KBR (KBR) 10-Q 1 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 19, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-33146
Entity Registrant Name	KBR, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4536774
Entity Address, Address Line One	601 Jefferson Street, 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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		135,722,134
Amendment Flag	false
Entity Central Index Key	0001357615
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 1,703	$ 1,714
Cost of revenues	(1,458)	(1,518)
Gross profit	245	196
Equity in earnings (losses) of unconsolidated affiliates	23	(118)
Selling, general and administrative expenses	(124)	(107)
Other	0	(2)
Operating income (loss)	144	(31)
Interest expense	(26)	(20)
Other non-operating expense	(2)	0
Income (loss) before income taxes	116	(51)
Provision for income taxes	(30)	(19)
Net income (loss)	86	(70)
Less: Net income attributable to noncontrolling interests	0	1
Net income (loss) attributable to KBR	$ 86	$ (71)
Net income (loss) attributable to KBR per share
Basic (in usd per share)	$ 0.62	$ (0.51)
Diluted (in usd per share)	$ 0.56	$ (0.51)
Basic weighted average common shares outstanding (in shares)	137	140
Diluted weighted average common shares outstanding (in shares)	154	140
Cash dividends declared per share (in usd per share)	$ 0.135	$ 0.120

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 86	$ (70)
Other comprehensive income (loss):
Foreign currency translation adjustments	15	(19)
Pension and post-retirement benefits	0	6
Changes in fair value of derivatives	(10)	24
Other comprehensive income (loss)	5	11
Income tax expense:
Pension and post-retirement benefits	0	(1)
Changes in fair value of derivatives	2	(5)
Income tax expense	2	(6)
Other comprehensive income, net of tax	7	5
Comprehensive income (loss)	93	(65)
Less: Comprehensive income attributable to noncontrolling interests	0	1
Comprehensive income (loss) attributable to KBR	$ 93	$ (66)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 416	$ 389
Accounts receivable, net of allowance for credit losses of $9 and $9, respectively	1,076	942
Contract assets	258	252
Other current assets	162	164
Total current assets	1,912	1,747
Pension Assets	62	46
Property, plant, and equipment, net of accumulated depreciation of $418 and $417 (including net PPE of $27 and $22 owned by a variable interest entity), respectively	206	182
Operating lease right-of-use assets	149	164
Goodwill	2,095	2,087
Intangible assets, net of accumulated amortization of $346 and $332, respectively	642	645
Equity in and advances to unconsolidated affiliates	172	188
Deferred income taxes	205	213
Other assets	293	294
Total assets	5,736	5,566
Current liabilities:
Accounts payable	755	637
Contract liabilities	282	275
Accrued salaries, wages and benefits	285	325
Current maturities of long-term debt	367	364
Operating lease liabilities	47	48
Other current liabilities	192	172
Total current liabilities	1,928	1,821
Employee compensation and benefits	94	105
Income tax payable	118	117
Deferred income taxes	94	92
Long-term debt	1,374	1,376
Operating lease liabilities	185	193
Other liabilities	286	230
Total liabilities	4,079	3,934
Commitments and Contingencies (Notes 6, 11 and 12)
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, 181,420,685 and 180,807,960 shares issued, and 136,039,210 and 136,505,145 shares outstanding, respectively	0	0
PIC	2,244	2,235
Retained earnings	1,478	1,410
Treasury stock, 45,381,475 shares and 44,302,815 shares, at cost, respectively	(1,203)	(1,143)
AOCL	(875)	(882)
Total KBR shareholders’ equity	1,644	1,620
Noncontrolling interests	13	12
Total shareholders’ equity	1,657	1,632
Total liabilities and shareholders’ equity	$ 5,736	$ 5,566

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9	$ 9
Accumulated depreciation, PP&E	418	417
PP&E owned by a VIE, net	27	22
Accumulated amortization, intangibles	$ 346	$ 332
Preferred stock, par value (in 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 (in 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)	181,420,685	180,807,960
Common stock, shares outstanding (in shares)	136,039,210	136,505,145
Treasury stock, shares (in shares)	45,381,475	44,302,815

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	PIC	Retained Earnings	Treasury Stock	AOCL	NCI
Beginning balance at Dec. 31, 2021	$ 1,683	$ 2,206	$ 1,287	$ (943)	$ (881)	$ 14
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	5	5
Common stock issued upon exercise of stock options	4	4
Dividends declared to shareholders	(17)		(17)
Repurchases of common stock	(33)			(33)
Issuance of ESPP shares	1	1
Other	0		1			(1)
Net income	(70)		(71)			1
Other comprehensive income (loss), net of tax	5				5
Ending balance at Mar. 31, 2022	1,578	2,216	1,200	(976)	(876)	14
Beginning balance at Dec. 31, 2022	1,632	2,235	1,410	(1,143)	(882)	12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	6	6
Common stock issued upon exercise of stock options	2	2
Dividends declared to shareholders	(18)		(18)
Repurchases of common stock	(61)			(61)
Issuance of ESPP shares	2	1		1
Distributions to noncontrolling interests	(1)					(1)
Other	2					2
Net income	86		86
Other comprehensive income (loss), net of tax	7				7
Ending balance at Mar. 31, 2023	$ 1,657	$ 2,244	$ 1,478	$ (1,203)	$ (875)	$ 13

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in usd per share)	$ 0.135	$ 0.120

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ 86	$ (70)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	36	33
Equity in (earnings) losses of unconsolidated affiliates	(23)	118
Deferred income tax	14	16
Other	10	12
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for credit losses	(130)	370
Contract assets	(7)	14
Accounts payable	110	(400)
Contract liabilities	6	24
Accrued salaries, wages and benefits	(36)	(43)
Payments on operating lease obligation	(17)	(14)
Payments from unconsolidated affiliates, net	6	7
Distributions of earnings from unconsolidated affiliates	24	30
Pension funding	(4)	(11)
Other assets and liabilities	(40)	3
Total cash flows provided by operating activities	35	89
Cash flows from investing activities:
Purchases of property, plant and equipment	(19)	(6)
Proceeds from sale of assets or investments	0	18
Return of (investments in) equity method joint ventures, net	61
Return of (investments in) equity method joint ventures, net		(1)
Other	0	1
Total cash flows provided by investing activities	42	12
Cash flows from financing activities:
Payments on short-term and long-term debt	(4)	(4)
Payments of dividends to shareholders	(16)	(15)
Net proceeds from issuance of common stock	2	4
Payments to reacquire common stock	(61)	(33)
Other	25	(4)
Total cash flows used in financing activities	(54)	(52)
Effect of exchange rate changes on cash	4	(7)
Increase in cash and cash equivalents	27	42
Cash and cash equivalents at beginning of period	389	370	$ 370
Cash and cash equivalents at end of period	416	412	$ 389
Noncash investing and financing activities
Leasehold improvements paid by landlord	7	0
Accrued but unpaid purchases of property, plant and equipment	11	0
Dividends declared	$ 18	$ 17

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2022 Annual Report on Form 10-K. The condensed consolidated financial statements include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2023, the results of our operations for the three months ended March 31, 2023 and 2022 and our cash flows for the three months ended March 31, 2023 and 2022. Certain amounts in prior periods have been reclassified to conform with current period presentation. There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather. We generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Our significant accounting policies are detailed in "Note 1. Significant Accounting Policies" of our 2022 Annual Report on Form 10-K. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. Principles of Consolidation The accompanying condensed 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 (collectively, the "Company," "KBR", "we", "us" or "our"). We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 7 "Equity Method Investments and Variable Interest Entities" to our condensed consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Basis of Presentation On December 13, 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. In a 52 week fiscal year, each of the Company’s quarterly periods will comprise 13 weeks. The additional week in a 53 week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. The Company’s first 53 week fiscal year will occur in fiscal year 2024. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. The change will impact the prior year comparability of each of the fiscal quarters and the annual period for the year ending December 31, 2023, however, the impact will not be material. The Company believes this change will improve comparability between periods by eliminating the year-over-year variability in calendar month productive days and provide a more consistent reporting cadence for operational leaders to aid in strategic decision making. As a result of our change in a fiscal year end, goodwill will be tested annually for possible impairment as of the first day of our fourth quarter each fiscal year, and on an interim basis when indicators of possible impairment exist. Impact of Adoption of New Accounting Standards Effective January 1, 2023, we adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of this standard did not have an impact on our condensed consolidated financial statements. However, the ultimate impact is dependent upon the size and frequency of future acquisitions.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, government programs and joint ventures represent a substantial part of our operations. 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, intelligence, space, aviation and other programs and missions for military and other government agencies primarily in the U.S., U.K. and Australia. KBR's services cover the full spectrum spanning research and development, advanced prototyping, acquisition support, systems engineering, C5ISR, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, operations readiness and support and professional advisory services across the defense, renewable energy and critical infrastructure sectors. Sustainable Technology Solutions. Our Sustainable Technology Solutions business segment is anchored by our portfolio of over 70 innovative, proprietary, sustainability-focused process technologies that accelerate and enable energy transition across the industrial base in four primary verticals: ammonia/syngas, chemical/petrochemicals, clean refining and circular process/circular economy solutions. STS also provides highly synergistic services including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions, high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization, as well as our digitally-enabled operating and monitoring solutions. Through early planning and scope definition, advanced technologies and facility life-cycle optimization, 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 Three Months Ended March 31, 2023 2022 Dollars in millions Revenues: Government Solutions $ 1,328 $ 1,459 Sustainable Technology Solutions 375 255 Total revenues $ 1,703 $ 1,714 Operating income (loss): Government Solutions $ 102 $ 116 Sustainable Technology Solutions 82 (106) Other (40) (41) Total operating income (loss) $ 144 $ (31)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
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. Revenue by business unit and reportable segment was as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Government Solutions Science & Space $ 279 $ 253 Defense & Intel 363 378 Readiness & Sustainment 405 533 International 281 295 Total Government Solutions 1,328 1,459 Sustainable Technology Solutions 375 255 Total revenue $ 1,703 $ 1,714 Government Solutions revenue earned from key U.S. government customers includes U.S. DoD agencies and NASA, and is reported as Science & Space, Defense & Intel and Readiness & Sustainment. 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: Three Months Ended March 31, 2023 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 718 $ 131 $ 849 Europe 447 58 505 Middle East 26 87 113 Australia 101 18 119 Africa 19 18 37 Asia 3 38 41 Other countries 14 25 39 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,011 $ 109 $ 1,120 Europe 283 32 315 Middle East 39 49 88 Australia 90 — 90 Africa 18 17 35 Asia 3 42 45 Other countries 15 6 21 Total revenue $ 1,459 $ 255 $ 1,714 Many of our contracts contain cost reimbursable, time-and-materials and fixed price components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Three Months Ended March 31, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 815 $ — $ 815 Time-and-Materials 263 233 496 Fixed Price 250 142 392 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 955 $ — $ 955 Time-and-Materials 235 175 410 Fixed Price 269 80 349 Total revenue $ 1,459 $ 255 $ 1,714 Performance Obligations and Contract Liabilities On March 31, 2023, we had $11.3 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 39% of our remaining performance obligations as revenue within one year, 33% in years two through five and 28% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of March 31, 2023. We recognized revenue of $126 million and $82 million for the three months ended March 31, 2023 and 2022, respectively, which was previously included in the contract liability balance at the beginning of each period. Accounts Receivable March 31, December 31, Dollars in millions 2023 2022 Unbilled $ 583 $ 486 Trade & other 493 456 Accounts receivable $ 1,076 $ 942

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions VIMA Group On August 2, 2022, we acquired VIMA Group, a U.K.-based leading provider of digital transformation solutions to defense and other public sector clients. VIMA Group is reported within our GS business segment. We accounted for this transaction as an acquisition of a business using the acquisition method under Business Combinations (Topic 805) . The agreed-upon purchase price for the acquisition was $82 million. The purchase price consisted of cash paid at closing of $75 million, subject to certain working capital and other closing adjustments, $4 million of deferred consideration and contingent consideration with an estimated fair value of $3 million that was contingent upon the achievement of certain performance targets from closing through December 31, 2022. As the targets were not met, no consideration was paid and we recorded a benefit of $3 million in our consolidated statements of operations for the year ended December 31, 2022. We recognized $2 million as an intangible backlog asset, $11 million in customer relationships, $3 million in net working capital, $2 million in deferred income tax liability and $68 million of goodwill arising from the acquisition, which relates primarily to future growth opportunities. The purchase price allocation for the business combination is considered final. For U.S. tax purposes, the transaction is treated as a stock deal. As a result, there is no step-up in tax basis in the individual assets and liabilities acquired and the goodwill recognized is not deductible for tax purposes.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2023
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash EquivalentsWe consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash 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, new acquisitions and joint ventures, general cash needs or distribution to us without approval of the board of directors of the respective entities. The cash and cash equivalents held in consolidated joint ventures and the Aspire project are expected to be used for their respective project costs and distributions of earnings. The components of our cash and cash equivalents balance are as follows: March 31, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 255 $ 38 $ 293 Short-term investments (c) 7 2 9 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 100 14 114 Total $ 362 $ 54 $ 416 December 31, 2022 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 251 $ 25 $ 276 Short-term investments (c) 4 2 6 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 99 8 107 Total $ 354 $ 35 $ 389 (a) Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes. (b) Includes U.S. dollar and foreign currency deposits held in U.S. entities with 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	3 Months Ended
	Mar. 31, 2023
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 2023 2022 Amounts included in project estimates-at-completion at January 1, $ 48 $ 426 Net increase (decrease) in project estimates 13 (117) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project estimates-at-completion at March 31, $ 61 $ 45 The balance as of March 31, 2023 primarily relates to projects in our Government Solutions segment. Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of legacy projects and legal matters. We generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Sanctions and trade control measures were implemented against Russia due to the ongoing conflict between Russia and Ukraine. These measures may impact our ability to operate in the region as we continue to carry out efforts to wind down our operations in Russia. During the three months ended March 31, 2022, we recognized an unfavorable change of $12 million in gross profit and incurred $4 million in severance and asset impairments costs associated with exiting commercial projects in Russia. During the three months ended March 31, 2022, within our STS business segment, we recognized a non-cash charge to equity in earnings of unconsolidated affiliates of $137 million as a result of changes in estimates on the Ichthys LNG Project in connection with a settlement agreement (the “Subcontractor Settlement Agreement”) entered into to resolve outstanding claims and disputes between JKC and the consortium of subcontractors.

Equity Method Investments and V

Equity Method Investments and Variable Interest Entities	3 Months Ended
	Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Variable Interest Entities	Equity Method Investments and Variable Interest Entities We conduct some of our operations through joint ventures, which operate through partnerships, corporations and 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: Three Months Ended March 31, Year Ended December 31, 2023 2022 Dollars in millions Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 23 (80) Distributions of earnings of unconsolidated affiliates (b) (15) (53) Payments from unconsolidated affiliates, net (6) (14) (Return of) investments in equity method investment, net (c) (61) (198) Sale of equity method investment (d)(a) — (31) Foreign currency translation adjustments 1 (15) Other (e) 42 3 Ending balance $ 172 $ 188 (a) During 2022, a non-cash charge of $137 million was recorded for settlement agreements associated with the Ichthys LNG project. Additionally, during the third quarter of 2022, we recorded a charge against a joint venture acquired from a historical GS acquisition of $10 million based on our funding obligations of projected losses. In the fourth quarter of 2022, we divested this joint venture and recorded an incremental loss on sale of $3 million. The remaining equity in earnings (losses) of unconsolidated affiliates in 2023 and 2022 is related to normal activities within our other joint ventures. (b) In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our condensed consolidated statements of cash flows. (c) For the three months ended March 31, 2023, we received a return of investment from JKC of approximately $61 million related to the second payment received from the Subcontractor Settlement Agreement. For the year ended December 31, 2022, we received a return of investment from JKC of approximately $190 million related to the first payment from the Subcontractor Settlement Agreement and from BRJV of $10 million as our cumulative distributions from inception of the joint venture exceeded our cumulative earnings. (d) During the first quarter of 2022, we sold two of our four U.K. Road investments. The carrying value of our investment was $22 million. We received $18 million in cash proceeds and the purchaser agreed to assume the $4 million of consortium relief. In the second quarter of 2022, we sold an additional U.K. Road investment with a carrying value of $19 million and recorded a gain of approximately $16 million upon receipt of $35 million in cash proceeds, in addition to receipt of $2 million of deferred consideration from the Q1 2022 sales. (e) During the three months ended March 31, 2023, Other included a net liability position of $48 million related to our investment in JKC. The net liability position is attributed to our proportionate share of the provision that JKC continues to maintain for the paint and insulation claims against the insurer and paint manufacturer net of expected tax benefits. Related Party Transactions We often provide engineering, construction management and other subcontractor services to our unconsolidated joint ventures, and our revenues include amounts related to these services. For the three months ended March 31, 2023 and 2022, our revenues included $124 million and $104 million, respectively, related to the services we provided primarily to the Aspire Defence Limited joint venture within our GS business segment and a joint venture within our STS business segment. Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of March 31, 2023, and December 31, 2022 are as follows: March 31, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for credit losses $ 64 $ 56 Contract assets $ 2 $ 2 Other current assets $ 3 $ 12 Contract liabilities $ 52 $ 39

Retirement Benefits

Retirement Benefits	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Retirement Benefits	Retirement Benefits We have two frozen defined benefit pension plans in the U.S., one frozen and one active plan in the U.K. and one frozen plan in Germany. All of these plans are immaterial except for the frozen U.K. defined benefit pension plan. The components of net periodic pension benefit related to the U.K. pension for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Components of net periodic pension benefit Interest cost $ 15 $ 9 Expected return on plan assets (25) (22) Recognized actuarial loss — 6 Net periodic pension benefit $ (10) $ (7)

Debt and Other Credit Facilitie

Debt and Other Credit Facilities	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 December 31, 2022 Term Loan A $ 399 $ 398 Term Loan B 504 506 Convertible Senior Notes 350 350 Senior Notes 250 250 Senior Credit Facility 260 260 Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (10) (10) Unamortized debt issuance costs and discount - Convertible Senior Notes (1) (2) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt (a) 1,741 1,740 Less: current portion 367 364 Total long-term debt, net of current portion $ 1,374 $ 1,376 (a) Total debt excludes bank overdrafts that do not have a legal right of offset against other cash balances. Senior Credit Facility On February 6, 2023, we entered into Amendment No. 8 under our existing Credit Agreement, dated as of April 25, 2018 ("Pro Rata Facilities"), consisting of a $1 billion revolving credit facility (the "Revolver"), a Term Loan A ("Term Loan A") with debt tranches denominated in U.S. dollars and British pound sterling and a Term Loan B ("Term Loan B") ("Senior Credit Facility"). Amendment No. 8 (i) replaces the LIBOR-based reference borrowing rate with a SOFR-based reference borrowing rate for the U.S. dollar tranche of Term Loan A and the Revolver and (ii) implements the Company’s recent fiscal year change from a calendar year ending on December 31 to a 52-53 week year ending on the Friday closest to December 31, effective beginning with fiscal year 2023. The interest rates with respect to the Revolver and Term Loan A are based on, at the Company's option, the respective adjusted reference rate 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 net leverage ratio as follows: Revolver and Term Loan A Consolidated Net Leverage Ratio Reference Rate (a) Base Rate Commitment Fee Greater than or equal to 4.25 to 1.00 2.25 % 1.25 % 0.33 % Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 1.75 % 0.75 % 0.28 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.50 % 0.50 % 0.25 % Less than 1.25 to 1.00 1.25 % 0.25 % 0.23 % (a) The reference rate for the Revolver and the U.S. dollar tranches of Term Loan A is SOFR plus 10 bps Credit Spread Adjustment and the British pound sterling tranche is SONIA. Term Loan A provides for quarterly principal payments of 0.625% of the aggregate principal amount that commenced with the fiscal quarter ended March 31, 2022, increasing to 1.25% starting with the quarter ending March 29, 2024. Term Loan B provides for quarterly principal payments of 0.25% of the initial aggregate principal amounts that commenced with the fiscal quarter ended June 30, 2020. Term Loan A and the Revolver mature on November 2026 and Term Loan B matures in February 2027. The Senior Credit Facility contains financial covenants of a maximum consolidated net leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Senior Credit Facility). Our consolidated net leverage ratio as of the last day of any fiscal quarter may not exceed 4.50 to 1 through 2022, reducing to 4.25 to 1 in 2023 and 4.00 to 1 in 2024 and thereafter. Our consolidated interest coverage ratio may not be less than 3.00 to 1 as of the last day of any fiscal quarter. As of March 31, 2023, 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. As such, the Convertible Notes are classified as current liabilities on our condensed consolidated balance sheets as of March 31, 2023. 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. In April 2023, we elected cash as the settlement method to settle the principal and any excess value upon early conversion or maturity of the Convertible Notes. Prior to May 1, 2023, the Convertible Notes were 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. On February 10, 2023, we declared a quarterly cash dividend of $0.135 per Common Share, which exceeded our per share dividend threshold and adjusted the conversion rate to 39.6186 Common Shares per $1,000 principal amount of Convertible Notes at a strike price of $25.24. 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. The updated strike price of the net-share settled warrants as of March 31, 2023 was $39.59. 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. As of March 31, 2023, the if-converted value of the Convertible Notes based on the closing share price exceeded the $350 million principal amount by approximately $413 million. The incremental value over the principal amount would be fully offset by the cash delivered from the Note Hedge Transactions. However, the counterparties holding the warrants would have the right to purchase the total convertible number of shares at the current conversion rate at a strike price of $39.59 resulting in value of $214 million that would have been delivered to the counterparties as of March 31, 2023. Senior Notes On September 30, 2020, we issued and sold $250 million aggregate principal amount of 4.750% Senior Notes due 2028 (the "Senior Notes") 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. 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

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe effective tax rate was approximately 26% and (37)% for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for the three months ended March 31, 2023 as compared to the U.S. statutory rate of 21%, was primarily impacted by the rate differential on our foreign earnings. The effective tax rate for the three months ended March 31, 2022 was primarily impacted by the non-deductibility of losses incurred with respect to the settlement of outstanding matters related to the Ichthys LNG project to which KBR is a JV partner. The valuation allowance for deferred tax assets as of March 31, 2023 and December 31, 2022 was $216 million and $217 million, respectively. The remaining valuation allowance is 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. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income, in the appropriate character and source, during the periods in which those temporary differences become deductible or within the remaining carryforward period. 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. The utilization of the unreserved foreign tax credit carryforwards is based on our ability to generate income from foreign sources of approximately $329 million prior to their expiration. The utilization of other net deferred tax assets, excluding those associated with indefinite-lived intangible assets, is based on our ability to generate U.S. forecasted taxable income of approximately $738 million. Changes in our forecasted taxable income, in the appropriate character and source, as well as jurisdiction, could affect the ultimate realization of deferred tax assets. The provision for uncertain tax positions included in other liabilities and deferred income taxes on our condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 was $91 million and $92 million, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesWe are a party to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of any individual matter, including the matters described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings and cash flows in any particular reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress.Although we cannot predict the outcome of legal or other proceedings with certainty, when it is probable that a loss will be incurred and the amount is reasonably estimable, U.S. GAAP requires us to accrue an estimate of the probable loss or range of loss. In the event a loss is probable, but the probable loss is not reasonably estimable, we are required to make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion, a reasonably possible loss or range of loss associated with any individual contingency cannot be estimated. There have been no substantive developments or changes to existing claims.

U.S. Government Matters

U.S. Government Matters	3 Months Ended
	Mar. 31, 2023
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. 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 includes, 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 any completed or ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. The U.S. government also retains the right to pursue various remedies under any of these contracts which could result in challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government. The Company accrued for probable and reasonably estimable unallowable costs associated with open government matters related to our GS business in the amounts of $51 million as of March 31, 2023 and $61 million as of December 31, 2022, which are recorded in other liabilities on our condensed consolidated balance sheets. 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 that 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 resolutions of these outstanding matters. 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. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Some of these matters involve allegations of violations of the FCA, which prohibits in general terms fraudulent billings to the U.S. government; these suits brought by private individuals are called "qui tams." In the event we prevail in defending these allegations, a majority of our defense costs will be billable under the LogCAP III contract. 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 for arbitration with the American Arbitration Association for several claims under various LogCAP III subcontracts. After a series of arbitration proceedings and related litigation between KBR and the U.S. government, the panel heard the final claims this year and we received an award on July 27, 2022. FKTC filed a motion for correction of the award asking the tribunal to change its findings. The tribunal denied FKTC's motion in an order issued on October 20, 2022. KBR filed its response on February 2, 2023. On January 5, 2023, FKTC filed a motion to vacate the arbitral award in the Eastern District of Virginia Federal District Court. On March 22, 2023, both parties presented oral arguments in the Eastern District of Virginia Federal District Court, and we expect a decision by the Court to be made soon. In addition, in March 2022, FKTC filed a new civil action in Kuwait civil court against KBR seeking $100 million in damages. This action is duplicative of the claims decided in arbitration. In September 2022, we filed a motion to dismiss this action for lack of jurisdiction due to the arbitration agreement between KBR and FKTC. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, no amounts are accrued as of March 31, 2023. 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. 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. Fact discovery and expert reports have been completed. We have completed briefing our motion for summary judgment and motions to exclude relators' experts. At the request of the parties, the court ordered a 90-day stay of the proceedings on December 28, 2022, which was later extended until May 31, 2023. Although we believe the allegations of fraud by the relators are without merit, we participated in mediation, and discussions with the relators are ongoing while we also continue to prepare for trial. Any proposed framework for resolving the litigation must involve agreements on damages and attorneys' fees as well as necessary determinations by the Department of the Army and approval by the DOJ. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, we are not able to estimate a reasonably possible range of loss and accordingly, no amounts have been accrued as of March 31, 2023.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2023
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, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 29 — (5) 24 Amounts reclassified from AOCL (14) — (3) (17) Net other comprehensive income (loss) 15 — (8) 7 Balance at March 31, 2023 $ (337) $ (568) $ 30 $ (875) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (19) — 17 (2) Amounts reclassified from AOCL — 5 2 7 Net other comprehensive income (loss) (19) 5 19 5 Balance at March 31, 2022 $ (315) $ (576) $ 15 $ (876) Reclassifications out of AOCL, net of tax, by component Three Months Ended March 31, Dollars in millions 2023 2022 Affected line item on the Condensed Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 14 $ — Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 14 $ — Net of tax Accumulated pension liability adjustments Amortization of actuarial loss (a) $ — $ (6) See (a) below Tax benefit — 1 Provision for income taxes Net pension and post-retirement benefits $ — $ (5) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 4 $ (3) Other non-operating expense Tax benefit (1) 1 Provision for income taxes Net changes in fair value of derivatives $ 3 $ (2) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 "Retirement Benefits" to our condensed consolidated financial statements for further discussion.

Share Repurchases

Share Repurchases	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Share Repurchases	Share Repurchases Authorized Share Repurchase Program On February 25, 2014, the 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. On October 18, 2022, the Board of Directors authorized an increase to the total authorization level to $500 million. As of March 31, 2023, $401 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. Withheld to Cover Program We have in place a "withhold to cover" program, which allows us to withhold common shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share-based equity awards under the KBR, Inc. 2006 Stock and Incentive Plan. The table below presents information on our share repurchases activity under these programs: Three Months Ended March 31, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 934,935 $ 53.46 $ 50 Withhold to cover shares 203,233 $ 53.62 $ 11 Total 1,138,168 $ 53.49 $ 61 Three Months Ended March 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 519,332 $ 48.12 $ 25 Withhold to cover shares 170,939 $ 48.70 $ 8 Total 690,271 $ 48.26 $ 33

Income (loss) per Share

Income (loss) per Share	3 Months Ended
	Mar. 31, 2023
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 (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for Convertible Debt and the treasury stock method for all other instruments. A summary of the basic and diluted net income (loss) per share calculations is as follows: Three Months Ended March 31, Shares in millions 2023 2022 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ 86 $ (71) Less earnings allocable to participating securities $ (1) $ — Basic net income (loss) attributable to KBR $ 85 $ (71) Reversal of Convertible Debt interest expense 2 — Diluted net income (loss) attributable to KBR (a) $ 87 $ (71) Weighted average common shares outstanding: Basic weighted average common shares outstanding 137 140 Convertible debt 14 — Warrants 3 — Diluted weighted average common shares outstanding (a) 154 140 Net income (loss) attributable to KBR per share: Basic $0.62 $(0.51) Diluted (a) $0.56 $(0.51) (a) In periods for which we report a net loss attributable to KBR, basic net loss per share and diluted net loss per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded. We apply the if-converted method to our Convertible Debt when calculating diluted income (loss) per share. Under the if-converted method, the principal amount and any conversion spread of the Convertible Debt, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period and net income (loss) attributable to KBR is adjusted to reverse the effect of any interest expense associated with the Convertible Debt. Additionally, for the three months ended March 31, 2023, the Warrant Transactions (as defined in Note 9 "Debt and Other Credit Facilities", to our condensed consolidated financial statements) impacted the calculation of diluted income (loss) per share as the average price of our common stock during the period exceeded the adjusted strike price of $39.59. For the three months ended March 31, 2023, the diluted income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 10.5 million related to the Warrant Transactions and 0.4 million related to our stock options and restricted stock awards. For the three months ended March 31, 2022, the diluted income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 13.8 million related to the Convertible Debt, 13.8 million related to the Warrant Transactions and 0.8 million related to our stock options and restricted stock awards.

Fair Value of Financial Instrum

Fair Value of Financial Instruments and Risk Management	3 Months Ended
	Mar. 31, 2023
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 cash equivalents, accounts receivable and accounts payable, as reflected in the condensed 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 condensed consolidated balance sheets are provided in the following table. March 31, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 399 $ 399 $ 398 $ 398 Term Loan B Level 2 504 505 506 511 Convertible Notes Level 2 350 763 350 731 Senior Notes Level 2 250 225 250 220 Senior Credit Facility Level 2 ` 260 260 260 260 See Note 9 "Debt and Other Credit Facilities" for further discussion of our term loans, Convertibles Notes, Senior Notes and Revolver. 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 March 31, 2023, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $69 million, all of which had durations of 17 days or less. We also had approximately $6 million (gross notional value) of cash flow hedges which had durations of 14 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 are included in other current assets and other current liabilities on our condensed consolidated balance sheets at March 31, 2023, and December 31, 2022. 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 condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our condensed consolidated statements of operations. Three Months Ended March 31, Dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ — Balance Sheet Position - Remeasurement (2) — Net loss $ (2) $ — Interest rate risk. We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting a portion of our variable rate debt under our Senior Credit Facility into fixed-rate debt. During the three months ended March 31, 2023, we amended all of our existing interest rate swap agreements to term SOFR effective March 2023. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, in March 2023, we entered into additional USD and GBP denominated interest rate swap agreements. Our portfolio of interest rate swaps consists of the following: Notional Amount at March 31, 2023 Pay Fixed Rate (Weighted Average) Receive Variable Rate Settlement and Termination March 2020 Interest Rate Swaps $ 400 0.89 % Term SOFR Monthly through January 2027 September 2022 Interest Rate Swaps (a) $ 250 3.43 % Term SOFR Monthly through January 2027 March 2023 Interest Rate Swaps $ 205 3.61 % Term SOFR Monthly through January 2027 March 2023 Amortizing Interest Rate Swaps £ 118 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value will increase to $350 million through maturity in January 2027. Our interest rate swaps are reported at fair value using Level 2 inputs. The fair value of the interest rate swaps at March 31, 2023 was a $37 million net asset, of which $23 million is included in other current assets, $24 million is included in other assets, $1 million is included in other current liabilities and $9 million is included in other liabilities. The unrealized net gain on these interest rate swaps was $37 million and is included in AOCL as of March 31, 2023. The fair value of the interest rate swaps at December 31, 2022, was a $48 million net asset, of which $19 million is included in other current assets and $29 million is included in other assets. The unrealized net gains on these interest rate swaps was $48 million and is included in AOCL as of December 31, 2022. Sales of Receivables. From time to time, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. One such program is with MUFG Bank, Ltd. (“MUFG”) under a Master Accounts Receivable Purchase Agreement (the “RPA”), which provides the sale to MUFG of certain of our designated eligible receivables, with a significant portion of such receivables being owed by the U.S. government. During the three months ended March 31, 2023, the Company has derecognized $703 million of accounts receivables from the balance sheet under these agreements, of which certain receivables totaling $693 million were sold under the MUFG RPA. 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 expense on the condensed consolidated statements of operations. Activity for third-party financial institutions consisted of the following: Three Months Ended Dollars in millions March 31, 2023 March 31, 2022 Beginning balance $ 134 481 Sale of receivables 703 1,287 Settlement of receivables (714) (1,649) Cash collected, not yet remitted (2) (1) Outstanding balances sold to financial institutions $ 121 $ 118 Other Investments. Other investments include investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our condensed consolidated balance sheets. These investments are accounted for under the measurement alternative, provided that KBR does not have the ability to exercise significant influence or control over the investees. In June 2022, we entered into an agreement to invest an additional £80 million in Mura Technology ("Mura"). Funding occurred in two tranches with the first payment made in June 2022 and the second payment made in April 2023, increasing KBR's aggregate investment in Mura to approximately 17%. No observable transactions entered during the three months ended March 31, 2023 and 2022 required an adjustment to the carrying value of our investment, which was $85 million and $83 million at March 31, 2023 and December 31, 2022, respectively.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2023
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 2017, the United Kingdom's Financial Conduct Authority announced that after 2021 it would no longer compel banks to submit the rates required to calculate the London Interbank Offered Rate (LIBOR), which have been widely used as reference rates for various securities and financial contracts, including loans, debts and derivatives. This announcement indicates that the continuation of LIBOR on the current basis is not guaranteed after 2021. Subsequently in March 2021, the Financial Conduct Authority announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. Regulators in the U.S. and other jurisdictions have been working to replace these rates with alternative reference interest rates that are supported by transactions in liquid and observable markets, such as the SOFR for USD LIBOR. Currently, our Senior Credit Facility references LIBOR base rates. Our Senior Credit Facility contains provisions to transition into alternative reference rates including calculations to be employed when LIBOR ceases to be available as a benchmark. We have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which will govern our derivatives upon the final termination of USD LIBOR index benchmark. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , as amended, helps limit the accounting impact from contract modifications, including hedging relationships, due to the transition from LIBOR to alternative reference rates that are completed by December 31, 2022. In December 2022, the FASB issued ASU 2020-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, as we enter into modifications to continue to transition our Senior Credit Facility from LIBOR to an alternate reference rate, we do not expect a significant impact to our financial results, financial position or cash flows as we will elect to apply the optional expedients. In March 2023, the FASB issued 2023-01, Leases (Topic 842) - Common Control Arrangements, which requires leasehold improvements associated with common control leases to be amortized over the useful life of the leasehold improvements to the common control group as long as the lessee controls the underlying asset through a lease. The amendments are effective for all entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements. We are currently evaluating the future impact of this standard.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of ConsolidationThe accompanying condensed 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 (collectively, the "Company," "KBR", "we", "us" or "our"). We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 7 "Equity Method Investments and Variable Interest Entities" to our condensed consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation.
Basis of Presentation	Basis of Presentation On December 13, 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. In a 52 week fiscal year, each of the Company’s quarterly periods will comprise 13 weeks. The additional week in a 53 week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. The Company’s first 53 week fiscal year will occur in fiscal year 2024. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. The change will impact the prior year comparability of each of the fiscal quarters and the annual period for the year ending December 31, 2023, however, the impact will not be material. The Company believes this change will improve comparability between periods by eliminating the year-over-year variability in calendar month productive days and provide a more consistent reporting cadence for operational leaders to aid in strategic decision making.
Impact of Adoption of New Accounting Standards and Recent Accounting Pronouncements	Impact of Adoption of New Accounting Standards Effective January 1, 2023, we adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of this standard did not have an impact on our condensed consolidated financial statements. However, the ultimate impact is dependent upon the size and frequency of future acquisitions. New accounting pronouncements requiring implementation in future periods are discussed below. In 2017, the United Kingdom's Financial Conduct Authority announced that after 2021 it would no longer compel banks to submit the rates required to calculate the London Interbank Offered Rate (LIBOR), which have been widely used as reference rates for various securities and financial contracts, including loans, debts and derivatives. This announcement indicates that the continuation of LIBOR on the current basis is not guaranteed after 2021. Subsequently in March 2021, the Financial Conduct Authority announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. Regulators in the U.S. and other jurisdictions have been working to replace these rates with alternative reference interest rates that are supported by transactions in liquid and observable markets, such as the SOFR for USD LIBOR. Currently, our Senior Credit Facility references LIBOR base rates. Our Senior Credit Facility contains provisions to transition into alternative reference rates including calculations to be employed when LIBOR ceases to be available as a benchmark. We have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which will govern our derivatives upon the final termination of USD LIBOR index benchmark. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , as amended, helps limit the accounting impact from contract modifications, including hedging relationships, due to the transition from LIBOR to alternative reference rates that are completed by December 31, 2022. In December 2022, the FASB issued ASU 2020-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, as we enter into modifications to continue to transition our Senior Credit Facility from LIBOR to an alternate reference rate, we do not expect a significant impact to our financial results, financial position or cash flows as we will elect to apply the optional expedients. In March 2023, the FASB issued 2023-01, Leases (Topic 842) - Common Control Arrangements, which requires leasehold improvements associated with common control leases to be amortized over the useful life of the leasehold improvements to the common control group as long as the lessee controls the underlying asset through a lease. The amendments are effective for all entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements. We are currently evaluating the future impact of this standard.

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of operations by reportable segment	Operations by Reportable Segment Three Months Ended March 31, 2023 2022 Dollars in millions Revenues: Government Solutions $ 1,328 $ 1,459 Sustainable Technology Solutions 375 255 Total revenues $ 1,703 $ 1,714 Operating income (loss): Government Solutions $ 102 $ 116 Sustainable Technology Solutions 82 (106) Other (40) (41) Total operating income (loss) $ 144 $ (31)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Revenue by business unit and reportable segment was as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Government Solutions Science & Space $ 279 $ 253 Defense & Intel 363 378 Readiness & Sustainment 405 533 International 281 295 Total Government Solutions 1,328 1,459 Sustainable Technology Solutions 375 255 Total revenue $ 1,703 $ 1,714 Revenue by geographic destination was as follows: Three Months Ended March 31, 2023 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 718 $ 131 $ 849 Europe 447 58 505 Middle East 26 87 113 Australia 101 18 119 Africa 19 18 37 Asia 3 38 41 Other countries 14 25 39 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,011 $ 109 $ 1,120 Europe 283 32 315 Middle East 39 49 88 Australia 90 — 90 Africa 18 17 35 Asia 3 42 45 Other countries 15 6 21 Total revenue $ 1,459 $ 255 $ 1,714 Three Months Ended March 31, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 815 $ — $ 815 Time-and-Materials 263 233 496 Fixed Price 250 142 392 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 955 $ — $ 955 Time-and-Materials 235 175 410 Fixed Price 269 80 349 Total revenue $ 1,459 $ 255 $ 1,714
Schedule of accounts receivable	March 31, December 31, Dollars in millions 2023 2022 Unbilled $ 583 $ 486 Trade & other 493 456 Accounts receivable $ 1,076 $ 942

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2023
Cash and Cash Equivalents [Abstract]
Schedule of cash and cash equivalents	The components of our cash and cash equivalents balance are as follows: March 31, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 255 $ 38 $ 293 Short-term investments (c) 7 2 9 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 100 14 114 Total $ 362 $ 54 $ 416 December 31, 2022 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 251 $ 25 $ 276 Short-term investments (c) 4 2 6 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 99 8 107 Total $ 354 $ 35 $ 389 (a) Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes. (b) Includes U.S. dollar and foreign currency deposits held in U.S. entities with 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)	3 Months Ended
	Mar. 31, 2023
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 2023 2022 Amounts included in project estimates-at-completion at January 1, $ 48 $ 426 Net increase (decrease) in project estimates 13 (117) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project estimates-at-completion at March 31, $ 61 $ 45

Equity Method Investments and_2

Equity Method Investments and Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Schedule of equity in earnings of unconsolidated affiliates	The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Three Months Ended March 31, Year Ended December 31, 2023 2022 Dollars in millions Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 23 (80) Distributions of earnings of unconsolidated affiliates (b) (15) (53) Payments from unconsolidated affiliates, net (6) (14) (Return of) investments in equity method investment, net (c) (61) (198) Sale of equity method investment (d)(a) — (31) Foreign currency translation adjustments 1 (15) Other (e) 42 3 Ending balance $ 172 $ 188 (a) During 2022, a non-cash charge of $137 million was recorded for settlement agreements associated with the Ichthys LNG project. Additionally, during the third quarter of 2022, we recorded a charge against a joint venture acquired from a historical GS acquisition of $10 million based on our funding obligations of projected losses. In the fourth quarter of 2022, we divested this joint venture and recorded an incremental loss on sale of $3 million. The remaining equity in earnings (losses) of unconsolidated affiliates in 2023 and 2022 is related to normal activities within our other joint ventures. (b) In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our condensed consolidated statements of cash flows. (c) For the three months ended March 31, 2023, we received a return of investment from JKC of approximately $61 million related to the second payment received from the Subcontractor Settlement Agreement. For the year ended December 31, 2022, we received a return of investment from JKC of approximately $190 million related to the first payment from the Subcontractor Settlement Agreement and from BRJV of $10 million as our cumulative distributions from inception of the joint venture exceeded our cumulative earnings. (d) During the first quarter of 2022, we sold two of our four U.K. Road investments. The carrying value of our investment was $22 million. We received $18 million in cash proceeds and the purchaser agreed to assume the $4 million of consortium relief. In the second quarter of 2022, we sold an additional U.K. Road investment with a carrying value of $19 million and recorded a gain of approximately $16 million upon receipt of $35 million in cash proceeds, in addition to receipt of $2 million of deferred consideration from the Q1 2022 sales. (e) During the three months ended March 31, 2023, Other included a net liability position of $48 million related to our investment in JKC. The net liability position is attributed to our proportionate share of the provision that JKC continues to maintain for the paint and insulation claims against the insurer and paint manufacturer net of expected tax benefits.
Schedule of services provided to unconsolidated JV's	Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of March 31, 2023, and December 31, 2022 are as follows: March 31, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for credit losses $ 64 $ 56 Contract assets $ 2 $ 2 Other current assets $ 3 $ 12 Contract liabilities $ 52 $ 39

Retirement Benefits (Tables)

Retirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of net periodic pension benefit	The components of net periodic pension benefit related to the U.K. pension for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Components of net periodic pension benefit Interest cost $ 15 $ 9 Expected return on plan assets (25) (22) Recognized actuarial loss — 6 Net periodic pension benefit $ (10) $ (7)

Debt and Other Credit Facilit_2

Debt and Other Credit Facilities (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of outstanding debt	Our outstanding debt consisted of the following at the dates indicated: Dollars in millions March 31, 2023 December 31, 2022 Term Loan A $ 399 $ 398 Term Loan B 504 506 Convertible Senior Notes 350 350 Senior Notes 250 250 Senior Credit Facility 260 260 Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (10) (10) Unamortized debt issuance costs and discount - Convertible Senior Notes (1) (2) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt (a) 1,741 1,740 Less: current portion 367 364 Total long-term debt, net of current portion $ 1,374 $ 1,376 (a) Total debt excludes bank overdrafts that do not have a legal right of offset against other cash balances. The details of the applicable margins and commitment fees under the amended Senior Credit Facility are based on the Company's consolidated net leverage ratio as follows: Revolver and Term Loan A Consolidated Net Leverage Ratio Reference Rate (a) Base Rate Commitment Fee Greater than or equal to 4.25 to 1.00 2.25 % 1.25 % 0.33 % Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 1.75 % 0.75 % 0.28 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.50 % 0.50 % 0.25 % Less than 1.25 to 1.00 1.25 % 0.25 % 0.23 %

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Schedule 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, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 29 — (5) 24 Amounts reclassified from AOCL (14) — (3) (17) Net other comprehensive income (loss) 15 — (8) 7 Balance at March 31, 2023 $ (337) $ (568) $ 30 $ (875) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (19) — 17 (2) Amounts reclassified from AOCL — 5 2 7 Net other comprehensive income (loss) (19) 5 19 5 Balance at March 31, 2022 $ (315) $ (576) $ 15 $ (876)
Schedule of reclassification out of accumulated other comprehensive income	Reclassifications out of AOCL, net of tax, by component Three Months Ended March 31, Dollars in millions 2023 2022 Affected line item on the Condensed Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 14 $ — Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 14 $ — Net of tax Accumulated pension liability adjustments Amortization of actuarial loss (a) $ — $ (6) See (a) below Tax benefit — 1 Provision for income taxes Net pension and post-retirement benefits $ — $ (5) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 4 $ (3) Other non-operating expense Tax benefit (1) 1 Provision for income taxes Net changes in fair value of derivatives $ 3 $ (2) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 "Retirement Benefits" to our condensed consolidated financial statements for further discussion.

Share Repurchases (Tables)

Share Repurchases (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of shares repurchased	The table below presents information on our share repurchases activity under these programs: Three Months Ended March 31, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 934,935 $ 53.46 $ 50 Withhold to cover shares 203,233 $ 53.62 $ 11 Total 1,138,168 $ 53.49 $ 61 Three Months Ended March 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 519,332 $ 48.12 $ 25 Withhold to cover shares 170,939 $ 48.70 $ 8 Total 690,271 $ 48.26 $ 33

Income (loss) per Share (Tables

Income (loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted income (loss) per share calculations	A summary of the basic and diluted net income (loss) per share calculations is as follows: Three Months Ended March 31, Shares in millions 2023 2022 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ 86 $ (71) Less earnings allocable to participating securities $ (1) $ — Basic net income (loss) attributable to KBR $ 85 $ (71) Reversal of Convertible Debt interest expense 2 — Diluted net income (loss) attributable to KBR (a) $ 87 $ (71) Weighted average common shares outstanding: Basic weighted average common shares outstanding 137 140 Convertible debt 14 — Warrants 3 — Diluted weighted average common shares outstanding (a) 154 140 Net income (loss) attributable to KBR per share: Basic $0.62 $(0.51) Diluted (a) $0.56 $(0.51) (a) In periods for which we report a net loss attributable to KBR, basic net loss per share and diluted net loss per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2023
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 condensed consolidated balance sheets are provided in the following table. March 31, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 399 $ 399 $ 398 $ 398 Term Loan B Level 2 504 505 506 511 Convertible Notes Level 2 350 763 350 731 Senior Notes Level 2 250 225 250 220 Senior Credit Facility Level 2 ` 260 260 260 260
Schedule of derivatives instruments statements of financial performance and financial position, location	The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our condensed consolidated statements of operations. Three Months Ended March 31, Dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ — Balance Sheet Position - Remeasurement (2) — Net loss $ (2) $ —
Schedule of Interest Rate Swaps	Our portfolio of interest rate swaps consists of the following: Notional Amount at March 31, 2023 Pay Fixed Rate (Weighted Average) Receive Variable Rate Settlement and Termination March 2020 Interest Rate Swaps $ 400 0.89 % Term SOFR Monthly through January 2027 September 2022 Interest Rate Swaps (a) $ 250 3.43 % Term SOFR Monthly through January 2027 March 2023 Interest Rate Swaps $ 205 3.61 % Term SOFR Monthly through January 2027 March 2023 Amortizing Interest Rate Swaps £ 118 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value will increase to $350 million through maturity in January 2027.
Schedule of sale of receivables activity	Activity for third-party financial institutions consisted of the following: Three Months Ended Dollars in millions March 31, 2023 March 31, 2022 Beginning balance $ 134 481 Sale of receivables 703 1,287 Settlement of receivables (714) (1,649) Cash collected, not yet remitted (2) (1) Outstanding balances sold to financial institutions $ 121 $ 118

Business Segment Information (N

Business Segment Information (Narrative) (Details)	3 Months Ended
	Mar. 31, 2023 segment process_technology vertical
Segment Reporting Information [Line Items]
Core business segments, number	2
Non-core business segments, number	1
Sustainable Technology Solutions
Segment Reporting Information [Line Items]
Number of process technologies (over) | process_technology	70
Number of primary areas | vertical	4

Business Segment Information (S

Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total revenues	$ 1,703	$ 1,714
Total operating income (loss)	144	(31)
Government Solutions
Segment Reporting Information [Line Items]
Total revenues	1,328	1,459
Total operating income (loss)	102	116
Sustainable Technology Solutions
Segment Reporting Information [Line Items]
Total revenues	375	255
Total operating income (loss)	82	(106)
Other
Segment Reporting Information [Line Items]
Total operating income (loss)	$ (40)	$ (41)

Revenue (Revenue by Geographic

Revenue (Revenue by Geographic Destination) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 1,703	$ 1,714
United States
Disaggregation of Revenue [Line Items]
Revenues	849	1,120
Europe
Disaggregation of Revenue [Line Items]
Revenues	505	315
Middle East
Disaggregation of Revenue [Line Items]
Revenues	113	88
Australia
Disaggregation of Revenue [Line Items]
Revenues	119	90
Africa
Disaggregation of Revenue [Line Items]
Revenues	37	35
Asia
Disaggregation of Revenue [Line Items]
Revenues	41	45
Other countries
Disaggregation of Revenue [Line Items]
Revenues	39	21
Government Solutions
Disaggregation of Revenue [Line Items]
Revenues	1,328	1,459
Government Solutions | United States
Disaggregation of Revenue [Line Items]
Revenues	718	1,011
Government Solutions | Europe
Disaggregation of Revenue [Line Items]
Revenues	447	283
Government Solutions | Middle East
Disaggregation of Revenue [Line Items]
Revenues	26	39
Government Solutions | Australia
Disaggregation of Revenue [Line Items]
Revenues	101	90
Government Solutions | Africa
Disaggregation of Revenue [Line Items]
Revenues	19	18
Government Solutions | Asia
Disaggregation of Revenue [Line Items]
Revenues	3	3
Government Solutions | Other countries
Disaggregation of Revenue [Line Items]
Revenues	14	15
Sustainable Technology Solutions
Disaggregation of Revenue [Line Items]
Revenues	375	255
Sustainable Technology Solutions | United States
Disaggregation of Revenue [Line Items]
Revenues	131	109
Sustainable Technology Solutions | Europe
Disaggregation of Revenue [Line Items]
Revenues	58	32
Sustainable Technology Solutions | Middle East
Disaggregation of Revenue [Line Items]
Revenues	87	49
Sustainable Technology Solutions | Australia
Disaggregation of Revenue [Line Items]
Revenues	18	0
Sustainable Technology Solutions | Africa
Disaggregation of Revenue [Line Items]
Revenues	18	17
Sustainable Technology Solutions | Asia
Disaggregation of Revenue [Line Items]
Revenues	38	42
Sustainable Technology Solutions | Other countries
Disaggregation of Revenue [Line Items]
Revenues	25	6
Science & Space | Government Solutions
Disaggregation of Revenue [Line Items]
Revenues	279	253
Defense & Intel | Government Solutions
Disaggregation of Revenue [Line Items]
Revenues	363	378
Readiness & Sustainment | Government Solutions
Disaggregation of Revenue [Line Items]
Revenues	405	533
International | Government Solutions
Disaggregation of Revenue [Line Items]
Revenues	$ 281	$ 295

Revenue (Revenue by Contract Ty

Revenue (Revenue by Contract Type) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,703	$ 1,714
Cost Reimbursable
Disaggregation of Revenue [Line Items]
Total revenue	815	955
Time-and-Materials
Disaggregation of Revenue [Line Items]
Total revenue	496	410
Fixed Price
Disaggregation of Revenue [Line Items]
Total revenue	392	349
Government Solutions
Disaggregation of Revenue [Line Items]
Total revenue	1,328	1,459
Government Solutions | Cost Reimbursable
Disaggregation of Revenue [Line Items]
Total revenue	815	955
Government Solutions | Time-and-Materials
Disaggregation of Revenue [Line Items]
Total revenue	263	235
Government Solutions | Fixed Price
Disaggregation of Revenue [Line Items]
Total revenue	250	269
Sustainable Technology Solutions
Disaggregation of Revenue [Line Items]
Total revenue	375	255
Sustainable Technology Solutions | Cost Reimbursable
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Sustainable Technology Solutions | Time-and-Materials
Disaggregation of Revenue [Line Items]
Total revenue	233	175
Sustainable Technology Solutions | Fixed Price
Disaggregation of Revenue [Line Items]
Total revenue	$ 142	$ 80

Revenue (Performance Obligation

Revenue (Performance Obligation) (Details) $ in Billions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 11.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected to be satisfied, percentage	39%
Revenue, remaining performance obligation, expected timing of satisfaction (year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected to be satisfied, percentage	33%
Revenue, remaining performance obligation, expected timing of satisfaction (year)	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected to be satisfied, percentage	28%
Revenue, remaining performance obligation, expected timing of satisfaction (year)

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract liability, revenue recognized	$ 126	$ 82

Revenue (Accounts Receivable) (

Revenue (Accounts Receivable) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Revenue from External Customer [Line Items]
Accounts receivable	$ 1,076	$ 942
Unbilled
Revenue from External Customer [Line Items]
Accounts receivable	583	486
Trade & other
Revenue from External Customer [Line Items]
Accounts receivable	$ 493	$ 456

Acquisitions (VIMA Group) (Deta

Acquisitions (VIMA Group) (Details) - USD ($)		12 Months Ended
	Aug. 02, 2022	Dec. 31, 2022	Mar. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 2,087,000,000	$ 2,095,000,000
VIMA Group
Business Acquisition [Line Items]
Purchase price of acquisition	$ 82,000,000
Cash consideration paid	75,000,000
Deferred consideration	4,000,000
Contingent consideration	3,000,000
Payment of contingent consideration liability		0
Contingent consideration non-payment benefit		$ 3,000,000
Working capital	3,000,000
Deferred income tax liability	2,000,000
Goodwill	68,000,000
Tax deductible amount	0
VIMA Group | Backlog assets
Business Acquisition [Line Items]
Intangible assets	2,000,000
VIMA Group | Customer relationships
Business Acquisition [Line Items]
Intangible assets	$ 11,000,000

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 416	$ 389
Operating cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	293	276
Short-term investments
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	9	6
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	114	107
International
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	362	354
International | Operating cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	255	251
International | Short-term investments
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	7	4
International | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	100	99
Domestic
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	54	35
Domestic | Operating cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	38	25
Domestic | Short-term investments
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	2	2
Domestic | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 14	$ 8

Unapproved Change Orders and _3

Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Rollforward) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Unapproved Change Orders [Roll Forward]
Amounts included in project estimates-at-completion at January 1,	$ 48	$ 426
Net increase (decrease) in project estimates	13	(117)
Approved change orders	0	(271)
Foreign currency impact	0	7
Amounts included in project estimates-at-completion at March 31,	61	45
(Unfavorable) Favorable change in gross profit	$ 245	$ 196

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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increases in Unapproved Change Orders and Claims [Line Items]
(Unfavorable) Favorable change in gross profit	$ 245	$ 196
Equity in earnings (losses) of unconsolidated affiliates	$ 23	(118)
EPC Project | Sustainable Technology Solutions
Increases in Unapproved Change Orders and Claims [Line Items]
(Unfavorable) Favorable change in gross profit		(12)
Severance and asset impairment costs		4
Ichthys LNG Project | Sustainable Technology Solutions
Increases in Unapproved Change Orders and Claims [Line Items]
Equity in earnings (losses) of unconsolidated affiliates		$ (137)

Equity Method Investments and_3

Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) $ in Millions	3 Months Ended					12 Months Ended
	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($) project	Dec. 31, 2022 USD ($)
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Beginning balance at January 1,	$ 188
Equity in earnings (losses) of unconsolidated affiliates	23				$ (118)
Distributions of earnings of unconsolidated affiliates	(24)				(30)
(Return of) investments in equity method investment, net	(61)
Ending balance	172	$ 188				$ 188
Return of (investments in) equity method joint ventures, net	61
U K Road Projects
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Sale of equity method investment				$ (19)	(22)
Gain (loss) on disposal					$ 4
Number of projects to be sold | project					2
Number of projects | project					4
Equity method investments				19	$ 22
Cash proceeds					18
Equity Method Investments
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Beginning balance at January 1,	188				576	576
Equity in earnings (losses) of unconsolidated affiliates	23					(80)
Distributions of earnings of unconsolidated affiliates	(15)					(53)
Payments from unconsolidated affiliates, net	(6)					(14)
(Return of) investments in equity method investment, net	(61)					(198)
Sale of equity method investment	0					(31)
Foreign currency translation adjustments	1					(15)
Other	42					3
Ending balance	172	188				188
Impairment of equity method investments			$ 10
Gain (loss) on disposal		$ (3)		16
Return of (investments in) equity method joint ventures, net	61					198
Equity method investments	0					31
Cash proceeds				$ 35
Deferred consideration					$ 2
Equity Method Investments | Ichthys LNG Project
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Non-cash charge recorded for settlement agreements						137
Equity Method Investments | Power Plant Subcontractor Consortium
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Other	48
Equity Method Investments | Subcontractor Settlement Agreement
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
(Return of) investments in equity method investment, net	(61)					(190)
Return of (investments in) equity method joint ventures, net	$ 61					190
Equity Method Investments | BRJV
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
(Return of) investments in equity method investment, net						(10)
Return of (investments in) equity method joint ventures, net						$ 10

Equity Method Investments and_4

Equity Method Investments and Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Transactions with Related Parties
Schedule of Equity Method Investments [Line Items]
Revenue from related parties	$ 124	$ 104

Equity Method Investments and_5

Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Accounts receivable, net of allowance for credit losses	$ 1,076	$ 942
Contract assets	258	252
Other current assets	162	164
Contract liabilities	282	275
Transactions with Related Parties
Schedule of Equity Method Investments [Line Items]
Accounts receivable, net of allowance for credit losses	64	56
Contract assets	2	2
Other current assets	3	12
Contract liabilities	$ 52	$ 39

Retirement Benefits (Narrative)

Retirement Benefits (Narrative) (Details) £ in Millions, $ in Millions		3 Months Ended
	Oct. 17, 2022 GBP (£)	Mar. 31, 2023 USD ($) plan	Mar. 31, 2023 GBP (£)
United States
Defined Benefit Plan Disclosure [Line Items]
Number of frozen defined benefit plans		2
U.K.
Defined Benefit Plan Disclosure [Line Items]
Number of frozen defined benefit plans		1
Number of active defined benefit plans		1
U.K. | Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	£ 29	$ 4
Estimated future employer contributions in remainder of fiscal year | $		$ 7
Estimated future employer contributions, current fiscal year | £			£ 33
Germany
Defined Benefit Plan Disclosure [Line Items]
Number of frozen defined benefit plans		1

Retirement Benefits (Details)

Retirement Benefits (Details) - U.K. - Pension Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 15	$ 9
Expected return on plan assets	(25)	(22)
Recognized actuarial loss	0	6
Net periodic pension benefit	$ (10)	$ (7)

Debt and Other Credit Facilit_3

Debt and Other Credit Facilities (Outstanding Debt Balances) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total debt	$ 1,741	$ 1,740
Less: current portion	367	364
Total long-term debt, net of current portion	1,374	1,376
Secured Debt | Term Loan A
Debt Instrument [Line Items]
Long-term debt	399	398
Unamortized debt issuance costs	(8)	(9)
Secured Debt | Term Loan B
Debt Instrument [Line Items]
Long-term debt	504	506
Unamortized debt issuance costs	(10)	(10)
Convertible Debt
Debt Instrument [Line Items]
Long-term debt	350	350
Unamortized debt issuance costs	(1)	(2)
Senior Notes
Debt Instrument [Line Items]
Long-term debt	250	250
Unamortized debt issuance costs	(3)	(3)
Senior Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 260	$ 260

Debt and Other Credit Facilit_4

Debt and Other Credit Facilities (Senior Credit Facility) (Details)	Feb. 06, 2023 USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2020
Secured Debt | Term Loan A
Line of Credit Facility [Line Items]
Percentage of aggregate principal				0.625%
Debt instrument, covenant, interest coverage ratio			3
Secured Debt | Term Loan A | Maximum
Line of Credit Facility [Line Items]
Debt instrument, covenant, leverage ratio through 2022			4.50
Debt instrument, covenant, leverage ratio through 2023			4.25
Debt instrument, covenant, leverage ratio through 2024			4
Secured Debt | Term Loan A | Forecast
Line of Credit Facility [Line Items]
Percentage of aggregate principal		1.25%
Secured Debt | Term Loan B
Line of Credit Facility [Line Items]
Percentage of aggregate principal					0.25%
Secured Debt | Term Loan B | Reference Rate
Line of Credit Facility [Line Items]
Revolver and term loan A, interest rate	2.75%
Revolving Credit Facility | Performance Letter of Credit Fee
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,000,000,000

Debt and Other Credit Facilit_5

Debt and Other Credit Facilities (Schedule of Commitment Fees) (Details)	Feb. 06, 2023
Revolver and Term Loan A | SOFR
Debt Instrument [Line Items]
Revolver and Term Loan A	0.10%
Greater than or equal to 4.25 to 1.00
Debt Instrument [Line Items]
Commitment Fee	0.33%
Greater than or equal to 4.25 to 1.00 | Revolver and Term Loan A | Reference Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	2.25%
Greater than or equal to 4.25 to 1.00 | Revolver and Term Loan A | Base Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	1.25%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00
Debt Instrument [Line Items]
Commitment Fee	0.30%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver and Term Loan A | Reference Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	2%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver and Term Loan A | Base Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	1%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00
Debt Instrument [Line Items]
Commitment Fee	0.28%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver and Term Loan A | Reference Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	1.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver and Term Loan A | Base Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	0.75%
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 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver and Term Loan A | Reference Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	1.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver and Term Loan A | Base Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	0.50%
Less than 1.25 to 1.00
Debt Instrument [Line Items]
Commitment Fee	0.23%
Less than 1.25 to 1.00 | Revolver and Term Loan A | Reference Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	1.25%
Less than 1.25 to 1.00 | Revolver and Term Loan A | Base Rate
Debt Instrument [Line Items]
Revolver and Term Loan A	0.25%

Debt and Other Credit Facilit_6

Debt and Other Credit Facilities (Convertible Senior Notes) (Details)		3 Months Ended
	Feb. 10, 2023 $ / shares	Mar. 31, 2023 USD ($) $ / shares	Mar. 31, 2022 $ / shares	Nov. 15, 2018 USD ($)
Debt Instrument [Line Items]
Cash dividends declared per share (in usd per share)		$ 0.135	$ 0.120
Exercise price (in usd per share)		$ 39.59
Convertible Debt | Notes Due 2023
Debt Instrument [Line Items]
Aggregate principal amount | $		$ 350,000,000		$ 350,000,000
Interest rate, stated percentage				2.50%
Cash dividends declared per share (in usd per share)	$ 0.135
Conversion rate	0.0396186
Convertible stock price (usd per share)	$ 25.24
Exercise price (in usd per share)		$ 39.59
If-converted value in excess of principal | $		$ 413,000,000
Net convertible carrying amount of equity component | $		$ 214,000,000

Debt and Other Credit Facilit_7

Debt and Other Credit Facilities (Senior Notes) (Details) - Senior Notes - Notes Due 2028	Sep. 30, 2020 USD ($)
Debt Instrument [Line Items]
Aggregate principal amount	$ 250,000,000
Interest rate, stated percentage	4.75%
Interest rate, stated redeem percentage	35%
Prior to September 30, 2023
Debt Instrument [Line Items]
Redemption price, percentage	100%
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%

Debt and Other Credit Facilit_8

Debt and Other Credit Facilities (Letters of Credit, Surety Bonds and Guarantees) (Details) - USD ($)	Mar. 31, 2023	Feb. 06, 2023
Letters of Credit Surety Bonds and Bank Guarantees
Debt Instrument [Line Items]
Letters of credit outstanding relate to joint venture operations	$ 85,000,000
Performance Letter of Credit Fee | Letter of Credit
Debt Instrument [Line Items]
Long-term line of credit	844,000,000
Performance Letter of Credit Fee | Letter of Credit | Committed Line of Credit
Debt Instrument [Line Items]
Aggregate principal amount	1,000,000,000
Performance Letter of Credit Fee | Letter of Credit | Uncommitted Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	369,000,000
Letters of credit outstanding, amount	251,000,000
Performance Letter of Credit Fee | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 1,000,000,000
Long-term line of credit	260,000,000
Letters of credit outstanding, amount	$ 14,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate on income from operations	26%	(37.00%)
Deferred tax assets, valuation allowance	$ 216		$ 217
Income from foreign sources	329
Income from domestic sources	738
Liabilities for uncertain tax positions	$ 91		$ 92

U.S. Government Matters (Detail

U.S. Government Matters (Details) - USD ($)		1 Months Ended
	Dec. 28, 2022	Mar. 31, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2011
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts
United States Government Contract Work [Line Items]
Accrued reserve for unallowable costs			$ 51,000,000	$ 61,000,000
First Kuwaiti Trading Company Arbitration
United States Government Contract Work [Line Items]
Claims in unpaid bonuses		$ 100,000,000
Howard qui tam
United States Government Contract Work [Line Items]
Estimate of possible loss					$ 628,000,000
Number of days court ordered, stay of proceedings	90 days
Amount accrued			$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,632	$ 1,683
Other comprehensive income (loss) adjustments before reclassifications	24	(2)
Amounts reclassified from AOCL	(17)	7
Other comprehensive income, net of tax	7	5
Ending balance	1,657	1,578
Accumulated foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(352)	(296)
Other comprehensive income (loss) adjustments before reclassifications	29	(19)
Amounts reclassified from AOCL	(14)	0
Other comprehensive income, net of tax	15	(19)
Ending balance	(337)	(315)
Accumulated pension liability adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(568)	(581)
Other comprehensive income (loss) adjustments before reclassifications	0	0
Amounts reclassified from AOCL	0	5
Other comprehensive income, net of tax	0	5
Ending balance	(568)	(576)
Changes in fair value of derivatives
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	38	(4)
Other comprehensive income (loss) adjustments before reclassifications	(5)	17
Amounts reclassified from AOCL	(3)	2
Other comprehensive income, net of tax	(8)	19
Ending balance	30	15
AOCL
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(882)	(881)
Other comprehensive income, net of tax	7	5
Ending balance	$ (875)	$ (876)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss (Reclassification out of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	$ (30)	$ (19)
Foreign currency hedge and interest rate swap settlements	(2)	0
Net income (loss)	86	(70)
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	14	0
Tax benefit	0	0
Net income (loss)	14	0
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	0	1
Amortization of actuarial loss	0	(6)
Net income (loss)	0	(5)
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	(1)	1
Foreign currency hedge and interest rate swap settlements	4	(3)
Net income (loss)	$ 3	$ (2)

Share Repurchases (Narrative) (

Share Repurchases (Narrative) (Details) - USD ($)	Mar. 31, 2023	Oct. 18, 2022	Feb. 25, 2014
Equity [Abstract]
Stock repurchase program, authorized amount		$ 500,000,000	$ 350,000,000
Remaining authorized repurchase amount	$ 401,000,000

Share Repurchases (Details)

Share Repurchases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Oct. 18, 2022	Feb. 25, 2014
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount			$ 500,000,000	$ 350,000,000
Number of shares (in shares)	1,138,168	690,271
Average price per share (in usd per share)	$ 53.49	$ 48.26
Repurchases of common stock	$ 61,000,000	$ 33,000,000
Number of shares (in shares)	203,233	170,939
Average price per share (in usd per share)	$ 53.62	$ 48.70
Value of common stock repurchases	$ 11,000,000	$ 8,000,000
Share Repurchase Program 2014
Equity, Class of Treasury Stock [Line Items]
Number of shares (in shares)	934,935	519,332
Average price per share (in usd per share)	$ 53.46	$ 48.12
Repurchases of common stock	$ 50,000,000	$ 25,000,000

Income (loss) per Share (Schedu

Income (loss) per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Income (loss) attributable to KBR	$ 86	$ (71)
Less earnings allocable to participating securities	(1)	0
Basic net income (loss) attributable to KBR	85	(71)
Reversal of Convertible Debt interest expense	2	0
Diluted net income (loss) attributable to KBR	$ 87	$ (71)
Basic weighted average common shares outstanding (in shares)	137	140
Convertible debt (in shares)	14	0
Warrants (in shares)	3	0
Diluted weighted average common shares outstanding (in shares)	154	140
Basic (in usd per share)	$ 0.62	$ (0.51)
Diluted (in usd per share)	$ 0.56	$ (0.51)

Income (loss) per Share (Narrat

Income (loss) per Share (Narrative) (Details) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price (in usd per share)	$ 39.59
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	10.5	13.8
Stock options and restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0.4	0.8
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)		13.8

Fair Value of Financial Instr_3

Fair Value of Financial Instruments and Risk Management (Carrying Value and Fair Value) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
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	$ 399	$ 398
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	504	506
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	250
Carrying Value | Senior Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, fair value disclosure	260	260
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	399	398
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	505	511
Fair Value | Convertible Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, fair value disclosure	763	731
Fair Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, fair value disclosure	225	220
Fair Value | Senior Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, fair value disclosure	$ 260	$ 260

Fair Value of Financial Instr_4

Fair Value of Financial Instruments and Risk Management (Foreign Currency Risk) (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
Maximum length of time hedged in balance sheet hedge	17 days
Maximum length of time hedged in cash flow hedge	14 months
Balance Sheet Hedge
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
Derivative, notional amount	$ 69,000,000
Cash Flow Hedging
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
Cash flow hedge	$ 6,000,000

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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Balance Sheet Hedges - Fair Value	$ 0	$ 0
Balance Sheet Position - Remeasurement	(2)	0
Net loss	$ (2)	$ 0

Fair Value of Financial Instr_6

Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Narrative) (Details) - Interest Rate Swap - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Fair value of interest rate swap assets (liabilities)	$ 37	$ 48
Unrealized gain on derivatives	37	48
Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of interest rate swap assets (liabilities)	23	19
Other Assets
Derivatives, Fair Value [Line Items]
Fair value of interest rate swap assets (liabilities)	24	$ 29
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Fair value of interest rate swap assets (liabilities)	(1)
Other Liabilities
Derivatives, Fair Value [Line Items]
Fair value of interest rate swap assets (liabilities)	$ (9)

Fair Value of Financial Instr_7

Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Details)	Nov. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 GBP (£)
March 2020 Interest Rate Swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount		$ 400,000,000
Fixed interest rate		0.89%	0.89%
September 2022 Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount		$ 250,000,000
Fixed interest rate		3.43%	3.43%
March 2023 Interest Rate Swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount		$ 205,000,000
Fixed interest rate		3.61%	3.61%
March 2023 Amortizing Interest Rate Swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount | £			£ 118,000,000
Fixed interest rate		3.81%	3.81%
Interest Rate Swap | Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 350,000,000

Fair Value of Financial Instr_8

Fair Value of Financial Instruments and Risk Management (Sale of Receivables) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value Disclosures [Abstract]
Sale of receivables	$ 703
Receivables sold	$ 693

Fair Value of Financial Instr_9

Fair Value of Financial Instruments and Risk Management (Sale of Receivables - Third-party Financial Institutions) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Transfer of Financial Assets Accounted for as Sales [Roll Forward]
Beginning balance	$ 134	$ 481
Sale of receivables	703	1,287
Settlement of receivables	(714)	(1,649)
Cash collected, not yet remitted	(2)	(1)
Outstanding balances sold to financial institutions	$ 121	$ 118

Fair Value of Financial Inst_10

Fair Value of Financial Instruments and Risk Management (Other Investments) (Details) - Mura £ in Millions, $ in Millions	1 Months Ended
	Apr. 30, 2023	Jun. 30, 2022 GBP (£) tranche	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Equity Securities without Readily Determinable Fair Value [Line Items]
Additional investment in equity securities without readily determinable fair value | £		£ 80
Number of tranches | tranche		2
Carrying value of investment | $			$ 85	$ 83
Subsequent Event
Equity Securities without Readily Determinable Fair Value [Line Items]
Ownership percentage	0.17