Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | FLUOR CORP | |
Entity Central Index Key | 1124198 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 146,572,661 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS | ||
TOTAL REVENUE | $4,548,649 | $5,384,636 |
TOTAL COST OF REVENUE | 4,251,189 | 5,072,304 |
OTHER (INCOME) AND EXPENSES | ||
Corporate general and administrative expense | 41,110 | 37,773 |
Interest expense | 12,168 | 6,897 |
Interest income | -4,696 | -3,806 |
Total cost and expenses | 4,299,771 | 5,113,168 |
EARNINGS BEFORE TAXES | 248,878 | 271,468 |
INCOME TAX EXPENSE | 83,274 | 78,158 |
NET EARNINGS | 165,604 | 193,310 |
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 21,525 | 44,236 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | $144,079 | $149,074 |
BASIC EARNINGS PER SHARE | $0.98 | $0.93 |
DILUTED EARNINGS PER SHARE | $0.96 | $0.92 |
SHARES USED TO CALCULATE EARNINGS PER SHARE | ||
BASIC (in shares) | 147,731 | 160,213 |
DILUTED (in shares) | 149,915 | 162,360 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $0.21 | $0.21 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||
NET EARNINGS | $165,604 | $193,310 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||
Foreign currency translation adjustment | -48,724 | -12,729 |
Ownership share of equity method investees' other comprehensive loss | -4,481 | -1,998 |
Defined benefit pension and postretirement plan adjustments | 2,688 | 1,648 |
Unrealized gain (loss) on derivative contracts | 894 | -429 |
Unrealized gain (loss) on available-for-sale securities | 609 | -18 |
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAX | -49,014 | -13,526 |
COMPREHENSIVE INCOME | 116,590 | 179,784 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 22,116 | 39,897 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO FLUOR CORPORATION | $94,474 | $139,887 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents ($342,823 and $352,996 related to variable interest entities ("VIE")) | $1,811,293 | $1,993,125 |
Marketable securities, current ($70,065 and $14,082 related to VIEs) | 145,568 | 105,131 |
Accounts and notes receivable, net ($209,058 and $193,565 related to VIEs) | 1,256,292 | 1,471,705 |
Contract work in progress ($200,180 and $166,334 related to VIEs) | 1,486,943 | 1,587,275 |
Deferred taxes | 320,147 | 340,223 |
Other current assets ($27,868 and $38,848 related to VIEs) | 359,010 | 260,588 |
Total current assets | 5,379,253 | 5,758,047 |
Marketable securities, noncurrent | 254,761 | 343,644 |
Property, plant and equipment ("PP&E") ((net of accumulated depreciation of $1,071,024 and $1,081,198) (net PP&E of $81,181 and $77,579 related to VIEs)) | 965,935 | 980,263 |
Investments and goodwill | 335,986 | 302,757 |
Deferred taxes | 106,049 | 201,004 |
Deferred compensation trusts | 371,418 | 405,022 |
Other ($24,796 and $24,003 related to VIEs) | 205,794 | 203,692 |
TOTAL ASSETS | 7,619,196 | 8,194,429 |
CURRENT LIABILITIES | ||
Trade accounts payable ($202,316 and $213,837 related to VIEs) | 1,251,950 | 1,422,084 |
Convertible senior notes and other borrowings | 27,738 | 28,742 |
Advance billings on contracts ($188,732 and $151,321 related to VIEs) | 586,020 | 569,418 |
Accrued salaries, wages and benefits ($51,113 and $51,749 related to VIEs) | 697,174 | 725,586 |
Other accrued liabilities ($26,130 and $21,709 related to VIEs) | 256,814 | 585,023 |
Total current liabilities | 2,819,696 | 3,330,853 |
LONG-TERM DEBT DUE AFTER ONE YEAR | 992,231 | 991,685 |
NONCURRENT LIABILITIES | 606,013 | 648,061 |
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 - 146,976,144 and 148,633,640 shares in 2015 and 2014, respectively | 1,470 | 1,486 |
Accumulated other comprehensive loss | -533,817 | -484,212 |
Retained earnings | 3,601,071 | 3,593,597 |
Total shareholders' equity | 3,068,724 | 3,110,871 |
Noncontrolling interests | 132,532 | 112,959 |
Total equity | 3,201,256 | 3,223,830 |
TOTAL LIABILITIES AND EQUITY | $7,619,196 | $8,194,429 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEET | ||
Property, plant and equipment, accumulated depreciation | $1,071,024 | $1,081,198 |
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) | 146,976,144 | 148,633,640 |
Common stock, outstanding shares (in shares) | 146,976,144 | 148,633,640 |
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | 1,811,293 | 1,993,125 |
Marketable securities, current | 145,568 | 105,131 |
Accounts and notes receivable | 1,256,292 | 1,471,705 |
Contract work in progress | 1,486,943 | 1,587,275 |
Other current assets | 359,010 | 260,588 |
Net property, plant and equipment | 965,935 | 980,263 |
Other | 205,794 | 203,692 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 1,251,950 | 1,422,084 |
Advance billings on contracts | 586,020 | 569,418 |
Accrued salaries, wages and benefits | 697,174 | 725,586 |
Other accrued liabilities | 256,814 | 585,023 |
Consolidated variable interest entities | ||
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | 342,823 | 352,996 |
Marketable securities, current | 70,065 | 14,082 |
Accounts and notes receivable | 209,058 | 193,565 |
Contract work in progress | 200,180 | 166,334 |
Other current assets | 27,868 | 38,848 |
Net property, plant and equipment | 81,181 | 77,579 |
Other | 24,796 | 24,003 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 202,316 | 213,837 |
Advance billings on contracts | 188,732 | 151,321 |
Accrued salaries, wages and benefits | 51,113 | 51,749 |
Other accrued liabilities | $26,130 | $21,709 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $165,604 | $193,310 |
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities: | ||
Depreciation of fixed assets | 47,803 | 48,492 |
Amortization of intangibles | 223 | 223 |
(Earnings) loss from equity method investments, net of distributions | -7,386 | 2,784 |
Gain on sale of property, plant and equipment | -8,841 | -5,108 |
Restricted stock and stock option amortization | 12,546 | 10,792 |
Deferred compensation trust | 33,604 | -1,946 |
Deferred compensation obligation | 6,164 | 4,649 |
Deferred taxes | 143,601 | 23,605 |
Excess tax benefit from stock-based plans | 867 | -3,115 |
Net retirement plan accrual (contributions) | 3,391 | -7,306 |
Changes in operating assets and liabilities | -52,775 | -76,456 |
Cash outflows from discontinued operations | -306,490 | |
Other items | 971 | -3,210 |
Cash provided by operating activities | 39,282 | 186,714 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | -147,068 | -134,264 |
Proceeds from the sales and maturities of marketable securities | 194,635 | 88,643 |
Capital expenditures | -73,883 | -66,628 |
Proceeds from disposal of property, plant and equipment | 29,905 | 24,557 |
Investments in partnerships and joint ventures | -21,537 | -4,978 |
Other items | -197 | -1,070 |
Cash utilized by investing activities | -18,145 | -93,740 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | -111,658 | -192,301 |
Dividends paid | -32,363 | -25,966 |
Distributions paid to noncontrolling interests | -3,508 | -15,898 |
Capital contributions by noncontrolling interests | 698 | 46 |
Taxes paid on vested restricted stock | -7,588 | -9,979 |
Stock options exercised | 923 | 14,070 |
Excess tax benefit from stock-based plans | -867 | 3,115 |
Other items | 393 | 1,896 |
Cash utilized by financing activities | -153,970 | -225,017 |
Effect of exchange rate changes on cash | -48,999 | -9,481 |
Decrease in cash and cash equivalents | -181,832 | -141,524 |
Cash and cash equivalents at beginning of period | 1,993,125 | 2,283,582 |
Cash and cash equivalents at end of period | $1,811,293 | $2,142,058 |
Principles_of_Consolidation
Principles of Consolidation | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014 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 months ended March 31, 2015 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 March 31, 2015 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 2014 have been reclassified to conform to the 2015 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 | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (2)Recent Accounting Pronouncements |
New accounting pronouncements implemented by the company during the first quarter of 2015 or requiring implementation in future periods are discussed below or elsewhere in the notes, where appropriate. | |
In the first quarter of 2015, the company adopted Accounting Standards Update (“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. The adoption of ASU 2014-11 did not have a material impact on the company’s financial position, results of operations or cash flows. | |
In the first of 2015, the company adopted 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. The adoption of ASU 2014-08 did not have a material impact on the company’s financial position, results of operations or cash flows. | |
In the first quarter of 2015, the company adopted 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. The adoption of ASU 2014-05 did not have a material impact on the company’s financial position, results of operations or cash flows. | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Management does not expect the adoption of ASU 2015-05 to have a material impact on the company’s financial position, result of operations or cash flows. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU changes the presentation of debt issuance costs on the balance sheet by requiring entities to present such costs as a direct deduction from the related debt liability rather than as an asset. ASU 2015-03 is effective for interim and annual reporting periods beginning after December 15, 2015. Management does not expect the adoption of ASU 2015-03 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis.” This ASU amends the consolidation guidance for VIEs and general partners’ investments in limited partnerships and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. Management does not expect the adoption of ASU 2015-02 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In January 2015, the FASB issued ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” Under this ASU, an entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. ASU 2015-01 is effective for interim and annual reporting periods beginning after December 15, 2015 with early adoption permitted. Upon adoption, the company may elect prospective or retrospective application. Management does not expect the adoption of ASU 2015-01 to have a material impact on the company’s financial position, results of operations or cash flows. | |
In August 2014, the FASB issued 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 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 currently 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. | |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
(3)Other Comprehensive Income (Loss) | ||||||||||||||||||||
The tax effects of the components of other comprehensive income (loss) (“OCI”) are as follows: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||
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 | $ | (78,271 | ) | $ | 29,547 | $ | (48,724 | ) | $ | (17,800 | ) | $ | 5,071 | $ | (12,729 | ) | ||||
Ownership share of equity method investees’ other comprehensive loss | (6,002 | ) | 1,521 | (4,481 | ) | (944 | ) | (1,054 | ) | (1,998 | ) | |||||||||
Defined benefit pension and postretirement plan adjustments | 4,301 | (1,613 | ) | 2,688 | 2,636 | (988 | ) | 1,648 | ||||||||||||
Unrealized gain (loss) on derivative contracts | 1,414 | (520 | ) | 894 | (645 | ) | 216 | (429 | ) | |||||||||||
Unrealized gain (loss) on available-for-sale securities | 974 | (365 | ) | 609 | (29 | ) | 11 | (18 | ) | |||||||||||
Total other comprehensive loss | (77,584 | ) | 28,570 | (49,014 | ) | (16,782 | ) | 3,256 | (13,526 | ) | ||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 591 | — | 591 | (4,339 | ) | — | (4,339 | ) | ||||||||||||
Other comprehensive loss attributable to Fluor Corporation | $ | (78,175 | ) | $ | 28,570 | $ | (49,605 | ) | $ | (12,443 | ) | $ | 3,256 | $ | (9,187 | ) | ||||
The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended March 31, 2015 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | on | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Derivative | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Contracts | Securities | Net | |||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of December 31, 2014 | $ | (119,416 | ) | $ | (30,436 | ) | $ | (325,145 | ) | $ | (8,954 | ) | $ | (261 | ) | $ | (484,212 | ) | ||
Other comprehensive income (loss) before reclassifications | (49,244 | ) | (4,481 | ) | — | 596 | 678 | (52,451 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | 2,688 | 227 | (69 | ) | 2,846 | |||||||||||||
Net other comprehensive income (loss) | (49,244 | ) | (4,481 | ) | 2,688 | 823 | 609 | (49,605 | ) | |||||||||||
Balance as of March 31, 2015 | $ | (168,660 | ) | $ | (34,917 | ) | $ | (322,457 | ) | $ | (8,131 | ) | $ | 348 | $ | (533,817 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1,328 | $ | — | $ | — | $ | (685 | ) | $ | — | $ | 643 | |||||||
Other comprehensive income (loss) before reclassifications | 520 | — | — | (3 | ) | — | 517 | |||||||||||||
Amounts reclassified from AOCI | — | — | — | 74 | — | 74 | ||||||||||||||
Net other comprehensive income | 520 | — | — | 71 | — | 591 | ||||||||||||||
Balance as of March 31, 2015 | $ | 1,848 | $ | — | $ | — | $ | (614 | ) | $ | — | $ | 1,234 | |||||||
The changes in AOCI balances by component (after-tax) for the three months ended March 31, 2014 are as follows: | ||||||||||||||||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | on | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Derivative | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Contracts | Securities | Net | |||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | (164 | ) | $ | (32,274 | ) | $ | (258,297 | ) | $ | (7,642 | ) | $ | 176 | $ | (298,201 | ) | |||
Other comprehensive loss before reclassifications | (8,451 | ) | (1,998 | ) | (403 | ) | (544 | ) | (26 | ) | (11,422 | ) | ||||||||
Amounts reclassified from AOCI | — | — | 2,051 | 176 | 8 | 2,235 | ||||||||||||||
Net other comprehensive income (loss) | (8,451 | ) | (1,998 | ) | 1,648 | (368 | ) | (18 | ) | (9,187 | ) | |||||||||
Balance as of March 31, 2014 | $ | (8,615 | ) | $ | (34,272 | ) | $ | (256,649 | ) | $ | (8,010 | ) | $ | 158 | $ | (307,388 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,885 | $ | — | $ | — | $ | 67 | $ | — | $ | 7,952 | ||||||||
Other comprehensive loss before reclassifications | (4,278 | ) | — | — | (64 | ) | — | (4,342 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 3 | — | 3 | ||||||||||||||
Net other comprehensive loss | (4,278 | ) | — | — | (61 | ) | — | (4,339 | ) | |||||||||||
Balance as of March 31, 2014 | $ | 3,607 | $ | — | $ | — | $ | 6 | $ | — | $ | 3,613 | ||||||||
The significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Earnings are as follows: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Location in Condensed | March 31, | |||||||||||||||||||
(in thousands) | Consolidated Statement of Earnings | 2015 | 2014 | |||||||||||||||||
Component of AOCI: | ||||||||||||||||||||
Defined benefit pension plan adjustments | Various accounts(1) | $ | (4,301 | ) | $ | (3,281 | ) | |||||||||||||
Income tax benefit | Income tax expense | 1,613 | 1,230 | |||||||||||||||||
Net of tax | $ | (2,688 | ) | $ | (2,051 | ) | ||||||||||||||
Unrealized gain (loss) on derivative contracts: | ||||||||||||||||||||
Commodity and foreign currency contracts | Total cost of revenue | $ | (62 | ) | $ | 129 | ||||||||||||||
Interest rate contracts | Interest expense | (419 | ) | (419 | ) | |||||||||||||||
Income tax benefit (net) | Income tax expense | 180 | 111 | |||||||||||||||||
Net of tax | (301 | ) | (179 | ) | ||||||||||||||||
Less: Noncontrolling interests | Net earnings attributable to noncontrolling interests | (74 | ) | (3 | ) | |||||||||||||||
Net of tax and noncontrolling interests | $ | (227 | ) | $ | (176 | ) | ||||||||||||||
Unrealized gain (loss) on available-for-sale securities | Corporate general and administrative expense | $ | 110 | $ | (13 | ) | ||||||||||||||
Income tax benefit (expense) | Income tax expense | (41 | ) | 5 | ||||||||||||||||
Net of tax | $ | 69 | $ | (8 | ) | |||||||||||||||
-1 | Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense. | |||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | |
Income Taxes | (4)Income Taxes |
The effective tax rates for the three months ended March 31, 2015 and 2014 were 33.5 percent and 28.8 percent, respectively. Both periods benefited from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company. The lower effective tax rate for the three months ended March 31, 2014 was primarily due to the recognition of a deferred tax benefit for foreign taxes previously paid on certain unremitted foreign earnings, as well as higher earnings attributable to noncontrolling interests. | |
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 2008. | |
Cash_Paid_for_Interest_and_Tax
Cash Paid for Interest and Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Cash Paid for Interest and Taxes | |
Cash Paid for Interest and Taxes | (5)Cash Paid for Interest and Taxes |
Cash paid for interest was $10 million for both the three months ended March 31, 2015 and 2014. Income tax payments, net of refunds, were $62 million and $37 million during the three-month periods ended March 31, 2015 and 2014, respectively. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share | ||||||||
Earnings Per Share | (6)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 months ended March 31, 2015 and 2014 are presented below: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands, except per share amounts) | 2015 | 2014 | ||||||
Net earnings attributable to Fluor Corporation | $ | 144,079 | $ | 149,074 | ||||
Basic EPS attributable to Fluor Corporation: | ||||||||
Weighted average common shares outstanding | 147,731 | 160,213 | ||||||
Basic earnings per share | $ | 0.98 | $ | 0.93 | ||||
Diluted EPS attributable to Fluor Corporation: | ||||||||
Weighted average common shares outstanding | 147,731 | 160,213 | ||||||
Diluted effect: | ||||||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units | 1,825 | 1,709 | ||||||
Conversion equivalent of dilutive convertible debt | 359 | 438 | ||||||
Weighted average diluted shares outstanding | 149,915 | 162,360 | ||||||
Diluted earnings per share | $ | 0.96 | $ | 0.92 | ||||
Anti-dilutive securities not included above | 3,162 | 440 | ||||||
During the three months ended March 31, 2015 and 2014, the company repurchased and cancelled 1,939,997 and 2,461,800 shares of its common stock, respectively, under its stock repurchase program for $112 million and $192 million, respectively. | ||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | (7)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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
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) | $ | 7,269 | $ | 7,269 | $ | — | $ | — | $ | 14,419 | $ | 14,419 | $ | — | $ | — | ||||||||||
Marketable securities, current(2) | 64,937 | — | 64,937 | — | 80,706 | — | 80,706 | — | ||||||||||||||||||
Deferred compensation trusts(3) | 54,913 | 54,913 | — | — | 94,893 | 94,893 | — | — | ||||||||||||||||||
Marketable securities, noncurrent(4) | 254,761 | — | 254,761 | — | 343,644 | — | 343,644 | — | ||||||||||||||||||
Derivative assets(5) | ||||||||||||||||||||||||||
Commodity contracts | 315 | — | 315 | — | 561 | — | 561 | — | ||||||||||||||||||
Foreign currency contracts | 2,710 | — | 2,710 | — | 180 | — | 180 | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivative liabilities(5) | ||||||||||||||||||||||||||
Commodity contracts | $ | 2,000 | $ | — | $ | 2,000 | $ | — | $ | 2,290 | $ | — | $ | 2,290 | $ | — | ||||||||||
Foreign currency contracts | 3,670 | — | 3,670 | — | 4,392 | — | 4,392 | — | ||||||||||||||||||
-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 and corporate 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 and corporate 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 8 for the classification of commodity and foreign currency contracts in the Condensed Consolidated Balance Sheet. Commodity 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 March 31, 2015: money market funds of $7 million, U.S. agency securities of $56 million, U.S. Treasury securities of $60 million and corporate debt securities of $204 million. As of December 31, 2014, available-for-sale securities consisted of money market funds of $14 million, U.S. agency securities of $73 million, U.S. Treasury securities of $107 million and corporate debt securities of $245 million. The amortized cost of these available-for-sale securities is not materially different from the fair value. During the three months ended March 31, 2015 and 2014, proceeds from sales and maturities of available-for-sale securities were $183 million and $64 million, respectively. | ||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in thousands) | Hierarchy | Value | Value | Value | Value | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash(1) | Level 1 | $ | 1,034,253 | $ | 1,034,253 | $ | 1,224,834 | $ | 1,224,834 | |||||||||||||||||
Cash equivalents(2) | Level 2 | 769,771 | 769,771 | 753,872 | 753,872 | |||||||||||||||||||||
Marketable securities, current(3) | Level 2 | 80,631 | 80,631 | 24,425 | 24,425 | |||||||||||||||||||||
Notes receivable, including noncurrent portion(4) | Level 3 | 17,614 | 17,614 | 19,284 | 19,284 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
3.375% Senior Notes(5) | Level 2 | $ | 497,155 | $ | 519,925 | $ | 497,045 | $ | 510,465 | |||||||||||||||||
3.5% Senior Notes(5) | Level 2 | 494,774 | 515,545 | 494,640 | 498,914 | |||||||||||||||||||||
1.5% Convertible Senior Notes(5) | Level 2 | 18,324 | 38,333 | 18,324 | 40,826 | |||||||||||||||||||||
Other borrowings(6) | Level 2 | 9,716 | 9,716 | 10,418 | 10,418 | |||||||||||||||||||||
-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, 3.5% 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 | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Derivatives and Hedging | ||||||||||||||||||
Derivatives and Hedging | (8)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 March 31, 2015, the company had total gross notional amounts of $636 million of foreign currency contracts and $10 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 December 2017. 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 months ended March 31, 2015 and 2014. | ||||||||||||||||||
The fair values of derivatives designated as hedging instruments under ASC 815 as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Balance Sheet | March 31, | December 31, | Balance Sheet | March 31, | December 31, | |||||||||||||
(in thousands) | Location | 2015 | 2014 | Location | 2015 | 2014 | ||||||||||||
Commodity contracts | Other current assets | $ | 106 | $ | 365 | Other accrued liabilities | $ | 1,057 | $ | 1,362 | ||||||||
Foreign currency contracts | Other current assets | 1,422 | 128 | Other accrued liabilities | 1,755 | 3,721 | ||||||||||||
Commodity contracts | Other assets | 209 | 196 | Noncurrent liabilities | 943 | 928 | ||||||||||||
Foreign currency contracts | Other assets | 1,288 | 52 | Noncurrent liabilities | 1,915 | 671 | ||||||||||||
Total | $ | 3,025 | $ | 741 | $ | 5,670 | $ | 6,682 | ||||||||||
The pre-tax net gains (losses) recognized in earnings associated with the hedging instruments designated as fair value hedges for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
March 31, | ||||||||||||||||||
Fair Value Hedges (in thousands) | Location of Gain | 2015 | 2014 | |||||||||||||||
Foreign currency contracts | Corporate general and administrative expense | $ | (1,154 | ) | $ | 1,259 | ||||||||||||
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 and reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges for the three months ended March 31, 2015 and 2014 was as follows: | ||||||||||||||||||
After-Tax Amount of Gain | After-Tax Amount of Gain | |||||||||||||||||
(Loss) Recognized in OCI | (Loss) Reclassified from | |||||||||||||||||
AOCI into Earnings | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||
March 31, | March 31, | |||||||||||||||||
Cash Flow Hedges (in thousands) | 2015 | 2014 | Location of Gain (Loss) | 2015 | 2014 | |||||||||||||
Commodity contracts | $ | (112 | ) | $ | (143 | ) | Total cost of revenue | $ | (91 | ) | $ | 78 | ||||||
Foreign currency contracts | 708 | (401 | ) | Total cost of revenue | 126 | 8 | ||||||||||||
Interest rate contracts | — | — | Interest expense | (262 | ) | (262 | ) | |||||||||||
Total | $ | 596 | $ | (544 | ) | $ | (227 | ) | $ | (176 | ) | |||||||
Retirement_Benefits
Retirement Benefits | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Retirement Benefits | ||||||||||||||
Retirement Benefits | (9)Retirement Benefits | |||||||||||||
Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans included the following components: | ||||||||||||||
U.S. Pension Plan | Non-U.S. Pension Plans | |||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Service cost | $ | 1,700 | $ | 950 | $ | 5,202 | $ | 4,153 | ||||||
Interest cost | 3,799 | 7,919 | 6,641 | 8,804 | ||||||||||
Expected return on assets | (5,275 | ) | (7,526 | ) | (12,305 | ) | (12,248 | ) | ||||||
Amortization of prior service cost | 217 | 187 | (206 | ) | — | |||||||||
Recognized net actuarial loss | 2,351 | 1,109 | 1,939 | 1,984 | ||||||||||
Net periodic pension expense | $ | 2,792 | $ | 2,639 | $ | 1,271 | $ | 2,693 | ||||||
The company currently expects to contribute up to $100 million into its defined benefit pension plans during 2015, which is expected to be in excess of the minimum funding required and includes estimated additional funding to settle the U.S. defined benefit pension plan (the “U.S. plan”). During the three months ended March 31, 2015, contributions of approximately $0.9 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. plan as of December 31, 2011 and craft participants of the U.S. plan as of December 31, 2013. During the fourth quarter of 2014, the company’s Board of Directors approved an amendment to terminate the U.S. plan effective December 31, 2014. The U.S. plan is expected to be settled in late 2015, subject to regulatory approval. The company’s ultimate settlement obligation will depend upon the nature and timing of participant settlements and prevailing market conditions. Upon settlement, the company expects to recognize additional expense, consisting of unrecognized actuarial losses included in AOCI that totaled approximately $271 million as of March 31, 2015, adjusted for the difference between the ultimate settlement obligation and the company’s accrued pension liability, which could 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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Financing Arrangements | ||||||||
Financing Arrangements | (10)Financing Arrangements | |||||||
As of March 31, 2015, the company had a combination of committed and uncommitted lines of credit that totaled $5.3 billion. These lines may be used for revolving loans, letters of credit and/or general purposes. The committed lines of credit consist of a $1.7 billion Revolving Loan and Letter of Credit Facility and a $1.8 billion Revolving Loan and Letter of Credit Facility. Both facilities mature in May 2019. The company may utilize up to $1.75 billion in the aggregate of the combined $3.5 billion committed lines of credit for revolving advances. Each of the credit facilities may be increased up to an additional $500 million subject to certain conditions, and contain 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. Borrowings under both facilities bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin. | ||||||||
In November 2014, the company issued $500 million of 3.5% Senior Notes (the “2014 Notes”) due December 15, 2024 and received proceeds of $491 million, net of underwriting discounts. Interest on the 2014 Notes is payable semi-annually on June 15 and December 15 of each year, beginning on June 15, 2015. Prior to September 15, 2024, the company may redeem the 2014 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after September 15, 2024, the company may redeem the 2014 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of purchase. | ||||||||
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. 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. | ||||||||
For both the 2014 Notes and the 2011 Notes, if a change of control triggering event occurs, as defined by the terms of the respective indentures, the company will be required to offer to purchase the 2014 Notes and 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 indentures governing the 2014 Notes and 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 2014 and first quarter of 2015, and the 2004 Notes were therefore classified as short-term debt as of December 31, 2014 and March 31, 2015. In March 2015, the company notified the holders of the 2004 Notes of its election to redeem all of the outstanding 2004 Notes on May 7, 2015. The redemption price is equal to 100 percent of the principal amount plus accrued and unpaid interest up to (but excluding) May 7, 2015. The holders of the 2004 Notes may, at their option, convert the 2004 Notes at any time before the close of business on May 6, 2015. | ||||||||
The following table presents information related to the liability and equity components of the 2004 Notes: | ||||||||
March 31, | December 31, | |||||||
(in thousands) | 2015 | 2014 | ||||||
Carrying value of the equity component | $ | 19,516 | $ | 19,516 | ||||
Principal amount and carrying value of the liability component | 18,324 | 18,324 | ||||||
The 2004 Notes are convertible into shares of the company’s common stock (par value $0.01 per share) at a conversion rate of 37.0997 shares per each $1,000 principal amount of the 2004 Notes. Interest expense for the first quarter of both 2015 and 2014 included original coupon interest of less than $0.1 million. The if-converted value of $39 million was in excess of the principal value as of March 31, 2015. | ||||||||
During the third quarter of 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 $9 million and $10 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
As of March 31, 2015, the company was in compliance with all of the financial covenants related to its debt agreements. | ||||||||
StockBased_Plans
Stock-Based Plans | 3 Months Ended |
Mar. 31, 2015 | |
Stock-Based Plans | |
Stock-Based Plans | (11)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, 2014. In the first quarter of 2015 and 2014, 520,947 and 357,138 restricted stock units, respectively, were granted to executives, at weighted-average per share prices of $59.05 and $79.19, respectively. For the company’s executives, the restricted units granted in 2015 and 2014 generally vest ratably over three years. During the first quarter of 2015 and 2014, options for the purchase of 963,288 shares at a weighted-average exercise price of $59.05 per share and 684,486 shares at a weighted-average exercise price of $79.19 per share, respectively, were awarded to executives. The options granted in 2015 and 2014 vest ratably over three years. The options expire ten years after the grant date. | |
In the first quarter of 2015 and 2014, performance-based Value Driver Incentive (“VDI”) units totaling 430,970 and 315,551, respectively, were granted to executives at weighted-average per share prices of $59.05 and $79.19, respectively. The number of units is adjusted at the end of each performance period based on the achievement of certain performance criteria. The VDI awards granted in 2015 can only be settled in company stock and are accounted for as equity awards in accordance with ASC 718. The VDI awards granted in 2014 may be settled in cash, based on the closing price of the company’s common stock on the vesting date, or company stock. In accordance with ASC 718, the awards granted in 2014 are classified as liabilities and remeasured at fair value at the end of each reporting period until the awards are settled. Both the VDI awards granted in 2015 and 2014 vest after a period of approximately three years. | |
Noncontrolling_Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling Interests. | |
Noncontrolling Interests | (12)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 months ended March 31, 2015 and 2014, net earnings attributable to noncontrolling interests were $22 million and $44 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $4 million and $16 million for the three months ended March 31, 2015 and 2014, respectively. Capital contributions by noncontrolling interests were $0.7 million and less than $0.1 million for the three months ended March 31, 2015 and 2014, respectively. | |
Contingencies_and_Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2015 | |
Contingencies and Commitments | |
Contingencies and Commitments | (13)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, including matters related to government contracting and environmental regulations. 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 March 31, 2015, 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). In January 2015, the company paid $306 million pursuant to the settlement agreement. 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. | |
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 $21 million as of both March 31, 2015 and December 31, 2014 and are included in contract work in progress in the accompanying Condensed Consolidated Balance Sheet. | |
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 | 3 Months Ended |
Mar. 31, 2015 | |
Guarantees | |
Guarantees | (14)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 $15.5 billion as of March 31, 2015. 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 March 31, 2015 and December 31, 2014 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 generally require the borrower to pledge collateral to support the fulfillment of the borrower’s obligation. | |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2015 | |
Variable Interest Entities | |
Variable Interest Entities | (15)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 cost and equity methods of accounting are also used, depending on the company’s respective ownership interest and amount of influence on the entity, as well as other factors. 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 $131 million and $107 million as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 for the unconsolidated VIEs were $20 million. | |
In some cases, the company is required to consolidate certain VIEs. As of March 31, 2015, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $977 million and $471 million, respectively. As of December 31, 2014, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $891 million and $442 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. | |
The company has agreements with certain VIEs to provide financial or performance assurances to clients. See Note 14 for a further discussion of such agreements. A discussion 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, 2014. | |
Operating_Information_by_Segme
Operating Information by Segment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Operating Information by Segment | ||||||||
Operating Information by Segment | (16)Operating Information by Segment | |||||||
Effective January 1, 2015, the company implemented certain organizational changes that impacted the composition of its reportable segments. The company’s fabrication activities, previously included in the Global Services segment, have been integrated into the reporting segments for which the activities are being performed, primarily the Oil & Gas segment. Additionally, certain plant engineering offices located in Europe, Africa and the Middle East, which were previously included in the industrial services business line of the Industrial & Infrastructure segment, have been integrated into the Oil & Gas segment. Segment operating information for 2014 has been recast to reflect these organizational changes. | ||||||||
Operating information by reportable segment is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
External Revenue (in millions) | 2015 | 2014 | ||||||
Oil & Gas | $ | 2,471.6 | $ | 2,782.8 | ||||
Industrial & Infrastructure | 1,080.2 | 1,615.7 | ||||||
Government | 646.0 | 593.2 | ||||||
Global Services | 129.7 | 142.0 | ||||||
Power | 221.1 | 250.9 | ||||||
Total external revenue | $ | 4,548.6 | $ | 5,384.6 | ||||
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 $115 million and $136 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
Segment Profit (Loss) (in millions) | 2015 | 2014 | ||||||
Oil & Gas | $ | 183.3 | $ | 139.1 | ||||
Industrial & Infrastructure | 71.1 | 97.2 | ||||||
Government | 14.8 | 12.5 | ||||||
Global Services | 15.3 | 20.7 | ||||||
Power | (8.6 | ) | (1.4 | ) | ||||
Total segment profit | $ | 275.9 | $ | 268.1 | ||||
Power segment profit for the three months ended March 31, 2015 and 2014 included 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 included in the determination of segment profit were $17 million and $13 million for the three months ended March 31, 2015 and 2014, respectively. NuScale expenses for 2015 were net of qualified reimbursable expenses of $14 million. 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 before taxes is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
Reconciliation of Total Segment Profit to Earnings Before Taxes (in millions) | 2015 | 2014 | ||||||
Total segment profit | $ | 275.9 | $ | 268.1 | ||||
Corporate general and administrative expense | (41.1 | ) | (37.8 | ) | ||||
Interest income (expense), net | (7.4 | ) | (3.0 | ) | ||||
Earnings attributable to noncontrolling interests | 21.5 | 44.2 | ||||||
Earnings before taxes | $ | 248.9 | $ | 271.5 | ||||
Total assets by segment are as follows: | ||||||||
March 31, | December 31, | |||||||
Total Assets by Segment (in millions) | 2015 | 2014 | ||||||
Oil & Gas | $ | 1,476.5 | $ | 1,745.3 | ||||
Industrial & Infrastructure | 842.2 | 848.2 | ||||||
Government | 510.1 | 540.1 | ||||||
Global Services | 763.2 | 781.9 | ||||||
Power | 196.4 | 178.6 | ||||||
The above changes in total assets by segment are primarily due to fluctuations in project working capital related to project execution activities. | ||||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
Schedule of tax effects of components of other comprehensive income (loss) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||
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 | $ | (78,271 | ) | $ | 29,547 | $ | (48,724 | ) | $ | (17,800 | ) | $ | 5,071 | $ | (12,729 | ) | ||||
Ownership share of equity method investees’ other comprehensive loss | (6,002 | ) | 1,521 | (4,481 | ) | (944 | ) | (1,054 | ) | (1,998 | ) | |||||||||
Defined benefit pension and postretirement plan adjustments | 4,301 | (1,613 | ) | 2,688 | 2,636 | (988 | ) | 1,648 | ||||||||||||
Unrealized gain (loss) on derivative contracts | 1,414 | (520 | ) | 894 | (645 | ) | 216 | (429 | ) | |||||||||||
Unrealized gain (loss) on available-for-sale securities | 974 | (365 | ) | 609 | (29 | ) | 11 | (18 | ) | |||||||||||
Total other comprehensive loss | (77,584 | ) | 28,570 | (49,014 | ) | (16,782 | ) | 3,256 | (13,526 | ) | ||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 591 | — | 591 | (4,339 | ) | — | (4,339 | ) | ||||||||||||
Other comprehensive loss attributable to Fluor Corporation | $ | (78,175 | ) | $ | 28,570 | $ | (49,605 | ) | $ | (12,443 | ) | $ | 3,256 | $ | (9,187 | ) | ||||
Schedule of changes in accumulated other comprehensive income balances by component (after-tax) | (in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | |||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | on | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Derivative | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Contracts | Securities | Net | |||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of December 31, 2014 | $ | (119,416 | ) | $ | (30,436 | ) | $ | (325,145 | ) | $ | (8,954 | ) | $ | (261 | ) | $ | (484,212 | ) | ||
Other comprehensive income (loss) before reclassifications | (49,244 | ) | (4,481 | ) | — | 596 | 678 | (52,451 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | 2,688 | 227 | (69 | ) | 2,846 | |||||||||||||
Net other comprehensive income (loss) | (49,244 | ) | (4,481 | ) | 2,688 | 823 | 609 | (49,605 | ) | |||||||||||
Balance as of March 31, 2015 | $ | (168,660 | ) | $ | (34,917 | ) | $ | (322,457 | ) | $ | (8,131 | ) | $ | 348 | $ | (533,817 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1,328 | $ | — | $ | — | $ | (685 | ) | $ | — | $ | 643 | |||||||
Other comprehensive income (loss) before reclassifications | 520 | — | — | (3 | ) | — | 517 | |||||||||||||
Amounts reclassified from AOCI | — | — | — | 74 | — | 74 | ||||||||||||||
Net other comprehensive income | 520 | — | — | 71 | — | 591 | ||||||||||||||
Balance as of March 31, 2015 | $ | 1,848 | $ | — | $ | — | $ | (614 | ) | $ | — | $ | 1,234 | |||||||
(in thousands) | Foreign | Ownership Share | Defined Benefit | Unrealized | Unrealized | Accumulated | ||||||||||||||
Currency | of Equity Method | Pension and | Gain (Loss) | Gain (Loss) | Other | |||||||||||||||
Translation | Investees’ Other | Postretirement | on | on Available- | Comprehensive | |||||||||||||||
Comprehensive | Plans | Derivative | for-Sale | Income (Loss), | ||||||||||||||||
Loss | Contracts | Securities | Net | |||||||||||||||||
Attributable to Fluor Corporation: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | (164 | ) | $ | (32,274 | ) | $ | (258,297 | ) | $ | (7,642 | ) | $ | 176 | $ | (298,201 | ) | |||
Other comprehensive loss before reclassifications | (8,451 | ) | (1,998 | ) | (403 | ) | (544 | ) | (26 | ) | (11,422 | ) | ||||||||
Amounts reclassified from AOCI | — | — | 2,051 | 176 | 8 | 2,235 | ||||||||||||||
Net other comprehensive income (loss) | (8,451 | ) | (1,998 | ) | 1,648 | (368 | ) | (18 | ) | (9,187 | ) | |||||||||
Balance as of March 31, 2014 | $ | (8,615 | ) | $ | (34,272 | ) | $ | (256,649 | ) | $ | (8,010 | ) | $ | 158 | $ | (307,388 | ) | |||
Attributable to Noncontrolling Interests: | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,885 | $ | — | $ | — | $ | 67 | $ | — | $ | 7,952 | ||||||||
Other comprehensive loss before reclassifications | (4,278 | ) | — | — | (64 | ) | — | (4,342 | ) | |||||||||||
Amounts reclassified from AOCI | — | — | — | 3 | — | 3 | ||||||||||||||
Net other comprehensive loss | (4,278 | ) | — | — | (61 | ) | — | (4,339 | ) | |||||||||||
Balance as of March 31, 2014 | $ | 3,607 | $ | — | $ | — | $ | 6 | $ | — | $ | 3,613 | ||||||||
Schedule of significant items reclassified out of AOCI and corresponding location and impact on Condensed Consolidated Statement of Earnings | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Location in Condensed | March 31, | |||||||||||||||||||
(in thousands) | Consolidated Statement of Earnings | 2015 | 2014 | |||||||||||||||||
Component of AOCI: | ||||||||||||||||||||
Defined benefit pension plan adjustments | Various accounts(1) | $ | (4,301 | ) | $ | (3,281 | ) | |||||||||||||
Income tax benefit | Income tax expense | 1,613 | 1,230 | |||||||||||||||||
Net of tax | $ | (2,688 | ) | $ | (2,051 | ) | ||||||||||||||
Unrealized gain (loss) on derivative contracts: | ||||||||||||||||||||
Commodity and foreign currency contracts | Total cost of revenue | $ | (62 | ) | $ | 129 | ||||||||||||||
Interest rate contracts | Interest expense | (419 | ) | (419 | ) | |||||||||||||||
Income tax benefit (net) | Income tax expense | 180 | 111 | |||||||||||||||||
Net of tax | (301 | ) | (179 | ) | ||||||||||||||||
Less: Noncontrolling interests | Net earnings attributable to noncontrolling interests | (74 | ) | (3 | ) | |||||||||||||||
Net of tax and noncontrolling interests | $ | (227 | ) | $ | (176 | ) | ||||||||||||||
Unrealized gain (loss) on available-for-sale securities | Corporate general and administrative expense | $ | 110 | $ | (13 | ) | ||||||||||||||
Income tax benefit (expense) | Income tax expense | (41 | ) | 5 | ||||||||||||||||
Net of tax | $ | 69 | $ | (8 | ) | |||||||||||||||
-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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share | ||||||||
Schedule of calculations of basic and diluted EPS | Three Months Ended | |||||||
March 31, | ||||||||
(in thousands, except per share amounts) | 2015 | 2014 | ||||||
Net earnings attributable to Fluor Corporation | $ | 144,079 | $ | 149,074 | ||||
Basic EPS attributable to Fluor Corporation: | ||||||||
Weighted average common shares outstanding | 147,731 | 160,213 | ||||||
Basic earnings per share | $ | 0.98 | $ | 0.93 | ||||
Diluted EPS attributable to Fluor Corporation: | ||||||||
Weighted average common shares outstanding | 147,731 | 160,213 | ||||||
Diluted effect: | ||||||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units | 1,825 | 1,709 | ||||||
Conversion equivalent of dilutive convertible debt | 359 | 438 | ||||||
Weighted average diluted shares outstanding | 149,915 | 162,360 | ||||||
Diluted earnings per share | $ | 0.96 | $ | 0.92 | ||||
Anti-dilutive securities not included above | 3,162 | 440 | ||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
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) | $ | 7,269 | $ | 7,269 | $ | — | $ | — | $ | 14,419 | $ | 14,419 | $ | — | $ | — | ||||||||||
Marketable securities, current(2) | 64,937 | — | 64,937 | — | 80,706 | — | 80,706 | — | ||||||||||||||||||
Deferred compensation trusts(3) | 54,913 | 54,913 | — | — | 94,893 | 94,893 | — | — | ||||||||||||||||||
Marketable securities, noncurrent(4) | 254,761 | — | 254,761 | — | 343,644 | — | 343,644 | — | ||||||||||||||||||
Derivative assets(5) | ||||||||||||||||||||||||||
Commodity contracts | 315 | — | 315 | — | 561 | — | 561 | — | ||||||||||||||||||
Foreign currency contracts | 2,710 | — | 2,710 | — | 180 | — | 180 | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Derivative liabilities(5) | ||||||||||||||||||||||||||
Commodity contracts | $ | 2,000 | $ | — | $ | 2,000 | $ | — | $ | 2,290 | $ | — | $ | 2,290 | $ | — | ||||||||||
Foreign currency contracts | 3,670 | — | 3,670 | — | 4,392 | — | 4,392 | — | ||||||||||||||||||
-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 and corporate 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 and corporate 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 8 for the classification of commodity and foreign currency contracts in the Condensed Consolidated Balance Sheet. Commodity 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 Condensed Consolidated Balance Sheet | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in thousands) | Hierarchy | Value | Value | Value | Value | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash(1) | Level 1 | $ | 1,034,253 | $ | 1,034,253 | $ | 1,224,834 | $ | 1,224,834 | |||||||||||||||||
Cash equivalents(2) | Level 2 | 769,771 | 769,771 | 753,872 | 753,872 | |||||||||||||||||||||
Marketable securities, current(3) | Level 2 | 80,631 | 80,631 | 24,425 | 24,425 | |||||||||||||||||||||
Notes receivable, including noncurrent portion(4) | Level 3 | 17,614 | 17,614 | 19,284 | 19,284 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
3.375% Senior Notes(5) | Level 2 | $ | 497,155 | $ | 519,925 | $ | 497,045 | $ | 510,465 | |||||||||||||||||
3.5% Senior Notes(5) | Level 2 | 494,774 | 515,545 | 494,640 | 498,914 | |||||||||||||||||||||
1.5% Convertible Senior Notes(5) | Level 2 | 18,324 | 38,333 | 18,324 | 40,826 | |||||||||||||||||||||
Other borrowings(6) | Level 2 | 9,716 | 9,716 | 10,418 | 10,418 | |||||||||||||||||||||
-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, 3.5% 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) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Derivatives and Hedging | ||||||||||||||||||
Schedule of fair values of derivatives designated as hedging instruments under ASC 815 | Asset Derivatives | Liability Derivatives | ||||||||||||||||
Balance Sheet | March 31, | December 31, | Balance Sheet | March 31, | December 31, | |||||||||||||
(in thousands) | Location | 2015 | 2014 | Location | 2015 | 2014 | ||||||||||||
Commodity contracts | Other current assets | $ | 106 | $ | 365 | Other accrued liabilities | $ | 1,057 | $ | 1,362 | ||||||||
Foreign currency contracts | Other current assets | 1,422 | 128 | Other accrued liabilities | 1,755 | 3,721 | ||||||||||||
Commodity contracts | Other assets | 209 | 196 | Noncurrent liabilities | 943 | 928 | ||||||||||||
Foreign currency contracts | Other assets | 1,288 | 52 | Noncurrent liabilities | 1,915 | 671 | ||||||||||||
Total | $ | 3,025 | $ | 741 | $ | 5,670 | $ | 6,682 | ||||||||||
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 | After-Tax Amount of Gain | After-Tax Amount of Gain | ||||||||||||||||
(Loss) Recognized in OCI | (Loss) Reclassified from | |||||||||||||||||
AOCI into Earnings | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||
March 31, | March 31, | |||||||||||||||||
Cash Flow Hedges (in thousands) | 2015 | 2014 | Location of Gain (Loss) | 2015 | 2014 | |||||||||||||
Commodity contracts | $ | (112 | ) | $ | (143 | ) | Total cost of revenue | $ | (91 | ) | $ | 78 | ||||||
Foreign currency contracts | 708 | (401 | ) | Total cost of revenue | 126 | 8 | ||||||||||||
Interest rate contracts | — | — | Interest expense | (262 | ) | (262 | ) | |||||||||||
Total | $ | 596 | $ | (544 | ) | $ | (227 | ) | $ | (176 | ) | |||||||
Hedging instruments designated as fair value hedges | ||||||||||||||||||
Derivative gain (loss) | ||||||||||||||||||
Schedule of pre-tax net gains (losses) recognized in earnings | Three Months Ended | |||||||||||||||||
March 31, | ||||||||||||||||||
Fair Value Hedges (in thousands) | Location of Gain | 2015 | 2014 | |||||||||||||||
Foreign currency contracts | Corporate general and administrative expense | $ | (1,154 | ) | $ | 1,259 | ||||||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) (Defined Benefit Pension Plans) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||||||||||||
Schedule of components of net periodic pension expense | U.S. Pension Plan | Non-U.S. Pension Plans | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Service cost | $ | 1,700 | $ | 950 | $ | 5,202 | $ | 4,153 | ||||||
Interest cost | 3,799 | 7,919 | 6,641 | 8,804 | ||||||||||
Expected return on assets | (5,275 | ) | (7,526 | ) | (12,305 | ) | (12,248 | ) | ||||||
Amortization of prior service cost | 217 | 187 | (206 | ) | — | |||||||||
Recognized net actuarial loss | 2,351 | 1,109 | 1,939 | 1,984 | ||||||||||
Net periodic pension expense | $ | 2,792 | $ | 2,639 | $ | 1,271 | $ | 2,693 | ||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Financing Arrangements | ||||||||
Schedule of liability and equity components of 2004 Notes | March 31, | December 31, | ||||||
(in thousands) | 2015 | 2014 | ||||||
Carrying value of the equity component | $ | 19,516 | $ | 19,516 | ||||
Principal amount and carrying value of the liability component | 18,324 | 18,324 | ||||||
Operating_Informatin_by_Segmen
Operating Informatin by Segment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Operating Information by Segment | |||||||||
Schedule of External Revenue, Segment Profit (Loss) and Total Assets by Segment | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
External Revenue (in millions) | 2015 | 2014 | |||||||
Oil & Gas | $ | 2,471.60 | $ | 2,782.80 | |||||
Industrial & Infrastructure | 1,080.20 | 1,615.70 | |||||||
Government | 646 | 593.2 | |||||||
Global Services | 129.7 | 142 | |||||||
Power | 221.1 | 250.9 | |||||||
Total external revenue | $ | 4,548.60 | $ | 5,384.60 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
Segment Profit (Loss) (in millions) | 2015 | 2014 | |||||||
Oil & Gas | $ | 183.3 | $ | 139.1 | |||||
Industrial & Infrastructure | 71.1 | 97.2 | |||||||
Government | 14.8 | 12.5 | |||||||
Global Services | 15.3 | 20.7 | |||||||
Power | (8.6 | ) | (1.4 | ) | |||||
Total segment profit | $ | 275.9 | $ | 268.1 | |||||
March 31, | December 31, | ||||||||
Total Assets by Segment (in millions) | 2015 | 2014 | |||||||
Oil & Gas | $ | 1,476.50 | $ | 1,745.30 | |||||
Industrial & Infrastructure | 842.2 | 848.2 | |||||||
Government | 510.1 | 540.1 | |||||||
Global Services | 763.2 | 781.9 | |||||||
Power | 196.4 | 178.6 | |||||||
Reconciliation of Total Segment Profit to Earnings Before Taxes | Three Months Ended | ||||||||
March 31, | |||||||||
Reconciliation of Total Segment Profit to Earnings Before Taxes (in millions) | 2015 | 2014 | |||||||
Total segment profit | $ | 275.9 | $ | 268.1 | |||||
Corporate general and administrative expense | (41.1 | ) | (37.8 | ) | |||||
Interest income (expense), net | (7.4 | ) | (3.0 | ) | |||||
Earnings attributable to noncontrolling interests | 21.5 | 44.2 | |||||||
Earnings before taxes | $ | 248.9 | $ | 271.5 | |||||
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | ($77,584) | ($16,782) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Before-Tax | 591 | -4,339 |
Other comprehensive loss attributable to Fluor Corporation, Before-Tax | -78,175 | -12,443 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | 28,570 | 3,256 |
Other comprehensive loss attributable to Fluor Corporation, Tax Benefit (Expense) | 28,570 | 3,256 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | -49,014 | -13,526 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net-of-Tax | 591 | -4,339 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -49,605 | -9,187 |
Foreign Currency Translation | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | -78,271 | -17,800 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | 29,547 | 5,071 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | -48,724 | -12,729 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net-of-Tax | 520 | -4,278 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -49,244 | -8,451 |
Ownership Share of Equity Method Investees' Other Comprehensive Loss | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | -6,002 | -944 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | 1,521 | -1,054 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | -4,481 | -1,998 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -4,481 | -1,998 |
Defined Benefit Pension and Postretirement Plans | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | 4,301 | 2,636 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | -1,613 | -988 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | 2,688 | 1,648 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | 2,688 | 1,648 |
Unrealized Gain (Loss) on Derivative Contracts | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | 1,414 | -645 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | -520 | 216 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | 894 | -429 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net-of-Tax | 71 | -61 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | 823 | -368 |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive loss, Before-Tax | 974 | -29 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||
Total other comprehensive loss, Tax Benefit (Expense) | -365 | 11 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
Total other comprehensive loss, Net-of-Tax | 609 | -18 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | $609 | ($18) |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | ($484,212) | ($298,201) |
Other comprehensive income (loss) before reclassifications | -52,451 | -11,422 |
Amounts reclassified from AOCI | 2,846 | 2,235 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -49,605 | -9,187 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -533,817 | -307,388 |
Foreign Currency Translation | ||
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | -119,416 | -164 |
Other comprehensive income (loss) before reclassifications | -49,244 | -8,451 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -49,244 | -8,451 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -168,660 | -8,615 |
Ownership Share of Equity Method Investees' Other Comprehensive Loss | ||
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | -30,436 | -32,274 |
Other comprehensive income (loss) before reclassifications | -4,481 | -1,998 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | -4,481 | -1,998 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -34,917 | -34,272 |
Defined Benefit Pension and Postretirement Plans | ||
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | -325,145 | -258,297 |
Other comprehensive income (loss) before reclassifications | -403 | |
Amounts reclassified from AOCI | 2,688 | 2,051 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | 2,688 | 1,648 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -322,457 | -256,649 |
Unrealized Gain (Loss) on Derivative Contracts | ||
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | -8,954 | -7,642 |
Other comprehensive income (loss) before reclassifications | 596 | -544 |
Amounts reclassified from AOCI | 227 | 176 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | 823 | -368 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | -8,131 | -8,010 |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Changes in AOCI balances by component (after-tax) | ||
Accumulated Other Comprehensive Income (Loss), Net, balance as of beginning of year | -261 | 176 |
Other comprehensive income (loss) before reclassifications | 678 | -26 |
Amounts reclassified from AOCI | -69 | 8 |
Other comprehensive loss attributable to Fluor Corporation, Net-of-Tax | 609 | -18 |
Accumulated Other Comprehensive Income (Loss), Net, balance as of end of period | $348 | $158 |
Other_Comprehensive_Income_Los4
Other Comprehensive Income (Loss) (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | $643 | $7,952 |
Other comprehensive income (loss) before reclassifications attributable to noncontrolling interests | 517 | -4,342 |
Amount reclassified from AOCI attributable to noncontrolling interests | 74 | 3 |
Net other comprehensive income (loss) attributable to noncontrolling interests | 591 | -4,339 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of period | 1,234 | 3,613 |
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 | 1,328 | 7,885 |
Other comprehensive income (loss) before reclassifications attributable to noncontrolling interests | 520 | -4,278 |
Net other comprehensive income (loss) attributable to noncontrolling interests | 520 | -4,278 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of period | 1,848 | 3,607 |
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 | -685 | 67 |
Other comprehensive income (loss) before reclassifications attributable to noncontrolling interests | -3 | -64 |
Amount reclassified from AOCI attributable to noncontrolling interests | 74 | 3 |
Net other comprehensive income (loss) attributable to noncontrolling interests | 71 | -61 |
Accumulated Other Comprehensive Income (Loss), Net, Attributable to Noncontrolling Interests, balance as of end of period | ($614) | $6 |
Other_Comprehensive_Income_Los5
Other Comprehensive Income (Loss) (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassifications out of accumulated other comprehensive income (loss) | ||
Total cost of revenue | ($4,251,189) | ($5,072,304) |
Interest expense | -12,168 | -6,897 |
Corporate general and administrative expense | -41,110 | -37,773 |
Income tax expense | -83,274 | -78,158 |
NET EARNINGS | 165,604 | 193,310 |
Net earnings attributable to noncontrolling interests | 21,525 | 44,236 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | 144,079 | 149,074 |
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 | -4,301 | -3,281 |
Income tax expense | 1,613 | 1,230 |
NET EARNINGS | -2,688 | -2,051 |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Income tax expense | 180 | 111 |
NET EARNINGS | -301 | -179 |
Net earnings attributable to noncontrolling interests | -74 | -3 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | -227 | -176 |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Commodity contracts and foreign currency contracts | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Total cost of revenue | -62 | 129 |
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 |
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 | 110 | -13 |
Income tax expense | -41 | 5 |
NET EARNINGS | $69 | ($8) |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes | ||
Effective tax rate, continuing operations (as a percent) | 33.50% | 28.80% |
Cash_Paid_for_Interest_and_Tax1
Cash Paid for Interest and Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash paid during the year for: | ||
Cash paid for interest | $10 | $10 |
Income taxes payments, net of refunds | $62 | $37 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Amounts attributable to Fluor Corporation: | ||
Net earnings attributable to Fluor Corporation | $144,079,000 | $149,074,000 |
Basic EPS attributable to Fluor Corporation: | ||
Weighted average common shares outstanding (in shares) | 147,731,000 | 160,213,000 |
Basic earnings per share (in dollars per share) | $0.98 | $0.93 |
Diluted EPS attributable to Fluor Corporation: | ||
Weighted average common shares outstanding (in shares) | 147,731,000 | 160,213,000 |
Diluted effect: | ||
Employee stock options, restricted stock units and shares and Value Driver Incentive units (in shares) | 1,825,000 | 1,709,000 |
Conversion equivalent of dilutive convertible debt (in shares) | 359,000 | 438,000 |
Weighted average diluted shares outstanding (in shares) | 149,915,000 | 162,360,000 |
Diluted EPS attributable to Fluor Corporation | ||
Diluted earnings per share (in dollars per share) | $0.96 | $0.92 |
Anti-dilutive securities not included above (in shares) | 3,162,000 | 440,000 |
Repurchases of common stock | ||
Common stock repurchased and cancelled, shares (in shares) | 1,939,997 | 2,461,800 |
Common stock repurchased and cancelled, amount (in dollars) | $112,000,000 | $192,000,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair value of assets and liabilities measured on recurring basis | |||||
Deferred compensation trusts | $371,418,000 | $405,022,000 | $371,418,000 | $405,022,000 | |
Other-than-temporary impairment of available-for-sale securities | 0 | 0 | |||
Proceeds from the sales and maturities of available-for-sale securities | 183,000,000 | 64,000,000 | |||
Marketable securities, available-for-sale | Minimum | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Debt securities maturity period | 1 year | ||||
Marketable securities, available-for-sale | 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 | 7,000,000 | 14,000,000 | 7,000,000 | 14,000,000 | |
Fair Value, Measurements, Recurring | U.S. agency securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 56,000,000 | 73,000,000 | 56,000,000 | 73,000,000 | |
Fair Value, Measurements, Recurring | U.S. Treasury securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 60,000,000 | 107,000,000 | 60,000,000 | 107,000,000 | |
Fair Value, Measurements, Recurring | Corporate debt securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 204,000,000 | 245,000,000 | 204,000,000 | 245,000,000 | |
Fair Value, Measurements, Recurring | Fair Value | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 7,269,000 | 14,419,000 | 7,269,000 | 14,419,000 | |
Marketable securities, current | 64,937,000 | 80,706,000 | 64,937,000 | 80,706,000 | |
Deferred compensation trusts | 54,913,000 | 94,893,000 | 54,913,000 | 94,893,000 | |
Marketable securities, noncurrent | 254,761,000 | 343,644,000 | 254,761,000 | 343,644,000 | |
Fair Value, Measurements, Recurring | Fair Value | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 315,000 | 561,000 | 315,000 | 561,000 | |
Derivative liabilities | 2,000,000 | 2,290,000 | 2,000,000 | 2,290,000 | |
Fair Value, Measurements, Recurring | Fair Value | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 2,710,000 | 180,000 | 2,710,000 | 180,000 | |
Derivative liabilities | 3,670,000 | 4,392,000 | 3,670,000 | 4,392,000 | |
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 7,269,000 | 14,419,000 | 7,269,000 | 14,419,000 | |
Deferred compensation trusts | 54,913,000 | 94,893,000 | 54,913,000 | 94,893,000 | |
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Marketable securities, current | 64,937,000 | 80,706,000 | 64,937,000 | 80,706,000 | |
Marketable securities, noncurrent | 254,761,000 | 343,644,000 | 254,761,000 | 343,644,000 | |
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 315,000 | 561,000 | 315,000 | 561,000 | |
Derivative liabilities | 2,000,000 | 2,290,000 | 2,000,000 | 2,290,000 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 2,710,000 | 180,000 | 2,710,000 | 180,000 | |
Derivative liabilities | $3,670,000 | $4,392,000 | $3,670,000 | $4,392,000 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2011 | Nov. 30, 2014 | Feb. 29, 2004 |
In Thousands, unless otherwise specified | |||||
3.375% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Interest rate (as a percent) | 3.38% | 3.38% | 3.38% | ||
3.5% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||
1.5% Convertible Senior Notes due February 15, 2024 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Interest rate (as a percent) | 1.50% | 1.50% | 1.50% | ||
Carrying Value | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Cash | 1,034,253 | 1,224,834 | |||
Cash equivalents | 769,771 | 753,872 | |||
Marketable securities, current | 80,631 | 24,425 | |||
Notes receivable, including noncurrent portion | 17,614 | 19,284 | |||
Carrying Value | Other borrowings | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 9,716 | 10,418 | |||
Carrying Value | 3.375% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 497,155 | 497,045 | |||
Carrying Value | 3.5% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 494,774 | 494,640 | |||
Carrying Value | 1.5% Convertible Senior Notes due February 15, 2024 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 18,324 | 18,324 | |||
Fair Value | Level 1 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Cash | 1,034,253 | 1,224,834 | |||
Fair Value | Level 2 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Cash equivalents | 796,771 | 753,872 | |||
Marketable securities, current | 80,631 | 24,425 | |||
Fair Value | Level 2 | Other borrowings | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 9,716 | 10,418 | |||
Fair Value | Level 2 | 3.375% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 519,925 | 510,465 | |||
Fair Value | Level 2 | 3.5% Senior Notes | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 515,545 | 498,914 | |||
Fair Value | Level 2 | 1.5% Convertible Senior Notes due February 15, 2024 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Debt | 38,333 | 40,826 | |||
Fair Value | Level 3 | |||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | |||||
Notes receivable, including noncurrent portion | 17,614 | 19,284 |
Derivatives_and_Hedging_Detail
Derivatives and Hedging (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Commodity contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | $10,000,000 | |
Foreign currency contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | 636,000,000 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Asset Derivatives | 3,025,000 | 741,000 |
Liability Derivatives | 5,670,000 | 6,682,000 |
Designated as Hedging Instrument | Commodity contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 106,000 | 365,000 |
Designated as Hedging Instrument | Commodity contracts | Other assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 209,000 | 196,000 |
Designated as Hedging Instrument | Commodity contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 1,057,000 | 1,362,000 |
Designated as Hedging Instrument | Commodity contracts | Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 943,000 | 928,000 |
Designated as Hedging Instrument | Foreign currency contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 1,422,000 | 128,000 |
Designated as Hedging Instrument | Foreign currency contracts | Other assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 1,288,000 | 52,000 |
Designated as Hedging Instrument | Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 1,755,000 | 3,721,000 |
Designated as Hedging Instrument | Foreign currency contracts | Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | $1,915,000 | $671,000 |
Derivatives_and_Hedging_Detail1
Derivatives and Hedging (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | $596 | ($544) |
After-tax amount of gain (loss) reclassified from AOCI into earnings | -227 | -176 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | -112 | -143 |
Commodity contracts | Total cost of revenue | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | -91 | 78 |
Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | 708 | -401 |
Foreign currency contracts | Corporate general and administrative expense | ||
Derivative Instruments, Gain (Loss) | ||
Net Gains Recognized in Earnings | -1,154 | 1,259 |
Foreign currency contracts | Total cost of revenue | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | 126 | 8 |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | ($262) | ($262) |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Defined Benefit Pension Plans | |||
Estimated future employer contributions to defined benefit pension plans | |||
Company contributions | $900,000 | ||
Defined Benefit Pension Plans | Maximum | |||
Estimated future employer contributions to defined benefit pension plans | |||
Expected contributions in next fiscal year | 100,000,000 | ||
Defined Benefit U.S. Pension Plans | |||
Retirement benefits | |||
Unrecognized net actuarial losses classified in accumulated other comprehensive loss | 271,000,000 | ||
Net periodic pension expense for defined benefit pension plans | |||
Service cost | 1,700,000 | 950,000 | |
Interest cost | 3,799,000 | 7,919,000 | |
Expected return on assets | -5,275,000 | -7,526,000 | |
Amortization of prior service cost | 217,000 | 187,000 | |
Recognized net actuarial loss | 2,351,000 | 1,109,000 | |
Net periodic pension expense | 2,792,000 | 2,639,000 | |
Defined Benefit Non-U.S. Pension Plans | |||
Net periodic pension expense for defined benefit pension plans | |||
Service cost | 5,202,000 | 4,153,000 | |
Interest cost | 6,641,000 | 8,804,000 | |
Expected return on assets | -12,305,000 | -12,248,000 | |
Amortization of prior service cost | -206,000 | ||
Recognized net actuarial loss | 1,939,000 | 1,984,000 | |
Net periodic pension expense | $1,271,000 | $2,693,000 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Nov. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2011 | Feb. 29, 2004 | Dec. 31, 2014 | |
3.5% Senior Notes | |||||
Financing Arrangements | |||||
Debt issued | $500,000,000 | ||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||
Proceeds from issuance of notes, net of underwriting discounts | 491,000,000 | ||||
3.5% Senior Notes | Change of control triggering event | |||||
Financing Arrangements | |||||
Redemption price as a percentage of principal | 101.00% | ||||
3.375% Senior Notes | |||||
Financing Arrangements | |||||
Debt issued | 500,000,000 | ||||
Interest rate (as a percent) | 3.38% | 3.38% | 3.38% | ||
Proceeds from issuance of notes, net of underwriting discounts | 492,000,000 | ||||
3.375% Senior Notes | Change of control triggering event | |||||
Financing Arrangements | |||||
Redemption price as a percentage of principal | 101.00% | ||||
3.375% Senior Notes | Minimum | |||||
Financing Arrangements | |||||
Redemption price as a percentage of principal | 100.00% | ||||
1.5% Convertible Senior Notes due February 15, 2024 | |||||
Financing Arrangements | |||||
Debt issued | 330,000,000 | ||||
Interest rate (as a percent) | 1.50% | 1.50% | 1.50% | ||
Proceeds from issuance of notes, net of underwriting discounts | 323,000,000 | ||||
Redemption price as a percentage of principal | 100.00% | ||||
Lines of credit | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 5,300,000,000 | ||||
Committed lines of credit | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 3,500,000,000 | ||||
Committed lines of credit | May 2014 Revolving Loan and Letter of Credit Facility Agreement, due May 2019 | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 1,700,000,000 | ||||
Maximum borrowing capacity additional amount, subject to certain conditions | 500,000,000 | ||||
Committed lines of credit | May 2014 Revolving Loan and Letter of Credit Facility Agreement, due May 2019 | Maximum | |||||
Financing Arrangements | |||||
Ratio of consolidated debt to tangible net worth | 1 | ||||
Committed lines of credit | May 2014 Revolving Loan and Letter of Credit Facility Agreement, due May 2019 | Maximum | Subsidiaries | |||||
Financing Arrangements | |||||
Aggregate amount of debt | 750,000,000 | ||||
Committed lines of credit | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended, due May 2019 | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 1,800,000,000 | ||||
Maximum borrowing capacity additional amount, subject to certain conditions | 500,000,000 | ||||
Committed lines of credit | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended, due May 2019 | Maximum | |||||
Financing Arrangements | |||||
Ratio of consolidated debt to tangible net worth | 1 | ||||
Committed lines of credit | November 2012 Revolving Loan and Letter of Credit Facility Agreement, as amended, due May 2019 | Maximum | Subsidiaries | |||||
Financing Arrangements | |||||
Aggregate amount of debt | 750,000,000 | ||||
Committed lines of credit | Revolving advances | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 1,750,000,000 | ||||
Prior to September 15, 2024 | 3.5% Senior Notes | Minimum | |||||
Financing Arrangements | |||||
Redemption price as a percentage of principal | 100.00% | ||||
On or after September 15, 2024 | 3.5% Senior Notes | |||||
Financing Arrangements | |||||
Redemption price as a percentage of principal | 100.00% |
Financing_Arrangements_Details1
Financing Arrangements (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Financing Arrangements | |||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | |
1.5% Convertible Senior Notes due February 15, 2024 | |||
Financing Arrangements | |||
Carrying value of the equity component | $19,516,000 | $19,516,000 | |
Principal amount and carrying value of the liability component | 18,324,000 | 18,324,000 | |
Conversion rate per $1,000 principal amount of Notes (in shares) | 37.0997 | ||
If-converted value | 39,000,000 | ||
1.5% Convertible Senior Notes due February 15, 2024 | Maximum | |||
Financing Arrangements | |||
Debt instrument, coupon interest | $100,000 | $100,000 |
Financing_Arrangements_Details2
Financing Arrangements (Details 3) (Lines of credit, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Lines of credit | ||
Short-term credit facility | ||
Outstanding borrowings under short-term facility | $9 | $10 |
StockBased_Plans_Details
Stock-Based Plans (Details) (Executives, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restricted stock units | ||
Stock Plans | ||
Granted (in shares) | 520,947 | 357,138 |
Granted, weighted average grant date fair value (in dollars per share) | $59.05 | $79.19 |
Vesting period | 3 years | 3 years |
Stock Options | ||
Stock Plans | ||
Granted (in shares) | 963,288 | 684,486 |
Granted (in dollars per share) | $59.05 | $79.19 |
Vesting period | 3 years | 3 years |
Term of stock-based award | 10 years | 10 years |
Performance-based VDI units | ||
Stock Plans | ||
Granted (in shares) | 430,970 | 315,551 |
Granted, weighted average grant date fair value (in dollars per share) | $59.05 | $79.19 |
Vesting period | 3 years | 3 years |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Noncontrolling Interests. | ||
Net earnings attributable to noncontrolling interests | $21,525 | $44,236 |
Distributions paid to noncontrolling interests | 3,508 | 15,898 |
Capital contributions by noncontrolling interests | $698 | $46 |
Contingencies_and_Commitments_
Contingencies and Commitments (Details) (St. Joe and Doe Run, USD $) | 1 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2011 | Jan. 31, 2015 | Jun. 30, 2014 | Oct. 31, 2014 |
plaintiff | plaintiff | |||
St. Joe and Doe Run December 2010 litigation | ||||
Litigation and dispute resolution | ||||
Number of plaintiffs | 16 | |||
Compensatory and economic damages | $38.50 | |||
Punitive damages | 320 | |||
St. Joe and Doe Run December 2010 litigation, December 2011 judgment, appeal and opinion | ||||
Litigation and dispute resolution | ||||
Compensatory and economic damages | 38.5 | |||
Punitive damages reversed and remanded back to trial court | 240 | |||
Punitive damages | 80 | |||
Payment pursuant to settlement agreement | $306 | |||
St. Joe and Doe Run December 2010 litigation, December 2011 judgment, appeal and opinion | Minimum | ||||
Litigation and dispute resolution | ||||
Number of plaintiffs | 16 |
Contingencies_and_Commitments_1
Contingencies and Commitments (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Recognized claims against clients | ||
Contracts receivable, claims and uncertain amounts | $21 | $21 |
Guarantees_Details
Guarantees (Details) (Performance Guarantee, USD $) | Mar. 31, 2015 |
In Billions, unless otherwise specified | |
Performance Guarantee | |
Guarantees | |
Estimated performance guarantees outstanding | $15.50 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
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 | ||
Net carrying value of the unconsolidated VIEs | 131 | $107 |
Unconsolidated variable interest entities | Future funding commitment | ||
Variable interest entity information | ||
Future funding amount | 20 | |
Consolidated variable interest entities | ||
Variable interest entity information | ||
Carrying value of assets | 977 | 891 |
Carrying value of liabilities | 471 | $442 |
Operating_Information_by_Segme1
Operating Information by Segment (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating information by segment | ||
Revenue | $4,548,649,000 | $5,384,636,000 |
Oil and Gas Segment | ||
Operating information by segment | ||
Revenue | 2,471,600,000 | 2,782,800,000 |
Industrial and Infrastructure Segment | ||
Operating information by segment | ||
Revenue | 1,080,200,000 | 1,615,700,000 |
Government Segment | ||
Operating information by segment | ||
Revenue | 646,000,000 | 593,200,000 |
Global Services Segment | ||
Operating information by segment | ||
Revenue | 129,700,000 | 142,000,000 |
Power Segment | ||
Operating information by segment | ||
Revenue | 221,100,000 | 250,900,000 |
Intercompany | Global Services Segment | ||
Operating information by segment | ||
Revenue | 115,000,000 | 136,000,000 |
Reportable segments | ||
Operating information by segment | ||
Profit (Loss) | 275,900,000 | 268,100,000 |
Reportable segments | Oil and Gas Segment | ||
Operating information by segment | ||
Profit (Loss) | 183,300,000 | 139,100,000 |
Reportable segments | Industrial and Infrastructure Segment | ||
Operating information by segment | ||
Profit (Loss) | 71,100,000 | 97,200,000 |
Reportable segments | Government Segment | ||
Operating information by segment | ||
Profit (Loss) | 14,800,000 | 12,500,000 |
Reportable segments | Global Services Segment | ||
Operating information by segment | ||
Profit (Loss) | 15,300,000 | 20,700,000 |
Reportable segments | Power Segment | ||
Operating information by segment | ||
Profit (Loss) | -8,600,000 | -1,400,000 |
Reportable segments | Power Segment | Nu Scale Power | ||
Additional operating information by segment | ||
Expenses | 17,000,000 | 13,000,000 |
Reportable segments | Power Segment | Nu Scale Power | Cost-sharing agreement, research and development activities | U.S. Department of Energy | ||
Additional operating information by segment | ||
Qualified reimbursable expenses | $14,000,000 |
Operating_Information_by_Segme2
Operating Information by Segment (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of total segment profit to earnings before taxes | ||
Corporate general and administrative expense | ($41,110,000) | ($37,773,000) |
Interest income (expense), net | -7,400,000 | -3,000,000 |
Earnings before taxes | 248,878,000 | 271,468,000 |
Reportable segments | ||
Reconciliation of total segment profit to earnings before taxes | ||
Segment profit | 275,900,000 | 268,100,000 |
Reconciling item | Noncontrolling interests | ||
Reconciliation of total segment profit to earnings before taxes | ||
Earnings before taxes | $21,500,000 | $44,200,000 |
Operating_Information_by_Segme3
Operating Information by Segment (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Operations by Business Segment and Geographical Area | ||
Total assets | $7,619,196 | $8,194,429 |
Reportable segments | Oil and Gas Segment | ||
Operations by Business Segment and Geographical Area | ||
Total assets | 1,476,500 | 1,745,300 |
Reportable segments | Industrial and Infrastructure Segment | ||
Operations by Business Segment and Geographical Area | ||
Total assets | 842,200 | 848,200 |
Reportable segments | Government Segment | ||
Operations by Business Segment and Geographical Area | ||
Total assets | 510,100 | 540,100 |
Reportable segments | Global Services Segment | ||
Operations by Business Segment and Geographical Area | ||
Total assets | 763,200 | 781,900 |
Reportable segments | Power Segment | ||
Operations by Business Segment and Geographical Area | ||
Total assets | $196,400 | $178,600 |