Exhibit 99.1
KBR, Inc.: Consolidated Balance Sheets
(In millions)
March 31, | December 31, | |||||||
2018 | 2017 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 486 | $ | 439 | ||||
Accounts receivable, net of allowance for doubtful accounts of $12 and $12 | 810 | 510 | ||||||
Contract assets | 235 | 383 | ||||||
Other current assets | 102 | 93 | ||||||
Total current assets | 1,633 | 1,425 | ||||||
Claims and accounts receivable | 106 | 101 | ||||||
Property, plant, and equipment, net of accumulated depreciation of $336 and $329 (including net PPE of $43 and $34 owned by a variable interest entity) | 142 | 130 | ||||||
Goodwill | 1,011 | 968 | ||||||
Intangible assets, net of accumulated amortization of $128 and $122 | 486 | 239 | ||||||
Equity in and advances to unconsolidated affiliates | 566 | 387 | ||||||
Deferred income taxes | 289 | 300 | ||||||
Other assets | 131 | 124 | ||||||
Total assets | $ | 4,364 | $ | 3,674 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 475 | $ | 350 | ||||
Contract liabilities | 502 | 368 | ||||||
Accrued salaries, wages and benefits | 186 | 186 | ||||||
Nonrecourse project debt | 11 | 10 | ||||||
Other current liabilities | 146 | 157 | ||||||
Total current liabilities | 1,320 | 1,071 | ||||||
Pension obligations | 392 | 391 | ||||||
Employee compensation and benefits | 102 | 118 | ||||||
Income tax payable | 86 | 85 | ||||||
Deferred income taxes | 81 | 18 | ||||||
Nonrecourse project debt | 29 | 28 | ||||||
Revolving credit agreement | 540 | 470 | ||||||
Deferred income from unconsolidated affiliates | — | 101 | ||||||
Other liabilities | 183 | 171 | ||||||
Total liabilities | 2,733 | 2,453 | ||||||
KBR shareholders' equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | — | — | ||||||
Paid-in capital in excess of par | 2,094 | 2,091 | ||||||
Accumulated other comprehensive loss | (912 | ) | (921 | ) | ||||
Retained earnings | 1,148 | 877 | ||||||
Treasury stock | (818 | ) | (818 | ) | ||||
Total KBR shareholders' equity | 1,512 | 1,229 | ||||||
Noncontrolling interests | 119 | (8 | ) | |||||
Total shareholders' equity | 1,631 | 1,221 | ||||||
Total liabilities and shareholders' equity | $ | 4,364 | $ | 3,674 |
KBR, Inc.: Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
Three Months Ended | |||||||
March 31, | March 31, | ||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 139 | $ | 38 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 13 | 13 | |||||
Equity in earnings of unconsolidated affiliates | (23 | ) | (9 | ) | |||
Deferred income tax expense | 25 | 5 | |||||
Gain on consolidation of Aspire entities | (115 | ) | — | ||||
Other | 11 | 6 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net of allowance for doubtful accounts | (134 | ) | 38 | ||||
Contract assets | (44 | ) | 4 | ||||
Accounts payable | 63 | (75 | ) | ||||
Contract liabilities | (32 | ) | (124 | ) | |||
Accrued salaries, wages and benefits | 2 | 16 | |||||
Reserve for loss on uncompleted contracts | (3 | ) | (22 | ) | |||
Payments from unconsolidated affiliates, net | 1 | 1 | |||||
Distributions of earnings from unconsolidated affiliates | 1 | 14 | |||||
Income taxes payable | 12 | 6 | |||||
Pension funding | (10 | ) | (9 | ) | |||
Retainage payable | — | — | |||||
Subcontractor advances | (1 | ) | — | ||||
Net settlement of derivative contracts | 3 | (2 | ) | ||||
Other assets and liabilities | (38 | ) | (15 | ) | |||
Total cash flows used in operating activities | (130 | ) | (115 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (9 | ) | (3 | ) | |||
Payments for investments in equity method joint ventures | (72 | ) | — | ||||
Acquisition of businesses, net of cash acquired | — | 2 | |||||
Increase in cash due to consolidation of Aspire entities | 205 | — | |||||
Other | 1 | — | |||||
Total cash flows provided by (used in) investing activities | 125 | (1 | ) | ||||
Cash flows from financing activities: | |||||||
Payments to reacquire common stock | (2 | ) | (2 | ) | |||
Acquisition of noncontrolling interest | (6 | ) | — | ||||
Distributions to noncontrolling interests | — | (1 | ) | ||||
Payments of dividends to shareholders | (11 | ) | (12 | ) | |||
Net proceeds from issuance of common stock | — | — | |||||
Borrowings on revolving credit agreement | 70 | — | |||||
Other | — | — | |||||
Total cash flows provided by (used in) financing activities | 51 | (15 | ) | ||||
Effect of exchange rate changes on cash | 1 | 5 | |||||
Increase (decrease) in cash and equivalents | 47 | (126 | ) | ||||
Cash and equivalents at beginning of period | 439 | 536 | |||||
Cash and equivalents at end of period | $ | 486 | $ | 410 |