Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following fair value hierarchy table presents the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:


	As of September 30, 2025								As of December 31, 2024
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents(a)	$	695,732	$	—	$	—	$	695,732	$	455,084	$	—	$	—	$	455,084
Restricted cash(a)	62,352		—		—		62,352		9,104		—		—		9,104
Restricted investments(b)	—		173,435		—		173,435		—		139,986		—		139,986
Investments in lieu of retention(c)	35,153		140,332		—		175,485		38,359		106,765		—		145,124
Total	$	793,237	$	313,767	$	—	$	1,107,004	$	502,547	$	246,751	$	—	$	749,298

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(a)Includes money market funds and short-term investments with maturity dates of three months or less when acquired.

(b)Restricted investments, as of September 30, 2025 and December 31, 2024, consist of available-for-sale (“AFS”) debt securities, which are valued based on pricing models determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.

(c)Investments in lieu of retention are included in retention receivable as of September 30, 2025 and December 31, 2024, and are composed of money market funds of $35.2 million and $38.4 million, respectively, and AFS debt securities of $140.3 million and $106.8 million, respectively. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of AFS debt securities are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.

Schedule of Available-for-Sale Securities Reconciliation

Investments in AFS debt securities consisted of the following as of September 30, 2025 and December 31, 2024:


	As of September 30, 2025								As of December 31, 2024
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Restricted investments:
Corporate debt securities	$	153,219	$	1,909	$	(450)	$	154,678	$	118,421	$	603	$	(1,242)	$	117,782
U.S. government agency securities	12,038		18		(356)		11,700		16,323		35		(663)		15,695
Municipal bonds	7,432		24		(583)		6,873		7,159		—		(831)		6,328
Corporate certificates of deposit	198		—		(14)		184		200		—		(19)		181
Total restricted investments	172,887		1,951		(1,403)		173,435		142,103		638		(2,755)		139,986

Investments in lieu of retention:
Corporate debt securities	131,638		817		(32)		132,423		106,014		224		(491)		105,747
Municipal bonds	7,897		195		(183)		7,909		830		188		—		1,018
Total investments in lieu of retention	139,535		1,012		(215)		140,332		106,844		412		(491)		106,765

Total AFS debt securities	$	312,422	$	2,963	$	(1,618)	$	313,767	$	248,947	$	1,050	$	(3,246)	$	246,751

Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual AFS debt securities have been in a continuous unrealized loss position as of September 30, 2025 and December 31, 2024:


	As of September 30, 2025
	Less than 12 Months				12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Restricted investments:
Corporate debt securities	$	17,881	$	(76)	$	22,344	$	(374)	$	40,225	$	(450)
U.S. government agency securities	289		(1)		5,236		(355)		5,525		(356)
Municipal bonds	261		(4)		4,986		(579)		5,247		(583)
Corporate certificates of deposit	—		—		185		(14)		185		(14)
Total restricted investments	18,431		(81)		32,751		(1,322)		51,182		(1,403)

Investments in lieu of retention:
Corporate debt securities	5,459		(32)		—		—		5,459		(32)
Municipal bonds	6,880		(183)		—		—		6,880		(183)
Total investments in lieu of retention	12,339		(215)		—		—		12,339		(215)

Total AFS debt securities	$	30,770	$	(296)	$	32,751	$	(1,322)	$	63,521	$	(1,618)


	As of December 31, 2024
	Less than 12 Months				12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Restricted investments:
Corporate debt securities	$	23,985	$	(159)	$	30,384	$	(1,083)	$	54,369	$	(1,242)
U.S. government agency securities	4,371		(43)		10,699		(620)		15,070		(663)
Municipal bonds	704		(13)		5,560		(818)		6,264		(831)
Corporate certificates of deposit	—		—		181		(19)		181		(19)
Total restricted investments	29,060		(215)		46,824		(2,540)		75,884		(2,755)

Investments in lieu of retention:
Corporate debt securities	24,470		(149)		37,755		(342)		62,225		(491)
Total investments in lieu of retention	24,470		(149)		37,755		(342)		62,225		(491)

Total AFS debt securities	$	53,530	$	(364)	$	84,579	$	(2,882)	$	138,109	$	(3,246)

Schedule of Investments Classified by Contractual Maturity Date

The amortized cost and fair value of AFS debt securities by contractual maturity as of September 30, 2025 are summarized in the table below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.



(in thousands)	Amortized Cost		Fair Value

Due within one year	$	62,604	$	62,446
Due after one year through five years	238,129		240,124
Due after five years	11,689		11,197
Total	$	312,422	$	313,767

TUTOR PERINI CORP 10-Q