Foster Wheeler (FWLT) 10-Q 4 Nov 09 2009 Q3 Quarterly report Financial data

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 26, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 26, 2008
Operating revenues	$1,216,379	$1,718,355	$3,789,703	$5,215,101
Cost of operating revenues	1,022,542	1,489,095	3,213,155	4,522,654
Contract Profit	193,837	229,260	576,548	692,447
Selling, general and administrative expenses	75,881	74,831	214,153	218,771
Other income, net	(10,508)	(3,364)	(30,201)	(35,035)
Other deductions, net	6,722	13,528	19,707	25,120
Interest income	(2,701)	(12,457)	(7,799)	(35,155)
Interest expense	4,648	5,193	10,117	16,204
Net asbestos-related provision/(gain)	1,745	1,725	5,251	(30,738)
Income before income taxes	118,050	149,804	365,320	533,280
Provision for income taxes	22,061	21,050	67,625	104,683
Net income	95,989	128,754	297,695	428,597
Net income attributable to noncontrolling Interests	5,991	834	12,630	1,859
Net income attributable to Foster Wheeler AG	$89,998	$127,920	$285,065	$426,738
Earnings per share (see Note 1):
Basic	0.71	0.89	2.26	2.96
Diluted	0.71	0.88	2.24	2.94

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET (USD $)
In Thousands	Sep. 30, 2009	Dec. 26, 2008
Current Assets:
Cash and cash equivalents	$962,133	$773,163
Short-term investments	3,645	2,448
Trade accounts and notes receivable, net	548,879	608,994
Other accounts and notes receivable, net	100,289	95,633
Contracts in process	276,011	241,135
Prepaid, deferred and refundable income taxes	31,514	31,667
Other current assets	34,830	37,146
Total current assets	1,957,301	1,790,186
Land, buildings and equipment, net	400,295	383,209
Restricted cash	22,427	22,737
Notes and accounts receivable - long-term	1,578	1,788
Investments in and advances to unconsolidated affiliates	219,253	210,776
Goodwill	72,310	62,165
Other intangible assets, net	59,155	59,874
Asbestos-related insurance recovery receivable	259,553	281,540
Other assets	76,046	82,223
Deferred tax assets	104,939	116,756
TOTAL ASSETS	3,172,857	3,011,254
Current Liabilities:
Current installment on long-term debt	23,226	24,375
Accounts payable	290,553	365,347
Accrued expenses	281,483	303,813
Billings in excess of cost and estimated earnings on uncompleted contracts	680,579	750,233
Income taxes payable	58,733	44,846
Total current liabilities	1,334,574	1,488,614
Long-term debt	194,801	192,989
Deferred tax liabilities	61,292	66,114
Pension, postretirement and other employee benefits	308,034	320,959
Asbestos-related liability	325,401	355,779
Other long-term liabilities	162,174	157,933
Commitments and contigencies
TOTAL LIABILITIES	2,386,276	2,582,388
Temporary equity:
Non-vested share-based compensation awards subject to redemption	9,294	7,586
Equity:
Preferred shares	0	0
Common shares	0	1,262
Registered shares	327,991	0
Paid-in capital	604,239	914,063
Retained earnings/(accumulated deficit)	257,090	(27,975)
Accumulated other comprehensive loss	(452,416)	(494,788)
TOTAL FOSTER WHEELER AG SHAREHOLDERS' EQUITY	736,904	392,562
Noncontrolling interests	40,383	28,718
TOTAL EQUITY	777,287	421,280
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY	$3,172,857	$3,011,254

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
	Sep. 30, 2009		Dec. 26, 2008
Preferred shares:
Preferred share par value	$0		0.01
Preferred shares authorized	0		901,135
Preferred shares issued	0		1,079
Preferred shares outstanding	0		1,079
Common shares:
Common share par value	$0		0.01
Common shares authorized	0		296,007,818
Common shares issued	0		126,177,611
Common shares outstanding	0		126,177,611
Registered shares:
Registered share par value	3	[1]	0
Registered shares authorized	190,166,065		0
Registered shares conditionally authorized	62,665,763		0
Registered shares issued	126,958,108		0
Registered shares outstanding	126,958,108		0
[1]CHF 3.00 Par Value (Swiss Francs)

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $)
In Thousands	9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 26, 2008
Total Equity, Beginning Balance	$421,280		$602,814
Net income	297,695		428,597
Net income attributable to noncontrolling interest	12,630		1,859
Foreign currency transaction adjustments	32,534		(18,541)
Net loss on derivative instruments designated as cash flow hedges, net of tax	(3,739)		(6)
Pension and other postretirement benefits, net of tax	14,783		11,164
Comprehensive income	341,273	[2]	421,214	[1]
Issuance of registered/common shares upon exercise of share purchase warrants	2,482		399
Issuance of registered/common shares upon exercise of stock options	277		2,595
Repurchase and retirement of shares	(28)		(50,027)
Distributions to noncontrolling interests	(2,171)		(9,625)
Share-based compensation expense - stock options and restricted awards	14,183		8,436
Excess tax benefit related to share-based compensation	(9)		161
Total Equity, Ending Balance	777,287		975,967
Common shares [Member]
Total Equity, Beginning Balance	1,262		1,439
Issuance of registered/common shares upon exercise of share purchase warrants			1
Issuance of registered/common shares upon exercise of stock options			1
Issuance of registered/common shares upon vesting of restricted awards	1		1
Repurchase and retirement of shares			(13)
Issuance of registered/common shares upon conversion of preferred shares and cancellation of common shares	(1,263)		1
Total Equity, Ending Balance	0		1,430
Paid-in Capital [Member]
Total Equity, Beginning Balance	914,063		1,385,311
Issuance of registered/common shares upon exercise of share purchase warrants	964		398
Issuance of registered/common shares upon exercise of stock options	244		2,594
Issuance of registered/common shares upon vesting of restricted awards	(10)		(1)
Repurchase and retirement of shares	(28)		(50,014)
Issuance of registered/common shares upon conversion of preferred shares and cancellation of common shares	(325,168)		(1)
Share-based compensation expense - stock options and restricted awards	14,183		8,436
Excess tax benefit related to share-based compensation	(9)		161
Total Equity, Ending Balance	604,239		1,346,884
Registered Shares [Member]
Total Equity, Beginning Balance	0		0
Issuance of registered/common shares upon exercise of share purchase warrants	1,518
Issuance of registered/common shares upon exercise of stock options	33		0
Issuance of registered/common shares upon vesting of restricted awards	9
Issuance of registered/common shares upon conversion of preferred shares and cancellation of common shares	326,431
Total Equity, Ending Balance	327,991		0
Preferred Shares [Member]
Total Equity, Beginning Balance	0		0
Issuance of registered/common shares upon conversion of preferred shares and cancellation of common shares	0		0
Total Equity, Ending Balance	0		0
Retained Earnings/(Accumulated Deficit) [Member]
Total Equity, Beginning Balance	(27,975)		(554,595)
Net income	285,065		426,738
Total Equity, Ending Balance	257,090		(127,857)
Accumulated Other Comprehensive Loss [Member]
Total Equity, Beginning Balance	(494,788)		(261,114)
Foreign currency transaction adjustments	31,322		(19,490)
Net loss on derivative instruments designated as cash flow hedges, net of tax	(3,739)		(6)
Pension and other postretirement benefits, net of tax	14,789		11,164
Total Equity, Ending Balance	(452,416)		(269,446)
Total Foster Wheeler AG Shareholders' Equity [Member]
Total Equity, Beginning Balance	392,562		571,041
Net income	285,065		426,738
Foreign currency transaction adjustments	31,322		(19,490)
Net loss on derivative instruments designated as cash flow hedges, net of tax	(3,739)		(6)
Pension and other postretirement benefits, net of tax	14,789		11,164
Comprehensive income	327,437	[2]	418,406	[1]
Issuance of registered/common shares upon exercise of share purchase warrants	2,482		399
Issuance of registered/common shares upon exercise of stock options	277		2,595
Repurchase and retirement of shares	(28)		(50,027)
Share-based compensation expense - stock options and restricted awards	14,183		8,436
Excess tax benefit related to share-based compensation	(9)		161
Total Equity, Ending Balance	736,904		951,011
Noncontrolling Interests [Member]
Total Equity, Beginning Balance	28,718		31,773
Net income attributable to noncontrolling interest	12,630		1,859
Foreign currency transaction adjustments	1,212		949
Pension and other postretirement benefits, net of tax	(6)
Comprehensive income attributable to noncontrolling interests	13,836	[2]	2,808	[1]
Distributions to noncontrolling interests	(2,171)		(9,625)
Total Equity, Ending Balance	$40,383		$24,956
[1]Comprehensive income for the fiscal quarter ended September 26, 2008 for Foster Wheeler AG, noncontrolling interests and total equity were $88,528, $230, and $88,758, respectively.
[2]Comprehensive income for the fiscal quarter ended Septemebr 30, 2009 for Foster Wheeler AG, noncontrolling interests and total equity were $105,615, $6,810, and $112,425, respectively.

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 26, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$297,695	$428,597
Adjustments to reconcile net income cash flows from operating activities:
Depreciation and amortization	32,909	33,366
Net asbestos-related provision	5,251	5,175
Share-based compensation expense - stock options and restricted awards	15,891	10,600
Excess tax benefit related to share-based compensation, operating activities	9	(161)
Deferred tax	12,409	5,499
Loss on sale of assets	565	831
Equity in the net earnings of partially-owned affiliates, net of dividends	312	(4,985)
Other non-cash items	5	1,875
Changes in assets and liabilities:
Decrease/(increase) in receivables	81,590	(96,337)
Net change in contracts in process and billings in excess of costs and estimated earnings on uncompleted contracts	(110,913)	40,047
Decrease in accounts payable and accrued expenses	(116,574)	(10,556)
Increase in income taxes payable	12,917	13,514
Net change in other assets and liabilities	(21,147)	(19,673)
Net cash provided by operating activities	210,919	407,792
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired	(8,883)	(14,856)
Change in restricted cash	705	(6,143)
Capital expenditures	(36,680)	(62,415)
Proceeds from sale of assets	903	718
Investments in and advances to unconsolidated affiliates	0	(4,429)
Return of investment from unconsolidated affiliates	0	2,330
Increase in short-term investments	(1,003)	0
Net cash used in investing activities	(44,958)	(84,795)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase and retirement of shares	(28)	(50,027)
Distributions to noncontrolling interests	(2,171)	(9,625)
Proceeds from share purchase warrant exercised	2,482	399
Proceeds from stock options exercised	277	2,595
Excess tax benefit related to share-based compensation, financing activities	(9)	161
Proceeds from issuance of short-term debt	5,852	3,658
Repayments of short-term debt	(6,583)	0
Proceeds from issuance of long-term debt	1,865	25,030
Repayment of long-term debt and capital lease obligations	(5,380)	(9,387)
Net cash used in financing activities	(3,695)	(37,196)
Effect of exchange rate changes on cash and cash equivalents	26,704	(25,421)
Increase in cash and cash equivalents	188,970	260,380
Cash and cash equivalents at beginning of year	773,163	1,048,544
Cash and cash equivalents at end of period	$962,133	$1,308,924

Summary of Significant Accounti

Summary of Significant Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies [Text Block]	1. Summary of Significant Accounting Policies Basis of Presentation At a special court-ordered meeting of common shareholders held on January27, 2009, the common shareholders of Foster Wheeler Ltd. approved a scheme of arrangement under Bermuda law. On February 9, 2009, after receipt of the approval of the scheme of arrangement by the Supreme Court of Bermuda and the satisfaction of certain other conditions, the transactions contemplated by the scheme of arrangement were effected. Pursuant to the scheme of arrangement, among other things, all previously outstanding whole common shares of Foster Wheeler Ltd. were cancelled and the common shareholders of Foster Wheeler Ltd. became common shareholders of Foster Wheeler AG, a Swiss corporation, and Foster Wheeler Ltd. became a wholly-owned subsidiary of Foster Wheeler AG, a holding company that owns the stock of its various subsidiary companies. The steps of the scheme of arrangement together with certain related transactions, which are collectively referred to throughout the Notes to the consolidated financial statements as the Redomestication, effectively changed our place of incorporation from Bermuda to the Canton of Zug, Switzerland. Please see Note 13 for further information related to the Redomestication. The fiscal year of Foster Wheeler AG ends on December 31 of each calendar year. Foster Wheeler AGs fiscal quarters end on the last day of March, June and September. The fiscal year of Foster Wheeler Ltd., the parent company prior to the Redomestication, was the 52- or 53-week annual accounting period ending the last Friday in December for our U.S. operations and December 31 for non-U.S. operations and ended on December 26, 2008 for fiscal year 2008. The fiscal third quarter and nine months ended of Foster Wheeler Ltd. for the fiscal year ended December 26, 2008, which for reporting purposes is also the fiscal third quarter and nine months ended of Foster Wheeler AG for such fiscal year, ended on September 26, 2008. Foster Wheeler AG consolidated financial results for the third fiscal quarter represent the period from July 1, 2009 through September 30, 2009 and June 28, 2008 through September 26, 2008, in fiscal years 2009 and 2008, respectively. Foster Wheeler AG consolidated financial results for the first fiscal nine months represent the period from December 27, 2008 through September 30, 2009 and December 29, 2007 through September 26, 2008, in fiscal years 2009 and 2008, respectively. The consolidated financial results include our U.S. operations, which have a fiscal year that is the 52- or 53-week annual accounting period ending the last Friday in December, and our non-U.S. operations, which have a fiscal year ending on December 31. Although the fiscal year for our parent company is now December 31, the fiscal year and fiscal quarter ending dates for both our U.S. and non-U.S. operations were not impacted by the Redomestication. We have evaluated all subsequent events for adjustment to or disclosure in these consolidated financial statements through the issuance of these consolidated financial statements on November 4, 2009. In July 2009, the Financial Accounting Standar

Business Comibinations

Business Comibinations
	9 Months Ended Sep. 30, 2009 USD / shares
Business Combination Disclosure [Abstract]
Business Combination Disclosure [Text Block]	2. Business Combinations In April 2009, we acquired substantially all of the assets of the offshore engineering division of OPE Holdings Ltd., a Canadian company that is listed on the TSX Venture Exchange and which we refer to as OPE, for a purchase price of approximately $8,900. The purchase price may be increased by $500 if the acquired company meets certain performance targets during the first year after the closing date. The acquired company is active in upstream oil and gas engineering services. The purchase price allocation and pro forma information for this acquisition were not material to our consolidated financial statements. This companys financial results are included within our Global EC Group business segment. In July 2008, we acquired the majority of the assets and work force of an engineering design company for $6,500, plus up to $1,500 to be paid if certain performance milestones are met over the following two years. This company, which has an engineering center in Kolkata, India, provides engineering services to the petrochemical, refining, upstream oil and gas, and power industries. The purchase price allocation and pro forma information for this acquisition were not material to our consolidated financial statements. This companys financial results are included within our Global EC Group business segment. In February 2008, we acquired all of the outstanding capital stock of a biopharmaceutical engineering company, based in Philadelphia, Pennsylvania, for $8,545 plus up to $3,638 to be paid over the following three years if certain conditions are met, plus up to an additional $8,700 to be paid if certain performance milestones are met over the following three years. This company provides design, engineering, manufacture, installation, validation and startup/commissioning services to the life sciences industry. The purchase price allocation and pro forma information for this acquisition were not material to our consolidated financial statements. This companys financial results are included within our Global EC Group business segment. Subsequent to the fiscal nine months ended September 30, 2009, we acquired substantially all of the assets of the Houston operations of Atlas Engineering, Inc., a privately held company, in October 2009 for a purchase price of approximately $21,000. The purchase price may be increased by an estimated $12,000 depending on the acquired companys EBITDA over the first three years after the closing date. The acquired company is active in upstream oil and gas engineering services. The purchase price allocation and pro forma information for this acquisition were not material to our consolidated financial statements. This companys financial results will be included within our Global EC Group business segment.

Equity Interest

Equity Interest
	9 Months Ended Sep. 30, 2009 USD / shares
Equity Interest [Abstract]
Equity Interest Disclosure [Text Block]	3. Equity Interests We own a noncontrolling equity interest in two electric power generation projects, one waste-to-energy project and one wind farm project in Italy and in a refinery/electric power generation project in Chile. We also own a 50% noncontrolling equity interest in an Italian project which generates earnings from royalty payments linked to the price of natural gas. The two electric power generation projects in Italy are each 42% owned by us, the waste-to-energy project is 39% owned by us and the wind farm project is 50% owned by us. The project in Chile is 85% owned by us; however, we do not have a controlling interest in the Chilean project as a result of participating rights held by the minority shareholder. We account for these investments in Italy and Chile under the equity method. The following is summarized financial information for these entities (each as a whole) in which we have an equity interest: September 30, 2009 December 26, 2008 Italian Projects Chilean Project Italian Projects Chilean Project Balance Sheet Data: Current assets $ 333,997 $ 32,048 $ 288,387 $ 66,991 Other assets (primarily buildings and equipment) 664,411 129,797 618,083 137,007 Current liabilities 99,915 15,933 63,227 26,319 Other liabilities (primarily long-term debt) 551,468 63,109 535,954 70,950 Net assets 347,025 82,803 307,289 106,729 Fiscal Quarters Ended September 30, 2009 September 26, 2008 Italian Projects Chilean Project Italian Projects Chilean Project Income Statement Data: Total revenues $ 84,074 $ 13,830 $ 122,068 $ 16,385 Gross earnings 28,574 7,813 24,079 10,590 Income before income taxes 23,640 6,752 17,280 9,017 Net earnings 11,918 5,605 (5,570) 7,485 Fiscal Nine Months Ended September 30, 2009 September 26, 2008 Italian Projects Chilean Project Italian Projects Chilean Project Income Statement Data: Total revenues $ 283,232 $ 47,176 $ 338,981 $ 68,459 Gross earnings 67,823 27,713 81,998 40,967 Income before income taxes 56,239 23,121 61,759 37,244 Net earnings 32,972 19,191 24,225 30,913 Our equity in the net earnings of these partially-owned affiliates, which is recorded within other income, net on the consolidated statement of operations, totaled $8,664 and $25,555 for the fiscal quarter and nine months ended September 30, 2009, respectively, and $2,202 and $27,082 for the fiscal quarter and nine months ended September 26, 2008, respectively. Our investment in these equity affiliates, which is recorded within investments in and advances to unconsolidated affiliates on the consolidated balance sheet, totaled $206,989 and $200,352 as of September 30, 2009 and December 26, 2008, respectively. Distributions of $25,486 and $24,452 were received durin

Long-term Debt

Long-term Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Long-term Debt Disclosure [Abstract]
Long-term Debt Disclosure [Text Block]	4. Long-term Debt The following table shows the components of our long-term debt: September 30, 2009 December 26, 2008 Current Long-term Total Current Long-term Total Capital Lease Obligations $ 1,236 $ 64,816 $ 66,052 $ 1,147 $ 64,641 $ 65,788 Special-Purpose Limited Recourse Project Debt: Camden County Energy Recovery Associates 9,914 21,865 31,779 9,914 21,865 31,779 FW Power S.r.l. 5,563 93,598 99,161 4,562 88,750 93,312 Energia Holdings, LLC 3,187 13,239 16,426 4,675 16,426 21,101 Subordinated Robbins Facility Exit Funding Obligations: 1999C Bonds at 7.25% interest, due October 15, 2009 19 - 19 19 - 19 1999C Bonds at 7.25% interest, due October 15, 2024 - 1,283 1,283 - 1,283 1,283 1999D Accretion Bonds at 7% interest, due October 15, 2009 323 - 323 307 - 307 Term Loan in China at 4.374% interest, due January 8, 2010 2,930 - 2,930 - - - Term Loan in China at 6.57% interest, due December 29, 2008 - - - 3,654 - 3,654 Other 54 - 54 97 24 121 Total $ 23,226 $ 194,801 $ 218,027 $ 24,375 $ 192,989 $ 217,364 Domestic Senior Credit Agreement In October 2006, we executed a five-year domestic senior credit agreement to be used for our U.S. and non-U.S. operations. The senior credit agreement, as amended in May 2007, provides for a facility of $450,000, and includes a provision which permits future incremental increases of up to $100,000 in total availability under the facility. We can issue up to $450,000 under the letter of credit facility. A portion of the letters of credit issued under the domestic senior credit agreement have performance pricing that is decreased (or increased) as a result of improvements (or reductions) in the credit rating of the domestic senior credit agreement as reported by Moodys Investors Service and/or Standard Poors (SP). We also have the option to use up to $100,000 of the $450,000 for revolving borrowings at a rate equal to adjusted LIBOR plus 1.50%, subject also to the performance pricing noted above. As a result of the improvement in our SP credit rating in March 2007, we achieved, and continue to maintain, the lowest possible pricing under the performance pricing provisions of our domestic senior credit agreement. On December 18, 2008, Foster Wheeler AG, Foster Wheeler Ltd., certain of Foster Wheeler Ltd.s subsidiaries and BNP Paribas, as Administrative Agent, entered into an additional amendment of our domestic senior credit agreement. The amendment includes a consent of the lenders under the credit agreement to the Redomestication. In addition, the amendment reflects the addition of Foster Wheeler AG as a guarantor of the obligations under the credit agreement and reflects changes relating to Foster Wheeler AG becoming the ultimat

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	9 Months Ended Sep. 30, 2009 USD / shares
Pension and Other Postretirement Benefits [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	5. Pensions and Other Postretirement Benefits We have defined benefit pension plans in the United States, the United Kingdom, France, Canada and Finland, and we have other postretirement benefit plans for health care and life insurance benefits in the United States and Canada. Defined Benefit Pension Plans Our defined benefit pension plans cover certain full-time employees. Under the plans, retirement benefits are primarily a function of both years of service and level of compensation. The components of benefit cost/(income) for our pension plans were as follows: Fiscal Quarter Ended September 30, 2009 Fiscal Quarter Ended September 26, 2008 United States United Kingdom Other Total United States United Kingdom Other Total Net periodic benefit cost/(income): Service cost $ - $ 1,442 $ 166 $ 1,608 $ - $ 2,614 $ 177 $ 2,791 Interest cost 4,949 10,859 467 16,275 4,991 12,197 475 17,663 Expected return on plan assets (4,280) (8,836) (313) (13,429) (6,035) (11,976) (388) (18,399) Amortization of transition (asset)/obligation - (14) 22 8 - (14) 25 11 Amortization of prior service cost - 2,049 5 2,054 - 1,233 5 1,238 Amortization of net actuarial loss 1,961 3,521 112 5,594 696 4,105 116 4,917 Net periodic benefit cost/(income) 2,630 9,021 459 12,110 (348) 8,159 410 8,221 Settlement charges* - - 100 100 - - - - Total net periodic benefit cost/(income) $ 2,630 $ 9,021 $ 559 $ 12,210 $ (348) $ 8,159 $ 410 $ 8,221 Changes recognized in other comprehensive income: Amortization of transition asset/(obligation) $ - $ 14 $ (22) $ (8) $ - $ 14 $ (25) $ (11) Amortization of prior service cost - (2,049) (5) (2,054) - (1,233) (5) (1,238) Amortization of net actuarial loss (1,961) (3,521) (112) (5,594) (696) (4,105) (116) (4,917) Total recognized in other comprehensive income $ (1,961) $ (5,556) $ (139) $ (7,656) $ (696) $ (5,324) $ (146) $ (6,166) Fiscal Nine Months Ended September 30, 2009 Fiscal Nine Months Ended September 26, 2008 United States United Kingdom Other Total United States United Kingdom Other Total Net periodic benefit cost/(income): Service cost $ - $ 4,050 $ 476 $ 4,526 $ - $ 8,031 $ 536 $ 8,567 Interest cost 14,847 30,599 1,336 46,782 14,971 37,500 1,468 53,939 Expected return on plan assets (12,839) (24,895) (879) (38,613) (18,106) (36,815) (1,252)

Guarantees and Warranties

Guarantees and Warranties
	9 Months Ended Sep. 30, 2009 USD / shares
Guarantees and Warranties [Abstract]
Guarantees and Warranties Disclosure [Text Block]	6. Guarantees and Warranties We have agreed to indemnify certain third parties relating to businesses and/or assets that we previously owned and sold to such third parties. Such indemnifications relate primarily to potential environmental and tax exposures for activities conducted by us prior to the sale of such businesses and/or assets. It is not possible to predict the maximum potential amount of future payments under these or similar indemnifications due to the conditional nature of the obligations and the unique facts and circumstances involved in each particular indemnification. Maximum Carrying Amount of Liability Potential Payment September 30, 2009 December 26, 2008 Environmental indemnifications No limit $ 8,900 $ 8,900 Tax indemnifications No limit $ - $ - We also maintain contingencies for warranty expenses on certain of our long-term contracts. Generally, warranty contingencies are accrued over the life of the contract so that a sufficient balance is maintained to cover our aggregate exposure at the conclusion of the project. Fiscal Nine Months Ended Warranty Liability: September 30, 2009 September 26, 2008 Balance at beginning of year $ 99,400 $ 87,800 Accruals 21,200 34,900 Settlements (2,000) (5,000) Adjustments to provisions (6,200) (15,200) Balance at end of period $ 112,400 $ 102,500 We are contingently liable under standby letters of credit, bank guarantees and surety bonds, totaling $958,400 and $914,500 as of September 30, 2009 and December 26, 2008, respectively, primarily for performance guarantees. These balances include the standby letters of credit issued under the domestic senior credit agreement discussed in Note4 and from other facilities worldwide. No material claims have been made against these guarantees, and based on our experience and current expectations, we do not anticipate any material claims. We have also guaranteed certain performance obligations in a Chilean refinery/electric power generation project in which we hold a noncontrolling equity interest. See Note 3 for further information.

Derivatives Financial Instrumen

Derivatives Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Derivatives Financial Instruments [Abstract]
Derivative Financial Instruments Disclosure [Text Block]	7. Derivative Financial Instruments We are exposed to certain risks relating to our ongoing business operations. The risks managed by using derivative financial instruments relate primarily to foreign currency exchange rate risk and, to a significantly lesser extent, interest rate risk. Derivative financial instruments are recognized as assets or liabilities at fair value in our consolidated balance sheet, as required under FASB ASC 815, Derivatives and Hedging. Fair Values of Derivative Financial Instruments Asset Derivatives Liability Derivatives Location within Consolidated Balance Sheet September 30, 2009 December 26, 2008 Location within Consolidated Balance Sheet September 30, 2009 December 26, 2008 Derivatives designated as hedging instruments Interest rate swap contracts Other assets $ - $ - Other long-term liabilities $ 8,132 $ 5,658 Derivatives not designated as hedging instruments Foreign currency forward contracts Contracts in process or billings in excess of costs and estimated earnings on uncompleted contracts 1,824 3,883 Contracts in process or billings in excess of costs and estimated earnings on uncompleted contracts 8,733 21,260 Foreign currency forward contracts Other accounts receivable 63 - Accounts payables 450 451 Total derivatives $ 1,887 $ 3,883 $ 17,315 $ 27,369 Foreign Currency Exchange Rate Risk We operate on a worldwide basis with substantial operations in Europe that subject us to U.S. dollar translation risk mainly relative to the Euro and British pound. Under our risk management policies we do not hedge translation risk exposure. All activities of our non-U.S. affiliates are recorded in their functional currency, which is typically the local currency in the country of domicile of the affiliate. In the ordinary course of business, our affiliates do enter into transactions in currencies other than their respective functional currencies. We seek to minimize the resulting foreign currency transaction risk by contracting for the procurement of goods and services in the same currency as the sales value of the related long-term contract. We seek to further mitigate any remaining foreign currency transaction exposuressuch as anticipated purchases or revenuesthrough the use of foreign currency forward exchange contracts. We utilize foreign currency forward exchange contracts solely to hedge specific foreign currency exposures, whether or not those contracts qualify for hedge accounting under FASB ASC 815. Nearly all of our foreign currency forward contracts are used to hedge foreign currency exposures on our contracts on which we recognize revenues, costs and profits on the percentage-of-completion method. None of the foreign currency forward contracts met the requirements for hedge accounting under FASB ASC 815 during the first fiscal nine months of 2009 and 2008. As of September 30, 2009, our primary foreign currency forward exchange contracts were as follows: Currency Hedged Foreign Notional Amount

Share-Based Compensation Plans

Share-Based Compensation Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Share-Based Compensation Plans [Abstract]
Share-based Compensation Plans [Text Block]	8. Share-Based Compensation Plans Our share-based compensation plans include both restricted awards and stock option awards. Compensation cost for our share-based plans of $5,036 and $15,891 was charged against income for the fiscal quarter and nine months ended September 30, 2009, respectively. The related income tax benefit recognized in the consolidated statement of operations was $114 and $335 for the fiscal quarter and nine months ended September 30, 2009, respectively. Compensation cost for our share-based plans of $3,956 and $10,600 was charged against income for the fiscal quarter and nine months ended September 26, 2008, respectively. The related income tax benefit recognized in the consolidated statement of operations was $82 and $240 for the fiscal quarter and nine months ended September 26, 2008, respectively. We received $277 and $2,595 in cash from stock option exercises under our share-based compensation plans for the fiscal nine months ended September 30, 2009 and September 26, 2008, respectively. As of September 30, 2009, we had $13,758 and $14,215 of total unrecognized compensation cost related to stock options and restricted awards, respectively. Those costs are expected to be recognized as expense over a weighted-average period of approximately 23 months. Our share-based compensation plans include a change in control provision, which provides for cash redemption of equity awards issued thereunder in certain limited circumstances. In accordance with Securities and Exchange Commission Accounting Series Release No. 268, Presentation in Financial Statements of Redeemable Preferred Stocks, we present the redemption amount of these equity awards as temporary equity on the consolidated balance sheet as the equity award is amortized during the vesting period. The redemption amount represents the intrinsic value, if any, of the equity award on the grant date. In accordance with FASB ASC 480-10-S99-3A, (formerly EITF Topic D-98, Classification and Measurement of Redeemable Securities), we do not adjust the redemption amount each reporting period unless and until it becomes probable that the equity awards will become redeemable (upon a change in control event). Upon vesting of the equity awards, we reclassify the intrinsic value of the equity awards, as determined on the grant date, to permanent equity. A reconciliation of temporary equity for the nine months ended September 30, 2009 is as follows: Temporary equity as of December 26, 2008 $ 7,586 Compensation cost during the period for those equity awards with intrinsic value on the grant date 8,151 Intrinsic value of equity awards vested during the period for those equity awards with intrinsic value on the grant date (6,443) Temporary equity as of September 30, 2009 $ 9,294 Our articles of association provide for conditional capital of 63,207,957 registered shares for the issuance of registered shares under our share-based compensation plans, outstanding share purchase warrants and other convertible securities we may issue in the future. Conditional capital decreases upon issuance of registered shares upon exercise of outstandi

Share Purchase Warrants

Share Purchase Warrants
	9 Months Ended Sep. 30, 2009 USD / shares
Share Purchase Warrants [Abstract]
Share Purchase Warrants [Text Block]	9. Share Purchase Warrants In connection with the equity-for-debt exchange consummated in 2004, Foster Wheeler Ltd. issued 4,152,914 Class A common share purchase warrants and 40,771,560 Class B common share purchase warrants. In connection with the Redomestication, Foster Wheeler AG assumed Foster Wheeler Ltd.s obligations under the related warrant agreement and agreed to issue registered shares of Foster Wheeler AG upon exercise of outstanding warrants in accordance with their stated terms. See Note 13 for further information related to the Redomestication. Each Class A warrant entitled its owner to purchase 3.3682 registered shares at an exercise price of $4.689 per registered share thereunder, subject to the terms of the warrant agreement between the warrant agent and us. In connection with the Redomestication and in accordance with the terms of the warrant agreement, we extended the expiration date of our Class A warrants from September 24, 2009 to October 2, 2009 (the extended maturity date) as a result of the periods from January 27, 2009 until January 30, 2009 and February 3, 2009 until February 6, 2009 when the warrants were not exercisable. Each Class B warrant entitled its owner to purchase 0.1446 common shares of Foster Wheeler Ltd. at an exercise price of $4.689 per common share thereunder, subject to the terms and conditions of the warrant agreement between the warrant agent and Foster Wheeler Ltd. The Class B warrants were exercisable on or before September 24, 2007. Cumulatively through September 30, 2009, 4,129,114 Class A warrants and 38,730,407 Class B warrants have been exercised for a combined total of 20,257,670 common and registered shares. The number of registered shares issuable upon the exercise of the remaining outstanding Class A warrants was approximately 80,163 shares as of September 30, 2009. Registered shares are issued from conditional capital upon the exercise of the share purchase warrants. See Note 8 for further information. Subsequent to the fiscal nine months ended September 30, 2009, 19,869 Class A warrants were exercised for 66,925 registered shares and the remaining unexercised Class A warrants expired at their scheduled extended maturity date. The holders of the Class A warrants were not entitled to vote, to receive dividends or to exercise any of the rights of registered shareholders for any purpose until such warrants have been duly exercised. We maintained at all times during which the warrants were exercisable, a shelf registration statement relating to the issuance of registered shares underlying the warrants for the benefit of the warrant holders, subject to the terms of the registration rights agreement. An initial registration statement became effective on December 28, 2005 and a replacement registration statement was filed and became effective on December 5, 2008. Also in connection with the equity-for-debt exchange consummated in 2004, we entered into a registration rights agreement with certain selling security holders in which we agreed to file a registration statement to cover resales of our securities held by them immediately following the exchange offer. We filed a registration

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Tax Disclosure [Text Block]	10. Income Taxes The tax provision for each year-to-date period is calculated by multiplying pretax income by the estimated annual effective tax rate for such period. Our effective tax rate can fluctuate significantly from period to period and may differ significantly from the U.S. federal statutory rate as a result of income taxed in various non-U.S. jurisdictions with rates different from the U.S. statutory rate, as a result of our inability to recognize a tax benefit for losses generated by certain unprofitable operations and as a result of the varying mix of income earned in the jurisdictions in which we operate. In addition, the provisions of FASB ASC 740-10-30, Income Taxes, requires us to reduce our deferred tax benefits by a valuation allowance when, based upon available evidence, it is more likely than not that the tax benefit of losses (or other deferred tax assets) will not be realized in the future. In periods when operating units subject to a valuation allowance generate pretax earnings, the corresponding reduction in the valuation allowance favorably impacts our effective tax rate. Conversely, in periods when operating units subject to a valuation allowance generate pretax losses, the corresponding increase in the valuation allowance has an unfavorable impact on our effective tax rate. First Fiscal Nine Months of 2009 Our effective tax rate for the first fiscal nine months of 2009 was lower than the U.S. statutory rate of 35% due principally to the net impact of the following: Income earned in tax jurisdictions with tax rates lower than the U.S. statutory rate, which is expected to contribute to an approximate 18-percentage point reduction in the effective tax rate for the full year 2009; and A valuation allowance increase because we are unable to recognize a tax benefit for losses subject to valuation allowance in certain jurisdictions (primarily the United States), which is expected to contribute to an approximate three-percentage point increase in the effective tax rate for the full year 2009, and other permanent differences. First Fiscal Nine Months of 2008 Our effective tax rate for the first fiscal nine months of 2008 was lower than the U.S. statutory rate of 35% due principally to the impact of the following: Income earned in tax jurisdictions with tax rates lower than the U.S. statutory rate, which contributed to an approximate 12-percentage point reduction in the effective tax rate; and A valuation allowance decrease because we recognized earnings in jurisdictions where we had a full valuation allowance, which contributed to an approximate six-percentage point reduction in the effective tax rate. These variances were partially offset by losses in certain other jurisdictions for which no benefit is recognized (a valuation allowance is established) and other permanent differences. We evaluate, on a quarterly basis, the need for the valuation allowances against deferred tax assets in those jurisdictions in which we currently maintain a valuation allowance. Such evaluation includes a review of all available evidence, both positive and negative, in determining whether a valuation allowance is n

Business Segments

Business Segments
	9 Months Ended Sep. 30, 2009 USD / shares
Business Segments [Abstract]
Business Segments Disclosure [Text Block]	11. Business Segments We operate through two business groups: our Global EC Group and our Global Power Group. Global Engineering and Construction Group Our Global EC Group, which operates worldwide, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure, including power generation and distribution facilities, and gasification facilities. Our Global EC Group is also involved in the design of facilities in new or developing market sectors, including carbon capture and storage, solid fuel-fired integrated gasification combined-cycle power plants, coal-to-liquids, coal-to-chemicals and biofuels. Our Global EC Group generates revenues from engineering, procurement and construction and project management activities pursuant to contracts spanning up to approximately four years in duration and from returns on its equity investments in various power production facilities. Our Global EC Group provides the following services: Design, engineering, project management, construction and construction management services, including the procurement of equipment, materials and services from third-party suppliers and contractors. Environmental remediation services, together with related technical, engineering, design and regulatory services. Development, engineering, procurement, construction, ownership and operation of power generation facilities, from conventional and renewable sources, and waste-to-energy facilities in Europe. Global Power Group Our Global Power Group designs, manufactures and erects steam generating and auxiliary equipment for electric power generating stations and industrial facilities worldwide and owns and/or operates several cogeneration, independent power production and waste-to-energy facilities, as well as power generation facilities for the process and petrochemical industries. Our Global Power Group generates revenues from engineering activities, equipment supply, construction contracts, operating and maintenance agreements, royalties from licensing its technology, and from returns on its investments in several power production facilities. Our Global Power Groups steam generating equipment includes a full range of technologies, offering independent power producers, utilities and industrial clients high-value technology solutions for converting a wide range of fuels, such as coal, lignite, petroleum coke, oil, gas, solar, biomass and municipal solid waste, into steam, which can be used for power generation, district heating or for industrial processes. Our Global Power Group offers several other products and services related to steam generators: Designs, manufactures and installs auxiliary and replacement equipment for utility power and industrial facilities, including surface condensers, feed water heaters, coal pulverizers, steam generator coils and panels, biomass gasifiers, and replacement parts for steam generators. Nitrogen-oxide (NOx) reduction systems

Litigation and Uncertainties

Litigation and Uncertainties
	9 Months Ended Sep. 30, 2009 USD / shares
Litigation and Uncertainties [Abstract]
Litigation and Uncertainties Disclosure [Text Block]	12. Litigation and Uncertainties Asbestos Some of our U.S. and U.K. subsidiaries are defendants in numerous asbestos-related lawsuits and out-of-court informal claims pending in the United States and the United Kingdom. Plaintiffs claim damages for personal injury alleged to have arisen from exposure to or use of asbestos in connection with work allegedly performed by our subsidiaries during the 1970s and earlier. United States A summary of our U.S. claim activity is as follows: Number of Claims Fiscal Quarters Ended Fiscal Nine Months Ended September 30, 2009 September 26, 2008 September 30, 2009 September 26, 2008 Open claims at beginning of period 130,500 130,740 130,760 131,340 New claims 890 860 3,230 3,710 Claims resolved (2,090) (1,230) (4,690) (4,680) Open claims at end of period 129,300 130,370 129,300 130,370 We had the following U.S. asbestos-related assets and liabilities recorded on our consolidated balance sheet as of the dates set forth below. Total U.S. asbestos-related liabilities are estimated through the fiscal third quarter of 2024. Although it is likely that claims will continue to be filed after that date, the uncertainties inherent in any long-term forecast prevent us from making reliable estimates of the indemnity and defense costs that might be incurred after that date. September 30, 2009 December 26, 2008 Asbestos-related assets recorded within: Accounts and notes receivable-other $ 35,000 $ 38,200 Asbestos-related insurance recovery receivable 219,700 246,600 Total asbestos-related assets $ 254,700 $ 284,800 Asbestos-related liabilities recorded within: Accrued expenses $ 58,100 $ 64,500 Asbestos-related liability 285,600 320,800 Total asbestos-related liabilities $ 343,700 $ 385,300 Since fiscal year-end 2004, we have worked with Analysis, Research Planning Corporation (ARPC), nationally recognized consultants in projecting asbestos liabilities, to estimate the amount of asbestos-related indemnity and defense costs at year-end for the next 15 years. Based on its review of fiscal year 2008 activity, ARPC recommended that the assumptions used to estimate our future asbestos liability be updated as of fiscal year-end 2008. Accordingly, we developed a revised estimate of our aggregate indemnity and defense costs through fiscal year-end 2023 considering the advice of ARPC. In the fiscal fourth quarter of 2008, we increased our liability for asbestos indemnity and defense costs through fiscal year-end 2023 to $385,300, which brought our liability to a level consistent with ARPCs reasonable best estimate. Our estimated asbestos liability decreased during the fiscal nine months ended September 30, 2009 as a result of payments amounting to approximately $48,200, partially offset by an increase of $6,600 related to the rolling 15-year asbestos-related liability estimate. The amount paid for asbestos litigation, defense and case resolution was $14,200 and $48,

Redomestication

Redomestication
	9 Months Ended Sep. 30, 2009 USD / shares
Redomestication Disclosure [Abstract]
Redomestication Disclosure [Text Block]	13. Redomestication Foster Wheeler AG was incorporated under the laws of Switzerland onNovember 18, 2008 and registered in the commercial register of the Canton of Zug, Switzerland on November 25, 2008 as a wholly-owned subsidiary of Foster Wheeler Ltd. At a special court-ordered meeting of common shareholders held on January27, 2009, the common shareholders of Foster Wheeler Ltd. approved a scheme of arrangement under Bermuda law. On February 9, 2009, after receipt of the approval of the scheme of arrangement by the Supreme Court of Bermuda and the satisfaction of certain other conditions, the transactions contemplated by the scheme of arrangement were effected. Pursuant to the scheme of arrangement, among other things, each holder of whole common shares of Foster Wheeler Ltd., par value $0.01 per share, outstanding immediately before the transaction was effected received registered shares of Foster Wheeler AG, par value CHF 3.00 per share (approximately $2.58 based on the exchange rate as of February 9, 2009, the date when the Redomestication had been completed), on a one-for-one basis in respect of such outstanding Foster Wheeler Ltd. common shares (or, in the case of fractional shares of Foster Wheeler Ltd., cash for such fractional shares in lieu of registered shares of Foster Wheeler AG) and additional paid-in capital decreased by the same amount. The scheme of arrangement effectively changed our place of incorporation from Bermuda to the Canton of Zug, Switzerland. The scheme of arrangement was approved by the common shareholders of Foster Wheeler Ltd. on January 27, 2009 and was sanctioned by the Supreme Court of Bermuda on January 30, 2009. On February 9, 2009, the following steps occurred pursuant to the scheme of arrangement: (1) all fractional common shares of Foster Wheeler Ltd., totaling approximately 1,336 shares, were cancelled and Foster Wheeler Ltd. paid to each holder of fractional shares that were cancelled an amount based on the average of the high and low trading prices of Foster Wheeler Ltd. common shares on the NASDAQ Global Select Market on February 5, 2009 ($20.63), the business day immediately preceding the effectiveness of the scheme of arrangement; (2) all previously outstanding whole common shares of Foster Wheeler Ltd., totaling 126,276,112 whole shares, were cancelled; (3) Foster Wheeler Ltd., acting on behalf of its shareholders, issued 1,000 common shares (which constituted all of Foster Wheeler Ltd.s common shares at such time) to Foster Wheeler AG; (4) Foster Wheeler AG increased its share capital and filed amended articles of association reflecting the share capital increase with the Swiss Commercial Register; and (5) Foster Wheeler AG issued an aggregate of 126,276,112 registered shares to the holders of whole Foster Wheeler Ltd. common shares that were cancelled. As a result of the scheme of arrangement, the common shareholders of Foster Wheeler Ltd. became common shareholders of Foster Wheeler AG and Foster Wheeler Ltd. became a wholly-owned subsidiary of Foster Wheeler AG, a holding company that owns the stock of its various subsidiary companies. In connection with consummat

Document Information

Document Information
	3 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Title	Form 10-Q
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	3 Months Ended Sep. 30, 2009	Oct. 23, 2009	Jun. 27, 2008
Entity Information [Line Items]
Entity Registrant Name	Foster Wheeler AG
Entity Central Index Key	0001130385
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$9,450,000,000
Entity Common Stock, Shares Outstanding		127,025,033