Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | FLUOR CORP | |
Entity Central Index Key | 1,124,198 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 139,230,156 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS | ||
TOTAL REVENUE | $ 4,423,889 | $ 4,548,649 |
TOTAL COST OF REVENUE | 4,168,067 | 4,251,189 |
OTHER (INCOME) AND EXPENSES | ||
Corporate general and administrative expense | 55,113 | 41,110 |
Interest expense | 14,645 | 12,168 |
Interest income | (3,156) | (4,696) |
Total cost and expenses | 4,234,669 | 4,299,771 |
EARNINGS BEFORE TAXES | 189,220 | 248,878 |
INCOME TAX EXPENSE | 70,209 | 83,274 |
NET EARNINGS | 119,011 | 165,604 |
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 14,688 | 21,525 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | $ 104,323 | $ 144,079 |
BASIC EARNINGS PER SHARE | $ 0.75 | $ 0.98 |
DILUTED EARNINGS PER SHARE | $ 0.74 | $ 0.96 |
SHARES USED TO CALCULATE EARNINGS PER SHARE | ||
BASIC (in shares) | 138,950 | 147,731 |
DILUTED (in shares) | 140,865 | 149,915 |
DIVIDENDS DECLARED PER SHARE | $ 0.21 | $ 0.21 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||
NET EARNINGS | $ 119,011 | $ 165,604 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||
Foreign currency translation adjustment | 22,336 | (48,724) |
Ownership share of equity method investees' other comprehensive loss | (8,018) | (4,481) |
Defined benefit pension and postretirement plan adjustments | (3,325) | 2,688 |
Unrealized gain on derivative contracts | 3,602 | 894 |
Unrealized gain on available-for-sale securities | 847 | 609 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 15,442 | (49,014) |
COMPREHENSIVE INCOME | 134,453 | 116,590 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 14,744 | 22,116 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO FLUOR CORPORATION | $ 119,709 | $ 94,474 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | |||
Cash and cash equivalents ($365,108 and $289,991 related to variable interest entities ("VIEs")) | $ 1,697,491 | $ 1,949,886 | $ 1,993,125 |
Marketable securities, current ($65,176 and $70,176 related to VIEs) | 167,130 | 197,092 | |
Accounts and notes receivable, net ($235,306 and $186,833 related to VIEs) | 1,496,829 | 1,203,024 | |
Contract work in progress ($203,986 and $178,826 related to VIEs) | 1,606,203 | 1,376,471 | |
Other current assets ($27,968 and $27,362 related to VIEs) | 435,216 | 378,927 | |
Total current assets | 5,402,869 | 5,105,400 | |
Marketable securities, noncurrent | 152,843 | 220,634 | |
Property, plant and equipment ("PP&E") ((net of accumulated depreciation of $1,060,862 and $1,046,077) (net PP&E of $70,609 and $70,247 related to VIEs)) | 1,065,264 | 892,340 | |
Investments and goodwill | 1,482,512 | 449,576 | |
Deferred taxes | 362,699 | 394,832 | |
Deferred compensation trusts | 326,444 | 360,725 | |
Other assets ( $24,259 and $24,141 related to VIEs) | 209,096 | 201,899 | |
TOTAL ASSETS | 9,001,727 | 7,625,406 | |
CURRENT LIABILITIES | |||
Trade accounts payable ($221,556 and $178,139 related to VIEs) | 1,578,073 | 1,266,509 | |
Revolving credit facility and other borrowings | 118,926 | ||
Advance billings on contracts ($208,669 and $188,484 related to VIEs) | 745,078 | 754,037 | |
Accrued salaries, wages and benefits ($51,987 and $47,526 related to VIEs) | 766,272 | 669,592 | |
Other accrued liabilities ($55,033 and $25,384 related to VIEs) | 381,581 | 245,214 | |
Total current liabilities | 3,589,930 | 2,935,352 | |
LONG-TERM DEBT | 1,572,001 | 986,564 | |
NONCURRENT LIABILITIES | $ 618,962 | $ 589,991 | |
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 - 139,222,687 and 139,018,309 shares in 2016 and 2015, respectively | $ 1,392 | $ 1,390 | |
Additional paid-in capital | 10,819 | ||
Accumulated other comprehensive loss | (417,389) | (432,775) | |
Retained earnings | 3,493,789 | 3,428,732 | |
Total shareholders' equity | 3,088,611 | 2,997,347 | |
Noncontrolling interests | 132,223 | 116,152 | |
Total equity | 3,220,834 | 3,113,499 | |
TOTAL LIABILITIES AND EQUITY | $ 9,001,727 | $ 7,625,406 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, net | ||
Property, plant and equipment, accumulated depreciation | $ 1,060,862 | $ 1,046,077 |
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) | 139,222,687 | 139,018,309 |
Common stock, outstanding shares (in shares) | 139,222,687 | 139,018,309 |
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | $ 1,697,491 | $ 1,949,886 |
Marketable securities, current | 167,130 | 197,092 |
Accounts and notes receivable | 1,496,829 | 1,203,024 |
Contract work in progress | 1,606,203 | 1,376,471 |
Other current assets ($27,968 and $27,362 related to VIEs) | 435,216 | 378,927 |
Net property, plant and equipment | 1,065,264 | 892,340 |
Other noncurrent assets | 209,096 | 201,899 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 1,578,073 | 1,266,509 |
Advance billings on contracts | 745,078 | 754,037 |
Accrued salaries, wages and benefits | 766,272 | 669,592 |
Other accrued liabilities | 381,581 | 245,214 |
Consolidated variable interest entities | ||
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | 365,108 | 289,991 |
Marketable securities, current | 65,176 | 70,176 |
Accounts and notes receivable | 235,306 | 186,833 |
Contract work in progress | 203,986 | 178,826 |
Other current assets ($27,968 and $27,362 related to VIEs) | 27,968 | 27,362 |
Net property, plant and equipment | 70,609 | 70,247 |
Other noncurrent assets | 24,259 | 24,141 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 221,556 | 178,139 |
Advance billings on contracts | 208,669 | 188,484 |
Accrued salaries, wages and benefits | 51,987 | 47,526 |
Other accrued liabilities | $ 55,033 | $ 25,384 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 119,011 | $ 165,604 |
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities: | ||
Depreciation of fixed assets | 47,147 | 47,803 |
Amortization of intangibles | 222 | 223 |
(Earnings) loss from equity method investments, net of distributions | (2,697) | (7,386) |
Gain on sale of property, plant and equipment | (6,788) | (8,841) |
Amortization of stock-based awards | 13,921 | 12,546 |
Deferred compensation trust | 34,280 | 33,604 |
Deferred compensation obligation | 5,655 | 6,164 |
Deferred taxes | 34,286 | 143,601 |
Net retirement plan accrual (contributions) | (10,125) | 3,391 |
Changes in operating assets and liabilities | (126,049) | (52,775) |
Cash outflows from discontinued operations | (306,490) | |
Other items | 5,792 | 1,838 |
Cash provided by operating activities | 114,655 | 39,282 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | (103,587) | (147,068) |
Proceeds from the sales and maturities of marketable securities | 202,286 | 194,635 |
Capital expenditures | (48,576) | (73,883) |
Proceeds from disposal of property, plant and equipment | 25,881 | 29,905 |
Investments in partnerships and joint ventures | (402,434) | (21,537) |
Acquisitions, net of cash acquired | (240,754) | |
Other items | 7,236 | (197) |
Cash utilized by investing activities | (559,948) | (18,145) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | (9,718) | (111,658) |
Dividends paid | (29,941) | (32,363) |
Proceeds from issuance of 1.75% Senior Notes | 552,958 | |
Debt issuance costs | (3,186) | |
Repayment of Stork Notes and other borrowings | (326,279) | |
Borrowings under revolving lines of credit | 760,000 | |
Repayment of borrowings under revolving lines of credit | (760,000) | |
Distributions paid to noncontrolling interests | (12,829) | (3,508) |
Capital contributions by noncontrolling interests | 1,245 | 698 |
Taxes paid on vested restricted stock | (6,971) | (7,588) |
Stock options exercised | 2,681 | 923 |
Other items | 2,861 | (474) |
Cash provided (utilized) by financing activities | 170,821 | (153,970) |
Effect of exchange rate changes on cash | 22,077 | (48,999) |
Decrease in cash and cash equivalents | (252,395) | (181,832) |
Cash and cash equivalents at beginning of period | 1,949,886 | 1,993,125 |
Cash and cash equivalents at end of period | $ 1,697,491 | $ 1,811,293 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) | Mar. 31, 2016 |
1.750% 2016 Senior Notes | |
Debt instruments | |
Debt interest rate (as a percent) | 1.75% |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 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, 2016 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, 2016 and 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 2015 have been reclassified to conform to the 2016 presentation due to the implementation of new accounting pronouncements discussed below. Segment operating information for 2015 has been recast to reflect changes in the composition of the company’s reportable segments as discussed in Note 16. 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. The Condensed Consolidated Financial Statements as of and for the three months ended March 31, 2016 include the financial statements of Stork Holding B.V. (“Stork”) since March 1, 2016, the date of acquisition. See Note 17 for a further discussion of the acquisition. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements New accounting pronouncements implemented by the company during the first quarter of 2016 or requiring implementation in future periods are discussed below or in the related notes, where appropriate. In the first quarter of 2016, the company adopted Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” on a retrospective basis. This ASU requires entities to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent. As a result of the adoption of ASU 2015-17, deferred tax assets of $173 million were reclassified from current assets to noncurrent assets in the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-17 did not have any impact on the company’s results of operations or cash flows . In the first quarter of 2016, the company adopted ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of ASU 2015-16 did not have any impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2016, the company adopted ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update),” which clarifies the presentation and measurement of debt issuance costs incurred in connection with line of credit arrangements. The adoption of ASU 2015-15 did not have any impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2016, the company adopted ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” on a prospective basis. This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. The adoption of ASU 2015-05 did not have a material impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2016, the company adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” on a retrospective basis. 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. As a result of the adoption of ASU 2015-03, debt issuance costs of $6 million were reclassified from noncurrent assets to a direct deduction of long-term debt in the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-03 did not have any impact on the company’s results of operations or cash flows. In the first quarter of 2016, the company adopted 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. The adoption of ASU 2015-02 did not have a material impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2016, the company adopted 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. The adoption of ASU 2015-01 did not have any impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2016, the company adopted 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. The adoption of ASU 2014-12 did not have any impact on the company’s financial position, results of operations or cash flows. In April 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends certain aspects in ASU 2014-09. ASU 2016-10 amends how an entity should identify performance obligations for immaterial promised goods or service, shipping and handling activities and promises that may represent performance obligations. ASU 2016-08 also provides implementation guidance for determining the nature of licensing and royalties arrangements. ASU 2016-10 is effective upon adoption of ASU 2014-09. Management is currently evaluating the impact of adopting ASU 2016-10 on the company’s financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU is intended to simplify various aspects of the accounting for share-based payment award transactions which include income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Management is currently evaluating the impact of adopting ASU 2016-09 on the company’s financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the principal versus agent guidance in ASU 2014-09. ASU 2016-08 clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. ASU 2016-08 also reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. ASU 2016-08 is effective upon adoption of ASU 2014-09, “Revenue from Contracts with Customers”. Management is currently evaluating the impact of adopting ASU 2016-08 on the company’s financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting” which eliminates the requirement to retrospectively apply equity method accounting when an investor obtains significant influence over a previously held investment. ASU 2016-07 is effective for interim and annual reporting periods beginning after December 15, 2016, and should be applied prospectively. Management does not expect the adoption of ASU 2016-07 to have a material impact on the company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” This ASU clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship . ASU 2016-05 is effective for interim and annual reporting periods beginning after December 15, 2016. ASU 2016-05 can be applied on either a prospective or modified retrospective basis. Management does not expect the adoption of ASU 2016-05 to have a material impact on the company’s financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases: Amendments to the FASB Accounting Standards Codification,” which amends the existing guidance on accounting for leases. This ASU requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted and modified retrospective application is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Management is currently evaluating the impact of adopting ASU 2016-02 on the company’s financial position, results of operations or cash flows. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments — Overall - Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for a practicability exception. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2016-01 to have a material impact on the company’s financial position, results of operations or cash flows. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers — Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year. ASU 2014-09, “Revenue from Contracts with Customers,” 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. The company will now be required to adopt ASU 2014-09 for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of interim and annual reporting periods beginning after December 15, 2016. ASU 2014-09 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, cash flows and related disclosures. 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. Management does not expect the adoption of ASU 2014-15 to have a material impact on the company’s financial position, results of operations or cash flows. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
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”) for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 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 $ $ ) $ $ ) $ $ ) Ownership share of equity method investees’ other comprehensive loss ) ) ) ) Defined benefit pension and postretirement plan adjustments ) ) ) ) Unrealized gain on derivative contracts ) ) Unrealized gain on available-for-sale securities ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income attributable to noncontrolling interests — — Other comprehensive income (loss) attributable to Fluor Corporation $ $ ) $ $ ) $ $ ) The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended March 31, 2016 are as follows: (in thousands) Foreign Currency Translation Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss) Defined Benefit Pension and Postretirement Plans Unrealized Gain (Loss) on Derivative Contracts Unrealized Gain (Loss) on Available- for- Sale Securities Accumulated Other Comprehensive Income (Loss), Net Attributable to Fluor Corporation: Balance as of December 31, 2015 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) ) Amounts reclassified from AOCI — — Net other comprehensive income (loss) ) ) Balance as of March 31, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2015 $ ) $ — $ — $ ) $ — $ ) Other comprehensive loss before reclassifications ) — — ) — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — Balance as of March 31, 2016 $ ) $ — $ — $ ) $ — $ ) The changes in AOCI balances by component (after-tax) for the three months ended March 31, 2015 are as follows: (in thousands) Foreign Currency Translation Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss) Defined Benefit Pension and Postretirement Plans Unrealized Gain (Loss) on Derivative Contracts Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss), Net Attributable to Fluor Corporation: Balance as of December 31, 2014 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) ) — ) Amounts reclassified from AOCI — — ) Net other comprehensive income (loss) ) ) ) Balance as of March 31, 2015 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2014 $ $ — $ — $ ) $ — $ Other comprehensive income (loss) before reclassifications — — ) — Amounts reclassified from AOCI — — — — Net other comprehensive income income — — — Balance as of March 31, 2015 $ $ — $ — $ ) $ — $ 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 2016 2015 Component of AOCI: Defined benefit pension plan adjustments Various accounts (1) $ ) $ ) Income tax benefit Income tax expense Net of tax $ ) $ ) Unrealized loss on derivative contracts: Commodity and foreign currency contracts Total cost of revenue $ ) $ ) Interest rate contracts Interest expense ) ) Income tax benefit (net) Income tax expense Net of tax ) ) Less: Noncontrolling interests Net earnings attributable to noncontrolling interests ) ) Net of tax and noncontrolling interests $ ) $ ) Unrealized gain (loss) on available-for-sale securities Corporate general and administrative expense $ ) $ Income tax benefit (expense) Income tax expense ) Net of tax $ ) $ (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, 2016 | |
Income Taxes | |
Income Taxes | (4) Income Taxes The effective tax rates for the three months ended March 31, 2016 and 2015 were 37.1 percent and 33.5 percent, respectively. The higher effective rate for the three months ended March 31, 2016 is primarily due to foreign losses without benefit. Both periods benefit from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company. 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 2012. |
Cash Paid for Interest and Taxe
Cash Paid for Interest and Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Cash Paid for Interest and Taxes | |
Cash Paid for Interest and Taxes | (5) Cash Paid for Interest and Taxes C ash paid for interest was $13 million and $10 million for the three months ended March 31, 2016 and 2015, respectively. Income tax payments, net of refunds, were $27 million and $62 million during the three-month periods ended March 31, 2016 and 2015, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and 2015 are presented below: Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Net earnings attributable to Fluor Corporation $ $ Basic EPS attributable to Fluor Corporation: Weighted average common shares outstanding Basic earnings per share $ $ Diluted EPS attributable to Fluor Corporation: Weighted average common shares outstanding Diluted effect: Employee stock options, restricted stock units and shares and Value Driver Incentive units Conversion equivalent of dilutive convertible debt — Weighted average diluted shares outstanding Diluted earnings per share $ $ Anti-dilutive securities not included above During the three months ended March 31, 2016 and 2015, the company repurchased and cancelled 202,650 and 1,939,997 shares, respectively, of its common stock under its stock repurchase program for $10 million and $112 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | (7) Fair Value Measurements 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, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 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) $ $ $ — $ — $ $ $ — $ — Marketable securities, current (2) — — — — Deferred compensation trusts (3) — — — — Marketable securities, noncurrent (4) — — — — Derivative assets (5) Commodity contracts — — — — — — Foreign currency contracts — — — — Liabilities: Derivative liabilities (5) Commodity contracts $ $ — $ $ — $ $ — $ $ — Foreign currency contracts — — — — (1) Consists primarily of registered m oney 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 i nvestments 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 m oney 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 i nvestments 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, 2016: money market funds of $4 million, U.S. agency securities of $14 million, U.S. Treasury securities of $75 million and corporate debt securities of $126 million. As of December 31, 2015, available-for-sale securities consisted of money market funds of $19 million, U.S. agency securities of $18 million, U.S. Treasury securities of $102 million and corporate debt securities of $189 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, 2016 and 2015, proceeds from sales and maturities of available-for-sale securities were $122 million and $183 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, 2016 December 31, 2015 Fair Value Carrying Fair Carrying Fair (in thousands) Hierarchy Value Value Value Value Assets: Cash (1) Level 1 $ $ $ $ Cash equivalents (2) Level 2 Marketable securities, current (3) Level 2 Notes receivable, including noncurrent portion (4) Level 3 Liabilities: 1.750% Senior Notes (5) Level 2 $ $ $ — $ — 3.375% Senior Notes (5) Level 2 3.5% Senior Notes (5) Level 2 Revolving Credit Facility (6) Level 2 — — Other borrowings, including noncurrent portion (7) Level 2 — — (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 1.750% Senior Notes, 3.375% Senior Notes and 3.5% Senior Notes were estimated based on quoted market prices for similar issues. (6) Borrowings under the revolving credit facility were assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The carrying amount of the borrowings under this revolving credit facility approximates fair value because of the short-term maturity. (7) Other borrowings as of March 31, 2016 represent current and noncurrent borrowings under bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The majority of these borrowings mature within one year. The carrying amounts of the borrowings under these arrangements approximate fair value because of the short-term maturity. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016, the company had total gross notional amounts of $766 million of foreign currency contracts and $7 million of commodity contracts outstanding relating to hedging of 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 2019. The commodity contracts are of varying duration, none of which extend beyond December 2017. The impact to earnings due to hedge ineffectiveness was immaterial for the three months ended March 31, 2016 and 2015. The fair values of derivatives designated as hedging instruments under ASC 815 as of March 31, 2016 and December 31, 2015 were as follows: Asset Derivatives Liability Derivatives Balance Sheet March 31, December 31, Balance Sheet March 31, December 31, (in thousands) Location 2016 2015 Location 2016 2015 Commodity contracts Other current assets $ — $ Other accrued liabilities $ $ Foreign currency contracts Other current assets Other accrued liabilities Commodity contracts Other assets — Noncurrent liabilities Foreign currency contracts Other assets Noncurrent liabilities Total $ $ $ $ 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, 2016 and 2015 were as follows: Three Months Ended March 31, Fair Value Hedges (in thousands) Location of Gain (Loss) 2016 2015 Foreign currency contracts Corporate general and administrative expense $ $ ) 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, 2016 and 2015 was as follows: After-Tax Amount of Gain (Loss) Recognized in OCI After-Tax Amount of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended March 31, Three Months Ended March 31, Cash Flow Hedges (in thousands) 2016 2015 Location of Gain (Loss) 2016 2015 Commodity contracts $ $ ) Total cost of revenue $ ) $ ) Foreign currency contracts Total cost of revenue ) Interest rate contracts — — Interest expense ) ) Total $ $ $ ) $ ) As of March 31, 2016, the company also had total gross notional amounts of $64 million of foreign currency contracts and $2 million of commodity contracts outstanding that were not designated as hedging instruments. These contracts primarily related to engineering and construction and operations and maintenance contract obligations denominated in nonfunctional currencies. Recognized losses of approximately $2 million associated with these contracts were included in Cost of Revenues for the three months ended March 31, 2016. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Retirement Benefits | |
Retirement Benefits | (9) Retirement Benefits Net periodic pension expense for the company’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) 2016 (1) 2015 2016 2015 Service cost $ — $ $ $ Interest cost — Expected return on assets — ) ) ) Amortization of prior service cost — ) ) Recognized net actuarial loss — Net periodic pension expense $ — $ $ $ (1) In December 2015, the company settled the remaining obligations associated with its U.S. defined benefit pension plan. A detailed discussion of the plan settlement is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. The company currently expects to contribute between $15 million and $20 million into its non-U.S. defined benefit pension plans during 2016, which is expected to be in excess of the minimum funding required. During the three months ended March 31, 2016, contributions of approximately $9 million were made by the company. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2016 | |
Financing Arrangements | |
Financing Arrangements | (10) Financing Arrangements As of March 31, 2016, the company had a combination of committed and uncommitted lines of credit totaling $6.1 billion that may be used for revolving loans and letters of credit. The committed lines of credit include 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 February 2021. The company may utilize up to $1.75 billion in the aggregate of the combined $3.5 billion committed lines of credit for revolving loans, which may be used for acquisitions and/or general purposes. 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 the greater of $750 million or €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. Also included in committed lines of credit as of March 31, 2016 was a €110 million Super Senior Revolving Credit Facility that was assumed in connection with the acquisition of Stork. This facility was available for revolving loans, bank guarantees and letters of credit and accrued interest at EURIBOR plus 3.75%. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility that may also be used to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%. Letters of credit are provided in the ordinary course of business primarily to indemnify the company’s clients if the company fails to perform its obligations under its contracts. As of March 31, 2016, letters of credit and borrowings totaling $1.9 billion were outstanding under these committed and uncommitted lines of credit. As an alternative to letters of credit, surety bonds are used as a form of credit enhancement. In March 2016, the company issued €500 million of 1.750% Senior Notes (the “2016 Notes”) due March 21, 2023 and received proceeds of €497 million, net of underwriting discounts. Interest on the 2016 Notes is payable annually on March 21 of each year, beginning on March 21, 2017. Prior to December 21, 2022, the company may redeem the 2016 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 December 21, 2022, the company may redeem the 2016 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. Additionally, the company may redeem the 2016 Notes at any time upon the occurrence of certain changes in U.S. tax laws at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. 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, and began 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 redemption. 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 the 2016 Notes, 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 applicable notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of redemption. The company is generally not limited under the indentures governing the 2016 Notes, 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 conjunction with the acquisition of Stork on March 1, 2016, the company assumed Stork’s outstanding debt obligations, including its 11.0% Super Senior Notes due 2017 (the ‘‘Stork Notes’’), borrowings under the €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. See Note 17 for a further discussion of the acquisition. Other borrowings of $51 million as of March 31, 2016 represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork, exclusive of the Stork Notes. As of March 31, 2016, the company was in compliance with all of the financial covenants related to its debt agreements. |
Stock-Based Plans
Stock-Based Plans | 3 Months Ended |
Mar. 31, 2016 | |
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 are provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. In the first quarter of 2016 and 2015, restricted stock units totaling 525,975 and 520,947, respectively, were granted to executives, at weighted-average per share prices of $46.07 and $59.05, respectively. For the company’s executives, the restricted stock units granted in 2016 and 2015 generally vest ratably over three years. During the first quarter of 2016 and 2015, options for the purchase of 662,001 shares at a weighted-average exercise price of $46.07 per share and 963,288 shares at a weighted-average exercise price of $59.05 per share, respectively, were awarded to executives. The options granted in 2016 and 2015 vest ratably over three years. The options expire ten years after the grant date. In the first quarter of 2016 and 2015, performance-based Value Driver Incentive (“VDI”) units totaling 296,052 and 430,970, respectively, were granted to executives at weighted-average per share prices of $46.07 and $59.05, 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 2016 and 2015 can only be settled in company stock and are accounted for as equity awards in accordance with ASC 718. Both the VDI awards granted in 2016 and 2015 vest after a period of approximately three years. VDI awards granted during 2016 are also subject to a post-vest holding period restriction for the period of three years. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and 2015, net earnings attributable to noncontrolling interests were $15 million and $22 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $13 million and $4 million for the three months ended March 31, 2016 and 2015, respectively. Capital contributions by noncontrolling interests were $1 million and $0.7 million for the three months ended March 31, 2016 and 2015, respectively. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2016 | |
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. Although the asserted value of these matters may be significant, 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. Other Matters The company has 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. As of March 31, 2016 and December 31, 2015, the company had recorded $36 million and $30 million, respectively, of claim revenue for costs incurred to date and such costs are included in contract work in progress. Additional costs, which will increase the claim revenue balance over time, are expected to be incurred in future quarters. The company believes the ultimate recovery of incurred and future costs related to these claims is probable in accordance with ASC 605-35-25. 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, 2016 | |
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 $19.9 billion as of March 31, 2016. 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, 2016 and December 31, 2015 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. |
Partnerships and Joint Ventures
Partnerships and Joint Ventures | 3 Months Ended |
Mar. 31, 2016 | |
Partnerships and Joint Ventures | |
Partnerships and Joint Ventures | (15) Partnerships and Joint Ventures 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. Receivables related to work performed for unconsolidated partnerships and joint ventures included in “Accounts and notes receivable, net” in the Condensed Consolidated Balance Sheet were $212 million and $132 million as of March 31, 2016 and December 31, 2015, respectively. For unconsolidated partnerships and joint ventures in the construction industry, the company generally recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Earnings and uses the one-line equity method of accounting in the Condensed Consolidated Balance Sheet, which is a common application of ASC 810-10-45-14 in the construction industry. The equity method of accounting is also used for other investments in entities where the company has significant influence. The company’s investments in unconsolidated partnerships and joint ventures accounted for under these methods amounted to $714 million and $292 million as of March 31, 2016 and December 31, 2015, respectively, and were classified under “Investments and goodwill” and “Other accrued liabilities” in the Condensed Consolidated Balance Sheet. In August 2015, the company entered into an agreement to form COOEC Fluor Heavy Industries Co., Ltd. (“CFHI”), a joint venture in which the company has a 49% ownership interest and Offshore Oil Engineering Co., Ltd., a subsidiary of China National Offshore Oil Corporation, has 51% ownership interest. Through CFHI, the two companies own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. In February 2016, the company made an initial cash investment of $350 million and an additional investment of $140 million is targeted for the third quarter of 2016. The carrying value of the company’s investment in CFHI was $352 million as of March 31, 2016. Variable Interest Entities In accordance with ASC 810, “Consolidation,” the company assesses its partnerships and joint ventures at inception to determine if any meet the qualifications of a variable interest entity (“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. 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 $272 million and $208 million as of March 31, 2016 and December 31, 2015, 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, 2016 for the unconsolidated VIEs were $15 million. In some cases, the company is required to consolidate certain VIEs. As of March 31, 2016, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.0 billion and $540 million, respectively. As of December 31, 2015, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $863 million and $443 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 some of the company’s more significant or unique VIEs is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. |
Operating Information by Segmen
Operating Information by Segment | 3 Months Ended |
Mar. 31, 2016 | |
Operating Information by Segment | |
Operating Information by Segment | (16) Operating Information by Segment During the first quarter of 2016, the company changed the composition of its reportable segments to better reflect the diverse end markets that the company serves. The company now reports its operating results in four reportable segments as follows: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government; and Maintenance, Modification & Asset Integrity. Segment operating information and assets for 2015 have been recast to reflect these changes. The Energy, Chemicals & Mining segment is driven by the supply and demand for commodities. This segment provides design, engineering, procurement, construction, fabrication and project management services for chemicals and petrochemicals, downstream refining, pipelines, upstream oil and gas production, liquefied natural gas and offshore production markets. This segment also provides design, engineering, procurement, construction, project management and commissioning and start-up support for mining and metals markets. The Industrial, Infrastructure & Power segment provides design, engineering, procurement, construction, project management, start-up and commissioning, and technical services to the transportation, commercial and institutional, life sciences and advanced manufacturing, telecommunications, microelectronics and water sectors as well as the gas fueled, solid fueled, environmental compliance, renewables, and nuclear power markets. The Industrial, Infrastructure & Power segment includes the operations of NuScale Power, LLC, an Oregon-based designer of small modular nuclear reactors, which is managed as a separate operating segment within the Industrial, Infrastructure & Power segment. The Government segment provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad. The Maintenance, Modification & Asset Integrity segment is comprised of several operating segments that do not meet the requirements under ASC 280, “Segment Reporting” for separate disclosure, and therefore, have been combined under the aggregation criteria of ASC 280. The Maintenance, Modification & Asset Integrity segment includes the operations of the company’s equipment business, temporary staffing, power services, the former operations & maintenance business line as well as the newly acquired Stork. For service contracts (including maintenance contracts) that do not satisfy the criteria for revenue recognition using the percentage-of-completion method, revenue is recognized when services are performed. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract work in progress. Amounts billed to clients in excess of revenue recognized on service contracts to date are classified as a current liability under advance billings on contracts. Operating information by reportable segment is as follows: Three Months Ended March 31, External Revenue (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity Total external revenue $ $ Intercompany revenue for the Maintenance, Modification & Asset Integrity segment , excluded from the amounts shown above, was $117 million and $115 million for the three months ended March 31, 2016 and 2015, respectively. Three Months Ended March 31, Segment Profit (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity Total segment profit $ $ Industrial, Infrastructure & Power segment profit for the three months ended March 31, 2016 and 2015 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 $26 million and $17 million for the three months ended March 31, 2016 and 2015, respectively. NuScale expenses were net of qualified reimbursable expenses of $14 million for both the three month periods of 2016 and 2015. 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. 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) 2016 2015 Total segment profit $ $ Corporate general and administrative expense ) ) Interest income (expense), net ) ) Earnings attributable to noncontrolling interests Earnings before taxes $ $ Total assets by segment are as follows: March 31, December 31, Total Assets by Segment (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity The increase in total assets in the Energy, Chemicals & Mining segment resulted from the company’s investment in CFHI and increased working capital in support of project execution activities . The increase in total assets in the Maintenance, Modification & Asset Integrity resulted from the company’s acquisition of Stork, as well as increased working capital in support of project execution activities. |
Acquisition of Stork Holding B.
Acquisition of Stork Holding B.V. | 3 Months Ended |
Mar. 31, 2016 | |
Acquisition of Stork Holding B.V. | |
Acquisition of Stork Holding B.V. | (17) Acquisition of Stork Holding B.V. In December 2015, the company signed an agreement to acquire 100 percent of Stork for an aggregate purchase price of €695 million (or approximately $756 million), including the assumption of debt and other liabilities. Stork, based in the Netherlands, is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets. On March 1, 2016 (“the acquisition date”), the company completed the Stork acquisition and paid €276 million (or approximately $300 million) in cash consideration. The company borrowed €200 million (or approximately $217 million) under its $1.7 billion Revolving Loan and Letter of Credit Facility, and paid €76 million (or approximately $83 million) of cash on hand to initially finance the Stork acquisition. The €200 million borrowed under the $1.7 billion Revolving Loan and Letter of Credit Facility was subsequently repaid from the net proceeds of the 2016 Notes as discussed in Note 10. In conjunction with the acquisition the company assumed Stork’s outstanding debt obligations, including the Stork Notes, borrowings under a €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility that is also available to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%. The initial accounting for assets acquired and liabilities assumed in connection with the Stork acquisition is incomplete as of the filing date of this Form 10-Q. Third party valuations for property, plant and equipment, intangible assets and pension obligations are still underway; and the company is continuing to assess deferred taxes, certain tax positions and other liabilities related to the acquisition. Therefore, the amounts recognized in the financial statements for the business combination have been determined provisionally. The aggregate purchase price noted above has been preliminarily allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible assets acquired, totaling €532 million (or approximately $578 million), was preliminarily recorded as goodwill and intangible assets. The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. The following table summarizes our preliminary estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date: (in thousands) In EUR In USD Cash and cash equivalents € $ Accounts and notes receivable Contract work in progress Other current assets Property, plant and equipment Investments Deferred taxes, net Goodwill and intangible assets (1) Trade accounts payable ) ) Advance billings on contracts ) ) Other accrued liabilities ) ) Revolving credit facility and other borrowings ) ) Long-term debt ) ) Noncurrent liabilities ) ) Noncontrolling interests ) ) Net assets acquired € $ (1) Goodwill and intangible assets represent the excess of the purchase price over the fair value of the underlying net assets acquired. A third party valuation is currently underway to determine the fair value of identifiable intangible assets and their useful lives. Acquired intangible assets are expected to consist of customer relationships and trade names. Factors contributing to the goodwill balance include the acquired established workforce and the estimated future synergies associated with the combined operations. Of the total goodwill recorded in conjunction with the Stork acquisition, none is expected to be deductible for tax purposes. The goodwill recognized in conjunction with the Stork acquisition will be reported in the Maintenance, Modification & Asset Integrity segment. Revenue and earnings before taxes from Stork of $121 million and $3 million (excluding transaction costs, integration costs and interest expense), respectively, since the acquisition date have been included in the Condensed Consolidated Statement of Earnings for the three months ended March 31, 2016. Transaction and integration costs of $10 million and $6 million, respectively, were included in corporate general and administrative expense for the three months ended March 31, 2016. The following pro forma financial information reflects the Stork acquisition as if it had occurred on January 1, 2015 and includes adjustments for debt refinancing and transaction costs. Three Months Ended March 31, (in thousands) 2016 2015 Pro forma revenue $ $ Pro forma net earnings attributable to Fluor Corporation |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations | |
Discontinued Operations | (18) Discontinued Operations During the first quarter of 2015 the company made payments totaling $306 million to settle certain lead exposure cases associated with the divested lead business of St. Joe Minerals Corporation and The Doe Run Company in Herculaneum, Missouri, which the company sold in 1994. The company has filed suit against the buyer seeking indemnification for all liabilities arising from these lead exposures cases. |
Other Comprehensive Income (L26
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Comprehensive Income (Loss) | |
Schedule of tax effects of components of other comprehensive income (loss) | Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 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 $ $ ) $ $ ) $ $ ) Ownership share of equity method investees’ other comprehensive loss ) ) ) ) Defined benefit pension and postretirement plan adjustments ) ) ) ) Unrealized gain on derivative contracts ) ) Unrealized gain on available-for-sale securities ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income attributable to noncontrolling interests — — Other comprehensive income (loss) attributable to Fluor Corporation $ $ ) $ $ ) $ $ ) |
Schedule of changes in accumulated other comprehensive income balances by component (after-tax) | (in thousands) Foreign Currency Translation Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss) Defined Benefit Pension and Postretirement Plans Unrealized Gain (Loss) on Derivative Contracts Unrealized Gain (Loss) on Available- for- Sale Securities Accumulated Other Comprehensive Income (Loss), Net Attributable to Fluor Corporation: Balance as of December 31, 2015 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) ) Amounts reclassified from AOCI — — Net other comprehensive income (loss) ) ) Balance as of March 31, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2015 $ ) $ — $ — $ ) $ — $ ) Other comprehensive loss before reclassifications ) — — ) — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — Balance as of March 31, 2016 $ ) $ — $ — $ ) $ — $ ) (in thousands) Foreign Currency Translation Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss) Defined Benefit Pension and Postretirement Plans Unrealized Gain (Loss) on Derivative Contracts Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss), Net Attributable to Fluor Corporation: Balance as of December 31, 2014 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) ) — ) Amounts reclassified from AOCI — — ) Net other comprehensive income (loss) ) ) ) Balance as of March 31, 2015 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2014 $ $ — $ — $ ) $ — $ Other comprehensive income (loss) before reclassifications — — ) — Amounts reclassified from AOCI — — — — Net other comprehensive income income — — — Balance as of March 31, 2015 $ $ — $ — $ ) $ — $ |
Schedule of significant items reclassified out of AOCI and corresponding location and impact | Three Months Ended Location in Condensed March 31, (in thousands) Consolidated Statement of Earnings 2016 2015 Component of AOCI: Defined benefit pension plan adjustments Various accounts (1) $ ) $ ) Income tax benefit Income tax expense Net of tax $ ) $ ) Unrealized loss on derivative contracts: Commodity and foreign currency contracts Total cost of revenue $ ) $ ) Interest rate contracts Interest expense ) ) Income tax benefit (net) Income tax expense Net of tax ) ) Less: Noncontrolling interests Net earnings attributable to noncontrolling interests ) ) Net of tax and noncontrolling interests $ ) $ ) Unrealized gain (loss) on available-for-sale securities Corporate general and administrative expense $ ) $ Income tax benefit (expense) Income tax expense ) Net of tax $ ) $ (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, 2016 | |
Earnings Per Share | |
Schedule of calculations of basic and diluted EPS | Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Net earnings attributable to Fluor Corporation $ $ Basic EPS attributable to Fluor Corporation: Weighted average common shares outstanding Basic earnings per share $ $ Diluted EPS attributable to Fluor Corporation: Weighted average common shares outstanding Diluted effect: Employee stock options, restricted stock units and shares and Value Driver Incentive units Conversion equivalent of dilutive convertible debt — Weighted average diluted shares outstanding Diluted earnings per share $ $ Anti-dilutive securities not included above |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | March 31, 2016 December 31, 2015 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) $ $ $ — $ — $ $ $ — $ — Marketable securities, current (2) — — — — Deferred compensation trusts (3) — — — — Marketable securities, noncurrent (4) — — — — Derivative assets (5) Commodity contracts — — — — — — Foreign currency contracts — — — — Liabilities: Derivative liabilities (5) Commodity contracts $ $ — $ $ — $ $ — $ $ — Foreign currency contracts — — — — (1) Consists primarily of registered m oney 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 i nvestments 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 m oney 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 i nvestments 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 | March 31, 2016 December 31, 2015 Fair Value Carrying Fair Carrying Fair (in thousands) Hierarchy Value Value Value Value Assets: Cash (1) Level 1 $ $ $ $ Cash equivalents (2) Level 2 Marketable securities, current (3) Level 2 Notes receivable, including noncurrent portion (4) Level 3 Liabilities: 1.750% Senior Notes (5) Level 2 $ $ $ — $ — 3.375% Senior Notes (5) Level 2 3.5% Senior Notes (5) Level 2 Revolving Credit Facility (6) Level 2 — — Other borrowings, including noncurrent portion (7) Level 2 — — (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 1.750% Senior Notes, 3.375% Senior Notes and 3.5% Senior Notes were estimated based on quoted market prices for similar issues. (6) Borrowings under the revolving credit facility were assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The carrying amount of the borrowings under this revolving credit facility approximates fair value because of the short-term maturity. (7) Other borrowings as of March 31, 2016 represent current and noncurrent borrowings under bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The majority of these borrowings mature within one year. The carrying amounts of the borrowings under these arrangements approximate fair value because of the short-term maturity. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 2016 2015 Location 2016 2015 Commodity contracts Other current assets $ — $ Other accrued liabilities $ $ Foreign currency contracts Other current assets Other accrued liabilities Commodity contracts Other assets — Noncurrent liabilities Foreign currency contracts Other assets Noncurrent liabilities Total $ $ $ $ |
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 (Loss) Recognized in OCI After-Tax Amount of Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended March 31, Three Months Ended March 31, Cash Flow Hedges (in thousands) 2016 2015 Location of Gain (Loss) 2016 2015 Commodity contracts $ $ ) Total cost of revenue $ ) $ ) Foreign currency contracts Total cost of revenue ) Interest rate contracts — — Interest expense ) ) Total $ $ $ ) $ ) |
Hedging instruments designated as fair value hedges | |
Derivatives and Hedging | |
Schedule of pre-tax net gains (losses) recognized in earnings | Three Months Ended March 31, Fair Value Hedges (in thousands) Location of Gain (Loss) 2016 2015 Foreign currency contracts Corporate general and administrative expense $ $ ) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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) 2016 (1) 2015 2016 2015 Service cost $ — $ $ $ Interest cost — Expected return on assets — ) ) ) Amortization of prior service cost — ) ) Recognized net actuarial loss — Net periodic pension expense $ — $ $ $ (1) In December 2015, the company settled the remaining obligations associated with its U.S. defined benefit pension plan. A detailed discussion of the plan settlement is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. |
Operating Information by Segm31
Operating Information by Segment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Operating Information by Segment | |
Schedule of operating information and total assets by reportable segment | Three Months Ended March 31, External Revenue (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity Total external revenue $ $ Three Months Ended March 31, Segment Profit (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity Total segment profit $ $ March 31, December 31, Total Assets by Segment (in millions) 2016 2015 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Maintenance, Modification & Asset Integrity |
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) 2016 2015 Total segment profit $ $ Corporate general and administrative expense ) ) Interest income (expense), net ) ) Earnings attributable to noncontrolling interests Earnings before taxes $ $ |
Acquisition of Stork Holding 32
Acquisition of Stork Holding B.V. (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Acquisition of Stork Holding B.V. | |
Summary of preliminary estimate of fair values of assets acquired and liabilities assumed as of the acquisition date | (in thousands) In EUR In USD Cash and cash equivalents € $ Accounts and notes receivable Contract work in progress Other current assets Property, plant and equipment Investments Deferred taxes, net Goodwill and intangible assets (1) Trade accounts payable ) ) Advance billings on contracts ) ) Other accrued liabilities ) ) Revolving credit facility and other borrowings ) ) Long-term debt ) ) Noncurrent liabilities ) ) Noncontrolling interests ) ) Net assets acquired € $ (1) Goodwill and intangible assets represent the excess of the purchase price over the fair value of the underlying net assets acquired. A third party valuation is currently underway to determine the fair value of identifiable intangible assets and their useful lives. Acquired intangible assets are expected to consist of customer relationships and trade names. Factors contributing to the goodwill balance include the acquired established workforce and the estimated future synergies associated with the combined operations. Of the total goodwill recorded in conjunction with the Stork acquisition, none is expected to be deductible for tax purposes. The goodwill recognized in conjunction with the Stork acquisition will be reported in the Maintenance, Modification & Asset Integrity segment. |
Schedule of pro forma financial information | Three Months Ended March 31, (in thousands) 2016 2015 Pro forma revenue $ $ Pro forma net earnings attributable to Fluor Corporation |
Recent Accounting Pronounceme33
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New accounting pronouncements implemented | ||
Noncurrent deferred tax assets | $ 362,699 | $ 394,832 |
Other noncurrent assets | 209,096 | 201,899 |
Long-term debt | $ 1,572,001 | 986,564 |
ASU 2015-17, Balance Sheet Classification of Deferred Taxes | Early Adoption | ||
New accounting pronouncements implemented | ||
Current deferred tax assets | (173,000) | |
Noncurrent deferred tax assets | 173,000 | |
ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs | Adjustment | ||
New accounting pronouncements implemented | ||
Other noncurrent assets | (6,000) | |
Long-term debt | $ (6,000) |
Other Comprehensive Income (L34
Other Comprehensive Income (Loss) - Tax Effects of Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | $ 28,253 | $ (77,584) |
Less: Other comprehensive income attributable to noncontrolling interests, Before-Tax | 56 | 591 |
Other comprehensive income (loss) attributable to Fluor Corporation, Before-Tax | 28,197 | (78,175) |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | (12,811) | 28,570 |
Other comprehensive income (loss) attributable to Fluor Corporation, Tax (Expense) Benefit | (12,811) | 28,570 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 15,442 | (49,014) |
Less: Other comprehensive income attributable to noncontrolling interests, Net-of-Tax | 56 | 591 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax | 15,386 | (49,605) |
Foreign Currency Translation, including noncontrolling interests | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | 35,755 | (78,271) |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | (13,419) | 29,547 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 22,336 | (48,724) |
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss) | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | (12,092) | (6,002) |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | 4,074 | 1,521 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (8,018) | (4,481) |
Defined Benefit Pension and Postretirement Plan adjustments, including noncontrolling interests | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | (2,550) | 4,301 |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | (775) | (1,613) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (3,325) | 2,688 |
Unrealized Gain (Loss) on Derivative Contracts, including noncontrolling interests | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | 5,785 | 1,414 |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | (2,183) | (520) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 3,602 | 894 |
Unrealized Gain (Loss) on Available-for-Sale Securities, including noncontrolling interests | ||
Other comprehensive income (loss), Before-Tax Amount: | ||
Total other comprehensive income (loss), Before-Tax | 1,355 | 974 |
Other comprehensive income (loss), Tax (Expense) Benefit: | ||
Total other comprehensive income (loss), Tax (Expense) Benefit | (508) | (365) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ 847 | $ 609 |
Other Comprehensive Income (L35
Other Comprehensive Income (Loss) - Changes in AOCI Balances by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in AOCI balances by component (after-tax) | ||
BALANCE | $ 3,113,499 | |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 15,442 | $ (49,014) |
BALANCE | 3,220,834 | |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (432,775) | (484,212) |
Other comprehensive income (loss) before reclassifications | 12,333 | (52,451) |
Amounts reclassified from AOCI | 3,053 | 2,846 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 15,386 | (49,605) |
BALANCE | (417,389) | (533,817) |
Foreign Currency Translation | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (222,569) | (119,416) |
Other comprehensive income (loss) before reclassifications | 22,362 | (49,244) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 22,362 | (49,244) |
BALANCE | (200,207) | (168,660) |
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss) | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (37,949) | (30,436) |
Other comprehensive income (loss) before reclassifications | (8,018) | (4,481) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (8,018) | (4,481) |
BALANCE | (45,967) | (34,917) |
Defined Benefit Pension and Postretirement Plans | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (162,530) | (325,145) |
Other comprehensive income (loss) before reclassifications | (4,617) | |
Amounts reclassified from AOCI | 1,292 | 2,688 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (3,325) | 2,688 |
BALANCE | (165,855) | (322,457) |
Unrealized Gain (Loss) on Derivative Contracts | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (9,255) | (8,954) |
Other comprehensive income (loss) before reclassifications | 1,796 | 596 |
Amounts reclassified from AOCI | 1,724 | 227 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 3,520 | 823 |
BALANCE | (5,735) | (8,131) |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (472) | (261) |
Other comprehensive income (loss) before reclassifications | 810 | 678 |
Amounts reclassified from AOCI | 37 | (69) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 847 | 609 |
BALANCE | 375 | 348 |
Noncontrolling interests | ||
Changes in AOCI balances by component (after-tax) | ||
Other comprehensive income (loss) before reclassifications | (42) | 517 |
Amounts reclassified from AOCI | 98 | 74 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 56 | 591 |
Accumulated Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (624) | 643 |
BALANCE | (568) | 1,234 |
Foreign Currency Translation Attributable to Noncontrolling Interests | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (114) | 1,328 |
Other comprehensive income (loss) before reclassifications | (26) | 520 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (26) | 520 |
BALANCE | (140) | 1,848 |
Unrealized Gain (Loss) on Derivative Contracts Attributable Noncontrolling Interests | ||
Changes in AOCI balances by component (after-tax) | ||
BALANCE | (510) | (685) |
Other comprehensive income (loss) before reclassifications | (16) | (3) |
Amounts reclassified from AOCI | 98 | 74 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 82 | 71 |
BALANCE | $ (428) | $ (614) |
Other Comprehensive Income (L36
Other Comprehensive Income (Loss) - Significant Items Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassifications out of accumulated other comprehensive income (loss) | ||
Total cost of revenue | $ (4,168,067) | $ (4,251,189) |
Interest expense | (14,645) | (12,168) |
Corporate general and administrative expense | (55,113) | (41,110) |
Income tax expense | (70,209) | (83,274) |
NET EARNINGS | 119,011 | 165,604 |
Net earnings attributable to noncontrolling interests | 14,688 | 21,525 |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | 104,323 | 144,079 |
Defined Benefit Pension and Postretirement Plans | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Adjustments | (2,067) | (4,301) |
Income tax benefit | 775 | 1,613 |
Net of tax | (1,292) | (2,688) |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Income tax expense | 1,069 | 180 |
NET EARNINGS | (1,822) | (301) |
Net earnings attributable to noncontrolling interests | (98) | (74) |
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | (1,724) | (227) |
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 | (2,472) | (62) |
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 | (59) | 110 |
Income tax expense | 22 | (41) |
NET EARNINGS | $ (37) | $ 69 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes | ||
Effective tax rate, continuing operations (as a percent) | 37.10% | 33.50% |
Cash Paid for Interest and Ta38
Cash Paid for Interest and Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Paid for Interest and Taxes | ||
Interest | $ 13 | $ 10 |
Income taxes payments, net of refunds | $ 27 | $ 62 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Basic and Diluted EPS and Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Amounts attributable to Fluor Corporation: for periods with discontinued operations | ||
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION | $ 104,323 | $ 144,079 |
Basic EPS attributable to Flour Corporation: | ||
Weighted average common shares outstanding (in shares) | 138,950,000 | 147,731,000 |
Basic earnings per share (in dollars per share) | $ 0.75 | $ 0.98 |
Diluted EPS attributable to Fluor Corporation: | ||
Weighted average common shares outstanding (in shares) | 138,950,000 | 147,731,000 |
Diluted effect: | ||
Employee stock options, restricted stock units and shares and Value Driver Incentive units (in shares) | 1,915,000 | 1,825,000 |
Conversion equivalent of dilutive convertible debt (in shares) | 359,000 | |
Weighted average diluted shares outstanding (in shares) | 140,865,000 | 149,915,000 |
Diluted earnings per share (in dollars per share) | $ 0.74 | $ 0.96 |
Anti-dilutive securities not included above (in shares) | 3,727,000 | 3,162,000 |
Repurchases of common stock | ||
Common stock repurchased and cancelled, shares (in shares) | 202,650 | 1,939,997 |
Common stock repurchased and cancelled, amount (in dollars) | $ 10,000 | $ 112,000 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Fair value of assets and liabilities measured on recurring basis | |||||
Other-than-temporary impairment of available-for-sale securities | $ 0 | $ 0 | |||
Proceeds from sale and maturity of available-for-sale securities | |||||
Proceeds from the sales and maturities of available-for-sale securities | $ 122,000 | $ 183,000 | |||
Marketable securities, available-for-sale | Minimum | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Debt securities maturity period | 1 year | 1 year | |||
Marketable securities, available-for-sale | Maximum | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Debt securities maturity period | 3 years | 3 years | |||
Fair Value, Measurements, Recurring | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 4,262 | 19,161 | $ 4,262 | $ 19,161 | |
Marketable securities, current | 61,549 | 87,763 | 61,549 | 87,763 | |
Deferred compensation trusts | 27,190 | 60,003 | 27,190 | 60,003 | |
Marketable securities, noncurrent | 152,843 | 220,634 | 152,843 | 220,634 | |
Fair Value, Measurements, Recurring | Money market funds | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 4,000 | 19,000 | 4,000 | 19,000 | |
Fair Value, Measurements, Recurring | U.S. agency securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 14,000 | 18,000 | 14,000 | 18,000 | |
Fair Value, Measurements, Recurring | U.S. Treasury securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 75,000 | 102,000 | 75,000 | 102,000 | |
Fair Value, Measurements, Recurring | Corporate debt securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 126,000 | 189,000 | 126,000 | 189,000 | |
Fair Value, Measurements, Recurring | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 341 | 341 | |||
Derivative liabilities | 1,811 | 2,510 | 1,811 | 2,510 | |
Fair Value, Measurements, Recurring | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 13,997 | 8,439 | 13,997 | 8,439 | |
Derivative liabilities | 11,949 | 14,138 | 11,949 | 14,138 | |
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 4,262 | 19,161 | 4,262 | 19,161 | |
Deferred compensation trusts | 27,190 | 60,003 | 27,190 | 60,003 | |
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Marketable securities, current | 61,549 | 87,763 | 61,549 | 87,763 | |
Marketable securities, noncurrent | 152,843 | 220,634 | 152,843 | 220,634 | |
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 341 | 341 | |||
Derivative liabilities | 1,811 | 2,510 | 1,811 | 2,510 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 13,997 | 8,439 | 13,997 | 8,439 | |
Derivative liabilities | $ 11,949 | $ 14,138 | $ 11,949 | $ 14,138 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Required to be Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2014 | Sep. 30, 2011 |
1.750% 2016 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) | 1.75% | |||
3.375% 2011 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) | 3.375% | 3.375% | 3.375% | |
3.5% 2014 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% | |
Carrying Value | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Marketable securities, held-to-maturity | $ 105,581 | $ 109,329 | ||
Notes receivable, including noncurrent portion | 20,624 | 19,182 | ||
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 | 51,346 | |||
Carrying Value | 1.750% 2016 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 564,984 | |||
Carrying Value | 3.375% 2011 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 495,376 | 495,165 | ||
Carrying Value | 3.5% 2014 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 491,640 | 491,399 | ||
Carrying Value | Super Senior Revolving Credit Facility | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 87,581 | |||
Fair Value | Level 2 | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Marketable securities, held-to-maturity | 105,581 | 109,329 | ||
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 | 51,346 | |||
Fair Value | Level 2 | 1.750% 2016 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 581,586 | |||
Fair Value | Level 2 | 3.375% 2011 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 527,160 | 509,025 | ||
Fair Value | Level 2 | 3.5% 2014 Senior Notes | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 520,250 | 504,265 | ||
Fair Value | Level 2 | Super Senior Revolving Credit Facility | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Debt | 87,581 | |||
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 | 20,624 | 19,182 | ||
Bank deposits | Carrying Value | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Cash and cash equivalents | 1,174,699 | 1,073,756 | ||
Bank deposits | 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 and cash equivalents | 1,174,699 | 1,073,756 | ||
Time deposits | Carrying Value | ||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||
Cash and cash equivalents | 518,530 | 856,969 | ||
Time deposits | 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 and cash equivalents | $ 518,530 | $ 856,969 |
Derivatives and Hedging - Notio
Derivatives and Hedging - Notional Amounts and Fair Values (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Asset Derivatives | $ 13,997 | $ 8,780 |
Liability Derivatives | 13,760 | 16,648 |
Commodity contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | 7,000 | |
Commodity contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 326 | |
Commodity contracts | Other assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 15 | |
Commodity contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 1,706 | 2,195 |
Commodity contracts | Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 105 | 315 |
Foreign currency contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | 766,000 | |
Foreign currency contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 10,783 | 6,865 |
Foreign currency contracts | Other assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 3,214 | 1,574 |
Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 9,110 | 12,381 |
Foreign currency contracts | Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | $ 2,839 | $ 1,757 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains (Losses) Associated with Fair Value and Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign currency contracts | Corporate general and administrative expense | ||
Derivative Instruments, Gain (Loss) | ||
Pre-tax net gains (losses) recognized in earnings associated with hedging instruments designated as fair value hedges | $ 195 | $ (1,154) |
Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | 1,796 | 596 |
After-tax amount of gain (loss) reclassified from AOCI into earnings | (1,724) | (227) |
Cash Flow Hedges | Commodity contracts | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | 2 | (112) |
Cash Flow Hedges | Commodity contracts | Total cost of revenue | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | (120) | (91) |
Cash Flow Hedges | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) recognized in OCI | 1,794 | 708 |
Cash Flow Hedges | Foreign currency contracts | Total cost of revenue | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | (1,342) | 126 |
Cash Flow Hedges | Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
After-tax amount of gain (loss) reclassified from AOCI into earnings | $ (262) | $ (262) |
Derivatives and Hedging - Deriv
Derivatives and Hedging - Derivative Contracts Not Designated as Hedging Instruments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Total cost of revenue | |
Derivatives | |
Recognized losses associated with derivative contracts not designated as hedging instruments | $ 2 |
Not designated as hedging instrument | Foreign currency contracts | |
Derivatives | |
Total gross notional amount | 64 |
Not designated as hedging instrument | Commodity contracts | |
Derivatives | |
Total gross notional amount | $ 2 |
Retirement Benefits - Net Perio
Retirement Benefits - Net Periodic Pension Expense for Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit U.S. Pension Plan | ||
Net periodic pension expense for defined benefit pension plans | ||
Service cost | $ 1,700 | |
Interest cost | 3,799 | |
Expected return on assets | (5,275) | |
Amortization of prior service cost | 217 | |
Recognized net actuarial loss | 2,351 | |
Net periodic pension expense | 2,792 | |
Defined Benefit Non-U.S. Pension Plans | ||
Net periodic pension expense for defined benefit pension plans | ||
Service cost | $ 4,732 | 5,202 |
Interest cost | 6,621 | 6,641 |
Expected return on assets | (10,051) | (12,305) |
Amortization of prior service cost | (209) | (206) |
Recognized net actuarial loss | 2,276 | 1,939 |
Net periodic pension expense | $ 3,369 | $ 1,271 |
Retirement Benefits - Internati
Retirement Benefits - International Defined Benefit Pension Plan Contributions (Details) - Defined Benefit Non-U.S. Pension Plans $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Retirement benefits | |
Company contributions | $ 9 |
Minimum | |
Retirement benefits | |
Expected contributions during 2016 | 15 |
Maximum | |
Retirement benefits | |
Expected contributions during 2016 | $ 20 |
Financing Arrangements - Credit
Financing Arrangements - Credit Facilities (Details) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Mar. 17, 2016USD ($) | Mar. 01, 2016USD ($) | |
Lines of credit | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | $ 6,100,000,000 | ||||
Amount outstanding under credit facilities | 1,900,000,000 | ||||
Lines of credit | April 2016 Revolving Credit Facility due April 2017 | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | € | € 125,000,000 | ||||
Lines of credit | Euribor | April 2016 Revolving Credit Facility due April 2017 | |||||
Financing Arrangements | |||||
Margin added to variable rate (as a percent) | 0.75% | ||||
Committed credit line | Lines of credit | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 3,500,000,000 | ||||
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 | ||
Maximum borrowing capacity additional amount, subject to certain conditions | $ 500,000,000 | ||||
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Maximum | |||||
Financing Arrangements | |||||
Ratio of consolidated debt to tangible net worth (as a percent) | 100.00% | ||||
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Maximum | Subsidiaries | |||||
Financing Arrangements | |||||
Aggregate amount of debt | $ 750,000,000 | € 750,000,000 | |||
Committed credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, 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 credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, as amended, due May 2019 | Maximum | |||||
Financing Arrangements | |||||
Ratio of consolidated debt to tangible net worth (as a percent) | 100.00% | ||||
Committed credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, as amended, due May 2019 | Maximum | Subsidiaries | |||||
Financing Arrangements | |||||
Aggregate amount of debt | $ 750,000,000 | 750,000,000 | |||
Committed credit line | Lines of credit | Super Senior Revolving Credit Facility | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | € | € 110,000,000 | ||||
Committed credit line | Lines of credit | Euribor | Super Senior Revolving Credit Facility | |||||
Financing Arrangements | |||||
Margin added to variable rate (as a percent) | 3.75% | ||||
Committed credit line | Revolving advances | |||||
Financing Arrangements | |||||
Maximum borrowing capacity | $ 1,750,000,000 |
Financing Arrangements - Senior
Financing Arrangements - Senior Notes (Details) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2016EUR (€) | Nov. 30, 2014USD ($) | Sep. 30, 2011USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015 | |
1.750% 2016 Senior Notes | |||||
Financing Arrangements | |||||
Debt issued | € | € 500,000,000 | € 500,000,000 | |||
Interest rate (as a percent) | 1.75% | 1.75% | |||
Proceeds from issuance of notes, net of underwriting discounts | € | € 497,000,000 | ||||
1.750% 2016 Senior Notes | On or after December 21, 2022 | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||
1.750% 2016 Senior Notes | Occurrence of certain changes in U.S. tax laws | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||
1.750% 2016 Senior Notes | Change of control triggering event | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% | ||||
1.750% 2016 Senior Notes | Minimum | Prior to December 21, 2022 | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||
3.5% 2014 Senior Notes | |||||
Financing Arrangements | |||||
Debt issued | $ 500,000,000 | ||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | |
Proceeds from issuance of notes, net of underwriting discounts | $ 491,000,000 | ||||
3.5% 2014 Senior Notes | On or after September 15, 2024 | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||
3.5% 2014 Senior Notes | Change of control triggering event | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% | ||||
3.5% 2014 Senior Notes | Minimum | Prior to September 15, 2024 | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||
3.375% 2011 Senior Notes | |||||
Financing Arrangements | |||||
Debt issued | $ 500,000,000 | ||||
Interest rate (as a percent) | 3.375% | 3.375% | 3.375% | 3.375% | |
Proceeds from issuance of notes, net of underwriting discounts | $ 492,000,000 | ||||
3.375% 2011 Senior Notes | Change of control triggering event | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% | ||||
3.375% 2011 Senior Notes | Minimum | |||||
Financing Arrangements | |||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% |
Financing Arrangements - Debt A
Financing Arrangements - Debt Assumed in Conjunction with Stork Acquisition (Details) | Mar. 17, 2016USD ($) | Mar. 17, 2016EUR (€) | Mar. 01, 2016USD ($) | Mar. 01, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Mar. 02, 2016USD ($) | Mar. 02, 2016EUR (€) | Mar. 01, 2016EUR (€) |
Lines of credit | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | $ 6,100,000,000 | ||||||||
Lines of credit | Committed credit line | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | 3,500,000,000 | ||||||||
Stork Holding B.V. | Other borrowings | |||||||||
Financing Arrangements | |||||||||
Debt assumed | $ 22,000,000 | € 20,000,000 | |||||||
Stork Notes | |||||||||
Financing Arrangements | |||||||||
Debt outstanding | $ 296,000,000 | € 273,000,000 | |||||||
Outstanding debt redeemed | $ 296,000,000 | € 273,000,000 | |||||||
Redemption premium | 8,000,000 | € 7,000,000 | |||||||
Stork Notes | Stork Holding B.V. | |||||||||
Financing Arrangements | |||||||||
Interest rate (as a percent) | 11.00% | 11.00% | |||||||
Super Senior Revolving Credit Facility | Lines of credit | Committed credit line | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | € | € 110,000,000 | ||||||||
Super Senior Revolving Credit Facility | Stork Holding B.V. | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | € | € 110,000,000 | ||||||||
$1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Lines of credit | Committed credit line | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 |
Financing Arrangements - Other
Financing Arrangements - Other Borrowings (Details) $ in Millions | Mar. 31, 2016USD ($) |
Stork Holding B.V. | |
Short-term credit facility | |
Other borrowings | $ 51 |
Stock-Based Plans - Grants, Ves
Stock-Based Plans - Grants, Vesting Period and Option Term (Details) - Executives - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted stock units | ||
Stock-Based Plans | ||
Granted (in shares) | 525,975 | 520,947 |
Granted, weighted average grant date fair value (in dollars per share) | $ 46.07 | $ 59.05 |
Vesting period | 3 years | 3 years |
Stock Options | ||
Stock-Based Plans | ||
Options awarded (in shares) | 662,001 | 963,288 |
Options awarded, weighted average exercise price (in dollars per share) | $ 46.07 | $ 59.05 |
Vesting period | 3 years | 3 years |
Term of stock-based award | 10 years | 10 years |
Performance-based VDI units | ||
Stock-Based Plans | ||
Granted (in shares) | 296,052 | 430,970 |
Granted, weighted average grant date fair value (in dollars per share) | $ 46.07 | $ 59.05 |
Vesting period | 3 years | 3 years |
Performance-based VDI units | Awards granted during 2016 | ||
Stock-Based Plans | ||
Post-vest holding period | 3 years |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Noncontrolling Interests. | ||
Net earnings attributable to noncontrolling interests | $ 14,688 | $ 21,525 |
Distributions paid to noncontrolling interests | 12,829 | 3,508 |
Capital contributions by noncontrolling interests | $ 1,245 | $ 698 |
Contingencies and Commitments -
Contingencies and Commitments - Performance Claims under Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Contract work in progress | ||
Recognized claims against clients | ||
Contracts receivable, claims and uncertain amounts | $ 36 | $ 30 |
Guarantees (Details)
Guarantees (Details) $ in Billions | Mar. 31, 2016USD ($) |
Performance Guarantee | |
Guarantees | |
Estimated performance guarantees outstanding | $ 19.9 |
Partnerships and Joint Ventur55
Partnerships and Joint Ventures - Ownership and Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Partnership | Majority | ||
Variable interest entity information | ||
Entity's interest in partnership or joint venture (as a percent) | 50.00% | |
Joint ventures | Majority | ||
Variable interest entity information | ||
Entity's interest in partnership or joint venture (as a percent) | 50.00% | |
Unconsolidated variable interest entities | Accounts and notes receivable, net | ||
Variable interest entity information | ||
Receivables related to work performed for unconsolidated partnerships and joint ventures | $ 212 | $ 132 |
Partnerships and Joint Ventur56
Partnerships and Joint Ventures - Unconsolidated Partnerships and Joint Ventures and Equity Method Investments (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Partnerships and Joint Ventures | ||
Investments in unconsolidated partnerships and joint ventures under equity method | $ 714 | $ 292 |
Partnerships and Joint Ventur57
Partnerships and Joint Ventures - Joint Venture Investment Agreement (Details) $ in Millions | 1 Months Ended | ||
Feb. 29, 2016USD ($) | Aug. 31, 2015company | Mar. 31, 2016USD ($) | |
COOEC Fluor Heavy Industries Co., Ltd. | |||
Commitments | |||
Ownership interest in joint venture (as a percent) | 49.00% | ||
Cash investment in joint venture | $ 350 | ||
Carrying value of investment | $ 352 | ||
COOEC Fluor Heavy Industries Co., Ltd. | Funding commitment, additional investment | |||
Commitments | |||
Commitment amount | $ 140 | ||
Offshore Oil Engineering Co., Ltd. | COOEC Fluor Heavy Industries Co., Ltd. | |||
Commitments | |||
Ownership interest in joint venture (as a percent) | 51.00% | ||
COOEC Fluor Heavy Industries Co., Ltd. | |||
Commitments | |||
Number of parties to joint venture | company | 2 |
Partnerships and Joint Ventur58
Partnerships and Joint Ventures - Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Unconsolidated variable interest entities | ||
Variable interest entity information | ||
Net carrying value of the unconsolidated VIEs | $ 272 | $ 208 |
Unconsolidated variable interest entities | Future funding commitment | ||
Variable interest entity information | ||
Commitment amount | 15 | |
Consolidated variable interest entities | ||
Variable interest entity information | ||
Carrying value of assets | 1,000 | 863 |
Carrying value of liabilities | $ 540 | $ 443 |
Operating Information by Segm59
Operating Information by Segment - Reportable Segments and Concentration (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
Operating Information by Segment | |
Number of reportable segments | 4 |
Operating Information by Segm60
Operating Information by Segment - External Revenue and Segment Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
External revenue | ||
Revenue | $ 4,423,889 | $ 4,548,649 |
Reportable segments | ||
Segment profit (loss) | ||
Segment profit | 241,100 | 275,900 |
Energy, Chemicals and Mining | ||
External revenue | ||
Revenue | 2,443,500 | 2,982,700 |
Energy, Chemicals and Mining | Reportable segments | ||
Segment profit (loss) | ||
Segment profit | 182,000 | 217,800 |
Industrial, Infrastructure and Power | ||
External revenue | ||
Revenue | 833,300 | 546,700 |
Industrial, Infrastructure and Power | Reportable segments | ||
Segment profit (loss) | ||
Segment profit | 11,900 | 9,700 |
Government | ||
External revenue | ||
Revenue | 686,000 | 646,000 |
Government | Reportable segments | ||
Segment profit (loss) | ||
Segment profit | 17,100 | 14,800 |
Maintenance, Modification and Asset Integrity | ||
External revenue | ||
Revenue | 461,100 | 373,200 |
Maintenance, Modification and Asset Integrity | Reportable segments | ||
Segment profit (loss) | ||
Segment profit | 30,100 | 33,600 |
Maintenance, Modification and Asset Integrity | Intercompany | ||
External revenue | ||
Revenue | $ (117,000) | $ (115,000) |
Operating Information by Segm61
Operating Information by Segment - Additional Operating Information (Details) - Reportable segments - Industrial, Infrastructure and Power - Nu Scale Power - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment reporting information | ||
Research and development expense | $ 26 | $ 17 |
Cost-sharing agreement, research and development activities | U.S. Department of Energy | Total cost of revenue | ||
Segment reporting information | ||
Qualified expenses reimbursed | $ 14 | $ 14 |
Operating Information by Segm62
Operating Information by Segment - Reconciliation to Consolidated Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of total segment profit to earnings from continuing operations before taxes | ||
Corporate general and administrative expense | $ (55,113) | $ (41,110) |
Interest income (expense), net | (11,500) | (7,400) |
EARNINGS BEFORE TAXES | 189,220 | 248,878 |
Reportable segments | ||
Reconciliation of total segment profit to earnings from continuing operations before taxes | ||
Total segment profit (loss) | 241,100 | 275,900 |
Reconciling item | Noncontrolling interests | ||
Reconciliation of total segment profit to earnings from continuing operations before taxes | ||
EARNINGS BEFORE TAXES | $ 14,700 | $ 21,500 |
Operating Information by Segm63
Operating Information by Segment - Total Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Segment reporting information | ||
Total assets | $ 9,001,727 | $ 7,625,406 |
Reportable segments | Energy, Chemicals and Mining | ||
Segment reporting information | ||
Total assets | 2,333,700 | 1,728,000 |
Reportable segments | Industrial, Infrastructure and Power | ||
Segment reporting information | ||
Total assets | 573,500 | 544,200 |
Reportable segments | Government | ||
Segment reporting information | ||
Total assets | 449,100 | 495,400 |
Reportable segments | Maintenance, Modification and Asset Integrity | ||
Segment reporting information | ||
Total assets | $ 2,103,400 | $ 923,800 |
Acquisition of Stork Holding 64
Acquisition of Stork Holding B.V. - Purchase Consideration, Assumed Debt Obligations and Redemption of Assumed Stork Notes (Details) | Mar. 17, 2016USD ($) | Mar. 17, 2016EUR (€) | Mar. 01, 2016USD ($) | Mar. 01, 2016EUR (€) | Apr. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Mar. 02, 2016USD ($) | Mar. 02, 2016EUR (€) | Mar. 01, 2016EUR (€) |
Acquisition | ||||||||||
Amount borrowed under credit facility | $ 760,000,000 | |||||||||
Stork Notes | ||||||||||
Acquisition | ||||||||||
Debt outstanding | $ 296,000,000 | € 273,000,000 | ||||||||
Outstanding debt redeemed | $ 296,000,000 | € 273,000,000 | ||||||||
Redemption premium | 8,000,000 | € 7,000,000 | ||||||||
Lines of credit | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | 6,100,000,000 | |||||||||
Lines of credit | April 2016 Revolving Credit Facility due April 2017 | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | € | € 125,000,000 | |||||||||
Lines of credit | April 2016 Revolving Credit Facility due April 2017 | Euribor | ||||||||||
Acquisition | ||||||||||
Margin added to variable rate (as a percent) | 0.75% | |||||||||
Lines of credit | Committed credit line | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | 3,500,000,000 | |||||||||
Lines of credit | Committed credit line | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | ||||||||||
Acquisition | ||||||||||
Amount borrowed under credit facility | $ 217,000,000 | € 200,000,000 | ||||||||
Maximum borrowing capacity | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 | |||||||
Lines of credit | Committed credit line | Super Senior Revolving Credit Facility | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | € | € 110,000,000 | |||||||||
Lines of credit | Committed credit line | Super Senior Revolving Credit Facility | Euribor | ||||||||||
Acquisition | ||||||||||
Margin added to variable rate (as a percent) | 3.75% | |||||||||
Stork Holding B.V. | ||||||||||
Acquisition | ||||||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | ||||||||
Total purchase consideration | $ 756,000,000 | 695,000,000 | ||||||||
Cash consideration | 300,000,000 | 276,000,000 | ||||||||
Amount paid from cash on hand | 83,000,000 | 76,000,000 | ||||||||
Stork Holding B.V. | Super Senior Revolving Credit Facility | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | € | € 110,000,000 | |||||||||
Stork Holding B.V. | Certain other outstanding debt obligations | ||||||||||
Acquisition | ||||||||||
Debt assumed | $ 22,000,000 | € 20,000,000 |
Acquisition of Stork Holding 65
Acquisition of Stork Holding B.V. - Purchase Price Allocation (Details) - Mar. 01, 2016 - Stork Holding B.V. € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date | ||
Cash and cash equivalents | $ 59,190 | € 54,428 |
Accounts and notes receivable | 178,653 | 164,279 |
Contract work in progress | 115,129 | 105,866 |
Other current assets | 71,999 | 66,206 |
Property, plant and equipment | 164,640 | 151,393 |
Investments | 14,893 | 13,695 |
Deferred taxes, net | 12,893 | 11,856 |
Goodwill and intangible assets | 578,122 | 531,606 |
Trade accounts payable | (119,897) | (110,250) |
Advance billings on contracts | (23,236) | (21,366) |
Other accrued liabilities | (221,994) | (204,132) |
Revolving credit facility and other borrowings | (436,884) | (401,732) |
Long-term debt | (19,143) | (17,603) |
Noncurrent liabilities | (64,263) | (59,092) |
Noncontrolling interests | (10,158) | (9,341) |
Net assets acquired | $ 299,944 | € 275,813 |
Acquisition of Stork Holding 66
Acquisition of Stork Holding B.V. - Additional Purchase Price Allocation Information (Details) - Mar. 01, 2016 | USD ($) | EUR (€) |
Stork Holding B.V. | ||
Goodwill | ||
Goodwill expected to be deductible for tax purposes | $ 0 | € 0 |
Acquisition of Stork Holding 67
Acquisition of Stork Holding B.V. - Revenue and Earnings, Costs Expensed and Pro Forma Financial Information (Details) - Stork Holding B.V. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Acquisition | ||
Revenue since the acquisition date | $ 121,000 | |
Earnings before taxes since the acquisition date | 3,000 | |
Pro forma financial information | ||
Pro forma revenue | 4,653,536 | $ 4,950,252 |
Pro forma net earnings attributable to Fluor Corporation | 103,401 | $ 139,745 |
Corporate general and administrative expense | ||
Acquisition | ||
Transaction costs | 10,000 | |
Integration costs | $ 6,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
St. Joe Minerals Corporation and The Doe Run Company litigation matters | St. Joe Minerals Corporation and The Doe Run Company | Discontinued operations sold | |
Discontinued Operations | |
Payments to settle litigation cases | $ 306 |