Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 14, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Entity Registrant Name | KBR, INC. | |
Entity Central Index Key | 1,357,615 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 144,262,730 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,199 | $ 1,657 | $ 4,016 | $ 4,949 |
Cost of revenues | (1,112) | (1,627) | (3,785) | (4,852) |
Gross profit | 87 | 30 | 231 | 97 |
Equity in earnings of unconsolidated affiliates | 35 | 38 | 123 | 118 |
General and administrative expenses | (38) | (58) | (119) | (178) |
Asset impairment and restructuring charges | (15) | 0 | (34) | 0 |
Gain on disposition of assets | 6 | 0 | 34 | 8 |
Operating income | 75 | 10 | 235 | 45 |
Other non-operating income | 3 | 34 | 4 | 18 |
Income before income taxes and noncontrolling interests | 78 | 44 | 239 | 63 |
Benefit (provision) for income taxes | (19) | 1 | (61) | (30) |
Net income | 59 | 45 | 178 | 33 |
Net income attributable to noncontrolling interests | (4) | (15) | (17) | (54) |
Net income (loss) attributable to KBR | $ 55 | $ 30 | $ 161 | $ (21) |
Earnings Per Share [Abstract] | ||||
Basic | $ 0.38 | $ 0.21 | $ 1.11 | $ (0.14) |
Diluted | $ 0.38 | $ 0.21 | $ 1.11 | $ (0.14) |
Basic weighted average common shares outstanding | 144 | 145 | 144 | 145 |
Diluted weighted average common shares outstanding | 144 | 145 | 144 | 145 |
Cash dividends declared per share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 59 | $ 45 | $ 178 | $ 33 |
Net cumulative translation adjustments (CTA)[Abstract] | ||||
Foreign currency translation adjustments, net of tax | (13) | (49) | (74) | (27) |
Reclassification adjustment included in net income | 0 | 0 | 0 | 1 |
Foreign currency translation adjustments, net of taxes of $6, $(6), $5 and $(1) | (13) | (49) | (74) | (26) |
Actuarial losses, net of tax | 0 | 0 | 0 | 0 |
Reclassification adjustment included in net income | 10 | 8 | 32 | 25 |
Pension and post-retirement benefits, net of taxes of $2, $3, $5 and $7 | 10 | 8 | 32 | 25 |
Unrealized gains (losses) on derivatives: | ||||
Changes in fair value of derivatives, net of tax | 0 | 0 | 0 | (1) |
Reclassification adjustment included in net income | 1 | (1) | 1 | (1) |
Changes in fair value of derivatives, net of taxes of $0, $0, $0 and $0 | 1 | (1) | 1 | (2) |
Other comprehensive income (loss), net of tax | (2) | (42) | (41) | (3) |
Comprehensive income (loss) | 57 | 3 | 137 | 30 |
Less: Comprehensive income attributable to noncontrolling interests | (6) | (16) | (20) | (55) |
Comprehensive loss attributable to KBR | $ 51 | $ (13) | $ 117 | $ (25) |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), taxes [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 6 | $ (6) | $ 5 | $ (1) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | 2 | 3 | 5 | 7 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and equivalents | $ 768 | $ 970 |
Receivables: | ||
Accounts receivable, net of allowance for doubtful accounts of $20 and $19 | 699 | 847 |
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 284 | 490 |
Deferred income taxes | 68 | 90 |
Other current assets | 143 | 147 |
Total current assets | 1,962 | 2,544 |
Property, plant, and equipment, net of accumulated depreciation of $340 and $385 (including net PPE of $51 and $57 owned by a variable interest entity) | 198 | 247 |
Goodwill | 324 | 324 |
Intangible assets, net of accumulated amortization of $90 and $96 | 38 | 41 |
Equity in and advances to unconsolidated affiliates | 261 | 151 |
Deferred income taxes | 176 | 174 |
Claims and accounts receivable | 549 | 570 |
Other assets | 143 | 148 |
Total assets | 3,651 | 4,199 |
Current liabilities: | ||
Accounts payable | 485 | 742 |
Payable to former parent | 19 | 56 |
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 500 | 531 |
Accrued salaries, wages and benefits | 176 | 197 |
Nonrecourse project debt | 10 | 10 |
Total other current liabilities | 326 | 488 |
Total current liabilities | 1,516 | 2,024 |
Pension obligations | 444 | 502 |
Employee compensation and benefits | 110 | 112 |
Income tax payable | 72 | 69 |
Deferred income taxes | 175 | 170 |
Nonrecourse project debt | 56 | 63 |
Deferred income from unconsolidated affiliates | 103 | 95 |
Other liabilities | 201 | 229 |
Total liabilities | 2,677 | 3,264 |
KBR Shareholders' equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 300,000,000 shares authorized, 175,044,525 and 174,448,399 shares issued, and 144,260,718 and 144,837,281 shares outstanding | 0 | 0 |
Paid-in capital in excess of par (PIC) | 2,066 | 2,091 |
Accumulated other comprehensive loss (AOCL) | (920) | (876) |
Retained earnings | 565 | 439 |
Treasury stock, 30,783,807 shares and 29,611,118 shares, at cost | (729) | (712) |
Total KBR shareholders’ equity | 982 | 942 |
Noncontrolling interests (NCI) | (8) | (7) |
Total shareholders’ equity | 974 | 935 |
Total liabilities and shareholders’ equity | $ 3,651 | $ 4,199 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables: | ||
Allowance for doubtful debts | $ 20 | $ 19 |
Property, plant, and equipment: | ||
Accumulated depreciation | 340 | 385 |
PP&E owned by a VIE, net | 51 | 57 |
Intangibles: | ||
Accumulated amortization | $ 90 | $ 96 |
KBR Shareholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 175,044,525 | 174,448,399 |
Common stock, shares outstanding | 144,260,718 | 144,837,281 |
Treasury stock, shares | 30,783,807 | 29,611,118 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from (used in) operating activities: | ||
Net income | $ 178 | $ 33 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 29 | 55 |
Equity in earnings of unconsolidated affiliates | (123) | (118) |
Deferred income tax (benefit) expense | 14 | (2) |
Gain on disposition of assets | (34) | (8) |
Gain on negotiated settlement with former parent | 0 | (24) |
Other | 29 | 33 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for doubtful accounts | (19) | 66 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 168 | (109) |
Accounts payable | (239) | (43) |
Billings in excess of costs and estimated earnings on uncompleted contracts | (10) | 53 |
Accrued salaries, wages and benefits | (5) | (16) |
Reserve for loss on uncompleted contracts | (100) | 13 |
Receipts of advances from unconsolidated affiliates, net | 10 | 14 |
Distributions of earnings from unconsolidated affiliates | 84 | 212 |
Income taxes payable | (7) | 22 |
Pension funding | (37) | (37) |
Net settlement of derivative contracts | (40) | 2 |
Other assets and liabilities | 17 | 32 |
Total cash flows provided by (used in) operating activities | (85) | 178 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | (8) | (46) |
Payments to Acquire Equity Method Investments | (15) | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 71 | 9 |
Total cash flows provided by (used in) investing activities | 48 | (37) |
Cash flows used in financing activities: | ||
Payments to reacquire common stock | (22) | (102) |
Acquisition of noncontrolling interest | (40) | 0 |
Investments from noncontrolling interests | 0 | 10 |
Distributions to noncontrolling interests | (21) | (49) |
Payments of dividends to shareholders | (35) | (35) |
Net proceeds from issuance of common stock | 1 | 4 |
Payments on short-term and long-term borrowings | (7) | (7) |
Other | (4) | 1 |
Total cash flows used in financing activities | (128) | (178) |
Effect of exchange rate changes on cash | (37) | (21) |
Decrease in cash and equivalents | (202) | (58) |
Cash and equivalents at beginning of period | 970 | 1,106 |
Cash and equivalents at end of period | 768 | 1,048 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 8 | 9 |
Cash paid for income taxes (net of refunds) | 56 | 13 |
Noncash financing activities | ||
Dividend payable | $ 12 | $ 12 |
Description Of Company And Sign
Description Of Company And Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Company and Significant Accounting Policies | Description of Company and Significant Accounting Policies KBR, Inc., a Delaware corporation, was formed on March 21, 2006 and is headquartered in Houston, Texas. KBR, Inc. and its wholly owned and majority-owned subsidiaries (collectively referred to herein as "KBR", "the Company", "we", "us" or "our") is an engineering, procurement, construction and services company supporting the global hydrocarbons and international government services market segments. Our capabilities include engineering, procurement, construction, construction management, technology licensing, operations, maintenance and other support services to a diverse customer base, including international and national oil and gas companies, independent refiners, petrochemical producers, fertilizer producers, manufacturers and domestic and foreign governments. Principles of Consolidation Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities ("VIEs") of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 7 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method and cost method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of VIEs • valuation of share-based compensation In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements. Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with the guidance in Accounting Standards Codification ("ASC") 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of all the following: (1) the fair value of any consideration received (2) the fair value of any retained noncontrolling investment in the former subsidiary or group of assets at the date the subsidiary is deconsolidated or the group of assets is derecognized and (3) the carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. Service Concession Arrangements On January 24, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-05, Service Concession Arrangements. A service concession arrangement is an arrangement between a public-sector entity and an operating entity under which the operating entity operates the grantor's infrastructure. This ASU specifies that an operating entity should not account for a service concession arrangement within the scope of this ASU as a lease in accordance with ASC 840 - Leases. An operating entity should refer to other ASUs as applicable to account for various aspects of a service concession arrangement. The amendments also specify that the infrastructure used in a service concession agreement should not be recognized as property, plant and equipment of the operating entity. The amendments in this ASU are effective using a modified retrospective approach for annual reporting periods beginning after December 15, 2014 and interim periods within those annual periods. The adoption of ASU 2014-05 on January 1, 2015 did not have a material impact on our financial statements. Additional Balance Sheet Information Other Current Liabilities The components of “other current liabilities” on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 are presented below: September 30, December 31, Dollars in millions 2015 2014 Reserve for estimated losses on uncompleted contracts (a) $ 54 $ 159 Retainage payable 61 88 Income taxes payable 55 61 Deferred tax liabilities 50 46 Value-added tax payable 27 31 Insurance payable 15 19 Dividend payable 12 12 Other miscellaneous liabilities (b) 52 72 Total other current liabilities $ 326 $ 488 (a) See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts. (b) Included in other current miscellaneous liabilities is $7 million of deferred rent as of September 30, 2015 and December 31, 2014 , respectively. Other Liabilities Included in the "other liabilities" balance on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 is noncurrent deferred rent of $118 million and $128 million , respectively. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Following the completion of our strategic review, in December 2014, we reorganized our business into three segments in order to focus on core strengths in technology and consulting, engineering and construction, and government services. We also reorganized the businesses that we intend to exit into our Non-strategic Business segment because they no longer constitute a part of our future strategic focus. Each business segment reflects a reportable segment led by a separate business segment president who reports directly to our chief operating decision maker ("CODM"). Business segment performance is evaluated by our CODM using gross profit (loss), which is defined as business segment revenues less the cost of revenues, and includes overhead directly attributable to the business segment. We have revised our business segment reporting to reflect our current management approach and recast prior periods to conform to the current business segment presentation. Our business segments are described below. Technology & Consulting ("T&C"). Our T&C business segment combines proprietary KBR technologies, knowledge-based services and our three specialist consulting brands, Granherne, Energo and GVA, under a single customer-facing global business. This business segment provides licensed technologies and consulting services throughout the oil and gas value chain, from wellhead to crude refining and through to specialty chemicals production. In addition to sharing many of the same customers, these brands share the approach of early and continuous customer involvement to deliver an optimal solution to meet the customer’s objectives through early planning and scope definition, advanced technologies, and project lifecycle support. Engineering & Construction ("E&C"). Our E&C business segment leverages our operational and technical excellence as a global provider of engineering, procurement, construction ("EPC"), commissioning and maintenance services for oil and gas, refining, petrochemical and chemical customers. E&C is managed on a geographic basis in order to facilitate close proximity to our customers and our people, while utilizing a consistent global execution strategy. Government Services ("GS"). Our GS business segment focuses on long-term service contracts with annuity streams, particularly for the United Kingdom ("U.K."), Australian and United States ("U.S.") governments. Non-strategic Business. Our Non-strategic Business segment represents the operations or activities that we intend to either sell to third parties or exit upon completion of existing contracts. Other. Our Other business segment includes our corporate expenses and general and administrative expenses not allocated to the business segments above and any future activities that do not individually meet the criteria for segment presentation. The following table presents revenues, gross profit, equity in earnings of unconsolidated affiliates and operating income (loss) by reporting segment. Operations by Reportable Segment Three Months Ended Nine Months Ended September 30, September 30, Dollars in millions 2015 2014 2015 2014 Revenues: Technology & Consulting $ 79 $ 94 $ 231 $ 285 Engineering & Construction 828 1,196 2,758 3,546 Government Services 176 178 489 527 Other — — — — Subtotal 1,083 1,468 3,478 4,358 Non-strategic Business 116 189 538 591 Total revenues $ 1,199 $ 1,657 $ 4,016 $ 4,949 Gross profit (loss): Technology & Consulting $ 17 $ 18 $ 57 $ 48 Engineering & Construction 48 46 155 108 Government Services 8 24 3 28 Other — — — — Subtotal 73 88 215 184 Non-strategic Business 14 (58 ) 16 (87 ) Total gross profit (loss) $ 87 $ 30 $ 231 $ 97 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — $ — Engineering & Construction 26 26 87 63 Government Services 9 12 36 55 Other — — — — Subtotal 35 38 123 118 Non-strategic Business — — — — Total equity in earnings of unconsolidated affiliates $ 35 $ 38 $ 123 $ 118 Asset impairment and restructuring charges: Technology & Consulting $ — $ — $ (1 ) $ — Engineering & Construction (13 ) — (25 ) — Government Services — — — — Other (1 ) — (5 ) — Subtotal (14 ) — (31 ) — Non-strategic Business (1 ) — (3 ) — Total asset impairment and restructuring charges $ (15 ) $ — $ (34 ) $ — Segment operating income (loss): Technology & Consulting $ 16 $ 18 $ 53 $ 48 Engineering & Construction 61 58 201 129 Government Services 15 34 34 77 Other (28 ) (42 ) (92 ) (122 ) Subtotal 64 68 196 132 Non-strategic Business 11 (58 ) 39 (87 ) Total segment operating income (loss) $ 75 $ 10 $ 235 $ 45 Prior Period Adjustment During the second quarter of 2015, we corrected a cumulative error related to transactions between the unconsolidated affiliates associated with our Mexican offshore maintenance joint venture within our E&C business segment. The cumulative error occurred throughout the period beginning in 2007 and through the first quarter of 2015 and resulted in a $15 million favorable impact to "equity in earnings of unconsolidated affiliates" on our condensed consolidated statements of operations during the second quarter of 2015. We evaluated the cumulative error on both a quantitative and qualitative basis under the guidance of ASC 250 - Accounting Changes and Error Corrections. We determined that the cumulative impact of the error did not affect the trend of net income, cash flows or liquidity and therefore did not have a material impact to previously issued financial statements. Additionally, we do not expect our consolidated financial statements for the current annual period to be materially impacted by the error correction. Changes in Estimates There are many factors that can affect the accuracy of our cost estimates and ultimately our future profitability, including, but not limited to, the availability and costs of resources, including labor, materials and equipment, productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. In the past, we have realized both lower and higher than expected margins and have incurred losses as a result of unforeseen changes in our project costs. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. However, historically, our estimates have been reasonably dependable regarding the recognition of revenues and profit on percentage of completion contracts. Significant changes in estimates periodically result in the recognition of losses on a particular contract. We generally believe that the recognition of a contract as a loss contract is a significant change in estimate. Activity in our reserve for estimated losses on uncompleted contracts, which is a component of "other current liabilities" on our condensed consolidated balance sheets, was as follows: Dollars in millions Reserve for Estimated Losses Balance at December 31, 2014 $ 159 Changes in estimates on loss projects (7 ) Change due to progress on loss projects (98 ) Balance at September 30, 2015 $ 54 Dollars in millions Reserve for Estimated Losses Balance at December 31, 2013 $ 109 Changes in estimates on loss projects 76 Change due to progress on loss projects (67 ) Balance at September 30, 2014 $ 118 Included in the reserve for estimated losses on uncompleted contracts is $41 million as of September 30, 2015 and $80 million as of December 31, 2014 primarily related to two power project in our Non-strategic Business segment, which we recognized as loss contracts during the fourth quarter of 2014 . During the three and nine months ended September 30, 2015 , there were no significant changes in our estimates of losses on these projects. Our estimates of revenues and costs at completion for these power projects have been, and may continue to be, impacted by our performance, the performance of our subcontractors, and the U.S. labor market. Our estimated losses at completion as of September 30, 2015 on these power projects represent our best estimate based on current information. Actual results could differ from the estimates we have used to account for these power projects as of September 30, 2015 . Included in the reserve for estimated losses on uncompleted contracts is $2 million as of September 30, 2015 and $53 million as of December 31, 2014 related to our Canadian pipe fabrication and module assembly projects. During the three and nine months ended September 30, 2015 we recognized favorable changes in estimates of losses on these projects of $4 million and $21 million , respectively, primarily due to negotiated settlements in the second quarter of 2015. During the three months ended September 30, 2014 we recognized favorable changes in estimates of losses of $2 million and unfavorable changes in our estimates of losses at completion of $80 million during the nine months ended September 30, 2014 . We have completed or substantially completed these projects. We continue to finalize and negotiate financial closure of these projects with our customers. Our estimated losses as of September 30, 2015 on these projects represent our best estimate based on current information. Actual results could differ from the estimates we have used to account for these projects as of September 30, 2015 . Dispositions On June 30, 2015, we closed on the sale of our Building Group subsidiary to a subsidiary of Pernix Group, Inc., for consideration of $23 million , net cash proceeds including working capital adjustments and the assumption of some liabilities. The sale of the Building Group within our Non-strategic Business segment is consistent with our restructuring plans announced in December 2014. The disposition resulted in a pre-tax gain of $27 million and is subject to future adjustments resulting from the finalization of the closing balance sheet. The gain is included under “gain on disposition of assets” on our condensed consolidated statements of operations On September 30, 2015, we executed agreements to establish two strategic relationships within our E&C business segment. See Note 7 to our condensed consolidated financial statements for information about dispositions related to the establishment of these new strategic relationships. Restructuring Included in "other current liabilities" on our condensed consolidated balance sheets at September 30, 2015 and December 31, 2014 are $9 million and $21 million , respectively, representing unpaid termination benefits related to our workforce reduction which was announced as a part of our strategic reorganization in the last quarter of 2014. We recognized an additional $11 million of termination benefits within our E&C and Non-strategic Business segments in the second quarter. During 2015, we made payments of $23 million . Subsequent Event Subsequent to September 30, 2015 , we reached a definitive agreement for the sale of our U.S. Infrastructure business within the Non-strategic Business segment. |
Cash and Equivalents (Notes)
Cash and Equivalents (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and equivalents include cash balances held by our wholly-owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture cash balances are limited to joint venture activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors of the respective joint ventures. We expect to use joint venture cash for project costs and distributions of earnings related to joint venture operations. However, some of the earnings distributions may be paid to other KBR entities where the cash can be used for general corporate needs. The components of our cash and equivalents balance are as follows: September 30, 2015 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 136 $ 298 $ 434 Time deposits 259 6 265 Cash and equivalents held in joint ventures 65 4 69 Total $ 460 $ 308 $ 768 December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 121 $ 330 Time deposits 481 79 560 Cash and equivalents held in joint ventures 71 9 80 Total $ 761 $ 209 $ 970 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. Our international cash balances are primarily held in Australia and the Netherlands. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows: September 30, 2015 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 68 $ 68 Engineering & Construction 36 411 447 Government Services 2 87 89 Other — 5 5 Subtotal 38 571 609 Non-strategic Business 56 34 90 Total $ 94 $ 605 $ 699 December 31, 2014 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 51 $ 51 Engineering & Construction 45 538 583 Government Services 5 84 89 Other — 3 3 Subtotal 50 676 726 Non-strategic Business 48 73 121 Total $ 98 $ 749 $ 847 In addition, noncurrent retainage receivable included in "other assets" on our condensed consolidated balance sheets was $1 million and $14 million as of September 30, 2015 and December 31, 2014 , respectively, primarily in our Non-strategic Business segment. |
Percentage-Of-Completion Contra
Percentage-Of-Completion Contracts | 9 Months Ended |
Sep. 30, 2015 | |
Contractors [Abstract] | |
Percentage-of-Completion Contracts | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Our CIE balances by business segment are as follows: September 30, December 31, Dollars in millions 2015 2014 Technology & Consulting $ 32 $ 38 Engineering & Construction 159 357 Government Services 90 73 Subtotal 281 468 Non-strategic Business 3 22 Total $ 284 $ 490 Our BIE balances by business segment are as follows: September 30, December 31, Dollars in millions 2015 2014 Technology & Consulting $ 65 $ 56 Engineering & Construction 252 212 Government Services 90 93 Subtotal 407 361 Non-strategic Business 93 170 Total $ 500 $ 531 Unapproved change orders and claims The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows: Dollars in millions 2015 2014 Amounts included in project estimates-at-completion at January 1, $ 31 $ 115 Changes in estimates-at-completion 48 81 Approved (a) (46 ) (134 ) Amounts included in project estimates-at-completion at September 30, $ 33 $ 62 Amounts recorded in revenues on a percentage-of-completion basis at September 30, $ 32 $ 53 (a) Includes $6 million of adjustments associated with the sale of our Building Group subsidiary in the second quarter of 2015. The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims on a percentage-of-complete basis was $59 million as of September 30, 2015 and $84 million as of September 30, 2014 on a project in our E&C business segment. The decrease is primarily due to changes in estimated costs of unapproved change orders related to our unconsolidated affiliates. Liquidated damages Some of our engineering and construction contracts have schedule dates and performance obligations that if not met could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract. It is possible that liquidated damages related to several projects totaling $6 million at September 30, 2015 and $12 million at December 31, 2014 , respectively, (including amounts related to our share of unconsolidated subsidiaries), could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance we have concluded these liquidated damages are not probable; therefore, they have not been recognized. |
Claims and Accounts Receivable
Claims and Accounts Receivable (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Claims Receivable | Claims and Accounts Receivable The components of our claims and accounts receivable account balance not expected to be collected within the next 12 months are as follows: September 30, December 31, Dollars in millions 2015 2014 Engineering & Construction $ 425 $ 425 Government Services 124 145 Total $ 549 $ 570 Our E&C business segment's claims and accounts receivable includes $401 million related to our EPC 1 arbitration. See Note 12 to our condensed consolidated financial statements under PEMEX and PEP Arbitration for further discussion. The remaining balance is related to a construction project for which we are actively pursuing the recovery of these receivables. Our GS business segment's claims and accounts receivable reflects claims for costs incurred under various U.S. government contracts. See "Other Matters" in Note 11 to our condensed consolidated financial statements for further discussion on our U.S. government claims. |
Equity Method Investments And V
Equity Method Investments And Variable Interest Entities | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments And Variable Interest Entities | Equity Method Investments and Variable Interest Entities We conduct some of our operations through joint ventures which operate through partnership, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are also VIEs. The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: September 30, December 31, Dollars in millions 2015 2014 Beginning balance $ 151 $ 156 Equity in earnings of unconsolidated affiliates 123 163 Distribution of earnings of unconsolidated affiliates (84 ) (249 ) Advances (10 ) (13 ) Investments (a) 76 — Foreign currency translation adjustments (9 ) (1 ) Other 2 — Balance before reclassification $ 249 $ 56 Reclassification of excess distribution 16 102 Recognition of excess distributions (4 ) (7 ) Ending balance $ 261 $ 151 (a) Investments include a $58 million investment in the Brown & Root Industrial Services joint venture and a $20 million investment in EPIC Piping, including prior quarter dispositions related to the Building Group. See below for further discussion related to joint venture formations and investments. During 2014 , we received cash dividends of $102 million in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as “deferred income from unconsolidated affiliates” on our condensed consolidated balance sheets and will recognize these dividends as earnings are generated by the investment. We recognized $7 million of the excess dividends during 2014 . During 2015 , we received an additional $16 million of cash dividends in excess of the carrying value of our investment and recognized $4 million of excess dividends. New Investment On September 30, 2015, we executed an agreement with Bernhard Capital Partners ("BCP"), the private equity firm, to establish the Brown & Root Industrial Services joint venture. In connection with the formation of the joint venture, we contributed our Industrial Services Americas business and received net cash consideration of $48 million and a 50% interest in the joint venture. As a result of the transaction, we no longer have a controlling interest in this Industrial Services business and have deconsolidated it effective September 30, 2015. The transaction resulted in a pre-tax gain of $7 million , which is included in “gain on disposition of assets” on our condensed consolidated statements of operations. The fair value of our retained interest in the former subsidiary was determined using both a market approach and an income approach. Cash consideration was the primary input used for the market approach. The Brown & Root Industrial Services joint venture will continue to offer services similar or related to those offered when the business was part of KBR. Our interest in this venture is accounted for using the equity method and we have determined that the Brown & Root Industrial Services joint venture is not a VIE. Our continuing involvement in the joint venture will be through our 50% voting interest and representation on the board of managers. Consistent with our other equity investments, transactions between us and the joint venture, if any, will be deemed related party transactions. Also, in connection with this transaction, we entered into an agreement effective October 1, 2015 to provide specified transition services to the new joint venture over a limited duration. The joint venture will reimburse us for all costs incurred on these transition services. On September 30, 2015, we acquired general and limited partner interests in a partnership that owns a pipe fabrication business operating under the name EPIC Piping LLC ("EPIC"). BCP also holds general and limited partner interests in this partnership. Consideration for these interests was $15 million in cash and contribution of the majority of our Canada pipe fabrication and module assembly business. We have determined that this arrangement is not a VIE and we will account for our ownership interest using the equity method. In addition, we entered into an alliance agreement with EPIC to provide certain pipe fabrication services to KBR. As a result of these transactions we recognized a $9 million charge on the early termination of leases related to a Canadian fabrication yard and a $5 million impairment of our Canadian enterprise resource planning assets. Related Party Transactions We often provide engineering, construction management and other services as a subcontractor to the joint ventures in which we participate. The amounts included in our revenues represent revenues from services we provide directly to the joint ventures. For the three and nine months ended September 30, 2015 our revenues included $96 million and $223 million , respectively, related to services we provided to our joint ventures, primarily those in our E&C business segment. For the three and nine months ended September 30, 2014 our revenues included $84 million and $228 million , respectively, related to services we provided to our joint ventures in our E&C business segment. Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of September 30, 2015 and December 31, 2014 are as follows: September 30, December 31, Dollars in millions 2015 2014 Accounts receivable, net of allowance for doubtful accounts $ 10 $ 7 Costs and estimated earnings in excess of billings on uncompleted contracts $ 6 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 52 $ 21 Our related party accounts payable for both periods were immaterial. Unconsolidated Variable Interest Entities Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture reduced for any unearned revenues on the projects. On the Aspire Defence project, in addition to the maximum exposure to loss indicated in the table below, we have exposure to any losses incurred by the construction or operating joint ventures under their respective subcontract arrangements with the project company. Our exposure is, however, limited to our equity participation in these entities. The Ichthys liquefied natural gas ("LNG") project joint venture executes a project that has a lump sum component; in addition to the maximum exposure to loss indicated in the table below, we have an exposure to losses to the extent of our ownership percentage in the joint venture if the project exceeds the lump sum component. Our maximum exposure to loss on the EBIC Ammonia plant reflects our 65% ownership of the development corporation which owns 25% of the company that consolidates the ammonia plant. We continue to monitor our investment in this joint venture as the profitability of its operations has been impacted by the challenges related to the availability of natural gas feedstock in Egypt. The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. September 30, 2015 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 15 $ 127 $ 15 Ichthys LNG project $ 72 $ 58 $ 72 U.K. Road projects $ 35 $ 11 $ 35 EBIC Ammonia plant (65% interest) $ 37 $ 2 $ 23 December 31, 2014 Dollars in millions Total assets Total liabilities Maximum Aspire Defence project $ 17 $ 118 $ 17 Ichthys LNG project $ 49 $ 35 $ 49 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia plant (65% interest) $ 42 $ 2 $ 26 Consolidated Variable Interest Entities We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions September 30, 2015 Total assets Total liabilities Gorgon LNG project $ 152 $ 176 Escravos Gas-to-Liquids project $ 15 $ 31 Fasttrax Limited project $ 80 $ 75 Dollars in millions December 31, 2014 Total assets Total liabilities Gorgon LNG project $ 282 $ 309 Escravos Gas-to-Liquids project $ 23 $ 36 Fasttrax Limited project $ 83 $ 81 Acquisition of Noncontrolling Interest During the three months ended March 31, 2015, we entered into an agreement to acquire the noncontrolling interest in one of our consolidated joint ventures for $40 million . We paid the partner previously accrued expenses of $8 million . The acquisition of these shares was recorded as an equity transaction, with a $40 million reduction in our paid-in capital in excess of par. |
Pension Plans Pension Plan (Not
Pension Plans Pension Plan (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | Pension Plans The components of net periodic benefit cost related to pension benefits for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Dollars in millions 2015 2014 United States Int’l United States Int’l Components of net periodic benefit cost Service cost $ — $ — $ — $ 1 Interest cost 1 19 1 23 Expected return on plan assets — (24 ) (1 ) (26 ) Recognized actuarial loss 1 11 1 10 Net periodic benefit cost $ 2 $ 6 $ 1 $ 8 Nine Months Ended September 30, Dollars in millions 2015 2014 United States Int’l United States Int’l Components of net periodic benefit cost Service cost $ — $ 1 $ — $ 2 Interest cost 2 57 2 68 Expected return on plan assets (2 ) (73 ) (3 ) (78 ) Recognized actuarial loss 4 33 3 29 Net periodic benefit cost $ 4 $ 18 $ 2 $ 21 For the nine months ended September 30, 2015 , we have contributed approximately $32 million of the $43 million we expect to contribute to our international plans in 2015 . For the nine months ended September 30, 2015 , we have also contributed $5 million to one of our domestic plans that we are in the process of terminating. |
Debt And Other Credit Facilitie
Debt And Other Credit Facilities | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Other Credit Facilities | Debt and Other Credit Facilities Credit Agreement On September 25, 2015, we entered into a new $1 billion , unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks replacing the previous agreement which was scheduled to mature in December 2016 . The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries, matures in September 2020 and is available for cash borrowings and the issuance of letters of credit related to general corporate needs. Subject to certain conditions, we may request (i) that the aggregate commitments under the Credit Agreement be increased by up to an additional $500 million , and (ii) that the maturity the Credit Agreement be extended by two additional one-year terms. Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i) the London interbank offered rate (“LIBOR”) plus an applicable margin of 1.375% to 1.75%, or (ii) a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters, except for the period ended September 30, 2015, for which the prior three fiscal quarters are utilized, as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. As of September 30, 2015 , there were $130 million in letters of credit and no cash borrowings outstanding. The Credit Agreement contains customary covenants, as defined in the Credit Agreement, which include financial covenants requiring maintenance of a ratio of consolidated debt to consolidated EBITDA not greater than 3.5 to 1 and a minimum consolidated net worth of $1.2 billion plus 50% of consolidated net income for each quarter beginning September 30, 2015 and 100% of any increase in shareholders’ equity attributable to the sale of equity interests. As of September 30, 2015 , we were in compliance with our financial covenants. The Credit Agreement contains a number of other covenants restricting, among other things, our ability to incur additional liens and indebtedness, enter into asset sales, repurchase our equity shares and make certain types of investments. Our subsidiaries are restricted from incurring indebtedness, except if such indebtedness relates to purchase money obligations, capitalized leases, refinancing or renewals secured by liens upon or in property acquired, constructed or improved in an aggregate principal amount not to exceed $200 million outstanding at any time. Additionally, our subsidiaries may incur unsecured indebtedness not to exceed $200 million in aggregate outstanding principal amount at any time. We are also permitted to repurchase our equity shares, provided that no such repurchases shall be made from proceeds borrowed under the Credit Agreement, and that the aggregate purchase price and dividends paid after September 25, 2015, does not exceed the Distribution Cap (equal to the sum of $750 million plus the lesser of (1) $400 million and (2) the amount received by us in connection with the arbitration and subsequent litigation of the PEP contracts as discussed in Note 12 to our condensed consolidated financial statements). As of September 30, 2015 , the remaining availability under the Distribution Cap was approximately $750 million . Nonrecourse Project Debt Fasttrax Limited, a joint venture in which we indirectly own a 50% equity interest with an unrelated partner, was awarded a concession contract in 2001 with the U.K. Ministry of Defense ("MoD") to provide a Heavy Equipment Transporter Service to the British Army. See Note 7 to our condensed consolidated financial statements for further discussion on the joint venture. Under the terms of the arrangement, Fasttrax Limited operates and maintains 91 heavy equipment transporters (“HETs”) for a term of 22 years. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan totaling approximately £84.9 million (approximately $120 million at the exchange rate on the date of the transaction). The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The bridge loan of approximately £12.2 million (approximately $17 million at the exchange rate on the date of the transaction) was replaced when the joint venture partners funded their equity and subordinated debt contributions in 2005. The secured bonds were issued in two classes consisting of Class A 3.5% Index Linked Bonds in the amount of £56 million (approximately $79 million at the exchange rate on the date of the transaction) and Class B 5.9% Fixed Rate Bonds in the amount of £16.7 million (approximately $24 million at the exchange rate on the date of the transaction). Semi-annual payments on both classes of bonds commenced in March 2005 and will continue through maturity in 2021. The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16% over the term of the notes until maturity in 2025. Semi-annual payments on the subordinated notes commenced in March 2006. For financial reporting purposes, only our partner's portion of the subordinated notes appears in the condensed consolidated financial statements. |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Income Per Share | Income (Loss) per Share Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method. A reconciliation of the number of shares used for the basic and diluted income (loss) per share calculations is as follows: Three Months Ended Nine Months Ended September 30, September 30, Shares in millions 2015 2014 2015 2014 Basic weighted average common shares outstanding 144 145 144 145 Stock options and restricted shares — — — — Diluted weighted average common shares outstanding 144 145 144 145 For purposes of applying the two-class method in computing income (loss) per share, there were $0.5 million and $1.4 million net earnings allocated to participating securities, or a negligible amount per share, for the three and nine months ended September 30, 2015 , respectively. Net earnings allocated to participating securities for the three and nine months ended September 30, 2014 were $0.2 million and none , respectively. The diluted income (loss) per share calculation did not include 3.6 million antidilutive weighted average shares for the three and nine months ended September 30, 2015 . The diluted income (loss) per share calculation did not include 3.4 million and 2.8 million antidilutive weighted average shares for the three and nine months ended September 30, 2014 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The effective tax rate was approximately 24% and 26% for the three and nine months ended September 30, 2015 , respectively. The effective tax rate for both the three and nine months ended September 30, 2015 includes the net effect of changes in our reserve for uncertain tax positions, additional prior year foreign withholding taxes and other net changes. The effective tax rate was approximately (2)% and 48% for the three and nine months ended September 30, 2014 , respectively. The effective tax rate for the three months ended September 30, 2014 was impacted by discrete tax benefits including a reduction in our reserve for uncertain tax positions as a result of lapse of stature of limitations. The effective tax rate for the nine months ended September 30, 2014 includes the recognition of a valuation allowance on the losses recognized on our Canadian pipe fabrication and module assembly projects. Our estimated annual rate for 2015 is 25% , which is lower than the U.S. statutory rate of 35% due to lower tax rates on foreign earnings and noncontrolling interests of approximately 5% and 9% , respectively, offset by an increase in the estimated annual rate due to withholding tax obligations for which we do not expect to recognize an offsetting foreign tax credit in 2015 . Our estimated annual effective rate is subject to change based on the actual jurisdictions where our 2015 earnings are generated. The valuation allowance for deferred tax assets as of September 30, 2015 and December 31, 2014 was $478 million and $538 million , respectively. The change in the valuation allowance was a decrease of $48 million and an increase of $3 million in the three months ended September 30, 2015 and 2014 , respectively and a decrease of $60 million and increase of $35 million for the nine months ended September 30, 2015 and 2014 , respectively. The valuation allowance is primarily related to U.S. federal, foreign and state net operating loss carryforwards, foreign tax credit carryforwards and other deferred tax assets that, in the judgment of management, are not more-likely-than-not to be realized. The decrease in the valuation allowance is primarily related to the utilization of federal tax attributes as a result of the gains on disposition of assets and jurisdictional sourcing of profits. The tax benefit associated with the reduction in the valuation allowance is reflected in our estimated annual effective tax rate for the year. The reserve for uncertain tax positions included in "other liabilities" and "deferred income taxes" on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 was $253 million and $228 million , respectively. The net increase in the uncertain tax position for the three months ended September 30, 2015 and 2014 was $18 million and $57 million , respectively, and $25 million and $57 million for the nine months ended September 30, 2015 and 2014 , respectively. During the three and nine months ended September 30, 2015 , the net change includes approximately $43 million in increases in uncertain tax positions in foreign jurisdictions offset by $16 million benefits from lapse of statute of limitations. During the three and nine months ended September 30, 2014 , we recognized an approximately $62 million increase in our reserve for uncertain tax positions related to a 2009 amended tax return position and a $5 million benefit from lapse of statute of limitations. |
U.S. Government Matters
U.S. Government Matters | 9 Months Ended |
Sep. 30, 2015 | |
United States Government Contract Work [Abstract] | |
U.S. Government Matters | U.S. Government Matters We provide services to various U.S. governmental agencies, which include the U.S. Department of Defense (“DoD”) and the Department of State. We may have disagreements or experience performance issues on our U.S. government contracts. When performance issues arise under any of these contracts, the U.S. government retains the right to pursue various remedies, including challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government. Between 2002 and 2011 we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We continue to support the U.S. government around the world under the LogCAP IV and other contracts. We have been in the process of closeout of the LogCAP III contract since 2011, and we expect the closeout process to continue through at least 2017. As a result of our work under LogCAP III, there are multiple claims and disputes pending between us and the U.S. government, all of which need to be resolved to close the contracts. The closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and Memorandums for Record ("MFRs") and resolving results from U.S. government audits. We continue to work with the U.S. government to resolve these issues and are engaged in efforts to reach mutually acceptable resolution of these outstanding matters. However, for certain of these matters, we have filed claims with the Armed Services Board of Contract Appeals ("ASBCA") or the U.S. Court of Federal Claims ("COFC"). We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor, vendor resolution and litigation costs as we resolve the open matters. At this time, we cannot determine the timing or net amounts to be collected or paid to close out these contracts. Form 1s The U.S. government has issued Form 1s questioning or objecting to costs we billed to them. We believe the amounts we have invoiced the U.S. government are in compliance with our contract terms; however, we continue to evaluate our ability to recover these amounts as new information becomes known. A summary of our Form 1s received and amounts associated with our Form 1s is as follows: September 30, December 31, Dollars in millions 2015 2014 Form 1s issued by the U.S. government and outstanding (a) $ 174 $ 188 Amounts withheld by U.S. government (included in the Form 1s amount above) (b) 83 96 Amounts withheld from subcontractors by us 32 32 Claims loss accruals (c) 26 25 (a) Included in the amounts shown is $56 million related to our Private Security matter discussed below. (b) Recorded in "claims and accounts receivable" on our condensed consolidated balance sheets. We believe these amounts are probable of collection. See discussions below for details of amounts withheld by the U.S. government on Form 1s. (c) Recorded as a reduction to "claims and accounts receivable" and in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe the likelihood we would incur a loss related to these matters in excess of the loss accruals we have recorded is remote. Summarized below are some of the details associated with individual Form 1s as part of the total explained above. Private Security. Starting in February 2007, we received a series of Form 1s from the Defense Contract Audit Agency ("DCAA") informing us of the U.S. government's intent to deny reimbursement to us under the LogCAP III contract for amounts related to the use of private security contractors ("PSCs") by KBR and a subcontractor in connection with its work for KBR providing dining facility services in Iraq between 2003 and 2006. The U.S. government challenged $56 million in billings. The U.S. government had previously paid $11 million and has withheld payments of $45 million , which as of September 30, 2015 we have recorded as due from the U.S. government related to this matter in "claims and accounts receivable" on our condensed consolidated balance sheets. On June 16, 2014, we received a decision from the ASBCA which agreed with KBR's position that the LogCAP III contract did not prohibit the use of PSCs to provide force protection to KBR or subcontractor personnel, that there was a need for force protection and that the costs were reasonable. The ASBCA also found that the Army breached its obligation to provide force protection. Accordingly, we believe that we are entitled to reimbursement by the Army for the amounts charged by our subcontractors, even if they incurred costs for PSCs. The Army appealed and on September 15, 2015, the Federal Court ruled, affirming the ASBCA's decision in part, reversing in part, and remanding the issue of the Government's alleged breach of contract to the ASBCA for further consideration and definitive ruling. We are reviewing our options as to the most effective path forward. Any motion for rehearing must be filed by October 30, 2015. At this time, we believe the likelihood that we will incur a loss related to this matter is remote, and therefore we have not accrued any loss provisions related to this matter. Containers. In June 2005, the DCAA questioned billings on costs associated with providing containerized housing for soldiers and supporting civilian personnel in Iraq. The Defense Contract Management Agency ("DCMA") recommended that payment for the billings be withheld pending receipt of additional explanation or documentation to support the subcontract costs. The Form 1 was issued for $51 million in billings. Of this amount, the U.S. government had previously paid $25 million and has withheld payments of $26 million , which as of September 30, 2015 , we have recorded in "claims and accounts receivable" on our condensed consolidated balance sheets. Included in "other liabilities" on our condensed consolidated balance sheets is $30 million of payments withheld from subcontractors related to pay-when-paid contractual terms. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have withheld from subcontractors and the loss accruals we have recorded is remote. There are three related actions stemming from the DCMA's action to disallow and withhold funds. First, in April 2008, we filed a counterclaim in arbitration against our LogCAP III subcontractor, First Kuwaiti Trading Company, to recover the amounts we paid to the subcontractor for containerized housing if we should lose the contract dispute with the U.S. government over the validity of the container claims. Those claims are still pending. Second, during the first quarter of 2011, we filed a complaint before the ASBCA to contest the Form 1s and to recover the amounts withheld from us by the U.S. government. At the request of the U.S. government, that complaint was dismissed without prejudice in January 2013 so that the U.S. government could pursue its False Claims Act ("FCA") suit described below. We are free to re-file the complaint in the future. Third, this matter is also the subject of a separate claim filed by the Department of Justice ("DOJ") for alleged violation of the FCA as discussed further below under the heading “Investigations, Qui Tams and Litigation.” CONCAP III . From February 2009 through September 2010, we received Form 1s from the DCAA disapproving billed costs related to work performed under our CONCAP III contract with the U.S. Navy to provide emergency construction services primarily to U.S. government facilities damaged by Hurricanes Katrina and Wilma. The Form 1 was issued for $25 million in billings. The U.S. government had previously paid $15 million and has withheld payments of $10 million , which as of September 30, 2015 we have recorded as due from the U.S. government related to this matter in "claims and accounts receivable" on our condensed consolidated balance sheets. In February 2012, the Contracting Officer rendered a Contracting Officer Final Determination (“COFD”) disallowing $15 million of direct costs. We filed an appeal with the ASBCA in June 2012. Trial was held before the ASBCA in September 2014, and post hearing briefs were filed in November 2014. We expect it will take several months before a ruling is issued on this matter. We believe we undertook adequate and reasonable steps to ensure that proper bidding procedures were followed and the amounts billed to the U.S. government were reasonable and not in violation of the Federal Acquisition Regulations ("FAR") and that the ASBCA will rule in our favor. As of September 30, 2015 , we have accrued our estimate of probable loss related to an unfavorable settlement of this matter recorded in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Other. The U.S. government has issued Form 1s for other matters questioning $42 million of billed costs. For these matters, the U.S. government previously paid $40 million and has withheld payment of $2 million , which we have recorded in "claims and accounts receivable" on our condensed consolidated balance sheets. We have accrued our estimate of probable loss in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. We have other matters (not related to Form 1s) in dispute with the U.S. government either in the COFC or before the ASBCA. These claims represent $11 million in claimed costs primarily associated with the pass-through of subcontractor claims associated with a termination for convenience in Iraq. We have accrued $4 million as our estimate of probable loss in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to these matters in excess of the amounts we have accrued is remote. Audits In addition to reviews performed by the U.S. government through the Form 1 process, the negotiation, administration and settlement of our contracts which primarily consist of DoD contracts, are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA and the DCMA is responsible for the administration of our contracts. The scope of these audits include, among other things, the validity of incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and Cost Accounting Standards (“CAS”), compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. We attempt to resolve all issues identified in audit reports by working directly with the DCAA and the Administrative Contracting Officers ("ACOs"). As a result of these audits, there are risks that costs we have claimed as recoverable may be assessed by the U.S. government to be unallowable. We believe our claims are in compliance with our contract terms. In some cases, we may not reach agreement with the DCAA or the ACOs regarding potentially unallowable costs which may result in our filing of claims in various courts such as the ASBCA or the COFC. We have accrued our estimate of potentially unallowable costs using a combination of specific estimates and our settlement rate experience with the U.S. government. We have received audit reports for both direct and indirect incurred costs for the years 2004 through 2011 and have not received audit reports for 2012 through 2013. Additionally, we have reached an agreement with the U.S. government on definitive incurred cost rates for the years 2003 through 2010. At September 30, 2015 , we have accrued $21 million as our estimate of probable loss as a reduction to "claims and accounts receivable" and in "other liabilities" on our condensed consolidated balance sheets related to open audit. For those years in which we have received audit reports and negotiated final settlements for both direct and indirect claimed costs, we have experienced an aggregate disallowance rate of approximately 0.1% of such costs. This has been slightly more favorable than the allowances we had previously provided. For the period 2003 through 2010 we incurred claimed costs of $46 billion . We have reached negotiated settlement on all but $36 million which is still under review and negotiation. In reaching these settlements we have conceded $41 million . For the years 2012 through 2013 we incurred costs of $1 billion that are still under audit. We only include amounts in revenues related to disputed and potentially unallowable costs when we determine it is probable that such costs will result in the collection of revenues. We generally do not recognize additional revenues for disputed or potentially unallowable costs for which revenues have been previously reduced until we reach agreement with the ACOs that such costs are allowable. In addition to audits of our incurred costs, the U.S. government also reviews our compliance with the CAS and the adequacy and compliance of our CAS disclosure statements. We are working with the U.S. government to resolve several outstanding alleged CAS non-compliance issues. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. First Kuwaiti Trading Company arbitration. In April 2008, First Kuwaiti Trading Company ("FKTC"), one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association of all its claims under various LogCAP III subcontracts. FKTC sought damages in the amount of $134 million . After complete hearings on all of FKTC's claims, an arbitration panel awarded $17 million and interest to FKTC for claims involving damages on lost or unreturned vehicles. In addition, we have determined that we owe FKTC $30 million in connection with other subcontracts. We had an agreement with FKTC that no damages will be paid until our counterclaim is decided, but FKTC filed a motion with the arbitration panel to compel KBR to pay all amounts outstanding. We paid FKTC $15 million in the third quarter of 2014, $4 million in the fourth quarter of 2014 and will pay $4 million on pay-when-paid terms. On March 24, 2015, we received a demand letter from FKTC seeking an additional $3 million ; however, a formal claim has not been filed in the arbitration. On August 11, 2015, the arbitration panel issued its ruling, denying FKTC’s requests that the Tribunal (i) issue a Final Award, (ii) “set a schedule to consider whether KBR’s contingent claims can be summarily dismissed as a matter of law” and (iii) determine “pre-judgment and post-judgment interest apply to the 2009 Stipulation amounts and that post-judgment interest applies to the 2014 settlement amount." We have accrued amounts we believe are payable to FKTC in "accounts payable" and "other current liabilities" on our condensed consolidated balance sheets. We believe any cost of litigation or any damages ultimately awarded to FKTC will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. See the additional legal action with the ASBCA in the container litigation discussed above. Electrocution litigation. During 2008, a lawsuit was filed against KBR in Pittsburgh, PA, in the Allegheny County Common Pleas Court alleging that the Company was responsible for an electrical incident which resulted in the death of a soldier. This incident occurred at the Radwaniyah Palace Complex near Baghdad, Iraq. It is alleged in the suit that the electrocution incident was caused by improper electrical maintenance or other electrical work. KBR denies that its conduct was the cause of the event and denies legal responsibility. Plaintiffs are claiming unspecified damages for personal injury, death and loss of consortium by the parents. On July 13, 2012, the Court granted our motions to dismiss, concluding that the case is barred by the Political Question Doctrine and preempted by the Combatant Activities Exception to the Federal Tort Claims Act. The plaintiffs appealed to the Third Circuit Court of Appeals. In August 2013, the Third Circuit Court of Appeals issued an opinion reversing the trial court's dismissal and remanding for further discovery and legal rulings. KBR filed a petition for certiorari with the U.S. Supreme Court and on January 20, 2015, the Supreme Court denied certiorari. The case is now before the U.S. District Court for the Western District of Pennsylvania for further action. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood we would incur a loss related to this matter is remote. As of September 30, 2015 , no amounts have been accrued. We believe any costs of litigation and any damages which might be awarded will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter is remote. Burn Pit litigation. From November 2008 through March 2013, KBR was served with over 50 lawsuits in various states alleging exposure to toxic materials resulting from the operation of burn pits in Iraq or Afghanistan in connection with services provided by KBR under the LogCAP III contract. Each lawsuit has multiple named plaintiffs and seeks class certification. The lawsuits primarily allege negligence, willful and wanton conduct, battery, intentional infliction of emotional harm, personal injury and failure to warn of dangerous and toxic exposures which has resulted in alleged illnesses for contractors and soldiers living and working in the bases where the pits were operated. The plaintiffs are claiming unspecified damages. All of the pending cases were removed to Federal Court and have been consolidated for multi-district litigation treatment before the U.S. Federal District Court in Baltimore, Maryland. In February 2013, the Court dismissed the case against KBR, accepting all of KBR's defense claims including the Political Question Doctrine; the Combatant Activities Exception to the Federal Tort Claims Act; and Derivative Sovereign Immunity. The plaintiffs appealed to the Fourth Circuit Court of Appeals on March 27, 2013. On March 6, 2014, the Fourth Circuit Court vacated the order of dismissal and remanded this multi-district litigation for further action, including a ruling on state tort law and its impact upon the "Contractor on the Battlefield" defenses. KBR filed a petition for certiorari with the U.S. Supreme Court and on January 20, 2015, the Supreme Court denied certiorari. The cases are now before the District Court in Baltimore, Maryland for further action in conformity with the Fourth Circuit's ruling. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2015 , no amounts have been accrued. We believe any costs of litigation and any damages which might be awarded will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter is remote. Sodium Dichromate litigation. From December 2008 through September 2009, five cases were filed in various Federal District Courts against KBR by national guardsmen and other military personnel alleging exposure to sodium dichromate at the Qarmat Ali Water Treatment Plant in Iraq in 2003. The majority of the cases were re-filed and consolidated into two cases, with one pending in the U.S. District Court for the Southern District of Texas and one pending in the U.S. District Court for the District of Oregon. A single plaintiff case was filed on November 30, 2012 in the District of Oregon Eugene Division. Collectively, the suits represent approximately 170 individual plaintiffs all of which are current and former national guardsmen or British soldiers who claim they were exposed to sodium dichromate while providing security services or escorting KBR employees who were working at the water treatment plant, claim that the defendants knew or should have known that the potentially toxic substance existed and posed a health hazard, and claim that the defendants negligently failed to protect the plaintiffs from exposure. The plaintiffs are claiming unspecified damages. The U.S. Army Corps of Engineers (“USACE”) was contractually obligated to provide a benign site free of war and environmental hazards before KBR's commencement of work on the site. KBR notified the USACE within two days after discovering the potential sodium dichromate issue and took effective measures to remediate the site. Services provided by KBR to the USACE were under the direction and control of the military and therefore, KBR believes it has adequate defenses to these claims. KBR also has asserted the Political Question Doctrine and other U.S. government contractor defenses. Additionally, studies by the U.S. government and others on the effects of exposure to the sodium dichromate contamination at the water treatment plant have found no long term harm to the soldiers. We believe any costs of litigation and any damages which might be awarded will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter is remote. Texas Proceedings. After an interlocutory appeal under 28 U.S.C. § 1292(b) to the U.S. Court of Appeals for the Fifth Circuit on KBR's motion to dismiss regarding its "Contractor on the Battlefield" defenses, on November 7, 2013 a three judge panel of the Court returned the case to the trial court, holding the interlocutory appeal was improperly granted. We sought review by the entire court on this opinion which was denied. On January 23, 2015, the U.S. District Court for the Southern District of Texas issued several orders dismissing all of the plaintiffs' claims except for intentional infliction of emotional distress. On February 2, 2015, KBR filed a motion for summary judgment on this claim which was denied for procedural reasons. The Plaintiffs' filed their choice of law motion for reconsideration of the judge's dismissal of their negligence claims on March 16, 2015 and we filed our choice of law motion on April 15, 2015. On August 10, 2015, the trial judge issued an order holding Texas law applies to the case, including the intentional infliction of emotional distress claim. The court also vacated the order denying KBR's motion for summary judgment dismissal of the intentional infliction of emotional distress claim and asked the plaintiffs to file a reply, which they did. On October 23, 2015 the court dismissed the remaining intentional infliction of emotional distress claim and issued a final judgment dismissing all of the plaintiffs' claims. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2015 , no amounts have been accrued. Oregon Proceedings. On November 2, 2012 in the Oregon case, a jury in the U.S. District Court for the District of Oregon issued a verdict in favor of the plaintiffs on their claims, and awarded them approximately $10 million in actual damages and $75 million in punitive damages. We filed post-verdict motions asking the court to overrule the verdict or order a new trial. On April 26, 2013, the court ruled for plaintiffs on all issues except one, reducing the total damages to $81 million which consists of $6 million in actual damages and $75 million in punitive damages. The court issued a final judgment on May 10, 2013, which was consistent with the previous ruling. KBR appealed the ruling. Our basis for appeal included the trial court's denial of the Political Question Doctrine, the Combat Activities Exception in the Federal Tort Claims Act and improper ruling on personal jurisdiction. On May 14, 2015, the Ninth Circuit issued an order reversing and remanding the case for dismissal or transfer based on a lack of personal jurisdiction over KBR in Oregon. The parties have agreed and requested that the case should be dismissed and refiled in the Southern District of Texas to be consolidated with the case pending in the Texas federal court mentioned above. The plaintiffs also agreed that all prior rulings in the Texas proceedings apply to the Bixby plaintiffs. Our motion for appeal related legal costs against the plaintiffs was denied by the trial court and we are appealing this denial to the Ninth Circuit. We have filed proceedings to enforce our rights to reimbursement and payment of legal costs pursuant to the FAR under the Restore Iraqi Oil ("RIO") contract with the USACE as referenced below. At this time we believe the likelihood that we will ultimately incur a loss related to this matter is remote. As of September 30, 2015 , no amounts have been accrued. COFC/ASBCA Claims. During the period of time since the first litigation was filed against us, we have incurred legal defense costs that we believe are reimbursable under the related U.S. government contract. We have billed for these costs and filed claims to recover the associated costs incurred to date. In late 2012 and early 2013, we filed suits against the U.S. government in the COFC for denying indemnity in the sodium dichromate cases, for reimbursement of legal fees pursuant to our contract with the U.S. government and for breach of contract by the U.S. government for failure to provide a benign site as required by our contract. The RIO contract required KBR personnel to begin work in Iraq as soon as the invasion began in March 2003. Due to KBR's inability to procure adequate insurance coverage for this work, the Secretary of the Army approved the inclusion of an indemnification provision in the RIO Contract pursuant to Public Law 85-804. On March 7, 2014, the COFC issued a ruling on the U.S. government's motion dismissing KBR's claims on procedural grounds. The decision did not prohibit us from resubmitting the claims to the contracting officer and we promptly refiled those claims. On April 4, 2014, we submitted a supplemental certified claim to the RIO contracting officer for additional legal fees incurred in defending the sodium dichromate cases. On June 9, 2014, we filed an appeal to the ASBCA due to the contracting officer's failure to issue a final decision on claims totaling approximately $30 million . The USACE filed an answer, denying our claims. We filed a motion for judgment on the pleadings, asking the court to rule in KBR's favor on the 85-804 indemnity clause based on the admissions made by the USACE in its answer. The court has agreed to stay our other claims while we conduct limited discovery on the 85-804 indemnity. On December 23, 2014, we filed a Motion for Partial Summary Judgment asking the ASBCA to find that, based on discovery conducted to date, the sodium dichromate related incidents and litigation are within the definition of the "unusually hazardous risks" language in the 85-804 indemnity agreement. On August 17, 2015, the ASBCA issued an order holding that KBR is entitled to reimbursement of the sodium dichromate legal fees and any resulting judgments pursuant to the 85-804 indemnity agreement. We do not yet know if the government will appeal this ruling. We subsequently filed a motion for summary judgment asking the ASBCA to find that the $30 million in legal fees are reasonable and payable by the government to KBR pursuant to the indemnity agreement. Qui tams. On the active qui tams of which we are aware, the U.S. government has joined one of them (see DOJ FCA complaint - Iraq Subcontractor below). We believe the likelihood that we would incur a loss in the qui tams the U.S. government has not joined is remote and as of September 30, 2015 , no amounts have been accrued. Costs incurred in defending the qui tams cannot be billed to the U.S. government until those matters are successfully resolved in our favor. If successfully resolved, we can bill 80% of the costs to the U.S. government under the controlling provisions of the FAR. As of September 30, 2015 , we have incurred $14 million in legal costs to date in defending ourselves in qui tams. Barko qui tam. Relator Harry Barko was a KBR subcontracts administrator in Iraq for a year in 2004/2005. He filed a qui tam lawsuit in June 2005 in the U.S. District Court for the District of Columbia (D.C.), alleging violations of the FCA by KBR and KBR subcontractors Daoud & Partners and Eamar Combined for General Trading and Contracting. The claim was unsealed in March of 2009. Barko alleges that KBR fraudulently charged the U.S. government for the purchase of laundry facilities from Daoud, that KBR paid Daoud for the construction of a substandard man-camp, that Daoud double-billed KBR for labor, that KBR improperly awarded well-drilling subcontracts to Daoud, and that Daoud charged excessive prices for these services and did not satisfactorily complete them. Barko also alleges fraudulent charges arising out of Eamar’s well-drilling services. Over the last 18 months, we successfully sought review and reversal of the trial court's opinion on KBR's attorney client and work product privileges. After the second reversal, KBR was notified that the case has been transferred to a new District Court Judge. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore as of September 30, 2015 we have not accrued any loss provisions related to this matter. DOJ False Claims Act complaint - Containers. In November 2012, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL, related to our settlement of delay claims by our subcontractor, FKTC, in connection with FKTC's provision of living trailers for the bed down mission in Iraq in 2003-2004. The DOJ alleges that KBR knew that FKTC had submitted inflated costs; that KBR did not verify the costs; that FKTC had contractually assumed the risk for the costs which KBR submitted to the U.S. government; that KBR concealed information about FKTC's costs from the U.S. government; that KBR claimed that an adequate price analysis had been done when in fact one had not been done; and that KBR submitted false claims for reimbursement to the U.S. government in connection with FKTC's services during the bed down mission. Our contractual dispute with the Army over this settlement has been ongoing since 2005. We believe these sums were properly billed under our contract with the Army and are not prohibited under the LogCAP III contract. We strongly contend that we followed the law and no fraud was committed. On May 6, 2013, KBR filed a motion to dismiss and in March 2014 the motion to dismiss was denied. We filed our answer on May 2, 2014 and on May 23, 2014 the U.S. government filed a Motion to Strike certain affirmative defenses which was denied. On September 30, 2014, the District Court granted FKTC's motion to dismiss for lack of personal jurisdiction. A scheduling conference was held on December 5, 2014 and we expect discovery be completed in 2016. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2015 , no amounts have been accrued. DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL, against KBR and two former KBR subcontractors alleging that 3 former KBR employees were offered and accepted kickbacks from these subcontractors in exchange for favorable treatment in the award and performance of subcontracts to be awarded during the course of KBR's performance of the LogCAP III contract in Iraq. |
Other Commitments And Contingen
Other Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Loss Contingencies [Line Items] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Litigation and regulatory matters related to the Company’s restatement of its 2013 annual financial statements In re KBR, Inc. Securities Litigation . Lead plaintiffs, Arkansas Public Employees Retirement System and Local 58/NECA Funds, seek class action status on behalf of our shareholders, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company, our former chief executive officer, our current and former chief financial officers, and our former chief accounting officer, arising out of the restatement of our 2013 annual financial statements, and seek undisclosed damages. The case is currently pending in the U.S. District Court for the Southern District of Texas, Master File No. 14-cv-01287. We filed a motion to dismiss the consolidated complaint for failure to plead particularized facts supporting a strong inference of scienter on the part of the individual defendants and the motion was denied on September 3, 2015. We intend to continue to vigorously defend against these claims. Discovery in the case has begun and is expected to continue into 2016. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter. Butorin v. Blount et al , is a shareholder derivative complaint, filed on May 27, 2014 in the U.S. District Court for the Southern District of Texas on behalf of the Company naming certain current and former members of the Company's board of directors as defendants and the Company as a nominal defendant. The complaint alleges that the named directors breached their fiduciary duties by permitting the Company's internal controls to be inadequate. On March 31, 2015, the District Court transferred the case to the U.S. District Court of Delaware. The court has approved a stay of the action pending resolution of the motion to dismiss the security litigation. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter. Stella Dupree and Donald Taylor v. KBR, Inc ., was filed by shareholders of the Company on May 12, 2015 in Delaware Chancery Court seeking the right to inspect and make copies of certain books and records of the Company under §220 of Delaware General Corporation Law relating primarily to the restatement of our 2013 annual financial statements. The Company has agreed to provide a limited set of documents. After the documents are produced, the matter will be dismissed. We have also received requests for information and a subpoena for documents from the Securities Exchange Commission ("SEC") regarding the restatement of our 2013 annual financial statements. We have been and intend to continue cooperating with the SEC. PEMEX and PEP Arbitration In 1997, we entered into a contract with PEP, a subsidiary of PEMEX, the Mexican national oil company, to build offshore platforms and treatment and reinjection facilities in the Bay of Campeche, offshore Mexico. The project, known as EPC 1, encountered significant schedule delays and increased costs due to problems with design work, late delivery and defects in equipment, increases in scope and other changes. PEP took possession of the facilities in March 2004 prior to the completion of our scope of work and without paying us for our work. We filed for arbitration with the International Chamber of Commerce ("ICC") in 2004 claiming recovery of damages of approximately $323 million . PEP subsequently filed counterclaims totaling $157 million . In December 2009, the ICC arbitration panel ruled in our favor, and we were awarded a total of approximately $351 million including legal and administrative recovery fees as well as interest. PEP was awarded approximately $6 million on counterclaims plus interest on a portion of that sum. In connection with this award, we recognized a gain of $117 million net of tax in 2009. U.S. Proceedings. Collection efforts have involved multiple actions. On August 27, 2013, the U.S. District Court for the Southern District of New York entered an order stating it would confirm the award even though it had been annulled in Mexico (see Mexico proceedings discussion below). On September 25, 2013, the District Court entered the signed final judgment of $465 million , which includes the arbitration award and approximately $106 million for performance bonds discussed below, plus interest. The judgment also requires that each party pay value added tax on the amounts each has been ordered to pay. PEP filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit on October 16, 2013 and posted $465 million cash as security for the judgment pending appeal. Oral argument on the appeal was held on November 20, 2014. The U.S. government was invited to file a brief and did so, and the parties have filed responses to the U.S. government's brief. We continue to await the Court's ruling on the matter and while the Court may request additional briefing, there has been no indication it will do so. There has also been no indication as to when a decision will be reached and we are not aware of any factors preventing a decision from being reached. PEMEX and PEP could seek rehearing at the court of appeals and a review by the U.S. Supreme Court. At this time, we are unable to predict the timing of any ruling or resolution concerning this matter. Mexico Proceedings. PEP's multiple attempts to nullify the award in Mexico were rejected by the Mexican courts. PEP then filed an “amparo” action alleging that its constitutional rights had been violated and this action was denied by the Mexican court in October 2010. PEP then appealed to the Mexican Collegiate Court. In September 2011, the Collegiate Court ruled that PEP, by administratively rescinding the contract in 2004, deprived the arbitration panel of jurisdiction and the award was null and void. We believe the Collegiate Court's decision is contrary to Mexican law governing contract arbitration. However, we do not expect the Collegiate Court's decision to affect our ability to ultimately collect the ICC arbitration award in the U.S. due to the posting of cash as security for the judgment pending appeal. Other Proceedings. We have initiated collection proceedings to pursue our remedies in Luxembourg. Our efforts to collect under the North American Free Trade Agreement have been denied because of our pending collection efforts in the U.S. proceedings and in Luxembourg. Performance Bonds We had provided approximately $80 million in performance bonds to PEP when the project was awarded. The bonds were written by a Mexican bond company and backed by a U.S. insurance company which is indemnified by KBR. As a result of the ICC arbitration award in December 2009, the panel determined that KBR had performed on the project and recovery on the bonds by PEP was precluded. Notwithstanding, PEP filed an action in Mexico in June 2010 against the Mexican bond company to collect the bonds. On June 17, 2013, after proceedings in multiple Mexican courts, we were required to pay $108 million to the Mexican bond company. The $108 million consists of the $80 million in outstanding bonds, plus $26 million in related interest and other expenses and $2 million in legal and banking fees. Consistent with our treatment of claims, we have recorded $401 million , net of advances, in "claims and accounts receivable" on the condensed consolidated balance sheets as we believe it is probable we will recover the amounts awarded to us, including interest and expenses and the amounts we paid on the bonds. PEP has cash posted in the U.S. and assets in Luxembourg, which we believe we will be able to attach as a result of the recognition of the ICC arbitration award. Although it is possible we could resolve and collect the amounts due from PEP in the next 12 months , we believe the timing of the collection of the award is uncertain; therefore, consistent with our prior practice, as of September 30, 2015 , we continue to classify the amount due from PEP, including the amounts paid on the performance bonds, as long term. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following tables summarize our activity in shareholders’ equity: Dollars in millions Total PIC Retained Earnings Treasury Stock AOCL NCI Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) Acquisition of noncontrolling interest (40 ) (40 ) — — — — Share-based compensation 14 14 — — — — Common stock issued upon exercise of stock options 1 1 — — — — Dividends declared to shareholders (35 ) — (35 ) — — — Repurchases of common stock (22 ) — — (22 ) — — Issuance of ESPP shares 5 — — 5 — — Distributions to noncontrolling interests (21 ) — — — — (21 ) Net income 178 — 161 — — 17 Other comprehensive income (loss), net of tax (41 ) — — — (44 ) 3 Balance at September 30, 2015 $ 974 $ 2,066 $ 565 $ (729 ) $ (920 ) $ (8 ) Dollars in millions Total PIC Retained Treasury AOCL NCI Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (35 ) — (35 ) — — — Repurchases of common stock (102 ) — — (102 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (49 ) — — — — (49 ) Net income (loss) 33 — (21 ) — — 54 Other comprehensive income, net of tax (3 ) — — — (4 ) 1 Balance at September 30, 2014 $ 2,317 $ 2,085 $ 1,692 $ (708 ) $ (744 ) $ (8 ) Accumulated other comprehensive loss, net of tax September 30, Dollars in millions 2015 2014 Accumulated foreign currency translation adjustments, net of tax of $1 and $(1) $ (280 ) $ (158 ) Pension and post-retirement benefits, net of tax of $(226) and $(214) (638 ) (583 ) Fair value of derivatives, net of tax of $0 and $0 (2 ) (3 ) Total accumulated other comprehensive loss $ (920 ) $ (744 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Other comprehensive income adjustments before reclassifications (77 ) — — (77 ) Amounts reclassified from accumulated other comprehensive income — 32 1 33 Balance at September 30, 2015 $ (280 ) $ (638 ) $ (2 ) $ (920 ) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (28 ) — (1 ) (29 ) Amounts reclassified from accumulated other comprehensive income 1 25 (1 ) 25 Balance at September 30, 2014 $ (158 ) $ (583 ) $ (3 ) $ (744 ) Reclassifications out of accumulated other comprehensive loss, net of tax, by component Nine Months Ended September 30, Dollars in millions 2015 2014 Affected line item on the Condensed Consolidated Statements of Operations Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (37 ) $ (32 ) See (a) below Tax benefit 5 7 Provision for income taxes Net pension and post-retirement benefits $ (32 ) $ (25 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 to our condensed consolidated financial statements for further discussion. |
Share Repurchase
Share Repurchase | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases Authorized Share Repurchase Program On February 25, 2014, our Board of Directors authorized a plan to repurchase up to $350 million of our outstanding common shares, which replaced and terminated the August 26, 2011 share repurchase program. The authorization does not obligate the Company to acquire any particular number of common shares and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash and the authorization does not have an expiration date. Share Maintenance Programs Stock options and restricted stock awards granted under the KBR Stock and Incentive Plan may be satisfied using shares of our authorized but unissued common stock or our treasury share account. The Employee Stock Purchase Plan ("ESPP") allows eligible employees to withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR common stock. These shares are issued from our treasury share account. Withheld to Cover Program In addition to the plans above, we also have in place a "withheld to cover" program, which allows us to withhold ordinary shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share based equity awards under the KBR Stock and Incentive Plan. The table below presents information on our share repurchases activity under these programs: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Shares Average Price per Share Dollars in Millions Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 250,000 $ 16.92 $ 4 746,440 $ 15.72 $ 12 Repurchases under the existing share maintenance programs — — — 466,974 15.43 7 Withheld to cover shares 7,868 17.85 — 163,274 16.97 3 Total 257,868 $ 16.94 $ 4 1,376,688 $ 15.77 $ 22 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Number of Shares Average Price per Share Dollars in Millions Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 175,522 $ 20.78 $ 4 3,149,151 $ 26.89 $ 85 Repurchases under the existing share maintenance programs 125,078 20.78 2 587,970 26.13 15 Withheld to cover shares 6,222 22.11 — 73,050 27.76 2 Total 306,822 $ 20.81 $ 6 3,810,171 $ 26.79 $ 102 |
Financial Instruments And Risk
Financial Instruments And Risk Management Financial Instruments And Risk Management | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Concentration of Risk | Financial Instruments and Risk Management Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of September 30, 2015 , the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $56 million , all of which had durations of 33 days or less. We also had approximately $16 million (notional value) of cash flow hedges of up to 27 months in duration. The fair value of our balance sheet and cash flow hedges included in "other current assets" on our condensed consolidated balance sheets was less than $1 million and $3 million at September 30, 2015 and December 31, 2014 , respectively. The fair value of our balance sheet and cash flow hedges included in "other current liabilities" on our condensed consolidated balance sheets is $2 million and $7 million at September 30, 2015 and December 31, 2014 , respectively. These fair values of our derivatives are considered Level 2 under ASC 820 - Fair Value Measurement as they are based on quoted prices directly observable in active markets. The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "other non-operating income" on our condensed consolidated statements of operations. September 30, December 31, Gains (losses) dollars in millions 2015 2014 Balance sheet hedges - fair value $ (37 ) $ (47 ) Balance sheet position - remeasurement 49 47 Net $ 12 $ — |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On February 18, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis. The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require us to revise our documentation regarding the consolidation or deconsolidation of such VIEs. This ASU is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We are in the process of assessing the impact of the adoption of ASU 2015-02 on our financial statements. On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. This ASU provides guidance on management's responsibility to evaluate whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. Substantial doubt exists when relevant conditions and events indicate that it is probable that the entity will be unable to meet its obligations as they become due within the time frame specified earlier. This ASU is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU 2014-15 is not expected to have a material impact on our financial statements. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2018 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. We are in the process of assessing the impact of the adoption of ASU 2014-09 on our financial statements. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Description Of Company And Si25
Description Of Company And Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of Consolidation Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities ("VIEs") of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 7 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. |
Use of estimates | Use of Estimates The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method and cost method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of VIEs • valuation of share-based compensation In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements. |
Gain on Deconsolidation of Subsidiary | Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with the guidance in Accounting Standards Codification ("ASC") 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of all the following: (1) the fair value of any consideration received (2) the fair value of any retained noncontrolling investment in the former subsidiary or group of assets at the date the subsidiary is deconsolidated or the group of assets is derecognized and (3) the carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. |
New Accounting Pronouncements | Service Concession Arrangements On January 24, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-05, Service Concession Arrangements. A service concession arrangement is an arrangement between a public-sector entity and an operating entity under which the operating entity operates the grantor's infrastructure. This ASU specifies that an operating entity should not account for a service concession arrangement within the scope of this ASU as a lease in accordance with ASC 840 - Leases. An operating entity should refer to other ASUs as applicable to account for various aspects of a service concession arrangement. The amendments also specify that the infrastructure used in a service concession agreement should not be recognized as property, plant and equipment of the operating entity. The amendments in this ASU are effective using a modified retrospective approach for annual reporting periods beginning after December 15, 2014 and interim periods within those annual periods. The adoption of ASU 2014-05 on January 1, 2015 did not have a material impact on our financial statements. |
Description Of Company And Si26
Description Of Company And Significant Accounting Policies Additional Balance Sheet Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Additional Balance Sheet Disclosure | The components of “other current liabilities” on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 are presented below: September 30, December 31, Dollars in millions 2015 2014 Reserve for estimated losses on uncompleted contracts (a) $ 54 $ 159 Retainage payable 61 88 Income taxes payable 55 61 Deferred tax liabilities 50 46 Value-added tax payable 27 31 Insurance payable 15 19 Dividend payable 12 12 Other miscellaneous liabilities (b) 52 72 Total other current liabilities $ 326 $ 488 (a) See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts. (b) Included in other current miscellaneous liabilities is $7 million of deferred rent as of September 30, 2015 and December 31, 2014 , respectively. Other Liabilities Included in the "other liabilities" balance on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 is noncurrent deferred rent of $118 million and $128 million , respectively. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents revenues, gross profit, equity in earnings of unconsolidated affiliates and operating income (loss) by reporting segment. Operations by Reportable Segment Three Months Ended Nine Months Ended September 30, September 30, Dollars in millions 2015 2014 2015 2014 Revenues: Technology & Consulting $ 79 $ 94 $ 231 $ 285 Engineering & Construction 828 1,196 2,758 3,546 Government Services 176 178 489 527 Other — — — — Subtotal 1,083 1,468 3,478 4,358 Non-strategic Business 116 189 538 591 Total revenues $ 1,199 $ 1,657 $ 4,016 $ 4,949 Gross profit (loss): Technology & Consulting $ 17 $ 18 $ 57 $ 48 Engineering & Construction 48 46 155 108 Government Services 8 24 3 28 Other — — — — Subtotal 73 88 215 184 Non-strategic Business 14 (58 ) 16 (87 ) Total gross profit (loss) $ 87 $ 30 $ 231 $ 97 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — $ — Engineering & Construction 26 26 87 63 Government Services 9 12 36 55 Other — — — — Subtotal 35 38 123 118 Non-strategic Business — — — — Total equity in earnings of unconsolidated affiliates $ 35 $ 38 $ 123 $ 118 Asset impairment and restructuring charges: Technology & Consulting $ — $ — $ (1 ) $ — Engineering & Construction (13 ) — (25 ) — Government Services — — — — Other (1 ) — (5 ) — Subtotal (14 ) — (31 ) — Non-strategic Business (1 ) — (3 ) — Total asset impairment and restructuring charges $ (15 ) $ — $ (34 ) $ — Segment operating income (loss): Technology & Consulting $ 16 $ 18 $ 53 $ 48 Engineering & Construction 61 58 201 129 Government Services 15 34 34 77 Other (28 ) (42 ) (92 ) (122 ) Subtotal 64 68 196 132 Non-strategic Business 11 (58 ) 39 (87 ) Total segment operating income (loss) $ 75 $ 10 $ 235 $ 45 |
Schedule of Change in Accounting Estimate, Contract Costs | n a particular contract. We generally believe that the recognition of a contract as a loss contract is a significant change in estimate. Activity in our reserve for estimated losses on uncompleted contracts, which is a component of "other current liabilities" on our condensed consolidated balance sheets, was as follows: Dollars in millions Reserve for Estimated Losses Balance at December 31, 2014 $ 159 Changes in estimates on loss projects (7 ) Change due to progress on loss projects (98 ) Balance at September 30, 2015 $ 54 Dollars in millions Reserve for Estimated Losses Balance at December 31, 2013 $ 109 Changes in estimates on loss projects 76 Change due to progress on loss projects (67 ) Balance at September 30, 2014 $ 118 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of our cash and equivalents balance are as follows: September 30, 2015 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 136 $ 298 $ 434 Time deposits 259 6 265 Cash and equivalents held in joint ventures 65 4 69 Total $ 460 $ 308 $ 768 December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 121 $ 330 Time deposits 481 79 560 Cash and equivalents held in joint ventures 71 9 80 Total $ 761 $ 209 $ 970 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows: September 30, 2015 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 68 $ 68 Engineering & Construction 36 411 447 Government Services 2 87 89 Other — 5 5 Subtotal 38 571 609 Non-strategic Business 56 34 90 Total $ 94 $ 605 $ 699 December 31, 2014 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 51 $ 51 Engineering & Construction 45 538 583 Government Services 5 84 89 Other — 3 3 Subtotal 50 676 726 Non-strategic Business 48 73 121 Total $ 98 $ 749 $ 847 |
Percentage-Of-Completion Cont30
Percentage-Of-Completion Contracts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Contractors [Abstract] | |
Schedule Of Unapproved Claims And Change Orders | The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows: Dollars in millions 2015 2014 Amounts included in project estimates-at-completion at January 1, $ 31 $ 115 Changes in estimates-at-completion 48 81 Approved (a) (46 ) (134 ) Amounts included in project estimates-at-completion at September 30, $ 33 $ 62 Amounts recorded in revenues on a percentage-of-completion basis at September 30, $ 32 $ 53 (a) Includes $6 million of adjustments associated with the sale of our Building Group subsidiary in the second quarter of 2015. |
Claims and Accounts Receivabl31
Claims and Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Contracts Receivable, Claims and Uncertain Amounts | The components of our claims and accounts receivable account balance not expected to be collected within the next 12 months are as follows: September 30, December 31, Dollars in millions 2015 2014 Engineering & Construction $ 425 $ 425 Government Services 124 145 Total $ 549 $ 570 |
Equity Method Investments And32
Equity Method Investments And Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of September 30, 2015 and December 31, 2014 are as follows: September 30, December 31, Dollars in millions 2015 2014 Accounts receivable, net of allowance for doubtful accounts $ 10 $ 7 Costs and estimated earnings in excess of billings on uncompleted contracts $ 6 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 52 $ 21 |
Equity In Earnings of Unconsolidated Affiliates [Table Text Block] | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: September 30, December 31, Dollars in millions 2015 2014 Beginning balance $ 151 $ 156 Equity in earnings of unconsolidated affiliates 123 163 Distribution of earnings of unconsolidated affiliates (84 ) (249 ) Advances (10 ) (13 ) Investments (a) 76 — Foreign currency translation adjustments (9 ) (1 ) Other 2 — Balance before reclassification $ 249 $ 56 Reclassification of excess distribution 16 102 Recognition of excess distributions (4 ) (7 ) Ending balance $ 261 $ 151 |
Consolidated Summarized Financial Information | Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture reduced for any unearned revenues on the projects. On the Aspire Defence project, in addition to the maximum exposure to loss indicated in the table below, we have exposure to any losses incurred by the construction or operating joint ventures under their respective subcontract arrangements with the project company. Our exposure is, however, limited to our equity participation in these entities. The Ichthys liquefied natural gas ("LNG") project joint venture executes a project that has a lump sum component; in addition to the maximum exposure to loss indicated in the table below, we have an exposure to losses to the extent of our ownership percentage in the joint venture if the project exceeds the lump sum component. Our maximum exposure to loss on the EBIC Ammonia plant reflects our 65% ownership of the development corporation which owns 25% of the company that consolidates the ammonia plant. We continue to monitor our investment in this joint venture as the profitability of its operations has been impacted by the challenges related to the availability of natural gas feedstock in Egypt. The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. September 30, 2015 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 15 $ 127 $ 15 Ichthys LNG project $ 72 $ 58 $ 72 U.K. Road projects $ 35 $ 11 $ 35 EBIC Ammonia plant (65% interest) $ 37 $ 2 $ 23 December 31, 2014 Dollars in millions Total assets Total liabilities Maximum Aspire Defence project $ 17 $ 118 $ 17 Ichthys LNG project $ 49 $ 35 $ 49 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia plant (65% interest) $ 42 $ 2 $ 26 |
Schedule Of Variable Interest Entities | The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions September 30, 2015 Total assets Total liabilities Gorgon LNG project $ 152 $ 176 Escravos Gas-to-Liquids project $ 15 $ 31 Fasttrax Limited project $ 80 $ 75 Dollars in millions December 31, 2014 Total assets Total liabilities Gorgon LNG project $ 282 $ 309 Escravos Gas-to-Liquids project $ 23 $ 36 Fasttrax Limited project $ 83 $ 81 |
Pension Plans Pension (Tables)
Pension Plans Pension (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost related to pension benefits for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Dollars in millions 2015 2014 United States Int’l United States Int’l Components of net periodic benefit cost Service cost $ — $ — $ — $ 1 Interest cost 1 19 1 23 Expected return on plan assets — (24 ) (1 ) (26 ) Recognized actuarial loss 1 11 1 10 Net periodic benefit cost $ 2 $ 6 $ 1 $ 8 Nine Months Ended September 30, Dollars in millions 2015 2014 United States Int’l United States Int’l Components of net periodic benefit cost Service cost $ — $ 1 $ — $ 2 Interest cost 2 57 2 68 Expected return on plan assets (2 ) (73 ) (3 ) (78 ) Recognized actuarial loss 4 33 3 29 Net periodic benefit cost $ 4 $ 18 $ 2 $ 21 |
Income Per Share (Tables)
Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding | A reconciliation of the number of shares used for the basic and diluted income (loss) per share calculations is as follows: Three Months Ended Nine Months Ended September 30, September 30, Shares in millions 2015 2014 2015 2014 Basic weighted average common shares outstanding 144 145 144 145 Stock options and restricted shares — — — — Diluted weighted average common shares outstanding 144 145 144 145 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity Activities | The following tables summarize our activity in shareholders’ equity: Dollars in millions Total PIC Retained Earnings Treasury Stock AOCL NCI Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) Acquisition of noncontrolling interest (40 ) (40 ) — — — — Share-based compensation 14 14 — — — — Common stock issued upon exercise of stock options 1 1 — — — — Dividends declared to shareholders (35 ) — (35 ) — — — Repurchases of common stock (22 ) — — (22 ) — — Issuance of ESPP shares 5 — — 5 — — Distributions to noncontrolling interests (21 ) — — — — (21 ) Net income 178 — 161 — — 17 Other comprehensive income (loss), net of tax (41 ) — — — (44 ) 3 Balance at September 30, 2015 $ 974 $ 2,066 $ 565 $ (729 ) $ (920 ) $ (8 ) Dollars in millions Total PIC Retained Treasury AOCL NCI Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (35 ) — (35 ) — — — Repurchases of common stock (102 ) — — (102 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (49 ) — — — — (49 ) Net income (loss) 33 — (21 ) — — 54 Other comprehensive income, net of tax (3 ) — — — (4 ) 1 Balance at September 30, 2014 $ 2,317 $ 2,085 $ 1,692 $ (708 ) $ (744 ) $ (8 ) |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of tax September 30, Dollars in millions 2015 2014 Accumulated foreign currency translation adjustments, net of tax of $1 and $(1) $ (280 ) $ (158 ) Pension and post-retirement benefits, net of tax of $(226) and $(214) (638 ) (583 ) Fair value of derivatives, net of tax of $0 and $0 (2 ) (3 ) Total accumulated other comprehensive loss $ (920 ) $ (744 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Other comprehensive income adjustments before reclassifications (77 ) — — (77 ) Amounts reclassified from accumulated other comprehensive income — 32 1 33 Balance at September 30, 2015 $ (280 ) $ (638 ) $ (2 ) $ (920 ) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (28 ) — (1 ) (29 ) Amounts reclassified from accumulated other comprehensive income 1 25 (1 ) 25 Balance at September 30, 2014 $ (158 ) $ (583 ) $ (3 ) $ (744 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications out of accumulated other comprehensive loss, net of tax, by component Nine Months Ended September 30, Dollars in millions 2015 2014 Affected line item on the Condensed Consolidated Statements of Operations Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (37 ) $ (32 ) See (a) below Tax benefit 5 7 Provision for income taxes Net pension and post-retirement benefits $ (32 ) $ (25 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 to our condensed consolidated financial statements for further discussion. |
Share Repurchases (Tables)
Share Repurchases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of shares repurchased | The table below presents information on our share repurchases activity under these programs: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Shares Average Price per Share Dollars in Millions Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 250,000 $ 16.92 $ 4 746,440 $ 15.72 $ 12 Repurchases under the existing share maintenance programs — — — 466,974 15.43 7 Withheld to cover shares 7,868 17.85 — 163,274 16.97 3 Total 257,868 $ 16.94 $ 4 1,376,688 $ 15.77 $ 22 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Number of Shares Average Price per Share Dollars in Millions Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 175,522 $ 20.78 $ 4 3,149,151 $ 26.89 $ 85 Repurchases under the existing share maintenance programs 125,078 20.78 2 587,970 26.13 15 Withheld to cover shares 6,222 22.11 — 73,050 27.76 2 Total 306,822 $ 20.81 $ 6 3,810,171 $ 26.79 $ 102 |
Financial Instruments And Ris37
Financial Instruments And Risk Management Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "other non-operating income" on our condensed consolidated statements of operations. September 30, December 31, Gains (losses) dollars in millions 2015 2014 Balance sheet hedges - fair value $ (37 ) $ (47 ) Balance sheet position - remeasurement 49 47 Net $ 12 $ — |
Description Of Company And Si38
Description Of Company And Significant Accounting Policies (Balance Sheet Additional Disclosure) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||||
Deferred rent | $ 7 | $ 7 | ||
Reserve for estimated losses on uncompleted contracts | 54 | 159 | $ 118 | $ 109 |
Retainage payable | 61 | 88 | ||
Income taxes payable | 55 | 61 | ||
Deferred tax liabilities | 50 | 46 | ||
Value-added tax payable | 27 | 31 | ||
Insurance payable | 15 | 19 | ||
Dividend payable | 12 | 12 | ||
Other miscellaneous liabilities (b) | 52 | 72 | ||
Total other current liabilities | 326 | 488 | ||
Noncurrent deferred rent | $ 118 | $ 128 |
Business Segment Information (S
Business Segment Information (Schedule Of Operations By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,199 | $ 1,657 | $ 4,016 | $ 4,949 |
Gross profit | 87 | 30 | 231 | 97 |
Equity in earnings of unconsolidated affiliates | 35 | 38 | 123 | 118 |
Restructuring Costs and Asset Impairment Charges | 15 | 0 | (34) | 0 |
Operating income | 75 | 10 | 235 | 45 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,083 | 1,468 | 3,478 | 4,358 |
Gross profit | 73 | 88 | 215 | 184 |
Equity in earnings of unconsolidated affiliates | 35 | 38 | 123 | 118 |
Restructuring Costs and Asset Impairment Charges | 14 | 0 | (31) | 0 |
Operating income | 64 | 68 | 196 | 132 |
Operating Segments [Member] | Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Restructuring Costs and Asset Impairment Charges | (1) | 0 | (5) | 0 |
Operating income | (28) | (42) | (92) | (122) |
Operating Segments [Member] | Technology and Consulting [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 79 | 94 | 231 | 285 |
Gross profit | 17 | 18 | 57 | 48 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Restructuring Costs and Asset Impairment Charges | 0 | 0 | (1) | 0 |
Operating income | 16 | 18 | 53 | 48 |
Operating Segments [Member] | Engineering and Construction [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 828 | 1,196 | 2,758 | 3,546 |
Gross profit | 48 | 46 | 155 | 108 |
Equity in earnings of unconsolidated affiliates | 26 | 26 | 87 | 63 |
Restructuring Costs and Asset Impairment Charges | (13) | 0 | (25) | 0 |
Operating income | 61 | 58 | 201 | 129 |
Operating Segments [Member] | Government Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 176 | 178 | 489 | 527 |
Gross profit | 8 | 24 | 3 | 28 |
Equity in earnings of unconsolidated affiliates | 9 | 12 | 36 | 55 |
Restructuring Costs and Asset Impairment Charges | 0 | 0 | 0 | 0 |
Operating income | 15 | 34 | 34 | 77 |
Operating Segments [Member] | Non-strategic Business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 116 | 189 | 538 | 591 |
Gross profit | 14 | (58) | 16 | (87) |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Restructuring Costs and Asset Impairment Charges | (1) | 0 | (3) | 0 |
Operating income | $ 11 | $ (58) | $ 39 | $ (87) |
Business Segment Information Bu
Business Segment Information Business Segment Information Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Changes in Estimates at Completion | $ 48 | $ 81 | ||
Other Current Liabilities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Severance Costs | 9 | $ 21 | ||
Severance Cost, Additional | $ 11 | |||
Severance payments | $ (23) |
Business Segment Information Sc
Business Segment Information Schedule of Changes in Estimates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Accounting Estimate [Line Items] | ||||||
Reserve for estimated losses on uncompleted contracts | $ 54 | $ 118 | $ 54 | $ 118 | $ 159 | $ 109 |
Changes in Estimates at Completion | 48 | 81 | ||||
Initial Changes [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Reserve for estimated losses on uncompleted contracts | (7) | 76 | (7) | 76 | ||
Amortization of Loss Provision [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Reserve for estimated losses on uncompleted contracts | (98) | (67) | (98) | (67) | ||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Reserve for estimated losses on uncompleted contracts | 2 | 2 | 53 | |||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | Unfavorable [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Changes in Estimates at Completion | $ 80 | |||||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | Favorable [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Changes in Estimates at Completion | 4 | $ 2 | 21 | |||
Power Projects [Member] | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Reserve for estimated losses on uncompleted contracts | $ 41 | $ 41 | $ 80 |
Business Segment Information Pr
Business Segment Information Prior Period Adjustment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Prior Period Adjustment [Abstract] | |
Impact Of Correction of Prior Period Error on Net Income | $ 15 |
Business Segment Information Di
Business Segment Information Dispositions (Details) - Building Group Subsidiary [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from Divestiture of Businesses | $ 23 |
Disposal Group, Not Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 27 |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 768 | $ 970 | $ 1,048 | $ 1,106 |
Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 434 | 330 | ||
Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 265 | 560 | ||
Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 69 | 80 | ||
International [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 460 | 761 | ||
International [Member] | Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 136 | 209 | ||
International [Member] | Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 259 | 481 | ||
International [Member] | Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 65 | 71 | ||
Domestic [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 308 | 209 | ||
Domestic [Member] | Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 298 | 121 | ||
Domestic [Member] | Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 6 | 79 | ||
Domestic [Member] | Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 4 | $ 9 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | $ 609 | $ 726 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 571 | 676 |
Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 38 | 50 |
Technology and Consulting [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 68 | 51 |
Technology and Consulting [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 68 | 51 |
Technology and Consulting [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 447 | 583 |
Engineering and Construction [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 411 | 538 |
Engineering and Construction [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 36 | 45 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 89 | 89 |
Government Services [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 87 | 84 |
Government Services [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 2 | 5 |
Other Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 5 | 3 |
Other Segment [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 5 | 3 |
Other Segment [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Non-strategic Business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 90 | 121 |
Non-strategic Business [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 34 | 73 |
Non-strategic Business [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 56 | 48 |
Operating Segments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 699 | 847 |
Operating Segments [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 605 | 749 |
Operating Segments [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 94 | 98 |
Other Assets [Member] | Non-strategic Business [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non current | $ 1 | $ 14 |
Costs and Estimated Earnings in
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts CIE (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 284 | $ 490 |
Operating Segments [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 281 | 468 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 32 | 38 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 159 | 357 |
Operating Segments [Member] | Government Services [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 90 | 73 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 3 | $ 22 |
Costs and Estimated Earnings 47
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts BIE (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Billings in Excess of Cost | $ 500 | $ 531 |
Operating Segments [Member] | ||
Billings in Excess of Cost | 407 | 361 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Billings in Excess of Cost | 65 | 56 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Billings in Excess of Cost | 252 | 212 |
Operating Segments [Member] | Government Services [Member] | ||
Billings in Excess of Cost | 90 | 93 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Billings in Excess of Cost | $ 93 | $ 170 |
Percentage-Of-Completion Cont48
Percentage-Of-Completion Contracts (Schedule Of Unapproved Claims And Change Orders) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unapproved Change Orders And Claims Recorded In Revenues | $ 32 | $ 53 | ||
Unapproved change orders | 33 | 62 | $ 31 | $ 115 |
Changes in Estimates at Completion | 48 | 81 | ||
Change Orders Approved by Customer | (46) | (134) | ||
Engineering and Construction [Member] | ||||
Change Orders Approved by Customer | (6) | |||
Parent Share of Probable Unapproved Claims of Unconsolidated Subsidiary [Member] | ||||
Unapproved change orders | $ 59 | $ 84 |
Percentage-Of-Completion Cont49
Percentage-Of-Completion Contracts (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Liquidated damages | $ 6 | $ 12 |
Claims and Accounts Receivabl50
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 549 | $ 570 |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | 425 | 425 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | 124 | $ 145 |
Claims and Account Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 401 |
Equity Method Investments And51
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Beginning Balance [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | $ 151 | $ 156 | |
Joint Venture Earnings [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | $ 123 | 163 | |
Dividends Paid by Joint Venture [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | (84) | (249) | |
Advances [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | (10) | (13) | |
New Investments [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | 76 | 0 | |
Cumulative Translation Adjustment [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | (9) | (1) | |
Other Activity [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | 2 | 0 | |
Subtotal Before Reclassification [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | 249 | 56 | |
Reclassification of excess distribution [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | 16 | 102 | |
Recognition of Excess Distribution [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | (4) | (7) | |
Ending Balance [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Equity Method Investments | $ 261 | $ 151 | |
EBIC Ammonia Plant [Member] | Parent Company [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Ownership Percentage In Development Corporation Which Has Minority Interest In Company That Consolidates VIE | 65.00% | ||
EBIC Ammonia Plant [Member] | Development Corporation [Member] | |||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||
Ownership Percentage Of Development Corporation In Company That Consolidates VIE | 25.00% |
Equity Method Investments And52
Equity Method Investments And Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Equity Method Investments | $ 15 | $ 0 | ||
Noncontrolling Interest in Variable Interest Entity | $ 40 | |||
Payment to Partner | $ 8 | |||
Brown & Root Industrial Services JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
EBIC Ammonia Plant [Member] | Parent Company [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership Percentage In Development Corporation Which Has Minority Interest In Company That Consolidates VIE | 65.00% | 65.00% | ||
EBIC Ammonia Plant [Member] | Development Corporation [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership Percentage Of Development Corporation In Company That Consolidates VIE | 25.00% | 25.00% | ||
Industrial Services Business [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from Divestiture of Businesses | $ 48 | |||
Canadian Pipe Fabrication Business [Member] | EPIC Piping LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Equity Method Investments | 15 | |||
Disposal Group, Not Discontinued Operations [Member] | Industrial Services Business [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 7 | |||
EPIC Piping [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ 20 | 20 | ||
Brown & Root Industrial Services JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 58 | $ 58 | ||
Contract Termination [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on Early Lease Termination | 9 | |||
ERP [Member] | Facility Closing [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other Asset Impairment Charges | $ 5 |
Equity Method Investments And53
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items] | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 284 | $ 284 | $ 490 | ||
Transactions with Related Parties [Member] | |||||
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items] | |||||
Revenue from Related Parties | 96 | $ 84 | 223 | $ 228 | |
Due from Related Parties, Current | 10 | 10 | 7 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 6 | 6 | 2 | ||
Billings in Excess of Cost | $ 52 | $ 52 | $ 21 |
Equity Method Investments And54
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Parent Company [Member] | EBIC Ammonia Plant [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage In Development Corporation Which Has Minority Interest In Company That Consolidates VIE | 65.00% | |
Development Corporation [Member] | EBIC Ammonia Plant [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage Of Development Corporation In Company That Consolidates VIE | 25.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Aspire Defence Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Unconsolidated VIEs, Total assets | $ 15 | $ 17 |
Unconsolidated VIEs, Total liabilities | 127 | 118 |
Maximum exposure to loss | 15 | 17 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Ichthys LNG Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Unconsolidated VIEs, Total assets | 72 | 49 |
Unconsolidated VIEs, Total liabilities | 58 | 35 |
Maximum exposure to loss | 72 | 49 |
Variable Interest Entity, Not Primary Beneficiary [Member] | U.K. Road Projects [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Unconsolidated VIEs, Total assets | 35 | 34 |
Unconsolidated VIEs, Total liabilities | 11 | 11 |
Maximum exposure to loss | 35 | 34 |
Variable Interest Entity, Not Primary Beneficiary [Member] | EBIC Ammonia Plant [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Unconsolidated VIEs, Total assets | 37 | 42 |
Unconsolidated VIEs, Total liabilities | 2 | 2 |
Maximum exposure to loss | 23 | 26 |
Variable Interest Entity, Primary Beneficiary [Member] | Gorgon LNG Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 152 | 282 |
Consolidated VIEs, Total liabilities | 176 | 309 |
Variable Interest Entity, Primary Beneficiary [Member] | Escravos Gas-To-Liquids Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 15 | 23 |
Consolidated VIEs, Total liabilities | 31 | 36 |
Variable Interest Entity, Primary Beneficiary [Member] | Fasttrax Limited Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 80 | 83 |
Consolidated VIEs, Total liabilities | $ 75 | $ 81 |
Pension and Postretirement Plan
Pension and Postretirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
United States Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | 0 | (1) | (2) | (3) |
Recognized actuarial loss | 1 | 1 | 4 | 3 |
Defined Benefit Plan, Net Periodic Benefit Cost | 2 | 1 | 4 | 2 |
Contributions by employer | 5 | |||
International Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 1 | 2 |
Interest cost | 19 | 23 | 57 | 68 |
Expected return on plan assets | (24) | (26) | (73) | (78) |
Recognized actuarial loss | 11 | 10 | 33 | 29 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 6 | $ 8 | 18 | $ 21 |
Contributions by employer | 32 | |||
Estimated future employer contributions in next fiscal year | $ 43 |
Debt And Other Credit Facilit56
Debt And Other Credit Facilities (Details) £ in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2015GBP (£) | Sep. 25, 2015USD ($) | Dec. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | ||||
Amounts advanced bear interest at variable rates | Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i) the London interbank offered rate (“LIBOR”) plus an applicable margin of 1.375% to 1.75%, or (ii) a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters, except for the period ended September 30, 2015, for which the prior three fiscal quarters are utilized, as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. | |||
Nonrecourse project debt | $ 56 | $ 63 | ||
Debt To EBITDA Ratio [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility terms | 3.5 to 1 | |||
Maximum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR applicable margin | 1.75% | |||
AdditionalAggregateCommitmentsIncreaseLimit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 500 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000 | |||
Percent added to federal fund rate | 0.50% | |||
Percent added to LIBOR | 1.00% | |||
Percentage of LIBOR applicable margin for performance letters of credit | 50.00% | |||
Letter of credit fee charged on issuance | 0.125% | |||
Minimum consolidated net worth base in addition to certain percentage of consolidated net income and increase in shareholders' equity attributable to the sale of equity interests | $ 1,200 | |||
Consolidated net income percentage | 50.00% | 50.00% | ||
Increase in shareholders' equity attributable to the sale of equity securities percentage | 100.00% | 100.00% | ||
Additional amount of equity repurchases allowed under Credit Agreement pending the resolution of PEMEX litigation. | $ 400 | |||
Remaining availability under equity repurchase distribution cap | $ 750 | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base rate applicable margin | 0.75% | |||
Letter of credit fronting commitments | 0.25% | |||
Principal amount of of additional indebtedness parent company may incur under Credit Agreement provisions | $ 200 | |||
Principal amount of unsecured indebtedness our subsidiaries may incur under Credit Agreement provisions | 200 | |||
Base dollar amount of share and equity repurchases cap | $ 750 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR applicable margin | 1.375% | |||
Base rate applicable margin | 0.375% | |||
Letter of credit fronting commitments | 0.225% | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | $ 130 | |||
Nonrecourse Project Finance Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||
Number of heavy equipment transporters | 91 | |||
Number of heavy equipment transporters, term period, in years | 22 years | |||
United Kingdom, Pounds | Nonrecourse Project Finance Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Non-recourse debt bridge financing | £ | £ 12.2 | |||
Fasttrax Limited Project [Member] | United States of America, Dollars | Nonrecourse Project Finance Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Nonrecourse project debt | $ 120 | |||
Non-recourse debt bridge financing | 17 | |||
Class A 3.5% Index Linked Bonds [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | 79 | |||
Class A 3.5% Index Linked Bonds [Member] | United Kingdom, Pounds | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | £ | 56 | |||
Class B 5.9% Fixed Rate Bonds [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | $ 24 | |||
Class B 5.9% Fixed Rate Bonds [Member] | United Kingdom, Pounds | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | £ | 16.7 | |||
Nonrecourse project debt | £ | £ 84.9 |
Debt And Other Credit Facilit57
Debt And Other Credit Facilities (Consolidated amount of non-recourse project-finance debt of a VIE) (Details) £ in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($) | Sep. 30, 2015GBP (£) | |
Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Guaranteed secured bonds, percentage | 3.50% | 3.50% |
Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Guaranteed secured bonds, percentage | 5.90% | 5.90% |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated notes payable, interest rate | 11.25% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated notes payable, interest rate | 16.00% | |
United Kingdom, Pounds | Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | £ 56 | |
United Kingdom, Pounds | Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | £ 16.7 | |
United States of America, Dollars | Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | $ | $ 79 | |
United States of America, Dollars | Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | $ | $ 24 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate on income from operations | 24.00% | (2.00%) | 26.00% | 48.00% | |
Effective income tax rate, estimated | 25.00% | ||||
U.S. statutory federal rate, expected (benefit) provision | 35.00% | ||||
U.S. taxes on foreign unremitted earnings | (5.00%) | ||||
Noncontrolling interests | (9.00%) | ||||
Deferred Tax Assets, Valuation Allowance | $ 478 | $ 478 | $ 538 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (48) | $ 3 | (60) | $ 35 | |
Liability for Uncertain Tax Positions, Noncurrent | 253 | 253 | $ 228 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized Tax Benefits, Period Increase (Decrease) | 18 | 57 | 25 | 57 | |
Unrecognized Tax Benefits, Other | 43 | 43 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 16 | 5 | $ 16 | $ 5 | |
Discrete Income Tax Benefit | $ 62 |
Income Per Share (Schedule Of B
Income Per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | $ 0.5 | $ 0 | $ 1.4 | $ 0 |
Basic weighted average common shares outstanding | 144 | 145 | 144 | 145 |
Stock options and restricted shares | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding | 144 | 145 | 144 | 145 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | $ 0.5 | $ 0 | $ 1.4 | $ 0 |
Antidilutive weighted average shares | 3,600 | 3,400 | 3,630 | 2,800 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) $ in Millions | Mar. 24, 2015USD ($) | Apr. 30, 2008USD ($) | Sep. 30, 2015USD ($)lawsuits | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2013USD ($) | Sep. 30, 2015USD ($)lawsuitsdefendent | Sep. 30, 2014USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2009lawsuits |
United States Government Contract Work [Line Items] | |||||||||||||
Contracts Revenue | $ 1,199 | $ 1,657 | $ 4,016 | $ 4,949 | |||||||||
Retainage payable | 61 | $ 88 | 61 | ||||||||||
Unapproved claims included in accounts receivables related to various government contracts where costs have exceeded the customer's funded value of task orders | 549 | 570 | 549 | ||||||||||
Amount of unapproved claims related to de-obligation of funding | 284 | 490 | 284 | ||||||||||
All Defense Contract Audit Agency Audit Issues [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 174 | 188 | 174 | ||||||||||
Government Contract Receivable | 83 | 96 | 83 | ||||||||||
Loss Contingency, Estimate of Possible Loss | 26 | 25 | 26 | ||||||||||
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise | 32 | 32 | 32 | ||||||||||
Private Security [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 56 | 56 | |||||||||||
Contracts Revenue | 11 | ||||||||||||
Government Contract Receivable | 45 | 45 | |||||||||||
Containers [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 51 | 51 | |||||||||||
Contracts Revenue | 25 | ||||||||||||
Government Contract Receivable | 26 | 26 | |||||||||||
Retainage payable | 30 | 30 | |||||||||||
CONCAP III [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 25 | 25 | |||||||||||
Contracts Revenue | 15 | ||||||||||||
Government Contract Receivable | 10 | 10 | |||||||||||
Amount Of Costs Deemed Unallowable | 15 | ||||||||||||
All Other Issues [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 42 | 42 | |||||||||||
Contracts Revenue | 40 | ||||||||||||
Government Contract Receivable | 2 | 2 | |||||||||||
NonForm1Issues [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 11 | 11 | |||||||||||
Loss Contingency, Estimate of Possible Loss | 4 | 4 | |||||||||||
Audits [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | 46,000 | 46,000 | |||||||||||
Loss Contingency, Estimate of Possible Loss | 21 | $ 21 | |||||||||||
DisallowanceRate | 0.10% | ||||||||||||
Litigation Settlement, Amount | $ (41) | ||||||||||||
OpenAudits [Member] [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | $ 1,000 | 1,000 | |||||||||||
NegotiationsOpen [Member] [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Litigation Settlement, Amount | (36) | ||||||||||||
First Kuwaiti Trading Company Arbitration [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Total judgment on Sodium Dichromate | $ 3 | $ 134 | |||||||||||
AmountOwedToSubcontractor | $ 30 | ||||||||||||
PaymentsOnContractWork | $ 4 | $ 15 | 4 | ||||||||||
Damages awarded, value | $ 17 | ||||||||||||
Burn Pit Litigation [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Loss Contingency, Pending Claims, Number | lawsuits | 50 | 50 | |||||||||||
Sodium Dichromate Litigation [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Contract Termination Claims, US Federal Government | $ 30 | $ 30 | |||||||||||
Total judgment on Sodium Dichromate | $ 81 | ||||||||||||
Loss Contingency, Pending Claims, Number | lawsuits | 2 | 2 | 5 | ||||||||||
Loss Contingency, Number of Plaintiffs | 170 | ||||||||||||
Legal Fees | $ 30 | ||||||||||||
Damages awarded, value | $ 6 | $ 10 | $ 75 | $ 75 | |||||||||
qui tams [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
qui tam government joined | lawsuits | 1 | 1 | |||||||||||
Legal Fees | $ 14 | ||||||||||||
DOJFCA [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Loss Contingency, Number of Defendants | defendent | 3 | ||||||||||||
Claims [Member] | |||||||||||||
United States Government Contract Work [Line Items] | |||||||||||||
Government Contract Receivable | $ 142 | $ 142 | |||||||||||
Unapproved claims included in accounts receivables related to various government contracts where costs have exceeded the customer's funded value of task orders | 124 | 124 | |||||||||||
Amount of unapproved claims related to de-obligation of funding | $ 18 | $ 18 |
Other Commitments And Conting62
Other Commitments And Contingencies (Other) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2004 | Sep. 30, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Performance Bond Recovery Including Interest | $ 26 | ||||
Claims receivable | $ 549 | $ 570 | |||
Pemex [Member] | |||||
Loss Contingencies [Line Items] | |||||
Outstanding performance bonds by enterprise | 80 | ||||
Payment on performance bonds | 108 | ||||
Customer's arbitration claim | $ 157 | ||||
Amount of arbitration claim filed by enterprise | $ 323 | ||||
Amount awarded to enterprise in arbitration | $ 351 | ||||
Amount of counterclaims awarded to project owner in arbitration | 6 | ||||
Gain recognized | $ 117 | ||||
Amount of judgment awarded to enterprise | 465 | ||||
Performance Bond Recovery Including Interest | 106 | ||||
PaymentOnPerformanceBondsOther | $ 2 | ||||
Claims and Account Receivable [Member] | |||||
Loss Contingencies [Line Items] | |||||
Claims receivable | $ 401 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shareholders Equity [Line Items] | ||||
Beginning Balance | $ 935 | $ 2,439 | ||
Acquisition of noncontrolling interest | (40) | |||
Stock-based compensation | 14 | 16 | ||
Common stock issued upon exercise of stock options | 1 | 4 | ||
Dividends declared to shareholders | (35) | (35) | ||
Repurchases of common stock | (22) | (102) | ||
Issuance of ESPP shares | 5 | 4 | ||
Investments by noncontrolling interests | 10 | |||
Distributions to noncontrolling interests | (21) | (49) | ||
Net income (loss) | $ 59 | $ 45 | 178 | 33 |
Other comprehensive income (loss), net of tax | (2) | (42) | (41) | (3) |
Ending Balance | 974 | 2,317 | 974 | 2,317 |
Cumulative translation adjustments | 1 | (1) | 1 | (1) |
Pension liability adjustments | (226) | (214) | (226) | (214) |
Unrealized gains (losses) on derivatives | 0 | 0 | 0 | 0 |
Additional Paid-in Capital [Member] | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | 2,091 | 2,065 | ||
Acquisition of noncontrolling interest | (40) | |||
Stock-based compensation | 14 | 16 | ||
Common stock issued upon exercise of stock options | 1 | 4 | ||
Dividends declared to shareholders | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Issuance of ESPP shares | 0 | 0 | ||
Investments by noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending Balance | 2,066 | 2,085 | 2,066 | 2,085 |
Retained Earnings [Member] | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | 439 | 1,748 | ||
Acquisition of noncontrolling interest | 0 | |||
Stock-based compensation | 0 | 0 | ||
Common stock issued upon exercise of stock options | 0 | 0 | ||
Dividends declared to shareholders | (35) | (35) | ||
Repurchases of common stock | 0 | 0 | ||
Issuance of ESPP shares | 0 | 0 | ||
Investments by noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | ||
Net income (loss) | 161 | (21) | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending Balance | 565 | 1,692 | 565 | 1,692 |
Treasury Stock [Member] | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | (712) | (610) | ||
Acquisition of noncontrolling interest | 0 | |||
Stock-based compensation | 0 | 0 | ||
Common stock issued upon exercise of stock options | 0 | 0 | ||
Dividends declared to shareholders | 0 | 0 | ||
Repurchases of common stock | (22) | (102) | ||
Issuance of ESPP shares | 5 | 4 | ||
Investments by noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending Balance | (729) | (708) | (729) | (708) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | (876) | (740) | ||
Acquisition of noncontrolling interest | 0 | |||
Stock-based compensation | 0 | 0 | ||
Common stock issued upon exercise of stock options | 0 | 0 | ||
Dividends declared to shareholders | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Issuance of ESPP shares | 0 | 0 | ||
Investments by noncontrolling interests | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | (44) | (4) | ||
Ending Balance | (920) | (744) | (920) | (744) |
Noncontrolling Interests [Member] | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | (7) | (24) | ||
Acquisition of noncontrolling interest | 0 | |||
Stock-based compensation | 0 | 0 | ||
Common stock issued upon exercise of stock options | 0 | 0 | ||
Dividends declared to shareholders | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Issuance of ESPP shares | 0 | 0 | ||
Investments by noncontrolling interests | 10 | |||
Distributions to noncontrolling interests | (21) | (49) | ||
Net income (loss) | 17 | 54 | ||
Other comprehensive income (loss), net of tax | 3 | 1 | ||
Ending Balance | $ (8) | $ (8) | $ (8) | $ (8) |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (876) | $ (740) | ||
Other comprehensive income adjustments before reclassifications | (77) | (29) | ||
Amounts reclassified from accumulated other comprehensive income | 33 | 25 | ||
Ending balance | (920) | (744) | ||
Accumulated foreign currency translation adjustments, net of tax of $1 and $(1) | $ (280) | $ (158) | ||
Pension and post-retirement benefits, net of tax of $(226) and $(214) | (638) | (583) | ||
Fair value of derivatives, net of tax of $0 and $0 | (2) | (3) | ||
Total accumulated other comprehensive loss | (876) | (740) | (920) | (744) |
Accumulated foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (203) | (131) | ||
Other comprehensive income adjustments before reclassifications | (77) | (28) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 1 | ||
Ending balance | (280) | (158) | ||
Total accumulated other comprehensive loss | (203) | (131) | (280) | (158) |
Accumulated pension liability adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (670) | (608) | ||
Other comprehensive income adjustments before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 32 | 25 | ||
Ending balance | (638) | (583) | ||
Total accumulated other comprehensive loss | (670) | (608) | (638) | (583) |
Changes in fair value of derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (3) | (1) | ||
Other comprehensive income adjustments before reclassifications | 0 | (1) | ||
Amounts reclassified from accumulated other comprehensive income | 1 | (1) | ||
Ending balance | (2) | (3) | ||
Total accumulated other comprehensive loss | $ (3) | $ (1) | $ (2) | $ (3) |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax expense (benefit) | $ (19) | $ 1 | $ (61) | $ (30) |
Amortization of income | $ 78 | $ 44 | 239 | 63 |
Accumulated pension liability adjustments | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax expense (benefit) | (5) | (7) | ||
Amortization of income | (37) | (32) | ||
Net pension and post-retirement benefits | $ (32) | $ (25) |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased under the authorization | 257,868 | 306,822 | 1,376,688 | 3,810,171 | |
Treasury Stock Acquired, Average Cost Per Share | $ 16.94 | $ 20.81 | $ 15.77 | $ 26.79 | |
Stock Repurchased During Period, Value | $ 4 | $ 6 | $ 22 | $ 102 | |
Share Repurchase Program Twenty Fourteen [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 350 | ||||
Number of shares repurchased under the authorization | 250,000 | 175,522 | 746,440 | 3,149,151 | |
Treasury Stock Acquired, Average Cost Per Share | $ 16.92 | $ 20.78 | $ 15.72 | $ 26.89 | |
Stock Repurchased During Period, Value | $ 4 | $ 4 | $ 12 | $ 85 | |
Share Maintenance Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased under the authorization | 0 | 125,078 | 466,974 | 587,970 | |
Treasury Stock Acquired, Average Cost Per Share | $ 0 | $ 20.78 | $ 15.43 | $ 26.13 | |
Stock Repurchased During Period, Value | $ 0 | $ 2 | $ 7 | $ 15 | |
Shares Withheld to Cover [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased under the authorization | 7,868 | 6,222 | 163,274 | 73,050 | |
Treasury Stock Acquired, Average Cost Per Share | $ 17.85 | $ 22.11 | $ 16.97 | $ 27.76 | |
Stock Repurchased During Period, Value | $ 0 | $ 0 | $ 3 | $ 2 |
Financial Instruments And Ris67
Financial Instruments And Risk Management Financial Instruments And Risk Management (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Interest Rate Derivatives, at Fair Value, Net | $ (37) | $ (47) |
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 49 | 47 |
Derivative Asset | 3 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 12 | 0 |
Maximum length of time hedged in balance sheet hedge | 33 days | |
Maximum Length of Time Hedged in Cash Flow Hedge | 27 days | |
Derivative Liability | $ 2 | $ 7 |
Balance Sheet Hedge [Member] | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Derivative, Notional Amount | 56 | |
Cash Flow Hedging [Member] | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Cash flow hedge | 16 | |
Maximum [Member] | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Derivative Asset | $ 1 |