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Share-Based Compensation | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Share-Based Compensation | Share-Based CompensationOn April 10, 2018, the Company adopted the Tutor Perini Corporation Omnibus Incentive Plan (the “Current Plan”), which was approved by the Company’s shareholders on May 23, 2018. The Current Plan effected the merger of the Company’s Amended and Restated Tutor Perini Corporation Long-Term Incentive Plan, as amended and restated on October 2, 2014 (the “2014 Plan”) and the Tutor Perini Corporation Incentive Compensation Plan adopted on April 3, 2017 (the “2017 Plan,” together with the 2014 Plan and the Current Plan, the “Plans”). The Current Plan provides for various types of share-based grants, including restricted and unrestricted stock units and stock options. Restricted and unrestricted stock units give the holder the right to exchange their stock units for shares of the Company’s common stock on a one-for-one basis. Stock options give the holder the right to purchase shares of the Company’s common stock subsequent to the vesting date at a defined exercise price. A stock option exercise price must be equal to or greater than the fair value of the Company’s common stock on the date of the award. Restricted stock units and stock options are usually subject to certain service and performance conditions as well as other restrictions. The term for stock options is limited to 10 years from the award date. As of December 31, 2020, there were 1,539,172 shares of common stock available for grant under the Company’s Current Plan. As of December 31, 2020, the Plans had an aggregate of 3,310,265 of restricted stock units and stock options from outstanding, historical awards that either have not vested or have vested but have not been exercised. Any awards that were granted under the 2014 Plan or the 2017 Plan that are forfeited, cancelled or held back for net settlement will become available to be issued under the Current Plan. The terms of the Plans give the Company the right to settle the vesting of share-based grants in cash or shares. Many of the awards issued under the Plans contain separate tranches, each for a separate performance period and each with a performance target to be established subsequent to the award date; accordingly, the tranches are accounted for under ASC 718, Stock Compensation (“ASC 718”) as separate grants, with the grant date being the date the performance targets for a given tranche are established and communicated to the grantee. Similarly, for these awards, compliance with the requirements of the Plans is also based on the number of units granted in a given year, as determined by ASC 718, rather than the number of units awarded in a given year. The following table summarizes restricted stock unit and stock option activity:
| Restricted Stock Units |  | Stock Options
| Number |  | Weighted- Average Grant Date Fair Value Per Share |  | Number |  | Weighted- Average Exercise/ (Strike) Price Per Share
Outstanding as of December 31, 2017 | 1,397,984 |  |  | $ | 30.11 |  |  | 2,554,034 |  |  | $ | 20.45 |
Granted | 699,000 |  |  | 24.21 |  |  | 664,000 |  |  | 23.20 |
Expired or cancelled | (240,289) |  |  | 32.76 |  |  | (274,990) |  |  | 22.82 |
Vested/exercised | (387,695) |  |  | 28.67 |  |  | — |  |  | — |
Outstanding as of December 31, 2018 | 1,469,000 |  |  | $ | 27.27 |  |  | 2,943,044 |  |  | $ | 20.89 |
Granted | 530,000 |  |  | 20.23 |  |  | 220,000 |  |  | 19.66 |
Expired or cancelled | (104,029) |  |  | 28.98 |  |  | (884,029) |  |  | 21.03 |
Vested/exercised | (179,971) |  |  | 25.39 |  |  | — |  |  | — |
Outstanding as of December 31, 2019 | 1,715,000 |  |  | $ | 25.19 |  |  | 2,279,015 |  |  | $ | 20.62 |
Granted | 245,000 |  |  | 20.67 |  |  | 165,000 |  |  | 19.24 |
Expired or cancelled | (403,750) |  |  | 25.52 |  |  | (168,750) |  |  | 25.87 |
Vested/exercised | (521,250) |  |  | 29.44 |  |  | — |  |  | — |
Outstanding as of December 31, 2020 | 1,035,000 |  |  | $ | 21.85 |  |  | 2,275,265 |  |  | $ | 20.13 |
Included in the above table are certain restricted stock unit grants which are classified as liabilities in accordance with ASC 718 because they contain a guaranteed minimum payout. These awards may be performance-based or time-based and may be settled in shares of the Company's stock, cash or a combination thereof, at the Company's discretion. As of December 31, 2020 and 2019, there were 270,000 and 390,000 restricted stock units with guaranteed minimum payouts outstanding, with weighted-average grant date fair values per share of $27.80 and $27.89, respectively. The Company recognized liabilities for these awards totaling approximately $2.4 million and $2.9 million as of December 31, 2020 and 2019, respectively. During 2020, the Company paid approximately $0.3 million to settle these awards, and there were no cash settlements in 2019 or 2018. The following table summarizes unrestricted stock units, which are generally issued to the non-employee members of the Company’s Board of Directors as part of their annual retainer fees:
| Unrestricted Stock Units
Year | Number |  | Weighted-Average Grant Date Fair Value Per Share
2018 | 115,420 |  |  | $ | 21.26 |
2019 | 98,591 |  |  | 15.72 |
2020 | 194,177 |  |  | 8.60 |
Unrestricted stock units vest immediately upon grant and are converted to shares of the Company’s stock on a one-for-one basis. The fair value of unrestricted stock units issued during 2020, 2019 and 2018 was approximately $1.7 million, $1.5 million and $2.5 million, respectively. The fair value of restricted stock units that vested during 2020, 2019 and 2018 was approximately $4.1 million, $3.1 million and $7.9 million, respectively. As of December 31, 2020, the balance of unamortized restricted stock and stock option expense was $9.0 million and $2.3 million, respectively, which is expected to be recognized over weighted-average periods of 2.0 years for restricted stock units and 2.0 years for stock options. The 2,275,265 outstanding stock options as of December 31, 2020 had an intrinsic value of $0.9 million and a weighted-average remaining contractual life of 4.6 years. Of those outstanding options: (1) 1,715,265 were exercisable with an intrinsic value of $0.9 million, a weighted-average exercise price of $20.43 per share and a weighted-average remaining contractual life of 3.5 years; (2) 560,000 have not vested and have no intrinsic value, a weighted-average exercise price of $19.21 per share and a weighted-average remaining contractual life of 8.1 years. The 560,000 unvested stock options include 328,125 with time-based or market-based vesting conditions that are expected to vest, as well as 231,875 with market-based vesting conditions that are not expected to vest. The fair value of restricted and unrestricted stock units is based on the closing price of the Company’s common stock on the New York Stock Exchange on the date of the grant and the fair value of stock options is based on the Black-Scholes model. Certain performance-based awards contain market condition components tied to the Company’s total shareholder return in relation to its peer companies, as calculated over a multi-year performance period (“TSR awards”). The fair value of the TSR awards is determined using a Monte Carlo simulation model. Significant assumptions used in this simulation model include the Company’s expected volatility, a risk-free rate based on U.S. Treasury yield curve rates with maturities consistent with the performance period, and the volatilities for each of the Company’s peers. The ultimate payout on TSR awards is determined at the end of the performance period and will vary based on actual total shareholder return performance results. Compensation expense related to the TSR awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The fair value on the grant date and the significant assumptions used in the Black-Scholes option-pricing model are as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Total stock options granted | 165,000 |  |  | 220,000 |  |  | 664,000 |
Weighted-average grant date fair value | $ | 7.67 |  |  | $ | 7.59 |  |  | $ | 11.09 |
Weighted-average assumptions: |  |  |  |  |
Risk-free rate | 1.2 | % |  | 2.1 | % |  | 2.6 | %
Expected life of options(a) | 6.3 years |  | 6.1 years |  | 5.8 years
Expected volatility(b) | 60.7 | % |  | 39.4 | % |  | 42.2 | %
Expected quarterly dividends | $ | — |  |  | $ | — |  |  | $ | — |
_____________________________________________________________________________________________________________ (a)Calculated using the simplified method due to the terms of the stock options and the limited pool of grantees. (b)Calculated using historical volatility of the Company’s common stock over periods commensurate with the expected life of the option. For the respective years ended December 31, 2020, 2019 and 2018, the Company recognized, as part of general and administrative expenses, costs for share-based payment arrangements for employees of $10.2 million, $17.5 million and $21.1 million. Additionally for the same periods, the Company recognized as part of general and administrative expenses costs for share-based awards to non-employee directors of $1.6 million, $1.6 million and $1.7 million, respectively. The aggregate tax benefits for these awards were approximately $1.3 million, $2.9 million and $3.8 million, for the respective periods.

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