Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2014 |
Other Comprehensive Income (Loss) | ' |
Other Comprehensive Income (Loss) | ' |
(4) Other Comprehensive Income (Loss) |
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The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended June 30, 2014 and 2013 are as follows: |
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| | Three Months Ended | | Three Months Ended | | |
| | June 30, 2014 | | June 30, 2013 | | |
| | | | Tax | | | | | | Tax | | | | |
| | Before-Tax | | Benefit | | Net-of-Tax | | Before-Tax | | Benefit | | Net-of-Tax | | |
(in thousands) | | Amount | | (Expense) | | Amount | | Amount | | (Expense) | | Amount | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | 21,359 | | $ | (7,921 | ) | $ | 13,438 | | $ | (66,421 | ) | $ | 25,118 | | $ | (41,303 | ) | |
Ownership share of equity method investees’ other comprehensive income | | 19,176 | | (6,833 | ) | 12,343 | | 8,272 | | (2,395 | ) | 5,877 | | |
Defined benefit pension and postretirement plan adjustments | | 2,415 | | (906 | ) | 1,509 | | 2,535 | | (951 | ) | 1,584 | | |
Unrealized gain (loss) on derivative contracts | | 1,426 | | (492 | ) | 934 | | (3,191 | ) | 1,197 | | (1,994 | ) | |
Unrealized gain (loss) on debt securities | | 369 | | (138 | ) | 231 | | (1,530 | ) | 574 | | (956 | ) | |
Total other comprehensive income (loss) | | 44,745 | | (16,290 | ) | 28,455 | | (60,335 | ) | 23,543 | | (36,792 | ) | |
Less: Other comprehensive income attributable to noncontrolling interests | | 365 | | — | | 365 | | 560 | | — | | 560 | | |
Other comprehensive income (loss) attributable to Fluor Corporation | | $ | 44,380 | | $ | (16,290 | ) | $ | 28,090 | | $ | (60,895 | ) | $ | 23,543 | | $ | (37,352 | ) | |
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The tax effects of the components of OCI for the six months ended June 30, 2014 and 2013 are as follows: |
|
| | Six Months Ended | | Six Months Ended | | |
| | June 30, 2014 | | June 30, 2013 | | |
| | | | Tax | | | | | | Tax | | | | |
| | Before-Tax | | Benefit | | Net-of-Tax | | Before-Tax | | Benefit | | Net-of-Tax | | |
(in thousands) | | Amount | | (Expense) | | Amount | | Amount | | (Expense) | | Amount | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | 3,559 | | $ | (2,850 | ) | $ | 709 | | $ | (90,827 | ) | $ | 34,080 | | $ | (56,747 | ) | |
Ownership share of equity method investees’ other comprehensive income | | 18,232 | | (7,887 | ) | 10,345 | | 8,353 | | (2,262 | ) | 6,091 | | |
Defined benefit pension and postretirement plan adjustments | | 5,051 | | (1,894 | ) | 3,157 | | 14,120 | | (5,295 | ) | 8,825 | | |
Unrealized gain (loss) on derivative contracts | | 781 | | (276 | ) | 505 | | (2,947 | ) | 1,105 | | (1,842 | ) | |
Unrealized gain (loss) on debt securities | | 340 | | (127 | ) | 213 | | (1,755 | ) | 658 | | (1,097 | ) | |
Total other comprehensive income (loss) | | 27,963 | | (13,034 | ) | 14,929 | | (73,056 | ) | 28,286 | | (44,770 | ) | |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | | (3,974 | ) | — | | (3,974 | ) | 53 | | — | | 53 | | |
Other comprehensive income (loss) attributable to Fluor Corporation | | $ | 31,937 | | $ | (13,034 | ) | $ | 18,903 | | $ | (73,109 | ) | $ | 28,286 | | $ | (44,823 | ) | |
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The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended June 30, 2014 are as follows: |
|
(in thousands) | | Foreign | | Ownership Share of | | Defined Benefit | | Unrealized | | Unrealized | | Accumulated | | |
Currency | Equity Method | Pension and | Gain (Loss) on | Gain on | Other | |
Translation | Investees’ Other | Postretirement Plans | Derivative | Available-for- | Comprehensive | |
| Comprehensive | | Contracts | Sale Securities | Income (Loss), Net | |
| Income (Loss) | | | | | |
Attributable to Fluor Corporation: | | | | | | | | | | | | | | |
Balance as of March 31, 2014 | | $ | (8,615 | ) | $ | (34,272 | ) | $ | (256,649 | ) | $ | (8,010 | ) | $ | 158 | | $ | (307,388 | ) | |
Other comprehensive income (loss) before reclassifications | | 13,202 | | 12,343 | | (548 | ) | 817 | | 228 | | 26,042 | | |
Amounts reclassified from AOCI | | — | | — | | 2,057 | | (12 | ) | 3 | | 2,048 | | |
Net other comprehensive income | | 13,202 | | 12,343 | | 1,509 | | 805 | | 231 | | 28,090 | | |
Balance as of June 30, 2014 | | $ | 4,587 | | $ | (21,929 | ) | $ | (255,140 | ) | $ | (7,205 | ) | $ | 389 | | $ | (279,298 | ) | |
| | | | | | | | | | | | | | |
Attributable to Noncontrolling Interests: | | | | | | | | | | | | | | |
Balance as of March 31, 2014 | | $ | 3,607 | | $ | — | | $ | — | | $ | 6 | | $ | — | | $ | 3,613 | | |
Other comprehensive income before reclassifications | | 236 | | — | | — | | 123 | | — | | 359 | | |
Amounts reclassified from AOCI | | — | | — | | — | | 6 | | — | | 6 | | |
Net other comprehensive income | | 236 | | — | | — | | 129 | | — | | 365 | | |
Balance as of June 30, 2014 | | $ | 3,843 | | $ | — | | $ | — | | $ | 135 | | $ | — | | $ | 3,978 | | |
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The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2014 are as follows: |
|
(in thousands) | | Foreign | | Ownership Share of | | Defined Benefit | | Unrealized | | Unrealized | | Accumulated | |
Currency | Equity Method | Pension and | Gain (Loss) on | Gain on | Other |
Translation | Investees’ Other | Postretirement Plans | Derivative | Available-for- | Comprehensive |
| Comprehensive | | Contracts | Sale Securities | Income (Loss), Net |
| Income (Loss) | | | | |
Attributable to Fluor Corporation: | | | | | | | | | | | | | |
Balance as of December 31, 2013 | | $ | (164 | ) | $ | (32,274 | ) | $ | (258,297 | ) | $ | (7,642 | ) | $ | 176 | | $ | (298,201 | ) |
Other comprehensive income (loss) before reclassifications | | 4,751 | | 10,345 | | (951 | ) | 273 | | 202 | | 14,620 | |
Amounts reclassified from AOCI | | — | | — | | 4,108 | | 164 | | 11 | | 4,283 | |
Net other comprehensive income | | 4,751 | | 10,345 | | 3,157 | | 437 | | 213 | | 18,903 | |
Balance as of June 30, 2014 | | $ | 4,587 | | $ | (21,929 | ) | $ | (255,140 | ) | $ | (7,205 | ) | $ | 389 | | $ | (279,298 | ) |
| | | | | | | | | | | | | |
Attributable to Noncontrolling Interests: | | | | | | | | | | | | | |
Balance as of December 31, 2013 | | $ | 7,885 | | $ | — | | $ | — | | $ | 67 | | $ | — | | $ | 7,952 | |
Other comprehensive income (loss) before reclassifications | | (4,042 | ) | — | | — | | 59 | | — | | (3,983 | ) |
Amounts reclassified from AOCI | | — | | — | | — | | 9 | | — | | 9 | |
Net other comprehensive income (loss) | | (4,042 | ) | — | | — | | 68 | | — | | (3,974 | ) |
Balance as of June 30, 2014 | | $ | 3,843 | | $ | — | | $ | — | | $ | 135 | | $ | — | | $ | 3,978 | |
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The changes in AOCI balances by component (after-tax) for the three months ended June 30, 2013 are as follows: |
|
(in thousands) | | Foreign | | Ownership Share of | | Defined Benefit | | Unrealized | | Unrealized Gain | | Accumulated Other | | |
Currency | Equity Method | Pension and | Loss on | (Loss) on Available- | Comprehensive | |
Translation | Investees’ Other | Postretirement Plans | Derivative | for-Sale Securities | Income (Loss), Net | |
| Comprehensive | | Contracts | | | |
| Income (Loss) | | | | | |
Attributable to Fluor Corporation: | | | | | | | | | | | | | | |
Balance as of March 31, 2013 | | $ | 30,961 | | $ | (42,805 | ) | $ | (245,483 | ) | $ | (8,807 | ) | $ | 813 | | $ | (265,321 | ) | |
Other comprehensive income (loss) before reclassifications | | (41,863 | ) | 5,877 | | (423 | ) | (2,525 | ) | (895 | ) | (39,829 | ) | |
Amounts reclassified from AOCI | | — | | — | | 2,007 | | 531 | | (61 | ) | 2,477 | | |
Net other comprehensive income (loss) | | (41,863 | ) | 5,877 | | 1,584 | | (1,994 | ) | (956 | ) | (37,352 | ) | |
Balance as of June 30, 2013 | | $ | (10,902 | ) | $ | (36,928 | ) | $ | (243,899 | ) | $ | (10,801 | ) | $ | (143 | ) | $ | (302,673 | ) | |
| | | | | | | | | | | | | | |
Attributable to Noncontrolling Interest: | | | | | | | | | | | | | | |
Balance as of March 31, 2013 | | $ | 8,217 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8,217 | | |
Other comprehensive income before reclassifications | | 560 | | — | | — | | — | | — | | 560 | | |
Amounts reclassified from AOCI | | — | | — | | — | | — | | — | | — | | |
Net other comprehensive income | | 560 | | — | | — | | — | | — | | 560 | | |
Balance as of June 30, 2013 | | $ | 8,777 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8,777 | | |
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The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2013 are as follows: |
|
(in thousands) | | Foreign | | Ownership Share of | | Defined Benefit | | Unrealized | | Unrealized Gain | | Accumulated Other | | |
Currency | Equity Method | Pension and | Gain (Loss) on | (Loss) on Available- | Comprehensive | |
Translation | Investees’ Other | Postretirement Plans | Derivative | for-Sale Securities | Income (Loss), Net | |
| Comprehensive | | Contracts | | | |
| Income (Loss) | | | | | |
Attributable to Fluor Corporation: | | | | | | | | | | | | | | |
Balance as of December 31, 2012 | | $ | 45,899 | | $ | (43,019 | ) | $ | (252,724 | ) | $ | (8,960 | ) | $ | 954 | | $ | (257,850 | ) | |
Other comprehensive income (loss) before reclassifications | | (56,801 | ) | 6,091 | | 4,796 | | (2,440 | ) | (1,012 | ) | (49,366 | ) | |
Amounts reclassified from AOCI | | — | | — | | 4,029 | | 599 | | (85 | ) | 4,543 | | |
Net other comprehensive income (loss) | | (56,801 | ) | 6,091 | | 8,825 | | (1,841 | ) | (1,097 | ) | (44,823 | ) | |
Balance as of June 30, 2013 | | $ | (10,902 | ) | $ | (36,928 | ) | $ | (243,899 | ) | $ | (10,801 | ) | $ | (143 | ) | $ | (302,673 | ) | |
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Attributable to Noncontrolling Interest: | | | | | | | | | | | | | | |
Balance as of December 31, 2012 | | $ | 8,723 | | $ | — | | $ | — | | $ | 1 | | $ | — | | $ | 8,724 | | |
Other comprehensive income before reclassifications | | 54 | | — | | — | | — | | — | | 54 | | |
Amounts reclassified from AOCI | | — | | — | | — | | (1 | ) | — | | (1 | ) | |
Net other comprehensive income (loss) | | 54 | | — | | — | | (1 | ) | — | | 53 | | |
Balance as of June 30, 2013 | | $ | 8,777 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8,777 | | |
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The significant items reclassified out of AOCI and the corresponding location in and impact in the Condensed Consolidated Statement of Earnings are as follows: |
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| | Location in | | Three Months Ended | | Six Months Ended | | | | | | |
| | Condensed Consolidated | | June 30, | | June 30, | | | | | | |
(in thousands) | | Statement of Earnings | | 2014 | | 2013 | | 2014 | | 2013 | | | | | | |
Component of AOCI: | | | | | | | | | | | | | | | | |
Defined benefit pension plan adjustments | | Various accounts(1) | | $ | (3,291 | ) | $ | (3,210 | ) | $ | (6,572 | ) | $ | (6,446 | ) | | | | | |
Income tax benefit | | Income tax expense | | 1,234 | | 1,203 | | 2,464 | | 2,417 | | | | | | |
Net of tax | | | | $ | (2,057 | ) | $ | (2,007 | ) | $ | (4,108 | ) | $ | (4,029 | ) | | | | | |
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Unrealized gain (loss) on derivative contracts: | | | | | | | | | | | | | | | | |
Commodity contracts and foreign currency contracts | | Total cost of revenue | | $ | 420 | | $ | (437 | ) | $ | 549 | | $ | (125 | ) | | | | | |
Interest rate contracts | | Interest expense | | (420 | ) | (420 | ) | (839 | ) | (839 | ) | | | | | |
Income tax benefit (net) | | Income tax expense | | 6 | | 326 | | 117 | | 366 | | | | | | |
Net of tax | | | | 6 | | (531 | ) | (173 | ) | (598 | ) | | | | | |
Less: Noncontrolling interests | | Net earnings attributable to noncontrolling interests | | (6 | ) | — | | (9 | ) | 1 | | | | | | |
Net of tax and noncontrolling interests | | | | $ | 12 | | $ | (531 | ) | $ | (164 | ) | $ | (599 | ) | | | | | |
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Unrealized gain (loss) on available-for-sale securities | | Corporate general and administrative expense | | $ | (4 | ) | $ | 98 | | $ | (17 | ) | $ | 136 | | | | | | |
Income tax benefit (expense) | | Income tax expense | | 1 | | (37 | ) | 6 | | (51 | ) | | | | | |
Net of tax | | | | $ | (3 | ) | $ | 61 | | $ | (11 | ) | $ | 85 | | | | | | |
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(1) Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense. |