Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Registrant Name | KBR, INC. | ||
Entity Central Index Key | 1,357,615 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2.8 | ||
Entity Common Stock, Shares Outstanding | 142,177,753 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KBR |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 5,096 | $ 6,366 | $ 7,214 |
Cost of revenues | (4,771) | (6,431) | (6,797) |
Gross profit (loss) | 325 | (65) | 417 |
Equity in earnings of unconsolidated affiliates | 149 | 163 | 137 |
General and administrative expenses | (155) | (239) | (248) |
Impairment of goodwill | 0 | (446) | 0 |
Asset Impairment and Restructuring Costs Charges | (70) | (214) | 0 |
Gain on disposition of assets | 61 | 7 | 2 |
Operating income (loss) | 310 | (794) | 308 |
Other non-operating income (expense) | 2 | 17 | (8) |
Income (loss) before income taxes and noncontrolling interests | 312 | (777) | 300 |
Provision for income taxes | (86) | (421) | (129) |
Net income (loss) | 226 | (1,198) | 171 |
Net income (loss) attributable to noncontrolling interests | (23) | (64) | (96) |
Net income (loss) attributable to KBR | $ 203 | $ (1,262) | $ 75 |
Earnings Per Share [Abstract] | |||
Basic | $ 1.40 | $ (8.66) | $ 0.50 |
Diluted | $ 1.40 | $ (8.66) | $ 0.50 |
Basic weighted average common shares outstanding | 144 | 146 | 148 |
Diluted weighted average common shares outstanding | 144 | 146 | 149 |
Cash dividends declared per share | $ 0.32 | $ 0.32 | $ 0.24 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 226 | $ (1,198) | $ 171 |
Net cumulative translation adjustments (CTA)[Abstract] | |||
Foreign currency translation adjustments, net of tax | (68) | (71) | (35) |
Reclassification adjustment included in net income | 4 | 1 | 1 |
Foreign currency translation adjustments, net of tax of $(3), $4 and $27 | (64) | (70) | (34) |
Actuarial gains (losses), net of tax | 71 | (96) | (115) |
Reclassification adjustment included in net income | 39 | 34 | 28 |
Pension and post-retirement benefits, net of taxes of $(22), $10 and $18 | 110 | (62) | (87) |
Changes in fair value of derivatives | |||
Changes in fair value of derivatives, net of tax | 0 | (2) | 1 |
Reclassification adjustment included in net income | 1 | 0 | (1) |
Changes in fair value of derivatives, net of taxes of $0, $0 and $0 | 1 | (2) | 0 |
Other comprehensive income (loss), net of tax | 47 | (134) | (121) |
Comprehensive income (loss) | 273 | (1,332) | 50 |
Less: Comprehensive income attributable to noncontrolling interests | (25) | (66) | (105) |
Comprehensive income (loss) attributable to KBR | $ 248 | $ (1,398) | $ (55) |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
CTA, taxes | $ (3) | $ 4 | $ 27 |
Pension liability adjustment, taxes | (22) | 10 | 18 |
Net unrealized gain (loss) on derivatives, tax | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and equivalents | $ 883 | $ 970 |
Receivables: | ||
Accounts receivable, net of allowance for bad debts of $17 and $19 | 628 | 847 |
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 224 | 490 |
Other current assets | 109 | 147 |
Total current assets | 1,844 | 2,454 |
Claims and accounts receivable | 526 | 570 |
Property, plant, and equipment, net of accumulated depreciation of $352 and $385 (including net PPE of $48 and $57 owned by a variable interest entity) | 169 | 247 |
Goodwill | 324 | 324 |
Intangible assets, net of accumulated amortization of $91 million and $96 million | 35 | 41 |
Equity in and advances to unconsolidated affiliates | 281 | 151 |
Deferred income taxes | 99 | 143 |
Other assets | 134 | 148 |
Total assets | 3,412 | 4,078 |
Current liabilities: | ||
Accounts payable | 438 | 742 |
Payable to former parent | 19 | 56 |
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 509 | 531 |
Accrued salaries, wages and benefits | 173 | 197 |
Nonrecourse project debt | 10 | 10 |
Other current liabilities | 263 | 442 |
Total current liabilities | 1,412 | 1,978 |
Pension obligations | 333 | 502 |
Employee compensation and benefits | 105 | 112 |
Income tax payable | 78 | 69 |
Deferred income taxes | 94 | 95 |
Nonrecourse project debt | 51 | 63 |
Deferred income from unconsolidated affiliates | 100 | 95 |
Other liabilities | 187 | 229 |
Total liabilities | 2,360 | 3,143 |
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, 175,108,100 and 174,448,399 shares issued, and 142,058,356 and 144,837,281 shares outstanding | 0 | 0 |
Paid-in capital in excess of par (PIC) | 2,070 | 2,091 |
Accumulated other comprehensive loss (AOCL) | (831) | (876) |
Retained earnings | 595 | 439 |
Treasury stock, 33,049,744 shares and 29,611,118 shares, at cost | (769) | (712) |
Total KBR shareholders' equity | 1,065 | 942 |
Noncontrolling interests | (13) | (7) |
Total shareholders' equity | 1,052 | 935 |
Total liabilities and shareholders' equity | $ 3,412 | $ 4,078 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables: | ||
Allowance for doubtful debts | $ 19 | |
Property, plant, and equipment: | ||
Accumulated depreciation | $ 352 | 385 |
PP&E owned by a VIE, net | 48 | 57 |
Accumulated amortization | $ 91 | $ 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 | 175,108,100 | 174,448,399 |
Common stock, shares outstanding | 142,058,356 | 144,837,281 |
Treasury stock, shares | 33,049,744 | 29,611,118 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity $ in Millions | USD ($) |
Beginning Balance at Dec. 31, 2012 | $ 2,511 |
Statement of Stockholders' Equity [Abstract] | |
Acquisition of noncontrolling interest | 0 |
Share-based compensation | 16 |
Common stock issued upon exercise of stock options | 6 |
Dividends declared to shareholders | (36) |
Adjustment pursuant to tax sharing agreement | (7) |
Treasury Stock, Value, Acquired, Cost Method | 7 |
Repurchases of common stock | (7) |
Issuance of ESPP shares | 4 |
Investments by noncontrolling interests | 9 |
Distributions to noncontrolling interests | (109) |
Other noncontrolling interest activity | 2 |
Comprehensive income (loss) | 50 |
Ending Balance at Dec. 31, 2013 | 2,439 |
Statement of Stockholders' Equity [Abstract] | |
Acquisition of noncontrolling interest | 0 |
Share-based compensation | 22 |
Common stock issued upon exercise of stock options | 4 |
Dividends declared to shareholders | (47) |
Adjustment pursuant to tax sharing agreement | 0 |
Treasury Stock, Value, Acquired, Cost Method | 106 |
Repurchases of common stock | (106) |
Issuance of ESPP shares | 4 |
Investments by noncontrolling interests | 10 |
Distributions to noncontrolling interests | (61) |
Other noncontrolling interest activity | 2 |
Comprehensive income (loss) | (1,332) |
Ending Balance at Dec. 31, 2014 | 935 |
Statement of Stockholders' Equity [Abstract] | |
Acquisition of noncontrolling interest | (40) |
Share-based compensation | 18 |
Common stock issued upon exercise of stock options | 1 |
Dividends declared to shareholders | (47) |
Adjustment pursuant to tax sharing agreement | 0 |
Treasury Stock, Value, Acquired, Cost Method | 62 |
Repurchases of common stock | (62) |
Issuance of ESPP shares | 5 |
Investments by noncontrolling interests | 0 |
Distributions to noncontrolling interests | (28) |
Other noncontrolling interest activity | (3) |
Comprehensive income (loss) | 273 |
Ending Balance at Dec. 31, 2015 | $ 1,052 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 226 | $ (1,198) | $ 171 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 39 | 72 | 68 |
Equity in earnings of unconsolidated affiliates | (149) | (163) | (137) |
Deferred income tax (benefit) expense | 14 | 353 | 18 |
Gain on disposition of assets | (61) | (7) | (2) |
Other Noncash Income | 0 | (24) | 0 |
Impairment of goodwill | 0 | 446 | 0 |
Other Asset Impairment Charges | 31 | 171 | 0 |
Other | 21 | 11 | 21 |
Changes in operating assets and liabilities: | |||
Receivables | 41 | 170 | 0 |
Costs in Excess of Billings | 224 | (107) | 140 |
Accounts payable | (274) | (10) | 49 |
Billings in Excess of Costs | (2) | 144 | (20) |
Accrued salaries, wages and benefits | (8) | (29) | (14) |
Reserve for loss on uncompleted contracts | (94) | 57 | 53 |
Collection (repayment) of advances from (to) unconsolidated affiliates, net | 10 | 13 | 14 |
Distributions of earnings from unconsolidated affiliates | 92 | 249 | 180 |
Payment on performance bonds | 0 | 0 | (108) |
Income taxes payable | 26 | 14 | (51) |
Pension funding | (48) | (48) | (54) |
Retainage payable | (2) | (16) | (35) |
Subcontractor advances | (12) | (3) | 20 |
Increase (Decrease) in Derivative Assets and Liabilities | (44) | (40) | (22) |
Other, net | 17 | 115 | 6 |
Total cash flows provided by operating activities | 47 | 170 | 297 |
Cash flows from investing activities: | |||
Capital expenditures | (10) | (53) | (78) |
(Investment in) / return equity method joint ventures | (19) | 0 | 0 |
Proceeds from sale of assets and investments | 130 | 9 | 16 |
Total cash flows provided by (used in) investing activities | 101 | (44) | (62) |
Cash flows from financing activities: | |||
Payments to reacquire common stock | (62) | (106) | (7) |
Acquisition of noncontrolling interest | (40) | 0 | 0 |
Investments from noncontrolling interests | 0 | 10 | 9 |
Distributions to noncontrolling interests | (28) | (61) | (109) |
Payments of dividends to shareholders | (47) | (47) | (36) |
Net proceeds from issuance of common stock | 1 | 4 | 6 |
Payments on borrowings | (11) | (11) | (14) |
Other | (5) | 1 | 3 |
Total cash flows used in financing activities | (192) | (210) | (148) |
Effect of exchange rate changes on cash | (43) | (52) | (34) |
Increase (decrease) in cash and equivalents | (87) | (136) | 53 |
Cash and equivalents at beginning of period | 970 | 1,106 | 1,053 |
Cash and equivalents at end of period | 883 | 970 | 1,106 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 10 | 11 | 12 |
Cash paid for income taxes (net of refunds) | 66 | 37 | 127 |
Noncash operating activities | |||
Other assets change for payments made on our behalf by former parent | 0 | 0 | (219) |
Other liabilities change for payments made on our behalf by former parent | 0 | 0 | 219 |
Noncash financing activities | |||
Dividends Payable | $ 12 | $ 12 | $ 12 |
Description Of Company And Sign
Description Of Company And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 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 10 to our 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 consolidated statements of operations, consolidated balance sheets and the 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 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 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 consolidated financial statements. Adoption of New Accounting Standards Balance Sheet Classification of Deferred Taxes. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. The amendments in the ASU, which apply to all entities that present a classified balance sheet, eliminate the current requirement to present deferred tax liabilities and assets as current and noncurrent. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for entities as of the beginning of an interim or annual period. Effective December 31, 2015, we retrospectively adopted ASU 2015-17 and, as a result, reclassified current deferred tax assets of $90 million and current deferred tax liabilities of $46 million as non-current on our consolidated balance sheet for the year ended December 31, 2014. Fair Value Measurements. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent). The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using net asset value per share practical expedient. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Earlier application is permitted for entities as of the beginning of an interim or annual period. A reporting entity should apply the amendments retrospectively to all periods presented. On December 31, 2015, we adopted ASU 2015-07 as presented in our Fair Value Measurement tables in Note 11 to our consolidated financial statements. Discontinued Operations. In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). The amendments in this ASU added criteria providing that only those disposals of a component of an entity or a group of components of an entity that represent a strategic shift in operations should be presented as discontinued operations. The update allows an entity to present a disposal as discontinued operations even when it has continuing cash flows and significant continuing involvement with the disposed component. The update also requires expanded disclosures for discontinued operations and individually significant components of an entity that does not qualify for discontinued operations reporting. On January 1, 2015, we adopted ASU 2014-08. The adoption of this update did not impact our consolidated financial statements. Service Concession Arrangements. In January 2014, the FASB issued 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. The amendments in this ASU specify 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 and 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 consolidated financial statements. Revenue Recognition Engineering and Construction Contracts Contracts. Our revenue is primarily derived from long-term contracts. Revenues from contracts to provide construction, engineering, design or similar services is reported on the percentage-of-completion method of accounting in accordance with FASB Accounting Standards Codification ("ASC") 605 - Revenue Recognition. Depending on the type of job, progress is generally measured based upon man-hours expended to total man-hours estimated at completion, costs incurred to total estimated costs at completion, or physical progress. All known or anticipated losses on contracts are provided for in the period they become evident. Certain claims and change orders that are in the process of negotiation with customers for additional work or changes in the scope of work are included in contract value when collection is deemed probable and the value can be reliably estimated. Our work is performed under three general types of contracts: fixed-price contracts, cost-reimbursable plus a fee or mark-up contracts and "hybrid" contracts containing both cost-reimbursable and fixed-price scopes. All contract types may be modified by cost escalation provisions or other risk sharing mechanisms and incentive and penalty provisions. During the term of a project, the contract or components of the contract may be renegotiated to include characteristics of a different contract type. When we negotiate any type of contract, we frequently are required to accomplish the scope of work and meet certain performance criteria within a specified time frame; otherwise, we could be assessed damages, which in some cases are agreed-upon liquidated damages. We include an estimate of liquidated damages in our estimates of total contract value when it is deemed probable that they will be assessed. Profit is recorded based upon the product of estimated contract profit-at-completion times the current percentage-complete for the contract. Fixed-price contracts, which include unit-rate contracts (essentially a fixed-price contract with the only variable being units of work performed), are for a fixed sum to cover all costs and any profit element for a defined scope of work. Fixed-price contracts entail significant risk to us because they require us to predetermine the work to be performed, the project execution schedule and the costs associated with the work. As a result, we may benefit or be penalized for cost variations from our original estimates. However, these contract prices may be adjusted for changes in scope of work, new or changing laws and regulations and other negotiated events. Cost-reimbursable contracts include contracts where the price is variable based upon our actual costs incurred for time and materials and for reimbursable labor hour contracts. Profit on cost-reimbursable contracts may be a fixed amount, a mark-up applied to costs incurred or a combination of the two. Cost-reimbursable contracts are generally less risky than fixed-price contracts because the owner/customer retains many of the project risks. Our cost-reimbursable contracts include the following: • Cost-plus and Time and Material contracts - These are contracts under which we are reimbursed for allowable or otherwise defined costs incurred plus a fee or mark-up. The contracts may also include incentives for various performance criteria, including quality, timeliness, ingenuity, safety and cost-effectiveness. In addition, our costs are generally subject to review by our clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract. • Target-price contracts - These are contracts under which we are reimbursed for costs plus a fee consisting of two parts: (1) a fixed amount, which does not vary with performance, but may be at risk when a target price is exceeded; and (2) an award amount based on the performance and cost-effectiveness of the project. As a result, we are generally able to recover cost overruns on these contracts from actual damages for late delivery or the failure to meet certain performance criteria. Target-price contracts also generally provide for sharing of costs in excess of or savings for costs less than the target. In some contracts, we may agree to share cost overruns in excess of our fee, which could result in a loss on the project. Unapproved Change Orders and Claims. Revenues and gross profit on contracts can be significantly affected by change orders and claims that may not be approved by the customer until the later stages of a contract or subsequent to the date a project is completed. If it is not probable that the costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. For certain contracts where it is probable that the costs will be recovered through a change order, total estimated contract revenue is increased by the lesser of the amounts management expects to recover or the costs expected to be incurred. When estimating the amount of total gross profit or loss on a contract, we include unapproved change orders or claims to our clients as adjustments to revenues. We include claims to vendors, subcontractors and others as adjustments to total estimated costs. Claims against others are recorded up to the extent of the lesser of the amounts management expects to recover or to costs incurred and include no profit until such time as they are finalized and approved. See Note 5 to our consolidated financial statements for our discussion on unapproved change orders and claims. Services Contracts Revenues for our services contracts is recorded as the services are rendered and the amounts are deemed realized or realizable and earned. Revenue is recognized when persuasive evidence of a customer arrangement exists, delivery has occurred or services have been rendered, the price to the customer is fixed and determinable, and collection of revenue is reasonably assured. Revenue associated with incentive fees for these contracts is recognized when earned. Government Contracts Some of the services provided to the United States ("U.S.") government are performed on cost-reimbursable contracts. Generally, these contracts may contain base fees (a fixed profit percentage applied to our estimates of costs to complete the work). Revenues are recognized at the time services are performed, and such revenues include base fees, actual direct project costs incurred and an allocation of indirect costs. Indirect costs are applied using rates approved by our government customers. The general, administrative and overhead cost reimbursement rates are estimated periodically in accordance with government contract accounting regulations and may change based on actual costs incurred or based upon the volume of work performed. Revenues are reduced for our estimate of costs that either are in dispute with our customer or have been identified as potentially unallowable pursuant to the terms of the contract or the federal acquisition regulations. Gross Profit Gross profit represents business segment revenues less the cost of revenues, which includes business segment overhead costs directly attributable to the business segment. Cost Estimates Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs, included in cost of revenues, include charges for such items as facilities, engineering, project management, quality control, bids and proposals and procurement. General and Administrative Expenses Our general and administrative expenses represent corporate overhead expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and corporate accounting, human resources and various other corporate functions. Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 3 to our consolidated financial statements for our discussion on cash and equivalents. Accounts Receivable Accounts receivable are recorded at the invoiced amount based on contracted prices. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. We establish an allowance for doubtful accounts based on the assessment of the clients’ willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. See Note 4 to our consolidated financial statements for our discussion on accounts receivable. Retainage, included in accounts receivable, represents amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our retainage receivable excludes amounts withheld by the U.S. government on certain contracts. See Note 14 to our consolidated financial statements for our discussion on U.S. government receivables. Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts, Including Claims, and Advanced Billings and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of accounting. Costs and estimated earnings in excess of billings on uncompleted contracts ("CIE") represent the excess of contract costs and profits recognized to date using the percentage-of-completion method over billings to date on certain contracts. Billings in excess of costs and estimated earnings on uncompleted contracts ("BIE") represents the excess of billings to date over the amount of contract costs and profits recognized to date using the percentage-of-completion method on certain contracts. With the exception of claims and change orders that we are in the process of negotiating with customers, unbilled receivables are usually billed during normal billing processes following achievement of the contractual requirements. See Note 5 to our consolidated financial statements for our discussion on CIE and BIE. Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7 to our consolidated financial statements for our discussion on property, plant and equipment. Goodwill Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, we test goodwill for impairment on an annual basis and more frequently when negative conditions or other triggering events arise. We test goodwill for impairment annually as of October 1 and conduct our goodwill impairment testing at the reporting unit level. For purposes of the goodwill impairment test, our reporting units are operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. Our October 1, 2015 annual impairment test for goodwill was a quantitative analysis using the two-step process that involves comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying value of a reporting unit exceeds its fair value, we perform the second step of the goodwill impairment test to measure the amount of goodwill impairment loss to be recorded, as necessary. The second step compares the implied fair value of the reporting unit's goodwill to the carrying value, if any, of that goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. In instances where we reorganize our reporting units, we perform an additional impairment test immediately before and after the change in reporting units, utilizing the same methodology as our October 1st test and record impairment if any. The fair values of reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). See Note 8 for our discussion on our annual impairment test. Intangible Assets Our intangible assets are related to various licenses, trade names, patents, technology and related processes. Except for an $11 million indefinite lived trade name, which we do not amortize, the costs of our intangible assets are generally amortized over their estimated useful lives up to 25 years . The method of amortization reflects the expected realization pattern of the economic benefits relevant to the intangible assets, or if we are unable to determine the expected realization pattern reliably, they are amortized using the straight-line method. We also have intangible assets related to trade names, client relationships and non-compete agreements which are associated with acquisitions we have completed and are generally amortized over a three- to ten-year period on a straight-line basis. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 8 to our consolidated financial statements for our discussion on intangible assets. Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control of, an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually and whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 10 to our consolidated financial statements for our discussion on equity method investments. Where we are unable to exercise significant influence over the investee, or when our investment balance is reduced to zero from our proportionate share of losses, the investments are accounted for under the cost method. Under the cost method, investments are carried at cost and adjusted only for other-than-temporary declines in fair value, distributions of earnings, or additional investments. Variable Interest Entities The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC 810 - Consolidation which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term energy-related construction projects in our E&C business segment are executed through such joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as privately financed initiatives in our GS business segment, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. As required by ASC 810 - Consolidation, we perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 10 to our consolidated financial statements for our discussion on variable interest entities. 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 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. Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 15 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. Income Taxes We recognize the amount of taxes pa |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We provide a wide range of services and the management of our business is heavily focused on major projects within each of our reportable segments. At any given time, a relatively few number of projects and joint ventures represent a substantial part of our operations. Our reportable segments follow the same accounting policies as those described in Note 1 to our consolidated financial statements. In 2014, we reorganized into three business segments to focus on core strengths in technology and consulting, engineering and construction, and government services. We also announced our intent to exit businesses that are no longer a part of our future strategic focus and organized those businesses into our Non-strategic Business segment. Each business segment reflects a reportable segment led by a separate business segment President who reports directly to our chief operating decision maker ("CODM"). 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 segment provides licensed technologies and consulting services to 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, petrochemicals, and chemicals 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 governments of the United Kingdom, Australia and United States. Non-strategic Business. Our Non-strategic Business segment represents the operations or activities which we intend to exit upon completion of existing contracts. This segment also included businesses we exited upon sale to third parties. 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. Reportable segment performance is evaluated by our CODM using reportable segment gross profit (loss) which is defined as business segment revenues less the cost of revenues and includes business segment overhead directly attributable to the segment. The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, impairment of goodwill, asset impairment and restructuring charges, capital expenditures, and depreciation and amortization by reporting segment. Operations by Reportable Segment Years ended December 31, Dollars in millions 2015 2014 2013 Revenues: Technology & Consulting $ 324 $ 353 $ 330 Engineering & Construction 3,454 4,584 4,956 Government Services 663 638 931 Other — — — Subtotal 4,441 5,575 6,217 Non-strategic Business 655 791 997 Total $ 5,096 $ 6,366 $ 7,214 Gross profit (loss): Technology & Consulting $ 77 $ 53 $ 69 Engineering & Construction 224 141 263 Government Services (3 ) (32 ) 90 Other — — — Subtotal 298 162 422 Non-strategic Business 27 (227 ) (5 ) Total $ 325 $ (65 ) $ 417 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — Engineering & Construction 104 90 76 Government Services 45 73 61 Other — — — Subtotal 149 163 137 Non-strategic Business — — — Total $ 149 $ 163 $ 137 Impairment of goodwill (Note 8): Technology & Consulting $ — $ — $ — Engineering & Construction — (293 ) — Government Services — — — Other — — — Subtotal — (293 ) — Non-strategic Business — (153 ) — Total $ — $ (446 ) $ — Asset impairment and restructuring charges (Note 9): Technology & Consulting $ (10 ) $ (2 ) $ — Engineering & Construction (34 ) (24 ) — Government Services — (5 ) — Other (22 ) (149 ) — Subtotal (66 ) (180 ) — Non-strategic Business (4 ) (34 ) — Total $ (70 ) $ (214 ) $ — Segment operating income (loss): Technology & Consulting $ 62 $ 49 $ 70 Engineering & Construction 295 (114 ) 278 Government Services 37 25 145 Other (140 ) (312 ) (181 ) Subtotal 254 (352 ) 312 Non-strategic Business 56 (442 ) (4 ) Total $ 310 $ (794 ) $ 308 Years ended December 31, Dollars in millions 2015 2014 2013 Capital expenditures: Technology & Consulting $ — $ — $ — Engineering & Construction 6 19 10 Government Services — — 1 Other 4 34 67 Subtotal 10 53 78 Non-strategic Business — — — Total $ 10 $ 53 $ 78 Depreciation and amortization: Technology & Consulting $ 2 $ 2 $ 2 Engineering & Construction 17 23 23 Government Services 6 8 9 Other 14 33 27 Subtotal 39 66 61 Non-strategic Business — 6 7 Total $ 39 $ 72 $ 68 Prior Period Adjustment During the second quarter of 2015, we corrected a cumulative error related to transactions between 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 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 determined that the cumulative impact of the error did not have a material impact to our consolidated financial statements for the current annual period. Changes in Estimates There are many factors, including, but not limited to, the availability and costs of resources, including labor, materials and equipment, productivity and weather, that can affect the accuracy of our cost estimates and ultimately our future profitability. 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. 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 consolidated balance sheets, was as follows: Dollars in millions Reserve for Estimated Losses Balance at December 31, 2013 Beginning Balance $ 56 Changes in estimates on loss projects 106 Change due to progress on loss projects (53 ) Ending Balance $ 109 Balance at December 31, 2014 Changes in estimates on loss projects 177 Change due to progress on loss projects (127 ) Ending Balance $ 159 Balance at December 31, 2015 Changes in estimates on loss projects 14 Change due to progress on loss projects (113 ) Ending Balance $ 60 Included in the reserve for estimated losses on uncompleted contracts is $47 million as of December 31, 2015 primarily related to a power project in our Non-strategic Business segment. At December 31, 2014 , the losses on uncompleted contracts included $80 million for two power projects. During 2015 and 2014 , we recognized net unfavorable changes in estimates of losses on our power projects of $16 million and $80 million , respectively. Our estimates of revenues and costs at completion for the remaining power project has been, and may continue to be, impacted by our performance, the performance of our subcontractors, and the U.S. labor market. Our estimated loss at completion as of December 31, 2015 on this power project represents our best estimate based on current information. Actual results could differ from the estimates we have used to account for this power project as of December 31, 2015 . We have completed the seven Canadian pipe fabrication and module assembly projects in our E&C business segment and accordingly, have no remaining loss reserves for these projects as of December 31, 2015 . Our reserve for estimated losses on uncompleted contracts as of December 31, 2014 included $53 million associated these seven projects. We recognized net favorable (net unfavorable) changes in our estimates of losses on these projects of $21 million , $(72) million , and $(132) million in 2015 , 2014 , and 2013 , respectively. Acquisitions, Dispositions and Other Transactions In December 2015, we finalized the sale of our Infrastructure Americas business to Stantec Consulting Services Inc. for net cash proceeds, including working capital adjustments, of $18 million . The sale of this business within our Non-strategic Business segment is consistent with our restructuring plans announced in December 2014. The disposition resulted in a pretax gain of $7 million and is subject to future adjustments resulting from the finalization of the closing balance sheet. In addition, we sold our office facility located in Greenford, U.K, within our E&C business segment, for net cash proceeds of $33 million and our office facility located in Birmingham, Alabama, within our Non-strategic Business segment, for net cash proceeds of $6 million . See Note 7 to our consolidated financial statements for more information. The gain on these transactions is included under "gain on disposition of assets" on our consolidated statements of operations. In September 2015, we executed agreements to establish two strategic relationships within our E&C business segment. See Note 10 to our consolidated financial statements for information related to the establishment of these new strategic relationships. In June 2015, we sold our Building Group subsidiary to a subsidiary of Pernix Group, Inc., for net cash proceeds, including working capital adjustments, of $23 million . 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 $28 million and is included under "gain on disposition of assets" on our consolidated statements of operations. Subsequent Event Subsequent to December 31, 2015, we acquired three technology companies from Chematur Technologies AB, a subsidiary of Connell Chemical Industry Co., Ltd. This acquisition will be reported within our T&C business segment in 2016. Balance Sheet Information by Reportable Segment Within KBR, not all assets are associated with specific business segments. Those assets specific to business segments include receivables, inventories, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other." December 31, Dollars in millions 2015 2014 Total assets: Technology & Consulting $ 198 $ 173 Engineering & Construction 1,656 2,008 Government Services 464 545 Other 1,060 1,182 Subtotal 3,378 3,908 Non-strategic Business 34 170 Total $ 3,412 $ 4,078 Goodwill (Note 8): Technology & Consulting $ 31 $ 31 Engineering & Construction 233 233 Government Services 60 60 Other — — Subtotal 324 324 Non-strategic Business — — Total $ 324 $ 324 Equity in and advances to related companies (Note 10): Technology & Consulting $ — $ — Engineering & Construction 255 119 Government Services 26 31 Other — — Subtotal 281 150 Non-strategic Business — 1 Total $ 281 $ 151 Selected Geographic Information Revenues by country are determined based on the location of services provided. Long-lived assets by country are determined based on the location of tangible assets. Years ended December 31, Dollars in millions 2015 2014 2013 Revenues: United States $ 2,212 $ 2,324 $ 2,470 Australia 836 1,380 1,768 Africa 164 251 593 Middle East 786 707 913 Europe 495 624 575 Canada 185 752 687 Latin America 131 111 74 Other 287 217 134 Total $ 5,096 $ 6,366 $ 7,214 December 31, Dollars in millions 2015 2014 Property, plant & equipment, net: United States $ 73 $ 115 United Kingdom 48 68 Other 48 64 Total $ 169 $ 247 |
Cash and Equivalents (Notes)
Cash and Equivalents (Notes) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 177 $ 253 $ 430 Short-term investments (c) 293 107 400 Cash and equivalents held in joint ventures 49 4 53 Total $ 519 $ 364 $ 883 December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 111 $ 320 Short-term investments (c) 481 89 570 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 (c) Includes time deposits, money market funds, and other highly liquid short-term investments See "Item 7. Management's Discussion and Analysis" Liquidity and Capital Resources discussion for information on our foreign cash repatriation strategy. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of our accounts receivable, net of allowance for doubtful accounts are as follows: December 31, 2015 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 70 $ 70 Engineering & Construction 51 402 453 Government Services 2 75 77 Other — 2 2 Subtotal 53 549 602 Non-strategic Business 9 17 26 Total $ 62 $ 566 $ 628 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 Contra
Percentage-Of-Completion Contracts | 12 Months Ended |
Dec. 31, 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: December 31, Dollars in millions 2015 2014 Technology & Consulting $ 42 $ 38 Engineering & Construction 114 357 Government Services 68 73 Subtotal 224 468 Non-strategic Business — 22 Total $ 224 $ 490 Our BIE balances by business segment are as follows: December 31, Dollars in millions 2015 2014 Technology & Consulting $ 72 $ 56 Engineering & Construction 307 212 Government Services 69 93 Subtotal 448 361 Non-strategic Business 61 170 Total $ 509 $ 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 Beginning balance $ 31 $ 115 Adjustments due to changes in estimates-at-completion 71 87 Adjustments due to approvals (42 ) (171 ) Adjustment due to disposition of businesses (14 ) — Amounts included in project estimates-at-completion at December 31, $ 46 $ 31 Amounts recorded in revenues on a percentage-of-completion basis at December 31, $ 41 $ 24 In 2014 , change orders were approved for an air quality project and EPC contract for gas fired electric power generation projects within our Non-strategic Business segment as well as a construction project within our E&C business segment. The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims included in estimated revenue at completion was $58 million as of December 31, 2015 and $78 million as of December 31, 2014 on a project in our E&C business segment. 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 December 31, 2015 and $12 million at December 31, 2014 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 and therefore, they have not been recognized. |
Claims and Accounts Receivable
Claims and Accounts Receivable (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Claims Receivable | Claims and Accounts Receivable The components of our claims and accounts receivable are as follows: December 31, Dollars in millions 2015 2014 Engineering & Construction $ 400 $ 425 Government Services 126 145 Total $ 526 $ 570 Our E&C business segment's claims and accounts receivable includes $400 million related to our EPC 1 arbitration. See Note 15 to our consolidated financial statements under PEMEX and PEP Arbitration for further discussion. Our GS business segment's claims and accounts receivable reflects claims filed with the U.S. government related to payments not yet received for cost incurred under various U.S. government contracts. These claims relate to de-obligated funding on certain task orders that are subject to the Form 1s discussed in Note 14 of our consolidated financial statements. In addition, the claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order. We believe such disputed costs will be resolved in our favor at which time the U.S. government will be required to obligate funds from appropriations for the year in which resolution occurs. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of our property, plant and equipment balance are as follows: Estimated Lives in Years December 31, Dollars in millions 2015 2014 Land N/A $ 7 $ 13 Buildings and property improvements 5 - 44 140 198 Equipment and other 3 - 25 374 421 Total 521 632 Less accumulated depreciation (352 ) (385 ) Net property, plant and equipment $ 169 $ 247 See Note 9 to our consolidated financial statements for discussion on asset impairment. In the fourth quarter of 2015, we closed on the sale of our office facility located in Greenford, U.K. for approximately $33 million in net cash proceeds. The sale resulted in a pre-tax gain of $23 million on disposition of assets on our consolidated statements of operations. We also closed on the sale of our office facility located in Birmingham, Alabama for approximately $6 million in net cash proceeds. Depreciation expense was $35 million , $61 million , and $54 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Balance as of January 1, 2014: Gross goodwill $ 31 $ 528 $ 60 $ — $ 619 $ 331 $ 950 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of January 1, 2014 $ 31 $ 528 $ 60 $ — $ 619 $ 153 $ 772 Impairment loss $ — $ (293 ) $ — $ — $ (293 ) $ (153 ) $ (446 ) Net foreign exchange difference $ — $ (2 ) $ — $ — $ (2 ) $ — $ (2 ) Balances as of December 31, 2014: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2014 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 Impairment loss $ — $ — $ — $ — $ — $ — $ — Net foreign exchange difference $ — $ — $ — $ — $ — $ — $ — Balance as of December 31, 2015: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2015 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 Goodwill Impairment We perform our annual goodwill impairment test as of October 1 of each year. The first step in performing a goodwill impairment test is to identify potential impairment by comparing the estimated fair value of the reporting unit to its carrying value. At the annual testing date of October 1, 2015 , we had six reporting units with goodwill balances. The fair values of all our reporting units exceeded their carrying values which implied that goodwill was not impaired. The fair values of the reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). Under the market approach, we estimate fair value by applying earnings and revenue market multiples to a reporting unit’s operating performance for the trailing twelve-month period. The income approach estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we use estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and cash expenditures or inflows. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. In connection with our December 2014 reorganization, we decided we would no longer bid on certain types of work and also exited certain non-strategic businesses. This decision resulted in a significant reduction in our forecasts of future cash flows for three of our previous reporting units and triggered a goodwill impairment test. The result of the first step of our goodwill impairment test indicated the carrying values of the three reporting units exceeded their fair values, prompting us to perform the second step of the goodwill impairment test in order to measure the amount of the potential impairment loss, if any. As a result, we recorded a noncash goodwill impairment charge of $446 million in "impairment of goodwill" on our consolidated statements of operations for the year ended December 31, 2014. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill to the carrying value of that goodwill. Step two requires significant unobservable inputs (Level 3 fair value measurements) in the calculation. We determine the implied fair value of goodwill in the same manner as we use in determining the amount of goodwill to be recognized in a business combination. Applying this methodology, we assigned the fair value of the respective reporting unit estimated in step one to all the assets and liabilities of the respective reporting unit. The implied fair value of the reporting unit's goodwill is the excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities. The result of our step two test indicated that the carrying value of each of the three reporting unit's goodwill exceeded the implied fair value of their goodwill. Intangible Assets Intangible assets are comprised of customer relationships, trade names, licensing agreements and other. The cost and accumulated amortization of our intangible assets were as follows: December 31, Dollars in millions 2015 2014 Intangibles not subject to amortization $ 11 $ 11 Intangibles subject to amortization (a) 115 126 Total intangibles 126 137 Accumulated amortization of intangibles (91 ) (96 ) Net intangibles $ 35 $ 41 (a) The reduction in intangibles subject to amortization is due to our business dispositions during 2015. Intangibles that are not subject to amortization are reviewed annually for impairment or more often if events or circumstances change that would create a triggering event. Intangibles subject to amortization are amortized over their estimated useful lives of up to 25 years . Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. In conjunction with our 2014 annual goodwill impairment analysis, we performed an undiscounted cash flow analysis which indicated impairment of certain trade names and customer relationship intangibles associated with our 2010 Roberts & Schaefer Company ("R&S") acquisition. See Note 9 to our consolidated financial statements for discussion on impairment of intangible assets. Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2015 2014 2013 Intangibles amortization expense $ 4 $ 11 $ 14 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2016 $ 3 2017 $ 3 2018 $ 3 2019 $ 3 2020 $ 1 Beyond 2020 $ 11 |
Asset Impairment and Restructur
Asset Impairment and Restructuring (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Asset Impairment and Restructuring Information related to "asset impairment and restructuring charges" on our consolidated statements of operations is presented below: Years ended December 31, Dollars in millions 2015 2014 Asset impairment: Technology & Consulting — — Engineering & Construction 8 1 Government Services — — Other 21 139 Subtotal 29 140 Non-strategic Business 2 31 Total 31 171 Restructuring charges: Technology & Consulting 10 2 Engineering & Construction 26 23 Government Services — 5 Other 1 10 Subtotal 37 40 Non-strategic Business 2 3 Total 39 43 Asset impairment and restructuring charges: Total 70 214 Asset impairment charges include the following: Enterprise resource planning project - In December 2014, we recorded an asset impairment charge of $135 million within our Other business segment related to our decision to abandon further implementation of our enterprise resource planning ("ERP") project which began in 2013. During 2015, we recorded an additional $5 million within our E&C business segment and $17 million within our Other business segment resulting from our decision to abandon the remaining portion of this ERP project. Intangible assets - During 2014, we recorded noncash impairment charges of $31 million related to certain intangible assets within our Non-strategic Business segment. No intangibles were considered impaired during 2015. See Note 8 to our consolidated financial statements for additional information on intangibles. Leasehold improvements - During 2014, we recorded a charge of $5 million within our Other and E&C business segments related to the impairment of leasehold improvements and other property associated with the terminated leases discussed below. During 2015, we recorded $9 million primarily within our E&C and Other business segments related to additional asset impairments. Restructuring charges include the following: Early Termination of leases - During 2014 , we recognized a charge of $14 million on early termination of operating leases within our E&C, GS and Non-strategic Business segments. During 2015, we recorded an additional $12 million charge on early lease terminations within our E&C and Other business segments. Severance - As presented below, we recognized severance charges of $27 million and $29 million during each of the twelve months ended December 31, 2015 and 2014 , respectively, associated with workforce reductions. Severance Accrual In connection with our long-term strategic reorganization, we announced that we would reduce our workforce beginning December 2014. The employees affected by this reduction are eligible for separation benefits upon their termination and the dates have occurred or are expected to occur through 2016. The table below provides details of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "other current liabilities" on our consolidated balance sheets. Dollars in millions Severance Accrual Balance at December 31, 2013 $ — Charges 29 Payments (8 ) Balance at December 31, 2014 $ 21 Charges 27 Payments (29 ) Balance at December 31, 2015 $ 19 |
Equity Method Investments And V
Equity Method Investments And Variable Interest Entities | 12 Months Ended |
Dec. 31, 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 as partnerships, corporations, undivided interests 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: Dollars in millions 2015 2014 Beginning balance $ 151 $ 156 Equity in earnings of unconsolidated affiliates 149 163 Distributions of earnings of unconsolidated affiliates (a) (92 ) (249 ) Advances (10 ) (13 ) Investments (b) 80 — Foreign currency translation adjustments (9 ) (1 ) Other 1 — Balance before reclassification 270 56 Reclassification of excess distributions (a) 16 102 Recognition of excess distributions (a) (5 ) (7 ) Ending balance $ 281 $ 151 (a) 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 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 $5 million of excess dividends. We do not consider these dividends as a return of our investment. (b) Investments include a $58 million investment in the Brown & Root Industrial Services joint venture and a $24 million investment in EPIC Piping LLC ("EPIC"), offset by prior quarter dispositions of a joint venture related to the Building Group. See below for further discussion related to joint venture formations and investments. Equity Method Investments New Investments On September 30, 2015, we executed an agreement with Bernhard Capital Partners ("BCP"), a 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 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 consolidated statements of operations. The fair value of our retained interest in the former business 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, are deemed related party transactions. 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. See the Related Party discussion below for details on amounts related to this agreement. On September 30, 2015, we acquired a minority interest in a partnership that owns a pipe fabrication business operating under the name EPIC Piping LLC ("EPIC") and a minority interest in its general partner. BCP holds a controlling interest in these entities. Consideration for these interests was $19 million in cash and contribution of the majority of our Canada pipe fabrication and module assembly business excluding the seven completed loss projects. 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. Other Mantenimiento Marino de Mexico, S. de R.L. de C.V. ("MMM"). MMM is a joint venture formed under a Partners Agreement related to the contract with PEMEX. We determined that MMM is not a VIE. The MMM joint venture was set up under Mexican maritime law in order to hold navigation permits to operate in Mexican waters. The scope of the business is to render services for maintenance, repair and restoration of offshore oil and gas platforms and provisions of quartering in the territorial waters of Mexico. KBR holds a 50% interest in the MMM joint venture. Results from MMM are included in our E&C business segment. Summarized financial information Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheets December 31, Dollars in millions 2015 2014 Current assets $ 2,331 $ 3,098 Noncurrent assets 3,435 4,069 Total assets $ 5,766 $ 7,167 Current liabilities $ 1,501 $ 2,969 Noncurrent liabilities 3,742 4,090 Total liabilities $ 5,243 $ 7,059 Statements of Operations Years ended December 31, Dollars in millions 2015 2014 2013 Revenues $ 3,717 $ 6,439 $ 4,800 Operating income $ 635 $ 659 $ 660 Net income $ 476 $ 419 $ 355 Unconsolidated Variable Interest Entities The following summarizes the total assets and total liabilities as reflected in our consolidated balance 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. 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. December 31, 2015 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 17 $ 121 $ 17 Ichthys LNG project $ 87 $ 63 $ 87 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia plant (65% interest) $ 36 $ 2 $ 22 Dollars in millions December 31, 2014 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 Aspire Defence project. In April 2006, Aspire Defence, a joint venture between KBR and two financial investors, was awarded a privately financed project contract by the U.K. Ministry of Defence ("MoD") to upgrade and provide a range of services to the British Army’s garrisons at Aldershot and around Salisbury Plain in the U.K. In addition to a package of ongoing services to be delivered over 35 years , the project includes a nine -year construction program to improve soldiers’ single living, technical and administrative accommodations, along with leisure and recreational facilities. Aspire Defence manages the existing properties and is responsible for design, refurbishment, construction and integration of new and modernized facilities. We indirectly own a 45% interest in Aspire Defence, the project company that is the holder of the 35-year concession contract. In addition, we own a 50% interest in each of two joint ventures that provide the construction and the related support services to Aspire Defence. Our financial and performance guarantees are joint and several, subject to certain limitations, with our joint venture partners. The project is funded through equity and subordinated debt provided by the project sponsors and the issuance of publicly held senior bonds which are nonrecourse to us. The entities we hold an interest in are VIEs; however, we are not the primary beneficiary of these entities. We account for our interests in each of the entities using the equity method of accounting. As of December 31, 2015 , included in our GS segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $17 million and $121 million , respectively. Our maximum exposure to loss of $17 million indicated in the table above is limited to our equity interest and amounts payable to us for services provided to the entity as of December 31, 2015 . Our maximum exposure to construction and operating joint venture losses is limited to our proportionate share of any amounts required to fund future losses incurred by those entities under their respective contracts with the project company. Ichthys LNG project. In January 2012, we became involved in an agreement to provide EPC services to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia ("Ichthys LNG project"). The project is being executed using two joint ventures, which are VIEs, in which we own a 30% equity interest. We account for our investments using the equity method of accounting. At December 31, 2015 , our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets under our E&C business segment, were $87 million and $63 million , respectively. Our maximum exposure to loss of $87 million indicated in the table above is limited to our equity interest and amounts payable to us for services provided to the entity as of December 31, 2015 . In addition, the joint venture executes a project that has a lump sum component, and we have an exposure to losses if the project exceeds the lump sum component to the extent of our ownership percentage in the joint venture. U.K. Road projects. We are involved in four privately financed projects, executed through joint ventures, to design, build, operate and maintain roadways for certain government agencies in the U.K. We have a 25% ownership interest in each of these joint ventures and account for them using the equity method of accounting. The joint ventures have obtained financing through third parties that is nonrecourse to the joint venture partners. These joint ventures are VIEs; however, we are not the primary beneficiary. At December 31, 2015 , included in our GS business segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $34 million and $11 million , respectively. Our maximum exposure to loss represents our equity investments in these ventures. EBIC Ammonia project. We have an investment in a development corporation that has an indirect interest in the Egypt Basic Industries Corporation ("EBIC") ammonia plant project located in Egypt. We performed the EPC work for the project and completed our operations and maintenance services for the facility in the first half of 2012. We own 65% of this development corporation and consolidate it for financial reporting purposes. The development corporation owns a 25% ownership interest in a company that consolidates the ammonia plant which is considered a VIE. The development corporation accounts for its investment in the company using the equity method of accounting. The VIE is funded through debt and equity. Indebtedness of EBIC under its debt agreement is nonrecourse to us. We are not the primary beneficiary of the VIE. As of December 31, 2015 , included in our E&C business segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $36 million and $2 million , respectively. Our maximum exposure to loss of $22 million indicated in the table above is limited to our proportionate share of the equity investment and amounts payable to us for services provided to the entity as of December 31, 2015 . 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. As of the years ended December 31, 2015 , 2014 , and 2013 , our revenues included $291 million , $351 million and $253 million , respectively, related to services we provided to our joint ventures, primarily those in our E&C business segment. Under the terms of our transition services agreement ("TSA") we collected cash from customers and made payments to vendors and employees on behalf of the Brown & Root Industrial Services joint venture. As of December 31, 2015 we had $9 million payable to the joint venture included in "accounts payable" on our consolidated balance sheets. For the year ended December 31, 2015 we incurred approximately $3 million of reimbursable costs under the TSA. Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2015 and 2014 are as follows: December 31, Dollars in millions 2015 2014 Accounts receivable, net of allowance for doubtful accounts $ 7 $ 7 Costs and estimated earnings in excess of billings on uncompleted contracts $ 5 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 55 $ 21 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 December 31, 2015 Total assets Total liabilities Gorgon LNG project $ 117 $ 145 Escravos Gas-to-Liquids project $ 16 $ 33 Fasttrax Limited project $ 74 $ 70 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 Gorgon LNG project. We have a 30% ownership in an Australian joint venture which was awarded a contract in 2005 for FEED and in 2009 for EPC management services to construct an LNG plant. The joint venture is considered a VIE, and, because we are the primary beneficiary, we consolidate this joint venture for financial reporting purposes. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Escravos Gas-to-Liquids ("GTL") project. During 2005, we formed a joint venture to engineer and construct a gas monetization facility in Escravos, Nigeria, which was completed in 2014. We own a 50% equity interest in the joint venture and determined that we are the primary beneficiary; accordingly, we have consolidated the joint venture for financial reporting purposes. There are no consolidated assets that collateralize the joint venture’s obligations. However, at December 31, 2015 and 2014 , the joint venture had approximately $7 million and $8 million of cash, respectively, which mainly relate to advanced billings in connection with the joint venture’s obligations under the EPC contract that is expected to be fully closed out in 2016. Fasttrax Limited project. In December 2001, the Fasttrax joint venture ("Fasttrax") was created to provide to the U.K. MoD a fleet of 91 new heavy equipment transporters ("HETs") capable of carrying a 72-ton Challenger II tank. Fasttrax owns, operates and maintains the HET fleet and provides heavy equipment transportation services to the British Army. The purchase of the assets was completed in 2004, and the operating and service contracts related to the assets extend through 2023. Fasttrax's entity structure includes a parent entity and its 100% owned subsidiary, Fasttrax Limited. KBR and its partner each own a 50% interest in the parent entity, which is considered a VIE. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Therefore, we consolidate this VIE. 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. Assets collateralizing Fasttrax’s senior bonds include cash and equivalents of $20 million and net property, plant and equipment of approximately $48 million as of December 31, 2015 . See Note 12 to our consolidated financial statements for further details regarding our nonrecourse project-finance debt of this VIE consolidated by KBR, including the total amount of debt outstanding at December 31, 2015 . 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 also 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. In the fourth quarter 2015, 25% of total shares of this joint venture were issued to a new partner. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | Pension Plans We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $67 million in 2015 , $72 million in 2014 and $78 million in 2013 . In addition, we have two frozen defined benefit plans in the U.S. and one frozen plan in the U.K. and participate in multi-employer plans in Canada. Our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of age, years of service or compensation. Benefit obligations and plan assets We used a December 31 measurement date for all plans in 2015 and 2014 . Plan assets, expenses and obligations for retirement plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2015 2014 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 87 $ 2,138 $ 79 $ 2,048 Service cost — 2 — 2 Interest cost 2 76 3 90 Foreign currency exchange rate changes (3 ) (174 ) — (123 ) Actuarial (gain) loss — (112 ) 11 191 Other — — — (4 ) Benefits paid (11 ) (81 ) (6 ) (66 ) Projected benefit obligations at end of period $ 75 $ 1,849 $ 87 $ 2,138 Change in plan assets: Fair value of plan assets at beginning of period $ 66 $ 1,652 $ 70 $ 1,580 Actual return on plan assets (1 ) 8 — 194 Employer contributions 5 43 2 46 Foreign currency exchange rate changes — (90 ) — (98 ) Benefits paid (11 ) (81 ) (6 ) (66 ) Other — — — (4 ) Fair value of plan assets at end of period $ 59 $ 1,532 $ 66 $ 1,652 Funded status $ (16 ) $ (317 ) $ (21 ) $ (486 ) United States Int’l United States Int’l Dollars in millions 2015 2014 Amounts recognized on the consolidated balance sheets Other current liabilities (a) $ — $ — $ (5 ) $ — Pension obligations (16 ) (317 ) (16 ) (486 ) Total $ (16 ) $ (317 ) $ (21 ) $ (486 ) (a) In 2015, we made a $5 million contribution to fund settlement of our terminated U.S. pension plan. In 2014, we reclassified the $5 million to "other current liabilities" on our consolidated balance sheets, in anticipation of this contribution. Net periodic cost United States Int’l United States Int’l United States Int’l Dollars in millions 2015 2014 2013 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 2 76 3 90 3 79 Expected return on plan assets (3 ) (97 ) (4 ) (102 ) (5 ) (86 ) Settlements/curtailments — — 1 — 2 — Recognized actuarial loss 5 43 3 39 2 33 Net periodic benefit cost $ 4 $ 24 $ 3 $ 29 $ 2 $ 28 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2015 2014 Unrecognized actuarial loss, net of tax of $11 and $198, and $9 and $222, respectively $ 25 $ 535 $ 31 $ 639 Total in accumulated other comprehensive loss $ 25 $ 535 $ 31 $ 639 Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2016 are as follows: Dollars in millions United States International Actuarial loss $ 1 $ 24 Total $ 1 $ 24 Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2015 2014 2013 Discount rate 2.89 % 3.65 % 3.38 % 4.45 % 3.09 % 4.50 % Expected return on plan assets 4.81 % 6.25 % 5.28 % 6.45 % 7.00 % 6.15 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2015 2014 Discount rate 3.42 % 3.75 % 2.89 % 3.65 % Assumed long-term rates of return on plan assets and discount rates for estimating benefit obligations vary for the different plans according to the local economic conditions. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans’ asset mix. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. Because all plans have been frozen, there is no rate of compensation increase. Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have diversified asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range. The target asset allocation for our U.S. and International plans for 2016 is as follows: Asset Allocation 2016 Targeted United States Int'l Cash and cash equivalents 19 % — % Equity funds and securities 49 % 20 % Fixed income funds and securities 32 % 37 % Hedge funds — % 22 % Real estate funds — % 5 % Other — % 16 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2016 and 2015 , by asset class, are as follows: International Plans 2016 Targeted 2015 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities — % 60 % — % 51 % Fixed income funds and securities — % 100 % — % 100 % Hedge funds — % 35 % — % 20 % Real estate funds — % 10 % — % 10 % Other — % 20 % — % 35 % The range of targeted asset allocations for our U.S. plans for 2016 and 2015 , by asset class, are as follows: Domestic Plans 2016 Targeted 2015 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents 19 % 19 % 22 % 22 % Equity funds, securities and other 49 % 49 % 47 % 47 % Fixed income funds and securities 32 % 32 % 31 % 31 % ASC 820 - Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a description of the primary valuation methodologies and classification used for assets measured at fair value. Fair values of our Level 1 assets are based on observable inputs such as unadjusted quoted prices for identical assets in active markets. These consist of securities valued at the closing price reported on the active market on which the individual securities are traded. Fair values of our Level 2 assets are based on inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices for similar assets; quoted prices that are in inactive markets; inputs other than quoted prices that are observable for the asset; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Fair values of our Level 3 assets are based on unobservable inputs in which there is little or no market data and require us to develop our own assumptions. A summary of total investments for KBR’s pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2015 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Total United States plan assets $ 59 $ — $ — $ — International plan assets Equities 66 54 — 12 Fixed income 14 — — 14 Real estate 6 — — 6 Cash and cash equivalents 10 10 — — Other 13 — — 13 Investments measured at net asset value (a) 1,423 — — — Total international plan assets $ 1,532 $ 64 $ — $ 45 Total plan assets at December 31, 2015 $ 1,591 $ 64 $ — $ 45 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2014 United States plan assets Investments measured at net asset value (a) $ 66 $ — $ — $ — Total United States plan assets $ 66 $ — $ — $ — International plan assets Equities 61 53 2 6 Fixed income 11 — — 11 Real estate 12 — — 12 Cash and cash equivalents 9 9 — — Other 13 — — 13 Investments measured at net asset value (a) 1,546 — — — Total international plan assets $ 1,652 $ 62 $ 2 $ 42 Total plan assets at December 31, 2014 $ 1,718 $ 62 $ 2 $ 42 (a) In accordance with ASU 2015-07, these investments are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables are intended to allow reconciliation of the fair value hierarchy to the amounts on our consolidated balance sheets. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Level 3 fair value measurement rollforward Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2013 $ 24 $ 1 $ 6 $ 5 $ 12 Return on assets held at end of year 5 — (1 ) 4 2 Return on assets sold during the year — — — — — Purchases, sales and settlements 15 5 7 3 — Foreign exchange impact (2 ) — (1 ) — (1 ) Balance as of December 31, 2014 $ 42 $ 6 $ 11 $ 12 $ 13 Return on assets held at end of year 2 1 — (2 ) 3 Return on assets sold during the year 5 — — 5 — Purchases, sales and settlements, net (1 ) 5 4 (8 ) (2 ) Foreign exchange impact (3 ) — (1 ) (1 ) (1 ) Balance as of December 31, 2015 $ 45 $ 12 $ 14 $ 6 $ 13 Expected cash flows Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plans reside. In certain countries the funding requirements are mandatory while in other countries they are discretionary. We expect to contribute $41 million to our international pension plan in 2016 . Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2016 $ 15 $ 79 2017 $ 4 $ 81 2018 $ 4 $ 83 2019 $ 4 $ 85 2020 $ 4 $ 87 Years 2021 – 2025 $ 22 $ 471 Multiemployer Pension Plans We participate in multiemployer plans in Canada. Generally, the plans provide defined benefits to substantially all employees covered by collective bargain agreements. Under the terms of these agreements, our obligations are discharged upon plan contributions and are not subject to any assessments for unfunded liabilities upon our termination or withdrawal. Our aggregate contributions to these plans were $8 million in 2015 , $29 million in 2014 and $22 million in 2013 . At December 31, 2015 , none of the plans in which we participate is individually significant to our consolidated financial statements. Deferred Compensation Plans Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. Except for $8 million of mutual funds included in "other assets" on our consolidated balance sheets at December 31, 2015 and 2014 designated for a portion of our employee deferral plan, the plan is unfunded. The mutual funds are carried at fair value which includes readily determinable or published net asset values and may be liquidated in the near term without restrictions. The following table presents our obligations under our employee deferred compensation plan included in "employee compensation and benefits" in our consolidated balance sheets. December 31, Dollars in millions 2015 2014 Deferred compensation plans obligations $ 70 $ 71 |
Debt And Other Credit Facilitie
Debt And Other Credit Facilities | 12 Months Ended |
Dec. 31, 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 date of 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, 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 December 31, 2015 , there were $127 million in letters of credit and no cash borrowings outstanding. The Credit Agreement contains customary covenants as defined by the 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, but excluding any adjustments in shareholders' equity attributable to changes in foreign currency translation adjustments. As of December 31, 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 at any time outstanding. 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 15 to our consolidated financial statements). As of December 31, 2015 , the remaining availability under the Distribution Cap was approximately $698 million . Letters of credit, surety bonds and guarantees In connection with certain projects, we are required to provide letters of credit, surety bonds or guarantees to our customers. Letters of credit are provided to certain customers and counterparties in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers and future funding commitments. We have approximately $2.2 billion in committed and uncommitted lines of credit to support the issuance of letters of credit and as of December 31, 2015 , we have utilized $593 million of our present capacity under lines of credit. Surety bonds are also posted under the terms of certain contracts to guarantee our performance. The letters of credit outstanding included $127 million issued under our Credit Agreement and $466 million issued under uncommitted bank lines as of December 31, 2015 . Of the letters of credit outstanding under our Credit Agreement, no letters of credit have expiry dates beyond the maturity date of the Credit Agreement. Of the total letters of credit outstanding, $236 million relate to our joint venture operations where the letters of credit are posted using our capacity to support our pro-rata share of obligations under various contracts executed by joint ventures of which we are a member. As the need arises, future projects will be supported by letters of credit issued under our Credit Agreement or other lines of credit arranged on a bilateral, syndicated or other basis. We believe we have adequate letter of credit capacity under our Credit Agreement and bilateral lines of credit to support our operations for the next twelve months. 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. MoD to provide a Heavy Equipment Transporter Service to the British Army. See Note 10 to our 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 consolidated financial statements. The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2015 : Dollars in millions Payments Due 2016 $ 10 2017 $ 10 2018 $ 10 2019 $ 11 2020 $ 12 Beyond 2020 $ 8 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 United States $ (35 ) $ (1,051 ) $ (141 ) Foreign: United Kingdom 105 130 162 Australia 32 180 280 Canada 87 (101 ) (117 ) Other 123 65 116 Subtotal 347 274 441 Total $ 312 $ (777 ) $ 300 The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 Provision for income taxes $ (86 ) $ (421 ) $ (129 ) Shareholders' equity, foreign currency translation adjustment (3 ) 4 27 Shareholders' equity, pension and post-retirement benefits (22 ) 10 18 Shareholders' equity, compensation expense and other — — — Total income taxes $ (111 ) $ (407 ) $ (84 ) The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Balance as of December 31, 2015 Federal $ (17 ) $ 8 $ (9 ) Foreign (55 ) (22 ) (77 ) State and other — — — Provision for income taxes $ (72 ) $ (14 ) $ (86 ) Balance as of December 31, 2014 Federal $ 41 $ (333 ) $ (292 ) Foreign (110 ) (11 ) (121 ) State and other 1 (9 ) (8 ) Provision for income taxes $ (68 ) $ (353 ) $ (421 ) Balance as of December 31, 2013 Federal $ (6 ) $ 17 $ 11 Foreign (109 ) (31 ) (140 ) State and other 4 (4 ) — Provision for income taxes $ (111 ) $ (18 ) $ (129 ) The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 United Kingdom $ (15 ) $ (22 ) $ (34 ) Australia 16 (24 ) (41 ) Canada 3 6 (3 ) Other (81 ) (81 ) (62 ) Foreign provision for income taxes $ (77 ) $ (121 ) $ (140 ) The components of our deferred income tax provision were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 Expected deferred benefit $ 14 $ 254 $ 48 Tax reserves and allowances on current year activity (20 ) (210 ) (39 ) Tax reserves and allowances on beginning of year deferred balances — (320 ) (9 ) Unremitted foreign earnings — (77 ) (5 ) U.K. statutory rate change (8 ) — (13 ) Total deferred provision for income taxes $ (14 ) $ (353 ) $ (18 ) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 35% as a result of the following: Years ended December 31, 2015 2014 2013 U.S. statutory federal rate, expected (benefit) provision 35 % (35 )% 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (10 ) (5 ) (12 ) Noncontrolling interests and equity earnings (8 ) (4 ) (5 ) State and local income taxes, net of federal benefit 2 (2 ) (1 ) Other permanent differences, net — 2 (2 ) Contingent liability accrual (1 ) 9 7 U.S. taxes on foreign unremitted earnings 1 11 2 Non-deductible goodwill impairment — 20 — Increase in valuation allowance 6 58 15 U.K. statutory rate change 3 — 4 Effective tax rate on income from operations 28 % 54 % 43 % The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2015 2014 Deferred tax assets: Employee compensation and benefits $ 140 $ 175 Foreign tax credit carryforwards 282 233 Accrued foreign tax credit carryforwards 97 89 Loss carryforwards 65 133 Insurance accruals 15 22 Allowance for bad debt 10 10 Accrued liabilities 45 51 Total gross deferred tax assets 654 713 Valuation allowances (542 ) (538 ) Net deferred tax assets 112 175 Deferred tax liabilities: Construction contract accounting $ (12 ) $ (15 ) Intangibles (25 ) (35 ) Depreciation and amortization (2 ) (2 ) Unremitted foreign earnings (39 ) (98 ) Other (29 ) 23 Total gross deferred tax liabilities (107 ) (127 ) Deferred income tax assets, net $ 5 $ 48 The valuation allowance for deferred tax assets was $542 million and $538 million at December 31, 2015 and 2014 , respectively. The net change in the total valuation allowance was an increase of $4 million in 2015 and $455 million in 2014 . The valuation allowance at December 31, 2015 was 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. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Based upon the significant level of historical taxable U.S. losses, management believes that it was not more-likely-than-not that the Company would be able to realize the benefits of the deductible differences and accordingly recognized a valuation allowance for the year ended December 31, 2015 and 2014 for any deferred tax assets not more-likely-than-not to be realized. The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2015 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 505 $ (503 ) $ 2 United Kingdom 80 — 80 Australia 1 (1 ) — Canada 18 (14 ) 4 Mexico (91 ) (2 ) (93 ) Other 34 (22 ) 12 Total $ 547 $ (542 ) $ 5 At December 31, 2015 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2015 Expiration Foreign tax credit carryforwards $ 399 2019-2025 Foreign net operating loss carryforwards $ 122 2015-2035 Foreign net operating loss carryforwards $ 45 Indefinite State net operating loss carryforwards $ 580 Various In determining our foreign cash repatriation strategy and in determining whether earnings would continue to be considered permanently invested, we considered our future U.S. and non-U.S. cash needs such as 1) our anticipated foreign working capital requirements, including funding of our U.K. pension plan, 2) the expected growth opportunities across all geographical markets and 3) our plans to invest in strategic growth opportunities that may include acquisitions around the world. The remaining international cash balances associated with past foreign earnings which we currently intend to permanently reinvest in our foreign entities are not available for domestic use. The company has not recognized an estimated deferred tax liability of approximately $320 million for undistributed earnings of $1.1 billion that it continues to consider to be permanently reinvested in the foreseeable future. These undistributed earnings could be subject to additional tax if remitted, or deemed remitted, as a dividend. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2015 2014 2013 Balance at January 1, $ 228 $ 68 $ 95 Increases related to current year tax positions 18 13 3 Increases related to prior year tax positions 35 168 15 Decreases related to prior year tax positions (3 ) (13 ) (36 ) Settlements (2 ) (1 ) — Lapse of statute of limitations (16 ) (5 ) (2 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (3 ) (2 ) (7 ) Balance at December 31, $ 257 $ 228 $ 68 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $243 million as of December 31, 2015 . The difference between this amount and the amounts reflected in the tabular reconciliation above relates primarily to deferred income tax benefits on uncertain tax positions related to income taxes. In the next twelve months, it is reasonably possible that our uncertain tax positions could change by approximately $5 million due to the expirations of the statute of limitations. We recognize accrued interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. Our accrual for interest and penalties was $13 million for each of the years ended December 31, 2015 and 2014 , respectively. During the years ended December 31, 2015 , 2014 and 2013 , we recognized net interest and penalties charges (benefits) of less than $1 million , $1 million and $(1) million , respectively related to uncertain tax positions. KBR is the parent of a group of domestic companies that are members of a U.S. consolidated federal income tax return. We also file income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to examination by tax authorities for U.S. federal or state and local income tax for years before 2007. KBR is subject to a tax sharing agreement primarily covering periods prior to the April 2007 separation from Halliburton. The tax sharing agreement provides, in part, that KBR will be responsible for any audit settlements directly attributable to its business activity for periods prior to its separation from our former parent. As of December 31, 2015 and 2014 , we have recorded a $19 million and $56 million in "payable to our former parent" on our consolidated balance sheets, respectively, for tax related items under the tax sharing agreement. The remaining $19 million is not due until receipt by KBR of a future foreign tax credit refund claim filed with the IRS. |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 31, 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 claims and disputes pending between us and the U.S. government, which need to be resolved in order 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 the Form 1s received and associated amounts (consistent with discussion in our previous Form 10-K and 10-Q reports) for the annual periods ended December 31, 2015 and 2014 , respectively is as follows: Dollars in millions Form 1s issued and outstanding Amounts withheld by U.S. government Amounts withheld from subcontractors by us Balance at December 31, 2013 $ 274 $ 137 $ 50 Additions — — — Settlements (86 ) (41 ) (18 ) Balance at December 31, 2014 $ 188 $ 96 $ 32 Additions — — — Settlements (15 ) (13 ) — Balance at December 31, 2015 $ 173 $ 83 $ 32 Amounts withheld by the U.S. government are recorded in "claims and accounts receivable" on our consolidated balance sheets. See Note 6 to our consolidated financial statements for additional discussion on claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government contracts in connection with the Form 1s discussed above as well as other disputed contracts. We believe these amounts are probable of collection. 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 Defense Contract Audit Agency ("DCAA"). The DCAA serves in an advisory role to the Defense Contract Management Agency ("DCMA") and the DCMA is responsible for the administration of the majority of our contracts. The scope of these audits include, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the Federal Acquisition Regulations ("FAR") and Cost Accounting Standards ("CAS"), compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. The following is a summary of our audit status as of December 31, 2015 . Direct costs • We have reached agreement on audit reports through 2009. • We are in the process of completing negotiations on $9 million of questioned costs for 2010 through 2011. • We have not received audit reports for 2012 through 2014 (open audits). The direct claimed cost for these years was $1.1 billion , which is significantly less than prior periods. Of this amount, the government has audited the $138 million that relates to the LogCAP III contract. While not complete, indications of questioned costs at the time of this filing are minimal. We expect to receive the final audit reports in the first quarter of 2016. Indirect costs • We have reached agreement on audit reports through 2010. • We have received an audit report for 2011 and no costs were questioned. • We have not received audit reports for 2012 through 2014 (open audits). The indirect costs invoiced for these years amounts to $109 million . None of these costs have been audited. Historically, we have recovered 99.89% of the direct and indirect costs we have claimed for reimbursement from the U.S. government. As a result, for the open audit years we have accrued our estimate of disallowed costs based on our historical recovery rate as a reduction to "claims and accounts receivable" and in "other liabilities" on our consolidated balance sheets. Based on the information received to date, we do not believe the ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. As a result of the Form 1s, open audits and claims discussed above, we have accrued a reserve for unallowable costs at December 31, 2015 and 2014 of $50 million and $74 million , respectively as a reduction to “claims and accounts receivable” and in “other liabilities” on our consolidated balance sheet. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Many of these matters involve allegations of violations of the False Claims Act (“FCA”), which prohibits in general terms fraudulent billings to the government. Suits brought by private individuals are called “qui tams.” 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 determined that we owe FKTC $32 million in connection with other subcontracts. We paid FKTC $19 million and will pay $4 million on pay-when-paid terms in the contract. We have accrued amounts we believe are payable to FKTC in "accounts payable" and "other current liabilities" on our consolidated balance sheets. The remaining $26 million owed to FKTC under contract has not been billed to the government and we will not do so until the related claims and disputes between KBR and the government over the FKTC living container contract are resolved (see DOJ False Claims Act complaint - FKTC Containers below). We believe any cost or 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. 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 at the Radwaniyah Palace Complex near Baghdad, Iraq. Plaintiffs are claiming unspecified damages for personal injury, death and loss of consortium by the parents. After extensive motion practice and appeals, the case is back 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 December 31, 2015 , no amounts have been accrued. We believe the costs of litigation and any damages which might be awarded are either covered by insurance or 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. Burn Pit litigation. From November 2008 through current, KBR was served with in excess of 60 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 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. After extensive motion practice and appeals the cases are now back before the District Court in Baltimore, Maryland for further action in conformity with the Fourth Circuit's ruling on appeal. 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 December 31, 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. 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, before the U.S. District Court for the Southern District of Texas. The Texas cases have been dismissed by the Court on the merits on multiple grounds including the conclusion that no one was injured and are now on appeal to the Fifth Circuit. The plaintiffs are claiming unspecified damages. We believe any costs of litigation and any damages which might be awarded will be billable under the Restore Iraqi Oil ("RIO") contract. As with all costs that are billed under RIO, 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. COFC/ASBCA Claims. During the period of time since the first sodium dichromate 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. 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. After some procedural challenges, KBR’s claims for payment were filed before the ASBCA. On December 23, 2014, we filed a Motion for Partial Summary Judgment asking the ASBCA to find that 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 subsequently filed a motion for summary judgment asking the ASBCA to find that the $30 million in legal fees incurred and expensed to date are reasonable and payable by the government to KBR pursuant to the indemnity agreement. The U.S. government is determining whether to appeal that ruling. 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 December 31, 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 federal regulations. As of December 31, 2015 , we have incurred and expensed $15 million in legal costs to date in defending ourselves in qui tams. Five of the remaining qui tam cases either have been dismissed, are on appeal from a dismissal or are at the dismissal stage. There are two active cases as discussed below. Barko qui tam. Relator Harry Barko, a KBR subcontracts administrator in Iraq for a year in 2004/2005, 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 DOJ investigated Barko's allegations and elected not to intervene. The claim was unsealed in March of 2009. Early phases of this case focused on discovery issues and we successfully sought review and reversal of two 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 December 31, 2015 we have not accrued any loss provisions related to this matter. Howard qui tam. On March 27, 2011 Geoffrey Howard filed a complaint in the Central District of Illinois, Rock Island Division alleging that KBR mischarged the government $628 million for unnecessary materials and equipment. On October 7, 2014 the Department of Justice declined to intervene and the case was partially unsealed. We believe the claims lack merit and we answered and filed a motion to dismiss which was denied on October 15, 2015. The case is starting discovery. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore as of December 31, 2015 we have not accrued any loss provisions related to this matter. DOJ False Claims Act complaint - FKTC Containers. In November 2012, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL against KBR, FKTC and others, 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. 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. On September 30, 2014, the District Court granted FKTC's motion to dismiss for lack of personal jurisdiction. We expect discovery to be substantially completed in 2016. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of December 31, 2015 , no amounts have been accrued. DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the U.S. Department of Justice 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 three 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. The complaint alleges that as a result of the kickbacks, we submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. While the suit is relatively new, the DOJ's investigation dates back to 2004. We self-reported most of the violations and tendered credits to the U.S. government as appropriate. On May 22, 2014, FTKC filed a motion to dismiss which the U.S. government opposed. On April 22, 2014, we filed our answer and in May 2014 the U.S. government filed a Motion to Strike certain affirmative defenses and this motion was granted on March 30, 2015. We do not believe this limits KBR's ability to fully defend all allegations in this matter. As of December 31, 2015 , we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter recorded in "other liabilities" on our consolidated balance sheets. At this time, we believe the likelihood that we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Discovery in the case will start this year and likely run well into 2016. |
Other Commitments And Contingen
Other Commitments And Contingencies | 12 Months Ended |
Dec. 31, 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 IBWE 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 in 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 securities litigation and that stay has not been lifted. 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 provided a limited set of documents to the remaining plaintiff and is awaiting the plaintiff's voluntary dismissal of the case. 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, Commisa, a subsidiary of KBR, Inc., 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). The judgment included reimbursement for sums Commisa was forced to pay from our performance bonds that PEP had previously called (see Performance Bonds discussion below). 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. There has 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 initial multiple attempts to nullify the award in Mexico were rejected by the Mexican courts. However, 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. Other Proceedings. Commisa also initiated collection proceedings in Luxembourg and sought to collect under the North American Free Trade Agreement, the latter of which has been denied pending collection efforts in the U.S. 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. These sums were added to the judgment entered by the Federal Court in New York as discussed above. Consistent with our treatment of probable claim recoveries, we have recorded $400 million of the ICC arbitration award, net of advances, in "claims and accounts receivable" on the consolidated balance sheets. PEP has posted $465 million in cash collateral in the U.S. under the control of the Federal District Court in New York. In addition we have taken action to attach assets in Luxembourg as additional protection to collect on 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 December 31, 2015 , we continue to classify the amount recorded for financial reporting purposes due from PEP as long term. Environmental We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the U.S., these laws and regulations include, among others: the Comprehensive Environmental Response, Compensation and Liability Act; the Resources Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; and the Toxic Substances Control Act. In addition to federal and state laws and regulations, other countries where we do business often have numerous environmental regulatory requirements by which we must abide in the normal course of our operations. These requirements apply to our business segments where we perform construction and industrial maintenance services or operate and maintain facilities. We continue to monitor conditions at sites owned or previously owned. These locations were primarily utilized for manufacturing or fabrication work and are no longer in operation. The use of these facilities created various environmental issues including deposits of metals, volatile and semi-volatile compounds and hydrocarbons impacting surface and subsurface soils and groundwater. The range of remediation costs could change depending on our ongoing site analysis and the timing and techniques used to implement remediation activities. We do not expect that costs related to environmental matters will have a material adverse effect on our consolidated financial position or results of operations. Based on the information presently available to us the assessment and remediation costs associated with all environmental matters is immaterial and we do not anticipate incurring additional costs. We have been named as a potentially responsible party in various clean-up actions taken by federal and state agencies in the U.S. All of these matters have been settled or resolved and as of December 31, 2015 we have not been named in any additional matters. Existing or pending climate change legislation, regulations, international treaties or accords are not expected to have a short-term material direct effect on our business, the markets that we serve or on our results of operations or financial position. However, climate change legislation could have a direct effect on our customers or suppliers, which could impact our business. For example, our commodity-based markets depend on the level of activity of mineral and oil and gas companies and existing or future laws, regulations, treaties or international agreements related to climate change, including incentives to conserve energy or use alternative energy sources, which could impact our business if such laws, regulations, treaties or international agreements reduce the worldwide demand for minerals, oil and natural gas. We will continue to monitor developments in this area. Leases We are obligated under operating leases, principally for the use of land, offices, equipment, field facilities and warehouses. We recognize minimum rental expenses over the term of the lease. When a lease contains a fixed escalation of the minimum rent or rent holidays, we recognize the related rent expense on a straight-line basis over the lease term and record the difference between the recognized rental expense and the amounts payable under the lease as deferred lease credits. We have certain leases for office space where we receive allowances for leasehold improvements. We capitalize these leasehold improvements as property, plant and equipment and deferred lease credits. Leasehold improvements are amortized over the shorter of their economic useful lives or the lease term. Total rent expense was $155 million , $158 million and $159 million in 2015 , 2014 and 2013 , respectively. The current portion of deferred rent of $7 million at December 31, 2015 and 2014 , respectively, is recorded in "other current liabilities" on our consolidated balance sheets and the noncurrent deferred rent of $114 million and $128 million at December 31, 2015 and 2014 , respectively, is recorded in "other liabilities" on our consolidated balance sheets. Future total rental payments on noncancelable operating leases are as follows: Dollars in millions Future rental payments (a) 2016 $ 98 2017 $ 83 2018 $ 72 2019 $ 61 2020 $ 56 Beyond 2020 $ 350 (a) Amounts presented are net of subleases. Insurance Programs Our employee-related health care benefits program is self-funded. Our workers’ compensation, automobile and general liability insurance programs include a deductible applicable to each claim. Claims in excess of our deductible are paid by the insurer. The liabilities are based on claims filed and estimates of claims incurred but not reported. As of December 31, 2015 , liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $52 million , comprised of $14 million included in "accrued salaries, wages and benefits," $12 million included in "other current liabilities" and $26 million included in "other liabilities" all on our consolidated balance sheets. As of December 31, 2014 , liabilities for unpaid and incurred but not reported claims for all insurance programs totaled approximately $66 million , comprised of $14 million included in "accrued salaries, wages and benefits," $19 million included in "other current liabilities" and $33 million included in "other liabilities" all on our consolidated balance sheets. |
Shareholders' Equity (Notes)
Shareholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 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, 2012 $ 2,511 $ 2,049 $ 1,709 $ (606 ) $ (610 ) $ (31 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 6 6 — — — — Dividends declared to shareholders (36 ) — (36 ) — — — Adjustment pursuant to tax sharing agreement (7 ) (7 ) — — — — Repurchases of common stock (7 ) — — (7 ) — — Issuance of ESPP shares 4 1 — 3 — — Investments by noncontrolling interests 9 — — — — 9 Distributions to noncontrolling interests (109 ) — — — — (109 ) Other noncontrolling interests activity 2 — — — — 2 Net income 171 — 75 — — 96 Other comprehensive (loss), net of tax (121 ) — — — (130 ) 9 Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 22 22 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (106 ) — — (106 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (61 ) — — — — (61 ) Other noncontrolling interests activity 2 — — — — 2 Net income (loss) (1,198 ) — (1,262 ) — — 64 Other comprehensive (loss), net of tax (134 ) — — — (136 ) 2 Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) Acquisition of noncontrolling interest (40 ) (40 ) — — — — Share-based compensation 18 18 — — — — Common stock issued upon exercise of stock options 1 1 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (62 ) — — (62 ) — — Issuance of ESPP shares 5 — — 5 — — Distributions to noncontrolling interests (28 ) — — — — (28 ) Other noncontrolling interests activity (3 ) — — — (3 ) Net income 226 — 203 — — 23 Other comprehensive income, net of tax 47 — — — 45 2 Balance at December 31, 2015 $ 1,052 $ 2,070 $ 595 $ (769 ) $ (831 ) $ (13 ) Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2015 2014 2013 Accumulated foreign currency translation adjustments, net of tax of $1, $4 and $0 $ (269 ) $ (203 ) $ (131 ) Pension and post-retirement benefits, net of tax of $209, $231 and $221 (560 ) (670 ) (608 ) Changes in fair value of derivatives, net of tax of $0, $0 and $0 (2 ) (3 ) (1 ) Total accumulated other comprehensive loss $ (831 ) $ (876 ) $ (740 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance as of December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (73 ) (96 ) (2 ) (171 ) Amounts reclassified from accumulated other comprehensive income 1 34 — 35 Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Other comprehensive income adjustments before reclassifications (70 ) 71 — 1 Amounts reclassified from accumulated other comprehensive income 4 39 1 44 Balance at December 31, 2015 $ (269 ) $ (560 ) $ (2 ) $ (831 ) Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2015 December 31, 2014 Affected line item on the Consolidated Statements of Operations Pension and post-retirement benefits Amortization of actuarial loss (a) $ (48 ) $ (42 ) See (a) below Tax benefit (expense) 9 8 Provision for income taxes Net pension and post-retirement benefits $ (39 ) $ (34 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. Shares of common stock Shares in millions Shares Balance at December 31, 2013 173.9 Common stock issued 0.5 Balance at December 31, 2014 174.4 Common stock issued 0.7 Balance at December 31, 2015 175.1 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2013 25.7 $ 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 712 Treasury stock acquired, net of ESPP shares issued 3.4 57 Balance at December 31, 2015 33.0 $ 769 Dividends We declared dividends totaling $47 million in 2015 and 2014 . As of December 31, 2015 and 2014 , we had accrued dividends payable of $12 million included in "other current liabilities" on our consolidated balance sheets. |
Share Repurchase
Share Repurchase | 12 Months Ended |
Dec. 31, 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 annual share repurchases activity under these programs: Year Ending December 31, 2015 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 2,992,687 $ 17.43 $ 52 Repurchases under the existing share maintenance program 466,974 15.43 7 Withheld to cover shares 182,964 16.98 3 Total 3,642,625 $ 17.15 $ 62 Year Ending December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 593,042 26.07 16 Withheld to cover shares 73,557 27.69 2 Total 4,041,078 $ 26.15 $ 106 |
Share-based Compensation And In
Share-based Compensation And Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans Stock Plans In 2015 , 2014 and 2013 share-based compensation awards were granted to employees under KBR share-based compensation plans. KBR Stock and Incentive Plan (Amended May 2012) In November 2006, KBR established the KBR Stock and Incentive Plan ("KBR Stock Plan"), which provides for the grant of any or all of the following types of share-based compensation listed below: • stock options, including incentive stock options and nonqualified stock options; • stock appreciation rights, in tandem with stock options or freestanding; • restricted stock; • restricted stock units; • cash performance awards; and • stock value equivalent awards. In May 2012, the KBR Stock Plan was amended to add 2 million shares of our common stock available for issuance under the KBR Stock Plan. Additionally, this amendment increased the sublimit under the Stock Plan in the form of restricted stock awards, restricted stock unit awards or pursuant to performance awards by 2 million . Under the terms of the KBR Stock Plan, 12 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 5.5 million shares can be awarded as restricted stock or restricted stock units or pursuant to cash performance awards. At December 31, 2015 , approximately 2.3 million shares were available for future grants under the KBR Stock Plan, of which approximately 0.7 million shares remained available for restricted stock awards or restricted stock unit awards. KBR Stock Options Under the KBR Stock Plan, stock options are granted with an exercise price not less than the fair market value of the common stock on the date of the grant and a term no greater than 10 years. The term and vesting periods are established at the discretion of the Compensation Committee at the time of each grant. We amortize the fair value of the stock options over the vesting period on a straight-line basis. Options are granted from shares authorized by our Board of Directors. Total number of stock options granted and the assumptions used to determine the fair value of granted options were as follows: Years ended December 31, KBR stock options assumptions summary 2015 2014 Granted stock options (shares in millions) 1.1 0.6 Weighted average expected term (in years) 5.5 5.5 Weighted average grant-date fair value per share $ 4.91 $ 9.57 Years ended December 31, KBR stock options range assumptions summary 2015 2014 Range Range Start End Start End Expected volatility range 33.92 % 39.65 % 36.48 % 40.49 % Expected dividend yield range 1.15 % 2.13 % 1.08 % 1.52 % Risk-free interest rate range 1.46 % 2.12 % 1.67 % 2.21 % For KBR stock options granted in 2015 , 2014 and 2013 , the fair value of options at the date of grant was estimated using the Black-Scholes-Merton option pricing model. The expected volatility of KBR options granted in each year is based upon a blended rate that uses the historical and implied volatility of common stock for KBR and selected peers. Effective in 2014, the expected term of KBR options granted was based on KBR's historical experience. The expected term of KBR options granted in 2013 was based on the average of the life of the option and the vesting period of the option. The estimated dividend yield is based upon KBR’s annualized dividend rate divided by the market price of KBR’s stock on the option grant date. The risk-free interest rate is based upon the yield of U.S. government issued treasury bills or notes on the option grant date. The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2015 . KBR stock options activity summary Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 3,160,091 $ 26.96 6.54 $ 2.40 Granted 1,067,308 16.52 Exercised (62,503 ) 12.32 Forfeited (231,949 ) 23.65 Expired (450,290 ) 30.19 Outstanding at December 31, 2015 3,482,657 $ 23.83 6.55 $ 2.92 Exercisable at December 31, 2015 2,059,060 $ 26.18 5.02 $ 2.00 The total intrinsic values of options exercised for the years ended December 31, 2015 , 2014 and 2013 were $0.3 million , $3 million and $7 million , respectively. As of December 31, 2015 , there was $5 million of unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options, expected to be recognized over a weighted average period of approximately 1.75 years. Stock option compensation expense was $5 million in 2015 , $6 million in 2014 and $9 million in 2013 . Total income tax benefit recognized in net income for share-based compensation arrangements was $2 million in 2015 and 2014 and $3 million in 2013 . KBR Restricted stock Restricted shares issued under the KBR Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically over a period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and ratably charged to income over the period during which the restrictions lapse on a straight-line basis. For awards with performance conditions, an evaluation is made each quarter as to the likelihood of meeting the performance criteria. Share-based compensation is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date. The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2015 under the KBR Stock Plan. Restricted stock activity summary Number of Shares Weighted Average Grant-Date Fair Value per Share Nonvested shares at December 31, 2014 1,128,877 $ 28.99 Granted 855,499 16.66 Vested (529,440 ) 25.97 Forfeited (80,970 ) 19.05 Nonvested shares at December 31, 2015 1,373,966 $ 23.05 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2015 , 2014 and 2013 was $16.66 , $28.46 and $30.64 , respectively. Restricted stock compensation expense was $13 million for 2015 , $16 million for 2014 and $7 million for 2013 . Total income tax benefit recognized in net income for share-based compensation arrangements during 2015 , 2014 and 2013 was $5 million , $6 million , and $3 million , respectively. As of December 31, 2015 , there was $18 million of unrecognized compensation cost, net of estimated forfeitures, related to KBR’s non-vested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 1.82 years. The total fair value of shares vested was $9 million in 2015 , $6 million in 2014 and $8 million in 2013 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $14 million in 2015 , $11 million in 2014 and $7 million in 2013 based on the weighted-average fair value on the date of grant. Share-based compensation expense The grant-date fair value of employee share options is estimated using option-pricing models. If an award is modified after the grant date, incremental compensation cost is recognized immediately as of the modification. Share-based compensation expense consists of $9 million recorded to cost of services, while the remaining $9 million is recorded to general and administrative expenses on our consolidated statements of operations. The benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefits) are classified as additional paid-in-capital, and cash retained as a result of these excess tax benefits is presented in the statements of cash flows as financing cash inflows. Share-based compensation summary table Years ended December 31, Dollars in millions 2015 2014 2013 Share-based compensation $ 18 $ 22 $ 16 Income tax benefit recognized in net income for share-based compensation $ 7 $ 8 $ 6 Incremental compensation cost $ 2 $ 2 $ 1 Incremental compensation cost resulted from modifications of previously granted share-based awards which allowed certain employees to retain their awards after leaving the company. Excess tax benefits realized from the exercise of share-based compensation awards are recognized as paid-in capital in excess of par. KBR Cash Performance Based Award Units ("Cash Performance Awards") Under the KBR Stock Plan, for Cash Performance Awards granted in the year 2015 , performance is based 50% on average Total Shareholder Return ("TSR"), as compared to the average TSR of KBR’s peers, and 50% on KBR’s Job Income Sold ("JIS"). For Cash Performance Awards granted in 2014 and 2013, performance is based 100% on average TSR as compared to the average TSR of KBR’s peers. In accordance with the provisions of ASC 718 - Compensation-Stock Compensation, the TSR portion for the performance award units are classified as liability awards and remeasured at the end of each reporting period at fair value until settlement. The fair value approach uses the Monte Carlo valuation method which analyzes the companies comprising KBR’s peer group, considering volatility, interest rate, stock beta and TSR through the grant date. The JIS calculation is based on the Company's JIS earned at a target level averaged over a three year period. The JIS portion of the Cash Performance Award is also classified as a liability award and remeasured at the end of each reporting period based on our estimate of the amount to be paid at the end of the vesting period. The cash performance award units may only be paid in cash. Under the KBR Stock Plan, in 2015 , we granted 22 million performance based award units ("Cash Performance Awards") with a three -year performance period from January 1, 2015 to December 31, 2017 . In 2014 , we granted 27 million Cash Performance Awards with a three -year performance period from January 1, 2014 to December 31, 2016 . In 2013 , we granted 30 million Cash Performance Awards with a three -year performance period from January 1, 2013 to December 31, 2015 . Cash Performance Awards forfeited, net of previous plan payout, totaled 15 million , 17 million , and 10 million at December 31, 2015 , 2014 and 2013 , respectively. At December 31, 2015 , the outstanding balance for Cash Performance Awards is 70.8 million units. Cash Performance Awards are not considered earned until required performance conditions are met. Additionally, approval by the Compensation Committee of the Board of Directors is required before earned Cash Performance Awards are paid. Cost for the Cash Performance Awards is accrued over the requisite service period. For the years ended December 31, 2015 , 2014 and 2013 , we recognized $3 million , $0 million and $8 million , respectively, in expense for the Cash Performance Awards. The expense associated with these Cash Performance Awards is included in cost of services and general and administrative expense in our consolidated statements of operations. The liability for awards included in "employee compensation and benefits" on our consolidated balance sheets was $5 million at December 31, 2015 , of which none will become due within one year and $1 million at December 31, 2014 . KBR Employee Stock Purchase Plan (“ESPP”) Under the ESPP, eligible employees may withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR’s common stock. Unless KBR’s Board of Directors determine otherwise, each six-month offering period commences at the beginning of February and August of each year. Employees who participate in the ESPP will receive a 5% discount on the stock price at the end of each period. During 2015 and 2014 , our employees purchased approximately 204,000 and 159,000 shares, respectively, through the ESPP. These shares were issued from our treasury share account. |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Income Per Share | 19 . 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: Years ended December 31, Shares in millions 2015 2014 2013 Basic weighted average common shares outstanding 144 146 148 Stock options and restricted shares — — 1 Diluted weighted average common shares outstanding 144 146 149 For purposes of applying the two-class method in computing earnings (loss) per share, net earnings allocated to participating securities was approximately $1.7 million , or $0.01 per share, for the fiscal year 2015 , none for fiscal year 2014 and $0.3 million , or a negligible amount per share, for fiscal year 2013 . The diluted earnings (loss) per share calculation did not include 3.4 million , 3.0 million and 1.8 million antidilutive weighted average shares for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Financial Instruments And Risk
Financial Instruments And Risk Management | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments And Risk Management | Financial Instruments and Risk Management Foreign currency risk. We conduct business 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 December 31, 2015 , the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $104 million , all of which had durations of 22 days or less. We also had approximately $22 million (notional value) of foreign currency hedges which had durations of 24 months or less. The fair value of our balance sheet and cash flow hedges included in "other current assets" and "other current liabilities" on our consolidated balance sheets was immaterial at December 31, 2015 and 2014 , respectively. These fair values 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 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 (expense)" on our consolidated statements of operations. Years ended December 31, Gains (Losses) Dollars in Millions 2015 2014 Balance Sheet Hedges - Fair Value (40 ) (47 ) Balance Sheet Position - Remeasurement 50 47 Net 10 — Interest rate risk. Certain of our unconsolidated subsidiaries and joint ventures are exposed to interest rate risk through their variable rate borrowings. This variable rate exposure is managed with interest rate swaps. The unrealized net losses on the interest rate swaps held by our unconsolidated subsidiaries and joint ventures was immaterial as of December 31, 2015 , 2014 and 2013 , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 amendments eliminate 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 entities. This ASU is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU 2015-02 is not expected to have a material impact on our financial statements or on known trends, demands, uncertainties and events in our business. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize 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 intend to apply the modified retrospective method of adoption with the cumulative effect of adoption 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 determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business. |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | Quarterly Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2015 and 2014 is presented in the following table. In the following table, the sum of basic and diluted “Net income (loss) attributable to KBR per share” for the four quarters may differ from the annual amounts due to the required method of computing weighted average number of shares in the respective periods. Additionally, due to the effect of rounding, the sum of the individual quarterly earnings per share amounts may not equal the calculated year earnings per share amount. (Dollars in millions, except per share amounts) First Second Third Fourth Year 2015 Total revenues $ 1,436 $ 1,381 $ 1,199 $ 1,080 $ 5,096 Gross profit 70 74 87 94 325 Equity in earnings of unconsolidated affiliates 35 53 35 26 149 Operating income 64 96 75 75 310 Net income 51 68 59 48 226 Net income attributable to noncontrolling interests (7 ) (6 ) (4 ) (6 ) (23 ) Net income attributable to KBR 44 62 55 42 203 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.30 $ 0.43 $ 0.38 $ 0.29 $ 1.40 Net income attributable to KBR per share—Diluted $ 0.30 $ 0.43 $ 0.38 $ 0.29 $ 1.40 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2014 Total revenues $ 1,633 $ 1,659 $ 1,657 $ 1,417 $ 6,366 Gross profit (loss) (a) 39 28 30 (162 ) (65 ) Equity in earnings of unconsolidated affiliates 31 49 38 45 163 Operating income (loss) (b) 10 25 10 (839 ) (794 ) Net income (loss) (c) (20 ) 8 45 (1,231 ) (1,198 ) Net income attributable to noncontrolling interests (23 ) (16 ) (15 ) (10 ) (64 ) Net income (loss) attributable to KBR (43 ) (8 ) 30 (1,241 ) (1,262 ) Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) Net income (loss) attributable to KBR per share—Diluted $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) (a) The losses in gross profit in the fourth quarter of 2014 reflect changes in cost estimates increasing the loss provision by $80 million on two power projects in our Non-strategic Business segment and changes in estimates of $53 million in our E&C business segment. See Note 2 to our consolidated financial statements. (b) Included in the operating loss of the fourth quarter of 2014 is a goodwill impairment charge of $446 million as well as asset impairment and restructuring charges of $214 million . See Notes 8 and 9 for our discussion on these charges. (c) Net loss for the fourth quarter of 2014 includes $391 million of provision for income taxes primarily from an increase in our valuation allowance on deferred tax assets. |
Description Of Company And Si31
Description Of Company And Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of Consolidation Our 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 10 to our 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 consolidated statements of operations, consolidated balance sheets and the 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 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 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 consolidated financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Standards Balance Sheet Classification of Deferred Taxes. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. The amendments in the ASU, which apply to all entities that present a classified balance sheet, eliminate the current requirement to present deferred tax liabilities and assets as current and noncurrent. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for entities as of the beginning of an interim or annual period. Effective December 31, 2015, we retrospectively adopted ASU 2015-17 and, as a result, reclassified current deferred tax assets of $90 million and current deferred tax liabilities of $46 million as non-current on our consolidated balance sheet for the year ended December 31, 2014. Fair Value Measurements. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent). The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using net asset value per share practical expedient. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Earlier application is permitted for entities as of the beginning of an interim or annual period. A reporting entity should apply the amendments retrospectively to all periods presented. On December 31, 2015, we adopted ASU 2015-07 as presented in our Fair Value Measurement tables in Note 11 to our consolidated financial statements. Discontinued Operations. In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). The amendments in this ASU added criteria providing that only those disposals of a component of an entity or a group of components of an entity that represent a strategic shift in operations should be presented as discontinued operations. The update allows an entity to present a disposal as discontinued operations even when it has continuing cash flows and significant continuing involvement with the disposed component. The update also requires expanded disclosures for discontinued operations and individually significant components of an entity that does not qualify for discontinued operations reporting. On January 1, 2015, we adopted ASU 2014-08. The adoption of this update did not impact our consolidated financial statements. Service Concession Arrangements. In January 2014, the FASB issued 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. The amendments in this ASU specify 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 and 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 consolidated financial statements. |
Engineering and construction contracts | Revenue Recognition Engineering and Construction Contracts Contracts. Our revenue is primarily derived from long-term contracts. Revenues from contracts to provide construction, engineering, design or similar services is reported on the percentage-of-completion method of accounting in accordance with FASB Accounting Standards Codification ("ASC") 605 - Revenue Recognition. Depending on the type of job, progress is generally measured based upon man-hours expended to total man-hours estimated at completion, costs incurred to total estimated costs at completion, or physical progress. All known or anticipated losses on contracts are provided for in the period they become evident. Certain claims and change orders that are in the process of negotiation with customers for additional work or changes in the scope of work are included in contract value when collection is deemed probable and the value can be reliably estimated. Our work is performed under three general types of contracts: fixed-price contracts, cost-reimbursable plus a fee or mark-up contracts and "hybrid" contracts containing both cost-reimbursable and fixed-price scopes. All contract types may be modified by cost escalation provisions or other risk sharing mechanisms and incentive and penalty provisions. During the term of a project, the contract or components of the contract may be renegotiated to include characteristics of a different contract type. When we negotiate any type of contract, we frequently are required to accomplish the scope of work and meet certain performance criteria within a specified time frame; otherwise, we could be assessed damages, which in some cases are agreed-upon liquidated damages. We include an estimate of liquidated damages in our estimates of total contract value when it is deemed probable that they will be assessed. Profit is recorded based upon the product of estimated contract profit-at-completion times the current percentage-complete for the contract. Fixed-price contracts, which include unit-rate contracts (essentially a fixed-price contract with the only variable being units of work performed), are for a fixed sum to cover all costs and any profit element for a defined scope of work. Fixed-price contracts entail significant risk to us because they require us to predetermine the work to be performed, the project execution schedule and the costs associated with the work. As a result, we may benefit or be penalized for cost variations from our original estimates. However, these contract prices may be adjusted for changes in scope of work, new or changing laws and regulations and other negotiated events. Cost-reimbursable contracts include contracts where the price is variable based upon our actual costs incurred for time and materials and for reimbursable labor hour contracts. Profit on cost-reimbursable contracts may be a fixed amount, a mark-up applied to costs incurred or a combination of the two. Cost-reimbursable contracts are generally less risky than fixed-price contracts because the owner/customer retains many of the project risks. Our cost-reimbursable contracts include the following: • Cost-plus and Time and Material contracts - These are contracts under which we are reimbursed for allowable or otherwise defined costs incurred plus a fee or mark-up. The contracts may also include incentives for various performance criteria, including quality, timeliness, ingenuity, safety and cost-effectiveness. In addition, our costs are generally subject to review by our clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract. • Target-price contracts - These are contracts under which we are reimbursed for costs plus a fee consisting of two parts: (1) a fixed amount, which does not vary with performance, but may be at risk when a target price is exceeded; and (2) an award amount based on the performance and cost-effectiveness of the project. As a result, we are generally able to recover cost overruns on these contracts from actual damages for late delivery or the failure to meet certain performance criteria. Target-price contracts also generally provide for sharing of costs in excess of or savings for costs less than the target. In some contracts, we may agree to share cost overruns in excess of our fee, which could result in a loss on the project. Unapproved Change Orders and Claims. Revenues and gross profit on contracts can be significantly affected by change orders and claims that may not be approved by the customer until the later stages of a contract or subsequent to the date a project is completed. If it is not probable that the costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. For certain contracts where it is probable that the costs will be recovered through a change order, total estimated contract revenue is increased by the lesser of the amounts management expects to recover or the costs expected to be incurred. When estimating the amount of total gross profit or loss on a contract, we include unapproved change orders or claims to our clients as adjustments to revenues. We include claims to vendors, subcontractors and others as adjustments to total estimated costs. Claims against others are recorded up to the extent of the lesser of the amounts management expects to recover or to costs incurred and include no profit until such time as they are finalized and approved. See Note 5 to our consolidated financial statements for our discussion on unapproved change orders and claims. |
Revenue Recognition, Sales of Services [Policy Text Block] | Services Contracts Revenues for our services contracts is recorded as the services are rendered and the amounts are deemed realized or realizable and earned. Revenue is recognized when persuasive evidence of a customer arrangement exists, delivery has occurred or services have been rendered, the price to the customer is fixed and determinable, and collection of revenue is reasonably assured. Revenue associated with incentive fees for these contracts is recognized when earned. |
Government contract | Government Contracts Some of the services provided to the United States ("U.S.") government are performed on cost-reimbursable contracts. Generally, these contracts may contain base fees (a fixed profit percentage applied to our estimates of costs to complete the work). Revenues are recognized at the time services are performed, and such revenues include base fees, actual direct project costs incurred and an allocation of indirect costs. Indirect costs are applied using rates approved by our government customers. The general, administrative and overhead cost reimbursement rates are estimated periodically in accordance with government contract accounting regulations and may change based on actual costs incurred or based upon the volume of work performed. Revenues are reduced for our estimate of costs that either are in dispute with our customer or have been identified as potentially unallowable pursuant to the terms of the contract or the federal acquisition regulations. |
Gross Profit [Policy Text Block] | Gross Profit Gross profit represents business segment revenues less the cost of revenues, which includes business segment overhead costs directly attributable to the business segment. |
Cost Estimates [Policy Text Block] | Cost Estimates Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs, included in cost of revenues, include charges for such items as facilities, engineering, project management, quality control, bids and proposals and procurement. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | General and Administrative Expenses Our general and administrative expenses represent corporate overhead expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and corporate accounting, human resources and various other corporate functions. |
Cash and equivalents | Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 3 to our consolidated financial statements for our discussion on cash and equivalents. |
Allowance for bad debts | Accounts Receivable Accounts receivable are recorded at the invoiced amount based on contracted prices. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. We establish an allowance for doubtful accounts based on the assessment of the clients’ willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. See Note 4 to our consolidated financial statements for our discussion on accounts receivable. Retainage, included in accounts receivable, represents amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our retainage receivable excludes amounts withheld by the U.S. government on certain contracts. See Note 14 to our consolidated financial statements for our discussion on U.S. government receivables. |
Costs In Excess Of Billings And Billings In Excess Of Costs [Policy Text Block] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts, Including Claims, and Advanced Billings and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of accounting. Costs and estimated earnings in excess of billings on uncompleted contracts ("CIE") represent the excess of contract costs and profits recognized to date using the percentage-of-completion method over billings to date on certain contracts. Billings in excess of costs and estimated earnings on uncompleted contracts ("BIE") represents the excess of billings to date over the amount of contract costs and profits recognized to date using the percentage-of-completion method on certain contracts. With the exception of claims and change orders that we are in the process of negotiating with customers, unbilled receivables are usually billed during normal billing processes following achievement of the contractual requirements. See Note 5 to our consolidated financial statements for our discussion on CIE and BIE. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7 to our consolidated financial statements for our discussion on property, plant and equipment. |
Goodwill and other intangibles | Goodwill Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, we test goodwill for impairment on an annual basis and more frequently when negative conditions or other triggering events arise. We test goodwill for impairment annually as of October 1 and conduct our goodwill impairment testing at the reporting unit level. For purposes of the goodwill impairment test, our reporting units are operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. Our October 1, 2015 annual impairment test for goodwill was a quantitative analysis using the two-step process that involves comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying value of a reporting unit exceeds its fair value, we perform the second step of the goodwill impairment test to measure the amount of goodwill impairment loss to be recorded, as necessary. The second step compares the implied fair value of the reporting unit's goodwill to the carrying value, if any, of that goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. In instances where we reorganize our reporting units, we perform an additional impairment test immediately before and after the change in reporting units, utilizing the same methodology as our October 1st test and record impairment if any. The fair values of reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). See Note 8 for our discussion on our annual impairment test. |
Impairment of long-lived assets | Intangible Assets Our intangible assets are related to various licenses, trade names, patents, technology and related processes. Except for an $11 million indefinite lived trade name, which we do not amortize, the costs of our intangible assets are generally amortized over their estimated useful lives up to 25 years . The method of amortization reflects the expected realization pattern of the economic benefits relevant to the intangible assets, or if we are unable to determine the expected realization pattern reliably, they are amortized using the straight-line method. We also have intangible assets related to trade names, client relationships and non-compete agreements which are associated with acquisitions we have completed and are generally amortized over a three- to ten-year period on a straight-line basis. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 8 to our consolidated financial statements for our discussion on intangible assets |
Investment, Policy [Policy Text Block] | Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control of, an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually and whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 10 to our consolidated financial statements for our discussion on equity method investments. Where we are unable to exercise significant influence over the investee, or when our investment balance is reduced to zero from our proportionate share of losses, the investments are accounted for under the cost method. Under the cost method, investments are carried at cost and adjusted only for other-than-temporary declines in fair value, distributions of earnings, or additional investments. |
Variable interest entities | Variable Interest Entities The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC 810 - Consolidation which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term energy-related construction projects in our E&C business segment are executed through such joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as privately financed initiatives in our GS business segment, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. As required by ASC 810 - Consolidation, we perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 10 to our consolidated financial statements for our discussion on variable interest entities. |
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 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. |
Pensions | Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 15 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. |
Income taxes | Income Taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 13 to our consolidated financial statements for our discussion on income taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more-likely-than-not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results. We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year. We recognize the effect of income tax positions only if it is more-likely-than-not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company records potential interest and penalties related to unrecognized tax benefits in income tax expense. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome. See Note 13 for our discussion on income taxes. |
Derivative instruments | Derivative Instruments We enter into derivative financial transactions to hedge existing or forecasted exposures to changing foreign currency exchange rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives at fair value on the balance sheet. Derivatives that are not accounted for as hedges under ASC 815 - Derivatives and Hedging, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a cash flow hedge under ASC 815, changes in the fair value of derivatives are recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a designated hedge's change in fair value is recognized in earnings. See Note 20 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within "Other non-operating income (expense)" on our consolidated statements of operations. |
Concentration of credit risk | Concentration of Credit Risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues (which are generally not collateralized). A significant percentage of revenues is generated from transactions with Chevron Corporation ("Chevron") primarily from a major liquefied natural gas ("LNG") project in Australia within our E&C business segment, which is nearing completion. No other customers represented 10% or more of consolidated revenues in any of the periods presented. The following tables present summarized data related to our transactions with Chevron. Revenues from major customers: Years ended December 31, Dollars in millions 2015 2014 2013 Chevron revenues $ 523 $ 1,069 $ 1,859 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2015 2014 2013 Chevron revenues percentage 10 % 17 % 26 % Chevron receivables percentage 5 % 9 % 13 % |
Noncontrolling interest | Noncontrolling interest Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements. |
Foreign currency translation | Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in "accumulated other comprehensive loss" on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in "accumulated other comprehensive loss" on our consolidated balance sheets. |
Stock-based compensation | Share-based compensation We account for share-based payments, including grants of employee stock options, restricted stock-based awards and performance cash units, in accordance with ASC 718 - Compensation-Stock Compensation, which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in our consolidated statements of operations based on their fair values on the award date and the estimated number of shares we ultimately expect to vest. We recognize share-based compensation expense on a straight-line basis over the service period of the award, which is no greater than 5 years . See Note 18 to our consolidated financial statements for our discussion on share-based compensation and incentive plans. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and Contingencies We record liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Description Of Company And Si32
Description Of Company And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule Of Revenues And Receivables From Major Customers | The following tables present summarized data related to our transactions with Chevron. Revenues from major customers: Years ended December 31, Dollars in millions 2015 2014 2013 Chevron revenues $ 523 $ 1,069 $ 1,859 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2015 2014 2013 Chevron revenues percentage 10 % 17 % 26 % Chevron receivables percentage 5 % 9 % 13 % |
Schedule Of Other Current Assets | The components of "other current assets" on our consolidated balance sheets as of December 31, 2015 and 2014 are presented below: December 31, Dollars in millions 2015 2014 Inventory $ 5 $ 8 Restricted cash 2 17 Prepaid expenses 58 58 Value-added tax receivable 9 27 Assets held-for-sale — 10 Advances to subcontractors 9 3 Other miscellaneous assets 26 24 Total other current assets $ 109 $ 147 |
Components Of Other Current Liabilities | The components of "other current liabilities" on our consolidated balance sheets as of December 31, 2015 and 2014 are presented below: December 31, Dollars in millions 2015 2014 Reserve for estimated losses on uncompleted contracts (a) $ 60 $ 159 Retainage payable 49 88 Income taxes payable 56 61 Taxes not based on income 7 8 Value-added tax payable 12 31 Insurance payable 12 19 Dividend payable 12 12 Other miscellaneous liabilities 55 64 Total other current liabilities $ 263 $ 442 (a) See Note 2 to our consolidated financial statements for further discussion on our reserve for estimated losses on uncompleted contracts. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, impairment of goodwill, asset impairment and restructuring charges, capital expenditures, and depreciation and amortization by reporting segment. Operations by Reportable Segment Years ended December 31, Dollars in millions 2015 2014 2013 Revenues: Technology & Consulting $ 324 $ 353 $ 330 Engineering & Construction 3,454 4,584 4,956 Government Services 663 638 931 Other — — — Subtotal 4,441 5,575 6,217 Non-strategic Business 655 791 997 Total $ 5,096 $ 6,366 $ 7,214 Gross profit (loss): Technology & Consulting $ 77 $ 53 $ 69 Engineering & Construction 224 141 263 Government Services (3 ) (32 ) 90 Other — — — Subtotal 298 162 422 Non-strategic Business 27 (227 ) (5 ) Total $ 325 $ (65 ) $ 417 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — Engineering & Construction 104 90 76 Government Services 45 73 61 Other — — — Subtotal 149 163 137 Non-strategic Business — — — Total $ 149 $ 163 $ 137 Impairment of goodwill (Note 8): Technology & Consulting $ — $ — $ — Engineering & Construction — (293 ) — Government Services — — — Other — — — Subtotal — (293 ) — Non-strategic Business — (153 ) — Total $ — $ (446 ) $ — Asset impairment and restructuring charges (Note 9): Technology & Consulting $ (10 ) $ (2 ) $ — Engineering & Construction (34 ) (24 ) — Government Services — (5 ) — Other (22 ) (149 ) — Subtotal (66 ) (180 ) — Non-strategic Business (4 ) (34 ) — Total $ (70 ) $ (214 ) $ — Segment operating income (loss): Technology & Consulting $ 62 $ 49 $ 70 Engineering & Construction 295 (114 ) 278 Government Services 37 25 145 Other (140 ) (312 ) (181 ) Subtotal 254 (352 ) 312 Non-strategic Business 56 (442 ) (4 ) Total $ 310 $ (794 ) $ 308 Years ended December 31, Dollars in millions 2015 2014 2013 Capital expenditures: Technology & Consulting $ — $ — $ — Engineering & Construction 6 19 10 Government Services — — 1 Other 4 34 67 Subtotal 10 53 78 Non-strategic Business — — — Total $ 10 $ 53 $ 78 Depreciation and amortization: Technology & Consulting $ 2 $ 2 $ 2 Engineering & Construction 17 23 23 Government Services 6 8 9 Other 14 33 27 Subtotal 39 66 61 Non-strategic Business — 6 7 Total $ 39 $ 72 $ 68 |
Schedule of Change in Accounting Estimate, Contract Costs [Table Text Block] | 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 consolidated balance sheets, was as follows: Dollars in millions Reserve for Estimated Losses Balance at December 31, 2013 Beginning Balance $ 56 Changes in estimates on loss projects 106 Change due to progress on loss projects (53 ) Ending Balance $ 109 Balance at December 31, 2014 Changes in estimates on loss projects 177 Change due to progress on loss projects (127 ) Ending Balance $ 159 Balance at December 31, 2015 Changes in estimates on loss projects 14 Change due to progress on loss projects (113 ) Ending Balance $ 60 |
Schedule of Balance Sheet Information by Operating Segment | December 31, Dollars in millions 2015 2014 Total assets: Technology & Consulting $ 198 $ 173 Engineering & Construction 1,656 2,008 Government Services 464 545 Other 1,060 1,182 Subtotal 3,378 3,908 Non-strategic Business 34 170 Total $ 3,412 $ 4,078 Goodwill (Note 8): Technology & Consulting $ 31 $ 31 Engineering & Construction 233 233 Government Services 60 60 Other — — Subtotal 324 324 Non-strategic Business — — Total $ 324 $ 324 Equity in and advances to related companies (Note 10): Technology & Consulting $ — $ — Engineering & Construction 255 119 Government Services 26 31 Other — — Subtotal 281 150 Non-strategic Business — 1 Total $ 281 $ 151 |
Schedule of Selected Geographic Information | Years ended December 31, Dollars in millions 2015 2014 2013 Revenues: United States $ 2,212 $ 2,324 $ 2,470 Australia 836 1,380 1,768 Africa 164 251 593 Middle East 786 707 913 Europe 495 624 575 Canada 185 752 687 Latin America 131 111 74 Other 287 217 134 Total $ 5,096 $ 6,366 $ 7,214 December 31, Dollars in millions 2015 2014 Property, plant & equipment, net: United States $ 73 $ 115 United Kingdom 48 68 Other 48 64 Total $ 169 $ 247 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of our cash and equivalents balance are as follows: December 31, 2015 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 177 $ 253 $ 430 Short-term investments (c) 293 107 400 Cash and equivalents held in joint ventures 49 4 53 Total $ 519 $ 364 $ 883 December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 111 $ 320 Short-term investments (c) 481 89 570 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 (c) Includes time deposits, money market funds, and other highly liquid short-term investments |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The components of our accounts receivable, net of allowance for doubtful accounts are as follows: December 31, 2015 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 70 $ 70 Engineering & Construction 51 402 453 Government Services 2 75 77 Other — 2 2 Subtotal 53 549 602 Non-strategic Business 9 17 26 Total $ 62 $ 566 $ 628 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 Cont36
Percentage-Of-Completion Contracts (Tables) | 12 Months Ended |
Dec. 31, 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 Beginning balance $ 31 $ 115 Adjustments due to changes in estimates-at-completion 71 87 Adjustments due to approvals (42 ) (171 ) Adjustment due to disposition of businesses (14 ) — Amounts included in project estimates-at-completion at December 31, $ 46 $ 31 Amounts recorded in revenues on a percentage-of-completion basis at December 31, $ 41 $ 24 |
Claims and Accounts Receivabl37
Claims and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Contracts Receivable, Claims and Uncertain Amounts | The components of our claims and accounts receivable are as follows: December 31, Dollars in millions 2015 2014 Engineering & Construction $ 400 $ 425 Government Services 126 145 Total $ 526 $ 570 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The components of our property, plant and equipment balance are as follows: Estimated Lives in Years December 31, Dollars in millions 2015 2014 Land N/A $ 7 $ 13 Buildings and property improvements 5 - 44 140 198 Equipment and other 3 - 25 374 421 Total 521 632 Less accumulated depreciation (352 ) (385 ) Net property, plant and equipment $ 169 $ 247 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Goodwill By Reportable Segments | The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Balance as of January 1, 2014: Gross goodwill $ 31 $ 528 $ 60 $ — $ 619 $ 331 $ 950 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of January 1, 2014 $ 31 $ 528 $ 60 $ — $ 619 $ 153 $ 772 Impairment loss $ — $ (293 ) $ — $ — $ (293 ) $ (153 ) $ (446 ) Net foreign exchange difference $ — $ (2 ) $ — $ — $ (2 ) $ — $ (2 ) Balances as of December 31, 2014: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2014 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 Impairment loss $ — $ — $ — $ — $ — $ — $ — Net foreign exchange difference $ — $ — $ — $ — $ — $ — $ — Balance as of December 31, 2015: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2015 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 |
Cost And Accumulated Amortization Of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: December 31, Dollars in millions 2015 2014 Intangibles not subject to amortization $ 11 $ 11 Intangibles subject to amortization (a) 115 126 Total intangibles 126 137 Accumulated amortization of intangibles (91 ) (96 ) Net intangibles $ 35 $ 41 |
Amortization Expense Of Intangible Assets | Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2015 2014 2013 Intangibles amortization expense $ 4 $ 11 $ 14 |
Expected Amortization Expense Of Intangibles | Dollars in millions Expected future intangibles amortization expense 2016 $ 3 2017 $ 3 2018 $ 3 2019 $ 3 2020 $ 1 Beyond 2020 $ 11 |
Asset Impairment and Restruct40
Asset Impairment and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Information related to "asset impairment and restructuring charges" on our consolidated statements of operations is presented below: Years ended December 31, Dollars in millions 2015 2014 Asset impairment: Technology & Consulting — — Engineering & Construction 8 1 Government Services — — Other 21 139 Subtotal 29 140 Non-strategic Business 2 31 Total 31 171 Restructuring charges: Technology & Consulting 10 2 Engineering & Construction 26 23 Government Services — 5 Other 1 10 Subtotal 37 40 Non-strategic Business 2 3 Total 39 43 Asset impairment and restructuring charges: Total 70 214 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Severance Accrual In connection with our long-term strategic reorganization, we announced that we would reduce our workforce beginning December 2014. The employees affected by this reduction are eligible for separation benefits upon their termination and the dates have occurred or are expected to occur through 2016. The table below provides details of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "other current liabilities" on our consolidated balance sheets. Dollars in millions Severance Accrual Balance at December 31, 2013 $ — Charges 29 Payments (8 ) Balance at December 31, 2014 $ 21 Charges 27 Payments (29 ) Balance at December 31, 2015 $ 19 |
Equity Method Investments And41
Equity Method Investments And Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2015 and 2014 are as follows: December 31, Dollars in millions 2015 2014 Accounts receivable, net of allowance for doubtful accounts $ 7 $ 7 Costs and estimated earnings in excess of billings on uncompleted contracts $ 5 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 55 $ 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: Dollars in millions 2015 2014 Beginning balance $ 151 $ 156 Equity in earnings of unconsolidated affiliates 149 163 Distributions of earnings of unconsolidated affiliates (a) (92 ) (249 ) Advances (10 ) (13 ) Investments (b) 80 — Foreign currency translation adjustments (9 ) (1 ) Other 1 — Balance before reclassification 270 56 Reclassification of excess distributions (a) 16 102 Recognition of excess distributions (a) (5 ) (7 ) Ending balance $ 281 $ 151 (a) 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 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 $5 million of excess dividends. We do not consider these dividends as a return of our investment. (b) Investments include a $58 million investment in the Brown & Root Industrial Services joint venture and a $24 million investment in EPIC Piping LLC ("EPIC"), offset by prior quarter dispositions of a joint venture related to the Building Group. See below for further discussion related to joint venture formations and investments. |
Consolidated Summarized Financial Information | Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheets December 31, Dollars in millions 2015 2014 Current assets $ 2,331 $ 3,098 Noncurrent assets 3,435 4,069 Total assets $ 5,766 $ 7,167 Current liabilities $ 1,501 $ 2,969 Noncurrent liabilities 3,742 4,090 Total liabilities $ 5,243 $ 7,059 Statements of Operations Years ended December 31, Dollars in millions 2015 2014 2013 Revenues $ 3,717 $ 6,439 $ 4,800 Operating income $ 635 $ 659 $ 660 Net income $ 476 $ 419 $ 355 Unconsolidated Variable Interest Entities The following summarizes the total assets and total liabilities as reflected in our consolidated balance 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. 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. December 31, 2015 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 17 $ 121 $ 17 Ichthys LNG project $ 87 $ 63 $ 87 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia plant (65% interest) $ 36 $ 2 $ 22 Dollars in millions December 31, 2014 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 December 31, 2015 Total assets Total liabilities Gorgon LNG project $ 117 $ 145 Escravos Gas-to-Liquids project $ 16 $ 33 Fasttrax Limited project $ 74 $ 70 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 and Postretirement Pl42
Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Obligations under the deferred compensation plan | The following table presents our obligations under our employee deferred compensation plan included in "employee compensation and benefits" in our consolidated balance sheets. December 31, Dollars in millions 2015 2014 Deferred compensation plans obligations $ 70 $ 71 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Changes In Projected Benefit Obligations | Plan assets, expenses and obligations for retirement plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2015 2014 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 87 $ 2,138 $ 79 $ 2,048 Service cost — 2 — 2 Interest cost 2 76 3 90 Foreign currency exchange rate changes (3 ) (174 ) — (123 ) Actuarial (gain) loss — (112 ) 11 191 Other — — — (4 ) Benefits paid (11 ) (81 ) (6 ) (66 ) Projected benefit obligations at end of period $ 75 $ 1,849 $ 87 $ 2,138 Change in plan assets: Fair value of plan assets at beginning of period $ 66 $ 1,652 $ 70 $ 1,580 Actual return on plan assets (1 ) 8 — 194 Employer contributions 5 43 2 46 Foreign currency exchange rate changes — (90 ) — (98 ) Benefits paid (11 ) (81 ) (6 ) (66 ) Other — — — (4 ) Fair value of plan assets at end of period $ 59 $ 1,532 $ 66 $ 1,652 Funded status $ (16 ) $ (317 ) $ (21 ) $ (486 ) |
Schedule Of Amounts Recognized On Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2015 2014 Amounts recognized on the consolidated balance sheets Other current liabilities (a) $ — $ — $ (5 ) $ — Pension obligations (16 ) (317 ) (16 ) (486 ) Total $ (16 ) $ (317 ) $ (21 ) $ (486 ) (a) In 2015, we made a $5 million contribution to fund settlement of our terminated U.S. pension plan. |
Components Of Net Periodic Benefit Cost | Net periodic cost United States Int’l United States Int’l United States Int’l Dollars in millions 2015 2014 2013 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 2 76 3 90 3 79 Expected return on plan assets (3 ) (97 ) (4 ) (102 ) (5 ) (86 ) Settlements/curtailments — — 1 — 2 — Recognized actuarial loss 5 43 3 39 2 33 Net periodic benefit cost $ 4 $ 24 $ 3 $ 29 $ 2 $ 28 |
Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) | United States Int’l United States Int’l United States Int’l Dollars in millions 2015 2014 2013 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 2 76 3 90 3 79 Expected return on plan assets (3 ) (97 ) (4 ) (102 ) (5 ) (86 ) Settlements/curtailments — — 1 — 2 — Recognized actuarial loss 5 43 3 39 2 33 Net periodic benefit cost $ 4 $ 24 $ 3 $ 29 $ 2 $ 28 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2015 2014 Unrecognized actuarial loss, net of tax of $11 and $198, and $9 and $222, respectively $ 25 $ 535 $ 31 $ 639 Total in accumulated other comprehensive loss $ 25 $ 535 $ 31 $ 639 |
Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In 2014 | Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2016 are as follows: Dollars in millions United States International Actuarial loss $ 1 $ 24 Total $ 1 $ 24 |
Schedule Of Weighted-Average Assumptions | Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2015 2014 2013 Discount rate 2.89 % 3.65 % 3.38 % 4.45 % 3.09 % 4.50 % Expected return on plan assets 4.81 % 6.25 % 5.28 % 6.45 % 7.00 % 6.15 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2015 2014 Discount rate 3.42 % 3.75 % 2.89 % 3.65 % |
Schedule Of Allocation Of Plan Assets | The target asset allocation for our U.S. and International plans for 2016 is as follows: Asset Allocation 2016 Targeted United States Int'l Cash and cash equivalents 19 % — % Equity funds and securities 49 % 20 % Fixed income funds and securities 32 % 37 % Hedge funds — % 22 % Real estate funds — % 5 % Other — % 16 % Total 100 % 100 % A summary of total investments for KBR’s pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2015 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Total United States plan assets $ 59 $ — $ — $ — International plan assets Equities 66 54 — 12 Fixed income 14 — — 14 Real estate 6 — — 6 Cash and cash equivalents 10 10 — — Other 13 — — 13 Investments measured at net asset value (a) 1,423 — — — Total international plan assets $ 1,532 $ 64 $ — $ 45 Total plan assets at December 31, 2015 $ 1,591 $ 64 $ — $ 45 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2014 United States plan assets Investments measured at net asset value (a) $ 66 $ — $ — $ — Total United States plan assets $ 66 $ — $ — $ — International plan assets Equities 61 53 2 6 Fixed income 11 — — 11 Real estate 12 — — 12 Cash and cash equivalents 9 9 — — Other 13 — — 13 Investments measured at net asset value (a) 1,546 — — — Total international plan assets $ 1,652 $ 62 $ 2 $ 42 Total plan assets at December 31, 2014 $ 1,718 $ 62 $ 2 $ 42 |
Schedule Of Expected Benefit Payments | Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2016 $ 15 $ 79 2017 $ 4 $ 81 2018 $ 4 $ 83 2019 $ 4 $ 85 2020 $ 4 $ 87 Years 2021 – 2025 $ 22 $ 471 |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Allocation Of Plan Assets | The range of targeted asset allocations for our U.S. plans for 2016 and 2015 , by asset class, are as follows: Domestic Plans 2016 Targeted 2015 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents 19 % 19 % 22 % 22 % Equity funds, securities and other 49 % 49 % 47 % 47 % Fixed income funds and securities 32 % 32 % 31 % 31 % |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Allocation Of Plan Assets | The range of targeted asset allocations for our International plans for 2016 and 2015 , by asset class, are as follows: International Plans 2016 Targeted 2015 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities — % 60 % — % 51 % Fixed income funds and securities — % 100 % — % 100 % Hedge funds — % 35 % — % 20 % Real estate funds — % 10 % — % 10 % Other — % 20 % — % 35 % |
Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Level 3 fair value measurement rollforward Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2013 $ 24 $ 1 $ 6 $ 5 $ 12 Return on assets held at end of year 5 — (1 ) 4 2 Return on assets sold during the year — — — — — Purchases, sales and settlements 15 5 7 3 — Foreign exchange impact (2 ) — (1 ) — (1 ) Balance as of December 31, 2014 $ 42 $ 6 $ 11 $ 12 $ 13 Return on assets held at end of year 2 1 — (2 ) 3 Return on assets sold during the year 5 — — 5 — Purchases, sales and settlements, net (1 ) 5 4 (8 ) (2 ) Foreign exchange impact (3 ) — (1 ) (1 ) (1 ) Balance as of December 31, 2015 $ 45 $ 12 $ 14 $ 6 $ 13 |
Debt And Other Credit Facilit43
Debt And Other Credit Facilities Debt And Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Combined Principal Installments For Both Classes Of Bonds And Subordinated Notes | The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2015 : Dollars in millions Payments Due 2016 $ 10 2017 $ 10 2018 $ 10 2019 $ 11 2020 $ 12 Beyond 2020 $ 8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 United States $ (35 ) $ (1,051 ) $ (141 ) Foreign: United Kingdom 105 130 162 Australia 32 180 280 Canada 87 (101 ) (117 ) Other 123 65 116 Subtotal 347 274 441 Total $ 312 $ (777 ) $ 300 |
TaxesOnMultipleFinancialStatements | The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 Provision for income taxes $ (86 ) $ (421 ) $ (129 ) Shareholders' equity, foreign currency translation adjustment (3 ) 4 27 Shareholders' equity, pension and post-retirement benefits (22 ) 10 18 Shareholders' equity, compensation expense and other — — — Total income taxes $ (111 ) $ (407 ) $ (84 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Balance as of December 31, 2015 Federal $ (17 ) $ 8 $ (9 ) Foreign (55 ) (22 ) (77 ) State and other — — — Provision for income taxes $ (72 ) $ (14 ) $ (86 ) Balance as of December 31, 2014 Federal $ 41 $ (333 ) $ (292 ) Foreign (110 ) (11 ) (121 ) State and other 1 (9 ) (8 ) Provision for income taxes $ (68 ) $ (353 ) $ (421 ) Balance as of December 31, 2013 Federal $ (6 ) $ 17 $ 11 Foreign (109 ) (31 ) (140 ) State and other 4 (4 ) — Provision for income taxes $ (111 ) $ (18 ) $ (129 ) |
Components Of Foreign Income Tax | The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 United Kingdom $ (15 ) $ (22 ) $ (34 ) Australia 16 (24 ) (41 ) Canada 3 6 (3 ) Other (81 ) (81 ) (62 ) Foreign provision for income taxes $ (77 ) $ (121 ) $ (140 ) |
Components of Deferred Income Tax | The components of our deferred income tax provision were as follows: Years ended December 31, Dollars in millions 2015 2014 2013 Expected deferred benefit $ 14 $ 254 $ 48 Tax reserves and allowances on current year activity (20 ) (210 ) (39 ) Tax reserves and allowances on beginning of year deferred balances — (320 ) (9 ) Unremitted foreign earnings — (77 ) (5 ) U.K. statutory rate change (8 ) — (13 ) Total deferred provision for income taxes $ (14 ) $ (353 ) $ (18 ) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 35% as a result of the following: Years ended December 31, 2015 2014 2013 U.S. statutory federal rate, expected (benefit) provision 35 % (35 )% 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (10 ) (5 ) (12 ) Noncontrolling interests and equity earnings (8 ) (4 ) (5 ) State and local income taxes, net of federal benefit 2 (2 ) (1 ) Other permanent differences, net — 2 (2 ) Contingent liability accrual (1 ) 9 7 U.S. taxes on foreign unremitted earnings 1 11 2 Non-deductible goodwill impairment — 20 — Increase in valuation allowance 6 58 15 U.K. statutory rate change 3 — 4 Effective tax rate on income from operations 28 % 54 % 43 % |
Schedule of Deferred Tax Assets and Liabilities | The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2015 2014 Deferred tax assets: Employee compensation and benefits $ 140 $ 175 Foreign tax credit carryforwards 282 233 Accrued foreign tax credit carryforwards 97 89 Loss carryforwards 65 133 Insurance accruals 15 22 Allowance for bad debt 10 10 Accrued liabilities 45 51 Total gross deferred tax assets 654 713 Valuation allowances (542 ) (538 ) Net deferred tax assets 112 175 Deferred tax liabilities: Construction contract accounting $ (12 ) $ (15 ) Intangibles (25 ) (35 ) Depreciation and amortization (2 ) (2 ) Unremitted foreign earnings (39 ) (98 ) Other (29 ) 23 Total gross deferred tax liabilities (107 ) (127 ) Deferred income tax assets, net $ 5 $ 48 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2015 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 505 $ (503 ) $ 2 United Kingdom 80 — 80 Australia 1 (1 ) — Canada 18 (14 ) 4 Mexico (91 ) (2 ) (93 ) Other 34 (22 ) 12 Total $ 547 $ (542 ) $ 5 |
Summary of Operating Loss Carryforwards | At December 31, 2015 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2015 Expiration Foreign tax credit carryforwards $ 399 2019-2025 Foreign net operating loss carryforwards $ 122 2015-2035 Foreign net operating loss carryforwards $ 45 Indefinite State net operating loss carryforwards $ 580 Various |
Schedule Of Reconciliation Of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2015 2014 2013 Balance at January 1, $ 228 $ 68 $ 95 Increases related to current year tax positions 18 13 3 Increases related to prior year tax positions 35 168 15 Decreases related to prior year tax positions (3 ) (13 ) (36 ) Settlements (2 ) (1 ) — Lapse of statute of limitations (16 ) (5 ) (2 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (3 ) (2 ) (7 ) Balance at December 31, $ 257 $ 228 $ 68 |
Other Commitments And Conting45
Other Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Total Rental Payments on Noncancelable Operating Leases | Future total rental payments on noncancelable operating leases are as follows: Dollars in millions Future rental payments (a) 2016 $ 98 2017 $ 83 2018 $ 72 2019 $ 61 2020 $ 56 Beyond 2020 $ 350 (a) Amounts presented are net of subleases. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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, 2012 $ 2,511 $ 2,049 $ 1,709 $ (606 ) $ (610 ) $ (31 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 6 6 — — — — Dividends declared to shareholders (36 ) — (36 ) — — — Adjustment pursuant to tax sharing agreement (7 ) (7 ) — — — — Repurchases of common stock (7 ) — — (7 ) — — Issuance of ESPP shares 4 1 — 3 — — Investments by noncontrolling interests 9 — — — — 9 Distributions to noncontrolling interests (109 ) — — — — (109 ) Other noncontrolling interests activity 2 — — — — 2 Net income 171 — 75 — — 96 Other comprehensive (loss), net of tax (121 ) — — — (130 ) 9 Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 22 22 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (106 ) — — (106 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (61 ) — — — — (61 ) Other noncontrolling interests activity 2 — — — — 2 Net income (loss) (1,198 ) — (1,262 ) — — 64 Other comprehensive (loss), net of tax (134 ) — — — (136 ) 2 Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) Acquisition of noncontrolling interest (40 ) (40 ) — — — — Share-based compensation 18 18 — — — — Common stock issued upon exercise of stock options 1 1 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (62 ) — — (62 ) — — Issuance of ESPP shares 5 — — 5 — — Distributions to noncontrolling interests (28 ) — — — — (28 ) Other noncontrolling interests activity (3 ) — — — (3 ) Net income 226 — 203 — — 23 Other comprehensive income, net of tax 47 — — — 45 2 Balance at December 31, 2015 $ 1,052 $ 2,070 $ 595 $ (769 ) $ (831 ) $ (13 ) |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2015 2014 2013 Accumulated foreign currency translation adjustments, net of tax of $1, $4 and $0 $ (269 ) $ (203 ) $ (131 ) Pension and post-retirement benefits, net of tax of $209, $231 and $221 (560 ) (670 ) (608 ) Changes in fair value of derivatives, net of tax of $0, $0 and $0 (2 ) (3 ) (1 ) Total accumulated other comprehensive loss $ (831 ) $ (876 ) $ (740 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance as of December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (73 ) (96 ) (2 ) (171 ) Amounts reclassified from accumulated other comprehensive income 1 34 — 35 Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Other comprehensive income adjustments before reclassifications (70 ) 71 — 1 Amounts reclassified from accumulated other comprehensive income 4 39 1 44 Balance at December 31, 2015 $ (269 ) $ (560 ) $ (2 ) $ (831 ) |
Changes in AOCL | Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2015 2014 2013 Accumulated foreign currency translation adjustments, net of tax of $1, $4 and $0 $ (269 ) $ (203 ) $ (131 ) Pension and post-retirement benefits, net of tax of $209, $231 and $221 (560 ) (670 ) (608 ) Changes in fair value of derivatives, net of tax of $0, $0 and $0 (2 ) (3 ) (1 ) Total accumulated other comprehensive loss $ (831 ) $ (876 ) $ (740 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance as of December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (73 ) (96 ) (2 ) (171 ) Amounts reclassified from accumulated other comprehensive income 1 34 — 35 Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Other comprehensive income adjustments before reclassifications (70 ) 71 — 1 Amounts reclassified from accumulated other comprehensive income 4 39 1 44 Balance at December 31, 2015 $ (269 ) $ (560 ) $ (2 ) $ (831 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2015 December 31, 2014 Affected line item on the Consolidated Statements of Operations Pension and post-retirement benefits Amortization of actuarial loss (a) $ (48 ) $ (42 ) See (a) below Tax benefit (expense) 9 8 Provision for income taxes Net pension and post-retirement benefits $ (39 ) $ (34 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. |
Shares Of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2013 173.9 Common stock issued 0.5 Balance at December 31, 2014 174.4 Common stock issued 0.7 Balance at December 31, 2015 175.1 |
Shares of Treasury Stock | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2013 25.7 $ 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 712 Treasury stock acquired, net of ESPP shares issued 3.4 57 Balance at December 31, 2015 33.0 $ 769 The table below presents information on our annual share repurchases activity under these programs: Year Ending December 31, 2015 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 2,992,687 $ 17.43 $ 52 Repurchases under the existing share maintenance program 466,974 15.43 7 Withheld to cover shares 182,964 16.98 3 Total 3,642,625 $ 17.15 $ 62 Year Ending December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 593,042 26.07 16 Withheld to cover shares 73,557 27.69 2 Total 4,041,078 $ 26.15 $ 106 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of shares repurchased | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2013 25.7 $ 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 712 Treasury stock acquired, net of ESPP shares issued 3.4 57 Balance at December 31, 2015 33.0 $ 769 The table below presents information on our annual share repurchases activity under these programs: Year Ending December 31, 2015 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 2,992,687 $ 17.43 $ 52 Repurchases under the existing share maintenance program 466,974 15.43 7 Withheld to cover shares 182,964 16.98 3 Total 3,642,625 $ 17.15 $ 62 Year Ending December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 593,042 26.07 16 Withheld to cover shares 73,557 27.69 2 Total 4,041,078 $ 26.15 $ 106 |
Share-based Compensation And 48
Share-based Compensation And Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Assumption | Total number of stock options granted and the assumptions used to determine the fair value of granted options were as follows: Years ended December 31, KBR stock options assumptions summary 2015 2014 Granted stock options (shares in millions) 1.1 0.6 Weighted average expected term (in years) 5.5 5.5 Weighted average grant-date fair value per share $ 4.91 $ 9.57 Years ended December 31, KBR stock options range assumptions summary 2015 2014 Range Range Start End Start End Expected volatility range 33.92 % 39.65 % 36.48 % 40.49 % Expected dividend yield range 1.15 % 2.13 % 1.08 % 1.52 % Risk-free interest rate range 1.46 % 2.12 % 1.67 % 2.21 % |
Summary of Stock Option Activity | The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2015 . KBR stock options activity summary Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 3,160,091 $ 26.96 6.54 $ 2.40 Granted 1,067,308 16.52 Exercised (62,503 ) 12.32 Forfeited (231,949 ) 23.65 Expired (450,290 ) 30.19 Outstanding at December 31, 2015 3,482,657 $ 23.83 6.55 $ 2.92 Exercisable at December 31, 2015 2,059,060 $ 26.18 5.02 $ 2.00 |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2015 under the KBR Stock Plan. Restricted stock activity summary Number of Shares Weighted Average Grant-Date Fair Value per Share Nonvested shares at December 31, 2014 1,128,877 $ 28.99 Granted 855,499 16.66 Vested (529,440 ) 25.97 Forfeited (80,970 ) 19.05 Nonvested shares at December 31, 2015 1,373,966 $ 23.05 |
Stock-Based Compensation Summary Table | Share-based compensation summary table Years ended December 31, Dollars in millions 2015 2014 2013 Share-based compensation $ 18 $ 22 $ 16 Income tax benefit recognized in net income for share-based compensation $ 7 $ 8 $ 6 Incremental compensation cost $ 2 $ 2 $ 1 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years ended December 31, Shares in millions 2015 2014 2013 Basic weighted average common shares outstanding 144 146 148 Stock options and restricted shares — — 1 Diluted weighted average common shares outstanding 144 146 149 |
Financial Instruments And Ris50
Financial Instruments And Risk Management Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | 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 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 (expense)" on our consolidated statements of operations. Years ended December 31, Gains (Losses) Dollars in Millions 2015 2014 Balance Sheet Hedges - Fair Value (40 ) (47 ) Balance Sheet Position - Remeasurement 50 47 Net 10 — |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | (Dollars in millions, except per share amounts) First Second Third Fourth Year 2015 Total revenues $ 1,436 $ 1,381 $ 1,199 $ 1,080 $ 5,096 Gross profit 70 74 87 94 325 Equity in earnings of unconsolidated affiliates 35 53 35 26 149 Operating income 64 96 75 75 310 Net income 51 68 59 48 226 Net income attributable to noncontrolling interests (7 ) (6 ) (4 ) (6 ) (23 ) Net income attributable to KBR 44 62 55 42 203 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.30 $ 0.43 $ 0.38 $ 0.29 $ 1.40 Net income attributable to KBR per share—Diluted $ 0.30 $ 0.43 $ 0.38 $ 0.29 $ 1.40 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2014 Total revenues $ 1,633 $ 1,659 $ 1,657 $ 1,417 $ 6,366 Gross profit (loss) (a) 39 28 30 (162 ) (65 ) Equity in earnings of unconsolidated affiliates 31 49 38 45 163 Operating income (loss) (b) 10 25 10 (839 ) (794 ) Net income (loss) (c) (20 ) 8 45 (1,231 ) (1,198 ) Net income attributable to noncontrolling interests (23 ) (16 ) (15 ) (10 ) (64 ) Net income (loss) attributable to KBR (43 ) (8 ) 30 (1,241 ) (1,262 ) Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) Net income (loss) attributable to KBR per share—Diluted $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) |
Description Of Company And Si52
Description Of Company And Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Intangibles not subject to amortization | $ 11 | $ 11 |
Period In Years That Unrecognized Actuarial Net Gains (Losses) Are Being Recognized | 15 years | |
Finite lived intangible assets useful lives | 25 years | |
Restricted cash and cash equivalents | $ 2 | $ 17 |
ASU 2015-17 [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance, Current | 90 | |
Deferred Tax Liabilities, Net, Current | $ 46 |
Description Of Company And Si53
Description Of Company And Significant Accounting Policies (Schedule Of Revenue And Receivables From Major Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 1,080 | $ 1,199 | $ 1,381 | $ 1,436 | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 5,096 | $ 6,366 | $ 7,214 |
Chevron [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 523 | $ 1,069 | $ 1,859 | ||||||||
Revenue percentage | 10.00% | 17.00% | 26.00% | ||||||||
Receivables percentage | 5.00% | 9.00% | 13.00% |
Description Of Company And Si54
Description Of Company And Significant Accounting Policies (Schedule Of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Other Inventory, Noncurrent | $ 5 | $ 8 |
Restricted cash and cash equivalents | 2 | 17 |
Prepaid expenses | 58 | 58 |
Value-added tax receivable | 9 | 27 |
Assets held-for-sale | 0 | 10 |
Advances to Subcontractors | 9 | 3 |
Other miscellaneous assets | 26 | 24 |
Total other current assets | $ 109 | $ 147 |
Description Of Company And Si55
Description Of Company And Significant Accounting Policies Description Of Company And Significant Accounting Policies (Components Of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ||||
Provision for Loss on Contracts | $ 60 | $ 159 | $ 109 | $ 56 |
Retainage payable | 49 | 88 | ||
Income taxes payable | 56 | 61 | ||
Accrual for Taxes Other than Income Taxes | 7 | 8 | ||
ValueAddedTaxPayableCurrent | 12 | 31 | ||
Self Insurance Reserve, Noncurrent | 12 | 19 | ||
Dividends Payable | 12 | 12 | $ 12 | |
Other miscellaneous liabilities | 55 | 64 | ||
Total other current liabilities | $ 263 | $ 442 |
Business Segment Information (S
Business Segment Information (Schedule Of Operations By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,080 | $ 1,199 | $ 1,381 | $ 1,436 | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 5,096 | $ 6,366 | $ 7,214 |
Gross profit (loss) | 94 | 87 | 74 | 70 | (162) | 30 | 28 | 39 | 325 | (65) | 417 |
Equity in earnings of unconsolidated affiliates | 26 | 35 | 53 | 35 | 45 | 38 | 49 | 31 | 149 | 163 | 137 |
Impairment of goodwill | (446) | 0 | (446) | 0 | |||||||
Asset Impairment and Restructuring Costs Charges | (70) | (214) | 0 | ||||||||
Operating income (loss) | $ 75 | $ 75 | $ 96 | $ 64 | $ (839) | $ 10 | $ 25 | $ 10 | 310 | (794) | 308 |
Capital expenditures | 10 | 53 | 78 | ||||||||
Depreciation | 39 | 72 | 68 | ||||||||
Non-strategic Business [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of goodwill | 0 | (153) | |||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,441 | 5,575 | 6,217 | ||||||||
Gross profit (loss) | 298 | 162 | 422 | ||||||||
Equity in earnings of unconsolidated affiliates | 149 | 163 | 137 | ||||||||
Impairment of goodwill | 0 | (293) | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | (66) | (180) | 0 | ||||||||
Operating income (loss) | 254 | (352) | 312 | ||||||||
Capital expenditures | 10 | 53 | 78 | ||||||||
Depreciation | 39 | 66 | 61 | ||||||||
Operating Segments [Member] | Technology and Consulting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 324 | 353 | 330 | ||||||||
Gross profit (loss) | 77 | 53 | 69 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | 10 | 2 | 0 | ||||||||
Operating income (loss) | 62 | 49 | 70 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation | 2 | 2 | 2 | ||||||||
Operating Segments [Member] | Engineering and Construction [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 3,454 | 4,584 | 4,956 | ||||||||
Gross profit (loss) | 224 | 141 | 263 | ||||||||
Equity in earnings of unconsolidated affiliates | 104 | 90 | 76 | ||||||||
Impairment of goodwill | 0 | (293) | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | 34 | 24 | 0 | ||||||||
Operating income (loss) | 295 | (114) | 278 | ||||||||
Capital expenditures | 6 | 19 | 10 | ||||||||
Depreciation | 17 | 23 | 23 | ||||||||
Operating Segments [Member] | Government Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 663 | 638 | 931 | ||||||||
Gross profit (loss) | (3) | (32) | 90 | ||||||||
Equity in earnings of unconsolidated affiliates | 45 | 73 | 61 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | 0 | 5 | 0 | ||||||||
Operating income (loss) | 37 | 25 | 145 | ||||||||
Capital expenditures | 0 | 0 | 1 | ||||||||
Depreciation | 6 | 8 | 9 | ||||||||
Operating Segments [Member] | Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Gross profit (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | 22 | 149 | 0 | ||||||||
Operating income (loss) | (140) | (312) | (181) | ||||||||
Capital expenditures | 4 | 34 | 67 | ||||||||
Depreciation | 14 | 33 | 27 | ||||||||
Operating Segments [Member] | Non-strategic Business [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 655 | 791 | 997 | ||||||||
Gross profit (loss) | 27 | (227) | (5) | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | (153) | 0 | ||||||||
Asset Impairment and Restructuring Costs Charges | 4 | 34 | 0 | ||||||||
Operating income (loss) | 56 | (442) | (4) | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation | $ 0 | $ 6 | $ 7 |
Business Segment Information 57
Business Segment Information (Schedule Of Balance Sheet Information By Operating Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,412 | $ 4,078 | |
Goodwill | 324 | 324 | |
Equity in and advances to unconsolidated affiliates | 281 | 151 | |
Non-strategic Business [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 153 | ||
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 3,378 | 3,908 | |
Goodwill | 324 | 324 | 619 |
Equity in and advances to unconsolidated affiliates | 281 | 150 | |
Operating Segments [Member] | Technology and Consulting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 198 | 173 | |
Goodwill | 31 | 31 | 31 |
Equity in and advances to unconsolidated affiliates | 0 | 0 | |
Operating Segments [Member] | Engineering and Construction [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,656 | 2,008 | |
Goodwill | 233 | 233 | 528 |
Equity in and advances to unconsolidated affiliates | 255 | 119 | |
Operating Segments [Member] | Government Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 464 | 545 | |
Goodwill | 60 | 60 | $ 60 |
Equity in and advances to unconsolidated affiliates | 26 | 31 | |
Operating Segments [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,060 | 1,182 | |
Goodwill | 0 | 0 | |
Equity in and advances to unconsolidated affiliates | 0 | 0 | |
Operating Segments [Member] | Non-strategic Business [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 34 | 170 | |
Goodwill | 0 | 0 | |
Equity in and advances to unconsolidated affiliates | $ 0 | $ 1 |
Business Segment Information 58
Business Segment Information (Schedule Of Selected Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,080 | $ 1,199 | $ 1,381 | $ 1,436 | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 5,096 | $ 6,366 | $ 7,214 |
Total Long-Lived Assets (PP&E) | 169 | 247 | 169 | 247 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,212 | 2,324 | 2,470 | ||||||||
Total Long-Lived Assets (PP&E) | 73 | 115 | 73 | 115 | |||||||
AUSTRALIA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 836 | 1,380 | 1,768 | ||||||||
Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 164 | 251 | 593 | ||||||||
Middle East [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 786 | 707 | 913 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 495 | 624 | 575 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 185 | 752 | 687 | ||||||||
Latin America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 131 | 111 | 74 | ||||||||
UNITED KINGDOM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Long-Lived Assets (PP&E) | 48 | 68 | 48 | 68 | |||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 287 | 217 | $ 134 | ||||||||
Total Long-Lived Assets (PP&E) | $ 48 | $ 64 | $ 48 | $ 64 |
Business Segment Information Bu
Business Segment Information Business Segment Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Changes in estimates at completion | $ 71 | $ 87 | |
Power Projects [Member] | |||
Segment Reporting Information [Line Items] | |||
Changes in estimates at completion | 16 | 80 | |
Favorable [Member] | Canadian Pipe Fabrication And Module Assembly Projects [Member] | |||
Segment Reporting Information [Line Items] | |||
Changes in estimates at completion | $ 21 | ||
Unfavorable [Member] | Canadian Pipe Fabrication And Module Assembly Projects [Member] | |||
Segment Reporting Information [Line Items] | |||
Changes in estimates at completion | $ (72) | $ (132) |
Business Segment Information Pr
Business Segment Information Prior Period Adjustment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Impact Of Correction of Prior Period Error on Equity in Earnings of Unconsolidated Affiliates | $ 15 |
Business Segment Information Ch
Business Segment Information Changes in Estimates (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | $ 60,000,000 | $ 159,000,000 | $ 109,000,000 | $ 56,000,000 |
Changes in estimates at completion | 71,000,000 | 87,000,000 | ||
Initial Changes [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | 14,000,000 | 177,000,000 | 106,000,000 | |
Amortization of Loss Provision [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | (113,000,000) | (127,000,000) | (53,000,000) | |
Power Projects [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | 47,000,000 | 80,000,000 | ||
Changes in estimates at completion | 16,000,000 | 80,000,000 | ||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | 0 | 53,000,000 | ||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | Favorable [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Changes in estimates at completion | $ 21,000,000 | |||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | Unfavorable [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Changes in estimates at completion | $ (72,000,000) | $ (132,000,000) |
Business Segment Information Ac
Business Segment Information Acquisitions, Dispositions and Other Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015 | |
Infrastructure Americas [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Divestiture of Businesses | $ 18 | |
Building Group Subsidiary [Member] | ||
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] | Infrastructure Americas [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Gain on Disposal | 7 | |
Disposal Group, Not Discontinued Operations [Member] | Building Group Subsidiary [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Gain on Disposal | $ 28 | |
Greenford UK Building [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Sale of Buildings | 33 | |
Birmingham AL Building [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Sale of Buildings | $ 6 |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 883 | $ 970 | $ 1,106 | $ 1,053 |
Operating Cash and Equivalents [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 430 | 320 | ||
Short-term Investments [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 400 | 570 | ||
Cash and Equivalents Held in Joint Ventures [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 53 | 80 | ||
International [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 519 | 761 | ||
International [Member] | Operating Cash and Equivalents [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 177 | 209 | ||
International [Member] | Short-term Investments [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 293 | 481 | ||
International [Member] | Cash and Equivalents Held in Joint Ventures [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 49 | 71 | ||
Domestic [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 364 | 209 | ||
Domestic [Member] | Operating Cash and Equivalents [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 253 | 111 | ||
Domestic [Member] | Short-term Investments [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 107 | 89 | ||
Domestic [Member] | Cash and Equivalents Held in Joint Ventures [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 4 | $ 9 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | $ 602 | $ 726 |
Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 53 | 50 |
Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 549 | 676 |
Technology and Consulting [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 70 | 51 |
Technology and Consulting [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Technology and Consulting [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 70 | 51 |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 453 | 583 |
Engineering and Construction [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 51 | 45 |
Engineering and Construction [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 402 | 538 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 77 | 89 |
Government Services [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 2 | 5 |
Government Services [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 75 | 84 |
Other Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 2 | 3 |
Other Segment [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Other Segment [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 2 | 3 |
Non-strategic Business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 26 | 121 |
Non-strategic Business [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 9 | 48 |
Non-strategic Business [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 17 | 73 |
Operating Segments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 628 | 847 |
Operating Segments [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 62 | 98 |
Operating Segments [Member] | Trade & Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | $ 566 | $ 749 |
CIE and BIE CIE (Details)
CIE and BIE CIE (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 224 | $ 490 |
Operating Segments [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 224 | 468 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 42 | 38 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 114 | 357 |
Operating Segments [Member] | Government Services [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 68 | 73 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 0 | $ 22 |
CIE and BIE BIE (Details)
CIE and BIE BIE (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | $ 509 | $ 531 |
Operating Segments [Member] | ||
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 448 | 361 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 72 | 56 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 307 | 212 |
Operating Segments [Member] | Government Services [Member] | ||
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | 69 | 93 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE) | $ 61 | $ 170 |
Unapproved change orders and cl
Unapproved change orders and claims (Schedule) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Contractors [Abstract] | ||
Unapproved change orders | $ 31 | $ 115 |
Changes in estimates at completion | 71 | 87 |
Adjustments due to approvals | (42) | (171) |
Adjustment due to dispositions of businesses | (14) | 0 |
Unapproved change orders | 46 | 31 |
Unapproved Change Orders And Claims Recorded In Revenues | $ 41 | $ 24 |
Unapproved change orders and 68
Unapproved change orders and claims (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Unapproved change orders | $ 46 | $ 31 | $ 115 |
Liquidated damages | 6 | 12 | |
Parent Share of Probable Unapproved Claims of Unconsolidated Subsidiary [Member] | |||
Unapproved change orders | $ 58 | $ 78 |
Claims and Accounts Receivabl69
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 526 | $ 570 |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | 400 | 425 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 126 | $ 145 |
Property, Plant And Equipment70
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 521 | $ 632 | |
Less accumulated depreciation | (352) | (385) | |
Net property, plant and equipment | 169 | 247 | |
Depreciation | 35 | 61 | $ 54 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 7 | 13 | |
Greenford UK Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from Sale of Buildings | 33 | ||
Gain (Loss) on Sale of Properties | 23 | ||
Birmingham AL Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from Sale of Buildings | 6 | ||
Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 140 | 198 | |
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 44 years | ||
Other Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 374 | $ 421 | |
Other Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Other Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years |
Goodwill And Intangible Asset71
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment of goodwill | $ (446) | $ 0 | $ (446) | $ 0 |
Estimated useful life (years) | 25 years |
Goodwill And Intangible Asset72
Goodwill And Intangible Assets (Summary Of Goodwill By Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | ||||
Balance, Beginning of period | $ 324 | |||
Impairment of goodwill | $ (446) | 0 | $ (446) | $ 0 |
Balance, End of period | 324 | 324 | 324 | |
Operating Segments [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Translation Adjustments | (2) | |||
Goodwill, Gross | 948 | 948 | 948 | 950 |
Balance, Beginning of period | 324 | 772 | ||
Impairment of goodwill | 0 | (446) | ||
Balance, End of period | 324 | 324 | 324 | 772 |
Goodwill, Impaired, Accumulated Impairment Loss | (624) | (624) | (624) | (178) |
Non-strategic Business [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 331 | 331 | 331 | 331 |
Balance, Beginning of period | 153 | |||
Impairment of goodwill | 0 | (153) | ||
Balance, End of period | 153 | |||
Goodwill, Impaired, Accumulated Impairment Loss | (331) | (331) | (331) | (178) |
Operating Segments [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Translation Adjustments | 0 | (2) | ||
Goodwill, Gross | 617 | 617 | 617 | 619 |
Balance, Beginning of period | 324 | 619 | ||
Impairment of goodwill | 0 | (293) | 0 | |
Balance, End of period | 324 | 324 | 324 | 619 |
Goodwill, Impaired, Accumulated Impairment Loss | (293) | (293) | (293) | 0 |
Operating Segments [Member] | Other Segments [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 0 | 0 | 0 | 0 |
Balance, Beginning of period | 0 | |||
Impairment of goodwill | 0 | 0 | 0 | |
Balance, End of period | 0 | 0 | 0 | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Technology and Consulting [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Translation Adjustments | 0 | 0 | ||
Goodwill, Gross | 31 | 31 | 31 | 31 |
Balance, Beginning of period | 31 | 31 | ||
Impairment of goodwill | 0 | 0 | 0 | |
Balance, End of period | 31 | 31 | 31 | 31 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Engineering and Construction [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Translation Adjustments | (2) | |||
Goodwill, Gross | 526 | 526 | 526 | 528 |
Balance, Beginning of period | 233 | 528 | ||
Impairment of goodwill | 0 | (293) | 0 | |
Balance, End of period | 233 | 233 | 233 | 528 |
Goodwill, Impaired, Accumulated Impairment Loss | (293) | (293) | (293) | 0 |
Operating Segments [Member] | Government Services [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 60 | 60 | 60 | 60 |
Balance, Beginning of period | 60 | 60 | ||
Impairment of goodwill | 0 | 0 | 0 | |
Balance, End of period | 60 | 60 | 60 | 60 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Non-strategic Business [Member] | ||||
Goodwill [Line Items] | ||||
Balance, Beginning of period | 0 | |||
Impairment of goodwill | 0 | (153) | $ 0 | |
Balance, End of period | $ 0 | $ 0 | $ 0 |
Goodwill And Intangible Asset73
Goodwill And Intangible Assets (Cost And Accumulated Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangibles not subject to amortization | $ 11 | $ 11 |
Intangibles subject to amortization | 115 | 126 |
Total intangibles | 126 | 137 |
Accumulated amortization of intangibles | (91) | (96) |
Net intangibles | $ 35 | $ 41 |
Goodwill And Intangible Asset74
Goodwill And Intangible Assets (Amortization Expense Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 4 | $ 11 | $ 14 |
Goodwill And Intangible Asset75
Goodwill And Intangible Assets (Expected Amortization Expense Of Intangibles) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 3 |
2,017 | 3 |
2,018 | 3 |
2,019 | 3 |
2,020 | 1 |
Beyond 2,020 | $ 11 |
Asset Impairment and Restruct76
Asset Impairment and Restructuring (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 214,000,000 | $ 39,000,000 | $ 43,000,000 | |
Other Asset Impairment Charges | (31,000,000) | (171,000,000) | $ 0 | |
Asset Impairment and Restructuring Costs Charges | (70,000,000) | (214,000,000) | 0 | |
Severance Costs | (27,000,000) | (29,000,000) | ||
ERP [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | (5,000,000) | |||
ERP [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | (17,000,000) | |||
ERP [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | (135,000,000) | |||
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 37,000,000 | 40,000,000 | ||
Other Asset Impairment Charges | (29,000,000) | (140,000,000) | ||
Asset Impairment and Restructuring Costs Charges | (66,000,000) | (180,000,000) | 0 | |
Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 10,000,000 | 2,000,000 | ||
Other Asset Impairment Charges | 0 | 0 | ||
Asset Impairment and Restructuring Costs Charges | 10,000,000 | 2,000,000 | 0 | |
Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 26,000,000 | 23,000,000 | ||
Other Asset Impairment Charges | (8,000,000) | (1,000,000) | ||
Asset Impairment and Restructuring Costs Charges | 34,000,000 | 24,000,000 | 0 | |
Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 5,000,000 | ||
Other Asset Impairment Charges | 0 | 0 | ||
Asset Impairment and Restructuring Costs Charges | 0 | 5,000,000 | 0 | |
Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 2,000,000 | 3,000,000 | ||
Other Asset Impairment Charges | (2,000,000) | (31,000,000) | ||
Asset Impairment and Restructuring Costs Charges | 4,000,000 | 34,000,000 | 0 | |
Operating Segments [Member] | Other Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,000,000 | 10,000,000 | ||
Other Asset Impairment Charges | (21,000,000) | (139,000,000) | ||
Asset Impairment and Restructuring Costs Charges | 22,000,000 | 149,000,000 | $ 0 | |
Operating Segments [Member] | Other Intangible Assets [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | (31,000,000) | |||
Facility Closing [Member] | Property, Plant and Equipment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | (12,000,000) | (14,000,000) | ||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 27,000,000 | 29,000,000 | ||
Contract Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | $ (9,000,000) | $ (5,000,000) |
Asset Impairment and Restruct77
Asset Impairment and Restructuring (Severance Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 214 | $ 39 | $ 43 |
Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 21 | 0 | |
Charges | 27 | 29 | |
Payments | (29) | (8) | |
Restructuring Reserve | $ 21 | $ 19 | $ 21 |
Equity Method Investments And78
Equity Method Investments And Variable Interest Entities (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2006 | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Other Asset Impairment Charges | $ 31 | $ 171 | $ 0 | |||
Noncontrolling Interest in Variable Interest Entity | $ 40 | |||||
Payment to Partner | $ 8 | |||||
Payments to Acquire Equity Method Investments | $ 19 | 0 | 0 | |||
Brown & Root JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Aspire Defence [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 45.00% | |||||
Ichthys LNG Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 30.00% | |||||
MMM [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Aspire Defence Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Term of contracted services portion of project (in years) | 35 years | |||||
Term of construction portion of project (in years) | 9 years | |||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 17 | |||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 121 | |||||
Aspire Defence Project [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 17 | 17 | ||||
Ichthys LNG Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 87 | |||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 63 | |||||
Ichthys LNG Project [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 87 | 49 | ||||
U.K. Road Projects [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 25.00% | |||||
U.K. Road Projects [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 34 | 34 | ||||
Construction And Related Support Services Joint Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
EBIC Ammonia Plant [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 36 | |||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 2 | |||||
EBIC Ammonia Plant [Member] | Parent Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage the enterprise has in a development company that has a minority interest in a VIE | 65.00% | |||||
EBIC Ammonia Plant [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 22 | 26 | ||||
EBIC Ammonia Plant [Member] | Development Corporation [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Development company's ownership interest in a company that consolidates a VIE | 25.00% | |||||
Fasttrax Limited Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Percentage of subsidiary owned by the parent entity | 100.00% | |||||
Assets collateralizing the Joint Venture's senior bonds, cash and equivalents | $ 20 | |||||
Assets collateralizing the Joint Venture's senior bonds, property, plant and equipment | $ 48 | |||||
Escravos Gas-To-Liquids Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Cash held by consolidated joint ventures | $ 7 | 8 | ||||
Gorgon LNG Project [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 30.00% | |||||
Transactions with Related Parties [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue from Related Parties | $ 291 | 351 | $ 253 | |||
Accounts Receivable, Net, Current | $ 7 | $ 7 | ||||
Nonrecourse Project Finance Debt [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Number of heavy equipment transporters | 91 | |||||
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 | 19 | |||||
Disposal Group, Not Discontinued Operations [Member] | Industrial Services Business [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Disposal Group, Not Discontinued Operation, Gain on Disposal | $ 7 |
Equity Method Investments And79
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 2,331 | $ 3,098 |
Noncurrent assets | 3,435 | 4,069 |
Total assets | 5,766 | 7,167 |
Current liabilities | 1,501 | 2,969 |
Noncurrent liabilities | 3,742 | 4,090 |
Total liabilities | $ 5,243 | $ 7,059 |
Equity Method Investments And80
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information Statements Of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue | $ 3,717 | $ 6,439 | $ 4,800 |
Operating income | 635 | 659 | 660 |
Net income | $ 476 | $ 419 | $ 355 |
Equity Method Investments And81
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) £ in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | $ 51 | $ 63 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | U.K. Road Projects [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 34 | 34 | |
Unconsolidated VIEs, Total liabilities | 11 | 11 | |
Maximum exposure to loss | 34 | 34 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Aspire Defence Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 17 | 17 | |
Unconsolidated VIEs, Total liabilities | 121 | 118 | |
Maximum exposure to loss | 17 | 17 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Ichthys LNG Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 87 | 49 | |
Unconsolidated VIEs, Total liabilities | 63 | 35 | |
Maximum exposure to loss | 87 | 49 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | EBIC Ammonia Plant [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 36 | 42 | |
Unconsolidated VIEs, Total liabilities | 2 | 2 | |
Maximum exposure to loss | 22 | 26 | |
Variable Interest Entity, Primary Beneficiary [Member] | Fasttrax Limited Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 74 | 83 | |
Consolidated VIEs, Total liabilities | 70 | 81 | |
Variable Interest Entity, Primary Beneficiary [Member] | Escravos Gas-To-Liquids Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 16 | 23 | |
Consolidated VIEs, Total liabilities | 33 | 36 | |
Variable Interest Entity, Primary Beneficiary [Member] | Gorgon LNG Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 117 | 282 | |
Consolidated VIEs, Total liabilities | 145 | $ 309 | |
Nonrecourse Project Finance Debt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | £ | £ 84.9 | ||
Non-recourse debt bridge financing | £ | £ 12.2 | ||
United States of America, Dollars | Nonrecourse Project Finance Debt [Member] | Fasttrax Limited Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | 120 | ||
Non-recourse debt bridge financing | $ 17 |
Equity Method Investments And82
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 | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | $ 19 | $ 0 | $ 0 | |||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 281 | $ 151 | 281 | 151 | ||||||||
Income (Loss) from Equity Method Investments | 26 | $ 35 | $ 53 | $ 35 | 45 | $ 38 | $ 49 | $ 31 | 149 | 163 | $ 137 | |
Beginning Balance [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 151 | 156 | 151 | 156 | ||||||||
Joint Venture Earnings [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 149 | 163 | 149 | 163 | ||||||||
Dividends Paid by Joint Venture [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | (92) | (249) | (92) | (249) | ||||||||
Advances [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | (10) | (13) | (10) | (13) | ||||||||
New Investments [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 80 | 0 | 80 | 0 | ||||||||
Cumulative Translation Adjustment [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | (9) | (1) | (9) | (1) | ||||||||
Other Activity [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 1 | 0 | 1 | 0 | ||||||||
Subtotal Before Reclassification [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 270 | 56 | 270 | 56 | ||||||||
Reclassification of excess distribution [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 16 | 102 | 16 | 102 | ||||||||
Recognition of Excess Distribution [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | (5) | (7) | (5) | (7) | ||||||||
Ending Balance [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 281 | $ 151 | 281 | $ 151 | ||||||||
Brown & Root JV [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | 58 | 58 | ||||||||||
EPIC Piping [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investments | $ 24 | $ 24 | ||||||||||
Industrial Services Business [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Proceeds from Divestiture of Businesses | $ 48 | |||||||||||
Brown & Root JV [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||||||||
EPIC Piping LLC [Member] | Canadian Pipe Fabrication Business [Member] | ||||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | ||||||||||||
Payments to Acquire Equity Method Investments | $ 19 |
Equity Method Investments And83
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Related Party Transactions [Line Items] | |||
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | $ 224 | $ 490 | |
Transactions with Related Parties [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Revenue from Related Parties | (291) | (351) | $ (253) |
Due from Related Parties, Current | (7) | (7) | |
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE) | 5 | 2 | |
Billings in Excess of Cost | 55 | $ 21 | |
Brown & Root JV [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Revenue from Related Parties | 3 | ||
Related Party Transaction, Due from (to) Related Party | $ 9 |
Pension and Postretirement Pl84
Pension and Postretirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expenses | $ 67 | $ 72 | $ 78 |
Multi-employer plan contribution | 8 | $ 29 | $ 22 |
Funded amount of nonqualified deferred compensation program | 8 | ||
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contributions in next fiscal year | $ 41 |
Pension and Postretirement Pl85
Pension and Postretirement Plans (Schedule Of Changes In Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,591 | $ 1,718 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of period | 87 | 79 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 2 | 3 | 3 |
Foreign currency exchange rate changes | (3) | 0 | |
Actuarial (gain) loss | 0 | 11 | |
Other | 0 | 0 | |
Benefits paid | (11) | (6) | |
Projected benefit obligation at end of period | 75 | 87 | 79 |
Fair value of plan assets | 59 | 66 | 70 |
Actual return on plan assets | (1) | 0 | |
Defined Benefit Plan, Contributions by Employer | 5 | 2 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | 0 | 0 | |
Other | 0 | 0 | |
Funded status | (16) | (21) | |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of period | 2,138 | 2,048 | |
Service cost | 2 | 2 | 2 |
Interest cost | 76 | 90 | 79 |
Foreign currency exchange rate changes | (174) | (123) | |
Actuarial (gain) loss | (112) | 191 | |
Other | 0 | (4) | |
Benefits paid | (81) | (66) | |
Projected benefit obligation at end of period | 1,849 | 2,138 | 2,048 |
Fair value of plan assets | 1,532 | 1,652 | $ 1,580 |
Actual return on plan assets | 8 | 194 | |
Defined Benefit Plan, Contributions by Employer | 43 | 46 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (90) | (98) | |
Other | 0 | (4) | |
Funded status | $ (317) | $ (486) |
Pension and Postretirement Pl86
Pension and Postretirement Plans (Schedule Of Changes In Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | $ 1,718 | |
Fair value of plan assets at end of period | 1,591 | $ 1,718 |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 66 | 70 |
Actual return on plan assets | (1) | 0 |
Employer contributions | 5 | 2 |
Foreign currency exchange rate changes | 0 | 0 |
Benefits paid | (11) | (6) |
Other | 0 | 0 |
Fair value of plan assets at end of period | 59 | 66 |
Funded status | (16) | (21) |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 1,652 | 1,580 |
Actual return on plan assets | 8 | 194 |
Employer contributions | 43 | 46 |
Foreign currency exchange rate changes | (90) | (98) |
Benefits paid | (81) | (66) |
Other | 0 | (4) |
Fair value of plan assets at end of period | 1,532 | 1,652 |
Funded status | $ (317) | $ (486) |
Pension and Postretirement Pl87
Pension and Postretirement Plans (Schedule Of Amounts Recognized On Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ 333 | $ 502 |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | (5) |
Noncurrent liabilities | (16) | (16) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | (16) | 21 |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 |
Noncurrent liabilities | (317) | (486) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 317 | $ 486 |
Pension and Postretirement Pl88
Pension and Postretirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 2 | 3 | 3 |
Expected return on plan assets | (3) | (4) | (5) |
Settlements/curtailments | 0 | 1 | 2 |
Recognized actuarial loss | 5 | 3 | 2 |
Net periodic benefit cost | 4 | 3 | 2 |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 76 | 90 | 79 |
Expected return on plan assets | (97) | (102) | (86) |
Settlements/curtailments | 0 | 0 | 0 |
Recognized actuarial loss | 43 | 39 | 33 |
Net periodic benefit cost | $ 24 | $ 29 | $ 28 |
Pension and Postretirement Pl89
Pension and Postretirement Plans (Schedule Of Amounts In Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total in accumulated other comprehensive loss | $ 560 | $ 670 | $ 608 |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized actuarial loss, net of tax | 25 | 31 | |
Net actuarial loss, tax | 11 | 9 | |
Total in accumulated other comprehensive loss | 25 | 31 | |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized actuarial loss, net of tax | 535 | 639 | |
Net actuarial loss, tax | 198 | 222 | |
Total in accumulated other comprehensive loss | $ 535 | $ 639 |
Pension and Postretirement Pl90
Pension and Postretirement Plans (Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In Next Fiscal Year (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss | $ 1 |
Total | 1 |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss | 24 |
Total | $ 24 |
Pension and Postretirement Pl91
Pension and Postretirement Plans (Schedule Of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United States Pension Benefits [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.89% | 3.38% | 3.09% |
Expected return on plan assets | 4.81% | 5.28% | 7.00% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 3.42% | 2.89% | |
International Pension Benefits [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 3.65% | 4.45% | 4.50% |
Expected return on plan assets | 6.25% | 6.45% | 6.15% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 3.75% | 3.65% |
Pension and Postretirement Pl92
Pension and Postretirement Plans (Schedule Of Target Plan Allocation) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
International Pension Benefits [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | |
International Pension Benefits [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 51.00% | |
International Pension Benefits [Member] | Equities [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 20.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 60.00% | |
International Pension Benefits [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 100.00% | |
International Pension Benefits [Member] | Fixed Income [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 37.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 100.00% | |
International Pension Benefits [Member] | Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 20.00% | |
International Pension Benefits [Member] | Hedge Funds [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 22.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 35.00% | |
International Pension Benefits [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 10.00% | |
International Pension Benefits [Member] | Real Estate [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 5.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 10.00% | |
International Pension Benefits [Member] | Cash and Cash Equivalents [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
International Pension Benefits [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 35.00% | |
International Pension Benefits [Member] | Other [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 16.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 20.00% | |
United States Pension Benefits [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | |
United States Pension Benefits [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 47.00% | |
Equity securities, maximum | 47.00% | |
United States Pension Benefits [Member] | Equities [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 49.00% | |
Equity securities, minimum | 49.00% | |
Equity securities, maximum | 49.00% | |
United States Pension Benefits [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 31.00% | |
Equity securities, maximum | 31.00% | |
United States Pension Benefits [Member] | Fixed Income [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 32.00% | |
Equity securities, minimum | 32.00% | |
Equity securities, maximum | 32.00% | |
United States Pension Benefits [Member] | Hedge Funds [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
United States Pension Benefits [Member] | Real Estate [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
United States Pension Benefits [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 22.00% | |
Equity securities, maximum | 22.00% | |
United States Pension Benefits [Member] | Cash and Cash Equivalents [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 19.00% | |
Equity securities, minimum | 19.00% | |
Equity securities, maximum | 19.00% | |
United States Pension Benefits [Member] | Other [Member] | 2015 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% |
Pension and Postretirement Pl93
Pension and Postretirement Plans (Schedule Of Pension Plan Assets Measured At Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,591 | $ 1,718 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 62 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 42 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59 | 66 | $ 70 |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,532 | 1,652 | 1,580 |
International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 62 | |
International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 42 | 24 |
Equities [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 61 | |
Equities [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 53 | |
Equities [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Equities [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 6 | 1 |
Fixed Income [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 11 | |
Fixed Income [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed Income [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed Income [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 11 | 6 |
Real Estate [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 12 | |
Real Estate [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 12 | 5 |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 9 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 9 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 13 | |
Other [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 13 | $ 12 |
Investments Measured At Net Asset Value [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59 | 66 | |
Investments Measured At Net Asset Value [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,423 | $ 1,546 |
Pension and Postretirement Pl94
Pension and Postretirement Plans (Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | $ 1,718 | |
Fair value of plan assets at end of period | 1,591 | $ 1,718 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 42 | |
Fair value of plan assets at end of period | 45 | 42 |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 66 | 70 |
Foreign exchange impact | (3) | 0 |
Fair value of plan assets at end of period | 59 | 66 |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 1,652 | 1,580 |
Foreign exchange impact | (174) | (123) |
Fair value of plan assets at end of period | 1,532 | 1,652 |
International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 42 | 24 |
Return on assets held at end of year | 2 | 5 |
Return on assets sold during the year | 5 | 0 |
Purchases, sales and settlements | (1) | 15 |
Foreign exchange impact | (3) | (2) |
Fair value of plan assets at end of period | 45 | 42 |
Equities [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 61 | |
Fair value of plan assets at end of period | 66 | 61 |
Equities [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 6 | 1 |
Return on assets held at end of year | 1 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 5 | 5 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 12 | 6 |
Fixed Income [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 11 | |
Fair value of plan assets at end of period | 14 | 11 |
Fixed Income [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 11 | 6 |
Return on assets held at end of year | 0 | (1) |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 4 | 7 |
Foreign exchange impact | (1) | (1) |
Fair value of plan assets at end of period | 14 | 11 |
Real Estate [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 12 | |
Fair value of plan assets at end of period | 6 | 12 |
Real Estate [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 12 | 5 |
Return on assets held at end of year | (2) | 4 |
Return on assets sold during the year | 5 | 0 |
Purchases, sales and settlements | (8) | 3 |
Foreign exchange impact | (1) | 0 |
Fair value of plan assets at end of period | 6 | 12 |
Cash and Cash Equivalents [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 9 | |
Fair value of plan assets at end of period | 10 | 9 |
Cash and Cash Equivalents [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 0 | |
Fair value of plan assets at end of period | 0 | 0 |
Other [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 13 | |
Fair value of plan assets at end of period | 13 | 13 |
Other [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 13 | 12 |
Return on assets held at end of year | 3 | 2 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | (2) | 0 |
Foreign exchange impact | (1) | (1) |
Fair value of plan assets at end of period | $ 13 | $ 13 |
Pension and Postretirement Pl95
Pension and Postretirement Plans (Schedule Of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 15 |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
Years 2021 - 2025 | 22 |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 79 |
2,017 | 81 |
2,018 | 83 |
2,019 | 85 |
2,020 | 87 |
Years 2021 - 2025 | $ 471 |
Pension Plans Pension and Postr
Pension Plans Pension and Postretirement Plans (Deferred Compensation) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Deferred compensation plans obligations | $ 70 | $ 71 |
Debt And Other Credit Facilit97
Debt And Other Credit Facilities (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | Sep. 25, 2015USD ($) | 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, 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 | $ 51 | $ 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 | $ 698 | |||
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] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | $ 593 | |||
LettersOfCreditOutstandingLongerMaturity | 0 | |||
Committed and uncommitted lines of credit, total | 2,200 | |||
Letters of credit outstanding relate to joint venture operations | 236 | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | 127 | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | Uncommitted Bank Lines [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | $ 466 | |||
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 | |||
Nonrecourse project debt | £ | £ 84.9 | |||
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 B 5.9% Fixed Rate Bonds [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | $ 24 |
Debt And Other Credit Facilit98
Debt And Other Credit Facilities (Consolidated amount of non-recourse project-finance debt of a VIE) (Details) £ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2014 | |
Long-term Debt, Maturing in Years Four and Five [Abstract] | |||
2,016 | $ 10 | ||
2,017 | 10 | ||
2,018 | 10 | ||
2,019 | 11 | ||
2,020 | 12 | ||
Beyond 2,019 | $ 8 | ||
Class A 3.5% Index Linked Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Guaranteed secured bonds, percentage | 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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 542 | $ 538 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 13 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | $ (1) | |
Amounts due to former parent | 19 | 56 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 320 | ||
Due to former parent upon receipt from IRS | 19 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 4 | $ 455 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 243 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 5 | ||
Undistributed Earnings of Foreign Subsidiaries | 1,100 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1 |
Income Taxes (Components Of The
Income Taxes (Components Of The Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ (17) | $ 41 | $ (6) | |
Deferred Federal Income Tax Expense (Benefit) | 8 | (333) | 17 | |
Federal Income Tax Expense (Benefit), Continuing Operations | (9) | (292) | 11 | |
Current Foreign Tax Expense (Benefit) | (55) | (110) | (109) | |
Deferred Foreign Income Tax Expense (Benefit) | (22) | (11) | (31) | |
Foreign Income Tax Expense (Benefit), Continuing Operations | (77) | (121) | (140) | |
Other Tax Expense (Benefit) | 0 | 1 | 4 | |
Deferred Other Tax Expense (Benefit) | 0 | (9) | (4) | |
Other Income Tax Expense (Benefit), Continuing Operations | 0 | (8) | 0 | |
Current Income Tax Expense (Benefit) | (72) | (68) | (111) | |
Deferred Income Tax Expense (Benefit) | (14) | (353) | (18) | |
Income Tax Expense (Benefit) | $ (391) | $ (86) | $ (421) | $ (129) |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (35) | $ (1,051) | $ (141) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 347 | 274 | 441 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 312 | (777) | 300 |
UNITED KINGDOM | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 105 | 130 | 162 |
AUSTRALIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 32 | 180 | 280 |
CANADA | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 87 | (101) | (117) |
International [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 123 | $ 65 | $ 116 |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Components of Foreign Income Tax Expense (Benefit) Income Tax Disclosure [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | 35.00% | (35.00%) | 35.00% |
Rate differentials on foreign earnings | (10.00%) | (5.00%) | (12.00%) |
Noncontrolling interests and equity earnings | (8.00%) | (4.00%) | (5.00%) |
State and local income taxes, net of federal benefit | 2.00% | (2.00%) | (1.00%) |
Other permanent differences, net | 0.00% | 2.00% | (2.00%) |
Contingent liability accrual | (1.00%) | 9.00% | 7.00% |
U.S. taxes on foreign unremitted earnings | 1.00% | 11.00% | 2.00% |
Non-deductible goodwill impairment | 0.00% | 20.00% | 0.00% |
Increase in valuation allowance | 6.00% | 58.00% | 15.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 3.00% | 0.00% | 4.00% |
Effective tax rate on income from operations | 28.00% | 54.00% | 43.00% |
Income Taxes (Components Of Our
Income Taxes (Components Of Our Deferred Tax Assets And Liabilities And The Related Valuation Allowances) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Components of Foreign Income Tax Expense (Benefit) Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | $ 140 | $ 175 |
Foreign tax credit carryforwards | 282 | 233 |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 97 | 89 |
Deferred Tax Assets, Operating Loss Carryforwards | 65 | 133 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 15 | 22 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 10 | 10 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 45 | 51 |
Deferred Tax Assets, Gross | 654 | 713 |
Deferred Tax Assets, Valuation Allowance | 542 | 538 |
Deferred Tax Assets, Net of Valuation Allowance | 112 | 175 |
Deferred Tax Liabilities Construction Contract Accounting | 12 | 15 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 25 | 35 |
Deferred Tax Liabilities Depreciation And Amortization | 2 | 2 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 39 | 98 |
Deferred Tax Liabilities, Other | 29 | (23) |
Deferred Tax Liabilities, Gross | 107 | 127 |
Deferred Tax Assets, Net | $ 5 | $ 48 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ (391) | $ (86) | $ (421) | $ (129) |
CTA, taxes | (3) | 4 | 27 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | (22) | 10 | 18 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | 0 | 0 | |
Income Tax Expense (Benefit), Intraperiod Tax Allocation | $ (111) | $ (407) | $ (84) |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Foreign Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 3.00% | 0.00% | 4.00% |
Foreign Income Tax Expense (Benefit), Continuing Operations | $ (77) | $ (121) | $ (140) |
International [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | (81) | (81) | (62) |
CANADA | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 3 | 6 | (3) |
AUSTRALIA | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 16 | (24) | (41) |
UNITED KINGDOM | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | $ (15) | $ (22) | $ (34) |
Income Taxes Income Taxes (C106
Income Taxes Income Taxes (Components of Deferred Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ (14) | $ (353) | $ (18) |
Deferred Benefit [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 14 | 254 | 48 |
Tax reserves and allowances on current year activity [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | (20) | (210) | (39) |
Tax reserves and allowances on beginning of the year balances [Member] [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 0 | (320) | (9) |
Unremitted foreign earnings [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 0 | (77) | (5) |
U.K. statutory rate change [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ (8) | $ 0 | $ (13) |
Income Taxes Income Taxes (Summ
Income Taxes Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | $ 547 | |
Deferred Tax Assets, Valuation Allowance | (542) | $ (538) |
Deferred Tax Assets, Net | 5 | $ 48 |
UNITED STATES | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 505 | |
Deferred Tax Assets, Valuation Allowance | (503) | |
Deferred Tax Assets, Net | 2 | |
UNITED KINGDOM | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 80 | |
Deferred Tax Assets, Valuation Allowance | 0 | |
Deferred Tax Assets, Net | 80 | |
AUSTRALIA | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 1 | |
Deferred Tax Assets, Valuation Allowance | (1) | |
Deferred Tax Assets, Net | 0 | |
CANADA | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 18 | |
Deferred Tax Assets, Valuation Allowance | (14) | |
Deferred Tax Assets, Net | 4 | |
MEXICO | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | (91) | |
Deferred Tax Assets, Valuation Allowance | (2) | |
Deferred Tax Assets, Net | (93) | |
Other [Member] | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 34 | |
Deferred Tax Assets, Valuation Allowance | (22) | |
Deferred Tax Assets, Net | $ 12 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Beginning balance | $ 228 | $ 68 | $ 95 |
Increases related to current year tax positions | 18 | 13 | 3 |
Increases related to prior year tax positions | 35 | 168 | 15 |
Decreases related to prior year tax positions | (3) | (13) | (36) |
Settlements | (2) | (1) | 0 |
Lapse of statute of limitations | (16) | (5) | (2) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | (3) | (2) | (7) |
Unrecognized Tax Benefits, Ending balance | $ 257 | $ 228 | $ 68 |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Foreign tax credit carryforwards | $ 399 |
Foreign net operating loss carryforwards | 122 |
Foreign net operating loss carryforwards | 45 |
State net operating loss carryforwards | $ 580 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2008USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)lawsuitsclaimdefendent | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 27, 2011USD ($) | Dec. 31, 2009lawsuits | |
United States Government Contract Work [Line Items] | |||||||
Contract, Direct Claim | $ 1,100 | ||||||
Contract, Direct Claim, Related to Certain Contract | 138 | ||||||
Contracts Revenue | 5,096 | $ 6,366 | $ 7,214 | ||||
Retainage payable | $ 88 | 49 | 88 | ||||
Loss Contingency, Estimate of Possible Loss | $ 628 | ||||||
Contract Termination Claims, US Federal Government, Additions | 0 | 0 | |||||
Government Contract, Additions | 0 | 0 | |||||
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise, Additions | 0 | 0 | |||||
Contract Termination Claims, US Federal Government, Settlements | (15) | (86) | |||||
Government Contract, Settlements | (13) | (41) | |||||
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise, Settlements | $ 0 | (18) | |||||
Loss Contingency, Pending Claims, Number | claim | 5 | ||||||
Loss Contingency, Number of Active Claims | claim | 2 | ||||||
Unapproved claims included in accounts receivables related to various government contracts where costs have exceeded the customer's funded value of task orders | 570 | $ 526 | 570 | ||||
Amount of unapproved claims related to de-obligation of funding | 490 | 224 | 490 | ||||
All Defense Contract Audit Agency Audit Issues [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Contract Termination Claims, US Federal Government | 188 | 173 | 188 | 274 | |||
Government Contract Receivable | 96 | 83 | 96 | 137 | |||
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise | 32 | 32 | 32 | $ 50 | |||
Audits [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Contract Termination Claims, US Federal Government | 109 | ||||||
Recovery of Direct Costs | $ 9 | ||||||
RecoveryRate | 99.89% | ||||||
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Provision for Doubtful Accounts | 74 | $ 50 | 74 | ||||
First Kuwaiti Trading Company Arbitration [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Loss Contingency, Damages Sought, Value | $ 134 | ||||||
AmountOwedToSubcontractor | 32 | ||||||
PaymentsOnContractWork | $ 26 | 4 | $ 19 | ||||
Damages awarded, value | 17 | ||||||
Sodium Dichromate Litigation [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Contract Termination Claims, US Federal Government | $ 30 | ||||||
Loss Contingency, Pending Claims, Number | lawsuits | 2 | 5 | |||||
qui tams [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
qui tam government joined | lawsuits | 1 | ||||||
Legal Fees | $ 15 | ||||||
DOJFCA [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Loss Contingency, Number of Defendants | defendent | 3 | ||||||
Minimum [Member] | Burn Pit Litigation [Member] | |||||||
United States Government Contract Work [Line Items] | |||||||
Loss Contingency, Pending Claims, Number | lawsuits | 60 |
Other Commitments And Contin111
Other Commitments And Contingencies (Other) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2004 | |
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | $ 52 | $ 66 | |||
Payment on performance bonds | 0 | 0 | $ 108 | ||
Claims receivable | 526 | 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 | 26 | ||||
PaymentOnPerformanceBondsOther | $ 2 | ||||
Accounts Payable and Accrued Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | 14 | 14 | |||
Other Current Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | 12 | 19 | |||
Other Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | $ 26 | $ 33 |
Other Commitments And Contin112
Other Commitments And Contingencies (Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Deferred Rent Credit, Noncurrent | $ 114 | $ 128 | |
Total rent expense | 155 | 158 | $ 159 |
2,015 | 98 | ||
2,016 | 83 | ||
2,017 | 72 | ||
2,018 | 61 | ||
2,019 | 56 | ||
Beyond 2,019 | 350 | ||
Other Current Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Deferred Gain on Sale of Property | $ 7 | $ 7 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | $ 935 | $ 2,439 | $ 935 | $ 2,439 | $ 2,511 | ||||||
Acquisition of noncontrolling interest | (40) | 0 | 0 | ||||||||
Share-based compensation | 18 | 22 | 16 | ||||||||
Common stock issued upon exercise of stock options | 1 | 4 | 6 | ||||||||
Dividends declared to shareholders | (47) | (47) | (36) | ||||||||
Adjustment pursuant to tax sharing agreement | 0 | 0 | (7) | ||||||||
Repurchases of common stock | (62) | (106) | (7) | ||||||||
Issuance of ESPP shares | 5 | 4 | 4 | ||||||||
Investments by noncontrolling interests | 10 | 9 | |||||||||
Distributions to noncontrolling interests | (28) | (61) | (109) | ||||||||
Other noncontrolling interest activity | (3) | 2 | 2 | ||||||||
Net income (loss) | $ 48 | $ 59 | $ 68 | 51 | $ (1,231) | $ 45 | $ 8 | (20) | 226 | (1,198) | 171 |
Other comprehensive income (loss), net of tax | 47 | (134) | (121) | ||||||||
Ending Balance | 1,052 | 935 | 1,052 | 935 | 2,439 | ||||||
PIC [Member] | |||||||||||
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | 2,091 | 2,065 | 2,091 | 2,065 | 2,049 | ||||||
Acquisition of noncontrolling interest | (40) | ||||||||||
Share-based compensation | 18 | 22 | 16 | ||||||||
Common stock issued upon exercise of stock options | 1 | 4 | 6 | ||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||
Adjustment pursuant to tax sharing agreement | (7) | ||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||
Issuance of ESPP shares | 0 | 0 | 1 | ||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||
Other noncontrolling interest activity | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Ending Balance | 2,070 | 2,091 | 2,070 | 2,091 | 2,065 | ||||||
Retained Earnings [Member] | |||||||||||
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | 439 | 1,748 | 439 | 1,748 | 1,709 | ||||||
Acquisition of noncontrolling interest | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||
Dividends declared to shareholders | 47 | (47) | (36) | ||||||||
Adjustment pursuant to tax sharing agreement | 0 | ||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||
Distributions to noncontrolling interests | $ 0 | 0 | 0 | ||||||||
Other noncontrolling interest activity | 0 | 0 | |||||||||
Net income (loss) | $ 203 | (1,262) | 75 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Ending Balance | 595 | 439 | 595 | 439 | 1,748 | ||||||
Treasury Stock [Member] | |||||||||||
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | (712) | (610) | (712) | (610) | (606) | ||||||
Acquisition of noncontrolling interest | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||
Adjustment pursuant to tax sharing agreement | 0 | ||||||||||
Repurchases of common stock | 62 | (106) | (7) | ||||||||
Issuance of ESPP shares | 5 | 4 | 3 | ||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||
Other noncontrolling interest activity | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Ending Balance | (769) | (712) | (769) | (712) | (610) | ||||||
AOCL [Member] | |||||||||||
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | (876) | (740) | (876) | (740) | (610) | ||||||
Acquisition of noncontrolling interest | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||
Adjustment pursuant to tax sharing agreement | 0 | ||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||
Other noncontrolling interest activity | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 45 | (136) | (130) | ||||||||
Ending Balance | (831) | (876) | (831) | (876) | (740) | ||||||
Noncontrolling Interests [Member] | |||||||||||
Shareholders Equity [Line Items] | |||||||||||
Beginning Balance | $ (7) | $ (24) | (7) | (24) | (31) | ||||||
Acquisition of noncontrolling interest | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||
Adjustment pursuant to tax sharing agreement | 0 | ||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||
Investments by noncontrolling interests | 10 | 9 | |||||||||
Distributions to noncontrolling interests | 28 | (61) | (109) | ||||||||
Other noncontrolling interest activity | (3) | 2 | 2 | ||||||||
Net income (loss) | 23 | 64 | 96 | ||||||||
Other comprehensive income (loss), net of tax | 2 | 2 | 9 | ||||||||
Ending Balance | $ (13) | $ (7) | $ (13) | $ (7) | $ (24) |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (876) | $ (740) | |||
Other comprehensive income adjustments before reclassifications | 1 | (171) | |||
Amounts reclassified from accumulated other comprehensive income | 44 | 35 | |||
Ending balance | (831) | (876) | |||
Accrued dividends | 12 | 12 | |||
Accumulated foreign currency translation adjustments, net of tax of $1, $4 and $0 | $ (269) | $ (203) | $ (131) | ||
Pension and post-retirement benefits, net of tax of $209, $231 and $221 | (560) | (670) | (608) | ||
Changes in fair value of derivatives, net of tax of $0, $0 and $0 | (2) | (3) | (1) | ||
Total accumulated other comprehensive loss | (876) | (740) | (831) | (876) | (740) |
Cumulative translation adjustments, tax | 1 | 4 | 0 | ||
Pension liability adjustments, tax | 209 | 231 | 221 | ||
Unrealized gains (losses) on derivatives, tax | 0 | 0 | 0 | ||
Accumulated foreign currency translation adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (203) | (131) | |||
Other comprehensive income adjustments before reclassifications | (70) | (73) | |||
Amounts reclassified from accumulated other comprehensive income | 4 | 1 | |||
Ending balance | (269) | (203) | |||
Total accumulated other comprehensive loss | (203) | (131) | (269) | (203) | (131) |
Pension and post-retirement benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (670) | (608) | |||
Other comprehensive income adjustments before reclassifications | 71 | (96) | |||
Amounts reclassified from accumulated other comprehensive income | 39 | 34 | |||
Ending balance | (560) | (670) | |||
Total accumulated other comprehensive loss | (670) | (608) | (560) | (670) | (608) |
Changes in fair value of derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (3) | (1) | |||
Other comprehensive income adjustments before reclassifications | 0 | (2) | |||
Amounts reclassified from accumulated other comprehensive income | 1 | 0 | |||
Ending balance | (2) | (3) | |||
Total accumulated other comprehensive loss | $ (3) | $ (1) | $ (2) | $ (3) | $ (1) |
Shareholders' Equity (Shares Of
Shareholders' Equity (Shares Of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ||
Balance, Shares | 174,448,399 | 173,924,509 |
Common stock issued, Shares | 659,701 | 523,890 |
Balance, Shares | 175,108,100 | 174,448,399 |
Shareholders' Equity (Shares116
Shareholders' Equity (Shares Of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Balance, Shares | 29,611,118 | 25,700,000 | |
Balance, Amount | $ 712 | $ 610 | |
Treasury stock acquired, net of ESPP shares issued, Shares | 3,400,000 | 3,900,000 | |
Treasury stock acquired, net of ESPP shares issued, Amount | $ 57 | $ 102 | |
Balance, Shares | 33,049,744 | 29,611,118 | 25,700,000 |
Balance, Amount | $ 769 | $ 712 | $ 610 |
Dividends declared to shareholders' | 47 | 47 | $ 36 |
Accrued dividends | $ 12 | $ 12 |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on disposition of assets | $ (61) | $ (7) | $ (2) | |
Amortization of loss | 312 | (777) | 300 | |
Tax benefit (expense) | $ (391) | (86) | (421) | (129) |
Net foreign currency translation adjustments realized | (4) | (1) | $ (1) | |
Accumulated pension liability adjustments | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of loss | (48) | (42) | ||
Tax benefit (expense) | 9 | 8 | ||
Net pension and post-retirement benefits | $ (39) | $ (34) |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 62 | $ 106 | $ 7 | |
Number of shares repurchased under the authorization | 3,642,625 | 4,041,078 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 17.15 | $ 26.15 | ||
Share Repurchase Program Twenty Fourteen [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 52 | $ 88 | ||
Stock Repurchase Program, Authorized Amount | $ 350 | |||
Number of shares repurchased under the authorization | 2,992,687 | 3,374,479 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 17.43 | $ 26.13 | ||
Share Maintenance Plan [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 7 | $ 16 | ||
Number of shares repurchased under the authorization | 466,974 | 593,042 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 15.43 | $ 26.07 | ||
Shares Withheld to Cover [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 3 | $ 2 | ||
Number of shares repurchased under the authorization | 182,964 | 73,557 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 16.98 | $ 27.69 |
Share-based Compensation And119
Share-based Compensation And Incentive Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 7,000,000 | $ 8,000,000 | $ 6,000,000 | |
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,000,000 | |||
Common stock reserved for issuance | 12,000,000 | 2,300,000 | ||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of discount on stock price | 5.00% | |||
ESPP stock issued (shares) | 204,000 | 159,000 | ||
Maximum withhold percentage | 10.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value per share | $ 4.91 | $ 9.57 | ||
Total intrinsic values of options exercised | $ 300,000 | $ 3,000,000 | 7,000,000 | |
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 9 months | |||
Stock option compensation expense | $ 5,000,000 | 6,000,000 | 9,000,000 | |
Unrecognized compensation cost, net of estimated forfeitures | 5,000,000 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 2,000,000 | $ 2,000,000 | $ 3,000,000 | |
KBR Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value per share | $ 16.66 | $ 28.46 | $ 30.64 | |
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 9 months 26 days | |||
Unrecognized compensation cost, net of estimated forfeitures | $ 18,000,000 | |||
Restricted stock compensation expense | 13,000,000 | $ 16,000,000 | $ 7,000,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 5,000,000 | 6,000,000 | 3,000,000 | |
Weighted-Average Fair Value On Vesting Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of shares vested based on the weighted-average fair value | 9,000,000 | 6,000,000 | 8,000,000 | |
Weighted-Average Fair Value On Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of shares vested based on the weighted-average fair value | $ 14,000,000 | $ 11,000,000 | $ 7,000,000 | |
Cash Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of average total shareholder return | 50.00% | 100.00% | 100.00% | |
Percentage of job income sold | 50.00% | |||
Expense for cash performance awards | $ 3,000,000 | $ 0 | $ 8,000,000 | |
Liability for awards | 5,000,000 | $ 1,000,000 | ||
Liability for awards due within one year | $ 0 | |||
Restricted Stock Units (RSUs) [Member] | Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,000,000 | |||
Common stock reserved for issuance | 5,500,000 | 700,000 | ||
Cash Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted | 22,000,000 | 27,000,000 | 30,000,000 | |
Cash performance award units period, years | 3 years | 3 years | 3 years | |
Number of cash performance based award units forfeited | 15,000,000 | 17,000,000 | 10,000,000 | |
Outstanding awards balance | 70,800,000 |
Share-based Compensation And120
Share-based Compensation And Incentive Plans (Summary Of Stock Options Assumption) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted stock options | 1,067,308 | 600,000 |
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Weighted average grant-date fair value per share | $ 4.91 | $ 9.57 |
Expected volatility range, Start | 33.92% | 36.48% |
Expected volatility range, End | 39.65% | 40.49% |
Risk-free interest rate range, Start | 1.46% | 1.67% |
Risk-free interest rate range, End | 2.12% | 2.21% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield range | 2.13% | 1.52% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield range | 1.15% | 1.08% |
Share-based Compensation And121
Share-based Compensation And Incentive Plans (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 31, Number of Shares | 3,160,091 | |
Granted, Number of Shares | 1,067,308 | 600,000 |
Exercised, Number of Shares | (62,503) | |
Forfeited, Number of Shares | (231,949) | |
Expired, Number of Shares | (450,290) | |
Outstanding at December 31, Number of Shares | 3,482,657 | 3,160,091 |
Exercisable, Number of Shares | 2,059,060 | |
Outstanding at December 31, Weighted Average Exercise Price per Share | $ 26.96 | |
Granted, Weighted Average Exercise Price per Share | 16.52 | |
Exercised, Weighted Average Exercise Price per Share | 12.32 | |
Forfeited, Weighted Average Exercise Price per Share | 23.65 | |
Expired, Weighted Average Exercise Price per Share | 30.19 | |
Outstanding at December 31, Weighted Average Exercise Price per Share | 23.83 | $ 26.96 |
Exercisable, Weighted Average Exercise Price per Share | $ 26.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months 17 days | 6 years 6 months 15 days |
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 8 days | |
Outstanding at December 31, Aggregate Intrinsic Value (in millions) | $ 2,400 | |
Outstanding at December 31, Aggregate Intrinsic Value (in millions) | 2,920 | $ 2,400 |
Exercisable, Aggregate Intrinsic Value (in millions) | $ 2,000 |
Share-based Compensation And122
Share-based Compensation And Incentive Plans (Summary Of Vested And Unvested RSUs) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested shares at December 31, Number of Shares | shares | 1,128,877 |
Granted, Number of Shares | shares | 855,499 |
Vested, Number of Shares | shares | (529,440) |
Forfeited, Number of Shares | shares | (80,970) |
Nonvested shares at December 31, Number of Shares | shares | 1,373,966 |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share | $ / shares | $ 28.99 |
Granted, Weighted Average Grant-Date Fair Value per Share | $ / shares | 16.66 |
Vested, Weighted Average Grant-Date Fair Value per Share | $ / shares | 25.97 |
Forfeited, Weighted Average Grant-Date Fair Value per Share | $ / shares | 19.05 |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share | $ / shares | $ 23.05 |
Share-based Compensation And123
Share-based Compensation And Incentive Plans (Summary Of Share-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Breakdown of share based compensation expense [Line Items] | |||
Share-based compensation | $ 18 | $ 22 | $ 16 |
Total income tax benefit recognized in net income for share-based compensation arrangements | 7 | 8 | 6 |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | 2 | $ 2 | $ 1 |
Cost of Sales [Member] | |||
Breakdown of share based compensation expense [Line Items] | |||
Share-based compensation | 9 | ||
Selling, General and Administrative Expenses [Member] | |||
Breakdown of share based compensation expense [Line Items] | |||
Share-based compensation | $ 9 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | $ 1.7 | $ 0 | $ 0.3 |
Earnings Per Share, Diluted, Undistributed | $ 0.01 | ||
Antidilutive weighted average shares | 3.4 | 3 | 1.8 |
Income Per Share (Schedule Of B
Income Per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 144 | 146 | 148 |
Stock options and restricted shares | 0 | 0 | 1 |
Diluted weighted average common shares outstanding | 144 | 146 | 149 |
Financial Instruments And Ri126
Financial Instruments And Risk Management (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | ||
Interest Rate Derivatives, at Fair Value, Net | $ (40) | $ (47) |
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 50 | 47 |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 10 | $ 0 |
Maximum length of time hedged in cash flow hedge | 24 months | |
Maximum Length of Time Hedged in Balance Sheet Hedge | 22 days | |
Balance Sheet Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts, open forward contracts | $ 104 | |
Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 22 |
Quarterly Data (Details)
Quarterly Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Total revenue | $ 1,080,000,000 | $ 1,199,000,000 | $ 1,381,000,000 | $ 1,436,000,000 | $ 1,417,000,000 | $ 1,657,000,000 | $ 1,659,000,000 | $ 1,633,000,000 | $ 5,096,000,000 | $ 6,366,000,000 | $ 7,214,000,000 | |
Gross profit (loss) | 94,000,000 | 87,000,000 | 74,000,000 | 70,000,000 | (162,000,000) | 30,000,000 | 28,000,000 | 39,000,000 | 325,000,000 | (65,000,000) | 417,000,000 | |
Equity in earnings of unconsolidated affiliates | 26,000,000 | 35,000,000 | 53,000,000 | 35,000,000 | 45,000,000 | 38,000,000 | 49,000,000 | 31,000,000 | 149,000,000 | 163,000,000 | 137,000,000 | |
Operating income (loss) | 75,000,000 | 75,000,000 | 96,000,000 | 64,000,000 | (839,000,000) | 10,000,000 | 25,000,000 | 10,000,000 | 310,000,000 | (794,000,000) | 308,000,000 | |
Net income (loss) | 48,000,000 | 59,000,000 | 68,000,000 | 51,000,000 | (1,231,000,000) | 45,000,000 | 8,000,000 | (20,000,000) | 226,000,000 | (1,198,000,000) | 171,000,000 | |
Net income (loss) attributable to noncontrolling interests | (6,000,000) | (4,000,000) | (6,000,000) | (7,000,000) | (10,000,000) | (15,000,000) | (16,000,000) | (23,000,000) | (23,000,000) | (64,000,000) | (96,000,000) | |
Net income (loss) attributable to KBR | $ 42,000,000 | $ 55,000,000 | $ 62,000,000 | $ 44,000,000 | $ (1,241,000,000) | $ 30,000,000 | $ (8,000,000) | $ (43,000,000) | $ 203,000,000 | $ (1,262,000,000) | $ 75,000,000 | |
Net income attributable to KBR per share - Basic | $ 0.29 | $ 0.38 | $ 0.43 | $ 0.30 | $ (8.57) | $ 0.21 | $ (0.06) | $ (0.29) | $ 1.40 | $ (8.66) | $ 0.50 | |
Net income attributable to KBR per share - Diluted | $ 0.29 | $ 0.38 | $ 0.43 | $ 0.30 | $ (8.57) | $ 0.21 | $ (0.06) | $ (0.29) | $ 1.40 | $ (8.66) | $ 0.50 | |
Provision for Loss on Contracts | $ 60,000,000 | $ 159,000,000 | $ 60,000,000 | $ 159,000,000 | $ 109,000,000 | $ 56,000,000 | ||||||
Impairment of goodwill | 446,000,000 | 0 | 446,000,000 | 0 | ||||||||
Asset impairment and restructuring charges | 214,000,000 | 39,000,000 | 43,000,000 | |||||||||
Income Tax Expense (Benefit) | 391,000,000 | 86,000,000 | 421,000,000 | $ 129,000,000 | ||||||||
Power Projects [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Provision for Loss on Contracts | 47,000,000 | 80,000,000 | 47,000,000 | 80,000,000 | ||||||||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Provision for Loss on Contracts | $ 0 | $ 53,000,000 | $ 0 | $ 53,000,000 |