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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 11-K

 


 

(Mark One)

 

x  ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the year ended December 31, 2012

 

o  TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                  to               

 

Commission file number 001-33961

 


 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

 

HILL INTERNATIONAL, INC. 401(k)

RETIREMENT SAVINGS PLAN

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

Hill International, Inc.

303 Lippincott Centre

Marlton, NJ 08053

 

 

 



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REQUIRED INFORMATION

 

The following financial statements of Hill International, Inc. 401(k) Retirement Savings Plan are being filed herewith:

 

Description

 

Page No.

 

 

 

Report of Independent Registered Public Accounting Firm

 

3

 

 

 

Financial Statements:

 

 

 

 

 

Statement of Net Assets Available for Benefits

 

4

 

 

 

Statement of Changes in Net Assets Available for Benefits

 

5

 

 

 

Notes to Financial Statements

 

6

 

 

 

Schedule H, Line 4i — Schedule of Assets (Held at End of Year)

 

14

 

 

 

Signature

 

15

 

 

 

Index to Exhibits

 

16

 



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Report of Independent Registered Public Accounting Firm

 

To the Participants and Administrator of

Hill International, Inc. 401(k) Retirement Savings Plan

 

Report on the Financial Statements

 

We have audited the accompanying financial statements of Hill International, Inc. 401(k) Retirement Savings Plan (the Plan), which comprise the statements of net assets available for benefits as of December 31, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012, and the related notes to the financial statements.

 

Management’s Responsibility for the Financial Statements

 

Plan management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatements, whether due to fraud or error.

 

Auditor’s Responsibility

 

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.  These procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error.  In making those risk assessments, the auditor considers internal control relevant to the Plan’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the plan’s internal control. Accordingly, we express no such opinion.  An audit includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2012 and 2011, and the changes in its net assets available for benefits for the year ended December 31, 2012, in accordance with accounting principles generally accepted in the United States of America.

 

Report on Supplemental Information

 

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole.  The supplemental schedule of assets (held at end of year) as of December 31, 2012 is presented for purposes of additional analysis and is not a required part of the financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  Such information is the responsibility of the Plan’s management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.  The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.  In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole.

 

JENNIFER L ANDERSON, LLC

 

 

/s/ JENNIFER L ANDERSON, LLC

Moorestown, New Jersey

June 4, 2013

 

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HILL INTERNATIONAL, INC. 401(k) RETIREMENT SAVINGS PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2012 and 2011

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

Interest bearing cash

 

$

1,597,074

 

$

1,442,823

 

Mutual funds

 

35,809,878

 

31,330,483

 

Common stock

 

3,173,171

 

4,441,456

 

Guaranteed investment contract

 

9,470,068

 

7,879,904

 

Total investments

 

50,050,191

 

45,094,666

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Notes receivable from participants

 

1,445,170

 

1,061,399

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

51,495,361

 

$

46,156,065

 

 

 

 

 

 

 

NET ASSETS REFLECTING INVESTMENTS AT FAIR VALUE

 

$

51,495,361

 

$

46,156,065

 

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

 

 

(1,008

)

NET ASSETS AVAILABLE FOR BENEFITS

 

$

51,495,361

 

$

46,155,057

 

 

See accompanying notes to financial statements.

 

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HILL INTERNATIONAL, INC. 401(k) RETIREMENT SAVINGS PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year Ended December 31, 2012

 

ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:

 

 

 

Investment income:

 

 

 

Net appreciation in fair value of investments

 

$

1,805,917

 

Interest

 

246,468

 

Dividends and capital gains

 

1,117,605

 

 

 

3,169,990

 

 

 

 

 

Interest income on notes receivable from participants

 

38,651

 

 

 

 

 

Contributions:

 

 

 

Employer

 

670,849

 

Participants

 

5,655,389

 

Other (including rollovers)

 

404,132

 

TOTAL CONTRIBUTIONS

 

6,730,370

 

 

 

 

 

TOTAL ADDITIONS

 

9,939,011

 

 

 

 

 

DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:

 

 

 

Benefits paid to participants

 

4,598,707

 

TOTAL DEDUCTIONS

 

4,598,707

 

 

 

 

 

NET INCREASE

 

5,340,304

 

 

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

 

 

 

Beginning of year

 

46,155,057

 

 

 

 

 

END OF YEAR

 

$

51,495,361

 

 

See accompanying notes to financial statements.

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

NOTE 1 — SUMMARY OF ACCOUNTING POLICIES

 

Basis of Accounting

 

The accompanying financial statements of Hill International, Inc. 401(k) Retirement Savings Plan (the “Plan”) are prepared using the accrual basis of accounting.

 

Estimates

 

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures.  Actual results could differ from these estimates.

 

Investment Valuation and Income Recognition

 

Investments — Investments, except the guaranteed investment contract (“GIC”), are presented at fair value, based on the quoted market prices of the underlying securities within each fund at December 31, 2012 and 2011. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GIC is fully benefit-responsive and is reported at fair value and adjusted to contract value. Contract value represents the accumulated contributions plus accrued net earnings, minus distributions. Fair value of the GIC is estimated using discounted cash flows.

 

GIC’s held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.  The Statement of Net Assets Available for Benefits presents the fair value of the GIC as well as the adjustment from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.

 

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plans gains and losses on investments bought and sold as well as held during the year.

 

Notes receivable from participants

 

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan.

 

Administrative Expenses

 

The majority of administrative expenses of the Plan are paid by Hill International, Inc. (the “Sponsor”).

 

Payment of Benefits

 

Benefit payments are recorded upon distribution.

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

NOTE 2 — DESCRIPTION OF PLAN

 

The following brief description of the Plan is provided for general information purposes only.  Participants should refer to the plan document for a more complete description of the Plan’s provisions.

 

General

 

The Plan is a defined contribution plan covering all domestic employees of the Sponsor who have thirty days of service and are age twenty-one or older, excluding bona fide residents of Puerto Rico, as defined in Internal Revenue Code Section 937, who do not have to pay U.S. income taxes on their Puerto Rico source income. The Plan is voluntary. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). After meeting eligibility requirements, an employee can begin participating on the next entry date. Participation commences on the first day of the month coinciding with or next following the date on which the employee meets the requirements.

 

Contributions

 

Each participant, if eligible, may contribute pre-tax annual compensation up to a maximum of $22,500 per plan year, which includes both pre-tax and “catch-up” deferrals. The limit may change each year to correspond with the Internal Revenue Code.  Effective September 1, 2011, the Plan was amended to limit the maximum employee contribution to 75% of annual compensation. Through April 30, 2012, the Sponsor contributed fifty cents for every dollar contributed up to a maximum of six percent of gross wages.  Half of the Sponsor’s contribution was used for open market purchases of the Sponsor’s common stock. Effective May 1, 2012, the Sponsor suspended its contributions to the Plan. Effective May 7, 2012, the Plan was amended to permit the Sponsor to make a discretionary matching contribution equal to a uniform percentage or dollar amount of the participants’ elective contributions; each year, the Sponsor will determine the formula for the discretionary matching contribution. Contributions to the Plan by highly compensated employees are limited to certain employee deferral percentage relationships. Plan assets are maintained at Prudential Financial, Inc. and are invested at the election of the participants.

 

Participant Accounts

 

The plan includes an automatic deferral feature. The amount that is automatically contributed to eligible employees’ accounts is equal to 3% of compensation unless the employee selects an alternative deferral amount or elects not to defer under the plan. Each participant’s account is credited with the participant’s contribution and allocations of (a) the Sponsor’s contribution and (b) Plan earnings, and charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

 

Vesting

 

Participants are immediately 100 percent vested in both employee contributions and employer matching contributions.

 

Notes Receivable from Participants

 

Subject to the Administrator’s approval, a participant may elect to borrow from the plan an amount, which may not

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

exceed $50,000 or 50% of the participant’s account balance, whichever is less.  These interest-bearing loans are secured by the participant’s account and are repaid through payroll deductions. Loans may not exceed five years unless they are used to buy a participant’s principal residence. Interest is charged based on the prime rate of interest as reflected by local banks, as set forth in the plan agreement, and is fixed for the term of the loan.

 

Payment of Benefits

 

Withdrawals under the Plan are allowed for termination of employment, hardship (as defined by the Plan), retirement, or attainment of age 59 ½. Distribution may also be made to the participant in the event of physical or mental disability or to a named beneficiary in the event of the participant’s death. Distributions are made in a lump sum payment or by installment payments.

 

Administrative Expenses

 

The majority of administrative expenses of the Plan are paid by the Sponsor.

 

Plan Termination

 

Although it has not expressed any intent to do so, the Sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the plan subject to the provisions of ERISA. In the event of Plan termination, the participants’ accounts would be distributed in accordance with Section 401(k)(10) of the Internal Revenue Code (“IRC”).

 

NOTE 3 — GUARANTEED INVESTMENT CONTRACT WITH INSURANCE COMPANY

 

The Plan has a fully benefit-responsive investment contract with the Prudential Insurance Company of America (“Prudential”). Prudential maintains the contributions in a general account, which is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The contract is included in the financial statements at fair value and then adjusted to contract value as reported to the Plan by Prudential. Contract value represents contributions made under the contract, plus earnings, minus participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. Prudential may not terminate the contract at any amount less than contract value.

 

Prudential is contractually obligated to pay the principal and specified interest rate that is guaranteed to the Plan. Interest is credited on contract balances using an old money/new money or “bucketed” approach. Under this methodology, different interest crediting rates are applied to contributions based on the calendar quarter in which the contributions were made. An interest crediting rate (“New Money Rate”) is established at the beginning of each calendar quarter. The New Money Rate is applied to all contributions made to the product during that quarter. Four New Money Rates and corresponding buckets are established each year. These New Money Rates are guaranteed through December 31 of the following calendar year.  Upon the expiration of the New Money Rate guarantees, the rates for each of these buckets are reset and are then known as “Old Money Rates”. Old Money Rates for each bucket are reset on an annual basis thereafter. The minimum crediting rate under the contract is 3.00%. Withdrawals and transfers out are made on a pro-rata basis from all buckets.

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

 

 

2012

 

2011

 

Average yields:

 

 

 

 

 

Based on annualized earnings (1)

 

3.00

%

3.00

%

Based on interest rate credited to participants (2)

 

3.00

%

3.00

%

 


(1)         Computed by dividing the earnings credited to the Plan on the last day of the Plan year by the end of the Plan year Fair Value and then annualizing the results.

 

(2)         Computed by dividing the earnings credited to the participants on the last day of the Plan year by the end of the Plan year Fair Value and then annualizing the results.

 

NOTE 4 — FAIR VALUE MEASUREMENTS

 

FASB ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quote prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

 

Level 1 Fair Value Measurements

 

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

 

Level 2 Fair Value Measurements

 

Inputs to the valuation methodology include:

 

·                  Quoted prices for similar assets or liabilities in active markets;

·                  Quoted prices for identical or similar assets or liabilities in inactive markets;

·                  Inputs other than quoted prices that are observable for the asset or liability;

·                  Inputs derived principally from or corroborated by observable market data by correlation or other means.

 

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3 Fair Value Measurements

 

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2011.

 

Common stock: Valued at the closing price reported on the active market on which the individual securities are traded.

 

Mutual funds: Valued at the net asset value (NAV) of shares held by the Plan at year-end.

 

Guaranteed investment contract: Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer.

 

The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

The following tables present by level, within the fair value hierarchy, the Plan’s assets at fair value:

 

 

 

Assets at Fair Value at

 

 

 

December 31, 2012

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Plan assets:

 

 

 

 

 

 

 

 

 

Interest bearing cash

 

$

1,597,074

 

$

 

 

$

 

 

$

1,597,074

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Global Stock - Blend

 

528,228

 

 

 

 

 

 528,228

 

Global Stock - Growth

 

4,428,661

 

 

 

 

 

 4,428,661

 

Balanced Value

 

4,402,564

 

 

 

 

 

 4,402,564

 

Large Cap - Growth

 

8,594,359

 

 

 

 

 

 8,594,359

 

Large Cap - Value

 

2,299,619

 

 

 

 

 

 2,299,619

 

Large Cap - Blend

 

6,382,146

 

 

 

 

 

 6,382,146

 

Mid Cap - Growth

 

2,214,305

 

 

 

 

 

 2,214,305

 

Small Cap - Value

 

3,641,626

 

 

 

 

 

 3,641,626

 

Fixed Income - Intermediate Bond

 

3,318,370

 

 

 

 

 

 3,318,370

 

Common stock

 

3,173,171

 

 

 

 

 

 3,173,171

 

Guaranteed Investment Contract

 

 

 

 

 

 9,470,068 

 

 9,470,068

 

Total assets at fair value

 

$

40,580,123

 

$

 

$

9,470,068 

 

$

50,050,191

 

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

 

 

Assets at Fair Value at

 

 

 

December 31, 2011

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Plan assets:

 

 

 

 

 

 

 

 

 

Interest bearing cash

 

$

1,442,823

 

$

 

 

$

 

 

$

1,442,823

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Global Stock - Blend

 

405,374

 

 

 

 

 

405,374

 

Global Stock - Growth

 

4,454,498

 

 

 

 

 

4,454,498

 

Balanced Value

 

3,586,394

 

 

 

 

 

3,586,394

 

Large Cap - Growth

 

7,755,389

 

 

 

 

 

7,755,389

 

Large Cap - Value

 

2,215,561

 

 

 

 

 

2,215,561

 

Large Cap - Blend

 

5,546,813

 

 

 

 

 

5,546,813

 

Mid Cap - Growth

 

1,977,991

 

 

 

 

 

1,977,991

 

Small Cap - Value

 

3,151,665

 

 

 

 

 

3,151,665

 

Fixed Income - Intermediate Bond

 

2,236,798

 

 

 

 

 

2,236,798

 

Common stock

 

4,441,456

 

 

 

 

 

4,441,456

 

Guaranteed Investment Contract

 

 

 

 

 

7,879,904

 

7,879,904

 

Total assets at fair value

 

$

37,214,762

 

$

 

$

7,879,904

 

$

45,094,666

 

 

The table below sets forth a summary of the changes in the fair value of the Plan’s level 3 assets, the Guaranteed Interest Account, for the year ended December 31, 2012:

 

Balance, beginning of year

 

$

7,897,904

 

Realized gains (losses)

 

 

Unrealized gains (losses)

 

 

Purchases, sales, issuances and settlements, net

 

1,572,164

 

Balance, end of year

 

$

9,470,068

 

 

NOTE 5 — INVESTMENTS

 

During 2012, the Plan’s investments (including investments bought, sold, exchanged, as well as held during the year) appreciated (depreciated) in fair value as follows:

 

 

 

Net Realized and Unrealized Appreciation/

 

 

 

(Depreciation) in Fair Value of Investments

 

Mutual Funds

 

$

3,084,721

 

Common Stock

 

(1,278,804

)

Total

 

$

1,805,917

 

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

Investments that represent 5% or more of fair value of the Plan’s net assets are as follows:

 

 

 

December 31,

 

 

 

2012

 

2011

 

Prudential Guaranteed Interest Account

 

$

9,470,068

 

$

7,879,904

 

Oppenheimer Global Opportunities Fund A

 

4,428,661

 

4,454,498

 

MFS Funds Total Return Fund A

 

4,402,564

 

3,586,394

 

Wells Fargo Advantage Growth Class A

 

3,810,120

 

*

 

Invesco Small Cap Value A

 

3,641,626

 

3,151,665

 

PIMCO Total Return Fund A

 

3,318,370

 

*

 

Hill International, Inc. Common Stock

 

3,173,171

 

4,441,456

 

Prudential Stock Index Fund Z

 

3,153,096

 

2,527,221

 

JP Morgan Large Cap Growth Fund A

 

3,100,478

 

*

 

John Hancock Large Cap Equity Fund

 

*

 

3,347,612

 

American Funds Growth Fund of America A

 

*

 

2,825,105

 

 


* amount does not exceed 5% of the Plan’s net assets at the specified date.

 

NOTE 6 — RELATED PARTIES AND PARTIES IN INTEREST TRANSACTIONS

 

Certain Plan investments are shares of mutual funds managed by Prudential. Prudential is the trustee as defined by the Plan. These transactions qualify as exempt party-in-interest transactions.

 

As of December 31, 2012, the Plan owned 866,987 shares of the Sponsor’s common stock with a fair value of $3,173,171 and, as of December 31, 2011, the Plan owned 864,096 shares of the Sponsor’s common stock with a fair value of $4,441,456.  The Sponsor does not pay dividends on its common stock.

 

NOTE 7 — TAX STATUS

 

The plan received a favorable determination letter from the Internal Revenue Service dated March 31, 2008, stating that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC).  Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.  Therefore, no provision for income taxes has been included in the Plan’s financial statements.

 

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain tax position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan Administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2012, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2009.

 

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HILL INTERNATIONAL, INC 401(k) RETIREMENT SAVINGS PLAN

Notes to Financial Statements

December 31, 2012

 

NOTE 8 — RISKS AND UNCERTAINTIES

 

The Plan invests in various investment funds.  Investments in general are exposed to various risks, such as interest rate, credit, and overall volatility risk.  Due to the level of risk associated with certain investments, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the statement of net assets available for benefits.

 

Note 9 — SUBSEQUENT EVENT

 

Effective January 1, 2013, the Sponsor elected to make matching contributions to the Plan. For 2013, the Sponsor will contribute fifty cents for every dollar contributed by the participants up to a maximum of two percent of gross wages.

 

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Hill International, Inc. 401(k) Retirement Savings Plan

Year Ended December 31, 2012

EIN # 20-0953973

Plan # 003

 

Schedule H, Line 4i, SCHEDULE OF ASSETS (HELD AT END OF YEAR)

 

a.
Parties

 

b. Identity of issuer,

 

c. Description

 

 

 

 

 

in
interest

 

borrower, lessor,
or similar party

 

of
investment

 

d.
Cost

 

e. Current
value

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Cash

 

 

 

 

 

 

 

 

 

HighMark

 

HighMark US Government Money Market Fund

 

**

 

$

1,597,074

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

 

 

 

 

 

*

 

Prudential Mutual Funds

 

Prudential Stock Index Fund Z

 

**

 

3,153,096

 

*

 

Prudential Mutual Funds

 

Prudential Jennison Equity Income Fund A

 

**

 

2,299,619

 

*

 

Prudential Mutual Funds

 

Prudential Jennison Mid Cap Growth Fund A

 

**

 

2,214,305

 

 

 

PIMCO

 

PIMCO Total Return Fund A

 

**

 

3,318,370

 

 

 

American Funds

 

Amcap Fund

 

**

 

1,683,761

 

 

 

Invesco Ltd.

 

Invesco Small Cap Value Fund A

 

**

 

3,641,626

 

 

 

Invesco Ltd.

 

Invesco Charter Fund A

 

**

 

1,482,337

 

 

 

John Hancock

 

John Hancock Global Opportunities Fund A

 

**

 

528,228

 

 

 

JP Morgan Chase

 

JP Morgan Large Cap Growth Fund A

 

**

 

3,100,478

 

 

 

Lord, Abbet & Co. LLC

 

Lord Abbet Equity Fund A

 

**

 

1,746,713

 

 

 

MFS Funds

 

MFS Total Return Fund A

 

**

 

4,402,564

 

 

 

Oppenheimer Funds

 

Oppenheimer Global Opportunities Fund A

 

**

 

4,428,661

 

 

 

Wells Fargo & Co.

 

Wells Fargo Adv Growth Class A

 

**

 

3,810,120

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

*

 

Hill International, Inc.

 

Common stock

 

**

 

3,173,171

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Held in Insurance Company

 

 

 

 

 

 

 

*

 

The Prudential Insurance Co of America

 

Guaranteed Interest Account

 

**

 

9,470,068

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes Receivable from Participants

 

 

 

 

 

 

 

 

 

Notes receivable from participants, with interest rates of 3.25% to 9.00% maturing through 2022

 

 

1,445,170

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments per Schedule H, Line 1f

 

 

 

$

51,495,361

 

 


*                 Indicates party-in-interest to the Plan

**                 Not required for participant-directed investments

 

14



Table of Contents

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

HILL INTERNATIONAL, INC. 401(K) RETIREMENT SAVINGS PLAN

 

 

 

Dated: June 4, 2013

By:

/s/ Catherine H. Emma

 

 

Printed Name:

Catherine H. Emma

 

 

Title:

Plan Administrator

 

15



Table of Contents

 

Hill International, Inc. 401(k) Retirement Savings Plan

Annual Report on Form 11-K

For the Year Ended December 31, 2012

 

INDEX TO EXHIBITS

 

Exhibit No.

 

Description

 

 

 

23

 

Consent of Jennifer L. Anderson LLC

 

16