Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | FLUOR CORP | |
Entity Central Index Key | 1,124,198 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
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 | 139,898,695 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS | ||||
TOTAL REVENUE | $ 4,716,092 | $ 4,856,117 | $ 9,551,997 | $ 9,280,006 |
TOTAL COST OF REVENUE | 4,684,116 | 4,607,868 | 9,370,020 | 8,775,935 |
OTHER (INCOME) AND EXPENSES | ||||
Corporate general and administrative expense | 47,315 | 52,640 | 92,363 | 107,753 |
Interest expense | 16,473 | 18,719 | 34,036 | 33,364 |
Interest income | (7,863) | (4,512) | (13,898) | (7,668) |
Total cost and expenses | 4,740,041 | 4,674,715 | 9,482,521 | 8,909,384 |
EARNINGS (LOSS) BEFORE TAXES | (23,949) | 181,402 | 69,476 | 370,622 |
INCOME TAX EXPENSE (BENEFIT) | (17,317) | 61,348 | (1,246) | 131,557 |
NET EARNINGS (LOSS) | (6,632) | 120,054 | 70,722 | 239,065 |
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 17,393 | 18,241 | 34,136 | 32,929 |
NET EARNINGS (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION | $ (24,025) | $ 101,813 | $ 36,586 | $ 206,136 |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $ (0.17) | $ 0.73 | $ 0.26 | $ 1.48 |
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $ (0.17) | $ 0.72 | $ 0.26 | $ 1.46 |
SHARES USED TO CALCULATE EARNINGS (LOSS) PER SHARE | ||||
BASIC (in shares) | 139,818 | 139,226 | 139,631 | 139,088 |
DILUTED (in shares) | 139,818 | 140,801 | 140,856 | 140,833 |
DIVIDENDS DECLARED PER SHARE | $ 0.21 | $ 0.21 | $ 0.42 | $ 0.42 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
NET EARNINGS (LOSS) | $ (6,632) | $ 120,054 | $ 70,722 | $ 239,065 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation adjustment | 7,397 | (38,516) | 37,887 | (16,180) |
Ownership share of equity method investees' other comprehensive income (loss) | (6,509) | 8,384 | 1,924 | 366 |
Defined benefit pension and postretirement plan adjustments | 1,517 | 1,208 | 1,910 | (2,117) |
Unrealized gain (loss) on derivative contracts | (1,798) | (2,681) | 3,550 | 921 |
Unrealized gain (loss) on available-for-sale securities | (94) | 265 | (11) | 1,112 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 513 | (31,340) | 45,260 | (15,898) |
COMPREHENSIVE INCOME (LOSS) | (6,119) | 88,714 | 115,982 | 223,167 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 16,987 | 18,940 | 33,988 | 33,684 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION | $ (23,106) | $ 69,774 | $ 81,994 | $ 189,483 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents ($522,603 and $439,942 related to variable interest entities ("VIEs")) | $ 1,819,799 | $ 1,850,436 |
Marketable securities, current ($93,965 and $48,155 related to VIEs) | 193,927 | 111,037 |
Accounts and notes receivable, net ($205,441 and $232,242 related to VIEs) | 1,510,881 | 1,700,224 |
Contract work in progress ($85,315 and $124,677 related to VIEs) | 1,399,220 | 1,537,289 |
Other current assets ($23,962 and $24,017 related to VIEs) | 689,991 | 411,284 |
Total current assets | 5,613,818 | 5,610,270 |
Marketable securities, noncurrent | 131,126 | 143,553 |
Property, plant and equipment ("PP&E") ((net of accumulated depreciation of $1,174,737 and $1,122,191) (net PP&E of $47,697 and $53,728 related to VIEs)) | 1,067,502 | 1,017,223 |
Goodwill | 548,849 | 532,239 |
Investments | 779,534 | 740,385 |
Deferred taxes | 335,480 | 454,109 |
Deferred compensation trusts | 372,876 | 348,487 |
Other assets ($23,965 and $24,248 related to VIEs) | 372,623 | 370,151 |
TOTAL ASSETS | 9,221,808 | 9,216,417 |
CURRENT LIABILITIES | ||
Trade accounts payable ($210,369 and $221,601 related to VIEs) | 1,527,821 | 1,590,506 |
Revolving credit facility and other borrowings | 36,390 | 82,243 |
Advance billings on contracts ($322,656 and $263,393 related to VIEs) | 1,083,679 | 763,774 |
Accrued salaries, wages and benefits ($30,631 and $35,573 related to VIEs) | 642,069 | 734,649 |
Other accrued liabilities ($33,706 and $32,015 related to VIEs) | 443,312 | 644,857 |
Total current liabilities | 3,733,271 | 3,816,029 |
LONG-TERM DEBT DUE AFTER ONE YEAR | 1,560,471 | 1,517,949 |
NONCURRENT LIABILITIES | 616,931 | 639,608 |
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 - 139,876,865 and 139,258,483 shares in 2017 and 2016, respectively | 1,399 | 1,393 |
Additional paid-in capital | 67,905 | 38,317 |
Accumulated other comprehensive loss | (451,261) | (496,669) |
Retained earnings | 3,559,643 | 3,582,150 |
Total shareholders' equity | 3,177,686 | 3,125,191 |
Noncontrolling interests | 133,449 | 117,640 |
Total equity | 3,311,135 | 3,242,831 |
TOTAL LIABILITIES AND EQUITY | $ 9,221,808 | $ 9,216,417 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, plant and equipment, net | ||
Property, plant and equipment, accumulated depreciation | $ 1,174,737 | $ 1,122,191 |
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) | 139,876,865 | 139,258,483 |
Common stock, outstanding shares (in shares) | 139,876,865 | 139,258,483 |
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | $ 1,819,799 | $ 1,850,436 |
Marketable securities, current | 193,927 | 111,037 |
Accounts and notes receivable | 1,510,881 | 1,700,224 |
Contract work in progress | 1,399,220 | 1,537,289 |
Other current assets | 689,991 | 411,284 |
NONCURRENT ASSETS, VIEs | ||
Net property, plant and equipment | 1,067,502 | 1,017,223 |
Other noncurrent assets | 372,623 | 370,151 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 1,527,821 | 1,590,506 |
Advance billings on contracts | 1,083,679 | 763,774 |
Accrued salaries, wages and benefits | 642,069 | 734,649 |
Other accrued liabilities | 443,312 | 644,857 |
Consolidated variable interest entities | ||
CURRENT ASSETS, VIEs | ||
Cash and cash equivalents | 522,603 | 439,942 |
Marketable securities, current | 93,965 | 48,155 |
Accounts and notes receivable | 205,441 | 232,242 |
Contract work in progress | 85,315 | 124,677 |
Other current assets | 23,962 | 24,017 |
NONCURRENT ASSETS, VIEs | ||
Net property, plant and equipment | 47,697 | 53,728 |
Other noncurrent assets | 23,965 | 24,248 |
CURRENT LIABILITIES, VIEs | ||
Trade accounts payable | 210,369 | 221,601 |
Advance billings on contracts | 322,656 | 263,393 |
Accrued salaries, wages and benefits | 30,631 | 35,573 |
Other accrued liabilities | $ 33,706 | $ 32,015 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 70,722 | $ 239,065 |
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities: | ||
Depreciation of fixed assets | 101,921 | 101,390 |
Amortization of intangibles | 9,520 | 7,191 |
(Earnings) loss from equity method investments, net of distributions | 1,996 | 13,951 |
Gain on sale of property, plant and equipment | (6,985) | (10,182) |
Amortization of stock-based awards | 22,230 | 23,912 |
Deferred compensation trust | (24,390) | 28,322 |
Deferred compensation obligation | 19,127 | 10,416 |
Deferred taxes | 76,866 | 23,972 |
Net retirement plan accrual (contributions) | (7,008) | (8,690) |
Changes in operating assets and liabilities | 166,628 | (341,659) |
Other items | (2,701) | 2,856 |
Cash provided by operating activities | 427,926 | 90,544 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | (171,441) | (216,884) |
Proceeds from the sales and maturities of marketable securities | 101,026 | 346,486 |
Capital expenditures | (141,553) | (107,345) |
Proceeds from disposal of property, plant and equipment | 27,908 | 39,047 |
Investments in partnerships and joint ventures | (191,124) | (400,651) |
Acquisitions, net of cash acquired | (240,740) | |
Other items | 2,552 | 7,042 |
Cash utilized by investing activities | (372,632) | (573,045) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | (9,718) | |
Dividends paid | (59,281) | (59,333) |
Proceeds from issuance of 1.75% Senior Notes | 552,958 | |
Debt issuance costs | (3,513) | |
Repayment of Stork Notes and other borrowings | (332,509) | |
Borrowings under revolving lines of credit | 883,750 | |
Repayment of borrowings under revolving lines of credit | (53,455) | (851,594) |
Distributions paid to noncontrolling interests | (21,176) | (24,327) |
Capital contributions by noncontrolling interests | 4,150 | 8,016 |
Taxes paid on vested restricted stock | (6,186) | (6,987) |
Stock options exercised | 8,296 | 3,144 |
Other items | 4,501 | 8,554 |
Cash provided (utilized) by financing activities | (123,151) | 168,441 |
Effect of exchange rate changes on cash | 37,220 | (8,772) |
Decrease in cash and cash equivalents | (30,637) | (322,832) |
Cash and cash equivalents at beginning of period | 1,850,436 | 1,949,886 |
Cash and cash equivalents at end of period | $ 1,819,799 | $ 1,627,054 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
1.750% Senior Notes | ||||
Debt instruments | ||||
Debt interest rate (as a percent) | 1.75% | 1.75% | 1.75% | 1.75% |
Principles of Consolidation
Principles of Consolidation | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 Annual Report on Form 10-K. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and six months ended June 30, 2017 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 June 30, 2017 and December 31, 2016 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. 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 include the financial statements of Stork Holding B.V. (“Stork”) since March 1, 2016, the date of acquisition. See Note 17 for a discussion of the acquisition. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements New accounting pronouncements implemented by the company during the first half of 2017 are discussed below or in the related notes, where appropriate. In the first quarter of 2017, the company adopted Accounting Standards Update (“ASU”) 2016-17, “Interests Held through Related Parties That Are Under Common Control” which amends the consolidation requirements that apply to a single decision maker’s evaluation of interests held through related parties that are under common control when it is determining whether it is the primary beneficiary of a variable interest entity. The adoption of ASU 2016-17 did not have any impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2017, the company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU is intended to simplify various aspects of accounting for share-based payment awards, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. As a result of the adoption of ASU 2016-09, the excess tax benefits and tax deficiencies associated with option exercises and vested share awards are now recognized as income tax benefit or expense in the Condensed Consolidated Statement of Earnings instead of in additional paid-in capital. Additionally, the excess tax benefits are now presented as an operating activity on the Condensed Consolidated Statement of Cash Flows, rather than as a financing activity. ASU 2016-09 also changed the method the company uses to calculate shares for diluted earnings per share (discussed further in Note 6). The company adopted the provision of ASU 2016-09 on a prospective basis; therefore, these changes were effective beginning in the first quarter of 2017. The adoption of ASU 2016-09 did not have a material impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2017, the company adopted 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. The adoption of ASU 2016-07 did not have any impact on the company’s financial position, results of operations or cash flows. In the first quarter of 2017, the company adopted 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. The adoption of ASU 2016-05 did not have any impact on the company’s financial position, results of operations or cash flows. New accounting pronouncements requiring implementation in future periods are discussed below. In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Entities should apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and prospective application is required. Management does not expect the adoption of ASU 2017-09 to have a material impact on the company’s financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” For purchased callable debt securities held at a premium, ASU 2017-08 requires entities to amortize the premium to the earliest call date rather than over the contractual life of the instrument. Therefore, entities will no longer recognize a loss in earnings on the unamortized premium upon the issuer’s exercise of a call. ASU 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018. Management does not expect the adoption of ASU 2017-08 to have a material impact on the company’s financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires employers to present the service cost component of net periodic benefit cost in the same income statement line item as other compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are required to be presented separately from the service cost component. ASU 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2017-07 to have a material impact on the company’s financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019 and will be applied prospectively. Early adoption is permitted for interim and annual goodwill impairment testing dates after January 1, 2017. Management does not expect the adoption of ASU 2017-04 to have a material impact on the company’s financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. ASU 2017-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2017-01 to have a material impact on the company’s financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” ASU 2016-18 requires an entity to include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2016-18 to have a material impact on the company’s financial position, results of operations or cash flows. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 amends the guidance in Accounting Standards Codification (“ASC”) 230, which often requires judgment to determine the appropriate classification of cash flows as operating, investing or financing activities and has resulted in diversity in practice in how certain cash receipts and cash payments are classified. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017 and should be applied on a retrospective basis. Management does not expect the adoption of ASU 2016-15 to have a material impact on the company’s cash flows. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU replace the incurred loss impairment methodology in current practice with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Management does not expect the adoption of ASU 2016-13 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 to 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. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and represent separate performance obligations, 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. As a result of the deferral of the effective date in ASU 2015-14, “Revenue from Contracts with Customers — Deferral of the Effective Date,” the company will now be required to adopt ASU 2014-09 for interim and annual reporting periods beginning after December 15, 2017. 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. 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 determines whether to report revenue gross or net based on whether it controls a specific good or service before it is transferred to a customer. ASU 2016-08 also reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends certain aspects of ASU 2014-09. ASU 2016-10 amends how an entity should identify performance obligations for immaterial promised goods or services, shipping and handling activities and promises that may represent performance obligations. ASU 2016-10 also provides implementation guidance for determining the nature of licensing and royalties arrangements. In May 2016, the FASB issued ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” which also clarifies certain aspects of ASU 2014-09 including the assessment of collectability, presentation of sales taxes, treatment of noncash consideration, and accounting for completed contracts and contract modifications at transition. In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which allows an entity to determine the provision for loss contracts at either the contract level or the performance obligation level as an accounting policy election. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies that the scope and application of ASC 610-20 on accounting for the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales, applies only when the asset (or asset group) does not meet the definition of a business. ASU 2017-05, 2016-20, 2016-12, 2016-10 and 2016-08 are effective upon adoption of ASU 2014-09. Management is currently evaluating the impact of adopting ASU 2014-09, 2016-08, 2016-10, 2016-12, 2016-20 and 2017-05 on the company’s financial position, results of operations, cash flows and related disclosures. Adoption of these ASUs is expected to affect the manner in which the company determines the unit of account for its projects (i.e., performance obligations). Under existing guidance, the company typically segments revenue and margin recognition between the engineering and construction phases of its contracts. Upon adoption, the company expects that the entire engineering and construction contract will typically be a single unit of account (a single performance obligation), which will result in a more constant recognition of revenue and margin over the term of the contract. The company will adopt ASU 2014-09 during the first quarter of 2018. The company expects to adopt this new standard using the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and 2016 are as follows: Three Months Ended Three Months Ended June 30, 2017 June 30, 2016 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 income (loss) ) ) ) Defined benefit pension and postretirement plan adjustments ) ) Unrealized loss on derivative contracts ) ) ) ) Unrealized gain (loss) on available-for-sale securities ) ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income (loss) attributable to noncontrolling interests ) — ) — Other comprehensive income (loss) attributable to Fluor Corporation $ $ ) $ $ ) $ $ ) The tax effects of the components of OCI for the six months ended June 30, 2017 and 2016 are as follows: Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 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 income ) ) Defined benefit pension and postretirement plan adjustments ) ) ) ) Unrealized gain on derivative contracts ) ) Unrealized gain (loss) on available-for-sale securities ) ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income (loss) 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 June 30, 2017 are as follows: (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of March 31, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) — ) ) ) Amounts reclassified from AOCI — — ) ) Net other comprehensive income (loss) ) ) ) Balance as of June 30, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Attributable to Noncontrolling Interests: Balance as of March 31, 2017 $ ) $ — $ — $ ) $ — $ ) Other comprehensive loss before reclassifications ) — — ) — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — ) Balance as of June 30, 2017 $ ) $ — $ — $ — $ — $ ) The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2017 are as follows: (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of December 31, 2016 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from AOCI — — Net other comprehensive income (loss) ) Balance as of June 30, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2016 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income (loss) before reclassifications ) — — — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — ) Balance as of June 30, 2017 $ ) $ — $ — $ — $ — $ ) The changes in AOCI balances by component (after-tax) for the three months ended June 30, 2016 are as follows: (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of March 31, 2016 $ ) $ ) $ ) $ ) $ $ ) Other comprehensive income (loss) before reclassifications ) — ) ) Amounts reclassified from AOCI — — ) Net other comprehensive income (loss) ) ) ) Balance as of June 30, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of March 31, 2016 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income before reclassifications — — — Amounts reclassified from AOCI — — — — Net other comprehensive income — — — Balance as of June 30, 2016 $ $ — $ — $ ) $ — $ The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2016 are as follows: (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other 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 June 30, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2015 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income before reclassifications — — — Amounts reclassified from AOCI — — — — Net other comprehensive income — — — Balance as of June 30, 2016 $ $ — $ — $ ) $ — $ The significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Earnings are as follows: Location in Three Months Ended Six Months Ended Condensed Consolidated June 30, June 30, (in thousands) Statement of Earnings 2017 2016 2017 2016 Component of AOCI: Defined benefit pension plan adjustments Various accounts (1) $ ) $ ) $ ) $ ) Income tax benefit Income tax expense (benefit) Net of tax $ ) $ ) $ ) $ ) Unrealized gain (loss) on derivative contracts: Commodity and foreign currency contracts Total cost of revenue $ $ ) $ $ ) Interest rate contracts Interest expense ) ) ) ) Income tax benefit (expense) Income tax expense (benefit) ) 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 (benefit) ) ) ) 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 | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes | |
Income Taxes | (4) Income Taxes The effective tax rates for the three and six months ended June 30, 2017 were 72.3 percent and (1.8) percent, respectively, compared to 33.8 percent and 35.5 percent for the corresponding periods of 2016. The effective tax rates for the three and six months ended June 30, 2017, which represented tax benefits in both periods, benefitted from the favorable impact of a worthless stock deduction for an insolvent foreign subsidiary. The effective tax rates for the three and six months ended June 30, 2016 were unfavorably impacted by foreign losses without benefit. All periods benefited from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company. The items above that benefitted the current year periods had a greater percentage impact on the effective tax rates due to the lower level of operating results for the three and six month periods of 2017. 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 a 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 2013. |
Cash Paid for Interest and Taxe
Cash Paid for Interest and Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Cash Paid for Interest and Taxes | |
Cash Paid for Interest and Taxes | (5) Cash Paid for Interest and Taxes Cash paid for interest was $36 million and $38 million for the six months ended June 30, 2017 and 2016, respectively. Income tax payments, net of refunds, were $159 million and $77 million during the six-month periods ended June 30, 2017 and 2016, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
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. As a result of the adoption of ASU 2016-09, the excess tax benefits and tax deficiencies that were previously recorded to additional paid-in capital have been excluded from the hypothetical proceeds used to calculate the repurchase of shares under the treasury stock method beginning in the first quarter of 2017. The calculations of the basic and diluted EPS for the three and six months ended June 30, 2017 and 2016 are presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Net earnings (loss) attributable to Fluor Corporation $ ) $ $ $ Basic EPS attributable to Fluor Corporation: Weighted average common shares outstanding Basic earnings (loss) 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 (1) — Weighted average diluted shares outstanding Diluted earnings (loss) per share $ ) $ $ $ Anti-dilutive securities not included above (1) Employee stock options, restricted stock units and shares, and Value Driver Incentive units of 936,000 were excluded from weighted average diluted shares outstanding for the three months ended June 30, 2017 as the shares would have an anti-dilutive effect on the net loss. During the six months ended June 30, 2016, the company repurchased and cancelled 202,650 shares of its common stock under its stock repurchase program for approximately $10 million. No shares were repurchased during the three and six months ended June 30, 2017, and three months ended June 30, 2016. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 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 money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period. (2) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities and commercial paper with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. (3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange. (4) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. (5) See Note 8 for the classification of commodity and foreign currency contracts on 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 June 30, 2017: money market funds of $1 million, U.S. agency securities of $12 million, U.S. Treasury securities of $80 million, corporate debt securities of $123 million and commercial paper of $5 million. As of December 31, 2016, available-for-sale securities consisted of money market funds of $21 million, U.S. agency securities of $11 million, U.S. Treasury securities of $87 million and corporate debt securities of $100 million. The amortized cost of these available-for-sale securities is not materially different from the fair value. During the three and six months ended June 30, 2017, proceeds from sales and maturities of available-for-sale securities were $19 million and $44 million, respectively, compared to $92 million and $214 million for the corresponding periods of 2016. In addition to assets and liabilities that are measured at fair value on a recurring basis, the company is required to measure certain assets and liabilities at fair value on a nonrecurring basis. See Note 17 for further discussion of nonrecurring fair value measurements related to the company’s acquisition of Stork. 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: June 30, 2017 December 31, 2016 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) Amounts represent borrowings under the company’s €125 million Revolving Credit Facility which expired in April 2017, as discussed in Note 10. The carrying amount of the borrowings under this revolving credit facility approximated fair value because of the short-term maturity. (7) Other borrowings primarily represent bank loans and other financing arrangements assumed in 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 | 6 Months Ended |
Jun. 30, 2017 | |
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. Under ASC 815, in certain limited circumstances, foreign currency payment provisions could be deemed embedded derivatives. If an embedded foreign currency derivative is identified, the derivative is bifurcated from the host contract and the change in fair value is recognized through earnings. 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 June 30, 2017, the company had total gross notional amounts of approximately $952 million of foreign currency contracts (primarily related to the British Pound, Kuwaiti Dinar, Indian Rupee, Philippine Peso and South Korean Won) and $0.4 million of commodity contracts outstanding related 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 and six months ended June 30, 2017 and 2016. The fair values of derivatives designated as hedging instruments under ASC 815 as of June 30, 2017 and December 31, 2016 were as follows: Asset Derivatives Liability Derivatives Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, (in thousands) Location 2017 2016 Location 2017 2016 Commodity contracts Other current assets $ $ Other accrued liabilities $ — $ Foreign currency contracts Other current assets Other accrued 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 and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended June 30, June 30, Fair Value Hedges (in thousands) Location of Gain (Loss) 2017 2016 2017 2016 Foreign currency contracts Corporate general and administrative expense $ $ ) $ $ ) The pre-tax amount of gain (loss) recognized in earnings associated with the hedging instruments designated as fair value hedges noted in the table above offset the amount of gain (loss) recognized in earnings on the hedged items in the same locations in the Condensed Consolidated Statement of Earnings. The after-tax amount of gain (loss) recognized in OCI associated with the derivative instruments designated as cash flow hedges was as follows: Three Months Ended Six Months Ended June 30, June 30, Cash Flow Hedges (in thousands) 2017 2016 2017 2016 Commodity contracts $ ) $ $ ) $ Foreign currency contracts ) ) ) Total $ ) $ ) $ $ ) The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows: Three Months Ended Six Months Ended June 30, June 30, Cash Flow Hedges (in thousands) Location of Gain (Loss) 2017 2016 2017 2016 Commodity contracts Total cost of revenue $ ) $ ) $ ) $ ) Foreign currency contracts Total cost of revenue ) ) Interest rate contracts Interest expense ) ) ) ) Total $ $ ) $ ) $ ) As of June 30, 2016, the company also had total gross notional amounts of $8 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 gains of approximately $3 million and $0.3 million associated with these contracts were included in Cost of Revenues for the three and six months ended June 30, 2016, respectively. There were no similar contracts of significance as of June 30, 2017. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits | |
Retirement Benefits | (9) Retirement Benefits Net periodic pension expense for the company’s defined benefit pension plans included the following components: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Service cost $ $ $ $ Interest cost Expected return on assets ) ) ) ) Amortization of prior service cost ) ) ) ) Recognized net actuarial loss Net periodic pension expense $ $ $ $ The company currently expects to contribute up to $20 million into its defined benefit pension plans during 2017, which is expected to be in excess of the minimum funding required. During the six months ended June 30, 2017, contributions of approximately $11 million were made by the company. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2017 | |
Financing Arrangements | |
Financing Arrangements | (10) Financing Arrangements As of June 30, 2017, the company had a combination of committed and uncommitted lines of credit that may be used for revolving loans and letters of credit. As of June 30, 2017, letters of credit and borrowings totaling $1.8 billion were outstanding under these committed and uncommitted lines 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 2022. 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 contains customary financial and restrictive covenants, including a maximum ratio of consolidated debt to tangible net worth of one-to-one and a cap on the aggregate amount of debt of the greater of $750 million or €750 million for the company’s subsidiaries. Borrowings under both facilities, which may be denominated in USD, EUR, GBP or CAD, bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin. In connection with the Stork acquisition, the company assumed a €110 million Super Senior Revolving Credit Facility that bore 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 which was used for revolving loans, bank guarantees, letters of credit and to fund working capital in the ordinary course of business. This replacement facility, which bore interest at EURIBOR plus .75%, expired in April 2017. 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. Surety bonds may be used as an alternative to letters of credit. 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 (or approximately $551 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, as described in the indenture, 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. We may, from time to time, repurchase the 2016 Notes, the 2014 Notes or the 2011 Notes in the open market, in privately-negotiated transactions or otherwise in such volumes, at such prices and upon such other terms as we deem appropriate. 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 $41 million as of June 30, 2017 and $35 million as of December 31, 2016 primarily represent bank loans and other financing arrangements assumed in the acquisition of Stork, exclusive of the Stork Notes. As of June 30, 2017, the company was in compliance with all of the financial covenants related to its debt agreements. |
Stock-Based Plans
Stock-Based Plans | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016. In the first half of 2017 and 2016, restricted stock units totaling 402,783 and 553,415, respectively, were granted to executives and directors, at weighted-average grant date fair values of $52.57 per share and $43.77 per share, respectively. Restricted stock units granted to executives in 2017 and 2016 generally vest ratably over three years. Restricted stock units granted to directors in 2017 and 2016 generally vest on the first anniversary of the grant. For directors and certain executives, restricted stock units are subject to a post-vest holding period of three years. The fair value of restricted stock units represents the closing price of the company’s common stock on the date of grant discounted for the post-vest holding period, when applicable. During the first half of 2017 and 2016, stock options for the purchase of 1,103,817 shares at a weighted-average exercise price of $55.35 per share and 662,001 shares at a weighted-average exercise price of $46.07 per share, respectively, were awarded to executives. The exercise price of options represents the closing price of the company’s common stock on the date of grant. The options granted in 2017 and 2016 vest ratably over three years and expire ten years after the grant date. In the first half of 2017 and 2016, performance-based Value Driver Incentive (“VDI”) units totaling 249,204 and 296,052, respectively, were awarded to executives. These awards vest after a period of approximately three years and contain annual performance conditions for each of the three years of the vesting period. The performance targets for each year are generally established in the first quarter of that year. Under ASC 718, performance-based awards are not deemed granted for accounting purposes until the performance targets have been established. Accordingly, only one-third of the units awarded in any given year are deemed to be granted each year of the three year vesting period. During the first half of 2017, units totaling 83,068 and 92,094 under the 2017 and 2016 VDI plans, respectively, were granted at weighted-average grant date fair values of $53.35 per share and $51.62 per share, respectively. The grant date fair value is determined by adjusting the closing price of the company’s common stock on the date of grant for the post-vest holding period discount and for the effect of the market condition, when applicable. For awards granted under the 2017 VDI plan, the number of units will be adjusted at the end of each performance period based on achievement of certain performance targets and market conditions, as defined in the VDI award agreement. For awards granted under the 2016 VDI plan, the number of units is adjusted at the end of each performance period based only on the achievement of certain performance targets as defined in the VDI award agreement. Units granted under the 2017 and 2016 VDI plans can only be settled in company stock and are accounted for as equity awards in accordance with ASC 718. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2017 | |
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 and six months ended June 30, 2017, net earnings attributable to noncontrolling interests were $17 million and $34 million, respectively. For the three and six months ended June 30, 2016, net earnings attributable to noncontrolling interests were $18 million and $33 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $21 million and $24 million for the six months ended June 30, 2017 and 2016, respectively. Capital contributions by noncontrolling interests were $4 million and $8 million for the six months ended June 30, 2017 and 2016, respectively. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2017 | |
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. Fluor Australia Ltd., a wholly-owned subsidiary of the company (“Fluor Australia”), completed cost reimbursable engineering, procurement and construction management services for Santos Ltd. (“Santos”) on a large network of natural gas gathering and processing facilities in Queensland, Australia. On December 13, 2016, Santos filed an action in Queensland Supreme Court against Fluor Australia, asserting various causes of action and seeking damages of approximately AUD $1.47 billion. The company believes that the claims asserted by Santos are without merit and is vigorously defending these claims. Based upon the present status of this matter, the company does not believe it is probable that a loss will be incurred. Accordingly, the company has not recorded a charge as a result of this action. 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 claims accounting (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. Similarly, the company recognizes disputed back charges to suppliers or subcontractors as a reduction of cost when the same requirements have been satisfied. The company periodically evaluates its positions and the amounts recognized with respect to all its claims and back charges. As of June 30, 2017 and December 31, 2016, the company had recorded $75 million and $61 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 periods. The company had also recorded disputed back charges totaling $41 million as of both June 30, 2017 and December 31, 2016. The company believes the ultimate recovery of amounts related to these claims and back charges 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 $14 billion as of June 30, 2017. 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 June 30, 2017 and December 31, 2016 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 | 6 Months Ended |
Jun. 30, 2017 | |
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. Accounts receivable related to work performed for unconsolidated partnerships and joint ventures included in “Accounts and notes receivable, net” on the Condensed Consolidated Balance Sheet were $114 million and $392 million as of June 30, 2017 and December 31, 2016, respectively. The decrease in this receivable balance in 2017 resulted primarily from one Energy, Chemicals & Mining joint venture project in the United States. Notes receivable from unconsolidated partnerships and joint ventures included in “Accounts and notes receivable, net” and “Other assets” on the Condensed Consolidated Balance Sheet were $16 million and $19 million as of June 30, 2017 and December 31, 2016, 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 on 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 $636 million and $454 million as of June 30, 2017 and December 31, 2016, respectively, and were classified under “Investments” and “Other accrued liabilities” on the Condensed Consolidated Balance Sheet. In February 2016, the company made an initial cash investment of $350 million in 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. The company made an additional investment of $62 million in the third quarter of 2016 and has a future funding commitment of $78 million. 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 it has any of the following characteristics: (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 “Other accrued liabilities” on the Condensed Consolidated Balance Sheet was a net asset of $172 million as of June 30, 2017 and a net liability of $9 million as of December 31, 2016. 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 necessary to satisfy the contractual obligations of the VIE. Future funding commitments as of June 30, 2017 for the unconsolidated VIEs were $43 million. In some cases, the company is required to consolidate certain VIEs. As of June 30, 2017, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.0 billion and $603 million, respectively. As of December 31, 2016, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $959 million and $566 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, 2016. |
Operating Information by Segmen
Operating Information by Segment | 6 Months Ended |
Jun. 30, 2017 | |
Operating Information by Segment | |
Operating Information by Segment | (16) Operating Information by Segment A description of the company’s reportable segments is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2016. During the first quarter of 2017, the company changed the name of the Maintenance, Modification & Asset Integrity segment to Diversified Services. The company reports its operating results in the following four reportable segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government; and Diversified Services. Operating information by reportable segment is as follows: Three Months Ended Six Months Ended June 30, June 30, External Revenue (in millions) 2017 2016 2017 2016 Energy, Chemicals & Mining $ $ $ $ Industrial, Infrastructure & Power Government Diversified Services Total external revenue $ $ $ $ Intercompany revenue for the Diversified Services segment, excluded from the amounts shown above, was $155 million and $301 million for the three and six months ended June 30, 2017, respectively, and $123 million and $240 million for the three and six months ended June 30, 2016, respectively. Segment profit is an earnings measure that the company utilizes to evaluate and manage its business performance. Segment profit is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests excluding: corporate general and administrative expense; interest expense; interest income; domestic and foreign income taxes; and other non-operating income and expense items. Three Months Ended Six Months Ended June 30, June 30, Segment Profit (Loss) (in millions) 2017 2016 2017 2016 Energy, Chemicals & Mining $ $ $ $ Industrial, Infrastructure & Power ) ) Government Diversified Services Total segment profit $ $ $ $ Segment profit in the Industrial, Infrastructure & Power segment for the three and six months ended June 30, 2017 was adversely affected by pre-tax charges totaling $194 million (or $0.89 per diluted share) and $219 million (or $0.99 per diluted share), respectively, resulting from forecast revisions for estimated cost growth at three fixed-price, gas-fired power plant projects in the southeastern United States. Segment profit in the Industrial, Infrastructure & Power segment for the three and six months ended June 30, 2017 and 2016 included the operations of NuScale, which are primarily research and development activities associated with the licensing and commercialization of small modular nuclear reactor technology. NuScale expenses included in the determination of segment profit were $17 million and $33 million for the three and six months ended June 30, 2017, respectively, and $22 million and $48 million for the three and six months ended June 30, 2016, respectively. NuScale expenses were net of qualified reimbursable expenses of $10 million and $20 million for the three and six month periods of 2017, respectively, and $17 million and $31 million for the three and six months periods of 2016, respectively. A discussion of the cooperative agreement between NuScale and the U.S. Department of Energy is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2016. A reconciliation of total segment profit to earnings (loss) before taxes is as follows: Three Months Ended Six Months Ended Reconciliation of Total Segment Profit to Earnings June 30, June 30, (Loss) Before Taxes (in millions) 2017 2016 2017 2016 Total segment profit $ $ $ $ Corporate general and administrative expense ) ) ) ) Interest income (expense), net ) ) ) ) Earnings attributable to noncontrolling interests Earnings (loss) before taxes $ ) $ $ $ Total assets by segment are as follows: June 30, December 31, Total Assets by Segment (in millions) 2017 2016 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Diversified Services The decrease in total assets in the Energy, Chemicals & Mining segment resulted from decreased working capital in support of project execution activities. The increase in total assets in the Industrial, Infrastructure & Power and Diversified Services segments resulted from increased working capital in support of project execution activities. Total assets in the Industrial, Infrastructure & Power segment as of June 30, 2017 included accounts receivable and contract work in progress related to two subcontracts with Westinghouse Electric Company LLC (“Westinghouse”) to manage the construction workforce at nuclear power plant projects in Georgia (Plant Vogtle) and South Carolina (V.C. Summer). On March 29, 2017 (“the bankruptcy petition date”), Westinghouse filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, Southern District of New York. The company has filed mechanic’s liens in Georgia and South Carolina against the property of the owners of the projects for amounts due for pre-petition services rendered to Westinghouse. On July 31, 2017, the V.C. Summer project was cancelled by the owner of the project and the company is demobilizing from the site. The company continues to provide services to the Plant Vogtle project site at the request of the owner of the project. Based on agreements with the owners of both projects, the company has been compensated by the owners for certain pre-petition services rendered to Westinghouse, and continues to be compensated for post-petition services. In addition to amounts due for post-petition services, total assets as of June 30, 2017 included amounts due of $59 million and $14 million for services provided to V.C. Summer and Plant Vogtle, respectively, prior to the date of the bankruptcy petition. Based on the company’s evaluation of available information, the company expects the amounts outstanding for pre-petition services to be recoverable. |
Acquisition of Stork Holding B.
Acquisition of Stork Holding B.V. | 6 Months Ended |
Jun. 30, 2017 | |
Acquisition of Stork Holding B.V. | |
Acquisition of Stork Holding B.V. | (17) Acquisition of Stork Holding B.V. On March 1, 2016 (“the acquisition date”), the company acquired 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. The company 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 was available to fund working capital in the ordinary course of business. This replacement facility, which bore interest at EURIBOR plus .75%, expired in April 2017. The company completed its valuation of Stork’s assets and liabilities at the end of 2016. The aggregate purchase price noted above was 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 and identifiable intangible assets acquired, totaling €384 million (or approximately $417 million), was recorded as goodwill. The fair value of acquired intangible assets, which consisted primarily of customer relationships and trade names, as well as below market contracts and leases were determined using income-based approaches that utilized unobservable Level 3 inputs, including significant management assumptions such as forecasted revenue and operating margins, customer attrition, and weighted average cost of capital. Customer relationships are being amortized on a straight-line basis over their estimated useful lives of 8 years. Acquired trade names with finite lives are being amortized on a straight-line basis over their estimated useful lives, ranging from 2 to 15 years. Trade names with indefinite lives are not amortized, but are subject to annual impairment testing. The fair value of property, plant and equipment was determined using a cost-based approach that considers the estimated reproductive cost of the assets adjusted for depreciation factors, which include physical deterioration and functional or economic obsolescence. This approach uses Level 3 inputs that are generally unobservable in the marketplace. A market-based approach was also applied as a secondary method to estimate the fair value of certain assets. The market-based approach utilized observable Level 2 inputs for similar assets in active markets. Goodwill represents the excess of the purchase price over the fair value of the underlying net assets acquired. 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 has been reported in the Diversified Services segment. The following table summarizes 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 Intangible assets Goodwill Deferred taxes, net Other assets 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 € $ Since the acquisition date, revenue and earnings from Stork of $391 million and $4 million for the three months ended June 30, 2016, respectively, and $512 million and $7 million for the six months ended June 30, 2016, respectively, were included in the Condensed Consolidated Statement of Earnings. Integration costs of $5 million and $11 million for the three and six months ended June 30, 2016, respectively, and transaction costs of $1 million and $11 million for the three and six months ended June 30, 2016, respectively, were included in corporate general and administrative expense. The following pro forma financial information reflects the company’s consolidated operating results as if the Stork acquisition had occurred on January 1, 2015 and includes adjustments for debt refinancing and transaction costs. Three Months Ended Six Months Ended (in thousands) 2016 2016 Pro forma revenue $ $ Pro forma net earnings attributable to Fluor Corporation |
Other Comprehensive Income (L25
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income (Loss) | |
Schedule of tax effects of components of other comprehensive income (loss) | Three Months Ended Three Months Ended June 30, 2017 June 30, 2016 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 income (loss) ) ) ) Defined benefit pension and postretirement plan adjustments ) ) Unrealized loss on derivative contracts ) ) ) ) Unrealized gain (loss) on available-for-sale securities ) ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income (loss) attributable to noncontrolling interests ) — ) — Other comprehensive income (loss) attributable to Fluor Corporation $ $ ) $ $ ) $ $ ) Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 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 income ) ) Defined benefit pension and postretirement plan adjustments ) ) ) ) Unrealized gain on derivative contracts ) ) Unrealized gain (loss) on available-for-sale securities ) ) ) Total other comprehensive income (loss) ) ) ) Less: Other comprehensive income (loss) 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 Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of March 31, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications ) — ) ) ) Amounts reclassified from AOCI — — ) ) Net other comprehensive income (loss) ) ) ) Balance as of June 30, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Attributable to Noncontrolling Interests: Balance as of March 31, 2017 $ ) $ — $ — $ ) $ — $ ) Other comprehensive loss before reclassifications ) — — ) — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — ) Balance as of June 30, 2017 $ ) $ — $ — $ — $ — $ ) (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of December 31, 2016 $ ) $ ) $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from AOCI — — Net other comprehensive income (loss) ) Balance as of June 30, 2017 $ ) $ ) $ ) $ ) $ ) $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2016 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income (loss) before reclassifications ) — — — ) Amounts reclassified from AOCI — — — — Net other comprehensive income (loss) ) — — — ) Balance as of June 30, 2017 $ ) $ — $ — $ — $ — $ ) (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other Attributable to Fluor Corporation: Balance as of March 31, 2016 $ ) $ ) $ ) $ ) $ $ ) Other comprehensive income (loss) before reclassifications ) — ) ) Amounts reclassified from AOCI — — ) Net other comprehensive income (loss) ) ) ) Balance as of June 30, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of March 31, 2016 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income before reclassifications — — — Amounts reclassified from AOCI — — — — Net other comprehensive income — — — Balance as of June 30, 2016 $ $ — $ — $ ) $ — $ (in thousands) Foreign Ownership Share of Defined Benefit Unrealized Gain Unrealized Gain Accumulated Other 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 June 30, 2016 $ ) $ ) $ ) $ ) $ $ ) Attributable to Noncontrolling Interests: Balance as of December 31, 2015 $ ) $ — $ — $ ) $ — $ ) Other comprehensive income before reclassifications — — — Amounts reclassified from AOCI — — — — Net other comprehensive income — — — Balance as of June 30, 2016 $ $ — $ — $ ) $ — $ |
Schedule of significant items reclassified out of AOCI and corresponding location and impact | Location in Three Months Ended Six Months Ended Condensed Consolidated June 30, June 30, (in thousands) Statement of Earnings 2017 2016 2017 2016 Component of AOCI: Defined benefit pension plan adjustments Various accounts (1) $ ) $ ) $ ) $ ) Income tax benefit Income tax expense (benefit) Net of tax $ ) $ ) $ ) $ ) Unrealized gain (loss) on derivative contracts: Commodity and foreign currency contracts Total cost of revenue $ $ ) $ $ ) Interest rate contracts Interest expense ) ) ) ) Income tax benefit (expense) Income tax expense (benefit) ) 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 (benefit) ) ) ) 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) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Schedule of calculations of basic and diluted EPS | Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Net earnings (loss) attributable to Fluor Corporation $ ) $ $ $ Basic EPS attributable to Fluor Corporation: Weighted average common shares outstanding Basic earnings (loss) 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 (1) — Weighted average diluted shares outstanding Diluted earnings (loss) per share $ ) $ $ $ Anti-dilutive securities not included above (1) Employee stock options, restricted stock units and shares, and Value Driver Incentive units of 936,000 were excluded from weighted average diluted shares outstanding for the three months ended June 30, 2017 as the shares would have an anti-dilutive effect on the net loss. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | June 30, 2017 December 31, 2016 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 money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period. (2) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities and commercial paper with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. (3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange. (4) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets. (5) See Note 8 for the classification of commodity and foreign currency contracts on 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 | June 30, 2017 December 31, 2016 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) Amounts represent borrowings under the company’s €125 million Revolving Credit Facility which expired in April 2017, as discussed in Note 10. The carrying amount of the borrowings under this revolving credit facility approximated fair value because of the short-term maturity. (7) Other borrowings primarily represent bank loans and other financing arrangements assumed in 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) | 6 Months Ended |
Jun. 30, 2017 | |
Derivatives and Hedging | |
Schedule of fair values of derivatives designated as hedging instruments under ASC 815 | Asset Derivatives Liability Derivatives Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, (in thousands) Location 2017 2016 Location 2017 2016 Commodity contracts Other current assets $ $ Other accrued liabilities $ — $ Foreign currency contracts Other current assets Other accrued 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 | The after-tax amount of gain (loss) recognized in OCI associated with the derivative instruments designated as cash flow hedges was as follows: Three Months Ended Six Months Ended June 30, June 30, Cash Flow Hedges (in thousands) 2017 2016 2017 2016 Commodity contracts $ ) $ $ ) $ Foreign currency contracts ) ) ) Total $ ) $ ) $ $ ) The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows: Three Months Ended Six Months Ended June 30, June 30, Cash Flow Hedges (in thousands) Location of Gain (Loss) 2017 2016 2017 2016 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 Six Months Ended June 30, June 30, Fair Value Hedges (in thousands) Location of Gain (Loss) 2017 2016 2017 2016 Foreign currency contracts Corporate general and administrative expense $ $ ) $ $ ) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans | |
Retirement Benefits | |
Schedule of components of net periodic pension expense | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Service cost $ $ $ $ Interest cost Expected return on assets ) ) ) ) Amortization of prior service cost ) ) ) ) Recognized net actuarial loss Net periodic pension expense $ $ $ $ |
Operating Information by Segm30
Operating Information by Segment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Operating Information by Segment | |
Schedule of operating information and assets by reportable segment | Three Months Ended Six Months Ended June 30, June 30, External Revenue (in millions) 2017 2016 2017 2016 Energy, Chemicals & Mining $ $ $ $ Industrial, Infrastructure & Power Government Diversified Services Total external revenue $ $ $ $ Three Months Ended Six Months Ended June 30, June 30, Segment Profit (Loss) (in millions) 2017 2016 2017 2016 Energy, Chemicals & Mining $ $ $ $ Industrial, Infrastructure & Power ) ) Government Diversified Services Total segment profit $ $ $ $ June 30, December 31, Total Assets by Segment (in millions) 2017 2016 Energy, Chemicals & Mining $ $ Industrial, Infrastructure & Power Government Diversified Services |
Schedule of reconciliation of total segment profit to earnings (loss) before taxes | Three Months Ended Six Months Ended Reconciliation of Total Segment Profit to Earnings June 30, June 30, (Loss) Before Taxes (in millions) 2017 2016 2017 2016 Total segment profit $ $ $ $ Corporate general and administrative expense ) ) ) ) Interest income (expense), net ) ) ) ) Earnings attributable to noncontrolling interests Earnings (loss) before taxes $ ) $ $ $ |
Acquisition of Stork Holding 31
Acquisition of Stork Holding B.V. (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Acquisition of Stork Holding B.V. | |
Summary 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 Intangible assets Goodwill Deferred taxes, net Other assets 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 € $ |
Schedule of pro forma financial information | Three Months Ended Six Months Ended (in thousands) 2016 2016 Pro forma revenue $ $ Pro forma net earnings attributable to Fluor Corporation |
Other Comprehensive Income (L32
Other Comprehensive Income (Loss) - Tax Effects of Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other comprehensive income (loss), Before-Tax Amount: | ||||
Total other comprehensive income (loss), Before-Tax | $ 1,740 | $ (50,791) | $ 72,981 | $ (22,538) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Before-Tax | (406) | 699 | (148) | 755 |
Other comprehensive income (loss) attributable to Fluor Corporation, Before-Tax | 2,146 | (51,490) | 73,129 | (23,293) |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | (1,227) | 19,451 | (27,721) | 6,640 |
Other comprehensive income (loss) attributable to Fluor Corporation, Tax Benefit (Expense) | (1,227) | 19,451 | (27,721) | 6,640 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 513 | (31,340) | 45,260 | (15,898) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net-of-Tax | (406) | 699 | (148) | 755 |
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax | 919 | (32,039) | 45,408 | (16,653) |
Foreign currency translation adjustment, including noncontrolling interests | ||||
Other comprehensive income (loss), Before-Tax Amount: | ||||
Total other comprehensive income (loss), Before-Tax | 12,013 | (61,923) | 60,671 | (26,168) |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | (4,616) | 23,407 | (22,784) | 9,988 |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 7,397 | (38,516) | 37,887 | (16,180) |
Ownership share of equity method investees' other comprehensive income (loss), including noncontrolling interests | ||||
Other comprehensive income (loss), Before-Tax Amount: | ||||
Total other comprehensive income (loss), Before-Tax | (9,811) | 13,112 | 3,576 | 1,020 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | 3,302 | (4,728) | (1,652) | (654) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (6,509) | 8,384 | 1,924 | 366 |
Defined benefit pension and postretirement plan adjustments, including noncontrolling interests | ||||
Other comprehensive income (loss), Before-Tax Amount: | ||||
Total other comprehensive income (loss), Before-Tax | 2,428 | 1,933 | 3,056 | (617) |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | (911) | (725) | (1,146) | (1,500) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 1,517 | 1,208 | 1,910 | (2,117) |
Unrealized Gain (Loss) on derivative contracts, including noncontrolling interests | ||||
Other comprehensive income (loss), Before-Tax Amount: | ||||
Total other comprehensive income (loss), Before-Tax | (2,739) | (4,337) | 5,697 | 1,448 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | 941 | 1,656 | (2,147) | (527) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1,798) | (2,681) | 3,550 | 921 |
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 | (151) | 424 | (19) | 1,779 |
Other comprehensive income (loss), Tax Benefit (Expense): | ||||
Total other comprehensive income (loss), Tax Benefit (Expense) | 57 | (159) | 8 | (667) |
Other comprehensive income (loss), Net-of-Tax Amount: | ||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ (94) | $ 265 | $ (11) | $ 1,112 |
Other Comprehensive Income (L33
Other Comprehensive Income (Loss) - Changes in AOCI Balances by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | $ 3,242,831 | |||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ 513 | $ (31,340) | 45,260 | $ (15,898) |
BALANCE | 3,311,135 | 3,311,135 | ||
Accumulated Other Comprehensive Income (Loss), Net | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (452,180) | (417,389) | (496,669) | (432,775) |
Other comprehensive income (loss) before reclassifications | (410) | (34,281) | 43,123 | (21,948) |
Amounts reclassified from AOCI | 1,329 | 2,242 | 2,285 | 5,295 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 919 | (32,039) | 45,408 | (16,653) |
BALANCE | (451,261) | (449,428) | (451,261) | (449,428) |
Foreign Currency Translation | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (256,169) | (200,207) | (286,449) | (222,569) |
Other comprehensive income (loss) before reclassifications | 7,807 | (39,010) | 38,087 | (16,648) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 7,807 | (39,010) | 38,087 | (16,648) |
BALANCE | (248,362) | (239,217) | (248,362) | (239,217) |
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss) | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (23,480) | (45,967) | (31,913) | (37,949) |
Other comprehensive income (loss) before reclassifications | (6,509) | 8,384 | 1,924 | 366 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (6,509) | 8,384 | 1,924 | 366 |
BALANCE | (29,989) | (37,583) | (29,989) | (37,583) |
Defined Benefit Pension and Postretirement Plans | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (167,274) | (165,855) | (167,667) | (162,530) |
Other comprehensive income (loss) before reclassifications | (4,617) | |||
Amounts reclassified from AOCI | 1,517 | 1,208 | 1,910 | 2,500 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 1,517 | 1,208 | 1,910 | (2,117) |
BALANCE | (165,757) | (164,647) | (165,757) | (164,647) |
Unrealized Gain (Loss) on Derivative Contracts | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (5,075) | (5,735) | (10,375) | (9,255) |
Other comprehensive income (loss) before reclassifications | (1,619) | (3,980) | 3,125 | (2,184) |
Amounts reclassified from AOCI | (183) | 1,094 | 373 | 2,818 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1,802) | (2,886) | 3,498 | 634 |
BALANCE | (6,877) | (8,621) | (6,877) | (8,621) |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (182) | 375 | (265) | (472) |
Other comprehensive income (loss) before reclassifications | (89) | 325 | (13) | 1,135 |
Amounts reclassified from AOCI | (5) | (60) | 2 | (23) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (94) | 265 | (11) | 1,112 |
BALANCE | (276) | 640 | (276) | 640 |
Accumulated Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (408) | (568) | (666) | (624) |
Other comprehensive income (loss) before reclassifications | (412) | 620 | (187) | 578 |
Amounts reclassified from AOCI | 6 | 79 | 39 | 177 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (406) | 699 | (148) | 755 |
BALANCE | (814) | 131 | (814) | 131 |
Foreign Currency Translation Attributable to Noncontrolling Interests | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (404) | (140) | (614) | (114) |
Other comprehensive income (loss) before reclassifications | (410) | 494 | (200) | 468 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (410) | 494 | (200) | 468 |
BALANCE | (814) | 354 | (814) | 354 |
Unrealized Gain (Loss) on Derivative Contracts Attributable Noncontrolling Interests | ||||
Changes in AOCI balances by component (after-tax) | ||||
BALANCE | (4) | (428) | (52) | (510) |
Other comprehensive income (loss) before reclassifications | (2) | 126 | 13 | 110 |
Amounts reclassified from AOCI | 6 | 79 | 39 | 177 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ 4 | 205 | $ 52 | 287 |
BALANCE | $ (223) | $ (223) |
Other Comprehensive Income (L34
Other Comprehensive Income (Loss) - Significant Items Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassifications out of accumulated other comprehensive income (loss) | ||||
Total cost of revenue | $ (4,684,116) | $ (4,607,868) | $ (9,370,020) | $ (8,775,935) |
Interest expense | (16,473) | (18,719) | (34,036) | (33,364) |
Corporate general and administrative expense | (47,315) | (52,640) | (92,363) | (107,753) |
Income tax expense (benefit) | 17,317 | (61,348) | 1,246 | (131,557) |
NET EARNINGS (LOSS) | (6,632) | 120,054 | 70,722 | 239,065 |
Net earnings attributable to noncontrolling interests | 17,393 | 18,241 | 34,136 | 32,929 |
NET EARNINGS (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION | (24,025) | 101,813 | 36,586 | 206,136 |
Defined Benefit Pension and Postretirement Plans | Reclassified out of AOCI | ||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||
Adjustments | (2,428) | (1,933) | (3,056) | (4,000) |
Income tax benefit | 911 | 725 | 1,146 | 1,500 |
Net of tax | (1,517) | (1,208) | (1,910) | (2,500) |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | ||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||
Income tax expense (benefit) | (116) | 659 | 227 | 1,728 |
NET EARNINGS (LOSS) | 177 | (1,173) | (412) | (2,995) |
Net earnings attributable to noncontrolling interests | (6) | (79) | (39) | (177) |
NET EARNINGS (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION | 183 | (1,094) | (373) | (2,818) |
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 | 713 | (1,412) | 200 | (3,884) |
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Interest rate contracts | ||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||
Interest expense | (420) | (420) | (839) | (839) |
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 | 9 | 95 | (3) | 36 |
Income tax expense (benefit) | (4) | (35) | 1 | (13) |
NET EARNINGS (LOSS) | $ 5 | $ 60 | $ (2) | $ 23 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes | ||||
Effective tax rate, continuing operations (as a percent) | 72.30% | 33.80% | (1.80%) | 35.50% |
Cash Paid for Interest and Ta36
Cash Paid for Interest and Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Paid for Interest and Taxes | ||
Interest | $ 36 | $ 38 |
Income taxes payments, net of refunds | $ 159 | $ 77 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of basic and diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share | ||||
Net earnings (loss) attributable to Fluor Corporation | $ (24,025) | $ 101,813 | $ 36,586 | $ 206,136 |
Basic EPS attributable to Fluor Corporation: | ||||
Weighted average common shares outstanding (in shares) | 139,818,000 | 139,226,000 | 139,631,000 | 139,088,000 |
Basic earnings (loss) per share (in dollars per share) | $ (0.17) | $ 0.73 | $ 0.26 | $ 1.48 |
Diluted effect: | ||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units (in shares) | 1,575,000 | 1,225,000 | 1,745,000 | |
Weighted average diluted shares outstanding (in shares) | 139,818,000 | 140,801,000 | 140,856,000 | 140,833,000 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.17) | $ 0.72 | $ 0.26 | $ 1.46 |
Anti-dilutive securities not included above (in shares) | 5,028,000 | 4,107,000 | 4,436,000 | 3,917,000 |
Repurchases of common stock | ||||
Common stock repurchased and cancelled, shares (in shares) | 0 | 0 | 0 | 202,650 |
Common stock repurchased and cancelled, amount (in dollars) | $ 10,000 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares Excluded from Calculation (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive securities excluded from computation of EPS | ||||
Anti-dilutive securities not included above (in shares) | 5,028,000 | 4,107,000 | 4,436,000 | 3,917,000 |
Employee stock options, restricted stock units and shares, and Value Driver Incentive units | ||||
Antidilutive securities excluded from computation of EPS | ||||
Anti-dilutive securities not included above (in shares) | 936,000 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
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 | $ 19,000 | $ 92,000 | $ 44,000 | $ 214,000 | |
Marketable securities, available-for-sale | Minimum | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Debt securities maturity period | 1 year | ||||
Marketable securities, available-for-sale | Maximum | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Debt securities maturity period | 3 years | ||||
Fair Value, Measurements, Recurring | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 689 | $ 689 | 21,035 | ||
Marketable securities, current | 88,806 | 88,806 | 54,840 | ||
Deferred compensation trusts | 37,717 | 37,717 | 37,510 | ||
Marketable securities, noncurrent | 131,126 | 131,126 | 143,553 | ||
Fair Value, Measurements, Recurring | Money market funds | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 1,000 | 1,000 | 21,000 | ||
Fair Value, Measurements, Recurring | U.S. agency securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 12,000 | 12,000 | 11,000 | ||
Fair Value, Measurements, Recurring | U.S. Treasury securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 80,000 | 80,000 | 87,000 | ||
Fair Value, Measurements, Recurring | Corporate debt securities | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 123,000 | 123,000 | 100,000 | ||
Fair Value, Measurements, Recurring | Commercial paper | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Available-for-sale securities | 5,000 | 5,000 | |||
Fair Value, Measurements, Recurring | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 120 | 120 | 83 | ||
Derivative liabilities | 129 | ||||
Fair Value, Measurements, Recurring | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 29,433 | 29,433 | 34,776 | ||
Derivative liabilities | 32,241 | 32,241 | 43,574 | ||
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Cash and cash equivalents | 689 | 689 | 21,035 | ||
Deferred compensation trusts | 37,717 | 37,717 | 37,510 | ||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Marketable securities, current | 88,806 | 88,806 | 54,840 | ||
Marketable securities, noncurrent | 131,126 | 131,126 | 143,553 | ||
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 120 | 120 | 83 | ||
Derivative liabilities | 129 | ||||
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contracts | |||||
Fair value of assets and liabilities measured on recurring basis | |||||
Derivative assets | 29,433 | 29,433 | 34,776 | ||
Derivative liabilities | $ 32,241 | $ 32,241 | $ 43,574 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Required to be Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Nov. 30, 2014 | Sep. 30, 2011 |
1.750% 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% | 1.75% | 1.75% | 1.75% | ||
3.375% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Interest rate (as a percent) | 3.375% | 3.375% | 3.375% | |||
3.5% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | |||
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 | $ 105,121 | $ 56,197 | ||||
Notes receivable, including noncurrent portion | 22,309 | 29,458 | ||||
Carrying Value | 1.750% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 567,033 | 523,629 | ||||
Carrying Value | 3.375% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 496,435 | 496,011 | ||||
Carrying Value | 3.5% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 492,840 | 492,360 | ||||
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 | 52,735 | |||||
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 | 40,553 | 35,457 | ||||
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 | 105,121 | 56,197 | ||||
Fair Value | Level 2 | 1.750% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 591,604 | 551,582 | ||||
Fair Value | Level 2 | 3.375% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 518,935 | 512,510 | ||||
Fair Value | Level 2 | 3.5% Senior Notes | ||||||
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis | ||||||
Debt | 519,620 | 508,230 | ||||
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 | 52,735 | |||||
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 | 40,553 | 35,457 | ||||
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 | 22,309 | 29,458 | ||||
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 | 1,098,594 | 1,133,295 | ||||
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 | 1,098,594 | 1,133,295 | ||||
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 | 720,516 | 696,106 | ||||
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 | $ 720,516 | $ 696,106 |
Derivatives and Hedging - Notio
Derivatives and Hedging - Notional Amounts and Fair Values (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Asset Derivatives | $ 29,553 | $ 34,859 |
Liability Derivatives | 32,241 | 43,703 |
Commodity contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | 400 | |
Commodity contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 120 | 83 |
Commodity contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 129 | |
Foreign currency contracts | ||
Derivatives, Fair Value | ||
Total gross notional amount | 952,000 | |
Foreign currency contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 15,524 | 13,231 |
Foreign currency contracts | Other assets. | ||
Derivatives, Fair Value | ||
Asset Derivatives | 13,909 | 21,545 |
Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | 13,577 | 16,543 |
Foreign currency contracts | Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | $ 18,664 | $ 27,031 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains (Losses) Associated with Fair Value and Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ 1,158 | $ (1,521) | $ 4,105 | $ (1,326) |
Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
After-tax amount of gain (loss) recognized in OCI | (1,619) | (3,980) | 3,125 | (2,184) |
After-tax amount of gain (loss) reclassified from AOCI into earnings | 183 | (1,094) | (373) | (2,818) |
Cash Flow Hedges | Commodity contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
After-tax amount of gain (loss) recognized in OCI | (11) | 298 | (8) | 300 |
Cash Flow Hedges | Commodity contracts | Total cost of revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
After-tax amount of gain (loss) reclassified from AOCI into earnings | (2) | (57) | (36) | (177) |
Cash Flow Hedges | Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
After-tax amount of gain (loss) recognized in OCI | (1,608) | (4,278) | 3,133 | (2,484) |
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 | 447 | (775) | 187 | (2,117) |
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) | $ (524) | $ (524) |
Derivatives and Hedging - Deriv
Derivatives and Hedging - Derivative Contracts Not Designated as Hedging Instruments (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Total cost of revenue | ||
Derivatives | ||
Recognized gains/losses associated with derivative contracts not designated as hedging instruments | $ 3 | $ 0.3 |
Not designated as hedging instrument | Foreign currency contracts | ||
Derivatives | ||
Total gross notional amount | 8 | 8 |
Not designated as hedging instrument | Commodity contracts | ||
Derivatives | ||
Total gross notional amount | $ 2 | $ 2 |
Retirement Benefits (Details)
Retirement Benefits (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net periodic pension expense for defined benefit pension plans | ||||
Service cost | $ 4,519 | $ 5,014 | $ 8,913 | $ 9,746 |
Interest cost | 5,457 | 6,899 | 10,750 | 13,520 |
Expected return on assets | (9,893) | (10,258) | (19,484) | (20,309) |
Amortization of prior service cost | (203) | (198) | (398) | (407) |
Recognized net actuarial loss | 2,977 | 2,130 | 3,808 | 4,406 |
Net periodic pension expense | $ 2,857 | $ 3,587 | 3,589 | $ 6,956 |
Company contributions | 11,000 | |||
Maximum | ||||
Net periodic pension expense for defined benefit pension plans | ||||
Expected contributions during 2017 | $ 20,000 |
Financing Arrangements - Credit
Financing Arrangements - Credit Facilities (Details) | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Mar. 17, 2016USD ($) | Mar. 01, 2016USD ($) | |
Lines of credit | ||||
Financing Arrangements | ||||
Amount outstanding under credit facilities | $ 1,800,000,000 | |||
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 | ||||
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 | 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 | 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 | ||||
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 | 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 | Maximum | Subsidiaries | ||||
Financing Arrangements | ||||
Aggregate amount of debt | $ 750,000,000 | € 750,000,000 | ||
Committed credit line | Revolving Credit Facility | ||||
Financing Arrangements | ||||
Maximum borrowing capacity | $ 1,750,000,000 |
Financing Arrangements - Senior
Financing Arrangements - Senior Notes (Details) | Mar. 01, 2016EUR (€) | Apr. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Nov. 30, 2014USD ($) | Sep. 30, 2011USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Lines of credit | |||||||||
Financing Arrangements | |||||||||
Amount outstanding under credit facilities | $ 1,800,000,000 | ||||||||
Lines of credit | Committed credit line | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||||
April 2016 Revolving Credit Facility due April 2017 | Lines of credit | Committed credit line | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | € | € 125,000,000 | ||||||||
April 2016 Revolving Credit Facility due April 2017 | Lines of credit | Committed credit line | Euribor | |||||||||
Financing Arrangements | |||||||||
Margin added to variable rate (as a percent) | 0.75% | ||||||||
Super Senior Revolving Credit Facility | Stork Holding B.V. | |||||||||
Financing Arrangements | |||||||||
Maximum borrowing capacity | € | € 110,000,000 | ||||||||
Super Senior Revolving Credit Facility | Stork Holding B.V. | Euribor | |||||||||
Financing Arrangements | |||||||||
Margin added to variable rate (as a percent) | 3.75% | ||||||||
1.750% Senior Notes | |||||||||
Financing Arrangements | |||||||||
Debt issued | € | € 500,000,000 | ||||||||
Interest rate (as a percent) | 1.75% | 1.75% | 1.75% | 1.75% | |||||
Proceeds from issuance of notes, net of underwriting discounts | $ 551,000,000 | € 497,000,000 | |||||||
1.750% Senior Notes | Prior to December 21, 2022 | |||||||||
Financing Arrangements | |||||||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||||||
1.750% 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% 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% Senior Notes | Change of control triggering event | |||||||||
Financing Arrangements | |||||||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% | ||||||||
3.5% Senior Notes | |||||||||
Financing Arrangements | |||||||||
Debt issued | $ 500,000,000 | ||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||||||
Proceeds from issuance of notes, net of underwriting discounts | $ 491,000,000 | ||||||||
3.5% Senior Notes | Prior to September 15, 2024 | |||||||||
Financing Arrangements | |||||||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||||||
3.5% 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% Senior Notes | Change of control triggering event | |||||||||
Financing Arrangements | |||||||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% | ||||||||
3.375% Senior Notes | |||||||||
Financing Arrangements | |||||||||
Debt issued | $ 500,000,000 | ||||||||
Interest rate (as a percent) | 3.375% | 3.375% | 3.375% | ||||||
Proceeds from issuance of notes, net of underwriting discounts | $ 492,000,000 | ||||||||
Redemption price at which debt may be redeemed (as a percent) | 100.00% | ||||||||
3.375% Senior Notes | Change of control triggering event | |||||||||
Financing Arrangements | |||||||||
Redemption price at which debt may be redeemed (as a percent) | 101.00% |
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 (€) | Jun. 30, 2017USD ($) | Mar. 02, 2016USD ($) | Mar. 02, 2016EUR (€) | Mar. 01, 2016EUR (€) |
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 | Stork Holding B.V. | ||||||||
Financing Arrangements | ||||||||
Maximum borrowing capacity | € | € 110,000,000 | |||||||
$1.7 billion Revolving Loan and Letter of Credit Facility | 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) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Stork Holding B.V. | ||
Short-term credit facility | ||
Other borrowings | $ 41 | $ 35 |
Stock-Based Plans (Details)
Stock-Based Plans (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Restricted stock units | Executives and directors | ||
Stock-Based Plans | ||
Granted (in shares) | 402,783 | 553,415 |
Granted, weighted average grant date fair value (in dollars per share) | $ 52.57 | $ 43.77 |
Post-vest holding period | 3 years | 3 years |
Restricted stock units | Executives | ||
Stock-Based Plans | ||
Vesting period | 3 years | 3 years |
Stock Options | Executives | ||
Stock-Based Plans | ||
Options awarded (in shares) | 1,103,817 | 662,001 |
Options awarded, weighted average exercise price (in dollars per share) | $ 55.35 | $ 46.07 |
Vesting period | 3 years | 3 years |
Term of stock-based award | 10 years | 10 years |
Stock-based VDI units | Executives | ||
Stock-Based Plans | ||
Granted (in shares) | 249,204 | 296,052 |
Vesting period | 3 years | 3 years |
Stock-based VDI units | 2017 VDI Plan | Executives | ||
Stock-Based Plans | ||
Expected amount of shares granted (in shares) | 83,068 | |
Expected weighted average grant date fair value (in dollars per share) | $ 53.35 | |
Stock-based VDI units | 2016 VDI Plan | Executives | ||
Stock-Based Plans | ||
Expected amount of shares granted (in shares) | 92,094 | |
Expected weighted average grant date fair value (in dollars per share) | $ 51.62 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Noncontrolling Interests | ||||
Net earnings attributable to noncontrolling interests | $ 17,393 | $ 18,241 | $ 34,136 | $ 32,929 |
Distributions paid to noncontrolling interests | 21,176 | 24,327 | ||
Capital contributions by noncontrolling interests | $ 4,150 | $ 8,016 |
Contingencies and Commitments -
Contingencies and Commitments - Claims and Actions (Details) AUD in Millions, $ in Millions | Dec. 13, 2016AUD | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Contingencies and Commitments | |||
Damages sought | AUD | AUD 1,470 | ||
Amount of disputed back charges | $ | $ 41 | $ 41 |
Contingencies and Commitments52
Contingencies and Commitments - Contract Work in Progress (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Contract work in progress | ||
Recognized claims against clients | ||
Contracts receivable, claims and uncertain amounts | $ 75 | $ 61 |
Guarantees (Details)
Guarantees (Details) $ in Billions | Jun. 30, 2017USD ($) |
Performance Guarantee | |
Guarantees | |
Estimated performance guarantees outstanding | $ 14 |
Partnerships and Joint Ventur54
Partnerships and Joint Ventures - Ownership and Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
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 | $ 114 | $ 392 |
Notes receivable | $ 16 | |
Unconsolidated variable interest entities | Other assets. | ||
Variable interest entity information | ||
Notes receivable | $ 19 |
Partnerships and Joint Ventur55
Partnerships and Joint Ventures - Unconsolidated Partnerships and Joint Ventures and Equity Method Investments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Partnerships and Joint Ventures | ||
Investments in unconsolidated partnerships and joint ventures under equity method | $ 636 | $ 454 |
Partnerships and Joint Ventur56
Partnerships and Joint Ventures - Joint Venture Investment Agreement (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2016USD ($)company | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | |
COOEC Fluor Heavy Industries Co., Ltd. | |||
Commitments | |||
Cash investment in joint venture | $ 350 | $ 62 | |
Ownership interest in joint venture (as a percent) | 49.00% | ||
COOEC Fluor Heavy Industries Co., Ltd. | Funding commitment, additional investment | |||
Commitments | |||
Commitment amount | $ 78 | ||
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 Ventur57
Partnerships and Joint Ventures - Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Unconsolidated variable interest entities | ||
Variable interest entity information | ||
Net carrying value of the unconsolidated VIEs | $ 172 | $ (9) |
Unconsolidated variable interest entities | Future funding commitment | ||
Variable interest entity information | ||
Commitment amount | 43 | |
Consolidated variable interest entities | ||
Variable interest entity information | ||
Carrying value of assets | 1,000 | 959 |
Carrying value of liabilities | $ 603 | $ 566 |
Operating Information by Segm58
Operating Information by Segment - Reportable Segments (Details) | 6 Months Ended |
Jun. 30, 2017segment | |
Operating Information by Segment | |
Number of reportable segments | 4 |
Operating Information by Segm59
Operating Information by Segment - External Revenue and Segment Profit (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
External revenue | ||||
Revenue | $ 4,716,092 | $ 4,856,117 | $ 9,551,997 | $ 9,280,006 |
Reportable segments | ||||
Segment Profit (Loss) | ||||
Segment Profit (Loss) | 14,600 | 230,000 | 147,900 | 471,100 |
Energy, Chemicals and Mining | ||||
External revenue | ||||
Revenue | 2,304,000 | 2,476,400 | 4,606,200 | 4,919,900 |
Energy, Chemicals and Mining | Reportable segments | ||||
Segment Profit (Loss) | ||||
Segment Profit (Loss) | 126,600 | 125,500 | 214,900 | 307,500 |
Industrial, Infrastructure and Power | ||||
External revenue | ||||
Revenue | 1,026,500 | 1,010,000 | 2,225,800 | 1,843,300 |
Industrial, Infrastructure and Power | Reportable segments | ||||
Segment Profit (Loss) | ||||
Segment Profit (Loss) | (168,000) | 51,400 | (174,700) | 63,300 |
Government | ||||
External revenue | ||||
Revenue | 744,200 | 657,900 | 1,509,400 | 1,343,900 |
Government | Reportable segments | ||||
Segment Profit (Loss) | ||||
Segment Profit (Loss) | 19,700 | 22,000 | 48,700 | 39,100 |
Diversified Services | ||||
External revenue | ||||
Revenue | 641,400 | 711,800 | 1,210,600 | 1,172,900 |
Diversified Services | Reportable segments | ||||
Segment Profit (Loss) | ||||
Segment Profit (Loss) | 36,300 | 31,100 | 59,000 | 61,200 |
Diversified Services | Intercompany | ||||
External revenue | ||||
Revenue | $ 155,000 | $ 123,000 | $ 301,000 | $ 240,000 |
Operating Information by Segm60
Operating Information by Segment - Additional Operating Information (Details) - Industrial, Infrastructure and Power $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item$ / shares | Jun. 30, 2016USD ($) | |
Segment reporting information | ||||
Effect of forecast revision on estimated project cost | $ 194 | $ 219 | ||
Effect of forecast revision on estimated project cost, in dollars per diluted share | $ / shares | $ 0.89 | $ 0.99 | ||
Number of fixed-price, gas-fired power plant projects in the southeastern U.S. | item | 3 | |||
Reportable segments | Nu Scale Power | ||||
Segment reporting information | ||||
Research and development expense | $ 17 | $ 22 | $ 33 | $ 48 |
Reportable segments | Nu Scale Power | Cost-sharing agreement, research and development activities | U.S. Department of Energy | Total cost of revenue | ||||
Segment reporting information | ||||
Qualified expenses reimbursed | $ 10 | $ 17 | $ 20 | $ 31 |
Operating Information by Segm61
Operating Information by Segment - Reconciliation to Consolidated Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Total Segment Profit to Earnings (Loss) Before Taxes | ||||
Corporate general and administrative expense | $ (47,315) | $ (52,640) | $ (92,363) | $ (107,753) |
Interest income (expense), net | (8,600) | (14,200) | (20,100) | (25,700) |
Earnings attributable to noncontrolling interests | (17,393) | (18,241) | (34,136) | (32,929) |
EARNINGS (LOSS) BEFORE TAXES | (23,949) | 181,402 | 69,476 | 370,622 |
Reportable segments | ||||
Reconciliation of Total Segment Profit to Earnings (Loss) Before Taxes | ||||
Segment Profit | $ 14,600 | $ 230,000 | $ 147,900 | $ 471,100 |
Operating Information by Segm62
Operating Information by Segment - Total Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment reporting information | ||
Total assets | $ 9,221,808 | $ 9,216,417 |
Reportable segments | Energy, Chemicals and Mining | ||
Segment reporting information | ||
Total assets | 1,995,200 | 2,348,000 |
Reportable segments | Industrial, Infrastructure and Power | ||
Segment reporting information | ||
Total assets | 808,900 | 750,100 |
Reportable segments | Government | ||
Segment reporting information | ||
Total assets | 461,300 | 493,700 |
Reportable segments | Diversified Services | ||
Segment reporting information | ||
Total assets | $ 2,080,500 | $ 1,952,700 |
Operating Information by Segm63
Operating Information by Segment - Subcontracts (Details) - Industrial, Infrastructure and Power $ in Millions | Jun. 30, 2017USD ($)item |
Westinghouse | |
Segment reporting information | |
Number of subcontracts | item | 2 |
V.C. Summer | |
Segment reporting information | |
Accounts receivable | $ 59 |
Plant Vogtle | |
Segment reporting information | |
Accounts receivable | $ 14 |
Acquisitions of Stork Holding B
Acquisitions 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 (€) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Mar. 02, 2016USD ($) | Mar. 02, 2016EUR (€) | Mar. 01, 2016EUR (€) |
Acquisition | ||||||||||
Amount borrowed under credit facility | $ 883,750,000 | |||||||||
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 | 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 | ||||||||||
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 | April 2016 Revolving Credit Facility due April 2017 | ||||||||||
Acquisition | ||||||||||
Maximum borrowing capacity | € | € 125,000,000 | |||||||||
Lines of credit | Committed credit line | April 2016 Revolving Credit Facility due April 2017 | Euribor | ||||||||||
Acquisition | ||||||||||
Margin added to variable rate (as a percent) | 0.75% | |||||||||
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. | Super Senior Revolving Credit Facility | Euribor | ||||||||||
Acquisition | ||||||||||
Margin added to variable rate (as a percent) | 3.75% | 3.75% | ||||||||
Stork Holding B.V. | Certain other outstanding debt obligations | ||||||||||
Acquisition | ||||||||||
Debt assumed | $ 22,000,000 | € 20,000,000 |
Acquisitions of Stork Holding65
Acquisitions of Stork Holding B.V. - Goodwill Deductible for Tax Purposes (Details) | Mar. 01, 2016EUR (€) |
Stork Holding B.V. | |
Goodwill | |
Goodwill expected to be deductible for tax purposes | € 0 |
Acquisitions of Stork Holding66
Acquisitions of Stork Holding B.V. - Purchase Price Allocation (Details) € in Thousands, $ in Thousands | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 01, 2016USD ($) | Mar. 01, 2016EUR (€) |
Estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date | ||||
Goodwill | $ 548,849 | $ 532,239 | ||
Stork Holding B.V. | ||||
Estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date | ||||
Cash and cash equivalents | $ 59,204 | € 54,441 | ||
Accounts and notes receivable | 182,585 | 167,894 | ||
Contract work in progress | 105,125 | 96,667 | ||
Other current assets | 55,533 | 51,065 | ||
Property, plant and equipment | 176,746 | 162,525 | ||
Investments | 1,617 | 1,487 | ||
Intangible assets | 185,963 | 171,000 | ||
Goodwill | 417,310 | 383,734 | ||
Deferred taxes, net | 10,730 | 9,867 | ||
Other assets | 979 | 900 | ||
Trade accounts payable | (123,864) | (113,898) | ||
Advance billings on contracts | (23,234) | (21,364) | ||
Other accrued liabilities | (222,975) | (205,034) | ||
Revolving credit facility and other borrowings | (435,248) | (400,228) | ||
Long-term debt | (16,633) | (15,295) | ||
Noncurrent liabilities | (70,689) | (65,001) | ||
Noncontrolling interests | (3,205) | (2,947) | ||
Net assets acquired | $ 299,944 | € 275,813 |
Acquisitions of Stork Holding67
Acquisitions of Stork Holding B.V. - Acquired Intangible assets (Details) - Stork Holding B.V. | Mar. 01, 2016 |
Customer relationships | |
Acquired intangible assets | |
Useful lives | 8 years |
Trade names | Minimum | |
Acquired intangible assets | |
Useful lives | 2 years |
Trade names | Maximum | |
Acquired intangible assets | |
Useful lives | 15 years |
Acquisitions of Stork Holding68
Acquisitions 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 | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Acquisition | ||
Revenue since the acquisition date | $ 391,000 | $ 512,000 |
Earnings before taxes since the acquisition date | 4,000 | 7,000 |
Pro forma financial information | ||
Pro forma revenue | 4,861,781 | 9,518,718 |
Pro forma net earnings attributable to Fluor Corporation | 105,342 | 210,880 |
Corporate general and administrative expense | ||
Acquisition | ||
Integration costs | 5,000 | 11,000 |
Transaction costs | $ 1,000 | $ 11,000 |