Cover Page
Cover Page | Jul. 29, 2021 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 29, 2021 |
Entity Registrant Name | KBR, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-33146 |
Entity Tax Identification Number | 20-4536774 |
Entity Address, Address Line One | 601 Jefferson Street |
Entity Address, Address Line Two | Suite 3400 |
Entity Address, City or Town | Houston, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | 713 |
Local Phone Number | 753-2000 |
Title of 12(b) Security | Common Stock, $0.001 par value |
Trading Symbol | KBR |
Security Exchange Name | NYSE |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Amendment Flag | true |
Amendment Description | to update the historical financial information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 |
Entity Central Index Key | 0001357615 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 5,767,000,000 | $ 5,639,000,000 | $ 4,913,000,000 |
Cost of revenues | (5,101,000,000) | (4,986,000,000) | (4,329,000,000) |
Gross profit | 666,000,000 | 653,000,000 | 584,000,000 |
Equity in earnings of unconsolidated affiliates | 30,000,000 | 35,000,000 | 79,000,000 |
Selling, general and administrative expenses | (335,000,000) | (341,000,000) | (294,000,000) |
Acquisition and integration related costs | (9,000,000) | (2,000,000) | (7,000,000) |
Goodwill impairment | (99,000,000) | 0 | 0 |
Restructuring charges and asset impairments | (214,000,000) | 0 | 0 |
Gain (loss) on disposition of assets and investments | 18,000,000 | 17,000,000 | (2,000,000) |
Gain on consolidation of Aspire subcontracting entities | 0 | 0 | 108,000,000 |
Operating income | 57,000,000 | 362,000,000 | 468,000,000 |
Interest expense | (83,000,000) | (99,000,000) | (66,000,000) |
Other non-operating income (loss) | 1,000,000 | 5,000,000 | (6,000,000) |
(Loss) income before income taxes and noncontrolling interests | (25,000,000) | 268,000,000 | 396,000,000 |
Provision for income taxes | (26,000,000) | (59,000,000) | (86,000,000) |
Net (loss) income | (51,000,000) | 209,000,000 | 310,000,000 |
Net income attributable to noncontrolling interests | (21,000,000) | (7,000,000) | (29,000,000) |
Net (loss) income attributable to KBR | $ (72,000,000) | $ 202,000,000 | $ 281,000,000 |
Net (loss) income attributable to KBR per share: | |||
Basic (usd per share) | $ (0.51) | $ 1.42 | $ 1.99 |
Diluted (usd per share) | $ (0.51) | $ 1.41 | $ 1.99 |
Basic weighted average common shares outstanding (in shares) | 142 | 141 | 140 |
Diluted weighted average common shares outstanding (in shares) | 142 | 142 | 141 |
Cash dividends declared per share (usd per share) | $ 0.40 | $ 0.32 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net (loss) income | $ (51) | $ 209 | $ 310 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 23 | (12) | (43) |
Pension and post-retirement benefits | (136) | (73) | 82 |
Changes in fair value of derivatives | (13) | (6) | (14) |
Other comprehensive (loss) income | (126) | (91) | 25 |
Income tax (expense) benefit: | |||
Foreign currency translation adjustments | 1 | 1 | (2) |
Pension and post-retirement benefits | 26 | 11 | (14) |
Changes in fair value of derivatives | 3 | 2 | 3 |
Income tax (expense) benefit | 30 | 14 | (13) |
Other comprehensive (loss) income, net of tax | (96) | (77) | 12 |
Comprehensive (loss) income | (147) | 132 | 322 |
Less: Comprehensive income attributable to noncontrolling interests | (21) | (7) | (29) |
Comprehensive (loss) income attributable to KBR | $ (168) | $ 125 | $ 293 |
Consolidated Balance Sheets
Consolidated Balance Sheets £ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Current assets: | ||
Cash and equivalents | $ 436 | $ 712 |
Accounts receivable, net of allowance for credit losses of $13 and $14 | 899 | 938 |
Contract assets | 178 | 215 |
Other current assets | 121 | 146 |
Total current assets | 1,634 | 2,011 |
Claims and accounts receivable | 30 | 59 |
Property, plant, and equipment, net of accumulated depreciation of $419 and $386 (including net PPE of $24 and $29 owned by a variable interest entity) | 130 | 130 |
Operating lease right-of-use assets | 154 | 175 |
Goodwill | 1,761 | 1,265 |
Intangible assets, net of accumulated amortization of $228 and $184 | 683 | 495 |
Equity in and advances to unconsolidated affiliates | 881 | 846 |
Deferred income taxes | 297 | 236 |
Other assets | 135 | 143 |
Total assets | 5,705 | 5,360 |
Current liabilities: | ||
Accounts payable | 574 | 572 |
Contract liabilities | 356 | 484 |
Accrued salaries, wages and benefits | 283 | 209 |
Nonrecourse project debt | 5 | 11 |
Operating lease liabilities | 44 | 39 |
Other current liabilities | 193 | 186 |
Total current liabilities | 1,455 | 1,501 |
Pension obligations | 381 | 277 |
Employee compensation and benefits | 110 | 115 |
Income tax payable | 96 | 92 |
Deferred income taxes | 26 | 16 |
Nonrecourse project debt | 2 | 7 |
Long term debt | 1,584 | 1,183 |
Operating lease liabilities | 186 | 192 |
Other liabilities | 256 | 124 |
Total liabilities | 4,096 | 3,507 |
KBR shareholders’ equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.001 par value 300,000,000 shares authorized, 179,087,655 and 178,330,201 shares issued, and 140,766,052 and 141,819,148 shares outstanding, respectively | 0 | 0 |
PIC | 2,222 | 2,206 |
Retained earnings | 1,305 | 1,437 |
Treasury stock, 38,321,603 shares and 36,511,053 shares, at cost, respectively | (864) | (817) |
AOCL | (1,083) | (987) |
Total KBR shareholders’ equity | 1,580 | 1,839 |
Noncontrolling interests | 29 | 14 |
Total shareholders’ equity | 1,609 | 1,853 |
Total liabilities and shareholders’ equity | $ 5,705 | $ 5,360 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables: | ||
Allowance for doubtful accounts receivable | $ 13 | $ 14 |
Property, plant, and equipment: | ||
Accumulated depreciation | 419 | 386 |
PP&E owned by a VIE, net | 24 | 29 |
Accumulated amortization | $ 228 | $ 184 |
KBR shareholders’ equity: | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 179,087,655 | 178,330,201 |
Common stock, shares outstanding (in shares) | 140,766,052 | 141,819,148 |
Treasury stock (in shares) | 38,321,603 | 36,511,053 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | PIC | Retained Earnings | Treasury Stock | AOCL | NCI | Adjustment | AdjustmentRetained Earnings | Adjusted balance | Adjusted balancePIC | Adjusted balanceRetained Earnings | Adjusted balanceTreasury Stock | Adjusted balanceAOCL | Adjusted balanceNCI |
Beginning Balance at Dec. 31, 2017 | $ 1,197 | $ 2,091 | $ 854 | $ (818) | $ (922) | $ (8) | $ 144 | $ 144 | $ 1,341 | $ 2,091 | $ 998 | $ (818) | $ (922) | $ (8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Acquisition of noncontrolling interest | 69 | 69 | ||||||||||||
Share-based compensation | 10 | 10 | ||||||||||||
Tax benefit decrease 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 (loss) income, net of tax | 12 | 12 | ||||||||||||
Ending Balance at Dec. 31, 2018 | 1,718 | 2,190 | 1,235 | (817) | (910) | 20 | 1,764 | 2,190 | 1,281 | (817) | (910) | 20 | ||
Ending Balance (ASC 606) at Dec. 31, 2018 | 25 | 25 | ||||||||||||
Ending Balance (ASC 842) at Dec. 31, 2018 | 21 | 21 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation | 12 | 12 | ||||||||||||
Tax benefit decrease related to share-based plans | (4) | |||||||||||||
Common stock issued upon exercise of stock options | 5 | 5 | ||||||||||||
Dividends declared to shareholders | (46) | (46) | ||||||||||||
Repurchases of common stock | (4) | (4) | ||||||||||||
Issuance of ESPP shares | 3 | (1) | 4 | |||||||||||
Investments by noncontrolling interests | 1 | 1 | ||||||||||||
Distributions to noncontrolling interests | (14) | (14) | ||||||||||||
Net income | 209 | 202 | 7 | |||||||||||
Other comprehensive (loss) income, net of tax | (77) | (77) | ||||||||||||
Ending Balance at Dec. 31, 2019 | $ 1,853 | 2,206 | 1,437 | (817) | (987) | 14 | $ (3) | $ (3) | $ 1,850 | $ 2,206 | $ 1,434 | $ (817) | $ (987) | $ 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||
Share-based compensation | $ 12 | 12 | ||||||||||||
Tax benefit decrease related to share-based plans | (4) | |||||||||||||
Common stock issued upon exercise of stock options | 4 | 4 | ||||||||||||
Dividends declared to shareholders | (57) | (57) | ||||||||||||
Repurchases of common stock | (51) | (51) | ||||||||||||
Issuance of ESPP shares | 4 | 4 | ||||||||||||
Distributions to noncontrolling interests | (4) | (4) | ||||||||||||
Other | (2) | (2) | ||||||||||||
Net income | (51) | (72) | 21 | |||||||||||
Other comprehensive (loss) income, net of tax | (96) | (96) | ||||||||||||
Ending Balance at Dec. 31, 2020 | $ 1,609 | $ 2,222 | $ 1,305 | $ (864) | $ (1,083) | $ 29 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share (usd per share) | $ 0.40 | $ 0.32 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net (loss) income | $ (51,000,000) | $ 209,000,000 | $ 310,000,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 115,000,000 | 104,000,000 | 63,000,000 |
Equity in earnings of unconsolidated affiliates | (30,000,000) | (35,000,000) | (79,000,000) |
Deferred income tax (benefit) expense | (40,000,000) | (14,000,000) | 26,000,000 |
(Gain) loss on disposition of assets | (18,000,000) | (17,000,000) | 2,000,000 |
Goodwill impairment | 99,000,000 | 0 | 0 |
Asset impairments | 98,000,000 | 0 | 0 |
Gain on consolidation of Aspire subcontracting entities | 0 | 0 | (108,000,000) |
Other | 43,000,000 | 34,000,000 | 24,000,000 |
Changes in operating assets and liabilities, net of acquired businesses: | |||
Accounts receivable, net of allowance for credit losses | 127,000,000 | (16,000,000) | (203,000,000) |
Contract assets | 39,000,000 | (31,000,000) | 25,000,000 |
Claims receivable | 29,000,000 | 39,000,000 | 3,000,000 |
Accounts payable | (40,000,000) | 23,000,000 | 112,000,000 |
Contract liabilities | (134,000,000) | 19,000,000 | (60,000,000) |
Accrued salaries, wages and benefits | 38,000,000 | (9,000,000) | 11,000,000 |
Payments on operating lease liabilities | (61,000,000) | (56,000,000) | 0 |
Payments from unconsolidated affiliates, net | 15,000,000 | 10,000,000 | 12,000,000 |
Distributions of earnings from unconsolidated affiliates | 38,000,000 | 69,000,000 | 75,000,000 |
Pension funding | (46,000,000) | (45,000,000) | (41,000,000) |
Restructuring reserve | 89,000,000 | 0 | 0 |
Other assets and liabilities | 57,000,000 | (28,000,000) | (7,000,000) |
Total cash flows provided by operating activities | 367,000,000 | 256,000,000 | 165,000,000 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (20,000,000) | (20,000,000) | (17,000,000) |
Proceeds from sale of assets or investments | 1,000,000 | 9,000,000 | 25,000,000 |
Investments in equity method joint ventures | (26,000,000) | (146,000,000) | (344,000,000) |
Acquisitions of businesses, net of cash acquired | (832,000,000) | 0 | (354,000,000) |
Adjustments to cash due to consolidation of Aspire entities | 0 | 0 | 197,000,000 |
Other | 0 | (1,000,000) | 2,000,000 |
Total cash flows used in investing activities | (877,000,000) | (158,000,000) | (491,000,000) |
Cash flows from financing activities: | |||
Borrowings on long term debt | 359,000,000 | 0 | 1,075,000,000 |
Borrowings on revolving credit agreement | 260,000,000 | 0 | 250,000,000 |
Payments on short-term and long-term borrowings | (281,000,000) | (70,000,000) | (100,000,000) |
Payments on revolving credit agreement | 0 | 0 | (720,000,000) |
Debt issuance costs | (5,000,000) | 0 | (57,000,000) |
Proceeds from sale of warrants | 0 | 0 | 22,000,000 |
Purchase of note hedges | 0 | 0 | (62,000,000) |
Issuance of convertible notes | 0 | 0 | 350,000,000 |
Payments of dividends to shareholders | (54,000,000) | (46,000,000) | (44,000,000) |
Net proceeds from issuance of common stock | 4,000,000 | 5,000,000 | 2,000,000 |
Payments to reacquire common stock | (51,000,000) | (4,000,000) | (3,000,000) |
Excess tax benefits from share-based compensation | 0 | 0 | 1,000,000 |
Acquisition of remaining ownership interest in joint ventures | 0 | 0 | (56,000,000) |
Investments from noncontrolling interests | 0 | 1,000,000 | 0 |
Distributions to noncontrolling interests | (4,000,000) | (14,000,000) | (3,000,000) |
Other | (3,000,000) | (5,000,000) | (1,000,000) |
Total cash flows provided by (used in) financing activities | 225,000,000 | (133,000,000) | 654,000,000 |
Effect of exchange rate changes on cash | 9,000,000 | 8,000,000 | (28,000,000) |
(Decrease) increase in cash and equivalents | (276,000,000) | (27,000,000) | 300,000,000 |
Cash and equivalents at beginning of period | 712,000,000 | 739,000,000 | 439,000,000 |
Cash and equivalents at end of period | 436,000,000 | 712,000,000 | 739,000,000 |
Supplemental disclosure of cash flows information: | |||
Cash paid for interest | 53,000,000 | 80,000,000 | 52,000,000 |
Cash paid for income taxes (net of refunds) | 49,000,000 | 54,000,000 | 21,000,000 |
Noncash investing activities | |||
Acquisition of technology licensing rights | 0 | 0 | 16,000,000 |
Noncash financing activities | |||
Dividends declared | $ 14,000,000 | $ 11,000,000 | $ 11,000,000 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 10 to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Business Reorganization and Restructuring Activities The impact of the decline in oil and gas prices, the COVID-19 pandemic and related economic and business and market disruptions over fiscal year 2020 continues to evolve and its future effects remain uncertain. The impact of these recent developments on our business will depend on many factors, many of which are beyond management's control and knowledge. During fiscal year 2020, our management initiated and approved restructuring plans in response to the dislocation of the global energy market resulting from the decline in oil prices and the COVID-19 pandemic. The restructuring plan included the reorganization of KBR's management structure primarily within our legacy Energy Solutions business segment during the first and second quarters of 2020 and entailed approving strategic business restructuring activities and deciding to discontinue pursuing certain projects, principally lump-sum EPC and commoditized construction services. The restructuring plan is designed to refine our market focus, optimize costs, and improve operational efficiencies. As a result of these restructuring activities and adverse market conditions, we have performed interim impairment tests of our goodwill, intangible assets, significant investments and various other assets. See Note 7 "Restructuring Charges and Asset Impairments" and Note 9 "Goodwill and Goodwill Impairment" for further discussion of restructuring and impairment charges recognized during the year ended December 31, 2020. These reorganization activities noted above did not have an impact on our identified reportable segments. See Note 2 to our consolidated financial statements for further discussion of our segments. 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 certain assets and liabilities; the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and 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 our contracts, including recognition of estimated losses on uncompleted contracts • 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 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 We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers on January, 1, 2018 for our consolidated entities and for each of the remaining unconsolidated Aspire Defence contracting entities effective January 1, 2018. Effective January 1, 2019, we adopted ASC Topic 606 for our remaining unconsolidated affiliates. Our financial results for reporting periods beginning January 1, 2018 for our consolidated entities and for each of the remaining unconsolidated Aspire Defence contracting entities and January 1, 2019 for our remaining unconsolidated affiliates 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 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 a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative 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. Contract Types The Company performs work under contracts that broadly consist of fixed-price, cost-reimbursable or a combination of the two. Fixed-price contracts include both lump-sum and unit-rate contracts. Cost-reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time and material contracts. Cost-reimbursable contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers is based on specific negotiations with each customer. For 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. 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. For contracts where performance obligations are satisfied due to the continuous transfer of control to the customer, revenue is recognized over time. Where 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, those contracts are accounted for as single performance obligations. We recognize revenue generally using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs at completion. This method is deemed appropriate in measuring performance towards completion because it directly measures the value of the goods and services transferred to the customer. Contract Costs Contract costs include all direct materials, labor and subcontractor costs and an allocation of 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, which revenue is recognized up to cost. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer, which revenue is recognized using the cost-to-cost method. 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. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties. 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 been material. Variable Consideration It is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, award fees, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which 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. 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 and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost 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 typically 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 prospectively 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. The payment terms of our 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 to contain 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. 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. Selling, General and Administrative Expenses Our selling, general and administrative expenses represent expenses that are not associated with the execution of the contracts. Selling, 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. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in “Cost of revenues”) or selling, general and administrative expenses in the same in the same manner as such costs are defined in the Company’s disclosure statements under CAS. 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 credit losses 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. See Note 22 to our consolidated financial statements for our discussion on sales of receivables. 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 8 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 engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. 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 2020 and determined that none of the goodwill was impaired. See Note 9 to our consolidated financial statements for reported goodwill in each of our segments and goodwill impairment recognized. We had intangible assets with net carrying values of $683 million and $495 million as of December 31, 2020 and 2019, 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. During the year ended December 31, 2020, certain of our trade name intangible assets with an indefinite life were impaired. Refer to Note 7 to our consolidated financial statements for further discussion. 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 9 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 7 to our consolidated financial statements for our discussion on impairment of our equity method investments and Note 10 to our consolidated financial statements for our discussion on equity method investments. In cases 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. In cases where we have a constructive or legal obligation to fund deficits of the joint venture, we record such deficits as "Other current liabilities" on our consolidated balance sheets. Joint Ventures and VIEs 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, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the 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. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 10 to our consolidated financial statements for our discussion on variable interest entities. Occasionally, we may determine that we are the primary beneficiary as a result of a reconsideration event associated with an existing unconsolidated VIE. We account for the change in control under the acquisition method of accounting for business combinations in accordance with ASC 805. See Note 4 to our consolidated financial statements. Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with ASC 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of fair value of any consideration received, the fair value of any retained noncontrolling investment and the carrying amount of any noncontrolling interest in the former subsidiary at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (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, which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unreco |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Effective January 1, 2021, we implemented a strategic change to the structure of our internal organization and transitioned from a three-core business segment model to a two-core business segment model comprised of Government Solutions and Sustainable Technology Solutions. The new Sustainable Technology Solutions segment is anchored by our innovative, proprietary process technologies. It also includes our highly synergistic advisory practice focused on energy transition and net-zero carbon emission consulting as well as the technology-led industrial solutions focused on innovative digital operations and maintenance ("O&M") solutions and advanced remote operations capabilities to improve throughput, reliability and environmental sustainability. Infusing high-end, sustainability expertise, client relationships and innovative, technology-led O&M solutions into Sustainable Technology Solutions is expected to increase resilience, generate new opportunities, simplify the business model and better position us to deliver its offerings across a broader industrial base. Effective January 1, 2021, we reorganized our reportable segments and businesses as follows: • Government Solutions includes the following four business units: Defense & Intel, formerly the Defense Systems Engineering and Centauri businesses; Science & Space, formerly called Space & Mission Solutions; Readiness & Sustainment, formerly called Logistics; and International. • Sustainable Technology Solutions includes Energy Solutions segment, Technology Solutions segment, and Non-strategic Business segment, with the exception of our Australian infrastructure business which moved to GS International in our Government Solutions segment. • Other Upon this segment change in 2021, all prior period information was recast to reflect this change in reportable segments. 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, 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 two core business segments, Government Solutions and Sustainable Technology Solutions, and one non-core business segment as described below: Government Solutions. Our Government Solutions business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies primarily in the U.S., U.K. and Australia. KBR services cover the full spectrum from research and development, through systems engineering, intel, cyber analytics, space domain awarenesses, test and evaluation, systems integration and program management, to operations support, readiness and logistics. With the acquisition of Centauri Holdings Platform, LLC ("Centauri") on October 1, 2020 (described in Note 4 to the consolidated financial statements), our GS business segment also provides software and engineering solutions to critical national security missions across space, cyber, intelligence, surveillance and reconnaissance, missile defense and intelligence domains to the U.S. government and related defense agencies. Sustainable Technology Solutions. Our Sustainable Technology Solutions business segment is anchored by our innovative, proprietary process technologies that span ammonia/syngas/fertilizers, chemical/petrochemicals, clean refining and circular process/circular economy solutions. STS also includes our highly synergistic advisory and consulting practice focused on energy transition and net-zero carbon emission consulting, our high-end engineering and professional services offerings, as well as our technology-led industrial solutions focused on innovative digital operations and maintenance solutions and advanced remote operations capabilities to improve throughput, reliability, environmental sustainability, and ultimately profitability. From early planning through scope definition, advanced technologies and project life-cycle support, our STS business segment works closely with customers to provide what we believe is the optimal approach to maximize their return on investment. Other. Our non-core Other segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above. Operations by Reportable Segment Years ended December 31, Dollars in millions 2020 2019 2018 Revenues: Government Solutions $ 4,055 $ 4,042 $ 3,582 Sustainable Technology Solutions 1,712 1,597 1,331 Total revenues $ 5,767 $ 5,639 $ 4,913 Gross profit: Government Solutions $ 493 $ 444 $ 363 Sustainable Technology Solutions 173 209 221 Total gross profit $ 666 $ 653 $ 584 Equity in earnings of unconsolidated affiliates: Government Solutions $ 28 $ 29 $ 35 Sustainable Technology Solutions 2 6 44 Total equity in earnings of unconsolidated affiliates $ 30 $ 35 $ 79 Selling, general and administrative expenses: Government Solutions $ (163) (135) (114) Sustainable Technology Solutions (83) (90) (86) Other (89) (116) (94) Total selling, general and administrative expenses $ (335) (341) (294) Acquisition and integration related costs (9) (2) (7) Goodwill impairment (99) — — Restructuring charges and asset impairments (214) — — Gain on disposition of assets 18 17 (2) Gain on consolidation of Aspire subcontracting entities — — 108 Operating income $ 57 $ 362 $ 468 Interest expense (83) (99) (66) Other non-operating income (loss) 1 5 (6) (Loss) income before income taxes and noncontrolling interests $ (25) $ 268 $ 396 Years ended December 31, Dollars in millions 2020 2019 2018 Capital expenditures: Government Solutions $ 13 $ 7 $ 11 Sustainable Technology Solutions 3 4 1 Other 4 9 5 Total $ 20 $ 20 $ 17 Depreciation and amortization: Government Solutions $ 60 $ 61 $ 42 Sustainable Technology Solutions 26 23 11 Other 29 20 10 Total $ 115 $ 104 $ 63 Balance Sheet Information by Reportable Segment Assets specific to business segments include receivables, contract assets, other current assets, claims and accounts receivable, 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 2020 2019 Total assets: Government Solutions $ 3,379 $ 2,711 Sustainable Technology Solutions 1,440 1,669 Other 886 980 Total $ 5,705 $ 5,360 Goodwill (Note 9): Government Solutions $ 1,589 $ 978 Sustainable Technology Solutions 172 287 Total $ 1,761 $ 1,265 Equity in and advances to related companies (Note 10): Government Solutions $ 145 $ 147 Sustainable Technology Solutions 736 699 Total $ 881 $ 846 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 2020 2019 2018 Revenues: United States $ 3,031 $ 2,705 $ 2,260 Middle East 857 1,027 884 Europe 961 1,058 989 Australia 324 288 329 Canada 46 39 21 Africa 152 197 133 Asia 203 214 190 Other countries 193 111 107 Total $ 5,767 $ 5,639 $ 4,913 December 31, Dollars in millions 2020 2019 Property, plant & equipment, net: United States $ 57 $ 50 United Kingdom 40 44 Other 33 36 Total $ 130 $ 130 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue We disaggregate our revenue from customers by business unit, 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 business unit and reportable segment was as follows: Year Ended December 31, Dollars in millions 2020 2019 2018 Government Solutions Science & Space $ 967 $ 863 $ 641 Defense & Intel 959 782 709 Readiness & Sustainment 1,153 1,400 1,256 International 976 997 976 Total Government Solutions 4,055 4,042 3,582 Sustainable Technology Solutions 1,712 1,597 1,331 Total revenue $ 5,767 $ 5,639 $ 4,913 Government Solutions revenue earned from key U.S. government customers includes U.S. DoD agencies and NASA, and is reported as Science & Space Solutions, Defense & Intel, Readiness & Sustainment and International. Government Solutions revenue earned from non-U.S. government customers primarily includes the U.K. MoD and the Australian Defence Force, and is reported as international. Revenue by geographic destination was as follows: Year Ended December 31, 2020 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 2,280 $ 751 $ 3,031 Middle East 622 235 857 Europe 743 218 961 Australia 272 52 324 Canada 1 45 46 Africa 81 71 152 Asia — 203 203 Other countries 56 137 193 Total revenue $ 4,055 $ 1,712 $ 5,767 Year Ended December 31, 2019 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 2,110 $ 595 $ 2,705 Middle East 795 232 1,027 Europe 796 262 1,058 Australia 209 79 288 Canada 1 38 39 Africa 76 121 197 Asia — 214 214 Other countries 55 56 111 Total revenue $ 4,042 $ 1,597 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,767 $ 493 $ 2,260 Middle East 735 149 884 Europe 766 223 989 Australia 185 144 329 Canada 1 20 21 Africa 77 56 133 Asia — 190 190 Other countries 51 56 107 Total revenue $ 3,582 $ 1,331 $ 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, 2020 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,038 $ 497 $ — $ 1,535 Cost Reimbursable 3,017 1,215 — $ 4,232 Total revenue $ 4,055 $ 1,712 $ — $ 5,767 Year Ended December 31, 2019 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,089 $ 520 $ — $ 1,609 Cost Reimbursable 2,953 1,077 — 4,030 Total revenue $ 4,042 $ 1,597 $ — $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,032 $ 412 $ — $ 1,444 Cost Reimbursable 2,550 919 — 3,469 Total revenue $ 3,582 $ 1,331 $ — $ 4,913 We have included $318 million, $241 million, and $173 million of revenue from U.S. government time-and-materials type contracts within the cost reimbursable contract type for the years ended December 31, 2020, 2019, and 2018, respectively. Performance Obligations We recognized revenue of $49 million, $15 million, and $69 million from performance obligations satisfied in previous periods for the years ended December 31, 2020, 2019, and 2018, respectively. On December 31, 2020, we had $12.0 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 32% of our remaining performance obligations as revenue within one year, 33% in years two through five, and 35% 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. Remaining performance obligations do not include variable consideration that was determined to be constrained as of December 31, 2020. Contract Assets and Contract Liabilities Contract assets were $178 million and $215 million and contract liabilities were $356 million and $484 million, at December 31, 2020 and 2019, respectively. The decrease in contract liabilities during the year ended December 31, 2020 was primarily related to progress against project advances on the Aspire Defence project and a project in the Middle East, and an unfavorable FKTC containers ruling that was upheld. See Note 15 “U.S. Government Matters” for additional information. We recognized revenue of $324 million for the year ended December 31, 2020, which was previously included in the contract liability balance at December 31, 2019. Accounts Receivable December 31, Dollars in millions 2020 2019 Unbilled $ 476 $ 308 Trade & other 423 630 Accounts receivable, net $ 899 $ 938 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Centauri Platform Holdings, LLC On October 1, 2020, we acquired Centauri in accordance with an agreement and plan of merger, pursuant to which a wholly owned subsidiary of KBR merged with and into Centauri, with Centauri continuing as the surviving company and a wholly owned subsidiary of KBR. Centauri provides high-end engineering and development solutions for critical, well-funded, national security missions associated with space, intelligence, cyber, and emerging technologies such as directed energy and missile defense and is reported under the GS business segment. The acquisition expands KBR's military space and intelligence business and builds upon the Company's existing cybersecurity and missile defense solutions. Furthermore, the addition of Centauri advances KBR's strategic transformation of becoming a leading provider of high-end, mission-critical technical services and solutions. The aggregate consideration paid was approximately $830 million in cash, subject to certain working capital, net debt and other post-closing adjustments, if applicable. The Company funded the acquisition through a combination of cash on-hand, borrowings under our Senior Credit Facility, net proceeds from the private offering of $250 million aggregate principal amount of our 4.750% Senior Notes due 2028 (the "Senior Notes"), and proceeds from the sale of receivables. See Note 12 "Debt and Other Credit Facilities" for further discussion of our Senior Credit Facility and Senior Notes, and Note 22 "Fair Value of Financial Instruments and Risk Management" for further discussion of our sale of receivables. During the year ended December 31, 2020, the Company incurred $9 million in acquisition-related costs with the acquisition of Centauri, which are included in “Acquisition and integration related costs” on the consolidated statements of operations. As of December 31, 2020, the estimated fair values of net assets acquired were preliminary, with possible updates primarily in our finalization of tax returns and settlement of net working capital adjustments with the seller. The following table summarizes the consideration paid for this acquisition and the fair value of assets and liabilities assumed as of the acquisition date as follows: Dollars in millions Centauri Fair value of total consideration paid $ 830 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 7 Accounts receivable 78 Contract assets 19 Other current assets 1 Total current assets 105 Property, plant, and equipment, net 18 Operating lease right-of-use assets 36 Intangible assets, net 226 Other assets 1 Total assets 386 Accounts payable 29 Contract liabilities 2 Accrued salaries, wages and benefits 39 Operating lease liabilities 6 Total current liabilities 76 Deferred income taxes 19 Operating lease liabilities 30 Other liabilities 7 Total liabilities 132 Net assets acquired 254 Goodwill $ 576 The goodwill recognized of $576 million arising from this acquisition primarily relates to future growth opportunities based on an expanded service offering from intellectual capital and a highly skilled assembled workforce and other expected synergies from the combined operations. For U.S. tax purposes, the transaction is treated as a stock deal. As a result, there is no step-up in tax basis and the goodwill recognized is not deductible for tax purposes. The following table summarizes the fair value of intangible assets and the related weighted-average useful lives: Dollars in millions Fair Value Weighted Average Amortization Period (in years) Funded backlog $ 28 1 Customer relationships 198 15 Total intangible assets $ 226 13 The backlog intangible asset is comprised solely of funded backlog that represents revenue that is already fully awarded and funded as of the acquisition date. The customer relationships intangible assets consists of unfunded backlog as of the acquisition date and revenue arising from existing, recompete, and follow-on programs. The funded backlog and customer relationships intangible assets were valued using the income approach, specifically the multi-period excess earnings method in which the value is derived from an estimation of the after-tax cash flows specifically attributable to funded backlog and customer relationships. The analysis included assumptions for forecasted revenues and EBITDA margins, contributory asset charge rates, weighted average cost of capital, and a tax amortization benefit. The following supplemental pro forma, combined financial information has been prepared from historical financial statements that have been adjusted to give effect to the acquisition of Centauri as though it had been acquired on January 1, 2019. Pro forma adjustments were primarily related to the amortization of intangibles, interest on borrowings related to the acquisition, significant nonrecurring transactions and acquisition related transaction costs. 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, 2019, nor is it indicative of future results of operations. Year ended December 31, Dollars in millions 2020 2019 (Unaudited) Revenue $ 6,194 $ 6,137 Net income attributable to KBR $ (53) $ 172 Diluted earnings per share $ (0.37) $ 1.20 The acquired Centauri business contributed $125 million of revenues and $19 million of gross profit within our GS business segment during the year ended December 31, 2020 . Scientific Management Associates (Operations) Pty Ltd On March 6, 2020, we acquired certain assets and assumed certain liabilities related to the government defense business of Scientific Management Associates (Operations) Pty Ltd ("SMA"). The acquired business of SMA provides technical training services to the Royal Australian Navy and is reported within our GS business segment. We accounted for this transaction using the acquisition method under ASC 805, Business Combinations. The agreed-upon purchase price for the acquisition was $13 million, less purchase price adjustments totaling $4 million resulting in net cash consideration paid of $9 million. We recognized goodwill of $12 million arising from the acquisition, which relates primarily to future growth opportunities to expand services provided to the Royal Australian Navy. Stinger Ghaffarian Technologie s On April 25, 2018, we acquired 100% of the outstanding stock of 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. |
Cash and Equivalents
Cash and Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
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 and the Aspire project cash balances are limited to specific project 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 entities. We expect to use this cash for project costs and distributions of earnings. The components of our cash and equivalents balance are as follows: December 31, 2020 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 228 $ 54 $ 282 Short-term investments (c) 3 — 3 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 151 — 151 Total $ 382 $ 54 $ 436 December 31, 2019 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 187 $ 114 $ 301 Short-term investments (c) 58 93 151 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 259 1 260 Total $ 504 $ 208 $ 712 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds, and other highly liquid short-term investments. |
Unapproved Change Orders and Cl
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Amounts included in project estimates-at-completion at January 1, $ 978 $ 973 (Decrease) increase in project estimates (1) 21 Approved change orders (6) (7) Foreign currency effect 77 (9) Amounts included in project estimates-at-completion at December 31, $ 1,048 $ 978 Amounts recognized over time based on progress at December 31, $ 1,048 $ 974 As of December 31, 2020 and 2019, the predominant component of change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors above relates to our 30% 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 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 any material change 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, 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. We, along with our joint venture partners, are jointly and severally liable to the client. The construction and commissioning of the Ichthys LNG Project is complete and all performance tests have been successfully performed. The entire facility, including two LNG liquefaction trains, cryogenic tanks and the combined cycle power generation facility, has been handed over to the client and is producing LNG. JKC is in the process of completing administrative close-out activities and continues to progress the various legal and commercial disputes with the client, suppliers and other third parties as further described below. Unapproved Change Orders and Claims Against Client Under the cost-reimbursable scope of the contract, 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 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 JKC 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 (representing the 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. In October 2018, JKC received a favorable ruling in a separate arbitration related to the Funding Deed. 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. However, the client did not agree with the impact of the arbitration award and, accordingly, we initiated the Funding Deed proceeding referenced below to obtain further determination from the arbitration tribunal. In September 2020, JKC sought a Summary Determination from the arbitration tribunal seeking (1) a stay of the repayment date of December 31, 2020 (“Sunset Date”); and (2) presented specific legal arguments to ultimately resolve the Funding Deed without the need for a full factual enquiry. In a partial award in December 2020, the arbitration tribunal held that it could not decide the merits of the Funding Deed issue without hearing further evidence on factual issues. No determination was reached as to the actual position on entitlement and no decision has been rendered on reimbursable subcontractor settlement costs covered by the Funding Deed. In reaching this decision the arbitration tribunal also decided in its partial award that it did not have authority to stay JKC’s repayment of the funds under the Funding Deed following the passage of the Sunset Date. As the issues raised in the Funding Deed arbitration remained unresolved as of December 31, 2020, JKC could be required to refund sums funded by the client under the terms of the Funding Deed. JKC continues to assert that the subcontractor settlement sums were properly incurred and represent reimbursable costs. In January 2021, the client demanded that JKC repay the Funding Deed amount and notified its intention to commence legal actions against JKC including claims on the parent company guarantees. The client also submitted an application to the arbitration tribunal asserting various legal theories and requesting immediate repayment of the Funding Deed. JKC opposed the application on the grounds that in seeking such relief, the client was asserting new claims that are not part of the current arbitration. The arbitration tribunal agreed with JKC that these were new claims and declined to order immediate repayment. However, the arbitration tribunal directed the parties to incorporate the new claims into the existing consolidated arbitration process. There are no hearing dates set for these matters. 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 JKC discussed above is $157 million and $158 million as of December 31, 2020 and 2019, respectively. These amounts are subject to currency fluctuation risk and possible applicable taxes. 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, 2020. However, unlike amounts funded under the Funding Deed, there is no requirement to refund these amounts to the client by a certain date. There has been deterioration of paint and insulation on certain exterior areas of the plant. The client previously requested and funded paint remediation for a portion of the facilities. JKC’s profit estimate at completion includes a portion of revenues and costs for these remediation activities. Revenue for the client-funded amounts are included in the table above. In the first quarter of 2019, the client demanded repayment of the amounts previously funded to JKC. JKC is disputing the client's demand. The client has also 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 remaining remediation costs will be material given the plant is now operating and there will be several operating constraints on any such works. In addition, JKC has started proceedings against the paint manufacturer and initiated claims against the subcontractors. JKC has also made demands on insurance policies in respect of these matters. JKC believes that project insurance should significantly limit any exposure it has on painting and insulation damages. Proceedings and claims against the paint manufacturer, certain subcontractors and insurance policies are ongoing. As the principal insured, it is incumbent upon the client to pursue the insurance claims with diligence. JKC is urging the client to meet its contractual obligations. 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 the Combined Cycle Power Plant (the "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 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. Costs incurred 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. Amounts expected to be recovered from the Consortium are included in the table above at the beginning of this Note 6. As of December 31, 2020, JKC's claims against the Consortium were approximately $1.8 billion (net of bonds and remaining lump sum contract value) for recovery of JKC's costs. Hearings on the power plant arbitration are scheduled for April 2021 and August 2021 (the "Arbitration"). The previous hearing dates were vacated due to the COVID-19 outbreak. The current dates may continue to be impacted by the COVID-19 pandemic. JKC asked the Australian courts to require the parent company guarantors of the Consortium to issue payment to JKC in advance of the completion of the arbitration proceedings. The court concluded that the parent companies are responsible for Consortium’s liability resulting from the arbitration outcome, but they are not required to pay in advance of the arbitration. JKC continues to pursue the resolution of this matter and will seek collection from the Consortium and their parent guarantors who are all jointly and severally liable for any damages owed to JKC. 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 and financial position. 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 based on project estimate information available at April 2014. JKC has included an estimate for the TRC Fee in its determination of profit at completion at December 31, 2020, 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 to the revised estimate, and JKC has started an additional arbitration on this dispute. In late 2019, the International Chamber of Commerce consolidated the Funding Deed arbitration, TRC arbitration and certain other claims asserted by JKC along with claims asserted by its client. Pursuant to a recent procedural order, the client is expected to file a detailed statement of its claim in May 2021. The arbitration panel has been constituted but a hearing date has not been scheduled. Ichthys Project Funding As a result of the ongoing disputes with the client and pursuit of recoveries against the Consortium through the Arbitration, we have funded our proportionate share of the working capital requirements of JKC to complete the project. We made investment contributions to JKC of approximately $484 million on an inception-to-date basis to fund project execution activities. If we experience unfavorable outcomes associated with the various legal and commercial disputes, our total investment contributions could increase which could have a material adverse effect on our financial position and cash flows. Further, if either of our joint venture partners in JKC do not fulfill their responsibilities under the JKC joint venture agreement or subcontract, we could be exposed to additional funding requirements as a result of the nature of the JKC joint venture agreement. As of December 31, 2020, we had $164 million in letters of credit outstanding in support of performance and warranty guarantees provided to the client. All of the Ichthys LNG project commercial matters are complex and involve multiple interests, including the client, joint venture partners, suppliers and other third parties. Ultimate resolution may not occur in the near term and could be impacted by the COVID-19 pandemic. Our current estimates for resolving these matters may prove inaccurate and, if so, any material change could have a material adverse effect on our results of operations, financial position and cash flows. See Note 10 "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for further discussion regarding our equity method investment in JKC. |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairments | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Asset Impairments | Restructuring Charges and Asset Impairments During 2020, our management initiated and approved a broad restructuring plan in response to the dislocation of the global energy market resulting from the decline in oil prices and the COVID-19 pandemic. As part of the plan, management approved strategic business restructuring activities and decided to discontinue pursuing certain projects, principally lump-sum EPC and commoditized construction services. The restructuring plan is designed to refine our market focus, optimize costs, and improve operational efficiencies. Total restructuring charges and asset impairments of approximately $214 million were recognized in “Restructuring charges and asset impairments” in our consolidated statements of operations, with restructuring charges comprised in part of severance and lease abandonment costs. Provided in the table below are the details of the restructuring charges and asset impairments as of December 31, 2020. Dollars in millions Severance Lease Abandonment Other Total Restructuring Charges Asset Impairments Total Restructuring Charges & Asset Impairments Government Solutions $ 2 $ — $ — $ 2 $ 2 $ 4 Sustainable Technology Solutions 29 4 6 39 47 86 Other 1 54 20 75 49 124 Total $ 32 $ 58 $ 26 $ 116 $ 98 $ 214 Restructuring Charges The restructuring activities relate to rationalization of real estate and overhead primarily in our STS and Other segments. Other segments are mainly attributable to corporate and other overhead expenses. Severance charges represent paid benefits that are owed in accordance with Company policy. Real estate lease abandonments were primarily associated with office facilities located in the U.S. and U.K and represent accrued estimated non-lease components and other operating expense associated with the fully abandoned office space. In estimating the fair value of the lease-related restructuring charges, we utilized a discounted cash flow model with Level 3 inputs, in which past history was used to estimate future operating costs, office space utilization, and inflation over the remaining non-cancellable term of the agreement. Other charges were primarily associated with certain long-term engineering software agreements of approximately $19 million. The software-related restructuring charge represents the fair value of the future costs to be incurred under these agreements without economic benefit to our operations. Our estimate of the fair value of the software restructuring charge was based on a discounted cash flow model with Level 3 inputs including discount rates based on our incremental borrowing rate, management assumptions regarding the committed costs for the excess software capacity and the remaining non-cancellable term of the agreements. The remaining other restructuring charges were primarily associated with future losses expected to be incurred on a joint venture project in Latin America in our STS business segment. The restructuring liability at December 31, 2020 was $91 million, of which $32 million is included in "Other current liabilities" and $59 million is included in "Other liabilities." A reconciliation of the beginning and ending restructuring liability balances is provided in the following table. Dollars in millions Severance Lease Abandonment Other Total Balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges accrued during the period 32 58 26 116 Lease restructuring charges related to operating lease liabilities — (4) — (4) Cash payments / settlements during the period (16) (2) (3) (21) Currency translation and other adjustments (1) — 1 — Balance at December 31, 2020 $ 15 $ 52 $ 24 $ 91 Certain judgments and estimates are made regarding the amount and timing of restructuring charges. The estimated liability could change subsequent to its recognition, requiring adjustments to the expense and liability recorded. On a quarterly basis, the Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available. Additional restructuring activities could be identified and approved as part of the plan. We expect the restructuring activities will be substantially completed in 2021. Software and lease related restructuring obligations will extinguish in 2023 and 2030, respectively. Asset Impairments As a result of the significant adverse economic and market conditions associated with the dislocation of the global energy market and COVID-19 pandemic and the resulting restructuring plans initiated, we performed interim impairment tests of our long-lived assets including goodwill, intangible assets and equity investments as well as leased right-of-use and related assets. See Note 9 "Goodwill, Goodwill Impairment, and Intangible Assets" for further discussion of goodwill impairment recognized in the first and second quarters of 2020. Leased office facilities and related asset s. Management's restructuring plan included the rationalization of certain leased real estate primarily in the U.S. and U.K. As a result, we began evaluating excess office space apart from office space we will continue to utilize. We made decisions to market certain excess office space for sublease and the remaining excess office space was abandoned along with any related leasehold improvements, furniture and fixtures. The abandoned leased facilities and related assets will not provide any substantial future economic benefit and were impaired accordingly. We recognized lease right-of-use asset impairments of approximately $47 million and impairments of leasehold improvements, furniture and fixtures of approximately $14 million as a result of decisions to abandon excess office space. In determining these impairments, we utilized a discounted cash flow model with Level 3 inputs including discount rates based on our incremental borrowing rate, management assumptions based on sublease recoveries that were significantly below our cash outflows due to the prevailing sublease market rates, long lease-up periods due to the abundance of available office space due to work from home trends, and operating costs that consisted of utilities, maintenance and pass through property taxes. Trade name intangibles. We recognized an impairment loss on indefinite-lived intangible assets of approximately $11 million associated with certain trade names acquired through previous business combinations. In connection with the energy market decline, management assessed the fair value of trade names utilized by certain operations within the STS business segment, concluded that they were substantially impaired and decided to cease use of those trade names. The trade names will provide no benefit to future periods and the carrying values of these intangibles were impaired and written off accordingly. Equity method investments. We evaluated significant investments and recognized total impairment charges of approximately $24 million for the year ended December 31, 2020, of which $13 million related to equity method investment comprised of 15% interest in a Middle East joined venture project in our STS business segment that was impaired and that impairment was other than temporary. The fair value of this investment was determined using a blended income-based and market-based approach utilizing Level 2 fair value inputs including significant management assumptions such as projected commodity prices, operating margins, cash flows and weighted average cost of capital. See Note 22 “Fair Value of Financial Instruments and Risk Management” for definition of three levels of inputs used in measuring fair value. We recognized additional impairments totaling approximately $6 million related to several equity method investments associated with management's decision to discontinue pursuing certain projects and we recognized an impairment of $2 million on the joint venture in Latin America related to the write-off of a shareholder loan to the joint venture in our STS business segment. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, Dollars in millions 2020 2019 Land N/A $ 5 $ 5 Buildings and property improvements 1-35 129 124 Equipment and other 1-25 415 387 Total 549 516 Less accumulated depreciation (419) (386) Net property, plant and equipment $ 130 $ 130 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
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 Solutions Sustainable Technology Solutions Total Balance as of January 1, 2019 $ 977 $ 288 $ 1,265 Foreign currency translation 1 (1) — Balance as of December 31, 2019 $ 978 $ 287 $ 1,265 Goodwill acquired during the period (Note 4) 589 — 589 Goodwill reallocation 19 (19) — Impairment loss — (99) (99) Foreign currency translation 3 3 6 Balance as of December 31, 2020 $ 1,589 $ 172 $ 1,761 Goodwill Impairment In connection with our business reorganization and restructuring activities during the first quarter of 2020, we changed our internal management reporting structure, which resulted in changes to the underlying reporting units within our legacy Energy Solutions business segment. Additionally, given the significant adverse economic and market conditions associated with the dislocation of the global energy market and COVID-19 pandemic as well as the significant decline in the price of our common shares during the first quarter of 2020, we performed an interim impairment test of goodwill resulting in goodwill impairment of $62 million for the three months ended March 31, 2020. The goodwill impairment was associated with a reporting unit in our legacy Energy Solutions business segment. As a result of the ongoing economic and market volatility as well as management's decision to discontinue pursuing certain projects within our legacy Energy Solutions business segment during the second quarter of 2020, we performed an interim impairment test of goodwill resulting in goodwill impairment of $37 million for the three months ended June 30, 2020. The goodwill impairment was associated with a reporting unit within our STS business segment. One reporting unit within our GS business segment had a negative carrying amount of net assets as of June 30, 2020 and goodwill of approximately $19 million. No change in the composition of our reporting units resulted from our segment reorganization, effective January 1, 2021. For reporting units in our STS business segment, fair value was determined using a blended approach utilizing discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value. For all other reporting units, fair values were determined using a blended approach including market earnings multiples and discounted cash flow models. Under the market approach, we estimated fair value by applying earnings and revenue market multiples to a reporting unit’s operating performance for the trailing twelve-month period. The income approach estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we 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. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. 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, 2020 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 15 470 (100) 370 Developed technologies 19 75 (37) 38 Contract backlog 18 291 (76) 215 Other 13 25 (15) 10 Total intangible assets $ 911 $ (228) $ 683 December 31, 2019 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 16 271 (83) 188 Developed technologies 22 68 (36) 32 Contract backlog 19 255 (52) 203 Other 14 24 (13) 11 Total intangible assets $ 679 $ (184) $ 495 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. In connection with the energy market decline, we impaired certain of our trade name indefinite-lived intangibles acquired through previous business combinations. See Note 7 "Restructuring Charges and Asset Impairments" for further discussion. Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2020 2019 2018 Intangibles amortization expense $ 42 $ 33 $ 32 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future 2021 $ 63 2022 $ 37 2023 $ 37 2024 $ 37 2025 $ 37 Beyond 2025 $ 422 |
Equity Method Investments and V
Equity Method Investments and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Beginning balance at January 1, $ 846 $ 724 Cumulative effect of change in accounting policy (a) — 25 Adjusted balance at January 1, 846 749 Equity in earnings of unconsolidated affiliates 30 35 Distributions of earnings of unconsolidated affiliates (38) (69) Advances to (payments from) unconsolidated affiliates, net (15) (10) Investments (b) 26 146 Impairment of equity method investments (c) (19) — Foreign currency translation adjustments 50 (7) Other 1 2 Balance at December 31, $ 881 $ 846 (a) At January 1, 2019, we recognized a cumulative effect adjustment of $25 million as a result of the adoption of ASC 606 by our unconsolidated project joint ventures. See Note 1 "Significant Accounting Policies" for further discussion. (b) Investments include $24 million and $141 million in funding contributions to JKC for the years ended December 31, 2020 and 2019, respectively. (c) During the year ended December 31, 2020, we recognized an impairment of $13 million associated with our investment in a joint venture project located in the Middle East and a $6 million impairment related to other equity method investments. See Note 7 "Restructuring Charges and Asset Impairments" for further discussion. 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 STS 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 Sheet December 31, Dollars in millions 2020 2019 Current assets $ 3,216 $ 3,072 Noncurrent assets 3,227 3,219 Total assets $ 6,443 $ 6,291 Current liabilities $ 1,018 $ 949 Noncurrent liabilities 2,831 2,922 Total liabilities $ 3,849 $ 3,871 Statements of Operations Years ended December 31, Dollars in millions 2020 2019 2018 Revenues $ 2,032 $ 2,592 $ 3,190 Operating income $ 54 $ 92 $ 197 Net income $ 28 $ 48 $ 173 Unconsolidated Variable Interest Entities For the VIEs in which we participate, our maximum exposure to loss consists of 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 our obligation to fund our proportionate share of any future losses incurred. 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 consolidated balance sheets related to our significant unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 31, 2020 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 11 $ 9 Aspire Defence Limited $ 68 $ 5 JKC joint venture (Ichthys LNG project) $ 606 $ 44 U.K. Road project joint ventures $ 59 $ — Middle East Petroleum Corporation (EBIC Ammonia project) $ 31 $ 1 Dollars in millions December 31, 2019 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 14 $ 10 Aspire Defence Limited $ 67 $ 5 JKC joint venture (Ichthys LNG project) $ 546 $ 29 U.K. Road project joint ventures $ 40 $ 21 Middle East Petroleum Corporation (EBIC Ammonia project) $ 47 $ 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, 2020. 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, 2020, included in our GS segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $68 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, 2020. 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 the subcontracting 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, 2020, our assets and liabilities associated with our investment in JKC recorded in our consolidated balance sheets under our STS business segment were $606 million and $44 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. See Note 6 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, 2020, included in our GS business segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $59 million and none, 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, 2020, included in our STS business segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $31 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, 2020. See Note 7 "Restructuring Charges and Asset Impairments" for further discussion on impairment charge recognized during the year ended December 31, 2020. Related Party Transactions We often provide engineering, construction management and other subcontractor services to our joint ventures and our revenues include amounts related to these services. For the years ended December 31, 2020, 2019 and 2018, our revenues included $511 million, $684 million and $721 million, respectively, related to services we provided to our joint ventures, primarily the Aspire Defence Limited joint venture within our GS business segment. Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2020 and 2019 are as follows: December 31, Dollars in millions 2020 2019 Accounts receivable, net of allowance for doubtful accounts $ 83 $ 74 Contract assets (a) $ 2 $ 2 Contract liabilities (a) $ 53 $ 33 (a) Reflects contract assets and contract liabilities primarily related to joint ventures within our STS business segment. 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, 2020 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ — Fasttrax Limited (Fasttrax project) $ 45 $ 18 Aspire Defence subcontracting entities (Aspire Defence project) $ 448 $ 205 Dollars in millions December 31, 2019 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ 17 Fasttrax Limited (Fasttrax project) $ 45 $ 24 Aspire Defence subcontracting entities (Aspire Defence project) $ 530 $ 283 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. The Gorgon LNG project execution activities were completed and only commercial closeout activities remained as of December 31, 2019. 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 $23 million and net property, plant and equipment of approximately $18 million as of December 31, 2020. See Note 12 to our consolidated financial statements for further details regarding our nonrecourse project-finance debt of this VIE consolidated by KBR, including the total amount of debt outstanding at December 31, 2020. Aspire Defence project (subcontracting entities). As discussed above, we assumed operational management of the Aspire Defence subcontracting entities in January 2018. These subcontracting entities exclusively 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 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Contribution Retirement 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 $83 million in 2020, $63 million in 2019 and $56 million in 2018. Defined Benefit Pension Plans We have two frozen defined benefit pension plans in the U.S., one frozen plan in the U.K., and one frozen plan in Germany. 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. We used a December 31 measurement date for all plans in 2020 and 2019. Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2020 2019 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 76 $ 1,988 $ 71 $ 1,751 Service cost — 2 — 2 Interest cost 2 39 3 50 Foreign currency exchange rate changes — 75 — 46 Actuarial (gain) loss 6 287 7 214 Other — (1) — (1) Benefits paid (4) (64) (5) (74) Projected benefit obligations at end of period $ 80 $ 2,326 $ 76 $ 1,988 Change in plan assets: Fair value of plan assets at beginning of period $ 60 $ 1,727 $ 54 $ 1,518 Actual return on plan assets 7 189 10 200 Employer contributions 2 44 2 43 Foreign currency exchange rate changes — 66 — 41 Benefits paid (4) (64) (5) (74) Other (1) (1) (1) (1) Fair value of plan assets at end of period $ 64 $ 1,961 $ 60 $ 1,727 Funded status $ (16) $ (365) $ (16) $ (261) The Accumulated Benefit Obligation ("ABO") is the present value of benefits earned to date. The ABO for our United States pension plans was $80 million and $76 million as of December 31, 2020 and 2019, respectively. The ABO for our international pension plans was $2.3 billion and $2.0 billion as of December 31, 2020 and 2019, respectively. United States Int’l United States Int’l Dollars in millions 2020 2019 Amounts recognized on the consolidated balance sheets Pension obligations $ (16) $ (365) $ (16) $ (261) Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2020 2019 2018 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 2 39 3 50 2 50 Expected return on plan assets (3) (59) (3) (77) (3) (80) Prior service cost amortization — 1 — 1 — — Recognized actuarial loss 2 22 2 16 2 26 Net periodic benefit cost $ 1 $ 5 $ 2 $ (8) $ 1 $ (2) The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2020 and 2019, net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2020 2019 Unrecognized actuarial loss, net of tax of $10 and $240, $9 and $215, respectively $ 24 $ 740 $ 22 $ 632 Total in accumulated other comprehensive loss $ 24 $ 740 $ 22 $ 632 Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2021 are as follows: Dollars in millions United States Int’l Actuarial loss $ 2 $ 25 Total $ 2 $ 25 Weighted-average assumptions used to determine United States Int'l United States Int'l United States Int'l 2020 2019 2018 Discount rate 2.89 % 2.05 % 3.98 % 2.90 % 3.33 % 2.50 % Expected return on plan assets 5.72 % 3.70 % 6.09 % 5.09 % 6.01 % 5.20 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2020 2019 Discount rate 2.00 % 1.40 % 2.89 % 2.05 % 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 2021 is as follows: Asset Allocation 2021 Targeted United States Int'l Equity funds and securities 51 % 23 % Fixed income funds and securities 39 % 55 % Hedge funds — % 5 % Real estate funds 1 % 4 % Other 9 % 13 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2021 and 2020, by asset class, are as follows: International Plans 2021 Targeted 2020 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 50 % 1 % 50 % Fixed income funds and securities 35 % 100 % 35 % 100 % Hedge funds — % 7 % — % 22 % Real estate funds — % 10 % — % 20 % Other — % 34 % — % 42 % The range of targeted asset allocations for our U.S. plans for 2021 and 2020, by asset class, are as follows: Domestic Plans 2021 Targeted 2020 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 62 % 41 % 68 % Fixed income funds and securities 31 % 47 % 31 % 47 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 7 % 10 % 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 defined benefit 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, 2020 United States plan assets Investments measured at net asset value (a) $ 62 $ — $ — $ — Cash and equivalents 2 2 — — Total United States plan assets $ 64 $ 2 $ — $ — International plan assets Equities $ 108 $ — $ — $ 108 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 4 4 — — Other 40 — — 40 Investments measured at net asset value (a) 1,806 — — — Total international plan assets $ 1,961 $ 4 $ — $ 151 Total plan assets at December 31, 2020 $ 2,025 $ 6 $ — $ 151 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2019 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Cash and equivalents $ 1 $ 1 $ — $ — Total United States plan assets $ 60 $ 1 $ — $ — International plan assets Equities $ 103 $ — $ — $ 103 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 2 2 — — Other 87 44 — 43 Investments measured at net asset value (a) 1,532 — — — Total international plan assets $ 1,727 $ 46 $ — $ 149 Total plan assets at December 31, 2019 $ 1,787 $ 47 $ — $ 149 (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, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 Return on assets held at end of year 8 10 — — (2) Return on assets sold during the year 1 — — 1 — Purchases, sales and settlements 11 7 (1) — 5 Foreign exchange impact 3 2 — — 1 Balance as of December 31, 2019 $ 149 $ 103 $ 1 $ 2 $ 43 Return on assets held at end of year 2 1 — — 1 Return on assets sold during the year 2 — — — 2 Purchases, sales and settlements, net (6) — — — (6) Foreign exchange impact 4 4 — — — Balance as of December 31, 2020 $ 151 $ 108 $ 1 $ 2 $ 40 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 $48 million to our pension plans in 2021. Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2021 $ 5 $ 60 2022 $ 5 $ 61 2023 $ 5 $ 62 2024 $ 5 $ 64 2025 $ 5 $ 65 Years 2026 - 2030 $ 24 $ 348 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 2020 and 2019, and 2018. At December 31, 2020, 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. The elective deferral plan is unfunded except for $11 million and $10 million of mutual funds designated for a portion of our employee deferral plan included in "Other assets" on our consolidated balance sheets at December 31, 2020 and 2019, respectively. The mutual funds are measured at fair value using Level 1 inputs under ASC 820 and may be liquidated in the near term without restrictions. Our obligations under our employee deferred compensation plan were $64 million and $65 million as of December 31, 2020 and 2019, respectively, and are included in "Employee compensation and benefits" in our consolidated balance sheets. |
Debt and Other Credit Facilitie
Debt and Other Credit Facilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Term Loan A 285 176 Term Loan B 516 756 Convertible Senior Notes 350 350 Senior Notes 250 — Senior Credit Facility 260 — Unamortized debt issuance costs - Term Loan A (4) (4) Unamortized debt issuance costs and discount - Term Loan B (16) (15) Unamortized debt issuance costs and discount - Convertible Notes (40) (53) Unamortized debt issuance costs and discount - Senior Notes (5) — Total long-term debt 1,596 1,210 Less: current portion 12 27 Total long-term debt, net of current portion $ 1,584 $ 1,183 Senior Credit Facility On February 7, 2020, we amended our Senior Credit Facility to, among other things, reduce the applicable margins and commitment fees associated with the various borrowings under the facility. Simultaneous with the amendment, we used proceeds from the new facility and cash on hand to refinance our outstanding borrowings resulting in an amended senior secured credit facility ("Senior Credit Facility") that consisted of a $500 million revolving credit facility ("Revolver"), a $500 million PLOC, a $275 million Loan A, ("Term Loan A") of which a portion is denominated in Australian dollars, and a $520 million Term Loan B ("Term Loan B"). In addition, the amendment extended the maturity dates with respect to the Revolver, PLOC and the Term Loan A to February 2025 and Term Loan B to February 2027, and amended certain other provisions including the financial covenants. On July 2, 2020, we amended our Senior Credit Facility to convert the $500 million capacity formerly available under our PLOC to our Revolver, increasing our Revolver capacity from $500 million to $1 billion. On September 14, 2020, we further amended our Senior Credit Facility to modify the definition and calculation of Consolidated EBITDA (as defined therein) to permit pro forma cost reductions resulting from certain corporate transactions. The aggregate capacity under our Senior Credit Facility remained $1.795 billion and all other terms and conditions remain unchanged. 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 2.75%. Additionally, there is a commitment fee with respect to the Revolver. The details of the applicable margins and commitment fees under the amended Senior Credit Facility are based on the Company's consolidated leverage ratio as follows: Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee Greater than or equal to 3.25 to 1.00 2.25 % 1.25 % 0.35 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.75 % 0.75 % 0.25 % Less than 1.25 to 1.00 1.50 % 0.50 % 0.20 % The Term Loan A provides for quarterly principal payments of 0.625% of the aggregate principal amount commencing with the fiscal quarter ending June 30, 2020, increasing to 1.25% starting with the quarter ending June 30, 2022. The Term Loan B provides for quarterly principal payments of 0.25% of the initial aggregate principal amounts commencing with the fiscal quarter ending June 30, 2020. The Senior Credit Facility contains financial 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 may not exceed 4.25 to 1 through 2021, reducing to 4.00 to 1 in 2022 and 3.75 to 1 in 2023. Our consolidated interest coverage ratio as of the last day of any fiscal quarter, which covenant commenced with the fiscal quarter ending June 30, 2020 and thereafter, may not be less than 3.00 to 1. As of December 31, 2020, we were in compliance with our financial covenants related to our debt agreements. 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") pursuant to an indenture between us and Citibank, N.A., as trustee. The Convertible Notes are senior unsecured obligations and bear interest at 2.50% per year, and interest is payable on May 1 and November 1 of each year. The Convertible Notes mature on November 1, 2023 and may not be redeemed by us prior to maturity. 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. During 2020, we declared a quarterly cash dividend of $0.10 per Common Share, which exceeded our per share dividend threshold and adjusted the conversion rate to 39.3360 at a strike price of $25.42 as of December 31, 2020. The impact of dilution on our earnings per share from Convertible Notes is measured using the “treasury stock method”. As of December 31, 2020, the "if-converted" value of the Convertible Notes exceeded the $350 million principal amount by approximately $76 million. 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 net carrying value of the equity component related to the Convertible Notes was $57 million as of December 31, 2020 and 2019. The amount of interest cost recognized relating to the contractual interest coupon was $9 million for the years ended December 31, 2020 and 2019, and $1 million for the year ended December 31, 2018. The amortization of the discount and debt issuance costs was $13 million, $12 million, and $1 million for the years ended December 31, 2020, 2019 and 2018, respectively. The effective interest rate on the liability component was 6.50% for the years ended December 31, 2020 and 2019. 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 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 was initially $25.51 (subject to adjustment), corresponding approximately to the initial conversion price of the Convertible Notes. The Note Hedge Transactions were 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 original strike price of the warrants is $40.02 per share (subject to adjustment), which is 29% above the last reported sale price of our common stock on the New York Stock Exchange on December 31, 2020. 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. Senior Notes On September 30, 2020, we issued and sold $250 million aggregate principal amount of 4.750% Senior Notes due 2028 pursuant to an indenture among us, the guarantors party thereto and Citibank, N.A., as trustee. The Senior Notes are senior unsecured obligations and are fully and unconditionally guaranteed by each of our existing and future domestic subsidiaries that guarantee our obligations under the Senior Credit Facility and certain other indebtedness. The net proceeds from the offering was approximately $245 million, after deducting fees and offering expenses and were used to finance a portion of the purchase price for the acquisition of Centauri and pay related fees and expenses. Interest is payable semi-annually in arrears on March 30 and September 30 of each year, beginning on March 30, 2021, and the principal is due on September 30, 2028. At any time prior to September 30, 2023, we may redeem all or part of the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date, plus a specified “make-whole premium.” On or after September 30, 2023 we may redeem all or part of the Senior Notes at our option, at the redemption prices set forth in the Senior Notes, plus accrued and unpaid interest, if any, to (but not including) the redemption date. At any time prior to September 30, 2023, we may redeem up to 35% of the original aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 104.750% of the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, to (but not including) the redemption date. If we undergo a change of control, we may be required to make an offer to holders of the Senior Notes to repurchase all of the Senior Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. 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 in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers and future funding commitments. As of December 31, 2020, we had $1 billion in a committed line of credit under our Senior Credit Facility and $415 million of uncommitted lines of credit to support the issuance of letters of credit. As of December 31, 2020, with respect to our Senior Credit Facility, we had $260 million outstanding borrowings to fund the acquisition of Centauri and $103 million of outstanding letters of credit. With respect to our $415 million of uncommitted lines of credit, we utilized $213 million for letters of credit as of December 31, 2020. The total remaining capacity of these committed and uncommitted lines of credit was approximately $839 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 letters of credit outstanding, $167 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. We may also guarantee that a project, once completed, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential amount of future payments that we could be required to make under an outstanding performance arrangement is typically the remaining estimated cost of work to be performed by or on behalf of third parties. Amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress are not estimable. For cost reimbursable contract, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete the project. If costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, subcontractors or vendors for claims. In our joint venture arrangements, the liability of each partner is usually joint and several. This means that each joint venture partner may become liable for the entire risk of performance guarantees provided by each partner to the customer. Typically, each joint venture partner indemnifies the other partners for any liabilities incurred in excess of the liabilities the other party is obligated to bear under the respective joint venture agreement. We are unable to estimate the maximum potential amount of future payments that we could be required to make under outstanding performance guarantees related to joint venture projects due to a number of factors, including but not limited to, the nature and extent of any contractual defaults by our joint venture partners, resource availability, potential performance delays caused by the defaults, the location of the projects, and the terms of the related contracts. Nonrecourse Project Debt Fasttrax Limited, a consolidated 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. 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 subordinated debt from the joint venture partners. 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 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, 2020: Dollars in millions Payments Due 2021 $ 5 2022 $ 1 2023 $ 1 2024 $ — 2025 $ — Beyond 2025 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2018 United States $ (208) $ 2 $ 44 Foreign: United Kingdom 76 105 203 Australia 37 15 7 Canada (2) 3 (2) Middle East 69 87 61 Africa 4 5 13 Other (1) 51 70 Subtotal 183 266 352 Total $ (25) $ 268 $ 396 The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2020 2019 2018 (Provision) benefit for income taxes $ (26) $ (59) $ (86) Shareholders' equity, foreign currency translation adjustment 1 1 (2) Shareholders' equity, pension and post-retirement benefits 26 11 (14) Shareholders' equity, changes in fair value of derivatives 3 2 3 Total income taxes $ 4 $ (45) $ (99) The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year ended December 31, 2020 Federal $ — $ 29 $ 29 Foreign (62) 11 (51) State and other (4) — (4) (Provision) benefit for income taxes $ (66) $ 40 $ (26) Year ended December 31, 2019 Federal $ (4) $ 15 $ 11 Foreign (67) 1 (66) State and other (2) (2) (4) (Provision) benefit for income taxes $ (73) $ 14 $ (59) Year ended December 31, 2018 Federal $ (1) $ (6) $ (7) Foreign (56) (20) (76) State and other (2) (1) (3) Provision for income taxes $ (59) $ (27) $ (86) The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2020 2019 2018 United Kingdom $ (14) $ (19) $ (32) Australia (6) (6) (8) Canada (1) (1) (6) Middle East (18) (20) (16) Africa — (1) (1) Other (12) (19) (13) Foreign provision for income taxes $ (51) $ (66) $ (76) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following: Years ended December 31, 2020 2019 2018 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 21 % Increase (reduction) in tax rate from: Tax impact from foreign operations 2 7 — Noncontrolling interests and equity earnings (3) — (1) State and local income taxes, net of federal benefit — 2 1 Other permanent differences, net 4 3 — Contingent liability accrual 2 1 3 U.S. taxes on foreign unremitted earnings (1) 3 — Change in valuation allowance — (10) (2) Research and development credits, net of provision — (5) — Non-deductible goodwill and restructuring charges (130) — — Effective tax rate on income from operations (105) % 22 % 22 % The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2020 2019 Deferred tax assets: Employee compensation and benefits $ 149 $ 103 Foreign tax credit carryforwards 243 257 Loss carryforwards 105 96 Insurance accruals 8 7 Allowance for bad debt 4 2 Accrued liabilities 66 63 Construction contract accounting 7 — Other 48 4 Total gross deferred tax assets 630 532 Valuation allowances (220) (200) Net deferred tax assets 410 332 Deferred tax liabilities: Construction contract accounting — (6) Intangible amortization (80) (56) Indefinite-lived intangible amortization (60) (49) Fixed asset depreciation 3 2 Accrued foreign tax credit carryforwards (2) (3) Total gross deferred tax liabilities (139) (112) Deferred income tax (liabilities) assets, net $ 271 $ 220 The valuation allowance for deferred tax assets was $220 million and $200 million at December 31, 2020 and 2019, respectively. The net change in the total valuation allowance was an increase of $20 million in 2020 and a decrease of $7 million in 2019. In 2019, KBR saw the benefit of a decrease in our valuation allowance associated with the ability to utilize foreign tax credits partially offset by an increase in the valuation allowance associated with our state net operating losses . The movement in the 2020 balance was mainly driven by a build up in our state net operating losses. The valuation allowance balance at December 31, 2020 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. Income (loss) related to the U.S. branches totaled $68 million, $90 million and $96 million for the fiscal years 2020, 2019, and 2018, respectively, and is included in the foreign component of income in the notes to the financial statements in our Form 10-K. 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 2021 through fiscal year 2029. 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. 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 at least $762 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 at least $605 million. While our current projections of taxable income exceed these amounts, changes in our forecasted taxable income in the applicable taxing jurisdictions within the carryforward periods could affect the ultimate realization of deferred tax assets and our valuation allowance. The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2020 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 404 $ (177) $ 227 United Kingdom 14 — 14 Australia 22 — 22 Canada 22 (21) 1 Other 29 (22) 7 Total $ 491 $ (220) $ 271 At December 31, 2020, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2020 Expiration Foreign tax credit carryforwards $ 243 2021-2029 Foreign net operating loss carryforwards $ 144 2021-2040 Foreign net operating loss carryforwards $ 37 Indefinite State net operating loss carryforwards $ 1,242 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 consider 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, 2020, the cumulative amount of permanently reinvested foreign earnings is $1.9 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 2020 2019 2018 Balance at January 1, $ 97 $ 90 $ 184 Increases related to current year tax positions 1 2 1 Increases related to prior year tax positions 6 7 18 Decreases related to prior year tax positions (7) — (45) Settlements — — (62) Lapse of statute of limitations (3) (1) (2) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions 2 (1) (4) Balance at December 31, $ 96 $ 97 $ 90 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $82 million as of December 31, 2020. 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 $9 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 $29 million and $23 million as of December 31, 2020 and 2019, respectively. During the years ended December 31, 2020 and 2019, we recognized net interest and penalty charges of $4 million, and $3 million, respectively, while for the year ended December 31, 2018, we recognized a net interest and penalty benefit of $1 million 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, 2020 and 2019, we have recorded $5 million in "Other liabilities" on our consolidated balance sheets for tax related items under the tax sharing agreement. The balance is not due until receipt by KBR of a future foreign tax credit refund claim filed with the IRS. |
Claims and Accounts Receivable
Claims and Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Claims and Accounts Receivable | Claims and Accounts Receivable Our claims and accounts receivable balance not expected to be collected within the next 12 months was $30 million and $59 million as of December 31, 2020 and 2019, respectively. Claims and accounts receivable primarily reflect 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 these amounts is $1 million and $28 million as of December 31, 2020 and 2019, respectively. The remaining assets and liabilities associated with the previously issued Form 1s issued by the U.S. government questioning or objecting costs billed to them are immaterial to our consolidated balance sheet as of December 31, 2020 as a result of an unfavorable FKTC containers claim ruling. See Note 15 "U.S. Government Matters" for additional information. The amount also includes $29 million and $31 million as of December 31, 2020 and 2019, respectively, related to contracts where our reimbursable costs have exceeded the U.S. government's funded values on the underlying task orders or task orders where the U.S. government has not authorized us to bill. We believe the remaining disputed costs will be resolved in our favor, at which time the U.S. government will be required to obligate funds from appropriations for the year in which resolutions occur. |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 31, 2020 | |
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, which 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 any 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 closing out the LogCAP III contract since 2011, and we expect the contract closeout process to continue for at least another year. 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 contract 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 in the future. The Company established a reserve for unallowable costs associated with open government matters related to the heritage KBR U.S. Government Services business in the amounts of $33 million and $39 million as of December 31, 2020 and 2019, respectively. The balance as of December 31, 2020, is recorded in “Other liabilities.” The balance as of December 31, 2019, is recorded in "Contract liabilities" and "Other liabilities" in the amounts of $27 million and $12 million, respectively. 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 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 U.S. government. We lost our claims against the government as referenced below and have exercised our offset or clawback rights as against FKTC in the arbitration. FKTC does not agree with our right of offset and a final hearing will be needed to resolve this issue and our other counterclaims against FKTC. No dates have been set for the final hearing on these matters. Management accrued an amount that it feels is adequate to cover either liability as determined by the panel or a negotiated settlement with FKTC on this matter. 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. Depositions of some DCMA and KBR personnel have taken place and more were expected to occur in early 2020 but have been postponed due to COVID-19. KBR and the relators filed various motions including a motion to dismiss by KBR. Although KBR's motion to dismiss was not granted it remains an option on appeal. The deadline for all fact discovery and depositions has been extended due to COVID-19 travel restrictions and related delays and discovery continues. We believe the allegations of fraud by the relators are without merit and, as of December 31, 2020, 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 for this complaint is now complete. On March 30, 2020, the Court granted KBR’s motion to transfer the case to the Southern District of Texas and the court recently ruled on various discovery motions allowing one additional deposition to take place. KBR and the U.S government have filed various dispositive motions which are currently pending. As of December 31, 2020, 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. KBR previously filed a claim before the ASBCA to recover the costs paid to FKTC to settle its requests for equitable adjustment. The DCMA had disallowed the majority of those costs. Those contract claims were stayed in 2013 at the request of the DOJ so that they could pursue the FCA case referenced above. Those claims were reinstated in 2016. We tried our contract appeal in September 2017. In November 2018, we received an unfavorable ruling from the ASBCA disallowing all of our costs paid to FKTC. KBR's motion for reconsideration by a senior panel of judges at the ASBCA was denied. KBR filed its brief on appeal in September 2019. Oral arguments occurred in May 2020 and a decision was issued on September 1, 2020. Although the court agreed with KBR that the wrong legal standard was applied by the trial court, the appellate court made its own fact findings on damages based on an incomplete record and denied KBR any recovery. KBR filed a motion for rehearing which was denied and therefore the dispute with the U.S. government has concluded. As of December 31, 2020, we believe our recorded accruals are adequate in the event we are unable to favorably resolve our claims and disputes against the government. |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Unaoil Investigation. We previously disclosed that the DOJ, SEC, and the SFO had been conducting investigations of Unaoil, a Monaco based company, in relation to international projects involving several global companies, including KBR. The DOJ and SEC have informed us that their investigations with regard to KBR are now closed. The SFO has informed us that its KBR investigation is no longer focused on allegations of corruption involving Unaoil although some lines of inquiry remain under investigation. To the extent necessary, KBR will continue to cooperate with the authorities in their investigations. Chadian Employee Class Action. In May 2018, former employees of our former Chadian subsidiary, Subsahara Services, Inc. ("SSI"), filed a class action suit claiming unpaid damages arising from the ESSO Chad Development Project for Exxon Mobil Corporation ("Exxon") dating back to the early 2000s. Exxon is also named as a defendant in the case. The SSI employees previously filed two class action cases in or around 2005 and 2006 for alleged unpaid overtime and bonuses. The Chadian Labour Court ruled in favor of the SSI employees for unpaid overtime resulting in a settlement of approximately $25 million which was reimbursed by Exxon under its contract with SSI. The second case for alleged unpaid bonuses was ultimately dismissed by the Supreme Court of Chad. The current case claims $122 million in unpaid bonuses characterized as damages rather than employee bonuses to avoid the previous Supreme Court dismissal and a 5-year statute of limitations on wage-related claims. SSI’s initial defense was filed and a hearing was held in December 2018. A merits hearing was held in February 2019. In March 2019, the Labour Court issued a decision awarding the plaintiffs approximately $34 million including a $2 million provisional award. Exxon and SSI have appealed the award and requested suspension of the provisional award which was approved on April 2, 2019. Exxon and SSI filed a submission to the Court of Appeal on June 21, 2019 and filed briefs at a hearing on February 28, 2020. The plaintiffs failed to file a response on March 13, 2020 and a hearing was scheduled for April 17, 2020. The hearing was postponed due to COVID-19 but took place on September 18, 2020. On October 9, 2020 the appellate court of Moundou awarded the plaintiffs approximately $19 million. SSI filed an appeal of this decision to the Chadian Supreme Court on December 28, 2020. SSI’s request for suspension on the enforceability of the award from the Chadian Supreme Court was granted on January 4, 2021 and therefore there is no current risk of enforcement of the judgment. At this time, we do not believe a risk of material loss is probable related to this matter. SSI is no longer an existing entity in Chad or the United States. Further, we believe any amounts ultimately paid to the former employees related to this adverse ruling would be reimbursable by Exxon based on the applicable contract. North West Rail Link Project. We participate in an unincorporated joint venture with two partners to provide engineering and design services in relation to the operations, trains and systems of a metro rail project in Sydney, Australia. The project commenced in 2014 and during its execution encountered delays and disputes resulting in claims and breach notices submitted to the joint venture by the client. Since November 2018, the client has submitted multiple claims alleging breach of contract and breach of duty by the joint venture in its execution of the services, claiming losses and damages of up to approximately $300 million Australian dollars. We currently believe the gross of amount of claims significantly exceeds the client’s entitlement as well as the joint venture’s limits of liability under the contract and that claims will be covered by project-specific professional indemnity insurance subject to deductibles. In August 2019, the client advised that it has filed legal proceedings in the Supreme Court of New South Wales to preserve its position with regards to statute of limitations. The joint venture was served a notice of proceedings in November 2019 and an initial hearing was expected to occur in April 2020 but was postponed. The client submitted an amended statement on May 28, 2020 claiming damages of $301 million Australian dollars but did not provide any detail to support that sum. KBR has a 33% participation interest in the joint venture and the partners have joint and several liability with respect to all obligations under the contract. As of December 31, 2020, we have reserved an amount that is immaterial for this matter. However, it is reasonably possible that we may ultimately be required to pay material amounts in excess of reserves. At this time, fact discovery and expert review are still ongoing. Additionally, we have not received substantiation of the client’s alleged damages and therefore, a more precise estimate cannot be made at this time. The joint venture, joint venture insurers, and client are engaged in discussions concerning potential resolution of the claims. 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, 2020, 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 continue to monitor developments in this area. 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, 2020, liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $42 million, comprised of $14 million included in "Accrued salaries, wages and benefits," $3 million included in "Other current liabilities" and $25 million included in "Other liabilities" all on our consolidated balance sheets. As of December 31, 2019, liabilities for unpaid and incurred but not reported claims for all insurance programs totaled approximately $42 million, comprised of $14 million included in "Accrued salaries, wages and benefits," $2 million included in "Other current liabilities" and $26 million included in "Other liabilities" all on our consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 86% of our lease obligations at December 31, 2020. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term to determine total future lease payments. Because most of our lease agreements do not explicitly state the discount rate, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments. Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities. The operating ROU asset and current and noncurrent operating lease liabilities are disclosed on our consolidated balance sheets. The finance ROU asset is included in "Property, plant and equipment" and the current and noncurrent finance lease liabilities are included in " Other current liabilities Other liabilities, The components of our operating lease costs for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, Dollars in millions 2020 2019 Operating lease cost $ 50 $ 54 Short-term lease cost 112 121 Total lease cost $ 162 $ 175 Operating lease cost includes operating lease ROU asset amortization of $37 million and $38 million for the years ended December 31, 2020 and 2019, respectively, and other noncash operating lease costs related to the accretion of operating lease liabilities and straight-line lease accounting of $13 million and $16 million for the years ended December 31, 2020 and 2019, respectively. Total short-term lease commitments as of December 31, 2020 and 2019 was approximately $107 million and $77 million, respectively. Additional information related to leases was as follows: December 31, December 31, Dollars in millions 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 61 $ 56 Operating cash flows from financing leases $ 11 $ 6 Right-of-use assets obtained in exchange for new operating lease liabilities $ 62 $ 20 Right-of-use assets obtained in exchange for new finance lease liabilities $ 34 $ 13 Weighted-average remaining lease term-operating (in years) 6 years 8 years Weighted-average remaining lease term-finance (in years) 3 years 3 years Weighted-average discount rate-operating leases 6.8 % 7.6 % Weighted-average discount rate-finance leases 4.7 % 5.6 % The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 31, 2020: Year Dollars in millions 2021 2022 2023 2024 2025 Thereafter Total Future payments - operating leases $ 56 $ 48 $ 42 $ 32 $ 27 $ 86 $ 291 Future payments - finance leases 12 8 3 2 — — 25 Total future payments - all leases $ 68 $ 56 $ 45 $ 34 $ 27 $ 86 $ 316 Dollars in millions Operating Leases Finance Leases Total Total future payments $ 291 $ 25 $ 316 Less imputed interest (61) (2) (63) Present value of future lease payments $ 230 $ 23 $ 253 Less current portion of lease obligations (44) (11) (55) Noncurrent portion of lease obligations $ 186 $ 12 $ 198 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2018 $ (304) $ (592) $ (14) $ (910) Other comprehensive income adjustments before reclassifications (3) (76) (11) (90) Amounts reclassified from AOCL (8) 14 7 13 Net other comprehensive income (loss) (11) (62) (4) (77) Balance at December 31, 2019 $ (315) $ (654) $ (18) $ (987) Other comprehensive income adjustments before reclassifications 36 (130) (21) (115) Amounts reclassified from AOCL (12) 20 11 19 Net other comprehensive income (loss) 24 (110) (10) (96) Balance at December 31, 2020 $ (291) $ (764) $ (28) $ (1,083) Reclassifications out of AOCL, net of tax, by component Dollars in millions December 31, 2020 December 31, 2019 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 12 $ 8 Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 12 $ 8 Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (24) $ (17) See (a) below Tax benefit 4 3 Provision for income taxes Net pension and post-retirement benefits $ (20) $ (14) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ (13) $ (8) Other non-operating income Tax benefit 2 1 Provision for income taxes Net changes in fair value of derivatives $ (11) $ (7) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. Shares of common stock Shares in millions Shares Balance at December 31, 2018 177.4 Common stock issued 0.9 Balance at December 31, 2019 178.3 Common stock issued 0.8 Balance at December 31, 2020 179.1 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2018 36.5 $ 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 817 Treasury stock acquired, net of ESPP shares issued 1.8 47 Balance at December 31, 2020 38.3 $ 864 Dividends |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019, $160 million remained available under this authorization. On February 19, 2020, our Board of Directors authorized an increase of approximately $190 million to our share repurchase program, returning the authorization level to $350 million. As of December 31, 2020, $303 million remains 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 flows and the authorization does not have an expiration date. Share Maintenance Programs Stock options and restricted stock awards granted under the KBR, Inc. 2006 Stock and Incentive Plan ("KBR Stock 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. Stock and Incentive Plan. The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2020 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 1,823,434 $ 25.70 $ 47 Withheld to cover shares 168,671 25.65 4 Total 1,992,105 $ 25.70 $ 51 Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 |
Share-based Compensation and In
Share-based Compensation and Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans KBR Stock Plan In November 2006, KBR established the 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, 2020, approximately 5.2 million shares were available for future grants under the KBR Stock Plan, of which approximately 2.1 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 2020, 2019 or 2018. The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2020. KBR stock options activity summary Number Weighted Weighted Aggregate Outstanding at December 31, 2019 1,602,587 $ 26.74 3.33 $ 0.87 Granted — — Exercised (211,531) 19.37 Forfeited (172,548) — Expired — 26.71 Outstanding at December 31, 2020 1,218,508 $ 28.02 2.34 $ 0.58 Exercisable at December 31, 2020 1,218,508 $ 28.00 2.34 $ 0.58 The total intrinsic values of options exercised for the years ended December 31, 2020, 2019 and 2018 were $0.1 million, $0.3 million and $0.1 million, respectively. As of December 31, 2020, 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 2020, 2019 and 2018. Total income tax benefit recognized in net income for share-based compensation arrangements was $0 million in 2020, 2019 and 2018. 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 2020 under the KBR Stock Plan. Restricted stock activity summary Number of Weighted Nonvested shares at December 31, 2019 1,230,045 $ 17.37 Granted 567,237 26.66 Vested (504,831) 17.41 Forfeited (104,972) 20.10 Nonvested shares at December 31, 2020 1,187,479 $ 21.54 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2020, 2019 and 2018 was $26.66, $19.01 and $15.93, respectively. Restricted stock compensation expense was $12 million for 2020, $12 million for 2019 and $10 million for 2018. Total income tax benefit recognized in net income for share-based compensation arrangements during 2020, 2019 and 2018 was $3 million, $3 million, and $2 million, respectively. As of December 31, 2020, there was $15 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 1.99 years. The total fair value of shares vested was $13 million in 2020, $14 million in 2019 and $10 million in 2018 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $9 million in 2020, $11 million in 2019 and $10 million in 2018 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 $3 million recorded to cost of revenues and $9 million to selling, 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 2020 2019 2018 Share-based compensation $ 12 $ 12 $ 10 Income tax benefit recognized in net income for share-based compensation $ 3 $ 3 $ 2 Incremental compensation cost $ 1 $ — $ 1 Incremental compensation cost resulted from modifications of previously granted share-based awards which allowed certain employees to retain their awards after leaving the Company. Excess tax benefits realized from the exercise of share-based compensation awards are recognized as paid-in capital in excess of par. KBR Cash Performance Based Award Units ("Cash Performance Awards") Under the KBR Stock Plan, for Cash Performance Awards granted in 2020, 2019 and 2018, 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 2020, we granted 19 million performance based award units ("Cash Performance Awards") with a 3-year performance period from January 1, 2020 to December 31, 2022. In 2019, we granted 19 million Cash Performance Awards with a three-year performance period from January 1, 2019 to December 31, 2021. In 2018, we granted 18 million Cash Performance Awards with a three-year performance period from January 1, 2018 to December 31, 2020. Cash Performance Awards forfeited, net of previous plan payout, totaled 7 million units, 3 million units, and 3 million units during the years ended December 31, 2020, 2019 and 2018, respectively. At December 31, 2020, the outstanding balance for Cash Performance Awards is 46 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, 2020, 2019 and 2018, we recognized $17 million, $34 million and $15 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 $21 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, 2020. The liability for Cash Performance Awards includes $27 million recorded within "Accrued salaries, wages and benefits, and $23 million recorded within "Employee compensation and benefits" on our consolidated balance sheets as of December 31, 2019. 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 2020 and 2019, our employees purchased approximately 182,000 and 166,000 shares, respectively, through the ESPP. These shares were issued from our treasury share account. |
Income (loss) per Share
Income (loss) per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Income (loss) per Share | Income (loss) per Share Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income 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 2020 2019 2018 Basic weighted average common shares outstanding 142 141 140 Stock options, restricted shares, and convertible debt — 1 1 Diluted weighted average common shares outstanding 142 142 141 For purposes of applying the two-class method in computing income (loss) per share, net earnings allocated to participating securities was none for fiscal year 2020, $1.5 million, or $0.01 per share for fiscal year 2019, and $1.8 million, or $0.01 per share for fiscal year 2018. The diluted income (loss) per share calculation did not include 1.1 million, 1.3 million, and 1.5 million antidilutive weighted average shares for the years ended December 31, 2020, 2019 and 2018, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Risk Management | Fair Value of Financial Instruments and Risk Management Fair value measurements. The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The carrying amount of cash and equivalents, accounts receivable and accounts payable, as reflected in the consolidated balance sheets, approximates fair value due to the short-term maturities of these financial instruments. The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our consolidated balance sheets are provided in the following table. December 31, 2020 December 31, 2019 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 285 $ 285 $ 176 $ 176 Term Loan B Level 2 516 517 756 764 Convertible Notes Level 2 350 480 350 466 Senior Notes Level 2 250 262 — — Senior Credit Facility Level 2 260 260 — — Nonrecourse project debt Level 2 7 7 18 18 See Note 12 "Debt and Other Credit Facilities" for further discussion of our term loans, convertibles notes, and nonrecourse project debt. The following disclosures for foreign currency risk and interest rate risk includes the fair value hierarchy levels for our assets and liabilities that are measured at fair value on a recurring basis. Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of December 31, 2020, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $85 million, all of which had durations of 15 days or less. We also had approximately $4 million (gross notional value) of cash flow hedges which had durations of 7 months or less. The cash flow hedges are primarily related to the British Pound. 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, 2020, and 2019, 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 (loss)" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2020 2019 Balance Sheet Hedges - Fair Value $ (5) $ 1 Balance Sheet Position - Remeasurement 9 3 Net $ 4 $ 4 Interest rate risk. We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting our LIBOR based loans into fixed-rate loans. In October 2018, we entered into interest rate swap agreements with a notional value of $500 million, which are effective beginning October 2018 and mature in September 2022. Under the October 2018 swap agreements, we receive one-month LIBOR and pays monthly a fixed rate of 3.055% for the term of the swaps. In March 2020, we entered into additional swap agreements with a notional value of $400 million, which are effective beginning October 2022 and mature in January 2027. Under the March 2020 swap agreements, we will receive a one-month LIBOR and pay a monthly fixed rate of 0.965% for the term of the swaps. Our interest rate swaps are reported at fair value using Level 2 inputs. The fair value of the interest rate swaps at December 31, 2020 was $33 million, of which $15 million is included in "Other current liabilities" and $18 million is included "Other liabilities." The unrealized net losses on these interest rate swaps was $33 million and included in "AOCL" as of December 31, 2020. The fair value of the interest rate swaps at December 31, 2019 was $21 million, of which $8 million is included in "Other current liabilities" and $13 million is included in "Other liabilities". The unrealized net losses on these interest rate swaps was $21 million and included in "AOCL" as of December 31, 2019. Credit Losses. We are exposed to credit losses primarily related to our professional services, project delivery, and technologies offered in our STS business segment. We do not consider our GS business segment to be at risk for credit losses because substantially all services within this segment are provided to agencies of the U.S., U.K. and Australian governments. We determined our allowance for credit losses by using a loss-rate methodology, in which we assessed our historical write-off of receivables against our total receivables and contract asset balances over several years. From this historical loss-rate approach, we also considered the current and forecasted economic conditions expected to be in place over the life of our receivables and contract assets. We monitor our ongoing credit exposure through an active review of our customers’ receivables balance against contract terms and due dates. Our activities include timely performance of our accounts receivable reconciliations, assessment of our aging of receivables, dispute resolution and payment confirmation. We also monitor any change in our historical write-off of receivables utilized in our loss-rate methodology and assess for any forecasted change in market conditions to adjust our credit reserve. At December 31, 2020, our STS business segment that is subject to credit risk reported approximately $409 million of financial assets consisting primarily of accounts receivable and contract assets, net of allowances of $13 million. Although there continues to be an economic disruption resulting from the impact of COVID-19 and the decline in energy markets in 2020, changes in our credit loss reserve were not material for the year ended December 31, 2020. Based on an aging analysis at December 31, 2020, 82% of our accounts receivable related to these segments were outstanding for less than 90 days. Sales of Receivables. From time to time, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. The receivables sold under the agreements do not allow for recourse if such receivables are not collected by the third-party financial institutions. The Company accounts for these receivable transfers as a sale under ASC Topic 860, Transfers and Servicing, as the receivables have been legally isolated from the Company, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the consolidated balance sheets is presented net of the transferred amount. The Company has derecognized $779 million of accounts receivables from the balance sheet under these agreements as of December 31, 2020. The fair value of the sold receivables approximated their book value due to their short-term nature. The fees incurred are presented in “Other non-operating (loss) income” on the consolidated statements of operations. Activity for third-party financial institutions consisted of the following: Year Ended Dollars in millions December 31, 2020 Sale of receivables $ 779 Settlement of receivables (647) Cash collection, not yet remitted (20) Outstanding balances sold to financial institutions $ 112 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New accounting pronouncements requiring implementation in future periods are discussed below. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends ASC 715 to add, remove and clarify certain disclosure requirements related to defined benefit pension and other post-retirement plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We do not expect the adoption of ASU No. 2018-14 to have any impact on our financial position, results of operations or cash flows. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in ASC Topic 740 related to the incremental approach for intraperiod tax allocation, accounting for basis differences for ownership changes in foreign investments and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax and enacted changes in tax laws in interim periods. For public entities, this ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early adoption is permitted. We are currently evaluating the future impact of adoption of this standard. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of the Interbank Offered Rate Transition on Financial Reporting to provide optional relief from applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. In addition, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) – Scope, to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective upon issuance and generally can be applied through December 31, 2022. We are currently evaluating the future impact of adoption of this standard. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity's Own Equity. This guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for certain convertible instruments and requires the use of the if-converted method. ASU 2020-06 is effective for us for annual reporting periods beginning after December 15, 2021 and for interim periods within those annual periods, and can be applied utilizing either a modified or full retrospective transition method. We are currently evaluating the future impact of adoption of this standard. In September 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470) Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762, Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities. This ASU includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. These SEC changes are intended to both improve the quality of disclosure and increase the likelihood that issuers will conduct debt offerings on a registered basis. For public entities, this ASU is effective on January 4, 2021, and voluntary compliance with the final amendments in advance will be permitted. We are currently evaluating our transition to comply with this SEC amendment. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2020 and 2019 is presented in the following table. In the following table, the sum of basic and diluted “Net income 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 2020 Total revenues $ 1,537 $ 1,385 $ 1,379 $ 1,466 $ 5,767 Gross profit 186 142 172 166 666 Equity in earnings of unconsolidated affiliates 1 16 13 — 30 Operating income (69) (12) 93 45 57 Net income (84) (39) 52 20 (51) Net income attributable to noncontrolling interests (20) — — (1) (21) Net income attributable to KBR (104) (39) 52 19 (72) Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ (0.73) $ (0.28) $ 0.36 $ 0.14 $ (0.51) Net income attributable to KBR per share—Diluted $ (0.73) $ (0.28) $ 0.36 $ 0.13 $ (0.51) (Dollars in millions, except per share amounts) First Second Third Fourth Year 2019 Total revenues $ 1,340 $ 1,422 $ 1,425 $ 1,452 $ 5,639 Gross profit 153 160 169 171 653 Equity in earnings of unconsolidated affiliates — 15 9 11 35 Operating income 78 92 104 88 362 Net income 42 50 58 59 209 Net income attributable to noncontrolling interests (2) (2) (2) (1) (7) Net income attributable to KBR 40 48 56 58 202 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.28 $ 0.34 $ 0.39 $ 0.41 $ 1.42 Net income attributable to KBR per share—Diluted $ 0.28 $ 0.34 $ 0.39 $ 0.40 $ 1.41 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 10 to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. |
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 certain assets and liabilities; the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and 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 our contracts, including recognition of estimated losses on uncompleted contracts • 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 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 EquivalentsWe consider highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Revenue Recognition | Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers on January, 1, 2018 for our consolidated entities and for each of the remaining unconsolidated Aspire Defence contracting entities effective January 1, 2018. Effective January 1, 2019, we adopted ASC Topic 606 for our remaining unconsolidated affiliates. Our financial results for reporting periods beginning January 1, 2018 for our consolidated entities and for each of the remaining unconsolidated Aspire Defence contracting entities and January 1, 2019 for our remaining unconsolidated affiliates 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 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 a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative 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. Contract Types The Company performs work under contracts that broadly consist of fixed-price, cost-reimbursable or a combination of the two. Fixed-price contracts include both lump-sum and unit-rate contracts. Cost-reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time and material contracts. Cost-reimbursable contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers is based on specific negotiations with each customer. For 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. 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. For contracts where performance obligations are satisfied due to the continuous transfer of control to the customer, revenue is recognized over time. Where 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, those contracts are accounted for as single performance obligations. We recognize revenue generally using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs at completion. This method is deemed appropriate in measuring performance towards completion because it directly measures the value of the goods and services transferred to the customer. Contract Costs Contract costs include all direct materials, labor and subcontractor costs and an allocation of 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, which revenue is recognized up to cost. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer, which revenue is recognized using the cost-to-cost method. 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. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties. 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 been material. Variable Consideration It is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, award fees, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which 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. 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 and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost 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 typically 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 prospectively 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. |
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. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Our selling, general and administrative expenses represent expenses that are not associated with the execution of the contracts. Selling, 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. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in “Cost of revenues”) or selling, general and administrative expenses in the same in the same manner as such costs are defined in the Company’s disclosure statements under CAS. |
Accounts Receivable | Accounts ReceivableAccounts 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 credit losses 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. |
Property, Plant and Equipment | Property, Plant and EquipmentProperty, 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. |
Acquisitions | 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 engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. 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 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 2020 and determined that none of the goodwill was impaired. See Note 9 to our consolidated financial statements for reported goodwill in each of our segments and goodwill impairment recognized. |
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 7 to our consolidated financial statements for our discussion on impairment of our equity method investments and Note 10 to our consolidated financial statements for our discussion on equity method investments. In cases 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. In cases where we have a constructive or legal obligation to fund deficits of the joint venture, we record such deficits as "Other current liabilities" on our consolidated balance sheets. |
Joint Ventures and VIEs | Joint Ventures and VIEs 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, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the 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. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 10 to our consolidated financial statements for our discussion on variable interest entities. |
Deconsolidation of a Subsidiary | Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with ASC 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of fair value of any consideration received, the fair value of any retained noncontrolling investment and the carrying amount of any noncontrolling interest in the former subsidiary at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. |
Pensions | Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (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, which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. |
Income Taxes | Income Taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. See Note 13 to our consolidated financial statements for our discussion on income taxes. Income taxes are accounted for under the asset and liability method. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results. We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year. We recognize the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records potential interest and penalties related to unrecognized tax benefits in income tax expense. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome. |
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 22 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within "Other non-operating income" on our consolidated statements of operations. Realized gains or losses on derivatives used to manage interest rate risk are included in interest expense in our consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. |
Noncontrolling interest | Noncontrolling interestNoncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements. |
Foreign currency | Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long-term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in "Accumulated other comprehensive loss" on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in "Accumulated other comprehensive loss" on our consolidated balance sheets. |
Share-based compensation | Share-based compensationWe 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. |
Commitments and Contingencies | Commitments and Contingencies We record liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Impact of Adoption of New Accounting Standards and Recent Accounting Pronouncements | Impact of Adoption of New Accounting Standards Financial Instruments - Credit Losses Effective January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, using the modified retrospective approach. This ASU replaces the incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset, including receivables, is recorded. The estimate of expected credit losses considers not only historical information, but also current and future economic conditions and events. As a result of the adoption, we recorded a cumulative effect adjustment to retained earnings of $3 million, net of tax of $1 million, on our opening consolidated balance sheet as of January 1, 2020. See Note 22 "Financial Instruments and Risk Management" for further discussion related to credit losses. Lease Accounting Effective January 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) and related ASUs using the modified retrospective transition approach. The modified retrospective transition approach provides for an “effective date” method for recording leases that existed or were entered into on or after January 1, 2019, without restating prior-period information. ASC Topic 842 provided several optional practical expedients for use in transition. We elected to use the package of practical expedients which allowed us to not reassess our previous conclusions about lease identification, lease classification and the accounting treatment for initial direct costs. We did not elect the practical expedient pertaining to the use of hindsight. The most significant effects of the new standard on our consolidated financial statements are the recognition of new operating lease right-of-use ("ROU") assets and operating lease liabilities on our consolidated balance sheet for operating leases as well as significant new disclosures about our leasing activities as further discussed in Note 17. On January 1, 2019, we recorded “Operating lease liabilities” of approximately $253 million based on the present value of the remaining lease payments over the lease term. Additionally, we reclassified current and noncurrent deferred rent of $68 million associated with straight-line accounting and tenant incentives related to existing real estate leases against the initial "Operating lease right-of-use assets" as of January 1, 2019. The adoption of the new standard did not have a material impact on our results of operations or cash flows. As a result of the adoption, we recorded a cumulative-effect adjustment to retained earnings of $21 million, net of deferred taxes of $7 million, representing the unamortized portion of a deferred gain previously recorded in conjunction with the 2012 sale and leaseback of the office building in Houston, Texas where our corporate headquarters is located. We concluded the transaction resulted in the transfer of control of the office building to the buyer-lessor at market terms and therefore would have qualified as a sale under ASC Topic 842 with gain recognition in the period in which the sale was recognized. Revenue Recognition Effective January 1, 2019, we adopted ASU No. 2017-13, Revenue from Contracts with Customers (Topic 606) for our remaining unconsolidated affiliates, using the modified retrospective approach, except for unconsolidated VIEs associated with the Aspire Defence project for which we adopted ASC Topic 606 on January 1, 2018. We recognized the cumulative effect of initially applying ASC Topic 606 for our unconsolidated affiliates as an adjustment to our assets and retained earnings in the balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 606 January 1, 2019 Assets Equity in and advances to unconsolidated affiliates $ 724 $ 29 $ 753 Shareholders' equity Retained Earnings 1,235 29 1,264 Other Standards Effective January 1, 2020, we adopted ASU No. 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606, which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. The adoption of this standard did not have any impact on our financial position, results of operations or cash flows. Effective January 1, 2020, we adopted ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest. The adoption of this standard did not have any impact on our financial position, results of operations or cash flows. Effective January 1, 2020, we adopted ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU permits customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. We have elected to avail this option. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. Effective January 1, 2020, we adopted ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU amends ASC 820 to add, remove and modify certain disclosure requirements for fair value measurements. For example, the Company will now be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The adoption of this standard did not have a material impact on our consolidated financial statements or disclosures. Effective January 1, 2020, we adopted 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. As a result of the adoption of this standard, we used Step 1 to measure the goodwill impairment losses recognized during the first and second quarters of 2020 without proceeding to Step 2 of the goodwill impairment test as required under the previous standard. See Note 9 "Goodwill and Goodwill Impairment" for discussion of goodwill impairment recognized. New accounting pronouncements requiring implementation in future periods are discussed below. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends ASC 715 to add, remove and clarify certain disclosure requirements related to defined benefit pension and other post-retirement plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We do not expect the adoption of ASU No. 2018-14 to have any impact on our financial position, results of operations or cash flows. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in ASC Topic 740 related to the incremental approach for intraperiod tax allocation, accounting for basis differences for ownership changes in foreign investments and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax and enacted changes in tax laws in interim periods. For public entities, this ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early adoption is permitted. We are currently evaluating the future impact of adoption of this standard. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of the Interbank Offered Rate Transition on Financial Reporting to provide optional relief from applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. In addition, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) – Scope, to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective upon issuance and generally can be applied through December 31, 2022. We are currently evaluating the future impact of adoption of this standard. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity's Own Equity. This guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for certain convertible instruments and requires the use of the if-converted method. ASU 2020-06 is effective for us for annual reporting periods beginning after December 15, 2021 and for interim periods within those annual periods, and can be applied utilizing either a modified or full retrospective transition method. We are currently evaluating the future impact of adoption of this standard. In September 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470) Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762, Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities. This ASU includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. These SEC changes are intended to both improve the quality of disclosure and increase the likelihood that issuers will conduct debt offerings on a registered basis. For public entities, this ASU is effective on January 4, 2021, and voluntary compliance with the final amendments in advance will be permitted. We are currently evaluating our transition to comply with this SEC amendment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Data Related to our Transactions with U.S. and U.K. Governmental Agencies | The following tables present summarized data related to our transactions with U.S. and U.K governmental agencies. Revenues and percent of consolidated revenues from major customers: Years ended December 31, Dollars in millions 2020 2019 2018 U.S. government $ 3,079 53 % $ 3,014 53 % $ 2,610 53 % U.K. government $ 573 10 % $ 659 12 % $ 622 13 % Accounts receivable and percent of consolidated accounts receivable from major customers: December 31, Dollars in millions 2020 2019 U.S. government receivables percentage $ 501 56 % $ 484 52 % U.K. government receivables percentage $ 47 5 % $ 44 5 % |
Schedule of Other Current Assets | The components of "Other current assets" on our consolidated balance sheets as of December 31, 2020 and 2019 are presented below: December 31, Dollars in millions 2020 2019 Prepaid expenses $ 71 $ 65 Value-added tax receivable 22 37 Advances to subcontractors 10 20 Other miscellaneous assets 18 24 Total other current assets $ 121 $ 146 |
Components of Other Current Liabilities | The components of "Other current liabilities" on our consolidated balance sheets as of December 31, 2020 and 2019 are presented below: December 31, Dollars in millions 2020 2019 Current maturities of long-term debt $ 12 $ 27 Reserve for estimated losses on uncompleted contracts 16 10 Retainage payable 22 41 Income taxes payable 16 25 Restructuring reserve 32 — Value-added tax payable 29 36 Dividend payable 14 11 Other miscellaneous liabilities 52 36 Total other current liabilities $ 193 $ 186 |
Schedule of Impact of New Accounting Pronouncements | We recognized the cumulative effect of initially applying ASC Topic 606 for our unconsolidated affiliates as an adjustment to our assets and retained earnings in the balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 606 January 1, 2019 Assets Equity in and advances to unconsolidated affiliates $ 724 $ 29 $ 753 Shareholders' equity Retained Earnings 1,235 29 1,264 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | Operations by Reportable Segment Years ended December 31, Dollars in millions 2020 2019 2018 Revenues: Government Solutions $ 4,055 $ 4,042 $ 3,582 Sustainable Technology Solutions 1,712 1,597 1,331 Total revenues $ 5,767 $ 5,639 $ 4,913 Gross profit: Government Solutions $ 493 $ 444 $ 363 Sustainable Technology Solutions 173 209 221 Total gross profit $ 666 $ 653 $ 584 Equity in earnings of unconsolidated affiliates: Government Solutions $ 28 $ 29 $ 35 Sustainable Technology Solutions 2 6 44 Total equity in earnings of unconsolidated affiliates $ 30 $ 35 $ 79 Selling, general and administrative expenses: Government Solutions $ (163) (135) (114) Sustainable Technology Solutions (83) (90) (86) Other (89) (116) (94) Total selling, general and administrative expenses $ (335) (341) (294) Acquisition and integration related costs (9) (2) (7) Goodwill impairment (99) — — Restructuring charges and asset impairments (214) — — Gain on disposition of assets 18 17 (2) Gain on consolidation of Aspire subcontracting entities — — 108 Operating income $ 57 $ 362 $ 468 Interest expense (83) (99) (66) Other non-operating income (loss) 1 5 (6) (Loss) income before income taxes and noncontrolling interests $ (25) $ 268 $ 396 Years ended December 31, Dollars in millions 2020 2019 2018 Capital expenditures: Government Solutions $ 13 $ 7 $ 11 Sustainable Technology Solutions 3 4 1 Other 4 9 5 Total $ 20 $ 20 $ 17 Depreciation and amortization: Government Solutions $ 60 $ 61 $ 42 Sustainable Technology Solutions 26 23 11 Other 29 20 10 Total $ 115 $ 104 $ 63 |
Schedule of Balance Sheet Information by Reportable Segment | December 31, Dollars in millions 2020 2019 Total assets: Government Solutions $ 3,379 $ 2,711 Sustainable Technology Solutions 1,440 1,669 Other 886 980 Total $ 5,705 $ 5,360 Goodwill (Note 9): Government Solutions $ 1,589 $ 978 Sustainable Technology Solutions 172 287 Total $ 1,761 $ 1,265 Equity in and advances to related companies (Note 10): Government Solutions $ 145 $ 147 Sustainable Technology Solutions 736 699 Total $ 881 $ 846 |
Schedule of Selected Geographic Information | Years ended December 31, Dollars in millions 2020 2019 2018 Revenues: United States $ 3,031 $ 2,705 $ 2,260 Middle East 857 1,027 884 Europe 961 1,058 989 Australia 324 288 329 Canada 46 39 21 Africa 152 197 133 Asia 203 214 190 Other countries 193 111 107 Total $ 5,767 $ 5,639 $ 4,913 December 31, Dollars in millions 2020 2019 Property, plant & equipment, net: United States $ 57 $ 50 United Kingdom 40 44 Other 33 36 Total $ 130 $ 130 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by business unit and reportable segment was as follows: Year Ended December 31, Dollars in millions 2020 2019 2018 Government Solutions Science & Space $ 967 $ 863 $ 641 Defense & Intel 959 782 709 Readiness & Sustainment 1,153 1,400 1,256 International 976 997 976 Total Government Solutions 4,055 4,042 3,582 Sustainable Technology Solutions 1,712 1,597 1,331 Total revenue $ 5,767 $ 5,639 $ 4,913 Revenue by geographic destination was as follows: Year Ended December 31, 2020 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 2,280 $ 751 $ 3,031 Middle East 622 235 857 Europe 743 218 961 Australia 272 52 324 Canada 1 45 46 Africa 81 71 152 Asia — 203 203 Other countries 56 137 193 Total revenue $ 4,055 $ 1,712 $ 5,767 Year Ended December 31, 2019 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 2,110 $ 595 $ 2,705 Middle East 795 232 1,027 Europe 796 262 1,058 Australia 209 79 288 Canada 1 38 39 Africa 76 121 197 Asia — 214 214 Other countries 55 56 111 Total revenue $ 4,042 $ 1,597 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,767 $ 493 $ 2,260 Middle East 735 149 884 Europe 766 223 989 Australia 185 144 329 Canada 1 20 21 Africa 77 56 133 Asia — 190 190 Other countries 51 56 107 Total revenue $ 3,582 $ 1,331 $ 4,913 Year Ended December 31, 2020 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,038 $ 497 $ — $ 1,535 Cost Reimbursable 3,017 1,215 — $ 4,232 Total revenue $ 4,055 $ 1,712 $ — $ 5,767 Year Ended December 31, 2019 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,089 $ 520 $ — $ 1,609 Cost Reimbursable 2,953 1,077 — 4,030 Total revenue $ 4,042 $ 1,597 $ — $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Sustainable Technology Solutions Other Total Fixed Price $ 1,032 $ 412 $ — $ 1,444 Cost Reimbursable 2,550 919 — 3,469 Total revenue $ 3,582 $ 1,331 $ — $ 4,913 |
Schedule of Accounts Receivable | December 31, Dollars in millions 2020 2019 Unbilled $ 476 $ 308 Trade & other 423 630 Accounts receivable, net $ 899 $ 938 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 assets and liabilities assumed as of the acquisition date as follows: Dollars in millions Centauri Fair value of total consideration paid $ 830 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and equivalents 7 Accounts receivable 78 Contract assets 19 Other current assets 1 Total current assets 105 Property, plant, and equipment, net 18 Operating lease right-of-use assets 36 Intangible assets, net 226 Other assets 1 Total assets 386 Accounts payable 29 Contract liabilities 2 Accrued salaries, wages and benefits 39 Operating lease liabilities 6 Total current liabilities 76 Deferred income taxes 19 Operating lease liabilities 30 Other liabilities 7 Total liabilities 132 Net assets acquired 254 Goodwill $ 576 |
Schedule of Intangible Assets and the Related Weighted-Average Useful Live | The following table summarizes the fair value of intangible assets and the related weighted-average useful lives: Dollars in millions Fair Value Weighted Average Amortization Period (in years) Funded backlog $ 28 1 Customer relationships 198 15 Total intangible assets $ 226 13 |
Schedule of Pro Forma Information | Year ended December 31, Dollars in millions 2020 2019 (Unaudited) Revenue $ 6,194 $ 6,137 Net income attributable to KBR $ (53) $ 172 Diluted earnings per share $ (0.37) $ 1.20 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Equivalents | The components of our cash and equivalents balance are as follows: December 31, 2020 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 228 $ 54 $ 282 Short-term investments (c) 3 — 3 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 151 — 151 Total $ 382 $ 54 $ 436 December 31, 2019 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 187 $ 114 $ 301 Short-term investments (c) 58 93 151 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 259 1 260 Total $ 504 $ 208 $ 712 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds, and other highly liquid short-term investments. |
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, 2020 | |
Contractors [Abstract] | |
Schedule of Unapproved Change Orders and Claims | 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 2020 2019 Amounts included in project estimates-at-completion at January 1, $ 978 $ 973 (Decrease) increase in project estimates (1) 21 Approved change orders (6) (7) Foreign currency effect 77 (9) Amounts included in project estimates-at-completion at December 31, $ 1,048 $ 978 Amounts recognized over time based on progress at December 31, $ 1,048 $ 974 |
Restructuring Charges and Ass_2
Restructuring Charges and Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Impairments | Provided in the table below are the details of the restructuring charges and asset impairments as of December 31, 2020. Dollars in millions Severance Lease Abandonment Other Total Restructuring Charges Asset Impairments Total Restructuring Charges & Asset Impairments Government Solutions $ 2 $ — $ — $ 2 $ 2 $ 4 Sustainable Technology Solutions 29 4 6 39 47 86 Other 1 54 20 75 49 124 Total $ 32 $ 58 $ 26 $ 116 $ 98 $ 214 |
Schedule of Reconciliation of Beginning and Ending Restructuring Liability | A reconciliation of the beginning and ending restructuring liability balances is provided in the following table. Dollars in millions Severance Lease Abandonment Other Total Balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges accrued during the period 32 58 26 116 Lease restructuring charges related to operating lease liabilities — (4) — (4) Cash payments / settlements during the period (16) (2) (3) (21) Currency translation and other adjustments (1) — 1 — Balance at December 31, 2020 $ 15 $ 52 $ 24 $ 91 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The components of our property, plant and equipment balance are as follows: Estimated December 31, Dollars in millions 2020 2019 Land N/A $ 5 $ 5 Buildings and property improvements 1-35 129 124 Equipment and other 1-25 415 387 Total 549 516 Less accumulated depreciation (419) (386) Net property, plant and equipment $ 130 $ 130 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Solutions Sustainable Technology Solutions Total Balance as of January 1, 2019 $ 977 $ 288 $ 1,265 Foreign currency translation 1 (1) — Balance as of December 31, 2019 $ 978 $ 287 $ 1,265 Goodwill acquired during the period (Note 4) 589 — 589 Goodwill reallocation 19 (19) — Impairment loss — (99) (99) Foreign currency translation 3 3 6 Balance as of December 31, 2020 $ 1,589 $ 172 $ 1,761 |
Cost and Accumulated Amortization of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 31, 2020 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 15 470 (100) 370 Developed technologies 19 75 (37) 38 Contract backlog 18 291 (76) 215 Other 13 25 (15) 10 Total intangible assets $ 911 $ (228) $ 683 December 31, 2019 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 16 271 (83) 188 Developed technologies 22 68 (36) 32 Contract backlog 19 255 (52) 203 Other 14 24 (13) 11 Total intangible assets $ 679 $ (184) $ 495 |
Amortization Expense of Intangible Assets | Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2020 2019 2018 Intangibles amortization expense $ 42 $ 33 $ 32 |
Expected Amortization Expense of Intangibles | Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future 2021 $ 63 2022 $ 37 2023 $ 37 2024 $ 37 2025 $ 37 Beyond 2025 $ 422 |
Equity Method Investments and_2
Equity Method Investments and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Beginning balance at January 1, $ 846 $ 724 Cumulative effect of change in accounting policy (a) — 25 Adjusted balance at January 1, 846 749 Equity in earnings of unconsolidated affiliates 30 35 Distributions of earnings of unconsolidated affiliates (38) (69) Advances to (payments from) unconsolidated affiliates, net (15) (10) Investments (b) 26 146 Impairment of equity method investments (c) (19) — Foreign currency translation adjustments 50 (7) Other 1 2 Balance at December 31, $ 881 $ 846 (a) At January 1, 2019, we recognized a cumulative effect adjustment of $25 million as a result of the adoption of ASC 606 by our unconsolidated project joint ventures. See Note 1 "Significant Accounting Policies" for further discussion. (b) Investments include $24 million and $141 million in funding contributions to JKC for the years ended December 31, 2020 and 2019, respectively. (c) During the year ended December 31, 2020, we recognized an impairment of $13 million associated with our investment in a joint venture project located in the Middle East and a $6 million impairment related to other equity method investments. See Note 7 "Restructuring Charges and Asset Impairments" for further discussion. |
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 Sheet December 31, Dollars in millions 2020 2019 Current assets $ 3,216 $ 3,072 Noncurrent assets 3,227 3,219 Total assets $ 6,443 $ 6,291 Current liabilities $ 1,018 $ 949 Noncurrent liabilities 2,831 2,922 Total liabilities $ 3,849 $ 3,871 Statements of Operations Years ended December 31, Dollars in millions 2020 2019 2018 Revenues $ 2,032 $ 2,592 $ 3,190 Operating income $ 54 $ 92 $ 197 Net income $ 28 $ 48 $ 173 The following summarizes the total assets and total liabilities as reflected in our consolidated balance sheets related to our significant unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 31, 2020 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 11 $ 9 Aspire Defence Limited $ 68 $ 5 JKC joint venture (Ichthys LNG project) $ 606 $ 44 U.K. Road project joint ventures $ 59 $ — Middle East Petroleum Corporation (EBIC Ammonia project) $ 31 $ 1 Dollars in millions December 31, 2019 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 14 $ 10 Aspire Defence Limited $ 67 $ 5 JKC joint venture (Ichthys LNG project) $ 546 $ 29 U.K. Road project joint ventures $ 40 $ 21 Middle East Petroleum Corporation (EBIC Ammonia project) $ 47 $ 1 |
Schedule of Services Provided to Unconsolidated JV's | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2020 and 2019 are as follows: December 31, Dollars in millions 2020 2019 Accounts receivable, net of allowance for doubtful accounts $ 83 $ 74 Contract assets (a) $ 2 $ 2 Contract liabilities (a) $ 53 $ 33 (a) Reflects contract assets and contract liabilities primarily related to joint ventures within our STS business segment. |
Summary of Significant VIEs | The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 31, 2020 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ — Fasttrax Limited (Fasttrax project) $ 45 $ 18 Aspire Defence subcontracting entities (Aspire Defence project) $ 448 $ 205 Dollars in millions December 31, 2019 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ 17 Fasttrax Limited (Fasttrax project) $ 45 $ 24 Aspire Defence subcontracting entities (Aspire Defence project) $ 530 $ 283 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Projected Benefit Obligations | Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2020 2019 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 76 $ 1,988 $ 71 $ 1,751 Service cost — 2 — 2 Interest cost 2 39 3 50 Foreign currency exchange rate changes — 75 — 46 Actuarial (gain) loss 6 287 7 214 Other — (1) — (1) Benefits paid (4) (64) (5) (74) Projected benefit obligations at end of period $ 80 $ 2,326 $ 76 $ 1,988 Change in plan assets: Fair value of plan assets at beginning of period $ 60 $ 1,727 $ 54 $ 1,518 Actual return on plan assets 7 189 10 200 Employer contributions 2 44 2 43 Foreign currency exchange rate changes — 66 — 41 Benefits paid (4) (64) (5) (74) Other (1) (1) (1) (1) Fair value of plan assets at end of period $ 64 $ 1,961 $ 60 $ 1,727 Funded status $ (16) $ (365) $ (16) $ (261) |
Schedule of Amounts Recognized on Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2020 2019 Amounts recognized on the consolidated balance sheets Pension obligations $ (16) $ (365) $ (16) $ (261) |
Components of Net Periodic Benefit Cost | Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2020 2019 2018 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 2 39 3 50 2 50 Expected return on plan assets (3) (59) (3) (77) (3) (80) Prior service cost amortization — 1 — 1 — — Recognized actuarial loss 2 22 2 16 2 26 Net periodic benefit cost $ 1 $ 5 $ 2 $ (8) $ 1 $ (2) |
Schedule of Accumulated Other Comprehensive Loss | The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2020 and 2019, net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2020 2019 Unrecognized actuarial loss, net of tax of $10 and $240, $9 and $215, respectively $ 24 $ 740 $ 22 $ 632 Total in accumulated other comprehensive loss $ 24 $ 740 $ 22 $ 632 |
Schedule of Accumulated Other Comprehensive Income to be Amortized into Net Periodic Benefit Cost | Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2021 are as follows: Dollars in millions United States Int’l Actuarial loss $ 2 $ 25 Total $ 2 $ 25 |
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine United States Int'l United States Int'l United States Int'l 2020 2019 2018 Discount rate 2.89 % 2.05 % 3.98 % 2.90 % 3.33 % 2.50 % Expected return on plan assets 5.72 % 3.70 % 6.09 % 5.09 % 6.01 % 5.20 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2020 2019 Discount rate 2.00 % 1.40 % 2.89 % 2.05 % |
Schedule of Allocation of Plan Assets | The target asset allocation for our U.S. and International plans for 2021 is as follows: Asset Allocation 2021 Targeted United States Int'l Equity funds and securities 51 % 23 % Fixed income funds and securities 39 % 55 % Hedge funds — % 5 % Real estate funds 1 % 4 % Other 9 % 13 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2021 and 2020, by asset class, are as follows: International Plans 2021 Targeted 2020 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 50 % 1 % 50 % Fixed income funds and securities 35 % 100 % 35 % 100 % Hedge funds — % 7 % — % 22 % Real estate funds — % 10 % — % 20 % Other — % 34 % — % 42 % The range of targeted asset allocations for our U.S. plans for 2021 and 2020, by asset class, are as follows: Domestic Plans 2021 Targeted 2020 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 62 % 41 % 68 % Fixed income funds and securities 31 % 47 % 31 % 47 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 7 % 10 % A summary of total investments for KBR’s defined benefit 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, 2020 United States plan assets Investments measured at net asset value (a) $ 62 $ — $ — $ — Cash and equivalents 2 2 — — Total United States plan assets $ 64 $ 2 $ — $ — International plan assets Equities $ 108 $ — $ — $ 108 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 4 4 — — Other 40 — — 40 Investments measured at net asset value (a) 1,806 — — — Total international plan assets $ 1,961 $ 4 $ — $ 151 Total plan assets at December 31, 2020 $ 2,025 $ 6 $ — $ 151 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2019 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Cash and equivalents $ 1 $ 1 $ — $ — Total United States plan assets $ 60 $ 1 $ — $ — International plan assets Equities $ 103 $ — $ — $ 103 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 2 2 — — Other 87 44 — 43 Investments measured at net asset value (a) 1,532 — — — Total international plan assets $ 1,727 $ 46 $ — $ 149 Total plan assets at December 31, 2019 $ 1,787 $ 47 $ — $ 149 |
Schedule of Fair Value Measurement of Plan Assets | 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, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 Return on assets held at end of year 8 10 — — (2) Return on assets sold during the year 1 — — 1 — Purchases, sales and settlements 11 7 (1) — 5 Foreign exchange impact 3 2 — — 1 Balance as of December 31, 2019 $ 149 $ 103 $ 1 $ 2 $ 43 Return on assets held at end of year 2 1 — — 1 Return on assets sold during the year 2 — — — 2 Purchases, sales and settlements, net (6) — — — (6) Foreign exchange impact 4 4 — — — Balance as of December 31, 2020 $ 151 $ 108 $ 1 $ 2 $ 40 |
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 2021 $ 5 $ 60 2022 $ 5 $ 61 2023 $ 5 $ 62 2024 $ 5 $ 64 2025 $ 5 $ 65 Years 2026 - 2030 $ 24 $ 348 |
Debt and Other Credit Facilit_2
Debt and Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our outstanding debt consisted of the following at the dates indicated: Dollars in millions December 31, 2020 December 31, 2019 Term Loan A 285 176 Term Loan B 516 756 Convertible Senior Notes 350 350 Senior Notes 250 — Senior Credit Facility 260 — Unamortized debt issuance costs - Term Loan A (4) (4) Unamortized debt issuance costs and discount - Term Loan B (16) (15) Unamortized debt issuance costs and discount - Convertible Notes (40) (53) Unamortized debt issuance costs and discount - Senior Notes (5) — Total long-term debt 1,596 1,210 Less: current portion 12 27 Total long-term debt, net of current portion $ 1,584 $ 1,183 The details of the applicable margins and commitment fees under the amended Senior Credit Facility are based on the Company's consolidated leverage ratio as follows: Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee Greater than or equal to 3.25 to 1.00 2.25 % 1.25 % 0.35 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.75 % 0.75 % 0.25 % Less than 1.25 to 1.00 1.50 % 0.50 % 0.20 % |
Summary of 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, 2020: Dollars in millions Payments Due 2021 $ 5 2022 $ 1 2023 $ 1 2024 $ — 2025 $ — Beyond 2025 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax | 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 2020 2019 2018 United States $ (208) $ 2 $ 44 Foreign: United Kingdom 76 105 203 Australia 37 15 7 Canada (2) 3 (2) Middle East 69 87 61 Africa 4 5 13 Other (1) 51 70 Subtotal 183 266 352 Total $ (25) $ 268 $ 396 |
Summary of Taxes on 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 2020 2019 2018 (Provision) benefit for income taxes $ (26) $ (59) $ (86) Shareholders' equity, foreign currency translation adjustment 1 1 (2) Shareholders' equity, pension and post-retirement benefits 26 11 (14) Shareholders' equity, changes in fair value of derivatives 3 2 3 Total income taxes $ 4 $ (45) $ (99) |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year ended December 31, 2020 Federal $ — $ 29 $ 29 Foreign (62) 11 (51) State and other (4) — (4) (Provision) benefit for income taxes $ (66) $ 40 $ (26) Year ended December 31, 2019 Federal $ (4) $ 15 $ 11 Foreign (67) 1 (66) State and other (2) (2) (4) (Provision) benefit for income taxes $ (73) $ 14 $ (59) Year ended December 31, 2018 Federal $ (1) $ (6) $ (7) Foreign (56) (20) (76) State and other (2) (1) (3) Provision for income taxes $ (59) $ (27) $ (86) |
Components of Foreign Income Tax Provision | The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2020 2019 2018 United Kingdom $ (14) $ (19) $ (32) Australia (6) (6) (8) Canada (1) (1) (6) Middle East (18) (20) (16) Africa — (1) (1) Other (12) (19) (13) Foreign provision for income taxes $ (51) $ (66) $ (76) |
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% as a result of the following: Years ended December 31, 2020 2019 2018 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 21 % Increase (reduction) in tax rate from: Tax impact from foreign operations 2 7 — Noncontrolling interests and equity earnings (3) — (1) State and local income taxes, net of federal benefit — 2 1 Other permanent differences, net 4 3 — Contingent liability accrual 2 1 3 U.S. taxes on foreign unremitted earnings (1) 3 — Change in valuation allowance — (10) (2) Research and development credits, net of provision — (5) — Non-deductible goodwill and restructuring charges (130) — — Effective tax rate on income from operations (105) % 22 % 22 % |
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 2020 2019 Deferred tax assets: Employee compensation and benefits $ 149 $ 103 Foreign tax credit carryforwards 243 257 Loss carryforwards 105 96 Insurance accruals 8 7 Allowance for bad debt 4 2 Accrued liabilities 66 63 Construction contract accounting 7 — Other 48 4 Total gross deferred tax assets 630 532 Valuation allowances (220) (200) Net deferred tax assets 410 332 Deferred tax liabilities: Construction contract accounting — (6) Intangible amortization (80) (56) Indefinite-lived intangible amortization (60) (49) Fixed asset depreciation 3 2 Accrued foreign tax credit carryforwards (2) (3) Total gross deferred tax liabilities (139) (112) Deferred income tax (liabilities) assets, net $ 271 $ 220 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2020 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 404 $ (177) $ 227 United Kingdom 14 — 14 Australia 22 — 22 Canada 22 (21) 1 Other 29 (22) 7 Total $ 491 $ (220) $ 271 |
Summary of Operating Loss Carryforwards | At December 31, 2020, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2020 Expiration Foreign tax credit carryforwards $ 243 2021-2029 Foreign net operating loss carryforwards $ 144 2021-2040 Foreign net operating loss carryforwards $ 37 Indefinite State net operating loss carryforwards $ 1,242 Various |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2020 2019 2018 Balance at January 1, $ 97 $ 90 $ 184 Increases related to current year tax positions 1 2 1 Increases related to prior year tax positions 6 7 18 Decreases related to prior year tax positions (7) — (45) Settlements — — (62) Lapse of statute of limitations (3) (1) (2) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions 2 (1) (4) Balance at December 31, $ 96 $ 97 $ 90 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Leasing Activity | The components of our operating lease costs for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, Dollars in millions 2020 2019 Operating lease cost $ 50 $ 54 Short-term lease cost 112 121 Total lease cost $ 162 $ 175 December 31, December 31, Dollars in millions 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 61 $ 56 Operating cash flows from financing leases $ 11 $ 6 Right-of-use assets obtained in exchange for new operating lease liabilities $ 62 $ 20 Right-of-use assets obtained in exchange for new finance lease liabilities $ 34 $ 13 Weighted-average remaining lease term-operating (in years) 6 years 8 years Weighted-average remaining lease term-finance (in years) 3 years 3 years Weighted-average discount rate-operating leases 6.8 % 7.6 % Weighted-average discount rate-finance leases 4.7 % 5.6 % |
Schedule of Lease Maturity | The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 31, 2020: Year Dollars in millions 2021 2022 2023 2024 2025 Thereafter Total Future payments - operating leases $ 56 $ 48 $ 42 $ 32 $ 27 $ 86 $ 291 Future payments - finance leases 12 8 3 2 — — 25 Total future payments - all leases $ 68 $ 56 $ 45 $ 34 $ 27 $ 86 $ 316 Dollars in millions Operating Leases Finance Leases Total Total future payments $ 291 $ 25 $ 316 Less imputed interest (61) (2) (63) Present value of future lease payments $ 230 $ 23 $ 253 Less current portion of lease obligations (44) (11) (55) Noncurrent portion of lease obligations $ 186 $ 12 $ 198 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2018 $ (304) $ (592) $ (14) $ (910) Other comprehensive income adjustments before reclassifications (3) (76) (11) (90) Amounts reclassified from AOCL (8) 14 7 13 Net other comprehensive income (loss) (11) (62) (4) (77) Balance at December 31, 2019 $ (315) $ (654) $ (18) $ (987) Other comprehensive income adjustments before reclassifications 36 (130) (21) (115) Amounts reclassified from AOCL (12) 20 11 19 Net other comprehensive income (loss) 24 (110) (10) (96) Balance at December 31, 2020 $ (291) $ (764) $ (28) $ (1,083) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCL, net of tax, by component Dollars in millions December 31, 2020 December 31, 2019 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 12 $ 8 Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 12 $ 8 Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (24) $ (17) See (a) below Tax benefit 4 3 Provision for income taxes Net pension and post-retirement benefits $ (20) $ (14) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ (13) $ (8) Other non-operating income Tax benefit 2 1 Provision for income taxes Net changes in fair value of derivatives $ (11) $ (7) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. |
Shares of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2018 177.4 Common stock issued 0.9 Balance at December 31, 2019 178.3 Common stock issued 0.8 Balance at December 31, 2020 179.1 |
Shares of Treasury Stock | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2018 36.5 $ 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 817 Treasury stock acquired, net of ESPP shares issued 1.8 47 Balance at December 31, 2020 38.3 $ 864 The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2020 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 1,823,434 $ 25.70 $ 47 Withheld to cover shares 168,671 25.65 4 Total 1,992,105 $ 25.70 $ 51 Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2018 36.5 $ 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 817 Treasury stock acquired, net of ESPP shares issued 1.8 47 Balance at December 31, 2020 38.3 $ 864 The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2020 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 1,823,434 $ 25.70 $ 47 Withheld to cover shares 168,671 25.65 4 Total 1,992,105 $ 25.70 $ 51 Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 |
Share-based Compensation and _2
Share-based Compensation and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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, 2020. KBR stock options activity summary Number Weighted Weighted Aggregate Outstanding at December 31, 2019 1,602,587 $ 26.74 3.33 $ 0.87 Granted — — Exercised (211,531) 19.37 Forfeited (172,548) — Expired — 26.71 Outstanding at December 31, 2020 1,218,508 $ 28.02 2.34 $ 0.58 Exercisable at December 31, 2020 1,218,508 $ 28.00 2.34 $ 0.58 |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2020 under the KBR Stock Plan. Restricted stock activity summary Number of Weighted Nonvested shares at December 31, 2019 1,230,045 $ 17.37 Granted 567,237 26.66 Vested (504,831) 17.41 Forfeited (104,972) 20.10 Nonvested shares at December 31, 2020 1,187,479 $ 21.54 |
Summary of Stock-Based Compensation | Share-based compensation summary table Years ended December 31, Dollars in millions 2020 2019 2018 Share-based compensation $ 12 $ 12 $ 10 Income tax benefit recognized in net income for share-based compensation $ 3 $ 3 $ 2 Incremental compensation cost $ 1 $ — $ 1 |
Income (loss) per Share (Tables
Income (loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2018 Basic weighted average common shares outstanding 142 141 140 Stock options, restricted shares, and convertible debt — 1 1 Diluted weighted average common shares outstanding 142 142 141 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and estimated fair values of financial instruments | The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our consolidated balance sheets are provided in the following table. December 31, 2020 December 31, 2019 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 285 $ 285 $ 176 $ 176 Term Loan B Level 2 516 517 756 764 Convertible Notes Level 2 350 480 350 466 Senior Notes Level 2 250 262 — — Senior Credit Facility Level 2 260 260 — — Nonrecourse project debt Level 2 7 7 18 18 |
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 (loss)" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2020 2019 Balance Sheet Hedges - Fair Value $ (5) $ 1 Balance Sheet Position - Remeasurement 9 3 Net $ 4 $ 4 |
Schedule of sale of receivables activity | Activity for third-party financial institutions consisted of the following: Year Ended Dollars in millions December 31, 2020 Sale of receivables $ 779 Settlement of receivables (647) Cash collection, not yet remitted (20) Outstanding balances sold to financial institutions $ 112 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2020 and 2019 is presented in the following table. In the following table, the sum of basic and diluted “Net income 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 2020 Total revenues $ 1,537 $ 1,385 $ 1,379 $ 1,466 $ 5,767 Gross profit 186 142 172 166 666 Equity in earnings of unconsolidated affiliates 1 16 13 — 30 Operating income (69) (12) 93 45 57 Net income (84) (39) 52 20 (51) Net income attributable to noncontrolling interests (20) — — (1) (21) Net income attributable to KBR (104) (39) 52 19 (72) Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ (0.73) $ (0.28) $ 0.36 $ 0.14 $ (0.51) Net income attributable to KBR per share—Diluted $ (0.73) $ (0.28) $ 0.36 $ 0.13 $ (0.51) (Dollars in millions, except per share amounts) First Second Third Fourth Year 2019 Total revenues $ 1,340 $ 1,422 $ 1,425 $ 1,452 $ 5,639 Gross profit 153 160 169 171 653 Equity in earnings of unconsolidated affiliates — 15 9 11 35 Operating income 78 92 104 88 362 Net income 42 50 58 59 209 Net income attributable to noncontrolling interests (2) (2) (2) (1) (7) Net income attributable to KBR 40 48 56 58 202 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.28 $ 0.34 $ 0.39 $ 0.41 $ 1.42 Net income attributable to KBR per share—Diluted $ 0.28 $ 0.34 $ 0.39 $ 0.40 $ 1.41 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill impairment | $ 0 | $ 62,000,000 | $ 99,000,000 | $ 0 | $ 0 | ||
Intangible assets | 683,000,000 | $ 683,000,000 | 495,000,000 | ||||
Period in years that unrecognized actuarial net gains (losses) are being recognized | 25 years | ||||||
Period of recognition (no greater than) | 5 years | ||||||
Noncurrent refundable income taxes | 96,000,000 | $ 96,000,000 | 92,000,000 | ||||
Retained earnings | 1,305,000,000 | 1,305,000,000 | 1,437,000,000 | ||||
Operating lease, liability | 230,000,000 | 230,000,000 | |||||
Deferred income taxes | 26,000,000 | 26,000,000 | 16,000,000 | ||||
ASC 842 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease, liability | $ 253,000,000 | ||||||
Deferred rent | 68,000,000 | ||||||
Deferred income taxes | (7,000,000) | ||||||
Adjustment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Retained earnings | $ (3,000,000) | ||||||
Tax | $ 1,000,000 | ||||||
Adjustment | ASC 842 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Retained earnings | $ (21,000,000) | ||||||
Other Assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Noncurrent refundable income taxes | $ 97,000,000 | $ 97,000,000 | $ 98,000,000 | ||||
Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite lived intangible assets useful lives | 1 year | ||||||
Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite lived intangible assets useful lives | 25 years |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Revenue and Receivables from Major Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 1,466 | $ 1,379 | $ 1,385 | $ 1,537 | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 5,767 | $ 5,639 | $ 4,913 |
Accounts receivable, net | 899 | 938 | 899 | 938 | |||||||
U.S. government | Revenue Benchmark | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 3,079 | $ 3,014 | $ 2,610 | ||||||||
Concentration risk, percentage | 53.00% | 53.00% | 53.00% | ||||||||
U.S. government | Accounts Receivable | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Accounts receivable, net | 501 | 484 | $ 501 | $ 484 | |||||||
Concentration risk, percentage | 56.00% | 52.00% | |||||||||
U.K. government | Revenue Benchmark | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 573 | $ 659 | $ 622 | ||||||||
Concentration risk, percentage | 10.00% | 12.00% | 13.00% | ||||||||
U.K. government | Accounts Receivable | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Accounts receivable, net | $ 47 | $ 44 | $ 47 | $ 44 | |||||||
Concentration risk, percentage | 5.00% | 5.00% |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 71 | $ 65 |
Value-added tax receivable | 22 | 37 |
Advances to subcontractors | 10 | 20 |
Other miscellaneous assets | 18 | 24 |
Total other current assets | $ 121 | $ 146 |
Significant Accounting Polici_7
Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Current maturities of long-term debt | $ 12 | $ 27 |
Reserve for estimated losses on uncompleted contracts | 16 | 10 |
Retainage payable | 22 | 41 |
Income taxes payable | 16 | 25 |
Restructuring reserve | 32 | 0 |
Value-added tax payable | 29 | 36 |
Dividend payable | 14 | 11 |
Other miscellaneous liabilities | 52 | 36 |
Total other current liabilities | $ 193 | $ 186 |
Significant Accounting Polici_8
Significant Accounting Policies (Impact of Previously Issued Financial statements for the Correction Standards) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity in and advances to unconsolidated affiliates | $ 881 | $ 846 | ||
Retained earnings | 1,305 | 1,437 | ||
Equity Method Investments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity in and advances to unconsolidated affiliates | $ 881 | $ 846 | $ 753 | $ 724 |
Retained earnings | 1,264 | $ 1,235 | ||
Equity Method Investments | ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity in and advances to unconsolidated affiliates | 29 | |||
Retained earnings | $ 29 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | Dec. 31, 2020segment |
Segment Reporting [Abstract] | |
Core business segments, number | 2 |
Non-core business segments, number | 1 |
Business Segment Information (S
Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 5,767,000,000 | $ 5,639,000,000 | $ 4,913,000,000 | ||||||||
Total gross profit | $ 166,000,000 | $ 172,000,000 | $ 142,000,000 | $ 186,000,000 | $ 171,000,000 | $ 169,000,000 | $ 160,000,000 | $ 153,000,000 | 666,000,000 | 653,000,000 | 584,000,000 |
Total equity in earnings of unconsolidated affiliates | 0 | 13,000,000 | 16,000,000 | 1,000,000 | 11,000,000 | 9,000,000 | 15,000,000 | 0 | 30,000,000 | 35,000,000 | 79,000,000 |
Total selling, general and administrative expenses | (335,000,000) | (341,000,000) | (294,000,000) | ||||||||
Acquisition and integration related costs | (9,000,000) | (2,000,000) | (7,000,000) | ||||||||
Goodwill impairment | 0 | (62,000,000) | (99,000,000) | 0 | 0 | ||||||
Restructuring charges and asset impairments | (214,000,000) | 0 | 0 | ||||||||
Gain on disposition of assets | 18,000,000 | 17,000,000 | (2,000,000) | ||||||||
Gain on consolidation of Aspire subcontracting entities | 0 | 0 | 108,000,000 | ||||||||
Operating income | $ 45,000,000 | $ 93,000,000 | (12,000,000) | $ (69,000,000) | $ 88,000,000 | $ 104,000,000 | $ 92,000,000 | $ 78,000,000 | 57,000,000 | 362,000,000 | 468,000,000 |
Interest expense | (83,000,000) | (99,000,000) | (66,000,000) | ||||||||
Other non-operating income (loss) | 1,000,000 | 5,000,000 | (6,000,000) | ||||||||
(Loss) income before income taxes and noncontrolling interests | (25,000,000) | 268,000,000 | 396,000,000 | ||||||||
Capital expenditures | 20,000,000 | 20,000,000 | 17,000,000 | ||||||||
Depreciation and amortization | 115,000,000 | 104,000,000 | 63,000,000 | ||||||||
Government Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,055,000,000 | 4,042,000,000 | 3,582,000,000 | ||||||||
Total gross profit | 493,000,000 | 444,000,000 | 363,000,000 | ||||||||
Total equity in earnings of unconsolidated affiliates | 28,000,000 | 29,000,000 | 35,000,000 | ||||||||
Total selling, general and administrative expenses | (163,000,000) | (135,000,000) | (114,000,000) | ||||||||
Goodwill impairment | 0 | ||||||||||
Restructuring charges and asset impairments | (4,000,000) | ||||||||||
Capital expenditures | 13,000,000 | 7,000,000 | 11,000,000 | ||||||||
Depreciation and amortization | 60,000,000 | 61,000,000 | 42,000,000 | ||||||||
Sustainable Technology Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,712,000,000 | 1,597,000,000 | 1,331,000,000 | ||||||||
Total gross profit | 173,000,000 | 209,000,000 | 221,000,000 | ||||||||
Total equity in earnings of unconsolidated affiliates | 2,000,000 | 6,000,000 | 44,000,000 | ||||||||
Total selling, general and administrative expenses | (83,000,000) | (90,000,000) | (86,000,000) | ||||||||
Goodwill impairment | $ (37,000,000) | ||||||||||
Restructuring charges and asset impairments | (86,000,000) | ||||||||||
Capital expenditures | 3,000,000 | 4,000,000 | 1,000,000 | ||||||||
Depreciation and amortization | 26,000,000 | 23,000,000 | 11,000,000 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Total selling, general and administrative expenses | (89,000,000) | (116,000,000) | (94,000,000) | ||||||||
Restructuring charges and asset impairments | (124,000,000) | ||||||||||
Capital expenditures | 4,000,000 | 9,000,000 | 5,000,000 | ||||||||
Depreciation and amortization | $ 29,000,000 | $ 20,000,000 | $ 10,000,000 |
Business Segment Information _2
Business Segment Information (Schedule of Balance Sheet Information by Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Consolidated VIEs, Total assets | $ 5,705 | $ 5,360 | ||
Goodwill | 1,761 | 1,265 | $ 1,265 | |
Equity in and advances to related companies | 881 | 846 | ||
Government Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated VIEs, Total assets | 3,379 | 2,711 | ||
Goodwill | 1,589 | 978 | $ 977 | |
Equity in and advances to related companies | 145 | 147 | ||
Sustainable Technology Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated VIEs, Total assets | 1,440 | 1,669 | ||
Goodwill | 172 | $ 19 | 287 | |
Equity in and advances to related companies | 736 | 699 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated VIEs, Total assets | $ 886 | $ 980 |
Business Segment Information _3
Business Segment Information (Schedule of Selected Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,466 | $ 1,379 | $ 1,385 | $ 1,537 | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 5,767 | $ 5,639 | $ 4,913 |
Property, plant & equipment, net | 130 | 130 | 130 | 130 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,031 | 2,705 | 2,260 | ||||||||
Property, plant & equipment, net | 57 | 50 | 57 | 50 | |||||||
Middle East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 857 | 1,027 | 884 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 961 | 1,058 | 989 | ||||||||
Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 324 | 288 | 329 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 46 | 39 | 21 | ||||||||
Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 152 | 197 | 133 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 203 | 214 | 190 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant & equipment, net | 40 | 44 | 40 | 44 | |||||||
Other countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 193 | 111 | $ 107 | ||||||||
Property, plant & equipment, net | $ 33 | $ 36 | $ 33 | $ 36 |
Revenue (Revenue by Product Lin
Revenue (Revenue by Product Line) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,767 | $ 5,639 | $ 4,913 |
Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,055 | 4,042 | 3,582 |
Government Solutions | Science And Space | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 967 | 863 | 641 |
Government Solutions | Defense & Intel | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 959 | 782 | 709 |
Government Solutions | Readiness And Sustainment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,153 | 1,400 | 1,256 |
Government Solutions | International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 976 | 997 | 976 |
Sustainable Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,712 | $ 1,597 | $ 1,331 |
Revenue (Revenue by Geographic
Revenue (Revenue by Geographic Destination) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,767 | $ 5,639 | $ 4,913 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,031 | 2,705 | 2,260 |
Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 857 | 1,027 | 884 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 961 | 1,058 | 989 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 324 | 288 | 329 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 46 | 39 | 21 |
Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 152 | 197 | 133 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 203 | 214 | 190 |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 193 | 111 | 107 |
Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,055 | 4,042 | 3,582 |
Government Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,280 | 2,110 | 1,767 |
Government Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 622 | 795 | 735 |
Government Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 743 | 796 | 766 |
Government Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 272 | 209 | 185 |
Government Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1 | 1 | 1 |
Government Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 81 | 76 | 77 |
Government Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Government Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 56 | 55 | 51 |
Sustainable Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,712 | 1,597 | 1,331 |
Sustainable Technology Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 751 | 595 | 493 |
Sustainable Technology Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 235 | 232 | 149 |
Sustainable Technology Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 218 | 262 | 223 |
Sustainable Technology Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 52 | 79 | 144 |
Sustainable Technology Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 45 | 38 | 20 |
Sustainable Technology Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 71 | 121 | 56 |
Sustainable Technology Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 203 | 214 | 190 |
Sustainable Technology Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 137 | $ 56 | $ 56 |
Revenue (Revenue by Contract Ty
Revenue (Revenue by Contract Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,767 | $ 5,639 | $ 4,913 |
U.S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 318 | 241 | 173 |
Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,535 | 1,609 | 1,444 |
Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,232 | 4,030 | 3,469 |
Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,055 | 4,042 | 3,582 |
Government Solutions | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,038 | 1,089 | 1,032 |
Government Solutions | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,017 | 2,953 | 2,550 |
Sustainable Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,712 | 1,597 | 1,331 |
Sustainable Technology Solutions | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 497 | 520 | 412 |
Sustainable Technology Solutions | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,215 | 1,077 | 919 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Other | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Other | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 0 | $ 0 | $ 0 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from performance obligations | $ 49 | $ 15 | $ 69 |
Contract assets | 178 | 215 | |
Contract liabilities | 356 | $ 484 | |
Contract liability, revenue recognized | $ 324 |
Revenue (Performance Obligation
Revenue (Performance Obligation) (Details) $ in Billions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 12 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 32.00% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 33.00% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
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 (year) |
Revenue (Accounts Receivable, C
Revenue (Accounts Receivable, Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | $ 899 | $ 938 |
Unbilled | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | 476 | 308 |
Trade & other | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | $ 423 | $ 630 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Centauri Platform Holdings) (Details) - USD ($) | Oct. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 9,000,000 | $ 2,000,000 | $ 7,000,000 | ||
Goodwill | 1,761,000,000 | $ 1,265,000,000 | $ 1,265,000,000 | ||
Notes Due 2028 | Senior Notes | |||||
Business Acquisition [Line Items] | |||||
Aggregate principal amount | $ 250,000,000 | ||||
Interest rate, stated percentage | 4.75% | ||||
Centauri L L C | |||||
Business Acquisition [Line Items] | |||||
Purchase price of acquisition | $ 830,000,000 | ||||
Acquisition related costs | 9,000,000 | ||||
Goodwill | $ 576,000,000 | ||||
Revenues | 125,000,000 | ||||
Gross profit | 19,000,000 | ||||
Centauri L L C | Notes Due 2028 | Senior Notes | |||||
Business Acquisition [Line Items] | |||||
Aggregate principal amount | $ 250,000,000 | ||||
Interest rate, stated percentage | 4.75% |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Fair Value Of The Assets Acquired And Liabilities) (Details) - USD ($) $ in Millions | Oct. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 1,761 | $ 1,265 | $ 1,265 | |
Centauri L L C | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration paid | $ 830 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash and equivalents | 7 | |||
Accounts receivable | 78 | |||
Contract assets | 19 | |||
Other current assets | 1 | |||
Total current assets | 105 | |||
Property, plant, and equipment, net | 18 | |||
Operating lease right-of-use assets | 36 | |||
Intangible assets, net | 226 | |||
Other assets | 1 | |||
Total assets | 386 | |||
Accounts payable | 29 | |||
Contract liabilities | 2 | |||
Accrued salaries, wages and benefits | 39 | |||
Operating lease liabilities | 6 | |||
Total current liabilities | 76 | |||
Deferred income taxes | 19 | |||
Operating lease liabilities | 30 | |||
Other liabilities | 7 | |||
Total liabilities | 132 | |||
Net assets acquired | 254 | |||
Goodwill | $ 576 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Schedule of Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Oct. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 15 years | 16 years | |
Centauri L L C | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 226 | ||
Weighted Average Amortization Period (in years) | 13 years | ||
Centauri L L C | Funded backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 28 | ||
Weighted Average Amortization Period (in years) | 1 year | ||
Centauri L L C | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 198 | ||
Weighted Average Amortization Period (in years) | 15 years |
Acquisitions and Dispositions_5
Acquisitions and Dispositions (Pro Forma Information) (Details) - SGT and Aspire Defence - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Revenue | $ 6,194 | $ 6,137 |
Net income attributable to KBR | $ (53) | $ 172 |
Diluted earnings per share (usd per share) | $ (0.37) | $ 1.20 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions (Scientific Management Associates) (Details) - USD ($) $ in Millions | Mar. 06, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,761 | $ 1,265 | $ 1,265 | |
SMA | ||||
Business Acquisition [Line Items] | ||||
Purchase price of acquisition | $ 13 | |||
Hold-backs to be settled and other adjustments | 4 | |||
Cash consideration paid | 9 | |||
Goodwill | $ 12 |
Acquisitions and Dispositions_7
Acquisitions and Dispositions (Stinger Ghaffarian Technologies Acquisition) (Details) - USD ($) $ in Millions | Apr. 25, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,761 | $ 1,265 | $ 1,265 | |
SGT | ||||
Business Acquisition [Line Items] | ||||
Voting interests acquired | 100.00% | |||
Aggregate base consideration | $ 355 | |||
Adjustments to consideration transferred | 10 | |||
Goodwill | $ 257 |
Acquisitions and Dispositions_8
Acquisitions and Dispositions (Aspire Defence Subcontracting Joint Ventures) (Details) - USD ($) $ in Millions | Apr. 18, 2018 | Jan. 15, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,761 | $ 1,265 | $ 1,265 | ||
Aspire | |||||
Business Acquisition [Line Items] | |||||
Gain on consolidation of entities | $ 108 | ||||
Goodwill | $ 42 | ||||
Fair value of total consideration transferred | $ 50 | ||||
Adjustment to noncontrolling interests | 119 | ||||
Net increase to PIC | $ 69 |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | $ 436 | $ 712 |
Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 282 | 301 |
Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 3 | 151 |
Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 151 | 260 |
International | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 382 | 504 |
International | Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 228 | 187 |
International | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 3 | 58 |
International | Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 151 | 259 |
Domestic | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 54 | 208 |
Domestic | Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 54 | 114 |
Domestic | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 0 | 93 |
Domestic | Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | $ 0 | $ 1 |
Unapproved Change Orders and _3
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Schedule of Unapproved Change Orders and Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unapproved Change Orders [Roll Forward] | ||
Amounts included in project estimates-at-completion at January 1, | $ 978 | $ 973 |
(Decrease) increase in project estimates | (1) | 21 |
Approved change orders | (6) | (7) |
Foreign currency effect | 77 | (9) |
Amounts included in project estimates-at-completion at December 31, | 1,048 | 978 |
Amounts recognized over time based on progress at December 31, | $ 1,048 | $ 974 |
Unapproved Change Orders and _4
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Commitments, estimated recovery | $ 1,800 | ||
Ichthys LNG Project | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Letters of credit outstanding, amount | 164 | ||
JKC Joint Venture | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Additional investments to joint venture | 484 | ||
JKC Joint Venture | Legal Action Against the Consortium for Combined Cycle Power Plant | Settled Litigation | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Funds received from litigation settlement | $ 52 | ||
Cost Reimbursable | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Changes in estimates at completion | $ 157 | $ 158 | |
Ichthys LNG Project | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Variable interest entity, ownership percentage | 30.00% | 30.00% | |
JKC Joint Venture | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Variable interest entity, ownership percentage | 30.00% |
Restructuring Charges and Ass_3
Restructuring Charges and Asset Impairments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments | $ 214 | $ 0 | $ 0 |
Restructuring charges | 116 | ||
Other restructuring costs | 19 | ||
Restructuring liability | 91 | 0 | |
Operating lease, impairment loss | 47 | ||
Latin America Joint Venture | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of equity method investments | 2 | ||
Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments | 86 | ||
Restructuring charges | 39 | ||
Impairment of equity method investments | 6 | ||
Middle East Petroleum Corporation (EBIC Ammonia project) | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating lease, impairment loss | $ 24 | ||
Ownership percentage (in percentage) | 15.00% | ||
Impairment of equity method investments | $ 13 | ||
Trade Names | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of indefinite lived intangible assets | 11 | ||
Leasehold Improvements And Furniture And Fixtures | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | 14 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 26 | ||
Restructuring liability | 24 | $ 0 | |
Other | Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6 | ||
Other Current Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 32 | ||
Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | $ 59 |
Restructuring Charges and Ass_4
Restructuring Charges and Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | $ 116 | ||
Asset Impairments | 98 | ||
Total Restructuring Charges & Asset Impairments | 214 | $ 0 | $ 0 |
Government Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 2 | ||
Asset Impairments | 2 | ||
Total Restructuring Charges & Asset Impairments | 4 | ||
Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 39 | ||
Asset Impairments | 47 | ||
Total Restructuring Charges & Asset Impairments | 86 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 75 | ||
Asset Impairments | 49 | ||
Total Restructuring Charges & Asset Impairments | 124 | ||
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 32 | ||
Severance | Government Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 2 | ||
Severance | Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 29 | ||
Severance | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 1 | ||
Lease Abandonment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 58 | ||
Lease Abandonment | Government Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 0 | ||
Lease Abandonment | Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 4 | ||
Lease Abandonment | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 54 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 26 | ||
Other | Government Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 0 | ||
Other | Sustainable Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | 6 | ||
Other | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring Charges | $ 20 |
Restructuring Charges and Ass_5
Restructuring Charges and Asset Impairments (Reconciliation of Restructuring Liability) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 1, 2020 | $ 0 |
Restructuring charges accrued during the period | 116 |
Lease restructuring charges related to operating lease liabilities | (4) |
Cash payments / settlements during the period | (21) |
Currency translation and other adjustments | 0 |
Balance at December 31, 2020 | 91 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 1, 2020 | 0 |
Restructuring charges accrued during the period | 32 |
Lease restructuring charges related to operating lease liabilities | 0 |
Cash payments / settlements during the period | (16) |
Currency translation and other adjustments | (1) |
Balance at December 31, 2020 | 15 |
Lease Abandonment | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 1, 2020 | 0 |
Restructuring charges accrued during the period | 58 |
Lease restructuring charges related to operating lease liabilities | (4) |
Cash payments / settlements during the period | (2) |
Currency translation and other adjustments | 0 |
Balance at December 31, 2020 | 52 |
Other | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 1, 2020 | 0 |
Restructuring charges accrued during the period | 26 |
Lease restructuring charges related to operating lease liabilities | 0 |
Cash payments / settlements during the period | (3) |
Currency translation and other adjustments | 1 |
Balance at December 31, 2020 | $ 24 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 549 | $ 516 | |
Less accumulated depreciation | (419) | (386) | |
Net property, plant and equipment | 130 | 130 | |
Depreciation | 36 | 33 | $ 31 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 5 | 5 | |
Buildings and property improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 129 | 124 | |
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 | $ 415 | $ 387 | |
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 ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||||
Balance, Beginning of period | $ 1,265,000,000 | $ 1,265,000,000 | $ 1,265,000,000 | ||
Foreign currency translation | 6,000,000 | 0 | |||
Goodwill acquired during the period | 589,000,000 | ||||
Goodwill reallocation | 0 | ||||
Impairment loss | $ 0 | (62,000,000) | (99,000,000) | 0 | $ 0 |
Balance, End of period | 1,761,000,000 | 1,761,000,000 | 1,265,000,000 | 1,265,000,000 | |
Government Solutions | |||||
Goodwill [Roll Forward] | |||||
Balance, Beginning of period | 978,000,000 | 978,000,000 | 977,000,000 | ||
Foreign currency translation | 3,000,000 | 1,000,000 | |||
Goodwill acquired during the period | 589,000,000 | ||||
Goodwill reallocation | 19,000,000 | ||||
Impairment loss | 0 | ||||
Balance, End of period | 1,589,000,000 | 1,589,000,000 | 978,000,000 | 977,000,000 | |
Sustainable Technology Solutions | |||||
Goodwill [Roll Forward] | |||||
Balance, Beginning of period | $ 287,000,000 | 287,000,000 | 288,000,000 | ||
Foreign currency translation | 3,000,000 | (1,000,000) | |||
Goodwill acquired during the period | 0 | ||||
Goodwill reallocation | (19,000,000) | ||||
Impairment loss | (99,000,000) | ||||
Balance, End of period | $ 172,000,000 | $ 172,000,000 | $ 287,000,000 | $ 288,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 62,000,000 | $ 99,000,000 | $ 0 | $ 0 | |
Goodwill | 1,761,000,000 | 1,761,000,000 | 1,265,000,000 | $ 1,265,000,000 | ||
Sustainable Technology Solutions | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 37,000,000 | |||||
Goodwill | $ 172,000,000 | $ 19,000,000 | $ 172,000,000 | $ 287,000,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Cost and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 911 | $ 679 |
Accumulated Amortization | (228) | (184) |
Intangible Assets, Net | $ 683 | $ 495 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 15 years | 16 years |
Intangible Assets, Gross | $ 470 | $ 271 |
Accumulated Amortization | (100) | (83) |
Intangible Assets, Net | $ 370 | $ 188 |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 19 years | 22 years |
Intangible Assets, Gross | $ 75 | $ 68 |
Accumulated Amortization | (37) | (36) |
Intangible Assets, Net | $ 38 | $ 32 |
Contract backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 18 years | 19 years |
Intangible Assets, Gross | $ 291 | $ 255 |
Accumulated Amortization | (76) | (52) |
Intangible Assets, Net | $ 215 | $ 203 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 13 years | 14 years |
Intangible Assets, Gross | $ 25 | $ 24 |
Accumulated Amortization | (15) | (13) |
Intangible Assets, Net | 10 | 11 |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 50 | 61 |
Intangible Assets, Net | $ 50 | $ 61 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 42 | $ 33 | $ 32 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Expected Amortization Expense of Intangibles) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 63 |
2022 | 37 |
2023 | 37 |
2024 | 37 |
2025 | 37 |
Beyond 2025 | $ 422 |
Equity Method Investments and_3
Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Beginning balance at January 1, | $ 846 | $ 846 | |||||||||
Equity in earnings of unconsolidated affiliates | $ 0 | $ 13 | $ 16 | 1 | $ 11 | $ 9 | $ 15 | $ 0 | 30 | $ 35 | $ 79 |
Distributions of earnings of unconsolidated affiliates | (38) | (69) | (75) | ||||||||
Investments | 26 | 146 | 344 | ||||||||
Balance at December 31, | 881 | 846 | 881 | 846 | |||||||
Amount allocated to fund ownership venture | 141 | ||||||||||
Sustainable Technology Solutions | |||||||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Beginning balance at January 1, | 699 | 699 | |||||||||
Equity in earnings of unconsolidated affiliates | 2 | 6 | 44 | ||||||||
Impairment of equity method investments | 6 | ||||||||||
Balance at December 31, | 736 | 699 | 736 | 699 | |||||||
Impairment of equity method investments | 6 | ||||||||||
Ebic Ammonia Project | |||||||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Impairment of equity method investments | 13 | ||||||||||
Impairment of equity method investments | 13 | ||||||||||
Equity Method Investments | |||||||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Beginning balance at January 1, | 846 | 724 | 846 | 724 | |||||||
Equity in earnings of unconsolidated affiliates | 30 | 35 | |||||||||
Distributions of earnings of unconsolidated affiliates | (38) | (69) | |||||||||
Advances to (payments from) unconsolidated affiliates, net | (15) | (10) | |||||||||
Investments | 26 | 146 | |||||||||
Impairment of equity method investments | 19 | 0 | |||||||||
Foreign currency translation adjustments | 50 | (7) | |||||||||
Other | 1 | 2 | |||||||||
Balance at December 31, | $ 881 | 846 | 881 | 846 | 724 | ||||||
Amount allocated to fund ownership venture | 24 | ||||||||||
Impairment of equity method investments | 19 | 0 | |||||||||
Adjustment | Equity Method Investments | Cumulative effect of change in accounting policy | ASC 606 | |||||||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Beginning balance at January 1, | 25 | 25 | |||||||||
Balance at December 31, | 25 | ||||||||||
Adjusted balance | Equity Method Investments | |||||||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||||||||
Beginning balance at January 1, | $ 846 | $ 749 | $ 846 | 749 | |||||||
Balance at December 31, | $ 846 | $ 846 | $ 749 |
Equity Method Investments and_4
Equity Method Investments and Variable Interest Entities (Narrative) (Details) | Sep. 30, 2015USD ($) | Feb. 29, 2016 | Apr. 30, 2006 | Mar. 31, 2018 | Dec. 31, 2020USD ($)transporterproject | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | $ 5,705,000,000 | $ 5,360,000,000 | |||||
Total Liabilities | $ 4,096,000,000 | 3,507,000,000 | |||||
Nonrecourse Project Finance Debt | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage (in percentage) | 50.00% | ||||||
Number of heavy equipment transporters | transporter | 91 | ||||||
Transactions with Related Parties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Revenue from related parties | $ 511,000,000 | 684,000,000 | $ 721,000,000 | ||||
JKC Joint Venture | |||||||
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 | ||||||
Affinity joint venture (U.K. MFTS project) | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | $ 11,000,000 | 14,000,000 | |||||
Total Liabilities | 9,000,000 | 10,000,000 | |||||
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 | ||||||
Aspire Defence Limited | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | 68,000,000 | 67,000,000 | |||||
Total Liabilities | 5,000,000 | 5,000,000 | |||||
JKC joint venture (Ichthys LNG project) | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | 606,000,000 | 546,000,000 | |||||
Total Liabilities | $ 44,000,000 | 29,000,000 | |||||
U.K. Road project joint ventures | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Variable interest entity, ownership percentage | 25.00% | ||||||
U.K. Road project joint ventures | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | $ 59,000,000 | 40,000,000 | |||||
Total Liabilities | $ 0 | 21,000,000 | |||||
Number of privately financed projects | project | 4 | ||||||
Middle East Petroleum Corporation (EBIC Ammonia project) | Variable Interest Entity, Not Primary Beneficiary | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consolidated VIEs, Total assets | $ 31,000,000 | 47,000,000 | |||||
Total Liabilities | $ 1,000,000 | $ 1,000,000 | |||||
Middle East Petroleum Corporation (EBIC Ammonia project) | Parent Company | |||||||
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% | ||||||
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 | $ 23,000,000 | ||||||
Property plant and equipment collateral for borrowed securities | $ 18,000,000 | ||||||
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 | 50.00% | 45.00% | |||||
Development Corporation | Middle East Petroleum Corporation (EBIC Ammonia project) | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Development company's ownership interest in a company that consolidates a VIE | 25.00% | ||||||
Industrial Services Business | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from divestiture of businesses | $ 48,000,000 |
Equity Method Investments and_5
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 1,634 | $ 2,011 |
Total assets | 5,705 | 5,360 |
Current liabilities | 1,455 | 1,501 |
Total liabilities | 4,096 | 3,507 |
Equity Method Investment | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 3,216 | 3,072 |
Noncurrent assets | 3,227 | 3,219 |
Total assets | 6,443 | 6,291 |
Current liabilities | 1,018 | 949 |
Noncurrent liabilities | 2,831 | 2,922 |
Total liabilities | $ 3,849 | $ 3,871 |
Equity Method Investments and_6
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenues | $ 1,466 | $ 1,379 | $ 1,385 | $ 1,537 | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 5,767 | $ 5,639 | $ 4,913 |
Net income | $ 20 | $ 52 | $ (39) | $ (84) | $ 59 | $ 58 | $ 50 | $ 42 | (51) | 209 | 310 |
Equity Method Investment | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenues | 2,032 | 2,592 | 3,190 | ||||||||
Operating income | 54 | 92 | 197 | ||||||||
Net income | $ 28 | $ 48 | $ 173 |
Equity Method Investments and_7
Equity Method Investments and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 5,705,000,000 | $ 5,360,000,000 |
Total Liabilities | 4,096,000,000 | 3,507,000,000 |
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 11,000,000 | 14,000,000 |
Total Liabilities | 9,000,000 | 10,000,000 |
Variable Interest Entity, Not Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 68,000,000 | 67,000,000 |
Total Liabilities | 5,000,000 | 5,000,000 |
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 606,000,000 | 546,000,000 |
Total Liabilities | 44,000,000 | 29,000,000 |
Variable Interest Entity, Not Primary Beneficiary | U.K. Road project joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 59,000,000 | 40,000,000 |
Total Liabilities | 0 | 21,000,000 |
Variable Interest Entity, Not Primary Beneficiary | Middle East Petroleum Corporation (EBIC Ammonia project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 31,000,000 | 47,000,000 |
Total Liabilities | 1,000,000 | 1,000,000 |
Variable Interest Entity, Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 448,000,000 | 530,000,000 |
Total Liabilities | 205,000,000 | 283,000,000 |
Variable Interest Entity, Primary Beneficiary | KJV-G joint venture (Gorgon LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 17,000,000 |
Variable Interest Entity, Primary Beneficiary | Fasttrax Limited (Fasttrax project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 45,000,000 | 45,000,000 |
Total Liabilities | $ 18,000,000 | $ 24,000,000 |
Equity Method Investments and_8
Equity Method Investments and Variable Interest Entities (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 899 | $ 938 |
Contract assets | 178 | 215 |
Contract liabilities | 356 | 484 |
Transactions with Related Parties | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for doubtful accounts | 83 | 74 |
Contract assets | 2 | 2 |
Contract liabilities | $ 53 | $ 33 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan expenses | $ 83 | $ 63 | $ 56 | |
Funded amount | 11 | 10 | ||
Employee deferred compensation plan | $ 64 | 65 | ||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 2 | |||
Accumulated benefit obligation | $ 80 | 76 | ||
United Kingdom | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Germany | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Int’l | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 2,300 | $ 2,000 | ||
Int’l | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contributions in next fiscal year | $ 48 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 1,787 | ||
Fair value of plan assets at end of period | 2,025 | $ 1,787 | |
United States | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 76 | 71 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 2 | 3 | 2 |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | 6 | 7 | |
Other | 0 | 0 | |
Benefits paid | (4) | (5) | |
Projected benefit obligations at end of period | 80 | 76 | 71 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 60 | 54 | |
Actual return on plan assets | 7 | 10 | |
Employer contributions | 2 | 2 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | (4) | (5) | |
Other | (1) | (1) | |
Fair value of plan assets at end of period | 64 | 60 | 54 |
Funded status | (16) | (16) | |
Int’l | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 1,988 | 1,751 | |
Service cost | 2 | 2 | 2 |
Interest cost | 39 | 50 | 50 |
Foreign currency exchange rate changes | 75 | 46 | |
Actuarial (gain) loss | 287 | 214 | |
Other | (1) | (1) | |
Benefits paid | (64) | (74) | |
Projected benefit obligations at end of period | 2,326 | 1,988 | 1,751 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,727 | 1,518 | |
Actual return on plan assets | 189 | 200 | |
Employer contributions | 44 | 43 | |
Foreign currency exchange rate changes | 66 | 41 | |
Benefits paid | (64) | (74) | |
Other | (1) | (1) | |
Fair value of plan assets at end of period | 1,961 | 1,727 | $ 1,518 |
Funded status | $ (365) | $ (261) |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Amounts Recognized on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ (16) | $ (16) |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ (365) | $ (261) |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 2 | 3 | 2 |
Expected return on plan assets | (3) | (3) | (3) |
Prior service cost amortization | 0 | 0 | 0 |
Recognized actuarial loss | 2 | 2 | 2 |
Net periodic benefit cost | 1 | 2 | 1 |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 39 | 50 | 50 |
Expected return on plan assets | (59) | (77) | (80) |
Prior service cost amortization | 1 | 1 | 0 |
Recognized actuarial loss | 22 | 16 | 26 |
Net periodic benefit cost | $ 5 | $ (8) | $ (2) |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $10 and $240, $9 and $215, respectively | $ 24 | $ 22 |
Total in accumulated other comprehensive loss | 24 | 22 |
Unrecognized actuarial loss, tax | 10 | 9 |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $10 and $240, $9 and $215, respectively | 740 | 632 |
Total in accumulated other comprehensive loss | 740 | 632 |
Unrecognized actuarial loss, tax | $ 240 | $ 215 |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Accumulated Other Comprehensive Income to be Amortized into Net Periodic Benefit Cost in Next Fiscal Year) (Details) $ in Millions | Dec. 31, 2020USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | $ 2 |
Total | 2 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | 25 |
Total | $ 25 |
Retirement Benefits (Schedule_5
Retirement Benefits (Schedule of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.89% | 3.98% | 3.33% |
Expected return on plan assets | 5.72% | 6.09% | 6.01% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 2.00% | 2.89% | |
Int’l | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.05% | 2.90% | 2.50% |
Expected return on plan assets | 3.70% | 5.09% | 5.20% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 1.40% | 2.05% |
Retirement Benefits (Schedule_6
Retirement Benefits (Schedule of Target Plan Allocation) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
United States | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 41.00% | |
United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 68.00% | |
United States | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 31.00% | |
United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 47.00% | |
United States | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
United States | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7.00% | |
United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 35.00% | |
Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 22.00% | |
Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20.00% | |
Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 42.00% | |
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 | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 41.00% | |
Scenario, Forecast | United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 62.00% | |
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 | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 31.00% | |
Scenario, Forecast | United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 47.00% | |
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 | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | United States | Real estate funds | Maximum | ||
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 | United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7.00% | |
Scenario, Forecast | United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
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) | 23.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 55.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 35.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 5.00% | |
Scenario, Forecast | Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7.00% | |
Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 4.00% | |
Scenario, Forecast | Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 13.00% | |
Scenario, Forecast | Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 34.00% |
Retirement Benefits (Schedule_7
Retirement Benefits (Schedule of Pension Plan Assets Measured at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,025 | $ 1,787 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 47 | |
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 | 151 | 149 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 60 | $ 54 |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62 | 59 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
United States | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
United States | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,961 | 1,727 | 1,518 |
Int’l | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 46 | |
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 | 151 | 149 | 126 |
Int’l | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,806 | 1,532 | |
Int’l | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 2 | |
Int’l | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 2 | |
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 | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 108 | 103 | |
Int’l | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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 | 108 | 103 | 84 |
Int’l | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
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 | 1 | 1 | 2 |
Int’l | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Int’l | Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | 1 |
Int’l | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 40 | 87 | |
Int’l | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 44 | |
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 | $ 40 | $ 43 | $ 39 |
Retirement Benefits (Schedule_8
Retirement Benefits (Schedule of Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | $ 1,787 | |
Fair value of plan assets at end of period | 2,025 | $ 1,787 |
Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 149 | |
Fair value of plan assets at end of period | 151 | 149 |
Int’l | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1,727 | 1,518 |
Foreign exchange impact | 66 | 41 |
Fair value of plan assets at end of period | 1,961 | 1,727 |
Int’l | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 103 | |
Fair value of plan assets at end of period | 108 | 103 |
Int’l | Fixed Income | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | |
Fair value of plan assets at end of period | 1 | 1 |
Int’l | Real Estate | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 2 | |
Fair value of plan assets at end of period | 2 | 2 |
Int’l | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 87 | |
Fair value of plan assets at end of period | 40 | 87 |
Int’l | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 149 | 126 |
Return on assets held at end of year | 2 | 8 |
Return on assets sold during the year | 2 | 1 |
Purchases, sales and settlements | (6) | 11 |
Foreign exchange impact | 4 | 3 |
Fair value of plan assets at end of period | 151 | 149 |
Int’l | Level 3 | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 103 | 84 |
Return on assets held at end of year | 1 | 10 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 0 | 7 |
Foreign exchange impact | 4 | 2 |
Fair value of plan assets at end of period | 108 | 103 |
Int’l | Level 3 | Fixed Income | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | 2 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 0 | (1) |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 1 | 1 |
Int’l | Level 3 | Real Estate | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 2 | 1 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 1 |
Purchases, sales and settlements | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 2 | 2 |
Int’l | Level 3 | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 43 | 39 |
Return on assets held at end of year | 1 | (2) |
Return on assets sold during the year | 2 | 0 |
Purchases, sales and settlements | (6) | 5 |
Foreign exchange impact | 0 | 1 |
Fair value of plan assets at end of period | $ 40 | $ 43 |
Retirement Benefits (Schedule_9
Retirement Benefits (Schedule of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 5 |
2022 | 5 |
2023 | 5 |
2024 | 5 |
2025 | 5 |
Years 2026 - 2030 | 24 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 60 |
2022 | 61 |
2023 | 62 |
2024 | 64 |
2025 | 65 |
Years 2026 - 2030 | $ 348 |
Debt and Other Credit Facilit_3
Debt and Other Credit Facilities (Schedule of Outstanding Debt) (Details) $ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Feb. 07, 2020USD ($) | Feb. 07, 2020AUD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,596 | $ 1,210 | ||
Less: current portion | 12 | 27 | ||
Total long-term debt, net of current portion | 1,584 | 1,183 | ||
Secured Debt | Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 285 | 176 | ||
Unamortized debt issuance costs | (4) | (4) | ||
Total long-term debt | $ 275 | |||
Secured Debt | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 516 | 756 | ||
Unamortized debt issuance costs | (16) | (15) | ||
Total long-term debt | $ 520 | |||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 350 | 350 | ||
Unamortized debt issuance costs | (40) | (53) | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 250 | 0 | ||
Unamortized debt issuance costs | (5) | 0 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 260 | $ 0 |
Debt and Other Credit Facilit_4
Debt and Other Credit Facilities (Narrative) (Details) $ / shares in Units, £ in Millions, $ in Millions | Nov. 15, 2018USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Jun. 30, 2022 | Jul. 02, 2020USD ($) | Jun. 30, 2020 | Feb. 07, 2020USD ($) | Feb. 07, 2020AUD ($) | Nov. 15, 2018GBP (£) |
Debt Instrument [Line Items] | ||||||||||
Revolving credit agreement | $ 1,596,000,000 | $ 1,210,000,000 | ||||||||
Long-term line of credit | $ 1,795,000,000 | |||||||||
Cash dividends declared per share (usd per share) | $ / shares | $ 0.40 | $ 0.32 | $ 0.32 | |||||||
Nonrecourse project debt | $ 2,000,000 | $ 7,000,000 | £ 62 | |||||||
Proceeds from sale of warrants | $ 22,000,000 | $ 0 | 0 | $ 22,000,000 | ||||||
Exercise price (usd per share) | $ / shares | $ 40.02 | |||||||||
Percentage of strike price above reported last sale price | 29.00% | |||||||||
Term Loan A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of aggregate principal | 0.625% | |||||||||
Term Loan A | Scenario, Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of aggregate principal | 1.25% | |||||||||
Term Loan A | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit agreement | $ 275 | |||||||||
Covenant, interest coverage ratio | 3 | |||||||||
Term Loan A | Secured Debt | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, leverage ratio through 2021 | 4.25 | |||||||||
Debt instrument, covenant, leverage ratio through 2022 | 4 | |||||||||
Debt instrument, covenant, leverage ratio through 2023 | 3.75 | |||||||||
Term Loan B | LIBOR Margin | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.75% | |||||||||
Term Loan B | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit agreement | $ 520,000,000 | |||||||||
Percentage of aggregate principal | 0.25% | |||||||||
Notes Due 2023 | Convertible Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||
Interest rate, stated percentage | 2.50% | |||||||||
Conversion price (usd per share) | $ / shares | $ 25.51 | |||||||||
Conversion rate | 0.0391961 | 0.0393360 | ||||||||
Cash dividends declared per share (usd per share) | $ / shares | $ 0.10 | |||||||||
Strike price (usd per share) | $ / shares | $ 25.42 | |||||||||
If-converted value in excess of principal | $ 76,000,000 | |||||||||
Net convertible carrying amount of equity component | 57,000,000 | 57,000,000 | ||||||||
Interest cost, contractual coupon | 9,000,000 | 9,000,000 | 1,000,000 | |||||||
Interest cost, amortization of discount | $ 13,000,000 | $ 12,000,000 | $ 1,000,000 | |||||||
Guaranteed secured bonds, percentage | 6.50% | 6.50% | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit, outstanding amount | $ 1,000,000,000 | 500,000,000 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit, outstanding amount | $ 500,000,000 |
Debt and Other Credit Facilit_5
Debt and Other Credit Facilities (Consolidated Leverage Ratio) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Greater than or equal to 3.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.35% |
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.30% |
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.25% |
Less than 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.20% |
Revolver and Term Loan A | LIBOR Margin | Greater than or equal to 3.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Revolver and Term Loan A | LIBOR Margin | Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Revolver and Term Loan A | LIBOR Margin | Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
Revolver and Term Loan A | LIBOR Margin | Less than 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Revolver and Term Loan A | Base Rate Margin | Greater than or equal to 3.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
Revolver and Term Loan A | Base Rate Margin | Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Revolver and Term Loan A | Base Rate Margin | Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.75% |
Revolver and Term Loan A | Base Rate Margin | Less than 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Debt And Other Credit Facilit_6
Debt And Other Credit Facilities (Senior Notes) (Details) - Notes Due 2028 - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 250 | |
Interest rate, stated percentage | 4.75% | |
Net proceeds from offering fee | $ 245 | |
Interest rate, stated redeem percentage | 35.00% | |
Prior to September 30, 2023 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% | |
On or after September 30, 2023 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 104.75% | |
Change of control | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.00% |
Debt And Other Credit Facilit_7
Debt And Other Credit Facilities (Letters of Credit, Surety Bonds and Guarantees) (Details) - USD ($) | Dec. 31, 2020 | Jul. 02, 2020 | Feb. 07, 2020 |
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 1,795,000,000 | ||
Letters of Credit, Surety Bonds and Bank Guarantees | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding relate to joint venture operations | 167,000,000 | ||
Performance Letter of Credit Fee | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | $ 500,000,000 | ||
Performance Letter of Credit Fee | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 839,000,000 | ||
Performance Letter of Credit Fee | Line of Credit | Committed Line of Credit | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 1,000,000,000 | ||
Performance Letter of Credit Fee | Line of Credit | Uncommitted Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 415,000,000 | ||
Letters of credit, outstanding amount | 213,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | $ 1,000,000,000 | $ 500,000,000 | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 260,000,000 | ||
Letters of credit, outstanding amount | $ 103,000,000 |
Debt And Other Credit Facilit_8
Debt And Other Credit Facilities (Nonrecourse Project Debt) (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2020GBP (£)transporter | |
Minimum | |
Debt Instrument [Line Items] | |
Subordinated notes payable, interest rate | 11.25% |
Maximum | |
Debt Instrument [Line Items] | |
Subordinated notes payable, interest rate | 16.00% |
Class A 3.5% Index Linked Bonds | |
Debt Instrument [Line Items] | |
Guaranteed secured bonds, percentage | 3.50% |
Class A 3.5% Index Linked Bonds | United Kingdom, Pounds | |
Debt Instrument [Line Items] | |
Secured bonds | £ 56 |
Class B 5.9% Fixed Rate Bonds | |
Debt Instrument [Line Items] | |
Guaranteed secured bonds, percentage | 5.90% |
Class B 5.9% Fixed Rate Bonds | United Kingdom, Pounds | |
Debt Instrument [Line Items] | |
Secured bonds | £ 20.7 |
Nonrecourse Project Finance Debt | |
Debt Instrument [Line Items] | |
Ownership percentage (in percentage) | 50.00% |
Number of heavy equipment transporters | transporter | 91 |
Number of heavy equipment transporters, term period, in years | 22 years |
Debt and Other Credit Facilit_9
Debt and Other Credit Facilities (Schedule of Debt Maturities) (Details) - Nonrecourse Project Finance Debt $ in Millions | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 5 |
2022 | 1 |
2023 | 1 |
2024 | 0 |
2025 | 0 |
Beyond 2025 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) before Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
United States | $ (208) | $ 2 | $ 44 |
Foreign | 183 | 266 | 352 |
Total | (25) | 268 | 396 |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 76 | 105 | 203 |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 37 | 15 | 7 |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | (2) | 3 | (2) |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 69 | 87 | 61 |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 4 | 5 | 13 |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | $ (1) | $ 51 | $ 70 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
(Provision) benefit for income taxes | $ (26) | $ (59) | $ (86) |
Shareholders' equity, foreign currency translation adjustment | 1 | 1 | (2) |
Shareholders' equity, pension and post-retirement benefits | 26 | 11 | (14) |
Shareholders' equity, changes in fair value of derivatives | 3 | 2 | 3 |
Total income taxes | $ 4 | $ (45) | $ (99) |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal | |||
Current | $ 0 | $ (4) | $ (1) |
Deferred | 29 | 15 | (6) |
Total | 29 | 11 | (7) |
Foreign | |||
Current | (62) | (67) | (56) |
Deferred | 11 | 1 | (20) |
Total | (51) | (66) | (76) |
State and other | |||
Current | (4) | (2) | (2) |
Deferred | 0 | (2) | (1) |
Total | (4) | (4) | (3) |
Current | (66) | (73) | (59) |
Deferred | 40 | 14 | (27) |
Total | $ (26) | $ (59) | $ (86) |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Foreign Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (51) | $ (66) | $ (76) |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (14) | (19) | (32) |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (6) | (6) | (8) |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (1) | (1) | (6) |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (18) | (20) | (16) |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | 0 | (1) | (1) |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (12) | $ (19) | $ (13) |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | 21.00% | 21.00% | 21.00% |
Increase (reduction) in tax rate from: | |||
Tax impact from foreign operations | 2.00% | 7.00% | 0.00% |
Noncontrolling interests and equity earnings | (3.00%) | 0.00% | (1.00%) |
State and local income taxes, net of federal benefit | 0.00% | 2.00% | 1.00% |
Other permanent differences, net | 4.00% | 3.00% | 0.00% |
Contingent liability accrual | 2.00% | 1.00% | 3.00% |
U.S. taxes on foreign unremitted earnings | (1.00%) | 3.00% | 0.00% |
Change in valuation allowance | 0.00% | (10.00%) | (2.00%) |
Research and development credits, net of provision | 0.00% | (5.00%) | 0.00% |
Non-deductible goodwill and restructuring charges | (130.00%) | 0.00% | 0.00% |
Effective tax rate on income from operations | (105.00%) | 22.00% | 22.00% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities and Related Valuation Allowances) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Employee compensation and benefits | $ 149 | $ 103 |
Foreign tax credit carryforwards | 243 | 257 |
Loss carryforwards | 105 | 96 |
Insurance accruals | 8 | 7 |
Allowance for bad debt | 4 | 2 |
Accrued liabilities | 66 | 63 |
Construction contract accounting | 7 | 0 |
Other | 48 | 4 |
Total gross deferred tax assets | 630 | 532 |
Valuation allowances | (220) | (200) |
Net deferred tax assets | 410 | 332 |
Deferred tax liabilities: | ||
Construction contract accounting | 0 | (6) |
Intangible amortization | (80) | (56) |
Indefinite-lived intangible amortization | (60) | (49) |
Fixed asset depreciation | 3 | 2 |
Accrued foreign tax credit carryforwards | (2) | (3) |
Total gross deferred tax liabilities | (139) | (112) |
Deferred Asset (Liability), net | $ 271 | $ 220 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowances | $ 220 | $ 200 | |
Increase (decrease) in valuation allowance | 20 | (7) | |
Income from foreign sources | 762 | ||
Income from domestic sources | 605 | ||
Undistributed earnings of foreign subsidiaries | 1,900 | ||
Unrecognized tax benefits | 82 | ||
Decrease in unrecognized tax benefits | 9 | ||
Income tax penalties and interest accrued | 29 | 23 | |
Income tax penalties and interest expense | 4 | 3 | $ (1) |
Due to former parent upon receipt from IRS | 5 | 5 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 68 | $ 90 | 96 |
Foreign Tax Credit Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ (17) |
Income Taxes Income Taxes (Summ
Income Taxes Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | $ 491 | |
Valuation Allowance | (220) | $ (200) |
Deferred Asset (Liability), net | 271 | $ 220 |
United States | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 404 | |
Valuation Allowance | (177) | |
Deferred Asset (Liability), net | 227 | |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 14 | |
Valuation Allowance | 0 | |
Deferred Asset (Liability), net | 14 | |
Australia | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 22 | |
Valuation Allowance | 0 | |
Deferred Asset (Liability), net | 22 | |
Canada | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 22 | |
Valuation Allowance | (21) | |
Deferred Asset (Liability), net | 1 | |
Other | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 29 | |
Valuation Allowance | (22) | |
Deferred Asset (Liability), net | $ 7 |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Foreign tax credit carryforwards | $ 243 |
Foreign net operating loss carryforwards | 144 |
Foreign net operating loss carryforwards | 37 |
State net operating loss carryforwards | $ 1,242 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 97 | $ 90 | $ 184 |
Increases related to current year tax positions | 1 | 2 | 1 |
Increases related to prior year tax positions | 6 | 7 | 18 |
Decreases related to prior year tax positions | (7) | 0 | (45) |
Settlements | 0 | 0 | (62) |
Lapse of statute of limitations | (3) | (1) | (2) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | 2 | (1) | (4) |
Unrecognized tax benefits, ending balance | $ 96 | $ 97 | $ 90 |
Claims and Accounts Receivable
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims and accounts receivable | $ 30 | $ 59 |
Government Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Government contract receivable | 1 | 28 |
Claims and uncertain amounts | $ 29 | $ 31 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) | 1 Months Ended | ||||
Jan. 31, 2014subcontractordefendant | Apr. 30, 2008USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2011USD ($) | |
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | $ 33,000,000 | $ 39,000,000 | |||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | Contract Liabilities | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | 27,000,000 | ||||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | Other Liabilities | |||||
United States Government Contract Work [Line Items] | |||||
Provision for doubtful accounts | $ 12,000,000 | ||||
First Kuwaiti Trading Company Arbitration | |||||
United States Government Contract Work [Line Items] | |||||
Damages awarded, value | $ 17,000,000 | ||||
Accounts payable | $ 32,000,000 | ||||
Howard qui tam | |||||
United States Government Contract Work [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 628,000,000 | ||||
Amount accrued | $ 0 | ||||
DOJFCA | |||||
United States Government Contract Work [Line Items] | |||||
Number of subcontractors | subcontractor | 2 | ||||
Loss contingency, number of defendants | defendant | 3 |
Other Commitments and Conting_2
Other Commitments and Contingencies (Details) $ in Millions, $ in Millions | Oct. 09, 2020USD ($) | May 28, 2020USD ($) | Mar. 31, 2019USD ($) | May 31, 2018USD ($)lawsuit | Dec. 31, 2020AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | |||||||
Self insurance reserve, noncurrent | $ 42 | $ 42 | |||||
Accounts Payable and Accrued Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Self insurance reserve, noncurrent | 14 | 14 | |||||
Other Current Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Self insurance reserve, noncurrent | 3 | 2 | |||||
Other Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Self insurance reserve, noncurrent | $ 25 | $ 26 | |||||
Chadian Employee Class Action | |||||||
Loss Contingencies [Line Items] | |||||||
Number of class action cases | lawsuit | 2 | ||||||
Damages awarded, value | $ 19 | $ 34 | $ 25 | ||||
Claims in unpaid bonuses | $ 122 | ||||||
Chadian Employee Class Action | Provisional Award | |||||||
Loss Contingencies [Line Items] | |||||||
Damages awarded, value | $ 2 | ||||||
North West Rail Link Project | |||||||
Loss Contingencies [Line Items] | |||||||
Claims in unpaid bonuses | $ 301 | $ 300 | |||||
North West Rail Link Project | Unincorporated Joint Venture | |||||||
Loss Contingencies [Line Items] | |||||||
Ownership percentage (in percentage) | 33.00% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)renewal_option | Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | ||
Percentage of lease obligations | 86.00% | |
Term of contract | 12 months | |
Renewal term increments | 1 year | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Operating lease ROU asset amortization | $ 37 | $ 38 |
Other noncash operating lease costs | 13 | 16 |
Short-term lease commitments | $ 107 | $ 77 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Number of renewal options | renewal_option | 1 |
Leases (Schedule of Leasing Act
Leases (Schedule of Leasing Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 50 | $ 54 |
Short-term lease cost | 112 | 121 |
Total lease cost | 162 | 175 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 61 | 56 |
Operating cash flows from financing leases | 11 | 6 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 62 | 20 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 34 | $ 13 |
Weighted-average remaining lease term-operating (in years) | 6 years | 8 years |
Weighted-average remaining lease term-finance (in years) | 3 years | 3 years |
Weighted-average discount rate-operating leases | 6.80% | 7.60% |
Weighted-average discount rate-finance leases | 4.70% | 5.60% |
Leases (Schedule of Lease Matur
Leases (Schedule of Lease Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Future payments - operating leases | ||
2021 | $ 56 | |
2022 | 48 | |
2023 | 42 | |
2024 | 32 | |
2025 | 27 | |
Thereafter | 86 | |
Total future payments | 291 | |
Future payments - finance leases | ||
2021 | 12 | |
2022 | 8 | |
2023 | 3 | |
2024 | 2 | |
2025 | 0 | |
Thereafter | 0 | |
Total future payments | 25 | |
2021 | 68 | |
2022 | 56 | |
2023 | 45 | |
2024 | 34 | |
2025 | 27 | |
Thereafter | 86 | |
Total future payments | 316 | |
Operating Leases | ||
Total future payments | 291 | |
Less imputed interest | (61) | |
Present value of future lease payments | 230 | |
Less current portion of lease obligations | (44) | $ (39) |
Noncurrent portion of lease obligations | 186 | $ 192 |
Finance Leases | ||
Total future payments | 25 | |
Less imputed interest | (2) | |
Present value of future lease payments | 23 | |
Less current portion of lease obligations | (11) | |
Noncurrent portion of lease obligations | 12 | |
Less imputed interest | (63) | |
Present value of future lease payments | 253 | |
Less current portion of lease obligations | (55) | |
Noncurrent portion of lease obligations | $ 198 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,853 | $ 1,718 | $ 1,197 |
Other comprehensive (loss) income, net of tax | (96) | (77) | 12 |
Ending Balance | 1,609 | 1,853 | 1,718 |
Accumulated foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (315) | (304) | |
Other comprehensive income adjustments before reclassifications | 36 | (3) | |
Amounts reclassified from AOCL | (12) | (8) | |
Other comprehensive (loss) income, net of tax | 24 | (11) | |
Ending Balance | (291) | (315) | (304) |
Accumulated pension liability adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (654) | (592) | |
Other comprehensive income adjustments before reclassifications | (130) | (76) | |
Amounts reclassified from AOCL | 20 | 14 | |
Other comprehensive (loss) income, net of tax | (110) | (62) | |
Ending Balance | (764) | (654) | (592) |
Changes in fair value of derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (18) | (14) | |
Other comprehensive income adjustments before reclassifications | (21) | (11) | |
Amounts reclassified from AOCL | 11 | 7 | |
Other comprehensive (loss) income, net of tax | (10) | (4) | |
Ending Balance | (28) | (18) | (14) |
AOCL | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (987) | (910) | (922) |
Other comprehensive income adjustments before reclassifications | (115) | (90) | |
Amounts reclassified from AOCL | 19 | 13 | |
Other comprehensive (loss) income, net of tax | (96) | (77) | 12 |
Ending Balance | $ (1,083) | $ (987) | $ (910) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification of foreign currency adjustments | $ 0 | $ 0 | $ 108 | ||||||||
Tax benefit | 26 | 59 | 86 | ||||||||
Foreign currency hedge and interest rate swap settlements | 1 | 5 | (6) | ||||||||
Net (loss) income | $ 20 | $ 52 | $ (39) | $ (84) | $ 59 | $ 58 | $ 50 | $ 42 | (51) | 209 | $ 310 |
Accumulated foreign currency adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | 12 | 8 | |||||||||
Accumulated pension liability adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | (20) | (14) | |||||||||
Changes in fair value for derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | (11) | (7) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated foreign currency adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification of foreign currency adjustments | 12 | 8 | |||||||||
Tax benefit | 0 | 0 | |||||||||
Net (loss) income | 12 | 8 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of actuarial loss | (24) | (17) | |||||||||
Tax benefit | 4 | 3 | |||||||||
Net pension and post-retirement benefits | (20) | (14) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value for derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit | 2 | 1 | |||||||||
Foreign currency hedge and interest rate swap settlements | (13) | (8) | |||||||||
Net (loss) income | $ (11) | $ (7) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Shares of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 178,330,201 | 177,400,000 |
Common stock issued (in shares) | 800,000 | 900,000 |
Ending balance (in shares) | 179,087,655 | 178,330,201 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss (Shares of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 36,511,053 | 36,500,000 | |
Beginning balance | $ 817 | $ 817 | |
Treasury stock acquired, net of ESPP shares issued (in shares) | 1,800,000 | 0 | |
Treasury stock acquired, net of ESPP shares issued | $ 47 | $ 0 | |
Ending balance (in shares) | 38,321,603 | 36,511,053 | 36,500,000 |
Ending balance | $ 864 | $ 817 | $ 817 |
Dividends declared to shareholders | $ 57 | $ 46 | $ 44 |
Accumulated Other Comprehensi_7
Accumulated Other Comprehensive Loss (Shareholders' Equity Activities) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | $ 1,853 | $ 1,718 | $ 1,853 | $ 1,718 | $ 1,197 | ||||||
Acquisition of noncontrolling interest | 69 | ||||||||||
Share-based compensation | 12 | 12 | 10 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | 4 | 5 | 2 | ||||||||
Dividends, Common Stock, Cash | (57) | (46) | (44) | ||||||||
Distributions to noncontrolling interests | (4) | (14) | (3) | ||||||||
Other noncontrolling interests activity | 2 | ||||||||||
Net (loss) income | $ 20 | $ 52 | $ (39) | (84) | $ 59 | $ 58 | $ 50 | 42 | (51) | 209 | 310 |
Other comprehensive (loss) income, net of tax | (96) | (77) | 12 | ||||||||
Ending Balance | 1,609 | 1,853 | $ 1,609 | $ 1,853 | $ 1,718 | ||||||
Dividends declared per share (usd per share) | $ 0.40 | $ 0.32 | $ 0.32 | ||||||||
PIC | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 2,206 | 2,190 | $ 2,206 | $ 2,190 | $ 2,091 | ||||||
Acquisition of noncontrolling interest | 69 | ||||||||||
Share-based compensation | 12 | 12 | 10 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | 4 | 5 | 2 | ||||||||
Ending Balance | 2,222 | 2,206 | 2,222 | 2,206 | 2,190 | ||||||
Retained Earnings | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 1,437 | 1,235 | 1,437 | 1,235 | 854 | ||||||
Dividends, Common Stock, Cash | (57) | (46) | (44) | ||||||||
Net (loss) income | (72) | 202 | 281 | ||||||||
Ending Balance | 1,305 | 1,437 | 1,305 | 1,437 | 1,235 | ||||||
Treasury Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | (817) | (817) | (817) | (817) | (818) | ||||||
Ending Balance | (864) | (817) | (864) | (817) | (817) | ||||||
AOCL | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | (987) | (910) | (987) | (910) | (922) | ||||||
Other comprehensive (loss) income, net of tax | (96) | (77) | 12 | ||||||||
Ending Balance | (1,083) | (987) | (1,083) | (987) | (910) | ||||||
NCI | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 14 | 20 | 14 | 20 | (8) | ||||||
Distributions to noncontrolling interests | (4) | (14) | (3) | ||||||||
Other noncontrolling interests activity | 2 | ||||||||||
Net (loss) income | 21 | 7 | 29 | ||||||||
Ending Balance | $ 29 | 14 | 29 | 14 | 20 | ||||||
Adjusted balance | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 1,850 | 1,764 | 1,850 | 1,764 | 1,341 | ||||||
Ending Balance | 1,850 | 1,850 | 1,764 | ||||||||
Adjusted balance | PIC | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 2,206 | 2,190 | 2,206 | 2,190 | 2,091 | ||||||
Ending Balance | 2,206 | 2,206 | 2,190 | ||||||||
Adjusted balance | Retained Earnings | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 1,434 | 1,281 | 1,434 | 1,281 | 998 | ||||||
Ending Balance | 1,434 | 1,434 | 1,281 | ||||||||
Adjusted balance | Treasury Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | (817) | (817) | (817) | (817) | (818) | ||||||
Ending Balance | (817) | (817) | (817) | ||||||||
Adjusted balance | AOCL | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | (987) | (910) | (987) | (910) | (922) | ||||||
Ending Balance | (987) | (987) | (910) | ||||||||
Adjusted balance | NCI | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 14 | 20 | 14 | 20 | (8) | ||||||
Ending Balance | 14 | 14 | 20 | ||||||||
Adjustment | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | (3) | (3) | 144 | ||||||||
Ending Balance | (3) | (3) | |||||||||
Adjustment | ASC 842 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 21 | 21 | |||||||||
Ending Balance | 21 | ||||||||||
Adjustment | ASC 606 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 25 | 25 | |||||||||
Ending Balance | 25 | ||||||||||
Adjustment | Retained Earnings | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | $ (3) | $ (3) | 144 | ||||||||
Ending Balance | $ (3) | (3) | |||||||||
Adjustment | Retained Earnings | ASC 842 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | 21 | 21 | |||||||||
Ending Balance | 21 | ||||||||||
Adjustment | Retained Earnings | ASC 606 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning Balance | $ 25 | $ 25 | |||||||||
Ending Balance | $ 25 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 19, 2020 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 350,000,000 | $ 350,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 | ||||
Stock repurchase program, increase in authorized amount | $ 190,000,000 | ||||
Percentage of employee's earnings withheld | 10.00% | ||||
Number of Shares | 1,992,105 | 194,124 | |||
Number of Shares | 168,671 | 194,124 | |||
Average Price per Share (usd per share) | $ 25.70 | $ 20.59 | |||
Average Price per Share (usd per share) | $ 25.65 | $ 20.59 | |||
Tax benefit decrease related to share-based plans | $ 4,000,000 | $ 4,000,000 | $ (1,000,000) | ||
Repurchases of common stock | 51,000,000 | $ 4,000,000 | $ 3,000,000 | ||
Share Repurchase Program 2014 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 303,000,000 | ||||
Number of Shares | 1,823,434 | 0 | |||
Average Price per Share (usd per share) | $ 25.70 | $ 0 | |||
Repurchases of common stock | $ 47,000,000 | $ 0 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 3,000,000 | $ 3,000,000 | $ 2,000,000 | |||||
Share-based compensation expense | 12,000,000 | $ 12,000,000 | $ 10,000,000 | |||||
Cost of Sales | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | 3,000,000 | |||||||
Selling, General and Administrative Expenses | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 9,000,000 | |||||||
Stock Compensation Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 4,400,000 | 2,000,000 | ||||||
Common stock reserved for issuance (in shares) | 16,400,000 | 5,200,000 | 5,200,000 | |||||
Stock Compensation Plan | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 4,400,000 | |||||||
Common stock reserved for issuance (in shares) | 9,900,000 | 2,100,000 | 2,100,000 | |||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options granted | 0 | 0 | 0 | |||||
Total intrinsic values of options exercised | $ 100,000 | $ 300,000 | $ 100,000 | |||||
Unrecognized compensation cost, net of estimated forfeitures | 0 | $ 0 | ||||||
Stock option compensation expense | 0 | 0 | 0 | |||||
Income tax benefit recognized in net income for share-based compensation | $ 0 | $ 0 | 0 | |||||
Maximum withhold percentage | 10.00% | 10.00% | ||||||
Percentage of discount on stock price | 5.00% | |||||||
ESPP stock issued (in shares) | 182,000 | 166,000 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost, net of estimated forfeitures | $ 15,000,000 | $ 15,000,000 | ||||||
Income tax benefit recognized in net income for share-based compensation | $ 3,000,000 | $ 3,000,000 | $ 2,000,000 | |||||
Weighted average grant-date fair value per share (usd per share) | $ 26.66 | $ 19.01 | $ 15.93 | |||||
Restricted stock compensation expense | $ 12,000,000 | $ 12,000,000 | $ 10,000,000 | |||||
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 11 months 26 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 | $ 13,000,000 | 14,000,000 | 10,000,000 | |||||
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 | $ 9,000,000 | $ 11,000,000 | $ 10,000,000 | |||||
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 (in shares) | 19,000,000 | 19,000,000 | 18,000,000 | |||||
Award vesting period | 3 years | |||||||
Number of cash performance based award units forfeited (in shares) | 7,000,000 | 3,000,000 | 3,000,000 | |||||
Outstanding awards balance (in shares) | 46,000,000 | 46,000,000 | ||||||
Expense for cash performance awards | $ 17,000,000 | $ 34,000,000 | $ 15,000,000 | |||||
Liability for awards due within one year | 21,000,000 | 27,000,000 | $ 21,000,000 | |||||
Liability for awards | $ 17,000,000 | $ 23,000,000 | $ 17,000,000 | |||||
Cash Performance Awards | Scenario, Forecast | ||||||||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning Outstanding Number of Shares (in shares) | 1,602,587 | ||
Granted, Number of Shares (in shares) | 0 | 0 | 0 |
Exercised, Number of Shares (in shares) | (211,531) | ||
Forfeited, Number of Shares (in shares) | (172,548) | ||
Expired, Number of Shares (in shares) | 0 | ||
Ending Outstanding Number of Shares (in shares) | 1,218,508 | 1,602,587 | |
Exercisable, Number of Shares (in shares) | 1,218,508 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning Outstanding, Weighted Average Exercise Price per Share (usd per share) | $ 26.74 | ||
Granted, Weighted Average Exercise Price per Share (usd per share) | 0 | ||
Exercised, Weighted Average Exercise Price per Share (usd per share) | 19.37 | ||
Forfeited, Weighted Average Exercise Price per Share (usd per share) | 0 | ||
Expired, Weighted Average Exercise Price per Share (usd per share) | 26.71 | ||
Ending Outstanding Weighted Average Exercise Price per Share (usd per share) | 28.02 | $ 26.74 | |
Exercisable, Weighted Average Exercise Price per Share (usd per share) | $ 28 | ||
Weighted Average Remaining Contractual Term (years) | 2 years 4 months 2 days | 3 years 3 months 29 days | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 2 years 4 months 2 days | ||
Aggregate Intrinsic Value, beginning balance | $ 870 | ||
Aggregate Intrinsic Value, ending balance | 580 | $ 870 | |
Exercisable, Aggregate Intrinsic Value | $ 580 |
Share-based Compensation and _5
Share-based Compensation and Incentive Plans (Summary of Vested and Unvested RSUs) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2020$ / 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, 2019 (in shares) | shares | 1,230,045 |
Granted, Number of Shares (in shares) | shares | 567,237 |
Vested, Number of Shares (in shares) | shares | (504,831) |
Forfeited, Number of Shares (in shares) | shares | (104,972) |
Nonvested shares at December 31, 2020 (in shares) | shares | 1,187,479 |
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, 2019 Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 17.37 |
Granted, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 26.66 |
Vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 17.41 |
Forfeited, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 20.10 |
Nonvested shares at December 31, 2020 Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 21.54 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 12 | $ 12 | $ 10 |
Income tax benefit recognized in net income for share-based compensation | 3 | 3 | 2 |
Incremental compensation cost | $ 1 | $ 0 | $ 1 |
Income (loss) per Share (Schedu
Income (loss) per Share (Schedule of Basic and Diluted Weighted Average Common Shares Outstanding) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding (in shares) | 142 | 141 | 140 |
Stock options, restricted shares, and convertible debt (in shares) | 0 | 1 | 1 |
Diluted weighted average common shares outstanding (in shares) | 142 | 142 | 141 |
Income (loss) per Share (Narrat
Income (loss) per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Undistributed earnings (loss) allocated to participating securities, diluted | $ 0 | $ 1,500,000 | $ 1,800,000 |
Undistributed earnings (loss) allocated to participating securities, diluted (usd per share) | $ 0.01 | $ 0.01 | |
Antidilutive weighted average shares (in shares) | 1.1 | 1.3 | 1.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Risk Management (Carrying Value and Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | Secured Debt | Term Loan A | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 285 | $ 176 |
Carrying Value | Secured Debt | Term Loan B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 516 | 756 |
Carrying Value | Convertible Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 350 | 350 |
Carrying Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 250 | 0 |
Carrying Value | Line of Credit | Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 260 | 0 |
Carrying Value | Nonrecourse project debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 7 | 18 |
Fair Value | Secured Debt | Term Loan A | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 285 | 176 |
Fair Value | Secured Debt | Term Loan B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 517 | 764 |
Fair Value | Convertible Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 480 | 466 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 262 | 0 |
Fair Value | Line of Credit | Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 260 | 0 |
Fair Value | Nonrecourse project debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 7 | $ 18 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Risk Management (Foreign Currency Risk) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Maximum length of time hedged in balance sheet hedge | 15 days |
Maximum length of time hedged in cash flow hedge | 7 months |
Balance Sheet Hedge | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Derivative, notional amount | $ 85,000,000 |
Cash Flow Hedging | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Cash flow hedge | $ 4,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Risk Management (Summary of Changes in Fair Value of Balance Sheet Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Balance Sheet Hedges - Fair Value | $ (5) | $ 1 |
Balance Sheet Position - Remeasurement | 9 | 3 |
Net | $ 4 | $ 4 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Details) - Interest Rate Swap - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Oct. 31, 2018 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||||
Derivative, notional amount | $ 400,000,000 | $ 500,000,000 | ||
Fair value of interest rate swaps | $ 33,000,000 | $ 21,000,000 | ||
Unrealized net losses on interest rate swaps | 33,000,000 | 21,000,000 | ||
Other Current Liabilities | ||||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||||
Fair value of interest rate swaps | 15,000,000 | 8,000,000 | ||
Other Liabilities | ||||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||||
Fair value of interest rate swaps | $ 18,000,000 | $ 13,000,000 | ||
LIBOR | ||||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||||
Fixed interest rate | 0.965% | 3.055% |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Risk Management (Credit Losses) (Details) - Sustainable Technology Solutions $ in Millions | Dec. 31, 2020USD ($) |
Contract with Customer, Asset, Past Due [Line Items] | |
Accounts receivable and contract assets, net of allowances | $ 409 |
Allowance for accounts receivable and contract assets | $ 13 |
Accounts receivable, percent outstanding less than 90 days | 82.00% |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments and Risk Management (Sale of Receivables) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Sale of receivables | $ 779 |
Receivable purchase agreement initial term | 1 year |
Proceeds from sale and collection of receivables | $ 723 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments and Risk Management (Sale of Receivables - Third-party Financial Institutions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Sale of receivables | $ 779 |
Settlement of receivables | (647) |
Cash collection, not yet remitted | (20) |
Outstanding balances sold to financial institutions | $ 112 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 1,466 | $ 1,379 | $ 1,385 | $ 1,537 | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 5,767 | $ 5,639 | $ 4,913 |
Gross profit | 166 | 172 | 142 | 186 | 171 | 169 | 160 | 153 | 666 | 653 | 584 |
Equity in earnings of unconsolidated affiliates | 0 | 13 | 16 | 1 | 11 | 9 | 15 | 0 | 30 | 35 | 79 |
Operating income | 45 | 93 | (12) | (69) | 88 | 104 | 92 | 78 | 57 | 362 | 468 |
Net income | 20 | 52 | (39) | (84) | 59 | 58 | 50 | 42 | (51) | 209 | 310 |
Net income attributable to noncontrolling interests | (1) | 0 | 0 | (20) | (1) | (2) | (2) | (2) | (21) | (7) | (29) |
Net (loss) income attributable to KBR | $ 19 | $ 52 | $ (39) | $ (104) | $ 58 | $ 56 | $ 48 | $ 40 | $ (72) | $ 202 | $ 281 |
Net income attributable to KBR per share: | |||||||||||
Net income attributable to KBR per share—Basic (usd per share) | $ 0.14 | $ 0.36 | $ (0.28) | $ (0.73) | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.28 | $ (0.51) | $ 1.42 | $ 1.99 |
Net income attributable to KBR per share—Diluted (usd per share) | $ 0.13 | $ 0.36 | $ (0.28) | $ (0.73) | $ 0.40 | $ 0.39 | $ 0.34 | $ 0.28 | $ (0.51) | $ 1.41 | $ 1.99 |
Uncategorized Items - _IXDS
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |