Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
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 | $ 2.5 | ||
Entity Common Stock, Shares Outstanding (in shares) | 141,010,856 | ||
Document Fiscal Year Focus | 2,018 | ||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 4,913 | $ 4,171 | $ 4,268 |
Cost of revenues | (4,457) | (3,829) | (4,156) |
Gross profit | 456 | 342 | 112 |
Equity in earnings of unconsolidated affiliates | 81 | 72 | 91 |
General and administrative expenses | (166) | (147) | (133) |
Acquisition and integration costs | (7) | 0 | (10) |
Asset impairment and restructuring charges | 0 | (6) | (39) |
(Loss) gain on disposition of assets | (2) | 5 | 7 |
Gain on consolidation of Aspire entities | 108 | 0 | 0 |
Operating income | 470 | 266 | 28 |
Interest expense | (66) | (21) | (13) |
Other non-operating (loss) income | (6) | 4 | 18 |
Income before income taxes and noncontrolling interests | 398 | 249 | 33 |
(Provision) benefit for income taxes | (88) | 193 | (84) |
Net income (loss) | 310 | 442 | (51) |
Net income attributable to noncontrolling interests | (29) | (8) | (10) |
Net income (loss) attributable to KBR | $ 281 | $ 434 | $ (61) |
Net income (loss) attributable to KBR per share: | |||
Basic (usd per share) | $ 1.99 | $ 3.06 | $ (0.43) |
Diluted (usd per share) | $ 1.99 | $ 3.06 | $ (0.43) |
Basic weighted average common shares outstanding (shares) | 140 | 141 | 142 |
Diluted weighted average common shares outstanding (shares) | 141 | 141 | 142 |
Cash dividends declared per share (usd per share) | $ 0.32 | $ 0.32 | $ 0.32 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 310 | $ 442 | $ (51) |
Foreign currency translation adjustments: | |||
Foreign currency translation adjustments, net of tax | (55) | 3 | 7 |
Reclassification adjustment included in net income | 6 | 0 | 0 |
Foreign currency translation adjustments, net of taxes of $(2), $6 and $(3) | (49) | 3 | 7 |
Pension and post-retirement benefits, net of tax: | |||
Actuarial gains (losses), net of tax | 64 | 100 | (249) |
Prior service cost | (20) | 0 | 0 |
Reclassification adjustment included in net income | 24 | 25 | 24 |
Pension and post-retirement benefits, net of taxes of $(14), $(27) and $45 | 68 | 125 | (225) |
Changes in fair value of derivatives: | |||
Changes in fair value of derivatives, net of tax | (20) | 1 | 0 |
Reclassification adjustment included in net income | 9 | (1) | (1) |
Changes in fair value of derivatives, net of taxes of $3, $0 and $0 | (11) | 0 | (1) |
Other comprehensive income (loss), net of tax | 8 | 128 | (219) |
Comprehensive income (loss) | 318 | 570 | (270) |
Less: Comprehensive income attributable to noncontrolling interests | (29) | (7) | (10) |
Comprehensive income (loss) attributable to KBR | $ 289 | $ 563 | $ (280) |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
After tax foreign currency adjustments | $ (2) | $ 6 | $ (3) |
Pension liability adjustment, taxes | (14) | (27) | 45 |
Net unrealized gain (loss) on derivatives, tax | $ 3 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets £ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Current assets: | ||
Cash and equivalents | $ 739 | $ 439 |
Accounts receivable, net of allowance for doubtful accounts of $9 and $12 | 927 | 510 |
Contract assets | 185 | 383 |
Other current assets | 108 | 93 |
Total current assets | 1,959 | 1,425 |
Claims and accounts receivable | 98 | 101 |
Property, plant, and equipment, net of accumulated depreciation of $355 and $329 (including net PPE of $35 and $34 owned by a variable interest entity) | 121 | 130 |
Goodwill | 1,265 | 968 |
Intangible assets, net of accumulated amortization of $151 and $122 | 516 | 239 |
Equity in and advances to unconsolidated affiliates | 744 | 387 |
Deferred income taxes | 222 | 300 |
Other assets | 147 | 124 |
Total assets | 5,072 | 3,674 |
Current liabilities: | ||
Accounts payable | 546 | 350 |
Contract liabilities | 463 | 368 |
Accrued salaries, wages and benefits | 221 | 186 |
Nonrecourse project debt | 10 | 10 |
Other current liabilities | 179 | 157 |
Total current liabilities | 1,419 | 1,071 |
Pension obligations | 250 | 391 |
Employee compensation and benefits | 109 | 118 |
Income tax payable | 84 | 85 |
Deferred income taxes | 27 | 18 |
Nonrecourse project debt | 17 | 28 |
Long term debt | 1,226 | 470 |
Deferred income from unconsolidated affiliates | 0 | 101 |
Other liabilities | 202 | 171 |
Total liabilities | 3,334 | 2,453 |
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, 177,383,302 and 176,638,882 shares issued, and 140,900,032 and 140,166,589 shares outstanding | 0 | 0 |
PIC | 2,190 | 2,091 |
AOCL | (913) | (921) |
Retained earnings | 1,258 | 877 |
Treasury stock, 36,483,270 shares and 36,472,293 shares, at cost | (817) | (818) |
Total KBR shareholders’ equity | 1,718 | 1,229 |
Noncontrolling interests | 20 | (8) |
Total shareholders’ equity | 1,738 | 1,221 |
Total liabilities and shareholders’ equity | $ 5,072 | $ 3,674 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables: | ||
Allowance for doubtful accounts receivable | $ 9 | $ 12 |
Property, plant, and equipment: | ||
Accumulated depreciation | 355 | 329 |
PP&E owned by a VIE, net | 35 | 34 |
Accumulated amortization | $ 151 | $ 122 |
KBR shareholders’ equity: | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (shares) | 177,383,302 | 176,638,882 |
Common stock, shares outstanding (shares) | 140,900,032 | 140,166,589 |
Treasury stock (shares) | 36,483,270 | 36,472,293 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity $ in Millions | USD ($) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | $ 1,052 |
Beginning Balance at Dec. 31, 2015 | 1,052 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Acquisition of noncontrolling interest | 0 |
Share-based compensation | 18 |
Tax benefit increase related to share-based plans | 1 |
Common stock issued upon exercise of stock options | 0 |
Dividends declared to shareholders | (46) |
Repurchases of common stock | (4) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Issuance of convertible debt | 0 |
Investments by noncontrolling interests | 0 |
Distributions to noncontrolling interests | (9) |
Other noncontrolling interests activity | 0 |
Comprehensive income (loss) | (270) |
Ending Balance at Dec. 31, 2016 | 745 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | 745 |
Acquisition of noncontrolling interest | (8) |
Share-based compensation | 12 |
Tax benefit increase related to share-based plans | 0 |
Common stock issued upon exercise of stock options | 0 |
Dividends declared to shareholders | (45) |
Repurchases of common stock | (53) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Issuance of convertible debt | 0 |
Investments by noncontrolling interests | 1 |
Distributions to noncontrolling interests | (4) |
Other noncontrolling interests activity | 0 |
Comprehensive income (loss) | 570 |
Ending Balance at Dec. 31, 2017 | 1,221 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | 1,365 |
Cumulative effect of change in accounting policy, tax impact | 6 |
Beginning Balance at Dec. 31, 2017 | 1,221 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Acquisition of noncontrolling interest | 69 |
Share-based compensation | 10 |
Tax benefit increase related to share-based plans | 1 |
Common stock issued upon exercise of stock options | 2 |
Dividends declared to shareholders | (44) |
Repurchases of common stock | (3) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Issuance of convertible debt | 18 |
Investments by noncontrolling interests | 0 |
Distributions to noncontrolling interests | (3) |
Other noncontrolling interests activity | 2 |
Comprehensive income (loss) | 318 |
Ending Balance at Dec. 31, 2018 | 1,738 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Cumulative effect of change in accounting policy, net of tax of $6 | $ 144 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 310 | $ 442 | $ (51) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63 | 48 | 45 |
Equity in earnings of unconsolidated affiliates | (81) | (72) | (91) |
Deferred income tax (benefit) expense | 28 | (322) | 18 |
Loss (Gain) on disposition of assets | 2 | (5) | (7) |
Gain on consolidation of Aspire entities | (108) | 0 | 0 |
Asset impairment | 0 | 0 | 16 |
Other | 24 | 29 | 3 |
Changes in operating assets and liabilities, net of acquired businesses: | |||
Accounts receivable, net of allowance for doubtful accounts | (203) | 92 | 121 |
Contract assets | 25 | 40 | 8 |
Claims receivable | 0 | 400 | 0 |
Accounts payable | 112 | (193) | (6) |
Contract liabilities | (60) | (198) | 33 |
Accrued salaries, wages and benefits | 11 | 14 | (50) |
Reserve for loss on uncompleted contracts | (9) | (48) | (5) |
Payments from (advances to) unconsolidated affiliates, net | 12 | 11 | (1) |
Distributions of earnings from unconsolidated affiliates | 75 | 62 | 56 |
Income taxes payable | 43 | 0 | (52) |
Pension funding | (41) | (37) | (41) |
Retainage payable | 2 | (16) | (2) |
Subcontractor advances | (3) | 0 | 8 |
Net settlement of derivative contracts | (7) | 3 | (9) |
Other assets and liabilities | (30) | (57) | 68 |
Total cash flows provided by operating activities | 165 | 193 | 61 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (17) | (8) | (11) |
Investments in equity method joint ventures | (344) | 0 | (61) |
Proceeds from sale of assets or investments | 25 | 2 | 2 |
Acquisitions of businesses, net of cash acquired | (354) | (4) | (911) |
Adjustments to cash due to consolidation of Aspire entities | 197 | 0 | 0 |
Other | 2 | (2) | 0 |
Total cash flows used in investing activities | (491) | (12) | (981) |
Cash flows from investing activities: | |||
Payments to reacquire common stock | (3) | (53) | (4) |
Acquisition of remaining ownership interest in joint ventures | (56) | 0 | 0 |
Investments from noncontrolling interests | 0 | 1 | 0 |
Distributions to noncontrolling interests | (3) | (4) | (9) |
Payments of dividends to shareholders | (44) | (45) | (46) |
Proceeds from sale of warrants | 22 | 0 | 0 |
Purchase of note hedges | (62) | 0 | 0 |
Issuance of convertible notes | 350 | 0 | 0 |
Net proceeds from issuance of common stock | 2 | 0 | 0 |
Excess tax benefits from share-based compensation | 1 | 0 | 1 |
Borrowings on revolving credit agreement | 250 | 0 | 700 |
Borrowings on long term debt | 1,075 | 0 | 0 |
Payments on revolving credit agreement | (720) | (180) | (50) |
Payments on short-term and long-term borrowings | (100) | (9) | (9) |
Debt issuance costs | (57) | 0 | 0 |
Other | (1) | 0 | 1 |
Total cash flows provided (used) by financing activities | 654 | (290) | 584 |
Effect of exchange rate changes on cash | (28) | 12 | (11) |
Increase (decrease) in cash and equivalents | 300 | (97) | (347) |
Cash and equivalents at beginning of period | 439 | 536 | 883 |
Cash and equivalents at end of period | 739 | 439 | 536 |
Supplemental disclosure of cash flows information: | |||
Cash paid for interest | 52 | 21 | 12 |
Cash paid for income taxes (net of refunds) | 21 | 144 | 49 |
Noncash investing activities | |||
Acquisition of technology licensing rights | 16 | 0 | 0 |
Noncash financing activities | |||
Dividends declared | $ 11 | $ 11 | $ 12 |
Description of Company And Sign
Description of Company And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 a global provider of differentiated, professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. Our capabilities include research and development, feasibility and solutions development, specialized technical consulting, systems integration, engineering and design service, process technologies, program management, construction services, commissioning and startup services, highly specialized mission and logistics support solutions, and asset operations and maintenance services and other support services to a diverse customer base, including government and military organizations of the U.S., U.K. and Australia and a wide range of customers across the hydrocarbons value chain. Principles of Consolidation Our consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR and our wholly owned and majority-owned subsidiaries and 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 13 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, including recognition of estimated losses on uncompleted contracts • project revenues, award fees, costs and profits on government services 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 • valuation of assets and liabilities acquired in business combinations 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. Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 5 to our consolidated financial statements for our discussion on cash and equivalents. Revenue Recognition We adopted ASC Topic 606 Revenue from Contracts with Customers on January 1, 2018. Our financial results for reporting periods beginning January 1, 2018 are presented under the new accounting standard, while financial results for prior periods will continue to be reported in accordance with our historical accounting policy. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied which generally occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, which is more prevalent than not, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Services Contracts For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time generally using the cost-to-cost method (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress because it best depicts the transfer of value to the customer. Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Under the typical payment terms of our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., weekly, biweekly or monthly) or upon achievement of contractual milestones. Engineering and Construction Contracts We recognize revenue over time, as performance obligations are satisfied, for substantially all of our engineering and constructions contracts due to the continuous transfer of control to the customer. For most of our engineering and construction contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability and are therefore accounted for as single performance obligations. We recognize revenue using the cost-to-cost input method, based primarily on contract costs incurred to date compared to total estimated contract costs. This method is the most accurate measure of our contract performance because it directly measures the value of the goods and services transferred to the customer. Contract costs include all direct material, labor and subcontractor costs and indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer. Project mobilization costs are generally charged to the project as incurred when they are an integrated part of the performance obligation being transferred to the client. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. The payment terms of our engineering and construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation. Variable Consideration It is common for our contracts to contain variable consideration in the form of incentive fees, performance bonuses, award fees, liquidated damages or penalties. Other contract provisions also give rise to variable consideration such as claims and unpriced change orders that may either increase or decrease the transaction price. We estimate the amount of variable consideration at the most likely amount we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance, and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Historically, warranty claims have not resulted in material costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. As a significant change in one or more of these estimates could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors, and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over-time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the 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 contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify contract assets and liabilities as current or noncurrent to the extent the revenue is expected to be recognized in excess of one year from the balance sheet date. Practical Expedients and Exemptions Upon the adoption of ASC 606, we utilized certain practical expedients and exemptions as follows: • We applied the modified-retrospective method upon adoption of ASC Topic 606 which allowed the new accounting standard to be applied only to contracts that were not considered substantially complete as of January 1, 2018. • In cases where we have an unconditional right to consideration from a customer in an amount that corresponds directly with the value of our performance completed to date, we recognize revenue in the amount to which we have a right to invoice for services performed. • We do not adjust the contract price for the effects of a significant financing component if the company expects, at contract inception, that the period between when the company transfers a service to a customer and when the customer pays for that service will be one year or less. • We have availed ourselves of the SEC Exemption under ASU 2017-13 to defer the application of ASC 606 to most of our unconsolidated joint ventures for one year. Impact of ASC 606 Adoption We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable $ 510 $ 157 $ 667 Contract assets 383 (191 ) 192 Other current assets 93 5 98 Equity in and advances to unconsolidated affiliates 387 87 474 Deferred income taxes 300 (6 ) 294 Other assets 124 1 125 Liabilities Contract liabilities 368 9 377 Deferred income from unconsolidated affiliates 101 (101 ) — Other liabilities 171 1 172 Equity Retained Earnings 877 144 1,021 The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows: Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Statement of Operations Revenues $ 4,913 $ 4,904 $ 9 Cost of revenues (4,457 ) (4,456 ) 1 Equity in earnings of unconsolidated affiliates 81 77 4 Income before income taxes and noncontrolling interests 398 386 12 Provision for income taxes (88 ) (87 ) 1 Net income 310 300 10 EPS Basic $ 1.99 $ 1.92 $ 0.07 Diluted $ 1.99 $ 1.91 $ 0.08 As of December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Assets Accounts receivable $ 927 $ 594 $ 333 Contract assets 185 496 (311 ) Other current assets 108 103 5 Equity in and advances to unconsolidated affiliates 744 736 8 Deferred income taxes 222 229 (7 ) Other assets 147 143 4 Liabilities Contract liabilities 463 479 (16 ) Deferred income taxes 27 28 (1 ) Deferred income from unconsolidated affiliates — 95 (95 ) Other liabilities 202 202 — Equity Retained earnings 1,258 1,103 155 Accumulated other comprehensive loss (913 ) (902 ) (11 ) Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Cash flows from operating activities Net income $ 310 $ 300 $ 10 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (81 ) (77 ) (4 ) Deferred income tax (benefit) expense 28 27 1 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable, net of allowances for doubtful accounts (203 ) 130 (333 ) Contract assets 25 (286 ) 311 Contract liabilities (60 ) (77 ) 17 Other assets and liabilities (30 ) (28 ) (2 ) Total cash flows used in operating activities 165 165 — The impacts of adoption were primarily related to: (1) conforming our contracts recorded over time from previously acceptable methods to the cost-to-cost percentage of completion methodology, (2) combining certain deliverables that were previously considered separate deliverables into a single performance obligation, and (3) separating certain contracts that were previously considered one deliverable into multiple performance obligations. The impacts of adoption on our opening balance sheet were primarily related to reclassification of amounts between "Accounts receivable, net of allowance for doubtful accounts" and "Contract assets" based on whether an unconditional right to consideration has been established or not, and the deferral of costs incurred and payments received to fulfill a contract, which were previously recorded in income in the period incurred or received but under the new standard will generally be capitalized and amortized over the period of contract performance. In connection with the consolidation of certain previously unconsolidated VIEs associated with the Aspire Defence project in the first quarter of 2018, we elected to adopt ASC 606 for each of the remaining unconsolidated Aspire Defence contracting entities effective January 1, 2018. As a result of the adoption by the Aspire Defence contracting entities, we identified multiple performance obligations associated with the project deliverables that were previously accounted for as a single deliverable under its contract with the MoD. In addition to the above impacts of adoption on revenue and gross margin, the cumulative effect of the adoption by Aspire Defence contracting entities resulted in sufficient additional income that had been previously recorded as "Deferred income from unconsolidated affiliates" on our consolidated balance sheets in the amount of $101 million , which was reversed and included in the cumulative effect adjustment. Also, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence contracting entities. We have availed the SEC exemption under ASU 2017-13 to defer the application of ASC 606 to our remaining unconsolidated joint ventures until January 1, 2019. Gross Profit Gross profit represents revenues less the cost of revenues, which includes business segment overhead costs directly attributable to execution of contracts by the business segment. Contract Costs 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 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 accounting, human resources and various other corporate functions. Accounts Receivable Accounts receivable are recorded based on contracted prices when we obtain an unconditional right to payment under the terms of our contracts. We establish an allowance for doubtful accounts based on the assessment of our 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. In 2018, we entered into a factoring agreement to sell certain receivables to unrelated third-party financial institutions. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivable to the purchaser. Our factoring agreement does not allow for recourse in the event of uncollectibility, and we do not retain any controlling interest in the underlying accounts receivable once sold. We derecognized $14 million of accounts receivable as of December 31, 2018 under this factoring agreement. The fees associated with sale of receivables under this agreement were not material in 2018. 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 10 to our consolidated financial statements for our discussion on property, plant and equipment. Acquisitions We account for business combinations using the acquisition method of accounting in accordance with ASC 805 - Business Combinations, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We conduct external and internal valuations of certain acquired assets and liabilities for inclusion in our balance sheet as of the date of acquisition. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. Goodwill and Intangible Assets 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, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of goodwill impairment. The second step compares the implied fair value of the reporting unit goodwill to the carrying value of the reporting unit 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. We completed our annual goodwill impairment test in the fourth quarter of 2018 and determined that none of the goodwill was impaired. See Note 11 to our consolidated financial statements for reported goodwill in each of our segments. We had intangible assets with net carrying values of $516 million and $239 million as of December 31, 2018 and 2017 , respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. As of December 31, 2018 , none of our intangible assets with indefinite lives were impaired. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years . See Note 11 to our consolidated financial statements for further discussion of our 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 or 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 13 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 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 PFIs, 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, |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, a relatively few number of projects, government programs 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. We are organized into three core business segments and two non-core business segments. Our three core business segments focus on our core strengths in technical services relating to government services, technology and hydrocarbons services. Our two non-core business segments are our Non-strategic Business segment, which includes businesses we intend to exit upon completion of existing contracts because they are no longer a part of our future strategic focus, and "Other", which includes our corporate expenses and general and administrative expenses not allocated to the other business segments. Our business segments are described below: Government Services. Our GS business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies in the U.S., U.K. and Australia. As program management integrator, KBR covers the full spectrum of defense, space, aviation and other government programs and missions from research and development; through systems engineering, test and evaluation, systems integration and program management; to mission planning, operations support, maintenance and field logistics. Acquisitions, as described in Note 4 to our consolidated financial statements, have been combined with our existing U.S. operations within this business segment and operate under the single "KBRwyle" brand. Technology. Our Technology business segment combines KBR's proprietary technologies, equipment and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic and specialty chemicals as well as gasification, syngas, ammonia, nitric acid and fertilizers. From early planning through scope definition, advanced technologies and project lifecycle support, KBR's Technology segment works closely with customers to provide the optimal approach to maximize their return on investment. Hydrocarbons Services. Our HS business segment provides comprehensive project planning and program delivery capability globally. Our key capabilities leverage our operational and technical excellence as a global provider of EPC for onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers; offshore oil and gas (shallow-water, deep-water and subsea); floating solutions (FPUs, FPSO, FLNG & FSRU); maintenance services (via the “Brown & Root Industrial Services” brand); and consulting services provided under our three specialist consulting brands, Granherne, Energo and GVA. Non-strategic Business. Our Non-strategic Business segment represents the operations or activities which we intend to exit upon completion of existing contracts. All Non-strategic Business segment projects are substantially complete. We continue to finalize project close-out activities and negotiate the settlement of claims and various other matters associated with these projects. Other. Our Other business segment includes corporate expenses and general and administrative expenses not allocated to the business segments above. The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, general and administrative expenses, acquisition and integration related costs, gain on disposition of assets, gain on consolidation of Aspire entities, 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 2018 2017 2016 Revenues: Government Services $ 3,457 $ 2,193 $ 1,359 Technology 297 269 309 Hydrocarbons Services 1,157 1,671 2,390 Other — — — Subtotal 4,911 4,133 4,058 Non-strategic Business 2 38 210 Total $ 4,913 $ 4,171 $ 4,268 Gross profit (loss): Government Services $ 280 $ 155 $ 137 Technology 85 76 80 Hydrocarbons Services 99 111 — Other — — — Subtotal 464 342 217 Non-strategic Business (8 ) — (105 ) Total $ 456 $ 342 $ 112 Equity in earnings of unconsolidated affiliates: Government Services $ 32 $ 43 $ 39 Technology — — — Hydrocarbons Services 49 29 52 Other — — — Subtotal 81 72 91 Non-strategic Business — — — Total $ 81 $ 72 $ 91 General and administrative expenses: Government Services $ (39 ) (24 ) (13 ) Technology (3 ) (3 ) (5 ) Hydrocarbons Services (27 ) (26 ) (27 ) Other (97 ) (94 ) (88 ) Subtotal (166 ) (147 ) (133 ) Non-strategic Business — — — Total $ (166 ) (147 ) (133 ) Acquisition and integration related costs: Government Services $ (7 ) — (10 ) Technology — — — Hydrocarbons Services — — — Other — — — Subtotal (7 ) — (10 ) Non-strategic Business — — — Total $ (7 ) — (10 ) Asset impairment and restructuring charges (Note 12): Government Services $ — $ — $ (1 ) Technology — — — Hydrocarbons Services — (6 ) (31 ) Other — — (7 ) Subtotal — (6 ) (39 ) Non-strategic Business — — — Total $ — $ (6 ) $ (39 ) (Loss) Gain on disposition of assets: Government Services 4 — — Technology — — — Hydrocarbons Services (2 ) 5 2 Other (4 ) — 1 Subtotal (2 ) 5 3 Non-strategic Business — — 4 Total (2 ) 5 7 Gain (Loss) on consolidation of Aspire entities: Government Services 113 — — Technology — — — Hydrocarbons Services — — — Other (5 ) — — Subtotal 108 — — Non-strategic Business — — — Total 108 — — Segment operating income (loss): Government Services $ 382 $ 173 $ 152 Technology 82 73 74 Hydrocarbons Services 120 113 (4 ) Other (106 ) (93 ) (93 ) Subtotal 478 266 129 Non-strategic Business (8 ) — (101 ) Total $ 470 $ 266 $ 28 Years ended December 31, Dollars in millions 2018 2017 2016 Capital expenditures: Government Services $ 11 $ 4 $ 2 Technology — — — Hydrocarbons Services 1 2 5 Other 5 2 4 Subtotal 17 8 11 Non-strategic Business — — — Total $ 17 $ 8 $ 11 Depreciation and amortization: Government Services $ 42 $ 27 $ 16 Technology 3 3 3 Hydrocarbons Services 10 10 16 Other 8 8 10 Subtotal 63 48 45 Non-strategic Business — — — Total $ 63 $ 48 $ 45 Prior Period Adjustments During the second quarter of 2017, we corrected cumulative errors resulting in an increase to "Equity in earnings of unconsolidated affiliates" and "Net income attributable to KBR" within our consolidated statements of operations of $9 million and $11 million , respectively. The errors in equity in earnings of unconsolidated affiliates primarily related to our accounting for derivatives in one of our unconsolidated VIEs in our GS segment from the first quarter of 2016 through the first quarter of 2017. During the fourth quarter of 2016, we corrected a cumulative error related to contract cost estimates on an LNG project in Australia within our HS business segment. The cumulative error occurred throughout the period beginning in 2009 and through the third quarter of 2016 and resulted in a $13 million reduction to revenues and gross profit on our consolidated statements of operations and a decrease to "Contract assets" on our consolidated balance sheets during the fourth quarter of 2016. We evaluated these cumulative errors 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 errors described above 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 errors did not have a material impact to our consolidated financial statements for the fiscal year ended December 31, 2018 . Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. With a portfolio of more than one thousand contracts, we generally realize both lower and higher than expected margins on projects in any given period. 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. Changes in project-related estimates by business segment, which significantly impacted operating income during the periods presented, are as follows: Government Services During the year ended December 31, 2016 , revenues, gross profit, and segment operating income included a favorable change in estimate of $33 million as a result of reaching a settlement with the U.S. government for reimbursement of previously expensed legal fees associated with the sodium dichromate litigation. Additionally in 2016, we recognized a $15 million favorable change to gross profit related to the approval of a change order on a road construction project in the Middle East. The change order resulted in an extension of the contract terms and increased the total contract value. Hydrocarbons Services We recognized changes to equity earnings as a result of various changes to estimates on the Ichthys LNG Project during the years ended December 31, 2018 and 2017 . See Note 8 for a discussion of the matters impacting this project. We also recognized a favorable change in estimated revenues and net income associated with variable consideration recognized as a result of successful completion and performance testing of a major Hydrocarbons Services project during the year ended December 31, 2018. During the year ended December 31, 2017 , the PEMEX and PEP arbitration was settled (see Note 18 to our consolidated financial statements) which resulted in additional revenues and gross profit of $35 million during the year ended December 31, 2017 . We recognized unfavorable changes in estimates of losses of $114 million in 2016 on an EPC ammonia project in the U.S. primarily due to unforeseen costs related to the mechanical failure of a vendor supplied compressor and pumps that occurred during commissioning as well as various mechanical issues encountered during start-up. These issues delayed completion of the project to October 2016, which resulted in increased costs and the recognition of contractual liquidated damages due to the client. The project completed performance testing and in October 2016, care, custody and control of the plant were transferred to the customer. There were no reserves for estimated losses on uncompleted projects related to this project as of December 31, 2018 . As of December 31, 2017 , there were $1 million and of reserves for estimated losses on uncompleted contracts, which is a component of "Other current liabilities" on our consolidated financial statements. Our estimates of revenues and costs at completion have been, and may continue to be, impacted by remaining punch list items and warranty obligations. Our estimated loss at completion as of December 31, 2018 represents our best estimate based on current information. Actual results could differ from the estimates we have used to account for this project as of December 31, 2018 . During the year ended December 31, 2016 , we recognized unfavorable changes in estimated losses of $112 million on a downstream EPC project in the U.S. resulting from significant weather delays and forecast construction productivity rates less than previously expected. These issues have delayed completion until 2019, which resulted in additional estimated costs to complete, which led to the loss described above. The EPC project is 99% complete as December 31, 2018 . Included in the reserve for estimated losses on uncompleted contracts, which is a component of "Other current liabilities" on our consolidated financial statements, is $1 million and $9 million as of December 31, 2018 and 2017 , respectively, related to this project. Our estimated loss at completion represents our best estimate based on current information. Actual results could differ from the estimates we have used to account for this project as of December 31, 2018 . During the year ended December 31, 2016 , revenues, gross profit, and segment operating income include $64 million resulting from favorable changes in estimates to complete due to settlements on close out of a LNG project in Africa. Non-strategic Business We recognized unfavorable changes in estimates of losses on a power project of $117 million in 2016 primarily due to increases in forecasted costs to complete the project driven by subcontractor cost increases from poor subcontractor productivity, resulting schedule delays and changes in the project execution strategy. The project has completed performance testing and in April 2017, care, custody and control of the project were transferred to the customer. Included in the reserve for estimated losses on uncompleted contracts is $1 million and $2 million as of December 31, 2018 and 2017 , respectively, related to this project. 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 2018 2017 Total assets: Government Services $ 2,804 $ 1,600 Technology 204 210 Hydrocarbons Services 1,317 1,065 Other 746 792 Subtotal 5,071 3,667 Non-strategic Business 1 7 Total $ 5,072 $ 3,674 Goodwill (Note 11): Government Services $ 977 $ 679 Technology 51 51 Hydrocarbons Services 237 238 Other — — Subtotal 1,265 968 Non-strategic Business — — Total $ 1,265 $ 968 Equity in and advances to related companies (Note 13): Government Services $ 114 $ 41 Technology — — Hydrocarbons Services 630 346 Other — — Subtotal 744 387 Non-strategic Business — — Total $ 744 $ 387 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 2018 2017 2016 Revenues: United States $ 2,260 $ 1,986 $ 2,111 Middle East 884 836 778 Europe 989 480 498 Australia 329 334 376 Canada 21 224 145 Africa 133 121 182 Asia 190 125 143 Other countries 107 65 35 Total $ 4,913 $ 4,171 $ 4,268 December 31, Dollars in millions 2018 2017 Property, plant & equipment, net: United States $ 51 $ 60 United Kingdom 50 52 Other 20 18 Total $ 121 $ 130 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue from customers by type of service, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below. Revenue by Service/Product line was as follows: Year Ended December 31, Dollars in millions 2018 By Service / Product Types Government Services Space and Mission Solutions $ 651 Engineering 1,141 Logistics 1,665 Total Government Services 3,457 Hydrocarbons Technology 297 Hydrocarbons Services Onshore 931 Offshore 90 Industrial Services 68 Consulting 66 Other 2 Total Hydrocarbons Services 1,157 Total Hydrocarbons 1,454 Non-strategic business 2 Total net revenue $ 4,913 Government Services revenue earned from key U.S. Government customers including U.S. DoD agencies and NASA was $2.6 billion for the year ended December 31, 2018 . Government Services revenue earned from non-U.S. Government customers including the U.K. MoD, the Australian Defence Force and others was $847 million for the year ended December 31, 2018 . Revenue by geographic destination was as follows: Year Ended December 31, 2018 Hydrocarbons Total by Countries/Regions Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Many of our contracts contain both fixed price and cost reimbursable components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Year Ended December 31, 2018 Hydrocarbons Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total Fixed Price $ 1,034 $ 282 $ 179 $ 2 $ 1,497 Cost Reimbursable 2,423 15 978 — 3,416 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 We recognized revenue of $69 million from performance obligations satisfied in previous periods for the year ended December 31, 2018 . On December 31, 2018 , we had $9.8 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 35% of our remaining performance obligations as revenue within one year , 28% in years two through five , and 37% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations related to Aspire Defence and Fasttrax projects, which have contract terms extending through 2041 and 2023, respectively. The balance of remaining performance obligations does not include variable consideration that was determined to be constrained as of December 31, 2018 The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and contract liabilities on the consolidated balance sheets. Our contract assets by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 123 $ 274 $ (151 ) (55 )% Technology 19 39 (20 ) (51 )% Hydrocarbons Services 43 70 (27 ) (39 )% Subtotal 185 383 (198 ) (52 )% Non-strategic Business — — — N/A Total $ 185 $ 383 $ (198 ) (52 )% The decrease in contract assets was primarily caused by the initial adjustment due to the adoption of ASC 606, offset by normal business operations and the acquisition of $21 million of contract assets from the purchase of SGT as described in Note 4 to our consolidated financial statements. Our contract liabilities balances by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 261 $ 85 $ 176 207 % Technology 98 61 37 61 % Hydrocarbons Services 100 214 (114 ) (53 )% Subtotal 459 360 99 28 % Non-strategic Business 4 8 (4 ) (50 )% Total $ 463 $ 368 $ 95 26 % The increase in contract liabilities was primarily related to the acquisition of $161 million of contract liabilities associated with the Aspire Defence project joint ventures, partially offset by normal business operations and the recognition of the incentive fee associated with an Australian LNG project. We recognized revenue of $261 million for the year ended December 31, 2018 that was previously included in the contract liability balance at December 31, 2017 Our claims and accounts receivable balance not expected to be collected within the next 12 months was $98 million and $101 million as of December 31, 2018 and 2017 , respectively. Claims and accounts receivable primarily reflects claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government cost reimbursable contracts within our GS business segment. These claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order. Included in the amount is $73 million and $79 million as of December 31, 2018 and 2017 , respectively, related to Form 1s issued by the U.S. government questioning or objecting to costs billed to them. See Note 17 of our consolidated financial statements for additional information. The amount also includes $25 million and $22 million as of December 31, 2018 and 2017 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Stinger Ghaffarian Technologies Acquisition On April 25, 2018, we acquired 100% of the outstanding stock of Stinger Ghaffarian Technologies ("SGT"). SGT is a leading provider of high-value engineering, mission operations, scientific and IT software solutions in the government services market. We accounted for this transaction using the acquisition method under ASC 805, Business Combinations. The acquisition is reported within our GS business segment. Aggregate base consideration for the acquisition was $355 million , plus $10 million of working capital and other purchase price adjustments set forth in the purchase agreement. We recognized goodwill of $257 million arising from the acquisition, which primarily relates to future growth opportunities based on an expanded service offering and other expected synergies from the combined operations. Approximately $237 million of the goodwill is deductible for tax purposes. The intangible assets recognized were comprised of customer relationships and backlog. These intangibles will be amortized over a weighted-average period of 19 years . We recognized an adjustment to reflect the final working capital settlement during the third quarter of 2018, which increased other current assets and decreased the fair value of consideration transferred by $3 million . We funded the acquisition with borrowings under our new Senior Credit Facility that was entered into concurrently with the acquisition. See Note 15 to our consolidated financial statements for information related to our new Senior Credit Facility. We recognized direct, incremental costs related to this acquisition of $4 million during the year ended December 31, 2018 , which are included in "Acquisition and integration related costs" on the consolidated statements of operations. The following table summarizes the consideration paid for this acquisition and the fair value of the assets acquired and liabilities assumed as of the acquisition date. Dollars in millions SGT Fair value of total consideration transferred $ 365 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 11 Accounts receivable 52 Contract assets 21 Other current assets 2 Total current assets 86 Property, plant and equipment, net 2 Equity in and advances to unconsolidated affiliates 2 Intangible assets 74 Deferred income taxes 6 Other assets 8 Total assets 178 Accounts payable 27 Contract liabilities 6 Accrued salaries, wages and benefits 28 Other current liabilities 5 Total current liabilities 66 Employee compensation and benefits 2 Other liabilities 2 Total liabilities 70 Goodwill $ 257 The acquired SGT business contributed $342 million of revenues and $31 million of gross profit within our GS business segment during the year ended December 31, 2018 . Aspire Defence Subcontracting Joint Ventures On January 15, 2018, Carillion, our U.K. partner in the joint ventures that provide the construction and related support services to Aspire Defence Limited, entered into compulsory liquidation. Carillion no longer performs any of the services for the project, as we have stepped in to deliver both construction and support services without disruption. In accordance with the commercial arrangements of the project company and its lenders, Carillion was excluded from future business and benefit from its interest in the project and we have assumed operational management and control of the subcontracting joint ventures. We evaluated our rights and obligations under the joint venture agreements and other commercial arrangements of the project company and its lenders. We concluded Carillion's liquidation was a reconsideration event for KBR to reevaluate the primary beneficiary of the subcontracting joint ventures in which we were partners. We concluded KBR is the primary beneficiary as it has the power to direct activities having the most significant impact on the economic performance of the subcontracting joint ventures. Consequently, KBR began consolidating these entities in its financial statements effective January 15, 2018. Prior to obtaining control of these entities, we accounted for our 50% investment in each of the subcontracting joint ventures under the equity method of accounting. The balance of our net equity investments in these entities was approximately $7 million as of January 15, 2018. As a result of obtaining control of the subcontracting joint ventures, we accounted for these transactions under the acquisition method of accounting for business combinations in accordance with ASC 805. Consequently, we remeasured our equity interests in each of the subcontracting joint ventures to fair value, which resulted in a gain of approximately $108 million included in "Gain on consolidation of Aspire entities" on our consolidated statements of operations. The fair value of each of the subcontracting joint ventures was determined using a discounted cash flow model with future cash flows based on internal forecasts of revenue and expenses over the remaining life of the subcontract agreements. To arrive at our future cash flows, we used 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. The estimated cash flows were discounted using a weighted-average cost of capital that reflected current market conditions and the risk profile for each of the subcontracting joint ventures. We recognized goodwill of approximately $42 million , which was primarily related to the deferred tax liabilities associated with the contract-related intangible assets acquired in the transaction. None of the goodwill is deductible for tax purposes. The contract-related intangible assets have estimated useful lives ranging from 4 to 23 years. Subsequent to the first quarter of 2018, we made a $10 million reduction to the fair value and immaterial reclassifications to the previously reported assets acquired and liabilities assumed upon obtaining control of the subcontracting entities. The following table summarizes the final adjusted fair value of the assets acquired and liabilities assumed as of the date we obtained control of the subcontracting joint ventures. Dollars in millions Aspire Fair value of Aspire Defence subcontracting entities $ 230 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 197 Accounts receivable 14 Other current assets 12 Total current assets 223 Property, plant and equipment, net 9 Intangible assets 234 Total assets 466 Accounts payable 53 Contract liabilities 161 Accrued salaries, wages and benefits 1 Other current liabilities 21 Total current liabilities 236 Deferred income taxes 42 Total liabilities 278 Goodwill $ 42 Noncontrolling interests $ 115 On April 18, 2018, we completed the acquisition of Carillion's interests in the subcontracting entities for $50 million pursuant to a share and business purchase agreement and approval by Aspire Defence Limited, the Aspire Defence Limited project lenders and the MoD. We accounted for the change in KBR's interest as an equity transaction. The difference between the noncontrolling interests of $119 million in the subcontracting entities at the date of acquisition and cash consideration paid to Carillion was recognized as a net increase to PIC of $69 million . We incurred $1 million of acquisition-related costs for the year ended December 31, 2018, which were recorded in "Acquisition and integration related costs" on our consolidated statements of operations. The results of operations of the subcontracting entities have been included in our consolidated statements of operations for periods subsequent to assuming control on January 15, 2018. The acquired subcontracting joint ventures contributed $533 million of revenues and $61 million of gross profit within our GS business segment during the year ended December 31, 2018. The following supplemental pro forma consolidated results of operations assume that SGT and the Aspire Defence subcontracting joint ventures had been acquired as of January 1, 2017. The supplemental pro forma information was prepared based on the historical financial information of SGT and the Aspire Defence subcontracting joint ventures and has been adjusted to give effect to pro forma adjustments that are both directly attributable to the transaction and factually supportable. Pro forma adjustments were primarily related to the amortization of intangibles, interest on borrowings related to the acquisitions, and the reclassification of the gain on consolidation of the Aspire entities to January 1, 2017. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisitions occurred on January 1, 2017, nor is it indication of future results of operations. Years ended December 31, Dollars in millions 2018 2017 (Unaudited) Revenue $ 5,060 $ 5,057 Net income attributable to KBR 367 344 Diluted earnings per share $ 2.59 $ 2.42 Sigma Bravo Pty Ltd Acquisition On November 20, 2017, we acquired 100% of the outstanding common shares of Sigma Bravo Pty Ltd ("Sigma Bravo"). Sigma Bravo provides software development, training, information management and technical support services as well as operational support to the Australian Defence Force. The aggregate purchase price of the acquisition was $9 million . We recognized goodwill of $1 million arising from the acquisition, which relates primarily to customer relationships and future growth opportunities to expand services provided to the Australian Defence Force. None of the goodwill is deductible for income tax purposes. The final settlement of the working capital adjustment occurred in the second quarter and did not have a material effect on our consolidated financial statements. This acquisition is reported within our Government Services business segment. Honeywell Technology Solutions Inc. Acquisition On September 16, 2016, we acquired 100% of the outstanding common stock of Honeywell Technology Solutions Inc. ("HTSI") from Honeywell International Inc. HTSI provides an array of mission-critical services and customized solutions throughout the world, primarily to U.S. government agencies. This acquisition provides KBR with complete life-cycle service capabilities, including high-end technical engineering and mission support, cyber security and logistics and equipment maintenance within our GS business segment. The aggregate consideration paid for the acquisition was $300 million , less $20 million of initial working capital adjustments for net cash consideration of $280 million , all of which was funded by an advance on our previous Credit Agreement. We recognized goodwill of $134 million arising from the acquisition, which relates primarily to growth opportunities based on a broader service offering of the combined operations, including HTSI's specialized technical services and KBR's logistical expertise as well as expected cost synergies. Approximately $117 million of the goodwill is deductible for income tax purposes. During the year ended December 31, 2017, we recorded an increase to goodwill of approximately $3 million primarily associated with final working capital settlement and the finalization of various immaterial contingencies. This acquisition is reported within our GS business segment. Wyle Inc. ("Wyle") Acquisition On July 1, 2016, we acquired 100% of the equity interests of Wyle from its shareholders, including Court Square Capital Partners and certain officers of Wyle, pursuant to an agreement and plan of merger. Wyle delivers an array of custom solutions for customers in the U.S. DoD, NASA and other federal agencies. Wyle's expertise includes systems and sustainment engineering, program and acquisition management, life science research, space medical operations, information technology and the testing and evaluation of aircraft, advanced systems and networks. The acquisition combines KBR's strengths in international, large-scale government logistics and support operations with Wyle's specialized technical services, largely focused in the contiguous U.S. The aggregate consideration paid for the acquisition was $600 million , including repayment of outstanding balances under Wyle's credit facility and other transaction expenses, plus $23 million of purchase price adjustments, which resulted in net cash consideration of $623 million . We funded the total cash paid with a $400 million advance on our previous Credit Agreement and available cash on-hand. We recognized goodwill of $484 million arising from the acquisition, which relates primarily to growth opportunities based on a broader service offering of the combined operations, including Wyle's differentiated technical capabilities and KBR's international program management and logistics expertise. Additionally, goodwill relates to the existence of Wyle's skilled employee base and other expected synergies of the combined operations. Approximately $107 million of the goodwill is deductible for income tax purposes. During the year ended December 31, 2017, we recorded an increase to goodwill of approximately $1 million primarily associated with final working capital settlement and the finalization of various immaterial contingencies. This acquisition is reported within our GS business segment. The following supplemental pro forma consolidated results of operations assume that HTSI and Wyle had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of HTSI and Wyle and has been adjusted to give effect to pro forma adjustments that are directly attributable to the transaction. The pro forma amounts reflect certain adjustments to amortization expense and interest expense associated with the portion of the purchase price funded by a $700 million advance on our previous Credit Agreement, and also reflect adjustments to the 2016 results to exclude acquisition related costs as they are nonrecurring and are directly attributable to the transaction. The supplemental pro forma financial information presented below does not include any anticipated cost savings or expected realization of other synergies associated with the transaction. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisition occurred on January 1, 2015, nor is it indicative of future results of operations. Year ended December 31, Dollars in millions, except per share data 2016 (Unaudited) Revenue $ 5,129 Net income (loss) attributable to KBR (23 ) Diluted earnings per share $ (0.16 ) Chematur Subsidiaries Acquisition On January 11, 2016, we acquired 100% of the outstanding common stock of three subsidiaries of Connell Chemical Industry LLC (through its subsidiary, Chematur Technologies AB): Plinke GmbH ("Plinke"), Weatherly Inc., ("Weatherly") and Chematur Ecoplanning Oy ("Ecoplanning"). Plinke specializes in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities. Weatherly provides nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market. Ecoplanning offers proprietary evaporation and crystallization technologies and specialist equipment for weak acid and base solutions. As a result of this acquisition, we can expand our technology solutions into new markets while leveraging KBR's global sales and EPC capabilities. The aggregate consideration paid for the acquisition was $25 million , less $2 million of acquired cash and other adjustments resulting in net cash consideration of $23 million . The consideration paid included an escrow of $5 million that secures the indemnification obligations of the seller and other contingent obligations related to the operation of the business. The escrow was settled in 2017 with $4 million released to KBR and $1 million to the seller. The release to KBR was in excess of the assumed recovery, which resulted in $2 million of gross profit for the Technology business segment during the year ended December 31, 2017 . We recognized goodwill of $24 million arising from the acquisition, which relates primarily to future growth opportunities to extend the acquired technologies outside North America to new customers and in revamping units of the existing customer base globally. None of the goodwill is deductible for income tax purposes. This acquisition is reported within our Technology business segment. Technology License Agreement In November 2018, we entered into an agreement to acquire perpetual rights associated with the SCORE ethylene cracking technology developed between KBR and an unrelated third party license partner. Under the terms of the agreement, KBR enhanced its rights to use the SCORE process technology and now has the exclusive rights over the SCORE trademark. In conjunction with this agreement, we agreed to pay our license partner $25 million in ten equal annual installments beginning in November 2019. We determined the fair value of the technology was approximately $16 million using a discounted cash flow approach which will be amortized on a straight-line basis over the estimated useful life of the license of 25 years. The deferred consideration has been recorded at its net present value of $16 million and included in "Other current liabilities" and "Other liabilities" on our consolidated balance sheet as of December 31, 2018. Disposition of Interest in EPIC Joint Venture On October 11, 2018 we sold our interest in our EPIC joint venture for approximately $24 million . As a result of the sale, we recognized a loss of approximately $2 million |
Cash and Equivalents
Cash and Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and 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, 2018 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 123 $ 104 $ 227 Short-term investments (c) 87 107 194 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 315 3 318 Total $ 525 $ 214 $ 739 December 31, 2017 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 112 $ 124 $ 236 Short-term investments (c) 82 60 142 Cash and equivalents held in consolidated joint ventures 59 2 61 Total $ 253 $ 186 $ 439 (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) |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of our accounts receivable, net of allowance for doubtful accounts are as follows: December 31, 2018 Dollars in millions Unbilled Trade & Other Total Government Services $ 266 $ 334 $ 600 Technology 11 62 73 Hydrocarbons Services 69 185 254 Subtotal 346 581 927 Non-strategic Business — — — Total $ 346 $ 581 $ 927 As a result of the adoption of ASC 606 on January 1, 2018, unbilled accounts receivable is classified in "Accounts receivable" in our consolidated balance sheets as it represents the amounts that have been recorded in revenue based on contracted prices for which we have obtained an unconditional right to payment under the terms of our contracts. Retainage is now recorded in "Contract Assets" in our consolidated balance sheets when the right to payment of the retainage is conditional under the terms of our contracts. Prior to the adoption of ASC 606, unbilled accounts receivables were classified as "Costs and estimated earnings in excess of billings on uncompleted contracts" and retainage was classified within "Accounts receivable". December 31, 2017 Dollars in millions Retainage Trade & Other Total Government Services $ 6 $ 189 $ 195 Technology — 72 72 Hydrocarbons Services 53 186 239 Subtotal 59 447 506 Non-strategic Business 4 — 4 Total $ 63 $ 447 $ 510 |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | Revenue We disaggregate our revenue from customers by type of service, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below. Revenue by Service/Product line was as follows: Year Ended December 31, Dollars in millions 2018 By Service / Product Types Government Services Space and Mission Solutions $ 651 Engineering 1,141 Logistics 1,665 Total Government Services 3,457 Hydrocarbons Technology 297 Hydrocarbons Services Onshore 931 Offshore 90 Industrial Services 68 Consulting 66 Other 2 Total Hydrocarbons Services 1,157 Total Hydrocarbons 1,454 Non-strategic business 2 Total net revenue $ 4,913 Government Services revenue earned from key U.S. Government customers including U.S. DoD agencies and NASA was $2.6 billion for the year ended December 31, 2018 . Government Services revenue earned from non-U.S. Government customers including the U.K. MoD, the Australian Defence Force and others was $847 million for the year ended December 31, 2018 . Revenue by geographic destination was as follows: Year Ended December 31, 2018 Hydrocarbons Total by Countries/Regions Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Many of our contracts contain both fixed price and cost reimbursable components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Year Ended December 31, 2018 Hydrocarbons Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total Fixed Price $ 1,034 $ 282 $ 179 $ 2 $ 1,497 Cost Reimbursable 2,423 15 978 — 3,416 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 We recognized revenue of $69 million from performance obligations satisfied in previous periods for the year ended December 31, 2018 . On December 31, 2018 , we had $9.8 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 35% of our remaining performance obligations as revenue within one year , 28% in years two through five , and 37% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations related to Aspire Defence and Fasttrax projects, which have contract terms extending through 2041 and 2023, respectively. The balance of remaining performance obligations does not include variable consideration that was determined to be constrained as of December 31, 2018 The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and contract liabilities on the consolidated balance sheets. Our contract assets by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 123 $ 274 $ (151 ) (55 )% Technology 19 39 (20 ) (51 )% Hydrocarbons Services 43 70 (27 ) (39 )% Subtotal 185 383 (198 ) (52 )% Non-strategic Business — — — N/A Total $ 185 $ 383 $ (198 ) (52 )% The decrease in contract assets was primarily caused by the initial adjustment due to the adoption of ASC 606, offset by normal business operations and the acquisition of $21 million of contract assets from the purchase of SGT as described in Note 4 to our consolidated financial statements. Our contract liabilities balances by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 261 $ 85 $ 176 207 % Technology 98 61 37 61 % Hydrocarbons Services 100 214 (114 ) (53 )% Subtotal 459 360 99 28 % Non-strategic Business 4 8 (4 ) (50 )% Total $ 463 $ 368 $ 95 26 % The increase in contract liabilities was primarily related to the acquisition of $161 million of contract liabilities associated with the Aspire Defence project joint ventures, partially offset by normal business operations and the recognition of the incentive fee associated with an Australian LNG project. We recognized revenue of $261 million for the year ended December 31, 2018 that was previously included in the contract liability balance at December 31, 2017 Our claims and accounts receivable balance not expected to be collected within the next 12 months was $98 million and $101 million as of December 31, 2018 and 2017 , respectively. Claims and accounts receivable primarily reflects claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government cost reimbursable contracts within our GS business segment. These claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order. Included in the amount is $73 million and $79 million as of December 31, 2018 and 2017 , respectively, related to Form 1s issued by the U.S. government questioning or objecting to costs billed to them. See Note 17 of our consolidated financial statements for additional information. The amount also includes $25 million and $22 million as of December 31, 2018 and 2017 |
Unapproved Change Orders and C
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | 12 Months Ended |
Dec. 31, 2018 | |
Contractors [Abstract] | |
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2018 2017 Amounts included in project estimates-at-completion at January 1, $ 924 $ 294 Increase, net of foreign currency effect 53 647 Approved change orders, net of foreign currency effect (4 ) (17 ) Amounts included in project estimates-at-completion at December 31, $ 973 $ 924 Amounts recognized over time based on progress at December 31, $ 945 $ 826 As of December 31, 2018 and 2017 , the predominant component of change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors above relates to our proportionate share of unapproved change orders and claims associated with the Ichthys LNG Project discussed below. KBR intends to vigorously pursue approval and collection of amounts still due under all unapproved change orders and claims against the clients and recoveries from subcontractors. Further, there are additional claims that KBR believes it is entitled to recover from its client and from subcontractors which have been excluded from estimated revenues and profits at completion as appropriate under U.S. GAAP. These commercial matters may not be resolved in the near term. Our current estimates for the above unapproved change orders, client claims and estimated recoveries of claims against suppliers and subcontractors may prove inaccurate and could have a material adverse effect on our results of operations, financial position and cash flows. Ichthys LNG Project Project Status We have a 30% ownership interest in the JKC joint venture ("JKC"), which has contracted to perform the engineering, procurement, supply, construction and commissioning of onshore LNG facilities for a client in Darwin, Australia (the "Ichthys LNG Project"). The contract between JKC and its client is a hybrid contract containing both cost-reimbursable and fixed-price (including unit-rate) scopes. The construction and commissioning of the Ichthys LNG Project is substantially complete and the plant is producing LNG. All of the components of the plant, except for the combined cycle power plant ("Power Plant"), have been completed and handed over to the client. The Power Plant includes five gas turbine generators which are complete and handed over to the client, and three steam turbine generators (the "STGs") which are currently forecasted to be completed in 2019. We expect commissioning and hand-over of the STGs to be completed by mid-2019. Unapproved Change Orders and Claims Against Client Under the cost-reimbursable scope of the contract with the client, JKC has entered into commercial contracts with multiple suppliers and subcontractors to execute various scopes of work on the project. Certain of these suppliers and subcontractors have made contract claims against JKC for recovery of costs and extensions of time in order to progress the works under the scope of their respective contracts due to a variety of issues related to alleged changes to the scope of work, delays and lower than planned subcontractor productivity. In addition, JKC has incurred costs related to scope increases and other factors, and has made claims to its client for matters for which JKC believes it is entitled to reimbursement under the contract. JKC believes any amounts paid or payable to the suppliers and subcontractors in settlement of their contract claims related to the cost-reimbursable scope are an adjustment to the contract price, and accordingly JKC has made claims for contract price adjustments under the cost-reimbursable scope of the contract between JKC and its client. However, the client disputed some of these contract price adjustments and subsequently withheld certain payments. In order to facilitate the continuation of work under the contract while we worked to resolve this dispute, the client agreed to a contractual mechanism (“Funding Deed”) in 2016 providing funding in the form of an interim contract price adjustment to JKC and consented to settlement of subcontractor claims as of that date related to the cost-reimbursable scope. While the client reserved its contractual rights under this funding mechanism, settlement funds (or interim contract price adjustment) have been paid by the client. JKC in turn settled these subcontractor claims which have been funded through the Funding Deed by the client. If JKC's claims against its client which were funded under the Funding Deed remain unresolved by December 31, 2020, JKC will be required to refund sums funded by the client under the terms of the Funding Deed. We, along with our joint venture partners, are jointly and severally liable to the client for any amounts required to be refunded. Our proportionate share of the total amount of the contract price adjustments under the Funding Deed included in the unapproved change orders and claims related to our unconsolidated affiliates discussed above is $159 million and $177 million as of December 31, 2018 and 2017 , respectively. The difference in these values is due to exchange rate fluctuations. In September and October 2017, additional settlements pertaining to suppliers and subcontractors under the cost-reimbursable scope of the contract were presented to the client. The client consented to these settlements and paid for them but reserved its contractual rights. In reliance, JKC in turn settled these claims with the associated suppliers and subcontractors. The formal contract price adjustments for these settlements remained pending at December 31, 2018 , but unlike amounts funded under the Funding Deed, there is no requirement to refund these amounts to the client by a certain date. In October 2018, JKC received a favorable ruling from an arbitration tribunal. The ruling determined a contract interpretation in JKC's favor, to the effect that delay and disruption costs payable to subcontractors under the cost-reimbursable scope of the EPC contract are for the client's account and are reimbursable to JKC. JKC contends this ruling resolves the reimbursability of the subcontractor settlement sums under the Funding Deed and additional settlements made in September and October 2017. Pursuant to this decision, JKC is undertaking steps for a formal contract adjustment to the cost-reimbursable scope of the contract for these settlement claims of which $324 million are included in the recognized unapproved change orders as of December 31, 2018 . Our view is that the arbitration ruling resolves our obligations under the Funding Deeds and settlements with reimbursable subcontractors. We have initiated arbitration proceedings under the Funding Deed to resolve this dispute. There has been deterioration of paint and insulation on certain exterior areas of the plant. The client has requested, and has funded, paint remediation for a portion of the facilities. The client has requested a proposal to remediate any remaining non-conforming paint and insulation but JKC and its client have not resolved the nature and extent of the non-conformances, the method and degree of remediation that was and is required, or who is responsible. We believe the remediation costs will be significant given the plant is now operating and there will be several operating constraints on any such works. JKC’s profit estimate at completion includes a portion of those revenues and costs for remediation activities that it has been directed to perform which have been funded by the client. In addition, JKC has also started proceedings against the paint manufacturer and subcontractors and has also made demands on insurance policies in respect of these matters. Combined Cycle Power Plant Pursuant to JKC's fixed-price scope of its contract with its client, JKC awarded a fixed-price EPC contract to a subcontractor for the design, construction and commissioning of a combined cycle power plant. The subcontractor was a consortium consisting of General Electric and GE Electrical International Inc. and a joint venture between UGL Infrastructure Pty Limited and CH2M Hill (collectively, the "Consortium"). On January 25, 2017, JKC received a Notice of Termination from the Consortium, and the Consortium ceased work on the Power Plant and abandoned the construction site. JKC believes the Consortium materially breached its subcontract and repudiated its obligation to complete the Power Plant, plus undertook actions making it more difficult and more costly for the works to be completed by others after the Consortium abandoned the site. Subsequently, the Consortium filed a request for arbitration with the ICC asserting that JKC repudiated the contract. The Consortium also sought an order that the Consortium validly terminated the subcontract. JKC has responded to this request, denying JKC committed any breach of its subcontract with the Consortium and restated its claim that the Consortium breached and repudiated its subcontract with JKC and is furthermore liable to JKC for all costs to complete the Power Plant. In March 2017, JKC prevailed in a legal action against the Consortium requiring the return of materials, drawings and tools following their unauthorized removal from the site by the Consortium. After taking over the work, JKC discovered incomplete and defective engineering designs, defective workmanship on the site, missing, underreported and defective materials; and the improper termination of key vendors/suppliers. JKC's investigations also indicate that progress of the work claimed by the Consortium was over-reported. JKC has evaluated the cost to complete the Consortium's work, which significantly exceeds the awarded fixed-price subcontract value. JKC's cost to complete the Power Plant includes re-design efforts, additional materials and significant re-work. These costs represent estimated recoveries of claims against the Consortium and have been included in JKC's estimate to complete the Consortium's remaining obligations. JKC is pursuing recourse against the Consortium to recover all of the costs to complete the Power Plant, plus the additional interest, and/or general damages by all means inclusive of calling bank guarantees provided by the Consortium partners. In April 2018, JKC prevailed in a legal action to call bank guarantees (bonds) and received funds totaling $52 million . Each of the Consortium partners has joint and several liability with respect to all obligations under the subcontract. JKC intends to pursue recovery of all additional amounts due from the Consortium via various legal remedies available to JKC. Estimated costs to complete the Power Plant that have been determined to be probable of recovery from the Consortium under U.S. GAAP have been included as a reduction of cost in our estimate of profit at completion. The estimated recoveries exclude interest, liquidated damages and other related costs which JKC intends to pursue recovery from the Consortium. As of December 31, 2018 , JKC's claims against the Consortium were approximately $1.9 billion for recovery of JKC's costs. The arbitration is set for hearing in the first half of 2020. JKC has also recently initiated suit against the parent companies of the Consortium members to seek a declaration that the parents either had to perform and finish the work or pay for the completion of the power plant based on their payment and performance guarantees. A preliminary hearing on JKC's claim is set for March 2019. To the extent JKC is unsuccessful in prevailing in the Arbitration or the Consortium members are unable to satisfy their financial obligations in the event of a decision favorable to JKC, we would be responsible for our pro-rata portion of unrecovered costs from the Consortium. This could have a material adverse impact on the profit at completion of the overall contract and thus on our consolidated statements of operations, financial position and planned cash flows. Additionally, to the extent JKC does not resolve this matter with the Consortium in the near term, the joint venture partners have been and will continue to be required to fund JKC's completion of the combined cycle power plant which could have a material adverse effect on our financial position and cash flows. Ichthys Project Funding As a result of the ongoing disputes with the client and pursuit of recoveries against the Consortium through arbitration, we have been and continue to fund our proportionate share of the working capital requirements of JKC to complete the project. During the year ended December 31, 2018 , we made investment contributions to JKC of approximately $344 million to fund the ongoing project execution activities. Our projection of total investment contributions to complete the project, estimated to occur in the second quarter of 2019, is approximately $500 million , thus leaving approximately $156 million to fund in 2019. If our estimates to complete the project increase, our projection of total investment contributions to complete the project could increase which could have a material adverse effect on our financial position and cash flows. Further, if our partner(s) in JKC do not fulfill their responsibilities under the JKC JV agreement or subcontract, we could be exposed to additional funding requirements as a result of the nature of the JKC JV agreement. As of December 31, 2018, we had $164 million in letters of credit outstanding in support of performance and warranty guarantees provided to the client. The performance letter of credit expires upon provisional acceptance of the facility by the client and the warranty letter of credit expires upon the end of the warranty obligation. Other Matters JKC is entitled to an amount of profit and overhead (“TRC Fee”) which is a fixed percentage of the target reimbursable costs ("TRC") under the reimbursable component of the contract which was to be agreed by JKC and its client. At the time of the contract, JKC and its client agreed to postpone the fixing of the TRC until after a specific milestone in the project had been achieved. Although the milestone was achieved, JKC and its client have been unable to reach agreement on the TRC. This matter was taken to arbitration in 2017. A decision was issued in December 2017 concluding that the TRC should be determined on the basis of information available as at April 2014. JKC has included an estimate for the TRC Fee in its determination of profit at completion at December 31, 2018 based on the contract provisions and the decision from the December 2017 arbitration. JKC has submitted the revised estimate of the TRC Fee to the client. The parties have not agreed the revised estimate, and JKC has started an additional arbitration on this dispute. All of the Ichthys LNG project commercial matters are complex and involve multiple interests, including the client, suppliers and other third parties. Ultimate resolution may not occur in the near term. Our current estimates for resolving these matters may prove inaccurate and, if so, could have a material adverse effect on our results of operations, financial position and cash flows. |
Claims and Accounts Receivable
Claims and Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | Revenue We disaggregate our revenue from customers by type of service, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below. Revenue by Service/Product line was as follows: Year Ended December 31, Dollars in millions 2018 By Service / Product Types Government Services Space and Mission Solutions $ 651 Engineering 1,141 Logistics 1,665 Total Government Services 3,457 Hydrocarbons Technology 297 Hydrocarbons Services Onshore 931 Offshore 90 Industrial Services 68 Consulting 66 Other 2 Total Hydrocarbons Services 1,157 Total Hydrocarbons 1,454 Non-strategic business 2 Total net revenue $ 4,913 Government Services revenue earned from key U.S. Government customers including U.S. DoD agencies and NASA was $2.6 billion for the year ended December 31, 2018 . Government Services revenue earned from non-U.S. Government customers including the U.K. MoD, the Australian Defence Force and others was $847 million for the year ended December 31, 2018 . Revenue by geographic destination was as follows: Year Ended December 31, 2018 Hydrocarbons Total by Countries/Regions Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Many of our contracts contain both fixed price and cost reimbursable components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Year Ended December 31, 2018 Hydrocarbons Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total Fixed Price $ 1,034 $ 282 $ 179 $ 2 $ 1,497 Cost Reimbursable 2,423 15 978 — 3,416 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 We recognized revenue of $69 million from performance obligations satisfied in previous periods for the year ended December 31, 2018 . On December 31, 2018 , we had $9.8 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 35% of our remaining performance obligations as revenue within one year , 28% in years two through five , and 37% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations related to Aspire Defence and Fasttrax projects, which have contract terms extending through 2041 and 2023, respectively. The balance of remaining performance obligations does not include variable consideration that was determined to be constrained as of December 31, 2018 The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and contract liabilities on the consolidated balance sheets. Our contract assets by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 123 $ 274 $ (151 ) (55 )% Technology 19 39 (20 ) (51 )% Hydrocarbons Services 43 70 (27 ) (39 )% Subtotal 185 383 (198 ) (52 )% Non-strategic Business — — — N/A Total $ 185 $ 383 $ (198 ) (52 )% The decrease in contract assets was primarily caused by the initial adjustment due to the adoption of ASC 606, offset by normal business operations and the acquisition of $21 million of contract assets from the purchase of SGT as described in Note 4 to our consolidated financial statements. Our contract liabilities balances by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 261 $ 85 $ 176 207 % Technology 98 61 37 61 % Hydrocarbons Services 100 214 (114 ) (53 )% Subtotal 459 360 99 28 % Non-strategic Business 4 8 (4 ) (50 )% Total $ 463 $ 368 $ 95 26 % The increase in contract liabilities was primarily related to the acquisition of $161 million of contract liabilities associated with the Aspire Defence project joint ventures, partially offset by normal business operations and the recognition of the incentive fee associated with an Australian LNG project. We recognized revenue of $261 million for the year ended December 31, 2018 that was previously included in the contract liability balance at December 31, 2017 Our claims and accounts receivable balance not expected to be collected within the next 12 months was $98 million and $101 million as of December 31, 2018 and 2017 , respectively. Claims and accounts receivable primarily reflects claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government cost reimbursable contracts within our GS business segment. These claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order. Included in the amount is $73 million and $79 million as of December 31, 2018 and 2017 , respectively, related to Form 1s issued by the U.S. government questioning or objecting to costs billed to them. See Note 17 of our consolidated financial statements for additional information. The amount also includes $25 million and $22 million as of December 31, 2018 and 2017 |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Land N/A $ 5 $ 7 Buildings and property improvements 1-35 122 118 Equipment and other 1-25 349 334 Total 476 459 Less accumulated depreciation (355 ) (329 ) Net property, plant and equipment $ 121 $ 130 See Note 12 to our consolidated financial statements for discussion on asset impairment. Depreciation expense was $31 million , $27 million , and $31 million for the years ended December 31, 2018 , 2017 , and 2016 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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 Government Services Technology Hydrocarbons Services Total Balance as of January 1, 2017 $ 674 $ 48 $ 237 $ 959 Goodwill acquired during the period 1 — — 1 Purchase price adjustment 4 — — 4 Foreign currency translation — 3 1 4 Balance as of December 31, 2017 $ 679 $ 51 $ 238 $ 968 Goodwill acquired during the period $ 299 $ — $ — $ 299 Purchase price adjustment 2 — — 2 Foreign currency translation (3 ) — (1 ) (4 ) Balance as of December 31, 2018 $ 977 $ 51 $ 237 $ 1,265 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: Dollars in millions December 31, 2018 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 272 (69 ) 203 Developed technologies 22 61 (34 ) 27 Contract backlog 20 249 (36 ) 213 Other 14 24 (12 ) 12 Total intangible assets $ 667 $ (151 ) $ 516 December 31, 2017 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 206 (57 ) 149 Developed technologies 17 45 (33 ) 12 Contract backlog 3 23 (20 ) 3 Other 15 26 (12 ) 14 Total intangible assets $ 361 $ (122 ) $ 239 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 impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. See Note 4 to our consolidated financial statements for discussion on additions of intangible assets. Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2018 2017 2016 Intangibles amortization expense $ 32 $ 21 $ 14 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2019 $ 32 2020 $ 32 2021 $ 27 2022 $ 22 2023 $ 22 Beyond 2023 $ 320 |
Asset Impairment and Restructur
Asset Impairment and Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Restructuring | 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 2018 2017 2016 Asset impairment: Government Services $ — $ — $ — Technology — — — Hydrocarbons Services — — 10 Other — — 7 Subtotal — — 17 Non-strategic Business — — — Total $ — $ — $ 17 Restructuring charges: Government Services $ — $ — $ 1 Technology — — 1 Hydrocarbons Services — 6 20 Other — — — Subtotal — 6 22 Non-strategic Business — — — Total $ — $ 6 $ 22 Asset impairment and restructuring charges: Total $ — $ 6 $ 39 Asset impairment and restructuring charges include the following: Leasehold improvements - There were no impairments of leasehold improvements during 2018 and 2017 . During 2016 we recorded $17 million primarily within our HS and Other business segments related to asset impairments on abandoned office space. Early Termination of leases - There were no early lease terminations during 2018 . During 2017 and 2016 we recorded charges of $7 million and $4 million , respectively, on early lease terminations within our HS and Other business segments. Severance - During the year ended December 31, 2017 we reversed $1 million of restructuring charges primarily related to the finalization of amounts owed to expatriate employees for tax equalization matters. We recognized severance charges of $18 million during the year ended December 31, 2016 |
Equity Method Investments And V
Equity Method Investments And Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
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 VIEs. The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2018 2017 Beginning balance $ 387 $ 369 Cumulative effect of change in accounting policy (a) 87 — Adjusted balance at January 1, 474 369 Equity in earnings of unconsolidated affiliates 81 72 Distributions of earnings of unconsolidated affiliates (b) (75 ) (62 ) Payments from (advances to) unconsolidated affiliates, net (12 ) (11 ) Investments (c) 344 — Foreign currency translation adjustments (33 ) 12 Other (35 ) 5 Balance before reclassification 744 385 Reclassification of excess distributions (b) — 11 Recognition of excess distributions (b) — (9 ) Balance at December 31, $ 744 $ 387 (a) As further discussed in Note 1 to our consolidated financial statements, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence project joint ventures. (b) From 2014 through 2017, we received cash dividends in excess of the carrying value of one of our unconsolidated joint ventures. We have no obligation to return any portion of the cash dividends received. We record excess dividends as "Deferred income from unconsolidated affiliates" on our consolidated balance sheets and recognize these dividends as earnings are generated by the investment. As further discussed in Note 1 to our consolidated financial statements, the adoption of ASC Topic 606 by this unconsolidated joint venture resulted in the reversal of the "Deferred income from unconsolidated affiliates" balance of $101 million in our consolidated balance sheets as of December 31, 2017 in the cumulative effect adjustment of the change in accounting policy. (c) In 2018, investments represent our contributions to fund JKC, as described in Note 8 . Equity Method Investments Brown & Root Industrial Services Joint Venture. 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 North America. 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 had a controlling interest in this Industrial Services business and deconsolidated it effective September 30, 2015. The Brown & Root Industrial Services joint venture offers engineering, construction and reliability-driven maintenance services for the refinery, petrochemical, chemical, specialty chemicals and fertilizer markets. 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. Results from this joint venture are included in our HS 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 2018 2017 Current assets $ 3,526 $ 3,107 Noncurrent assets 3,121 3,250 Total assets $ 6,647 $ 6,357 Current liabilities $ 1,277 $ 2,006 Noncurrent liabilities 3,212 3,508 Total liabilities $ 4,489 $ 5,514 Statements of Operations Years ended December 31, Dollars in millions 2018 2017 2016 Revenues $ 3,190 $ 5,781 $ 5,877 Operating income $ 197 $ 278 $ 365 Net income $ 173 $ 145 $ 192 Unconsolidated Variable Interest Entities For the VIEs in which we participate, our maximum exposure to loss generally includes our equity investment in the VIE and any amounts owed to us for services we may have provided to the VIE, reduced by any unearned revenues on the project. Our maximum exposure to loss may also include an estimate of any future funding. As of December 31, 2018 , we do not project any losses related to these joint venture projects. Where our performance and financial obligations are joint and several to the client with our joint venture partners, we may be further exposed to losses above our ownership interest in the joint venture. The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. Amounts disclosed as Aspire Defence Limited or 2018 reflect only the Aspire Defence Limited contracting entities related to the Aspire Defence project. For 2017, Aspire Defence includes both Aspire Defence Limited contracting entities and the related subcontracting entities. See Note 4 . to our consolidated financial statements for discussion of the consolidation of the Aspire Defence subcontracting entities. December 31, 2018 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 15 $ 8 Aspire Defence Limited $ 80 $ 5 JKC joint venture (Ichthys LNG project) $ 376 $ 32 U.K. Road project joint ventures $ 37 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 42 $ 1 Dollars in millions December 31, 2017 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 26 $ 10 Aspire Defence contracting and subcontracting entities $ 10 $ 125 JKC joint venture (Ichthys LNG project) $ 140 $ 25 U.K. Road project joint ventures $ 36 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 38 $ 1 Affinity. In February 2016, Affinity, a joint venture between KBR and Elbit Systems, was awarded a service contract by a third party to procure, operate and maintain aircraft and aircraft-related assets over an 18 -year contract period, in support of the UKMFTS project. The contract has been determined to contain a leasing arrangement and various other services between the joint venture and the customer. KBR owns a 50% interest in Affinity. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provide procurement, operations and management support services under subcontracts with Affinity. The remaining 50% interest in these entities is held by Elbit Systems. KBR has provided its proportionate share of certain limited financial and performance guarantees in support of the partners' contractual obligations. The three project-related entities are VIEs; however, KBR is not the primary beneficiary of any of these entities. We account for KBR's interests in each entity using the equity method of accounting within our GS business segment. The project is funded through KBR and Elbit Systems provided equity, subordinated debt and non-recourse third party commercial bank debt. Our maximum exposure to loss includes our equity investments in the project entities as of December 31, 2018 . Aspire Defence project. In April 2006, Aspire Defence Limited, a joint venture between KBR and two other project sponsors, was awarded a privately financed project contract by the U.K. 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 included a nine -year construction program to improve soldiers’ single living, technical and administrative accommodations, along with leisure and recreational facilities. The initial construction program was completed in 2014. In late 2016, Aspire Defence Limited was awarded a significant contract variation, expanding services to be provided under the existing contract including new construction, program management services and facilities maintenance across the garrisons. Aspire Defence Limited 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 Limited, the contracting company that is the holder of the 35 -year concession contract. 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 KBR and the other project sponsors. The contracting company is a VIE; however, we are not the primary beneficiary of this entity as of December 31, 2018. We account for our interest in Aspire Defence Limited using the equity method of accounting. As of December 31, 2018 , included in our GS segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $80 million and $5 million , respectively. Our maximum exposure to loss includes our equity investments in the project entities and amounts payable to us for services provided to these entities as of December 31, 2018 . Prior to January 15, 2018, we also owned a 50% interest in the joint ventures that provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. On January 15, 2018, Carillion plc, our U.K. partner in these joint ventures, entered into compulsory liquidation. As a result, KBR began consolidating these entities in its financial statements effective January 15, 2018. See Note 4 to our consolidated financial statements for further discussion. Ichthys LNG project. In January 2012, we formed a joint venture to provide EPC services to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia ("Ichthys LNG project"). The project is being executed through two entities (collectively, "JKC"), 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, 2018 , our assets and liabilities associated with our investment in JKC recorded in our consolidated balance sheets under our HS business segment were $376 million and $32 million , respectively. These assets include expected cost recoveries from unapproved change orders and claims against the client as well as estimated recoveries of claims against suppliers and subcontractors arising from issues related to changes to the work scope, delays and lower than planned subcontractor activity. As disclosed in Note 8, we expect to incur an additional $156 million in funding requirements to complete and commission the power plant portion of the project, of which we expect to recover a substantial portion from the Consortium. Our estimates to complete could increase if we incur unexpected costs, delays, equipment failures or from other causes. In addition, we may be subject to claims and litigation from our client and/or suppliers on the project, and losses could result if our reserves for such matters are not sufficient. Our maximum exposure to loss would include the extent we do not recover our equity investments in and advances to JKC as of December 31, 2018 plus the expected recoveries from the additional capital we expect to fund to complete the project from our client and/or the Consortium. Our maximum exposure to loss would also include any shortfalls in reserves we have established for contingencies such as claims and litigation. Further, if our partner(s) in JKC do not fulfill their responsibilities under the JKC JV agreement or subcontract, we could be exposed to additional funding requirements as a result of the nature of the JKC JV agreement. Note 8 to our consolidated financial statements for further discussion on the significant contingencies as well as unapproved change orders and claims related to this project. 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, 2018 , included in our GS business segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $37 million and $10 million , respectively. Our maximum exposure to loss includes 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, 2018 , included in our HS business segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $42 million and $1 million , respectively. Our maximum exposure to loss includes our proportionate share of the equity investment and amounts payable to us for services provided to the entity as of December 31, 2018 . Related Party Transactions We often provide engineering, construction management and other subcontractor services to our unconsolidated joint ventures and our revenues include amounts related to these services. For the years ended December 31, 2018 , 2017 and 2016 , our revenues included $190 million , $133 million and $235 million , respectively, related to services we provided to our joint ventures, primarily the Ichthys JV within our HS business segment. Under the terms of our TSA with Brown & Root Industrial Services joint venture, we collect cash from customers and make payments to vendors and employees on behalf of the joint venture. For the years ended December 31, 2018 , 2017 and 2016 , we incurred approximately $2 million , $5 million and $16 million , respectively, 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, 2018 and 2017 are as follows: December 31, Dollars in millions 2018 2017 Accounts receivable, net of allowance for doubtful accounts (a) $ 43 $ 28 Contract assets (b) $ 1 $ 2 Contract liabilities (b) $ 38 $ 27 Accounts payable $ 2 $ — (a) Includes a $4 million and $4 million net receivable from the Brown & Root Industrial Services joint venture at December 31, 2018 and 2017 , respectively. (b) Reflects contract assets and contract liabilities primarily related to joint ventures within our HS business segment as discussed above. 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, 2018 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 13 $ 19 Fasttrax Limited (Fasttrax project) $ 49 $ 34 Aspire Defence subcontracting entities (Aspire Defence project) $ 589 $ 324 Dollars in millions December 31, 2017 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 15 $ 48 Fasttrax Limited (Fasttrax project) $ 57 $ 47 Gorgon LNG project. We have a 30% ownership in an Australian joint venture which was awarded a contract in 2005 for front end engineering design 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. 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 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. Assets collateralizing Fasttrax’s senior bonds include cash and equivalents of $17 million and net property, plant and equipment of approximately $27 million as of December 31, 2018 . See Note 15 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, 2018 . Aspire Defence project (subcontracting entities). As discussed above and in Note 4 to our consolidated financial statements, we assumed operational management of the Aspire Defence subcontracting entities in January 2018. These subcontracting entities provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. These entities are considered VIEs, and, because we are the primary beneficiary, they are consolidated for financial reporting purposes. Acquisition of Noncontrolling Interest In December 2017, we entered into an agreement to acquire the remaining 25% noncontrolling interest in one of our joint ventures for $8 million , including a settlement of $2 million owed to the joint venture from the outside partner. The acquisition of these shares was recorded as an equity transaction, with a $8 million reduction in our paid-in capital in excess of par. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension 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 $56 million in 2018 , $52 million in 2017 and $51 million in 2016 . We have two frozen defined benefit plans in the U.S., one frozen plan in the U.K., and one frozen plan in Germany. We also participate in multi-employer plans in Canada. Substantially all of our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of years of service or compensation. Benefit obligations and plan assets We used a December 31 measurement date for all plans in 2018 and 2017 . 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 2018 2017 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 77 $ 2,046 $ 75 $ 1,970 Acquisitions — 24 — — Service cost — 2 — 1 Interest cost 2 50 3 53 Foreign currency exchange rate changes — (114 ) — 186 Actuarial (gain) loss (4 ) (184 ) 3 (78 ) Other — — — (1 ) Plan amendments — 20 — — Benefits paid (4 ) (93 ) (4 ) (85 ) Projected benefit obligations at end of period $ 71 $ 1,751 $ 77 $ 2,046 Change in plan assets: Fair value of plan assets at beginning of period $ 59 $ 1,673 $ 56 $ 1,463 Acquisitions — 24 — — Actual return on plan assets (3 ) (28 ) 7 119 Employer contributions 2 39 1 36 Foreign currency exchange rate changes — (96 ) — 141 Benefits paid (4 ) (93 ) (4 ) (85 ) Other — (1 ) (1 ) (1 ) Fair value of plan assets at end of period $ 54 $ 1,518 $ 59 $ 1,673 Funded status $ (17 ) $ (233 ) $ (18 ) $ (373 ) In October 2018, a U.K. High Court issued a ruling requiring U.K. defined benefit pension plans to provide equal pension benefits to males and females for guaranteed minimum pensions where plan participants accrued benefits during the period from May 1990 to April 1997. We have accounted for the change in law as a retroactive plan amendment resulting in a $20 million increase to prior service cost in "Other comprehensive income" for the year ended December 31, 2018 and a $20 million increase to the projected benefit obligation of our U.K. pension plan as of December 31, 2018. The prior service cost will be amortized out of AOCI as a component of net periodic benefit cost over the remaining life expectancy of the plan participants. Accumulated Benefit Obligation (ABO) The ABO is the present value of benefits earned to date. The ABO for our United States pension plans was $71 million and $77 million as of December 31, 2018 and 2017 , respectively. The ABO for our international pension plans was $1.8 billion and $2 billion as of December 31, 2018 and 2017 , respectively. United States Int’l United States Int’l Dollars in millions 2018 2017 Amounts recognized on the consolidated balance sheets Pension obligations $ 17 $ 233 $ 18 $ 373 Net periodic cost United States Int’l United States Int’l United States Int’l Dollars in millions 2018 2017 2016 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 1 $ — $ 1 Interest cost 2 50 3 53 3 63 Expected return on plan assets (3 ) (80 ) (3 ) (77 ) (3 ) (87 ) Settlements/curtailments — — — — 1 — Recognized actuarial loss 2 26 1 30 1 28 Net periodic benefit cost $ 1 $ (2 ) $ 1 $ 7 $ 2 $ 5 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 and 2017 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2018 2017 Unrecognized actuarial loss, net of tax of $10 and $203, $10 and $217, respectively $ 23 $ 569 $ 22 $ 638 Total in accumulated other comprehensive loss $ 23 $ 569 $ 22 $ 638 Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2019 are as follows: Dollars in millions United States Int’l Actuarial loss $ 1 $ 14 Total $ 1 $ 14 Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2018 2017 2016 Discount rate 3.33 % 2.50 % 3.73 % 2.60 % 3.42 % 3.75 % Expected return on plan assets 6.01 % 5.20 % 6.01 % 5.40 % 5.00 % 6.10 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2018 2017 Discount rate 3.98 % 2.90 % 3.33 % 2.50 % 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 2019 is as follows: Asset Allocation 2019 Targeted United States Int'l Equity funds and securities 51 % 28 % Fixed income funds and securities 39 % 52 % Hedge funds — % — % Real estate funds 1 % 2 % Other 9 % 18 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2019 and 2018 , by asset class, are as follows: International Plans 2019 Targeted 2018 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 60 % — % 60 % Fixed income funds and securities — % 99 % — % 100 % Hedge funds — % 34 % — % 35 % Real estate funds — % 10 % — % 10 % Other — % 20 % — % 20 % The range of targeted asset allocations for our U.S. plans for 2019 and 2018 , by asset class, are as follows: Domestic Plans 2019 Targeted 2018 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents — % — % — % — % Equity funds and securities 50 % 53 % 50 % 53 % Fixed income funds and securities 37 % 40 % 37 % 40 % Real estate funds 1 % 1 % 1 % 1 % Other 9 % 9 % 9 % 9 % 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, 2018 United States plan assets Investments measured at net asset value (a) $ 54 $ — $ — $ — Total United States plan assets $ 54 $ — $ — $ — International plan assets Equities $ 84 $ — $ — $ 84 Fixed income 2 — — 2 Real estate 1 — — 1 Cash and cash equivalents 8 8 — — Other 74 35 — 39 Investments measured at net asset value (a) 1,349 — — — Total international plan assets $ 1,518 $ 43 $ — $ 126 Total plan assets at December 31, 2018 $ 1,572 $ 43 $ — $ 126 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2017 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Total United States plan assets $ 59 $ — $ — $ — International plan assets Equities $ 60 $ 34 $ — $ 26 Fixed income 5 — — 5 Real estate 3 — — 3 Cash and cash equivalents 8 8 — — Other 40 — — 40 Investments measured at net asset value (a) 1,557 — — — Total international plan assets $ 1,673 $ 42 $ — $ 74 Total plan assets at December 31, 2017 $ 1,732 $ 42 $ — $ 74 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2016 $ 82 $ 16 $ 12 $ 4 $ 50 Return on assets held at end of year (1 ) 3 — (1 ) (3 ) Return on assets sold during the year 3 — — — 3 Purchases, sales and settlements (15 ) 5 (8 ) (1 ) (11 ) Foreign exchange impact 5 2 1 1 1 Balance as of December 31, 2017 $ 74 $ 26 $ 5 $ 3 $ 40 Return on assets held at end of year (3 ) 1 — (1 ) (3 ) Return on assets sold during the year 8 — — 1 7 Purchases, sales and settlements, net 39 11 (3 ) (2 ) 33 Transfers 13 48 — 48,000,000 — 48 (35 ) Foreign exchange impact (5 ) (2 ) — — (3 ) Balance as of December 31, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 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 $39 million to our pension plans in 2019 . Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2019 $ 5 $ 63 2020 $ 5 $ 65 2021 $ 5 $ 66 2022 $ 5 $ 68 2023 $ 5 $ 70 Years 2024 - 2028 $ 25 $ 374 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 immaterial in 2018 , $3 million in 2017 and $1 million in 2016 . At December 31, 2018 , 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 and $6 million of mutual funds included in "Other assets" on our consolidated balance sheets at December 31, 2018 and 2017 , respectively, 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. Our obligations under our employee deferred compensation plan were $67 million and $68 million as of December 31, 2018 and 2017, respectively, and are included in "Employee compensation and benefits" in our |
Debt And Other Credit Facilitie
Debt And Other Credit Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Other Credit Facilities | Debt and Other Credit Facilities Our outstanding debt consisted of the following at the dates indicated: Dollars in millions December 31, 2018 December 31, 2017 Revolving credit agreement, terminated April 2018 $ — $ 470 Term Loan A 190 — Term Loan B 796 — Convertible Notes 350 — Unamortized debt issuance costs - Term Loan A (5 ) — Unamortized debt issuance costs and discount - Term Loan B (18 ) — Unamortized debt issuance costs and discount - Convertible Notes (65 ) — Total long-term debt 1,248 470 Less: current portion 22 — Total long-term debt, net of current portion $ 1,226 $ 470 Senior Credit Facility On April 25, 2018, the Company refinanced its $1 billion Credit Agreement due September 2020 ("Credit Agreement"). The new senior secured credit facility ("Senior Credit Facility") consists of a $500 million revolving credit facility ("Revolver"), a $500 million performance letter of credit facility ("PLOC"), a $350 million Delayed Draw Term Loan A, ("Term Loan A") and an $800 million Term Loan B ("Term Loan B"). The Revolver, PLOC and Term Loan A mature in April 2023 and the Term Loan B matures in April 2025. The Term Loan A may be drawn upon until the earlier of becoming fully drawn or June 30, 2019 (the "Availability Period"). Borrowings under the Term Loan A may only be used to fund investments in JKC. See Note 8 to our consolidated financial statements for a discussion on JKC. On November 12, 2018, the Company entered into an amendment (the “Credit Agreement Amendment”) to its Credit Agreement with Bank of America, N.A., as Administrative Agent, Swing Line Lender and a Letter of Credit Issuer, and the other lenders party thereto,. The Credit Agreement Amendment amends the Senior Credit Facility to, among other things, permit (i) the issuance of the Convertible Notes (defined below) and our performance of our obligations thereunder and under the indenture governing the Convertible Notes, and the related convertible note hedge transactions and warrant transactions in connection with the Convertible Notes; (ii) an additional $100 million of secured bilateral letter of credit obligations; and (iii) an additional $100 million investment in the Company’s Australian subsidiaries. The interest rates with respect to the Revolver and Term Loan A are based on, at the Company's option, adjusted LIBOR plus an additional margin or base rate plus additional margin. The interest rate with respect to the Term Loan B is LIBOR plus 3.75% . The Senior Credit Facility provides for fees on letters of credit issued under the PLOC at varying rates, as shown below. Additionally, there is a commitment fee with respect to the Revolver, PLOC and Term Loan A. The details of the applicable margins and commitment fees are based on the Company's consolidated leverage ratio as follows: Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Performance Letter of Credit Fee Commitment Fee Greater than or equal to 4.00 to 1.00 3.25 % 2.25 % 1.95 % 0.450 % Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 3.00 % 2.00 % 1.80 % 0.400 % Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 2.75 % 1.75 % 1.65 % 0.375 % Less than 2.00 to 1.00 2.50 % 1.50 % 1.50 % 0.350 % The Term Loan A provides for quarterly principal payments of 2.50% of the aggregate principal amount commencing with the fiscal quarter ending June 30, 2019. The Term Loan B provides for quarterly principal payments of 0.25% of the initial aggregate principal amounts commencing with the fiscal quarter ending September 30, 2018. The Senior Credit Facility contains customary restrictive covenants, subject to certain permitted amounts and exceptions, including covenants limiting our ability to incur additional liens and indebtedness, enter into asset sales, repurchase our equity shares and make certain types of investments. The Senior Credit Facility contains financial maintenance covenants of a maximum consolidated leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Senior Credit Facility). Our consolidated leverage ratio as of the last day of any fiscal quarter, commencing with the fiscal quarter ending June 30, 2018, may not exceed 4.50 to 1 and reducing gradually during 2019 and 2020 to 3.50 to 1. Our consolidated interest coverage ratio as of the last day of any fiscal quarter, commencing with the fiscal quarter ending June 30, 2018 and thereafter, may not be less than 3.00 to 1. As of December 31, 2018 , we were in compliance with our financial covenants. Convertible Senior Notes Convertible Senior Notes - On November 15, 2018 , we issued and sold $350 million of 2.50% Convertible Senior Notes due 2023 (the "Convertible Notes"). The Convertible Notes bear interest at 2.50% per year and interest is payable on May 1 and November 1 of each year, beginning on May 1, 2019. The Convertible Notes mature on November 1, 2023 and may not be redeemed by us prior to maturity. The effective interest rate on the liability component for the period is 6.50% . The amount of interest cost recognized for the year ended December 31, 2018 relating to the contractual interest coupon and amortization of the discount on the liability was $1 million and $1 million , respectively. The Convertible Notes were issued pursuant to an indenture dated as of November 15, 2018 (the "Indenture"), between the Company and Citibank, N.A., as trustee (the "Trustee"). The Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent and policy to settle the principal balance of the Convertible Notes in cash and any excess value upon conversion in shares of our common stock. The initial conversion price of the Convertible Notes is approximately $25.51 (subject to adjustment in certain circumstances), based on the initial conversion rate of 39.1961 Common Shares per $1,000 principal amount of Convertible Notes. Prior to May 1, 2023, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. The Convertible Notes are senior unsecured obligations. The proceeds were used to repay $85 million of the Term Loan A and $115 million of the Revolver, maximize committed capital to fund ongoing investments, and pay the $40 million cost of the convertible note hedge transaction described below. Accounting standards require that convertible debt which may be settled in cash upon conversion (including partial cash settlement) be accounted for with a liability component based on the fair value of similar nonconvertible debt and an equity component based on the excess of the initial proceeds from the convertible debt over the liability component. The difference between the principal amount of the notes and the carrying amount represents a debt discount, which is amortized as additional non-cash interest expense over the term of the Convertible Notes. The equity component represents proceeds related to the conversion option and is recorded as additional paid-in capital. The equity component is determined at issuance and is not remeasured as long as it continues to meet the conditions for equity classification. The balances of the debt and equity components of the Convertible Notes as of December 31, 2018 is as follows: Dollars in millions December 31, 2018 Debt component: Face amount due at maturity $ 350 Unamortized debt discount (57 ) Unamortized debt issuance costs (1) (8 ) Debt component - net carrying value $ 285 Equity component - net carrying value (2) $ 57 (1) Issuance costs of approximately $9 million related to the Convertible Notes were paid to the initial purchasers and third parties. Approximately $8 million of issuance costs of the Convertible Notes was allocated to the liability component and recorded as a contra-liability, presented against the carrying amount of the Convertible Notes, of which $8 million remains unamortized as of December 31, 2018. The debt issuance costs are being amortized to expense over the term of the Convertible Notes using the effective interest method. Interest expense related to the debt issuance costs was not material in 2018. (2) Approximately $1 million of issuance costs paid to the initial purchasers of the Convertible Notes and third parties was allocated to the equity component and recorded net against additional paid-in capital on the consolidated balance sheets. Convertible Notes Call Spread Overlay - Concurrent with the issuance of the Convertible Notes, we entered into privately negotiated convertible note hedge transactions (the "Note Hedge Transactions") and warrant transactions (the "Warrant Transactions") with each of Bank of America, N.A., BNP Paribas, and Citibank, N.A. (the "Option Counterparties"). These transactions represent a Call Spread Overlay, whereby the cost of the Note Hedge Transactions we purchased to cover the cash outlay upon conversion of the Convertible Notes was reduced by the sales price of the Warrant Transactions. Each of these transactions is described below. The Note Hedge Transactions cost an aggregate $62 million and are expected generally to reduce the potential dilution of common stock and/or offset the cash payments we are required to make in excess of the principal amount upon conversion of the Convertible Notes in the event that the market price of our common stock is greater than the strike price of the Note Hedge Transactions, which is initially $25.51 (subject to adjustment), corresponding approximately to the initial conversion price of the Convertible Notes. The Note Hedge Transactions have been accounted for by recording the cost as a reduction to "Additional paid-in capital" based on the Note Hedge meeting certain scope exceptions provided under ASC Topic 815. We received proceeds of $22 million for the Warrant Transactions, in which we sold net-share-settled warrants to the Option Counterparties in an amount equal to the number of shares of our common stock initially underlying the Convertible Notes, subject to customary anti-dilution adjustments. The strike price of the warrants is $40.02 per share (subject to adjustment), which is 164% above the last reported sale price of our common stock on the New York Stock Exchange on December 31, 2018 . The Warrant Transactions could have a dilutive effect to our stockholders to the extent the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Warrant Transactions have been accounted for by recording the proceeds received as "Additional paid-in capital". The Note Hedge Transactions and the Warrant Transactions are separate transactions, in each case entered into by us with the Option Counterparties, and are not part of the terms of the Convertible Notes and will not affect any holder's rights under the Convertible Notes. 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 $1 billion in a committed line of credit under our Senior Credit Facility, comprised of the $500 million Revolver and $500 million PLOC. Additionally, we have approximately $304 million of uncommitted lines of credit to support the issuance of letters of credit. Surety bonds are also posted under the terms of certain contracts to guarantee our performance. As of December 31, 2018 , with respect to our $500 million Revolver, we have no outstanding revolver borrowings and have issued $26 million of letters of credit, with $474 million of remaining capacity. With respect to our PLOC, we have $93 million of outstanding letters of credit and $407 million of remaining capacity. With respect to our $304 million of uncommitted lines of credit, we have utilized $209 million for letters of credit as of December 31, 2018 , with $95 million of remaining capacity. The total remaining capacity of these committed and uncommitted lines of credit is approximately $976 million . Of the letters of credit outstanding under our Senior Credit Facility, none have expiry dates beyond the maturity date of the Senior Credit Facility. Of the total letters of credit outstanding, $172 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. 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 13 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 £88.9 million . 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 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 and Class B 5.9% Fixed Rate Bonds in the amount of £20.7 million . Semi-annual payments on both classes of bonds will continue through maturity in 2021. The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16.00% over the term of the notes until maturity in 2025. 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, 2018 : Dollars in millions Payments Due 2019 $ 10 2020 $ 11 2021 $ 5 2022 $ 1 2023 $ — Beyond 2023 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 2018 2017 2016 United States $ 44 $ 84 $ (250 ) Foreign: United Kingdom 203 40 55 Australia 10 (28 ) 38 Canada (2 ) 15 (8 ) Middle East 61 42 66 Africa 13 20 76 Other 69 76 56 Subtotal 354 165 283 Total $ 398 $ 249 $ 33 The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2018 2017 2016 (Provision) Benefit for income taxes $ (88 ) $ 193 $ (84 ) Shareholders' equity, foreign currency translation adjustment (2 ) 6 (3 ) Shareholders' equity, pension and post-retirement benefits (14 ) (27 ) 45 Shareholders' equity, changes in fair value of derivatives 3 — — Total income taxes $ (101 ) $ 172 $ (42 ) The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year-ended December 31, 2018 Federal $ (1 ) $ (6 ) $ (7 ) Foreign (58 ) (20 ) (78 ) State and other (2 ) (1 ) (3 ) Provision for income taxes $ (61 ) $ (27 ) $ (88 ) Year-ended December 31, 2017 Federal $ (6 ) $ 230 $ 224 Foreign (122 ) 92 (30 ) State and other (2 ) 1 (1 ) (Provision) benefit for income taxes $ (130 ) $ 323 $ 193 Year-ended December 31, 2016 Federal $ (5 ) $ 9 $ 4 Foreign (61 ) (26 ) (87 ) State and other — (1 ) (1 ) Provision for income taxes $ (66 ) $ (18 ) $ (84 ) The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2018 2017 2016 United Kingdom $ (32 ) $ (7 ) $ (6 ) Australia (10 ) 6 — Canada (6 ) — 1 Middle East (16 ) (10 ) (24 ) Africa (1 ) 1 (22 ) Other (13 ) (20 ) (36 ) Foreign provision for income taxes $ (78 ) $ (30 ) $ (87 ) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% for 2018 and the statutory rate of 35% for 2017 and 2016 as a result of the following: Years ended December 31, 2018 2017 2016 U.S. statutory federal rate, expected (benefit) provision 21 % 35 % 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (4 ) (5 ) (28 ) Noncontrolling interests and equity earnings (1 ) (2 ) (28 ) State and local income taxes, net of federal benefit 1 1 — Other permanent differences, net 4 (8 ) 54 Contingent liability accrual 3 (2 ) 41 U.S. taxes on foreign unremitted earnings — — 174 Change in valuation allowance (2 ) (90 ) 3 U.S. tax reform — (7 ) — U.K. statutory rate change — — 4 Effective tax rate on income from operations 22 % (78 )% 255 % On December 22, 2017, the U.S. enacted comprehensive tax legislation commonly referred to as the Tax Act making broad and complex changes to the U.S. tax code. The SEC staff issued SAB 118, which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period of up to one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision s of the tax laws that were in effect immediately before the enactment of the Tax Act. SAB 118 measurement period : We have applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2017 and throughout 2018. At December 31, 2017, we had not completed our accounting for all of the enactment-date income tax effects of the Act under ASC 740, Income Taxes, for the following aspects: remeasurement of deferred tax assets and liabilities, one-time transition tax, and tax on global intangible low-taxed income. At December 31, 2018, we have now completed our accounting for all of the enactment-date income tax effects of the Act. Reduction of U.S. federal corporate tax rate: The Tax Act reduces the corporate tax rate to 21% , effective January 1, 2018. As of December 31, 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which was generally 21%), by recording a provisional amount of $18 million . Upon further analysis of certain aspects of the Act and refinement of our calculations during the 12 months ended December 31, 2018, we adjusted our provisional amount by $5 million , which was driven by the release of interpretative guidance. Deemed Repatriation Transition Tax: Transition Tax is a tax on previously untaxed accumulated and current earnings and profits of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 earnings and profits of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. At December 31, 2017, we were able to make a reasonable estimate of our earnings and profits and computed a Transition Tax of $146 million which was fully offset by foreign tax credits generated by the deemed repatriation as well as previously valued foreign tax credit carryforwards available for use. In January, April, and August of 2018, the IRS issued guidance and proposed regulations which provides additional clarification on certain aspects of the Transition Tax calculation. We applied this guidance which impacted certain tax elections, increasing our estimated Transition Tax liability to approximately $227 million which was fully offset by foreign tax credits generated by the deemed repatriation as well as foreign tax credit carryforwards available for use. GILTI: The Act subjects a US shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. We have elected to account for GILTI in the year the tax is incurred. The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2018 2017 Deferred tax assets: Employee compensation and benefits $ 95 $ 122 Foreign tax credit carryforwards 267 279 Loss carryforwards 103 90 Insurance accruals 9 8 Allowance for bad debt 2 3 Accrued liabilities 23 30 Construction contract accounting — 5 Other 3 15 Total gross deferred tax assets 502 552 Valuation allowances (207 ) (217 ) Net deferred tax assets 295 335 Deferred tax liabilities: Construction contract accounting (1 ) — Intangible amortization (57 ) (20 ) Indefinite-lived intangible amortization (41 ) (31 ) Fixed asset depreciation 1 2 Accrued foreign tax credit carryforwards (2 ) (4 ) Total gross deferred tax liabilities (100 ) (53 ) Deferred income tax (liabilities) assets, net $ 195 $ 282 The valuation allowance for deferred tax assets was $207 million and $217 million at December 31, 2018 and 2017 , respectively. The net change in the total valuation allowance was a decrease of $10 million in 2018 and a decrease of $325 million in 2017 . The valuation allowance at December 31, 2018 was primarily related to foreign tax credit carryforwards and foreign and state net operating loss carryforwards 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. In the fourth quarter of 2017, we achieved twelve quarters of cumulative U.S. taxable income which is inclusive of income generated in various countries within branches of our U.S. subsidiaries. Income (loss) related to the U.S. branches totaled $96 million , $163 million and $(72) million for the fiscal years 2018, 2017, and 2016, respectively, and is included in the foreign component of income in the notes to the financial statements in our Form 10-K for the Fiscal Year Ended December 31, 2017. We weighted this positive evidence heavily in our analysis to overcome the previously existing negative evidence of our twelve quarter cumulative loss position. We concluded that future taxable income and the reversal of deferred tax liabilities, excluding those associated with indefinite-lived intangible assets, were the only sources of taxable income available in determining the amount of valuation allowance to be recorded against our deferred tax assets. The deferred tax liabilities we relied on are projected to reverse in the same jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The deferred tax liabilities are projected to reverse in the same periods as the deferred tax assets and are projected to reverse beginning in fiscal year 2019 through fiscal year 2028. We estimated future taxable income by jurisdiction exclusive of reversing temporary differences and carryforwards and applied our foreign tax credit carryforwards based on the sourcing and character of those estimates and considered any limitations. As a result of these analyses and considerations, we reversed approximately $223 million of our valuation allowance on U.S. deferred tax assets as of December 31, 2017, $152 million of which related to foreign tax credit carryforwards, and $71 million of which related to other net deferred tax assets. We did not release all of the valuation allowance as of December 31, 2017 because certain foreign tax credit carry forwards are projected to expire unused. During the year ended December 31, 2018, we further refined our provisional estimates related to the Deemed Repatriation Transition Tax, as well as the impact of additional guidance related to the Tax Act and our estimates of future taxable income. As a result, we further reduced our valuation allowance for U.S. deferred tax assets by $17 million primarily related to foreign tax credit carryforwards. Our ability to utilize the unreserved foreign tax credit carryforwards is based on our ability to generate income from foreign sources of approximately $753 million prior to their expiration whereas our ability to utilize other net deferred tax assets exclusive of those associated with indefinite-lived intangible assets is based on our ability to generate U.S. forecasted taxable income of approximately $374 million . While our current projections of taxable income exceed these amounts, changes in our forecasted ability to achieve taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets. The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2018 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 363 $ (161 ) $ 202 United Kingdom (10 ) — (10 ) Australia 11 (1 ) 10 Canada 28 (24 ) 4 Other 10 (21 ) (11 ) Total $ 402 $ (207 ) $ 195 At December 31, 2018 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2018 Expiration Foreign tax credit carryforwards $ 252 2019-2028 Foreign net operating loss carryforwards $ 147 2019-2038 Foreign net operating loss carryforwards $ 124 Indefinite State net operating loss carryforwards $ 735 Various As a result of the enactment of the U.S. Tax Act, substantially all of our previously untaxed accumulated and current E&P of certain of our foreign subsidiaries were subject to U.S. tax. Repatriations of these foreign earnings will not be subject to additional U.S. tax but may incur withholding and/or state taxes. Although we have provided for taxes on our previously untaxed accumulated and current E&P of certain of our foreign subsidiaries pursuant to the Tax Act, we still must assess 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. As of December 31, 2018 , the cumulative amount of permanently reinvested foreign earnings is $1.5 billion . With the enactment of the Tax Act, these previously unremitted earnings have now been subject to U.S. tax. However, these undistributed earnings could be subject to additional taxes (withholding and/or state taxes) 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 2018 2017 2016 Balance at January 1, $ 184 $ 261 $ 257 Increases related to current year tax positions 1 2 2 Increases related to tax positions from acquisitions — — 14 Increases related to prior year tax positions 18 1 10 Decreases related to prior year tax positions (45 ) (1 ) (4 ) Settlements (62 ) (80 ) (10 ) Lapse of statute of limitations (2 ) (1 ) (6 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (4 ) 2 (2 ) Balance at December 31, $ 90 $ 184 $ 261 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $76 million as of December 31, 2018 . 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. In the next twelve months, it is reasonably possible that our uncertain tax positions could change by approximately $3 million due to settlements with tax authorities and the expirations of statutes 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 $19 million and $21 million as of December 31, 2018 and 2017 , respectively. During the years ended December 31, 2018 , 2017 , and 2016 we recognized net interest and penalty charges of $1 million , $5 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 our business activity for periods prior to our separation from our former parent. As of December 31, 2018 and 2017 , we have recorded $5 million |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 31, 2018 | |
United States Government Contract Work [Abstract] | |
U.S. Government Matters | U.S. Government Matters We provide services to various U.S. governmental agencies, including the U.S. DoD, NASA, 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. The negotiation, administration and settlement of our contracts are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA, and the DCMA is responsible for the administration of 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 FAR and CAS, compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. Based on the information received to date, we do not believe the completed or ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. Legacy U.S. Government Matters 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 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 2019. 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 contract. The closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and MFRs. 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 ASBCA or the 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. Form 1s The U.S. government has issued Form 1s questioning or objecting to costs we billed to them under cost reimbursable contracts primarily related to our use of private security and our provision of containerized housing under the LogCAP III contract discussed below. As a consequence of the issuance of the Form 1s, the U.S. government has withheld payment to us on outstanding invoices, pending resolution of these matters. The U.S. government has issued and has outstanding Form 1s questioning $134 million of billed costs as of December 31, 2018 . They had previously paid us $61 million of the questioned costs related to our services on these contracts. The remaining balance of $73 million as of December 31, 2018 is included on our consolidated balance sheets in “Claims and accounts receivable". In addition, we have withheld $26 million from our subcontractors at December 31, 2018 related to these questioned costs, which is included in "Other current liabilities" on our consolidated balance sheets. While we continue to believe that the amounts we have invoiced the U.S. government are in compliance with our contract terms and that recovery is probable, we also continue to evaluate our ability to recover these amounts as new information becomes known. As is common in the industry, negotiating and resolving these matters is often an involved and lengthy process, which sometimes necessitates the filing of claims or other legal action as discussed above. Concurrent with our continued negotiations with the U.S. government, we await the rulings on the filed claims. We are unable to predict when the rulings will be issued or when the matters will be settled or resolved with the U.S. government. As a result of the Form 1s, and claims discussed above as well as open audits, we have accrued a reserve for unallowable costs of $41 million and $51 million , at December 31, 2018 and 2017 , respectively. The balance at December 31, 2018 is recorded in "Contract liabilities" and "Other liabilities" in the amounts of $26 million and $15 million , respectively. The $51 million balance at December 31, 2017 is recorded in "Contract liabilities" and "Other liabilities" in the amounts of $31 million and $20 million , respectively. Private Security Contractors. Starting in February 2007, we received a series of Form 1s from the DCAA informing us of the U.S. government's intent to deny reimbursement to us under the LogCAP III cost reimbursable contract for amounts related to the use of PSCs by KBR and a subcontractor in connection with its work for KBR providing dining facility services in Iraq between 2003 and 2006. The government challenged $56 million in billings. The government had previously paid $11 million and has withheld payments of $45 million , which as of December 31, 2018 we have recorded as due from the government related to this matter in "Claims and accounts receivable" on our consolidated balance sheets. On June 16, 2014, we received a decision from the ASBCA which agreed with KBR's position (i) that the LogCAP III contract did not prohibit the use of PSCs to provide force protection to KBR or subcontractor personnel, (ii) that there was a need for force protection and (iii) that the costs were reasonable. The ASBCA also found that the Army breached its obligation to provide force protection. The Army appealed the decision. On June 12, 2017, we received a second ruling from the ASBCA that we are entitled to recover the withheld costs in the approximate amount of $45 million plus interest related to the use of PSCs. The Army filed a notice of appeal on October 12, 2017 and filed its brief on April 10, 2018. Oral arguments occurred on January 11, 2019 and we expect a ruling from the ASBCA in mid-2019. Accordingly, we believe that we are entitled to reimbursement by the Army for the amounts charged by our subcontractors, even if they incurred costs for PSCs. At this time, we believe the likelihood that we will incur a loss related to this matter is remote, and therefore we have not accrued any loss provisions related to this matter. 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 FCA, which prohibits in general terms fraudulent billings to the U.S. government. Suits brought by private individuals are called "qui tams." We believe the costs of litigation and any damages that may be awarded in the FKTC and Burn Pit matters described below are billable under the LogCAP III. All costs billed under LogCAP III are subject to audit by the DCAA for reasonableness. First Kuwaiti Trading Company arbitration. In April 2008, FKTC, one of our LogCAP III subcontractors providing housing containers, filed arbitration with the American Arbitration Association for all its claims under various LogCAP III subcontracts. After complete hearings on all claims, the arbitration panel awarded FKTC $ $17 million plus interest for claims involving damages on lost or unreturned vehicles. In addition, we determined that we owe FKTC $32 million in connection with other subcontracts provided we are reimbursed for these same costs by the G.S. government. We previously paid FKTC $19 million and the remaining $30 million is recorded in "Other Current Liabilities" with pay-when-paid terms in the contract. As of December 31, 2018, we believe our recorded accruals and the pay-when-paid terms in our contract with FKTC are adequate in the event we are unable to favorably resolve our claims and disputes against the government. See KBR Contract Claim on FKTC containers below. Burn Pit litigation. Since November 2008, KBR has been served with more than 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. These suits were consolidated in U.S. Federal District Court in Greenbelt, Maryland. The plaintiffs claimed unspecified damages. On January 13, 2017, KBR filed a renewed motion to dismiss and for summary judgment. On July 19, 2017, the trial court issued its ruling granting KBR’s motions to dismiss on jurisdictional ground and for summary judgment. In lengthy fact findings, the trial court concluded that the military made all the relevant decisions about the use, location and operation of burn pits. The plaintiffs filed a notice of appeal, which was denied on June 20, 2018 by the Fourth Circuit Court of Appeals. The plaintiffs filed an application for writ of certiorari to the U.S. Supreme Court on September 7, 2018. On January 14, 2019, the U.S. Supreme Court denied the plaintiff's application for writ of certiorari. The matter is now resolved. Howard qui tam. In March 2011, Geoffrey Howard and Zella Hemphill filed a complaint in the U.S. District Court for the Central District of Illinois alleging that KBR mischarged the government $628 million for unnecessary materials and equipment. In October 2014, the DOJ declined to intervene and the case was partially unsealed. Discovery is ongoing in this case and is expected to continue into 2019. We believe the allegations of fraud by the relators are without merit and, as of December 31, 2018 , no amounts have been accrued. DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois against KBR and two former KBR subcontractors, including FKTC, 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, KBR submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. 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, FKTC filed a motion to dismiss, which the U.S. government opposed. Following the submission of our answer in April 2014, the U.S. government was granted a Motion to Strike certain affirmative defenses in March 2015. We do not believe this limits KBR's ability to fully defend all allegations in this matter. Discovery has been ongoing since 2015. The DOJ dropped claims on nine of the thirteen contracts on which they originally brought claims. We expect discovery on the remaining issues to be completed in early 2019. The court will set hearing and trial dates following the completion of discovery. As of December 31, 2018 , we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter in "Other liabilities" on our consolidated balance sheets. Other matters KBR Contract Claim on FKTC containers. |
Other Commitments And Contingen
Other Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Litigation and regulatory matters related to the Company’s restatement of its 2013 annual financial statements Butorin v. Blount et al , is a May 2014 shareholder derivative complaint pending in the U.S. District Court of Delaware and filed 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. This case was dismissed on August 31, 2018. We also received requests for information and a subpoena for documents from the SEC in 2014 regarding the restatement of our 2013 annual financial statements. We reached a settlement with the SEC in July 2018, which did not have a material impact on our financial statements. Other Matters Unaoil Investigation. The DOJ, SEC, and the SFO are conducting investigations of Unaoil, a Monaco based company, in relation to international projects involving several global companies, including KBR, whose interactions with Unaoil are a subject of those investigations. KBR believes it is cooperating with the DOJ, SEC, and the SFO in their investigations, including through the voluntary submission of information and responding to formal document requests. In re KBR, Inc. Securities Litigation. On October 20, 2017, lead plaintiffs filed an amended consolidated complaint asserting violations of the federal securities laws in connection with KBR's disclosures associated with the SFO's investigations of KBR and its affiliates relating to Unaoil. The Company and individual defendants filed a motion to dismiss the lawsuit on December 4, 2017. Defendants' motion to dismiss was granted on August 31, 2018, and this matter is now concluded. Tisnado vs DuPont, et al , In May 2016, KBR was served with a Fourth Amended Petition in Intervention and was brought into a lawsuit which was originally filed on November 14, 2014, in the 11th Judicial District Court of Harris County, Texas. This suit was brought by the family members of persons who died in an incident at the DuPont plant in LaPorte, Texas. We reached a settlement with the plaintiffs in 2018. This settlement was covered by insurance and did not have a material impact to our financial statements. This matter is now resolved. PEMEX and PEP Arbitration On April 6, 2017, we entered into a settlement agreement with PEMEX and PEP resolving this dispute. The settlement provided for a cash payment to Commisa of $435 million , payment by PEP of all VAT related to the settlement amount and mutual dismissals and releases of all claims related to the EPC 1 project. This matter is now resolved, and all amounts were paid by PEP in April 2017. As a result of the final settlement, we recognized additional revenues and gross profit of $35 million for the year ended December 31, 2017. 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 had 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, 2018 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 $144 million , $139 million and $154 million in 2018 , 2017 and 2016 , respectively. The current portion of deferred rent of $5 million and $4 million at December 31, 2018 and 2017 , respectively, is recorded in "Other current liabilities" on our consolidated balance sheets and the noncurrent deferred rent of $92 million and $99 million at December 31, 2018 and 2017 , 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) 2019 $ 76 2020 $ 48 2021 $ 39 2022 $ 32 2023 $ 29 Beyond 2023 $ 143 (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, 2018 , liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $48 million , comprised of $16 million included in "Accrued salaries, wages and benefits," $3 million included in "Other current liabilities" and $29 million included in "Other liabilities" all on our consolidated balance sheets. As of December 31, 2017 , liabilities for unpaid and incurred but not reported claims for all insurance programs totaled approximately $42 million , comprised of $8 million included in "Accrued salaries, wages and benefits," $9 million included in "Other current liabilities" and $25 million |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
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, 2015 $ 1,052 $ 2,070 $ 595 $ (769 ) $ (831 ) $ (13 ) Share-based compensation 18 18 — — — — Tax benefit decrease related to share-based plans 1 1 — — — — Dividends declared to shareholders (46 ) — (46 ) — — — Repurchases of common stock (4 ) — — (4 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Distributions to noncontrolling interests (9 ) — — — — (9 ) Net income (loss) (51 ) — (61 ) — — 10 Other comprehensive loss, net of tax (219 ) — — — (219 ) — Balance at December 31, 2016 $ 745 $ 2,088 $ 488 $ (769 ) $ (1,050 ) $ (12 ) Acquisition of noncontrolling interest (8 ) (8 ) — — — — Share-based compensation 12 12 — — — — Dividends declared to shareholders (45 ) — (45 ) — — — Repurchases of common stock (53 ) — — (53 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (4 ) — — — — (4 ) Net income 442 — 434 — — 8 Other comprehensive income (loss), net of tax 128 — — — 129 (1 ) Balance at December 31, 2017 $ 1,221 $ 2,091 $ 877 $ (818 ) $ (921 ) $ (8 ) Cumulative effect of change in accounting policy, net of tax of $6 144 — 144 — — — Adjusted balance at January 1, 2018 1,365 2,091 1,021 (818 ) (921 ) (8 ) Consolidation and acquisition of noncontrolling interest in Aspire entities (see Note 4) 69 69 — — — — Share-based compensation 10 10 — — — — Excess tax benefit related to share-based plans 1 1 — — — — Common stock issued upon exercise of stock options 2 2 — — — — Dividends declared to shareholders (44 ) — (44 ) — — — Repurchases of common stock (3 ) — — (3 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Issuance of convertible debt and call spread overlay 18 18 — — — — Distributions to noncontrolling interests (3 ) — — — — (3 ) Other noncontrolling interests activity 2 — — — — 2 Net income 310 — 281 — — 29 Other comprehensive income, net of tax 8 — — — 8 — Balance at December 31, 2018 $ 1,738 $ 2,190 $ 1,258 $ (817 ) $ (913 ) $ 20 Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2018 2017 2016 Accumulated foreign currency translation adjustments, net of tax of $2 $4 and $(2) $ (307 ) $ (258 ) $ (262 ) Pension and post-retirement benefits, net of tax of $213 $227 and $254 (592 ) (660 ) (785 ) Fair value of derivatives, net of tax of $3 $0 and $0 (14 ) (3 ) (3 ) Total accumulated other comprehensive loss $ (913 ) $ (921 ) $ (1,050 ) 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 at December 31, 2016 $ (262 ) $ (785 ) $ (3 ) $ (1,050 ) Other comprehensive income adjustments before reclassifications 4 100 1 105 Amounts reclassified from accumulated other comprehensive income — 25 (1 ) 24 Balance at December 31, 2017 $ (258 ) $ (660 ) $ (3 ) $ (921 ) Other comprehensive income adjustments before reclassifications (55 ) 44 (20 ) (31 ) Amounts reclassified from accumulated other comprehensive income 6 24 9 39 Balance at December 31, 2018 $ (307 ) $ (592 ) $ (14 ) $ (913 ) Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2018 December 31, 2017 Affected line item on the Consolidated Statements of Operations Pension and post-retirement benefits Amortization of actuarial loss (a) $ (28 ) $ (31 ) See (a) below Tax benefit (expense) 4 6 Provision for income taxes Net pension and post-retirement benefits $ (24 ) $ (25 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 14 to our consolidated financial statements for further discussion. Shares of common stock Shares in millions Shares Balance at December 31, 2016 175.9 Common stock issued 0.7 Balance at December 31, 2017 176.6 Common stock issued 0.8 Balance at December 31, 2018 177.4 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2016 33.1 $ 769 Treasury stock acquired, net of ESPP shares issued 3.4 49 Balance at December 31, 2017 36.5 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 $ 817 Dividends We declared dividends totaling $44 million and $45 million in 2018 and 2017 , respectively. As of December 31, 2018 and 2017 , we had accrued dividends payable of $11 million and $11 million |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2018 | |
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 shares of common stock, which replaced and terminated the August 26, 2011 share repurchase program. As of December 31, 2018 , $160 million remain available for repurchase under this authorization. The authorization does not obligate the Company to acquire any particular number of shares of common stock 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 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 common 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, Inc. 2006 Stock and Incentive Plan. The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 Year ending December 31, 2017 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,310,675 $ 14.93 $ 49 Repurchases under the existing share maintenance program 34,691 14.93 1 Withheld to cover shares 190,838 15.57 3 Total 3,536,204 $ 14.96 $ 53 |
Share-based Compensation And In
Share-based Compensation And Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans Stock Plans In 2018 , 2017 and 2016 share-based compensation awards were granted to employees under KBR share-based compensation plans. KBR Stock and Incentive Plan (Amended May 2016) 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 and increase certain sublimits. In May 2016, the KBR Stock Plan was further amended to add 4.4 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, stock value equivalent awards, or pursuant to performance awards denominated in common stock by 4.4 million . Under the terms of the KBR Stock Plan, 16.4 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 9.9 million shares can be awarded as restricted stock, restricted stock units, stock value equivalents, or pursuant to performance awards denominated in common stock. At December 31, 2018 , approximately 6.1 million shares were available for future grants under the KBR Stock Plan, of which approximately 3.3 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. The fair value of options at the date of grant are 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. The expected term of KBR options granted was based on KBR's historical experience. 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. 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. There were no stock options granted in 2018 , 2017 or 2016 . The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2018 . 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, 2017 2,351,000 $ 23.99 4.87 $ 4.60 Granted — — Exercised (120,767 ) 14.39 Forfeited (3,974 ) 17.04 Expired (135,740 ) 27.40 Outstanding at December 31, 2018 2,090,519 $ 24.34 3.88 $ 0.83 Exercisable at December 31, 2018 2,088,340 $ 24.33 3.88 $ 0.83 The total intrinsic values of options exercised for the years ended December 31, 2018 , 2017 and 2016 were $0.1 million , $0.4 million and $0.1 million , respectively. As of December 31, 2018 , there was no unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options. Stock option compensation expense was $0 million in 2018 , $1 million in 2017 and $3 million in 2016 . Total income tax benefit recognized in net income for share-based compensation arrangements was $0 million in 2018 , $0 million in 2017 and $1 million in 2016 . 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 2018 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, 2017 1,184,834 $ 15.15 Granted 678,600 15.93 Vested (628,169 ) 15.65 Forfeited (98,474 ) 15.31 Nonvested shares at December 31, 2018 1,136,791 $ 15.32 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2018 , 2017 and 2016 was $15.93 , $15.11 and $13.94 , respectively. Restricted stock compensation expense was $10 million for 2018 , $11 million for 2017 and $15 million for 2016 . Total income tax benefit recognized in net income for share-based compensation arrangements during 2018 , 2017 and 2016 was $2 million , $4 million , and $5 million , respectively. As of December 31, 2018 , there was $10 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 1.77 years. The total fair value of shares vested was $10 million in 2018 , $10 million in 2017 and $11 million in 2016 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $10 million in 2018 , $11 million in 2017 and $19 million in 2016 based on the weighted-average fair value on the date of grant. Share-based compensation expense 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 $2 million recorded to cost of revenues and $8 million 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 2018 2017 2016 Share-based compensation $ 10 $ 12 $ 18 Income tax benefit recognized in net income for share-based compensation $ 2 $ 4 $ 6 Incremental compensation cost $ 1 $ — $ 8 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 2018 , 2017 and 2016 , 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"). 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 2018 , we granted 18 million performance based award units ("Cash Performance Awards") with a three -year performance period from January 1, 2018 to December 31, 2020 . In 2017 , we granted 19 million Cash Performance Awards with a three -year performance period from January 1, 2017 to December 31, 2019 . In 2016 , we granted 22 million Cash Performance Awards with a three -year performance period from January 1, 2016 to December 31, 2018 . Cash Performance Awards forfeited, net of previous plan payout, totaled 3 million units, 5 million units, and 9 million units during the years ended December 31, 2018 , 2017 and 2016 , respectively. At December 31, 2018 , the outstanding balance for Cash Performance Awards is 47 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, 2018 , 2017 and 2016 , we recognized $15 million , $22 million and $5 million , respectively, in expense for 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 Cash Performance Awards includes $13 million recorded within "Accrued salaries, wages and benefits" and $17 million recorded within "Employee compensation and benefits" on our consolidated balance sheets as of December 31, 2018 . The liability for Cash Performance Awards includes $17 million recorded within "Accrued salaries, wages and benefits, and $15 million recorded within "Employee compensation and benefits" on our consolidated balance sheets as of December 31, 2017 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 determines 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 2018 and 2017 , our employees purchased approximately 164,000 and 173,000 |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Income Per Share | Income per Share Basic income per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income 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 per share calculations is as follows: Years ended December 31, Shares in millions 2018 2017 2016 Basic weighted average common shares outstanding 140 141 142 Stock options and restricted shares 1 — — Diluted weighted average common shares outstanding 141 141 142 For purposes of applying the two-class method in computing earnings per share, net earnings allocated to participating securities was $1.8 million , or $0.01 per share for fiscal year 2018 , $3.0 million , or $0.02 per share for fiscal year 2017 , and none for fiscal year 2016 . The diluted earnings (loss) per share calculation did not include 1.5 million , 2.1 million , and 3.0 million antidilutive weighted average shares for the years ended December 31, 2018 , 2017 and 2016 |
Financial Instruments And Risk
Financial Instruments And Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $55 million , all of which had durations of 15 days or less. We also had approximately $56 million (gross notional value) of cash flow hedges which had durations of 19 months or less. The cash flow hedges are primarily related to the British Pound and Australian Dollar. 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, 2018 and 2017 , respectively. The fair values of these derivatives are considered Level 2 under ASC 820 - Fair Value Measurement, as they are based on quoted prices directly observable in active markets. The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2018 2017 Balance Sheet Hedges - Fair Value $ — $ 5 Balance Sheet Position - Remeasurement (9 ) (16 ) Net $ (9 ) $ (11 ) Interest rate risk. The Company uses interest rate swaps to reduce interest rate risk and to manage net interest expense. On October 10, 2018 we entered into interest rate swap agreements with a notional value of $500 million to manage the interest rate exposure on our variable rate loans. By entering into swap agreements, the Company converted the LIBOR rate based liability into a fixed rate liability for a four year period. Under the swap agreements, the Company receives one month LIBOR rate and pays monthly a fixed rate of 3.055% for the term of the swaps. The fair value of the interest rate swaps at December 31, 2018 was $12 million of which $3 million is included in current liabilities and $9 million is included long-term liabilities. The unrealized net losses on these interest rate swaps was $12 million and included in "Accumulated other comprehensive income" as of December 31, 2018. 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, 2018 , 2017 and 2016 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable $ 510 $ 157 $ 667 Contract assets 383 (191 ) 192 Other current assets 93 5 98 Equity in and advances to unconsolidated affiliates 387 87 474 Deferred income taxes 300 (6 ) 294 Other assets 124 1 125 Liabilities Contract liabilities 368 9 377 Deferred income from unconsolidated affiliates 101 (101 ) — Other liabilities 171 1 172 Equity Retained Earnings 877 144 1,021 The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows: Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Statement of Operations Revenues $ 4,913 $ 4,904 $ 9 Cost of revenues (4,457 ) (4,456 ) 1 Equity in earnings of unconsolidated affiliates 81 77 4 Income before income taxes and noncontrolling interests 398 386 12 Provision for income taxes (88 ) (87 ) 1 Net income 310 300 10 EPS Basic $ 1.99 $ 1.92 $ 0.07 Diluted $ 1.99 $ 1.91 $ 0.08 As of December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Assets Accounts receivable $ 927 $ 594 $ 333 Contract assets 185 496 (311 ) Other current assets 108 103 5 Equity in and advances to unconsolidated affiliates 744 736 8 Deferred income taxes 222 229 (7 ) Other assets 147 143 4 Liabilities Contract liabilities 463 479 (16 ) Deferred income taxes 27 28 (1 ) Deferred income from unconsolidated affiliates — 95 (95 ) Other liabilities 202 202 — Equity Retained earnings 1,258 1,103 155 Accumulated other comprehensive loss (913 ) (902 ) (11 ) Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Cash flows from operating activities Net income $ 310 $ 300 $ 10 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (81 ) (77 ) (4 ) Deferred income tax (benefit) expense 28 27 1 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable, net of allowances for doubtful accounts (203 ) 130 (333 ) Contract assets 25 (286 ) 311 Contract liabilities (60 ) (77 ) 17 Other assets and liabilities (30 ) (28 ) (2 ) Total cash flows used in operating activities 165 165 — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. ASU 2016-02 is effective for public entity financial statements for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. ASU 2016-02 was further clarified and amended within ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 which included provisions that would provide us with the option to adopt the provisions of the new guidance using a modified retrospective transition approach, without adjusting the comparative periods presented. We are evaluating the impact of the new guidance on its consolidated financial statements. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application under the modified retrospective approach. We have identified approximately 2,000 leases, substantially all of which are expected to be classified as operating leases. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new ROU assets and lease liabilities on our balance sheet for our real estate, equipment and technology operating leases as well as providing significant new disclosures about our leasing activities. We currently expect to elect the short-term lease recognition exemption for all of our leases that qualify. This means, for those leases we will not recognize ROU assets or lease liabilities. Adoption of the ASU will also require significant changes to our business operations and processes including the implementation of new and modifications to existing systems to properly account for lease activity under the new standard. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecast and is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods after December 15, 2018, including interim periods within those annual periods. We are currently in the process of assessing the impact of this ASU 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. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedge Activities. This ASU is intended to improve and simplify accounting rules around hedge accounting. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demand, uncertainties and events in our business. In May 2017, the FASB issued ASU No. 2017-10, Service Concession Arrangements (Topic 853) - Determining the Customer of the Operation Services. This ASU is intended to clarify the customer of the operation services in all cases for service concession arrangements. This ASU was adopted concurrently with the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and applying the same transition method. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting. This ASU is intended to clarify the accounting treatment when there are changes to the terms or conditions of a share based payment award. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. This ASU was effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow topics with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2018 and 2017 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 2018 Total revenues $ 1,038 $ 1,267 $ 1,278 $ 1,330 $ 4,913 Gross profit 81 130 122 123 456 Equity in earnings of unconsolidated affiliates 23 10 21 27 81 Operating income (a) 181 98 103 88 470 Net income 139 62 60 49 310 Net income attributable to noncontrolling interests (1 ) (20 ) (2 ) (6 ) (29 ) Net income attributable to KBR 138 42 58 43 281 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.98 $ 0.30 $ 0.41 $ 0.31 $ 1.99 Net income attributable to KBR per share—Diluted $ 0.97 $ 0.30 $ 0.41 $ 0.31 $ 1.99 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2017 Total revenues $ 1,106 $ 1,094 $ 1,034 $ 937 $ 4,171 Gross profit 82 108 87 65 342 Equity in earnings of unconsolidated affiliates 9 32 23 8 72 Operating income 63 103 73 27 266 Net income (b) 38 79 47 278 442 Net income attributable to noncontrolling interests (1 ) (2 ) (2 ) (3 ) (8 ) Net income attributable to KBR (b) 37 77 45 275 434 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.26 $ 0.54 $ 0.32 $ 1.94 $ 3.06 Net income attributable to KBR per share—Diluted $ 0.26 $ 0.54 $ 0.32 $ 1.94 $ 3.06 (a) Operating income includes gain on consolidation of Aspire entities of $108 million that occurred in the first quarter of 2018. (b) Net income and Net income attributable to KBR in the fourth quarter of 2017 were favorably impacted by a release of a valuation allowance of $223 million on the basis of management's reassessment of the amount of its U.S. deferred tax assets that are more likely than not to be realized and an $18 million favorable impact related to the Tax Act. See Note 16 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts The table below presents valuation and qualifying accounts for continuing operations. (Dollars in Millions) Additions Descriptions Balance at Beginning Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended December 31, 2018: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 12 $ 3 $ — $ (6 ) (a) $ 9 Reserve for losses on uncompleted contracts $ 15 $ 9 $ — $ (18 ) $ 6 Reserve for potentially disallowable costs incurred under government contracts $ 60 $ 13 $ 2 (b) $ (20 ) $ 55 Year ended December 31, 2017: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 14 $ — $ — $ (2 ) (a) $ 12 Reserve for losses on uncompleted contracts $ 63 $ 4 $ — $ (52 ) $ 15 Reserve for potentially disallowable costs incurred under government contracts $ 73 $ 1 $ — $ (14 ) $ 60 Year ended December 31, 2016: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 17 $ (2 ) $ — $ (1 ) (a) $ 14 Reserve for losses on uncompleted contracts $ 60 $ 331 $ — $ (328 ) $ 63 Reserve for potentially disallowable costs incurred under government contracts $ 50 $ 10 $ 16 (b,c) $ (3 ) $ 73 (a) Receivable write-offs, net of recoveries, and reclassifications. (b) Reserves of $2 million were recorded in the 2018 acquisition of SGT; reserves of $10 million were recorded in the 2016 acquisitions of Wyle and HTSI. (c) Reserves of $3 million and $6 million |
Description of Company And Si_2
Description of Company And Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of Consolidation Our consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR and our wholly owned and majority-owned subsidiaries and 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 13 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. |
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, including recognition of estimated losses on uncompleted contracts • project revenues, award fees, costs and profits on government services 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 • valuation of assets and liabilities acquired in business combinations |
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 5 to our consolidated financial statements for our discussion on cash and equivalents. |
Revenue Recognition | The impacts of adoption were primarily related to: (1) conforming our contracts recorded over time from previously acceptable methods to the cost-to-cost percentage of completion methodology, (2) combining certain deliverables that were previously considered separate deliverables into a single performance obligation, and (3) separating certain contracts that were previously considered one deliverable into multiple performance obligations. The impacts of adoption on our opening balance sheet were primarily related to reclassification of amounts between "Accounts receivable, net of allowance for doubtful accounts" and "Contract assets" based on whether an unconditional right to consideration has been established or not, and the deferral of costs incurred and payments received to fulfill a contract, which were previously recorded in income in the period incurred or received but under the new standard will generally be capitalized and amortized over the period of contract performance. In connection with the consolidation of certain previously unconsolidated VIEs associated with the Aspire Defence project in the first quarter of 2018, we elected to adopt ASC 606 for each of the remaining unconsolidated Aspire Defence contracting entities effective January 1, 2018. As a result of the adoption by the Aspire Defence contracting entities, we identified multiple performance obligations associated with the project deliverables that were previously accounted for as a single deliverable under its contract with the MoD. In addition to the above impacts of adoption on revenue and gross margin, the cumulative effect of the adoption by Aspire Defence contracting entities resulted in sufficient additional income that had been previously recorded as "Deferred income from unconsolidated affiliates" on our consolidated balance sheets in the amount of $101 million , which was reversed and included in the cumulative effect adjustment. Also, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence contracting entities. We have availed the SEC exemption under ASU 2017-13 to defer the application of ASC 606 to our remaining unconsolidated joint ventures until January 1, 2019. We adopted ASC Topic 606 Revenue from Contracts with Customers on January 1, 2018. Our financial results for reporting periods beginning January 1, 2018 are presented under the new accounting standard, while financial results for prior periods will continue to be reported in accordance with our historical accounting policy. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied which generally occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, which is more prevalent than not, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Services Contracts For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time generally using the cost-to-cost method (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress because it best depicts the transfer of value to the customer. Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Under the typical payment terms of our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., weekly, biweekly or monthly) or upon achievement of contractual milestones. Engineering and Construction Contracts We recognize revenue over time, as performance obligations are satisfied, for substantially all of our engineering and constructions contracts due to the continuous transfer of control to the customer. For most of our engineering and construction contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability and are therefore accounted for as single performance obligations. We recognize revenue using the cost-to-cost input method, based primarily on contract costs incurred to date compared to total estimated contract costs. This method is the most accurate measure of our contract performance because it directly measures the value of the goods and services transferred to the customer. Contract costs include all direct material, labor and subcontractor costs and indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer. Project mobilization costs are generally charged to the project as incurred when they are an integrated part of the performance obligation being transferred to the client. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. The payment terms of our engineering and construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation. Variable Consideration It is common for our contracts to contain variable consideration in the form of incentive fees, performance bonuses, award fees, liquidated damages or penalties. Other contract provisions also give rise to variable consideration such as claims and unpriced change orders that may either increase or decrease the transaction price. We estimate the amount of variable consideration at the most likely amount we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance, and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Historically, warranty claims have not resulted in material costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. As a significant change in one or more of these estimates could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors, and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over-time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the 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 contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify contract assets and liabilities as current or noncurrent to the extent the revenue is expected to be recognized in excess of one year from the balance sheet date. Practical Expedients and Exemptions Upon the adoption of ASC 606, we utilized certain practical expedients and exemptions as follows: • We applied the modified-retrospective method upon adoption of ASC Topic 606 which allowed the new accounting standard to be applied only to contracts that were not considered substantially complete as of January 1, 2018. • In cases where we have an unconditional right to consideration from a customer in an amount that corresponds directly with the value of our performance completed to date, we recognize revenue in the amount to which we have a right to invoice for services performed. • We do not adjust the contract price for the effects of a significant financing component if the company expects, at contract inception, that the period between when the company transfers a service to a customer and when the customer pays for that service will be one year or less. • We have availed ourselves of the SEC Exemption under ASU 2017-13 to defer the application of ASC 606 to most of our unconsolidated joint ventures for one year. |
Gross Profit | Gross Profit Gross profit represents revenues less the cost of revenues, which includes business segment overhead costs directly attributable to execution of contracts by the business segment. |
Contract Costs | Contract Costs |
General and Administrative Expenses | General and Administrative Expenses |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded based on contracted prices when we obtain an unconditional right to payment under the terms of our contracts. We establish an allowance for doubtful accounts based on the assessment of our 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. In 2018, we entered into a factoring agreement to sell certain receivables to unrelated third-party financial institutions. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivable to the purchaser. Our factoring agreement does not allow for recourse in the event of uncollectibility, and we do not retain any controlling interest in the underlying accounts receivable once sold. We derecognized $14 million of accounts receivable as of December 31, 2018 under this factoring agreement. The fees associated with sale of receivables under this agreement were not material in 2018. |
Property, Plant and Equipment | 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 10 |
Acquisitions | Acquisitions |
Goodwill and Intangible Assets | Goodwill and Intangible Assets 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, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of goodwill impairment. The second step compares the implied fair value of the reporting unit goodwill to the carrying value of the reporting unit 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. We completed our annual goodwill impairment test in the fourth quarter of 2018 and determined that none of the goodwill was impaired. See Note 11 to our consolidated financial statements for reported goodwill in each of our segments. We had intangible assets with net carrying values of $516 million and $239 million as of December 31, 2018 and 2017 , respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. As of December 31, 2018 , none of our intangible assets with indefinite lives were impaired. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years . See Note 11 |
Investments | 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 or 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 13 to our consolidated financial statements for our discussion on equity method 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 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 PFIs, 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 13 to our consolidated financial statements for our discussion on variable interest entities. |
Deconsolidation of a Subsidiary | Deconsolidation of a Subsidiary |
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 (typically annually) 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, participant demographics or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 25 years |
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. See Note 16 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. |
Derivative Instruments | Derivative Instruments We enter into derivative financial transactions to hedge existing or forecasted risk to changing foreign currency exchange rates and interest rate risk on variable rate debt. 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 designated as hedges in accordance with 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, 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 23 to our consolidated financial statements for our discussion on derivative instruments. |
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. |
Noncontrolling interest | Noncontrolling interest |
Foreign currency | 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. |
Share-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 of common stock 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 21 |
Commitments and Contingencies | Commitments and Contingencies |
Description of Company And Si_3
Description of Company And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable $ 510 $ 157 $ 667 Contract assets 383 (191 ) 192 Other current assets 93 5 98 Equity in and advances to unconsolidated affiliates 387 87 474 Deferred income taxes 300 (6 ) 294 Other assets 124 1 125 Liabilities Contract liabilities 368 9 377 Deferred income from unconsolidated affiliates 101 (101 ) — Other liabilities 171 1 172 Equity Retained Earnings 877 144 1,021 The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows: Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Statement of Operations Revenues $ 4,913 $ 4,904 $ 9 Cost of revenues (4,457 ) (4,456 ) 1 Equity in earnings of unconsolidated affiliates 81 77 4 Income before income taxes and noncontrolling interests 398 386 12 Provision for income taxes (88 ) (87 ) 1 Net income 310 300 10 EPS Basic $ 1.99 $ 1.92 $ 0.07 Diluted $ 1.99 $ 1.91 $ 0.08 As of December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Assets Accounts receivable $ 927 $ 594 $ 333 Contract assets 185 496 (311 ) Other current assets 108 103 5 Equity in and advances to unconsolidated affiliates 744 736 8 Deferred income taxes 222 229 (7 ) Other assets 147 143 4 Liabilities Contract liabilities 463 479 (16 ) Deferred income taxes 27 28 (1 ) Deferred income from unconsolidated affiliates — 95 (95 ) Other liabilities 202 202 — Equity Retained earnings 1,258 1,103 155 Accumulated other comprehensive loss (913 ) (902 ) (11 ) Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Cash flows from operating activities Net income $ 310 $ 300 $ 10 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (81 ) (77 ) (4 ) Deferred income tax (benefit) expense 28 27 1 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable, net of allowances for doubtful accounts (203 ) 130 (333 ) Contract assets 25 (286 ) 311 Contract liabilities (60 ) (77 ) 17 Other assets and liabilities (30 ) (28 ) (2 ) Total cash flows used in operating activities 165 165 — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. ASU 2016-02 is effective for public entity financial statements for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. ASU 2016-02 was further clarified and amended within ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 which included provisions that would provide us with the option to adopt the provisions of the new guidance using a modified retrospective transition approach, without adjusting the comparative periods presented. We are evaluating the impact of the new guidance on its consolidated financial statements. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application under the modified retrospective approach. We have identified approximately 2,000 leases, substantially all of which are expected to be classified as operating leases. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new ROU assets and lease liabilities on our balance sheet for our real estate, equipment and technology operating leases as well as providing significant new disclosures about our leasing activities. We currently expect to elect the short-term lease recognition exemption for all of our leases that qualify. This means, for those leases we will not recognize ROU assets or lease liabilities. Adoption of the ASU will also require significant changes to our business operations and processes including the implementation of new and modifications to existing systems to properly account for lease activity under the new standard. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecast and is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods after December 15, 2018, including interim periods within those annual periods. We are currently in the process of assessing the impact of this ASU 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. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedge Activities. This ASU is intended to improve and simplify accounting rules around hedge accounting. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demand, uncertainties and events in our business. In May 2017, the FASB issued ASU No. 2017-10, Service Concession Arrangements (Topic 853) - Determining the Customer of the Operation Services. This ASU is intended to clarify the customer of the operation services in all cases for service concession arrangements. This ASU was adopted concurrently with the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and applying the same transition method. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting. This ASU is intended to clarify the accounting treatment when there are changes to the terms or conditions of a share based payment award. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. This ASU was effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow topics with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The adoption of this ASU was not material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business. |
Schedule Of Revenues And Receivables From Major Customers | The following tables present summarized data related to our transactions with the U.S. government and U.K government. Revenues from major customers: Years ended December 31, Dollars in millions 2018 2017 2016 U.S. government $ 2,610 $ 1,914 $ 1,090 U.K. government $ 622 $ 66 $ 62 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2018 2017 2016 U.S. government revenues percentage 53 % 46 % 26 % U.S. government receivables percentage 57 % 32 % 27 % U.K. government revenues percentage 13 % 2 % 2 % U.K. government receivables percentage 4 % 1 % 1 % |
Schedule Of Other Current Assets | The components of "Other current assets" on our consolidated balance sheets as of December 31, 2018 and 2017 are presented below: December 31, Dollars in millions 2018 2017 Prepaid expenses $ 49 $ 53 Value-added tax receivable 29 11 Advances to subcontractors 5 — Other miscellaneous assets 25 29 Total other current assets $ 108 $ 93 |
Components Of Other Current Liabilities | The components of "Other current liabilities" on our consolidated balance sheets as of December 31, 2018 and 2017 are presented below: December 31, Dollars in millions 2018 2017 Current maturities of long-term debt $ 22 $ — Reserve for estimated losses on uncompleted contracts (a) 6 15 Retainage payable 33 30 Income taxes payable 30 17 Restructuring reserve — 9 Taxes payable not based on income 6 11 Value-added tax payable 33 13 Insurance payable 2 9 Dividend payable 11 11 Other miscellaneous liabilities 36 42 Total other current liabilities $ 179 $ 157 (a) See Note 2 to our consolidated financial statements for further discussion on significant reserves for estimated losses on uncompleted contracts. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, general and administrative expenses, acquisition and integration related costs, gain on disposition of assets, gain on consolidation of Aspire entities, 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 2018 2017 2016 Revenues: Government Services $ 3,457 $ 2,193 $ 1,359 Technology 297 269 309 Hydrocarbons Services 1,157 1,671 2,390 Other — — — Subtotal 4,911 4,133 4,058 Non-strategic Business 2 38 210 Total $ 4,913 $ 4,171 $ 4,268 Gross profit (loss): Government Services $ 280 $ 155 $ 137 Technology 85 76 80 Hydrocarbons Services 99 111 — Other — — — Subtotal 464 342 217 Non-strategic Business (8 ) — (105 ) Total $ 456 $ 342 $ 112 Equity in earnings of unconsolidated affiliates: Government Services $ 32 $ 43 $ 39 Technology — — — Hydrocarbons Services 49 29 52 Other — — — Subtotal 81 72 91 Non-strategic Business — — — Total $ 81 $ 72 $ 91 General and administrative expenses: Government Services $ (39 ) (24 ) (13 ) Technology (3 ) (3 ) (5 ) Hydrocarbons Services (27 ) (26 ) (27 ) Other (97 ) (94 ) (88 ) Subtotal (166 ) (147 ) (133 ) Non-strategic Business — — — Total $ (166 ) (147 ) (133 ) Acquisition and integration related costs: Government Services $ (7 ) — (10 ) Technology — — — Hydrocarbons Services — — — Other — — — Subtotal (7 ) — (10 ) Non-strategic Business — — — Total $ (7 ) — (10 ) Asset impairment and restructuring charges (Note 12): Government Services $ — $ — $ (1 ) Technology — — — Hydrocarbons Services — (6 ) (31 ) Other — — (7 ) Subtotal — (6 ) (39 ) Non-strategic Business — — — Total $ — $ (6 ) $ (39 ) (Loss) Gain on disposition of assets: Government Services 4 — — Technology — — — Hydrocarbons Services (2 ) 5 2 Other (4 ) — 1 Subtotal (2 ) 5 3 Non-strategic Business — — 4 Total (2 ) 5 7 Gain (Loss) on consolidation of Aspire entities: Government Services 113 — — Technology — — — Hydrocarbons Services — — — Other (5 ) — — Subtotal 108 — — Non-strategic Business — — — Total 108 — — Segment operating income (loss): Government Services $ 382 $ 173 $ 152 Technology 82 73 74 Hydrocarbons Services 120 113 (4 ) Other (106 ) (93 ) (93 ) Subtotal 478 266 129 Non-strategic Business (8 ) — (101 ) Total $ 470 $ 266 $ 28 Years ended December 31, Dollars in millions 2018 2017 2016 Capital expenditures: Government Services $ 11 $ 4 $ 2 Technology — — — Hydrocarbons Services 1 2 5 Other 5 2 4 Subtotal 17 8 11 Non-strategic Business — — — Total $ 17 $ 8 $ 11 Depreciation and amortization: Government Services $ 42 $ 27 $ 16 Technology 3 3 3 Hydrocarbons Services 10 10 16 Other 8 8 10 Subtotal 63 48 45 Non-strategic Business — — — Total $ 63 $ 48 $ 45 |
Schedule of Balance Sheet Information by Operating Segment | December 31, Dollars in millions 2018 2017 Total assets: Government Services $ 2,804 $ 1,600 Technology 204 210 Hydrocarbons Services 1,317 1,065 Other 746 792 Subtotal 5,071 3,667 Non-strategic Business 1 7 Total $ 5,072 $ 3,674 Goodwill (Note 11): Government Services $ 977 $ 679 Technology 51 51 Hydrocarbons Services 237 238 Other — — Subtotal 1,265 968 Non-strategic Business — — Total $ 1,265 $ 968 Equity in and advances to related companies (Note 13): Government Services $ 114 $ 41 Technology — — Hydrocarbons Services 630 346 Other — — Subtotal 744 387 Non-strategic Business — — Total $ 744 $ 387 |
Schedule of Selected Geographic Information | Years ended December 31, Dollars in millions 2018 2017 2016 Revenues: United States $ 2,260 $ 1,986 $ 2,111 Middle East 884 836 778 Europe 989 480 498 Australia 329 334 376 Canada 21 224 145 Africa 133 121 182 Asia 190 125 143 Other countries 107 65 35 Total $ 4,913 $ 4,171 $ 4,268 December 31, Dollars in millions 2018 2017 Property, plant & equipment, net: United States $ 51 $ 60 United Kingdom 50 52 Other 20 18 Total $ 121 $ 130 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Revenue by contract type was as follows: Year Ended December 31, 2018 Hydrocarbons Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total Fixed Price $ 1,034 $ 282 $ 179 $ 2 $ 1,497 Cost Reimbursable 2,423 15 978 — 3,416 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Year Ended December 31, 2018 Hydrocarbons Total by Countries/Regions Dollars in millions Government Services Technology Hydrocarbons Services Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Year Ended December 31, Dollars in millions 2018 By Service / Product Types Government Services Space and Mission Solutions $ 651 Engineering 1,141 Logistics 1,665 Total Government Services 3,457 Hydrocarbons Technology 297 Hydrocarbons Services Onshore 931 Offshore 90 Industrial Services 68 Consulting 66 Other 2 Total Hydrocarbons Services 1,157 Total Hydrocarbons 1,454 Non-strategic business 2 Total net revenue $ 4,913 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for this acquisition and the fair value of the assets acquired and liabilities assumed as of the acquisition date. Dollars in millions SGT Fair value of total consideration transferred $ 365 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 11 Accounts receivable 52 Contract assets 21 Other current assets 2 Total current assets 86 Property, plant and equipment, net 2 Equity in and advances to unconsolidated affiliates 2 Intangible assets 74 Deferred income taxes 6 Other assets 8 Total assets 178 Accounts payable 27 Contract liabilities 6 Accrued salaries, wages and benefits 28 Other current liabilities 5 Total current liabilities 66 Employee compensation and benefits 2 Other liabilities 2 Total liabilities 70 Goodwill $ 257 Dollars in millions Aspire Fair value of Aspire Defence subcontracting entities $ 230 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 197 Accounts receivable 14 Other current assets 12 Total current assets 223 Property, plant and equipment, net 9 Intangible assets 234 Total assets 466 Accounts payable 53 Contract liabilities 161 Accrued salaries, wages and benefits 1 Other current liabilities 21 Total current liabilities 236 Deferred income taxes 42 Total liabilities 278 Goodwill $ 42 Noncontrolling interests $ 115 |
Business Acquisition, Pro Forma Information | The supplemental pro forma financial information presented below does not include any anticipated cost savings or expected realization of other synergies associated with the transaction. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisition occurred on January 1, 2015, nor is it indicative of future results of operations. Year ended December 31, Dollars in millions, except per share data 2016 (Unaudited) Revenue $ 5,129 Net income (loss) attributable to KBR (23 ) Diluted earnings per share $ (0.16 ) Years ended December 31, Dollars in millions 2018 2017 (Unaudited) Revenue $ 5,060 $ 5,057 Net income attributable to KBR 367 344 Diluted earnings per share $ 2.59 $ 2.42 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of our cash and equivalents balance are as follows: December 31, 2018 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 123 $ 104 $ 227 Short-term investments (c) 87 107 194 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 315 3 318 Total $ 525 $ 214 $ 739 December 31, 2017 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 112 $ 124 $ 236 Short-term investments (c) 82 60 142 Cash and equivalents held in consolidated joint ventures 59 2 61 Total $ 253 $ 186 $ 439 (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) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The components of our accounts receivable, net of allowance for doubtful accounts are as follows: December 31, 2018 Dollars in millions Unbilled Trade & Other Total Government Services $ 266 $ 334 $ 600 Technology 11 62 73 Hydrocarbons Services 69 185 254 Subtotal 346 581 927 Non-strategic Business — — — Total $ 346 $ 581 $ 927 December 31, 2017 Dollars in millions Retainage Trade & Other Total Government Services $ 6 $ 189 $ 195 Technology — 72 72 Hydrocarbons Services 53 186 239 Subtotal 59 447 506 Non-strategic Business 4 — 4 Total $ 63 $ 447 $ 510 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Our contract assets by business segment are as follows: December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 123 $ 274 $ (151 ) (55 )% Technology 19 39 (20 ) (51 )% Hydrocarbons Services 43 70 (27 ) (39 )% Subtotal 185 383 (198 ) (52 )% Non-strategic Business — — — N/A Total $ 185 $ 383 $ (198 ) (52 )% December 31, Dollars in millions 2018 2017 $ Change % Change Government Services $ 261 $ 85 $ 176 207 % Technology 98 61 37 61 % Hydrocarbons Services 100 214 (114 ) (53 )% Subtotal 459 360 99 28 % Non-strategic Business 4 8 (4 ) (50 )% Total $ 463 $ 368 $ 95 26 % |
Unapproved Change Orders and_2
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contractors [Abstract] | |
Schedule of Unapproved Claims and Change Orders | The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2018 2017 Amounts included in project estimates-at-completion at January 1, $ 924 $ 294 Increase, net of foreign currency effect 53 647 Approved change orders, net of foreign currency effect (4 ) (17 ) Amounts included in project estimates-at-completion at December 31, $ 973 $ 924 Amounts recognized over time based on progress at December 31, $ 945 $ 826 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Land N/A $ 5 $ 7 Buildings and property improvements 1-35 122 118 Equipment and other 1-25 349 334 Total 476 459 Less accumulated depreciation (355 ) (329 ) Net property, plant and equipment $ 121 $ 130 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Government Services Technology Hydrocarbons Services Total Balance as of January 1, 2017 $ 674 $ 48 $ 237 $ 959 Goodwill acquired during the period 1 — — 1 Purchase price adjustment 4 — — 4 Foreign currency translation — 3 1 4 Balance as of December 31, 2017 $ 679 $ 51 $ 238 $ 968 Goodwill acquired during the period $ 299 $ — $ — $ 299 Purchase price adjustment 2 — — 2 Foreign currency translation (3 ) — (1 ) (4 ) Balance as of December 31, 2018 $ 977 $ 51 $ 237 $ 1,265 |
Cost And Accumulated Amortization Of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 31, 2018 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 272 (69 ) 203 Developed technologies 22 61 (34 ) 27 Contract backlog 20 249 (36 ) 213 Other 14 24 (12 ) 12 Total intangible assets $ 667 $ (151 ) $ 516 December 31, 2017 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 206 (57 ) 149 Developed technologies 17 45 (33 ) 12 Contract backlog 3 23 (20 ) 3 Other 15 26 (12 ) 14 Total intangible assets $ 361 $ (122 ) $ 239 |
Amortization Expense Of Intangible Assets | Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2018 2017 2016 Intangibles amortization expense $ 32 $ 21 $ 14 |
Expected Amortization Expense Of Intangibles | Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2019 $ 32 2020 $ 32 2021 $ 27 2022 $ 22 2023 $ 22 Beyond 2023 $ 320 |
Asset Impairment and Restruct_2
Asset Impairment and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Information related to "Asset impairment and restructuring charges" on our consolidated statements of operations is presented below: Years ended December 31, Dollars in millions 2018 2017 2016 Asset impairment: Government Services $ — $ — $ — Technology — — — Hydrocarbons Services — — 10 Other — — 7 Subtotal — — 17 Non-strategic Business — — — Total $ — $ — $ 17 Restructuring charges: Government Services $ — $ — $ 1 Technology — — 1 Hydrocarbons Services — 6 20 Other — — — Subtotal — 6 22 Non-strategic Business — — — Total $ — $ 6 $ 22 Asset impairment and restructuring charges: Total $ — $ 6 $ 39 |
Equity Method Investments And_2
Equity Method Investments And Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity In Earnings of Unconsolidated Affiliates | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2018 2017 Beginning balance $ 387 $ 369 Cumulative effect of change in accounting policy (a) 87 — Adjusted balance at January 1, 474 369 Equity in earnings of unconsolidated affiliates 81 72 Distributions of earnings of unconsolidated affiliates (b) (75 ) (62 ) Payments from (advances to) unconsolidated affiliates, net (12 ) (11 ) Investments (c) 344 — Foreign currency translation adjustments (33 ) 12 Other (35 ) 5 Balance before reclassification 744 385 Reclassification of excess distributions (b) — 11 Recognition of excess distributions (b) — (9 ) Balance at December 31, $ 744 $ 387 (a) As further discussed in Note 1 to our consolidated financial statements, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence project joint ventures. (b) From 2014 through 2017, we received cash dividends in excess of the carrying value of one of our unconsolidated joint ventures. We have no obligation to return any portion of the cash dividends received. We record excess dividends as "Deferred income from unconsolidated affiliates" on our consolidated balance sheets and recognize these dividends as earnings are generated by the investment. As further discussed in Note 1 to our consolidated financial statements, the adoption of ASC Topic 606 by this unconsolidated joint venture resulted in the reversal of the "Deferred income from unconsolidated affiliates" balance of $101 million in our consolidated balance sheets as of December 31, 2017 in the cumulative effect adjustment of the change in accounting policy. (c) In 2018, investments represent our contributions to fund JKC, as described in Note 8 . |
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 2018 2017 Current assets $ 3,526 $ 3,107 Noncurrent assets 3,121 3,250 Total assets $ 6,647 $ 6,357 Current liabilities $ 1,277 $ 2,006 Noncurrent liabilities 3,212 3,508 Total liabilities $ 4,489 $ 5,514 Statements of Operations Years ended December 31, Dollars in millions 2018 2017 2016 Revenues $ 3,190 $ 5,781 $ 5,877 Operating income $ 197 $ 278 $ 365 Net income $ 173 $ 145 $ 192 4 . to our consolidated financial statements for discussion of the consolidation of the Aspire Defence subcontracting entities. December 31, 2018 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 15 $ 8 Aspire Defence Limited $ 80 $ 5 JKC joint venture (Ichthys LNG project) $ 376 $ 32 U.K. Road project joint ventures $ 37 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 42 $ 1 Dollars in millions December 31, 2017 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 26 $ 10 Aspire Defence contracting and subcontracting entities $ 10 $ 125 JKC joint venture (Ichthys LNG project) $ 140 $ 25 U.K. Road project joint ventures $ 36 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 38 $ 1 |
Schedule of Related Party Transactions | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2018 and 2017 are as follows: December 31, Dollars in millions 2018 2017 Accounts receivable, net of allowance for doubtful accounts (a) $ 43 $ 28 Contract assets (b) $ 1 $ 2 Contract liabilities (b) $ 38 $ 27 Accounts payable $ 2 $ — (a) Includes a $4 million and $4 million net receivable from the Brown & Root Industrial Services joint venture at December 31, 2018 and 2017 , respectively. (b) Reflects contract assets and contract liabilities primarily related to joint ventures within our HS business segment as discussed above. |
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, 2018 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 13 $ 19 Fasttrax Limited (Fasttrax project) $ 49 $ 34 Aspire Defence subcontracting entities (Aspire Defence project) $ 589 $ 324 Dollars in millions December 31, 2017 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 15 $ 48 Fasttrax Limited (Fasttrax project) $ 57 $ 47 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
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 2018 2017 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 77 $ 2,046 $ 75 $ 1,970 Acquisitions — 24 — — Service cost — 2 — 1 Interest cost 2 50 3 53 Foreign currency exchange rate changes — (114 ) — 186 Actuarial (gain) loss (4 ) (184 ) 3 (78 ) Other — — — (1 ) Plan amendments — 20 — — Benefits paid (4 ) (93 ) (4 ) (85 ) Projected benefit obligations at end of period $ 71 $ 1,751 $ 77 $ 2,046 Change in plan assets: Fair value of plan assets at beginning of period $ 59 $ 1,673 $ 56 $ 1,463 Acquisitions — 24 — — Actual return on plan assets (3 ) (28 ) 7 119 Employer contributions 2 39 1 36 Foreign currency exchange rate changes — (96 ) — 141 Benefits paid (4 ) (93 ) (4 ) (85 ) Other — (1 ) (1 ) (1 ) Fair value of plan assets at end of period $ 54 $ 1,518 $ 59 $ 1,673 Funded status $ (17 ) $ (233 ) $ (18 ) $ (373 ) |
Schedule Of Amounts Recognized On Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2018 2017 Amounts recognized on the consolidated balance sheets Pension obligations $ 17 $ 233 $ 18 $ 373 |
Components Of Net Periodic Benefit Cost | United States Int’l United States Int’l United States Int’l Dollars in millions 2018 2017 2016 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 1 $ — $ 1 Interest cost 2 50 3 53 3 63 Expected return on plan assets (3 ) (80 ) (3 ) (77 ) (3 ) (87 ) Settlements/curtailments — — — — 1 — Recognized actuarial loss 2 26 1 30 1 28 Net periodic benefit cost $ 1 $ (2 ) $ 1 $ 7 $ 2 $ 5 |
Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) | The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 and 2017 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2018 2017 Unrecognized actuarial loss, net of tax of $10 and $203, $10 and $217, respectively $ 23 $ 569 $ 22 $ 638 Total in accumulated other comprehensive loss $ 23 $ 569 $ 22 $ 638 |
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 2019 are as follows: Dollars in millions United States Int’l Actuarial loss $ 1 $ 14 Total $ 1 $ 14 |
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 2018 2017 2016 Discount rate 3.33 % 2.50 % 3.73 % 2.60 % 3.42 % 3.75 % Expected return on plan assets 6.01 % 5.20 % 6.01 % 5.40 % 5.00 % 6.10 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2018 2017 Discount rate 3.98 % 2.90 % 3.33 % 2.50 % |
Schedule Of Allocation Of Plan Assets | The target asset allocation for our U.S. and International plans for 2019 is as follows: Asset Allocation 2019 Targeted United States Int'l Equity funds and securities 51 % 28 % Fixed income funds and securities 39 % 52 % Hedge funds — % — % Real estate funds 1 % 2 % Other 9 % 18 % Total 100 % 100 % 2019 and 2018 , by asset class, are as follows: Domestic Plans 2019 Targeted 2018 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents — % — % — % — % Equity funds and securities 50 % 53 % 50 % 53 % Fixed income funds and securities 37 % 40 % 37 % 40 % Real estate funds 1 % 1 % 1 % 1 % Other 9 % 9 % 9 % 9 % 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, 2018 United States plan assets Investments measured at net asset value (a) $ 54 $ — $ — $ — Total United States plan assets $ 54 $ — $ — $ — International plan assets Equities $ 84 $ — $ — $ 84 Fixed income 2 — — 2 Real estate 1 — — 1 Cash and cash equivalents 8 8 — — Other 74 35 — 39 Investments measured at net asset value (a) 1,349 — — — Total international plan assets $ 1,518 $ 43 $ — $ 126 Total plan assets at December 31, 2018 $ 1,572 $ 43 $ — $ 126 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2017 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Total United States plan assets $ 59 $ — $ — $ — International plan assets Equities $ 60 $ 34 $ — $ 26 Fixed income 5 — — 5 Real estate 3 — — 3 Cash and cash equivalents 8 8 — — Other 40 — — 40 Investments measured at net asset value (a) 1,557 — — — Total international plan assets $ 1,673 $ 42 $ — $ 74 Total plan assets at December 31, 2017 $ 1,732 $ 42 $ — $ 74 The range of targeted asset allocations for our International plans for 2019 and 2018 , by asset class, are as follows: International Plans 2019 Targeted 2018 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 60 % — % 60 % Fixed income funds and securities — % 99 % — % 100 % Hedge funds — % 34 % — % 35 % Real estate funds — % 10 % — % 10 % Other — % 20 % — % 20 % |
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: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2016 $ 82 $ 16 $ 12 $ 4 $ 50 Return on assets held at end of year (1 ) 3 — (1 ) (3 ) Return on assets sold during the year 3 — — — 3 Purchases, sales and settlements (15 ) 5 (8 ) (1 ) (11 ) Foreign exchange impact 5 2 1 1 1 Balance as of December 31, 2017 $ 74 $ 26 $ 5 $ 3 $ 40 Return on assets held at end of year (3 ) 1 — (1 ) (3 ) Return on assets sold during the year 8 — — 1 7 Purchases, sales and settlements, net 39 11 (3 ) (2 ) 33 Transfers 13 48 — 48,000,000 — 48 (35 ) Foreign exchange impact (5 ) (2 ) — — (3 ) Balance as of December 31, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 |
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 2019 $ 5 $ 63 2020 $ 5 $ 65 2021 $ 5 $ 66 2022 $ 5 $ 68 2023 $ 5 $ 70 Years 2024 - 2028 $ 25 $ 374 |
Debt And Other Credit Facilit_2
Debt And Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The balances of the debt and equity components of the Convertible Notes as of December 31, 2018 is as follows: Dollars in millions December 31, 2018 Debt component: Face amount due at maturity $ 350 Unamortized debt discount (57 ) Unamortized debt issuance costs (1) (8 ) Debt component - net carrying value $ 285 Equity component - net carrying value (2) $ 57 (1) Issuance costs of approximately $9 million related to the Convertible Notes were paid to the initial purchasers and third parties. Approximately $8 million of issuance costs of the Convertible Notes was allocated to the liability component and recorded as a contra-liability, presented against the carrying amount of the Convertible Notes, of which $8 million remains unamortized as of December 31, 2018. The debt issuance costs are being amortized to expense over the term of the Convertible Notes using the effective interest method. Interest expense related to the debt issuance costs was not material in 2018. (2) Approximately $1 million of issuance costs paid to the initial purchasers of the Convertible Notes and third parties was allocated to the equity component and recorded net against additional paid-in capital on the consolidated balance sheets. Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Performance Letter of Credit Fee Commitment Fee Greater than or equal to 4.00 to 1.00 3.25 % 2.25 % 1.95 % 0.450 % Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 3.00 % 2.00 % 1.80 % 0.400 % Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 2.75 % 1.75 % 1.65 % 0.375 % Less than 2.00 to 1.00 2.50 % 1.50 % 1.50 % 0.350 % Dollars in millions December 31, 2018 December 31, 2017 Revolving credit agreement, terminated April 2018 $ — $ 470 Term Loan A 190 — Term Loan B 796 — Convertible Notes 350 — Unamortized debt issuance costs - Term Loan A (5 ) — Unamortized debt issuance costs and discount - Term Loan B (18 ) — Unamortized debt issuance costs and discount - Convertible Notes (65 ) — Total long-term debt 1,248 470 Less: current portion 22 — Total long-term debt, net of current portion $ 1,226 $ 470 |
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, 2018 : Dollars in millions Payments Due 2019 $ 10 2020 $ 11 2021 $ 5 2022 $ 1 2023 $ — Beyond 2023 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 2016 United States $ 44 $ 84 $ (250 ) Foreign: United Kingdom 203 40 55 Australia 10 (28 ) 38 Canada (2 ) 15 (8 ) Middle East 61 42 66 Africa 13 20 76 Other 69 76 56 Subtotal 354 165 283 Total $ 398 $ 249 $ 33 |
Taxes On Multiple Financial Statements | The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2018 2017 2016 (Provision) Benefit for income taxes $ (88 ) $ 193 $ (84 ) Shareholders' equity, foreign currency translation adjustment (2 ) 6 (3 ) Shareholders' equity, pension and post-retirement benefits (14 ) (27 ) 45 Shareholders' equity, changes in fair value of derivatives 3 — — Total income taxes $ (101 ) $ 172 $ (42 ) |
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 Year-ended December 31, 2018 Federal $ (1 ) $ (6 ) $ (7 ) Foreign (58 ) (20 ) (78 ) State and other (2 ) (1 ) (3 ) Provision for income taxes $ (61 ) $ (27 ) $ (88 ) Year-ended December 31, 2017 Federal $ (6 ) $ 230 $ 224 Foreign (122 ) 92 (30 ) State and other (2 ) 1 (1 ) (Provision) benefit for income taxes $ (130 ) $ 323 $ 193 Year-ended December 31, 2016 Federal $ (5 ) $ 9 $ 4 Foreign (61 ) (26 ) (87 ) State and other — (1 ) (1 ) Provision for income taxes $ (66 ) $ (18 ) $ (84 ) |
Components Of Foreign Income Tax | The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2018 2017 2016 United Kingdom $ (32 ) $ (7 ) $ (6 ) Australia (10 ) 6 — Canada (6 ) — 1 Middle East (16 ) (10 ) (24 ) Africa (1 ) 1 (22 ) Other (13 ) (20 ) (36 ) Foreign provision for income taxes $ (78 ) $ (30 ) $ (87 ) |
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 21% for 2018 and the statutory rate of 35% for 2017 and 2016 as a result of the following: Years ended December 31, 2018 2017 2016 U.S. statutory federal rate, expected (benefit) provision 21 % 35 % 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (4 ) (5 ) (28 ) Noncontrolling interests and equity earnings (1 ) (2 ) (28 ) State and local income taxes, net of federal benefit 1 1 — Other permanent differences, net 4 (8 ) 54 Contingent liability accrual 3 (2 ) 41 U.S. taxes on foreign unremitted earnings — — 174 Change in valuation allowance (2 ) (90 ) 3 U.S. tax reform — (7 ) — U.K. statutory rate change — — 4 Effective tax rate on income from operations 22 % (78 )% 255 % |
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 2018 2017 Deferred tax assets: Employee compensation and benefits $ 95 $ 122 Foreign tax credit carryforwards 267 279 Loss carryforwards 103 90 Insurance accruals 9 8 Allowance for bad debt 2 3 Accrued liabilities 23 30 Construction contract accounting — 5 Other 3 15 Total gross deferred tax assets 502 552 Valuation allowances (207 ) (217 ) Net deferred tax assets 295 335 Deferred tax liabilities: Construction contract accounting (1 ) — Intangible amortization (57 ) (20 ) Indefinite-lived intangible amortization (41 ) (31 ) Fixed asset depreciation 1 2 Accrued foreign tax credit carryforwards (2 ) (4 ) Total gross deferred tax liabilities (100 ) (53 ) Deferred income tax (liabilities) assets, net $ 195 $ 282 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2018 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 363 $ (161 ) $ 202 United Kingdom (10 ) — (10 ) Australia 11 (1 ) 10 Canada 28 (24 ) 4 Other 10 (21 ) (11 ) Total $ 402 $ (207 ) $ 195 |
Summary of Operating Loss Carryforwards | At December 31, 2018 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2018 Expiration Foreign tax credit carryforwards $ 252 2019-2028 Foreign net operating loss carryforwards $ 147 2019-2038 Foreign net operating loss carryforwards $ 124 Indefinite State net operating loss carryforwards $ 735 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 2018 2017 2016 Balance at January 1, $ 184 $ 261 $ 257 Increases related to current year tax positions 1 2 2 Increases related to tax positions from acquisitions — — 14 Increases related to prior year tax positions 18 1 10 Decreases related to prior year tax positions (45 ) (1 ) (4 ) Settlements (62 ) (80 ) (10 ) Lapse of statute of limitations (2 ) (1 ) (6 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (4 ) 2 (2 ) Balance at December 31, $ 90 $ 184 $ 261 |
Other Commitments And Conting_2
Other Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2019 $ 76 2020 $ 48 2021 $ 39 2022 $ 32 2023 $ 29 Beyond 2023 $ 143 (a) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2015 $ 1,052 $ 2,070 $ 595 $ (769 ) $ (831 ) $ (13 ) Share-based compensation 18 18 — — — — Tax benefit decrease related to share-based plans 1 1 — — — — Dividends declared to shareholders (46 ) — (46 ) — — — Repurchases of common stock (4 ) — — (4 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Distributions to noncontrolling interests (9 ) — — — — (9 ) Net income (loss) (51 ) — (61 ) — — 10 Other comprehensive loss, net of tax (219 ) — — — (219 ) — Balance at December 31, 2016 $ 745 $ 2,088 $ 488 $ (769 ) $ (1,050 ) $ (12 ) Acquisition of noncontrolling interest (8 ) (8 ) — — — — Share-based compensation 12 12 — — — — Dividends declared to shareholders (45 ) — (45 ) — — — Repurchases of common stock (53 ) — — (53 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (4 ) — — — — (4 ) Net income 442 — 434 — — 8 Other comprehensive income (loss), net of tax 128 — — — 129 (1 ) Balance at December 31, 2017 $ 1,221 $ 2,091 $ 877 $ (818 ) $ (921 ) $ (8 ) Cumulative effect of change in accounting policy, net of tax of $6 144 — 144 — — — Adjusted balance at January 1, 2018 1,365 2,091 1,021 (818 ) (921 ) (8 ) Consolidation and acquisition of noncontrolling interest in Aspire entities (see Note 4) 69 69 — — — — Share-based compensation 10 10 — — — — Excess tax benefit related to share-based plans 1 1 — — — — Common stock issued upon exercise of stock options 2 2 — — — — Dividends declared to shareholders (44 ) — (44 ) — — — Repurchases of common stock (3 ) — — (3 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Issuance of convertible debt and call spread overlay 18 18 — — — — Distributions to noncontrolling interests (3 ) — — — — (3 ) Other noncontrolling interests activity 2 — — — — 2 Net income 310 — 281 — — 29 Other comprehensive income, net of tax 8 — — — 8 — Balance at December 31, 2018 $ 1,738 $ 2,190 $ 1,258 $ (817 ) $ (913 ) $ 20 |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2018 2017 2016 Accumulated foreign currency translation adjustments, net of tax of $2 $4 and $(2) $ (307 ) $ (258 ) $ (262 ) Pension and post-retirement benefits, net of tax of $213 $227 and $254 (592 ) (660 ) (785 ) Fair value of derivatives, net of tax of $3 $0 and $0 (14 ) (3 ) (3 ) Total accumulated other comprehensive loss $ (913 ) $ (921 ) $ (1,050 ) Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance at December 31, 2016 $ (262 ) $ (785 ) $ (3 ) $ (1,050 ) Other comprehensive income adjustments before reclassifications 4 100 1 105 Amounts reclassified from accumulated other comprehensive income — 25 (1 ) 24 Balance at December 31, 2017 $ (258 ) $ (660 ) $ (3 ) $ (921 ) Other comprehensive income adjustments before reclassifications (55 ) 44 (20 ) (31 ) Amounts reclassified from accumulated other comprehensive income 6 24 9 39 Balance at December 31, 2018 $ (307 ) $ (592 ) $ (14 ) $ (913 ) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2018 December 31, 2017 Affected line item on the Consolidated Statements of Operations Pension and post-retirement benefits Amortization of actuarial loss (a) $ (28 ) $ (31 ) See (a) below Tax benefit (expense) 4 6 Provision for income taxes Net pension and post-retirement benefits $ (24 ) $ (25 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 14 |
Shares Of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2016 175.9 Common stock issued 0.7 Balance at December 31, 2017 176.6 Common stock issued 0.8 Balance at December 31, 2018 177.4 |
Shares of Treasury Stock | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2016 33.1 $ 769 Treasury stock acquired, net of ESPP shares issued 3.4 49 Balance at December 31, 2017 36.5 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 $ 817 Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 Year ending December 31, 2017 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,310,675 $ 14.93 $ 49 Repurchases under the existing share maintenance program 34,691 14.93 1 Withheld to cover shares 190,838 15.57 3 Total 3,536,204 $ 14.96 $ 53 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of shares repurchased | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2016 33.1 $ 769 Treasury stock acquired, net of ESPP shares issued 3.4 49 Balance at December 31, 2017 36.5 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 $ 817 Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 Year ending December 31, 2017 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,310,675 $ 14.93 $ 49 Repurchases under the existing share maintenance program 34,691 14.93 1 Withheld to cover shares 190,838 15.57 3 Total 3,536,204 $ 14.96 $ 53 |
Share-based Compensation And _2
Share-based Compensation And Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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, 2018 . 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, 2017 2,351,000 $ 23.99 4.87 $ 4.60 Granted — — Exercised (120,767 ) 14.39 Forfeited (3,974 ) 17.04 Expired (135,740 ) 27.40 Outstanding at December 31, 2018 2,090,519 $ 24.34 3.88 $ 0.83 Exercisable at December 31, 2018 2,088,340 $ 24.33 3.88 $ 0.83 |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2018 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, 2017 1,184,834 $ 15.15 Granted 678,600 15.93 Vested (628,169 ) 15.65 Forfeited (98,474 ) 15.31 Nonvested shares at December 31, 2018 1,136,791 $ 15.32 |
Stock-Based Compensation Summary Table | Share-based compensation summary table Years ended December 31, Dollars in millions 2018 2017 2016 Share-based compensation $ 10 $ 12 $ 18 Income tax benefit recognized in net income for share-based compensation $ 2 $ 4 $ 6 Incremental compensation cost $ 1 $ — $ 8 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 per share calculations is as follows: Years ended December 31, Shares in millions 2018 2017 2016 Basic weighted average common shares outstanding 140 141 142 Stock options and restricted shares 1 — — Diluted weighted average common shares outstanding 141 141 142 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2018 2017 Balance Sheet Hedges - Fair Value $ — $ 5 Balance Sheet Position - Remeasurement (9 ) (16 ) Net $ (9 ) $ (11 ) |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2018 and 2017 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 2018 Total revenues $ 1,038 $ 1,267 $ 1,278 $ 1,330 $ 4,913 Gross profit 81 130 122 123 456 Equity in earnings of unconsolidated affiliates 23 10 21 27 81 Operating income (a) 181 98 103 88 470 Net income 139 62 60 49 310 Net income attributable to noncontrolling interests (1 ) (20 ) (2 ) (6 ) (29 ) Net income attributable to KBR 138 42 58 43 281 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.98 $ 0.30 $ 0.41 $ 0.31 $ 1.99 Net income attributable to KBR per share—Diluted $ 0.97 $ 0.30 $ 0.41 $ 0.31 $ 1.99 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2017 Total revenues $ 1,106 $ 1,094 $ 1,034 $ 937 $ 4,171 Gross profit 82 108 87 65 342 Equity in earnings of unconsolidated affiliates 9 32 23 8 72 Operating income 63 103 73 27 266 Net income (b) 38 79 47 278 442 Net income attributable to noncontrolling interests (1 ) (2 ) (2 ) (3 ) (8 ) Net income attributable to KBR (b) 37 77 45 275 434 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.26 $ 0.54 $ 0.32 $ 1.94 $ 3.06 Net income attributable to KBR per share—Diluted $ 0.26 $ 0.54 $ 0.32 $ 1.94 $ 3.06 (a) Operating income includes gain on consolidation of Aspire entities of $108 million that occurred in the first quarter of 2018. (b) Net income and Net income attributable to KBR in the fourth quarter of 2017 were favorably impacted by a release of a valuation allowance of $223 million on the basis of management's reassessment of the amount of its U.S. deferred tax assets that are more likely than not to be realized and an $18 million favorable impact related to the Tax Act. See Note 16 |
Description of Company And Si_4
Description of Company And Significant Accounting Policies (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Accounts receivable | $ 927 | $ 667 | $ 510 | |
Contract assets | 185 | 192 | ||
Other current assets | 108 | 98 | 93 | |
Equity in and advances to unconsolidated affiliates | 744 | 474 | 387 | |
Deferred income taxes | 222 | 294 | ||
Other assets | 147 | 125 | 124 | |
Liabilities | ||||
Contract liabilities | 463 | 377 | 368 | |
Deferred income taxes | 27 | 18 | ||
Deferred income from unconsolidated affiliates | 0 | 0 | ||
Other liabilities | 202 | 172 | 171 | |
Equity | ||||
Retained Earnings | 1,258 | 1,021 | 877 | |
Accumulated other comprehensive loss | (913) | (921) | $ (1,050) | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets | ||||
Accounts receivable | 594 | 510 | ||
Contract assets | 496 | 383 | ||
Other current assets | 103 | 93 | ||
Equity in and advances to unconsolidated affiliates | 736 | 387 | ||
Deferred income taxes | 229 | 300 | ||
Other assets | 143 | 124 | ||
Liabilities | ||||
Contract liabilities | 479 | 368 | ||
Deferred income taxes | 28 | |||
Deferred income from unconsolidated affiliates | 95 | 101 | ||
Other liabilities | 202 | 171 | ||
Equity | ||||
Retained Earnings | 1,103 | $ 877 | ||
Accumulated other comprehensive loss | (902) | |||
Accounting Standards Update 2014-09 | ||||
Assets | ||||
Equity in and advances to unconsolidated affiliates | 87 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets | ||||
Accounts receivable | 333 | 157 | ||
Contract assets | (311) | (191) | ||
Other current assets | 5 | 5 | ||
Equity in and advances to unconsolidated affiliates | 8 | 87 | ||
Deferred income taxes | (7) | (6) | ||
Other assets | 4 | 1 | ||
Liabilities | ||||
Contract liabilities | (16) | 9 | ||
Deferred income taxes | (1) | |||
Deferred income from unconsolidated affiliates | (95) | (101) | ||
Other liabilities | 0 | 1 | ||
Equity | ||||
Retained Earnings | 155 | $ 144 | ||
Accumulated other comprehensive loss | $ (11) |
Description of Company And Si_5
Description of Company And Significant Accounting Policies (Income Statement) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Operations | |||||||||||
Revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | $ 4,913 | $ 4,171 | $ 4,268 |
Cost of revenues | (4,457) | (3,829) | (4,156) | ||||||||
Equity in earnings of unconsolidated affiliates | 27 | 21 | 10 | 23 | 8 | 23 | 32 | 9 | 81 | 72 | 91 |
Income before income taxes and noncontrolling interests | 398 | 249 | 33 | ||||||||
(Provision) benefit for income taxes | (88) | 193 | (84) | ||||||||
Net income | $ 49 | $ 60 | $ 62 | $ 139 | $ 278 | $ 47 | $ 79 | $ 38 | $ 310 | $ 442 | $ (51) |
EPS | |||||||||||
Basic (usd per share) | $ 0.31 | $ 0.41 | $ 0.30 | $ 0.98 | $ 1.94 | $ 0.32 | $ 0.54 | $ 0.26 | $ 1.99 | $ 3.06 | $ (0.43) |
Diluted (usd per share) | $ 0.31 | $ 0.41 | $ 0.30 | $ 0.97 | $ 1.94 | $ 0.32 | $ 0.54 | $ 0.26 | $ 1.99 | $ 3.06 | $ (0.43) |
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Statement of Operations | |||||||||||
Revenues | $ 4,904 | ||||||||||
Cost of revenues | (4,456) | ||||||||||
Equity in earnings of unconsolidated affiliates | 77 | ||||||||||
Income before income taxes and noncontrolling interests | 386 | ||||||||||
(Provision) benefit for income taxes | (87) | ||||||||||
Net income | $ 300 | ||||||||||
EPS | |||||||||||
Basic (usd per share) | $ 1.92 | ||||||||||
Diluted (usd per share) | $ 1.91 | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Statement of Operations | |||||||||||
Revenues | $ 9 | ||||||||||
Cost of revenues | 1 | ||||||||||
Equity in earnings of unconsolidated affiliates | 4 | ||||||||||
Income before income taxes and noncontrolling interests | 12 | ||||||||||
(Provision) benefit for income taxes | 1 | ||||||||||
Net income | $ 10 | ||||||||||
EPS | |||||||||||
Basic (usd per share) | $ 0.07 | ||||||||||
Diluted (usd per share) | $ 0.08 |
Description of Company And Si_6
Description of Company And Significant Accounting Policies (Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | $ 49 | $ 60 | $ 62 | $ 139 | $ 278 | $ 47 | $ 79 | $ 38 | $ 310 | $ 442 | $ (51) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | $ (27) | $ (21) | $ (10) | $ (23) | $ (8) | $ (23) | $ (32) | $ (9) | (81) | (72) | (91) |
Deferred income tax (benefit) expense | 28 | (322) | 18 | ||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | (203) | 92 | 121 | ||||||||
Contract assets | 25 | 40 | 8 | ||||||||
Contract liabilities | (60) | (198) | 33 | ||||||||
Other assets and liabilities | (30) | (57) | 68 | ||||||||
Total cash flows used in operating activities | 165 | $ 193 | $ 61 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | 300 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | (77) | ||||||||||
Deferred income tax (benefit) expense | 27 | ||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | 130 | ||||||||||
Contract assets | (286) | ||||||||||
Contract liabilities | (77) | ||||||||||
Other assets and liabilities | (28) | ||||||||||
Total cash flows used in operating activities | 165 | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | 10 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | (4) | ||||||||||
Deferred income tax (benefit) expense | 1 | ||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | (333) | ||||||||||
Contract assets | 311 | ||||||||||
Contract liabilities | 17 | ||||||||||
Other assets and liabilities | (2) | ||||||||||
Total cash flows used in operating activities | $ 0 |
Description of Company And Si_7
Description of Company And Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Deferred income from unconsolidated affiliates | $ 0 | $ 101 | |
Equity in and advances to unconsolidated affiliates | 744 | 387 | $ 474 |
Accounts receivable derecognized | 14 | ||
Intangible assets | 516 | $ 239 | |
Period in years that unrecognized actuarial net gains (losses) are being recognized | 25 years | ||
Noncurrent refundable income taxes | 84 | $ 85 | |
Deferred rent credit, noncurrent | 92 | 99 | |
Due to former parent upon receipt from IRS | $ 5 | 5 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets useful lives (in years) | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets useful lives (in years) | 25 years | ||
Accounting Standards Update 2014-09 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Deferred income from unconsolidated affiliates | 101 | ||
Equity in and advances to unconsolidated affiliates | $ 87 | ||
Other Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Noncurrent refundable income taxes | $ 98 | $ 104 |
Description of Company And Si_8
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | $ 4,913 | $ 4,171 | $ 4,268 |
U.S. government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 2,610 | $ 1,914 | $ 1,090 | ||||||||
Revenue percentage (percentage) | 53.00% | 46.00% | 26.00% | ||||||||
Receivables percentage (percentage) | 57.00% | 32.00% | 27.00% | ||||||||
U.K. government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 622 | $ 66 | $ 62 | ||||||||
Revenue percentage (percentage) | 13.00% | 2.00% | 2.00% | ||||||||
Receivables percentage (percentage) | 4.00% | 1.00% | 1.00% |
Description of Company And Si_9
Description of Company And Significant Accounting Policies (Schedule Of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Prepaid expenses | $ 49 | $ 53 | |
Value-added tax receivable | 29 | 11 | |
Advances to subcontractors | 5 | 0 | |
Other miscellaneous assets | 25 | 29 | |
Total other current assets | $ 108 | $ 98 | $ 93 |
Description of Company And S_10
Description of Company And Significant Accounting Policies (Components Of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Current maturities of long-term debt | $ 22 | $ 0 |
Reserve for estimated losses on uncompleted contracts | 6 | 15 |
Retainage payable | 33 | 30 |
Income taxes payable | 30 | 17 |
Restructuring reserve | 0 | 9 |
Taxes payable not based on income | 6 | 11 |
Value-added tax payable | 33 | 13 |
Insurance payable | 2 | 9 |
Dividend payable | 11 | 11 |
Other miscellaneous liabilities | 36 | 42 |
Total other current liabilities | $ 179 | $ 157 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | $ 4,913 | $ 4,171 | $ 4,268 |
Gross profit | 123 | 122 | 130 | 81 | 65 | 87 | 108 | 82 | 456 | 342 | 112 |
Equity in earnings of unconsolidated affiliates | 27 | 21 | 10 | 23 | 8 | 23 | 32 | 9 | 81 | 72 | 91 |
General and administrative expenses | (166) | (147) | (133) | ||||||||
Acquisition and integration costs | (7) | 0 | (10) | ||||||||
Asset impairment and restructuring charges | 0 | (6) | (39) | ||||||||
(Loss) Gain on disposition of assets | (2) | 5 | 7 | ||||||||
Gain on consolidation of Aspire entities | 108 | 0 | 0 | ||||||||
Segment operating income (loss) | $ 88 | $ 103 | $ 98 | $ 181 | $ 27 | $ 73 | $ 103 | $ 63 | 470 | 266 | 28 |
Capital expenditures | 17 | 8 | 11 | ||||||||
Depreciation and amortization | 63 | 48 | 45 | ||||||||
Operating Segments | Government Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,457 | 2,193 | 1,359 | ||||||||
Gross profit | 280 | 155 | 137 | ||||||||
Equity in earnings of unconsolidated affiliates | 32 | 43 | 39 | ||||||||
General and administrative expenses | (39) | (24) | (13) | ||||||||
Acquisition and integration costs | (7) | 0 | (10) | ||||||||
Asset impairment and restructuring charges | 0 | 0 | (1) | ||||||||
(Loss) Gain on disposition of assets | 4 | 0 | 0 | ||||||||
Gain on consolidation of Aspire entities | 113 | 0 | 0 | ||||||||
Segment operating income (loss) | 382 | 173 | 152 | ||||||||
Capital expenditures | 11 | 4 | 2 | ||||||||
Depreciation and amortization | 42 | 27 | 16 | ||||||||
Operating Segments | Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 297 | 269 | 309 | ||||||||
Gross profit | 85 | 76 | 80 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
General and administrative expenses | (3) | (3) | (5) | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
(Loss) Gain on disposition of assets | 0 | 0 | 0 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 82 | 73 | 74 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 3 | 3 | 3 | ||||||||
Operating Segments | Hydrocarbons Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,157 | 1,671 | 2,390 | ||||||||
Gross profit | 99 | 111 | 0 | ||||||||
Equity in earnings of unconsolidated affiliates | 49 | 29 | 52 | ||||||||
General and administrative expenses | (27) | (26) | (27) | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | (6) | (31) | ||||||||
(Loss) Gain on disposition of assets | (2) | 5 | 2 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 120 | 113 | (4) | ||||||||
Capital expenditures | 1 | 2 | 5 | ||||||||
Depreciation and amortization | 10 | 10 | 16 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
General and administrative expenses | (97) | (94) | (88) | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | (7) | ||||||||
(Loss) Gain on disposition of assets | (4) | 0 | 1 | ||||||||
Gain on consolidation of Aspire entities | (5) | 0 | 0 | ||||||||
Segment operating income (loss) | (106) | (93) | (93) | ||||||||
Capital expenditures | 5 | 2 | 4 | ||||||||
Depreciation and amortization | 8 | 8 | 10 | ||||||||
Operating Segments | Subtotal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,911 | 4,133 | 4,058 | ||||||||
Gross profit | 464 | 342 | 217 | ||||||||
Equity in earnings of unconsolidated affiliates | 81 | 72 | 91 | ||||||||
General and administrative expenses | (166) | (147) | (133) | ||||||||
Acquisition and integration costs | (7) | 0 | (10) | ||||||||
Asset impairment and restructuring charges | 0 | (6) | (39) | ||||||||
(Loss) Gain on disposition of assets | (2) | 5 | 3 | ||||||||
Gain on consolidation of Aspire entities | 108 | 0 | 0 | ||||||||
Segment operating income (loss) | 478 | 266 | 129 | ||||||||
Capital expenditures | 17 | 8 | 11 | ||||||||
Depreciation and amortization | 63 | 48 | 45 | ||||||||
Operating Segments | Non-strategic Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2 | 38 | 210 | ||||||||
Gross profit | (8) | 0 | (105) | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
General and administrative expenses | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
(Loss) Gain on disposition of assets | 0 | 0 | 4 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | (8) | 0 | (101) | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation and amortization | $ 0 | $ 0 | $ 0 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($)contract | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)contractsegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Equity in earnings of unconsolidated affiliates | $ 27,000,000 | $ 21,000,000 | $ 10,000,000 | $ 23,000,000 | $ 8,000,000 | $ 23,000,000 | $ 32,000,000 | $ 9,000,000 | $ 81,000,000 | $ 72,000,000 | $ 91,000,000 | |
Net income (loss) attributable to parent | $ 43,000,000 | $ 58,000,000 | $ 42,000,000 | $ 138,000,000 | 275,000,000 | $ 45,000,000 | 77,000,000 | $ 37,000,000 | $ 281,000,000 | 434,000,000 | (61,000,000) | |
Reduction in revenues and gross profit | $ 13,000,000 | |||||||||||
Number of contracts (more than) | contract | 1,000 | 1,000 | ||||||||||
Changes in estimates at completion | $ 53,000,000 | 647,000,000 | ||||||||||
Additional revenue and gross profit recognized | 35,000,000 | |||||||||||
Reserve for estimated losses on uncompleted contracts | $ 6,000,000 | 15,000,000 | $ 6,000,000 | 15,000,000 | ||||||||
Core business | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of operating segments | segment | 3 | |||||||||||
Non-core business | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of operating segments | segment | 2 | |||||||||||
Restatement Adjustment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Equity in earnings of unconsolidated affiliates | 9,000,000 | |||||||||||
Net income (loss) attributable to parent | $ 11,000,000 | |||||||||||
Sodium Dichromate Litigation | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Billed costs | $ 33,000,000 | 33,000,000 | ||||||||||
Favorable | Road Construction Project | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Changes in estimates at completion | 15,000,000 | |||||||||||
EPC Ammonia Project in US | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Reserve for estimated losses on uncompleted contracts | 0 | 1,000,000 | $ 0 | 1,000,000 | ||||||||
EPC Ammonia Project in US | Unfavorable | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Changes in estimates at completion | 114,000,000 | |||||||||||
Downstream EPC Project in US | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Changes in estimates at completion | 112,000,000 | |||||||||||
Reserve for estimated losses on uncompleted contracts | $ 1,000,000 | 9,000,000 | $ 1,000,000 | 9,000,000 | ||||||||
Percent complete on project (in percentage) | 99.00% | 99.00% | ||||||||||
LNG Project in Africa | Favorable | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Changes in estimates at completion | 64,000,000 | |||||||||||
Power Projects | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Changes in estimates at completion | $ 117,000,000 | |||||||||||
Reserve for estimated losses on uncompleted contracts | $ 1,000,000 | $ 2,000,000 | $ 1,000,000 | $ 2,000,000 |
Business Segment Information _2
Business Segment Information (Schedule Of Balance Sheet Information By Operating Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 5,072 | $ 3,674 | ||
Goodwill | 1,265 | 968 | ||
Equity in and advances to unconsolidated affiliates | 744 | $ 474 | 387 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 5,071 | 3,667 | ||
Goodwill | 1,265 | 968 | $ 959 | |
Equity in and advances to unconsolidated affiliates | 744 | 387 | ||
Operating Segments | Government Services | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,804 | 1,600 | ||
Goodwill | 977 | 679 | 674 | |
Equity in and advances to unconsolidated affiliates | 114 | 41 | ||
Operating Segments | Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 204 | 210 | ||
Goodwill | 51 | 51 | 48 | |
Equity in and advances to unconsolidated affiliates | 0 | 0 | ||
Operating Segments | Hydrocarbons Services | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,317 | 1,065 | ||
Goodwill | 237 | 238 | $ 237 | |
Equity in and advances to unconsolidated affiliates | 630 | 346 | ||
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 746 | 792 | ||
Goodwill | 0 | 0 | ||
Equity in and advances to unconsolidated affiliates | 0 | 0 | ||
Operating Segments | Non-strategic Business | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1 | 7 | ||
Goodwill | 0 | 0 | ||
Equity in and advances to unconsolidated affiliates | $ 0 | $ 0 |
Business Segment Information _3
Business Segment Information (Schedule Of Selected Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | $ 4,913 | $ 4,171 | $ 4,268 |
Total Long-Lived Assets (PP&E) | 121 | 130 | 121 | 130 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,260 | 1,986 | 2,111 | ||||||||
Total Long-Lived Assets (PP&E) | 51 | 60 | 51 | 60 | |||||||
Middle East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 884 | 836 | 778 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 989 | 480 | 498 | ||||||||
Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 329 | 334 | 376 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21 | 224 | 145 | ||||||||
Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 133 | 121 | 182 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 190 | 125 | 143 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Long-Lived Assets (PP&E) | 50 | 52 | 50 | 52 | |||||||
Other countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 107 | 65 | $ 35 | ||||||||
Total Long-Lived Assets (PP&E) | $ 20 | $ 18 | $ 20 | $ 18 |
Revenue (Revenue by Product Lin
Revenue (Revenue by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 4,913 | ||||||||||
Revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | 4,913 | $ 4,171 | $ 4,268 |
Hydrocarbons | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,454 | ||||||||||
Government Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 3,457 | ||||||||||
Government Services | Space and Mission Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 651 | ||||||||||
Government Services | Engineering | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,141 | ||||||||||
Government Services | Logistics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,665 | ||||||||||
Technology | Hydrocarbons | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 297 | ||||||||||
Hydrocarbons Services | Hydrocarbons | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,157 | ||||||||||
Hydrocarbons Services | Onshore | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 931 | ||||||||||
Hydrocarbons Services | Offshore | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 90 | ||||||||||
Hydrocarbons Services | Industrial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 68 | ||||||||||
Hydrocarbons Services | Consulting | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 66 | ||||||||||
Hydrocarbons Services | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2 | ||||||||||
Non-strategic Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 2 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from performance obligations | $ 69 |
Disaggregation of Revenue [Line Items] | |
Revenues | 4,913 |
Government Services | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,457 |
Key U.S. Government Customers | Government Services | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,600 |
Non U.S. Government Customers | Government Services | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 847 |
Revenue (Revenue by Geographic
Revenue (Revenue by Geographic Destination) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 4,913 |
United States | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,260 |
Middle East | |
Disaggregation of Revenue [Line Items] | |
Revenues | 884 |
Europe | |
Disaggregation of Revenue [Line Items] | |
Revenues | 989 |
Australia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 329 |
Canada | |
Disaggregation of Revenue [Line Items] | |
Revenues | 21 |
Africa | |
Disaggregation of Revenue [Line Items] | |
Revenues | 133 |
Asia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 190 |
Other countries | |
Disaggregation of Revenue [Line Items] | |
Revenues | 107 |
Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,454 |
Government Services | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,457 |
Government Services | United States | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,767 |
Government Services | Middle East | |
Disaggregation of Revenue [Line Items] | |
Revenues | 735 |
Government Services | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenues | 766 |
Government Services | Australia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 60 |
Government Services | Canada | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1 |
Government Services | Africa | |
Disaggregation of Revenue [Line Items] | |
Revenues | 77 |
Government Services | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Government Services | Other countries | |
Disaggregation of Revenue [Line Items] | |
Revenues | 51 |
Technology | Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 297 |
Technology | Hydrocarbons | United States | |
Disaggregation of Revenue [Line Items] | |
Revenues | 22 |
Technology | Hydrocarbons | Middle East | |
Disaggregation of Revenue [Line Items] | |
Revenues | 14 |
Technology | Hydrocarbons | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenues | 50 |
Technology | Hydrocarbons | Australia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1 |
Technology | Hydrocarbons | Canada | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2 |
Technology | Hydrocarbons | Africa | |
Disaggregation of Revenue [Line Items] | |
Revenues | 25 |
Technology | Hydrocarbons | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 177 |
Technology | Hydrocarbons | Other countries | |
Disaggregation of Revenue [Line Items] | |
Revenues | 6 |
Hydrocarbons Services | Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,157 |
Hydrocarbons Services | Hydrocarbons | United States | |
Disaggregation of Revenue [Line Items] | |
Revenues | 469 |
Hydrocarbons Services | Hydrocarbons | Middle East | |
Disaggregation of Revenue [Line Items] | |
Revenues | 135 |
Hydrocarbons Services | Hydrocarbons | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenues | 173 |
Hydrocarbons Services | Hydrocarbons | Australia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 268 |
Hydrocarbons Services | Hydrocarbons | Canada | |
Disaggregation of Revenue [Line Items] | |
Revenues | 18 |
Hydrocarbons Services | Hydrocarbons | Africa | |
Disaggregation of Revenue [Line Items] | |
Revenues | 31 |
Hydrocarbons Services | Hydrocarbons | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 13 |
Hydrocarbons Services | Hydrocarbons | Other countries | |
Disaggregation of Revenue [Line Items] | |
Revenues | 50 |
Non-strategic Business | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2 |
Non-strategic Business | United States | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2 |
Non-strategic Business | Middle East | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Australia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Canada | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Africa | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Non-strategic Business | Other countries | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 0 |
Revenue (Revenue by Contract Ty
Revenue (Revenue by Contract Type) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 4,913 |
Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,497 |
Cost Reimbursable | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,416 |
Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,454 |
Government Services | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,457 |
Government Services | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,034 |
Government Services | Cost Reimbursable | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,423 |
Technology | Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 297 |
Technology | Hydrocarbons | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Revenues | 282 |
Technology | Hydrocarbons | Cost Reimbursable | |
Disaggregation of Revenue [Line Items] | |
Revenues | 15 |
Hydrocarbons Services | Hydrocarbons | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,157 |
Hydrocarbons Services | Hydrocarbons | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Revenues | 179 |
Hydrocarbons Services | Hydrocarbons | Cost Reimbursable | |
Disaggregation of Revenue [Line Items] | |
Revenues | 978 |
Non-strategic Business | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2 |
Non-strategic Business | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2 |
Non-strategic Business | Cost Reimbursable | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 0 |
Revenue (Performance Obligation
Revenue (Performance Obligation) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 9.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 35.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 37.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 4 years |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Consideration Paid) (Details) - USD ($) $ in Millions | Apr. 25, 2018 | Apr. 18, 2018 | Jan. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Goodwill | $ 1,265 | $ 968 | |||
SGT | |||||
Business Acquisition [Line Items] | |||||
Fair value of Aspire Defence subcontracting entities | $ 365 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Cash and equivalents | 11 | ||||
Accounts receivable | 52 | ||||
Contract assets | 21 | ||||
Other current assets | 2 | ||||
Total current assets | 86 | ||||
Property, plant and equipment, net | 2 | ||||
Equity in and advances to unconsolidated affiliates | 2 | ||||
Intangible assets | 74 | ||||
Deferred income taxes | 6 | ||||
Other assets | 8 | ||||
Total assets | 178 | ||||
Accounts payable | 27 | ||||
Contract liabilities | 6 | ||||
Accrued salaries, wages and benefits | 28 | ||||
Other current liabilities | 5 | ||||
Total current liabilities | 66 | ||||
Employee compensation and benefits | 2 | ||||
Other liabilities | 2 | ||||
Total liabilities | 70 | ||||
Goodwill | $ 257 | ||||
Aspire | |||||
Business Acquisition [Line Items] | |||||
Fair value of Aspire Defence subcontracting entities | $ 50 | $ 230 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Cash and equivalents | 197 | ||||
Accounts receivable | 14 | ||||
Other current assets | 12 | ||||
Total current assets | 223 | ||||
Property, plant and equipment, net | 9 | ||||
Intangible assets | 234 | ||||
Total assets | 466 | ||||
Accounts payable | 53 | ||||
Contract liabilities | 161 | ||||
Accrued salaries, wages and benefits | 1 | ||||
Other current liabilities | 21 | ||||
Total current liabilities | 236 | ||||
Employee compensation and benefits | 42 | ||||
Total liabilities | 278 | ||||
Goodwill | 42 | ||||
Noncontrolling interests | $ 115 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Narrative) (Details) $ in Millions | Oct. 11, 2018USD ($) | Apr. 25, 2018USD ($) | Apr. 18, 2018USD ($) | Jan. 15, 2018USD ($) | Nov. 20, 2017USD ($) | Sep. 16, 2016USD ($) | Jul. 01, 2016USD ($) | Jan. 11, 2016USD ($)subsidiary | Jan. 01, 2015USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Acquisition and integration costs | $ 7 | $ 0 | $ 10 | |||||||||||
Goodwill | 1,265 | 968 | ||||||||||||
Acquisitions of businesses, net of cash acquired | 354 | 4 | 911 | |||||||||||
Advance from credit agreement | 250 | 0 | 700 | |||||||||||
Other related costs | 2 | (2) | $ 0 | |||||||||||
Stinger Ghaffarian Technologies | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired (percentage) | 100.00% | |||||||||||||
Aggregate base consideration | $ 355 | |||||||||||||
Working capital and other purchase price adjustments | $ 10 | |||||||||||||
Weighted average useful life | 19 years | |||||||||||||
Fair value of consideration transferred | $ 3 | |||||||||||||
Acquisition and integration costs | 4 | |||||||||||||
Goodwill | $ 257 | |||||||||||||
Fair value of Aspire Defence subcontracting entities | 365 | |||||||||||||
Joint venture contribution | 342 | |||||||||||||
Gross profit | 31 | |||||||||||||
Goodwill, expected tax deductible amount | $ 237 | |||||||||||||
Aspire Defence subcontracting joint ventures | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition and integration costs | 1 | |||||||||||||
Goodwill | $ 42 | |||||||||||||
Reduction to fair value | $ 10 | |||||||||||||
Fair value of Aspire Defence subcontracting entities | $ 50 | $ 230 | ||||||||||||
Noncontrolling interests difference | 119 | |||||||||||||
Adjustments to additional paid in capital, business acquisition | 69 | |||||||||||||
Joint venture contribution | 533 | |||||||||||||
Gross profit | 61 | |||||||||||||
Sigma Bravo Pty Ltd | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired (percentage) | 100.00% | |||||||||||||
Goodwill | $ 1 | |||||||||||||
Fair value of Aspire Defence subcontracting entities | 9 | |||||||||||||
Goodwill, expected tax deductible amount | $ 0 | |||||||||||||
Honeywell Technology Solutions Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired (percentage) | 100.00% | |||||||||||||
Goodwill | $ 134 | |||||||||||||
Goodwill, expected tax deductible amount | 117 | |||||||||||||
Consideration paid | 300 | |||||||||||||
Working capital adjustments | (20) | |||||||||||||
Acquisitions of businesses, net of cash acquired | $ 280 | |||||||||||||
Purchase price adjustment | 3 | |||||||||||||
Wyle | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired (percentage) | 100.00% | |||||||||||||
Goodwill | $ 484 | |||||||||||||
Goodwill, expected tax deductible amount | 107 | |||||||||||||
Consideration paid | 600 | |||||||||||||
Acquisitions of businesses, net of cash acquired | 623 | |||||||||||||
Purchase price adjustment | 1 | |||||||||||||
Other payments to acquire businesses | 23 | |||||||||||||
Total cash paid via funding | $ 400 | |||||||||||||
HTSI and Wyle | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Advance from credit agreement | $ 700 | |||||||||||||
Chematur Subsidiaries | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired (percentage) | 100.00% | |||||||||||||
Goodwill | $ 24 | |||||||||||||
Goodwill, expected tax deductible amount | 0 | |||||||||||||
Consideration paid | 25 | |||||||||||||
Acquisitions of businesses, net of cash acquired | $ 23 | |||||||||||||
Number of businesses acquired | subsidiary | 3 | |||||||||||||
Cash acquired from acquisition | $ (2) | |||||||||||||
Escrow deposit | $ 5 | |||||||||||||
Release of escrow | 4 | |||||||||||||
Other related costs | $ 2 | |||||||||||||
Connell Chemical Industry LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Release of escrow | $ 1 | |||||||||||||
Score | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Net | $ 16 | |||||||||||||
License costs | $ 25 | |||||||||||||
Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite lived intangible assets useful lives (in years) | 1 year | |||||||||||||
Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite lived intangible assets useful lives (in years) | 25 years | |||||||||||||
Contract backlog | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted average useful life | 20 years | 3 years | ||||||||||||
Contract backlog | Minimum | Aspire Defence subcontracting joint ventures | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite lived intangible assets useful lives (in years) | 4 years | |||||||||||||
Contract backlog | Maximum | Aspire Defence subcontracting joint ventures | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite lived intangible assets useful lives (in years) | 23 years | |||||||||||||
Licensing Agreements [Member] | Score | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite lived intangible assets useful lives (in years) | 25 years | |||||||||||||
Intangible asset acquired | $ 16 | |||||||||||||
Aspire Defence subcontracting joint ventures | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage (in percentage) | 50.00% | |||||||||||||
Equity method investments | $ 7 | |||||||||||||
Gain on consolidation of entities | $ 108 | |||||||||||||
EPIC Joint Venture | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 2 | |||||||||||||
Proceeds from interest in joint venture | $ 24 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Pro Forma) (Details) - HTSI and Wyle - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Revenue | $ 5,060 | $ 5,057 | $ 5,129 |
Net income attributable to KBR | $ 367 | $ 344 | $ (23) |
Diluted earnings per share (in dollars per share) | $ 2.59 | $ 2.42 | $ (0.16) |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 739 | $ 439 | $ 536 | $ 883 |
Operating cash and equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 227 | 236 | ||
Short-term investments | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 194 | 142 | ||
Cash and equivalents held in consolidated joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 318 | 61 | ||
International | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 525 | 253 | ||
International | Operating cash and equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 123 | 112 | ||
International | Short-term investments | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 87 | 82 | ||
International | Cash and equivalents held in consolidated joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 315 | 59 | ||
Domestic | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 214 | 186 | ||
Domestic | Operating cash and equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 104 | 124 | ||
Domestic | Short-term investments | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 107 | 60 | ||
Domestic | Cash and equivalents held in consolidated joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 3 | $ 2 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 927 | $ 667 | $ 510 |
Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 346 | 63 | |
Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 581 | 447 | |
Operating Segments | Government Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 600 | 195 | |
Operating Segments | Government Services | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 266 | 6 | |
Operating Segments | Government Services | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 334 | 189 | |
Operating Segments | Technology | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 73 | 72 | |
Operating Segments | Technology | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 11 | 0 | |
Operating Segments | Technology | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 62 | 72 | |
Operating Segments | Hydrocarbons Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 254 | 239 | |
Operating Segments | Hydrocarbons Services | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 69 | 53 | |
Operating Segments | Hydrocarbons Services | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 185 | 186 | |
Operating Segments | Subtotal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 927 | 506 | |
Operating Segments | Subtotal | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 346 | 59 | |
Operating Segments | Subtotal | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 581 | 447 | |
Operating Segments | Non-strategic Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 0 | 4 | |
Operating Segments | Non-strategic Business | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 0 | 4 | |
Operating Segments | Non-strategic Business | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 0 | $ 0 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities (CIE) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 185 | $ 383 |
Contract with customer, asset, increase (decrease) | $ (198) | |
Contract with customer, asset, increase (decrease), percent | (52.00%) | |
Operating Segments | Government Services | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 123 | 274 |
Contract with customer, asset, increase (decrease) | $ (151) | |
Contract with customer, asset, increase (decrease), percent | (55.00%) | |
Operating Segments | Technology | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 19 | 39 |
Contract with customer, asset, increase (decrease) | $ (20) | |
Contract with customer, asset, increase (decrease), percent | (51.00%) | |
Operating Segments | Hydrocarbons Services | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 43 | 70 |
Contract with customer, asset, increase (decrease) | $ (27) | |
Contract with customer, asset, increase (decrease), percent | (39.00%) | |
Operating Segments | Non-strategic Business | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 0 | 0 |
Contract with customer, asset, increase (decrease) | 0 | |
Operating Segments | Subtotal | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 185 | $ 383 |
Contract with customer, asset, increase (decrease) | $ (198) | |
Contract with customer, asset, increase (decrease), percent | (52.00%) |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities (BIE) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 463 | $ 377 | $ 368 |
Contract with customer, liability, increase (decrease) | $ 95 | ||
Contract with customer, liability, increase (decrease), percent | 26.00% | ||
Operating Segments | Government Services | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 261 | 85 | |
Contract with customer, liability, increase (decrease) | $ 176 | ||
Contract with customer, liability, increase (decrease), percent | 207.00% | ||
Operating Segments | Technology | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 98 | 61 | |
Contract with customer, liability, increase (decrease) | $ 37 | ||
Contract with customer, liability, increase (decrease), percent | 61.00% | ||
Operating Segments | Hydrocarbons Services | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 100 | 214 | |
Contract with customer, liability, increase (decrease) | $ (114) | ||
Contract with customer, liability, increase (decrease), percent | (53.00%) | ||
Operating Segments | Subtotal | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 459 | 360 | |
Contract with customer, liability, increase (decrease) | $ 99 | ||
Contract with customer, liability, increase (decrease), percent | 28.00% | ||
Operating Segments | Non-strategic Business | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 4 | $ 8 | |
Contract with customer, liability, increase (decrease) | $ (4) | ||
Contract with customer, liability, increase (decrease), percent | (50.00%) |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 25, 2018 | Jan. 15, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 261 | ||
Stinger Ghaffarian Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 21 | ||
Contract liabilities | $ 6 | ||
Aspire Defence subcontracting joint ventures | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 161 |
Unapproved Change Orders and_3
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Roll-forward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unapproved Change Orders [Roll Forward] | ||
Amounts included in project estimates-at-completion at January 1, | $ 924 | $ 294 |
Increase, net of foreign currency effect | 53 | 647 |
Approved change orders, net of foreign currency effect | (4) | (17) |
Amounts included in project estimates-at-completion at December 31, | 973 | 924 |
Amounts recognized over time based on progress at December 31, | $ 945 | $ 826 |
Unapproved Change Orders and_4
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Narrative) (Details) $ in Millions | Apr. 06, 2017USD ($) | Apr. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)generator | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Variable Interest Entity [Line Items] | |||||||
Changes in estimates at completion | $ 53 | $ 647 | |||||
Unapproved change orders, amount | 973 | 924 | $ 294 | ||||
Litigation settlement, amount awarded from other party | $ 435 | ||||||
Recovery of the expected costs | $ 1,900 | ||||||
JKC joint venture (Ichthys LNG project) | |||||||
Variable Interest Entity [Line Items] | |||||||
Variable interest entity, ownership percentage | 30.00% | ||||||
Number of gas turbine generators | generator | 5 | ||||||
Number of steam turbine generators | generator | 3 | ||||||
JKC joint venture (Ichthys LNG project) | |||||||
Variable Interest Entity [Line Items] | |||||||
Letters of credit, outstanding amount | $ 164 | ||||||
Cost Reimbursable | |||||||
Variable Interest Entity [Line Items] | |||||||
Changes in estimates at completion | 159 | $ 177 | |||||
Legal Action Against The Consortium For Combined Cycle Power Plant | Settled Litigation | JKC Joint Venture | |||||||
Variable Interest Entity [Line Items] | |||||||
Litigation settlement, amount awarded from other party | $ 52 | ||||||
JKC Joint Venture | |||||||
Variable Interest Entity [Line Items] | |||||||
Unapproved change orders, amount | 324 | ||||||
Payments to acquire interest in joint venture | $ (344) | ||||||
Scenario, Forecast | JKC joint venture (Ichthys LNG project) | |||||||
Variable Interest Entity [Line Items] | |||||||
Estimated additional investment contributions in joint venture | $ 500 | $ 156 |
Claims and Accounts Receivable
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims and accounts receivable | $ 98 | $ 101 |
All Defense Contract Audit Agency Audit Issues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Government contract receivable | 73 | 79 |
Claims and uncertain amounts | $ 25 | $ 22 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 476 | $ 459 | |
Less accumulated depreciation | (355) | (329) | |
Net property, plant and equipment | 121 | 130 | |
Depreciation | 31 | 27 | $ 31 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 5 | 7 | |
Buildings and property improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 122 | 118 | |
Buildings and property improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Buildings and property improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 35 years | ||
Equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 349 | $ 334 | |
Equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 25 years |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Summary Of Goodwill By Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Balance, Beginning of period | $ 968 | |
Balance, End of period | 1,265 | $ 968 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 968 | 959 |
Goodwill acquired during the period | 299 | 1 |
Purchase price adjustment | 2 | 4 |
Foreign currency translation | (4) | 4 |
Balance, End of period | 1,265 | 968 |
Operating Segments | Government Services | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 679 | 674 |
Goodwill acquired during the period | 299 | 1 |
Purchase price adjustment | 2 | 4 |
Foreign currency translation | (3) | 0 |
Balance, End of period | 977 | 679 |
Operating Segments | Technology | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 51 | 48 |
Goodwill acquired during the period | 0 | 0 |
Purchase price adjustment | 0 | 0 |
Foreign currency translation | 0 | 3 |
Balance, End of period | 51 | 51 |
Operating Segments | Hydrocarbons Services | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 238 | 237 |
Goodwill acquired during the period | 0 | 0 |
Purchase price adjustment | 0 | 0 |
Foreign currency translation | (1) | 1 |
Balance, End of period | $ 237 | $ 238 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Cost And Accumulated Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 667 | $ 361 |
Accumulated Amortization | (151) | (122) |
Intangible Assets, Net | $ 516 | $ 239 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 17 years | 17 years |
Intangible Assets, Gross | $ 272 | $ 206 |
Accumulated Amortization | (69) | (57) |
Intangible Assets, Net | $ 203 | $ 149 |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 22 years | 17 years |
Intangible Assets, Gross | $ 61 | $ 45 |
Accumulated Amortization | (34) | (33) |
Intangible Assets, Net | $ 27 | $ 12 |
Contract backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 20 years | 3 years |
Intangible Assets, Gross | $ 249 | $ 23 |
Accumulated Amortization | (36) | (20) |
Intangible Assets, Net | $ 213 | $ 3 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 14 years | 15 years |
Intangible Assets, Gross | $ 24 | $ 26 |
Accumulated Amortization | (12) | (12) |
Intangible Assets, Net | 12 | 14 |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 61 | 61 |
Intangible Assets, Net | $ 61 | $ 61 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Amortization Expense Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 32 | $ 21 | $ 14 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Expected Amortization Expense Of Intangibles) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 32 |
2,020 | 32 |
2,021 | 27 |
2,022 | 22 |
2,023 | 22 |
Beyond 2,023 | $ 320 |
Asset Impairment and Restruct_3
Asset Impairment and Restructuring (Restructuring) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | $ 0 | $ 0 | $ 17 |
Restructuring charges | 0 | 6 | 22 |
Asset impairment and restructuring charges | 0 | 6 | 39 |
Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 17 |
Restructuring charges | 0 | 6 | 22 |
Operating Segments | Government Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 1 |
Asset impairment and restructuring charges | 0 | 0 | 1 |
Operating Segments | Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 1 |
Operating Segments | Hydrocarbons Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 10 |
Restructuring charges | 0 | 6 | 20 |
Asset impairment and restructuring charges | 0 | 6 | 31 |
Operating Segments | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 7 |
Restructuring charges | 0 | 0 | 0 |
Asset impairment and restructuring charges | 0 | 0 | 7 |
Operating Segments | Non-strategic Business | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 |
Asset impairment and restructuring charges | $ 0 | $ 0 | $ 0 |
Asset Impairment and Restruct_4
Asset Impairment and Restructuring (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | $ 0 | $ 0 | $ 17,000,000 |
Accrual adjustment | (1,000,000) | ||
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss on contract termination | 0 | 7,000,000 | 4,000,000 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 18,000,000 | ||
Finite-Lived Intangible Assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | 0 | 0 | |
Property, Plant and Equipment | Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment | $ 0 | $ 0 | $ 17,000,000 |
Equity Method Investments and_3
Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Cumulative effect of change in accounting policy | $ 144 | |||
Distributions of earnings of unconsolidated affiliates | $ (75) | $ (62) | $ (56) | |
Investments | 344 | 0 | 61 | |
Equity in and advances to unconsolidated affiliates | 744 | 387 | 474 | |
Deferred income from unconsolidated affiliates | 0 | 101 | ||
Equity Method Investments | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning balance | 387 | 369 | ||
Cumulative effect of change in accounting policy | 87 | |||
Adjusted balance at January 1, | 474 | 369 | ||
Equity in earnings of unconsolidated affiliates | 81 | 72 | ||
Distributions of earnings of unconsolidated affiliates | (75) | (62) | ||
Payments from (advances to) unconsolidated affiliates, net | (12) | (11) | ||
Investments | 344 | 0 | ||
Foreign currency translation adjustments | (33) | 12 | ||
Other | (35) | 5 | ||
Balance before reclassification | 744 | 385 | ||
Reclassification of excess distributions | 0 | 11 | ||
Recognition of excess distributions | 0 | (9) | ||
Ending balance | 744 | $ 387 | $ 369 | |
Accounting Standards Update 2014-09 | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Equity in and advances to unconsolidated affiliates | 87 | |||
Deferred income from unconsolidated affiliates | 101 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Equity in and advances to unconsolidated affiliates | $ 8 | 87 | ||
Deferred income from unconsolidated affiliates | $ 101 |
Equity Method Investments And_4
Equity Method Investments And Variable Interest Entities (Narrative) (Details) $ in Millions | Sep. 30, 2015USD ($) | Feb. 29, 2016 | Apr. 30, 2006 | Jun. 30, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)transporter | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage acquired | 25.00% | 25.00% | |||||||
Noncontrolling interest in a venture | $ 8 | $ 8 | |||||||
Payment to partner | 2 | ||||||||
Brown & Root JV | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenue from related parties | $ 2 | $ 5 | $ 16 | ||||||
Industrial Services Business | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from divestiture of businesses | $ 48 | ||||||||
Brown & Root JV | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage (in percentage) | 50.00% | ||||||||
Affinity Flying Training Services Limited | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 50.00% | ||||||||
Affinity Capital Works | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 50.00% | ||||||||
Aspire Defence Limited | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 45.00% | 50.00% | |||||||
JKC joint venture (Ichthys LNG project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 30.00% | ||||||||
Affinity joint venture (U.K. MFTS project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Term of contracted services portion of project (in years) | 18 years | ||||||||
Aspire Defence Limited | |||||||||
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 | ||||||||
U.K. Road project joint ventures | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 25.00% | ||||||||
Middle East Petroleum Corporation (EBIC Ammonia project) | Development Corporation | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Development company's ownership interest in a company that consolidates a VIE | 25.00% | ||||||||
KJV-G joint venture (Gorgon LNG project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 30.00% | ||||||||
Fasttrax Limited (Fasttrax project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Variable interest entity, ownership percentage | 50.00% | ||||||||
Percentage of subsidiary owned by the parent entity | 100.00% | ||||||||
Cash collateral for borrowed securities | $ 17 | ||||||||
Property plant and equipment collateral for borrowed securities | 27 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Nonconsolidated assets | 26 | 15 | $ 26 | ||||||
Nonconsolidated liabilities | 10 | 8 | 10 | ||||||
Variable Interest Entity, Not Primary Beneficiary | U.K. Road project joint ventures | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Nonconsolidated assets | 36 | 37 | 36 | ||||||
Nonconsolidated liabilities | 10 | 10 | 10 | ||||||
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Nonconsolidated assets | 140 | 376 | 140 | ||||||
Nonconsolidated liabilities | 25 | 32 | 25 | ||||||
Variable Interest Entity, Not Primary Beneficiary | Middle East Petroleum Corporation (EBIC Ammonia project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Nonconsolidated assets | 38 | 42 | 38 | ||||||
Nonconsolidated liabilities | $ 1 | $ 1 | 1 | ||||||
Parent Company | Middle East Petroleum Corporation (EBIC Ammonia project) | |||||||||
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% | ||||||||
Transactions with Related Parties | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenue from related parties | $ 190 | $ 133 | $ 235 | ||||||
Nonrecourse Project Finance Debt | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage (in percentage) | 50.00% | ||||||||
Number of heavy equipment transporters | transporter | 91 | ||||||||
Scenario, Forecast | JKC joint venture (Ichthys LNG project) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Estimated additional investment contributions in joint venture | $ 500 | $ 156 |
Equity Method Investments And_5
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 3,526 | $ 3,107 |
Noncurrent assets | 3,121 | 3,250 |
Total assets | 6,647 | 6,357 |
Current liabilities | 1,277 | 2,006 |
Noncurrent liabilities | 3,212 | 3,508 |
Total liabilities | $ 4,489 | $ 5,514 |
Equity Method Investments And_6
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information Statements Of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 3,190 | $ 5,781 | $ 5,877 |
Operating income | 197 | 278 | 365 |
Net income | $ 173 | $ 145 | $ 192 |
Equity Method Investments And_7
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 15 | $ 26 |
Total Liabilities | 8 | 10 |
Variable Interest Entity, Not Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 80 | 10 |
Total Liabilities | 5 | 125 |
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 376 | 140 |
Total Liabilities | 32 | 25 |
Variable Interest Entity, Not Primary Beneficiary | U.K. Road project joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 37 | 36 |
Total Liabilities | 10 | 10 |
Variable Interest Entity, Not Primary Beneficiary | Middle East Petroleum Corporation (EBIC Ammonia project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 42 | 38 |
Total Liabilities | 1 | 1 |
Variable Interest Entity, Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 589 | |
Consolidated VIEs, Total liabilities | 324 | |
Variable Interest Entity, Primary Beneficiary | KJV-G joint venture (Gorgon LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 13 | 15 |
Consolidated VIEs, Total liabilities | 19 | 48 |
Variable Interest Entity, Primary Beneficiary | Fasttrax Limited (Fasttrax project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 49 | 57 |
Consolidated VIEs, Total liabilities | $ 34 | $ 47 |
Equity Method Investments And_8
Equity Method Investments And Variable Interest Entities (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable | $ 927 | $ 667 | $ 510 |
Contract assets | 185 | 383 | |
Contract liabilities | 463 | $ 377 | 368 |
Accounts payable | 546 | 350 | |
Transactions with Related Parties | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable | 43 | 28 | |
Contract assets | 1 | 2 | |
Contract liabilities | 38 | 27 | |
Accounts payable | 2 | 0 | |
Brown & Root JV | |||
Schedule of Equity Method Investments [Line Items] | |||
Due from related party | $ 4 | $ 4 |
Pension Plans (Narrative) (Deta
Pension Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan expenses | $ 56 | $ 52 | $ 51 | |
Multi-employer plan contribution | 3 | $ 1 | ||
Funded amount | 8 | 6 | ||
Employee deferred compensation plan | $ 67 | 68 | ||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 2 | |||
Increase in projected benefit obligation | $ 0 | 0 | ||
Accumulated benefit obligation | $ 71 | 77 | ||
United Kingdom | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Increase in prior service cost | $ 20 | |||
Increase in projected benefit obligation | $ 20 | |||
Germany | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Int’l | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase in projected benefit obligation | $ 20 | 0 | ||
Accumulated benefit obligation | $ 1,800 | $ 2,000 | ||
Scenario, Forecast | Int’l | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contributions in next fiscal year | $ 39 |
Pension Plans (Schedule Of Chan
Pension Plans (Schedule Of Changes In Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 1,732 | ||
Fair value of plan assets at end of period | 1,572 | $ 1,732 | |
United States | |||
Change in projected benefit obligations: | |||
Projected benefit obligation at beginning of period | 77 | 75 | |
Acquisitions | 0 | 0 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 2 | 3 | 3 |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | (4) | 3 | |
Other | 0 | 0 | |
Plan amendments | 0 | 0 | |
Benefits paid | (4) | (4) | |
Projected benefit obligation at end of period | 71 | 77 | 75 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 59 | 56 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | (3) | 7 | |
Employer contributions | 2 | 1 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | (4) | (4) | |
Other | 0 | (1) | |
Fair value of plan assets at end of period | 54 | 59 | 56 |
Funded status | (17) | (18) | |
Int’l | |||
Change in projected benefit obligations: | |||
Projected benefit obligation at beginning of period | 2,046 | 1,970 | |
Acquisitions | 24 | 0 | |
Service cost | 2 | 1 | 1 |
Interest cost | 50 | 53 | 63 |
Foreign currency exchange rate changes | (114) | 186 | |
Actuarial (gain) loss | (184) | (78) | |
Other | 0 | (1) | |
Plan amendments | 20 | 0 | |
Benefits paid | (93) | (85) | |
Projected benefit obligation at end of period | 1,751 | 2,046 | 1,970 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,673 | 1,463 | |
Acquisitions | 24 | 0 | |
Actual return on plan assets | (28) | 119 | |
Employer contributions | 39 | 36 | |
Foreign currency exchange rate changes | (96) | 141 | |
Benefits paid | (93) | (85) | |
Other | (1) | (1) | |
Fair value of plan assets at end of period | 1,518 | 1,673 | $ 1,463 |
Funded status | $ (233) | $ (373) |
Pension Plans (Schedule Of Amou
Pension Plans (Schedule Of Amounts Recognized On Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ 250 | $ 391 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | 17 | 18 |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ 233 | $ 373 |
Pension Plans (Components Of Ne
Pension Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 2 | 3 | 3 |
Expected return on plan assets | (3) | (3) | (3) |
Settlements/curtailments | 0 | 0 | 1 |
Recognized actuarial loss | 2 | 1 | 1 |
Net periodic benefit cost | 1 | 1 | 2 |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 1 | 1 |
Interest cost | 50 | 53 | 63 |
Expected return on plan assets | (80) | (77) | (87) |
Settlements/curtailments | 0 | 0 | 0 |
Recognized actuarial loss | 26 | 30 | 28 |
Net periodic benefit cost | $ (2) | $ 7 | $ 5 |
Pension Plans (Schedule Of Am_2
Pension Plans (Schedule Of Amounts In Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $10 and $203, $10 and $217, respectively | $ 23 | $ 22 |
Total in accumulated other comprehensive loss | 23 | 22 |
Actuarial loss | 10 | 10 |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $10 and $203, $10 and $217, respectively | 569 | 638 |
Total in accumulated other comprehensive loss | 569 | 638 |
Actuarial loss | $ 203 | $ 217 |
Pension Plans (Schedule Of Am_3
Pension Plans (Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In Next Fiscal Year (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (1) | |
Total | $ 1 | |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (14) | |
Total | $ 14 |
Pension Plans (Schedule Of Weig
Pension Plans (Schedule Of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Int’l | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (in percentage) | 2.50% | 2.60% | 3.75% |
Expected return on plan assets (in percentage) | 5.20% | 5.40% | 6.10% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate (in percentage) | 2.90% | 2.50% | |
United States | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (in percentage) | 3.33% | 3.73% | 3.42% |
Expected return on plan assets (in percentage) | 6.01% | 6.01% | 5.00% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate (in percentage) | 3.98% | 3.33% |
Pension Plans (Schedule Of Targ
Pension Plans (Schedule Of Target Plan Allocation) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Scenario, Forecast | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 51.00% | |
Scenario, Forecast | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 39.00% | |
Scenario, Forecast | United States | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | United States | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Scenario, Forecast | Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 28.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 52.00% | |
Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 2.00% | |
Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 18.00% | |
Maximum | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 53.00% | |
Maximum | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 40.00% | |
Maximum | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Maximum | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Maximum | United States | Other Plan Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Maximum | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 60.00% | |
Maximum | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Maximum | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 35.00% | |
Maximum | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Maximum | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20.00% | |
Maximum | Scenario, Forecast | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 53.00% | |
Maximum | Scenario, Forecast | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 40.00% | |
Maximum | Scenario, Forecast | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Maximum | Scenario, Forecast | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Maximum | Scenario, Forecast | United States | Other Plan Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Maximum | Scenario, Forecast | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 60.00% | |
Maximum | Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 99.00% | |
Maximum | Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 34.00% | |
Maximum | Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Maximum | Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20.00% | |
Minimum | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
Minimum | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 37.00% | |
Minimum | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Minimum | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | United States | Other Plan Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Minimum | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Scenario, Forecast | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
Minimum | Scenario, Forecast | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 37.00% | |
Minimum | Scenario, Forecast | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Minimum | Scenario, Forecast | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Scenario, Forecast | United States | Other Plan Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Minimum | Scenario, Forecast | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Minimum | Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Minimum | Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% |
Pension Plans (Schedule Of Pens
Pension Plans (Schedule Of Pension Plan Assets Measured At Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,572 | $ 1,732 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43 | 42 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 126 | 74 | |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,518 | 1,673 | $ 1,463 |
Int’l | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43 | 42 | |
Int’l | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 126 | 74 | 82 |
Int’l | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 60 | |
Int’l | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 34 | |
Int’l | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 26 | 16 |
Int’l | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 5 | |
Int’l | Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 5 | 12 |
Int’l | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
Int’l | Real estate funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | 4 |
Int’l | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 8 | |
Int’l | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 8 | |
Int’l | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74 | 40 | |
Int’l | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35 | 0 | |
Int’l | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39 | 40 | 50 |
Int’l | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,349 | 1,557 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 59 | $ 56 |
United States | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 54 | $ 59 |
Pension Plans (Schedule Of Fair
Pension Plans (Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | $ 1,732 | |
Fair value of plan assets at end of period | 1,572 | $ 1,732 |
Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 74 | |
Fair value of plan assets at end of period | 126 | 74 |
Int’l | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1,673 | 1,463 |
Foreign exchange impact | (114) | 186 |
Fair value of plan assets at end of period | 1,518 | 1,673 |
Int’l | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 74 | 82 |
Return on assets held at end of year | (3) | (1) |
Return on assets sold during the year | 8 | 3 |
Purchases, sales and settlements | 39 | (15) |
Transfers | 13 | |
Foreign exchange impact | (5) | 5 |
Fair value of plan assets at end of period | 126 | 74 |
Int’l | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 60 | |
Fair value of plan assets at end of period | 84 | 60 |
Int’l | Equities | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 26 | 16 |
Return on assets held at end of year | 1 | 3 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 11 | 5 |
Transfers | 48 | |
Foreign exchange impact | (2) | 2 |
Fair value of plan assets at end of period | 84 | 26 |
Int’l | Fixed income funds and securities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 5 | |
Fair value of plan assets at end of period | 2 | 5 |
Int’l | Fixed income funds and securities | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 5 | 12 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | (3) | (8) |
Transfers | 0 | |
Foreign exchange impact | 0 | 1 |
Fair value of plan assets at end of period | 2 | 5 |
Int’l | Real estate funds | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 3 | |
Fair value of plan assets at end of period | 1 | 3 |
Int’l | Real estate funds | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 3 | 4 |
Return on assets held at end of year | (1) | (1) |
Return on assets sold during the year | 1 | 0 |
Purchases, sales and settlements | (2) | (1) |
Transfers | 0 | |
Foreign exchange impact | 0 | 1 |
Fair value of plan assets at end of period | 1 | 3 |
Int’l | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 40 | |
Fair value of plan assets at end of period | 74 | 40 |
Int’l | Other | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 40 | 50 |
Return on assets held at end of year | (3) | (3) |
Return on assets sold during the year | 7 | 3 |
Purchases, sales and settlements | 33 | (11) |
Transfers | (35) | |
Foreign exchange impact | (3) | 1 |
Fair value of plan assets at end of period | $ 39 | $ 40 |
Pension Plans (Schedule Of Expe
Pension Plans (Schedule Of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 5 |
2,020 | 5 |
2,021 | 5 |
2,022 | 5 |
2,023 | 5 |
Years 2024 - 2028 | 25 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 63 |
2,020 | 65 |
2,021 | 66 |
2,022 | 68 |
2,023 | 70 |
Years 2024 - 2028 | $ 374 |
Debt And Other Credit Facilit_3
Debt And Other Credit Facilities (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Apr. 25, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,248 | $ 470 | |
Less: current portion | 22 | 0 | |
Total long-term debt, net of current portion | 1,226 | 470 | |
Term Loan A | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (5) | 0 | |
Term Loan B | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (18) | 0 | |
Secured Debt | Term Loan A | |||
Debt Instrument [Line Items] | |||
Debt component - net carrying value | 190 | 0 | |
Total long-term debt | $ 350 | ||
Secured Debt | Term Loan B | |||
Debt Instrument [Line Items] | |||
Debt component - net carrying value | 796 | 0 | |
Total long-term debt | $ 800 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Debt component - net carrying value | 350 | 0 | |
Unamortized debt issuance costs | (65) | 0 | |
Revolving Credit Facility | Revolving credit agreement, terminated April 2018 | |||
Debt Instrument [Line Items] | |||
Debt component - net carrying value | $ 0 | $ 470 |
Debt And Other Credit Facilit_4
Debt And Other Credit Facilities (Narrative) (Details) $ / shares in Units, £ in Millions | Apr. 25, 2018USD ($) | Dec. 31, 2018USD ($)transporter$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£) | Nov. 15, 2018USD ($)$ / shares | Nov. 12, 2018USD ($) | Apr. 12, 2018 |
Debt Instrument [Line Items] | ||||||||
Revolving credit agreement | $ 1,248,000,000 | $ 470,000,000 | ||||||
Nonrecourse project debt | 17,000,000 | 28,000,000 | £ 62 | |||||
Proceeds from sale of warrants | $ 22,000,000 | $ 0 | $ 0 | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 40.02 | |||||||
Percentage of strike price | 164.00% | |||||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Subordinated notes payable, interest rate | 11.25% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Subordinated notes payable, interest rate | 16.00% | |||||||
Term Loan A | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 85,000,000 | |||||||
Term Loan B | LIBOR Margin | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.75% | |||||||
Credit Agreement Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional borrowing capacity | $ 100,000,000 | |||||||
Letters Of Credit, Surety Bonds And Bank Guarantees | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding relate to joint venture operations | $ 172,000,000 | |||||||
Nonrecourse Project Finance Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Nonrecourse project debt | £ | £ 88.9 | |||||||
Ownership percentage (in percentage) | 50.00% | 50.00% | ||||||
Number of heavy equipment transporters | transporter | 91 | |||||||
Number of heavy equipment transporters, term period, in years | 22 years | |||||||
Non-recourse debt bridge financing | £ | £ 12.2 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||
Secured Debt | Term Loan A | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit agreement | $ 350,000,000 | |||||||
Percentage of aggregate principal | 2.50% | |||||||
Covenant, leverage ratio | 3.50 | |||||||
Covenant, interest coverage ratio | 3 | |||||||
Secured Debt | Term Loan A | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Covenant, leverage ratio | 4.50 | |||||||
Secured Debt | Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit agreement | $ 800,000,000 | |||||||
Percentage of aggregate principal | 0.25% | |||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 39.1961 | |||||||
Repayments of debt | $ 40,000,000 | |||||||
Convertible Debt | Notes Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount due at maturity | $ 350,000,000 | |||||||
Interest rate, stated percentage | 2.50% | |||||||
Guaranteed secured bonds, percentage | 6.50% | |||||||
Interest cost, contractual coupon | 1,000,000 | |||||||
Interest cost, amortization of discount | 1,000,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 25.51 | |||||||
Letter of Credit | Credit Agreement Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional borrowing capacity | $ 100,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | 115,000,000 | |||||||
Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | 26,000,000 | ||||||
Long-term line of credit | 0 | |||||||
Line of credit facility, remaining borrowing capacity | 474,000,000 | |||||||
Letter of Credit | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | 93,000,000 | ||||||
Line of credit facility, remaining borrowing capacity | 407,000,000 | |||||||
Letter of Credit | Line of Credit | Committed Line Of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount due at maturity | 1,000,000,000 | |||||||
Letter of Credit | Line of Credit | Uncommitted Line Of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 304,000,000 | |||||||
Face amount due at maturity | $ 976,000,000 | |||||||
Line of credit facility, remaining borrowing capacity | 95,000,000 | |||||||
Letters of credit, outstanding amount | $ 209,000,000 | |||||||
Class A 3.5% Index Linked Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Guaranteed secured bonds, percentage | 3.50% | 3.50% | ||||||
Class B 5.9% Fixed Rate Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Guaranteed secured bonds, percentage | 5.90% | 5.90% | ||||||
United Kingdom, Pounds | Class A 3.5% Index Linked Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured bonds | £ | £ 56 | |||||||
United Kingdom, Pounds | Class B 5.9% Fixed Rate Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured bonds | £ | £ 20.7 |
Debt And Other Credit Facilit_5
Debt And Other Credit Facilities (Consolidated Leverage Ratio) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Greater than or equal to 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Unused commitment fee percentage | 0.45% |
Greater than or equal to 4.00 to 1.00 | Revolver and Term Loan A | LIBOR Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.25% |
Greater than or equal to 4.00 to 1.00 | Revolver and Term Loan A | Base Rate Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Unused commitment fee percentage | 0.40% |
Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | Revolver and Term Loan A | LIBOR Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.00% |
Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | Revolver and Term Loan A | Base Rate Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Unused commitment fee percentage | 0.375% |
Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | Revolver and Term Loan A | LIBOR Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.75% |
Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | Revolver and Term Loan A | Base Rate Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
Less than 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Unused commitment fee percentage | 0.35% |
Less than 2.00 to 1.00 | Revolver and Term Loan A | LIBOR Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Less than 2.00 to 1.00 | Revolver and Term Loan A | Base Rate Margin | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Performance Letter of Credit Fee | Greater than or equal to 4.00 to 1.00 | Line of Credit | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 1.95% |
Performance Letter of Credit Fee | Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | Line of Credit | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 1.80% |
Performance Letter of Credit Fee | Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | Line of Credit | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 1.65% |
Performance Letter of Credit Fee | Less than 2.00 to 1.00 | Line of Credit | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 1.50% |
Debt And Other Credit Facilit_6
Debt And Other Credit Facilities (Debt and Equity Component) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Payments of debt issuance costs | $ 57,000,000 | $ 0 | $ 0 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (65,000,000) | 0 | |
Debt component - net carrying value | 350,000,000 | $ 0 | |
Convertible Debt | Notes Due November 2023 | |||
Debt Instrument [Line Items] | |||
Face amount due at maturity | 350,000,000 | ||
Unamortized debt discount | (57,000,000) | ||
Unamortized debt issuance costs | (8,000,000) | ||
Debt component - net carrying value | 285,000,000 | ||
Equity method investments | 57,000,000 | ||
Payments of debt issuance costs | 9,000,000 | ||
Additional Paid-in Capital | Convertible Debt | Notes Due November 2023 | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (1,000,000) |
Debt And Other Credit Facilit_7
Debt And Other Credit Facilities (Schedule of Debt Maturities) (Details) - Nonrecourse Project Finance Debt $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 10 |
2,020 | 11 |
2,021 | 5 |
2,022 | 1 |
2,023 | 0 |
Beyond 2,023 | $ 0 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
United States | $ 44 | $ 84 | $ (250) |
Foreign | 354 | 165 | 283 |
Total | 398 | 249 | 33 |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 203 | 40 | 55 |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 10 | (28) | 38 |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | (2) | 15 | (8) |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 61 | 42 | 66 |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 13 | 20 | 76 |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | $ 69 | $ 76 | $ 56 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
(Provision) Benefit for income taxes | $ (88) | $ 193 | $ (84) |
Shareholders' equity, foreign currency translation adjustment | (2) | 6 | (3) |
Shareholders' equity, pension and post-retirement benefits | (14) | (27) | 45 |
Shareholders' equity, changes in fair value of derivatives | 3 | 0 | 0 |
Total income taxes | $ (101) | $ 172 | $ (42) |
Income Taxes (Components Of The
Income Taxes (Components Of The Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal | |||
Current | $ (1) | $ (6) | $ (5) |
Deferred | (6) | 230 | 9 |
Total | (7) | 224 | 4 |
Foreign Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current | (58) | (122) | (61) |
Deferred | (20) | 92 | (26) |
Total | (78) | (30) | (87) |
Other Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current | (2) | (2) | 0 |
Deferred | (1) | 1 | (1) |
Total | (3) | (1) | (1) |
Current Income Tax Expense (Benefit) | (61) | (130) | (66) |
Deferred Income Tax Expense (Benefit) | (27) | 323 | (18) |
Provision for income taxes | $ (88) | $ 193 | $ (84) |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Foreign Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ 78 | $ 30 | $ 87 |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (32) | (7) | (6) |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (10) | 6 | 0 |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (6) | 0 | 1 |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (16) | (10) | (24) |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (1) | 1 | (22) |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (13) | $ (20) | $ (36) |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | 21.00% | 35.00% | 35.00% |
Increase (reduction) in tax rate from: | |||
Rate differentials on foreign earnings | (4.00%) | (5.00%) | (28.00%) |
Noncontrolling interests and equity earnings | (1.00%) | (2.00%) | (28.00%) |
State and local income taxes, net of federal benefit | 1.00% | 1.00% | 0.00% |
Other permanent differences, net | 4.00% | (8.00%) | 54.00% |
Contingent liability accrual | 3.00% | (2.00%) | 41.00% |
U.S. taxes on foreign unremitted earnings | 0.00% | 0.00% | 174.00% |
Change in valuation allowance | (2.00%) | (90.00%) | 3.00% |
Effective tax rate on income from operations | 22.00% | (78.00%) | 255.00% |
United States | |||
Increase (reduction) in tax rate from: | |||
Rate change | 0.00% | (7.00%) | 0.00% |
United Kingdom | |||
Increase (reduction) in tax rate from: | |||
Rate change | 0.00% | 0.00% | 4.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Decrease to deferred tax liability | $ 5 | $ 18 | |||
Transition tax | $ 227 | 146 | |||
Valuation allowances | 207 | 207 | 217 | ||
Increase (decrease) in valuation allowance | 10 | 325 | |||
Income from foreign sources | 753 | ||||
Income from domestic sources | 374 | ||||
Undistributed earnings of foreign subsidiaries | 1,500 | 1,500 | |||
Unrecognized tax benefits | 76 | 76 | |||
Decrease in unrecognized tax benefits | 3 | 3 | |||
Income tax penalties and interest accrued | 19 | 19 | 21 | ||
Income tax penalties and interest expense | 1 | 5 | $ 1 | ||
Due to former parent upon receipt from IRS | $ 5 | 5 | 5 | ||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase (decrease) in valuation allowance | 96 | $ 163 | $ (72) | ||
Federal Deferred Tax Asset | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase (decrease) in valuation allowance | (223) | ||||
Foreign Tax Credit Carryforwards | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase (decrease) in valuation allowance | $ (17) | (152) | |||
Other Net Deferred Tax Assets | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase (decrease) in valuation allowance | $ (71) |
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, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Employee compensation and benefits | $ 95 | $ 122 |
Foreign tax credit carryforwards | 267 | 279 |
Accrued foreign tax credit carryforwards | 0 | 0 |
Loss carryforwards | 103 | 90 |
Insurance accruals | 9 | 8 |
Allowance for bad debt | 2 | 3 |
Accrued liabilities | 23 | 30 |
Construction contract accounting | 0 | 5 |
Other | 3 | 15 |
Total gross deferred tax assets | 502 | 552 |
Valuation allowances | (207) | (217) |
Net deferred tax assets | 295 | 335 |
Deferred tax liabilities: | ||
Construction contract accounting | (1) | 0 |
Intangible amortization | (57) | (20) |
Indefinite-lived intangible amortization | (41) | (31) |
Fixed asset depreciation | 1 | 2 |
Accrued foreign tax credit carryforwards | (2) | (4) |
Total gross deferred tax liabilities | (100) | (53) |
Deferred Tax Assets, Net | $ 195 | $ 282 |
Income Taxes Income Taxes (Summ
Income Taxes Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | $ 402 | |
Valuation Allowance | (207) | $ (217) |
Deferred Tax Assets, Net | 195 | $ 282 |
United States | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 363 | |
Valuation Allowance | (161) | |
Deferred Tax Assets, Net | 202 | |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | (10) | |
Valuation Allowance | 0 | |
Deferred Tax Liability, Net | (10) | |
Australia | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 11 | |
Valuation Allowance | (1) | |
Deferred Tax Assets, Net | 10 | |
Canada | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 28 | |
Valuation Allowance | (24) | |
Deferred Tax Assets, Net | 4 | |
Other countries | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 10 | |
Valuation Allowance | (21) | |
Deferred Tax Liability, Net | $ (11) |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Foreign tax credit carryforwards | $ 252 |
Foreign net operating loss carryforwards | 147 |
Foreign net operating loss carryforwards | 124 |
State net operating loss carryforwards | $ 735 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning balance | $ 184 | $ 261 | $ 257 |
Increases related to current year tax positions | 1 | 2 | 2 |
Increases related to tax positions from acquisitions | 0 | 0 | 14 |
Increases related to prior year tax positions | 18 | 1 | 10 |
Decreases related to prior year tax positions | (45) | (1) | (4) |
Settlements | (62) | (80) | (10) |
Lapse of statute of limitations | (2) | (1) | (6) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | (4) | 2 | (2) |
Unrecognized Tax Benefits, Ending balance | $ 90 | $ 184 | $ 261 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)lawsuitdefendent | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 12, 2017USD ($) | Mar. 31, 2011USD ($) | |
United States Government Contract Work [Line Items] | |||||
Cost of revenues | $ 4,457 | $ 3,829 | $ 4,156 | ||
All Defense Contract Audit Agency Audit Issues | |||||
United States Government Contract Work [Line Items] | |||||
Billed costs | 134 | ||||
Cost of revenues | 61 | ||||
Government contract receivable | 73 | 79 | |||
Total amount of payments withheld from subcontractors as result of disapproved costs related to Dcaa form 1 issued to enterprise | 26 | ||||
Reserve for potentially disallowable costs incurred under government contracts | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | 41 | 51 | |||
Private Security | |||||
United States Government Contract Work [Line Items] | |||||
Billed costs | 56 | ||||
Cost of revenues | 11 | ||||
Government contract receivable | 45 | $ 45 | |||
First Kuwaiti Trading Company Arbitration | |||||
United States Government Contract Work [Line Items] | |||||
Damages awarded, value | 17 | ||||
Accounts payable | 32 | ||||
Payments on contract work | $ 19 | ||||
Howard qui tam | |||||
United States Government Contract Work [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 628 | ||||
DOJFCA | |||||
United States Government Contract Work [Line Items] | |||||
Loss contingency, number of defendants | defendent | 3 | ||||
Minimum | Burn Pit Litigation | |||||
United States Government Contract Work [Line Items] | |||||
Loss contingency, pending claims, number | lawsuit | 60 | ||||
Contract Liabilities | Reserve for potentially disallowable costs incurred under government contracts | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | $ 26 | 31 | |||
Other Liabilities | Reserve for potentially disallowable costs incurred under government contracts | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | 15 | $ 20 | |||
Other Current Liabilities | First Kuwaiti Trading Company Arbitration | |||||
United States Government Contract Work [Line Items] | |||||
Payments on contract work | $ 30 |
Other Commitments And Conting_3
Other Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Apr. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||||
Litigation settlement, amount awarded from other party | $ 435 | |||
Additional revenue and gross profit recognized | $ 35 | |||
Total rent expense | $ 144 | 139 | $ 154 | |
Deferred rent credit, noncurrent | 92 | 99 | ||
Self insurance reserve, noncurrent | 48 | 42 | ||
Other Current Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Deferred rent credit | 5 | 4 | ||
Self insurance reserve, noncurrent | 3 | 9 | ||
Accounts Payable and Accrued Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | 16 | 8 | ||
Other Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | $ 29 | $ 25 |
Other Commitments And Conting_4
Other Commitments And Contingencies (Future Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 76 |
2,020 | 48 |
2,021 | 39 |
2,022 | 32 |
2,023 | 29 |
Beyond 2,023 | $ 143 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activities) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | $ 1,221 | $ 1,221 | $ 745 | $ 1,221 | $ 745 | $ 1,052 | |||||||
Acquisition of noncontrolling interest | 69 | (8) | 0 | ||||||||||
Cumulative effect of change in accounting policy, net of tax of $6 | 144 | ||||||||||||
Adjusted balance | $ 1,365 | 1,365 | 745 | $ 1,052 | |||||||||
Noncontrolling Interest, Increase From Consolidation Of Variable Interest Entity | 69 | ||||||||||||
Share-based compensation | 10 | 12 | 18 | ||||||||||
Tax benefit decrease related to share-based plans | 1 | 1 | |||||||||||
Common stock issued upon exercise of stock options | 2 | 0 | 0 | ||||||||||
Dividends declared to shareholders | (44) | (45) | (46) | ||||||||||
Repurchases of common stock | (3) | (53) | (4) | ||||||||||
Issuance of ESPP shares | 3 | 3 | 3 | ||||||||||
Issuance of convertible debt and call spread overlay | 18 | ||||||||||||
Investments by noncontrolling interests | 0 | 1 | 0 | ||||||||||
Distributions to noncontrolling interests | (3) | (4) | (9) | ||||||||||
Other noncontrolling interests activity | 2 | 0 | 0 | ||||||||||
Net income (loss) | $ 49 | $ 60 | $ 62 | 139 | 278 | $ 47 | $ 79 | 38 | 310 | 442 | (51) | ||
Other comprehensive income (loss), net of tax | 8 | 128 | (219) | ||||||||||
Ending Balance | 1,738 | 1,221 | 1,738 | 1,221 | 745 | ||||||||
Cumulative effect of change in accounting policy, tax impact | 6 | ||||||||||||
PIC | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | 2,091 | 2,091 | 2,088 | 2,091 | 2,088 | 2,070 | |||||||
Acquisition of noncontrolling interest | (8) | ||||||||||||
Adjusted balance | 2,091 | 2,091 | |||||||||||
Noncontrolling Interest, Increase From Consolidation Of Variable Interest Entity | 69 | ||||||||||||
Share-based compensation | 10 | 12 | 18 | ||||||||||
Tax benefit decrease related to share-based plans | 1 | 1 | |||||||||||
Common stock issued upon exercise of stock options | 2 | ||||||||||||
Issuance of ESPP shares | (1) | (1) | (1) | ||||||||||
Issuance of convertible debt and call spread overlay | 18 | ||||||||||||
Ending Balance | 2,190 | 2,091 | 2,190 | 2,091 | 2,088 | ||||||||
Retained Earnings | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | 877 | 877 | 488 | 877 | 488 | 595 | |||||||
Cumulative effect of change in accounting policy, net of tax of $6 | 144 | ||||||||||||
Adjusted balance | 1,021 | 1,021 | |||||||||||
Dividends declared to shareholders | (44) | (45) | (46) | ||||||||||
Net income (loss) | 281 | 434 | (61) | ||||||||||
Ending Balance | 1,258 | 877 | 1,258 | 877 | 488 | ||||||||
Treasury Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | (818) | (818) | (769) | (818) | (769) | (769) | |||||||
Adjusted balance | (818) | (818) | |||||||||||
Repurchases of common stock | (3) | (53) | (4) | ||||||||||
Issuance of ESPP shares | 4 | 4 | 4 | ||||||||||
Ending Balance | (817) | (818) | (817) | (818) | (769) | ||||||||
AOCL | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | (921) | (921) | (1,050) | (921) | (1,050) | (831) | |||||||
Adjusted balance | (921) | (921) | |||||||||||
Other comprehensive income (loss), net of tax | 8 | 129 | (219) | ||||||||||
Ending Balance | (913) | (921) | (913) | (921) | (1,050) | ||||||||
NCI | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning Balance | $ (8) | $ (8) | $ (12) | (8) | (12) | (13) | |||||||
Adjusted balance | (8) | (8) | |||||||||||
Investments by noncontrolling interests | 1 | ||||||||||||
Distributions to noncontrolling interests | (3) | (4) | (9) | ||||||||||
Other noncontrolling interests activity | 2 | ||||||||||||
Net income (loss) | 29 | 8 | 10 | ||||||||||
Other comprehensive income (loss), net of tax | (1) | 0 | |||||||||||
Ending Balance | $ 20 | $ (8) | $ 20 | $ (8) | $ (12) |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (913) | $ (921) | $ (1,050) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 1,221 | 745 | 1,052 |
Other comprehensive income adjustments before reclassifications | (31) | 105 | |
Amounts reclassified from accumulated other comprehensive income | 39 | 24 | |
Ending Balance | 1,738 | 1,221 | 745 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (921) | (1,050) | |
Ending Balance | (913) | (921) | (1,050) |
Accumulated foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (307) | (258) | (262) |
Other comprehensive income (loss), tax | 2 | 4 | (2) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (258) | (262) | |
Other comprehensive income adjustments before reclassifications | (55) | 4 | |
Amounts reclassified from accumulated other comprehensive income | 6 | 0 | |
Ending Balance | (307) | (258) | (262) |
Pension and post-retirement benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (592) | (660) | (785) |
Other comprehensive income (loss), tax | 213 | 227 | 254 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (660) | (785) | |
Other comprehensive income adjustments before reclassifications | 44 | 100 | |
Amounts reclassified from accumulated other comprehensive income | 24 | 25 | |
Ending Balance | (592) | (660) | (785) |
Changes in fair value of derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (14) | (3) | (3) |
Other comprehensive income (loss), tax | 3 | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (3) | (3) | |
Other comprehensive income adjustments before reclassifications | (20) | 1 | |
Amounts reclassified from accumulated other comprehensive income | 9 | (1) | |
Ending Balance | $ (14) | $ (3) | $ (3) |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net pension and post-retirement benefits | $ (39) | $ (24) |
Pension and post-retirement benefits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of actuarial loss | (28) | (31) |
Tax benefit (expense) | 4 | 6 |
Net pension and post-retirement benefits | $ (24) | $ (25) |
Shareholders' Equity (Shares Of
Shareholders' Equity (Shares Of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 176,638,882 | 175,900,000 |
Common stock issued (in shares) | 800,000 | 700,000 |
Ending balance (in shares) | 177,383,302 | 176,638,882 |
Shareholders' Equity (Shares _2
Shareholders' Equity (Shares Of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 36,472,293 | 33,100,000 | |
Beginning balance | $ 818 | $ 769 | |
Treasury stock acquired, net of ESPP shares issued (in shares) | 0 | 3,400,000 | |
Treasury stock acquired, net of ESPP shares issued | $ (1) | $ (49) | |
Ending balance (in shares) | 36,483,270 | 36,472,293 | 33,100,000 |
Ending balance | $ 817 | $ 818 | $ 769 |
Dividends declared to shareholders | (44) | (45) | $ (46) |
Dividend payable | $ 11 | $ 11 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Percentage of employee's earnings withheld | 10.00% | |||
Number of Shares (in shares) | 175,469 | 3,536,204 | ||
Average Price per Share (in dollars per share) | $ 15.81 | $ 14.96 | ||
Repurchases of common stock | $ 3,000,000 | $ 53,000,000 | $ 4,000,000 | |
Share Repurchase Program 2014 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 350,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 | |||
Number of Shares (in shares) | 0 | 3,310,675 | ||
Average Price per Share (in dollars per share) | $ 0 | $ 14.93 | ||
Repurchases of common stock | $ 0 | $ 49,000,000 | ||
Share Maintenance Plan | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of Shares (in shares) | 0 | 34,691 | ||
Average Price per Share (in dollars per share) | $ 0 | $ 14.93 | ||
Repurchases of common stock | $ 0 | $ 1,000,000 | ||
Withheld to cover shares | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of Shares (in shares) | 175,469 | 190,838 | ||
Average Price per Share (in dollars per share) | $ 15.81 | $ 15.57 | ||
Repurchases of common stock | $ 3,000,000 | $ 3,000,000 |
Share-based Compensation And _3
Share-based Compensation And Incentive Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
May 31, 2016 | May 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected term | 10 years | ||||||||
Income tax benefit recognized in net income for share-based compensation | $ 2,000,000 | $ 4,000,000 | $ 6,000,000 | ||||||
Share-based compensation expense | $ 10,000,000 | 12,000,000 | 18,000,000 | ||||||
Stock Compensation Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (shares) | 4,400,000 | 2,000,000 | |||||||
Common stock reserved for issuance (shares) | 16,400,000 | 6,100,000 | 6,100,000 | ||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total intrinsic values of options exercised | $ 100,000 | 400,000 | 100,000 | ||||||
Unrecognized compensation cost, net of estimated forfeitures | 0 | $ 0 | |||||||
Stock option compensation expense | 0 | 1,000,000 | 3,000,000 | ||||||
Income tax benefit recognized in net income for share-based compensation | $ 0 | $ 0 | $ 1,000,000 | ||||||
Maximum withhold percentage | 10.00% | 10.00% | |||||||
Percentage of discount on stock price | 5.00% | ||||||||
ESPP stock issued (shares) | 164,000 | 173,000 | |||||||
KBR Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation cost, net of estimated forfeitures | $ 10,000,000 | $ 10,000,000 | |||||||
Weighted average grant-date fair value per share (in dollars per share) | $ 15.93 | $ 15.11 | $ 13.94 | ||||||
Restricted stock compensation expense | $ 10,000,000 | $ 11,000,000 | $ 15,000,000 | ||||||
Income tax benefit recognized in net income for share-based compensation | $ 2,000,000 | 4,000,000 | 5,000,000 | ||||||
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 9 months 7 days | ||||||||
Weighted-Average Fair Value On Vesting Date | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total fair value of shares vested based on the weighted-average fair value | $ 10,000,000 | 10,000,000 | 11,000,000 | ||||||
Weighted-Average Fair Value On Grant Date | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total fair value of shares vested based on the weighted-average fair value | $ 10,000,000 | $ 11,000,000 | $ 19,000,000 | ||||||
Cash Performance Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of average total shareholder return | 50.00% | 50.00% | 50.00% | ||||||
Percentage of job income sold | 50.00% | 50.00% | 50.00% | ||||||
Period of target level average | 3 years | ||||||||
Number of shares, granted (shares) | 18,000,000 | 19,000,000 | 22,000,000 | ||||||
Award vesting period | 3 years | ||||||||
Number of cash performance based award units forfeited (shares) | 3,000,000 | 5,000,000 | 9,000,000 | ||||||
Outstanding awards balance (shares) | 47,000,000 | 47,000,000 | |||||||
Expense for cash performance awards | $ 15,000,000 | $ 22,000,000 | $ 5,000,000 | ||||||
Liability for awards due within one year | 13,000,000 | 17,000,000 | $ 13,000,000 | ||||||
Liability for awards | 17,000,000 | $ 15,000,000 | $ 17,000,000 | ||||||
Cost of Sales | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | 2,000,000 | ||||||||
Selling, General and Administrative Expenses | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 8,000,000 | ||||||||
Restricted Stock Units (RSUs) | Stock Compensation Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (shares) | 4,400,000 | ||||||||
Common stock reserved for issuance (shares) | 9,900,000 | 3,300,000 | 3,300,000 | ||||||
Cash Performance Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares, granted (shares) | 19,000,000 | 22,000,000 | 22,000,000 | ||||||
Scenario, Forecast | Cash Performance Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | 3 years |
Share-based Compensation And _4
Share-based Compensation And Incentive Plans (Summary Of Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at December 31, Number of Shares (in shares) | 2,351,000 | |
Granted, Number of Shares (in shares) | 0 | |
Exercised, Number of Shares (in shares) | (120,767) | |
Forfeited, Number of Shares (in shares) | (3,974) | |
Expired, Number of Shares (in shares) | (135,740) | |
Outstanding at December 31, Number of Shares (in shares) | 2,090,519 | 2,351,000 |
Exercisable, Number of Shares (in shares) | 2,088,340 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at December 31, Weighted Average Exercise Price per Share (usd per share) | $ 23.99 | |
Granted, Weighted Average Exercise Price per Share (usd per share) | 0 | |
Exercised, Weighted Average Exercise Price per Share (usd per share) | 14.39 | |
Forfeited, Weighted Average Exercise Price per Share (usd per share) | 17.04 | |
Expired, Weighted Average Exercise Price per Share (usd per share) | 27.40 | |
Outstanding at December 31, Weighted Average Exercise Price per Share (usd per share) | 24.34 | $ 23.99 |
Exercisable, Weighted Average Exercise Price per Share (usd per share) | $ 24.33 | |
Weighted Average Remaining Contractual Term (years) | 3 years 10 months 17 days | 4 years 10 months 13 days |
Exercisable, Weighted Average Remaining Contractual Term (years) | 3 years 10 months 17 days | |
Aggregate Intrinsic Value, beginning balance | $ 4,600 | |
Aggregate Intrinsic Value, ending balance | 830 | $ 4,600 |
Exercisable, Aggregate Intrinsic Value (in millions) | $ 830 |
Share-based Compensation And _5
Share-based Compensation And Incentive Plans (Summary Of Vested And Unvested RSUs) (Details) - KBR Restricted Stock | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested shares at December 31, Number of Shares (in shares) | shares | 1,184,834 |
Granted, Number of Shares (in shares) | shares | 678,600 |
Vested, Number of Shares (in shares) | shares | (628,169) |
Forfeited, Number of Shares (in shares) | shares | (98,474) |
Nonvested shares at December 31, Number of Shares (in shares) | shares | 1,136,791 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 15.15 |
Granted, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 15.93 |
Vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 15.65 |
Forfeited, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 15.31 |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 15.32 |
Share-based Compensation And _6
Share-based Compensation And Incentive Plans (Summary Of Share-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation | $ 10 | $ 12 | $ 18 |
Income tax benefit recognized in net income for share-based compensation | 2 | 4 | 6 |
Incremental compensation cost | $ 1 | $ 0 | $ 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding (shares) | 140 | 141 | 142 |
Stock options and restricted shares (shares) | 1 | 0 | 0 |
Diluted weighted average common shares outstanding (shares) | 141 | 141 | 142 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Undistributed earnings (loss) allocated to participating securities, diluted | $ 1,800,000 | $ 3,000,000 | $ 0 |
Earnings undistributed (in dollars per share) | $ 0.01 | $ 0.02 | $ 0 |
Antidilutive weighted average shares (shares) | 1.5 | 2.1 | 3 |
Financial Instruments And Ris_3
Financial Instruments And Risk Management (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 10, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Maximum length of time hedged in balance sheet hedge | 15 days | ||
Maximum length of time hedged in cash flow hedge | 19 months | ||
Balance Sheet Hedges - Fair Value | $ 0 | $ 5,000,000 | |
Balance Sheet Position - Remeasurement | (9,000,000) | (16,000,000) | |
Net | (9,000,000) | $ (11,000,000) | |
Balance Sheet Hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 55,000,000 | ||
Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Gross notional value | $ 56,000,000 | ||
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | $ 500,000,000 | ||
Maximum length of time hedged in balance sheet hedge | 4 years | ||
Interest rate, fair value | $ 12,000,000 | ||
Unrealized loss on interest rate swap | 12,000,000 | ||
Interest Rate Swap | Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate, fair value | 3,000,000 | ||
Interest Rate Swap | Long-term Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate, fair value | $ 9,000,000 | ||
LIBOR Margin | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Fixed interest rate | 3.055% |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) | 1 Months Ended |
Feb. 29, 2016lease | |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of leases identified | 2,000 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 937 | $ 1,034 | $ 1,094 | $ 1,106 | $ 4,913 | $ 4,171 | $ 4,268 |
Gross profit | 123 | 122 | 130 | 81 | 65 | 87 | 108 | 82 | 456 | 342 | 112 |
Equity in earnings of unconsolidated affiliates | 27 | 21 | 10 | 23 | 8 | 23 | 32 | 9 | 81 | 72 | 91 |
Operating income (loss) | 88 | 103 | 98 | 181 | 27 | 73 | 103 | 63 | 470 | 266 | 28 |
Net income (loss) | 49 | 60 | 62 | 139 | 278 | 47 | 79 | 38 | 310 | 442 | (51) |
Net income attributable to noncontrolling interests | (6) | (2) | (20) | (1) | (3) | (2) | (2) | (1) | (29) | (8) | (10) |
Net income (loss) attributable to KBR | $ 43 | $ 58 | $ 42 | $ 138 | $ 275 | $ 45 | $ 77 | $ 37 | $ 281 | $ 434 | $ (61) |
Net income (loss) attributable to KBR per share—Basic (usd per share) | $ 0.31 | $ 0.41 | $ 0.30 | $ 0.98 | $ 1.94 | $ 0.32 | $ 0.54 | $ 0.26 | $ 1.99 | $ 3.06 | $ (0.43) |
Net income (loss) attributable to KBR per share—Diluted (usd per share) | $ 0.31 | $ 0.41 | $ 0.30 | $ 0.97 | $ 1.94 | $ 0.32 | $ 0.54 | $ 0.26 | $ 1.99 | $ 3.06 | $ (0.43) |
Increase (decrease) in valuation allowance | $ 10 | $ 325 | |||||||||
Favorable impact related to TCJA | $ 18 | 18 | |||||||||
Aspire | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Gain on consolidation | $ 108 | ||||||||||
Federal Deferred Tax Asset | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Increase (decrease) in valuation allowance | $ (223) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 12 | $ 14 | $ 17 |
Charged to Costs and Expenses | 3 | 0 | (2) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (6) | (2) | (1) |
Balance at End of Period | 9 | 12 | 14 |
Reserve for losses on uncompleted contracts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 15 | 63 | 60 |
Charged to Costs and Expenses | 9 | 4 | 331 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (18) | (52) | (328) |
Balance at End of Period | 6 | 15 | 63 |
Reserve for potentially disallowable costs incurred under government contracts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 60 | 73 | 50 |
Charged to Costs and Expenses | 13 | 1 | 10 |
Charged to Other Accounts | 2 | 0 | 16 |
Deductions | (20) | (14) | (3) |
Balance at End of Period | 55 | $ 60 | 73 |
Reserves recorded as a reduction of revenue | 3 | 6 | |
SGT | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts | $ 2 | ||
HTSI and Wyle | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts | $ 10 |