Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'FLUOR CORP | ' |
Entity Central Index Key | '0001124198 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 156,220,578 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS | ' | ' | ' | ' |
TOTAL REVENUE | $5,440,081 | $6,684,216 | $16,076,381 | $21,060,168 |
TOTAL COST OF REVENUE | 5,059,960 | 6,329,685 | 15,038,616 | 20,030,907 |
OTHER (INCOME) AND EXPENSES | ' | ' | ' | ' |
Corporate general and administrative expense | 35,131 | 46,070 | 129,615 | 110,590 |
Interest expense | 5,979 | 6,435 | 20,321 | 19,838 |
Interest income | -4,373 | -2,716 | -12,312 | -10,948 |
Total cost and expenses | 5,096,697 | 6,379,474 | 15,176,240 | 20,150,387 |
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | 343,384 | 304,742 | 900,141 | 909,781 |
INCOME TAX EXPENSE | 114,635 | 87,391 | 282,919 | 271,834 |
EARNINGS FROM CONTINUING OPERATIONS | 228,749 | 217,351 | 617,222 | 637,947 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES | -113,859 | ' | -199,042 | ' |
NET EARNINGS | 114,890 | 217,351 | 418,180 | 637,947 |
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 45,388 | 44,305 | 121,814 | 137,031 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | 69,502 | 173,046 | 296,366 | 500,916 |
AMOUNTS ATTRIBUTABLE TO FLUOR CORPORATION | ' | ' | ' | ' |
Earnings from continuing operations | 183,361 | 173,046 | 495,408 | 500,916 |
Loss from discontinued operations, net of taxes | -113,859 | ' | -199,042 | ' |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | $69,502 | $173,046 | $296,366 | $500,916 |
BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO FLUOR CORPORATION | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $1.17 | $1.06 | $3.12 | $3.08 |
Loss from discontinued operations, net of taxes (in dollars per share) | ($0.73) | ' | ($1.25) | ' |
Net earnings (in dollars per share) | $0.44 | $1.06 | $1.87 | $3.08 |
DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO FLUOR CORPORATION | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $1.15 | $1.05 | $3.08 | $3.05 |
Loss from discontinued operations, net of taxes (in dollars per share) | ($0.71) | ' | ($1.24) | ' |
Net earnings (in dollars per share) | $0.44 | $1.05 | $1.84 | $3.05 |
SHARES USED TO CALCULATE EARNINGS PER SHARE | ' | ' | ' | ' |
BASIC (in shares) | 157,332 | 162,940 | 158,670 | 162,715 |
DILUTED (in shares) | 159,456 | 164,845 | 160,756 | 164,324 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $0.21 | $0.16 | $0.63 | $0.48 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
NET EARNINGS | $114,890 | $217,351 | $418,180 | $637,947 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ' | ' | ' | ' |
Foreign currency translation adjustment | -66,381 | 26,192 | -65,672 | -30,555 |
Ownership share of equity method investees' other comprehensive income (loss) | -1,127 | 2,262 | 9,218 | 8,353 |
Defined benefit pension and postretirement plan adjustments | 11,339 | -4,045 | 14,496 | 4,780 |
Unrealized gain (loss) on derivative contracts | -2,109 | 1,015 | -1,604 | -827 |
Unrealized gain (loss) on debt securities | -345 | 365 | -132 | -732 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | -58,623 | 25,789 | -43,694 | -18,981 |
COMPREHENSIVE INCOME | 56,267 | 243,140 | 374,486 | 618,966 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 44,555 | 43,902 | 117,007 | 136,681 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO FLUOR CORPORATION | $11,712 | $199,238 | $257,479 | $482,285 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents ($410,859 and $488,426 related to variable interest entities ("VIEs")) | $1,900,197 | $2,283,582 |
Marketable securities, current ($64,145 and $64,084 related to VIEs) | 167,323 | 186,023 |
Accounts and notes receivable, net ($211,036 and $220,705 related to VIEs) | 1,150,276 | 1,274,024 |
Contract work in progress ($221,665 and $238,895 related to VIEs) | 1,743,707 | 1,740,821 |
Deferred taxes | 360,265 | 245,796 |
Other current assets | 337,712 | 273,437 |
Total current assets | 5,659,480 | 6,003,683 |
Marketable securities, noncurrent | 334,008 | 275,402 |
Property, plant and equipment ("PP&E") ((net of accumulated depreciation of $ 1,116,255 and $1,106,925) (net PP&E of $69,203 and $87,774 related to VIEs)) | 970,605 | 966,953 |
Investments and goodwill | 304,341 | 312,293 |
Deferred taxes | 97,407 | 139,773 |
Deferred compensation trusts | 396,723 | 388,408 |
Other | 286,141 | 237,338 |
TOTAL ASSETS | 8,048,705 | 8,323,850 |
CURRENT LIABILITIES | ' | ' |
Trade accounts payable ($234,339 and $311,892 related to VIEs) | 1,457,605 | 1,641,109 |
Convertible senior notes and other borrowings | 29,822 | 29,839 |
Advance billings on contracts ($185,577 and $327,820 related to VIEs) | 565,136 | 743,524 |
Accrued salaries, wages and benefits ($54,728 and $64,064 related to VIEs) | 667,705 | 753,452 |
Other accrued liabilities ($31,769 and $25,517 related to VIEs) | 583,009 | 239,236 |
Total current liabilities | 3,303,277 | 3,407,160 |
LONG-TERM DEBT DUE AFTER ONE YEAR | 496,935 | 496,604 |
NONCURRENT LIABILITIES | 538,815 | 539,263 |
CONTINGENCIES AND COMMITMENTS | ' | ' |
Capital stock | ' | ' |
Preferred - authorized 20,000,000 shares ($0.01 par value); none issued | ' | ' |
Common - authorized 375,000,000 shares ($0.01 par value); issued and outstanding - 156,527,652 and 161,287,818 shares in 2014 and 2013, respectively | 1,565 | 1,613 |
Additional paid-in capital | ' | 12,911 |
Accumulated other comprehensive loss | -337,088 | -298,201 |
Retained earnings | 3,894,404 | 4,040,664 |
Total shareholders' equity | 3,558,881 | 3,756,987 |
Noncontrolling interests | 150,797 | 123,836 |
Total equity | 3,709,678 | 3,880,823 |
TOTAL LIABILITIES AND EQUITY | $8,048,705 | $8,323,850 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEET | ' | ' |
Property, plant and equipment, accumulated depreciation | $1,116,255 | $1,106,925 |
Shareholders' equity | ' | ' |
Preferred stock, authorized shares (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, authorized shares (in shares) | 375,000,000 | 375,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, issued shares (in shares) | 156,527,652 | 161,287,818 |
Common stock, outstanding shares (in shares) | 156,527,652 | 161,287,818 |
CURRENT ASSETS, VIEs | ' | ' |
Cash and cash equivalents | 1,900,197 | 2,283,582 |
Marketable securities, current | 167,323 | 186,023 |
Accounts and notes receivable | 1,150,276 | 1,274,024 |
Contract work in progress | 1,743,707 | 1,740,821 |
Property, plant and equipment, net | 970,605 | 966,953 |
CURRENT LIABILITIES, VIEs | ' | ' |
Trade accounts payable | 1,457,605 | 1,641,109 |
Advance billings on contracts related | 565,136 | 743,524 |
Accrued salaries, wages and benefits | 667,705 | 753,452 |
Other accrued liabilities | 583,009 | 239,236 |
Consolidated variable interest entities | ' | ' |
CURRENT ASSETS, VIEs | ' | ' |
Cash and cash equivalents | 410,859 | 488,426 |
Marketable securities, current | 64,145 | 64,084 |
Accounts and notes receivable | 211,036 | 220,705 |
Contract work in progress | 221,665 | 238,895 |
Property, plant and equipment, net | 69,203 | 87,774 |
CURRENT LIABILITIES, VIEs | ' | ' |
Trade accounts payable | 234,339 | 311,892 |
Advance billings on contracts related | 185,577 | 327,820 |
Accrued salaries, wages and benefits | 54,728 | 64,064 |
Other accrued liabilities | $31,769 | $25,517 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net earnings | $418,180 | $637,947 |
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities: | ' | ' |
Loss from discontinued operations, net of taxes | 199,042 | ' |
Depreciation of fixed assets | 143,825 | 162,264 |
Amortization of intangibles | 669 | 576 |
Loss (gain) on sales of equity method investments | 2,158 | -2,370 |
(Earnings) loss from equity method investments, net of distributions | -4,093 | 11,409 |
Gain on sale of property, plant and equipment | -23,270 | -10,107 |
Restricted stock and stock option amortization | 36,256 | 31,861 |
Deferred compensation trust | -8,315 | -31,718 |
Deferred compensation obligation | 8,266 | 34,588 |
Deferred taxes | 58,074 | -40,980 |
Excess tax benefit from stock-based plans | -3,965 | -4,501 |
Net retirement plan (contributions) accrual | -35,910 | 2,436 |
Changes in operating assets and liabilities | -374,107 | -89,817 |
Cash outflows from discontinued operations | -4,680 | ' |
Other items | -4,781 | 955 |
Cash provided by operating activities | 407,349 | 702,543 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchases of marketable securities | -275,907 | -348,949 |
Proceeds from the sales and maturities of marketable securities | 233,506 | 361,084 |
Capital expenditures | -222,561 | -181,059 |
Proceeds from disposal of property, plant and equipment | 72,468 | 43,737 |
Proceeds from sales of equity method investments | 44,000 | 3,005 |
Investments in partnerships and joint ventures | -34,185 | -37,540 |
Consolidation of a variable interest entity | ' | 24,675 |
Acquisitions | ' | -7,674 |
Other items | 1,959 | 8,988 |
Cash utilized by investing activities | -180,720 | -133,733 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Repurchase of common stock | -410,637 | ' |
Dividends paid | -92,975 | -52,457 |
Distributions paid to noncontrolling interests | -75,510 | -79,549 |
Capital contributions by noncontrolling interests | 2,210 | 1,549 |
Taxes paid on vested restricted stock | -11,426 | -11,404 |
Stock options exercised | 23,961 | 21,613 |
Excess tax benefit from stock-based plans | 3,965 | 4,501 |
Other items | -1,788 | 6,467 |
Cash utilized by financing activities | -562,274 | -135,715 |
Effect of exchange rate changes on cash | -47,740 | -50,066 |
Increase (decrease) in cash and cash equivalents | -383,385 | 383,029 |
Cash and cash equivalents at beginning of period | 2,283,582 | 2,154,541 |
Cash and cash equivalents at end of period | 1,900,197 | 2,537,570 |
5.625% Municipal Bonds | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Repayment of debt | ' | -17,795 |
Convertible debt and notes payable | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Repayment of debt | ($74) | ($8,640) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) (5.625% Municipal Bonds) | Dec. 31, 2013 |
5.625% Municipal Bonds | ' |
Debt instruments | ' |
Debt interest rate (as a percent) | 5.63% |
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2014 | |
Principles of Consolidation | ' |
Principles of Consolidation | ' |
(1) Principles of Consolidation | |
The Condensed Consolidated Financial Statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States and, therefore, should be read in conjunction with the company’s December 31, 2013 Annual Report on Form 10-K. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and nine months ended September 30, 2014 may not necessarily be indicative of results that can be expected for the full year. | |
The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly its consolidated financial position as of September 30, 2014 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Certain amounts in 2013 have been reclassified to conform to the 2014 presentation. Management has evaluated all material events occurring subsequent to the date of the financial statements up to the filing date of this Form 10-Q. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
(2) Recent Accounting Pronouncements | |
New accounting pronouncements implemented by the company during the nine months ended September 30, 2014 or requiring implementation in future periods are discussed below or elsewhere in the notes, where appropriate. | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016 and subsequent interim reporting periods. The adoption of ASU 2014-15 will not have any impact on the company’s financial position, results of operations or cash flows. | |
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period.” This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015. Management does not expect the adoption of ASU 2014-12 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In June 2014, the FASB issued ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures,” which makes limited amendments to the guidance in Accounting Standards Codification (“ASC”) 860, “Transfers and Servicing,” on accounting for certain repurchase agreements (“repos”). The ASU (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements); (2) eliminates accounting guidance on linked repurchase financing transactions; and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions and repurchase-to-maturity transactions) accounted for as secured borrowings. This ASU is effective for interim and annual reporting periods beginning after December 15, 2014. Management does not expect the adoption of ASU 2014-11 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and require separate accounting, how variable consideration (which may include change orders and claims) is recognized, whether revenue should be recognized at a point in time or over time and ensuring the time value of money is considered in the transaction price. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016 and can be applied either retrospectively to each prior period presented or as a cumulative-effect adjustment as of the date of adoption. Management is currently evaluating the impact of adopting ASU 2014-09 on the company’s financial position, results of operations and cash flows. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued operations criteria. This ASU requires discontinued operations treatment for disposals of a component or group of components of an entity that represent a strategic shift that has or will have a major impact on an entity’s operations or financial results. ASU 2014-08 also expands the scope of ASC 205-20, “Discontinued Operations,” to disposals of equity method investments and acquired businesses held for sale. This ASU is effective prospectively for all disposals or classifications as held for sale that occur in interim and annual reporting periods beginning after December 15, 2014. Management does not expect the adoption of ASU 2014-08 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In January 2014, the FASB issued ASU 2014-05, “Service Concession Arrangements.” This ASU clarifies that, unless certain circumstances are met, operating entities should not account for certain concession arrangements with public-sector entities as leases and should not recognize the related infrastructure as property, plant and equipment. This ASU is effective for interim and annual reporting periods beginning after December 15, 2014. Management does not expect the adoption of ASU 2014-05 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In the first quarter of 2014, the company adopted ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This ASU clarifies the financial statement presentation of unrecognized tax benefits in certain circumstances. The adoption of ASU 2013-11 did not have an impact on the company’s financial position, results of operations or cash flows. | |
In the first quarter of 2014, the company adopted ASU 2013-07, “Liquidation Basis of Accounting,” which clarifies when an entity should apply the liquidation basis of accounting. In addition, ASU 2013-07 provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The adoption of ASU 2013-07 did not have an impact on the company’s financial position, results of operations or cash flows. | |
In the first quarter of 2014, the company adopted ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” The objective of ASU 2013-05 is to resolve a practice diversity in circumstances where reporting entities release cumulative translation adjustments into net income when a parent either sells a part or all of its investment in a foreign entity, or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The adoption of ASU 2013-05 did not have an impact on the company’s financial position, results of operations or cash flows. | |
In the first quarter of 2014, the company adopted ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which addresses the recognition, measurement and disclosure of certain obligations including debt arrangements, other contractual obligations and settled litigation and judicial rulings. The adoption of ASU 2013-04 did not have an impact on the company’s financial position, results of operations or cash flows. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2014 | |
Discontinued Operations | ' |
Discontinued Operations | ' |
(3) Discontinued Operations | |
During the three and nine months ended September 30, 2014, the company recorded an after-tax loss from discontinued operations of $114 million and $199 million, respectively, in connection with the reassessment of estimated loss contingencies related to the lead business of St. Joe Minerals Corporation and The Doe Run Company in Herculaneum, Missouri. The related tax effects associated with these losses were $64 million and $111 million for the three and nine months ended September 30, 2014, respectively. See further discussion of this matter in Note 14. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
(4) Other Comprehensive Income (Loss) | ||||||||||||||||||||
The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
September 30, 2014 | September 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 | $ | (105,841 | ) | $ | 39,460 | $ | (66,381 | ) | $ | 42,074 | $ | (15,882 | ) | $ | 26,192 | |||||
Ownership share of equity method investees’ other comprehensive income (loss) | (1,724 | ) | 597 | (1,127 | ) | 3,118 | (856 | ) | 2,262 | |||||||||||
Defined benefit pension and postretirement plan adjustments | 18,142 | (6,803 | ) | 11,339 | (6,472 | ) | 2,427 | (4,045 | ) | |||||||||||
Unrealized gain (loss) on derivative contracts | (3,244 | ) | 1,135 | (2,109 | ) | 1,700 | (685 | ) | 1,015 | |||||||||||
Unrealized gain (loss) on debt securities | (552 | ) | 207 | (345 | ) | 585 | (220 | ) | 365 | |||||||||||
Total other comprehensive income (loss) | (93,219 | ) | 34,596 | (58,623 | ) | 41,005 | (15,216 | ) | 25,789 | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (833 | ) | — | (833 | ) | (403 | ) | — | (403 | ) | ||||||||||
Other comprehensive income (loss) attributable to Fluor Corporation | $ | (92,386 | ) | $ | 34,596 | $ | (57,790 | ) | $ | 41,408 | $ | (15,216 | ) | $ | 26,192 | |||||
The tax effects of the components of OCI for the nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2014 | September 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 | $ | (102,282 | ) | $ | 36,610 | $ | (65,672 | ) | $ | (48,753 | ) | $ | 18,198 | $ | (30,555 | ) | ||||
Ownership share of equity method investees’ other comprehensive income | 16,508 | (7,290 | ) | 9,218 | 11,471 | (3,118 | ) | 8,353 | ||||||||||||
Defined benefit pension and postretirement plan adjustments | 23,193 | (8,697 | ) | 14,496 | 7,648 | (2,868 | ) | 4,780 | ||||||||||||
Unrealized loss on derivative contracts | (2,463 | ) | 859 | (1,604 | ) | (1,247 | ) | 420 | (827 | ) | ||||||||||
Unrealized loss on debt securities | (212 | ) | 80 | (132 | ) | (1,170 | ) | 438 | (732 | ) | ||||||||||
Total other comprehensive loss | (65,256 | ) | 21,562 | (43,694 | ) | (32,051 | ) | 13,070 | (18,981 | ) | ||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (4,807 | ) | — | (4,807 | ) | (350 | ) | — | (350 | ) | ||||||||||
Other comprehensive loss attributable to Fluor Corporation | $ | (60,449 | ) | $ | 21,562 | $ | (38,887 | ) | $ | (31,701 | ) | $ | 13,070 | $ | (18,631 | ) | ||||
The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended September 30, 2014 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Securities | Net | ||||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 4,587 | $ | (21,929 | ) | $ | (255,140 | ) | $ | (7,205 | ) | $ | 389 | $ | (279,298 | ) | ||||
Other comprehensive income (loss) before reclassifications | (65,767 | ) | (1,127 | ) | 9,315 | (1,963 | ) | (325 | ) | (59,867 | ) | |||||||||
Amounts reclassified from AOCI | — | — | 2,024 | 73 | (20 | ) | 2,077 | |||||||||||||
Net other comprehensive income (loss) | (65,767 | ) | (1,127 | ) | 11,339 | (1,890 | ) | (345 | ) | (57,790 | ) | |||||||||
Balance as of September 30, 2014 | $ | (61,180 | ) | $ | (23,056 | ) | $ | (243,801 | ) | $ | (9,095 | ) | $ | 44 | $ | (337,088 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 3,843 | $ | — | $ | — | $ | 135 | $ | — | $ | 3,978 | ||||||||
Other comprehensive loss before reclassifications | (614 | ) | — | — | (225 | ) | — | (839 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 6 | — | 6 | ||||||||||||||
Net other comprehensive loss | (614 | ) | — | — | (219 | ) | — | (833 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 3,229 | $ | — | $ | — | $ | (84 | ) | $ | — | $ | 3,145 | |||||||
The changes in AOCI balances by component (after-tax) for the nine months ended September 30, 2014 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | for-Sale | Income (Loss), | ||||||||||||||||
Income (Loss) | Securities | Net | ||||||||||||||||||
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 | (61,016 | ) | 9,218 | 8,364 | (1,690 | ) | (123 | ) | (45,247 | ) | ||||||||||
Amounts reclassified from AOCI | — | — | 6,132 | 237 | (9 | ) | 6,360 | |||||||||||||
Net other comprehensive income (loss) | (61,016 | ) | 9,218 | 14,496 | (1,453 | ) | (132 | ) | (38,887 | ) | ||||||||||
Balance as of September 30, 2014 | $ | (61,180 | ) | $ | (23,056 | ) | $ | (243,801 | ) | $ | (9,095 | ) | $ | 44 | $ | (337,088 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,885 | $ | — | $ | — | $ | 67 | $ | — | $ | 7,952 | ||||||||
Other comprehensive loss before reclassifications | (4,656 | ) | — | — | (166 | ) | — | (4,822 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 15 | — | 15 | ||||||||||||||
Net other comprehensive loss | (4,656 | ) | — | — | (151 | ) | — | (4,807 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 3,229 | $ | — | $ | — | $ | (84 | ) | $ | — | $ | 3,145 | |||||||
The changes in AOCI balances by component (after-tax) for the three months ended September 30, 2013 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized Gain | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | (Loss) on | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | Available-for- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | Sale Securities | Income (Loss), | ||||||||||||||||
Income (Loss) | Net | |||||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of June 30, 2013 | $ | (10,902 | ) | $ | (36,928 | ) | $ | (243,899 | ) | $ | (10,801 | ) | $ | (143 | ) | $ | (302,673 | ) | ||
Other comprehensive income (loss) before reclassifications | 26,471 | 2,262 | (6,057 | ) | (443 | ) | 367 | 22,600 | ||||||||||||
Amounts reclassified from AOCI | — | — | 2,012 | 1,582 | (2 | ) | 3,592 | |||||||||||||
Net other comprehensive income (loss) | 26,471 | 2,262 | (4,045 | ) | 1,139 | 365 | 26,192 | |||||||||||||
Balance as of September 30, 2013 | $ | 15,569 | $ | (34,666 | ) | $ | (247,944 | ) | $ | (9,662 | ) | $ | 222 | $ | (276,481 | ) | ||||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of June 30, 2013 | $ | 8,777 | $ | — | $ | — | $ | — | $ | — | $ | 8,777 | ||||||||
Other comprehensive loss before reclassifications | (279 | ) | — | — | (124 | ) | — | (403 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | — | ||||||||||||||
Net other comprehensive loss | (279 | ) | — | — | (124 | ) | — | (403 | ) | |||||||||||
Balance as of September 30, 2013 | $ | 8,498 | $ | — | $ | — | $ | (124 | ) | $ | — | $ | 8,374 | |||||||
The changes in AOCI balances by component (after-tax) for the nine months ended September 30, 2013 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized Gain | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | (Loss) on | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | Available-for- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | Sale Securities | Income (Loss), | ||||||||||||||||
Income (Loss) | Net | |||||||||||||||||||
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 | (30,330 | ) | 8,353 | (1,261 | ) | (2,883 | ) | (645 | ) | (26,766 | ) | |||||||||
Amounts reclassified from AOCI | — | — | 6,041 | 2,181 | (87 | ) | 8,135 | |||||||||||||
Net other comprehensive income (loss) | (30,330 | ) | 8,353 | 4,780 | (702 | ) | (732 | ) | (18,631 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 15,569 | $ | (34,666 | ) | $ | (247,944 | ) | $ | (9,662 | ) | $ | 222 | $ | (276,481 | ) | ||||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 8,723 | $ | — | $ | — | $ | 1 | $ | — | $ | 8,724 | ||||||||
Other comprehensive loss before reclassifications | (225 | ) | — | — | (124 | ) | — | (349 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net other comprehensive loss | (225 | ) | — | — | (125 | ) | — | (350 | ) | |||||||||||
Balance as of September 30, 2013 | $ | 8,498 | $ | — | $ | — | $ | (124 | ) | $ | — | $ | 8,374 | |||||||
The significant items reclassified out of AOCI and the corresponding location in and impact in the Condensed Consolidated Statement of Earnings are as follows: | ||||||||||||||||||||
Location in | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Condensed Consolidated | September 30, | September 30, | ||||||||||||||||||
(in thousands) | Statement of Earnings | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Component of AOCI: | ||||||||||||||||||||
Defined benefit pension plan adjustments | Various accounts(1) | $ | (3,239 | ) | $ | (3,220 | ) | $ | (9,811 | ) | $ | (9,666 | ) | |||||||
Income tax benefit | Income tax expense | 1,215 | 1,208 | 3,679 | 3,625 | |||||||||||||||
Net of tax | $ | (2,024 | ) | $ | (2,012 | ) | $ | (6,132 | ) | $ | (6,041 | ) | ||||||||
Unrealized gain (loss) on derivative contracts: | ||||||||||||||||||||
Commodity and foreign currency contracts | Total cost of revenue | $ | 293 | $ | (2,112 | ) | $ | 842 | $ | (2,237 | ) | |||||||||
Interest rate contracts | Interest expense | (419 | ) | (419 | ) | (1,258 | ) | (1,258 | ) | |||||||||||
Income tax benefit (net) | Income tax expense | 47 | 949 | 164 | 1,315 | |||||||||||||||
Net of tax | (79 | ) | (1,582 | ) | (252 | ) | (2,180 | ) | ||||||||||||
Less: Noncontrolling interests | Net earnings attributable to noncontrolling interests | (6 | ) | — | (15 | ) | 1 | |||||||||||||
Net of tax and noncontrolling interests | $ | (73 | ) | $ | (1,582 | ) | $ | (237 | ) | $ | (2,181 | ) | ||||||||
Unrealized gain on available-for-sale securities | Corporate general and administrative expense | $ | 31 | $ | 3 | $ | 14 | $ | 139 | |||||||||||
Income tax expense | Income tax expense | (11 | ) | (1 | ) | (5 | ) | (52 | ) | |||||||||||
Net of tax | $ | 20 | $ | 2 | $ | 9 | $ | 87 | ||||||||||||
(1) Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
(5) Income Taxes | |
The effective tax rate on earnings from continuing operations for the three and nine months ended September 30, 2014 was 33.4 percent and 31.4 percent, respectively, compared to 28.7 percent and 29.9 percent for the corresponding periods of 2013. The higher effective tax rates for the three and nine months ended September 30, 2014 were primarily due to a benefit in 2013 of U.S. federal tax research credits which have not been extended beyond 2013. All periods benefited from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company. The company’s effective tax rates from discontinued operations for the three and nine months ended September 30, 2014 were 35.9 percent and 35.8 percent, respectively. | |
The company conducts business globally and, as a result, the company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, the Netherlands, South Africa, the United Kingdom and the United States. Although the company believes its reserves for its tax positions are reasonable, the final outcome of tax audits could be materially different, both favorably and unfavorably. With few exceptions, the company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2006. |
Cash_Paid_for_Interest_and_Tax
Cash Paid for Interest and Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Cash Paid for Interest and Taxes | ' |
Cash Paid for Interest and Taxes | ' |
(6) Cash Paid for Interest and Taxes | |
Cash paid for interest was $21 million for both the nine months ended September 30, 2014 and 2013, respectively. Income tax payments, net of refunds, were $240 million and $153 million during the nine-month periods ended September 30, 2014 and 2013, respectively. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
(7) Earnings Per Share | ||||||||||||||
Diluted earnings per share (“EPS”) reflects the assumed exercise or conversion of all dilutive securities using the treasury stock method. | ||||||||||||||
The calculations of the basic and diluted EPS for the three and nine months ended September 30, 2014 and 2013 are presented below: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Amounts attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 183,361 | $ | 173,046 | $ | 495,408 | $ | 500,916 | ||||||
Loss from discontinued operations, net of taxes | (113,859 | ) | — | (199,042 | ) | — | ||||||||
Net earnings | $ | 69,502 | $ | 173,046 | $ | 296,366 | $ | 500,916 | ||||||
Basic EPS: | ||||||||||||||
Weighted average common shares outstanding | 157,332 | 162,940 | 158,670 | 162,715 | ||||||||||
Basic EPS attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 1.17 | $ | 1.06 | $ | 3.12 | $ | 3.08 | ||||||
Loss from discontinued operations, net of taxes | (0.73 | ) | — | (1.25 | ) | — | ||||||||
Net earnings | $ | 0.44 | $ | 1.06 | $ | 1.87 | $ | 3.08 | ||||||
Diluted EPS: | ||||||||||||||
Weighted average common shares outstanding | 157,332 | 162,940 | 158,670 | 162,715 | ||||||||||
Diluted effect: | ||||||||||||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units | 1,726 | 1,490 | 1,663 | 1,218 | ||||||||||
Conversion equivalent of dilutive convertible debt | 398 | 415 | 423 | 391 | ||||||||||
Weighted average diluted shares outstanding | 159,456 | 164,845 | 160,756 | 164,324 | ||||||||||
Diluted EPS attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 1.15 | $ | 1.05 | $ | 3.08 | $ | 3.05 | ||||||
Loss from discontinued operations, net of taxes | (0.71 | ) | — | (1.24 | ) | — | ||||||||
Net earnings | $ | 0.44 | $ | 1.05 | $ | 1.84 | $ | 3.05 | ||||||
Anti-dilutive securities not included above | 667 | 1,845 | 596 | 1,914 | ||||||||||
During the three and nine months ended September 30, 2014, the company repurchased and cancelled 1,218,503 and 5,431,188 shares of its common stock, respectively, under its stock repurchase program for $87 million and $411 million, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
(8) Fair Value of Financial Instruments | ||||||||||||||||||||||||||
The fair value hierarchy established by ASC 820, “Fair Value Measurement,” prioritizes the use of inputs used in valuation techniques into the following three levels: | ||||||||||||||||||||||||||
· Level 1 | – quoted prices in active markets for identical assets and liabilities | |||||||||||||||||||||||||
· Level 2 | – inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly | |||||||||||||||||||||||||
· Level 3 | – unobservable inputs | |||||||||||||||||||||||||
The company measures and reports assets and liabilities at fair value utilizing pricing information received from third parties. The company performs procedures to verify the reasonableness of pricing information received for significant assets and liabilities classified as Level 2. | ||||||||||||||||||||||||||
The following table presents, for each of the fair value hierarchy levels required under ASC 820-10, the company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents(1) | $ | 13,781 | $ | 13,781 | $ | — | $ | — | $ | 50,081 | $ | 50,081 | $ | — | $ | — | ||||||||||
Marketable securities, current(2) | 93,289 | — | 93,289 | — | 111,333 | — | 111,333 | |||||||||||||||||||
Deferred compensation trusts(3) | 91,200 | 91,200 | — | — | 87,507 | 87,507 | — | — | ||||||||||||||||||
Marketable securities, noncurrent(4) | 334,008 | — | 334,008 | — | 275,402 | — | 275,402 | — | ||||||||||||||||||
Derivative assets(5) | ||||||||||||||||||||||||||
Commodity contracts | 89 | — | 89 | — | 438 | — | 438 | — | ||||||||||||||||||
Foreign currency contracts | 196 | — | 196 | — | 855 | — | 855 | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivative liabilities(5) | ||||||||||||||||||||||||||
Commodity contracts | $ | 290 | $ | — | $ | 290 | $ | — | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||||
Foreign currency contracts | 4,491 | — | 4,491 | — | 967 | — | 967 | — | ||||||||||||||||||
(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period. | ||||||||||||||||||||||||||
(2) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities, commercial paper and other debt securities with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. | ||||||||||||||||||||||||||
(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange. | ||||||||||||||||||||||||||
(4) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities and other debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. | ||||||||||||||||||||||||||
(5) See Note 9 for the classification of commodity contracts and foreign currency contracts in the Condensed Consolidated Balance Sheet. Commodity contracts and foreign currency contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. | ||||||||||||||||||||||||||
All of the company’s financial instruments carried at fair value are included in the table above. All of the above financial instruments are available-for-sale securities except for those held in the deferred compensation trusts (which are trading securities) and derivative assets and liabilities. The company has determined that there was no other-than-temporary impairment of available-for-sale securities with unrealized losses, and the company expects to recover the entire cost basis of the securities. The available-for-sale securities are made up of the following security types as of September 30, 2014: money market funds of $14 million, U.S. agency securities of $82 million, U.S. Treasury securities of $97 million, corporate debt securities of $245 million and other debt securities of $3 million. As of December 31, 2013, available-for-sale securities consisted of money market funds of $50 million, U.S. agency securities of $119 million, U.S. Treasury securities of $26 million, corporate debt securities of $235 million and commercial paper of $7 million. The amortized cost of these available-for-sale securities is not materially different from the fair value. During the three and nine months ended September 30, 2014, proceeds from the sales and maturities of available-for-sale securities were $40 million and $157 million, respectively, compared to $29 million and $235 million for the corresponding periods of 2013. | ||||||||||||||||||||||||||
The carrying values and estimated fair values of the company’s financial instruments that are not required to be measured at fair value in the Condensed Consolidated Balance Sheet are as follows: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in thousands) | Hierarchy | Value | Value | Value | Value | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash(1) | Level 1 | $ | 1,132,282 | $ | 1,132,282 | $ | 1,444,656 | $ | 1,444,656 | |||||||||||||||||
Cash equivalents(2) | Level 2 | 754,134 | 754,134 | 788,845 | 788,845 | |||||||||||||||||||||
Marketable securities, current(3) | Level 2 | 74,034 | 74,034 | 74,690 | 74,690 | |||||||||||||||||||||
Notes receivable, including noncurrent portion(4) | Level 3 | 18,817 | 18,817 | 27,602 | 27,602 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
3.375% Senior Notes(5) | Level 2 | $ | 496,935 | $ | 513,021 | $ | 496,604 | $ | 484,204 | |||||||||||||||||
1.5% Convertible Senior Notes(5) | Level 2 | 18,324 | 45,016 | 18,398 | 54,027 | |||||||||||||||||||||
Other borrowings(6) | Level 2 | 11,498 | 11,498 | 11,441 | 11,441 | |||||||||||||||||||||
(1) Cash consists of bank deposits. Carrying amounts approximate fair value. | ||||||||||||||||||||||||||
(2) Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. | ||||||||||||||||||||||||||
(3) Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value. | ||||||||||||||||||||||||||
(4) Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment. | ||||||||||||||||||||||||||
(5) The fair value of the 3.375% Senior Notes and 1.5% Convertible Senior Notes are estimated based on quoted market prices for similar issues. | ||||||||||||||||||||||||||
(6) Other borrowings primarily represent amounts outstanding under a short-term credit facility. The carrying amount of borrowings under this credit facility approximates fair value because of the short-term maturity. |
Derivatives_and_Hedging
Derivatives and Hedging | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivatives and Hedging | ' | |||||||||||||||||
Derivatives and Hedging | ' | |||||||||||||||||
(9) Derivatives and Hedging | ||||||||||||||||||
The company limits exposure to foreign currency fluctuations in most of its engineering and construction contracts through provisions that require client payments in currencies corresponding to the currencies in which cost is incurred. Certain financial exposure, which includes currency and commodity price risk associated with engineering and construction contracts, currency risk associated with monetary assets and liabilities denominated in nonfunctional currencies and risk associated with interest rate volatility, may subject the company to earnings volatility. In cases where financial exposure is identified, the company generally implements a hedging strategy utilizing derivative instruments as hedging instruments to mitigate the risk. These hedging instruments are designated as either fair value or cash flow hedges in accordance with ASC 815, “Derivatives and Hedging.” The company formally documents its hedge relationships at inception, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. The company also formally assesses, both at inception and at least quarterly thereafter, whether the hedging instruments are highly effective in offsetting changes in the fair value of the hedged items. The fair values of all hedging instruments are recognized as assets or liabilities at the balance sheet date. For fair value hedges, the effective portion of the change in the fair value of the hedging instrument is offset against the change in the fair value of the underlying asset or liability through earnings. For cash flow hedges, the effective portion of the hedging instrument’s gain or loss due to changes in fair value is recorded as a component of AOCI and is reclassified into earnings when the hedged item settles. Any ineffective portion of a hedging instrument’s change in fair value is immediately recognized in earnings. The company does not enter into derivative instruments for speculative purposes. The company maintains master netting arrangements with certain counterparties to facilitate the settlement of derivative instruments; however, the company reports the fair value of derivative instruments on a gross basis. | ||||||||||||||||||
As of September 30, 2014, the company had total gross notional amounts of $216 million of foreign currency contracts and $9 million of commodity contracts outstanding relating to engineering and construction contract obligations and monetary assets and liabilities denominated in nonfunctional currencies. The foreign currency contracts are of varying duration, none of which extend beyond September 2016. The commodity contracts are of varying duration, none of which extend beyond May 2017. The impact to earnings due to hedge ineffectiveness was immaterial for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
The fair values of derivatives designated as hedging instruments under ASC 815 as of September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | |||||||||||||
(in thousands) | Location | 2014 | 2013 | Location | 2014 | 2013 | ||||||||||||
Commodity contracts | Other current assets | $ | 65 | $ | 296 | Other accrued liabilities | $ | 249 | $ | 3 | ||||||||
Foreign currency contracts | Other current assets | 182 | 855 | Other accrued liabilities | 3,297 | 967 | ||||||||||||
Commodity contracts | Other assets | 24 | 142 | Noncurrent liabilities | 41 | — | ||||||||||||
Foreign currency contracts | Other assets | 14 | — | Noncurrent liabilities | 1,194 | — | ||||||||||||
Total | $ | 285 | $ | 1,293 | $ | 4,781 | $ | 970 | ||||||||||
The pre-tax net gains (losses) recognized in earnings associated with the hedging instruments designated as fair value hedges for the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Fair Value Hedges (in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency contracts | Corporate general and | |||||||||||||||||
administrative expense | $ | (1,228 | ) | $ | (81 | ) | $ | 2,123 | $ | 4,064 | ||||||||
The pre-tax amount of gain (loss) recognized in earnings on hedging instruments for the fair value hedges noted in the table above offset the amount of gain (loss) recognized in earnings on the hedged items in the same locations in the Condensed Consolidated Statement of Earnings. | ||||||||||||||||||
The after-tax amount of gain (loss) recognized in OCI associated with the derivative instruments designated as cash flow hedges was as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Cash Flow Hedges (in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Commodity contracts | $ | (175 | ) | $ | 47 | $ | (225 | ) | $ | 79 | ||||||||
Foreign currency contracts | (1,788 | ) | (490 | ) | (1,465 | ) | (2,962 | ) | ||||||||||
Total | $ | (1,963 | ) | $ | (443 | ) | $ | (1,690 | ) | $ | (2,883 | ) | ||||||
The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Cash Flow Hedges (in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Commodity contracts | Total cost of revenue | $ | (9 | ) | $ | (1 | ) | $ | 61 | $ | 59 | |||||||
Foreign currency contracts | Total cost of revenue | 198 | (1,319 | ) | 488 | (1,454 | ) | |||||||||||
Interest rate contracts | Interest expense | (262 | ) | (262 | ) | (786 | ) | (786 | ) | |||||||||
Total | $ | (73 | ) | $ | (1,582 | ) | $ | (237 | ) | $ | (2,181 | ) |
Retirement_Benefits
Retirement Benefits | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Retirement Benefits | ' | |||||||||||||||||||||||||
Retirement Benefits | ' | |||||||||||||||||||||||||
(10) Retirement Benefits | ||||||||||||||||||||||||||
Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans includes the following components: | ||||||||||||||||||||||||||
U.S. Pension Plan | Non-U.S. Pension Plans | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | 950 | $ | 1,613 | $ | 2,850 | $ | 4,840 | $ | 4,071 | $ | 3,809 | $ | 12,400 | $ | 11,505 | ||||||||||
Interest cost | 7,919 | 7,275 | 23,756 | 21,825 | 8,702 | 7,989 | 26,387 | 23,925 | ||||||||||||||||||
Expected return on assets | (7,527 | ) | (7,744 | ) | (22,579 | ) | (23,232 | ) | (12,120 | ) | (11,527 | ) | (36,729 | ) | (34,507 | ) | ||||||||||
Amortization of prior service cost | 188 | 26 | 563 | 77 | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 1,109 | 1,510 | 3,326 | 4,530 | 1,943 | 1,683 | 5,923 | 5,058 | ||||||||||||||||||
Net periodic pension expense | $ | 2,639 | $ | 2,680 | $ | 7,916 | $ | 8,040 | $ | 2,596 | $ | 1,954 | $ | 7,981 | $ | 5,981 | ||||||||||
The company currently expects to fund approximately $50 million to $60 million into its defined benefit pension plans during 2014, which is expected to be in excess of the minimum funding required. During the nine months ended September 30, 2014, contributions of approximately $50 million were made by the company. | ||||||||||||||||||||||||||
The company’s Board of Directors previously approved amendments to freeze the accrual of future service-related benefits for salaried participants of the U.S. defined benefit pension plan (the “U.S. plan”) as of December 31, 2011 and craft participants of the U.S. plan as of December 31, 2013. | ||||||||||||||||||||||||||
On October 29, 2014, the company’s Board of Directors approved an amendment to terminate the U.S. plan effective December 31, 2014. The settlement of the plan is expected to occur in late 2015, subject to regulatory approval. The company’s ultimate settlement obligation will depend upon the nature and timing of participant settlements. Upon settlement, the company expects to recognize additional expense, consisting of unrecognized actuarial losses included in accumulated other comprehensive loss that totaled approximately $160 million as of September 30, 2014, as well as an amount by which the settlement obligation exceeds the company's accrued pension liability, which could also be significant. The company does not expect the settlement of the plan obligations to have a material impact on its cash position. |
Financing_Arrangements
Financing Arrangements | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ' | |||||||
(11) Financing Arrangements | ||||||||
The company currently has two credit facilities with aggregate commitments of $3.5 billion, the entire amount of which may be used for performance letters of credit. The company may utilize up to $1.75 billion in the aggregate for revolving advances. Borrowings under both the company’s $1.7 billion Revolving Loan and Letter of Credit Facility Agreement and $1.8 billion Revolving Loan and Letter of Credit Facility Agreement bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin. Both facilities mature in May 2019. Each of the credit facilities may be increased up to an additional $500 million subject to certain conditions, and contains customary financial and restrictive covenants, including a maximum ratio of consolidated debt to tangible net worth of one-to-one and a cap on the aggregate amount of debt of $750 million for the company’s subsidiaries. | ||||||||
In September 2011, the company issued $500 million of 3.375% Senior Notes (the “2011 Notes”) due September 15, 2021 and received proceeds of $492 million, net of underwriting discounts and debt issuance costs. Interest on the 2011 Notes is payable semi-annually on March 15 and September 15 of each year, and began on March 15, 2012. The company may, at any time, redeem the 2011 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, the company will be required to offer to purchase the 2011 Notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The company is generally not limited under the indenture governing the 2011 Notes in its ability to incur additional indebtedness provided the company is in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions. | ||||||||
In February 2004, the company issued $330 million of 1.5% Convertible Senior Notes (the “2004 Notes”) due February 15, 2024 and received proceeds of $323 million, net of underwriting discounts. In December 2004, the company irrevocably elected to pay the principal amount of the 2004 Notes in cash. The 2004 Notes are convertible if a specified trading price of the company’s common stock (the “trigger price”) is achieved and maintained for a specified period. The trigger price condition was satisfied during the fourth quarter of 2013 and third quarter of 2014 and the 2004 Notes were therefore classified as short-term debt as of December 31, 2013 and September 30, 2014, respectively. During the nine months ended September 30, 2014, holders converted less than $0.1 million of the 2004 Notes in exchange for the principal balance owed in cash plus 1,750 shares of the company’s common stock. During the nine months ended September 30, 2013, holders converted less than $0.1 million of the 2004 Notes in exchange for the principal balance owed in cash plus 1,562 shares of the company’s common stock. | ||||||||
The following table presents information related to the liability and equity components of the 2004 Notes: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2014 | 2013 | |||||||
Carrying value of the equity component | $ | 19,516 | $ | 19,519 | ||||
Principal amount and carrying value of the liability component | 18,324 | 18,398 | ||||||
The 2004 Notes are convertible into shares of the company’s common stock (par value $0.01 per share) at a conversion rate of 36.6729 shares per each $1,000 principal amount of the 2004 Notes. Interest expense for the three and nine month periods included original coupon interest of less than $0.1 million and $0.2 million, respectively, during both 2014 and 2013. The if-converted value of $45 million was in excess of the principal value as of September 30, 2014. | ||||||||
In July 2013, the company established a short-term credit facility to purchase land and construction equipment associated with the equipment operations in the Global Services segment. Outstanding borrowings under the facility were $11 million as of both September 30, 2014 and December 31, 2013. | ||||||||
As of September 30, 2014, the company was in compliance with all of the financial covenants related to its debt agreements. |
StockBased_Plans
Stock-Based Plans | 9 Months Ended |
Sep. 30, 2014 | |
Stock-Based Plans | ' |
Stock-Based Plans | ' |
(12) Stock-Based Plans | |
The company’s executive and director stock-based compensation plans are described, and informational disclosures provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2013. In the first nine months of 2014 and 2013, restricted stock units and restricted shares totaling 370,014 and 477,731, respectively, were granted to executives and directors, at weighted-average per share prices of $79.06 and $61.45, respectively. For the company’s executives, the restricted units granted in 2014 and 2013 generally vest ratably over three years. For the company’s directors, the restricted units and shares granted in 2014 and 2013 vest or vested on the first anniversary of the grant. During the first nine months of 2014 and 2013, options for the purchase of 684,486 shares at a weighted-average exercise price of $79.19 per share and 884,574 shares at a weighted-average exercise price of $61.45 per share, respectively, were awarded to executives. The options granted in 2014 and 2013 vest ratably over three years. The options expire ten years after the grant date. In the first nine months of 2014 and 2013, performance-based Value Driver Incentive (“VDI”) units totaling 315,551 and 385,742, respectively, were granted to executives at weighted-average per share prices of $79.19 and $61.45, respectively. The number of units is adjusted at the end of the performance period based on the achievement of performance criteria. The VDI awards granted in 2014 and 2013 vest after a period of approximately three years. |
Noncontrolling_Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2014 | |
Noncontrolling Interests | ' |
Noncontrolling Interests | ' |
(13) Noncontrolling Interests | |
The company applies the provisions of ASC 810-10-45, which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net earnings attributable to the parent and to the noncontrolling interests, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. | |
As required by ASC 810-10-45, the company has separately disclosed on the face of the Condensed Consolidated Statement of Earnings for all periods presented the amount of net earnings attributable to the company and the amount of net earnings attributable to noncontrolling interests. For the three and nine months ended September 30, 2014, net earnings attributable to noncontrolling interests were $45 million and $122 million, respectively. For the three and nine months ended September 30, 2013, net earnings attributable to noncontrolling interests were $44 million and $137 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $76 million and $80 million for the nine months ended September 30, 2014 and 2013, respectively. Capital contributions by noncontrolling interests were $2 million for both the nine months ended September 30, 2014 and 2013. |
Contingencies_and_Commitments
Contingencies and Commitments | 9 Months Ended |
Sep. 30, 2014 | |
Contingencies and Commitments | ' |
Contingencies and Commitments | ' |
(14) Contingencies and Commitments | |
The company and certain of its subsidiaries are subject to litigation, claims and other commitments and contingencies arising in the ordinary course of business. The company currently does not expect that the ultimate resolution of any open matters will have a material adverse effect on its consolidated financial position or results of operations. | |
As of September 30, 2014, several matters were in the litigation and dispute resolution process. The following discussion provides a background and current status of these matters: | |
St. Joe Minerals Matters | |
Since 1995, the company has been named as a defendant in a number of lawsuits alleging injuries resulting from the lead business of St. Joe Minerals Corporation (“St. Joe”) and The Doe Run Company (“Doe Run”) in Herculaneum, Missouri, which are discontinued operations. The company was named as a defendant in these lawsuits as a result of its ownership or other interests in St. Joe and Doe Run in the period between 1981 and 1994. In 1994, the company sold its interests in St. Joe and Doe Run, along with all liabilities associated with the lead business, pursuant to a sale agreement in which the buyer agreed to indemnify the company for those liabilities. Until December 2010, substantially all the lawsuits were settled and paid by the buyer; and in all cases the company was fully released. | |
In December 2010, the buyer settled with certain plaintiffs without obtaining a release for the benefit of the company, leaving the company to defend its case with these plaintiffs in the City of St. Louis Circuit Court. In late July 2011, the jury reached an unexpected verdict in this case, ruling in favor of 16 of the plaintiffs and against the company and certain former subsidiaries for $38.5 million in compensatory and economic damages and $320 million in punitive damages. In August 2011, the court entered judgments based on the verdict. In December 2011, the company appealed the judgments of the court. | |
In June 2014, the Missouri Court of Appeals issued its opinion reversing and remanding to the trial court the award of $240 million in punitive damages against Fluor. In addition, the appellate court upheld the judgment for $38.5 million in compensatory and economic damages and $80 million of punitive damages against the company and its former subsidiaries to whom the company has provided certain indemnities relating to the St. Joe and Doe Run businesses. | |
In October 2014, the company entered into a settlement agreement with counsel for a number of plaintiffs (including the 16 plaintiffs described above). As a result of the company’s updated assessment of the estimated loss contingency related to these matters, the company recorded an after-tax loss from discontinued operations of $114 million during the three months ended September 30, 2014. For the nine months ended September 30, 2014, the after-tax loss from discontinued operations was $199 million. The company will disburse funds upon receipt of releases from the plaintiffs. While the company is unable to estimate a range of possible losses in the remaining lawsuits, it does not expect any material charges to result from these cases. In addition, the company will continue to take steps to enforce its rights to indemnification described above for both the settled matters and outstanding claims. | |
Conex International v. Fluor Enterprises, Inc. | |
The company was involved in a dispute with Conex International (“Conex”) relating to a project at a refinery in Port Arthur, Texas. An original ruling of the trial court in favor of Conex had been reversed in its entirety, and the Supreme Court of Texas had remanded the matter back to the trial court. The matter has been favorably resolved among the parties with no material financial impact to the company. | |
Other Matters | |
The company and certain of its clients have made claims arising from the performance under its contracts. The company recognizes revenue, but not profit, for certain claims (including change orders in dispute and unapproved change orders in regard to both scope and price) when it is determined that recovery of incurred costs is probable and the amounts can be reliably estimated. Under ASC 605-35-25, these requirements are satisfied when (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. The company periodically evaluates its position and the amounts recognized in revenue with respect to all its claims. Recognized claims against clients amounted to $27 million as of September 30, 2014, and are included in contract work in progress in the accompanying Condensed Consolidated Balance Sheet. There were no recognized claims against clients as of December 31, 2013. | |
From time to time, the company enters into significant contracts with the U.S. government and its agencies. Government contracts are subject to audits and investigations by government representatives with respect to the company’s compliance with various restrictions and regulations applicable to government contractors, including but not limited to the allowability of costs incurred under reimbursable contracts. In connection with performing government contracts, the company maintains reserves for estimated exposures associated with these matters. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2014 | |
Guarantees | ' |
Guarantees | ' |
(15) Guarantees | |
In the ordinary course of business, the company enters into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated and consolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The performance guarantees have various expiration dates ranging from mechanical completion of the project being constructed to a period extending beyond contract completion in certain circumstances. The maximum potential amount of future payments that the company could be required to make under outstanding performance guarantees, which represents the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts, was estimated to be $18.0 billion as of September 30, 2014. Amounts that may be required to be paid in excess of estimated cost to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete. In those cases where costs exceed the remaining amounts payable under the contract, the company may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors for claims. The company assessed its performance guarantee obligation as of September 30, 2014 and December 31, 2013 in accordance with ASC 460, “Guarantees” and the carrying value of the liability was not material. | |
Financial guarantees, made in the ordinary course of business in certain limited circumstances, are entered into with financial institutions and other credit grantors and generally obligate the company to make payment in the event of a default by the borrower. These arrangements may require the borrower to pledge collateral to support the fulfillment of the borrower’s obligation. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2014 | |
Variable Interest Entities | ' |
Variable Interest Entities | ' |
(16) Variable Interest Entities | |
Variable Interest Entities | |
In the normal course of business, the company forms partnerships or joint ventures primarily for the execution of single contracts or projects. The majority of these partnerships or joint ventures are characterized by a 50 percent or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. Many of the partnership and joint venture agreements provide for capital calls to fund operations, as necessary. Such funding is infrequent and is not anticipated to be material. The company accounts for its partnerships and joint ventures in accordance with ASC 810,”Consolidation.” | |
In accordance with ASC 810, the company assesses its partnerships and joint ventures at inception to determine if any meet the qualifications of a VIE. The company considers a partnership or joint venture a VIE if either (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, the company reassesses its initial determination of whether the partnership or joint venture is a VIE. The majority of the company’s partnerships and joint ventures qualify as VIEs because the total equity investment is typically nominal and not sufficient to permit the entity to finance its activities without additional subordinated financial support. | |
The company also performs a qualitative assessment of each VIE to determine if the company is its primary beneficiary, as required by ASC 810. The company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. The company also considers all parties that have direct or implicit variable interests when determining whether it is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed. | |
In most cases, when the company is not the primary beneficiary and not required to consolidate the VIE, the proportionate consolidation method of accounting is used for joint ventures and partnerships in the construction industry, whereby the company recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Earnings and uses the one-line equity method of accounting in the Condensed Consolidated Balance Sheet, which is a common application of ASC 810-10-45-14 in the construction industry. The equity and cost methods of accounting for the investments are also used, depending on the company’s respective ownership interest, amount of influence over the VIE and the nature of services provided by the VIE. The net carrying value of the unconsolidated VIEs classified under “Investments and goodwill” and “Other accrued liabilities” in the Condensed Consolidated Balance Sheet was a net asset of $105 million and $122 million as of September 30, 2014 and December 31, 2013, respectively. Some of the company’s VIEs have debt; however, such debt is typically non-recourse in nature. The company’s maximum exposure to loss as a result of its investments in unconsolidated VIEs is typically limited to the aggregate of the carrying value of the investment and future funding commitments. Future funding commitments as of September 30, 2014 for the unconsolidated VIEs were $20 million. | |
In some cases, the company is required to consolidate certain VIEs. As of September 30, 2014, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.1 billion and $509 million, respectively. As of December 31, 2013, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.2 billion and $731 million, respectively. The assets of a VIE are restricted for use only for the particular VIE and are not available for general operations of the company. | |
A discussion of some of the company’s more significant or unique VIEs is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2013. |
Operating_Information_by_Segme
Operating Information by Segment | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Operating Information by Segment | ' | |||||||||||||
Operating Information by Segment | ' | |||||||||||||
(17) Operating Information by Segment | ||||||||||||||
Operating information by reportable segment is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
External Revenue (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Oil & Gas | $ | 3,231.60 | $ | 2,892.70 | $ | 8,778.80 | $ | 8,518.50 | ||||||
Industrial & Infrastructure | 1,216.00 | 2,665.00 | 4,370.60 | 8,879.50 | ||||||||||
Government | 615.1 | 675.2 | 1,806.90 | 2,101.00 | ||||||||||
Global Services | 140.5 | 149.7 | 428.3 | 454 | ||||||||||
Power | 236.9 | 301.6 | 691.8 | 1,107.20 | ||||||||||
Total external revenue | $ | 5,440.10 | $ | 6,684.20 | $ | 16,076.40 | $ | 21,060.20 | ||||||
The Global Services segment represents a combination of other operating segments that do not meet the ASC 280, “Segment Reporting,” requirements for separate disclosure or aggregation. Intercompany revenue for the Global Services segment, excluded from the amounts shown above, was $131 million and $406 million for the three and nine months ended September 30, 2014, respectively, and $128 million and $371 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Segment Profit (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Oil & Gas | $ | 178.6 | $ | 108.3 | $ | 483.9 | $ | 319.6 | ||||||
Industrial & Infrastructure | 101.4 | 132.4 | 298.8 | 388.7 | ||||||||||
Government | 29.6 | 37.8 | 56 | 92.7 | ||||||||||
Global Services | 19.4 | 24.5 | 58 | 79.8 | ||||||||||
Power | 5.7 | 7.6 | 19.2 | 11.4 | ||||||||||
Total segment profit | $ | 334.7 | $ | 310.6 | $ | 915.9 | $ | 892.2 | ||||||
Power segment profit for the three and nine months ended September 30, 2014 and 2013 includes the operations of NuScale, which are primarily for research and development activities associated with the licensing and commercialization of small modular nuclear reactor technology. In May 2014, NuScale entered into a cost-sharing agreement with the U.S. Department of Energy (“DOE”) establishing the terms and conditions of a multi-year funding award that allows certain qualified expenditures to be reimbursed. NuScale expenses, net of qualified reimbursable expenditures, included in the determination of segment profit, were $17 million and $13 million for the three month periods in 2014 and 2013, respectively, and $33 million and $41 million for the nine month periods in 2014 and 2013, respectively. The company recognizes the cost-sharing award with the DOE, when earned, as a reduction of “Total cost of revenue” in the Condensed Consolidated Statement of Earnings and, correspondingly, as an increase to segment profit in the period for which the related costs are recognized, with the exception of certain pre-award costs which were recognized in the second quarter of 2014 upon entering into the cost-sharing agreement. | ||||||||||||||
A reconciliation of total segment profit to earnings from continuing operations before taxes is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
Reconciliation of Total Segment Profit to Earnings from | September 30, | September 30, | ||||||||||||
Continuing Operations Before Taxes (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Total segment profit | $ | 334.7 | $ | 310.6 | $ | 915.9 | $ | 892.2 | ||||||
Corporate general and administrative expense | (35.1 | ) | (46.1 | ) | (129.6 | ) | (110.6 | ) | ||||||
Interest income (expense), net | (1.6 | ) | (3.7 | ) | (8.0 | ) | (8.9 | ) | ||||||
Earnings attributable to noncontrolling interests | 45.4 | 43.9 | 121.8 | 137.1 | ||||||||||
Earnings from continuing operations before taxes | $ | 343.4 | $ | 304.7 | $ | 900.1 | $ | 909.8 | ||||||
Total assets by segment are as follows: | ||||||||||||||
September 30, | December 31, | |||||||||||||
Total Assets by Segment (in millions) | 2014 | 2013 | ||||||||||||
Oil & Gas | $ | 1,809.20 | $ | 1,643.80 | ||||||||||
Industrial & Infrastructure | 793.7 | 909.7 | ||||||||||||
Government | 437.3 | 580.6 | ||||||||||||
Global Services | 830 | 758.9 | ||||||||||||
Power | 132.3 | 154.9 | ||||||||||||
The increase in total assets for the Oil & Gas segment was due to higher levels of working capital on projects. The decrease in total assets for the Industrial & Infrastructure segment was primarily due to a reduction in working capital associated with the decrease in volume in the mining and metals business line. The decrease in total assets for the Government segment was primarily due to a reduction in working capital to support the declining volume of LOGCAP IV project execution activities. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Schedule of tax effects of components of other comprehensive income (loss) ("OCI") | ' | |||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
September 30, 2014 | September 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 | $ | (105,841 | ) | $ | 39,460 | $ | (66,381 | ) | $ | 42,074 | $ | (15,882 | ) | $ | 26,192 | |||||
Ownership share of equity method investees’ other comprehensive income (loss) | (1,724 | ) | 597 | (1,127 | ) | 3,118 | (856 | ) | 2,262 | |||||||||||
Defined benefit pension and postretirement plan adjustments | 18,142 | (6,803 | ) | 11,339 | (6,472 | ) | 2,427 | (4,045 | ) | |||||||||||
Unrealized gain (loss) on derivative contracts | (3,244 | ) | 1,135 | (2,109 | ) | 1,700 | (685 | ) | 1,015 | |||||||||||
Unrealized gain (loss) on debt securities | (552 | ) | 207 | (345 | ) | 585 | (220 | ) | 365 | |||||||||||
Total other comprehensive income (loss) | (93,219 | ) | 34,596 | (58,623 | ) | 41,005 | (15,216 | ) | 25,789 | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (833 | ) | — | (833 | ) | (403 | ) | — | (403 | ) | ||||||||||
Other comprehensive income (loss) attributable to Fluor Corporation | $ | (92,386 | ) | $ | 34,596 | $ | (57,790 | ) | $ | 41,408 | $ | (15,216 | ) | $ | 26,192 | |||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2014 | September 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 | $ | (102,282 | ) | $ | 36,610 | $ | (65,672 | ) | $ | (48,753 | ) | $ | 18,198 | $ | (30,555 | ) | ||||
Ownership share of equity method investees’ other comprehensive income | 16,508 | (7,290 | ) | 9,218 | 11,471 | (3,118 | ) | 8,353 | ||||||||||||
Defined benefit pension and postretirement plan adjustments | 23,193 | (8,697 | ) | 14,496 | 7,648 | (2,868 | ) | 4,780 | ||||||||||||
Unrealized loss on derivative contracts | (2,463 | ) | 859 | (1,604 | ) | (1,247 | ) | 420 | (827 | ) | ||||||||||
Unrealized loss on debt securities | (212 | ) | 80 | (132 | ) | (1,170 | ) | 438 | (732 | ) | ||||||||||
Total other comprehensive loss | (65,256 | ) | 21,562 | (43,694 | ) | (32,051 | ) | 13,070 | (18,981 | ) | ||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (4,807 | ) | — | (4,807 | ) | (350 | ) | — | (350 | ) | ||||||||||
Other comprehensive loss attributable to Fluor Corporation | $ | (60,449 | ) | $ | 21,562 | $ | (38,887 | ) | $ | (31,701 | ) | $ | 13,070 | $ | (18,631 | ) | ||||
Schedule of changes in accumulated other comprehensive income ("AOCI") balances by component (after-tax) | ' | |||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Securities | Net | ||||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 4,587 | $ | (21,929 | ) | $ | (255,140 | ) | $ | (7,205 | ) | $ | 389 | $ | (279,298 | ) | ||||
Other comprehensive income (loss) before reclassifications | (65,767 | ) | (1,127 | ) | 9,315 | (1,963 | ) | (325 | ) | (59,867 | ) | |||||||||
Amounts reclassified from AOCI | — | — | 2,024 | 73 | (20 | ) | 2,077 | |||||||||||||
Net other comprehensive income (loss) | (65,767 | ) | (1,127 | ) | 11,339 | (1,890 | ) | (345 | ) | (57,790 | ) | |||||||||
Balance as of September 30, 2014 | $ | (61,180 | ) | $ | (23,056 | ) | $ | (243,801 | ) | $ | (9,095 | ) | $ | 44 | $ | (337,088 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 3,843 | $ | — | $ | — | $ | 135 | $ | — | $ | 3,978 | ||||||||
Other comprehensive loss before reclassifications | (614 | ) | — | — | (225 | ) | — | (839 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 6 | — | 6 | ||||||||||||||
Net other comprehensive loss | (614 | ) | — | — | (219 | ) | — | (833 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 3,229 | $ | — | $ | — | $ | (84 | ) | $ | — | $ | 3,145 | |||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | for-Sale | Income (Loss), | ||||||||||||||||
Income (Loss) | Securities | Net | ||||||||||||||||||
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 | (61,016 | ) | 9,218 | 8,364 | (1,690 | ) | (123 | ) | (45,247 | ) | ||||||||||
Amounts reclassified from AOCI | — | — | 6,132 | 237 | (9 | ) | 6,360 | |||||||||||||
Net other comprehensive income (loss) | (61,016 | ) | 9,218 | 14,496 | (1,453 | ) | (132 | ) | (38,887 | ) | ||||||||||
Balance as of September 30, 2014 | $ | (61,180 | ) | $ | (23,056 | ) | $ | (243,801 | ) | $ | (9,095 | ) | $ | 44 | $ | (337,088 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,885 | $ | — | $ | — | $ | 67 | $ | — | $ | 7,952 | ||||||||
Other comprehensive loss before reclassifications | (4,656 | ) | — | — | (166 | ) | — | (4,822 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 15 | — | 15 | ||||||||||||||
Net other comprehensive loss | (4,656 | ) | — | — | (151 | ) | — | (4,807 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 3,229 | $ | — | $ | — | $ | (84 | ) | $ | — | $ | 3,145 | |||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized Gain | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | (Loss) on | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | Available-for- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | Sale Securities | Income (Loss), | ||||||||||||||||
Income (Loss) | Net | |||||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of June 30, 2013 | $ | (10,902 | ) | $ | (36,928 | ) | $ | (243,899 | ) | $ | (10,801 | ) | $ | (143 | ) | $ | (302,673 | ) | ||
Other comprehensive income (loss) before reclassifications | 26,471 | 2,262 | (6,057 | ) | (443 | ) | 367 | 22,600 | ||||||||||||
Amounts reclassified from AOCI | — | — | 2,012 | 1,582 | (2 | ) | 3,592 | |||||||||||||
Net other comprehensive income (loss) | 26,471 | 2,262 | (4,045 | ) | 1,139 | 365 | 26,192 | |||||||||||||
Balance as of September 30, 2013 | $ | 15,569 | $ | (34,666 | ) | $ | (247,944 | ) | $ | (9,662 | ) | $ | 222 | $ | (276,481 | ) | ||||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of June 30, 2013 | $ | 8,777 | $ | — | $ | — | $ | — | $ | — | $ | 8,777 | ||||||||
Other comprehensive loss before reclassifications | (279 | ) | — | — | (124 | ) | — | (403 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | — | ||||||||||||||
Net other comprehensive loss | (279 | ) | — | — | (124 | ) | — | (403 | ) | |||||||||||
Balance as of September 30, 2013 | $ | 8,498 | $ | — | $ | — | $ | (124 | ) | $ | — | $ | 8,374 | |||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized Gain | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) on | (Loss) on | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | Derivative | Available-for- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Contracts | Sale Securities | Income (Loss), | ||||||||||||||||
Income (Loss) | Net | |||||||||||||||||||
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 | (30,330 | ) | 8,353 | (1,261 | ) | (2,883 | ) | (645 | ) | (26,766 | ) | |||||||||
Amounts reclassified from AOCI | — | — | 6,041 | 2,181 | (87 | ) | 8,135 | |||||||||||||
Net other comprehensive income (loss) | (30,330 | ) | 8,353 | 4,780 | (702 | ) | (732 | ) | (18,631 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 15,569 | $ | (34,666 | ) | $ | (247,944 | ) | $ | (9,662 | ) | $ | 222 | $ | (276,481 | ) | ||||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 8,723 | $ | — | $ | — | $ | 1 | $ | — | $ | 8,724 | ||||||||
Other comprehensive loss before reclassifications | (225 | ) | — | — | (124 | ) | — | (349 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net other comprehensive loss | (225 | ) | — | — | (125 | ) | — | (350 | ) | |||||||||||
Balance as of September 30, 2013 | $ | 8,498 | $ | — | $ | — | $ | (124 | ) | $ | — | $ | 8,374 | |||||||
Schedule of significant items reclassified out of AOCI and corresponding location in and impact in Condensed Consolidated Statement of Earnings | ' | |||||||||||||||||||
Location in | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Condensed Consolidated | September 30, | September 30, | ||||||||||||||||||
(in thousands) | Statement of Earnings | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Component of AOCI: | ||||||||||||||||||||
Defined benefit pension plan adjustments | Various accounts(1) | $ | (3,239 | ) | $ | (3,220 | ) | $ | (9,811 | ) | $ | (9,666 | ) | |||||||
Income tax benefit | Income tax expense | 1,215 | 1,208 | 3,679 | 3,625 | |||||||||||||||
Net of tax | $ | (2,024 | ) | $ | (2,012 | ) | $ | (6,132 | ) | $ | (6,041 | ) | ||||||||
Unrealized gain (loss) on derivative contracts: | ||||||||||||||||||||
Commodity and foreign currency contracts | Total cost of revenue | $ | 293 | $ | (2,112 | ) | $ | 842 | $ | (2,237 | ) | |||||||||
Interest rate contracts | Interest expense | (419 | ) | (419 | ) | (1,258 | ) | (1,258 | ) | |||||||||||
Income tax benefit (net) | Income tax expense | 47 | 949 | 164 | 1,315 | |||||||||||||||
Net of tax | (79 | ) | (1,582 | ) | (252 | ) | (2,180 | ) | ||||||||||||
Less: Noncontrolling interests | Net earnings attributable to noncontrolling interests | (6 | ) | — | (15 | ) | 1 | |||||||||||||
Net of tax and noncontrolling interests | $ | (73 | ) | $ | (1,582 | ) | $ | (237 | ) | $ | (2,181 | ) | ||||||||
Unrealized gain on available-for-sale securities | Corporate general and administrative expense | $ | 31 | $ | 3 | $ | 14 | $ | 139 | |||||||||||
Income tax expense | Income tax expense | (11 | ) | (1 | ) | (5 | ) | (52 | ) | |||||||||||
Net of tax | $ | 20 | $ | 2 | $ | 9 | $ | 87 | ||||||||||||
(1) Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of calculations of basic and diluted EPS | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Amounts attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 183,361 | $ | 173,046 | $ | 495,408 | $ | 500,916 | ||||||
Loss from discontinued operations, net of taxes | (113,859 | ) | — | (199,042 | ) | — | ||||||||
Net earnings | $ | 69,502 | $ | 173,046 | $ | 296,366 | $ | 500,916 | ||||||
Basic EPS: | ||||||||||||||
Weighted average common shares outstanding | 157,332 | 162,940 | 158,670 | 162,715 | ||||||||||
Basic EPS attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 1.17 | $ | 1.06 | $ | 3.12 | $ | 3.08 | ||||||
Loss from discontinued operations, net of taxes | (0.73 | ) | — | (1.25 | ) | — | ||||||||
Net earnings | $ | 0.44 | $ | 1.06 | $ | 1.87 | $ | 3.08 | ||||||
Diluted EPS: | ||||||||||||||
Weighted average common shares outstanding | 157,332 | 162,940 | 158,670 | 162,715 | ||||||||||
Diluted effect: | ||||||||||||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units | 1,726 | 1,490 | 1,663 | 1,218 | ||||||||||
Conversion equivalent of dilutive convertible debt | 398 | 415 | 423 | 391 | ||||||||||
Weighted average diluted shares outstanding | 159,456 | 164,845 | 160,756 | 164,324 | ||||||||||
Diluted EPS attributable to Fluor Corporation: | ||||||||||||||
Earnings from continuing operations | $ | 1.15 | $ | 1.05 | $ | 3.08 | $ | 3.05 | ||||||
Loss from discontinued operations, net of taxes | (0.71 | ) | — | (1.24 | ) | — | ||||||||
Net earnings | $ | 0.44 | $ | 1.05 | $ | 1.84 | $ | 3.05 | ||||||
Anti-dilutive securities not included above | 667 | 1,845 | 596 | 1,914 | ||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents(1) | $ | 13,781 | $ | 13,781 | $ | — | $ | — | $ | 50,081 | $ | 50,081 | $ | — | $ | — | ||||||||||
Marketable securities, current(2) | 93,289 | — | 93,289 | — | 111,333 | — | 111,333 | |||||||||||||||||||
Deferred compensation trusts(3) | 91,200 | 91,200 | — | — | 87,507 | 87,507 | — | — | ||||||||||||||||||
Marketable securities, noncurrent(4) | 334,008 | — | 334,008 | — | 275,402 | — | 275,402 | — | ||||||||||||||||||
Derivative assets(5) | ||||||||||||||||||||||||||
Commodity contracts | 89 | — | 89 | — | 438 | — | 438 | — | ||||||||||||||||||
Foreign currency contracts | 196 | — | 196 | — | 855 | — | 855 | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivative liabilities(5) | ||||||||||||||||||||||||||
Commodity contracts | $ | 290 | $ | — | $ | 290 | $ | — | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||||
Foreign currency contracts | 4,491 | — | 4,491 | — | 967 | — | 967 | — | ||||||||||||||||||
(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period. | ||||||||||||||||||||||||||
(2) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities, commercial paper and other debt securities with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. | ||||||||||||||||||||||||||
(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange. | ||||||||||||||||||||||||||
(4) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities and other debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. | ||||||||||||||||||||||||||
(5) See Note 9 for the classification of commodity contracts and foreign currency contracts in the Condensed Consolidated Balance Sheet. Commodity contracts and foreign currency contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. | ||||||||||||||||||||||||||
Schedule of carrying values and estimated fair values of financial instruments not required to be measured at fair value in the Condensed Consolidated Balance Sheet | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in thousands) | Hierarchy | Value | Value | Value | Value | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash(1) | Level 1 | $ | 1,132,282 | $ | 1,132,282 | $ | 1,444,656 | $ | 1,444,656 | |||||||||||||||||
Cash equivalents(2) | Level 2 | 754,134 | 754,134 | 788,845 | 788,845 | |||||||||||||||||||||
Marketable securities, current(3) | Level 2 | 74,034 | 74,034 | 74,690 | 74,690 | |||||||||||||||||||||
Notes receivable, including noncurrent portion(4) | Level 3 | 18,817 | 18,817 | 27,602 | 27,602 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
3.375% Senior Notes(5) | Level 2 | $ | 496,935 | $ | 513,021 | $ | 496,604 | $ | 484,204 | |||||||||||||||||
1.5% Convertible Senior Notes(5) | Level 2 | 18,324 | 45,016 | 18,398 | 54,027 | |||||||||||||||||||||
Other borrowings(6) | Level 2 | 11,498 | 11,498 | 11,441 | 11,441 | |||||||||||||||||||||
(1) Cash consists of bank deposits. Carrying amounts approximate fair value. | ||||||||||||||||||||||||||
(2) Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. | ||||||||||||||||||||||||||
(3) Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value. | ||||||||||||||||||||||||||
(4) Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment. | ||||||||||||||||||||||||||
(5) The fair value of the 3.375% Senior Notes and 1.5% Convertible Senior Notes are estimated based on quoted market prices for similar issues. | ||||||||||||||||||||||||||
(6) Other borrowings primarily represent amounts outstanding under a short-term credit facility. The carrying amount of borrowings under this credit facility approximates fair value because of the short-term maturity. |
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivatives and Hedging | ' | |||||||||||||||||
Schedule of fair values of derivatives designated as hedging instruments under ASC 815 | ' | |||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | |||||||||||||
(in thousands) | Location | 2014 | 2013 | Location | 2014 | 2013 | ||||||||||||
Commodity contracts | Other current assets | $ | 65 | $ | 296 | Other accrued liabilities | $ | 249 | $ | 3 | ||||||||
Foreign currency contracts | Other current assets | 182 | 855 | Other accrued liabilities | 3,297 | 967 | ||||||||||||
Commodity contracts | Other assets | 24 | 142 | Noncurrent liabilities | 41 | — | ||||||||||||
Foreign currency contracts | Other assets | 14 | — | Noncurrent liabilities | 1,194 | — | ||||||||||||
Total | $ | 285 | $ | 1,293 | $ | 4,781 | $ | 970 | ||||||||||
Schedule of after-tax amount of gain (loss) recognized in OCI and reclassified from AOCI into earnings associated with derivative instruments designated as cash flow hedges | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Cash Flow Hedges (in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Commodity contracts | $ | (175 | ) | $ | 47 | $ | (225 | ) | $ | 79 | ||||||||
Foreign currency contracts | (1,788 | ) | (490 | ) | (1,465 | ) | (2,962 | ) | ||||||||||
Total | $ | (1,963 | ) | $ | (443 | ) | $ | (1,690 | ) | $ | (2,883 | ) | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Cash Flow Hedges (in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Commodity contracts | Total cost of revenue | $ | (9 | ) | $ | (1 | ) | $ | 61 | $ | 59 | |||||||
Foreign currency contracts | Total cost of revenue | 198 | (1,319 | ) | 488 | (1,454 | ) | |||||||||||
Interest rate contracts | Interest expense | (262 | ) | (262 | ) | (786 | ) | (786 | ) | |||||||||
Total | $ | (73 | ) | $ | (1,582 | ) | $ | (237 | ) | $ | (2,181 | ) | ||||||
Hedging instruments designated as fair value hedges | ' | |||||||||||||||||
Derivative gain (loss) | ' | |||||||||||||||||
Schedule of pre-tax net gains (losses) recognized in earnings | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Fair Value Hedges (in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency contracts | Corporate general and | |||||||||||||||||
administrative expense | $ | (1,228 | ) | $ | (81 | ) | $ | 2,123 | $ | 4,064 | ||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) (Defined Benefit Pension Plans) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Defined Benefit Pension Plans | ' | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | |||||||||||||||||||||||||
Schedule of net periodic pension expense for U.S and non-U.S. defined benefit pension plans | ' | |||||||||||||||||||||||||
U.S. Pension Plan | Non-U.S. Pension Plans | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | 950 | $ | 1,613 | $ | 2,850 | $ | 4,840 | $ | 4,071 | $ | 3,809 | $ | 12,400 | $ | 11,505 | ||||||||||
Interest cost | 7,919 | 7,275 | 23,756 | 21,825 | 8,702 | 7,989 | 26,387 | 23,925 | ||||||||||||||||||
Expected return on assets | (7,527 | ) | (7,744 | ) | (22,579 | ) | (23,232 | ) | (12,120 | ) | (11,527 | ) | (36,729 | ) | (34,507 | ) | ||||||||||
Amortization of prior service cost | 188 | 26 | 563 | 77 | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 1,109 | 1,510 | 3,326 | 4,530 | 1,943 | 1,683 | 5,923 | 5,058 | ||||||||||||||||||
Net periodic pension expense | $ | 2,639 | $ | 2,680 | $ | 7,916 | $ | 8,040 | $ | 2,596 | $ | 1,954 | $ | 7,981 | $ | 5,981 |
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Financing Arrangements | ' | |||||||
Schedule of liability and equity components of the 2004 Notes | ' | |||||||
(in thousands) | September 30, | December 31, | ||||||
2014 | 2013 | |||||||
Carrying value of the equity component | $ | 19,516 | $ | 19,519 | ||||
Principal amount and carrying value of the liability component | 18,324 | 18,398 | ||||||
Operating_Information_by_Segme1
Operating Information by Segment (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Operating Information by Segment | ' | |||||||||||||
Schedule of External Revenue, Segment Profit and Total Assets by Segment | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
External Revenue (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Oil & Gas | $ | 3,231.60 | $ | 2,892.70 | $ | 8,778.80 | $ | 8,518.50 | ||||||
Industrial & Infrastructure | 1,216.00 | 2,665.00 | 4,370.60 | 8,879.50 | ||||||||||
Government | 615.1 | 675.2 | 1,806.90 | 2,101.00 | ||||||||||
Global Services | 140.5 | 149.7 | 428.3 | 454 | ||||||||||
Power | 236.9 | 301.6 | 691.8 | 1,107.20 | ||||||||||
Total external revenue | $ | 5,440.10 | $ | 6,684.20 | $ | 16,076.40 | $ | 21,060.20 | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Segment Profit (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Oil & Gas | $ | 178.6 | $ | 108.3 | $ | 483.9 | $ | 319.6 | ||||||
Industrial & Infrastructure | 101.4 | 132.4 | 298.8 | 388.7 | ||||||||||
Government | 29.6 | 37.8 | 56 | 92.7 | ||||||||||
Global Services | 19.4 | 24.5 | 58 | 79.8 | ||||||||||
Power | 5.7 | 7.6 | 19.2 | 11.4 | ||||||||||
Total segment profit | $ | 334.7 | $ | 310.6 | $ | 915.9 | $ | 892.2 | ||||||
September 30, | December 31, | |||||||||||||
Total Assets by Segment (in millions) | 2014 | 2013 | ||||||||||||
Oil & Gas | $ | 1,809.20 | $ | 1,643.80 | ||||||||||
Industrial & Infrastructure | 793.7 | 909.7 | ||||||||||||
Government | 437.3 | 580.6 | ||||||||||||
Global Services | 830 | 758.9 | ||||||||||||
Power | 132.3 | 154.9 | ||||||||||||
Schedule of Reconciliation of Total Segment Profit to Earnings from Continuing Operations Before Taxes | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
Reconciliation of Total Segment Profit to Earnings from | September 30, | September 30, | ||||||||||||
Continuing Operations Before Taxes (in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Total segment profit | $ | 334.7 | $ | 310.6 | $ | 915.9 | $ | 892.2 | ||||||
Corporate general and administrative expense | (35.1 | ) | (46.1 | ) | (129.6 | ) | (110.6 | ) | ||||||
Interest income (expense), net | (1.6 | ) | (3.7 | ) | (8.0 | ) | (8.9 | ) | ||||||
Earnings attributable to noncontrolling interests | 45.4 | 43.9 | 121.8 | 137.1 | ||||||||||
Earnings from continuing operations before taxes | $ | 343.4 | $ | 304.7 | $ | 900.1 | $ | 909.8 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (St. Joe and Doe Run, USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
St. Joe and Doe Run | ' | ' |
Discontinued Operations | ' | ' |
Loss from discontinued operations in connection with reassessment of estimated loss contingencies, net of taxes | $114 | $199 |
Loss from discontinued operations in connection with reassessment of estimated loss contingencies, taxes | $64 | $111 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | ($93,219) | $41,005 | ($65,256) | ($32,051) |
Less: Other comprehensive loss attributable to noncontrolling interests, Before-Tax Amount | -833 | -403 | -4,807 | -350 |
Other comprehensive income (loss) attributable to Fluor Corporation, Before-Tax Amount | -92,386 | 41,408 | -60,449 | -31,701 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | 34,596 | -15,216 | 21,562 | 13,070 |
Other comprehensive income (loss) attributable to Fluor Corporation, Tax Benefit (Expense) | 34,596 | -15,216 | 21,562 | 13,070 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | -58,623 | 25,789 | -43,694 | -18,981 |
Less: Other comprehensive loss attributable to noncontrolling interests, Net-of-Tax Amount | -833 | -403 | -4,807 | -350 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -57,790 | 26,192 | -38,887 | -18,631 |
Foreign currency translation adjustment | ' | ' | ' | ' |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | -105,841 | 42,074 | -102,282 | -48,753 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | 39,460 | -15,882 | 36,610 | 18,198 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | -66,381 | 26,192 | -65,672 | -30,555 |
Less: Other comprehensive loss attributable to noncontrolling interests, Net-of-Tax Amount | -614 | -279 | -4,656 | -225 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -65,767 | 26,471 | -61,016 | -30,330 |
Ownership share of equity method investees' other comprehensive income (loss) | ' | ' | ' | ' |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | -1,724 | 3,118 | 16,508 | 11,471 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | 597 | -856 | -7,290 | -3,118 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | -1,127 | 2,262 | 9,218 | 8,353 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -1,127 | 2,262 | 9,218 | 8,353 |
Defined benefit pension and postretirement plan adjustments | ' | ' | ' | ' |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | 18,142 | -6,472 | 23,193 | 7,648 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | -6,803 | 2,427 | -8,697 | -2,868 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | 11,339 | -4,045 | 14,496 | 4,780 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | 11,339 | -4,045 | 14,496 | 4,780 |
Unrealized gain (loss) on derivative contracts | ' | ' | ' | ' |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | -3,244 | 1,700 | -2,463 | -1,247 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | 1,135 | -685 | 859 | 420 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | -2,109 | 1,015 | -1,604 | -827 |
Less: Other comprehensive loss attributable to noncontrolling interests, Net-of-Tax Amount | -219 | -124 | -151 | -125 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -1,890 | 1,139 | -1,453 | -702 |
Unrealized gain (loss) on debt securities | ' | ' | ' | ' |
Other comprehensive income (loss), Before-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Before-Tax Amount | -552 | 585 | -212 | -1,170 |
Other comprehensive income (loss), Tax Benefit (Expense): | ' | ' | ' | ' |
Total other comprehensive income (loss), Tax Benefit (Expense) | 207 | -220 | 80 | 438 |
Other comprehensive income (loss), Net-of-Tax Amount: | ' | ' | ' | ' |
Total other comprehensive income (loss), Net-of-Tax Amount | -345 | 365 | -132 | -732 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | ($345) | $365 | ($132) | ($732) |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | ($279,298) | ($302,673) | ($298,201) | ($257,850) |
Other comprehensive income (loss) before reclassifications | -59,867 | 22,600 | -45,247 | -26,766 |
Amounts reclassified from AOCI | 2,077 | 3,592 | 6,360 | 8,135 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -57,790 | 26,192 | -38,887 | -18,631 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -337,088 | -276,481 | -337,088 | -276,481 |
Foreign Currency Translation | ' | ' | ' | ' |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | 4,587 | -10,902 | -164 | 45,899 |
Other comprehensive income (loss) before reclassifications | -65,767 | 26,471 | -61,016 | -30,330 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -65,767 | 26,471 | -61,016 | -30,330 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -61,180 | 15,569 | -61,180 | 15,569 |
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | -21,929 | -36,928 | -32,274 | -43,019 |
Other comprehensive income (loss) before reclassifications | -1,127 | 2,262 | 9,218 | 8,353 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -1,127 | 2,262 | 9,218 | 8,353 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -23,056 | -34,666 | -23,056 | -34,666 |
Defined Benefit Pension and Postretirement Plans | ' | ' | ' | ' |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | -255,140 | -243,899 | -258,297 | -252,724 |
Other comprehensive income (loss) before reclassifications | 9,315 | -6,057 | 8,364 | -1,261 |
Amounts reclassified from AOCI | 2,024 | 2,012 | 6,132 | 6,041 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | 11,339 | -4,045 | 14,496 | 4,780 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -243,801 | -247,944 | -243,801 | -247,944 |
Unrealized Gain (Loss) on Derivative Contracts | ' | ' | ' | ' |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | -7,205 | -10,801 | -7,642 | -8,960 |
Other comprehensive income (loss) before reclassifications | -1,963 | -443 | -1,690 | -2,883 |
Amounts reclassified from AOCI | 73 | 1,582 | 237 | 2,181 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -1,890 | 1,139 | -1,453 | -702 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -9,095 | -9,662 | -9,095 | -9,662 |
Unrealized Gain (Loss) on Available-for-Sale Securities | ' | ' | ' | ' |
Changes in accumulated other comprehensive income ("AOCI") balances by component | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of period | 389 | -143 | 176 | 954 |
Other comprehensive income (loss) before reclassifications | -325 | 367 | -123 | -645 |
Amounts reclassified from AOCI | -20 | -2 | -9 | -87 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax Amount | -345 | 365 | -132 | -732 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | $44 | $222 | $44 | $222 |
Other_Comprehensive_Income_Los4
Other Comprehensive Income (Loss) (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in AOCI balances by component (after-tax) attributable to Noncontrolling Interest | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of beginning of year | $3,978 | $8,777 | $7,952 | $8,724 |
Other comprehensive loss before reclassifications attributable to noncontrolling interests | -839 | -403 | -4,822 | -349 |
Amount reclassified from AOCI attributable to noncontrolling interests | 6 | ' | 15 | -1 |
Net other comprehensive loss attributable to noncontrolling interests | -833 | -403 | -4,807 | -350 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of year | 3,145 | 8,374 | 3,145 | 8,374 |
Foreign Currency Translation | ' | ' | ' | ' |
Changes in AOCI balances by component (after-tax) attributable to Noncontrolling Interest | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of beginning of year | 3,843 | 8,777 | 7,885 | 8,723 |
Other comprehensive loss before reclassifications attributable to noncontrolling interests | -614 | -279 | -4,656 | -225 |
Net other comprehensive loss attributable to noncontrolling interests | -614 | -279 | -4,656 | -225 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of year | 3,229 | 8,498 | 3,229 | 8,498 |
Unrealized Gain (Loss) on Derivative Contracts | ' | ' | ' | ' |
Changes in AOCI balances by component (after-tax) attributable to Noncontrolling Interest | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of beginning of year | 135 | ' | 67 | 1 |
Other comprehensive loss before reclassifications attributable to noncontrolling interests | -225 | -124 | -166 | -124 |
Amount reclassified from AOCI attributable to noncontrolling interests | 6 | ' | 15 | -1 |
Net other comprehensive loss attributable to noncontrolling interests | -219 | -124 | -151 | -125 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of year | ($84) | ($124) | ($84) | ($124) |
Other_Comprehensive_Income_Los5
Other Comprehensive Income (Loss) (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Total cost of revenue | ($5,059,960) | ($6,329,685) | ($15,038,616) | ($20,030,907) |
Interest expense | -5,979 | -6,435 | -20,321 | -19,838 |
Corporate general and administrative expense | -35,131 | -46,070 | -129,615 | -110,590 |
Income tax expense | -114,635 | -87,391 | -282,919 | -271,834 |
NET EARNINGS | 114,890 | 217,351 | 418,180 | 637,947 |
Net earnings attributable to noncontrolling interests | 45,388 | 44,305 | 121,814 | 137,031 |
Net of tax and noncontrolling interest | 69,502 | 173,046 | 296,366 | 500,916 |
Defined Benefit Pension and Postretirement Plans | Reclassified out of AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Various accounts, primarily cost of revenue and corporate general and administrative expense | -3,239 | -3,220 | -9,811 | -9,666 |
Income tax expense | 1,215 | 1,208 | 3,679 | 3,625 |
NET EARNINGS | -2,024 | -2,012 | -6,132 | -6,041 |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Income tax expense | 47 | 949 | 164 | 1,315 |
NET EARNINGS | -79 | -1,582 | -252 | -2,180 |
Net earnings attributable to noncontrolling interests | -6 | ' | -15 | 1 |
Net of tax and noncontrolling interest | -73 | -1,582 | -237 | -2,181 |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Commodity and foreign currency contracts | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Total cost of revenue | 293 | -2,112 | 842 | -2,237 |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Interest rate contracts | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Interest expense | -419 | -419 | -1,258 | -1,258 |
Unrealized Gain (Loss) on Available-for-Sale Securities | Reclassified out of AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Corporate general and administrative expense | 31 | 3 | 14 | 139 |
Income tax expense | -11 | -1 | -5 | -52 |
NET EARNINGS | $20 | $2 | $9 | $87 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | ' | ' | ' | ' |
Effective tax rate, continuing operations (as a percent) | 33.40% | 28.70% | 31.40% | 29.90% |
Effective tax rate, discontinued operations (as a percent) | 35.90% | ' | 35.80% | ' |
Cash_Paid_for_Interest_and_Tax1
Cash Paid for Interest and Taxes (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash paid during the year | ' | ' |
Cash paid for interest | $21 | $21 |
Income tax payments, net of refunds | $240 | $153 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amounts attributable to Fluor Corporation: | ' | ' | ' | ' |
Earnings from continuing operations | $183,361,000 | $173,046,000 | $495,408,000 | $500,916,000 |
Loss from discontinued operations, net of taxes | -113,859,000 | ' | -199,042,000 | ' |
Net earnings (in dollars) | 69,502,000 | 173,046,000 | 296,366,000 | 500,916,000 |
Basic EPS: | ' | ' | ' | ' |
Weighted average common shares outstanding (in shares) | 157,332,000 | 162,940,000 | 158,670,000 | 162,715,000 |
Basic EPS attributable to Fluor Corporation: | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $1.17 | $1.06 | $3.12 | $3.08 |
Loss from discontinued operations, net of taxes (in dollars per share) | ($0.73) | ' | ($1.25) | ' |
Net earnings (in dollars per share) | $0.44 | $1.06 | $1.87 | $3.08 |
Diluted EPS: | ' | ' | ' | ' |
Weighted average common shares outstanding (in shares) | 157,332,000 | 162,940,000 | 158,670,000 | 162,715,000 |
Diluted effect: | ' | ' | ' | ' |
Employee stock options, restricted stock units and shares and Value Driver Incentive units (in shares) | 1,726,000 | 1,490,000 | 1,663,000 | 1,218,000 |
Conversion equivalent of dilutive convertible debt (in shares) | 398,000 | 415,000 | 423,000 | 391,000 |
Weighted average diluted shares outstanding (in shares) | 159,456,000 | 164,845,000 | 160,756,000 | 164,324,000 |
Diluted EPS attributable to Fluor Corporation: | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $1.15 | $1.05 | $3.08 | $3.05 |
Loss from discontinued operations, net of taxes (in dollars per share) | ($0.71) | ' | ($1.24) | ' |
Net earnings (in dollars per share) | $0.44 | $1.05 | $1.84 | $3.05 |
Anti-dilutive securities not included above (in shares) | 667,000 | 1,845,000 | 596,000 | 1,914,000 |
Common stock repurchased and cancelled, shares (in shares) | 1,218,503 | ' | 5,431,188 | ' |
Common stock repurchased and cancelled, amount (in dollars) | $87,000,000 | ' | $411,000,000 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Deferred compensation trusts | $396,723,000 | ' | $396,723,000 | ' | $388,408,000 |
Other-than-temporary impairment of available-for-sale securities | ' | ' | 0 | ' | ' |
Proceeds from the sales and maturities of available-for-sale securities | 40,000,000 | 29,000,000 | 157,000,000 | 235,000,000 | ' |
Minimum | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Debt securities maturity period | ' | ' | '1 year | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Debt securities maturity period | ' | ' | '3 years | ' | ' |
Fair Value, Measurements, Recurring | Money market funds | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | 14,000,000 | ' | 14,000,000 | ' | 50,000,000 |
Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | 82,000,000 | ' | 82,000,000 | ' | 119,000,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | 97,000,000 | ' | 97,000,000 | ' | 26,000,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | 245,000,000 | ' | 245,000,000 | ' | 235,000,000 |
Fair Value, Measurements, Recurring | Commercial paper | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | ' | ' | ' | ' | 7,000,000 |
Fair Value, Measurements, Recurring | Other debt securities | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Available-for-sale securities | 3,000,000 | ' | 3,000,000 | ' | ' |
Fair Value, Measurements, Recurring | Total | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Cash and cash equivalents | 13,781,000 | ' | 13,781,000 | ' | 50,081,000 |
Marketable securities, current | 93,289,000 | ' | 93,289,000 | ' | 111,333,000 |
Deferred compensation trusts | 91,200,000 | ' | 91,200,000 | ' | 87,507,000 |
Marketable securities, noncurrent | 334,008,000 | ' | 334,008,000 | ' | 275,402,000 |
Fair Value, Measurements, Recurring | Total | Commodity contracts | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Derivative assets | 89,000 | ' | 89,000 | ' | 438,000 |
Derivative liabilities | 290,000 | ' | 290,000 | ' | 3,000 |
Fair Value, Measurements, Recurring | Total | Foreign currency contracts | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Derivative assets | 196,000 | ' | 196,000 | ' | 855,000 |
Derivative liabilities | 4,491,000 | ' | 4,491,000 | ' | 967,000 |
Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Cash and cash equivalents | 13,781,000 | ' | 13,781,000 | ' | 50,081,000 |
Deferred compensation trusts | 91,200,000 | ' | 91,200,000 | ' | 87,507,000 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Marketable securities, current | 93,289,000 | ' | 93,289,000 | ' | 111,333,000 |
Marketable securities, noncurrent | 334,008,000 | ' | 334,008,000 | ' | 275,402,000 |
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Derivative assets | 89,000 | ' | 89,000 | ' | 438,000 |
Derivative liabilities | 290,000 | ' | 290,000 | ' | 3,000 |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contracts | ' | ' | ' | ' | ' |
Fair value of assets and liabilities measured on recurring basis | ' | ' | ' | ' | ' |
Derivative assets | 196,000 | ' | 196,000 | ' | 855,000 |
Derivative liabilities | $4,491,000 | ' | $4,491,000 | ' | $967,000 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2011 | Sep. 30, 2014 | Feb. 29, 2004 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | 3.375% Senior Notes | 3.375% Senior Notes | 1.5% Convertible Senior Notes | 1.5% Convertible Senior Notes | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value |
Credit facilities | Credit facilities | 3.375% Senior Notes | 3.375% Senior Notes | 1.5% Convertible Senior Notes | 1.5% Convertible Senior Notes | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||
Credit facilities | Credit facilities | 3.375% Senior Notes | 3.375% Senior Notes | 1.5% Convertible Senior Notes | 1.5% Convertible Senior Notes | |||||||||||||||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | $1,132,282 | $1,444,656 | ' | ' | ' | ' | ' | ' | $1,132,282 | $1,444,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | ' | ' | 754,134 | 788,845 | ' | ' | ' | ' | ' | ' | ' | ' | 754,134 | 788,845 | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities, current | ' | ' | ' | ' | 74,034 | 74,690 | ' | ' | ' | ' | ' | ' | ' | ' | 74,034 | 74,690 | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable, including noncurrent portion | ' | ' | ' | ' | 18,817 | 27,602 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,817 | 27,602 |
Debt | ' | ' | ' | ' | ' | ' | $11,498 | $11,441 | $496,935 | $496,604 | $18,324 | $18,398 | ' | ' | ' | ' | $11,498 | $11,441 | $513,021 | $484,204 | $45,016 | $54,027 | ' | ' |
Debt instrument interest rate (as a percent) | 3.38% | 3.38% | 1.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Hedging_Detail
Derivatives and Hedging (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Commodity contracts | Commodity contracts | Foreign currency contracts | Foreign currency contracts | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | |
Maximum | Maximum | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | |||||
Other current assets | Other current assets | Other assets | Other assets | Other accrued liabilities | Other accrued liabilities | Noncurrent liabilities | Other current assets | Other current assets | Other assets | Other accrued liabilities | Other accrued liabilities | Noncurrent liabilities | |||||||
Derivatives, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross notional amount | $9,000,000 | ' | $216,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative contract maturity | ' | 31-May-17 | ' | 30-Sep-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | 285,000 | 1,293,000 | 65,000 | 296,000 | 24,000 | 142,000 | ' | ' | ' | 182,000 | 855,000 | 14,000 | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | $4,781,000 | $970,000 | ' | ' | ' | ' | $249,000 | $3,000 | $41,000 | ' | ' | ' | $3,297,000 | $967,000 | $1,194,000 |
Derivatives_and_Hedging_Detail1
Derivatives and Hedging (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) recognized in OCI | ($1,963) | ($443) | ($1,690) | ($2,883) |
After-tax amount of gain (loss) reclassified from AOCI into earnings | -73 | -1,582 | -237 | -2,181 |
Commodity contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) recognized in OCI | -175 | 47 | -225 | 79 |
Commodity contracts | Total cost of revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) reclassified from AOCI into earnings | -9 | -1 | 61 | 59 |
Foreign currency contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) recognized in OCI | -1,788 | -490 | -1,465 | -2,962 |
Foreign currency contracts | Corporate general and administrative expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net Gains Recognized in Earnings | -1,228 | -81 | 2,123 | 4,064 |
Foreign currency contracts | Total cost of revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) reclassified from AOCI into earnings | 198 | -1,319 | 488 | -1,454 |
Interest rate contracts | Interest expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
After-tax amount of gain (loss) reclassified from AOCI into earnings | ($262) | ($262) | ($786) | ($786) |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Pension Plans | ' | ' | ' | ' |
Components of net periodic pension expense | ' | ' | ' | ' |
Company contributions | ' | ' | $50,000,000 | ' |
Defined Benefit Pension Plans | Minimum | ' | ' | ' | ' |
Components of net periodic pension expense | ' | ' | ' | ' |
Expected future benefit payments | ' | ' | 50,000,000 | ' |
Defined Benefit Pension Plans | Maximum | ' | ' | ' | ' |
Components of net periodic pension expense | ' | ' | ' | ' |
Expected future benefit payments | ' | ' | 60,000,000 | ' |
Defined Benefit U.S. Pension Plans | ' | ' | ' | ' |
Components of net periodic pension expense | ' | ' | ' | ' |
Service cost | 950,000 | 1,613,000 | 2,850,000 | 4,840,000 |
Interest cost | 7,919,000 | 7,275,000 | 23,756,000 | 21,825,000 |
Expected return on assets | -7,527,000 | -7,744,000 | -22,579,000 | -23,232,000 |
Amortization of prior service cost | 188,000 | 26,000 | 563,000 | 77,000 |
Recognized net actuarial loss | 1,109,000 | 1,510,000 | 3,326,000 | 4,530,000 |
Net periodic pension expense | 2,639,000 | 2,680,000 | 7,916,000 | 8,040,000 |
Accumulated other comprehensive loss, retirement benefits | ' | ' | ' | ' |
Unrecognized actuarial losses included in accumulated other comprehensive loss | 160,000,000 | ' | 160,000,000 | ' |
Defined Benefit Non-U.S. Pension Plans | ' | ' | ' | ' |
Components of net periodic pension expense | ' | ' | ' | ' |
Service cost | 4,071,000 | 3,809,000 | 12,400,000 | 11,505,000 |
Interest cost | 8,702,000 | 7,989,000 | 26,387,000 | 23,925,000 |
Expected return on assets | -12,120,000 | -11,527,000 | -36,729,000 | -34,507,000 |
Recognized net actuarial loss | 1,943,000 | 1,683,000 | 5,923,000 | 5,058,000 |
Net periodic pension expense | $2,596,000 | $1,954,000 | $7,981,000 | $5,981,000 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
Sep. 30, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 29, 2004 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
3.375% Senior Notes due September 15, 2021 | 3.375% Senior Notes due September 15, 2021 | 3.375% Senior Notes due September 15, 2021 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | Credit facilities | Credit facilities | Credit facilities | Credit facilities | Credit facilities | Credit facilities | Credit facilities | Credit facilities | |
Change of control triggering event | Maximum | Maximum | instrument | May 2014 Revolving Loan and Letter of Credit Facility Agreement | May 2014 Revolving Loan and Letter of Credit Facility Agreement | May 2014 Revolving Loan and Letter of Credit Facility Agreement | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended | Revolving advances | ||||||
Maximum | Maximum | Maximum | Maximum | |||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
Financing Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $3,500,000,000 | $1,700,000,000 | ' | ' | $1,800,000,000 | ' | ' | $1,750,000,000 |
Maximum borrowing capacity additional amount, subject to certain conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | 500,000,000 | ' | ' | ' |
Ratio of consolidated debt to tangible net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' |
Aggregate amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | 750,000,000 | ' |
Issue price of notes | 500,000,000 | ' | ' | 330,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate (as a percent) | 3.38% | 3.38% | ' | 1.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from notes | 492,000,000 | ' | ' | 323,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price as a percentage of principal | ' | 100.00% | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, amount of original debt | ' | ' | ' | ' | ' | ' | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversions (in shares) | ' | ' | ' | ' | 1,750 | 1,562 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Details1
Financing Arrangements (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 29, 2004 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Credit facilities | Credit facilities | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | 1.5% Convertible Senior Notes due February 15, 2024 | ||||
Maximum | Maximum | Maximum | Maximum | ||||||||
Financing Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of the equity component | ' | ' | ' | ' | ' | $19,516,000 | $19,519,000 | ' | ' | ' | ' |
Principal amount and carrying value of the liability component | 29,822,000 | 29,839,000 | ' | ' | ' | 18,324,000 | 18,398,000 | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate per $1,000 principal amount of Notes (in shares) | ' | ' | ' | ' | ' | 36.6729 | ' | ' | ' | ' | ' |
Debt instrument, coupon interest | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 200,000 | 200,000 |
If-converted value | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' |
Ouststanding borrowings | ' | ' | ' | $11,000,000 | $11,000,000 | ' | ' | ' | ' | ' | ' |
StockBased_Plans_Details
Stock-Based Plans (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Restricted stock units and restricted shares | Executives and directors | ' | ' |
Stock Plans | ' | ' |
Share-based compensation arrangement by share-based payment award, restricted stock units and restricted shares (in shares) | 370,014 | 477,731 |
Share-based compensation arrangement by share-based payment award, restricted stock units and restricted shares, weighted-average per share price (in dollars per share) | $79.06 | $61.45 |
Restricted stock units | Executives | ' | ' |
Stock Plans | ' | ' |
Share-based compensation arrangement by share-based payment award, award vesting period | '3 years | '3 years |
Stock Options | Executives | ' | ' |
Stock Plans | ' | ' |
Share-based compensation arrangement by share-based payment award, options awarded (in shares) | 684,486 | 884,574 |
Share-based compensation arrangement by share-based payment award, options awarded weighted average exercise price (in dollars per share) | $79.19 | $61.45 |
Share-based compensation arrangement by share-based payment award, award vesting period | '3 years | '3 years |
Share-based compensation arrangement by share-based payment award, award expiration period | '10 years | '10 years |
Performance-based VDI units | Executives | ' | ' |
Stock Plans | ' | ' |
Share-based compensation arrangement by share-based payment award, restricted stock units and restricted shares (in shares) | 315,551 | 385,742 |
Share-based compensation arrangement by share-based payment award, restricted stock units and restricted shares, weighted-average per share price (in dollars per share) | $79.19 | $61.45 |
Share-based compensation arrangement by share-based payment award, award vesting period | '3 years | '3 years |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Noncontrolling Interests | ' | ' | ' | ' |
Net earnings attributable to noncontrolling interests | $45,388 | $44,305 | $121,814 | $137,031 |
Distributions paid to noncontrolling interest holders | ' | ' | 75,510 | 79,549 |
Capital contribution by noncontrolling interests | ' | ' | $2,210 | $1,549 |
Contingencies_and_Commitments_
Contingencies and Commitments (Details) (St. Joe and Doe Run, USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2011 | Jun. 30, 2014 | Oct. 31, 2014 |
St. Joe and Doe Run December 2010 litigation | St. Joe and Doe Run December 2010 litigation, December 2011 judgment, appeal and opinion | St. Joe and Doe Run December 2010 litigation, December 2011 judgment, appeal and opinion | |||
plaintiff | Minimum | ||||
plaintiff | |||||
Litigation and dispute resolution | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | 16 | ' | 16 |
Compensatory and economic damages | ' | ' | $38.50 | $38.50 | ' |
Punitive damages reversed and remanded back to trial court | ' | ' | ' | 240 | ' |
Punitive damages | ' | ' | 320 | 80 | ' |
Loss from discontinued operations in connection with reassessment of estimated loss contingencies, net of taxes | $114 | $199 | ' | ' | ' |
Contingencies_and_Commitments_1
Contingencies and Commitments (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Recognized claims against clients | ' | ' |
Contracts receivable, claims and uncertain amounts | $27 | $0 |
Guarantees_Details
Guarantees (Details) (Performance Guarantee, USD $) | Sep. 30, 2014 |
In Billions, unless otherwise specified | |
Performance Guarantee | ' |
Guarantees | ' |
Estimated performance guarantees outstanding | $18 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Partnership | Majority | ' | ' |
Variable interest entity information | ' | ' |
Entity's interest in joint venture (as a percent) | 50.00% | ' |
Joint ventures | Majority | ' | ' |
Variable interest entity information | ' | ' |
Entity's interest in joint venture (as a percent) | 50.00% | ' |
Unconsolidated variable interest entities | ' | ' |
Variable interest entity information | ' | ' |
Carrying value of the unconsolidated VIEs | $105,000,000 | $122,000,000 |
Unconsolidated variable interest entities | Future funding commitment | ' | ' |
Variable interest entity information | ' | ' |
Future funding amount | 20,000,000 | ' |
Consolidated variable interest entities | ' | ' |
Variable interest entity information | ' | ' |
Carrying value of assets | 1,100,000,000 | 1,200,000,000 |
Carrying value of liabilities | $509,000,000 | $731,000,000 |
Operating_Information_by_Segme2
Operating Information by Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | $5,440,081,000 | $6,684,216,000 | $16,076,381,000 | $21,060,168,000 |
Oil and Gas Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 3,231,600,000 | 2,892,700,000 | 8,778,800,000 | 8,518,500,000 |
Industrial and Infrastructure Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 1,216,000,000 | 2,665,000,000 | 4,370,600,000 | 8,879,500,000 |
Government Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 615,100,000 | 675,200,000 | 1,806,900,000 | 2,101,000,000 |
Global Services Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 140,500,000 | 149,700,000 | 428,300,000 | 454,000,000 |
Power Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 236,900,000 | 301,600,000 | 691,800,000 | 1,107,200,000 |
Intercompany | Global Services Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total external revenue | 131,000,000 | 128,000,000 | 406,000,000 | 371,000,000 |
Reportable segments | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 334,700,000 | 310,600,000 | 915,900,000 | 892,200,000 |
Reportable segments | Oil and Gas Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 178,600,000 | 108,300,000 | 483,900,000 | 319,600,000 |
Reportable segments | Industrial and Infrastructure Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 101,400,000 | 132,400,000 | 298,800,000 | 388,700,000 |
Reportable segments | Government Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 29,600,000 | 37,800,000 | 56,000,000 | 92,700,000 |
Reportable segments | Global Services Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 19,400,000 | 24,500,000 | 58,000,000 | 79,800,000 |
Reportable segments | Power Segment | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Total segment profit (loss) | 5,700,000 | 7,600,000 | 19,200,000 | 11,400,000 |
Reportable segments | Power Segment | NuScale | ' | ' | ' | ' |
Operating information by reportable segment | ' | ' | ' | ' |
Research and development expense, net of qualified reimbursable expenditures | $17,000,000 | $13,000,000 | $33,000,000 | $41,000,000 |
Operating_Information_by_Segme3
Operating Information by Segment (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of total segment profit to earnings from continuing operations before taxes | ' | ' | ' | ' |
Corporate general and administrative expense | ($35,131,000) | ($46,070,000) | ($129,615,000) | ($110,590,000) |
Interest income (expense), net | -1,600,000 | -3,700,000 | -8,000,000 | -8,900,000 |
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | 343,384,000 | 304,742,000 | 900,141,000 | 909,781,000 |
Reportable segments | ' | ' | ' | ' |
Reconciliation of total segment profit to earnings from continuing operations before taxes | ' | ' | ' | ' |
Total segment profit | 334,700,000 | 310,600,000 | 915,900,000 | 892,200,000 |
Reconciling item | Attributable to Noncontrolling Interest: | ' | ' | ' | ' |
Reconciliation of total segment profit to earnings from continuing operations before taxes | ' | ' | ' | ' |
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $45,400,000 | $43,900,000 | $121,800,000 | $137,100,000 |
Operating_Information_by_Segme4
Operating Information by Segment (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | $8,048,705 | $8,323,850 |
Reportable segments | Oil and Gas Segment | ' | ' |
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | 1,809,200 | 1,643,800 |
Reportable segments | Industrial and Infrastructure Segment | ' | ' |
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | 793,700 | 909,700 |
Reportable segments | Government Segment | ' | ' |
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | 437,300 | 580,600 |
Reportable segments | Global Services Segment | ' | ' |
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | 830,000 | 758,900 |
Reportable segments | Power Segment | ' | ' |
Operations by Business Segment and Geographical Area | ' | ' |
Total assets by segment | $132,300 | $154,900 |