<SEC-DOCUMENT>0000077543-18-000080.txt : 20181109
<SEC-HEADER>0000077543-18-000080.hdr.sgml : 20181109
<ACCEPTANCE-DATETIME>20180928171723
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000077543-18-000080
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180928

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TUTOR PERINI CORP
		CENTRAL INDEX KEY:			0000077543
		STANDARD INDUSTRIAL CLASSIFICATION:	GENERAL BUILDING CONTRACTORS - NONRESIDENTIAL BUILDINGS [1540]
		IRS NUMBER:				041717070
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		15901 OLDEN STREET
		CITY:			SYLMAR
		STATE:			CA
		ZIP:			91342
		BUSINESS PHONE:		818-362-8391

	MAIL ADDRESS:	
		STREET 1:		15901 OLDEN STREET
		CITY:			SYLMAR
		STATE:			CA
		ZIP:			91342

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TUTOR PERINI Corp
		DATE OF NAME CHANGE:	20090529

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PERINI CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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			Response to SEC Comment Letter - 2018-09-17
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			<font style="display: inline;font-weight:bold;">Tutor Perini Corporation</font>

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			<font style="display: inline;">15901 Olden Street</font>

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			<font style="display: inline;">Sylmar, CA 91342</font>

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			<font style="display: inline;">Tel: 818/362-8391 Fax: 818/367-5379</font>

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			<a name="_GoBack"></a><font style="display: inline;">September </font><font style="display: inline;">28</font><font style="display: inline;">, 2018</font>
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			<font style="display: inline;text-decoration:underline;">VIA EDGAR</font>
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			<font style="display: inline;">Mr. John Cash</font>
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			<font style="display: inline;">Accounting Branch Chief</font>
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			<font style="display: inline;">United States Securities and Exchange Commission</font>
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			<font style="display: inline;">Division of Corporation</font><font style="display: inline;"> Finance</font>
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			<font style="display: inline;">100 F Street, N.E.</font>
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			<font style="display: inline;">Washington, DC 20549</font>
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						&nbsp;</p>
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						<font style="display: inline;">Tutor Perini Corporation</font></p>
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					<p style="margin:0pt 0pt 0pt 5.4pt;font-family:Times New Roman;line-height:115%;font-size: 10pt">
						<font style="display: inline;">Form 10-K for the Fiscal Year Ended December 31, 2017</font></p>
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						<font style="display: inline;">Filed February 27, 2018</font></p>
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						<font style="display: inline;">File No. 001-06314</font></p>
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			<font style="display: inline;">Dear Mr. Cash:</font>
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			<font style="display: inline;">Set forth below are the responses of Tutor Perini Corporation (the &#x201C;Company&#x201D;) to the letter dated September&nbsp;17, 2018 containing the comments of the staff (the &#x201C;Staff&#x201D;) of the Securities and Exchange Commission on the Company&#x2019;s Annual Report on Form 10-K for the year ended December 31, 2017.</font>
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			<font style="display: inline;">For ease of reference, the Staff&#x2019;s comments are reproduced below in bold font and followed by the Company&#x2019;s responses thereto.</font>
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			<font style="display: inline;font-weight:bold;text-decoration:underline;">Form 10-K for the Year Ended December 31, 2017</font>
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			<font style="display: inline;font-weight:bold;text-decoration:underline;">&#xFEFF;</font>
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		<p style="margin:0pt;font-family:Times New Roman;line-height:115%;font-size: 10pt">
			<font style="display: inline;font-weight:bold;text-decoration:underline;">Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations</font>
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			<font style="display: inline;font-weight:bold;text-decoration:underline;">Specialty Contractors Segment, page 23</font>
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			<font style="display: inline;font-weight:bold;text-decoration:underline;">&#xFEFF;</font>
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				<font style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size:10pt;;"> 1.</font>
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			<p style="line-height:100%;font-family:Times New Roman;font-size: 10pt;margin:0pt;">
			<font style="display: inline;font-weight:bold;color:#000000;">Your disclosure states that &#x201C;income from construction operations decreased 50% in 2017 compared to 2016, principally due to the impact of unfavorable project adjustments on certain mechanical projects in New York and California, none of which were individually material.&#x201D; To the extent that the unfavorable project adjustments were material in the aggregate, please revise future filings to also quantify the total of such adjustments. Please refer to Item 303(A)(3)(i) of Regulation S-K for guidance.</font></p></td></tr></table></div>
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			<font style="display: inline;font-weight:bold;color:#000000;">&#xFEFF;</font>
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			<font style="display: inline;font-style:italic;color:#000000;">Response:</font>
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		<p style="margin:0pt 0pt 8pt 18pt;line-height:107.92%;font-family:Times New Roman;font-size: 10pt">
			<font style="display: inline;color:#000000;">In future filings, to the extent that identified unfavorable project adjustments are material in the aggregate, the Company will quantify the total of such adjustments.</font>
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			&nbsp;

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</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

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			<font style="display: inline;">Mr. John Cash</font>

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			<font style="display: inline;">United States Securities and Exchange Commission</font>

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			<font style="display: inline;">Page </font><font style="display: inline;"></font><font style="display: inline;">2</font><font style="display: inline;"></font><font style="display: inline;"> of </font><font style="display: inline;"></font><font style="display: inline;">3</font><font style="display: inline;"></font>

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			<font style="display: inline;font-weight:bold;text-decoration:underline;">Critical Accounting Policies &#x2013; Recoverability of Goodwill, page 28</font>
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			<font style="display: inline;font-weight:bold;text-decoration:underline;">&#xFEFF;</font>
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				<font style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size:10pt;;"> 2.</font>
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		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="line-height:100%;font-family:Times New Roman;font-size: 10pt;margin:0pt;">
			<font style="display: inline;font-weight:bold;color:#000000;">We note that your market capitalization is significantly below your equity value at both December 31, 2017 and June 30, 2018. Please explain to us how you have considered this significant difference in your goodwill impairment analysis as of December 31, 2017. Additionally, please tell us if you have performed an interim impairment analysis subsequent to December 31, 2017, and if so, please tell us the results of such analysis.</font></p></td></tr></table></div>
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			<font style="display: inline;font-style:italic;color:#000000;">Response:</font>
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			<font style="display: inline;color:#000000;">The Company performs its goodwill impairment test as of October 1</font><font style="display: inline;color:#000000;font-size:5pt;vertical-align:super;line-height:106.67%">st</font><font style="display: inline;color:#000000;"> each year and the test is completed during the fourth quarter. </font><font style="display: inline;color:#000000;">As part of the Company&#x2019;s 2017 annual goodwill impairment </font><font style="display: inline;color:#000000;">testing</font><font style="display: inline;color:#000000;">, multiple factors were considered and various analyses were performed in determining whether the difference between the carrying value of equity and market capitalization was indicative of a goodwill impairment.</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">As discussed in ASC 350-20-35-22 and 35-23, market capitalization may not be representative of fair value</font><font style="display: inline;color:#000000;">.</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">F</font><font style="display: inline;color:#000000;">or many publicly traded companies, </font><font style="display: inline;color:#000000;">including</font><font style="display: inline;color:#000000;"> Tutor Perini, a control premium exists because market capitalization reflects trading prices on a minority interest basis.</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">In accordance with the aforementioned guidance, a</font><font style="display: inline;color:#000000;">n entity&#x2019;s fair value </font><font style="display: inline;color:#000000;">reflects</font><font style="display: inline;color:#000000;"> the premium a market participant may pay to gain control of the entity to affect future strategy, introduce synergies or </font><font style="display: inline;color:#000000;">otherwise </font><font style="display: inline;color:#000000;">increase </font><font style="display: inline;color:#000000;">value to a market participant</font><font style="display: inline;color:#000000;">.</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">Therefore, in consideration of the accounting guidance and as part of</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">the Company&#x2019;s annual goodwill impairment</font><font style="display: inline;color:#000000;"> test,</font><font style="display: inline;color:#000000;"> the Company performed a market capitalization reconciliation. The market capitalization reconciliation began by estimating</font><font style="display: inline;color:#000000;"> the </font><font style="display: inline;color:#000000;">fair values of each reporting unit</font><font style="display: inline;color:#000000;">. T</font><font style="display: inline;color:#000000;">he aggregate fair value of the reporting units was </font><font style="display: inline;color:#000000;">then </font><font style="display: inline;color:#000000;">compared to the Company&#x2019;s</font><font style="display: inline;color:#000000;"> market capitalization to calculate the implied control premium. </font><font style="display: inline;color:#000000;">T</font><font style="display: inline;color:#000000;">he Company analyzed whether the implied control premium was consistent with or within a reasonable range of actual premiums paid in industry-specific merger and acquisition transactions observed over a sustained period of time. </font><font style="display: inline;color:#000000;">The Company&#x2019;s analysis indicated that its implied control premium was well within the range of yearly average premiums paid in the marketplace from 2007 to 2016. </font><font style="display: inline;color:#000000;">In 2017, the Company also </font><font style="display: inline;color:#000000;">noted</font><font style="display: inline;color:#000000;"> a premium</font><font style="display: inline;color:#000000;"> paid in excess of </font><font style="display: inline;color:#000000;">the observed</font><font style="display: inline;color:#000000;"> range in</font><font style="display: inline;color:#000000;"> an acquisition made by a company in its peer group.</font>
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			<font style="display: inline;color:#000000;">In addition to </font><font style="display: inline;color:#000000;">the calculation </font><font style="display: inline;color:#000000;">an</font><font style="display: inline;color:#000000;">d</font><font style="display: inline;color:#000000;"> assessment of the implied control premium, the Company considered what it believes to be an inherent marketability discount embedded in the Tutor Perini stock price as a result of</font><font style="display: inline;color:#000000;"> a significant portion</font><font style="display: inline;color:#000000;"> &nbsp;(</font><font style="display: inline;color:#000000;">approximately 18</font><font style="display: inline;color:#000000;">%)</font><font style="display: inline;color:#000000;"> of the Company&#x2019;s </font><font style="display: inline;color:#000000;">total shares outstanding</font><font style="display: inline;color:#000000;"> being owned by one individual, its Chairman and CEO.</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">After considering all insiders, t</font><font style="display: inline;color:#000000;">he Company&#x2019;s </font><font style="display: inline;color:#000000;">public float</font><font style="display: inline;color:#000000;"> is below 80%</font><font style="display: inline;color:#000000;">, &nbsp;</font><font style="display: inline;color:#000000;">which represents</font><font style="display: inline;color:#000000;"> the percentage of</font><font style="display: inline;color:#000000;"> total outstanding</font><font style="display: inline;color:#000000;"> shares of common stock </font><font style="display: inline;color:#000000;">that are </font><font style="display: inline;color:#000000;">freely traded by public investors</font><font style="display: inline;color:#000000;">. This public float percentage</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">is significantly lower than the public float of </font><font style="display: inline;color:#000000;">the Company&#x2019;s</font><font style="display: inline;color:#000000;"> peers</font><font style="display: inline;color:#000000;">,</font><font style="display: inline;color:#000000;"> which</font><font style="display: inline;color:#000000;"> averaged 98%</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">(with a </font><font style="display: inline;color:#000000;">r</font><font style="display: inline;color:#000000;">ange </font><font style="display: inline;color:#000000;">of</font><font style="display: inline;color:#000000;"> &nbsp;9</font><font style="display: inline;color:#000000;">0</font><font style="display: inline;color:#000000;">% to 100%</font><font style="display: inline;color:#000000;">)</font><font style="display: inline;color:#000000;"> for the two-year period ended October 1, 2017</font><font style="display: inline;color:#000000;">. Because </font><font style="display: inline;color:#000000;">investors in the Company&#x2019;s stock are faced with a lower supply of stock available to be traded, the trad</font><font style="display: inline;color:#000000;">ing volume and liquidity of its shares</font><font style="display: inline;color:#000000;"> may be</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">more </font><font style="display: inline;color:#000000;">limited</font><font style="display: inline;color:#000000;"> when compared to its peers,</font><font style="display: inline;color:#000000;"> which </font><font style="display: inline;color:#000000;">further </font><font style="display: inline;color:#000000;">contributes</font><font style="display: inline;color:#000000;"> to the inherent </font><font style="display: inline;color:#000000;">marketability </font><font style="display: inline;color:#000000;">discount in the Company&#x2019;s stock price</font><font style="display: inline;color:#000000;"> as compared to an estimated fair value</font><font style="display: inline;color:#000000;">.</font>
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			<font style="display: inline;">Mr. John Cash</font>

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			<font style="display: inline;">United States Securities and Exchange Commission</font>

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			<font style="display: inline;">Page </font><font style="display: inline;"></font><font style="display: inline;">3</font><font style="display: inline;"></font><font style="display: inline;"> of </font><font style="display: inline;"></font><font style="display: inline;">3</font><font style="display: inline;"></font>

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			<font style="display: inline;color:#000000;">In conducting its goodwill impairment analysis, t</font><font style="display: inline;color:#000000;">he Company considered</font><font style="display: inline;color:#000000;"> various quantitative and qualitative factors as required in the impairment analysis process, including its implied control premium and</font><font style="display: inline;color:#000000;"> the difference between its equity value and market capitalization</font><font style="display: inline;color:#000000;">,</font><font style="display: inline;color:#000000;"> as of </font><font style="display: inline;color:#000000;">October 1, 2017. </font><font style="display: inline;color:#000000;">Based on the Company&#x2019;s calculation</font><font style="display: inline;color:#000000;">&nbsp;</font><font style="display: inline;color:#000000;">and assessment of its implied control premium and </font><font style="display: inline;color:#000000;">qualitative factors, including </font><font style="display: inline;color:#000000;">its inherent marketability discount</font><font style="display: inline;color:#000000;"> described above</font><font style="display: inline;color:#000000;">, the Company concluded that the difference between its market capitalization and equity value did not indi</font><font style="display: inline;color:#000000;">cate an impairment of goodwill </font><font style="display: inline;color:#000000;">when it conducted its 2017 </font><font style="display: inline;color:#000000;">annual goodwill impairment test.</font><font style="display: inline;color:#000000;">&nbsp;</font>
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			<font style="display: inline;">During interim periods</font><font style="display: inline;">,</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">including those </font><font style="display: inline;">subsequent to the Company&#x2019;s October 1, 2017 annual test</font><font style="display: inline;"> date</font><font style="display: inline;">, in accordance with ASC 350-20</font><font style="display: inline;">-35-30</font><font style="display: inline;">, the Company </font><font style="display: inline;">performed</font><font style="display: inline;"> assessment</font><font style="display: inline;">s</font><font style="display: inline;"> to determine whether there were any triggering events or changes in circumstances that would warrant an interim ASC 350 Step 1 impairment analysis. Specifically, </font><font style="display: inline;">the Company performed a comprehensive evaluation</font><font style="display: inline;">, for each assessment,</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">of </font><font style="display: inline;">relevant events and circumstances since </font><font style="display: inline;">the annual </font><font style="display: inline;">goodwill impairment </font><font style="display: inline;">test, including</font><font style="display: inline;"> but not limited to</font><font style="display: inline;">,</font><font style="display: inline;"> an examination of</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">macroeconomic conditions, industry and market</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">conditions</font><font style="display: inline;">, &nbsp;</font><font style="display: inline;">cost factors, </font><font style="display: inline;">overall financial performance</font><font style="display: inline;"> by each reporting unit</font><font style="display: inline;">,</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">other relevant </font><font style="display: inline;">entity-specific events</font><font style="display: inline;">, &nbsp;</font><font style="display: inline;">and trends in the stock prices of the Company and its peers.</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">In its evaluation</font><font style="display: inline;">s</font><font style="display: inline;">, t</font><font style="display: inline;">he Company </font><font style="display: inline;">considered</font><font style="display: inline;"> each reporting unit&#x2019;s current financial performance </font><font style="display: inline;">and</font><font style="display: inline;"> forecast</font><font style="display: inline;"> as well as </font><font style="display: inline;">the</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">perform</font><font style="display: inline;">ance against previous forecasts.</font><font style="display: inline;"> Additionally,</font><font style="display: inline;"> since the Company&#x2019;s October 1, 2017 annual test date,</font><font style="display: inline;"> the Company </font><font style="display: inline;">has continued </font><font style="display: inline;">to observe </font><font style="display: inline;">significant </font><font style="display: inline;">opportunities in </font><font style="display: inline;">a robust</font><font style="display: inline;"> marketplace which have led to </font><font style="display: inline;">sizable</font><font style="display: inline;"> awards and notable growth in backlog at each of the Company&#x2019;s reporting units</font><font style="display: inline;">. In considering the </font><font style="display: inline;">totality of the </font><font style="display: inline;">aforementioned factors together with the significant </font><font style="display: inline;">excess of fair value over carrying value</font><font style="display: inline;"> calculated on all of the reporting units in the previous annual impairment test, t</font><font style="display: inline;">he Company </font><font style="display: inline;">concluded it was not more likely than not that the fair value of any reporting unit had been reduced below its carrying value</font><font style="display: inline;"> for any period subsequent to its 2017 annual </font><font style="display: inline;">impairment test</font><font style="display: inline;">. As a result, the Company concluded that </font><font style="display: inline;">an</font><font style="display: inline;"> interim Step 1 impairment test was </font><font style="display: inline;">not </font><font style="display: inline;">required</font><font style="display: inline;">.</font>
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			<font style="display: inline;color:#000000;">Please feel free to contact me at 818/362-8391 if you have any questions.</font>
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			<font style="display: inline;color:#000000;">Sincerely,</font>
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			<font style="display: inline;color:#000000;">/s/ Gary G. Smalley</font>
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			<font style="display: inline;color:#000000;">Gary G. Smalley</font>
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			<font style="display: inline;color:#000000;">Executive Vice President and Chief Financial Officer</font>
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