As of June 30, 2018, we had $1.85 billion of remaining performance obligations. We expect to recognize approximately 84% of our remaining performance obligations as revenue during the next four quarters and the remaining balance thereafter. Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue 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 revenue 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 nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, 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. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three and six months ended June 30, 2018, revenue recognized from performance obligations satisfied in previous periods was $3.7 million and $25.0 million, respectively. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full in the period it is identified and recognized as an “accrued loss provision” which is included in “Contract liabilities” on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods. At June 30, 2018, we had approximately $85.3 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $77.1 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through June 30, 2018. In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we 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. The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. The caption “Contract assets” in the Condensed Consolidated Balance Sheets represents the following: · unbilled revenue (formerly costs and estimated earnings in excess of billings), which arise when revenue has been recorded but the amount will not be billed until a later date; · retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and · contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating the cost incurred to a specific project.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2018
Basis of Presentation
Reconciliation of cash, cash equivalents and restricted cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals of such amounts shown in the Condensed Consolidated Statements of Cash Flows (in thousands). June 30, December 31, 2018 2017 Cash and cash equivalents $ 139,404 $ 170,385 Restricted cash 35,492 — $ 174,896 $ 170,385

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue
Schedule of contract assets	Contract assets consist of the following (in thousands): June 30, December 31, 2018 2017 Unbilled revenue $ 243,478 $ 160,092 Retention receivable 84,623 66,586 Contract materials (not yet installed) 32,609 39,224 $ 360,710 $ 265,902
Schedule of contract liabilities	Contract liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Deferred revenue $ 181,053 $ 159,310 Accrued loss provision 14,273 10,067 $ 195,326 $ 169,377
Schedule of revenue disaggregation by various categories	Master Service Agreements (“MSA”) and Non-MSA revenue was as follows (in thousands): For the three months ended June 30, 2018 Segment MSA Non-MSA Total Power $ 22,672 $ 144,329 $ 167,001 Pipeline 12,213 78,392 90,605 Utilities 168,336 60,516 228,852 Transmission 35,517 6,937 42,454 Civil — 119,875 119,875 Total $ 238,738 $ 410,049 $ 648,787 For the six months ended June 30, 2018 Segment MSA Non-MSA Total Power $ 42,070 $ 291,486 $ 333,556 Pipeline 19,493 128,695 148,188 Utilities 288,103 107,459 395,562 Transmission 35,517 6,937 42,454 Civil — 233,146 233,146 Total $ 385,183 $ 767,723 $ 1,152,906 Revenue by contract type was as follows (in thousands): For the three months ended June 30, 2018 Segment Fixed-price Unit-price Cost reimbursable (1) Total Power $ 108,383 $ 14,532 $ 44,086 $ 167,001 Pipeline 28,102 31,678 30,825 90,605 Utilities 41,299 127,863 59,690 228,852 Transmission 8,000 25,457 8,997 42,454 Civil 14,780 92,132 12,963 119,875 Total $ 200,564 $ 291,662 $ 156,561 $ 648,787 (1) Includes time and material and cost reimbursable plus fee contracts. For the six months ended June 30, 2018 Segment Fixed-price Unit-price Cost reimbursable (1) Total Power $ 225,038 $ 25,644 $ 82,874 $ 333,556 Pipeline 40,622 50,323 57,243 148,188 Utilities 105,363 194,614 95,585 395,562 Transmission 8,000 25,457 8,997 42,454 Civil 24,423 179,212 29,511 233,146 Total $ 403,446 $ 475,250 $ 274,210 $ 1,152,906 (1) Includes time and material and cost reimbursable plus fee contracts.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Schedule of financial assets and liabilities which are required to be measured at fair value	The following table presents, for each of the fair value hierarchy levels identified under ASC Topic 820, our financial assets and liabilities that are required to be measured at fair value at June 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements at Reporting Date Significant Quoted Prices Other Significant in Active Markets Observable Unobservable for Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets as of June 30, 2018: Cash and cash equivalents $ 139,404 $ — $ — Restricted cash 35,492 — — Liabilities as of June 30, 2018: Contingent consideration $ — $ — $ 1,500 Assets as of December 31, 2017: Cash and cash equivalents $ 170,385 $ — $ — Liabilities as of December 31, 2017: Contingent consideration $ — $ — $ 716
Schedule of changes to the Company's contingent consideration liability Level 3 fair value measurements	The following table provides changes to our contingent consideration liability Level 3 fair value measurements during the six months ended June 30, 2018 (in thousands): Significant Unobservable Inputs (Level 3) Contingent Consideration Liability 2018 2017 Beginning balance, January 1, $ 716 $ — FGC acquisition — 1,200 Change in fair value of contingent consideration liability during year 784 13 Ending balance, June 30, $ 1,500 $ 1,213

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2018
Business combinations
Schedule of pro forma results	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 774,018 $ 869,039 $ 1,479,118 $ 1,610,081 Income before provision for income taxes $ 14,641 $ 37,156 $ 15,447 $ 35,426 Net income attributable to Primoris $ 9,371 $ 21,896 $ 7,451 $ 20,732 Weighted average common shares outstanding: Basic 51,531 51,437 51,505 51,515 Diluted 51,793 51,688 51,770 51,771 Earnings per share: Basic $ 0.18 $ 0.43 $ 0.14 $ 0.40 Diluted $ 0.18 $ 0.42 $ 0.14 $ 0.40
Willbros Group, Inc
Business combinations
Summary of the fair value of assets acquired and the liabilities assumed	Purchase consideration (in thousands) Total purchase consideration $ 164,758 Less cash and restricted cash acquired (53,728) Net cash paid 111,030 Preliminary identifiable assets acquired and liabilities assumed (in thousands) Cash and restricted cash $ 53,728 Accounts receivable 102,719 Contract assets 30,762 Other current assets 18,767 Property, plant and equipment 33,171 Intangible assets: Customer relationships 52,650 Non-compete agreements 1,600 Tradename 200 Deferred income taxes 22,466 Other non-current assets 2,261 Accounts payable and accrued liabilities (117,736) Contract liabilities (44,258) Other non-current liabilities (35,269) Total identifiable net assets 121,061 Goodwill 43,697 Total purchase consideration $ 164,758

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets
Schedule of goodwill by reporting unit	The change in goodwill by segment for the six months ended June 30, 2018 was as follows (in thousands): Power Pipeline Utilities Transmission Civil Total Balance at January 1, 2018 $ 24,391 $ 51,521 $ 37,312 $ — $ 40,150 $ 153,374 Goodwill acquired during the year 6,101 2,849 — 34,747 — 43,697 Balance at June 30, 2018 $ 30,492 $ 54,370 $ 37,312 $ 34,747 $ 40,150 $ 197,071
Summary of intangible asset categories, amounts and the average amortization periods	The table below summarizes the intangible asset categories, amounts and the average amortization periods, which are on a straight-line basis (in thousands): June 30, 2018 December 31, 2017 Weighted Gross Carrying Accumulated Gross Carrying Accumulated Tradename 9 years $ 31,590 $ (23,451) $ 32,175 $ (22,238) Customer relationships 16 years 102,550 (19,239) 49,900 (16,338) Non-compete agreements 5 years 3,500 (1,037) 1,900 (820) Other 3 years 275 (99) 275 (54) Total 15 years $ 137,915 $ (43,826) $ 84,250 $ (39,450)
Schedule of estimated future amortization expense for intangible assets	Estimated future amortization expense for intangible assets is as follows (in thousands): Estimated Intangible For the Years Ending Amortization December 31, Expense 2018 (remaining six months) $ 6,280 2019 12,145 2020 9,394 2021 8,155 2022 6,989 Thereafter 51,126 $ 94,089

Accounts Payable and Accrued 31

Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Accounts Payable and Accrued Liabilities
Summary of accrued expenses and other current liabilities	The following is a summary of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2018 2017 Payroll and related employee benefits $ 68,942 $ 45,708 Insurance, including self-insurance reserves 28,467 21,391 Corporate income taxes and other taxes 9,728 2,843 Other 23,342 6,085 $ 130,479 $ 76,027

Credit Arrangements (Tables)

Credit Arrangements (Tables)	6 Months Ended
	Jun. 30, 2018
Credit Arrangements
Schedule of long-term debt and credit facilities	Long-term debt and credit facilities consist of the following (in thousands): June 30, December 31, 2018 2017 Commercial equipment notes $ 157,227 $ 165,532 Mortgage notes 11,013 11,242 Revolving credit facility 170,000 — Senior secured notes 82,143 82,143 Total debt 420,383 258,917 Unamortized debt issuance costs (97) (102) Total debt, net $ 420,286 $ 258,815 Less: current portion (65,376) (65,464) Long-term debt, net of current portion $ 354,910 $ 193,351

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of the carrying value of the assets and liabilities included in the Company's consolidated balance sheets	The following table summarizes the total balance sheet amounts for the Carlsbad and Willmington joint ventures, which are included in our Condensed Consolidated Balance Sheets, and the total consolidated balance sheet amounts (in thousands): Joint Venture Consolidated At June 30, 2018 Amounts Amounts Cash $ 38,750 $ 139,404 Accounts receivable $ 8 $ 375,763 Contract assets $ 16,269 $ 360,710 Accounts payable $ 4,857 $ 219,180 Contract liabilities $ 19,336 $ 195,326 At December 31, 2017 Cash $ 60,256 $ 170,385 Accounts receivable $ 15,941 $ 291,589 Accounts payable $ 13,111 $ 140,943 Contract liabilities $ 44,223 $ 169,377
Carlsbad
Schedule of joint venture operating activities included in the Company's consolidated statements of income	The Carlsbad joint venture’s operating activities began in 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 29,437 $ 26,203 $ 71,257 $ 37,003 Net income attributable to noncontrolling interests $ 2,330 $ 12 $ 5,444 $ 380
Schedule of the carrying value of the assets and liabilities included in the Company's consolidated balance sheets	The carrying value of the assets and liabilities associated with the operations of the Carlsbad joint venture are included in our Condensed Consolidated Balance Sheets as follows (in thousands): June 30, December 31, 2018 2017 Cash $ 29,988 $ 44,308 Accounts receivable $ — $ 15,343 Contract assets $ 16,269 $ — Contract liabilities $ 19,124 $ 42,743 Accounts payable $ 4,703 $ 12,352 Due to Primoris $ 6,986 $ —
Wilmington
Schedule of joint venture operating activities included in the Company's consolidated statements of income	The Wilmington joint venture’s operating activities began in October 2015 and are included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 437 $ 12,289 $ 1,921 $ 24,599 Net income attributable to noncontrolling interests $ 146 $ 839 $ 560 $ 1,292
Schedule of the carrying value of the assets and liabilities included in the Company's consolidated balance sheets	The carrying value of the assets and liabilities associated with the operations of the Wilmington joint venture are included in our Condensed Consolidated Balance Sheets as follows (in thousands): June 30, December 31, 2018 2017 Cash $ 8,762 $ 15,948 Accounts receivable $ 8 $ 598 Contract liabilities $ 212 $ 1,480 Accounts payable $ 154 $ 759 Due to Primoris $ 405 $ 7,428

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Schedule of units activity	Number of Units For the Years Ending December 31, to Vest 2019 51,552 2020 5,392 56,944

Dividends and Earnings Per Sh35

Dividends and Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Dividends and Earnings Per Share
Schedule of cash dividends paid or declared	Declaration Date Record Date Payable Date Amount Per Share February 21, 2017 March 31, 2017 April 15, 2017 $ May 5, 2017 June 30, 2017 July 14, 2017 $ August 2, 2017 September 29, 2017 October 14, 2017 $ November 2, 2017 December 29, 2017 January 15, 2018 $ February 21, 2018 March 30, 2018 April 13, 2018 $ May 4, 2018 June 29, 2018 July 13, 2018 $
Schedule of computation of basic and diluted earnings per share	The table below presents the computation of basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 (in thousands, except per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income attributable to Primoris $ 11,715 $ 21,545 $ 12,403 $ 29,236 Denominator: Weighted average shares for computation of basic earnings per share 51,531 51,437 51,505 51,515 Dilutive effect of shares issued to independent directors — — 3 3 Dilutive effect of restricted stock units (1) 262 251 262 253 Weighted average shares for computation of diluted earnings per share 51,793 51,688 51,770 51,771 Earnings per share attributable to Primoris: Basic $ 0.23 $ 0.42 $ 0.24 $ 0.57 Diluted $ 0.23 $ 0.42 $ 0.24 $ 0.56 (1) Represents the dilutive effect of the grant of Units and vested Dividend Equivalent Units for the respective periods presented.

Reportable Segments (Tables)

Reportable Segments (Tables)	6 Months Ended
	Jun. 30, 2018
Reportable Segments
Schedule of revenue by segment	Revenue by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): For the three months ended June 30, 2018 2017 % of % of Total Total Segment Revenue Revenue Revenue Revenue Power $ 167,001 $ 157,773 Pipeline 90,605 134,623 Utilities 228,852 212,942 Transmission (1) 42,454 — Civil 119,875 125,827 Total $ 648,787 $ 631,165 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . For the six months ended June 30, 2018 2017 % of % of Total Total Segment Revenue Revenue Revenue Revenue Power $ 333,556 $ 289,013 Pipeline 148,188 318,068 Utilities 395,562 329,922 Transmission (1) 42,454 — Civil 233,146 255,664 Total $ 1,152,906 $ 1,192,667 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 .
Schedule of gross profit by segment	Gross profit by segment for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): For the three months ended June 30, 2018 2017 % of % of Segment Segment Segment Gross Profit Revenue Gross Profit Revenue Power $ 20,526 $ 18,132 Pipeline 10,678 39,366 Utilities 34,564 32,347 Transmission (1) 5,721 — Civil (70) (5,362) Total $ 71,419 $ 84,483 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 . For the six months ended June 30, 2018 2017 % of % of Segment Segment Segment Gross Profit Revenue Gross Profit Revenue Power $ 44,597 $ 33,656 Pipeline 18,569 67,491 Utilities 43,615 40,620 Transmission (1) 5,721 — Civil 3,477 (2,231) Total $ 115,979 $ 139,536 (1) Represents results from the June 1, 2018 acquisition date of Willbros to June 30, 2018 .

Nature of Business (Details)

Nature of Business (Details) $ in Thousands	Jun. 01, 2018USD ($)segment	Jun. 16, 2017USD ($)	May 30, 2017USD ($)	May 26, 2017USD ($)	Jun. 30, 2018USD ($)segmentitem	Jun. 30, 2017USD ($)
Nature of Business
Number of reportable segments | segment					5
Number of joint ventures | item					2
Number of variable interest entities | item					2
Purchase consideration, net of cash acquired					$ 111,030	$ 66,205
Willbros Group, Inc
Nature of Business
Number of reportable segments | segment	3
Purchase consideration, net of cash acquired	$ 111,030
Total purchase consideration	164,758
Transmission | Willbros Group, Inc
Nature of Business
Purchase consideration, net of cash acquired	$ 111,000
Utilities | FGC
Nature of Business
Total purchase consideration				$ 37,700
Pipeline | Coastal
Nature of Business
Total purchase consideration		$ 27,500
Power | Engineering Assets
Nature of Business
Total purchase consideration			$ 2,300
Carlsbad
Nature of Business
Ownership percentage					50.00%
Wilmington
Nature of Business
Ownership percentage					50.00%

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)customer	Jun. 30, 2017USD ($)customer	Jun. 30, 2018USD ($)customeritem	Jun. 30, 2017USD ($)customer	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Customer concentration
Number of top customers | customer			10
Number of calendar years in which top customers typically generate minimum specified percentage of revenue | item			1
Minimum percentage of revenues generated by top ten customers			50.00%
Revenue	$ 648,787		$ 1,152,906
Cash, cash equivalents and restricted cash
Cash and cash equivalents	139,404		139,404		$ 170,385
Restricted cash	35,492		35,492
Cash, cash equivalents and restricted cash	$ 174,896	$ 111,676	$ 174,896	$ 111,676	$ 170,385	$ 135,823
Revenues. | Customer concentration | Top ten customers
Customer concentration
Number of top customers | customer	10	10	10	10
Revenue	$ 322,600	$ 330,200	$ 581,600	$ 713,500
Percentage of concentration risk	50.40%	52.30%	49.70%	59.80%
Revenues. | Customer concentration | One customer
Customer concentration
Percentage of concentration risk			8.80%	8.80%
Revenues. | Customer concentration | A State department of transportation
Customer concentration
Percentage of concentration risk	9.40%	10.60%	9.30%	10.50%
Revenues. | Customer concentration | Two large pipeline projects
Customer concentration
Percentage of concentration risk		11.00%		19.20%
Revenues. | Customer concentration | California utility
Customer concentration
Percentage of concentration risk	8.70%		9.00%
Accounts receivable | Customer concentration | One customer
Customer concentration
Percentage of concentration risk			6.50%	11.70%
Number of customers | customer			1	1
Accounts receivable | Customer concentration | Disputed Receivables
Customer concentration
Percentage of concentration risk			5.10%	11.00%
Number of customers | customer			1	1

Revenue - Performance obligatio

Revenue - Performance obligations (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)
Revenue
Remaining performance obligations	$ 1,850	$ 1,850
Percentage of remaining performance obligation expected to be recognized in period		84.00%
Amount of contract modifications included in the expected contract value.	85.3	$ 85.3
Amount of contract modifications recognized as revenue on a cumulative catch-up basis		77.1
Revenue recognized from performance obligations satisfied in previous periods	$ 3.7	$ 25

Revenue - Performance obligat40

Revenue - Performance obligations - 2018-04-01 (Details)	6 Months Ended
	Jun. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue expected timing
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction	12 months

Revenue - Contract assets (Deta

Revenue - Contract assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Unbilled revenue	$ 243,478	$ 243,478	$ 160,092
Retention receivable	84,623	84,623	66,586
Contract materials (not yet installed)	32,609	32,609	39,224
Contract assets	360,710	360,710	$ 265,902
Increase in contract assets		$ 94,800
Willbros Group, Inc
Increase in contract assets	$ 30,800

Revenue - Contract liabilities

Revenue - Contract liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Deferred revenue	$ 181,053	$ 181,053	$ 159,310
Accrued loss provision	14,273	14,273	10,067
Contract liabilities	195,326	195,326	$ 169,377
Increase in contract liabilities		25,900
Revenue recognized included in contract liability at beginning of period		$ 132,700
Willbros Group, Inc
Increase in contract liabilities	$ 44,300

Revenue - Disaggregation of rev

Revenue - Disaggregation of revenue by customer type and contract type (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 648,787	$ 1,152,906
Fixed price
Disaggregation of Revenue
Revenue	200,564	403,446
Unit price
Disaggregation of Revenue
Revenue	291,662	475,250
Cost reimbursable
Disaggregation of Revenue
Revenue	156,561	274,210
MSA
Disaggregation of Revenue
Revenue	238,738	385,183
Non-MSA
Disaggregation of Revenue
Revenue	410,049	767,723
Power
Disaggregation of Revenue
Revenue	167,001	333,556
Power | Fixed price
Disaggregation of Revenue
Revenue	108,383	225,038
Power | Unit price
Disaggregation of Revenue
Revenue	14,532	25,644
Power | Cost reimbursable
Disaggregation of Revenue
Revenue	44,086	82,874
Power | MSA
Disaggregation of Revenue
Revenue	22,672	42,070
Power | Non-MSA
Disaggregation of Revenue
Revenue	144,329	291,486
Pipeline
Disaggregation of Revenue
Revenue	90,605	148,188
Pipeline | Fixed price
Disaggregation of Revenue
Revenue	28,102	40,622
Pipeline | Unit price
Disaggregation of Revenue
Revenue	31,678	50,323
Pipeline | Cost reimbursable
Disaggregation of Revenue
Revenue	30,825	57,243
Pipeline | MSA
Disaggregation of Revenue
Revenue	12,213	19,493
Pipeline | Non-MSA
Disaggregation of Revenue
Revenue	78,392	128,695
Utilities
Disaggregation of Revenue
Revenue	228,852	395,562
Utilities | Fixed price
Disaggregation of Revenue
Revenue	41,299	105,363
Utilities | Unit price
Disaggregation of Revenue
Revenue	127,863	194,614
Utilities | Cost reimbursable
Disaggregation of Revenue
Revenue	59,690	95,585
Utilities | MSA
Disaggregation of Revenue
Revenue	168,336	288,103
Utilities | Non-MSA
Disaggregation of Revenue
Revenue	60,516	107,459
Transmission
Disaggregation of Revenue
Revenue	42,454	42,454
Transmission | Fixed price
Disaggregation of Revenue
Revenue	8,000	8,000
Transmission | Unit price
Disaggregation of Revenue
Revenue	25,457	25,457
Transmission | Cost reimbursable
Disaggregation of Revenue
Revenue	8,997	8,997
Transmission | MSA
Disaggregation of Revenue
Revenue	35,517	35,517
Transmission | Non-MSA
Disaggregation of Revenue
Revenue	6,937	6,937
Civil
Disaggregation of Revenue
Revenue	119,875	233,146
Civil | Fixed price
Disaggregation of Revenue
Revenue	14,780	24,423
Civil | Unit price
Disaggregation of Revenue
Revenue	92,132	179,212
Civil | Cost reimbursable
Disaggregation of Revenue
Revenue	12,963	29,511
Civil | Non-MSA
Disaggregation of Revenue
Revenue	$ 119,875	$ 233,146

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	$ 139,404	$ 170,385
Restricted cash	35,492
Significant Unobservable Inputs (Level 3)
Liabilities
Fair value of the contingent consideration	$ 1,500	$ 716

Fair Value Measurements - Conti

Fair Value Measurements - Contingent Consideration Liability (Details) $ in Thousands	May 26, 2017USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	May 31, 2017USD ($)
Additional information
Number of unobservable inputs | item			2		2
Minimum probability of acquired entity meeting contractual operating performance target (as a percent)					33.00%
Maximum probability of acquired entity meeting contractual operating performance target (as a percent)					100.00%
Contingent consideration credited to non-operating income			$ (771)	$ (13)	$ (783)	$ (13)
FGC
Additional information
Potential contingent consideration	$ 1,500						$ 1,500
Fair value of the contingent consideration	1,200						$ 1,200
Cash payment made	$ 33,000
FGC | Forecast
Additional information
Cash payment made		$ 1,500
Contingent Consideration Liability | Significant Unobservable Inputs (Level 3)
Rollforward of contingent consideration liability level three fair value measurements
Beginning balance		$ 1,500			716
Change in fair value of contingent consideration liability during year					784	13
Ending balance			$ 1,500	$ 1,213	$ 1,500	1,213
Contingent Consideration Liability | Significant Unobservable Inputs (Level 3) | FGC
Rollforward of contingent consideration liability level three fair value measurements
FGC acquisition						$ 1,200

Business Combinations - 2018 Ac

Business Combinations - 2018 Acquisitions (Details) $ in Thousands	Jun. 01, 2018USD ($)segment	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Business combinations
Net cash paid					$ 111,030	$ 66,205
Fair value of net assets acquired
Goodwill		$ 197,071	$ 197,071		$ 197,071		$ 153,374
Number of reportable segments | segment					5
Revenue			648,787		$ 1,152,906
Gross profit			71,419	$ 84,483	115,979	139,536
Acquisition and related costs			7,668	1,096	9,363	1,317
Power
Fair value of net assets acquired
Goodwill		30,492	30,492		30,492		24,391
Revenue			167,001		333,556
Gross profit			20,526	18,132	44,597	33,656
Pipeline
Fair value of net assets acquired
Goodwill		54,370	54,370		54,370		$ 51,521
Revenue			90,605		148,188
Gross profit			10,678	$ 39,366	18,569	$ 67,491
Transmission
Fair value of net assets acquired
Goodwill		34,747	34,747		34,747
Revenue			42,454		42,454
Gross profit			5,721		5,721
Willbros Group, Inc
Business combinations
Total purchase consideration	$ 164,758
Less cash and restricted cash acquired	(53,728)
Net cash paid	111,030
Fair value of net assets acquired
Cash and restricted cash	53,728
Accounts receivable	102,719
Contract assets	30,762
Other current assets	18,767
Property, plant and equipment	33,171
Deferred income taxes	22,466
Other non-current assets	2,261
Accounts payable and accrued liabilities	(117,736)
Contract liabilities	(44,258)
Other non-current liabilities	(35,269)
Total identifiable net assets	121,061
Goodwill	$ 43,697
Number of reportable segments | segment	3
Revenue since acquisition		61,000
Gross profit since acquisition		$ 6,400
Acquisition and related costs			$ 7,700		$ 9,300
Willbros Group, Inc | Power
Fair value of net assets acquired
Goodwill	$ 6,100
Willbros Group, Inc | Pipeline
Fair value of net assets acquired
Goodwill	2,800
Willbros Group, Inc | Transmission
Business combinations
Net cash paid	111,000
Fair value of net assets acquired
Goodwill	34,700
Willbros Group, Inc | Customer relationships
Fair value of net assets acquired
Intangibles assets	52,650
Willbros Group, Inc | Non-compete agreements
Fair value of net assets acquired
Intangibles assets	1,600
Willbros Group, Inc | Tradename
Fair value of net assets acquired
Intangibles assets	$ 200

Business Combinations - 2017 Ac

Business Combinations - 2017 Acquisitions (Details) - USD ($) $ in Thousands	Jun. 16, 2017	May 30, 2017	May 26, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	May 31, 2017
Business combinations
Goodwill						$ 197,071		$ 197,071		$ 153,374
Revenue						648,787		1,152,906
Gross profit						71,419	$ 84,483	115,979	$ 139,536
FGC
Business combinations
Cash payment made			$ 33,000
Potential contingent consideration			$ 1,500								$ 1,500
Contingent earnout period (in years)			1 year
Fair value of the contingent consideration			$ 1,200								$ 1,200
Fixed assets										4,800
Working capital										3,300
Goodwill										17,000
Land and buildings			$ 3,500
The period of time goodwill is deductible for income tax purposes			15 years
Revenue						8,400		16,000
Gross profit						2,800		5,000
Revenue since acquisition				$ 2,200
Gross profit since acquisition				$ 500
FGC | Customer relationships
Business combinations
Intangibles assets										$ 9,100
Engineering Assets
Business combinations
Cash payment made		$ 2,300
Fixed assets		200
Engineering Assets | Customer relationships
Business combinations
Intangibles assets		$ 2,100
Coastal
Business combinations
Cash payment made	$ 27,500
Fixed assets						4,000		4,000
Working capital						4,600		4,600
Goodwill						9,300		9,300
Long-term capital leases						300		300
The period of time goodwill is deductible for income tax purposes	15 years
Revenue						4,200		9,200
Gross profit						600		1,000
Revenue since acquisition					$ 1,000
Gross profit since acquisition					$ 400
Coastal | Customer relationships
Business combinations
Intangibles assets						$ 9,900		$ 9,900

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Pro forma results
Pro forma tax rate used in calculating taxes on income from continuing operations (as a percent)	28.00%	40.00%	28.00%	40.00%
Revenues	$ 774,018	$ 869,039	$ 1,479,118	$ 1,610,081
Income before provision for income taxes	14,641	37,156	15,447	35,426
Net income (loss) attributable to Primoris	$ 9,371	$ 21,896	$ 7,451	$ 20,732
Weighted average common shares outstanding:
Basic (in shares)	51,531	51,437	51,505	51,515
Diluted (in shares)	51,793	51,688	51,770	51,771
Earnings per share:
Basic (in dollars per share)	$ 0.18	$ 0.43	$ 0.14	$ 0.40
Diluted (in dollars per share)	$ 0.18	$ 0.42	$ 0.14	$ 0.40

Goodwill and Intangible Asset49

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill
Goodwill, Beginning Balance	$ 153,374
Goodwill acquired during the year	43,697
Goodwill, Ending Balance	197,071
Power
Goodwill
Goodwill, Beginning Balance	24,391
Goodwill acquired during the year	6,101
Goodwill, Ending Balance	30,492
Pipeline
Goodwill
Goodwill, Beginning Balance	51,521
Goodwill acquired during the year	2,849
Goodwill, Ending Balance	54,370
Utilities
Goodwill
Goodwill, Beginning Balance	37,312
Goodwill, Ending Balance	37,312
Transmission
Goodwill
Goodwill acquired during the year	34,747
Goodwill, Ending Balance	34,747
Civil
Goodwill
Goodwill, Beginning Balance	40,150
Goodwill, Ending Balance	$ 40,150

Goodwill and Intangible Asset50

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Intangible assets
Gross Carrying Amount	$ 137,915		$ 137,915		$ 84,250
Accumulated Amortization	(43,826)		(43,826)		(39,450)
Amortization expense of intangible assets	2,700	$ 1,900	5,161	$ 3,611
Estimated future amortization expense for intangible assets
2018 (remaining six months)	6,280		6,280
2,019	12,145		12,145
2,020	9,394		9,394
2,021	8,155		8,155
2,022	6,989		6,989
Thereafter	51,126		51,126
Total	94,089		$ 94,089		$ 44,800
Tradename
Intangible assets
Weighted Average Life			9 years		9 years
Gross Carrying Amount	31,590		$ 31,590		$ 32,175
Accumulated Amortization	(23,451)		$ (23,451)		$ (22,238)
Customer relationships
Intangible assets
Weighted Average Life			16 years		16 years
Gross Carrying Amount	102,550		$ 102,550		$ 49,900
Accumulated Amortization	(19,239)		$ (19,239)		$ (16,338)
Non-compete agreements
Intangible assets
Weighted Average Life			5 years		5 years
Gross Carrying Amount	3,500		$ 3,500		$ 1,900
Accumulated Amortization	(1,037)		$ (1,037)		$ (820)
Other
Intangible assets
Weighted Average Life			3 years		3 years
Gross Carrying Amount	275		$ 275		$ 275
Accumulated Amortization	$ (99)		$ (99)		$ (54)

Accounts Payable and Accrued 51

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities
Accounts payable	$ 219,180	$ 140,943
Retention amounts included in accounts payable	15,600	13,500
Accrued expenses and other current liabilities
Payroll and related employee benefits	68,942	45,708
Insurance, including self-insurance reserves	28,467	21,391
Corporate income taxes and other taxes	9,728	2,843
Other	23,342	6,085
Total accrued expenses and other current liabilities	$ 130,479	$ 76,027

Credit Arrangements (Details)

Credit Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Credit arrangements
Total debt	$ 420,383	$ 258,917
Unamortized debt issuance costs	(97)	(102)
Total debt, net	420,286	258,815
Less: current portion	(65,376)	(65,464)
Long-term debt, net of current portion	354,910	193,351
Commercial equipment notes
Credit arrangements
Total debt, net	157,227	165,532
Mortgages
Credit arrangements
Total debt, net	11,013	11,242
Revolving credit facility
Credit arrangements
Total debt, net	170,000
Senior secured notes
Credit arrangements
Total debt, net	$ 82,143	$ 82,143

Credit Arrangements - Narrative

Credit Arrangements - Narrative (Details) $ in Millions, $ in Millions

Nov. 09, 2015USD ($)payment

Jun. 03, 2015USD ($)

Jul. 25, 2013USD ($)payment

Dec. 31, 2015USD ($)loanbuilding

Jun. 30, 2018USD ($)

Dec. 31, 2017USD ($)loanbuilding

Jun. 30, 2018CAD ($)

Jun. 30, 2018USD ($)

Sep. 30, 2017USD ($)

Sep. 29, 2017USD ($)

Sep. 28, 2017USD ($)

Dec. 28, 2012USD ($)

Dec. 27, 2012USD ($)

Credit arrangements

Weighted average interest rate (as a percent)

3.00%

3.90%

3.90%

Commercial equipment notes | Minimum

Credit arrangements

Interest rate (as a percent)

1.78%

1.78%

Commercial equipment notes | Maximum

Credit arrangements

Interest rate (as a percent)

4.40%

4.40%

Mortgages

Credit arrangements

Interest rate (as a percent)

5.00%

Number of assets secured | building

3

Number of mortgages assumed | loan

3

Assumed notes

$ 4.2

Secured mortgage notes, maturing on January 1, 2031

Credit arrangements

Interest rate (as a percent)

4.30%

Number of secured mortgage notes payable to a bank | loan

2

Principal amount

$ 8

Number of assets secured | building

2

Senior secured notes

Credit arrangements

Interest rate (as a percent)

4.60%

3.65%

3.65%

Principal amount

$ 25

$ 50

Number of annual principal payments | payment

7

Required principal payment

$ 3.6

$ 7.1

Senior secured notes | Minimum

Credit arrangements

Prepayment to be paid on debt

$ 5

Notes Agreement

Credit arrangements

Interest rate (as a percent)

3.85%

Principal amount

$ 25

$ 25

Number of annual principal payments | payment

7

Required principal payment

$ 3.6

Notes Agreement | Minimum

Credit arrangements

Restrictions on investments, change of control provisions and provisions as a percentage of total assets to be disposed off

20.00%

Notes Agreement | Maximum

Credit arrangements

Principal amount

$ 75

Credit Agreement

Credit arrangements

Maximum borrowing capacity

$ 200

$ 125

Debt issuance costs

$ 0.6

Additional Period to Issue Notes

3 years

Available borrowing capacity

$ 4

Credit Agreement | Federal funds rate

Credit arrangements

Basis spread on variable rate (as a percent)

0.50%

Credit Agreement | Minimum

Credit arrangements

Prepayment to be paid on debt

$ 5

Restrictions on investments, change of control provisions and provisions as a percentage of total assets to be disposed off

20.00%

Credit Agreement | Revolving credit facility

Credit arrangements

Maximum borrowing capacity

200

Maximum borrowing capacity with accordion feature

250

Borrowings outstanding

170

Credit Agreement | Commercial letters of credit

Credit arrangements

Commercial letters of credit outstanding

26

Canadian Credit Facility

Credit arrangements

Available borrowing capacity

$ 7.5

Canadian Credit Facility | Commercial letters of credit

Credit arrangements

Maximum borrowing capacity

$ 8

Commercial letters of credit outstanding

$ 0.5

Annual fee (as a percent)

1.00%

Canadian Credit Facility | Commercial letters of credit | Maximum

Credit arrangements

Term of credit facility

5 years

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Noncontrolling Interests
Number of joint ventures | item	2		2
Tax effect on income recognized	$ 3,705	$ 14,175	$ 3,917	$ 18,692
Revenue	648,787		1,152,906
Net income attributable to noncontrolling interests	2,476	851	6,004	1,672
Cash	139,404		139,404		$ 170,385
Accounts receivable	375,763		375,763		291,589
Contract assets	360,710		360,710		265,902
Accounts payable	219,180		219,180		140,943
Contract liabilities	195,326		195,326		169,377
Carlsbad
Noncontrolling Interests
Revenue	29,437	26,203	71,257	37,003
Net income attributable to noncontrolling interests	2,330	12	5,444	380
Distributions to partners			0
Capital contributions			0
Cash	29,988		29,988		44,308
Accounts receivable					15,343
Contract assets	16,269		16,269
Accounts payable	4,703		4,703		12,352
Contract liabilities	19,124		19,124		42,743
Due to Primoris	6,986		6,986
Wilmington
Noncontrolling Interests
Revenue	437	12,289	1,921	24,599
Net income attributable to noncontrolling interests	146	$ 839	560	$ 1,292
Distributions to partners			0
Capital contributions			0
Cash	8,762		8,762		15,948
Accounts receivable	8		8		598
Accounts payable	154		154		759
Contract liabilities	212		212		1,480
Due to Primoris	405		405		7,428
Carlsbad and Wilmington
Noncontrolling Interests
Cash	38,750		38,750		60,256
Accounts receivable	8		8		15,941
Contract assets	16,269		16,269
Accounts payable	4,857		4,857		13,111
Contract liabilities	$ 19,336		$ 19,336		$ 44,223

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	1 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)loan	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)loan	Feb. 28, 2017item
Mortgages
Related party transactions
Number of mortgages assumed | loan				3
Assumed notes				$ 4.2
SIGI
Related party transactions
Number of leased properties | item					3
Purchase of properties	$ 12.8
Lease payments to related party		$ 0	$ 0.2
SIGI | Mortgages
Related party transactions
Number of mortgages assumed | loan	3
Assumed notes	$ 4.2

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		62 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018
Stock-based compensation
Units granted					259,065
Number of vested units	202,121		202,121		202,121
Number of unvested units	56,944		56,944		56,944
Compensation expense recognized	$ 200	$ 200	$ 400	$ 700
Unrecognized compensation expense	$ 800		$ 800		$ 800
Period to recognize unrecognized compensation expense			1 year 1 month 6 days
Accrued dividend equivalent units	3,974		3,974		3,974
2,019
Stock-based compensation
Number of Units to Vest	51,552		51,552		51,552
2,020
Stock-based compensation
Number of Units to Vest	5,392		5,392		5,392

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Taxes
U.S. federal statutory income tax rate (as a percent)	21.00%	35.00%	35.00%
Effective tax rate on income before provision for income taxes including income attributable to noncontrolling interests (as a percent)	17.50%	37.70%
Effective tax rate on income before provision for income taxes and noncontrolling interests (as a percent)	24.00%	39.00%
Minimum period of statute of limitations of state and foreign jurisdictions	3 years
Maximum period of statute of limitations of state and foreign jurisdictions	5 years

Dividends and Earnings Per Sh58

Dividends and Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	May 04, 2018	Feb. 21, 2018	Nov. 02, 2017	Aug. 02, 2017	May 05, 2017	Feb. 21, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Dividends and Earnings Per Share
Cash dividend declared (in dollars per share)	$ 0.060	$ 0.060	$ 0.060	$ 0.055	$ 0.055	$ 0.055	$ 0.060	$ 0.055	$ 0.120	$ 0.110
Numerator:
Net income attributable to Primoris							$ 11,715	$ 21,545	$ 12,403	$ 29,236
Denominator:
Weighted average shares for computation of basic earnings per share							51,531	51,437	51,505	51,515
Dilutive effect of shares issued to independent directors									3	3
Dilutive effect of restricted stock units							262	251	262	253
Weighted average shares for computation of diluted earnings per share							51,793	51,688	51,770	51,771
Earnings per share attributable to Primoris:
Basic earnings per share (in dollars per share)							$ 0.23	$ 0.42	$ 0.24	$ 0.57
Diluted earnings per share (in dollars per share)							$ 0.23	$ 0.42	$ 0.24	$ 0.56

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended			6 Months Ended	62 Months Ended
	Feb. 28, 2018	Mar. 31, 2017	Feb. 28, 2017	Jun. 30, 2018	Jun. 30, 2018	May 31, 2018
Share repurchase plan
Aggregate purchase price up to which shares can be acquired under share repurchase program			$ 5			$ 5
Number of shares purchased and cancelled under the share repurchase program		216,350		0
Amount paid for shares purchased and cancelled under share repurchase program		$ 5
Amount paid for shares purchased and cancelled under share repurchase program (per share)		$ 23.10
LTR Plan
Common Stock
Shares of common stock issued under the long-term incentive plan	71,757		65,429
Amount received in exchange for shares of common stock under a long term incentive plan	$ 1.5		$ 1.1
Percentage of average market closing prices used in determining number of common stock that could be purchased by participants	75.00%		75.00%
Equity Plan
Common Stock
Shares of common stock issued as a part of quarterly compensation of non-employee members of the Board of Directors	10,062		11,784
Equity Plan | Restricted Stock Units
Common Stock
Granted, Units					259,065
Accrued dividend equivalent units				3,974	3,974

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Leases
Total lease expense		$ 9.9	$ 5.9	$ 16.7	$ 12
Willbros Group, Inc
Leases
Total lease expense	$ 2.6

Commitments and Contingencies61

Commitments and Contingencies - Legal (Details) $ in Millions	Feb. 25, 2015USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2014USD ($)lawsuit	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Accrued Liabilities
Commitments and contingencies
Withdrawal liability recorded		$ 4.3		$ 4.3
JCG | North Texas Tollway Authority v. James Construction Group, LLC
Commitments and contingencies
Liability recorded on litigation	$ 17			$ 0.3
Expected remediation cost on settlement	22.4
Percentage of expected costs second defendant would pay		20.00%		20.00%
Percentage of expected costs Company would pay		80.00%		80.00%
Payment for remediation				$ 0.4
Accrual balance		$ 15.1		15.1
JCG | North Texas Tollway Authority v. James Construction Group, LLC | Maximum
Commitments and contingencies
Agreed payments by second defendant in expected remediation costs toward settlement	$ 5.4
Willbros Group, Inc
Commitments and contingencies
Number of lawsuits | lawsuit			2
Disputed Receivables
Commitments and contingencies
Receivable recorded relating to the project		20.9	$ 32.9	20.9
Receipts related to disputed receivable		12
Disputed Receivables | Customer Liabilities
Commitments and contingencies
Reserve		18.1		18.1
Bonding
Commitments and contingencies
Bid and completion bonds issued and outstanding		$ 568.2		$ 568.2	$ 705.7

Reportable Segments (Details)

Reportable Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment reporting information
Number of reportable segments | segment			5
Revenue	$ 648,787	$ 631,165	$ 1,152,906	$ 1,192,667
% of Total Revenue	100.00%	100.00%	100.00%	100.00%
Gross Profit	$ 71,419	$ 84,483	$ 115,979	$ 139,536
% of Revenue	11.00%	13.40%	10.10%	11.70%
Power
Segment reporting information
Revenue	$ 167,001	$ 157,773	$ 333,556	$ 289,013
% of Total Revenue	25.70%	25.00%	28.90%	24.20%
Gross Profit	$ 20,526	$ 18,132	$ 44,597	$ 33,656
% of Revenue	12.30%	11.50%	13.40%	11.60%
Pipeline
Segment reporting information
Revenue	$ 90,605	$ 134,623	$ 148,188	$ 318,068
% of Total Revenue	14.00%	21.30%	12.90%	26.70%
Gross Profit	$ 10,678	$ 39,366	$ 18,569	$ 67,491
% of Revenue	11.80%	29.20%	12.50%	21.20%
Utilities
Segment reporting information
Revenue	$ 228,852	$ 212,942	$ 395,562	$ 329,922
% of Total Revenue	35.30%	33.80%	34.30%	27.70%
Gross Profit	$ 34,564	$ 32,347	$ 43,615	$ 40,620
% of Revenue	15.10%	15.20%	11.00%	12.30%
Transmission
Segment reporting information
Revenue	$ 42,454		$ 42,454
% of Total Revenue	6.50%	0.00%	3.70%	0.00%
Gross Profit	$ 5,721		$ 5,721
% of Revenue	13.50%	0.00%	13.50%	0.00%
Civil
Segment reporting information
Revenue	$ 119,875	$ 125,827	$ 233,146	$ 255,664
% of Total Revenue	18.50%	19.90%	20.20%	21.40%
Gross Profit	$ (70)	$ (5,362)	$ 3,477	$ (2,231)
% of Revenue	(0.10%)	(4.30%)	1.50%	(0.90%)

Reportable Segments - Revenue a

Reportable Segments - Revenue and Total Assets by Geographic Area (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenues and total assets by geographic area
% of Revenue	100.00%	100.00%	100.00%	100.00%
Non-United States
Revenues and total assets by geographic area
% of total assets			2.20%		2.20%
Non-United States | Maximum
Revenues and total assets by geographic area
% of Revenue			1.40%

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 02, 2018	May 04, 2018	Feb. 21, 2018	Nov. 02, 2017	Aug. 02, 2017	May 05, 2017	Feb. 21, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash Dividend
Cash dividend declared (in dollars per share)		$ 0.060	$ 0.060	$ 0.060	$ 0.055	$ 0.055	$ 0.055	$ 0.060	$ 0.055	$ 0.120	$ 0.110
Subsequent Events
Cash Dividend
Cash dividend declared (in dollars per share)	$ 0.06
Subsequent Events | Credit Agreement
Credit Agreement
Potential increase per the accordion feature	$ 75
Subsequent Events | Term Loan
Credit Agreement
Principal amount	$ 220
Subsequent Events | Term Loan | First Three Years
Credit Agreement
Quarterly principal payments as a percentage of the original principal amount	1.25%
Annual principal payment as a percentage of the original principal amount	5.00%
Number of years payments are to be made	3 years
Subsequent Events | Term Loan | Next Two Years
Credit Agreement
Quarterly principal payments as a percentage of the original principal amount	1.875%
Annual principal payment as a percentage of the original principal amount	7.50%