Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Document Period End Date | Dec. 31, 2014 | ||
Entity Registrant Name | KBR, INC. | ||
Entity Central Index Key | 1,357,615 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Shares Outstanding | 144,821,140 | ||
Document Fiscal Year Focus | 2,014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KBR | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A ("this Amendment") amends the KBR, Inc. ("the Company") Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Security and Exchange Commission on February 27, 2015 ("the Original Filing"). The Company is filing this Amendment for the purpose of including conformed signatures on the certifications for the Chief Executive Officer included in Exhibits 31.1 and 32.1 and for the Chief Financial Officer in Exhibits 31.2 and 32.2, which were inadvertently omitted in the Original Filing. All four certifications were fully executed on February 27, 2015 and were in our possession at the time of the Original Filing. This Amendment is presented as of the filing date of the Original Filing. Other than as set forth above, this Amendment does not modify or update disclosures in the Original Filing and does not reflect events that may have occurred after that date. |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | |||
Revenues | $ 6,366 | $ 7,214 | $ 7,770 |
Cost of revenues | (6,431) | (6,797) | (7,252) |
Gross profit (loss) | (65) | 417 | 518 |
Equity in earnings of unconsolidated affiliates | 163 | 137 | 151 |
General and administrative expenses | (239) | (248) | (222) |
Impairment of goodwill | (446) | 0 | (178) |
Asset impairment and restructuring charges | (214) | 0 | (2) |
Gain on disposition of assets | (7) | (2) | (32) |
Operating income (loss) | (794) | 308 | 299 |
Other non-operating income (expense) | 17 | (8) | (11) |
Income (loss) before income taxes and noncontrolling interests | (777) | 300 | 288 |
Provision for income taxes | (421) | (129) | (86) |
Net income (loss) | (1,198) | 171 | 202 |
Net income (loss) attributable to noncontrolling interests | (64) | (96) | (58) |
Net income (loss) attributable to KBR | $ (1,262) | $ 75 | $ 144 |
Earnings Per Share [Abstract] | |||
Basic | $ (8.66) | $ 0.50 | $ 0.97 |
Diluted | $ (8.66) | $ 0.50 | $ 0.97 |
Basic weighted average common shares outstanding | 146 | 148 | 148 |
Diluted weighted average common shares outstanding | 146 | 149 | 149 |
Cash dividends declared per share | $ 0.32 | $ 0.24 | $ 0.28 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (1,198) | $ 171 | $ 202 |
Net cumulative translation adjustments (CTA)[Abstract] | |||
Foreign currency translation adjustments, net of tax | (71) | (35) | (11) |
Reclassification adjustment included in net income | 1 | 1 | (7) |
Foreign currency translation adjustments, net of tax of $(4), $(27) and $8 | (70) | (34) | (18) |
Actuarial losses, net of tax | (104) | (122) | (77) |
Reclassification adjustment included in net income | 42 | 35 | 27 |
Pension and post-retirement benefits, net of taxes of $(10), $(18) and $(14) | (62) | (87) | (50) |
Unrealized gains (losses) on derivatives: | |||
Changes in fair value of derivatives, net of tax | (2) | 1 | 2 |
Reclassification adjustment included in net income | 0 | (1) | 4 |
Changes in fair value of derivatives, net of taxes of $0, $0 and $(1) | (2) | 0 | 6 |
Other comprehensive income (loss), net of tax | (134) | (121) | (62) |
Comprehensive income | (1,332) | 50 | 140 |
Less: Comprehensive income attributable to noncontrolling interests | (66) | (105) | (58) |
Comprehensive income attributable to KBR | $ (1,398) | $ (55) | $ 82 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | |||
CTA, taxes | $ (4) | $ (27) | $ 8 |
Pension liability adjustment, taxes | (10) | (18) | (14) |
Net unrealized gain (loss) on derivatives, tax | $ 0 | $ 0 | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and equivalents | $ 970 | $ 1,106 |
Receivables: | ||
Accounts receivable, net of allowance for bad debts of $19 and $18 | 847 | 1,056 |
Costs in Excess of Billings, Current | 490 | 399 |
Current deferred income tax asset | 90 | 168 |
Other current assets | 147 | 196 |
Total current assets | 2,544 | 2,925 |
Property, plant, and equipment, net of accumulated depreciation of $385 and $397 (including net PPE of $57 and $67 owned by a variable interest entity) | 247 | 415 |
Goodwill | 324 | 772 |
Intangible assets, net of accumulated amortization of $96 million and $112 million | 41 | 85 |
Equity in and advances to related companies | 151 | 156 |
Noncurrent deferred income tax asset | 174 | 344 |
Noncurrent unbilled receivables on uncompleted contracts | 570 | 628 |
Other noncurrent assets | 148 | 113 |
Total assets | 4,199 | 5,438 |
Current liabilities: | ||
Accounts payable | 742 | 747 |
Due to former parent, net | 56 | 105 |
Billings in Excess of Costs, Current | 531 | 401 |
Accrued salaries, wages and benefits | 197 | 235 |
Current Maturities of Non Recourse Long Term Debt | 10 | 10 |
Other current liabilities | 488 | 409 |
Total current liabilities | 2,024 | 1,907 |
Pension obligations | 502 | 477 |
Noncurrent employee compensation and benefits | 112 | 114 |
Other noncurrent liabilities | 229 | 267 |
Noncurrent income tax payable | 69 | 70 |
Noncurrent deferred tax liability | 170 | 86 |
Nonrecourse project debt | 63 | 78 |
Deferred Revenue, Noncurrent | 95 | 0 |
Total liabilities | 3,264 | 2,999 |
KBR Shareholders' equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 300,000,000 shares authorized, 174,448,399 and 173,924,509 shares issued, and 144,837,281 and 148,195,208 shares outstanding | 0 | 0 |
Paid-in capital in excess of par (PIC) | 2,091 | 2,065 |
Accumulated other comprehensive loss (AOCL) | (876) | (740) |
Retained earnings | 439 | 1,748 |
Treasury stock, 29,611,118 shares and 25,729,301 shares, at cost | (712) | (610) |
Total KBR shareholders' equity | 942 | 2,463 |
Noncontrolling interests (NCI) | (7) | (24) |
Total shareholders' equity | 935 | 2,439 |
Total liabilities and shareholders' equity | $ 4,199 | $ 5,438 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables: | ||
Allowance for doubtful debts | $ 19 | $ 18 |
Property, plant, and equipment: | ||
Accumulated depreciation | 385 | 397 |
PP&E owned by a VIE, net | 57 | 67 |
Accumulated amortization | $ 96 | $ 112 |
KBR Shareholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 174,448,399 | 173,924,509 |
Common stock, shares outstanding | 144,837,281 | 148,195,208 |
Treasury stock, shares | 29,611,118 | 25,729,301 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity $ in Millions | USD ($) |
Beginning Balance at Dec. 31, 2011 | $ 2,442 |
Statement of Stockholders' Equity [Abstract] | |
Deferred tax and foreign currency adjustments to PIC | 17 |
Stock-based compensation | 16 |
Common stock issued upon exercise of stock options | 7 |
Tax benefit increase (decrease) related to stock-based plans | 4 |
Dividends declared to shareholders | (42) |
Adjustments pursuant to tax sharing agreement with former parent | 0 |
Repurchases of common stock | (40) |
Issuance of ESPP shares | 3 |
Distributions to noncontrolling interests | (36) |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 |
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 |
Other NCI Activity | 0 |
Comprehensive income | 140 |
Ending Balance at Dec. 31, 2012 | 2,511 |
Statement of Stockholders' Equity [Abstract] | |
Deferred tax and foreign currency adjustments to PIC | 0 |
Stock-based compensation | 16 |
Common stock issued upon exercise of stock options | 6 |
Tax benefit increase (decrease) related to stock-based plans | 0 |
Dividends declared to shareholders | (36) |
Adjustments pursuant to tax sharing agreement with former parent | 7 |
Repurchases of common stock | (7) |
Issuance of ESPP shares | 4 |
Distributions to noncontrolling interests | (109) |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 9 |
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 2 |
Other NCI Activity | 0 |
Comprehensive income | 50 |
Ending Balance at Dec. 31, 2013 | 2,439 |
Statement of Stockholders' Equity [Abstract] | |
Deferred tax and foreign currency adjustments to PIC | 0 |
Stock-based compensation | 22 |
Common stock issued upon exercise of stock options | 4 |
Tax benefit increase (decrease) related to stock-based plans | 0 |
Dividends declared to shareholders | (47) |
Adjustments pursuant to tax sharing agreement with former parent | 0 |
Repurchases of common stock | (106) |
Issuance of ESPP shares | 4 |
Distributions to noncontrolling interests | (61) |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 10 |
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 |
Other NCI Activity | 2 |
Comprehensive income | (1,332) |
Ending Balance at Dec. 31, 2014 | $ 935 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (1,198) | $ 171 | $ 202 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 72 | 68 | 65 |
Equity in earnings of unconsolidated affiliates | (163) | (137) | (151) |
Deferred income tax (benefit) expense | 353 | 18 | 18 |
Loss (gain) on disposition of assets, net | (7) | (2) | (32) |
Other Noncash Income | (24) | 0 | 0 |
Impairment of goodwill | (446) | 0 | (178) |
Other Asset Impairment Charges | 171 | 0 | 2 |
Other | 11 | 21 | 35 |
Changes in operating assets and liabilities: | |||
Receivables | 170 | 0 | (9) |
Costs in Excess of Billings | (107) | 140 | (239) |
Accounts payable | (10) | 49 | (14) |
Billings in Excess of Costs | 144 | (20) | (93) |
Accrued salaries, wages and benefits | (29) | (14) | (8) |
Reserve for loss on uncompleted contracts | 57 | 53 | 34 |
Collection (repayment) of advances from (to) unconsolidated affiliates, net | 13 | 14 | (6) |
Distributions of earnings from unconsolidated affiliates | 249 | 180 | 108 |
Payment on performance bonds | 0 | (108) | 0 |
Income taxes payable | 14 | (51) | (62) |
Pension funding | (48) | (54) | (30) |
Retainage payable | (16) | (35) | (70) |
Subcontractor advances | (3) | 20 | 131 |
Other, net | 75 | (16) | 83 |
Total cash flows provided by operating activities | 170 | 297 | 142 |
Cash flows from investing activities: | |||
Acquisition or disposition of businesses, net of cash acquired | 0 | 10 | (3) |
Capital expenditures | (53) | (78) | (75) |
Proceeds from sale of assets and investments | 9 | 6 | 127 |
(Investment in) / return equity method joint ventures | 0 | 0 | 3 |
Total cash flows provided by (used in) investing activities | (44) | (62) | 52 |
Cash flows from financing activities: | |||
Payments to reacquire common stock | (106) | (7) | (40) |
Proceeds from Noncontrolling Interests | 10 | 9 | 0 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (61) | (109) | (36) |
Payments of dividends to shareholders | (47) | (36) | (37) |
Net proceeds from issuance of stock | 4 | 6 | 7 |
Excess tax benefits from stock-based compensation | 0 | 0 | 4 |
Payments on short-term and long-term borrowings | (11) | (14) | (14) |
Proceeds from (Payments for) Other Financing Activities | 1 | 3 | 0 |
Total cash flows used in financing activities | (210) | (148) | (116) |
Effect of exchange rate changes on cash | (52) | (34) | 9 |
Increase (decrease) in cash and equivalents | (136) | 53 | 87 |
Cash and equivalents at beginning of period | 1,106 | 1,053 | 966 |
Cash and equivalents at end of period | 970 | 1,106 | 1,053 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 11 | 12 | 15 |
Cash paid for income taxes (net of refunds) | 37 | 127 | 81 |
Noncash operating activities | |||
Other assets change for payments made on our behalf by former parent | 0 | (219) | 22 |
Other liabilities change for payments made on our behalf by former parent | 0 | 219 | (22) |
Noncash financing activities | |||
Dividends Payable | $ 12 | $ 12 | $ 12 |
Description Of Company And Sign
Description Of Company And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of Company and Significant Accounting Policies | Description of Company and Significant Accounting Policies KBR, Inc., a Delaware corporation, was formed on March 21, 2006 and is headquartered in Houston, Texas. KBR, Inc. and its wholly owned and majority-owned subsidiaries (collectively referred to herein as "KBR", "the Company", "we", "us" or "our") is an engineering, procurement, construction and services company supporting the global hydrocarbons and international government services market segments. Our capabilities include engineering, procurement, construction, construction management, technology licensing, operations, maintenance and other support services to a diverse customer base, including international and national oil and gas companies, independent refiners, petrochemical producers, fertilizer producers, manufacturers and domestic and foreign governments. Principles of consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 10 to our consolidated financial statements for further discussion on our equity investments and variable interest entities. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated statement of operations, consolidated balance sheets and the consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. Use of estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method and cost method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of variable interest entities • valuation of stock-based compensation In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying consolidated financial statements. Revenue Recognition - Engineering and construction contracts Contracts. Revenues from contracts to provide construction, engineering, design or similar services is reported on the percentage-of-completion method of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 605 - Revenue Recognition. Depending on the type of job, progress is generally measured based upon man-hours expended to total man-hours estimated at completion, costs incurred to total estimated costs at completion or physical progress. All known or anticipated losses on contracts are provided for in the period they become evident. Certain claims and change orders that are in the process of negotiation with customers for additional work or changes in the scope of work are included in contract value when collection is deemed probable and the value can be reliably estimated. Our work is performed under three general types of contracts: fixed-price contracts, cost-reimbursable plus a fee or mark-up contracts and "hybrid" contracts containing both cost-reimbursable and fixed-price scopes. All contract types may be modified by cost escalation provisions or other risk sharing mechanisms and incentive and penalty provisions. During the term of a project, the contract or components of the contract may be renegotiated to include characteristics of a different contract type. When we negotiate any type of contract, we frequently are required to accomplish the scope of work and meet certain performance criteria within a specified time frame; otherwise, we could be assessed damages, which in some cases are agreed-upon liquidated damages. We include an estimate of liquidated damages in our estimates of total contract value when it is deemed probable that they will be assessed. Profits are recorded based upon the product of estimated contract profit at completion times the current percentage-complete for the contract. Fixed-price contracts, which include our unit-rate contracts (essentially a fixed-price contract with the only variable being units of work performed) where we are paid fixed amounts based on the final number of units of work performed, are for a fixed sum to cover all costs and any profit element for a defined scope of work. Fixed-price contracts entail more risk to us because they require us to predetermine the work to be performed, the project execution schedule and the costs associated with the work. As a result, we may benefit or be penalized for cost variations from our original estimates. However, these contract prices may be adjusted for changes in scope of work, new or changing laws and regulations and other negotiated events. Cost-reimbursable contracts include contracts where the price is variable based upon our actual costs incurred for time and materials and for reimbursable labor hour contracts. Profit on cost-reimbursable contracts may be a fixed amount, a mark-up applied to costs incurred or a combination of the two. Cost-reimbursable contracts are generally less risky than fixed-price contracts because the owner/customer retains many of the project risks. Our cost-reimbursable contracts include the following: • Cost-plus and Time and Material contracts - These are contracts under which we are reimbursed for allowable or otherwise defined costs incurred plus a fee or mark-up. The contracts may also include incentives for various performance criteria, including quality, timeliness, ingenuity, safety and cost-effectiveness. In addition, our costs are generally subject to review by our clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract. • Target-price contracts - These are contracts under which we are reimbursed for costs plus a fee consisting of two parts: (1) a fixed amount, which does not vary with performance, but may be at risk when a target price is exceeded; and (2) an award amount based on the performance and cost-effectiveness of the project. As a result, we are generally able to recover cost overruns on these contracts from actual damages for late delivery or the failure to meet certain performance criteria. Target-price contracts also generally provide for sharing of costs in excess of or savings for costs less than the target. In some contracts, we may agree to share cost overruns in excess of our fee, which could result in a loss on the project. Unapproved Change Orders and Claims. Revenues and gross profit on contracts can be significantly affected by change orders and claims that may not be approved by the customer until the later stages of a contract or subsequent to the date a project is completed. If it is not probable that the costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. For certain contracts where it is probable that the costs will be recovered through a change order, total estimated contract revenue is increased by the lesser of the amounts management expects to recover or the costs expected to be incurred. When estimating the amount of total gross profit or loss on a contract, we include unapproved change orders or claims to our clients as adjustments to revenues. We include claims to vendors, subcontractors and others as adjustments to total estimated costs. Claims against others are recorded up to the extent of the lesser of the amounts management expects to recover or to costs incurred and include no profit until such time as they are finalized and approved. See Note 5 to our consolidated financial statements for our discussion on unapproved change orders and claims. Revenue Recognition - Government contracts Some of the services provided to the United States ("U.S.") government are performed on cost-reimbursable contracts. Generally, these contracts may contain base fees (a fixed profit percentage applied to our actual costs to complete the work). Revenues are recognized at the time services are performed, and such revenues include base fees, actual direct project costs incurred and an allocation of indirect costs. Indirect costs are applied using rates approved by our government customers. The general, administrative and overhead cost reimbursement rates are estimated periodically in accordance with government contract accounting regulations and may change based on actual costs incurred or based upon the volume of work performed. Revenues are reduced for our estimate of costs that either are in dispute with our customer or have been identified as potentially unallowable pursuant to the terms of the contract or the federal acquisition regulations. Accounting for multiple deliverables contracts For contracts containing multiple deliverables, we analyze each activity within the contract to ensure that we adhere to the separation guidelines for revenue arrangements with multiple deliverables in accordance with FASB ASC 605. Gross Profit Gross profit represents business segment revenues less the cost of revenues, which includes business segment overhead costs directly attributable to the business segment. Cost estimates Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs, included in cost of revenues, include charges for such items as facilities, engineering, project management, quality control, bid and proposals and procurement. General and administrative expenses Our general and administrative expenses represent corporate overhead expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and corporate accounting, human resources and various other corporate functions. Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 3 to our consolidated financial statements for our discussion on cash and equivalents. Accounts Receivable Accounts receivable are recorded at the invoiced amount based on contracted prices. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. We establish an allowance for doubtful accounts based on the assessment of the clients’ willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. See Note 4 to our consolidated financial statements for our discussion on accounts receivable. Retainage, included in accounts receivable, represents amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our retainage receivable excludes amounts withheld by the U.S. government on certain contracts. See Note 14 to our consolidated financial statements for our discussion on U.S. government receivables. Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts, Including Claims, and Advanced Billings and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of accounting. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date using the percentage-of-completion method over billings to date on certain contracts. Billings in excess of costs and estimated earnings on uncompleted contracts represents the excess of billings to date over the amount of contract costs and profits recognized to date using the percentage-of-completion method on certain contracts. With the exception of claims and change orders that we are in the process of negotiating with customers, unbilled receivables are usually billed during normal billing processes following achievement of the contractual requirements. See Note 5 to our consolidated financial statements for our discussion on CIE and BIE. Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7 to our consolidated financial statements for our discussion on property, plant and equipment. Goodwill Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, we are required to test goodwill for impairment on an annual basis and more frequently when negative conditions or other triggering events arise. We test goodwill for impairment annually as of October 1. In accordance with ASC 350 - Intangibles - Goodwill and Other, we conduct our goodwill impairment testing at the reporting unit level. See Note 8 for our discussion on our annual impairment test. Our October 1, 2014 annual impairment test for goodwill was a quantitative analysis using a two-step process that involves comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying value of a reporting unit exceeds its fair value, we perform the second step of the goodwill impairment test to measure the amount of goodwill impairment loss to be recorded, as necessary. The second step compares the implied fair value of the reporting unit's goodwill to the carrying value, if any, of that goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. The fair values of reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). Intangible assets Our intangible assets are related to various licenses, trade names, patents, technology and related processes. Except for an $11 million indefinite lived trade name, which we do not amortize, the costs of our intangible assets are generally amortized over their estimated useful lives up to 25 years . The method of amortization reflects the expected realization pattern of the economic benefits relevant to the intangible assets, or if we are unable to determine the expected realization pattern reliably, they are amortized using the straight-line method. We also have intangible assets related to trade names, client relationships and non-compete agreements which are associated with acquisitions we have completed and are generally amortized over a three-to ten-year period on a straight-line basis. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 8 to our consolidated financial statements for our discussion on intangible assets. Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control of, an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually and whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 10 to our consolidated financial statements for our discussion on equity method investments. Where we are unable to exercise significant influence over the investee, or when our investment balance is reduced to zero from our proportionate share of losses, the investments are accounted for under the cost method. Under the cost method, investments are carried at cost and adjusted only for other-than-temporary declines in fair value, distributions of earnings, or additional investments. Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 15 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. Income taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 13 to our consolidated financial statements for our discussion on income taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results. We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year. We recognize the effect of income tax positions only if it is more-likely-than-not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company records potential interest and penalties related to unrecognized tax benefits in income tax expense. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome. See Note 12 for our discussion on income taxes. Derivative instruments We enter into derivative financial transactions to hedge existing or forecasted exposures to changing foreign currency exchange rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives at fair value on the balance sheet. Derivatives that are not accounted for as hedges under ASC 815 - Derivatives and Hedging, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a hedge under ASC 815, changes in the fair value of derivatives are recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a designated hedge's change in fair value is recognized in earnings. See Note 20 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within "Other non-operating income (expense)" on our consolidated statements of operations. Concentration of credit risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues (which are generally not collateralized). A significant percentage of revenues is generated from transactions with Chevron Corporation ("Chevron") which is derived primarily from our E&C business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented. The following tables present summarized data related to our transactions with Chevron. Revenues from major customers: Years ended December 31, Dollars in millions 2014 2013 2012 Chevron revenues $ 1,069 $ 1,859 $ 2,302 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2014 2013 2012 Chevron revenues percentage 17 % 26 % 30 % Chevron receivables percentage 9 % 13 % 17 % Noncontrolling interest Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements. Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in "accumulated other comprehensive loss" on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in “accumulated other comprehensive loss” on our consolidated balance sheets. Variable Interest Entities The majority of our joint ventures are variable interest entities ("VIEs"). We account for VIEs in accordance with ASC 810 - Consolidation which requires the consolidation of VIEs in which a company has both the power to direct the acti |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We provide a wide range of services and the management of our business is heavily focused on major projects within each of our reportable segments. At any given time, a relatively few number of projects and joint ventures represent a substantial part of our operations. Our reportable segments follow the same accounting policies as those described in Note 1 to our consolidated financial statements. Business Reorganization On December 11, 2014, KBR announced our reorganization into three new business segments to focus on core strengths in technology and consulting, engineering and construction, and government services. We also announced our intent to exit businesses that are no longer a part of our future strategic focus and have organized those businesses into our Non-strategic Business segment. Each new business segment reflects a reportable segment led by a separate business segment President who reports directly to our chief operating decision maker ("CODM"). Our new business segments are described below. Technology & Consulting ("T&C"). Our T&C business segment combines proprietary KBR technologies, knowledge-based services and our three specialist consulting brands, Granherne, Energo and GVA under a single customer-facing global business. This segment provides licensed technologies and consulting services to the oil and gas value chain, from wellhead to crude refining and through to specialty chemicals production. In addition to sharing many of the same customers, these brands share the approach of early and continuous customer involvement to deliver an optimal solution to meet the customer’s objectives through early planning and scope definition, advanced technologies, and project lifecycle support. Engineering & Construction ("E&C"). Our E&C business segment leverages our operational and technical excellence as a global provider of engineering, procurement, construction ("EPC"), commissioning and maintenance services for oil and gas, refining, petrochemicals, and chemicals customers. E&C is managed on a geographic basis in order to facilitate close proximity to our customers and our people, while utilizing a consistent global execution strategy. Government Services ("GS"). Our GS business segment focuses on long-term service contracts with annuity streams particularly for the United Kingdom, Australian and United States governments. Non-strategic Business. On December 11, 2014, we also announced that we would exit businesses that are no longer a part of our future strategic focus. Our Non-strategic Business segment represents these operations or activities which we intend to either sell to third parties or exit upon completion of existing contracts. Other. Our Other business segment includes our corporate expenses and general and administrative expenses not allocated to the business segments above, and any future activities that do not individually meet the criteria for segment presentation. Reportable segment performance is evaluated by our CODM using reportable segment gross profit (loss) which is defined as business segment revenues less the cost of revenues, and includes business segment overhead directly attributable to the segment. We have revised our business segment reporting to reflect our current management approach and recast prior periods to conform to the current business segment presentation. The following table presents revenues, gross profit, equity in earnings of unconsolidated affiliates, capital expenditures, and depreciation and amortization by reporting segment. See Note 8 to our consolidated financial statements for more information on goodwill and intangible assets. Operations by Reportable Segment Years ended December 31, Dollars in millions 2014 2013 2012 Revenues: Technology & Consulting $ 353 $ 330 $ 296 Engineering & Construction 4,584 4,956 5,616 Government Services 638 931 1,105 Other — — — Subtotal 5,575 6,217 7,017 Non-strategic Business 791 997 753 Total $ 6,366 $ 7,214 $ 7,770 Gross profit (loss): Technology & Consulting $ 53 $ 69 $ 80 Engineering & Construction 141 263 450 Government Services (32 ) 90 83 Other — — — Subtotal 162 422 613 Non-strategic Business (227 ) (5 ) (95 ) Total $ (65 ) $ 417 $ 518 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — Engineering & Construction 90 76 79 Government Services 73 61 67 Other — — — Subtotal 163 137 146 Non-strategic Business — — 5 Total $ 163 $ 137 $ 151 Impairment of goodwill (Note 8): Technology & Consulting $ — $ — $ — Engineering & Construction (293 ) — — Government Services — — — Other — — — Subtotal (293 ) — — Non-strategic Business (153 ) — (178 ) Total $ (446 ) $ — $ (178 ) Asset impairment and restructuring charges (Note 9): Technology & Consulting $ (2 ) $ — $ — Engineering & Construction (24 ) — — Government Services (5 ) — — Other (149 ) — (2 ) Subtotal (180 ) — (2 ) Non-strategic Business (34 ) — — Total $ (214 ) $ — $ (2 ) Segment operating income (loss): Technology & Consulting $ 49 $ 70 $ 80 Engineering & Construction (114 ) 278 499 Government Services 25 145 146 Other (312 ) (181 ) (155 ) Subtotal (352 ) 312 570 Non-strategic Business (442 ) (4 ) (271 ) Total $ (794 ) $ 308 $ 299 Years ended December 31, Dollars in millions 2014 2013 2012 Capital expenditures: Technology & Consulting $ — $ — $ 1 Engineering & Construction 19 10 8 Government Services — 1 1 Other 34 67 65 Subtotal 53 78 75 Non-strategic Business — — — Total $ 53 $ 78 $ 75 Depreciation and amortization: Technology & Consulting $ 2 $ 2 $ 2 Engineering & Construction 23 23 23 Government Services 8 9 9 Other 33 27 22 Subtotal 66 61 56 Non-strategic Business 6 7 9 Total $ 72 $ 68 $ 65 Changes in Estimates There are many factors, including, but not limited to, the availability and costs of resources, including labor, materials and equipment; productivity and weather, that can affect the accuracy of our cost estimates and ultimately our future profitability. In the past, we have realized both lower and higher than expected margins and have incurred losses as a result of unforeseen changes in our project costs. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. However, historically, our estimates have been reasonably dependable regarding the recognition of revenues and profit on percentage of completion contracts. Significant changes in estimates periodically result in the recognition of losses on a particular contract. We generally believe that the recognition of a contract as a loss contract is a significant change in estimate. Activity in our reserve for estimated losses on uncompleted contracts was as follows: Years ended December 31, Dollars in millions 2014 2013 2012 Balance at January 1, $ 109 $ 56 $ 22 Changes in estimates on loss projects 177 106 53 Change due to progress on loss projects (127 ) (53 ) (19 ) Balance at December 31, $ 159 $ 109 $ 56 During 2014 and 2013 , our seven Canadian pipe fabrication and module assembly projects, included in our E&C business segment, recognized revisions in our estimate of costs and an impact to gross loss or profit of $72 million and $132 million , respectively. All seven of these projects were in loss positions as of December 31, 2014 and 2013. Included in the reserve for estimated losses on uncompleted contracts is $53 million and $97 million at December 31, 2014 and 2013 , respectively, related to these projects. We are in the process of negotiating closure on four of these projects and the remaining three projects should be completed during 2015. Our estimates of revenues and costs at completion on these projects have been, and may continue to be, impacted by our performance, the performance of our subcontractors, the Canadian labor market, the nature, complexity and ultimate quantities of modules and types of individual components in the modules, our contractual arrangements and our ability to accumulate information and negotiate final contract settlements with our customers. Our estimated losses as of December 31, 2014 on these projects represent our best estimate based on current information. Actual results could differ from the estimates we have used to account for these projects as of December 31, 2014 . During 2014 , we recognized revisions in our estimate of costs to complete three projects in our power business included in our Non-strategic Business segment. Such revisions resulted in a decrease in gross profit of $173 million for the year ended December 31, 2014 and resulted in two of these projects becoming loss projects. The reserve for estimated losses on uncompleted contracts at December 31, 2014 includes $80 million related to these two power projects. Our estimate of revenues and costs at completion for these power projects have been, and may continue to be, impacted by our performance, the performance of our subcontractors, and the U.S. labor market. Our estimated profit and losses as of December 31, 2014 on these power projects represent our best estimate based on current information. Actual results could differ from the estimates we have used to account for these power projects as of December 31, 2014 . Balance Sheet Information by Reportable Segment Within KBR, not all assets are associated with specific business segments. Those assets specific to business segments include receivables, inventories, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other." December 31, Dollars in millions 2014 2013 Total assets: Technology & Consulting $ 173 $ 224 Engineering & Construction 2,020 2,308 Government Services 532 693 Other 1,304 1,838 Subtotal 4,029 5,063 Non-strategic Business 170 375 Total $ 4,199 $ 5,438 Goodwill (Note 8): Technology & Consulting $ 31 $ 31 Engineering & Construction 233 528 Government Services 60 60 Other — — Subtotal 324 619 Non-strategic Business — 153 Total $ 324 $ 772 Equity in and advances to related companies (Note 10): Technology & Consulting $ — $ — Engineering & Construction 119 99 Government Services 31 53 Other — — Subtotal 150 152 Non-strategic Business 1 4 Total $ 151 $ 156 Selected Geographic Information Revenues by country are determined based on the location of services provided. Long-lived assets by country are determined based on the location of tangible assets. Years ended December 31, Dollars in millions 2014 2013 2012 Revenues: United States $ 2,324 $ 2,470 $ 2,118 Australia 1,380 1,768 1,767 Africa 251 593 1,610 Middle East 707 913 1,013 Europe 624 575 582 Canada 752 687 431 Other countries 328 208 249 Total $ 6,366 $ 7,214 $ 7,770 December 31, Dollars in millions 2014 2013 Property, plant & equipment, net: United States $ 115 $ 272 United Kingdom 68 83 Other countries 64 60 Total $ 247 $ 415 |
Cash and Equivalents (Notes)
Cash and Equivalents (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and equivalents include cash balances held by our wholly-owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture cash balances are limited to joint venture activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors of the respective joint ventures. We expect to use joint venture cash for project costs and distributions of earnings related to joint venture operations. However, some of the earnings distributions may be paid to other KBR entities where the cash can be used for general corporate needs. The components of our cash and equivalents balance are as follows: December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 121 $ 330 Time deposits 481 79 560 Cash and equivalents held in joint ventures 71 9 80 Total $ 761 $ 209 $ 970 December 31, 2013 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 197 $ 215 $ 412 Time deposits 478 140 618 Cash and equivalents held in joint ventures 67 9 76 Total $ 742 $ 364 $ 1,106 (a) Includes deposits held in non-U.S. operating accounts (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country Our international cash balances are primarily held in the United Kingdom ("U.K.") and Australia. In December 2014, we implemented a foreign cash repatriation strategy for which we have provided cumulative income taxes on certain foreign earnings which provides us, if necessary, the ability to repatriate approximately an additional $370 million of international cash without recognizing additional tax expense. The remaining international cash balances associated with past foreign earnings which we currently intend to permanently reinvest in our foreign entities are not available for domestic use. See Note 13 for further discussion on our income taxes. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows: December 31, 2014 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 51 $ 51 Engineering & Construction 45 538 $ 583 Government Services 5 84 $ 89 Other — 3 $ 3 Subtotal 50 676 $ 726 Non-strategic Business 48 73 $ 121 Total $ 98 $ 749 $ 847 December 31, 2013 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 63 $ 63 Engineering & Construction 52 725 $ 777 Government Services 3 85 $ 88 Other — 1 $ 1 Subtotal 55 874 $ 929 Non-strategic Business 45 82 $ 127 Total $ 100 $ 956 $ 1,056 In addition, noncurrent retainage receivable included in "other assets" on our consolidated balance sheets was $14 million as of December 31, 2014 and 2013 , primarily in our Non-strategic Business segment. |
Percentage-Of-Completion Contra
Percentage-Of-Completion Contracts | 12 Months Ended |
Dec. 31, 2014 | |
Contractors [Abstract] | |
Percentage-of-Completion Contracts | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Our CIE balances by business segment are as follows: December 31, Dollars in millions 2014 2013 Technology & Consulting $ 38 $ 37 Engineering & Construction 357 230 Government Services 73 123 Subtotal 468 390 Non-strategic Business 22 9 Total $ 490 $ 399 Our BIE balances by business segment are as follows: December 31, Dollars in millions 2014 2013 Technology & Consulting $ 56 $ 53 Engineering & Construction 212 139 Government Services 93 88 Subtotal 361 280 Non-strategic Business 170 121 Total $ 531 $ 401 Unapproved change orders and claims The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows: December 31, Dollars in millions 2014 2013 Amounts included in project estimates-at-completion at January 1, $ 115 $ 167 Changes in estimates-at-completion 87 109 Approved (171 ) (161 ) Amounts included in project estimates-at-completion at December 31, $ 31 $ 115 Amounts recorded in revenues on a percentage-of-completion basis at December 31, $ 24 $ 93 In 2014 , approved change orders reflect approvals on an air quality project in the U.S. and an EPC contract for a gas fired electric power generation project in the U.S. and a construction project in our E&C business segment for which the client routinely issues scope changes which are subsequently followed with a change order. Included in our 2013 estimated project revenues are increases related to the construction project in our E&C business segment mentioned above. The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims on a percentage-of-complete basis was $78 million as of December 31, 2014 and $58 million as of December 31, 2013 on a project in our E&C business segment. Liquidated damages Some of our engineering and construction contracts have schedule dates and performance obligations that if not met could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract. It is possible that liquidated damages related to several projects totaling $12 million at December 31, 2014 and $10 million at December 31, 2013 could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance we have concluded these liquidated damages are not probable, therefore they have not been recognized. Advances We may receive customer advances in the normal course of business, most of which are applied to invoices usually within one to three months. In addition, we may hold advances from customers to assist us in financing project activities, including subcontractor costs. Included in BIE on our consolidated balance sheets as of December 31, 2014 and 2013, were $0 and $50 million , respectively, of finance-related advances, related to our E&C business segment. |
Claims and Accounts Receivable
Claims and Accounts Receivable (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Claims Receivable | Claims and Accounts Receivable The components of our claims and accounts receivable account balance are as follows: December 31, Dollars in millions 2014 2013 Engineering & Construction $ 425 $ 401 Government Services 145 227 Total $ 570 $ 628 Our E&C business segment's claims and accounts receivable includes $401 million related to our EPC 1 arbitration. We expect the signed final judgment of $465 million from the original confirmation of the 2009 arbitration award to be recovered from Petróleos Mexicanos ("PEMEX") Exploration and Production ("PEP") which includes approximately $106 million as recovery for our payment in 2013 of performance bonds and interest. The judgment also requires that each party pay value added tax on the amounts each has been ordered to pay. See Note 15 to our consolidated financial statements under PEMEX and PEP Arbitration for further discussion. The remaining balance is related to a construction project for which we are actively pursuing the recovery of these receivables. Our GS business segment's claims and accounts receivable reflects claims for costs incurred under various U.S. government contracts. The decrease from 2013 to 2014 is primarily due to the unexpected conclusion of matters related to dining facilities and questioned costs on the Restore Iraqi Oil ("RIO") contract. See "Other Matters" in Note 14 to our consolidated financial statements for further discussion on our U.S. government claims. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of our property, plant and equipment balance are as follows: Estimated Lives in Years December 31, Dollars in millions 2014 2013 Land N/A $ 13 $ 19 Buildings and property improvements 5-44 198 213 Equipment and other 3-25 421 580 Total 632 812 Less accumulated depreciation (385 ) (397 ) Net property, plant and equipment $ 247 $ 415 See Note 9 to our consolidated financial statements for discussion on asset impairment. Depreciation expense was $61 million , $54 million , and $50 million for the years ended December 31, 2014 , 2013 and 2012 , respectively. In November 2012, the joint venture in which we held a 50% interest sold the office building in which we lease office space for our corporate headquarters and offices in Houston, Texas, for $175 million . Since we continue to lease the office building from the new owner under essentially the same lease terms, the $44 million pre-tax gain on the sale was deferred and is being amortized using the straight-line method over the remaining term of the lease, which expires in 2030. We recognized $3 million of amortization of deferred gain on our consolidated statements of operations at December 31, 2014 and December 31, 2013 , respectively, and less than $1 million at December 31, 2012 . The current portion of the deferred gain of $3 million at December 31, 2014 and 2013 , respectively, is recorded in "other current liabilities" on our consolidated balance sheets and the noncurrent deferred gain of $37 million and $39 million at December 31, 2014 and 2013 , respectively, is recorded in "other liabilities" on our consolidated balance sheets. In November 2012, we closed on the sale of our former campus for approximately $42 million in cash. The sale resulted in a $27 million pre-tax gain on disposal of assets in "gain on disposition of assets" in our consolidated statements of operations. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Balance as of January 1, 2013: Gross goodwill $ 31 $ 534 $ 61 $ — $ 626 $ 331 $ 957 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of January 1, 2013 $ 31 $ 534 $ 61 $ — $ 626 $ 153 $ 779 Goodwill written off related to sale of reporting unit $ — $ (3 ) $ — $ — $ (3 ) $ — $ (3 ) Net foreign exchange difference $ — $ (3 ) $ (1 ) $ — $ (4 ) $ — $ (4 ) Balances as of December 31, 2013: Gross goodwill $ 31 $ 528 $ 60 $ — $ 619 $ 331 $ 950 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of December 31, 2013 $ 31 $ 528 $ 60 $ — $ 619 $ 153 $ 772 Impairment loss $ — $ (293 ) $ — $ — $ (293 ) $ (153 ) $ (446 ) Net foreign exchange difference $ — $ (2 ) $ — $ — $ (2 ) $ — $ (2 ) Balance as of December 31, 2014: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2014 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 Goodwill Impairment In connection with preparing for our reorganization on December 11, 2014, we decided we would no longer bid on certain types of work and we would also exit certain non-strategic businesses resulting in a significant reduction of our forecasts of future cash flows for three of our previous reporting units. As a result, we recorded a noncash goodwill impairment charge of $446 million in "impairment of goodwill" on our consolidated statements of operations. We perform our annual goodwill impairment test as of October 1 of each year. The first step in performing a goodwill impairment test is to identify potential impairment by comparing the estimated fair value of the reporting unit to its carrying value. At the annual testing date of October 1, 2014 (prior to our reorganization), the result of the first step of our goodwill impairment test indicated the carrying values of three of our previous reporting units exceeded their fair values. As a result, we performed the second step of the goodwill impairment test in order to measure the amount of the potential impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill to the carrying value of that goodwill. Step two requires significant unobservable inputs (Level 3 fair value measurements) in the calculation. We determine the implied fair value of goodwill in the same manner as we use in determining the amount of goodwill to be recognized in a business combination. Applying this methodology, we assigned the fair value of the respective reporting unit estimated in step one to all the assets and liabilities of the respective reporting unit. The implied fair value of the reporting unit's goodwill is the excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities. The result of our step two test indicated that the carrying value of each of the three reporting unit's goodwill exceeded the implied fair value of their goodwill. In step two, the fair values of the reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). Under the market approach, we estimate fair value by applying earnings and revenue market multiples to a reporting unit’s operating performance for the trailing twelve-month period. The income approach estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we use estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. On December 31, 2014, we reorganized our reporting units in conjunction with our business segment reorganization. As a result, we performed an additional impairment test immediately before and after this change in reporting units, utilizing the same methodology as our October 1st test and no indication of impairment was identified. In 2012 in connection with our goodwill impairment review, we recognized a noncash goodwill impairment charge of $178 million related to one of our previous reporting units. The charge was primarily the result of our determination that both the actual and expected income and cash flows for the reporting unit were substantially lower than previous forecasts due to losses from ongoing projects acquired as part of the acquisition of Roberts & Schaefer Company which is now included in our Non-strategic Business segment. Intangible Assets Intangible assets are comprised of customer relationships, trade names, licensing agreements and other. The cost and accumulated amortization of our intangible assets were as follows: December 31, Dollars in millions 2014 2013 Intangibles not subject to amortization $ 11 $ 11 Intangibles subject to amortization 126 186 Total intangibles 137 197 Accumulated amortization of intangibles (96 ) (112 ) Net intangibles $ 41 $ 85 Intangibles that are not subject to amortization are reviewed annually for impairment or more often if events or circumstances change that would create a triggering event. Intangibles subject to amortization are amortized over their estimated useful lives of up to 25 years . Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. In conjunction with our annual goodwill impairment analysis, we performed an undiscounted cash flow test which indicated impairment of our trade names and customer relationship intangibles related to the acquisition of the Roberts & Schaefer Company discussed above. See Note 9 to our consolidated financial statements for discussion on impairment of intangible assets. Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2014 2013 2012 Intangibles amortization expense $ 11 $ 14 $ 15 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2015 $ 4 2016 $ 3 2017 $ 3 2018 $ 3 2019 $ 3 Beyond 2019 $ 14 |
Asset Impairment and Restructur
Asset Impairment and Restructuring (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Asset Impairment and Restructuring Information related to asset impairment and restructuring charges resulting from our December 11, 2014 strategic reorganization is presented below: Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Dollars in millions Asset impairment Enterprise resource planning $ — $ — $ — $ 135 $ 135 $ — $ 135 Intangible assets — — — — — 31 31 Property, plant & equipment — 1 — 4 5 — 5 Subtotal $ — $ 1 $ — $ 139 $ 140 $ 31 $ 171 Restructuring charges Severance $ 2 $ 14 $ 3 $ 10 $ 29 $ — $ 29 Lease termination — 9 2 — 11 3 14 Subtotal 2 23 5 10 40 3 43 Total $ 2 $ 24 $ 5 $ 149 $ 180 $ 34 $ 214 In December 2014, we abandoned further implementation of our new enterprise resource planning ("ERP") project. As a result within our Other segment, we recognized an expense of $135 million associated with previously capitalized costs of $165 million . We recorded a noncash intangible asset impairment charge of $31 million within our Non-strategic Business segment in "asset impairment and restructuring charges" on our consolidated statements of operations at December 31, 2014 . See Note 8 for additional information on intangibles. As a result of the restructuring previously discussed, we terminated certain operating leases and recognized an early termination charge of $14 million within each business segment. We also recognized a $5 million impairment charge related to leasehold improvements on the terminated leases and other property. We evaluated our remaining long-lived assets, which consisted mainly of property, plant and equipment and did not identify any additional impairment. On December 11, 2014 we announced that in connection with our long-term strategic reorganization, we would terminate 1,000 employees. These employees are eligible for separation benefits upon their termination and the dates have occurred or are expected to occur through June 2015 . As of the year ended December 31, 2014 , we recorded $29 million of one-time charges associated with these employee terminations based on the fair value of the termination benefits. The charge was included in "asset impairment and restructuring charges" in our consolidated statement of operations. During the fourth quarter of 2014 , we paid $8 million of benefits associated with the employee terminations. There were no other changes to the liability. At December 31, 2014 , "other current liabilities" on our consolidated balance sheets includes the $21 million unpaid portion of the separation benefits. |
Equity Method Investments And V
Equity Method Investments And Variable Interest Entities | 12 Months Ended |
Dec. 31, 2014 | |
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 partnership, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are also variable interest entities ("VIEs"). The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2014 2013 Balance at January 1, $ 156 $ 217 Equity in earnings of unconsolidated affiliates 163 137 Dividends received (a) (249 ) (180 ) Advances (13 ) (14 ) Foreign currency translation adjustments (1 ) (5 ) Other — 1 Balance at December 31, before reclassification 56 156 Reclassification of excess distributions (a) 95 — Balance at December 31, $ 151 $ 156 (a) During the third quarter of 2014, we received cash dividends of $102 million in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as “deferred income from unconsolidated affiliates” on our consolidated balance sheets which will be reduced as we recognize future equity in earnings on this investment. During 2014, we recognized $7 million of the excess dividends. Related Party Transactions We often provide engineering, construction management and other services as a subcontractor to the joint ventures in which we participate. The amounts included in our revenues represent revenues from services we provide directly to the joint ventures. As of the years ended December 31, 2014 , 2013 , and 2012 , our revenues included $351 million , $253 million and $145 million , respectively, related to services we provided to our joint ventures, primarily those in our E&C business segment. Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2014 and 2013 are as follows: December 31, Dollars in millions 2014 2013 Accounts receivable, net of allowance for doubtful accounts $ 7 $ 6 Costs and estimated earnings in excess of billings on uncompleted contracts $ 2 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 21 $ 24 Our related party accounts payable for both periods were immaterial. Equity Method Investments Mantenimiento Marino de Mexico, S. de R.L. de C.V. ("MMM"). MMM is a joint venture formed under a Partners Agreement related to the contract with PEMEX. We determined that MMM was not a variable interest entity. The MMM joint venture was set up under Mexican maritime law in order to hold navigation permits to operate in Mexican waters. The scope of the business is to render services for maintenance, repair and restoration of offshore oil and gas platforms and provisions of quartering in the territorial waters of Mexico. KBR holds a 50% interest in the MMM joint venture. Results from MMM are included in our E&C business segment. Summarized financial information Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheets December 31, Dollars in millions 2014 2013 Current assets $ 3,098 $ 4,114 Noncurrent assets 4,069 4,222 Total assets $ 7,167 $ 8,336 Current liabilities $ 2,969 $ 3,679 Noncurrent liabilities 4,090 4,400 Total liabilities $ 7,059 $ 8,079 Statements of Operations Years ended December 31, Dollars in millions 2014 2013 2012 Revenues $ 6,439 $ 4,800 $ 3,442 Operating income $ 659 $ 660 $ 777 Net income $ 419 $ 355 $ 363 Unconsolidated Variable Interest Entities The following summarizes the total assets and total liabilities as reflected in our consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture, reduced for any unearned revenues on the projects. December 31, 2014 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 17 $ 118 $ 17 Ichthys LNG project $ 49 $ 35 $ 49 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia project $ 42 $ 2 $ 26 Dollars in millions December 31, 2013 Total assets Total liabilities Aspire Defence project $ 20 $ 2 Ichthys LNG project $ 1 $ 18 U.K. Road projects $ 34 $ 8 EBIC Ammonia project $ 47 $ 2 Aspire Defence project. In April 2006, Aspire Defence, a joint venture between KBR and two financial investors, was awarded a privately financed project contract by the U.K. Ministry of Defence ("MoD") to upgrade and provide a range of services to the British Army’s garrisons at Aldershot and around Salisbury Plain in the U.K. In addition to a package of ongoing services to be delivered over 35 years , the project includes a nine -year construction program to improve soldiers’ single living, technical and administrative accommodations, along with leisure and recreational facilities. Aspire Defence manages the existing properties and is responsible for design, refurbishment, construction and integration of new and modernized facilities. We indirectly own a 45% interest in Aspire Defence, the project company that is the holder of the 35-year concession contract. In addition, we own a 50% interest in each of two joint ventures that provide the construction and the related support services to Aspire Defence. Our financial and performance guarantees are joint and several, subject to certain limitations, with our joint venture partners. The project is funded through equity and subordinated debt provided by the project sponsors and the issuance of publicly held senior bonds which are nonrecourse to us. The entities we hold an interest in are VIEs; however, we are not the primary beneficiary of these entities. We account for our interests in each of the entities using the equity method of accounting. As of December 31, 2014 , included in our GS segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $17 million and $118 million , respectively. Our maximum exposure to loss of $17 million indicated in the table above is limited to our equity interest and amounts payable to us for services provided to the entity as of December 31, 2014 . Our maximum exposure to construction and operating joint venture losses is limited to our proportionate share of any amounts required to fund future losses incurred by those entities under their respective contracts with the project company. Ichthys LNG project. In January 2012, we became involved in an agreement to provide EPC services to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia (“Ichthys LNG project”). The project is being executed using two joint ventures, which are VIEs, in which we own a 30% equity interest. We account for our investments using the equity method of accounting. At December 31, 2014 , included in our E&C segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $49 million and $35 million , respectively. Our maximum exposure to loss of $49 million indicated in the table above is limited to our equity interest and amounts payable to us for services provided to the entity as of December 31, 2014 . In addition, the joint venture executes a project that has a lump sum component, and we have an exposure to losses if the project exceeds the lump sum component to the extent of our ownership percentage in the joint venture. U.K. Road projects. We are involved in four privately financed projects, executed through joint ventures, to design, build, operate and maintain roadways for certain government agencies in the U.K. We have a 25% ownership interest in each of these joint ventures and account for them using the equity method of accounting. The joint ventures have obtained financing through third parties that is nonrecourse to the joint venture partners. These joint ventures are VIEs; however, we are not the primary beneficiary. At December 31, 2014 , included in our GS business segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $34 million and $11 million , respectively. Our maximum exposure to loss represents our equity investments in these ventures. EBIC Ammonia project. We have an investment in a development corporation that has an indirect interest in the Egypt Basic Industries Corporation (“EBIC”) ammonia plant project located in Egypt. We performed the EPC work for the project and completed our operations and maintenance services for the facility in the first half of 2012. We own 65% of this development corporation and consolidate it for financial reporting purposes. The development corporation owns a 25% ownership interest in a company that consolidates the ammonia plant which is considered a VIE. The development corporation accounts for its investment in the company using the equity method of accounting. The VIE is funded through debt and equity. Indebtedness of EBIC under its debt agreement is nonrecourse to us. We are not the primary beneficiary of the VIE. As of December 31, 2014 , included in our GS business segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $42 million and $2 million , respectively. Our maximum exposure to loss of $26 million indicated in the table above is limited to our proportionate share of the equity investment and amounts payable to us for services provided to the entity as of December 31, 2014 . Consolidated Variable Interest Entities We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 31, 2014 Total assets Total liabilities Gorgon LNG project $ 282 $ 309 Escravos Gas-to-Liquids project $ 23 $ 36 Fasttrax Limited project $ 83 $ 81 Dollars in millions December 31, 2013 Total assets Total liabilities Gorgon LNG project $ 446 $ 476 Escravos Gas-to-Liquids project $ 43 $ 72 Fasttrax Limited project $ 96 $ 98 Gorgon LNG project. We have a 30% ownership in an Australian joint venture which was awarded a contract in 2005 for FEED and in 2009 for EPC management ("EPCm") services to construct an LNG plant. The joint venture is considered a VIE, and, because we are the primary beneficiary, we consolidate this joint venture for financial reporting purposes. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Escravos Gas-to-Liquids (“GTL”) project. During 2005, we formed a joint venture to engineer and construct a gas monetization facility in Escravos, Nigeria, which was completed in 2014. We own a 50% equity interest in the joint venture and determined that we are the primary beneficiary; accordingly, we have consolidated the joint venture for financial reporting purposes. There are no consolidated assets that collateralize the joint venture’s obligations. However, at December 31, 2014 and 2013 , the joint venture had approximately $8 million of cash, which mainly relate to advanced billings in connection with the joint venture’s obligations under the EPC contract that is expected to be fully closed out in 2015. Fasttrax Limited project. In December 2001, the Fasttrax Joint Venture (the “JV”) was created to provide to the U.K. MoD a fleet of 91 new heavy equipment transporters (“HETs”) capable of carrying a 72-ton Challenger II tank. The JV owns, operates and maintains the HET fleet and provides heavy equipment transportation services to the British Army. The purchase of the assets was completed in 2004, and the operating and service contracts related to the assets extend through 2023. The JV’s entity structure includes a parent entity and its 100% owned subsidiary, Fasttrax Ltd (the “SPV”). KBR and its partner each own a 50% interest in the parent entity, which is considered a VIE. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Therefore, we consolidate this VIE. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan totaling approximately £84.9 million (approximately $120 million at the exchange rate on the date of the transaction). The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The bridge loan of approximately £12.2 million (approximately $17 million at the exchange rate on the date of the transaction) was replaced when the joint venture partners funded their equity and subordinated debt contributions in 2005. Assets collateralizing the JV’s senior bonds include cash and equivalents of $23 million and net property, plant and equipment of approximately $57 million as of December 31, 2014 . See Note 12 to our consolidated financial statements for further details regarding our nonrecourse project-finance debt of this VIE consolidated by KBR, including the total amount of debt outstanding at December 31, 2014 . |
Pension and Postretirement Plan
Pension and Postretirement Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | Pension Plans We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income and/or discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $72 million in 2014 , $78 million in 2013 and $81 million in 2012 . In addition, we have two frozen defined benefit plans in the U.S. and one frozen plan in the U.K. and participate in multi-employer plans in Canada. Our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of age, years of service or compensation. Benefit obligations and plan assets We used a December 31 measurement date for all plans in 2014 and 2013 . Plan assets, expenses and obligations for retirement plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2014 2013 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 79 $ 2,048 $ 91 $ 1,862 Service cost — 2 — 2 Interest cost 3 90 3 79 Foreign currency exchange rate changes — (123 ) — 37 Actuarial (gain) loss 11 191 (5 ) 129 Other — (4 ) — (2 ) Benefits paid (6 ) (66 ) (10 ) (59 ) Projected benefit obligations at end of period $ 87 $ 2,138 $ 79 $ 2,048 Change in plan assets: Fair value of plan assets at beginning of period $ 70 $ 1,580 $ 71 $ 1,491 Actual return on plan assets — 194 8 65 Employer contributions 2 46 1 53 Foreign currency exchange rate changes — (98 ) — 33 Benefits paid (6 ) (66 ) (10 ) (59 ) Other — (4 ) — (3 ) Fair value of plan assets at end of period $ 66 $ 1,652 $ 70 $ 1,580 Funded status $ (21 ) $ (486 ) $ (9 ) $ (468 ) United States Int’l United States Int’l Dollars in millions 2014 2013 Amounts recognized on the consolidated balance sheets Other current liabilities (a) $ (5 ) $ — $ — $ — Pension obligations (16 ) (486 ) (9 ) (468 ) Total $ (21 ) $ (486 ) $ (9 ) $ (468 ) (a) In 2014, we reclassified the pension liability related to one of our terminated U.S. pension plans to "other current liabilities" on our consolidated balance sheets as we expect to settle the pension obligation within the next 12 months. Net periodic cost United States Int’l United States Int’l United States Int’l Dollars in millions 2014 2013 2012 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 3 90 3 79 3 81 Expected return on plan assets (4 ) (102 ) (5 ) (86 ) (4 ) (93 ) Settlements/curtailments 1 — 2 — — — Recognized actuarial loss 3 39 2 33 2 25 Net periodic benefit cost $ 3 $ 29 $ 2 $ 28 $ 1 $ 15 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2014 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2014 2013 Unrecognized actuarial loss, net of tax of $9 and $222, and $10 and $211, respectively $ 31 $ 639 $ 18 $ 590 Total in accumulated other comprehensive loss $ 31 $ 639 $ 18 $ 590 Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2015 are as follows: Dollars in millions United States International Actuarial loss $ 3 $ 35 Total $ 3 $ 35 Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2014 2013 2012 Discount rate 3.38 % 4.45 % 3.09 % 4.50 % 3.74 % 4.90 % Expected return on plan assets 5.28 % 6.45 % 7.00 % 6.15 % 7.00 % 6.60 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2014 2013 Discount rate 2.89 % 3.65 % 3.38 % 4.45 % Assumed long-term rates of return on plan assets and discount rates for estimating benefit obligations vary for the different plans according to the local economic conditions. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans’ asset mix. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. Because all plans have been frozen, there is no rate of compensation increase. Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have a wide diversification of asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range. The target asset allocation for our U.S. and International plans for 2015 is as follows: Asset Allocation 2015 Targeted United States Int'l Cash and cash equivalents 22 % — % Equity funds and securities 47 % 19 % Fixed income funds and securities 31 % 56 % Hedge funds — % 8 % Real estate funds — % 5 % Other — % 12 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2015 and 2014 , by asset class, are as follows: International Plans 2015 Targeted 2014 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities — % 51 % — % 51 % Fixed income funds and securities — % 100 % — % 100 % Hedge funds — % 20 % — % 20 % Real estate funds — % 10 % — % 10 % Other — % 35 % — % 35 % The range of targeted asset allocations for our U.S. plans for 2015 and 2014 , by asset class, are as follows: Domestic Plans 2015 Targeted 2014 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents 22 % 22 % 25 % 25 % Equity funds, securities and other 47 % 47 % 39 % 51 % Fixed income funds and securities 31 % 31 % 24 % 36 % ASC 820 - Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a description of the primary valuation methodologies and classification used for assets measured at fair value. Fair values of our Level 1 assets are based on observable inputs such as unadjusted quoted prices for identical assets or liabilities in active markets. These consist of securities valued at the closing price reported on the active market on which the individual securities are traded and funds which have readily determinable or published net asset values and may be liquidated in the near term without restrictions. Fair values of our Level 2 assets are based on inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices that are in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Our Level 2 assets include securities that are observable directly or indirectly as described above or funds which are valued using net asset values provided by the investment managers and may be liquidated at net asset value within 90 days without restrictions. Fair values of our Level 3 assets are based on unobservable inputs in which there is little or no market data and require us to develop our own assumptions. Such assets are generally valued using net asset values provided by the investment managers, have inherent liquidity restrictions that may affect our ability to sell the investment at its net asset value within 90 days or reflect funds with lagged valuation data. A summary of total investments for KBR’s pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2014 United States plan assets Equity funds $ 28 $ — $ 28 $ — Equity securities — — — — Fixed income funds 23 23 — Government bonds — — — — Corporate bonds — — — — Cash and cash equivalents 15 — 15 — Total United States plan assets $ 66 $ — $ 66 $ — International plan assets Equity funds $ 406 $ 143 $ 218 $ 45 Equity securities 56 53 3 — Fixed income funds 706 287 354 65 Hedge funds 167 — 57 110 Real estate funds 83 — 41 42 Other funds 173 — 105 68 Cash and cash equivalents 60 60 — — Other 1 — — 1 Total international plan assets $ 1,652 $ 543 $ 778 $ 331 Total plan assets at December 31, 2014 $ 1,718 $ 543 $ 844 $ 331 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2013 United States plan assets Equity funds $ 15 $ 10 $ 5 $ — Equity securities 17 16 1 — Fixed income funds 8 8 — — Government bonds 4 — 4 — Corporate bonds 8 — 8 — Cash and cash equivalents 18 — 18 — Total United States plan assets $ 70 $ 34 $ 36 $ — International plan assets Equity funds $ 378 $ 116 $ 261 $ 1 Equity securities 51 50 1 — Fixed income funds 768 400 335 33 Hedge funds 130 — 25 105 Real estate funds 69 — 36 33 Other funds 120 — 69 51 Cash and cash equivalents 50 50 — — Other 14 7 — 7 Total international plan assets $ 1,580 $ 623 $ 727 $ 230 Total plan assets at December 31, 2013 $ 1,650 $ 657 $ 763 $ 230 The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Level 3 fair value measurement rollforward Dollars in millions Total Equity Funds Fixed Income Funds Hedge Funds Real Estate Funds Other Funds Other International plan assets Balance as of December 31, 2012 $ 219 $ — $ 44 $ 88 $ 27 $ 53 $ 7 Return on assets held at end of year 20 — (1 ) 15 3 3 — Return on assets sold during the year 3 — 3 — — — — Purchases, sales and settlements (15 ) 1 (12 ) — 2 (6 ) — Foreign exchange impact 3 — (1 ) 2 1 1 — Balance as of December 31, 2013 $ 230 $ 1 $ 33 $ 105 $ 33 $ 51 $ 7 Return on assets held at end of year 33 4 4 10 8 7 — Return on assets sold during the year 3 — — — 3 — — Purchases, sales and settlements, net 115 42 32 33 — 14 (6 ) Transfers to Level 2 (a) (30 ) — — (30 ) — — — Foreign exchange impact (20 ) (2 ) (4 ) (8 ) (2 ) (4 ) — Balance as of December 31, 2014 $ 331 $ 45 $ 65 $ 110 $ 42 $ 68 $ 1 (a) During 2014, liquidity restrictions on some of our investments in hedge funds lapsed. As a result, these investments were transferred to Level 2 as they may be redeemed at their net asset value within 90 days. Expected cash flows Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plans reside. In certain countries the funding requirements are mandatory while in other countries they are discretionary. We expect to contribute $43 million to our international pension plan in 2015 . Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2015 $ 23 $ 63 2016 $ 4 $ 65 2017 $ 4 $ 66 2018 $ 4 $ 68 2019 $ 4 $ 70 Years 2020 – 2024 $ 21 $ 375 Multiemployer Pension Plans We participate in multiemployer plans in Canada. Generally, the plans provide defined benefits to substantially all employees covered by collective bargain agreements. Under the terms of these agreements, our obligations are discharged upon plan contributions and are not subject to any assessments for unfunded liabilities upon our termination or withdrawal. Our aggregate contributions to these plans were $29 million in 2014 , $22 million in 2013 and $10 million in 2012 . At December 31, 2014 , none of the plans in which we participate is individually significant to our consolidated financial statements. Deferred Compensation Plans Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. Except for $9 million of mutual funds included in "other assets" on our consolidated balance sheets designated for a portion of our employee deferral plan, the plan is unfunded. The mutual funds are carried at fair value which includes readily determinable or published net asset values and may be liquidated in the near term without restrictions. The following table presents our obligations under our employee deferred compensation plan included in "employee compensation and benefits" in our consolidated balance sheets. December 31, Dollars in millions 2014 2013 Deferred compensation plans obligations $ 71 $ 66 |
Debt And Other Credit Facilitie
Debt And Other Credit Facilities | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt and Other Credit Facilities | Debt and Other Credit Facilities Credit Agreement On December 2, 2011, we entered into a $1 billion , five-year unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of international banks. The Credit Agreement is available for cash borrowings and the issuance of letters of credit related to general corporate needs. The Credit Agreement expires in December 2016 ; however, given that projects generally require letters of credit that extend beyond one year in length, we will likely need to enter into a new or amended credit agreement no later than 2015. Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (1) the London interbank offered rate (“LIBOR”) plus an applicable margin of 1.50% to 1.75%, or (2) a base rate plus an applicable margin of 0.50% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters, as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an issuance fee of 0.15% of the face amount of a letter of credit. KBR also pays a commitment fee of 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement. As of December 31, 2014 , there were $174 million in letters of credit and no cash borrowings outstanding. The Credit Agreement contains customary covenants which include financial covenants requiring maintenance of a ratio of consolidated debt to consolidated EBITDA not greater than 3.5 to 1 and a minimum consolidated net worth, as defined in the Credit Agreement. In anticipation of our reorganization, in December 2014 we obtained an amendment to the Credit Agreement which reset the minimum consolidated net worth to $1.5 billion plus 50% of consolidated net income for each quarter beginning December 31, 2014 and 100% of any increase in shareholders’ equity attributable to the sale of equity interests. At December 31, 2014 , we were in compliance with our financial covenants. The Credit Agreement contains a number of other covenants restricting, among other things, our ability to incur additional liens and indebtedness, enter into asset sales, repurchase our equity shares and make certain types of investments. Our subsidiaries are restricted from incurring indebtedness, except if such indebtedness relates to purchase money obligations, capitalized leases, refinancing or renewals secured by liens upon or in property acquired, constructed or improved in an aggregate principal amount not to exceed $200 million at any time outstanding. Additionally, our subsidiaries may incur unsecured indebtedness not to exceed $200 million in aggregate outstanding principal amount at any time. We are also permitted to repurchase our equity shares, provided that no such repurchases shall be made from proceeds borrowed under the Credit Agreement, and that the aggregate purchase price and dividends paid after December 2, 2011, does not exceed the Distribution Cap (equal to the sum of $750 million plus the lesser of (1) $400 million and (2) the amount received by us in connection with the arbitration and subsequent litigation of the PEP contracts as discussed in Note 15 to our consolidated financial statements). At December 31, 2014 , the remaining availability under the Distribution Cap was approximately $468 million . Letters of credit, surety bonds and guarantees In connection with certain projects, we are required to provide letters of credit, surety bonds or guarantees to our customers. Letters of credit are provided to certain customers and counterparties in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers and future funding commitments. We have approximately $2.1 billion in committed and uncommitted lines of credit to support the issuance of letters of credit and as of December 31, 2014 , we have utilized $628 million of our present capacity under lines of credit. Surety bonds are also posted under the terms of certain contracts to guarantee our performance. The letters of credit outstanding included $174 million issued under our Credit Agreement and $454 million issued under uncommitted bank lines as of December 31, 2014 . Of the letters of credit outstanding under our Credit Agreement, approximately $3 million letters of credit have expiry dates beyond the maturity date of the Credit Agreement. Of the total letters of credit outstanding, $246 million relate to our joint venture operations where the letters of credit are posted using our capacity to support our pro-rata share of obligations under various contracts executed by joint ventures of which we are a member. As the need arises, future projects will be supported by letters of credit issued under our Credit Agreement or other lines of credit arranged on a bilateral, syndicated or other basis. We believe we have adequate letter of credit capacity under our Credit Agreement and bilateral lines of credit to support our operations for the next twelve months. Nonrecourse Project Debt Fasttrax Limited, a joint venture in which we indirectly own a 50% equity interest with an unrelated partner, was awarded a concession contract in 2001 with the U.K. MoD to provide a Heavy Equipment Transporter Service to the British Army. See Note 10 to our consolidated financial statements for further discussion on the joint venture. Under the terms of the arrangement, Fasttrax Limited operates and maintains 91 heavy equipment transporters (“HETs”) for a term of 22 years. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan totaling approximately £84.9 million (approximately $120 million at the exchange rate on the date of the transaction). The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The bridge loan of approximately £12.2 million (approximately $17 million at the exchange rate on the date of the transaction) was replaced when the joint venture partners funded their equity and subordinated debt contributions in 2005. The secured bonds were issued in two classes consisting of Class A 3.5% Index Linked Bonds in the amount of £56 million (approximately $79 million at the exchange rate on the date of the transaction) and Class B 5.9% Fixed Rate Bonds in the amount of £16.7 million (approximately $24 million at the exchange rate on the date of the transaction). Semi-annual payments on both classes of bonds commenced in March 2005 and will continue through maturity in 2021. The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16% over the term of the notes until maturity in 2025. Semi-annual payments on the subordinated notes commenced in March 2006. For financial reporting purposes, only our partner's portion of the subordinated notes appears in the condensed consolidated financial statements. The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2014 : Dollars in millions Payments Due 2015 $ 10 2016 $ 10 2017 $ 11 2018 $ 12 2019 $ 12 Beyond 2019 $ 18 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 United States $ (1,051 ) $ (141 ) $ (366 ) Foreign: United Kingdom 130 162 203 Australia 180 280 267 Canada (101 ) (117 ) 29 Other 65 116 155 Subtotal 274 441 654 Total $ (777 ) $ 300 $ 288 The total income taxes included in the statement of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 Provision for income taxes $ (421 ) $ (129 ) $ (86 ) Shareholders' equity, foreign currency translation adjustment 4 27 (8 ) Shareholders' equity, pension and post-retirement benefits 10 18 14 Shareholders' equity, compensation expense and other — — 5 Total income taxes $ (407 ) $ (84 ) $ (75 ) The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Balance as of December 31, 2014 Federal $ 41 $ (333 ) $ (292 ) Foreign (110 ) (11 ) (121 ) State and other 1 (9 ) (8 ) Provision for income taxes $ (68 ) $ (353 ) $ (421 ) Balance as of December 31, 2013 Federal $ (6 ) $ 17 $ 11 Foreign (109 ) (31 ) (140 ) State and other 4 (4 ) — Provision for income taxes $ (111 ) $ (18 ) $ (129 ) Balance as of December 31, 2012 Federal $ 61 $ 12 $ 73 Foreign (130 ) (42 ) (172 ) State and other 1 12 13 Provision for income taxes $ (68 ) $ (18 ) $ (86 ) The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 United Kingdom $ (22 ) $ (34 ) $ (53 ) Australia (24 ) (41 ) (40 ) Canada 6 (3 ) (7 ) Other (81 ) (62 ) (72 ) Foreign (provision) benefit for income taxes $ (121 ) $ (140 ) $ (172 ) The components of our deferred income tax provision were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 Deferred benefit $ 254 $ 48 $ 15 Tax reserves and allowances on current year activity (210 ) (39 ) (10 ) Tax reserves and allowances on beginning of year deferred balances (320 ) (9 ) 1 Unremitted foreign earnings (77 ) (5 ) (14 ) U.K. statutory rate change — (13 ) (10 ) Total deferred provision for income taxes $ (353 ) $ (18 ) $ (18 ) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 35% as a result of the following: Years ended December 31, 2014 2013 2012 U.S. statutory federal rate, expected (benefit) provision (35 )% 35 % 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (5 ) (12 ) (5 ) Noncontrolling interests (4 ) (5 ) (3 ) State and local income taxes, net of federal benefit (2 ) (1 ) — Other permanent differences, net 2 2 (16 ) Contingent liability accrual 9 7 (10 ) U.S. taxes on foreign unremitted earnings 11 2 4 Non-deductible goodwill impairment 20 — 22 Increase in valuation allowance 58 15 3 Effective tax rate on income from operations 54 % 43 % 30 % The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2014 2013 Deferred tax assets: Employee compensation and benefits $ 175 $ 176 Foreign tax credit carryforwards 233 179 Accrued foreign tax credit carryforwards 89 81 Loss carryforwards 133 118 Insurance accruals 22 25 Allowance for bad debt 10 8 Accrued liabilities 51 50 Total gross deferred tax assets 713 637 Valuation allowances (538 ) (83 ) Net deferred tax asset 175 554 Deferred tax liabilities: Construction contract accounting $ (15 ) $ (40 ) Intangibles (35 ) (49 ) Depreciation and amortization (2 ) (44 ) Unremitted foreign earnings (98 ) (19 ) Other 23 (6 ) Total gross deferred tax liabilities (127 ) (158 ) Deferred income tax asset, net $ 48 $ 396 The valuation allowance for deferred tax assets was $538 million and $83 million at December 31, 2014 and 2013 , respectively. The net change in the total valuation allowance was an increase of $455 million in 2014 and $47 million in 2013. The valuation allowance at December 31, 2014 was primarily related to U.S. federal, foreign and state net operating loss carryforwards, foreign tax credit carryforwards and other deferred tax assets that, in the judgment of management, are not more-likely-than-not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Based upon the significant level of historical taxable U.S. losses, management believes that it was not more-likely-than-not that the Company would be able to realize the benefits of the deductible differences and accordingly recognized additional valuation allowance for the year ended December 31, 2014 . The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2014 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 487 $ (484 ) $ 3 United Kingdom 126 — 126 Australia 1 (1 ) — Canada 24 (25 ) (1 ) Mexico (88 ) — (88 ) Other 36 (28 ) 8 Total $ 586 $ (538 ) $ 48 At December 31, 2014 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2014 Expiration Foreign tax credit carryforwards $ 295 2021-2023 Federal net operating loss carryforwards $ 306 2033-2034 Foreign net operating loss carryforwards $ 301 2015-2034 Foreign net operating loss carryforwards $ 73 Indefinite State net operating loss carryforwards $ 632 Various In December 2014, we implemented a foreign cash repatriation strategy for which we have provided cumulative income taxes of $98 million on certain foreign earnings which provide us, if necessary, the ability to repatriate approximately an additional $370 million of international cash without recognizing additional tax expense. In determining our foreign cash repatriation strategy and in determining whether earnings would continue to be considered permanently invested, we considered our future U.S. and non-U.S. cash needs such as 1) our anticipated foreign working capital requirements, including funding of our U.K. pension plan; 2) the expected growth opportunities across all geographical markets and; 3) our plans to invest in strategic growth opportunities that may include acquisitions around the world. The remaining international cash balances associated with past foreign earnings which we currently intend to permanently reinvest in our foreign entities are not available for domestic use. The company has not recognized an estimated deferred tax liability of approximately $320 million for undistributed earnings it continues to consider to be permanently reinvested in the foreseeable future. These undistributed earnings could be subject to additional tax if remitted, or deemed remitted, as a dividend. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2014 2013 2012 Balance at January 1 $ 68 $ 95 $ 120 Increases related to current year tax positions 13 3 6 Increases related to prior year tax positions 168 15 13 Decreases related to prior year tax positions (13 ) (36 ) (25 ) Settlements (1 ) — (11 ) Lapse of statute of limitations (5 ) (2 ) (9 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (2 ) (7 ) 1 Balance at December 31 $ 228 $ 68 $ 95 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $212 million as of December 31, 2014 . The difference between this amount and the amounts reflected in the tabular reconciliation above relates primarily to deferred income tax benefits on uncertain tax positions related to income taxes. In the next twelve months, it is reasonably possible that our uncertain tax positions could change by approximately $19 million due to the expirations of the statute of limitations. We recognize accrued interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. Our accrual for interest and penalties was $13 million and $11 million for the years ended December 31, 2014 and 2013 , respectively. During the years ended December 31, 2014 , 2013 and 2012 , we recognized net interest and penalties charges (benefits) of $1 million , $(1) million and $(6) million , respectively related to uncertain tax positions. KBR is the parent of a group of domestic companies that are members of a U.S. consolidated federal income tax return. We also file income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to examination by tax authorities for U.S. federal or state and local income tax for years before 2007 or for non-U.S. income tax for years before 2002. KBR is subject to a tax sharing agreement primarily covering periods prior to the April 2007 separation from Halliburton. The tax sharing agreement provides, in part, that KBR will be responsible for any audit settlements directly attributable to its business activity for periods prior to its separation from our former parent. As of December 31, 2014 and 2013 , we have recorded a $56 million and $105 million in "payable to our former parent" on our consolidated balance sheets, respectively, for tax related items under the tax sharing agreement. Of the $56 million , approximately $19 million is not due until receipt by KBR of a future foreign tax credit or refund from the IRS. |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 31, 2014 | |
United States Government Contract Work [Abstract] | |
U.S. Government Matters | U.S. Government Matters We provide services to various U.S. governmental agencies, which include the U.S. Department of Defense (“DoD”) and the Department of State. We may have disagreements or experience performance issues on our U.S. government contracts. When performance issues arise under any of these contracts, the government retains the right to pursue various remedies, including challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the government. Between 2002 and 2011 we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We continue to support the U.S. government around the world under the LogCAP IV contract as well as under other contracts. We have been in the process of closeout of the LogCAP III contract since 2011, and we expect the closeout process to continue through at least 2018. As a result of our work under LogCAP III, there are multiple claims and disputes pending between us and the government, all of which need to be resolved to close the contracts. The closeout process includes resolving objections raised by the government through a billing dispute process referred to as Form 1s and Memorandums for Record ("MFRs") and resolving results from government audits. We continue to work with the government to resolve these issues and are engaged in efforts to reach mutually acceptable resolution of these outstanding matters. However, for certain of these matters, we have filed claims with the Armed Services Board of Contract Appeals ("ASBCA") or the U.S. Court of Federal Claims ("COFC"). We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor, vendor resolution and litigation costs as we resolve the open matters. At this time, we cannot determine the timing or net amounts to be collected or paid to close out these contracts. Form 1s The government has issued Form 1s questioning or objecting to costs we billed to them. We believe the amounts we have invoiced the customer are in compliance with our contract terms; however, we continue to evaluate our ability to recover these amounts from our customer as new information becomes known. A summary of our Form 1s received and amounts associated with our Form 1s is as follows: December 31, December 31, Dollars in millions 2014 2013 Form 1s issued by the government and outstanding (a) $ 188 $ 274 Amounts withheld by government (included in the Form 1s amount above) (b) 96 137 Amounts withheld from subcontractors by us 32 50 Claims loss accruals (c) 29 74 (a) Included in the amounts shown is $56 million related to our Private Security matter discussed below in which KBR was granted full recovery of the amounts claimed. See discussion below. (b) Recorded in "claims and accounts receivable" on our consolidated balance sheets. We believe these amounts are probable of collection. (c) Recorded as a reduction to "claims and accounts receivable" and in "other liabilities" on our consolidated balance sheets. At this time, we believe the likelihood we would incur a loss related to this matter in excess of the loss accruals we have recorded is remote. The year over year reduction of amounts on the table above is attributable to the resolution and conclusion on three Form 1s and associated matters we reached with the U.S. government in 2014. Summarized below are some of the details associated with individual Form 1s as part of the total explained above. Private Security. Starting in February 2007, we received a series of Form 1s from the Defense Contract Audit Agency ("DCAA") informing us of the government's intent to deny reimbursement to us under the LogCAP III contract for amounts related to the use of private security contractors ("PSCs") by KBR and a subcontractor in connection with its work for KBR providing dining facility services in Iraq between 2003 and 2006. The government challenged $56 million in billings. The government had previously paid $11 million and has withheld payments of $45 million , which as of December 31, 2014 we have recorded as due from the government related to this matter in "claims and accounts receivable" on our consolidated balance sheets. On June 16, 2014, we received a decision from the ASBCA which agreed with KBR's position that the LogCAP III contract did not prohibit the use of PSCs to provide force protection to KBR or subcontractor personnel, that there was a need for force protection and that the costs were reasonable. The ASBCA also found that the Army breached its obligation to provide force protection. Accordingly, we believe that we are entitled to reimbursement by the Army for the amounts charged by our subcontractors, even if they incurred costs for PSCs. The Army has appealed. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore we have not accrued any loss provisions related to this matter. Containers. In June 2005, the DCAA questioned billings on costs associated with providing containerized housing for soldiers and supporting civilian personnel in Iraq. The Defense Contract Management Agency ("DCMA") recommended that payment for the billings be withheld pending receipt of additional explanation or documentation to support the subcontract costs. The Form 1 was issued for $51 million in billings. Of this amount, the government had previously paid $25 million and has withheld payments of $26 million , which as of December 31, 2014 , we have recorded in "claims and accounts receivable" on our consolidated balance sheets. Included in "other liabilities" on our consolidated balance sheets is $30 million of payments withheld from subcontractors related to pay-when-paid contractual terms. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have withheld from subcontractors and the loss accruals we have recorded is remote. There are three related actions stemming from the DCMA's action to disallow and withhold funds. First, in April 2008, we filed a counterclaim in arbitration against our LogCAP III subcontractor, First Kuwaiti Trading Company, to recover the amounts we paid to the subcontractor for containerized housing if we should lose the contract dispute with the government over the allowability of the container claims. Those claims are still pending. Second, during the first quarter of 2011, we filed a complaint before the ASBCA to contest the Form 1s and to recover the amounts withheld from us by the government. At the request of the government, that complaint was dismissed without prejudice in January 2013 so that the government could pursue its False Claims Act ("FCA") suit described below. We are free to re-file the complaint in the future. Third, this matter is also the subject of a separate claim filed by the Department of Justice ("DOJ") for alleged violation of the FCA as discussed further below under the heading “Investigations, Qui Tams and Litigation.” CONCAP III . From February 2009 through September 2010, we received Form 1s from the DCAA disapproving billed costs related to work performed under our CONCAP III contract with the U.S. Navy to provide emergency construction services primarily to government facilities damaged by Hurricanes Katrina and Wilma. The Form 1 was issued for $25 million in billings. The government had previously paid $15 million and has withheld payments of $10 million , which as of December 31, 2014 we have recorded as due from the government related to this matter in "claims and accounts receivable" on our consolidated balance sheets. In February 2012, the Contracting Officer rendered a Contracting Officer Final Determination (“COFD”) disallowing $15 million of direct costs. We filed an appeal with the ASBCA in June 2012. Trial was held before the ASBCA in September 2014, and post hearing briefs were filed in November 2014. We expect it will take several months before a ruling is issued on this matter. We believe we undertook adequate and reasonable steps to ensure that proper bidding procedures were followed and the amounts billed to the government were reasonable and not in violation of the Federal Acquisition Regulations ("FAR") and that the ASBCA will rule in our favor. As of December 31, 2014 , we have accrued our estimate of probable loss related to an unfavorable settlement of this matter recorded in "other liabilities" on our consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Other. The government has issued Form 1s for other matters questioning $56 million of billed costs. For these matters, the government previously paid $41 million and has withheld payment of $15 million , which we have recorded in "claims and accounts receivable" on our consolidated balance sheets. We have accrued our estimate of probable loss in "other liabilities" on our consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. We have other matters (not related to Form 1s) in dispute with the government either in the COFC or before the ASBCA. These claims represent $11 million in claimed costs primarily associated with the pass-through of subcontractor claims associated with a termination for convenience in Iraq. We have accrued $4 million as our estimate of probable loss in "other liabilities" on our consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to these matters in excess of the amounts we have accrued is remote. Audits In addition to reviews being performed by the U.S. government through the Form 1 process, the negotiation, administration and settlement of our contracts, consisting primarily of DoD contracts, are subject to audit by the DCAA, which serves in an advisory role to the DCMA. The DCMA is responsible for the administration of our contracts. The scope of these audits include, among other things, the allowability, allocability and reasonableness of incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and Cost Accounting Standards (“CAS”), compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. We attempt to resolve all issues identified in audit reports by working directly with the DCAA and the Administrative Contracting Officers ("ACOs"). As a result of these audits, there are risks that what we have claimed costs as recoverable may be assessed by the government to be unallowable. We believe our claims are in compliance with our contract terms. In some cases, we may not reach agreement with the DCAA or the ACOs regarding potentially unallowable costs which may result in our filing of claims in various courts such as the ASBCA or the COFC. We have accrued our estimate of potentially unallowable costs using a combination of specific estimates and our settlement rate experience with the government. At December 31, 2014 , we have accrued $39 million as our estimate of probable loss as a reduction to "claims and accounts receivable" and in "other liabilities" on our consolidated balance sheets. These accrued amounts are associated with years for which we have or do not have audit reports. We have received audit reports for 2004 through 2007, 2009 and 2010. We have not yet received completed audit reports for 2008, 2011 or 2012. Additionally, we have reached an agreement with the government on definitive incurred cost rates for the years 2003 through 2007 and 2009. For those years where we have received audit reports and negotiated final settlement for both direct and indirect claimed costs, we have experienced an aggregate disallowance rate of approximately 0.1% of claimed costs. For the period 2003 through 2011 we incurred claimed costs of $46 billion ; of this amount, we have reached negotiated settlement on $35 billion and have conceded $40 million . We only include amounts in revenues related to disputed and potentially unallowable costs when we determine it is probable that such costs will result in the collection of revenues. We generally do not recognize additional revenues for disputed or potentially unallowable costs for which revenues have been previously reduced until we reach agreement with the DCAA and/or the ACOs that such costs are allowable. In addition to audits of our incurred costs, the government also reviews our compliance with the CAS and the adequacy and compliance of our CAS disclosure statements. We are working with the government to resolve several outstanding alleged CAS non-compliance issues. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. First Kuwaiti Trading Company arbitration. In April 2008, First Kuwaiti Trading Company ("FKTC"), one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association of all its claims under various LogCAP III subcontracts. FKTC sought damages in the amount of $134 million . After complete hearings on all of FKTC's claims, an arbitration panel awarded $17 million and interest to FKTC for claims involving damages on lost or unreturned vehicles. In addition, we have determined that we owe FKTC $30 million in connection with other subcontracts. We had an agreement with FKTC that no damages will be paid until our counterclaim is decided, but FKTC filed a motion with the arbitration panel to compel KBR to pay all amounts outstanding. We paid FKTC $15 million in the third quarter of 2014, $4 million in the fourth quarter of 2014 and will pay $3 million on pay-when-paid terms. We believe any damages ultimately awarded to FKTC will be billable under the LogCAP III contract. Accordingly, we have accrued amounts in "accounts payable" and "other current liabilities" on our condensed consolidated balance sheets. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote. See the additional legal action with the ASBCA in the container litigation discussed above. Electrocution litigation. During 2008, a lawsuit was filed against KBR in Pittsburgh, PA, in the Allegheny County Common Pleas Court alleging that the Company was responsible for an electrical incident which resulted in the death of a soldier. This incident occurred at the Radwaniyah Palace Complex near Baghdad, Iraq. It is alleged in the suit that the electrocution incident was caused by improper electrical maintenance or other electrical work. KBR denies that its conduct was the cause of the event and denies legal responsibility. Plaintiffs are claiming unspecified damages for personal injury, death and loss of consortium by the parents. On July 13, 2012, the Court granted our motions to dismiss, concluding that the case is barred by the Political Question Doctrine and preempted by the Combatant Activities Exception to the Federal Tort Claims Act. The plaintiffs appealed to the Third Circuit Court of Appeals. In August 2013, the Third Circuit Court of Appeals issued an opinion reversing the trial court's dismissal and remanding for further discovery and legal rulings. KBR filed a petition for certiorari with the U.S. Supreme Court and on January 20, 2015, the Supreme Court denied certiorari. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood we would incur a loss related to this matter is remote. As of December 31, 2014 , no amounts have been accrued. Burn Pit litigation. From November 2008 through March 2013, KBR was served with over 50 lawsuits in various states alleging exposure to toxic materials resulting from the operation of burn pits in Iraq or Afghanistan in connection with services provided by KBR under the LogCAP III contract. Each lawsuit has multiple named plaintiffs and seeks class certification. The lawsuits primarily allege negligence, willful and wanton conduct, battery, intentional infliction of emotional harm, personal injury and failure to warn of dangerous and toxic exposures which has resulted in alleged illnesses for contractors and soldiers living and working in the bases where the pits were operated. The plaintiffs are claiming unspecified damages. All of the pending cases were removed to Federal Court and have been consolidated for multi-district litigation treatment before the U.S. Federal District Court in Baltimore, Maryland. In February 2013, the Court dismissed the case against KBR, accepting all of KBR's defense claims including the Political Question Doctrine; the Combatant Activities Exception to the Federal Tort Claims Act; and Derivative Sovereign Immunity. The plaintiffs appealed to the Fourth Circuit Court of Appeals on March 27, 2013. On March 6, 2014, the Fourth Circuit Court vacated the order of dismissal and remanded this multi-district litigation for further action, including a ruling on state tort law and its impact upon the "Contractor on the Battlefield" defenses. KBR filed a petition for certiorari with the U.S. Supreme Court and on January 20, 2015, the Supreme Court denied certiorari. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of December 31, 2014 , no amounts have been accrued. Sodium Dichromate litigation. From December 2008 through September 2009, five cases were filed in various Federal District Courts against KBR by national guardsmen and other military personnel alleging exposure to sodium dichromate at the Qarmat Ali Water Treatment Plant in Iraq in 2003. The majority of the cases were re-filed and consolidated into two cases, with one pending in the U.S. District Court for the Southern District of Texas and one pending in the U.S. District Court for the District of Oregon. A single plaintiff case was filed on November 30, 2012 in the District of Oregon Eugene Division. Collectively, the suits represent approximately 170 individual plaintiffs all of which are current and former national guardsmen or British soldiers who claim they were exposed to sodium dichromate while providing security services or escorting KBR employees who were working at the water treatment plant, claim that the defendants knew or should have known that the potentially toxic substance existed and posed a health hazard, and claim that the defendants negligently failed to protect the plaintiffs from exposure. The plaintiffs are claiming unspecified damages. The U.S. Army Corps of Engineers (“USACE”) was contractually obligated to provide a benign site free of war and environmental hazards before KBR's commencement of work on the site. KBR notified the USACE within two days after discovering the potential sodium dichromate issue and took effective measures to remediate the site. Services provided by KBR to the USACE were under the direction and control of the military and therefore, KBR believes it has adequate defenses to these claims. KBR also has asserted the Political Question Doctrine and other government contractor defenses. Additionally, studies by the U.S. government and others on the effects of exposure to the sodium dichromate contamination at the water treatment plant have found no long term harm to the soldiers. Texas Proceedings. After an interlocutory appeal under 28 U.S.C. § 1292(b) to the U.S. Court of Appeals for the Fifth Circuit on KBR's motion to dismiss regarding its "Contractor on the Battlefield" defenses, on November 7, 2013 a three judge panel of the Court returned the case to the trial court, holding the interlocutory appeal was improperly granted. We sought review by the entire court on this opinion which was denied. On January 23, 2015, the District Court issued several orders dismissing all of the plaintiffs' claims except for intentional infliction of emotional distress. On February 2, 2015, KBR filed a motion for summary judgment on this claim. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of December 31, 2014 , no amounts have been accrued. Oregon Proceedings. On November 2, 2012 in the Oregon case, a jury in the U.S. District Court for the District of Oregon issued a verdict in favor of the plaintiffs on their claims, and awarded them approximately $10 million in actual damages and $75 million in punitive damages. We filed post-verdict motions asking the court to overrule the verdict or order a new trial. On April 26, 2013, the court ruled for plaintiffs on all issues except one, reducing the total damages to $81 million which consists of $6 million in actual damages and $75 million in punitive damages. Trials for the remaining plaintiffs in Oregon will not take place until the appellate process is concluded. The court issued a final judgment on May 10, 2013, which was consistent with the previous ruling. KBR appealed the ruling. Briefing is complete and oral arguments have not yet been scheduled by the court. Additionally, five amicus curiae briefs have been filed in support of our arguments. Our basis for appeal include the trial court's denial of the Political Question Doctrine, the Combat Activities Exception in the Federal Tort Claims Act, a lack of personal jurisdiction over KBR in Oregon and numerous other legal issues stemming from the court's rulings before and during the trial. We have already filed proceedings to enforce our rights to reimbursement and payment pursuant to the FAR under the RIO contract with the USACE as referenced below. In the U.S. Court of Appeals for the Ninth Circuit, we have also filed a motion for summary reversal of the court's decision on personal jurisdiction due to a recent Supreme Court decision which supports our position that the Oregon court did not have jurisdiction in the case because KBR did not have contact with the state. The U.S. Court of Appeals for the Ninth Circuit has consolidated the motion with our pending appeal. At this time we believe the likelihood that we will ultimately incur a loss related to this matter is remote. As of December 31, 2014 , no amounts have been accrued. COFC/ASBCA Claims. During the period of time since the first litigation was filed against us, we have incurred legal defense costs that we believe are reimbursable under the related government contract. We have billed for these costs and filed claims to recover the associated costs incurred to date. In late 2012 and early 2013, we filed suits against the U.S. government in the COFC for denying indemnity in the sodium dichromate cases, for reimbursement of legal fees pursuant to our contract with the government and for breach of contract by the government for failure to provide a benign site as required by our contract. The RIO contract required KBR personnel to begin work in Iraq as soon as the invasion began in March 2003. Due to KBR's inability to procure adequate insurance coverage for this work, the Secretary of the Army approved the inclusion of an indemnification provision in the RIO Contract pursuant to Public Law 85-804. On March 7, 2014, the COFC issued a ruling on the government's motion dismissing KBR's claims on procedural grounds. The decision did not prohibit us from resubmitting the claims to the contracting officer and we promptly refiled those claims. On April 4, 2014, we submitted a supplemental certified claim to the RIO contracting officer for additional legal fees incurred in defending the sodium dichromate cases. On June 9, 2014, we filed an appeal to the ASBCA due to the contracting officer's failure to issue a final decision on claims totaling approximately $30 million . The USACE filed an answer, denying our claims. We filed a motion for judgment on the pleadings, asking the court to rule in KBR's favor on the 85-804 indemnity clause based on the admissions made by the USACE in its answer. The court has agreed to stay our other claims while we conduct limited discovery on the 85-804 indemnity. On December 23, 2014, we filed a Motion for Partial Summary Judgment asking the board to find that, based on discovery conducted to date, the sodium dichromate related incidents and litigation are within the definition of the "unusually hazardous risks" language in the 85-804 indemnity agreement. Qui tams. Of the active qui tams for which we are aware, the government has joined one of them (see DOJ FCA complaint - Iraq Subcontractor below). We believe the likelihood that we would incur a loss in the qui tams the government has not joined is remote and as of December 31, 2014 , no amounts have been accrued. Costs incurred in defending the qui tams cannot be billed to the government until those matters are successfully resolved in our favor. If successfully resolved, we can bill 80% of the costs to the government under the controlling provisions of the FAR. As of December 31, 2014 , we have incurred $10 million in legal costs to date in defending ourselves in qui tams. Barko qui tam. Relator Harry Barko was a KBR subcontracts administrator in Iraq for a year in 2004/2005. He filed a qui tam lawsuit in June 2005 in the U.S. District Court for the District of Columbia (D.C.), alleging violations of the FCA by KBR and KBR subcontractors Daoud & Partners and Eamar Combined for General Trading and Contracting. The claim was unsealed in March of 2009. Barko alleges that KBR fraudulently charged the government for the purchase of laundry facilities from Daoud, that KBR paid Daoud for the construction of a substandard man-camp, that Daoud double-billed KBR for labor, that KBR improperly awarded well-drilling subcontracts to Daoud, and that Daoud charged excessive prices for these services and did not satisfactorily complete them. Barko also alleges fraudulent charges arising out of Eamar’s well-drilling services. The DOJ investigated Barko’s allegations and elected not to intervene. KBR filed its Answer to the First Amended Complaint and a Motion for Summary Judgment. We have had a series of continuing procedural disputes over the application of KBR's attorney-client privileges for KBR's investigative process. First, on February 3, 2014, Barko filed a Motion to Compel production of privileged investigative files, which KBR opposed. On March 6, 2014, in an unprecedented opinion, the District Court granted the motion and ordered KBR to produce the records, thereafter also denying KBR’s motions to stay the order and for interlocutory appeal. On March 12, 2014, KBR filed its Petition for Mandamus with the D.C. Circuit Court, seeking an order reversing the trial court’s order of production. On June 27, 2014, the Circuit Court granted KBR's Petition and vacated the trial court's order of production. On July 28, 2014, Barko appealed the ruling and on September 2, 2014 that appeal was denied. Barko filed a petition for certiorari with the U.S. Supreme Court on November 30, 2014, and that petition was denied on January 20, 2015. Second, after remand from the first Mandamus proceeding, the District Court ordered briefing as to whether KBR waived its privilege, and after extensive briefing, on November 20, 2014, the District Court entered an order finding that KBR had impliedly waived privilege and requiring KBR to produce the same documents which had previously been the subject of the first proceeding. On December 17, 2014, the District Court issued additional orders, denying KBR's Motion for Reconsideration, request for stay and request for immediate appeal. In a separate ruling, the District Court found that some of the documents in question were not privileged at all. On December 19, 2014, KBR filed a second Petition for Mandamus and for entry of Emergency Stay Order in the D.C. Circuit Court. An Administrative Stay was granted and briefing on both the Mandamus and full stay request was ordered. The U.S. Chamber of Commerce has indicated that it will file an amicus brief in support of KBR's position. We will not know until sometime after March 2015 where the Court of Appeals will hear our Mandamus petition. While we believe it is important to protect the privileges that attached to KBR's corporate compliance process, we do not believe that the merits of the underlying claims ultimately will be impacted by a forced disclosure should that occur. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore as of December 31, 2014 we have not accrued any loss provisions related to this matter. DOJ False Claims Act complaint - Containers. In November 2012, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL, related to our settlement of delay claims by our subcontractor, FKTC, in connection with FKTC's provision of living trailers for the bed down mission in Iraq in 2003-2004. The DOJ alleges that KBR knew that FKTC had submitted inflated costs; that KBR did not verify the costs; that FKTC had contractually assumed the risk for the costs which KBR submitted to the government; that KBR concealed information about FKTC's costs from the government; that KBR claimed that an adequate price analysis had been done when in fact one had not been done; and that KBR submitted false claims for reimbursement to the government in connection with FKTC's services during the bed down mission. Our contractual dispute with the Army over this settlement has been ongoing since 2005. We believe these sums were properly billed under our contract with the Army and are not prohibited under the LogCAP III contract. We strongly contend that we followed the law and no fraud was committed. On May 6, 2013, KBR filed a motion to dismiss and in March 2014 the motion to dismiss was denied. We filed our answer on May 2, 2014 and on May 23, 2014 the government filed a Motion to Strike certain affirmative defenses. We are contesting that motion and proceeding with discovery. On September 30, 2014, the District Court granted FKTC's motion to dismiss for lack of personal jurisdiction. A scheduling conference was held on December 5, 2014. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of December 31, 2014 , no amounts have been accrued. DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL, against KBR and two former KBR subcontractors alleging that 3 former KBR employees were offered and accepted kickbacks from these subcontractors in exchange for favorable treatment in the award and performance of subcontracts to be awarded during the course of KBR's performance of the LogCAP III contract in Iraq. The complaint alleges that as a result of the kickbacks, we submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. While the suit is new, the DOJ's investigation dates back to 2004. We self-reported most of the violations and tendered credits to the government as appropriate. On April 22, 2014, we filed our answer and on May 13, 2014 the government filed a Motion to Strike certain affirmative defenses. We are contesting this motion. As of December 31, 2014 , we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter recorded in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe the likelihood that we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Other Matters Claims. We have filed claims with the government related to payments not yet received for costs incurred under various government contracts. Included in our consolidated balance sheets are claims for costs incurred under various government contracts totaling $138 million at December 31, 2014 . These claims relate to disputed costs and/or contracts where our costs have exceeded the government's funded value on the task order. We have $122 million of claims primarily from de-obligated funding on certain task orders that were also subject to Form 1s relating to certain DCAA audit issues discussed above. We believe such disputed costs will be resolved in our favor at w |
Other Commitments And Contingen
Other Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Litigation and regulatory matters related to the Company’s restatement of its 2013 annual financial statements After the Company announced it would be restating its 2013 annual financial statements, three complaints were filed in the United States District Court for the Southern District of Texas against the Company, our former chief executive officer, our current and former chief financial officers. Two of those complaints were voluntarily dismissed by the plaintiffs, and four parties moved to be appointed lead plaintiff. In September 2014, the court appointed Arkansas Public Employees Retirement System and Local 58/NECA Funds as lead plaintiffs and ordered any new cases arising from the same matters to be consolidated together as In re KBR, Inc. Securities Litigation , Master File No. 14-cv-01287. Lead plaintiffs filed an amended and consolidated complaint on October 20, 2014, adding our former chief accounting officer as a defendant. The amended complaint seeks class action status on behalf of our shareholders, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising out of the restatement of our 2013 annual financial statements and seeks undisclosed damages. The defendants intend to vigorously defend against these claims and filed a motion to dismiss the consolidated complaint for failure to plead particularized facts supporting a strong inference of scienter on the part of the individual defendants. The lead plaintiffs filed their opposition on January 23, 2015 and defendants filed their reply on February 6, 2015. Oral argument on the motion to dismiss is currently scheduled for early March 2015. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter. In addition, a shareholder derivative complaint, Butorin v. Blount et al , was filed on May 27, 2014 in the United States District Court for the Southern District of Texas on behalf of the Company naming certain current and former members of the Company's board of directors as defendants and the Company as a nominal defendant. The complaint alleges that the named directors breached their fiduciary duties by permitting the Company's internal controls to be inadequate. In August 2014, we filed a motion to dismiss the matter based on the mandatory forum selection clause in the Company's bylaws, which requires, among other things, that all shareholder derivative suits be filed in Delaware. The plaintiff filed his opposition on October 6, 2014 to which we replied on October 21, 2014. On November 3, 2014, plaintiff filed an amended complaint adding a claim for violations of Section 14 of the Securities Exchange Act of 1934 alleging that the Company's 2014 proxy statement was false and misleading. We filed a motion to dismiss the amended compliant on November 17, 2014 for the same reasons as stated in the original motion to dismiss. Plaintiff filed its response on December 8, 2014 and we replied on December 15, 2014. The motion to dismiss is still pending. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter. We have also received requests for information and a subpoena for documents from the Securities Exchange Commission ("SEC") regarding the restatement of our 2013 annual financial statements. We have been and intend to continue cooperating with the SEC. PEMEX and PEP Arbitration In 1997, we entered into a contract with PEP, a subsidiary of PEMEX, the Mexican national oil company, to build offshore platforms and treatment and reinjection facilities in the Bay of Campeche, offshore Mexico. The project, known as EPC 1, encountered significant schedule delays and increased costs due to problems with design work, late delivery and defects in equipment, increases in scope and other changes. PEP took possession of the facilities in March 2004 prior to the completion of our scope of work and without paying us for our work. We filed for arbitration with the International Chamber of Commerce ("ICC") in 2004 claiming recovery of damages of approximately $323 million . PEP subsequently filed counterclaims totaling $157 million . In December 2009, the ICC arbitration panel ruled in our favor, and we were awarded a total of approximately $351 million including legal and administrative recovery fees as well as interest. PEP was awarded approximately $6 million on counterclaims, plus interest on a portion of that sum. In connection with this award, we recognized a gain of $117 million net of tax in 2009. U.S. Proceedings. Collection efforts have involved multiple actions. On August 27, 2013, the District Court entered an order stating it would confirm the award even though it had been annulled in Mexico (see Mexico proceedings discussion below). On September 25, 2013, the District Court entered the signed final judgment of $465 million , which includes the arbitration award and approximately $106 million for performance bonds discussed below, plus interest. The judgment also requires that each party pay value added tax on the amounts each has been ordered to pay. PEP filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit on October 16, 2013 and posted $465 million cash as security for the judgment pending appeal. Oral argument on the appeal was held on November 20, 2014. The U.S. government was invited to file a brief and did so, and the parties have filed responses to the U.S. government's brief. Absent some request by the court for more briefing, the matter is ready for decision. Mexico Proceedings. PEP's multiple attempts to nullify the award in Mexico was rejected by the Mexican courts. PEP then filed an “amparo” action alleging that its constitutional rights had been violated and this action was denied by the Mexican court in October 2010. PEP then appealed to the Mexican Collegiate Court. In September 2011, the Collegiate Court ruled that PEP, by administratively rescinding the contract in 2004, deprived the arbitration panel of jurisdiction and the award was null and void. We believe the Collegiate Court's decision is contrary to Mexican law governing contract arbitration. However, we do not expect the Collegiate Court's decision to affect our ability to ultimately collect the ICC arbitration award in the U.S. due to the posting of cash as security for the judgment pending appeal. Other Proceedings. We have initiated collection proceedings to pursue our remedies in Luxembourg and under the North American Free Trade Agreement. Performance Bonds We had provided approximately $80 million in performance bonds to PEP when the project was awarded. The bonds were written by a Mexican bond company and backed by a U.S. insurance company which is indemnified by KBR. As a result of the ICC arbitration award in December 2009, the panel determined that KBR had performed on the project and recovery on the bonds by PEP was precluded. Notwithstanding, PEP filed an action in Mexico in June 2010 against the Mexican bond company to collect the bonds. On June 17, 2013, after proceedings in multiple Mexican courts, we were required to pay $108 million to the Mexican bond company. The $108 million consists of the $80 million in outstanding bonds, plus $26 million in related interest and other expenses and $2 million in legal and banking fees. Consistent with our treatment of claims, we have recorded $401 million , net of advances, in "claims and accounts receivable" on the consolidated balance sheets as we believe it is probable we will recover the amounts awarded to us, including interest and expenses and the amounts we paid on the bonds. PEP has cash posted in the U.S. and sufficient assets in Luxembourg, which we believe we will be able to attach as a result of the recognition of the ICC arbitration award. Although it is possible we could resolve and collect the amounts due from PEP in the next 12 months , we believe the timing of the collection of the award is uncertain; therefore, consistent with our prior practice, as of December 31, 2014 , we continue to classify the amount due from PEP, including the amounts paid on the performance bonds as long term. Environmental We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others: the Comprehensive Environmental Response, Compensation and Liability Act; the Resources Conservation and Recovery Act; the Clean Air Act; the Federal Water Pollution Control Act; and the Toxic Substances Control Act. In addition to federal and state laws and regulations, other countries where we do business often have numerous environmental regulatory requirements by which we must abide in the normal course of our operations. These requirements apply to our business segments where we perform construction and industrial maintenance services or operate and maintain facilities. We continue to monitor conditions at sites we own or owned and until further information is available, we are only able to estimate a possible range of remediation costs. These locations were primarily utilized for manufacturing or fabrication work and are no longer in operation. The use of these facilities created various environmental issues including deposits of metals, volatile and semi-volatile compounds and hydrocarbons impacting surface and subsurface soils and groundwater. The range of remediation costs could change depending on our ongoing site analysis and the timing and techniques used to implement remediation activities. We do not expect costs related to environmental matters will have a material adverse effect on our consolidated financial position or results of operations. Based on the information presently available to us, we have accrued approximately $1 million for the assessment and remediation costs associated with all environmental matters and we do not anticipate incurring any additional costs. We have been named as a potentially responsible party in various clean-up actions taken by federal and state agencies in the U.S. We are unable to determine whether we will ultimately be deemed responsible for any costs associated with these actions. Leases We are obligated under operating leases, principally for the use of land, offices, equipment, field facilities and warehouses. We recognize minimum rental expenses over the term of the lease. When a lease contains a fixed escalation of the minimum rent or rent holidays, we recognize the related rent expense on a straight-line basis over the lease term and record the difference between the recognized rental expense and the amounts payable under the lease as deferred lease credits. We have certain leases for office space where we receive allowances for leasehold improvements. We capitalize these leasehold improvements as property, plant and equipment and deferred lease credits. Leasehold improvements are amortized over the shorter of their economic useful lives or the lease term. Total rent expense was $158 million , $159 million and $149 million in 2014 , 2013 and 2012 , respectively. The current portion of the deferred lease credits of $3 million at December 31, 2014 and 2013 , respectively, is recorded in "other current liabilities" on our consolidated balance sheets and the noncurrent deferred lease credits of $128 million and $129 million at December 31, 2014 and 2013 , respectively, is recorded in "other liabilities" on our consolidated balance sheets. Future total rental payments on noncancelable operating leases are as follows: Dollars in millions Future rental payments (a) 2015 $ 99 2016 $ 85 2017 $ 71 2018 $ 62 2019 $ 53 Beyond 2019 $ 383 (a) Amounts presented are net of subleases. 601 Jefferson Building Lease. In November 2012, the joint venture in which we hold a 50% interest sold the 601 Jefferson building in which we lease office space in Houston, Texas. We continue to lease the building from the new owner under the same lease agreement and terms, except for the elimination of an early termination and contraction option, for which we were paid an $11 million modification fee. This lease incentive will be amortized over the remaining term of the lease, which runs through June 30, 2030 and includes renewal options for three consecutive additional periods from 5 to 10 years each at prevailing market rates. Annual base rent for the leased office space escalates ratably over the lease term from $10 million to $15 million . 500 Jefferson Building Lease. The term of the lease runs through June 30, 2030 and includes renewal options for three consecutive additional periods from 5 to 10 years each at prevailing market rates. Annual base rent for the leased office space escalates ratably over the lease term from $2 million to $4 million . For a small fee we have agreed to change our early termination option date for all or a portion of the leased premises from 2022 to 2026. Insurance Programs Our employee-related health care benefits program is self-funded. Our workers’ compensation, automobile and general liability insurance programs include a deductible applicable to each claim. Claims in excess of our deductible are paid by the insurer. The liabilities are based on claims filed and estimates of claims incurred but not reported. As of December 31, 2014 , liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $66 million , comprised of $14 million included in "accrued salaries, wages and benefits," $19 million included in "other current liabilities" and $33 million included in "other liabilities" all on our consolidated balance sheets. As of December 31, 2013 , liabilities for unpaid and incurred but not reported claims for all insurance programs totaled approximately $75 million , comprised of $12 million included in "accrued salaries, wages and benefits," $26 million included in "other current liabilities" and $37 million included in "other liabilities" all on our consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following tables summarize our activity in shareholders’ equity: Dollars in millions Total PIC Retained Earnings Treasury Stock AOCL NCI Balance at December 31, 2011 $ 2,442 $ 2,005 $ 1,607 (569 ) $ (548 ) $ (53 ) Deferred tax and foreign currency adjustments (a) 17 17 — — — — Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 7 7 — — — — Tax benefit increase related to share-based plans 4 4 — — — — Dividends declared to shareholders (42 ) — (42 ) — — — Repurchases of common stock (40 ) — — (40 ) — — Issuance of ESPP shares 3 — — 3 — — Distributions to noncontrolling interests (36 ) — — — — (36 ) Net income 202 — 144 — — 58 Other comprehensive (loss), net of tax (62 ) — — — (62 ) — Balance at December 31, 2012 $ 2,511 $ 2,049 $ 1,709 $ (606 ) $ (610 ) $ (31 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 6 6 — — — — Dividends declared to shareholders (36 ) — (36 ) — — — Adjustment pursuant to Accounting Referee's report on tax sharing agreement (7 ) (7 ) — — — — Repurchases of common stock (7 ) — — (7 ) — — Issuance of ESPP shares 4 1 — 3 — — Investments by noncontrolling interests 9 — — — — 9 Distributions to noncontrolling interests (109 ) — — — — (109 ) Change in NCI due to consolidation of previously unconsolidated JV and other transactions 2 — — — — 2 Net income 171 — 75 — — 96 Other comprehensive (loss), net of tax (121 ) — — — (130 ) 9 Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 22 22 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (106 ) — — (106 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (61 ) — — — — (61 ) Other noncontrolling interests activity 2 — — — — 2 Net income (loss) (1,198 ) — (1,262 ) — — 64 Other comprehensive income (loss), net of tax (134 ) — — — (136 ) 2 Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) (a) During the third quarter of 2012, we recorded out-of-period adjustments in our deferred tax accounts, most of which relate to years before 2010. These adjustments were not material to 2012 or the periods to which they relate. The out-of-period adjustments were $3 million to our 2012 annual tax expense and $9 million to our equity accounts. Deferred tax and foreign currency adjustments above includes $16 million related to these adjustments. Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2014 2013 2012 Accumulated foreign currency translation adjustments, net of tax of $(4), $0 and $27 $ (203 ) $ (131 ) $ (88 ) Pension and post-retirement benefits, net of tax of $(231), $(221) and $(203) (670 ) (608 ) (521 ) Changes in fair value of derivatives, net of tax of $0, $0 and $0 (3 ) (1 ) (1 ) Total accumulated other comprehensive loss $ (876 ) $ (740 ) $ (610 ) Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance as of December 31, 2012 $ (88 ) $ (521 ) $ (1 ) $ (610 ) Other comprehensive income adjustments before reclassifications (44 ) (122 ) 1 (165 ) Amounts reclassified from accumulated other comprehensive income 1 35 (1 ) 35 Balance at December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (73 ) (104 ) (2 ) (179 ) Amounts reclassified from accumulated other comprehensive income 1 42 — 43 Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2014 December 31, 2013 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency translation adjustments Realized foreign currency translation adjustments $ (4 ) $ (1 ) Loss (gain) on disposition of assets, net Tax expense 3 — Provision for income taxes Net foreign currency translation adjustments realized $ (1 ) $ (1 ) Net of tax Pension and post-retirement benefits Amortization of actuarial loss (a) $ (52 ) $ (53 ) See (a) below Tax benefit 10 18 Provision for income taxes Net pension and post-retirement benefits $ (42 ) $ (35 ) Net of tax Changes in fair value of derivatives Realized losses on derivatives $ — $ 1 Cost of revenues Tax benefit — — Provision for income taxes Net change in fair value of derivatives $ — $ 1 Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. Shares of common stock Shares in millions Shares Balance at December 31, 2012 173.2 Common stock issued 0.7 Balance at December 31, 2013 173.9 Common stock issued 0.5 Balance at December 31, 2014 174.4 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2012 25.6 $ 606 Treasury stock acquired, net of ESPP shares issued 0.1 4 Balance at December 31, 2013 25.7 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 $ 712 Dividends We declared dividends totaling $47 million in 2014 and $36 million in 2013 . As of December 31, 2014 and 2013, we had accrued dividends payable of $12 million included in "other current liabilities" on our consolidated balance sheets. |
Share Repurchase
Share Repurchase | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases On February 25, 2014, our Board of Directors authorized a plan to repurchase up to $350 million of our outstanding common shares, which replaced and terminated the August 26, 2011 share repurchase program. The authorization does not obligate the company to acquire any particular number of common shares and may be commenced, suspended or discontinued without prior notice. The newly authorized share repurchase program operates alongside the existing share maintenance program which we may use to repurchase shares vesting as part of employee compensation programs. The share repurchases are intended to be funded through the company’s current and future cash and the authorization does not have an expiration date. The table below presents information on our share repurchases activity under the share repurchase authorization: December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 666,599 $ 26.24 18 Total 4,041,078 $ 106 |
Stock-Based Compensation And In
Stock-Based Compensation And Incentive Plans | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans Stock Plans In 2014 , 2013 and 2012 share-based compensation awards were granted to employees under KBR share-based compensation plans. KBR Stock and Incentive Plan (Amended May 2012) In November 2006, KBR established the KBR Stock and Incentive Plan ("KBR Stock Plan"), which provides for the grant of any or all of the following types of share-based compensation listed below: • stock options, including incentive stock options and nonqualified stock options; • stock appreciation rights, in tandem with stock options or freestanding; • restricted stock; • restricted stock units; • cash performance awards; and • stock value equivalent awards. In May 2012, the KBR Stock Plan was amended to add 2 million shares of our common stock available for issuance under the KBR Stock Plan. Additionally, this amendment increased the sublimit under the Stock Plan in the form of restricted stock awards, restricted stock unit awards or pursuant to performance awards by 2 million . Under the terms of the KBR Stock Plan, 12 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 5.5 million shares can be awarded as restricted stock or restricted stock units or pursuant to cash performance awards. At December 31, 2014 , approximately 3.5 million shares were available for future grants under the KBR Stock Plan, of which approximately 1.5 million shares remained available for restricted stock awards or restricted stock unit awards. KBR Stock Options Under the KBR Stock Plan, stock options are granted with an exercise price not less than the fair market value of the common stock on the date of the grant and a term no greater than 10 years. The term and vesting periods are established at the discretion of the Compensation Committee at the time of each grant. We amortize the fair value of the stock options over the vesting period on a straight-line basis. Options are granted from shares authorized by our Board of Directors. Total number of stock options granted and the assumptions used to determine the fair value of granted options were as follows: Years ended December 31, KBR stock options assumptions summary 2014 2013 Granted stock options (shares in millions) 0.6 0.9 Weighted average expected term (in years) 5.5 6.5 Weighted average grant-date fair value per share $ 9.57 $ 11.40 Years ended December 31, KBR stock options range assumptions summary 2014 2013 Range Range Start End Start End Expected volatility range 36.48 % 40.49 % 39.98 % 41.89 % Expected dividend yield range 1.08 % 1.52 % 0.89 % 1.11 % Risk-free interest rate range 1.67 % 2.21 % 0.98 % 2.09 % For KBR stock options granted in 2014 , 2013 and 2012 , the fair value of options at the date of grant was estimated using the Black-Scholes-Merton option pricing model. The expected volatility of KBR options granted in each year is based upon a blended rate that uses the historical and implied volatility of common stock for KBR and selected peers. The expected term of KBR options granted in 2014 was based on KBR's historical experience. The expected term of KBR options granted in 2013 was based on the average of the life of the option and the vesting period of the option. The estimated dividend yield is based upon KBR’s annualized dividend rate divided by the market price of KBR’s stock on the option grant date. The risk-free interest rate is based upon the yield of U.S. government issued treasury bills or notes on the option grant date. The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2014 . KBR stock options activity summary Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2013 3,274,623 $ 26.27 6.93 $ 22.49 Granted 638,270 27.78 Exercised (266,829 ) 15.91 Forfeited (339,882 ) 30.41 Expired (146,091 ) 27.26 Outstanding at December 31, 2014 3,160,091 $ 26.96 6.54 $ 2.40 Exercisable at December 31, 2014 2,078,401 $ 25.59 5.48 $ 2.40 The total intrinsic values of options exercised for the years ended December 31, 2014 , 2013 and 2012 were $3 million , $7 million and $9 million , respectively. As of December 31, 2014 , there was $7 million of unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options, expected to be recognized over a weighted average period of approximately 1.65 years. Stock option compensation expense was $6 million in 2014 , $9 million in 2013 and $8 million in 2012 . Total income tax benefit recognized in net income for share-based compensation arrangements was $2 million in 2014 and $3 million in 2013 and 2012 . KBR Restricted stock Restricted shares issued under the KBR Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically over a period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and ratably charged to income over the period during which the restrictions lapse on a straight-line basis. For awards with performance conditions, an evaluation is made each quarter as to the likelihood of meeting the performance criteria. Share-based compensation is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date. The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2014 under the KBR Stock Plan. Restricted stock activity summary Number of Shares Weighted Average Grant-Date Fair Value per Share Nonvested shares at December 31, 2013 668,766 $ 29.64 Granted 1,060,480 28.46 Vested (397,521 ) 27.82 Forfeited (202,848 ) 30.63 Nonvested shares at December 31, 2014 1,128,877 $ 28.99 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2014 , 2013 and 2012 were $28.46 , $30.64 and $33.13 , respectively. Restricted stock compensation expense was $16 million for 2014 , $7 million for 2013 and $8 million for 2012 . Total income tax benefit recognized in net income for share-based compensation arrangements was $6 million in 2014 and $3 million in 2013 and 2012 . As of December 31, 2014 , there was $22 million of unrecognized compensation cost, net of estimated forfeitures, related to KBR’s non-vested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 2.39 years. The total fair value of shares vested was $6 million in 2014 , $8 million in 2013 and $12 million in 2012 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $11 million in 2014 , $7 million in 2013 and $9 million in 2012 based on the weighted-average fair value on the date of grant. Share-based compensation expense The grant-date fair value of employee share options is estimated using option-pricing models. If an award is modified after the grant date, incremental compensation cost is recognized immediately as of the modification. Share-based compensation expense consists of $9 million recorded to cost of services on the consolidated income statements, while the remaining $13 million is recorded to general and administrative expenses on the consolidated income statements. The benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefits) are classified as additional paid-in-capital, and cash retained as a result of these excess tax benefits is presented in the statements of cash flows as financing cash inflows. Share-based compensation summary table Years ended December 31 Dollars in millions 2014 2013 2012 Share-based compensation $ 22 $ 16 $ 16 Total income tax benefit recognized in net income for share-based compensation arrangements $ 8 $ 6 $ 6 Incremental compensation cost $ 2 $ 1 $ 1 Tax benefit increase related to share-based plans $ — $ — $ 4 Incremental compensation cost resulted from modifications of previously granted share-based awards which allowed certain employees to retain their awards after leaving the company. Excess tax benefits realized from the exercise of share-based compensation awards are recognized as paid-in capital in excess of par. KBR Cash Performance Based Award Units (“Cash Performance Awards”) Under the KBR Stock Plan, for Cash Performance Awards granted in the year 2014 , 2013 and 2012 , performance is based 100% on average Total Shareholder Return (“TSR”) as compared to the average TSR of KBR’s peers. The cash performance award units may only be paid in cash. In accordance with the provisions of ASC 718 - Compensation-Stock Compensation, the TSR portion of the performance award units are classified as liability awards and remeasured at the end of each reporting period at fair value until settlement. The fair value approach uses the Monte Carlo valuation method which analyzes the companies comprising KBR’s peer group, considering volatility, interest rate, stock beta and TSR through the grant date. Under the KBR Stock Plan, in 2014 , we granted 27 million performance based award units (“Cash Performance Awards”) with a three -year performance period from January 1, 2014 to December 31, 2016. In 2013 , we granted 30 million Cash Performance Awards with a three -year performance period from January 1, 2013 to December 31, 2015. In 2012 , we granted 29 million Cash Performance Awards with a three -year performance period from January 1, 2012 to December 31, 2014 . At December 31, 2014 , Cash Performance Awards forfeited, net of previous plan payout, totaled 17 million in 2014 , 10 million in 2013 and 8 million in 2012 . At December 31, 2014 , the outstanding balance for Cash Performance Awards is 79.2 million units. Cash Performance Awards are not considered earned until required performance conditions are met. Additionally, approval by the Compensation Committee of the Board of Directors is required before earned Cash Performance Awards are paid. Cost for the Cash Performance Awards is accrued over the requisite service period. For the years ended December 31, 2014 , 2013 and 2012 , we recognized $0 million , $8 million and $18 million , respectively, in expense for the Cash Performance Awards. The expense associated with these Cash Performance Awards is included in cost of services and general and administrative expense in our consolidated statements of operations. The liability for awards included in “employee compensation and benefits” on our consolidated balance sheets were $1 million at December 31, 2014 , of which none will become due within one year and $23 million at December 31, 2013 . KBR Employee Stock Purchase Plan (“ESPP”) Under the ESPP, eligible employees may withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR’s common stock. Unless KBR’s Board of Directors determine otherwise, each six-month offering period commences at the beginning of February and August of each year. Employees who participate in the ESPP will receive a 5% discount on the stock price at the end of each period. During 2014 and 2013 , our employees purchased approximately 159,000 and 131,000 shares, respectively, through the ESPP. These shares were issued from our treasury share account. |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Income Per Share | per Share Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method. A reconciliation of the number of shares used for the basic and diluted income (loss) per share calculations is as follows: Years ended December 31, Shares in millions 2014 2013 2012 Basic weighted average common shares outstanding 146 148 148 Stock options and restricted shares — 1 1 Diluted weighted average common shares outstanding 146 149 149 For purposes of applying the two-class method in computing earnings (loss) per share, net earnings allocated to participating securities was none for the fiscal year 2014 , approximately $0.3 million , or a negligible amount per share, for fiscal year 2013 and $1 million , or a negligible amount per share, for fiscal year 2012 . The diluted earnings (loss) per share calculation did not include 3.0 million , 1.8 million and 1.3 million antidilutive weighted average shares for the years ended December 31, 2014 , 2013 and 2012 , respectively. |
Financial Instruments And Risk
Financial Instruments And Risk Management | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments And Risk Management | Financial Instruments and Risk Management Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of December 31, 2014 , we had foreign exchange contracts of up to 12 months in duration to exchange major world currencies. The following table presents, by currency, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge exposures on our balance sheet that were outstanding as of December 31, 2014 and 2013 : Years ended December 31, USD Equivalent, Dollars in Millions 2014 2013 Australian Dollar 190 309 United States Dollar 459 185 Pound Sterling 126 91 Swedish Kroner 6 3 Norwegian Kroner 5 5 Qatari Riyal 3 — Canadian Dollar — 138 Saudi Riyal — 3 Total balance sheet hedges 789 734 These fair values are considered Level 2 under ASC 820 - Fair Value Measurement as they are based on quoted prices directly observable in active markets. The following provides additional detail regarding these hedging activities. We hedge certain forecasted future cash flows using derivatives instruments. In most cases, these derivatives are designated as cash flow hedges and are carried at fair value. The effective portion of the gain or loss is initially recognized as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassed into the income or expense line item to which the hedged transaction relates. In each period the ineffective portion of the designated hedge and the changes in fair value of non-designated hedges are recognized in our consolidated statement of operations. The notional amounts and the impact of our hedges of future cash flows on our consolidated financial statements for the periods presented was not material. We also hedge portions of our balance sheet exposures associated with changes in fair value of monetary assets and liabilities denominated in currencies other than the functional currency of the consolidated subsidiary that is party to the transaction. Changes in fair value associated with these derivative instruments are recorded within our consolidated statement of operations and largely offset the remeasurement of the underlying assets and liabilities being hedged. The fair value of the derivative instruments used to hedge our balance sheet exposure was not material to our consolidated balance sheet for the periods presented. 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 statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "other non-operating income (expense)" on our consolidated statement of operations. Years ended December 31, Gains (Losses) Dollars in Millions 2014 2013 Balance Sheet Hedges - Fair Value (47 ) (22 ) Balance Sheet Position - Remeasurement 47 21 Net — (1 ) Interest rate risk. Certain of our unconsolidated subsidiaries and joint-ventures are exposed to interest rate risk through their variable rate borrowings. This variable-rate exposure is managed with interest rate swaps. We had unrealized net losses on the interest rate swaps held by our unconsolidated subsidiaries and joint-ventures of approximately $2 million as of December 31, 2014 , 2013 and 2012 , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On August 27, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern. This ASU provides guidance on management's responsibility to evaluate whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. Substantial doubt exists when relevant conditions and events indicate that it is probable that the entity will be unable to meet its obligations as they become due within the time frame specified earlier. This ASU is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU 2014-15 is not expected to have a material impact on our financial position, results of operations or cash flows. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. We are in the process of assessing the impact of the adoption of ASU 2014-09 on our financial position, results of operations or cash flows. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. On January 24, 2014, the FASB issued ASU No. 2014-05, Service Concession Arrangements. A service concession agreement is an arrangement between a public-sector entity and an operating entity under which the operating entity operates the grantor's infrastructure. This ASU specifies that an operating entity should not account for a service concession arrangement within the scope of this ASU as a lease in accordance with ASC 840 - Leases. An operating entity should refer to other ASUs as applicable to account for various aspects of a service concession arrangement. The amendments also specify that the infrastructure used in a service concession agreement should not be recognized as property, plant and equipment of the operating entity. The amendments in this ASU are effective using a modified retrospective approach for annual reporting periods beginning after December 15, 2014 and interim periods within those annual periods. We are in the process of adopting ASU 2014-05 for the next fiscal year beginning January 1, 2015 and the adoption of this standard could have a material impact on our financial position or results of operations. |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | Quarterly Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2014 and 2013 are presented in the following table. In the following table, the sum of basic and diluted “Net income (loss) attributable to KBR per share” for the four quarters may differ from the annual amounts due to the required method of computing weighted average number of shares in the respective periods. Additionally, due to the effect of rounding, the sum of the individual quarterly earnings per share amounts may not equal the calculated year earnings per share amount. (Dollars in millions, except per share amounts) First Second Third Fourth Year 2014 Total revenues $ 1,633 $ 1,659 $ 1,657 $ 1,417 $ 6,366 Gross profit (loss) (a) 39 28 30 (162 ) (65 ) Equity in earnings of unconsolidated affiliates 31 49 38 45 163 Operating income (loss) (b) 10 25 10 (839 ) (794 ) Net income (loss) (c) (20 ) 8 45 (1,231 ) (1,198 ) Net income attributable to noncontrolling interests (23 ) (16 ) (15 ) (10 ) (64 ) Net income (loss) attributable to KBR (43 ) (8 ) 30 (1,241 ) (1,262 ) Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) Net income (loss) attributable to KBR per share—Diluted $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) (Dollars in millions, except per share amounts) First Second Third Fourth Year 2013 Total revenues $ 1,829 $ 1,950 $ 1,755 $ 1,680 $ 7,214 Gross profit (d) 156 140 114 7 417 Equity in earnings of unconsolidated affiliates 30 46 31 30 137 Operating income (loss) 133 123 79 (27 ) 308 Net income (loss) (d) 97 111 15 (52 ) 171 Net income attributable to noncontrolling interests (9 ) (21 ) (62 ) (4 ) (96 ) Net income (loss) attributable to KBR 88 90 (47 ) (56 ) 75 Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ 0.59 $ 0.61 $ (0.32 ) $ (0.38 ) $ 0.50 Net income (loss) attributable to KBR per share—Diluted $ 0.59 $ 0.61 $ (0.32 ) $ (0.38 ) $ 0.50 (a) The losses in gross profit in the fourth quarter of 2014 reflect changes in cost estimates increasing the loss provision by $80 million on two power projects in our Non-strategic Business segment and changes in estimates of $53 million in our E&C business segment. See Note 2 to our consolidated financial statements. (b) Included in the operating loss of the fourth quarter of 2014 is a goodwill impairment charge of $446 million as well as asset impairment and restructuring charges of $214 million . See Notes 8 and 9 for our discussion on these charges. (c) Net loss for the fourth quarter of 2014 includes $391 million of provision for income taxes primarily from an increase in our valuation allowance on deferred tax assets. (d) We corrected an error originating in periods prior to 2013. The correction of this error resulted in a net unfavorable impact to gross profit of $25 million in our E&C business segment for the year ended December 31, 2013, including $22 million in the fourth quarter. The correction of this error resulted in an after tax unfavorable impact to net income of $17 million for the year ended December 31, 2013, including $14 million in the fourth quarter. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2014 | |
Valuation and Qualifying Accounts [Abstract] | |
ScheduleOfValuationAndQualifyingAccountsDisclosureTextBlock | KBR, Inc. Schedule II—Valuation and Qualifying Accounts (Dollars in Millions) The table below presents valuation and qualifying accounts for continuing operations. Additions Descriptions Balance at Beginning Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended December 31, 2014: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 18 $ 11 $ — $ (10 )(a) $ 19 Reserve for losses on uncompleted contracts $ 109 $ 177 $ — $ (127 ) $ 159 Reserve for potentially disallowable costs incurred under government contracts $ 91 $ — $ — $ (17 ) $ 74 Year ended December 31, 2013: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 15 $ 5 $ — $ (2 )(a) $ 18 Reserve for losses on uncompleted contracts $ 56 $ 106 $ — $ (53 ) $ 109 Reserve for potentially disallowable costs incurred under government contracts $ 122 $ — $ 2 (b) $ (33 ) $ 91 Year ended December 31, 2012: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 24 $ 6 $ — $ (15 )(a) $ 15 Reserve for losses on uncompleted contracts $ 22 $ 53 $ — $ (19 ) $ 56 Reserve for potentially disallowable costs incurred under government contracts $ 127 $ — $ 5 (b) $ (10 ) $ 122 (a) Receivable write-offs, net of recoveries, and reclassifications. (b) Reserves have been recorded as reductions of revenues, net of reserves no longer required. See accompanying report of independent registered public accounting firm. |
Description Of Company And Si32
Description Of Company And Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 10 to our consolidated financial statements for further discussion on our equity investments and variable interest entities. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated statement of operations, consolidated balance sheets and the consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. |
Use of estimates | Use of estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method and cost method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of variable interest entities • valuation of stock-based compensation In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying consolidated financial statements. |
Engineering and construction contracts | Revenue Recognition - Engineering and construction contracts Contracts. Revenues from contracts to provide construction, engineering, design or similar services is reported on the percentage-of-completion method of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 605 - Revenue Recognition. Depending on the type of job, progress is generally measured based upon man-hours expended to total man-hours estimated at completion, costs incurred to total estimated costs at completion or physical progress. All known or anticipated losses on contracts are provided for in the period they become evident. Certain claims and change orders that are in the process of negotiation with customers for additional work or changes in the scope of work are included in contract value when collection is deemed probable and the value can be reliably estimated. Our work is performed under three general types of contracts: fixed-price contracts, cost-reimbursable plus a fee or mark-up contracts and "hybrid" contracts containing both cost-reimbursable and fixed-price scopes. All contract types may be modified by cost escalation provisions or other risk sharing mechanisms and incentive and penalty provisions. During the term of a project, the contract or components of the contract may be renegotiated to include characteristics of a different contract type. When we negotiate any type of contract, we frequently are required to accomplish the scope of work and meet certain performance criteria within a specified time frame; otherwise, we could be assessed damages, which in some cases are agreed-upon liquidated damages. We include an estimate of liquidated damages in our estimates of total contract value when it is deemed probable that they will be assessed. Profits are recorded based upon the product of estimated contract profit at completion times the current percentage-complete for the contract. Fixed-price contracts, which include our unit-rate contracts (essentially a fixed-price contract with the only variable being units of work performed) where we are paid fixed amounts based on the final number of units of work performed, are for a fixed sum to cover all costs and any profit element for a defined scope of work. Fixed-price contracts entail more risk to us because they require us to predetermine the work to be performed, the project execution schedule and the costs associated with the work. As a result, we may benefit or be penalized for cost variations from our original estimates. However, these contract prices may be adjusted for changes in scope of work, new or changing laws and regulations and other negotiated events. Cost-reimbursable contracts include contracts where the price is variable based upon our actual costs incurred for time and materials and for reimbursable labor hour contracts. Profit on cost-reimbursable contracts may be a fixed amount, a mark-up applied to costs incurred or a combination of the two. Cost-reimbursable contracts are generally less risky than fixed-price contracts because the owner/customer retains many of the project risks. Our cost-reimbursable contracts include the following: • Cost-plus and Time and Material contracts - These are contracts under which we are reimbursed for allowable or otherwise defined costs incurred plus a fee or mark-up. The contracts may also include incentives for various performance criteria, including quality, timeliness, ingenuity, safety and cost-effectiveness. In addition, our costs are generally subject to review by our clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract. • Target-price contracts - These are contracts under which we are reimbursed for costs plus a fee consisting of two parts: (1) a fixed amount, which does not vary with performance, but may be at risk when a target price is exceeded; and (2) an award amount based on the performance and cost-effectiveness of the project. As a result, we are generally able to recover cost overruns on these contracts from actual damages for late delivery or the failure to meet certain performance criteria. Target-price contracts also generally provide for sharing of costs in excess of or savings for costs less than the target. In some contracts, we may agree to share cost overruns in excess of our fee, which could result in a loss on the project. Unapproved Change Orders and Claims. Revenues and gross profit on contracts can be significantly affected by change orders and claims that may not be approved by the customer until the later stages of a contract or subsequent to the date a project is completed. If it is not probable that the costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. For certain contracts where it is probable that the costs will be recovered through a change order, total estimated contract revenue is increased by the lesser of the amounts management expects to recover or the costs expected to be incurred. When estimating the amount of total gross profit or loss on a contract, we include unapproved change orders or claims to our clients as adjustments to revenues. We include claims to vendors, subcontractors and others as adjustments to total estimated costs. Claims against others are recorded up to the extent of the lesser of the amounts management expects to recover or to costs incurred and include no profit until such time as they are finalized and approved. See Note 5 to our consolidated financial statements for our discussion on unapproved change orders and claims. |
Government contract | Revenue Recognition - Government contracts Some of the services provided to the United States ("U.S.") government are performed on cost-reimbursable contracts. Generally, these contracts may contain base fees (a fixed profit percentage applied to our actual costs to complete the work). Revenues are recognized at the time services are performed, and such revenues include base fees, actual direct project costs incurred and an allocation of indirect costs. Indirect costs are applied using rates approved by our government customers. The general, administrative and overhead cost reimbursement rates are estimated periodically in accordance with government contract accounting regulations and may change based on actual costs incurred or based upon the volume of work performed. Revenues are reduced for our estimate of costs that either are in dispute with our customer or have been identified as potentially unallowable pursuant to the terms of the contract or the federal acquisition regulations. |
Accounting for multiple deliverables contracts | Accounting for multiple deliverables contracts For contracts containing multiple deliverables, we analyze each activity within the contract to ensure that we adhere to the separation guidelines for revenue arrangements with multiple deliverables in accordance with FASB ASC 605. |
Gross Profit [Policy Text Block] | Gross Profit Gross profit represents business segment revenues less the cost of revenues, which includes business segment overhead costs directly attributable to the business segment. |
Cost Estimates [Policy Text Block] | Cost estimates Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs, included in cost of revenues, include charges for such items as facilities, engineering, project management, quality control, bid and proposals and procurement. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | General and administrative expenses Our general and administrative expenses represent corporate overhead expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and corporate accounting, human resources and various other corporate functions. |
Cash and equivalents | Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 3 to our consolidated financial statements for our discussion on cash and equivalents. |
Allowance for bad debts | Accounts Receivable Accounts receivable are recorded at the invoiced amount based on contracted prices. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. We establish an allowance for doubtful accounts based on the assessment of the clients’ willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. See Note 4 to our consolidated financial statements for our discussion on accounts receivable. Retainage, included in accounts receivable, represents amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our retainage receivable excludes amounts withheld by the U.S. government on certain contracts. See Note 14 to our consolidated financial statements for our discussion on U.S. government receivables. |
Costs In Excess Of Billings And Billings In Excess Of Costs [Policy Text Block] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts, Including Claims, and Advanced Billings and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of accounting. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date using the percentage-of-completion method over billings to date on certain contracts. Billings in excess of costs and estimated earnings on uncompleted contracts represents the excess of billings to date over the amount of contract costs and profits recognized to date using the percentage-of-completion method on certain contracts. With the exception of claims and change orders that we are in the process of negotiating with customers, unbilled receivables are usually billed during normal billing processes following achievement of the contractual requirements. See Note 5 to our consolidated financial statements for our discussion on CIE and BIE. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7 to our consolidated financial statements for our discussion on property, plant and equipment. |
Goodwill and other intangibles | Goodwill Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, we are required to test goodwill for impairment on an annual basis and more frequently when negative conditions or other triggering events arise. We test goodwill for impairment annually as of October 1. In accordance with ASC 350 - Intangibles - Goodwill and Other, we conduct our goodwill impairment testing at the reporting unit level. See Note 8 for our discussion on our annual impairment test. Our October 1, 2014 annual impairment test for goodwill was a quantitative analysis using a two-step process that involves comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying value of a reporting unit exceeds its fair value, we perform the second step of the goodwill impairment test to measure the amount of goodwill impairment loss to be recorded, as necessary. The second step compares the implied fair value of the reporting unit's goodwill to the carrying value, if any, of that goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. The fair values of reporting units were determined using a combination of two methods, one utilizing market earnings multiples (the market approach) and the other derived from discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). |
Impairment of long-lived assets | Intangible assets Our intangible assets are related to various licenses, trade names, patents, technology and related processes. Except for an $11 million indefinite lived trade name, which we do not amortize, the costs of our intangible assets are generally amortized over their estimated useful lives up to 25 years . The method of amortization reflects the expected realization pattern of the economic benefits relevant to the intangible assets, or if we are unable to determine the expected realization pattern reliably, they are amortized using the straight-line method. We also have intangible assets related to trade names, client relationships and non-compete agreements which are associated with acquisitions we have completed and are generally amortized over a three-to ten-year period on a straight-line basis. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 8 to our consolidated financial statements for our discussion on intangible assets |
Investment, Policy [Policy Text Block] | Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control of, an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually and whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 10 to our consolidated financial statements for our discussion on equity method investments. Where we are unable to exercise significant influence over the investee, or when our investment balance is reduced to zero from our proportionate share of losses, the investments are accounted for under the cost method. Under the cost method, investments are carried at cost and adjusted only for other-than-temporary declines in fair value, distributions of earnings, or additional investments. |
Pensions | Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 15 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. |
Income taxes | Income taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 13 to our consolidated financial statements for our discussion on income taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results. We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year. We recognize the effect of income tax positions only if it is more-likely-than-not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company records potential interest and penalties related to unrecognized tax benefits in income tax expense. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome. See Note 12 for our discussion on income taxes. |
Derivative instruments | Derivative instruments We enter into derivative financial transactions to hedge existing or forecasted exposures to changing foreign currency exchange rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives at fair value on the balance sheet. Derivatives that are not accounted for as hedges under ASC 815 - Derivatives and Hedging, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a hedge under ASC 815, changes in the fair value of derivatives are recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a designated hedge's change in fair value is recognized in earnings. See Note 20 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within "Other non-operating income (expense)" on our consolidated statements of operations. |
Concentration of credit risk | Concentration of credit risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues (which are generally not collateralized). A significant percentage of revenues is generated from transactions with Chevron Corporation ("Chevron") which is derived primarily from our E&C business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented. The following tables present summarized data related to our transactions with Chevron. Revenues from major customers: Years ended December 31, Dollars in millions 2014 2013 2012 Chevron revenues $ 1,069 $ 1,859 $ 2,302 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2014 2013 2012 Chevron revenues percentage 17 % 26 % 30 % Chevron receivables percentage 9 % 13 % 17 % |
Noncontrolling interest | Noncontrolling interest Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements. |
Foreign currency translation | Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in "accumulated other comprehensive loss" on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in “accumulated other comprehensive loss” on our consolidated balance sheets. |
Variable interest entities | Variable Interest Entities The majority of our joint ventures are variable interest entities ("VIEs"). We account for VIEs in accordance with ASC 810 - Consolidation which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term energy-related construction projects in our E&C business segment are executed through such joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as privately financed initiatives in our GS business segment, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. As required by ASC 810 - Consolidation, we perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. |
Stock-based compensation | Share-based compensation We account for share-based payments, including grants of employee stock options, restricted stock-based awards and performance cash units, in accordance with ASC 718 - Compensation-Stock Compensation, which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in our consolidated statements of operations based on their fair values on the award date and the estimated number of shares we ultimately expect to vest. We recognize share-based compensation expense on a straight-line basis over the service period of the award, which is no greater than 5 years . See Note 18 to our consolidated financial statements for our discussion on share-based compensation and incentive plans. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and Contingencies We record liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Description Of Company And Si33
Description Of Company And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Schedule Of Revenues And Receivables From Major Customers | The following tables present summarized data related to our transactions with Chevron. Revenues from major customers: Years ended December 31, Dollars in millions 2014 2013 2012 Chevron revenues $ 1,069 $ 1,859 $ 2,302 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2014 2013 2012 Chevron revenues percentage 17 % 26 % 30 % Chevron receivables percentage 9 % 13 % 17 % |
Schedule Of Other Current Assets | The components of “other current assets” on our consolidated balance sheets as of December 31, 2014 and 2013 are presented below: December 31, Dollars in millions 2014 2013 Inventory $ 8 $ 13 Restricted cash 17 1 Prepaid expenses 58 72 Value-added tax receivable 27 24 Assets held-for-sale 10 — Other miscellaneous assets 27 86 Total other current assets $ 147 $ 196 |
Components Of Other Current Liabilities | The components of “other current liabilities” on our consolidated balance sheets as of December 31, 2014 and 2013 are presented below: December 31, Dollars in millions 2014 2013 Reserve for estimated losses on uncompleted contracts (a) $ 159 $ 109 Retainage payable 88 102 Income taxes payable 61 60 Deferred tax liabilities 46 31 Value-added tax payable 31 29 Insurance payable 19 26 Dividend payable 12 12 Other miscellaneous liabilities 72 40 Total other current liabilities $ 488 $ 409 (a) See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents revenues, gross profit, equity in earnings of unconsolidated affiliates, capital expenditures, and depreciation and amortization by reporting segment. See Note 8 to our consolidated financial statements for more information on goodwill and intangible assets. Operations by Reportable Segment Years ended December 31, Dollars in millions 2014 2013 2012 Revenues: Technology & Consulting $ 353 $ 330 $ 296 Engineering & Construction 4,584 4,956 5,616 Government Services 638 931 1,105 Other — — — Subtotal 5,575 6,217 7,017 Non-strategic Business 791 997 753 Total $ 6,366 $ 7,214 $ 7,770 Gross profit (loss): Technology & Consulting $ 53 $ 69 $ 80 Engineering & Construction 141 263 450 Government Services (32 ) 90 83 Other — — — Subtotal 162 422 613 Non-strategic Business (227 ) (5 ) (95 ) Total $ (65 ) $ 417 $ 518 Equity in earnings of unconsolidated affiliates: Technology & Consulting $ — $ — $ — Engineering & Construction 90 76 79 Government Services 73 61 67 Other — — — Subtotal 163 137 146 Non-strategic Business — — 5 Total $ 163 $ 137 $ 151 Impairment of goodwill (Note 8): Technology & Consulting $ — $ — $ — Engineering & Construction (293 ) — — Government Services — — — Other — — — Subtotal (293 ) — — Non-strategic Business (153 ) — (178 ) Total $ (446 ) $ — $ (178 ) Asset impairment and restructuring charges (Note 9): Technology & Consulting $ (2 ) $ — $ — Engineering & Construction (24 ) — — Government Services (5 ) — — Other (149 ) — (2 ) Subtotal (180 ) — (2 ) Non-strategic Business (34 ) — — Total $ (214 ) $ — $ (2 ) Segment operating income (loss): Technology & Consulting $ 49 $ 70 $ 80 Engineering & Construction (114 ) 278 499 Government Services 25 145 146 Other (312 ) (181 ) (155 ) Subtotal (352 ) 312 570 Non-strategic Business (442 ) (4 ) (271 ) Total $ (794 ) $ 308 $ 299 Years ended December 31, Dollars in millions 2014 2013 2012 Capital expenditures: Technology & Consulting $ — $ — $ 1 Engineering & Construction 19 10 8 Government Services — 1 1 Other 34 67 65 Subtotal 53 78 75 Non-strategic Business — — — Total $ 53 $ 78 $ 75 Depreciation and amortization: Technology & Consulting $ 2 $ 2 $ 2 Engineering & Construction 23 23 23 Government Services 8 9 9 Other 33 27 22 Subtotal 66 61 56 Non-strategic Business 6 7 9 Total $ 72 $ 68 $ 65 |
Schedule of Balance Sheet Information by Operating Segment | December 31, Dollars in millions 2014 2013 Total assets: Technology & Consulting $ 173 $ 224 Engineering & Construction 2,020 2,308 Government Services 532 693 Other 1,304 1,838 Subtotal 4,029 5,063 Non-strategic Business 170 375 Total $ 4,199 $ 5,438 Goodwill (Note 8): Technology & Consulting $ 31 $ 31 Engineering & Construction 233 528 Government Services 60 60 Other — — Subtotal 324 619 Non-strategic Business — 153 Total $ 324 $ 772 Equity in and advances to related companies (Note 10): Technology & Consulting $ — $ — Engineering & Construction 119 99 Government Services 31 53 Other — — Subtotal 150 152 Non-strategic Business 1 4 Total $ 151 $ 156 |
Schedule of Selected Geographic Information | Years ended December 31, Dollars in millions 2014 2013 2012 Revenues: United States $ 2,324 $ 2,470 $ 2,118 Australia 1,380 1,768 1,767 Africa 251 593 1,610 Middle East 707 913 1,013 Europe 624 575 582 Canada 752 687 431 Other countries 328 208 249 Total $ 6,366 $ 7,214 $ 7,770 December 31, Dollars in millions 2014 2013 Property, plant & equipment, net: United States $ 115 $ 272 United Kingdom 68 83 Other countries 64 60 Total $ 247 $ 415 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of our cash and equivalents balance are as follows: December 31, 2014 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 209 $ 121 $ 330 Time deposits 481 79 560 Cash and equivalents held in joint ventures 71 9 80 Total $ 761 $ 209 $ 970 December 31, 2013 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 197 $ 215 $ 412 Time deposits 478 140 618 Cash and equivalents held in joint ventures 67 9 76 Total $ 742 $ 364 $ 1,106 (a) Includes deposits held in non-U.S. operating accounts (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows: December 31, 2014 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 51 $ 51 Engineering & Construction 45 538 $ 583 Government Services 5 84 $ 89 Other — 3 $ 3 Subtotal 50 676 $ 726 Non-strategic Business 48 73 $ 121 Total $ 98 $ 749 $ 847 December 31, 2013 Dollars in millions Retainage Trade & Other Total Technology & Consulting $ — $ 63 $ 63 Engineering & Construction 52 725 $ 777 Government Services 3 85 $ 88 Other — 1 $ 1 Subtotal 55 874 $ 929 Non-strategic Business 45 82 $ 127 Total $ 100 $ 956 $ 1,056 |
Percentage-Of-Completion Cont37
Percentage-Of-Completion Contracts (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Contractors [Abstract] | |
Schedule Of Unapproved Claims And Change Orders | The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows: December 31, Dollars in millions 2014 2013 Amounts included in project estimates-at-completion at January 1, $ 115 $ 167 Changes in estimates-at-completion 87 109 Approved (171 ) (161 ) Amounts included in project estimates-at-completion at December 31, $ 31 $ 115 Amounts recorded in revenues on a percentage-of-completion basis at December 31, $ 24 $ 93 |
Claims and Accounts Receivabl38
Claims and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Schedule of Contracts Receivable, Claims and Uncertain Amounts | The components of our claims and accounts receivable account balance are as follows: December 31, Dollars in millions 2014 2013 Engineering & Construction $ 425 $ 401 Government Services 145 227 Total $ 570 $ 628 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The components of our property, plant and equipment balance are as follows: Estimated Lives in Years December 31, Dollars in millions 2014 2013 Land N/A $ 13 $ 19 Buildings and property improvements 5-44 198 213 Equipment and other 3-25 421 580 Total 632 812 Less accumulated depreciation (385 ) (397 ) Net property, plant and equipment $ 247 $ 415 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Goodwill By Reportable Segments | The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Balance as of January 1, 2013: Gross goodwill $ 31 $ 534 $ 61 $ — $ 626 $ 331 $ 957 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of January 1, 2013 $ 31 $ 534 $ 61 $ — $ 626 $ 153 $ 779 Goodwill written off related to sale of reporting unit $ — $ (3 ) $ — $ — $ (3 ) $ — $ (3 ) Net foreign exchange difference $ — $ (3 ) $ (1 ) $ — $ (4 ) $ — $ (4 ) Balances as of December 31, 2013: Gross goodwill $ 31 $ 528 $ 60 $ — $ 619 $ 331 $ 950 Accumulated impairment losses — — — — — (178 ) (178 ) Net goodwill as of December 31, 2013 $ 31 $ 528 $ 60 $ — $ 619 $ 153 $ 772 Impairment loss $ — $ (293 ) $ — $ — $ (293 ) $ (153 ) $ (446 ) Net foreign exchange difference $ — $ (2 ) $ — $ — $ (2 ) $ — $ (2 ) Balance as of December 31, 2014: Gross goodwill $ 31 $ 526 $ 60 $ — $ 617 $ 331 $ 948 Accumulated impairment losses — (293 ) — — (293 ) (331 ) (624 ) Net goodwill as of December 31, 2014 $ 31 $ 233 $ 60 $ — $ 324 $ — $ 324 |
Cost And Accumulated Amortization Of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: December 31, Dollars in millions 2014 2013 Intangibles not subject to amortization $ 11 $ 11 Intangibles subject to amortization 126 186 Total intangibles 137 197 Accumulated amortization of intangibles (96 ) (112 ) Net intangibles $ 41 $ 85 |
Amortization Expense Of Intangible Assets | Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2014 2013 2012 Intangibles amortization expense $ 11 $ 14 $ 15 |
Expected Amortization Expense Of Intangibles | Dollars in millions Expected future intangibles amortization expense 2015 $ 4 2016 $ 3 2017 $ 3 2018 $ 3 2019 $ 3 Beyond 2019 $ 14 |
Asset Impairment and Restruct41
Asset Impairment and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Asset Impairment and Restructuring Information related to asset impairment and restructuring charges resulting from our December 11, 2014 strategic reorganization is presented below: Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Dollars in millions Asset impairment Enterprise resource planning $ — $ — $ — $ 135 $ 135 $ — $ 135 Intangible assets — — — — — 31 31 Property, plant & equipment — 1 — 4 5 — 5 Subtotal $ — $ 1 $ — $ 139 $ 140 $ 31 $ 171 Restructuring charges Severance $ 2 $ 14 $ 3 $ 10 $ 29 $ — $ 29 Lease termination — 9 2 — 11 3 14 Subtotal 2 23 5 10 40 3 43 Total $ 2 $ 24 $ 5 $ 149 $ 180 $ 34 $ 214 In December 2014, we abandoned further implementation of our new enterprise resource planning ("ERP") project. As a result within our Other segment, we recognized an expense of $135 million associated with previously capitalized costs of $165 million . We recorded a noncash intangible asset impairment charge of $31 million within our Non-strategic Business segment in "asset impairment and restructuring charges" on our consolidated statements of operations at December 31, 2014 . See Note 8 for additional information on intangibles. As a result of the restructuring previously discussed, we terminated certain operating leases and recognized an early termination charge of $14 million within each business segment. We also recognized a $5 million impairment charge related to leasehold improvements on the terminated leases and other property. We evaluated our remaining long-lived assets, which consisted mainly of property, plant and equipment and did not identify any additional impairment. On December 11, 2014 we announced that in connection with our long-term strategic reorganization, we would terminate 1,000 employees. These employees are eligible for separation benefits upon their termination and the dates have occurred or are expected to occur through June 2015 . As of the year ended December 31, 2014 , we recorded $29 million of one-time charges associated with these employee terminations based on the fair value of the termination benefits. The charge was included in "asset impairment and restructuring charges" in our consolidated statement of operations. During the fourth quarter of 2014 , we paid $8 million of benefits associated with the employee terminations. There were no other changes to the liability. At December 31, 2014 , "other current liabilities" on our consolidated balance sheets includes the $21 million unpaid portion of the separation benefits. |
Restructuring and Related Costs [Table Text Block] | Information related to asset impairment and restructuring charges resulting from our December 11, 2014 strategic reorganization is presented below: Technology & Consulting Engineering & Construction Government Services Other Subtotal Non-strategic Business Total Dollars in millions Asset impairment Enterprise resource planning $ — $ — $ — $ 135 $ 135 $ — $ 135 Intangible assets — — — — — 31 31 Property, plant & equipment — 1 — 4 5 — 5 Subtotal $ — $ 1 $ — $ 139 $ 140 $ 31 $ 171 Restructuring charges Severance $ 2 $ 14 $ 3 $ 10 $ 29 $ — $ 29 Lease termination — 9 2 — 11 3 14 Subtotal 2 23 5 10 40 3 43 Total $ 2 $ 24 $ 5 $ 149 $ 180 $ 34 $ 214 |
Equity Method Investments And42
Equity Method Investments And Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2014 and 2013 are as follows: December 31, Dollars in millions 2014 2013 Accounts receivable, net of allowance for doubtful accounts $ 7 $ 6 Costs and estimated earnings in excess of billings on uncompleted contracts $ 2 $ 2 Billings in excess of costs and estimated earnings on uncompleted contracts $ 21 $ 24 |
Equity In Earnings of Unconsolidated Affiliates [Table Text Block] | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2014 2013 Balance at January 1, $ 156 $ 217 Equity in earnings of unconsolidated affiliates 163 137 Dividends received (a) (249 ) (180 ) Advances (13 ) (14 ) Foreign currency translation adjustments (1 ) (5 ) Other — 1 Balance at December 31, before reclassification 56 156 Reclassification of excess distributions (a) 95 — Balance at December 31, $ 151 $ 156 (a) During the third quarter of 2014, we received cash dividends of $102 million in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as “deferred income from unconsolidated affiliates” on our consolidated balance sheets which will be reduced as we recognize future equity in earnings on this investment. During 2014, we recognized $7 million of the excess dividends. |
Consolidated Summarized Financial Information | Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheets December 31, Dollars in millions 2014 2013 Current assets $ 3,098 $ 4,114 Noncurrent assets 4,069 4,222 Total assets $ 7,167 $ 8,336 Current liabilities $ 2,969 $ 3,679 Noncurrent liabilities 4,090 4,400 Total liabilities $ 7,059 $ 8,079 Statements of Operations Years ended December 31, Dollars in millions 2014 2013 2012 Revenues $ 6,439 $ 4,800 $ 3,442 Operating income $ 659 $ 660 $ 777 Net income $ 419 $ 355 $ 363 Unconsolidated Variable Interest Entities The following summarizes the total assets and total liabilities as reflected in our consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture, reduced for any unearned revenues on the projects. December 31, 2014 Dollars in millions Total assets Total liabilities Maximum exposure to loss Aspire Defence project $ 17 $ 118 $ 17 Ichthys LNG project $ 49 $ 35 $ 49 U.K. Road projects $ 34 $ 11 $ 34 EBIC Ammonia project $ 42 $ 2 $ 26 Dollars in millions December 31, 2013 Total assets Total liabilities Aspire Defence project $ 20 $ 2 Ichthys LNG project $ 1 $ 18 U.K. Road projects $ 34 $ 8 EBIC Ammonia project $ 47 $ 2 |
Schedule Of Variable Interest Entities | The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 31, 2014 Total assets Total liabilities Gorgon LNG project $ 282 $ 309 Escravos Gas-to-Liquids project $ 23 $ 36 Fasttrax Limited project $ 83 $ 81 Dollars in millions December 31, 2013 Total assets Total liabilities Gorgon LNG project $ 446 $ 476 Escravos Gas-to-Liquids project $ 43 $ 72 Fasttrax Limited project $ 96 $ 98 |
Pension and Postretirement Pl43
Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Obligations under the deferred compensation plan | The following table presents our obligations under our employee deferred compensation plan included in "employee compensation and benefits" in our consolidated balance sheets. December 31, Dollars in millions 2014 2013 Deferred compensation plans obligations $ 71 $ 66 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Changes In Projected Benefit Obligations | Plan assets, expenses and obligations for retirement plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2014 2013 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 79 $ 2,048 $ 91 $ 1,862 Service cost — 2 — 2 Interest cost 3 90 3 79 Foreign currency exchange rate changes — (123 ) — 37 Actuarial (gain) loss 11 191 (5 ) 129 Other — (4 ) — (2 ) Benefits paid (6 ) (66 ) (10 ) (59 ) Projected benefit obligations at end of period $ 87 $ 2,138 $ 79 $ 2,048 Change in plan assets: Fair value of plan assets at beginning of period $ 70 $ 1,580 $ 71 $ 1,491 Actual return on plan assets — 194 8 65 Employer contributions 2 46 1 53 Foreign currency exchange rate changes — (98 ) — 33 Benefits paid (6 ) (66 ) (10 ) (59 ) Other — (4 ) — (3 ) Fair value of plan assets at end of period $ 66 $ 1,652 $ 70 $ 1,580 Funded status $ (21 ) $ (486 ) $ (9 ) $ (468 ) |
Schedule Of Amounts Recognized On Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2014 2013 Amounts recognized on the consolidated balance sheets Other current liabilities (a) $ (5 ) $ — $ — $ — Pension obligations (16 ) (486 ) (9 ) (468 ) Total $ (21 ) $ (486 ) $ (9 ) $ (468 ) (a) In 2014, we reclassified the pension liability related to one of our terminated U.S. pension plans to "other current liabilities" on our consolidated balance sheets as we expect to settle the pension obligation within the next 12 months. |
Components Of Net Periodic Benefit Cost | Net periodic cost United States Int’l United States Int’l United States Int’l Dollars in millions 2014 2013 2012 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 3 90 3 79 3 81 Expected return on plan assets (4 ) (102 ) (5 ) (86 ) (4 ) (93 ) Settlements/curtailments 1 — 2 — — — Recognized actuarial loss 3 39 2 33 2 25 Net periodic benefit cost $ 3 $ 29 $ 2 $ 28 $ 1 $ 15 |
Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) | United States Int’l United States Int’l United States Int’l Dollars in millions 2014 2013 2012 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 2 Interest cost 3 90 3 79 3 81 Expected return on plan assets (4 ) (102 ) (5 ) (86 ) (4 ) (93 ) Settlements/curtailments 1 — 2 — — — Recognized actuarial loss 3 39 2 33 2 25 Net periodic benefit cost $ 3 $ 29 $ 2 $ 28 $ 1 $ 15 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2014 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2014 2013 Unrecognized actuarial loss, net of tax of $9 and $222, and $10 and $211, respectively $ 31 $ 639 $ 18 $ 590 Total in accumulated other comprehensive loss $ 31 $ 639 $ 18 $ 590 |
Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In 2014 | Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2015 are as follows: Dollars in millions United States International Actuarial loss $ 3 $ 35 Total $ 3 $ 35 |
Schedule Of Weighted-Average Assumptions | Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2014 2013 2012 Discount rate 3.38 % 4.45 % 3.09 % 4.50 % 3.74 % 4.90 % Expected return on plan assets 5.28 % 6.45 % 7.00 % 6.15 % 7.00 % 6.60 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2014 2013 Discount rate 2.89 % 3.65 % 3.38 % 4.45 % |
Schedule Of Allocation Of Plan Assets | The target asset allocation for our U.S. and International plans for 2015 is as follows: Asset Allocation 2015 Targeted United States Int'l Cash and cash equivalents 22 % — % Equity funds and securities 47 % 19 % Fixed income funds and securities 31 % 56 % Hedge funds — % 8 % Real estate funds — % 5 % Other — % 12 % Total 100 % 100 % A summary of total investments for KBR’s pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2014 United States plan assets Equity funds $ 28 $ — $ 28 $ — Equity securities — — — — Fixed income funds 23 23 — Government bonds — — — — Corporate bonds — — — — Cash and cash equivalents 15 — 15 — Total United States plan assets $ 66 $ — $ 66 $ — International plan assets Equity funds $ 406 $ 143 $ 218 $ 45 Equity securities 56 53 3 — Fixed income funds 706 287 354 65 Hedge funds 167 — 57 110 Real estate funds 83 — 41 42 Other funds 173 — 105 68 Cash and cash equivalents 60 60 — — Other 1 — — 1 Total international plan assets $ 1,652 $ 543 $ 778 $ 331 Total plan assets at December 31, 2014 $ 1,718 $ 543 $ 844 $ 331 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2013 United States plan assets Equity funds $ 15 $ 10 $ 5 $ — Equity securities 17 16 1 — Fixed income funds 8 8 — — Government bonds 4 — 4 — Corporate bonds 8 — 8 — Cash and cash equivalents 18 — 18 — Total United States plan assets $ 70 $ 34 $ 36 $ — International plan assets Equity funds $ 378 $ 116 $ 261 $ 1 Equity securities 51 50 1 — Fixed income funds 768 400 335 33 Hedge funds 130 — 25 105 Real estate funds 69 — 36 33 Other funds 120 — 69 51 Cash and cash equivalents 50 50 — — Other 14 7 — 7 Total international plan assets $ 1,580 $ 623 $ 727 $ 230 Total plan assets at December 31, 2013 $ 1,650 $ 657 $ 763 $ 230 |
Schedule Of Expected Benefit Payments | Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2015 $ 23 $ 63 2016 $ 4 $ 65 2017 $ 4 $ 66 2018 $ 4 $ 68 2019 $ 4 $ 70 Years 2020 – 2024 $ 21 $ 375 |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Allocation Of Plan Assets | The range of targeted asset allocations for our U.S. plans for 2015 and 2014 , by asset class, are as follows: Domestic Plans 2015 Targeted 2014 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Cash and cash equivalents 22 % 22 % 25 % 25 % Equity funds, securities and other 47 % 47 % 39 % 51 % Fixed income funds and securities 31 % 31 % 24 % 36 % |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Allocation Of Plan Assets | The range of targeted asset allocations for our International plans for 2015 and 2014 , by asset class, are as follows: International Plans 2015 Targeted 2014 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities — % 51 % — % 51 % Fixed income funds and securities — % 100 % — % 100 % Hedge funds — % 20 % — % 20 % Real estate funds — % 10 % — % 10 % Other — % 35 % — % 35 % |
Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Level 3 fair value measurement rollforward Dollars in millions Total Equity Funds Fixed Income Funds Hedge Funds Real Estate Funds Other Funds Other International plan assets Balance as of December 31, 2012 $ 219 $ — $ 44 $ 88 $ 27 $ 53 $ 7 Return on assets held at end of year 20 — (1 ) 15 3 3 — Return on assets sold during the year 3 — 3 — — — — Purchases, sales and settlements (15 ) 1 (12 ) — 2 (6 ) — Foreign exchange impact 3 — (1 ) 2 1 1 — Balance as of December 31, 2013 $ 230 $ 1 $ 33 $ 105 $ 33 $ 51 $ 7 Return on assets held at end of year 33 4 4 10 8 7 — Return on assets sold during the year 3 — — — 3 — — Purchases, sales and settlements, net 115 42 32 33 — 14 (6 ) Transfers to Level 2 (a) (30 ) — — (30 ) — — — Foreign exchange impact (20 ) (2 ) (4 ) (8 ) (2 ) (4 ) — Balance as of December 31, 2014 $ 331 $ 45 $ 65 $ 110 $ 42 $ 68 $ 1 (a) During 2014, liquidity restrictions on some of our investments in hedge funds lapsed. As a result, these investments were transferred to Level 2 as they may be redeemed at their net asset value within 90 days. |
Debt And Other Credit Facilit44
Debt And Other Credit Facilities Debt And Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Combined Principal Installments For Both Classes Of Bonds And Subordinated Notes | The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2014 : Dollars in millions Payments Due 2015 $ 10 2016 $ 10 2017 $ 11 2018 $ 12 2019 $ 12 Beyond 2019 $ 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Reconciliation Of Uncertain Tax Positions | Dollars in millions 2014 2013 2012 Balance at January 1 $ 68 $ 95 $ 120 Increases related to current year tax positions 13 3 6 Increases related to prior year tax positions 168 15 13 Decreases related to prior year tax positions (13 ) (36 ) (25 ) Settlements (1 ) — (11 ) Lapse of statute of limitations (5 ) (2 ) (9 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (2 ) (7 ) 1 Balance at December 31 $ 228 $ 68 $ 95 |
Schedule of Income before Income Tax, Domestic and Foreign | The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 United States $ (1,051 ) $ (141 ) $ (366 ) Foreign: United Kingdom 130 162 203 Australia 180 280 267 Canada (101 ) (117 ) 29 Other 65 116 155 Subtotal 274 441 654 Total $ (777 ) $ 300 $ 288 |
TaxesOnMultipleFinancialStatements | The total income taxes included in the statement of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 Provision for income taxes $ (421 ) $ (129 ) $ (86 ) Shareholders' equity, foreign currency translation adjustment 4 27 (8 ) Shareholders' equity, pension and post-retirement benefits 10 18 14 Shareholders' equity, compensation expense and other — — 5 Total income taxes $ (407 ) $ (84 ) $ (75 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Balance as of December 31, 2014 Federal $ 41 $ (333 ) $ (292 ) Foreign (110 ) (11 ) (121 ) State and other 1 (9 ) (8 ) Provision for income taxes $ (68 ) $ (353 ) $ (421 ) Balance as of December 31, 2013 Federal $ (6 ) $ 17 $ 11 Foreign (109 ) (31 ) (140 ) State and other 4 (4 ) — Provision for income taxes $ (111 ) $ (18 ) $ (129 ) Balance as of December 31, 2012 Federal $ 61 $ 12 $ 73 Foreign (130 ) (42 ) (172 ) State and other 1 12 13 Provision for income taxes $ (68 ) $ (18 ) $ (86 ) |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2014 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 487 $ (484 ) $ 3 United Kingdom 126 — 126 Australia 1 (1 ) — Canada 24 (25 ) (1 ) Mexico (88 ) — (88 ) Other 36 (28 ) 8 Total $ 586 $ (538 ) $ 48 |
Components Of Foreign Income Tax | The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 United Kingdom $ (22 ) $ (34 ) $ (53 ) Australia (24 ) (41 ) (40 ) Canada 6 (3 ) (7 ) Other (81 ) (62 ) (72 ) Foreign (provision) benefit for income taxes $ (121 ) $ (140 ) $ (172 ) |
Components of Deferred Income Tax | The components of our deferred income tax provision were as follows: Years ended December 31, Dollars in millions 2014 2013 2012 Deferred benefit $ 254 $ 48 $ 15 Tax reserves and allowances on current year activity (210 ) (39 ) (10 ) Tax reserves and allowances on beginning of year deferred balances (320 ) (9 ) 1 Unremitted foreign earnings (77 ) (5 ) (14 ) U.K. statutory rate change — (13 ) (10 ) Total deferred provision for income taxes $ (353 ) $ (18 ) $ (18 ) |
Summary of Operating Loss Carryforwards | At December 31, 2014 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2014 Expiration Foreign tax credit carryforwards $ 295 2021-2023 Federal net operating loss carryforwards $ 306 2033-2034 Foreign net operating loss carryforwards $ 301 2015-2034 Foreign net operating loss carryforwards $ 73 Indefinite State net operating loss carryforwards $ 632 Various |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 35% as a result of the following: Years ended December 31, 2014 2013 2012 U.S. statutory federal rate, expected (benefit) provision (35 )% 35 % 35 % Increase (reduction) in tax rate from: Rate differentials on foreign earnings (5 ) (12 ) (5 ) Noncontrolling interests (4 ) (5 ) (3 ) State and local income taxes, net of federal benefit (2 ) (1 ) — Other permanent differences, net 2 2 (16 ) Contingent liability accrual 9 7 (10 ) U.S. taxes on foreign unremitted earnings 11 2 4 Non-deductible goodwill impairment 20 — 22 Increase in valuation allowance 58 15 3 Effective tax rate on income from operations 54 % 43 % 30 % |
Schedule of Deferred Tax Assets and Liabilities | The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2014 2013 Deferred tax assets: Employee compensation and benefits $ 175 $ 176 Foreign tax credit carryforwards 233 179 Accrued foreign tax credit carryforwards 89 81 Loss carryforwards 133 118 Insurance accruals 22 25 Allowance for bad debt 10 8 Accrued liabilities 51 50 Total gross deferred tax assets 713 637 Valuation allowances (538 ) (83 ) Net deferred tax asset 175 554 Deferred tax liabilities: Construction contract accounting $ (15 ) $ (40 ) Intangibles (35 ) (49 ) Depreciation and amortization (2 ) (44 ) Unremitted foreign earnings (98 ) (19 ) Other 23 (6 ) Total gross deferred tax liabilities (127 ) (158 ) Deferred income tax asset, net $ 48 $ 396 |
Other Commitments And Conting46
Other Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Total Rental Payments on Noncancelable Operating Leases | Future total rental payments on noncancelable operating leases are as follows: Dollars in millions Future rental payments (a) 2015 $ 99 2016 $ 85 2017 $ 71 2018 $ 62 2019 $ 53 Beyond 2019 $ 383 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity Activities | The following tables summarize our activity in shareholders’ equity: Dollars in millions Total PIC Retained Earnings Treasury Stock AOCL NCI Balance at December 31, 2011 $ 2,442 $ 2,005 $ 1,607 (569 ) $ (548 ) $ (53 ) Deferred tax and foreign currency adjustments (a) 17 17 — — — — Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 7 7 — — — — Tax benefit increase related to share-based plans 4 4 — — — — Dividends declared to shareholders (42 ) — (42 ) — — — Repurchases of common stock (40 ) — — (40 ) — — Issuance of ESPP shares 3 — — 3 — — Distributions to noncontrolling interests (36 ) — — — — (36 ) Net income 202 — 144 — — 58 Other comprehensive (loss), net of tax (62 ) — — — (62 ) — Balance at December 31, 2012 $ 2,511 $ 2,049 $ 1,709 $ (606 ) $ (610 ) $ (31 ) Share-based compensation 16 16 — — — — Common stock issued upon exercise of stock options 6 6 — — — — Dividends declared to shareholders (36 ) — (36 ) — — — Adjustment pursuant to Accounting Referee's report on tax sharing agreement (7 ) (7 ) — — — — Repurchases of common stock (7 ) — — (7 ) — — Issuance of ESPP shares 4 1 — 3 — — Investments by noncontrolling interests 9 — — — — 9 Distributions to noncontrolling interests (109 ) — — — — (109 ) Change in NCI due to consolidation of previously unconsolidated JV and other transactions 2 — — — — 2 Net income 171 — 75 — — 96 Other comprehensive (loss), net of tax (121 ) — — — (130 ) 9 Balance at December 31, 2013 $ 2,439 $ 2,065 $ 1,748 $ (610 ) $ (740 ) $ (24 ) Share-based compensation 22 22 — — — — Common stock issued upon exercise of stock options 4 4 — — — — Dividends declared to shareholders (47 ) — (47 ) — — — Repurchases of common stock (106 ) — — (106 ) — — Issuance of ESPP shares 4 — — 4 — — Investments by noncontrolling interests 10 — — — — 10 Distributions to noncontrolling interests (61 ) — — — — (61 ) Other noncontrolling interests activity 2 — — — — 2 Net income (loss) (1,198 ) — (1,262 ) — — 64 Other comprehensive income (loss), net of tax (134 ) — — — (136 ) 2 Balance at December 31, 2014 $ 935 $ 2,091 $ 439 $ (712 ) $ (876 ) $ (7 ) |
Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Pension and post-retirement benefits Changes in fair value of derivatives Total Balance as of December 31, 2012 $ (88 ) $ (521 ) $ (1 ) $ (610 ) Other comprehensive income adjustments before reclassifications (44 ) (122 ) 1 (165 ) Amounts reclassified from accumulated other comprehensive income 1 35 (1 ) 35 Balance at December 31, 2013 $ (131 ) $ (608 ) $ (1 ) $ (740 ) Other comprehensive income adjustments before reclassifications (73 ) (104 ) (2 ) (179 ) Amounts reclassified from accumulated other comprehensive income 1 42 — 43 Balance at December 31, 2014 $ (203 ) $ (670 ) $ (3 ) $ (876 ) Accumulated other comprehensive loss, net of tax December 31, Dollars in millions 2014 2013 2012 Accumulated foreign currency translation adjustments, net of tax of $(4), $0 and $27 $ (203 ) $ (131 ) $ (88 ) Pension and post-retirement benefits, net of tax of $(231), $(221) and $(203) (670 ) (608 ) (521 ) Changes in fair value of derivatives, net of tax of $0, $0 and $0 (3 ) (1 ) (1 ) Total accumulated other comprehensive loss $ (876 ) $ (740 ) $ (610 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications out of accumulated other comprehensive loss, net of tax, by component Dollars in millions December 31, 2014 December 31, 2013 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency translation adjustments Realized foreign currency translation adjustments $ (4 ) $ (1 ) Loss (gain) on disposition of assets, net Tax expense 3 — Provision for income taxes Net foreign currency translation adjustments realized $ (1 ) $ (1 ) Net of tax Pension and post-retirement benefits Amortization of actuarial loss (a) $ (52 ) $ (53 ) See (a) below Tax benefit 10 18 Provision for income taxes Net pension and post-retirement benefits $ (42 ) $ (35 ) Net of tax Changes in fair value of derivatives Realized losses on derivatives $ — $ 1 Cost of revenues Tax benefit — — Provision for income taxes Net change in fair value of derivatives $ — $ 1 Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 11 to our consolidated financial statements for further discussion. |
Shares Of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2012 173.2 Common stock issued 0.7 Balance at December 31, 2013 173.9 Common stock issued 0.5 Balance at December 31, 2014 174.4 |
Shares of Treasury Stock | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2012 25.6 $ 606 Treasury stock acquired, net of ESPP shares issued 0.1 4 Balance at December 31, 2013 25.7 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 $ 712 The table below presents information on our share repurchases activity under the share repurchase authorization: December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 666,599 $ 26.24 18 Total 4,041,078 $ 106 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Schedule of shares repurchased | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2012 25.6 $ 606 Treasury stock acquired, net of ESPP shares issued 0.1 4 Balance at December 31, 2013 25.7 610 Treasury stock acquired, net of ESPP shares issued 3.9 102 Balance at December 31, 2014 29.6 $ 712 The table below presents information on our share repurchases activity under the share repurchase authorization: December 31, 2014 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 3,374,479 $ 26.13 $ 88 Repurchases under the existing share maintenance program 666,599 $ 26.24 18 Total 4,041,078 $ 106 |
Stock-Based Compensation And 49
Stock-Based Compensation And Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Assumption | Total number of stock options granted and the assumptions used to determine the fair value of granted options were as follows: Years ended December 31, KBR stock options assumptions summary 2014 2013 Granted stock options (shares in millions) 0.6 0.9 Weighted average expected term (in years) 5.5 6.5 Weighted average grant-date fair value per share $ 9.57 $ 11.40 Years ended December 31, KBR stock options range assumptions summary 2014 2013 Range Range Start End Start End Expected volatility range 36.48 % 40.49 % 39.98 % 41.89 % Expected dividend yield range 1.08 % 1.52 % 0.89 % 1.11 % Risk-free interest rate range 1.67 % 2.21 % 0.98 % 2.09 % |
Summary of Stock Option Activity | The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2014 . KBR stock options activity summary Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2013 3,274,623 $ 26.27 6.93 $ 22.49 Granted 638,270 27.78 Exercised (266,829 ) 15.91 Forfeited (339,882 ) 30.41 Expired (146,091 ) 27.26 Outstanding at December 31, 2014 3,160,091 $ 26.96 6.54 $ 2.40 Exercisable at December 31, 2014 2,078,401 $ 25.59 5.48 $ 2.40 |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2014 under the KBR Stock Plan. Restricted stock activity summary Number of Shares Weighted Average Grant-Date Fair Value per Share Nonvested shares at December 31, 2013 668,766 $ 29.64 Granted 1,060,480 28.46 Vested (397,521 ) 27.82 Forfeited (202,848 ) 30.63 Nonvested shares at December 31, 2014 1,128,877 $ 28.99 |
Stock-Based Compensation Summary Table | Share-based compensation summary table Years ended December 31 Dollars in millions 2014 2013 2012 Share-based compensation $ 22 $ 16 $ 16 Total income tax benefit recognized in net income for share-based compensation arrangements $ 8 $ 6 $ 6 Incremental compensation cost $ 2 $ 1 $ 1 Tax benefit increase related to share-based plans $ — $ — $ 4 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding | A reconciliation of the number of shares used for the basic and diluted income (loss) per share calculations is as follows: Years ended December 31, Shares in millions 2014 2013 2012 Basic weighted average common shares outstanding 146 148 148 Stock options and restricted shares — 1 1 Diluted weighted average common shares outstanding 146 149 149 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | (Dollars in millions, except per share amounts) First Second Third Fourth Year 2014 Total revenues $ 1,633 $ 1,659 $ 1,657 $ 1,417 $ 6,366 Gross profit (loss) (a) 39 28 30 (162 ) (65 ) Equity in earnings of unconsolidated affiliates 31 49 38 45 163 Operating income (loss) (b) 10 25 10 (839 ) (794 ) Net income (loss) (c) (20 ) 8 45 (1,231 ) (1,198 ) Net income attributable to noncontrolling interests (23 ) (16 ) (15 ) (10 ) (64 ) Net income (loss) attributable to KBR (43 ) (8 ) 30 (1,241 ) (1,262 ) Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) Net income (loss) attributable to KBR per share—Diluted $ (0.29 ) $ (0.06 ) $ 0.21 $ (8.57 ) $ (8.66 ) (Dollars in millions, except per share amounts) First Second Third Fourth Year 2013 Total revenues $ 1,829 $ 1,950 $ 1,755 $ 1,680 $ 7,214 Gross profit (d) 156 140 114 7 417 Equity in earnings of unconsolidated affiliates 30 46 31 30 137 Operating income (loss) 133 123 79 (27 ) 308 Net income (loss) (d) 97 111 15 (52 ) 171 Net income attributable to noncontrolling interests (9 ) (21 ) (62 ) (4 ) (96 ) Net income (loss) attributable to KBR 88 90 (47 ) (56 ) 75 Net income (loss) attributable to KBR per share: Net income (loss) attributable to KBR per share—Basic $ 0.59 $ 0.61 $ (0.32 ) $ (0.38 ) $ 0.50 Net income (loss) attributable to KBR per share—Diluted $ 0.59 $ 0.61 $ (0.32 ) $ (0.38 ) $ 0.50 |
Description Of Company And Si52
Description Of Company And Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
Intangibles not subject to amortization | $ 11 | $ 11 |
Period In Years That Unrecognized Actuarial Net Gains (Losses) Are Being Recognized | 15 years | |
Finite lived intangible assets useful lives | 25 years | |
Restricted cash and cash equivalents | $ 17 | $ 1 |
Description Of Company And Si53
Description Of Company And Significant Accounting Policies (Schedule Of Revenue And Receivables From Major Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 1,680 | $ 1,755 | $ 1,950 | $ 1,829 | $ 6,366 | $ 7,214 | $ 7,770 |
Chevron [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 1,069 | $ 1,859 | $ 2,302 | ||||||||
Revenue percentage | 0.00% | 0.00% | 0.00% | ||||||||
Receivables percentage | 0.00% | 0.00% | 0.00% |
Description Of Company And Si54
Description Of Company And Significant Accounting Policies (Schedule Of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Other Inventory, Noncurrent | $ 8 | $ 13 |
Restricted cash and cash equivalents | 17 | 1 |
Prepaid expenses | 58 | 72 |
Value-added tax receivable | 27 | 24 |
Assets held-for-sale | 10 | 0 |
Other miscellaneous assets | 27 | 86 |
Total other current assets | $ 147 | $ 196 |
Description Of Company And Si55
Description Of Company And Significant Accounting Policies Description Of Company And Significant Accounting Policies (Components Of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ||||
Provision for Loss on Contracts | $ 159 | $ 109 | $ 56 | $ 22 |
Retainage payable | 88 | 102 | ||
Income taxes payable | 61 | 60 | ||
Deferred tax liabilities | 46 | 31 | ||
ValueAddedTaxPayableCurrent | 31 | 29 | ||
Self Insurance Reserve, Noncurrent | 19 | 26 | ||
Dividends Payable | 12 | 12 | $ 12 | $ 12 |
Other miscellaneous liabilities | 72 | 40 | ||
Total other current liabilities | $ 488 | $ 409 |
Business Segment Information (S
Business Segment Information (Schedule Of Operations By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 1,680 | $ 1,755 | $ 1,950 | $ 1,829 | $ 6,366 | $ 7,214 | $ 7,770 |
Gross profit (loss) | (162) | 30 | 28 | 39 | 7 | 114 | 140 | 156 | (65) | 417 | 518 |
Equity in earnings of unconsolidated affiliates | 45 | 38 | 49 | 31 | 30 | 31 | 46 | 30 | 163 | 137 | 151 |
Impairment of goodwill | (446) | 0 | (178) | ||||||||
Capital expenditures | 53 | 78 | 75 | ||||||||
Depreciation | 72 | 68 | 65 | ||||||||
Restructuring Costs and Asset Impairment Charges | (214) | 0 | (2) | ||||||||
Operating income (loss) | $ (839) | $ 10 | $ 25 | $ 10 | $ (27) | $ 79 | $ 123 | $ 133 | (794) | 308 | 299 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 5,575 | 6,217 | 7,017 | ||||||||
Gross profit (loss) | 162 | 422 | 613 | ||||||||
Equity in earnings of unconsolidated affiliates | 163 | 137 | 146 | ||||||||
Impairment of goodwill | (293) | 0 | 0 | ||||||||
Capital expenditures | 53 | 78 | 75 | ||||||||
Depreciation | 66 | 61 | 56 | ||||||||
Restructuring Costs and Asset Impairment Charges | (180) | 0 | (2) | ||||||||
Operating income (loss) | (352) | 312 | 570 | ||||||||
Operating Segments [Member] | Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Gross profit (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Capital expenditures | 34 | 67 | 65 | ||||||||
Depreciation | 33 | 27 | 22 | ||||||||
Restructuring Costs and Asset Impairment Charges | (149) | 0 | (2) | ||||||||
Operating income (loss) | (312) | (181) | (155) | ||||||||
Operating Segments [Member] | Technology and Consulting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 353 | 330 | 296 | ||||||||
Gross profit (loss) | 53 | 69 | 80 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Capital expenditures | 0 | 0 | 1 | ||||||||
Depreciation | 2 | 2 | 2 | ||||||||
Restructuring Costs and Asset Impairment Charges | (2) | 0 | 0 | ||||||||
Operating income (loss) | 49 | 70 | 80 | ||||||||
Operating Segments [Member] | Engineering and Construction [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,584 | 4,956 | 5,616 | ||||||||
Gross profit (loss) | 141 | 263 | 450 | ||||||||
Equity in earnings of unconsolidated affiliates | 90 | 76 | 79 | ||||||||
Impairment of goodwill | (293) | 0 | 0 | ||||||||
Capital expenditures | 19 | 10 | 8 | ||||||||
Depreciation | 23 | 23 | 23 | ||||||||
Restructuring Costs and Asset Impairment Charges | (24) | 0 | 0 | ||||||||
Operating income (loss) | (114) | 278 | 499 | ||||||||
Operating Segments [Member] | Government Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 638 | 931 | 1,105 | ||||||||
Gross profit (loss) | (32) | 90 | 83 | ||||||||
Equity in earnings of unconsolidated affiliates | 73 | 61 | 67 | ||||||||
Impairment of goodwill | 0 | 0 | 0 | ||||||||
Capital expenditures | 0 | 1 | 1 | ||||||||
Depreciation | 8 | 9 | 9 | ||||||||
Restructuring Costs and Asset Impairment Charges | (5) | 0 | 0 | ||||||||
Operating income (loss) | 25 | 145 | 146 | ||||||||
Operating Segments [Member] | Non-strategic Business [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 791 | 997 | 753 | ||||||||
Gross profit (loss) | (227) | (5) | (95) | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 5 | ||||||||
Impairment of goodwill | (153) | 0 | (178) | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation | 6 | 7 | 9 | ||||||||
Restructuring Costs and Asset Impairment Charges | (34) | 0 | 0 | ||||||||
Operating income (loss) | $ (442) | $ (4) | $ (271) |
Business Segment Information 57
Business Segment Information (Schedule Of Balance Sheet Information By Operating Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 4,199 | $ 5,438 | |
Goodwill | 324 | 772 | $ 153 |
Equity in and advances to related companies | 151 | 156 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,029 | 5,063 | |
Goodwill | 324 | 619 | 626 |
Equity in and advances to related companies | 150 | 152 | |
Operating Segments [Member] | Technology and Consulting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 173 | 224 | |
Goodwill | 31 | 31 | 31 |
Equity in and advances to related companies | 0 | 0 | |
Operating Segments [Member] | Engineering and Construction [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,020 | 2,308 | |
Goodwill | 233 | 528 | 534 |
Equity in and advances to related companies | 119 | 99 | |
Operating Segments [Member] | Government Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 532 | 693 | |
Goodwill | 60 | 60 | $ 61 |
Equity in and advances to related companies | 31 | 53 | |
Operating Segments [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,304 | 1,838 | |
Goodwill | 0 | 0 | |
Equity in and advances to related companies | 0 | 0 | |
Operating Segments [Member] | Non-strategic Business [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 170 | 375 | |
Goodwill | 0 | 153 | |
Equity in and advances to related companies | $ 1 | $ 4 |
Business Segment Information 58
Business Segment Information (Schedule Of Selected Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | $ 1,680 | $ 1,755 | $ 1,950 | $ 1,829 | $ 6,366 | $ 7,214 | $ 7,770 |
Total Long-Lived Assets (PP&E) | 247 | 415 | 247 | 415 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,324 | 2,470 | 2,118 | ||||||||
Total Long-Lived Assets (PP&E) | 115 | 272 | 115 | 272 | |||||||
UNITED KINGDOM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Long-Lived Assets (PP&E) | 68 | 83 | 68 | 83 | |||||||
Asia Pacific (Includes Australia) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,380 | 1,768 | 1,767 | ||||||||
Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 251 | 593 | 1,610 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 624 | 575 | 582 | ||||||||
Other Middle East [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 707 | 913 | 1,013 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 752 | 687 | 431 | ||||||||
Other Countries [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 328 | 208 | $ 249 | ||||||||
Total Long-Lived Assets (PP&E) | $ 64 | $ 60 | $ 64 | $ 60 |
Business Segment Information Bu
Business Segment Information Business Segment Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ||||
Changes in Estimates at Completion | $ 87 | $ 109 | ||
Provision for Loss on Contracts | 159 | 109 | $ 56 | $ 22 |
Canadian Pipe Fabrication And Module Assembly Projects [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Changes in Estimates at Completion | 72 | 132 | ||
Provision for Loss on Contracts | 53 | $ 97 | ||
Power Projects [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Changes in Estimates at Completion | 173 | |||
Provision for Loss on Contracts | $ 80 |
Business Segment Information Sc
Business Segment Information Schedule of Changes in Estimates (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | $ 159 | $ 109 | $ 56 | $ 22 |
Initial Changes [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | 177 | 106 | 53 | |
Amortization of Loss Provision [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Provision for Loss on Contracts | $ (127) | $ (53) | $ (19) |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash and Cash Equivalents [Line Items] | ||||
Foreign Earnings Repatriated | $ 370 | |||
Cash and equivalents | 970 | $ 1,106 | $ 1,053 | $ 966 |
Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 330 | 412 | ||
Bank Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 560 | 618 | ||
Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 80 | 76 | ||
International [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 761 | 742 | ||
International [Member] | Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 209 | 197 | ||
International [Member] | Bank Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 481 | 478 | ||
International [Member] | Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 71 | 67 | ||
Domestic [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 209 | 364 | ||
Domestic [Member] | Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 121 | 215 | ||
Domestic [Member] | Bank Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | 79 | 140 | ||
Domestic [Member] | Cash Held in Joint Venture [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and equivalents | $ 9 | $ 9 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | $ 726 | $ 929 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 676 | 874 |
Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 50 | 55 |
Technology and Consulting [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 51 | 63 |
Technology and Consulting [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 51 | 63 |
Technology and Consulting [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 583 | 777 |
Engineering and Construction [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 538 | 725 |
Engineering and Construction [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 45 | 52 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 89 | 88 |
Government Services [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 84 | 85 |
Government Services [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 5 | 3 |
Other Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 3 | 1 |
Other Segment [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 3 | 1 |
Other Segment [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 0 | 0 |
Non-strategic Business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 121 | 127 |
Non-strategic Business [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 73 | 82 |
Non-strategic Business [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 48 | 45 |
Operating Segments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 847 | 1,056 |
Operating Segments [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 749 | 956 |
Operating Segments [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Account receivable, current | 98 | 100 |
Other Assets [Member] | Infrastructure Government And Power [Member] | Retainage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non current | $ 14 | $ 14 |
CIE and BIE CIE (Details)
CIE and BIE CIE (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Costs in Excess of Billings, Current | $ 490 | $ 399 |
Operating Segments [Member] | ||
Costs in Excess of Billings, Current | 468 | 390 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Costs in Excess of Billings, Current | 38 | 37 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Costs in Excess of Billings, Current | 357 | 230 |
Operating Segments [Member] | Government Services [Member] | ||
Costs in Excess of Billings, Current | 73 | 123 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Costs in Excess of Billings, Current | $ 22 | $ 9 |
CIE and BIE BIE (Details)
CIE and BIE BIE (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Billings in Excess of Cost | $ 531 | $ 401 |
Operating Segments [Member] | ||
Billings in Excess of Cost | 361 | 280 |
Operating Segments [Member] | Technology and Consulting [Member] | ||
Billings in Excess of Cost | 56 | 53 |
Operating Segments [Member] | Government Services [Member] | ||
Billings in Excess of Cost | 93 | 88 |
Operating Segments [Member] | Non-strategic Business [Member] | ||
Billings in Excess of Cost | 170 | 121 |
Operating Segments [Member] | Engineering and Construction [Member] | ||
Billings in Excess of Cost | $ 212 | $ 139 |
Percentage-Of-Completion Cont65
Percentage-Of-Completion Contracts (Schedule Of Unapproved Claims And Change Orders) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Contractors [Abstract] | |||
Unapproved Change Orders And Claims Recorded In Revenues | $ 24 | $ 93 | |
Unapproved change orders | 31 | 115 | $ 167 |
Changes in Estimates at Completion | 87 | 109 | |
Change Orders Approved by Customer | $ (171) | $ (161) |
Percentage-Of-Completion Cont66
Percentage-Of-Completion Contracts (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unapproved change orders | $ 31 | $ 115 | $ 167 |
Liquidated damages | 12 | 10 | |
Customer Advances, Current | 0 | 50 | |
Parent Share of Probable Unapproved Claims of Unconsolidated Subsidiary [Member] | |||
Unapproved change orders | $ 78 | $ 58 |
Claims and Accounts Receivabl67
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 628 | $ 570 |
Performance Bond Recovery Including Interest | 26 | |
Engineering and Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | 401 | 425 |
Government Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | 227 | 145 |
Pemex [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of judgment awarded to enterprise | 465 | |
Performance Bond Recovery Including Interest | $ 106 | |
Claims and Account Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 401 |
Property, Plant And Equipment68
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ||||
Total | $ 632 | $ 812 | ||
Less accumulated depreciation | (385) | (397) | ||
Net property, plant and equipment | 247 | 415 | ||
Depreciation | 61 | 54 | $ 50 | |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 13 | 19 | ||
Buildings And Property Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 198 | 213 | ||
Equipment And Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 421 | $ 580 | ||
Minimum [Member] | Buildings And Property Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives in Years, Minimum | 5 years | |||
Estimated Useful Lives in Years, Maximum | 5 years | |||
Minimum [Member] | Equipment And Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives in Years, Minimum | 3 years | |||
Estimated Useful Lives in Years, Maximum | 3 years | |||
Maximum [Member] | Buildings And Property Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives in Years, Minimum | 44 years | |||
Estimated Useful Lives in Years, Maximum | 44 years | |||
Maximum [Member] | Equipment And Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives in Years, Minimum | 25 years | |||
Estimated Useful Lives in Years, Maximum | 25 years | |||
Office Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||
Proceeds from Real Estate and Real Estate Joint Ventures | $ 175 | |||
Gain (Loss) on Sale of Properties | $ 44 | |||
Gain (Loss) on Disposition of Property Plant Equipment | 3 | $ 3 | 0 | |
ClintonDrive [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (Loss) on Sale of Properties | 27 | |||
Proceeds from Sale of Real Estate Held-for-investment | $ 42 | |||
Other Current Liabilities [Member] | Office Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Deferred Gain on Sale of Property | 3 | 3 | ||
Other Liabilities [Member] | Office Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Deferred Gain on Sale of Property | $ 37 | $ 39 |
Goodwill And Intangible Asset69
Goodwill And Intangible Assets (Narrative) (Details) - Reporting Segment [Domain] - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill, Written off Related to Sale of Business Unit | $ 0 | ||
Impairment of goodwill | $ (446,000,000) | $ 0 | $ (178,000,000) |
Estimated useful life (years) | 25 years |
Goodwill And Intangible Asset70
Goodwill And Intangible Assets (Summary Of Goodwill By Reportable Segments) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | $ 0 | ||
Balance, Beginning of period | $ 772,000,000 | 153,000,000 | |
Impairment of goodwill | (446,000,000) | 0 | $ (178,000,000) |
Balance, End of period | 324,000,000 | 772,000,000 | 153,000,000 |
Operating Segments [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | (3,000,000) | ||
Goodwill, Translation Adjustments | (2,000,000) | (4,000,000) | |
Goodwill, Gross | 948,000,000 | 950,000,000 | 957,000,000 |
Balance, Beginning of period | 772,000,000 | 779,000,000 | |
Impairment of goodwill | (446,000,000) | ||
Balance, End of period | 324,000,000 | 772,000,000 | 779,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | (624,000,000) | (178,000,000) | (178,000,000) |
Non-strategic Business [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 331,000,000 | 331,000,000 | 331,000,000 |
Balance, Beginning of period | 153,000,000 | ||
Balance, End of period | 153,000,000 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (331,000,000) | (178,000,000) | (178,000,000) |
Operating Segments [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | (3,000,000) | ||
Goodwill, Translation Adjustments | (2,000,000) | (4,000,000) | |
Goodwill, Gross | 617,000,000 | 619,000,000 | 626,000,000 |
Balance, Beginning of period | 619,000,000 | 626,000,000 | |
Impairment of goodwill | (293,000,000) | 0 | 0 |
Balance, End of period | 324,000,000 | 619,000,000 | 626,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | (293,000,000) | 0 | 0 |
Operating Segments [Member] | Technology and Consulting [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Goodwill, Translation Adjustments | 0 | 0 | |
Goodwill, Gross | 31,000,000 | 31,000,000 | 31,000,000 |
Balance, Beginning of period | 31,000,000 | 31,000,000 | |
Impairment of goodwill | 0 | 0 | 0 |
Balance, End of period | 31,000,000 | 31,000,000 | 31,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |
Operating Segments [Member] | Engineering and Construction [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | (3,000,000) | ||
Goodwill, Translation Adjustments | (2,000,000) | (3,000,000) | |
Goodwill, Gross | 526,000,000 | 528,000,000 | 534,000,000 |
Balance, Beginning of period | 528,000,000 | 534,000,000 | |
Impairment of goodwill | (293,000,000) | 0 | 0 |
Balance, End of period | 233,000,000 | 528,000,000 | 534,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |
Operating Segments [Member] | Government Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Goodwill, Translation Adjustments | (1,000,000) | ||
Goodwill, Gross | 60,000,000 | 60,000,000 | 61,000,000 |
Balance, Beginning of period | 60,000,000 | 61,000,000 | |
Impairment of goodwill | 0 | 0 | 0 |
Balance, End of period | $ 60,000,000 | 60,000,000 | 61,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
Goodwill And Intangible Asset71
Goodwill And Intangible Assets (Cost And Accumulated Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangibles not subject to amortization | $ 11 | $ 11 |
Intangibles subject to amortization | 126 | 186 |
Total intangibles | 137 | 197 |
Accumulated amortization of intangibles | (96) | (112) |
Net intangibles | $ 41 | $ 85 |
Goodwill And Intangible Asset72
Goodwill And Intangible Assets (Amortization Expense Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 11 | $ 14 | $ 15 |
Goodwill And Intangible Asset73
Goodwill And Intangible Assets (Expected Amortization Expense Of Intangibles) (Details) $ in Millions | Dec. 31, 2014USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,015 | $ 4 |
2,016 | 3 |
2,017 | 3 |
2,018 | 3 |
2,019 | 3 |
Beyond 2,019 | $ 14 |
Asset Impairment and Restruct74
Asset Impairment and Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | $ 171 | $ 0 | $ 2 | |
Capitalized Costs ERP | $ 165 | 165 | ||
Severance Costs | $ 8 | |||
Asset impairment and restructuring charges | 214 | $ 0 | $ 2 | |
ERP [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 135 | |||
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 21 | |||
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 180 | |||
Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 2 | |||
Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 24 | |||
Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 5 | |||
Operating Segments [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 149 | |||
Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 34 | |||
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 171 | |||
Facility Closing [Member] | ERP [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 135 | |||
Facility Closing [Member] | Other Intangible Assets [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 31 | |||
Facility Closing [Member] | Property, Plant and Equipment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 5 | |||
Facility Closing [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 140 | |||
Facility Closing [Member] | Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 1 | |||
Facility Closing [Member] | Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 139 | |||
Facility Closing [Member] | Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 31 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 135 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 135 | |||
Facility Closing [Member] | Operating Segments [Member] | ERP [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Other Intangible Assets [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 31 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 5 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 1 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 4 | |||
Facility Closing [Member] | Operating Segments [Member] | Property, Plant and Equipment [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 29 | |||
Employee Severance [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 29 | |||
Employee Severance [Member] | Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 2 | |||
Employee Severance [Member] | Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 14 | |||
Employee Severance [Member] | Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 3 | |||
Employee Severance [Member] | Operating Segments [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 10 | |||
Employee Severance [Member] | Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 0 | |||
Contract Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 14 | |||
Contract Termination [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 11 | |||
Contract Termination [Member] | Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 0 | |||
Contract Termination [Member] | Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 9 | |||
Contract Termination [Member] | Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 2 | |||
Contract Termination [Member] | Operating Segments [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 0 | |||
Contract Termination [Member] | Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Contract Termination | 3 | |||
Employee Severance and Contract Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 43 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 40 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | Technology and Consulting [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 2 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | Engineering and Construction [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 23 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | Government Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 5 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | Other Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | 10 | |||
Employee Severance and Contract Termination [Member] | Operating Segments [Member] | Non-strategic Business [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and restructuring charges | $ 3 |
Equity Method Investments And75
Equity Method Investments And Variable Interest Entities (Narrative) (Details) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2006 | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2014GBP (£) | |
Aspire Defence [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 45.00% | ||||
Ichthys LNG Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 30.00% | ||||
MMM [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage interest in unconsolidated joint venture | 50.00% | 50.00% | |||
Allenby Connaught Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Term of contracted services portion of project (in years) | 35 years | ||||
Term of construction portion of project (in years) | 9 years | ||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 17 | ||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 118 | ||||
Allenby Connaught Project [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 17 | ||||
Ichthys LNG Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 49 | ||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | 35 | ||||
Ichthys LNG Project [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 49 | ||||
U.K. Road Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 25.00% | ||||
U.K. Road Projects [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 34 | ||||
Construction And Related Support Services Joint Ventures [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50.00% | ||||
EBIC Ammonia Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount of assets associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 42 | ||||
Amount of liabilities associated with our investment in a project on a unconsolidated VIE that is reported within our condensed consolidated balance sheet | $ 2 | ||||
EBIC Ammonia Project [Member] | Parent Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage the enterprise has in a development company that has a minority interest in a VIE | 65.00% | 65.00% | |||
EBIC Ammonia Project [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 26 | ||||
EBIC Ammonia Project [Member] | Development Corporation [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Development company's ownership interest in a company that consolidates a VIE | 25.00% | 25.00% | |||
Fasttrax Limited Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50.00% | ||||
Percentage of subsidiary owned by the parent entity | 100.00% | 100.00% | |||
Assets collateralizing the Joint Venture's senior bonds, cash and equivalents | $ 23 | ||||
Assets collateralizing the Joint Venture's senior bonds, property, plant and equipment | $ 57 | ||||
Escravos Gas-To-Liquids Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50.00% | ||||
Cash held by consolidated joint ventures | $ 8 | $ 8 | |||
Gorgon LNG Project [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 30.00% | ||||
Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Subordinated notes payable, interest rate | 16.00% | ||||
Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Subordinated notes payable, interest rate | 11.25% | ||||
Class A 3.5% Index Linked Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guaranteed secured bonds, percentage | 3.50% | 3.50% | |||
Class B 5.9% Fixed Rate Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guaranteed secured bonds, percentage | 5.90% | 5.90% | |||
United Kingdom, Pounds | Class A 3.5% Index Linked Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Secured bonds | £ | £ 56 | ||||
United Kingdom, Pounds | Class B 5.9% Fixed Rate Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Secured bonds | £ | £ 16.7 | ||||
United States of America, Dollars | Class A 3.5% Index Linked Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Secured bonds | $ 79 | ||||
United States of America, Dollars | Class B 5.9% Fixed Rate Bonds [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Secured bonds | 24 | ||||
Transactions with Related Parties [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from Related Parties | 351 | 253 | $ 145 | ||
Accounts Receivable, Net, Current | $ 7 | $ 6 | |||
Nonrecourse Project Finance Debt [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage interest in unconsolidated joint venture | 50.00% | 50.00% | |||
Number of heavy equipment transporters | 91 |
Equity Method Investments And76
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 3,098 | $ 4,114 |
Noncurrent assets | 4,069 | 4,222 |
Total assets | 7,167 | 8,336 |
Current liabilities | 2,969 | 3,679 |
Noncurrent liabilities | 4,090 | 4,400 |
Total liabilities and member's equity | $ 7,059 | $ 8,079 |
Equity Method Investments And77
Equity Method Investments And Variable Interest Entities (Consolidated Summarized Financial Information Statements Of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue | $ 6,439 | $ 4,800 | $ 3,442 |
Operating income | 659 | 660 | 777 |
Net income | $ 419 | $ 355 | $ 363 |
Equity Method Investments And78
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) £ in Millions, $ in Millions | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2013USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | $ 63 | $ 78 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | U.K. Road Projects [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 34 | 34 | |
Unconsolidated VIEs, Total liabilities | 11 | 8 | |
Maximum exposure to loss | 34 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Allenby Connaught Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 17 | 20 | |
Unconsolidated VIEs, Total liabilities | 118 | 2 | |
Maximum exposure to loss | 17 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Ichthys LNG Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 49 | 1 | |
Unconsolidated VIEs, Total liabilities | 35 | 18 | |
Maximum exposure to loss | 49 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | EBIC Ammonia Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated VIEs, Total assets | 42 | 47 | |
Unconsolidated VIEs, Total liabilities | 2 | 2 | |
Maximum exposure to loss | 26 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Fasttrax Limited Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 83 | 96 | |
Consolidated VIEs, Total liabilities | 81 | 98 | |
Variable Interest Entity, Primary Beneficiary [Member] | Escravos Gas-To-Liquids Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 23 | 43 | |
Consolidated VIEs, Total liabilities | 36 | 72 | |
Variable Interest Entity, Primary Beneficiary [Member] | Gorgon LNG Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Consolidated VIEs, Total assets | 282 | 446 | |
Consolidated VIEs, Total liabilities | 309 | $ 476 | |
Nonrecourse Project Finance Debt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | £ | £ 84.9 | ||
Non-recourse debt bridge financing | £ | £ 12.2 | ||
United States of America, Dollars | Nonrecourse Project Finance Debt [Member] | Fasttrax Limited Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Nonrecourse project debt | 120 | ||
Non-recourse debt bridge financing | $ 17 |
Equity Method Investments And79
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 151 | $ 156 | $ 151 | $ 156 | |||||||
Income (Loss) from Equity Method Investments | 45 | $ 38 | $ 49 | $ 31 | 30 | $ 31 | $ 46 | $ 30 | 163 | 137 | $ 151 |
Collection (repayment) of advances from (to) unconsolidated affiliates, net | 13 | 14 | $ (6) | ||||||||
Reclassification of Excess Dividend | 7 | ||||||||||
Beginning Balance [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | 156 | 217 | 156 | 217 | |||||||
Joint Venture Earnings [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | 163 | 137 | 163 | 137 | |||||||
Dividends Paid by Joint Venture [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | (249) | (180) | (249) | (180) | |||||||
Advances [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | (13) | (14) | (13) | (14) | |||||||
Cumulative Translation Adjustment [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | (1) | (5) | (1) | (5) | |||||||
Other Activity [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | 0 | 1 | 0 | 1 | |||||||
Subtotal Before Reclassification [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | 56 | 156 | 56 | 156 | |||||||
Reclassification of excess distribution [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | 95 | $ 102 | 0 | 95 | 0 | ||||||
Ending Balance [Member] | |||||||||||
Equity In Earnings of Unconsolidated Affiliates [Line Items] | |||||||||||
Equity Method Investments | $ 151 | $ 156 | $ 151 | $ 156 |
Equity Method Investments And80
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items] | ||
Costs in Excess of Billings, Current | $ 490 | $ 399 |
Transactions with Related Parties [Member] | ||
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items] | ||
Due from Related Parties, Current | 7 | 6 |
Costs in Excess of Billings, Current | 2 | 2 |
Billings in Excess of Cost | $ 21 | $ 24 |
Pension and Postretirement Pl81
Pension and Postretirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expenses | $ 72 | $ 78 | $ 81 |
Multi-employer plan contribution | 29 | $ 22 | $ 10 |
Funded amount of nonqualified deferred compensation program | 9 | ||
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contributions in next fiscal year | $ 43 |
Pension and Postretirement Pl82
Pension and Postretirement Plans (Schedule Of Changes In Projected Benefit Obligations) (Details) - Fair Value, Measurements, Fair Value Hierarchy [Domain] - Plan Asset Categories [Domain] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,718 | $ 1,650 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 70 | $ 71 |
Projected benefit obligation at beginning of period | 79 | 91 | |
Service cost | 0 | 0 | 0 |
Interest cost | 3 | 3 | 3 |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | 11 | (5) | |
Other | 0 | 0 | |
Benefits paid | (6) | (10) | |
Other | 0 | 0 | |
Projected benefit obligation at end of period | 87 | 79 | 91 |
Actual return on plan assets | 0 | 8 | |
Defined Benefit Plan, Contributions by Employer | 2 | 1 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | 0 | 0 | |
Funded status | (21) | (9) | |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,652 | 1,580 | 1,491 |
Projected benefit obligation at beginning of period | 2,048 | 1,862 | |
Service cost | 2 | 2 | 2 |
Interest cost | 90 | 79 | 81 |
Foreign currency exchange rate changes | (123) | 37 | |
Actuarial (gain) loss | 191 | 129 | |
Other | (4) | (2) | |
Benefits paid | (66) | (59) | |
Other | (4) | (3) | |
Projected benefit obligation at end of period | 2,138 | 2,048 | $ 1,862 |
Actual return on plan assets | 194 | 65 | |
Defined Benefit Plan, Contributions by Employer | 46 | 53 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (98) | 33 | |
Funded status | $ (486) | $ (468) |
Pension and Postretirement Pl83
Pension and Postretirement Plans (Schedule Of Changes In Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | $ 1,650 | |
Fair value of plan assets at end of period | 1,718 | $ 1,650 |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 70 | 71 |
Actual return on plan assets | 0 | 8 |
Employer contributions | 2 | 1 |
Foreign currency exchange rate changes | 0 | 0 |
Benefits paid | (6) | (10) |
Other | 0 | 0 |
Fair value of plan assets at end of period | 66 | 70 |
Funded status | (21) | (9) |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 1,580 | 1,491 |
Actual return on plan assets | 194 | 65 |
Employer contributions | 46 | 53 |
Foreign currency exchange rate changes | (98) | 33 |
Benefits paid | (66) | (59) |
Other | (4) | (3) |
Fair value of plan assets at end of period | 1,652 | 1,580 |
Funded status | $ (486) | $ (468) |
Pension and Postretirement Pl84
Pension and Postretirement Plans (Schedule Of Amounts Recognized On Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (502) | $ (477) |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 5 | 0 |
Noncurrent liabilities | (16) | (9) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 21 | 9 |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | 0 | 0 |
Noncurrent liabilities | (486) | (468) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 486 | $ 468 |
Pension and Postretirement Pl85
Pension and Postretirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 3 | 3 | 3 |
Expected return on plan assets | (4) | (5) | (4) |
Settlements/curtailments | 1 | 2 | 0 |
Recognized actuarial loss | 3 | 2 | 2 |
Net periodic benefit cost | 3 | 2 | 1 |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 90 | 79 | 81 |
Expected return on plan assets | (102) | (86) | (93) |
Settlements/curtailments | 0 | 0 | 0 |
Recognized actuarial loss | 39 | 33 | 25 |
Net periodic benefit cost | $ 29 | $ 28 | $ 15 |
Pension and Postretirement Pl86
Pension and Postretirement Plans (Schedule Of Amounts In Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total in accumulated other comprehensive loss | $ 670 | $ 608 | $ 521 |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized actuarial loss, net of tax of $9 and $222, and $10 and $211, respectively | 31 | 18 | |
Net actuarial loss, tax | 9 | 10 | |
Total in accumulated other comprehensive loss | 31 | 18 | |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized actuarial loss, net of tax of $9 and $222, and $10 and $211, respectively | 639 | 590 | |
Net actuarial loss, tax | 222 | 211 | |
Total in accumulated other comprehensive loss | $ 639 | $ 590 |
Pension and Postretirement Pl87
Pension and Postretirement Plans (Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In 2014) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss | $ 3 |
Total | 3 |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss | 35 |
Total | $ 35 |
Pension and Postretirement Pl88
Pension and Postretirement Plans (Schedule Of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
United States Pension Benefits [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 3.38% | 3.09% | 3.74% |
Expected return on plan assets | 5.28% | 7.00% | 7.00% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 2.89% | 3.38% | |
International Pension Benefits [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.45% | 4.50% | 4.90% |
Expected return on plan assets | 6.45% | 6.15% | 6.60% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 3.65% | 4.45% |
Pension and Postretirement Pl89
Pension and Postretirement Plans (Schedule Of Target Plan Allocation) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
International Pension Benefits [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | |
International Pension Benefits [Member] | Cash and Cash Equivalents [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
International Pension Benefits [Member] | Other Contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 35.00% | |
International Pension Benefits [Member] | Other Contract [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 12.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 35.00% | |
International Pension Benefits [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 10.00% | |
International Pension Benefits [Member] | Real Estate Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 5.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 10.00% | |
International Pension Benefits [Member] | Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 20.00% | |
International Pension Benefits [Member] | Hedge Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 8.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 20.00% | |
International Pension Benefits [Member] | Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 100.00% | |
International Pension Benefits [Member] | Fixed Income Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 56.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 100.00% | |
International Pension Benefits [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 51.00% | |
International Pension Benefits [Member] | Equity Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 19.00% | |
Equity securities, minimum | 0.00% | |
Equity securities, maximum | 51.00% | |
United States Pension Benefits [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | |
United States Pension Benefits [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 25.00% | |
Equity securities, maximum | 25.00% | |
United States Pension Benefits [Member] | Cash and Cash Equivalents [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 22.00% | |
Equity securities, minimum | 22.00% | |
Equity securities, maximum | 22.00% | |
United States Pension Benefits [Member] | Other Contract [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
United States Pension Benefits [Member] | Real Estate Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
United States Pension Benefits [Member] | Hedge Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 0.00% | |
United States Pension Benefits [Member] | Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 24.00% | |
Equity securities, maximum | 36.00% | |
United States Pension Benefits [Member] | Fixed Income Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 31.00% | |
Equity securities, minimum | 31.00% | |
Equity securities, maximum | 31.00% | |
United States Pension Benefits [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity securities, minimum | 39.00% | |
Equity securities, maximum | 51.00% | |
United States Pension Benefits [Member] | Equity Funds [Member] | 2014 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 47.00% | |
Equity securities, minimum | 47.00% | |
Equity securities, maximum | 47.00% |
Pension and Postretirement Pl90
Pension and Postretirement Plans (Schedule Of Pension Plan Assets Measured At Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,718 | $ 1,650 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 543 | 657 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 844 | 763 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 331 | 230 | |
United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 70 | $ 71 |
United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 34 | |
United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 36 | |
United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,652 | 1,580 | 1,491 |
International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 543 | 623 | |
International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 778 | 727 | |
International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 331 | 230 | 219 |
Equity Funds [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 15 | |
Equity Funds [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 10 | |
Equity Funds [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 5 | |
Equity Funds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Funds [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 406 | 378 | |
Equity Funds [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 143 | 116 | |
Equity Funds [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218 | 261 | |
Equity Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 1 | 0 |
Equity Securities [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 17 | |
Equity Securities [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 16 | |
Equity Securities [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Equity Securities [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 51 | |
Equity Securities [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53 | 50 | |
Equity Securities [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
Equity Securities [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed Income Funds [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 23 | 8 | |
Fixed Income Funds [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | ||
Fixed Income Funds [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 23 | 0 | |
Fixed Income Funds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed Income Funds [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 706 | 768 | |
Fixed Income Funds [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 287 | 400 | |
Fixed Income Funds [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 354 | 335 | |
Fixed Income Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65 | 33 | 44 |
Hedge Funds [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 167 | 130 | |
Hedge Funds [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge Funds [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 57 | 25 | |
Hedge Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 110 | 105 | 88 |
Government Bonds [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 4 | |
Government Bonds [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government Bonds [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 4 | |
Government Bonds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 8 | |
Corporate Bonds [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 8 | |
Corporate Bonds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Bonds [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 83 | 69 | |
Other Bonds [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Bonds [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 36 | |
Other Bonds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 33 | 27 |
Other Funds [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 173 | 120 | |
Other Funds [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Funds [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 105 | 69 | |
Other Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68 | 51 | 53 |
Cash And Cash Equivalents [Member] | United States Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 18 | |
Cash And Cash Equivalents [Member] | United States Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash And Cash Equivalents [Member] | United States Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 18 | |
Cash And Cash Equivalents [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60 | 50 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60 | 50 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash And Cash Equivalents [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Contract [Member] | International Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 14 | |
Other Contract [Member] | International Pension Benefits [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
Other Contract [Member] | International Pension Benefits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Contract [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1 | $ 7 | $ 7 |
Pension and Postretirement Pl91
Pension and Postretirement Plans (Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | $ 1,650 | |
Fair value of plan assets at end of period | 1,718 | $ 1,650 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 230 | |
Fair value of plan assets at end of period | 331 | 230 |
United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 70 | 71 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 66 | 70 |
United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 0 | |
Fair value of plan assets at end of period | 0 | 0 |
International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 1,580 | 1,491 |
Foreign exchange impact | (123) | 37 |
Fair value of plan assets at end of period | 1,652 | 1,580 |
International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 230 | 219 |
Purchases, sales and settlements | 115 | (15) |
Defined Benefit Plan, Transfers Between Measurement Levels | (30) | |
Return on assets held at end of year | 33 | 20 |
Return on assets sold during the year | 3 | 3 |
Foreign exchange impact | (20) | 3 |
Fair value of plan assets at end of period | 331 | 230 |
Equity Funds [Member] | United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 15 | |
Fair value of plan assets at end of period | 28 | 15 |
Equity Funds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 0 | |
Fair value of plan assets at end of period | 0 | 0 |
Equity Funds [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 378 | |
Fair value of plan assets at end of period | 406 | 378 |
Equity Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 1 | 0 |
Purchases, sales and settlements | 42 | 0 |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | |
Return on assets held at end of year | 4 | 0 |
Return on assets sold during the year | 0 | |
Foreign exchange impact | (2) | 1 |
Fair value of plan assets at end of period | 45 | 1 |
Fixed Income Funds [Member] | United States Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 8 | |
Fair value of plan assets at end of period | 23 | 8 |
Fixed Income Funds [Member] | United States Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 0 | |
Fair value of plan assets at end of period | 0 | 0 |
Fixed Income Funds [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 768 | |
Fair value of plan assets at end of period | 706 | 768 |
Fixed Income Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 33 | 44 |
Purchases, sales and settlements | 32 | (12) |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | |
Return on assets held at end of year | 4 | (1) |
Return on assets sold during the year | 0 | 3 |
Foreign exchange impact | (4) | (1) |
Fair value of plan assets at end of period | 65 | 33 |
Hedge Funds [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 130 | |
Fair value of plan assets at end of period | 167 | 130 |
Hedge Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 105 | 88 |
Purchases, sales and settlements | 33 | 0 |
Defined Benefit Plan, Transfers Between Measurement Levels | (30) | |
Return on assets held at end of year | 10 | 15 |
Return on assets sold during the year | 0 | |
Foreign exchange impact | (8) | 2 |
Fair value of plan assets at end of period | 110 | 105 |
Real Estate Funds [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 69 | |
Fair value of plan assets at end of period | 83 | 69 |
Real Estate Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 33 | 27 |
Purchases, sales and settlements | 0 | 2 |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | |
Return on assets held at end of year | 8 | 3 |
Return on assets sold during the year | 3 | |
Foreign exchange impact | (2) | 1 |
Fair value of plan assets at end of period | 42 | 33 |
Other Funds [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 120 | |
Fair value of plan assets at end of period | 173 | 120 |
Other Funds [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 51 | 53 |
Purchases, sales and settlements | 14 | (6) |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | |
Return on assets held at end of year | 7 | 3 |
Return on assets sold during the year | 0 | |
Foreign exchange impact | (4) | 1 |
Fair value of plan assets at end of period | 68 | 51 |
Other Contract [Member] | International Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 14 | |
Fair value of plan assets at end of period | 1 | 14 |
Other Contract [Member] | International Pension Benefits [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of period | 7 | 7 |
Purchases, sales and settlements | (6) | 0 |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | $ 1 | $ 7 |
Pension and Postretirement Pl92
Pension and Postretirement Plans (Schedule Of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2014USD ($) |
United States Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,015 | $ 23 |
2,016 | 4 |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
Years 2020 - 2024 | 21 |
International Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,015 | 63 |
2,016 | 65 |
2,017 | 66 |
2,018 | 68 |
2,019 | 70 |
Years 2020 - 2024 | $ 375 |
Pension Plans Pension and Postr
Pension Plans Pension and Postretirement Plans (Deferred Compensation) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Deferred compensation plans obligations | $ 71 | $ 66 |
Debt And Other Credit Facilit94
Debt And Other Credit Facilities (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2013USD ($) | Dec. 02, 2011USD ($) | |
Line of Credit Facility [Line Items] | ||||
Amounts advanced bear interest at variable rates | Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (1) the London interbank offered rate (“LIBOR”) plus an applicable margin of 1.50% to 1.75%, or (2) a base rate plus an applicable margin of 0.50% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters, as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an issuance fee of 0.15% of the face amount of a letter of credit. KBR also pays a commitment fee of 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement. | |||
Nonrecourse project debt | $ 63 | $ 78 | ||
Debt To EBITDA Ratio [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility terms | 3.5 to 1 | |||
Maximum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR applicable margin | 1.75% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000 | |||
Percent added to federal fund rate | 0.50% | |||
Percent added to LIBOR | 1.00% | |||
Percentage of LIBOR applicable margin for performance letters of credit | 50.00% | |||
Letter of credit fronting commitments | 0.25% | |||
Letter of credit fee charged on issuance | 0.15% | |||
Minimum consolidated net worth base in addition to certain percentage of consolidated net income and increase in shareholders' equity attributable to the sale of equity interests | $ 1,500 | |||
Consolidated net income percentage | 50.00% | 50.00% | ||
Increase in shareholders' equity attributable to the sale of equity securities percentage | 100.00% | 100.00% | ||
Additional amount of equity repurchases allowed under Credit Agreement pending the resolution of PEMEX litigation. | $ 400 | |||
Remaining availability under equity repurchase distribution cap | $ 468 | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Base rate applicable margin | 0.75% | |||
Principal amount of of additional indebtedness parent company may incur under Credit Agreement provisions | $ 200 | |||
Principal amount of unsecured indebtedness our subsidiaries may incur under Credit Agreement provisions | 200 | |||
Base dollar amount of share and equity repurchases cap | $ 750 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR applicable margin | 1.50% | |||
Base rate applicable margin | 0.50% | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | $ 628 | |||
LettersOfCreditOutstandingLongerMaturity | 3 | |||
Committed and uncommitted lines of credit, total | 2,100 | |||
Letters of credit outstanding relate to joint venture operations | 246 | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | 174 | |||
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] | Uncommitted Bank Lines [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit, outstanding amount | $ 454 | |||
Nonrecourse Project Finance Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||
Number of heavy equipment transporters | 91 | |||
Number of heavy equipment transporters, term period, in years | 22 years | |||
Nonrecourse project debt | £ | £ 84.9 | |||
Non-recourse debt bridge financing | £ | £ 12.2 | |||
Fasttrax Limited Project [Member] | United States of America, Dollars | Nonrecourse Project Finance Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Nonrecourse project debt | $ 120 | |||
Non-recourse debt bridge financing | 17 | |||
Class A 3.5% Index Linked Bonds [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | 79 | |||
Class B 5.9% Fixed Rate Bonds [Member] | United States of America, Dollars | ||||
Line of Credit Facility [Line Items] | ||||
Secured Debt | $ 24 |
Debt And Other Credit Facilit95
Debt And Other Credit Facilities (Consolidated amount of non-recourse project-finance debt of a VIE) (Details) - Dec. 31, 2014 £ in Millions, $ in Millions | USD ($) | GBP (£) |
Long-term Debt, Maturing in Years Four and Five [Abstract] | ||
2,015 | $ 10 | |
2,016 | 10 | |
2,017 | 11 | |
2,018 | 12 | |
2,019 | 12 | |
Beyond 2,019 | $ 18 | |
Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Guaranteed secured bonds, percentage | 3.50% | 3.50% |
Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Guaranteed secured bonds, percentage | 5.90% | 5.90% |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated notes payable, interest rate | 11.25% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated notes payable, interest rate | 16.00% | |
United Kingdom, Pounds | Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | £ | £ 56 | |
United Kingdom, Pounds | Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | £ | £ 16.7 | |
United States of America, Dollars | Class A 3.5% Index Linked Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | $ 79 | |
United States of America, Dollars | Class B 5.9% Fixed Rate Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Secured bonds | $ 24 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - Income Tax Authority [Domain] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 212 | ||
Deferred Tax Assets, Valuation Allowance | 538 | $ 83 | |
Current portion of tax positions that could change due to expirations of statute of limitations | 19 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 13 | 11 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | (1) | $ (6) |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 98 | 19 | |
Foreign Earnings Repatriated | 370 | ||
Amounts due to former parent | 56 | 105 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 320 | ||
Due to former parent upon receipt from IRS | 19 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 455 | $ 47 |
Income Taxes (Components Of The
Income Taxes (Components Of The Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ 41 | $ (6) | $ 61 | |
Deferred Federal Income Tax Expense (Benefit) | (333) | 17 | 12 | |
Federal Income Tax Expense (Benefit), Continuing Operations | (292) | 11 | 73 | |
Current Foreign Tax Expense (Benefit) | (110) | (109) | (130) | |
Deferred Foreign Income Tax Expense (Benefit) | (11) | (31) | (42) | |
Foreign Income Tax Expense (Benefit), Continuing Operations | (121) | (140) | (172) | |
Other Tax Expense (Benefit) | 1 | 4 | 1 | |
Deferred Other Tax Expense (Benefit) | (9) | (4) | 12 | |
Other Income Tax Expense (Benefit), Continuing Operations | (8) | 0 | 13 | |
Current Income Tax Expense (Benefit) | (68) | (111) | (68) | |
Deferred Income Tax Expense (Benefit) | (353) | (18) | (18) | |
Income Tax Expense (Benefit) | $ (391) | $ (421) | $ (129) | $ (86) |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (1,051) | $ (141) | $ (366) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 274 | 441 | 654 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (777) | 300 | 288 |
UNITED KINGDOM | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 130 | 162 | 203 |
AUSTRALIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 180 | 280 | 267 |
CANADA | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (101) | (117) | 29 |
International [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 65 | $ 116 | $ 155 |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Components of Foreign Income Tax Expense (Benefit) [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | (35.00%) | 35.00% | 35.00% |
Rate differentials on foreign earnings | (5.00%) | (12.00%) | (5.00%) |
Contingent liability accrual | 9.00% | 7.00% | (10.00%) |
Noncontrolling interests | (4.00%) | (5.00%) | (3.00%) |
U.S. taxes on foreign unremitted earnings | 11.00% | 2.00% | 4.00% |
State and local income taxes, net of federal benefit | (2.00%) | (1.00%) | 0.00% |
Other permanent differences, net | 2.00% | 2.00% | (16.00%) |
Non-deductible goodwill impairment | 20.00% | 0.00% | 22.00% |
Increase in valuation allowance | 58.00% | 15.00% | 3.00% |
Effective tax rate on income from operations | 54.00% | 43.00% | 30.00% |
Income Taxes (Components Of Our
Income Taxes (Components Of Our Deferred Tax Assets And Liabilities And The Related Valuation Allowances) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Components of Foreign Income Tax Expense (Benefit) [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | $ 175 | $ 176 |
Foreign tax credit carryforwards | 233 | 179 |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 89 | 81 |
Deferred Tax Assets, Operating Loss Carryforwards | 133 | 118 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 22 | 25 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 10 | 8 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 51 | 50 |
Deferred Tax Assets, Gross | 713 | 637 |
Deferred Tax Assets, Valuation Allowance | 538 | 83 |
Deferred Tax Assets, Net of Valuation Allowance | 175 | 554 |
Deferred Tax Liabilities Construction Contract Accounting | 15 | 40 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 35 | 49 |
Deferred Tax Liabilities Depreciation And Amortization | 2 | 44 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | (98) | (19) |
Deferred Tax Liabilities, Other | (23) | 6 |
Deferred Tax Liabilities, Gross | (127) | (158) |
Deferred Tax Assets, Net | $ 48 | $ 396 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ (391) | $ (421) | $ (129) | $ (86) |
CTA, taxes | 4 | 27 | (8) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | 10 | 18 | 14 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | 0 | 5 | |
Taxes, Other | $ (407) | $ (84) | $ (75) |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Foreign Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | $ (121) | $ (140) | $ (172) |
International [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | (81) | (62) | (72) |
CANADA | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 6 | (3) | (7) |
AUSTRALIA | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | (24) | (41) | (40) |
UNITED KINGDOM | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | $ (22) | $ (34) | $ (53) |
Income Taxes Income Taxes (C103
Income Taxes Income Taxes (Components of Deferred Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ (353) | $ (18) | $ (18) |
Deferred Benefit [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 254 | 48 | 15 |
Tax reserves and allowances on current year activity [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | (210) | (39) | (10) |
Tax reserves and allowances on beginning of the year balances [Member] [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | (320) | (9) | 1 |
Unremitted foreign earnings [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | (77) | (5) | (14) |
U.K. statutory rate change [Member] | |||
Components of Deferred Tax Expense [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ 0 | $ (13) | $ (10) |
Income Taxes Income Taxes (Summ
Income Taxes Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | $ 586 | |
Deferred Tax Assets, Valuation Allowance | (538) | $ (83) |
Deferred Tax Assets, Net | 48 | $ 396 |
UNITED STATES | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 487 | |
Deferred Tax Assets, Valuation Allowance | (484) | |
Deferred Tax Assets, Net | 3 | |
UNITED KINGDOM | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 126 | |
Deferred Tax Assets, Valuation Allowance | 0 | |
Deferred Tax Assets, Net | 126 | |
AUSTRALIA | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 1 | |
Deferred Tax Assets, Valuation Allowance | (1) | |
Deferred Tax Assets, Net | 0 | |
CANADA | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 24 | |
Deferred Tax Assets, Valuation Allowance | (25) | |
Deferred Tax Assets, Net | (1) | |
MEXICO | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | (88) | |
Deferred Tax Assets, Valuation Allowance | 0 | |
Deferred Tax Assets, Net | (88) | |
Other Countries [Member] | ||
Valuation Allowance [Line Items] | ||
Gross Assets (Liabilities), Net | 36 | |
Deferred Tax Assets, Valuation Allowance | (28) | |
Deferred Tax Assets, Net | $ 8 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Beginning balance | $ 68 | $ 95 | $ 120 |
Increases related to current year tax positions | 13 | 3 | 6 |
Increases related to prior year tax positions | 168 | 15 | 13 |
Decreases related to prior year tax positions | (13) | (36) | (25) |
Settlements | (1) | 0 | (11) |
Lapse of statute of limitations | (5) | (2) | (9) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | (2) | (7) | 1 |
Unrecognized Tax Benefits, Ending balance | $ 228 | $ 68 | $ 95 |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2014USD ($) |
Income Tax Disclosure [Abstract] | |
Foreign tax credit carryforwards | $ 295 |
Federal net operating loss carryforwards | 306 |
Foreign net operating loss carryforwards | 301 |
Foreign net operating loss carryforwards | 73 |
State net operating loss carryforwards | $ 632 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2008USD ($) | Dec. 31, 2014USD ($)lawsuits | Sep. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2014USD ($)lawsuitsdefendent | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2009lawsuits | |
United States Government Contract Work [Line Items] | ||||||||||
Contracts Revenue | $ 6,366 | $ 7,214 | $ 7,770 | |||||||
Retainage payable | $ 88 | 88 | 102 | |||||||
Unapproved claims included in accounts receivables related to various government contracts where costs have exceeded the customer's funded value of task orders | 570 | 570 | 628 | |||||||
Amount of unapproved claims related to de-obligation of funding | 490 | 490 | 399 | |||||||
All Defense Contract Audit Agency Audit Issues [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 188 | 188 | 274 | |||||||
Government Contract Receivable | 96 | 96 | 137 | |||||||
Loss Contingency, Estimate of Possible Loss | 29 | 29 | 74 | |||||||
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise | 32 | 32 | $ 50 | |||||||
Private Security [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 56 | 56 | ||||||||
Contracts Revenue | 11 | |||||||||
Government Contract Receivable | 45 | 45 | ||||||||
Containers [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 51 | 51 | ||||||||
Contracts Revenue | 25 | |||||||||
Government Contract Receivable | 26 | 26 | ||||||||
Retainage payable | 30 | 30 | ||||||||
CONCAP III [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 25 | 25 | ||||||||
Contracts Revenue | 15 | |||||||||
Government Contract Receivable | 10 | 10 | ||||||||
Amount Of Costs Deemed Unallowable | 15 | |||||||||
All Other Issues [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 56 | 56 | ||||||||
Contracts Revenue | 41 | |||||||||
Government Contract Receivable | 15 | 15 | ||||||||
NonForm1Issues [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 11 | 11 | ||||||||
Loss Contingency, Estimate of Possible Loss | 4 | 4 | ||||||||
Audits [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | 46,000 | 46,000 | ||||||||
Recovery of Direct Costs | 35,000 | |||||||||
Loss Contingency, Estimate of Possible Loss | 39 | $ 39 | ||||||||
DisallowanceRate | 0.00% | |||||||||
Litigation Settlement, Amount | $ (40) | |||||||||
First Kuwaiti Trading Company Arbitration [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Total judgment on Sodium Dichromate | $ 134 | |||||||||
AmountOwedToSubcontractor | 30 | 30 | ||||||||
PaymentsOnContractWork | $ 4 | $ 15 | 3 | |||||||
Damages awarded, value | $ 17 | |||||||||
Burn Pit Litigation [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Loss Contingency, Pending Claims, Number | lawsuits | 50 | 50 | ||||||||
Sodium Dichromate Litigation [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Contract Termination Claims, US Federal Government | $ 30 | $ 30 | ||||||||
Total judgment on Sodium Dichromate | $ 81 | |||||||||
Loss Contingency, Pending Claims, Number | lawsuits | 2 | 2 | 5 | |||||||
Loss Contingency, Number of Plaintiffs | 170 | |||||||||
AmicusCuriaeBriefs | 5 | 5 | ||||||||
Damages awarded, value | $ 6 | $ 10 | $ 75 | $ 75 | ||||||
qui tams [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
qui tam government joined | lawsuits | 1 | 1 | ||||||||
Legal Fees | $ 10 | |||||||||
DOJFCA [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Loss Contingency, Number of Defendants | defendent | 3 | |||||||||
Claims [Member] | ||||||||||
United States Government Contract Work [Line Items] | ||||||||||
Government Contract Receivable | $ 138 | $ 138 | ||||||||
Unapproved claims included in accounts receivables related to various government contracts where costs have exceeded the customer's funded value of task orders | 122 | 122 | ||||||||
Amount of unapproved claims related to de-obligation of funding | $ 16 | $ 16 |
Other Commitments And Contin108
Other Commitments And Contingencies (Other) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2004 | |
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | $ 66 | $ 75 | |||
Payment on performance bonds | 0 | 108 | $ 0 | ||
Claims receivable | 570 | 628 | |||
Accrual for environmental loss contingencies | 1 | ||||
Performance Bond Recovery Including Interest | 26 | ||||
Pemex [Member] | |||||
Loss Contingencies [Line Items] | |||||
Outstanding performance bonds by enterprise | 80 | ||||
Payment on performance bonds | 108 | ||||
Customer's arbitration claim | $ 157 | ||||
Amount of arbitration claim filed by enterprise | $ 323 | ||||
Amount awarded to enterprise in arbitration | $ 351 | ||||
Amount of counterclaims awarded to project owner in arbitration | 6 | ||||
Gain recognized | $ 117 | ||||
Amount of judgment awarded to enterprise | 465 | ||||
Performance Bond Recovery Including Interest | 106 | ||||
PaymentOnPerformanceBondsOther | $ 2 | ||||
Accounts Payable and Accrued Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | 14 | 12 | |||
Claims and Account Receivable [Member] | |||||
Loss Contingencies [Line Items] | |||||
Claims receivable | 401 | ||||
Other Current Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | 19 | 26 | |||
Other Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Self Insurance Reserve, Noncurrent | $ 33 | $ 37 |
Other Commitments And Contin109
Other Commitments And Contingencies (Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | |
Operating Leased Assets [Line Items] | ||||
Deferred Rent Credit, Noncurrent | $ 128 | $ 129 | ||
Total rent expense | 158 | 159 | $ 149 | |
2,015 | 99 | |||
2,016 | 85 | |||
2,017 | 71 | |||
2,018 | 62 | |||
2,019 | 53 | |||
Beyond 2,019 | $ 383 | |||
601 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Description of leasing arrangements | This lease incentive will be amortized over the remaining term of the lease, which runs through June 30, 2030 and includes renewal options for three consecutive additional periods from 5 to 10 years each at prevailing market rates. | |||
Equity method investment, ownership percentage | 50.00% | |||
Incentive from Lessor | $ 11 | |||
500 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Description of leasing arrangements | The term of the lease runs through June 30, 2030 and includes renewal options for three consecutive additional periods from 5 to 10 years each at prevailing market rates. | |||
Maximum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Renewal term of lease | 10 years | |||
Maximum [Member] | 601 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual base rent | $ 15 | |||
Maximum [Member] | 500 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual base rent | $ 4 | |||
Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Renewal term of lease | 5 years | |||
Minimum [Member] | 601 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual base rent | $ 10 | |||
Minimum [Member] | 500 Jefferson Building Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual base rent | 2 | |||
Office Building [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Other Current Liabilities [Member] | Office Building [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Deferred Gain on Sale of Property | $ 3 | $ 3 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | $ 2,439 | $ 2,511 | $ 2,439 | $ 2,511 | $ 2,442 | ||||||||
Stock-based compensation | 22 | 16 | 16 | ||||||||||
Common stock issued upon exercise of stock options | 4 | 6 | 7 | ||||||||||
Tax benefit decrease related to stock-based plans | 0 | 0 | 4 | ||||||||||
Dividends declared to shareholders | (47) | (36) | (42) | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | 0 | (7) | 0 | ||||||||||
Repurchases of common stock | (106) | (7) | (40) | ||||||||||
Issuance of ESPP shares | 4 | 4 | 3 | ||||||||||
Investments by noncontrolling interests | 10 | 9 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 | 2 | 0 | ||||||||||
Distributions to noncontrolling interests | (61) | (109) | (36) | ||||||||||
Other Noncontrolling Interest Activity | 2 | ||||||||||||
Net income (loss) | $ (1,231) | $ 45 | $ 8 | (20) | $ (52) | $ 15 | $ 111 | 97 | (1,198) | 171 | 202 | ||
Other comprehensive income (loss), net of tax | (134) | (121) | (62) | ||||||||||
Ending Balance | 935 | 2,439 | 935 | 2,439 | 2,511 | ||||||||
Deferred tax and foreign currency adjustments to income statement | $ 3 | ||||||||||||
Deferred tax and foreign currency adjustments | 9 | 17 | [1] | ||||||||||
Additional Paid-in Capital [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | 2,065 | 2,049 | 2,065 | 2,049 | 2,005 | ||||||||
Stock-based compensation | 22 | 16 | 16 | ||||||||||
Common stock issued upon exercise of stock options | 4 | 6 | 7 | ||||||||||
Tax benefit decrease related to stock-based plans | 4 | ||||||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | (7) | ||||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||||
Issuance of ESPP shares | 0 | 1 | 0 | ||||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 | ||||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Other Noncontrolling Interest Activity | 0 | ||||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||||
Ending Balance | 2,091 | 2,065 | 2,091 | 2,065 | 2,049 | ||||||||
Deferred tax and foreign currency adjustments | 17 | ||||||||||||
Retained Earnings [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | 1,748 | 1,709 | 1,748 | 1,709 | 1,607 | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||||
Tax benefit decrease related to stock-based plans | 0 | ||||||||||||
Dividends declared to shareholders | (47) | (36) | (42) | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | 0 | ||||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 | ||||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Other Noncontrolling Interest Activity | 0 | ||||||||||||
Net income (loss) | (1,262) | 75 | 144 | ||||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||||
Ending Balance | 439 | 1,748 | 439 | 1,748 | 1,709 | ||||||||
Deferred tax and foreign currency adjustments | 0 | ||||||||||||
Treasury Stock [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | (610) | (606) | (610) | (606) | (569) | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||||
Tax benefit decrease related to stock-based plans | 0 | ||||||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | 0 | ||||||||||||
Repurchases of common stock | (106) | (7) | (40) | ||||||||||
Issuance of ESPP shares | 4 | 3 | 3 | ||||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 | ||||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Other Noncontrolling Interest Activity | 0 | ||||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||||
Ending Balance | (712) | (610) | (712) | (610) | (606) | ||||||||
Deferred tax and foreign currency adjustments | 0 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | (740) | (610) | (740) | (610) | (548) | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||||
Tax benefit decrease related to stock-based plans | 0 | ||||||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | 0 | ||||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||||
Investments by noncontrolling interests | 0 | 0 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 0 | ||||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Other Noncontrolling Interest Activity | 0 | ||||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss), net of tax | (136) | (130) | (62) | ||||||||||
Ending Balance | (876) | (740) | (876) | (740) | (610) | ||||||||
Deferred tax and foreign currency adjustments | 0 | ||||||||||||
Noncontrolling Interests [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Beginning Balance | $ (24) | $ (31) | (24) | (31) | (53) | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||||
Common stock issued upon exercise of stock options | 0 | 0 | 0 | ||||||||||
Tax benefit decrease related to stock-based plans | 0 | ||||||||||||
Dividends declared to shareholders | 0 | 0 | 0 | ||||||||||
Adjustment pursuant to tax sharing agreement with former parent | 0 | ||||||||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||||||
Issuance of ESPP shares | 0 | 0 | 0 | ||||||||||
Investments by noncontrolling interests | 10 | 9 | |||||||||||
Change in NCI Due to Consolidation of Previously Unconsolidated JV | 2 | ||||||||||||
Distributions to noncontrolling interests | (61) | (109) | (36) | ||||||||||
Other Noncontrolling Interest Activity | 2 | ||||||||||||
Net income (loss) | 64 | 96 | 58 | ||||||||||
Other comprehensive income (loss), net of tax | 2 | 9 | 0 | ||||||||||
Ending Balance | $ (7) | $ (24) | (7) | (24) | (31) | ||||||||
Deferred tax and foreign currency adjustments | 0 | ||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Deferred tax and foreign currency adjustments | $ 16 | ||||||||||||
Scenario, Previously Reported [Member] | |||||||||||||
Shareholders Equity [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | $ (134) | $ (121) | $ (62) | ||||||||||
[1] | During the third quarter of 2012, we recorded out-of-period adjustments in our deferred tax accounts, most of which relate to years before 2010. These adjustments were not material to 2012 or the periods to which they relate. The out-of-period adjustments were $3 million to our 2012 annual tax expense and $9 million to our equity accounts. Deferred tax and foreign currency adjustments above includes $16 million related to these adjustments. |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (740) | $ (610) | |||
Other comprehensive income adjustments before reclassifications | (179) | (165) | |||
Amounts reclassified from accumulated other comprehensive income | 43 | 35 | |||
Ending balance | (876) | (740) | |||
Accumulated foreign currency translation adjustments, net of tax of $(4), $0 and $27 | $ (203) | $ (131) | $ (88) | ||
Pension and post-retirement benefits, net of tax of $(231), $(221) and $(203) | (670) | (608) | (521) | ||
Changes in fair value of derivatives, net of tax of $0, $0 and $0 | (3) | (1) | (1) | ||
Total accumulated other comprehensive loss | (740) | (610) | (876) | (740) | (610) |
Cumulative translation adjustments, tax | (4) | 0 | 27 | ||
Pension liability adjustments, tax | (231) | (221) | (203) | ||
Unrealized gains (losses) on derivatives, tax | 0 | 0 | 0 | ||
Accumulated foreign currency translation adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (131) | (88) | |||
Other comprehensive income adjustments before reclassifications | (73) | (44) | |||
Amounts reclassified from accumulated other comprehensive income | 1 | 1 | |||
Ending balance | (203) | (131) | |||
Total accumulated other comprehensive loss | (131) | (88) | (203) | (131) | (88) |
Pension and post-retirement benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (608) | (521) | |||
Other comprehensive income adjustments before reclassifications | (104) | (122) | |||
Amounts reclassified from accumulated other comprehensive income | 42 | 35 | |||
Ending balance | (670) | (608) | |||
Total accumulated other comprehensive loss | (608) | (521) | (670) | (608) | (521) |
Changes in fair value of derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (1) | (1) | |||
Other comprehensive income adjustments before reclassifications | (2) | 1 | |||
Amounts reclassified from accumulated other comprehensive income | 0 | (1) | |||
Ending balance | (3) | (1) | |||
Total accumulated other comprehensive loss | $ (1) | $ (1) | $ (3) | $ (1) | $ (1) |
Shareholders' Equity (Shares Of
Shareholders' Equity (Shares Of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ||
Balance, Shares | 173,924,509 | 173,218,898 |
Common stock issued, Shares | 523,890 | 705,611 |
Balance, Shares | 174,448,399 | 173,924,509 |
Shareholders' Equity (Shares113
Shareholders' Equity (Shares Of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | |||
Balance, Shares | 25,729,301 | 25,634,134 | |
Balance, Amount | $ 610 | $ 606 | |
Treasury stock acquired, net of ESPP shares issued, Shares | 3,881,817 | 95,167 | |
Treasury stock acquired, net of ESPP shares issued, Amount | $ 102 | $ 4 | |
Balance, Shares | 29,611,118 | 25,729,301 | |
Balance, Amount | $ 712 | $ 610 | |
Dividends declared to shareholders' | 47 | $ 36 | $ 42 |
Accrued dividends | $ 12 |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss (gain) on disposition of assets, net | $ (7) | $ (2) | $ (32) | |
Amortization of loss | (777) | 300 | 288 | |
Cost of revenues | 6,431 | 6,797 | 7,252 | |
Tax expense (benefit) | $ (391) | (421) | (129) | (86) |
Net foreign currency translation adjustments realized | (1) | (1) | 7 | |
Net change in fair value of derivatives | 0 | 1 | $ (4) | |
Accumulated CTA | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss (gain) on disposition of assets, net | (4) | (1) | ||
Tax expense (benefit) | (3) | 0 | ||
Net foreign currency translation adjustments realized | (1) | (1) | ||
Accumulated pension liability adjustments | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of loss | (52) | (53) | ||
Tax expense (benefit) | 10 | 18 | ||
Net pension and post-retirement benefits | (42) | (35) | ||
Changes in fair value of derivatives | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of revenues | 0 | 1 | ||
Tax expense (benefit) | 0 | 0 | ||
Net change in fair value of derivatives | $ 0 | $ 1 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 106 | $ 7 | $ 40 | |
Number of shares repurchased under the authorization | 4,041,078 | |||
Share Maintenance Plan [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 18 | |||
Number of shares repurchased under the authorization | 666,599 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 26.24 | |||
Share Repurchase Program Twenty Fourteen [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 88 | |||
Stock Repurchase Program, Authorized Amount | $ 350 | |||
Number of shares repurchased under the authorization | 3,374,479 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 26.13 |
Stock-Based Compensation And116
Stock-Based Compensation And Incentive Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total income tax benefit recognized in net income for stock-based compensation arrangements | $ 8 | $ 6 | $ 6 | |
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,000,000 | |||
Common stock reserved for issuance | 12,000,000 | 3,500,000 | ||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum withhold percentage | 10.00% | |||
Percentage of discount on stock price | 5.00% | |||
ESPP stock issued (shares) | 159,000 | 131,000 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value per share | $ 9.57 | $ 11.40 | ||
Total intrinsic values of options exercised | $ 3 | $ 7 | 9 | |
Unrecognized compensation cost, net of estimated forfeitures | $ 7 | |||
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 7 months 24 days | |||
Stock option compensation expense | $ 6 | 9 | 8 | |
Total income tax benefit recognized in net income for stock-based compensation arrangements | $ 2 | $ 3 | $ 3 | |
Weighted average period | 6 years 6 months 15 days | 6 years 11 months 5 days | ||
KBR Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value per share | $ 28.46 | $ 30.64 | $ 33.13 | |
Unrecognized compensation cost, net of estimated forfeitures | $ 22 | |||
Weighted average recognizing period of unrecognized compensation cost (in years) | 2 years 4 months 21 days | |||
Total income tax benefit recognized in net income for stock-based compensation arrangements | $ 6 | $ 3 | $ 3 | |
Restricted stock compensation expense | 16 | 7 | 8 | |
Weighted-Average Fair Value On Vesting Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of shares vested based on the weighted-average fair value | 6 | 8 | 12 | |
Weighted-Average Fair Value On Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of shares vested based on the weighted-average fair value | $ 11 | $ 7 | $ 9 | |
Cash Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of average total shareholder return | 100.00% | 100.00% | 100.00% | |
Expense for cash performance awards | $ 0 | $ 8 | $ 18 | |
Liability for awards | 1 | $ 23 | ||
Liability for awards due within one year | $ 0 | |||
Restricted Stock Units (RSUs) [Member] | Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,000,000 | |||
Common stock reserved for issuance | 5,500,000 | 1,500,000 | ||
Cash Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted | 27,000,000 | 30,000,000 | 29,000,000 | |
Cash performance award units period, years | 3 years | 3 years | 3 years | |
Number of cash performance based award units forfeited | 17,000,000 | 10,000,000 | 8,000,000 | |
Outstanding awards balance | 79,200,000 |
Stock-Based Compensation And117
Stock-Based Compensation And Incentive Plans (Summary Of Stock Options Assumption) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months | 6 years 6 months |
Granted stock options | 638,270 | 900,000 |
Weighted average grant-date fair value per share | $ 9.57 | $ 11.40 |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility range, End | 40.49% | 41.89% |
Risk-free interest rate range, End | 2.21% | 2.09% |
Expected dividend yield range | 1.52% | 1.11% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility range, Start | 36.48% | 39.98% |
Risk-free interest rate range, Start | 1.67% | 0.98% |
Expected dividend yield range | 1.08% | 0.89% |
Stock-Based Compensation And118
Stock-Based Compensation And Incentive Plans (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 31, Number of Shares | 3,274,623 | |
Granted, Number of Shares | 638,270 | 900,000 |
Exercised, Number of Shares | (266,829) | |
Forfeited, Number of Shares | (339,882) | |
Expired, Number of Shares | (146,091) | |
Outstanding at December 31, Weighted Average Exercise Price per Share | $ 26.27 | |
Granted, Weighted Average Exercise Price per Share | 27.78 | |
Exercised, Weighted Average Exercise Price per Share | 15.91 | |
Forfeited, Weighted Average Exercise Price per Share | 30.41 | |
Expired, Weighted Average Exercise Price per Share | $ 27.26 | |
Outstanding at December 31, Weighted Average Remaining Contractual Term (years) | 6 years 6 months 15 days | 6 years 11 months 5 days |
Outstanding at December 31, Aggregate Intrinsic Value (in millions) | $ 22,490 | |
Exercisable, Number of Shares | 2,078,401 | |
Exercisable, Weighted Average Exercise Price per Share | $ 25.59 | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 5 months 23 days | |
Exercisable, Aggregate Intrinsic Value (in millions) | $ 2,400 |
Stock-Based Compensation And119
Stock-Based Compensation And Incentive Plans (Summary Of Vested And Unvested RSUs) (Details) - 12 months ended Dec. 31, 2014 - $ / shares | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested shares at December 31, Number of Shares | 668,766 |
Granted, Number of Shares | 1,060,480 |
Vested, Number of Shares | (397,521) |
Forfeited, Number of Shares | (202,848) |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share | $ 29.64 |
Granted, Weighted Average Grant-Date Fair Value per Share | 28.46 |
Vested, Weighted Average Grant-Date Fair Value per Share | 27.82 |
Forfeited, Weighted Average Grant-Date Fair Value per Share | $ 30.63 |
Stock-Based Compensation And120
Stock-Based Compensation And Incentive Plans (Summary Of Share-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Breakdown of share based compensation expense [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 2 | $ 1 | $ 1 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 0 | 0 | 4 |
Stock-based compensation | 22 | 16 | 16 |
Total income tax benefit recognized in net income for stock-based compensation arrangements | 8 | $ 6 | $ 6 |
Cost of Sales [Member] | |||
Breakdown of share based compensation expense [Line Items] | |||
Stock-based compensation | 9 | ||
Selling, General and Administrative Expenses [Member] | |||
Breakdown of share based compensation expense [Line Items] | |||
Stock-based compensation | $ 13 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | $ 0 | $ 0.3 | $ 1 |
Antidilutive weighted average shares | 3 | 1.8 | 1.3 |
Income Per Share (Schedule Of B
Income Per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 146 | 148 | 148 |
Stock options and restricted shares | 0 | 1 | 1 |
Diluted weighted average common shares outstanding | 146 | 149 | 149 |
Financial Instruments And Ri123
Financial Instruments And Risk Management (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivatives, Fair Value [Line Items] | |||
Interest Rate Derivatives, at Fair Value, Net | $ (47) | $ (22) | |
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 47 | 21 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0 | (1) | |
Maximum length of time hedged in cash flow hedge | 12 months | ||
Interest Rate Risk [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ (2) | (2) | $ (2) |
Balance Sheet Hedge [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 789 | 734 | |
Balance Sheet Hedge [Member] | United States of America, Dollars | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 459 | 185 | |
Balance Sheet Hedge [Member] | Qatari Riyal [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 3 | 0 | |
Balance Sheet Hedge [Member] | Canada, Dollars | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 0 | 138 | |
Balance Sheet Hedge [Member] | Saudi Arabia, Riyals | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 0 | 3 | |
Balance Sheet Hedge [Member] | United Kingdom, Pounds | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 126 | 91 | |
Balance Sheet Hedge [Member] | Sweden, Kronor | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 6 | 3 | |
Balance Sheet Hedge [Member] | Norway, Krone | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | 5 | 5 | |
Balance Sheet Hedge [Member] | Australia, Dollars | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts, open forward contracts | $ 190 | $ 309 |
Quarterly Data (Details)
Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Provision for Loss on Contracts | $ 159 | $ 109 | $ 159 | $ 109 | $ 56 | $ 22 | ||||||
Total revenue | 1,417 | $ 1,657 | $ 1,659 | $ 1,633 | 1,680 | $ 1,755 | $ 1,950 | $ 1,829 | 6,366 | 7,214 | 7,770 | |
Gross profit (loss) | (162) | 30 | 28 | 39 | 7 | 114 | 140 | 156 | (65) | 417 | 518 | |
Income (Loss) from Equity Method Investments | 45 | 38 | 49 | 31 | 30 | 31 | 46 | 30 | 163 | 137 | 151 | |
Operating income (loss) | (839) | 10 | 25 | 10 | (27) | 79 | 123 | 133 | (794) | 308 | 299 | |
Net income (loss) | (1,231) | 45 | 8 | (20) | (52) | 15 | 111 | 97 | (1,198) | 171 | 202 | |
Net income (loss) attributable to noncontrolling interests | (10) | (15) | (16) | (23) | (4) | (62) | (21) | (9) | (64) | (96) | (58) | |
Net income (loss) attributable to KBR | $ (1,241) | $ 30 | $ (8) | $ (43) | $ (56) | $ (47) | $ 90 | $ 88 | $ (1,262) | $ 75 | $ 144 | |
Net income attributable to KBR per share - Basic | $ (8.57) | $ 0.21 | $ (0.06) | $ (0.29) | $ (0.38) | $ (0.32) | $ 0.61 | $ 0.59 | $ (8.66) | $ 0.50 | $ 0.97 | |
Net income attributable to KBR per share - Diluted | $ (8.57) | $ 0.21 | $ (0.06) | $ (0.29) | $ (0.38) | $ (0.32) | $ 0.61 | $ 0.59 | $ (8.66) | $ 0.50 | $ 0.97 | |
Impact of Prior Period Adjustment on Gross Profit | $ 22 | $ 25 | ||||||||||
Impact Of Correction of Prior Period Error on Net Income | 14 | 17 | ||||||||||
Impairment of goodwill | $ 446 | 0 | $ 178 | |||||||||
Asset impairment and restructuring charges | 214 | 0 | 2 | |||||||||
Income Tax Expense (Benefit) | $ 391 | 421 | 129 | $ 86 | ||||||||
Canadian Pipe Fabrication And Module Assembly Projects [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Provision for Loss on Contracts | 53 | $ 97 | 53 | $ 97 | ||||||||
Power Projects [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Provision for Loss on Contracts | $ 80 | $ 80 |
Schedule II - Valuation And 125
Schedule II - Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Allowance For Bad Debts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning Period | $ 18 | $ 15 | $ 24 | |
Additions Charged to Costs and Expenses | 11 | 5 | 6 | |
Deductions | [1] | (10) | (2) | (15) |
Balance at End of Period | 19 | 18 | 15 | |
Reserve For Losses On Uncompleted Contracts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning Period | 109 | 56 | 22 | |
Additions Charged to Costs and Expenses | 177 | 106 | 53 | |
Deductions | (127) | (53) | (19) | |
Balance at End of Period | 159 | 109 | 56 | |
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning Period | 91 | 122 | 127 | |
Additions Charged to Other Accounts | [2] | 0 | 2 | 5 |
Deductions | (17) | (33) | (10) | |
Balance at End of Period | $ 74 | $ 91 | $ 122 | |
[1] | Receivable write-offs, net of recoveries, and reclassifications. | |||
[2] | Reserves have been recorded as reductions of revenues, net of reserves no longer required. |
Uncategorized Items - kbr-20141
Label | Element | Value |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 1,128,877 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 28.99 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 3,160,091 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue | $ 2,400 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 26.96 |