Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 10, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-33146 | ||
Entity Registrant Name | KBR, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-4536774 | ||
Entity Address, Address Line One | 601 Jefferson Street, Suite 3400 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | 713 | ||
Local Phone Number | 753-2000 | ||
Title of 12(b) Security | Common Stock par value $0.001 per share | ||
Trading Symbol | KBR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Shares Outstanding (in shares) | 141,938,809 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001357615 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement And Statement Of Comprehensive Income [Abstract] | |||
Revenues | $ 5,639 | $ 4,913 | $ 4,171 |
Cost of revenues | (4,986) | (4,329) | (3,732) |
Gross profit | 653 | 584 | 439 |
Equity in earnings of unconsolidated affiliates | 35 | 79 | 70 |
Selling, general and administrative expenses | (341) | (294) | (244) |
Acquisition and integration related costs | (2) | (7) | 0 |
Asset impairment and restructuring charges | 0 | 0 | (6) |
(Gain) loss on disposition of assets | 17 | (2) | 5 |
Gain on consolidation of Aspire subcontracting entities | 0 | 108 | 0 |
Operating income | 362 | 468 | 264 |
Interest expense | (99) | (66) | (21) |
Other non-operating income (loss) | 5 | (6) | 4 |
Income before income taxes and noncontrolling interests | 268 | 396 | 247 |
(Provision) benefit for income taxes | (59) | (86) | 193 |
Net income | 209 | 310 | 440 |
Net income attributable to noncontrolling interests | (7) | (29) | (8) |
Net income attributable to KBR | $ 202 | $ 281 | $ 432 |
Net income attributable to KBR per share: | |||
Basic (usd per share) | $ 1.42 | $ 1.99 | $ 3.05 |
Diluted (usd per share) | $ 1.41 | $ 1.99 | $ 3.05 |
Basic weighted average common shares outstanding (in shares) | 141 | 140 | 141 |
Diluted weighted average common shares outstanding (in shares) | 142 | 141 | 141 |
Cash dividends declared per share (usd per share) | $ 0.32 | $ 0.32 | $ 0.32 |
Net income | $ 209 | $ 310 | $ 440 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments, net of taxes of $1, $(2) and $6 | (11) | (45) | 2 |
Pension and post-retirement benefits, net of taxes of $11, $(14) and $(27) | (62) | 68 | 125 |
Changes in fair value of derivatives, net of taxes of $2 | (4) | ||
Changes in fair value of derivatives, net of taxes of $3 and $0, before 2017-12 adoption | (11) | 0 | |
Total other comprehensive income (loss) | (77) | 12 | 127 |
Comprehensive income | 132 | 322 | 567 |
Less: Comprehensive income attributable to noncontrolling interests | 7 | 29 | 7 |
Comprehensive income attributable to KBR | $ 125 | $ 293 | $ 560 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Statement And Statement Of Comprehensive Income [Abstract] | |
Foreign currency translation adjustment, tax | $ 1 |
Pension and post-retirement benefits, tax | 11 |
Change in fair value of derivatives, tax | 2 |
Change in fair value of derivatives, before 2017-12 adoption, tax | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets £ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Current assets: | ||
Cash and equivalents | $ 712 | $ 739 |
Accounts receivable, net of allowance for doubtful accounts of $14 and $9 | 938 | 927 |
Contract assets | 215 | 185 |
Other current assets | 146 | 108 |
Total current assets | 2,011 | 1,959 |
Claims receivable | 59 | 98 |
Property, plant, and equipment, net of accumulated depreciation of $386 and $355 (including net PPE of $29 and $35 owned by a variable interest entity) | 130 | 121 |
Operating lease right-of-use assets | 175 | 0 |
Goodwill | 1,265 | 1,265 |
Intangible assets, net of accumulated amortization of $184 and $151 | 495 | 516 |
Equity in and advances to unconsolidated affiliates | 850 | 724 |
Deferred income taxes | 236 | 222 |
Other assets | 143 | 147 |
Total assets | 5,364 | 5,052 |
Current liabilities: | ||
Accounts payable | 572 | 546 |
Contract liabilities | 484 | 463 |
Accrued salaries, wages and benefits | 209 | 221 |
Nonrecourse project debt | 11 | 10 |
Operating lease liabilities | 39 | 0 |
Other current liabilities | 186 | 179 |
Total current liabilities | 1,501 | 1,419 |
Pension obligations | 277 | 250 |
Employee compensation and benefits | 115 | 109 |
Income tax payable | 92 | 84 |
Deferred income taxes | 16 | 27 |
Nonrecourse project debt | 7 | 17 |
Long term debt | 1,183 | 1,226 |
Operating lease liabilities | 192 | 0 |
Other liabilities | 124 | 202 |
Total liabilities | 3,507 | 3,334 |
KBR shareholders’ equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.001 par value 300,000,000 shares authorized, 178,330,201 and 177,383,302 shares issued, and 141,819,148 and 140,900,032 shares outstanding, respectively | 0 | 0 |
PIC | 2,206 | 2,190 |
Retained earnings | 1,441 | 1,235 |
Treasury stock, 36,511,053 shares and 36,483,270 shares, at cost, respectively | (817) | (817) |
AOCL | (987) | (910) |
Total KBR shareholders’ equity | 1,843 | 1,698 |
Noncontrolling interests | 14 | 20 |
Total shareholders’ equity | 1,857 | 1,718 |
Total liabilities and shareholders’ equity | $ 5,364 | $ 5,052 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables: | ||
Allowance for doubtful accounts receivable | $ 14 | $ 9 |
Property, plant, and equipment: | ||
Accumulated depreciation | 386 | 355 |
PP&E owned by a VIE, net | 29 | 35 |
Accumulated amortization | $ 184 | $ 151 |
KBR shareholders’ equity: | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (shares) | 178,330,201 | 177,383,302 |
Common stock, shares outstanding (shares) | 141,819,148 | 140,900,032 |
Treasury stock (shares) | 36,511,053 | 36,483,270 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity $ in Millions | USD ($) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | $ 725 |
Beginning Balance at Dec. 31, 2016 | 725 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Acquisition of noncontrolling interest | (8) |
Share-based compensation | 12 |
Dividends declared to shareholders | (45) |
Repurchases of common stock | (53) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Investments by noncontrolling interests | 1 |
Distributions to noncontrolling interests | (4) |
Other noncontrolling interests activity | (1) |
Comprehensive income | 567 |
Ending Balance at Dec. 31, 2017 | 1,197 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | 1,341 |
Acquisition of noncontrolling interest | 69 |
Share-based compensation | 10 |
Tax benefit increase related to share-based plans | 1 |
Common stock issued upon exercise of stock options | 2 |
Dividends declared to shareholders | (44) |
Repurchases of common stock | (3) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Issuance of convertible debt | 18 |
Distributions to noncontrolling interests | (3) |
Other noncontrolling interests activity | 2 |
Comprehensive income | 322 |
Ending Balance at Dec. 31, 2018 | 1,718 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Adjusted balance | 1,768 |
Share-based compensation | 12 |
Common stock issued upon exercise of stock options | 5 |
Dividends declared to shareholders | (46) |
Repurchases of common stock | (4) |
Issuance of employee stock purchase plan (ESPP) shares | 3 |
Investments by noncontrolling interests | 1 |
Distributions to noncontrolling interests | (14) |
Comprehensive income | 132 |
Ending Balance at Dec. 31, 2019 | $ 1,857 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 209 | $ 310 | $ 440 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 104 | 63 | 48 |
Equity in earnings of unconsolidated affiliates | (35) | (79) | (70) |
Deferred income tax (benefit) expense | (14) | 26 | (322) |
Loss (gain) on disposition of assets | (17) | 2 | (5) |
Gain on consolidation of Aspire subcontracting entities | 0 | (108) | 0 |
Other | 34 | 24 | 29 |
Changes in operating assets and liabilities, net of acquired businesses: | |||
Accounts receivable, net of allowance for doubtful accounts | (16) | (203) | 92 |
Contract assets | (31) | 25 | 40 |
Claims receivable | 39 | 3 | 430 |
Accounts payable | 23 | 112 | (193) |
Contract liabilities | 19 | (60) | (198) |
Accrued salaries, wages and benefits | (9) | 11 | 14 |
Payments from (advances to) unconsolidated affiliates, net | 10 | 12 | 11 |
Distributions of earnings from unconsolidated affiliates | 69 | 75 | 62 |
Pension funding | (45) | (41) | (37) |
Other assets and liabilities | (84) | (7) | (148) |
Total cash flows provided by operating activities | 256 | 165 | 193 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (20) | (17) | (8) |
Investments in equity method joint ventures | (146) | (344) | 0 |
Proceeds from sale of assets or investments | 9 | 25 | 2 |
Acquisitions of businesses, net of cash acquired | 0 | (354) | (4) |
Adjustments to cash due to consolidation of Aspire entities | 0 | 197 | 0 |
Other | (1) | 2 | (2) |
Total cash flows used in investing activities | (158) | (491) | (12) |
Cash flows from financing activities: | |||
Payments to reacquire common stock | (4) | (3) | (53) |
Acquisition of remaining ownership interest in joint ventures | 0 | (56) | 0 |
Investments from noncontrolling interests | 1 | 0 | 1 |
Distributions to noncontrolling interests | (14) | (3) | (4) |
Payments of dividends to shareholders | (46) | (44) | (45) |
Proceeds from sale of warrants | 0 | 22 | 0 |
Purchase of note hedges | 0 | (62) | 0 |
Issuance of convertible notes | 0 | 350 | 0 |
Net proceeds from issuance of common stock | 5 | 2 | 0 |
Excess tax benefits from share-based compensation | 0 | 1 | 0 |
Borrowings on revolving credit agreement | 0 | 250 | 0 |
Borrowings on long term debt | 0 | 1,075 | 0 |
Payments on revolving credit agreement | 0 | (720) | (180) |
Payments on short-term and long-term borrowings | (70) | (100) | (9) |
Debt issuance costs | 0 | (57) | 0 |
Other | (5) | (1) | 0 |
Total cash flows provided (used) by financing activities | (133) | 654 | (290) |
Effect of exchange rate changes on cash | 8 | (28) | 12 |
Increase (decrease) in cash and equivalents | (27) | 300 | (97) |
Cash and equivalents at beginning of period | 739 | 439 | 536 |
Cash and equivalents at end of period | 712 | 739 | 439 |
Supplemental disclosure of cash flows information: | |||
Cash paid for interest | 80 | 52 | 21 |
Cash paid for income taxes (net of refunds) | 54 | 21 | 144 |
Noncash investing activities | |||
Acquisition of technology licensing rights | 0 | 16 | 0 |
Noncash financing activities | |||
Dividends declared | $ 11 | $ 11 | $ 11 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 12 to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in our consolidated statements of operations, consolidated balance sheets and the consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. We have elected to classify certain indirect costs incurred as overhead (included in "Cost of revenues") or general administrative expenses for U.S. GAAP reporting purposes in the same manner as such costs are defined in our disclosure statements under CAS. Effective January 1, 2019, we established a new CAS structure and revised our disclosure statements accordingly to reflect the related cost accounting practice changes. Consequently, for the years ended December 31, 2018 and 2017 , $128 million and $97 million , respectively, was reclassified from "Cost of revenues" to "Selling, general and administrative expenses" on our consolidated statement of operations. Year Ended Year Ended December 31, 2018 December 31, 2017 Dollars in millions As Reported As Previously Reported As Reported As Previously Reported Statement of Operations Cost of revenues $ (4,329 ) $ (4,457 ) $ (3,732 ) $ (3,829 ) Selling, general and administrative expenses (294 ) (166 ) (244 ) (147 ) Business Reorganization Effective January 1, 2019, we changed the name of our Government Services segment to "Government Solutions", our Technology segment to "Technology Solutions" and our Hydrocarbons Services segment to "Energy Solutions". The change did not have an impact on our reportable segments. As of January 1, 2019, our segments consist of the following five reportable segments: • Government Solutions • Technology Solutions • Energy Solutions • Non-strategic Business • Other See Note 2 to our consolidated financial statements for further discussion on our segments. We have presented our segment results reflecting these changes for all periods presented. In conjunction with the change in segments, we evaluated goodwill associated with each of our reporting units using Level 3 fair value inputs, and no impairment indicators were identified. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities; the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts, including recognition of estimated losses on uncompleted contracts • award fees, costs and profits on government services contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of VIEs • valuation of share-based compensation • valuation of assets and liabilities acquired in business combinations 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. Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 5 to our consolidated financial statements for our discussion on cash and equivalents. Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers on January, 1, 2018. Our financial results for reporting periods beginning January 1, 2018 are presented under the new accounting standard, while financial results for prior periods will continue to be reported in accordance with our historical accounting policy. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied which generally occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, which is more prevalent than not, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Services Contracts For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time generally using the cost-to-cost method (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress because it best depicts the transfer of value to the customer. Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Under the typical payment terms of our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., weekly, biweekly or monthly) or upon achievement of contractual milestones. Engineering and Construction Contracts We recognize revenue over time, as performance obligations are satisfied, for substantially all of our engineering and construction contracts due to the continuous transfer of control to the customer. For most of our engineering and construction contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability and are therefore accounted for as single performance obligations. We recognize revenue using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs. This method is the most accurate measure of our contract performance because it directly measures the value of the goods and services transferred to the customer. Contract costs include all direct material, labor and subcontractor costs and indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer. Project mobilization costs are generally charged to the project as incurred when they are an integrated part of the performance obligation being transferred to the client. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. The payment terms of our engineering and construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered to contain a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation. Variable Consideration It is common for our contracts to contain variable consideration in the form of incentive fees, performance bonuses, award fees, liquidated damages or penalties. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance, and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Historically, warranty claims have not resulted in material costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in one or more of these estimates could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify contract assets and liabilities as current or noncurrent to the extent the revenue is expected to be recognized in excess of one year from the balance sheet date. Gross Profit Gross profit represents revenues less the cost of revenues, which includes business segment overhead costs directly attributable to execution of contracts by the business segment. General and Administrative Expenses Our general and administrative expenses represent expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other corporate functions. Accounts Receivable Accounts receivable are recorded based on contracted prices when we obtain an unconditional right to payment under the terms of our contracts. We establish an allowance for doubtful accounts based on the assessment of our clients' willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. In 2018, we entered into a factoring agreement to sell certain receivables to unrelated third-party financial institutions. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivable to the purchaser. Our factoring agreement does not allow for recourse in the event of uncollectibility, and we do not retain any controlling interest in the underlying accounts receivable once sold. We derecognized $14 million of accounts receivable as of December 31, 2018 under this factoring agreement. The fees associated with sale of receivables under this agreement were not material in 2018. No receivables were factored in 2019. Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 10 to our consolidated financial statements for our discussion on property, plant and equipment. Acquisitions We account for business combinations using the acquisition method of accounting in accordance with ASC 805 - Business Combinations, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We conduct external and internal valuations of certain acquired assets and liabilities for inclusion in our balance sheet as of the date of acquisition. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. Goodwill and Intangible Assets Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of goodwill impairment. The second step compares the implied fair value of the reporting unit goodwill to the carrying value of the reporting unit goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. We completed our annual goodwill impairment test in the fourth quarter of 2019 and determined that none of the goodwill was impaired. See Note 11 to our consolidated financial statements for reported goodwill in each of our segments. We had intangible assets with net carrying values of $495 million and $516 million as of December 31, 2019 and 2018 , respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. As of December 31, 2019 , none of our intangible assets with indefinite lives were impaired. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years . See Note 11 to our consolidated financial statements for further discussion of our intangible assets. Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 12 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. Joint Ventures and VIEs The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC 810 - Consolidation, which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, engineering and construction projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 12 to our consolidated financial statements for our discussion on variable interest entities. Occasionally, we may determine that we are the primary beneficiary as a result of a reconsideration event associated with an existing unconsolidated VIE. We account for the change in control under the acquisition method of accounting for business combinations in accordance with ASC 805. See Note 4 to our consolidated financial statements. Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with ASC 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of fair value of any consideration received, the fair value of any retained noncontrolling investment and the carrying amount of any noncontrolling interest in the former subsidiary at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (typically annually) and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country, participant demographics or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 25 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an 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. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, a relatively few number of projects, government programs and joint ventures represent a substantial part of our operations. Our reportable segments follow the same accounting policies as those described in Note 1 to our consolidated financial statements. We are organized into three core business segments, Government Solutions, Technology Solutions, and Energy Solutions, and two non-core business segments as described below: Government Solutions. Our GS business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies in the U.S., U.K. and Australia. KBR covers the full spectrum from research and development; through systems engineering, test and evaluation, systems integration and program management; to operations support, maintenance and field logistics. Our acquisitions as described in Note 4 to our consolidated financial statements have been fully integrated with our existing operations. Technology Solutions. Our TS business segment combines KBR's proprietary technologies, equipment and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic and specialty chemicals as well as gasification, syngas, ammonia, nitric acid and fertilizers. From early planning through scope definition, advanced technologies and project life-cycle support, our TS business segment works closely with customers to provide the optimal approach to maximize their return on investment. Energy Solutions. Our ES business segment provides full life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets. We provide comprehensive project and program delivery capabilities as well as engineering services front-end consulting and feasibility studies, sustaining capital construction, turnarounds, maintenance services, and more. Our key capabilities leverage our operational and technical excellence as a global provider of EPC and high-impact consulting and engineering services for onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers; offshore oil and gas; and floating solutions. Non-strategic Business. Our Non-strategic Business segment represents the operations or activities we determine are no longer core to our business strategy and that we have exited or intend to exit upon completion of existing contracts. All Non-Strategic Business projects are substantially complete. Current activities in this business segment primarily relate to final project close-out, negotiation and settlement of claims, joint venture liquidation and various other matters associated with these projects. Effective for the quarter ended September 30, 2019, we reported the results of joint venture operations related to a project in Latin America within our Non-strategic Business segment. The reclassification results from our decision during the quarter to wind down the operating activities of the joint venture and exit the business. Equity in earnings of unconsolidated affiliates related to this joint venture were previously reported in our Energy Solutions business segment and were losses of $13 million and $3 million for the years ended December 31, 2019 and 2018 , respectively. Other. Our Other segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above. The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, selling, general and administrative expenses, acquisition and integration related costs, gain on disposition of assets, gain on consolidation of Aspire entities and operating income (loss) by reporting segment. Operations by Reportable Segment Years ended December 31, Dollars in millions 2019 2018 2017 Revenues: Government Solutions $ 3,925 $ 3,457 $ 2,193 Technology Solutions 374 297 269 Energy Solutions 1,339 1,157 1,671 Subtotal 5,638 4,911 4,133 Non-strategic Business 1 2 38 Total $ 5,639 $ 4,913 $ 4,171 Gross profit (loss): Government Solutions $ 430 $ 350 $ 188 Technology Solutions 118 106 98 Energy Solutions 100 134 153 Subtotal 648 590 439 Non-strategic Business 5 (6 ) — Total $ 653 $ 584 $ 439 Equity in earnings of unconsolidated affiliates: Government Solutions $ 29 $ 32 $ 43 Technology Solutions — — — Energy Solutions 19 50 27 Subtotal 48 82 70 Non-strategic Business (13 ) (3 ) — Total $ 35 $ 79 $ 70 Selling, general and administrative expenses: Government Solutions $ (134 ) (109 ) (57 ) Technology Solutions (28 ) (24 ) (25 ) Energy Solutions (63 ) (64 ) (68 ) Other (116 ) (97 ) (94 ) Subtotal (341 ) (294 ) (244 ) Non-strategic Business — — — Total $ (341 ) (294 ) (244 ) Acquisition and integration related costs: Government Solutions $ (2 ) (7 ) — Technology Solutions — — — Energy Solutions — — — Other — — — Subtotal (2 ) (7 ) — Non-strategic Business — — — Total $ (2 ) (7 ) — Asset impairment and restructuring charges Government Solutions $ — $ — $ — Technology Solutions — — — Energy Solutions — — (6 ) Other — — — Subtotal — — (6 ) Non-strategic Business — — — Total $ — $ — $ (6 ) Years ended December 31, Dollars in millions 2019 2018 2017 Gain (loss) on disposition of assets: Government Solutions 12 4 — Technology Solutions — — — Energy Solutions — (2 ) 5 Other 5 (4 ) — Subtotal 17 (2 ) 5 Non-strategic Business — — — Total 17 (2 ) 5 Gain on consolidation of Aspire entities: Government Solutions — 113 — Technology Solutions — — — Energy Solutions — — — Other — (5 ) — Subtotal — 108 — Non-strategic Business — — — Total — 108 — Segment operating income (loss): Government Solutions $ 335 $ 383 $ 173 Technology Solutions 90 82 73 Energy Solutions 56 118 111 Other (111 ) (106 ) (93 ) Subtotal 370 477 264 Non-strategic Business (8 ) (9 ) — Total $ 362 $ 468 $ 264 Years ended December 31, Dollars in millions 2019 2018 2017 Capital expenditures: Government Solutions $ 7 $ 11 $ 4 Technology Solutions 1 — — Energy Solutions 3 1 2 Other 9 5 2 Subtotal 20 17 8 Non-strategic Business — — — Total $ 20 $ 17 $ 8 Depreciation and amortization: Government Solutions $ 58 $ 42 $ 27 Technology Solutions 6 3 3 Energy Solutions 21 10 10 Other 19 8 8 Subtotal 104 63 48 Non-strategic Business — — — Total $ 104 $ 63 $ 48 Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. With a portfolio of more than one thousand contracts, we generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Changes in project-related estimates by business segment, which significantly impacted operating income during the periods presented, are as follows: Energy Solutions We recognized changes to equity earnings as a result of various changes to estimates on the Ichthys LNG Project during the years ended December 31, 2018 and 2017. See Note 8 for a discussion of the matters impacting this project. We also recognized a favorable change in estimated revenues and net income associated with variable consideration recognized as a result of successful completion and performance testing of a major ES project during the year ended December 31, 2018. During the year ended December 31, 2017, the PEMEX and PEP arbitration was settled (see Note 17 to our consolidated financial statements) which resulted in additional revenues and gross profit of $35 million during the year ended December 31, 2017. Balance Sheet Information by Reportable Segment Assets specific to business segments include receivables, contract assets, other current assets, claims and accounts receivable, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other." December 31, Dollars in millions 2019 2018 Total assets: Government Solutions $ 2,749 $ 2,804 Technology Solutions 222 204 Energy Solutions 1,497 1,271 Other 889 746 Subtotal 5,357 5,025 Non-strategic Business 7 27 Total $ 5,364 $ 5,052 Goodwill (Note 11): Government Solutions $ 978 $ 977 Technology Solutions 50 51 Energy Solutions 237 237 Other — — Subtotal 1,265 1,265 Non-strategic Business — — Total $ 1,265 $ 1,265 Equity in and advances to related companies (Note 12): Government Solutions $ 151 $ 114 Technology Solutions — — Energy Solutions 699 610 Other — — Subtotal 850 724 Non-strategic Business — — Total $ 850 $ 724 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 2019 2018 2017 Revenues: United States $ 2,705 $ 2,260 $ 1,986 Middle East 1,027 884 836 Europe 1,058 989 480 Australia 288 329 334 Canada 39 21 224 Africa 197 133 121 Asia 214 190 125 Other countries 111 107 65 Total $ 5,639 $ 4,913 $ 4,171 December 31, Dollars in millions 2019 2018 Property, plant & equipment, net: United States $ 50 $ 51 United Kingdom 44 50 Other 36 20 Total $ 130 $ 121 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue from customers by type of service, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below. Revenue by Service/Product line was as follows: Year Ended December 31, Dollars in millions 2019 2018 Government Solutions Space and Mission Solutions $ 874 $ 651 Engineering 1,158 1,141 Logistics 1,893 1,665 Subtotal 3,925 3,457 Technology Solutions 374 297 Energy Solutions EPC Delivery Solutions 438 432 Services and Consulting 901 725 Subtotal 1,339 1,157 Non-strategic business 1 2 Total net revenue $ 5,639 $ 4,913 Government Solutions revenue earned from key U.S. Government customers including U.S. DoD agencies and NASA was $3.0 billion and $2.6 billion for the years ended December 31, 2019 and 2018 , respectively. Government Solutions revenue earned from non-U.S. Government customers including the U.K. MoD, the Australian Defence Force and others was $911 million and $847 million for the years ended December 31, 2019 and 2018 , respectively. Revenue by geographic destination was as follows: Year Ended December 31, 2019 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total United States $ 2,110 $ 38 $ 556 $ 1 $ 2,705 Middle East 795 15 217 — 1,027 Europe 796 71 191 — 1,058 Australia 93 1 194 — 288 Canada 1 1 37 — 39 Africa 76 31 90 — 197 Asia — 211 3 — 214 Other countries 54 6 51 — 111 Total net revenue $ 3,925 $ 374 $ 1,339 $ 1 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Many of our contracts contain both fixed price and cost reimbursable components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Year Ended December 31, 2019 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total Fixed Price $ 1,111 $ 367 $ 240 $ 1 $ 1,719 Cost Reimbursable 2,814 7 1,099 — 3,920 Total net revenue $ 3,925 $ 374 $ 1,339 $ 1 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total Fixed Price $ 1,031 $ 288 $ 187 $ 2 $ 1,508 Cost Reimbursable 2,426 9 970 — 3,405 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 We recognized revenue of $15 million from performance obligations satisfied in previous periods for the year ended December 31, 2019 . On December 31, 2019 , we had $11.4 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 34% of our remaining performance obligations as revenue within one year , 33% in years two through five , and 33% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations related to Aspire Defence and Fasttrax projects, which have contract terms extending through 2041 and 2023, respectively. The balance of remaining performance obligations does not include variable consideration that was determined to be constrained as of December 31, 2019 . |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Stinger Ghaffarian Technologies Acquisition On April 25, 2018, we acquired 100% of the outstanding stock of SGT. SGT is a leading provider of high-value engineering, mission operations, scientific and IT software solutions in the government services market. We accounted for this transaction using the acquisition method under ASC 805, Business Combinations. The acquisition is reported within our GS business segment. Aggregate base consideration for the acquisition was $355 million , plus $10 million of working capital and other purchase price adjustments set forth in the purchase agreement. We recognized goodwill of $257 million arising from the acquisition. We recognized direct, incremental costs related to this acquisition of $2 million and $4 million during the years ended December 31, 2019 and 2018 , respectively. These costs are included in "Acquisition and integration related costs" on the consolidated statements of operations. The acquired SGT business contributed $481 million and $342 million of revenues, and $47 million and $31 million of gross profit during the years ended December 31, 2019 and 2018 , respectively. Aspire Defence Subcontracting Joint Ventures Effective January 15, 2018, as a result of our joint venture partner's compulsory liquidation, we assumed operational control of and began consolidating the Aspire Defence subcontracting entities in our consolidated financial statements. We accounted for these transactions under the acquisition method of accounting for business combinations and recognized a gain of approximately $108 million included in "Gain on consolidation of Aspire subcontracting entities" as a result of remeasuring our equity interests in each of the subcontracting entities to fair value. We also recognized goodwill of approximately $42 million . We subsequently completed the purchase of our partner's interests in the subcontracting entities on April 18, 2018 for $50 million pursuant to a share and business purchase agreement and approval by Aspire Defence Limited, the Aspire Defence Limited project lenders and the MoD. We accounted for the change in ownership interests as an equity transaction. The difference between the noncontrolling interests of $119 million in the subcontracting entities at the date of acquisition and the cash consideration paid to our partner was recognized as a net increase to "PIC" of $69 million . We incurred $1 million of acquisition-related costs for the year ended December 31, 2018 , which were recorded in "Acquisition and integration related costs" on our consolidated statements of operations. No acquisition-related costs were recorded for the year ended December 31, 2019 . The results of operations of the subcontracting entities have been included in our consolidated statements of operations for periods subsequent to assuming control on January 15, 2018. The acquired subcontracting entities contributed $535 million and $533 million of revenues and $71 million and $61 million of gross profit during the years ended December 31, 2019 and 2018 , respectively. The following supplemental pro forma condensed consolidated results of operations assume that SGT and the Aspire Defence subcontracting entities had been acquired as of January 1, 2017. The supplemental pro forma information was prepared based on the historical financial information of SGT and the Aspire Defence subcontracting entities and has been adjusted to give effect to pro forma adjustments that are both directly attributable to the transaction and factually supportable. Pro forma adjustments were primarily related to the amortization of intangibles, interest on borrowings related to the acquisitions and the reclassification of the gain on consolidation of the Aspire entities to January 1, 2017. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisitions occurred on January 1, 2017, nor is it indicative of future results of operations. Year ended December 31, Dollars in millions 2018 2017 (Unaudited) Revenue $ 5,060 $ 5,057 Net income attributable to KBR 367 342 Diluted earnings per share $ 2.59 $ 2.41 |
Cash and Equivalents
Cash and Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Equivalents | Cash and Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and equivalents include cash balances held by our wholly owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture and the Aspire project cash balances are limited to specific project activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors of the respective entities. We expect to use this cash for project costs and distributions of earnings. The components of our cash and equivalents balance are as follows: December 31, 2019 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 187 $ 114 $ 301 Short-term investments (c) 58 93 151 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 259 1 260 Total $ 504 $ 208 $ 712 December 31, 2018 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 123 $ 104 $ 227 Short-term investments (c) 87 107 194 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 315 3 318 Total $ 525 $ 214 $ 739 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds, and other highly liquid short-term investments. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of our accounts receivable, net of allowance for doubtful accounts, are as follows: December 31, 2019 Dollars in millions Unbilled Trade & Other Total Government Solutions $ 184 $ 381 $ 565 Technology Solutions 6 56 62 Energy Solutions 118 192 310 Subtotal 308 629 937 Non-strategic Business — 1 1 Total $ 308 $ 630 $ 938 December 31, 2018 Dollars in millions Unbilled Trade & Other Total Government Solutions $ 266 $ 334 $ 600 Technology Solutions 11 62 73 Energy Solutions 69 185 254 Subtotal 346 581 927 Non-strategic Business — — — Total $ 346 $ 581 $ 927 |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities Our contract assets by business segment are as follows: December 31, Dollars in millions 2019 2018 Government Solutions $ 111 $ 123 Technology Solutions 36 19 Energy Solutions 68 43 Subtotal 215 185 Non-strategic Business — — Total $ 215 $ 185 Our contract liabilities balances by business segment are as follows: December 31, Dollars in millions 2019 2018 Government Solutions $ 261 $ 261 Technology Solutions 73 98 Energy Solutions 147 100 Subtotal 481 459 Non-strategic Business 3 4 Total $ 484 $ 463 We recognized revenue of $211 million for the year ended December 31, 2019 , that was previously included in the contract liability balance at December 31, 2018 . |
Unapproved Change Orders and Cl
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | 12 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2019 2018 Amounts included in project estimates-at-completion at January 1, $ 973 $ 924 Increase, net of foreign currency effect 12 53 Approved change orders, net of foreign currency effect (7 ) (4 ) Amounts included in project estimates-at-completion at December 31, $ 978 $ 973 Amounts recognized over time based on progress at December 31, $ 974 $ 945 As of December 31, 2019 and 2018 , the predominant component of change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors above relates to our 30% proportionate share of unapproved change orders and claims associated with the Ichthys LNG Project discussed below. KBR intends to vigorously pursue approval and collection of amounts still due under unapproved change orders and claims, against the clients and recoveries from subcontractors. Further, there are additional claims that KBR believes it is entitled to recover from its client and from subcontractors which have been excluded from estimated revenues and profits at completion as appropriate under U.S. GAAP. These commercial matters may not be resolved in the near term. Our current estimates for the above unapproved change orders, client claims and estimated recoveries of claims against suppliers and subcontractors may prove inaccurate and any material change could have a material adverse effect on our results of operations, financial position and cash flows. Ichthys LNG Project Project Status We have a 30% ownership interest in the JKC joint venture, which has contracted to perform the engineering, procurement, supply, construction and commissioning of onshore LNG facilities for a client in Darwin, Australia (the "Ichthys LNG Project"). The contract between JKC and its client is a hybrid contract containing both cost-reimbursable and fixed-price (including unit-rate) scopes. The construction and commissioning of the Ichthys LNG Project is complete and all performance tests have been successfully performed. The entire facility, including two LNG liquefaction trains, cryogenic tanks and the combined cycle power generation facility, has been handed over to the client and is producing LNG. JKC is in the process of executing project close-out activities and continues to negotiate the various legal and commercial disputes with the client, suppliers and other third parties as further described below. Unapproved Change Orders and Claims Against Client Under the cost-reimbursable scope of the contract with the client, JKC has entered into commercial contracts with multiple suppliers and subcontractors to execute various scopes of work on the project. Certain of these suppliers and subcontractors have made contract claims against JKC for recovery of costs and extensions of time to progress the works under the scope of their respective contracts due to a variety of issues related to alleged changes to the scope of work, delays and lower than planned subcontractor productivity. In addition, JKC has incurred costs related to scope increases and other factors, and has made claims to its client for matters for which JKC believes it is entitled to reimbursement under the contract. JKC believes any amounts paid or payable to the suppliers and subcontractors in settlement of their contract claims related to the cost-reimbursable scope are an adjustment to the contract price, and accordingly JKC has made claims for contract price adjustments under the cost-reimbursable scope of the contract between JKC and its client. However, the client disputed some of these contract price adjustments and subsequently withheld certain payments. In order to facilitate the continuation of work under the contract while JKC worked to resolve this dispute, the client agreed to a contractual mechanism (“Funding Deed”) in 2016 providing funding in the form of an interim contract price adjustment to JKC and consented to settlement of subcontractor claims as of that date related to the cost-reimbursable scope. While the client has reserved its contractual rights under this funding mechanism, settlement funds (representing the interim contract price adjustment) have been paid by the client. JKC in turn settled these subcontractor claims which have been funded through the Funding Deed by the client. If JKC's claims against its client which were funded under the Funding Deed remain unresolved by December 31, 2020, JKC will be required to refund sums funded by the client under the terms of the Funding Deed. We, along with our joint venture partners, are jointly and severally liable to the client for any amounts required to be refunded. Our proportionate share of the total amount of the contract price adjustments under the Funding Deed included in the unapproved change orders and claims related to JKC discussed above is $158 million and $159 million as of December 31, 2019 and 2018 , respectively. The difference in these values is due to exchange rate fluctuations. In September and October 2017, additional settlements pertaining to suppliers and subcontractors under the cost-reimbursable scope of the contract were presented to the client. The client consented to these settlements and paid for them but reserved its contractual rights. In reliance, JKC in turn settled these claims with the associated suppliers and subcontractors. The formal contract price adjustments for these settlements remained pending at December 31, 2019 . However, unlike amounts funded under the Funding Deed, there is no requirement to refund these amounts to the client by a certain date. In October 2018, JKC received a favorable ruling from an arbitration tribunal related to the Funding Deeds. The ruling determined a contract interpretation in JKC's favor, to the effect that delay and disruption costs payable to subcontractors under the cost-reimbursable scope of the EPC contract are for the client's account and are reimbursable to JKC. JKC contends this ruling resolves the reimbursability of the subcontractor settlement sums under the Funding Deed and additional settlements made in September and October 2017. Pursuant to this decision, JKC has undertaken steps for a formal contract adjustment to the cost-reimbursable scope of the contract for these settlement claims which are included in the recognized unapproved change orders as of December 31, 2019 . Our view is that the arbitration ruling resolves our obligations under the Funding Deeds and settlements with reimbursable subcontractors. However, the client does not agree with the impact of the arbitration award and, accordingly, we have initiated a new proceeding to obtain further determination from the arbitration tribunal. There has been deterioration of paint and insulation on certain exterior areas of the plant. The client previously requested and funded paint remediation for a portion of the facilities. JKC’s profit estimate at completion includes a portion of revenues and costs for these remediation activities. Revenue for the client-funded amounts are included in the table above. In the first quarter of 2019, the client demanded repayment of the amounts previously funded to JKC. JKC is disputing the client's demand. The client has also requested a proposal to remediate any remaining non-conforming paint and insulation, but JKC and its client have not resolved the nature and extent of the non-conformances, the method and degree of remediation that was and is required, or who is responsible. We believe the remaining remediation costs could be material given the plant is now operating and there will be several operating constraints on any such works. In addition, JKC has started proceedings against the paint manufacturer and initiated claims against the subcontractors. JKC has also made demands on insurance policies in respect of these matters. Proceedings and claims against the paint manufacturer, certain subcontractors and insurance policies are ongoing. Combined Cycle Power Plant Pursuant to JKC's fixed-price scope of its contract with its client, JKC awarded a fixed-price EPC contract to a subcontractor for the design, construction and commissioning of the Combined Cycle Power Plant (the "Power Plant"). The subcontractor was a consortium consisting of General Electric and GE Electrical International Inc. and a joint venture between UGL Infrastructure Pty Limited and CH2M Hill (collectively, the "Consortium"). On January 25, 2017, JKC received a Notice of Termination from the Consortium, and the Consortium ceased work on the Power Plant and abandoned the construction site. JKC believes the Consortium materially breached its subcontract and repudiated its obligation to complete the Power Plant, plus undertook actions making it more difficult and more costly for the works to be completed by others after the Consortium abandoned the site. Subsequently, the Consortium filed a request for arbitration with the ICC asserting that JKC repudiated the contract. The Consortium also sought an order that the Consortium validly terminated the subcontract. JKC has responded to this request, denying JKC committed any breach of its subcontract with the Consortium and restated its claim that the Consortium breached and repudiated its subcontract with JKC and is furthermore liable to JKC for all costs to complete the Power Plant. In March 2017, JKC prevailed in a legal action against the Consortium requiring the return of materials, drawings and tools following their unauthorized removal from the site by the Consortium. After taking over the work, JKC discovered incomplete and defective engineering designs, defective workmanship on the site, missing, underreported and defective materials and the improper termination of key vendors/suppliers. JKC's investigations also indicate that progress of the work claimed by the Consortium was over-reported. JKC has evaluated the cost to complete the Consortium's work, which significantly exceeds the awarded fixed-price subcontract value. JKC's cost to complete the Power Plant includes re-design efforts, additional materials and significant re-work. These costs represent estimated recoveries of claims against the Consortium and have been included in JKC's estimate to complete the Consortium's remaining obligations. JKC is pursuing recourse against the Consortium to recover all of the costs to complete the Power Plant, plus the additional interest, and/or general damages by all means inclusive of calling bank guarantees provided by the Consortium partners. In April 2018, JKC prevailed in a legal action to call bank guarantees (bonds) and received funds totaling $52 million . Each of the Consortium partners has joint and several liability with respect to all obligations under the subcontract. JKC intends to pursue recovery of all additional amounts due from the Consortium via various legal remedies available to JKC. Costs incurred to complete the Power Plant that have been determined to be probable of recovery from the Consortium under U.S. GAAP have been included as a reduction of cost in our estimate of profit at completion. The estimated recoveries exclude interest, liquidated damages and other related costs which JKC intends to pursue recovery from the Consortium. Amounts expected to be recovered from the Consortium are included in the table above. As of December 31, 2019 , JKC's claims against the Consortium were approximately $1.9 billion for recovery of JKC's costs. Hearings on the arbitration will take place in May and August of 2020 (the "Arbitration"). JKC also initiated suit against the parent companies of the Consortium members to seek a declaration that the parents either had to perform and finish the work or pay for the completion of the power plant based on their payment and performance guarantees. In May 2019, the court ruled against the declaration and JKC's appeal is pending from the court. To the extent JKC is unsuccessful in prevailing in the Arbitration or the Consortium members are unable to satisfy their financial obligations in the event of a decision favorable to JKC, we would be responsible for our pro-rata portion of unrecovered costs from the Consortium. This could have a material adverse impact on the profit at completion of the overall contract and thus on our consolidated statements of operations and financial position. Ichthys Project Funding As a result of the ongoing disputes with the client and pursuit of recoveries against the Consortium through the Arbitration, we have funded our proportionate share of the working capital requirements of JKC to complete the project. As of December 31, 2019, we have made investment contributions to JKC of approximately $484 million on an inception-to-date basis. If we experience unfavorable outcomes associated with the various legal and commercial disputes, our total investment contributions could increase which could have a material adverse effect on our financial position and cash flows. Further, if our joint venture partner(s) in JKC do not fulfill their responsibilities under the JKC JV agreement or subcontract, we could be exposed to additional funding requirements as a result of the nature of the JKC JV agreement. As of December 31, 2019 , we had $164 million in letters of credit outstanding in support of performance and warranty guarantees provided to the client. The performance and warranty letters of credit have been extended to February 2021 to allow for the various disputes to be resolved. Other Matters JKC is entitled to an amount of profit and overhead (“TRC Fee”) which is a fixed percentage of the target reimbursable costs ("TRC") under the reimbursable component of the contract which was to be agreed by JKC and its client. At the time of the contract, JKC and its client agreed to postpone the fixing of the TRC until after a specific milestone in the project had been achieved. Although the milestone was achieved, JKC and its client have been unable to reach agreement on the TRC. This matter was taken to arbitration in 2017. A decision was issued in December 2017 concluding that the TRC should be determined based on project estimate information available at April 2014. JKC has included an estimate for the TRC Fee in its determination of profit at completion at December 31, 2019 , based on the contract provisions and the decision from the December 2017 arbitration. JKC has submitted the revised estimate of the TRC Fee to the client. The parties have not agreed to the revised estimate, and JKC has started an additional arbitration on this dispute. In late 2019, the International Chamber of Commerce consolidated the Funding Deed arbitration, TRC arbitration and certain other claims asserted by JKC along with claims asserted by its client. The client will file a detailed statement of its claim in December 2020. The arbitration panel has been constituted but a hearing date has not been scheduled. A hearing date for the Funding Deed arbitration has been schedule for September 2020. All of the Ichthys LNG project commercial matters are complex and involve multiple interests, including the client, suppliers and other third parties. Ultimate resolution may not occur in the near term. Our current estimates for resolving these matters may prove inaccurate and, if so, any material change could have a material adverse effect on our results of operations, financial position and cash flows. See Note 12 to our consolidated financial statements for further discussion regarding our equity method investment in JKC. |
Claims and Accounts Receivable
Claims and Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Claims and Accounts Receivable | Claims and Accounts Receivable Our claims and accounts receivable balance not expected to be collected within the next 12 months was $59 million and $98 million as of December 31, 2019 and 2018 , respectively. Claims and accounts receivable primarily reflect claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government cost-reimbursable contracts within our GS business segment. These claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order. Included in these amounts is $28 million and $73 million as of December 31, 2019 and 2018 , respectively, related to Form 1s issued by the U.S. government questioning or objecting to costs billed to them. See Note 16 of our consolidated financial statements for additional information. The amount also includes $31 million and $25 million as of December 31, 2019 and 2018 , respectively, related to contracts where our reimbursable costs have exceeded the U.S. government's funded values on the underlying task orders or task orders where the U.S. government has not authorized us to bill. We believe the remaining disputed costs will be resolved in our favor, at which time the U.S. government will be required to obligate funds from appropriations for the year in which resolutions occur. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Land N/A $ 5 $ 5 Buildings and property improvements 1-35 124 122 Equipment and other 1-25 387 349 Total 516 476 Less accumulated depreciation (386 ) (355 ) Net property, plant and equipment $ 130 $ 121 Depreciation expense was $33 million , $31 million , and $27 million for the years ended December 31, 2019 , 2018 , and 2017 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Government Solutions Technology Solutions Energy Solutions Total Balance as of January 1, 2018 $ 679 $ 51 $ 238 $ 968 Goodwill acquired during the period 299 — — 299 Purchase price adjustment 2 — — 2 Foreign currency translation (3 ) — (1 ) (4 ) Balance as of December 31, 2018 $ 977 $ 51 $ 237 $ 1,265 Goodwill acquired during the period $ — $ — $ — Purchase price adjustment — — — — Foreign currency translation 1 (1 ) — — Balance as of December 31, 2019 $ 978 $ 50 $ 237 $ 1,265 Intangible Assets Intangible assets are comprised of customer relationships, trade names, licensing agreements and other. The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 31, 2019 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 16 271 (83 ) 188 Developed technologies 22 68 (36 ) 32 Contract backlog 19 255 (52 ) 203 Other 14 24 (13 ) 11 Total intangible assets $ 679 $ (184 ) $ 495 December 31, 2018 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 272 (69 ) 203 Developed technologies 22 61 (34 ) 27 Contract backlog 20 249 (36 ) 213 Other 14 24 (12 ) 12 Total intangible assets $ 667 $ (151 ) $ 516 Intangibles that are not subject to amortization are reviewed annually for impairment or more often if events or circumstances change that would create a triggering event. Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2019 2018 2017 Intangibles amortization expense $ 33 $ 32 $ 21 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2020 $ 32 2021 $ 28 2022 $ 23 2023 $ 23 2024 $ 23 Beyond 2024 $ 304 |
Equity Method Investments and V
Equity Method Investments and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Variable Interest Entities | Equity Method Investments and Variable Interest Entities We conduct some of our operations through joint ventures, which operate as partnerships, corporations, undivided interests and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are VIEs. The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2019 2018 Beginning balance at January 1, $ 724 $ 365 Cumulative effect of change in accounting policy (a) 29 87 Adjusted balance at January 1, 753 452 Equity in earnings of unconsolidated affiliates 35 79 Distributions of earnings of unconsolidated affiliates (69 ) (75 ) Payments from (advances to) unconsolidated affiliates, net (10 ) (12 ) Investments (b) 146 344 Foreign currency translation adjustments (7 ) (28 ) Other 2 (36 ) Balance at December 31, $ 850 $ 724 (a) At January 1, 2018, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence project joint ventures. At January 1, 2019, we recognized a cumulative effect adjustment of $29 million as a result of the adoption of ASC 606 by our remaining unconsolidated project joint ventures. (b) Investments include $141 million and $344 million in funding contributions to JKC for the years ended December 31, 2019 and 2018, respectively. Equity Method Investments Brown & Root Industrial Services Joint Venture. On September 30, 2015, we executed an agreement with Bernhard Capital Partners ("BCP"), a private equity firm, to establish the Brown & Root Industrial Services joint venture in North America. In connection with the formation of the joint venture, we contributed our Industrial Services Americas business and received cash consideration of $48 million and a 50% interest in the joint venture. As a result of the transaction, we no longer had a controlling interest in this Industrial Services business and deconsolidated it effective September 30, 2015. The Brown & Root Industrial Services joint venture offers engineering, construction and reliability-driven maintenance services for the refinery, petrochemical, chemical, specialty chemicals and fertilizer markets. Our interest in this venture is accounted for using the equity method and we have determined that the Brown & Root Industrial Services joint venture is not a VIE. Results from this joint venture are included in our ES 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 2019 2018 Current assets $ 3,072 $ 3,526 Noncurrent assets 3,219 3,121 Total assets $ 6,291 $ 6,647 Current liabilities $ 949 $ 1,277 Noncurrent liabilities 2,922 3,212 Total liabilities $ 3,871 $ 4,489 Statements of Operations Years ended December 31, Dollars in millions 2019 2018 2017 Revenues $ 2,592 $ 3,190 $ 5,781 Operating income $ 92 $ 197 $ 278 Net income $ 48 $ 173 $ 145 Unconsolidated Variable Interest Entities For the VIEs in which we participate, our maximum exposure to loss consists of our equity investment in the VIE and any amounts owed to us for services we may have provided to the VIE, reduced by any unearned revenues on the project. Our maximum exposure to loss may also include our obligation to fund our proportionate share of any future losses incurred. As of December 31, 2019 , we do not project any losses related to these joint venture projects. Where our performance and financial obligations are joint and several to the client with our joint venture partners, we may be further exposed to losses above our ownership interest in the joint venture. The following summarizes the total assets and total liabilities as reflected in our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 31, 2019 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 14 $ 10 Aspire Defence Limited $ 67 $ 5 JKC joint venture (Ichthys LNG project) $ 546 $ 29 U.K. Road project joint ventures $ 40 $ 21 Middle East Petroleum Corporation (EBIC Ammonia project) $ 47 $ 1 Dollars in millions December 31, 2018 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 16 $ 8 Aspire Defence Limited $ 68 $ 5 JKC joint venture (Ichthys LNG project) $ 427 $ 32 U.K. Road project joint ventures $ 37 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 51 $ 1 Affinity. In February 2016, Affinity, a joint venture between KBR and Elbit Systems, was awarded a service contract by a third party to procure, operate and maintain aircraft and aircraft-related assets over an 18 -year contract period, in support of the UKMFTS project. The contract has been determined to contain a leasing arrangement and various other services between the joint venture and the customer. KBR owns a 50% interest in Affinity. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provide procurement, operations and management support services under subcontracts with Affinity. The remaining 50% interest in these entities is held by Elbit Systems. KBR has provided its proportionate share of certain limited financial and performance guarantees in support of the partners' contractual obligations. The three project-related entities are VIEs; however, KBR is not the primary beneficiary of any of these entities. We account for KBR's interests in each entity using the equity method of accounting within our GS business segment. The project is funded through KBR and Elbit Systems provided equity, subordinated debt and non-recourse third party commercial bank debt. Our maximum exposure to loss includes our equity investments in the project entities as of December 31, 2019 . Aspire Defence project. In April 2006, Aspire Defence Limited, a joint venture between KBR and two other project sponsors, was awarded a privately financed project contract by the U.K. MoD to upgrade and provide a range of services to the British Army’s garrisons at Aldershot and around Salisbury Plain in the U.K. In addition to a package of ongoing services to be delivered over 35 years , the project included a nine -year construction program to improve soldiers’ single living, technical and administrative accommodations, along with leisure and recreational facilities. The initial construction program was completed in 2014. In late 2016, Aspire Defence Limited was awarded a significant contract variation, expanding services to be provided under the existing contract including new construction, program management services and facilities maintenance across the garrisons. Aspire Defence Limited manages the existing properties and is responsible for design, refurbishment, construction and integration of new and modernized facilities. We indirectly own a 45% interest in Aspire Defence Limited, the contracting company that is the holder of the 35 -year concession contract. The project is funded through equity and subordinated debt provided by the project sponsors and the issuance of publicly-held senior bonds which are nonrecourse to KBR and the other project sponsors. The contracting company is a VIE; however, we are not the primary beneficiary of this entity as of December 31, 2018. We account for our interest in Aspire Defence Limited using the equity method of accounting. As of December 31, 2019 , included in our GS segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $67 million and $5 million , respectively. Our maximum exposure to loss includes our equity investments in the project entities and amounts payable to us for services provided to these entities as of December 31, 2019 . Prior to January 15, 2018, we also owned a 50% interest in the joint ventures that provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. On January 15, 2018, Carillion plc, our U.K. partner in these joint ventures, entered into compulsory liquidation. As a result, KBR began consolidating the subcontracting entities in its financial statements effective January 15, 2018. See Note 4 to our consolidated financial statements for further discussion. Ichthys LNG project. In January 2012, we formed a joint venture to provide EPC services to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia ("Ichthys LNG project"). The project is being executed through two entities (collectively, "JKC"), which are VIEs, in which we own a 30% equity interest. We account for our investments using the equity method of accounting. At December 31, 2019 , our assets and liabilities associated with our investment in JKC recorded in our consolidated balance sheets under our ES business segment were $546 million and $29 million , respectively. These assets include expected cost recoveries from unapproved change orders and claims against the client as well as estimated recoveries of claims against suppliers and subcontractors arising from issues related to changes to the work scope, delays and lower than planned subcontractor activity. See Note 8 to our consolidated financial statements for further discussion on the significant contingencies as well as unapproved change orders and claims related to this project. U.K. Road projects. We are involved in four privately financed projects, executed through joint ventures, to design, build, operate and maintain roadways for certain government agencies in the U.K. We have a 25% ownership interest in each of these joint ventures and account for them using the equity method of accounting. The joint ventures have obtained financing through third parties that is nonrecourse to the joint venture partners. These joint ventures are VIEs; however, we are not the primary beneficiary. At December 31, 2019 , included in our GS business segment, our assets and liabilities associated with our investment in this project recorded in our consolidated balance sheets were $40 million and $21 million , respectively. Our maximum exposure to loss includes our equity investments in these ventures. EBIC Ammonia project. We have an investment in a development corporation that has an indirect interest in the Egypt Basic Industries Corporation ("EBIC") ammonia plant project located in Egypt. We performed the EPC work for the project and completed our operations and maintenance services for the facility in the first half of 2012. We own 65% of this development corporation and consolidate it for financial reporting purposes. The development corporation owns a 25% ownership interest in a company that consolidates the ammonia plant which is considered a VIE. The development corporation accounts for its investment in the company using the equity method of accounting. The VIE is funded through debt and equity. Indebtedness of EBIC under its debt agreement is nonrecourse to us. We are not the primary beneficiary of the VIE. As of December 31, 2019 , included in our ES business segment, our assets and liabilities associated with our investment in this project, within our consolidated balance sheets, were $47 million and $1 million , respectively. Our maximum exposure to loss includes our proportionate share of the equity investment and amounts payable to us for services provided to the entity as of December 31, 2019 . Related Party Transactions We often provide engineering, construction management and other subcontractor services to our joint ventures and our revenues include amounts related to these services. For the years ended December 31, 2019 , 2018 and 2017 , our revenues included $684 million , $721 million and $133 million , respectively, related to services we provided to our joint ventures, primarily the the Aspire Defence Limited joint venture within our GS business segment. Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2019 and 2018 are as follows: December 31, Dollars in millions 2019 2018 Accounts receivable, net of allowance for doubtful accounts $ 49 $ 43 Contract assets (a) $ 2 $ 1 Contract liabilities (a) $ 33 $ 38 Accounts payable $ — $ 2 (a) Reflects contract assets and contract liabilities primarily related to joint ventures within our ES business segment. Consolidated Variable Interest Entities We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 31, 2019 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ 17 Fasttrax Limited (Fasttrax project) $ 45 $ 24 Aspire Defence subcontracting entities (Aspire Defence project) $ 530 $ 283 Dollars in millions December 31, 2018 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 13 $ 19 Fasttrax Limited (Fasttrax project) $ 49 $ 34 Aspire Defence subcontracting entities (Aspire Defence project) $ 589 $ 324 Gorgon LNG project. We have a 30% ownership in an Australian joint venture which was awarded a contract in 2005 for front end engineering design and in 2009 for EPC management services to construct an LNG plant. The joint venture is considered a VIE, and, because we are the primary beneficiary, we consolidate this joint venture for financial reporting purposes. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. The Gorgon LNG project execution activities were completed and only commercial closeout activities remain as of December 31, 2019. Fasttrax Limited project. In December 2001, the Fasttrax joint venture ("Fasttrax") was created to provide to the U.K. MoD a fleet of 91 new HETs capable of carrying a 72-ton Challenger II tank. Fasttrax owns, operates and maintains the HET fleet and provides heavy equipment transportation services to the British Army. The purchase of the assets was completed in 2004, and the operating and service contracts related to the assets extend through 2023. Fasttrax's entity structure includes a parent entity and its 100% owned subsidiary, Fasttrax Limited. KBR and its partner each own a 50% interest in the parent entity, which is considered a VIE. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Therefore, we consolidate this VIE. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan. Assets collateralizing Fasttrax’s senior bonds include cash and equivalents of $18 million and net property, plant and equipment of approximately $23 million as of December 31, 2019 . See Note 14 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, 2019 . Aspire Defence project (subcontracting entities). As discussed above and in Note 4 to our consolidated financial statements, we assumed operational management of the Aspire Defence subcontracting entities in January 2018. These subcontracting entities provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. These entities are considered VIEs, and, because we are the primary beneficiary, they are consolidated for financial reporting purposes. Acquisition of Noncontrolling Interest In April 2018, we entered into an agreement to acquire the noncontrolling interests in the Aspire Defence subcontracting entities from our partner. See Note 4 to our consolidated financial statements for discussion of this transaction. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Contribution Retirement Plans We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $63 million in 2019 , $56 million in 2018 and $52 million in 2017 . Defined Benefit Pension Plans We have two frozen defined benefit pension plans in the U.S., one frozen plan in the U.K., and one frozen plan in Germany. Substantially all of our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of years of service or compensation. We used a December 31 measurement date for all plans in 2019 and 2018 . Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2019 2018 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 71 $ 1,751 $ 77 $ 2,046 Acquisitions — — — 24 Service cost — 2 — 2 Interest cost 3 50 2 50 Foreign currency exchange rate changes — 46 — (114 ) Actuarial (gain) loss 7 214 (4 ) (184 ) Other — (1 ) — — Plan amendments — — — 20 Benefits paid (5 ) (74 ) (4 ) (93 ) Projected benefit obligations at end of period $ 76 $ 1,988 $ 71 $ 1,751 Change in plan assets: Fair value of plan assets at beginning of period $ 54 $ 1,518 $ 59 $ 1,673 Acquisitions — — — 24 Actual return on plan assets 10 200 (3 ) (28 ) Employer contributions 2 43 2 39 Foreign currency exchange rate changes — 41 — (96 ) Benefits paid (5 ) (74 ) (4 ) (93 ) Other (1 ) (1 ) — (1 ) Fair value of plan assets at end of period $ 60 $ 1,727 $ 54 $ 1,518 Funded status $ (16 ) $ (261 ) $ (17 ) $ (233 ) In October 2018, a U.K. High Court issued a ruling requiring U.K. defined benefit pension plans to provide equal pension benefits to males and females for guaranteed minimum pensions where plan participants accrued benefits during the period from May 1990 to April 1997. We have accounted for the change in law as a retroactive plan amendment resulting in a $20 million increase to prior service cost in "Other comprehensive income" for the year ended December 31, 2018 and a $20 million increase to the projected benefit obligation of our U.K. pension plan as of December 31, 2018. The prior service cost will be amortized out of AOCL as a component of net periodic benefit cost over the remaining life expectancy of the plan participants. The Accumulated Benefit Obligation ("ABO") is the present value of benefits earned to date. The ABO for our United States pension plans was $76 million and $71 million as of December 31, 2019 and 2018 , respectively. The ABO for our international pension plans was $2.0 billion and $1.8 billion as of December 31, 2019 and 2018 , respectively. United States Int’l United States Int’l Dollars in millions 2019 2018 Amounts recognized on the consolidated balance sheets Pension obligations $ (16 ) $ (261 ) $ 17 $ 233 Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2019 2018 2017 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 1 Interest cost 3 50 2 50 3 53 Expected return on plan assets (3 ) (77 ) (3 ) (80 ) (3 ) (77 ) Prior service cost amortization — 1 — — — — Recognized actuarial loss 2 16 2 26 1 30 Net periodic benefit cost $ 2 $ (8 ) $ 1 $ (2 ) $ 1 $ 7 The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2019 and 2018 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2019 2018 Unrecognized actuarial loss, net of tax of $9 and $215, $10 and $203, respectively $ 22 $ 632 $ 23 $ 569 Total in accumulated other comprehensive loss $ 22 $ 632 $ 23 $ 569 Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2020 are as follows: Dollars in millions United States Int’l Actuarial loss $ 1 $ 19 Total $ 1 $ 19 Weighted-average assumptions used to determine net periodic benefit cost United States Int'l United States Int'l United States Int'l 2019 2018 2017 Discount rate 3.98 % 2.90 % 3.33 % 2.50 % 3.73 % 2.60 % Expected return on plan assets 6.09 % 5.09 % 6.01 % 5.20 % 6.01 % 5.40 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2019 2018 Discount rate 2.89 % 2.05 % 3.98 % 2.90 % Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have diversified asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range. The target asset allocation for our U.S. and International plans for 2020 is as follows: Asset Allocation 2020 Targeted United States Int'l Equity funds and securities 51 % 22 % Fixed income funds and securities 39 % 54 % Hedge funds — % 7 % Real estate funds 1 % 3 % Other 9 % 14 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2020 and 2019 , by asset class, are as follows: International Plans 2020 Targeted 2019 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 50 % 1 % 60 % Fixed income funds and securities 35 % 100 % — % 99 % Hedge funds — % 22 % — % 34 % Real estate funds — % 20 % — % 10 % Other — % 42 % — % 20 % The range of targeted asset allocations for our U.S. plans for 2020 and 2019 , by asset class, are as follows: Domestic Plans 2020 Targeted 2019 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 68 % 50 % 53 % Fixed income funds and securities 31 % 47 % 37 % 40 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 9 % 9 % ASC 820 - Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a description of the primary valuation methodologies and classification used for assets measured at fair value. Fair values of our Level 1 assets are based on observable inputs such as unadjusted quoted prices for identical assets in active markets. These consist of securities valued at the closing price reported on the active market on which the individual securities are traded. Fair values of our Level 2 assets are based on inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices for similar assets; quoted prices that are in inactive markets; inputs other than quoted prices that are observable for the asset; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Fair values of our Level 3 assets are based on unobservable inputs in which there is little or no market data and require us to develop our own assumptions. A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2019 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Cash and equivalents 1 1 — — Total United States plan assets $ 60 $ 1 $ — $ — International plan assets Equities $ 103 $ — $ — $ 103 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 2 2 — — Other 87 44 — 43 Investments measured at net asset value (a) 1,532 — — — Total international plan assets $ 1,727 $ 46 $ — $ 149 Total plan assets at December 31, 2019 $ 1,787 $ 47 $ — $ 149 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2018 United States plan assets Investments measured at net asset value (a) $ 54 $ — $ — $ — Total United States plan assets $ 54 $ — $ — $ — International plan assets Equities $ 84 $ — $ — $ 84 Fixed income 2 — — 2 Real estate 1 — — 1 Cash and cash equivalents 8 8 — — Other 74 35 — 39 Investments measured at net asset value (a) 1,349 — — — Total international plan assets $ 1,518 $ 43 $ — $ 126 Total plan assets at December 31, 2018 $ 1,572 $ 43 $ — $ 126 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2017 $ 74 $ 26 $ 5 $ 3 $ 40 Return on assets held at end of year (3 ) 1 — (1 ) (3 ) Return on assets sold during the year 8 — — 1 7 Purchases, sales and settlements 39 11 (3 ) (2 ) 33 Transfers 13 48 — — (35 ) Foreign exchange impact (5 ) (2 ) — — (3 ) Balance as of December 31, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 Return on assets held at end of year 8 10 — — (2 ) Return on assets sold during the year 1 — — 1 — Purchases, sales and settlements, net 11 7 (1 ) — 5 Transfers — — — 48,000,000 — 48 — Foreign exchange impact 3 2 — — 1 Balance as of December 31, 2019 $ 149 $ 103 $ 1 $ 2 $ 43 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 $47 million to our pension plans in 2020 . Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2020 $ 5 $ 57 2021 $ 5 $ 59 2022 $ 5 $ 60 2023 $ 5 $ 61 2024 $ 5 $ 63 Years 2025 - 2029 $ 24 $ 333 Multiemployer Pension Plans We participate in multiemployer plans in Canada. Generally, the plans provide defined benefits to substantially all employees covered by collective bargain agreements. Under the terms of these agreements, our obligations are discharged upon plan contributions and are not subject to any assessments for unfunded liabilities upon our termination or withdrawal. Our aggregate contributions to these plans were immaterial in 2019 and 2018 , and $3 million in 2017 . At December 31, 2019 , none of the plans in which we participate is individually significant to our consolidated financial statements. Deferred Compensation Plans Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. The elective deferral plan is unfunded except for $10 million and $8 million of mutual funds designated for a portion of our employee deferral plan included in "Other assets" on our consolidated balance sheets at December 31, 2019 and 2018 , respectively. The mutual funds are measured at fair value using Level 1 inputs under ASC 820 and may be liquidated in the near term without restrictions. Our obligations under our employee deferred compensation plan were $65 million and $67 million as of December 31, 2019 and 2018 , respectively, and are included in "Employee compensation and benefits" in our consolidated balance sheets. |
Debt and Other Credit Facilitie
Debt and Other Credit Facilities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Other Credit Facilities | Debt and Other Credit Facilities Our outstanding debt consisted of the following at the dates indicated: Dollars in millions December 31, 2019 December 31, 2018 Term Loan A 176 190 Term Loan B 756 796 Convertible Notes 350 350 Unamortized debt issuance costs - Term Loan A (4 ) (5 ) Unamortized debt issuance costs and discount - Term Loan B (15 ) (18 ) Unamortized debt issuance costs and discount - Convertible Notes (53 ) (65 ) Total long-term debt 1,210 1,248 Less: current portion 27 22 Total long-term debt, net of current portion $ 1,183 $ 1,226 Senior Credit Facility The senior secured credit facility ("Senior Credit Facility") consists of a $500 million revolving credit facility ("Revolver"), a $500 million PLOC, a $350 million Delayed Draw Term Loan A, ("Term Loan A") and an $800 million Term Loan B ("Term Loan B"). The Revolver, PLOC and Term Loan A mature in April 2023 and the Term Loan B matures in April 2025. Additional borrowings are no longer available under the Term Loan A. Borrowings under the Term Loan A were used to fund investment contributions in JKC. See Note 8 to our consolidated financial statements for a discussion on JKC. The interest rates with respect to the Revolver and Term Loan A are based on, at the Company's option, adjusted LIBOR plus an additional margin or base rate plus additional margin. The interest rate with respect to the Term Loan B is LIBOR plus 3.75% . The Senior Credit Facility provides for fees on letters of credit issued under the PLOC at varying rates, as shown below. Additionally, there is a commitment fee with respect to the Revolver, PLOC and Term Loan A. The details of the applicable margins and commitment fees are based on the Company's consolidated leverage ratio as follows: Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Performance Letter of Credit Fee Commitment Fee Greater than or equal to 4.00 to 1.00 3.25 % 2.25 % 1.95 % 0.450 % Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 3.00 % 2.00 % 1.80 % 0.400 % Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 2.75 % 1.75 % 1.65 % 0.375 % Less than 2.00 to 1.00 2.50 % 1.50 % 1.50 % 0.350 % The Term Loan A provides for quarterly principal payments of 2.50% of the aggregate principal amount commencing with the fiscal quarter ending June 30, 2019. The Term Loan B provides for quarterly principal payments of 0.25% of the initial aggregate principal amounts commencing with the fiscal quarter ending September 30, 2018. The Senior Credit Facility contains financial maintenance covenants of a maximum consolidated leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Senior Credit Facility). Our consolidated leverage ratio as of the last day of any fiscal quarter may not exceed 4.50 to 1 and reducing gradually during 2019 and 2020 to 3.50 to 1. Our consolidated interest coverage ratio as of the last day of any fiscal quarter, commencing with the fiscal quarter ending June 30, 2018 and thereafter, may not be less than 3.00 to 1. As of December 31, 2019 , we were in compliance with our financial covenants. On February 7, 2020, we amended our Senior Credit Facility to, among other things, reduce the applicable margins and commitment fees associated with the various borrowings under the facility. Simultaneous with the amendment, we used proceeds from the new facility to refinance our outstanding borrowings resulting in an amended Senior Credit Facility that is comprised of a $500 million Revolver, a $500 million PLOC, a $275 million Term Loan A and a $520 million Term Loan B. In addition, the amendment extended the maturity dates with respect to the Revolver and the Term Loan A to February 7, 2025 and Term Loan B to February 7, 2027, and amended certain other provisions including the financial covenants. Convertible Senior Notes Convertible Senior Notes. On November 15, 2018 , we issued and sold $350 million of 2.50% Convertible Senior Notes due 2023 (the "Convertible Notes") pursuant to an indenture (the "Indenture") between us and Citibank, N.A., as trustee (the "Trustee"). The Convertible Notes are senior unsecured obligations. The Convertible Notes bear interest at 2.50% per year and interest is payable on May 1 and November 1 of each year. The Convertible Notes mature on November 1, 2023 and may not be redeemed by us prior to maturity. The Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent and policy to settle the principal balance of the Convertible Notes in cash and any excess value upon conversion in shares of our common stock. The initial conversion price of the Convertible Notes is approximately $25.51 (subject to adjustment in certain circumstances), based on the initial conversion rate of 39.1961 Common Shares per $1,000 principal amount of Convertible Notes. Prior to May 1, 2023, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. As of December 31, 2019 , the "if-converted" value of the Convertible Notes exceeded the $350 million principal amount by approximately $68 million . Accounting standards require that convertible debt which may be settled in cash upon conversion (including partial cash settlement) be accounted for with a liability component based on the fair value of similar nonconvertible debt and an equity component based on the excess of the initial proceeds from the convertible debt over the liability component. The difference between the principal amount of the notes and the carrying amount represents a debt discount, which is amortized as additional non-cash interest expense over the term of the Convertible Notes. The equity component represents proceeds related to the conversion option and is recorded as additional paid-in capital. The equity component is determined at issuance and is not remeasured as long as it continues to meet the conditions for equity classification. The net carrying value of the equity component related to the Convertible Notes was $57 million as of December 31, 2019 and 2018 . The amount of interest cost recognized relating to the contractual interest coupon was $9 million and $1 million for the years ended December 31, 2019 and 2018 , respectively, and relating to the amortization of the discount and debt issuance costs was $12 million and $1 million for the years ended December 31, 2019 and 2018 , respectively. The effective interest rate on the liability component was 6.50% for the years ended December 31, 2019 and 2018 . Convertible Notes Call Spread Overlay - Concurrent with the issuance of the Convertible Notes, we entered into privately negotiated convertible note hedge transactions (the "Note Hedge Transactions") and warrant transactions (the "Warrant Transactions") with the option counterparties. These transactions represent a Call Spread Overlay, whereby the cost of the Note Hedge Transactions we purchased to cover the cash outlay upon conversion of the Convertible Notes was reduced by the sales price of the Warrant Transactions. Each of these transactions is described below. The Note Hedge Transactions cost an aggregate $62 million and are expected generally to reduce the potential dilution of common stock and/or offset the cash payments we are required to make in excess of the principal amount upon conversion of the Convertible Notes in the event that the market price of our common stock is greater than the strike price of the Note Hedge Transactions, which is initially $25.51 (subject to adjustment), corresponding approximately to the initial conversion price of the Convertible Notes. The Note Hedge Transactions were accounted for by recording the cost as a reduction to "Additional paid-in capital" based on the Note Hedge meeting certain scope exceptions provided under ASC Topic 815. We received proceeds of $22 million for the Warrant Transactions, in which we sold net-share-settled warrants to the option counterparties in an amount equal to the number of shares of our common stock initially underlying the Convertible Notes, subject to customary anti-dilution adjustments. The strike price of the warrants is $40.02 per share (subject to adjustment), which is 31% above the last reported sale price of our common stock on the New York Stock Exchange on December 31, 2019 . The Warrant Transactions could have a dilutive effect to our stockholders to the extent the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Warrant Transactions have been accounted for by recording the proceeds received as "Additional paid-in capital". The Note Hedge Transactions and the Warrant Transactions are separate transactions, in each case entered into by us with the option counterparties, and are not part of the terms of the Convertible Notes and will not affect any holder's rights under the Convertible Notes. Letters of credit, surety bonds and guarantees In the ordinary course of business, we may enter into various arrangements providing financial or performance assurance to customers on behalf of certain consolidated and unconsolidated subsidiaries, joint ventures and other jointly executed contracts. Such off-balance sheet arrangements include letters of credit, surety bonds and corporate guarantees to support the creditworthiness or project execution commitments of these entities and typically have various expirations dates ranging from mechanical completion of the project being constructed to a period beyond completion in certain circumstances such as for warranties. We have $1 billion in a committed line of credit under our Senior Credit Facility, comprised of the $500 million Revolver and $500 million PLOC. Additionally, we have approximately $368 million of uncommitted lines of credit to support the issuance of letters of credit. Surety bonds are also posted under the terms of certain contracts to guarantee our performance. As of December 31, 2019 , with respect to our $500 million Revolver, we have no outstanding revolver borrowings and have issued $26 million of letters of credit. With respect to our PLOC, we have $100 million of outstanding letters of credit. With respect to our $368 million of uncommitted lines of credit, we have utilized $199 million for letters of credit as of December 31, 2019 . The total remaining capacity of these committed and uncommitted lines of credit is approximately $1.0 billion . Of the letters of credit outstanding under our Senior Credit Facility, none have expiry dates beyond the maturity date of the Senior Credit Facility. Of the total letters of credit outstanding, $170 million relate to our joint venture operations where the letters of credit are posted using our capacity to support our pro-rata share of obligations under various contracts executed by joint ventures of which we are a member. We may also guarantee that a project, once completed, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential amount of future payments that we could be required to make under an outstanding performance arrangement is typically the remaining estimated cost of work to be performed by or on behalf of third parties. Amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress are not estimable. For cost reimbursable contract, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete the project. If costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, subcontractors or vendors for claims. In our joint venture arrangements, the liability of each partner is usually joint and several. This means that each joint venture partner may become liable for the entire risk of performance guarantees provided by each partner to the customer. Typically each joint venture partner indemnifies the other partners for any liabilities incurred in excess of the liabilities the other party is obligated to bear under the respective joint venture agreement. We are unable to estimate the maximum potential amount of future payments that we could be required to make under outstanding performance guarantees related to joint venture projects due to a number of factors, including but not limited to, the nature and extent of any contractual defaults by our joint venture partners, resource availability, potential performance delays caused by the defaults, the location of the projects, and the terms of the related contracts. Nonrecourse Project Debt Fasttrax Limited, a consolidated joint venture in which we indirectly own a 50% equity interest with an unrelated partner, was awarded a concession contract in 2001 with the U.K. MoD to provide a Heavy Equipment Transporter Service to the British Army. Fasttrax Limited operates and maintains 91 heavy equipment transporters HETs for a term of 22 years. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and subordinated debt from the joint venture partners. The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The secured bonds were issued in two classes consisting of Class A 3.5% Index Linked Bonds in the amount of £56 million and Class B 5.9% Fixed Rate Bonds in the amount of £20.7 million . Semi-annual payments on both classes of bonds will continue through maturity in 2021. The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16.00% over the term of the notes until maturity in 2025. For financial reporting purposes, only our partner's portion of the subordinated notes appears in the consolidated financial statements. The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2019 : Dollars in millions Payments Due 2020 $ 11 2021 $ 5 2022 $ 1 2023 $ 1 2024 $ — Beyond 2024 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 United States $ 2 $ 44 $ 84 Foreign: United Kingdom 105 203 40 Australia 15 7 (30 ) Canada 3 (2 ) 15 Middle East 87 61 42 Africa 5 13 20 Other 51 70 76 Subtotal 266 352 163 Total $ 268 $ 396 $ 247 The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 (Provision) Benefit for income taxes $ (59 ) $ (86 ) $ 193 Shareholders' equity, foreign currency translation adjustment 1 (2 ) 6 Shareholders' equity, pension and post-retirement benefits 11 (14 ) (27 ) Shareholders' equity, changes in fair value of derivatives 2 3 — Total income taxes $ (45 ) $ (99 ) $ 172 The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year-ended December 31, 2019 Federal $ (4 ) $ 15 $ 11 Foreign (67 ) 1 (66 ) State and other (2 ) (2 ) (4 ) (Provision) benefit for income taxes $ (73 ) $ 14 $ (59 ) Year-ended December 31, 2018 Federal $ (1 ) $ (6 ) $ (7 ) Foreign (56 ) (20 ) (76 ) State and other (2 ) (1 ) (3 ) Provision for income taxes $ (59 ) $ (27 ) $ (86 ) Year-ended December 31, 2017 Federal $ (6 ) $ 230 $ 224 Foreign (122 ) 92 (30 ) State and other (2 ) 1 (1 ) (Provision) benefit for income taxes $ (130 ) $ 323 $ 193 The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 United Kingdom $ (19 ) $ (32 ) $ (7 ) Australia (6 ) (8 ) 6 Canada (1 ) (6 ) — Middle East (20 ) (16 ) (10 ) Africa (1 ) (1 ) 1 Other (19 ) (13 ) (20 ) Foreign provision for income taxes $ (66 ) $ (76 ) $ (30 ) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% for 2019 and 2018 and the statutory rate of 35% for 2017 as a result of the following: Years ended December 31, 2019 2018 2017 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 35 % Increase (reduction) in tax rate from: Tax impact from foreign operations 7 — (5 ) Noncontrolling interests and equity earnings — (1 ) (2 ) State and local income taxes, net of federal benefit 2 1 1 Other permanent differences, net 3 — (8 ) Contingent liability accrual 1 3 (2 ) U.S. taxes on foreign unremitted earnings 3 — — Change in valuation allowance (10 ) (2 ) (90 ) Research and development credits, net of provision (5 ) — — U.S. tax reform — — (7 ) Effective tax rate on income from operations 22 % 22 % (78 )% The primary components of our deferred tax assets and liabilities were as follows: Years ended December 31, Dollars in millions 2019 2018 Deferred tax assets: Employee compensation and benefits $ 103 $ 95 Foreign tax credit carryforwards 257 267 Loss carryforwards 96 103 Insurance accruals 7 9 Allowance for bad debt 2 2 Accrued liabilities 63 23 Construction contract accounting — — Other 4 3 Total gross deferred tax assets 532 502 Valuation allowances (200 ) (207 ) Net deferred tax assets 332 295 Deferred tax liabilities: Construction contract accounting (6 ) (1 ) Intangible amortization (56 ) (57 ) Indefinite-lived intangible amortization (49 ) (41 ) Fixed asset depreciation 2 1 Accrued foreign tax credit carryforwards (3 ) (2 ) Total gross deferred tax liabilities (112 ) (100 ) Deferred income tax (liabilities) assets, net $ 220 $ 195 The valuation allowance for deferred tax assets was $200 million and $207 million at December 31, 2019 and 2018 , respectively. The net change in the total valuation allowance was a decrease of $7 million in 2019 and a decrease of $10 million in 2018 . Both years saw the benefit of a decrease in our valuation allowance associated with the ability to utilize foreign tax credits partially offset by an increase in the valuation allowance associated with our state net operating losses. The valuation allowance at December 31, 2019 was primarily related to foreign tax credit carryforwards and foreign and state net operating loss carryforwards that, in the judgment of management, are not more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. In the fourth quarter of 2017, we achieved twelve quarters of cumulative U.S. taxable income which is inclusive of income generated in various countries within branches of our U.S. subsidiaries. Income (loss) related to the U.S. branches totaled $90 million , $96 million and $163 million for the fiscal years 2019 , 2018 , and 2017 , respectively, and is included in the foreign component of income in the notes to the financial statements in our Form 10-K. We weighted this positive evidence heavily in our analysis to overcome the previously existing negative evidence of our twelve quarter cumulative loss position. We concluded that future taxable income and the reversal of deferred tax liabilities, excluding those associated with indefinite-lived intangible assets, were the only sources of taxable income available in determining the amount of valuation allowance to be recorded against our deferred tax assets. The deferred tax liabilities we relied on are projected to reverse in the same jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The deferred tax liabilities are projected to reverse in the same periods as the deferred tax assets and are projected to reverse beginning in fiscal year 2020 through fiscal year 2029. We estimated future taxable income by jurisdiction exclusive of reversing temporary differences and carryforwards and applied our foreign tax credit carryforwards based on the sourcing and character of those estimates and considered any limitations. As a result of these analyses and considerations, we reversed approximately $223 million of our valuation allowance on U.S. deferred tax assets as of December 31, 2017, $152 million of which related to foreign tax credit carryforwards, and $71 million of which related to other net deferred tax assets. We did not release all of the valuation allowance as of December 31, 2017 because certain foreign tax credit carry forwards are projected to expire unused. During the year ended December 31, 2018, we further refined our provisional estimates related to the Deemed Repatriation Transition Tax, as well as the impact of additional guidance related to the Tax Act and our estimates of future taxable income. As a result, we further reduced our valuation allowance for U.S. deferred tax assets by $17 million primarily related to foreign tax credit carryforwards. Our ability to utilize the unreserved foreign tax credit carryforwards is based on our ability to generate income from foreign sources of at least $824 million prior to their expiration whereas our ability to utilize other net deferred tax assets exclusive of those associated with indefinite-lived intangible assets is based on our ability to generate U.S. forecasted taxable income of at least $432 million . While our current projections of taxable income exceed these amounts, changes in our forecasted taxable income in the applicable taxing jurisdictions within the carryforward periods could affect the ultimate realization of deferred tax assets and our valuation allowance. The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2019 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 370 $ (156 ) $ 214 United Kingdom (6 ) — (6 ) Australia 12 — 12 Canada 23 (22 ) 1 Other 21 (22 ) (1 ) Total $ 420 $ (200 ) $ 220 At December 31, 2019 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2019 Expiration Foreign tax credit carryforwards $ 257 2020-2029 Foreign net operating loss carryforwards $ 150 2020-2039 Foreign net operating loss carryforwards $ 34 Indefinite State net operating loss carryforwards $ 1,024 Various As a result of the enactment of the U.S. Tax Act, substantially all of our previously untaxed accumulated and current E&P of certain of our foreign subsidiaries were subject to U.S. tax. Repatriations of these foreign earnings will not be subject to additional U.S. tax but may incur withholding and/or state taxes. Although we have provided for taxes on our previously untaxed accumulated and current E&P of certain of our foreign subsidiaries pursuant to the Tax Act, we consider our future U.S. and non-U.S. cash needs such as 1) our anticipated foreign working capital requirements, including funding of our U.K. pension plan, 2) the expected growth opportunities across all geographical markets and 3) our plans to invest in strategic growth opportunities that may include acquisitions around the world. As of December 31, 2019 , the cumulative amount of permanently reinvested foreign earnings is $2.3 billion . With the enactment of the Tax Act, these previously unremitted earnings have now been subject to U.S. tax. However, these undistributed earnings could be subject to additional taxes (withholding and/or state taxes) if remitted, or deemed remitted, as a dividend. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2019 2018 2017 Balance at January 1, $ 90 $ 184 $ 261 Increases related to current year tax positions 2 1 2 Increases related to prior year tax positions 7 18 1 Decreases related to prior year tax positions — (45 ) (1 ) Settlements — (62 ) (80 ) Lapse of statute of limitations (1 ) (2 ) (1 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (1 ) (4 ) 2 Balance at December 31, $ 97 $ 90 $ 184 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $83 million as of December 31, 2019 . The difference between this amount and the amounts reflected in the tabular reconciliation above relates primarily to deferred income tax benefits on uncertain tax positions. In the next twelve months, it is reasonably possible that our uncertain tax positions could change by approximately $35 million due to settlements with tax authorities and the expirations of statutes of limitations. We recognize accrued interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. Our accrual for interest and penalties was $23 million and $19 million as of December 31, 2019 and 2018 , respectively. During the years ended December 31, 2019 and 2017 , we recognized net interest and penalty charges of $3 million , and $5 million , respectively, while for the year ended December 31, 2018 , we recognized a net interest and penalty benefit of $1 million related to uncertain tax positions. KBR is the parent of a group of domestic companies that are members of a U.S. consolidated federal income tax return. We also file income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to examination by tax authorities for U.S. federal or state and local income tax for years before 2007. KBR is subject to a tax sharing agreement primarily covering periods prior to the April 2007 separation from Halliburton. The tax sharing agreement provides, in part, that KBR will be responsible for any audit settlements directly attributable to our business activity for periods prior to our separation from our former parent. As of December 31, 2019 and 2018 , we have recorded $5 million in "Other liabilities" on our consolidated balance sheets, respectively, for tax related items under the tax sharing agreement. The balance is not due until receipt by KBR of a future foreign tax credit refund claim filed with the IRS. |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 31, 2019 | |
United States Government Contract Work [Abstract] | |
U.S. Government Matters | U.S. Government Matters We provide services to various U.S. governmental agencies, including the U.S. DoD, NASA, and the Department of State. We may have disagreements or experience performance issues on our U.S. government contracts. When performance issues arise under any of these contracts, the U.S. government retains the right to pursue various remedies, including challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government. The negotiation, administration and settlement of our contracts are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA which is responsible for the administration of the majority of our contracts. The scope of these audits include, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and CAS, compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. Based on the information received to date, we do not believe the completed or any ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. Legacy U.S. Government Matters Between 2002 and 2011, we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We have been in the process of closing out the LogCAP III contract since 2011, and we expect the contract closeout process to continue for at least another year. As a result of our work under LogCAP III, there are claims and disputes pending between us and the U.S. government which need to be resolved in order to close the contract. The contract closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and MFRs. We continue to work with the U.S. government to resolve these issues and are engaged in efforts to reach mutually acceptable resolution of these outstanding matters. However, for certain of these matters, we have filed claims with the ASBCA or the COFC. We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor, vendor resolution and litigation costs as we resolve the open matters in the future. Form 1s The U.S. government has issued and has outstanding Form 1s questioning $80 million of billed costs as of December 31, 2019 . They had previously paid us $52 million of the questioned costs related to our services on the LogCAP III contract. The remaining balance of $28 million as of December 31, 2019 is included on our consolidated balance sheets in “Claims and accounts receivable." In addition, we have withheld $26 million from our subcontractors at December 31, 2019 related to these questioned costs, which is included in "Other current liabilities" on our consolidated balance sheets. While we continue to believe that the amounts we have invoiced the U.S. government are in compliance with our contract terms and that recovery is probable, we also continue to evaluate our ability to recover these amounts as new information becomes known. As is common in the industry, negotiating and resolving these matters is often an involved and lengthy process, which sometimes necessitates the filing of claims or other legal action as discussed above. Concurrent with our continued negotiations with the U.S. government, we await the rulings on the filed claims. We are unable to predict when the rulings will be issued or when the matters will be settled or resolved with the U.S. government. As a result of the Form 1s, and claims discussed above as well as open audits, we have accrued a reserve for unallowable costs of $41 million at December 31, 2019 and 2018 , and the balances are recorded in "Contract liabilities" and "Other liabilities" in the amounts of $26 million and $15 million , respectively. Private Security Contractors. Starting in February 2007, we received a series of Form 1s from the DCAA informing us of the U.S. government's intent to deny reimbursement to us under the LogCAP III cost reimbursable contract for amounts related to the use of PSCs by KBR and a subcontractor in connection with its work for KBR providing dining facility services in Iraq between 2003 and 2006. The government challenged $57 million in billings of which the government had previously paid and withheld payments from us of $44 million . We had previously recorded the withheld payments in "Claims receivable" on our consolidated balance sheets. After a series of favorable awards by the ASBCA and subsequent appeals by the U.S. Army, on July 9, 2019 the Court of Appeals for the Federal Circuit upheld the prior ASBCA decision confirming the entire award in our favor including interest. We recorded additional revenue of $13 million representing the awarded interest not previously recognized on the withheld payments when the cash was received. This matter is now resolved. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Many of these matters involve allegations of violations of the FCA, which prohibits in general terms fraudulent billings to the U.S. government. Suits brought by private individuals are called "qui tams." We believe the costs of litigation and any damages that may be awarded in the FKTC matters described below are billable under the LogCAP III. All costs billed under LogCAP III are subject to audit by the DCAA for reasonableness. First Kuwaiti Trading Company arbitration. In April 2008, FKTC, one of our LogCAP III subcontractors providing housing containers, filed arbitration with the American Arbitration Association for all its claims under various LogCAP III subcontracts. After complete hearings on all claims, the arbitration panel awarded FKTC $17 million plus interest for claims involving damages on lost or unreturned vehicles. In addition, we determined that we owe FKTC $32 million in connection with other subcontracts provided we are reimbursed for these same costs by the U.S. government. We previously paid FKTC $19 million and the remaining $30 million is recorded in "Other Current Liabilities" on our consolidated balance sheets. As of December 31, 2019 , we believe our recorded accruals and the pay-when-paid terms in our contract with FKTC are adequate if we are unable to favorably resolve our claims and disputes against the U.S. government. See "KBR Contract Claim on FKTC containers" below. Howard qui tam. In March 2011, Geoffrey Howard and Zella Hemphill filed a complaint in the U.S. District Court for the Central District of Illinois alleging that KBR mischarged the government $628 million for unnecessary materials and equipment. In October 2014, the DOJ declined to intervene and the case was partially unsealed. Depositions of DCMA and KBR personnel are expected to occur in early 2020. The court has set a deadline of July 19, 2020 as the cutoff for all fact discovery and depositions. We believe the allegations of fraud by the relators are without merit and, as of December 31, 2019 , no amounts have been accrued. DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois against KBR and two former KBR subcontractors, including FKTC, alleging that three former KBR employees were offered and accepted kickbacks from these subcontractors in exchange for favorable treatment in the award and performance of subcontracts to be awarded during the course of KBR's performance of the LogCAP III contract in Iraq. The complaint alleges that as a result of the kickbacks, KBR submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. The DOJ's investigation dates back to 2004. We self-reported most of the violations and tendered credits to the U.S. government as appropriate. On May 22, 2014, FKTC filed a motion to dismiss, which the U.S. government opposed. Following the submission of our answer in April 2014, the U.S. government was granted a Motion to Strike certain affirmative defenses in March 2015. We do not believe this limits KBR's ability to fully defend all allegations in this matter. Discovery for this complaint is now complete. The Court has yet to rule on various motions filed in early 2019 that would affect the scope and venue of the case. The court will set hearing and trial dates after addressing the pending motions which we expect will occur in 2020. As of December 31, 2019 , we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter in "Other liabilities" on our consolidated balance sheets. Other matters KBR Contract Claim on FKTC containers. KBR previously filed a claim before the ASBCA to recover the costs paid to FKTC to settle its requests for equitable adjustment. The DCMA had disallowed the majority of those costs. Those contract claims were stayed in 2013 at the request of the DOJ so that they could pursue the FCA case referenced above. Those claims were reinstated in 2016. We tried our contract appeal in September 2017. In November 2018, we received an unfavorable ruling from the ASBCA disallowing all of our costs paid to FKTC. KBR's motion for reconsideration by a senior panel of judges at the ASBCA was denied. KBR filed its brief on appeal in September 2019. We expect oral arguments will take place in 2020. As of December 31, 2019, we believe our recorded accruals and the pay-when-paid terms in our contract with FKTC are adequate in the event we are unable to favorably resolve our claims and disputes against the government. |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Unaoil Investigation. The DOJ, SEC, and the SFO are conducting investigations of Unaoil, a Monaco based company, in relation to international projects involving several global companies, including KBR, whose interactions with Unaoil are a subject of those investigations. The investigations are focused on compliance with the U.S. FCPA. KBR believes it is cooperating with the DOJ, SEC, and the SFO in their investigations, including through the voluntary submission of information and responding to formal document requests. Chadian Employee Class Action. In May 2018, former employees of our former Chadian subsidiary, Subsahara Services, Inc. (SSI), filed a class action suit claiming unpaid damages arising from the ESSO Chad Development Project for Exxon Mobil Corporation (Exxon) dating back to the early 2000s. Exxon is also named as a defendant in the case. The SSI employees previously filed two class action cases in or around 2005 and 2006 for alleged unpaid overtime and bonuses. The Chadian Labour Court ruled in favor of the SSI employees for unpaid overtime resulting in a settlement of approximately $25 million which was reimbursed by Exxon under its contract with SSI. The second case for alleged unpaid bonuses was ultimately dismissed by the Supreme Court of Chad. The current case claims $122 million in unpaid bonuses characterized as damages rather than employee bonuses to avoid the previous Supreme Court dismissal and a 5-year statute of limitations on wage-related claims. SSI’s initial defense was filed and a hearing was held in December 2018. A merits hearing was held in February 2019. In March 2019, the Labour Court issued a decision awarding the plaintiffs approximately $34 million including a $2 million provisional award. SSI and Exxon have appealed the award and requested suspension of the provisional award which was approved on April 2, 2019. Exxon and SSI filed a submission to the Court of Appeal on June 21, 2019. The court has set a hearing for February 28, 2020. At this time we do not believe a risk of material loss is probable related to this matter, and therefore we have not accrued any loss provisions. SSI is no longer an existing entity in Chad or the United States. Further, we believe any amounts ultimately paid to the former employees related to this adverse ruling would be reimbursable by Exxon based on the applicable contract. North West Rail Link Project. We participate in an unincorporated joint venture with two partners to provide engineering and design services in relation to the operations, trains and systems of a metro rail project in Sydney, Australia. The project commenced in 2014 and during its execution encountered delays and disputes resulting in claims and breach notices submitted to the joint venture by the client. Since November 2018, the client has submitted multiple claims alleging breach of contract and breach of duty by the joint venture in its execution of the services, claiming losses and damages of up to approximately $300 million Australian dollars. We currently believe the gross of amount of the claims significantly exceeds the client’s entitlement as well as the joint venture’s limits of liability under the contract and that the claims will be covered by project-specific professional indemnity insurance subject to deductibles. The joint venture and its client are discussing potential resolution of the claims although no specific course of action has been agreed. In August 2019, the client advised that it has filed legal proceedings in the Supreme Court of New South Wales to preserve its position with regards to statute of limitations. The joint venture was served a notice of proceedings in November 2019 and an initial hearing is expected to occur in April 2020. KBR has a 33% participation interest in the joint venture and the partners have joint and several liability with respect to all obligations under the contract. As of December 31, 2019, we have reserved an amount that is immaterial with respect to this matter. However, it is reasonably possible that we may ultimately be required to pay material amounts in excess of reserves. At this time, fact discovery and expert review have not been initiated and the outcome thereof is uncertain such that a more precise estimate cannot be made at this time. Discussions between the joint venture and its client are ongoing. Environmental We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the U.S, these laws and regulations include, among others: the Comprehensive Environmental Response, Compensation and Liability Act; the Resources Conservation and Recovery Act; the Clean Air Act; the Clean Water Act and the Toxic Substances Control Act. In addition to federal and state laws and regulations, other countries where we do business often have numerous environmental regulatory requirements by which we must abide in the normal course of our operations. These requirements apply to our business segments where we perform construction and industrial maintenance services or operate and maintain facilities. We continue to monitor conditions at sites owned or previously owned. These locations were primarily utilized for manufacturing or fabrication work and are no longer in operation. The use of these facilities created various environmental issues including deposits of metals, volatile and semi-volatile compounds and hydrocarbons impacting surface and subsurface soils and groundwater. The range of remediation costs could change depending on our ongoing site analysis and the timing and techniques used to implement remediation activities. We do not expect that costs related to environmental matters will have a material adverse effect on our consolidated financial position or results of operations. Based on the information presently available to us the assessment and remediation costs associated with all environmental matters is immaterial and we do not anticipate incurring additional costs. We had been named as a potentially responsible party in various clean-up actions taken by federal and state agencies in the U.S. All of these matters have been settled or resolved and as of December 31, 2019 , we have not been named in any additional matters. Existing or pending climate change legislation, regulations, international treaties or accords are not expected to have a short-term material direct effect on our business, the markets that we serve or on our results of operations or financial position. However, climate change legislation could have a direct effect on our customers or suppliers, which could impact our business. For example, our commodity-based markets depend on the level of activity of mineral and oil and gas companies and existing or future laws, regulations, treaties or international agreements related to climate change, including incentives to conserve energy or use alternative energy sources, which could impact our business if such laws, regulations, treaties or international agreements reduce the worldwide demand for minerals, oil and natural gas. We continue to monitor developments in this area. Insurance Programs Our employee-related health care benefits program is self-funded. Our workers’ compensation, automobile and general liability insurance programs include a deductible applicable to each claim. Claims in excess of our deductible are paid by the insurer. The liabilities are based on claims filed and estimates of claims incurred but not reported. As of December 31, 2019 , liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $42 million , comprised of $14 million included in "Accrued salaries, wages and benefits," $2 million included in "Other current liabilities" and $26 million included in "Other liabilities" all on our consolidated balance sheets. As of December 31, 2018 , liabilities for unpaid and incurred but not reported claims for all insurance programs totaled approximately $48 million , comprised of $16 million included in "Accrued salaries, wages and benefits," $3 million included in "Other current liabilities" and $29 million included in "Other liabilities" all on our consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 85% of our lease obligations at December 31, 2019 . An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term for purpose of determining total future lease payments. As most of our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments. Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities. The components of lease costs for the year ended December 31, 2019 were as follows: December 31, Dollars in millions 2019 Operating lease cost $ 54 Short-term lease cost 121 Total lease cost $ 175 Operating lease cost for the year ended ended December 31, 2019 includes operating lease ROU asset amortization of $38 million and other noncash operating lease costs of $16 million related to the accretion of operating lease liabilities and straight-line lease accounting. Total rent expense on our operating leases under the previous lease standard were $144 million and $139 million for the years ended December 31, 2018 and 2017, respectively. Total short-term lease commitments as of December 31, 2019 was approximately $77 million . Additional information related to leases was as follows: December 31, Dollars in millions 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 56 Right-of-use assets obtained in exchange for new operating lease liabilities $ 20 Weighted-average remaining lease term-operating (in years) 8.0 Weighted-average discount rate-operating leases 7.6 % The following is a maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of December 31, 2019 : Year Dollars in millions 2020 2021 2022 2023 2024 Thereafter Total Future payments - operating leases $ 54 $ 44 $ 37 $ 33 $ 25 $ 119 $ 312 Dollars in millions Operating Leases Total future payments $ 312 Less imputed interest (81 ) Present value of future lease payments $ 231 Less current portion of lease obligations (39 ) Noncurrent portion of lease obligations $ 192 As of December 31, 2018, future total rent payments on noncancellable operating leases under the previous lease standard were $367 million in the aggregate, which consisted of the following: $76 million in 2019; $48 million in 2020; $39 million in 2021; $32 million in 2022; $29 million in 2023; and $143 million thereafter. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2016 $ 725 $ 2,088 $ 467 $ (769 ) $ (1,049 ) $ (12 ) Acquisition of noncontrolling interest (8 ) (8 ) — — — — Share-based compensation 12 12 — — — — Dividends declared to shareholders ($0.32/share) (45 ) — (45 ) — — — Repurchases of common stock (53 ) — — (53 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (4 ) — — — — (4 ) Other noncontrolling interests activity (1 ) — — — — (1 ) Net income 440 — 432 — — 8 Other comprehensive income, net of tax 127 — — — 127 — Balance at December 31, 2017 $ 1,197 $ 2,091 $ 854 $ (818 ) $ (922 ) $ (8 ) Cumulative effect of change in accounting policy, net of tax (Note 1) 144 — 144 — — — Adjusted balance at January 1, 2018 1,341 2,091 998 (818 ) (922 ) (8 ) Acquisition of noncontrolling interest 69 69 — — — — Share-based compensation 10 10 — — — — Tax benefit decrease related to share-based plans 1 1 — — — — Common stock issued upon exercise of stock options 2 2 — — — — Dividends declared to shareholders ($0.32/share) (44 ) — (44 ) — — — Repurchases of common stock (3 ) — — (3 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Issuance of convertible debt and call spread overlay 18 18 — — — — Distributions to noncontrolling interests (3 ) — — — — (3 ) Other noncontrolling interests activity 2 — — — — 2 Net income 310 — 281 — — 29 Other comprehensive income, net of tax 12 — — — 12 — Balance at December 31, 2018 $ 1,718 $ 2,190 $ 1,235 $ (817 ) $ (910 ) $ 20 Cumulative adjustment for the adoption of ASC 842, net of tax (Note 1) 21 — 21 — — — Cumulative adjustment for the adoption of ASC 606 for our unconsolidated affiliates, net of tax (Note 1) 29 — 29 — — — Adjusted balance at January 1, 2019 1,768 2,190 1,285 (817 ) (910 ) 20 Share-based compensation 12 12 — — — — Common stock issued upon exercise of stock options 5 5 — — — — Dividends declared to shareholders ($0.32/share) (46 ) — (46 ) — — — Repurchases of common stock (4 ) — — (4 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (14 ) — — — — (14 ) Net income 209 — 202 — — 7 Other comprehensive income (loss), net of tax (77 ) — — — (77 ) — Balance at December 31, 2019 $ 1,857 $ 2,206 $ 1,441 $ (817 ) $ (987 ) $ 14 AOCL, net of tax December 31, Dollars in millions 2019 2018 2017 Accumulated foreign currency translation adjustments, net of tax of $3, $2 and $4 $ (315 ) $ (304 ) $ (259 ) Pension and post-retirement benefits, net of tax of $224, $213 and $227 (654 ) (592 ) (660 ) Fair value of derivatives, net of tax of $5, $3 and $0 (18 ) (14 ) (3 ) Total accumulated other comprehensive loss $ (987 ) $ (910 ) $ (922 ) Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2017 $ (259 ) $ (660 ) $ (3 ) $ (922 ) Other comprehensive income adjustments before reclassifications (51 ) 44 (20 ) (27 ) Amounts reclassified from AOCL 6 24 9 39 Net other comprehensive income (loss) (45 ) 68 (11 ) 12 Balance at December 31, 2018 $ (304 ) $ (592 ) $ (14 ) $ (910 ) Other comprehensive income adjustments before reclassifications (3 ) (76 ) (14 ) (93 ) Amounts reclassified from AOCL (8 ) 14 10 16 Net other comprehensive income (loss) (11 ) (62 ) (4 ) (77 ) Balance at December 31, 2019 $ (315 ) $ (654 ) $ (18 ) $ (987 ) Reclassifications out of AOCL, net of tax, by component Dollars in millions December 31, 2019 December 31, 2018 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments 8 $ (6 ) Gain (loss) on disposition of assets and Gain on consolidation of Aspire entities, respectively Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 8 $ (6 ) Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (17 ) $ (28 ) See (a) below Tax benefit 3 4 Provision for income taxes Net pension and post-retirement benefits $ (14 ) $ (24 ) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ (10 ) $ (9 ) Other non-operating income (loss) Tax benefit — — Provision for income taxes Net changes in fair value of derivatives $ (10 ) $ (9 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 13 to our consolidated financial statements for further discussion. As a result of the Tax Cuts and Jobs Act of 2017, certain income tax effects related to items in AOCL have been stranded in AOCL, and we did not elect to reclassify these stranded tax effects to retained earnings. The tax effects remaining in AOCL are released only when all related units of account are liquidated, sold or extinguished. Shares of common stock Shares in millions Shares Balance at December 31, 2017 176.6 Common stock issued 0.8 Balance at December 31, 2018 177.4 Common stock issued 0.9 Balance at December 31, 2019 178.3 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2017 36.5 $ 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 $ 817 Dividends We declared dividends totaling $46 million and $44 million in 2019 and 2018 |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases Authorized Share Repurchase Program On February 25, 2014, our Board of Directors authorized a plan to repurchase up to $350 million of our outstanding shares of common stock, which replaced and terminated the August 26, 2011 share repurchase program. As of December 31, 2019 , $160 million remain available for repurchase under this authorization. The authorization does not obligate the Company to acquire any particular number of shares of common stock and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash and the authorization does not have an expiration date. Share Maintenance Programs Stock options and restricted stock awards granted under the KBR, Inc. 2006 Stock and Incentive Plan ("KBR Stock Plan") may be satisfied using shares of our authorized but unissued common stock or our treasury share account. The ESPP allows eligible employees to withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR common stock. These shares are issued from our treasury share account. Withheld to Cover Program In addition to the plans above, we also have in place a "withheld to cover" program, which allows us to withhold common shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share based equity awards under the KBR Stock Plan. The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 |
Share-based Compensation and In
Share-based Compensation and Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans KBR Stock Plan In November 2006, KBR established the KBR Stock Plan, which provides for the grant of any or all of the following types of share-based compensation listed below: • stock options, including incentive stock options and nonqualified stock options; • stock appreciation rights, in tandem with stock options or freestanding; • restricted stock; • restricted stock units; • cash performance awards; and • stock value equivalent awards. In May 2012, the KBR Stock Plan was amended to add 2 million shares of our common stock available for issuance under the KBR Stock Plan and increase certain sublimits. In May 2016, the KBR Stock Plan was further amended to add 4.4 million shares of our common stock available for issuance under the KBR Stock Plan. Additionally, this amendment increased the sublimit under the Stock Plan in the form of restricted stock awards, restricted stock unit awards, stock value equivalent awards, or pursuant to performance awards denominated in common stock by 4.4 million . Under the terms of the KBR Stock Plan, 16.4 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 9.9 million shares can be awarded as restricted stock, restricted stock units, stock value equivalents, or pursuant to performance awards denominated in common stock. At December 31, 2019 , approximately 5.5 million shares were available for future grants under the KBR Stock Plan, of which approximately 2.6 million shares remained available for restricted stock awards or restricted stock unit awards. KBR Stock Options Under the KBR Stock Plan, stock options are granted with an exercise price not less than the fair market value of the common stock on the date of the grant and a term no greater than 10 years. The term and vesting periods are established at the discretion of the Compensation Committee at the time of each grant. The fair value of options at the date of grant are estimated using the Black-Scholes-Merton option pricing model. The expected volatility of KBR options granted in each year is based upon a blended rate that uses the historical and implied volatility of common stock for KBR. The expected term of KBR options granted was based on KBR's historical experience. The estimated dividend yield is based upon KBR’s annualized dividend rate divided by the market price of KBR’s stock on the option grant date. The risk-free interest rate is based upon the yield of U.S. government issued treasury bills or notes on the option grant date. We amortize the fair value of the stock options over the vesting period on a straight-line basis. Options are granted from shares authorized by our Board of Directors. There were no stock options granted in 2019 , 2018 or 2017 . The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2019 . 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, 2018 2,090,519 $ 24.34 3.88 $ 0.83 Granted — — Exercised (289,942 ) 16.26 Forfeited — — Expired (197,990 ) 16.68 Outstanding at December 31, 2019 1,602,587 $ 26.74 3.33 $ 0.87 Exercisable at December 31, 2019 1,601,297 $ 26.73 3.33 $ 0.87 The total intrinsic values of options exercised for the years ended December 31, 2019 , 2018 and 2017 were $0.3 million , $0.1 million and $0.4 million , respectively. As of December 31, 2019 , there was no unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options. Stock option compensation expense was $0 million in 2019 , $0 million in 2018 and $1 million in 2017 . Total income tax benefit recognized in net income for share-based compensation arrangements was $0 million in 2019 , $0 million in 2018 and $0 million in 2017 . 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 2019 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, 2018 1,136,791 $ 15.32 Granted 802,025 19.01 Vested (675,366 ) 15.92 Forfeited (33,405 ) 16.44 Nonvested shares at December 31, 2019 1,230,045 $ 17.37 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2019 , 2018 and 2017 was $19.01 , $15.93 and $15.11 , respectively. Restricted stock compensation expense was $12 million for 2019 , $10 million for 2018 and $11 million for 2017 . Total income tax benefit recognized in net income for share-based compensation arrangements during 2019 , 2018 and 2017 was $3 million , $2 million , and $4 million , respectively. As of December 31, 2019 , there was $13 million of unrecognized compensation cost, net of estimated forfeitures, related to KBR’s non-vested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 1.83 years. The total fair value of shares vested was $14 million in 2019 , $10 million in 2018 and $10 million in 2017 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $11 million in 2019 , $10 million in 2018 and $11 million in 2017 based on the weighted-average fair value on the date of grant. Share-based compensation expense If an award is modified after the grant date, incremental compensation cost is recognized immediately as of the modification. Share-based compensation expense consists of $2 million recorded to cost of revenues and $10 million to general and administrative expenses on our consolidated statements of operations. The benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefits) are classified as additional paid-in-capital, and cash retained as a result of these excess tax benefits is presented in the statements of cash flows as financing cash inflows. Share-based compensation summary table Years ended December 31, Dollars in millions 2019 2018 2017 Share-based compensation $ 12 $ 10 $ 12 Income tax benefit recognized in net income for share-based compensation $ 3 $ 2 $ 4 Incremental compensation cost $ — $ 1 $ — Incremental compensation cost resulted from modifications of previously granted share-based awards which allowed certain employees to retain their awards after leaving the Company. Excess tax benefits realized from the exercise of share-based compensation awards are recognized as paid-in capital in excess of par. KBR Cash Performance Based Award Units ("Cash Performance Awards") Under the KBR Stock Plan, for Cash Performance Awards granted in 2019 , 2018 and 2017 , performance is based 50% on average Total Shareholder Return ("TSR"), as compared to the average TSR of KBR’s peers, and 50% on KBR’s Job Income Sold ("JIS"). In accordance with the provisions of ASC 718 - Compensation-Stock Compensation, the TSR portion for the performance award units are classified as liability awards and remeasured at the end of each reporting period at fair value until settlement. The fair value approach uses the Monte Carlo valuation method which analyzes the companies comprising KBR’s peer group, considering volatility, interest rate, stock beta and TSR through the grant date. The JIS calculation is based on the Company's JIS earned at a target level averaged over a three year period. The JIS portion of the Cash Performance Award is also classified as a liability award and remeasured at the end of each reporting period based on our estimate of the amount to be paid at the end of the vesting period. The cash performance award units may only be paid in cash. Under the KBR Stock Plan, in 2019 , we granted 19 million performance based award units ("Cash Performance Awards") with a three -year performance period from January 1, 2019 to December 31, 2021 . In 2018 , we granted 18 million Cash Performance Awards with a three -year performance period from January 1, 2018 to December 31, 2020 . In 2017 , we granted 19 million Cash Performance Awards with a three -year performance period from January 1, 2017 to December 31, 2019 . Cash Performance Awards forfeited, net of previous plan payout, totaled 3 million units, 3 million units, and 5 million units during the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 , the outstanding balance for Cash Performance Awards is 49 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, 2019 , 2018 and 2017 , we recognized $34 million , $15 million and $22 million , respectively, in expense for Cash Performance Awards. The expense associated with these Cash Performance Awards is included in cost of services and general and administrative expense in our consolidated statements of operations. The liability for Cash Performance Awards includes $27 million recorded within "Accrued salaries, wages and benefits" and $23 million recorded within "Employee compensation and benefits" on our consolidated balance sheets as of December 31, 2019 . The liability for Cash Performance Awards includes $13 million recorded within "Accrued salaries, wages and benefits, and $17 million recorded within "Employee compensation and benefits" on our consolidated balance sheets as of December 31, 2018 . KBR Employee Stock Purchase Plan ("ESPP") Under the ESPP, eligible employees may withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR’s common stock. Unless KBR’s Board of Directors determines otherwise, each six-month offering period commences at the beginning of February and August of each year. Employees who participate in the ESPP will receive a 5% discount on the stock price at the end of each period. During 2019 and 2018 , our employees purchased approximately 166,000 and 164,000 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, 2019 | |
Earnings Per Share [Abstract] | |
Income per Share | Income per Share Basic income per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method. A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows: Years ended December 31, Shares in millions 2019 2018 2017 Basic weighted average common shares outstanding 141 140 141 Stock options, restricted shares, and convertible debt 1 1 — Diluted weighted average common shares outstanding 142 141 141 For purposes of applying the two-class method in computing income per share, net earnings allocated to participating securities was $1.5 million , or $0.01 per share for fiscal year 2019 , $1.8 million , or $0.01 per share for fiscal year 2018 , and $3 million , or $0.02 per share for fiscal year 2017 . The diluted income per share calculation did not include 1.3 million , 1.5 million , and 2.1 million antidilutive weighted average shares for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of December 31, 2019 , the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $52 million , all of which had durations of 21 days or less. We also had approximately $5 million (gross notional value) of cash flow hedges which had durations of 7 months or less. The cash flow hedges are primarily related to the British Pound. The fair value of our balance sheet and cash flow hedges included in "Other current assets" and "Other current liabilities" on our consolidated balance sheets was immaterial at December 31, 2019 , and 2018 , respectively. The fair values of these derivatives are considered Level 2 under ASC 820, Fair Value Measurement, as they are based on quoted prices directly observable in active markets. The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income (loss)" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2019 2018 Balance Sheet Hedges - Fair Value $ 1 $ — Balance Sheet Position - Remeasurement 3 (9 ) Net $ 4 $ (9 ) Interest rate risk. The Company uses interest rate swaps to reduce interest rate risk and to manage net interest expense. On October 10, 2018 we entered into interest rate swap agreements with a notional value of $500 million to manage the interest rate exposure on our variable rate loans. By entering into swap agreements, the Company converted the LIBOR rate based liability into a fixed rate liability for a four year period. Under the swap agreements, the Company receives one month LIBOR rate and pays monthly a fixed rate of 3.055% for the term of the swaps. The fair value of the interest rate swaps at December 31, 2019 was $21 million of which $8 million is included in "Other current liabilities" and $13 million is included "Other liabilities." The unrealized net losses on these interest rate swaps was $21 million and included in "AOCL" as of December 31, 2019 . The fair value of the interest rate swaps at December 31, 2018 was $12 million of which $3 million is included in "Other current liabilities" and $9 million is included in "Other liabilities". The unrealized net losses on these interest rate swaps was $12 million and included in "AOCL" as of December 31, 2018 . |
Impact on Previously Issued Fin
Impact on Previously Issued Financial Statements for the Correction of an Error | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact on Previously Issued Financial Statements for the Correction of an Error | Impact on Previously Issued Financial Statements for the Correction of an Error During the second quarter ended June 30, 2019, we identified and corrected immaterial errors affecting previously issued financial statements related to the historical recognition of equity earnings associated with our interest in an unconsolidated joint venture in our ES business segment. These errors were primarily due to the impact of improperly calculated gains and losses on foreign currency transactions from 2013 through the first quarter of 2019. As of March 31, 2019, the cumulative error for all periods previously reported was an overstatement of net income of approximately $23 million impacting “Equity in and advances to unconsolidated affiliates” in our consolidated balance sheets and “Equity in earnings of unconsolidated affiliates” in our consolidated statements of operations. The errors had no impact on our previously reported cash flows. We assessed the materiality, both quantitatively and qualitatively, in accordance with the SEC’s SAB No. 99 and SAB No. 108, and concluded these errors were not material to any of our previously issued quarterly or annual financial statements. In order to correctly present the errors noted above, previously issued financials statements have been revised and are presented as “As Corrected” in the table below. Three Months Ended December 31, 2018 Revised Consolidated Statement of Operations Amounts ( Unaudited ) : As Previously Reported Adjustments As Corrected Equity in earnings of unconsolidated affiliates $ 27 $ 2 $ 29 Operating income $ 88 $ 2 $ 90 Net income $ 49 $ 4 $ 53 Net income attributable to KBR $ 43 $ 4 $ 47 Net income attributable to KBR per share: Basic $ 0.31 $ 0.02 $ 0.33 Diluted $ 0.31 $ 0.02 $ 0.33 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New accounting pronouncements requiring implementation in future periods are discussed below. In November 2018, the FASB issued ASU No. 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606 which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. ASU No. 2018-18 is effective for interim and annual reporting periods beginning after December 15, 2019. We do not expect the adoption of ASU No. 2018-18 to have a material impact on our financial position, results of operations or cash flows. In October 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest. ASU No. 2018-17 is effective for interim and annual reporting periods beginning after December 15, 2019. We do not expect the adoption of ASU No. 2018-17 to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. ASU No. 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU No. 2018-15 to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends ASC 715 to add, remove and clarify certain disclosure requirements related to defined benefit pension and other postretirement plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We do not expect the adoption of ASU No. 2018-14 to have any impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU amends ASC 820 to add, remove and modify certain disclosure requirements for fair value measurements. For example, public companies will now be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU No. 2018-13 to have any impact on our financial position, results of operations or cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect adoption of this ASU to be material to our ongoing financial reporting or to known trends, demands, uncertainties and events in our business. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecast and is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods after December 15, 2018, including interim periods within those annual periods. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is presented in the following table. In the following table, the sum of basic and diluted “Net income attributable to KBR per share” for the four quarters may differ from the annual amounts due to the required method of computing weighted average number of shares in the respective periods. Additionally, due to the effect of rounding, the sum of the individual quarterly earnings per share amounts may not equal the calculated year earnings per share amount. (Dollars in millions, except per share amounts) First Second Third Fourth Year 2019 Total revenues $ 1,340 $ 1,422 $ 1,425 $ 1,452 $ 5,639 Gross profit 153 160 169 171 653 Equity in earnings of unconsolidated affiliates — 15 9 11 35 Operating income 78 92 104 88 362 Net income 42 50 58 59 209 Net income attributable to noncontrolling interests (2 ) (2 ) (2 ) (1 ) (7 ) Net income attributable to KBR 40 48 56 58 202 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.28 $ 0.34 $ 0.39 $ 0.41 $ 1.42 Net income attributable to KBR per share—Diluted $ 0.28 $ 0.34 $ 0.39 $ 0.40 $ 1.41 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2018 Total revenues $ 1,038 $ 1,267 $ 1,278 $ 1,330 $ 4,913 Gross profit 117 161 149 157 584 Equity in earnings of unconsolidated affiliates 21 12 17 29 79 Operating income (a) 179 100 99 90 468 Net income 137 64 56 53 310 Net income attributable to noncontrolling interests (1 ) (20 ) (2 ) (6 ) (29 ) Net income attributable to KBR 136 44 54 47 281 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.96 $ 0.31 $ 0.38 $ 0.33 $ 1.99 Net income attributable to KBR per share—Diluted $ 0.96 $ 0.31 $ 0.38 $ 0.33 $ 1.99 (a) Operating income includes gain on consolidation of Aspire entities of $108 million that occurred in the first quarter of 2018. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts The table below presents valuation and qualifying accounts for continuing operations. (Dollars in Millions) Additions Descriptions Balance at Beginning Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended December 31, 2019: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 9 $ 13 $ 3 (c) $ (11 )(a) $ 14 Reserve for losses on uncompleted contracts $ 6 $ 12 $ — $ (8 ) $ 10 Reserve for potentially disallowable costs incurred under government contracts $ 55 $ 5 $ — $ (2 ) $ 58 Year ended December 31, 2018: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 12 $ 3 $ — $ (6 )(a) $ 9 Reserve for losses on uncompleted contracts $ 15 $ 9 $ — $ (18 ) $ 6 Reserve for potentially disallowable costs incurred under government contracts $ 60 $ 13 $ 2 (b) $ (20 ) $ 55 Year ended December 31, 2017: Deducted from accounts and notes receivable: Allowance for doubtful accounts $ 14 $ — $ — $ (2 )(a) $ 12 Reserve for losses on uncompleted contracts $ 63 $ 4 $ — $ (52 ) $ 15 Reserve for potentially disallowable costs incurred under government contracts $ 73 $ 1 $ — $ (14 ) $ 60 (a) Receivable write-offs, net of recoveries (b) Reserves of $2 million were recorded in the 2018 acquisition of SGT (c) Reserves of $3 million was recorded as a reduction in revenue |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 12 to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in our consolidated statements of operations, consolidated balance sheets and the consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities; the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following: • project revenues, costs and profits on engineering and construction contracts, including recognition of estimated losses on uncompleted contracts • award fees, costs and profits on government services contracts • provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • recoverability of goodwill • recoverability of other intangibles and long-lived assets and related estimated lives • recoverability of equity method investments • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals • consolidation of VIEs • valuation of share-based compensation • valuation of assets and liabilities acquired in business combinations 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. |
Cash and Equivalents | Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. See Note 5 to our consolidated financial statements for our discussion on cash and equivalents. |
Revenue Recognition | Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers on January, 1, 2018. Our financial results for reporting periods beginning January 1, 2018 are presented under the new accounting standard, while financial results for prior periods will continue to be reported in accordance with our historical accounting policy. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied which generally occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, which is more prevalent than not, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Services Contracts For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time generally using the cost-to-cost method (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress because it best depicts the transfer of value to the customer. Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Under the typical payment terms of our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., weekly, biweekly or monthly) or upon achievement of contractual milestones. Engineering and Construction Contracts We recognize revenue over time, as performance obligations are satisfied, for substantially all of our engineering and construction contracts due to the continuous transfer of control to the customer. For most of our engineering and construction contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability and are therefore accounted for as single performance obligations. We recognize revenue using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs. This method is the most accurate measure of our contract performance because it directly measures the value of the goods and services transferred to the customer. Contract costs include all direct material, labor and subcontractor costs and indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer. Project mobilization costs are generally charged to the project as incurred when they are an integrated part of the performance obligation being transferred to the client. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. The payment terms of our engineering and construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered to contain a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation. Variable Consideration It is common for our contracts to contain variable consideration in the form of incentive fees, performance bonuses, award fees, liquidated damages or penalties. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance, and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Historically, warranty claims have not resulted in material costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in one or more of these estimates could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify contract assets and liabilities as current or noncurrent to the extent the revenue is expected to be recognized in excess of one year from the balance sheet date. |
Gross Profit | Gross Profit Gross profit represents revenues less the cost of revenues, which includes business segment overhead costs directly attributable to execution of contracts by the business segment. |
General and Administrative Expenses | General and Administrative Expenses Our general and administrative expenses represent expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other corporate functions. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded based on contracted prices when we obtain an unconditional right to payment under the terms of our contracts. We establish an allowance for doubtful accounts based on the assessment of our clients' willingness and ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. |
Property, Plant and Equipment | Property, Plant and Equipment |
Acquisitions | Acquisitions We account for business combinations using the acquisition method of accounting in accordance with ASC 805 - Business Combinations, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We conduct external and internal valuations of certain acquired assets and liabilities for inclusion in our balance sheet as of the date of acquisition. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with ASC 350 - Intangibles - Goodwill and Other, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. If the fair value of a reporting unit exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of goodwill impairment. The second step compares the implied fair value of the reporting unit goodwill to the carrying value of the reporting unit goodwill. We determine the implied fair value of the goodwill in the same manner as determining the amount of goodwill to be recognized in a business combination. We completed our annual goodwill impairment test in the fourth quarter of 2019 and determined that none of the goodwill was impaired. See Note 11 to our consolidated financial statements for reported goodwill in each of our segments. We had intangible assets with net carrying values of $495 million and $516 million as of December 31, 2019 and 2018 , respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. As of December 31, 2019 , none of our intangible assets with indefinite lives were impaired. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years |
Investments | Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 12 to our consolidated financial statements for our discussion on equity method investments. |
Joint Ventures and VIEs | Joint Ventures and VIEs The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC 810 - Consolidation, which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, engineering and construction projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 12 to our consolidated financial statements for our discussion on variable interest entities. |
Deconsolidation of a Subsidiary | Deconsolidation of a Subsidiary We account for a gain or loss on deconsolidation of a subsidiary or derecognition of a group of assets in accordance with ASC 810-10-40-5. We measure the gain or loss as the difference between (a) the aggregate of fair value of any consideration received, the fair value of any retained noncontrolling investment and the carrying amount of any noncontrolling interest in the former subsidiary at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. |
Pensions | Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. Two of the more critical assumptions and estimates used in the actuarial calculations are the discount rate for determining the current value of benefit obligations and the expected rate of return on plan assets. Other assumptions and estimates used in determining benefit obligations and plan expenses include inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (typically annually) and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country, participant demographics or economic environment. Unrecognized actuarial gains and losses are generally recognized using the corridor method over a period of approximately 25 years , which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. |
Income Taxes | Income Taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. See Note 15 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. |
Derivative Instruments | Derivative Instruments We enter into derivative financial transactions to hedge existing or forecasted risk to changing foreign currency exchange rates and interest rate risk on variable rate debt. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives at fair value on the balance sheet. Derivatives that are not designated as hedges in accordance with ASC 815 - Derivatives and Hedging, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a cash flow hedge, changes in the fair value of derivatives are recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a designated hedge's change in fair value is recognized in earnings. See Note 23 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within "Other non-operating income" on our consolidated statements of operations. Realized gains or losses on derivatives used to manage interest rate risk are included in interest expense in our consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. 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). We generated significant revenues from transactions with the U.S. government and U.K. government within our GS business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented. |
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 | Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long-term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in "Accumulated other comprehensive loss" on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in "Accumulated other comprehensive loss" on our consolidated balance sheets. |
Share-based compensation | Share-based compensation We account for share-based payments, including grants of employee stock options, restricted stock-based awards and performance cash units, in accordance with ASC 718 - Compensation-Stock Compensation, which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in our consolidated statements of operations based on their fair values on the award date and the estimated number of shares of common stock we ultimately expect to vest. We recognize share-based compensation expense on a straight-line basis over the service period of the award, which is no greater than 5 years |
Commitments and Contingencies | Commitments and Contingencies We record liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Impact of Adoption of New Accounting Standards and Recent Accounting Pronouncements | Impact of Adoption of New Accounting Standards Lease Accounting Effective January 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) and related ASUs using the modified retrospective transition approach. The modified retrospective transition approach provides for an “effective date” method for recording leases that existed or were entered into on or after January 1, 2019, without restating prior-period information. Our unconsolidated joint ventures anticipate adopting the new lease standard effective January 1, 2020. ASC Topic 842 provided several optional practical expedients for use in transition. We elected to use the package of practical expedients which allowed us to not reassess our previous conclusions about lease identification, lease classification and the accounting treatment for initial direct costs. We did not elect the practical expedient pertaining to the use of hindsight. The most significant effects of the new standard on our consolidated financial statements are the recognition of new operating lease right-of-use ("ROU") assets and operating lease liabilities on our consolidated balance sheet for operating leases as well as significant new disclosures about our leasing activities as further discussed in Note 18 . On January 1, 2019, we recorded “Operating lease liabilities” of approximately $253 million based on the present value of the remaining lease payments over the lease term. Additionally, we reclassified current and noncurrent deferred rent of $68 million associated with straight-line accounting and tenant incentives related to existing real estate leases against the initial "Operating lease right-of-use assets" as of January 1, 2019. The adoption of the new standard did not have a material impact on our results of operations or cash flows. As a result of the adoption, we recorded a cumulative-effect adjustment to retained earnings of $21 million , net of deferred taxes of $7 million , representing the unamortized portion of a deferred gain previously recorded in conjunction with the 2012 sale and leaseback of the office building in Houston, Texas where our corporate headquarters is located. We concluded the transaction resulted in the transfer of control of the office building to the buyer-lessor at market terms and therefore would have qualified as a sale under ASC Topic 842 with gain recognition in the period in which the sale was recognized. We recognized the cumulative effect of initially applying ASC Topic 842 as an adjustment to our assets and liabilities in our consolidated balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 842 January 1, 2019 Assets Operating lease right-of-use asset $ — $ 185 $ 185 Other current assets 108 (1 ) 107 Deferred income taxes 222 (7 ) 215 Liabilities Operating lease liabilities — 40 40 Other current liabilities 179 (5 ) 174 Operating lease liabilities (noncurrent) — 213 213 Other liabilities (noncurrent) 202 (92 ) 110 Shareholders' equity Retained Earnings 1,235 21 1,256 Revenue Recognition Practical Expedients and Exemptions Upon the adoption of ASC 606, we utilized certain practical expedients and exemptions as follows: • We applied the modified-retrospective method upon adoption of ASC Topic 606 which allowed the new accounting standard to be applied only to contracts that were not considered substantially complete as of January 1, 2018. • In cases where we have an unconditional right to consideration from a customer in an amount that corresponds directly with the value of our performance completed to date, we recognize revenue in the amount to which we have a right to invoice for services performed. • We do not adjust the contract price for the effects of a significant financing component if the company expects, at contract inception, that the period between when the company transfers a service to a customer and when the customer pays for that service will be one year or less. • We availed ourselves of the SEC Exemption under ASU 2017-13 to defer the application of ASC 606 to most of our unconsolidated joint ventures for one year. Impact of 606 Adoption We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable $ 510 $ 157 $ 667 Contract assets 383 (191 ) 192 Other current assets 93 5 98 Equity in and advances to unconsolidated affiliates 365 87 452 Deferred income taxes 300 (6 ) 294 Other assets 124 1 125 Liabilities Contract liabilities 368 9 377 Deferred income from unconsolidated affiliates 101 (101 ) — Other liabilities 171 1 172 Equity Retained Earnings 854 144 998 The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows: Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Statement of Operations Revenues $ 4,913 $ 4,904 $ 9 Cost of revenues (4,329 ) (4,328 ) 1 Equity in earnings of unconsolidated affiliates 79 75 4 Income before income taxes and noncontrolling interests 396 384 12 Provision for income taxes (86 ) (85 ) 1 Net income 310 300 10 EPS Basic $ 1.99 $ 1.92 $ 0.07 Diluted $ 1.99 $ 1.91 $ 0.08 As of December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Assets Accounts receivable $ 927 $ 594 $ 333 Contract assets 185 496 (311 ) Other current assets 108 103 5 Equity in and advances to unconsolidated affiliates 724 716 8 Deferred income taxes 222 229 (7 ) Other assets 147 143 4 Liabilities Contract liabilities 463 479 (16 ) Deferred income taxes 27 28 (1 ) Deferred income from unconsolidated affiliates — 95 (95 ) Other liabilities 202 202 — Equity Retained earnings 1,235 1,080 155 Accumulated other comprehensive loss (910 ) (899 ) (11 ) Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Cash flows from operating activities Net income $ 310 $ 300 $ 10 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (79 ) (75 ) (4 ) Deferred income tax (benefit) expense 26 25 1 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable, net of allowances for doubtful accounts (203 ) 130 (333 ) Contract assets 25 (286 ) 311 Contract liabilities (60 ) (77 ) 17 Other assets and liabilities (7 ) (5 ) (2 ) Total cash flows used in operating activities 165 165 — The impacts of adoption were primarily related to: (1) conforming our contracts recorded over time from previously acceptable methods to the cost-to-cost percentage of completion methodology, (2) combining certain deliverables that were previously considered separate deliverables into a single performance obligation, and (3) separating certain contracts that were previously considered one deliverable into multiple performance obligations. The impacts of adoption on our balance sheet as of January 1, 2018 were primarily related to reclassification of amounts between "Accounts receivable, net of allowance for doubtful accounts" and "Contract assets" based on whether an unconditional right to consideration has been established or not, and the deferral of costs incurred and payments received to fulfill a contract, which were previously recorded in income in the period incurred or received but under the new standard will generally be capitalized and amortized over the period of contract performance. In connection with the consolidation of certain previously unconsolidated VIEs associated with the Aspire Defence project in the first quarter of 2018, we elected to adopt ASC 606 for each of the remaining unconsolidated Aspire Defence contracting entities effective January 1, 2018. As a result of the adoption by the Aspire Defence contracting entities, we identified multiple performance obligations associated with the project deliverables that were previously accounted for as a single deliverable under its contract with the MoD. In addition to the above impacts of adoption on revenue and gross margin, the cumulative effect of the adoption by Aspire Defence contracting entities resulted in sufficient additional income that had been previously recorded as "Deferred income from unconsolidated affiliates" on our consolidated balance sheets in the amount of $101 million , which was reversed and included in the cumulative effect adjustment. Also, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence contracting entities. We deferred the application of ASC 606 to our remaining unconsolidated joint ventures until January 1, 2019. Effective January 1, 2019, we adopted ASU No. 2017-13, Revenue from Contracts with Customers (Topic 606) for our remaining unconsolidated affiliates, using the modified retrospective approach, except for unconsolidated VIEs associated with the Aspire Defence project for which we adopted ASC Topic 606 on January 1, 2018. We recognized the cumulative effect of initially applying ASC Topic 606 for our unconsolidated affiliates as an adjustment to our assets and retained earnings in the balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 606 January 1, 2019 Assets Equity in and advances to unconsolidated affiliates $ 724 $ 29 $ 753 Shareholders' equity Retained Earnings 1,235 29 1,264 Other Standards Effective January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedge Activities, using the modified retrospective approach. This ASU is intended to improve and simplify accounting rules related to hedge accounting. The adoption of this ASU did not have a material impact to our financial statements. Effective January 1, 2019, we adopted ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. As a result, entities may designate changes in this rate as the hedged risk in hedges of interest rate risk for fixed-rate financial instruments. The adoption of ASU 2018-16 did not have any impact on our financial position, results of operations or cash flows. New accounting pronouncements requiring implementation in future periods are discussed below. In November 2018, the FASB issued ASU No. 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606 which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. ASU No. 2018-18 is effective for interim and annual reporting periods beginning after December 15, 2019. We do not expect the adoption of ASU No. 2018-18 to have a material impact on our financial position, results of operations or cash flows. In October 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest. ASU No. 2018-17 is effective for interim and annual reporting periods beginning after December 15, 2019. We do not expect the adoption of ASU No. 2018-17 to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. ASU No. 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU No. 2018-15 to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends ASC 715 to add, remove and clarify certain disclosure requirements related to defined benefit pension and other postretirement plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We do not expect the adoption of ASU No. 2018-14 to have any impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU amends ASC 820 to add, remove and modify certain disclosure requirements for fair value measurements. For example, public companies will now be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU No. 2018-13 to have any impact on our financial position, results of operations or cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect adoption of this ASU to be material to our ongoing financial reporting or to known trends, demands, uncertainties and events in our business. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecast and is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods after December 15, 2018, including interim periods within those annual periods. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Business Reorganization | Year Ended Year Ended December 31, 2018 December 31, 2017 Dollars in millions As Reported As Previously Reported As Reported As Previously Reported Statement of Operations Cost of revenues $ (4,329 ) $ (4,457 ) $ (3,732 ) $ (3,829 ) Selling, general and administrative expenses (294 ) (166 ) (244 ) (147 ) |
Schedule of Revenues and Receivables from Major Customers | The following tables present summarized data related to our transactions with U.S. and U.K governmental agencies. Revenues from major customers: Years ended December 31, Dollars in millions 2019 2018 2017 U.S. government $ 3,014 $ 2,610 $ 1,914 U.K. government $ 659 $ 622 $ 66 Percentages of revenues and accounts receivable from major customers: Years ended December 31, 2019 2018 2017 U.S. government revenues percentage 53 % 53 % 46 % U.S. government receivables percentage 52 % 57 % 32 % U.K. government revenues percentage 12 % 13 % 2 % U.K. government receivables percentage 5 % 4 % 1 % |
Schedule of Other Current Assets | The components of "Other current assets" on our consolidated balance sheets as of December 31, 2019 and 2018 are presented below: December 31, Dollars in millions 2019 2018 Prepaid expenses $ 65 $ 49 Value-added tax receivable 37 29 Advances to subcontractors 20 5 Other miscellaneous assets 24 25 Total other current assets $ 146 $ 108 |
Components of Other Current Liabilities | The components of "Other current liabilities" on our consolidated balance sheets as of December 31, 2019 and 2018 are presented below: December 31, Dollars in millions 2019 2018 Current maturities of long-term debt $ 27 $ 22 Reserve for estimated losses on uncompleted contracts 10 6 Retainage payable 41 33 Income taxes payable 25 30 Value-added tax payable 36 33 Dividend payable 11 11 Other miscellaneous liabilities 36 44 Total other current liabilities $ 186 $ 179 |
Schedule of Impact of New Accounting Pronouncements | We recognized the cumulative effect of initially applying ASC Topic 606 for our unconsolidated affiliates as an adjustment to our assets and retained earnings in the balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 606 January 1, 2019 Assets Equity in and advances to unconsolidated affiliates $ 724 $ 29 $ 753 Shareholders' equity Retained Earnings 1,235 29 1,264 We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable $ 510 $ 157 $ 667 Contract assets 383 (191 ) 192 Other current assets 93 5 98 Equity in and advances to unconsolidated affiliates 365 87 452 Deferred income taxes 300 (6 ) 294 Other assets 124 1 125 Liabilities Contract liabilities 368 9 377 Deferred income from unconsolidated affiliates 101 (101 ) — Other liabilities 171 1 172 Equity Retained Earnings 854 144 998 The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows: Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Statement of Operations Revenues $ 4,913 $ 4,904 $ 9 Cost of revenues (4,329 ) (4,328 ) 1 Equity in earnings of unconsolidated affiliates 79 75 4 Income before income taxes and noncontrolling interests 396 384 12 Provision for income taxes (86 ) (85 ) 1 Net income 310 300 10 EPS Basic $ 1.99 $ 1.92 $ 0.07 Diluted $ 1.99 $ 1.91 $ 0.08 As of December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Assets Accounts receivable $ 927 $ 594 $ 333 Contract assets 185 496 (311 ) Other current assets 108 103 5 Equity in and advances to unconsolidated affiliates 724 716 8 Deferred income taxes 222 229 (7 ) Other assets 147 143 4 Liabilities Contract liabilities 463 479 (16 ) Deferred income taxes 27 28 (1 ) Deferred income from unconsolidated affiliates — 95 (95 ) Other liabilities 202 202 — Equity Retained earnings 1,235 1,080 155 Accumulated other comprehensive loss (910 ) (899 ) (11 ) Year Ended December 31, 2018 As Balances Without Effect of Change Dollars in millions Reported Adoption of ASC 606 Higher/(Lower) Cash flows from operating activities Net income $ 310 $ 300 $ 10 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of unconsolidated affiliates (79 ) (75 ) (4 ) Deferred income tax (benefit) expense 26 25 1 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable, net of allowances for doubtful accounts (203 ) 130 (333 ) Contract assets 25 (286 ) 311 Contract liabilities (60 ) (77 ) 17 Other assets and liabilities (7 ) (5 ) (2 ) Total cash flows used in operating activities 165 165 — We recognized the cumulative effect of initially applying ASC Topic 842 as an adjustment to our assets and liabilities in our consolidated balance sheet as of January 1, 2019, as follows: Balance at Adjustments Due to Balance at Dollars in millions December 31, 2018 ASC 842 January 1, 2019 Assets Operating lease right-of-use asset $ — $ 185 $ 185 Other current assets 108 (1 ) 107 Deferred income taxes 222 (7 ) 215 Liabilities Operating lease liabilities — 40 40 Other current liabilities 179 (5 ) 174 Operating lease liabilities (noncurrent) — 213 213 Other liabilities (noncurrent) 202 (92 ) 110 Shareholders' equity Retained Earnings 1,235 21 1,256 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, selling, general and administrative expenses, acquisition and integration related costs, gain on disposition of assets, gain on consolidation of Aspire entities and operating income (loss) by reporting segment. Operations by Reportable Segment Years ended December 31, Dollars in millions 2019 2018 2017 Revenues: Government Solutions $ 3,925 $ 3,457 $ 2,193 Technology Solutions 374 297 269 Energy Solutions 1,339 1,157 1,671 Subtotal 5,638 4,911 4,133 Non-strategic Business 1 2 38 Total $ 5,639 $ 4,913 $ 4,171 Gross profit (loss): Government Solutions $ 430 $ 350 $ 188 Technology Solutions 118 106 98 Energy Solutions 100 134 153 Subtotal 648 590 439 Non-strategic Business 5 (6 ) — Total $ 653 $ 584 $ 439 Equity in earnings of unconsolidated affiliates: Government Solutions $ 29 $ 32 $ 43 Technology Solutions — — — Energy Solutions 19 50 27 Subtotal 48 82 70 Non-strategic Business (13 ) (3 ) — Total $ 35 $ 79 $ 70 Selling, general and administrative expenses: Government Solutions $ (134 ) (109 ) (57 ) Technology Solutions (28 ) (24 ) (25 ) Energy Solutions (63 ) (64 ) (68 ) Other (116 ) (97 ) (94 ) Subtotal (341 ) (294 ) (244 ) Non-strategic Business — — — Total $ (341 ) (294 ) (244 ) Acquisition and integration related costs: Government Solutions $ (2 ) (7 ) — Technology Solutions — — — Energy Solutions — — — Other — — — Subtotal (2 ) (7 ) — Non-strategic Business — — — Total $ (2 ) (7 ) — Asset impairment and restructuring charges Government Solutions $ — $ — $ — Technology Solutions — — — Energy Solutions — — (6 ) Other — — — Subtotal — — (6 ) Non-strategic Business — — — Total $ — $ — $ (6 ) Years ended December 31, Dollars in millions 2019 2018 2017 Gain (loss) on disposition of assets: Government Solutions 12 4 — Technology Solutions — — — Energy Solutions — (2 ) 5 Other 5 (4 ) — Subtotal 17 (2 ) 5 Non-strategic Business — — — Total 17 (2 ) 5 Gain on consolidation of Aspire entities: Government Solutions — 113 — Technology Solutions — — — Energy Solutions — — — Other — (5 ) — Subtotal — 108 — Non-strategic Business — — — Total — 108 — Segment operating income (loss): Government Solutions $ 335 $ 383 $ 173 Technology Solutions 90 82 73 Energy Solutions 56 118 111 Other (111 ) (106 ) (93 ) Subtotal 370 477 264 Non-strategic Business (8 ) (9 ) — Total $ 362 $ 468 $ 264 Years ended December 31, Dollars in millions 2019 2018 2017 Capital expenditures: Government Solutions $ 7 $ 11 $ 4 Technology Solutions 1 — — Energy Solutions 3 1 2 Other 9 5 2 Subtotal 20 17 8 Non-strategic Business — — — Total $ 20 $ 17 $ 8 Depreciation and amortization: Government Solutions $ 58 $ 42 $ 27 Technology Solutions 6 3 3 Energy Solutions 21 10 10 Other 19 8 8 Subtotal 104 63 48 Non-strategic Business — — — Total $ 104 $ 63 $ 48 |
Schedule of Balance Sheet Information by Reportable Segment | December 31, Dollars in millions 2019 2018 Total assets: Government Solutions $ 2,749 $ 2,804 Technology Solutions 222 204 Energy Solutions 1,497 1,271 Other 889 746 Subtotal 5,357 5,025 Non-strategic Business 7 27 Total $ 5,364 $ 5,052 Goodwill (Note 11): Government Solutions $ 978 $ 977 Technology Solutions 50 51 Energy Solutions 237 237 Other — — Subtotal 1,265 1,265 Non-strategic Business — — Total $ 1,265 $ 1,265 Equity in and advances to related companies (Note 12): Government Solutions $ 151 $ 114 Technology Solutions — — Energy Solutions 699 610 Other — — Subtotal 850 724 Non-strategic Business — — Total $ 850 $ 724 |
Schedule of Selected Geographic Information | Years ended December 31, Dollars in millions 2019 2018 2017 Revenues: United States $ 2,705 $ 2,260 $ 1,986 Middle East 1,027 884 836 Europe 1,058 989 480 Australia 288 329 334 Canada 39 21 224 Africa 197 133 121 Asia 214 190 125 Other countries 111 107 65 Total $ 5,639 $ 4,913 $ 4,171 December 31, Dollars in millions 2019 2018 Property, plant & equipment, net: United States $ 50 $ 51 United Kingdom 44 50 Other 36 20 Total $ 130 $ 121 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by geographic destination was as follows: Year Ended December 31, 2019 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total United States $ 2,110 $ 38 $ 556 $ 1 $ 2,705 Middle East 795 15 217 — 1,027 Europe 796 71 191 — 1,058 Australia 93 1 194 — 288 Canada 1 1 37 — 39 Africa 76 31 90 — 197 Asia — 211 3 — 214 Other countries 54 6 51 — 111 Total net revenue $ 3,925 $ 374 $ 1,339 $ 1 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total United States $ 1,767 $ 22 $ 469 $ 2 $ 2,260 Middle East 735 14 135 — 884 Europe 766 50 173 — 989 Australia 60 1 268 — 329 Canada 1 2 18 — 21 Africa 77 25 31 — 133 Asia — 177 13 — 190 Other countries 51 6 50 — 107 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 Revenue by Service/Product line was as follows: Year Ended December 31, Dollars in millions 2019 2018 Government Solutions Space and Mission Solutions $ 874 $ 651 Engineering 1,158 1,141 Logistics 1,893 1,665 Subtotal 3,925 3,457 Technology Solutions 374 297 Energy Solutions EPC Delivery Solutions 438 432 Services and Consulting 901 725 Subtotal 1,339 1,157 Non-strategic business 1 2 Total net revenue $ 5,639 $ 4,913 Year Ended December 31, 2019 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total Fixed Price $ 1,111 $ 367 $ 240 $ 1 $ 1,719 Cost Reimbursable 2,814 7 1,099 — 3,920 Total net revenue $ 3,925 $ 374 $ 1,339 $ 1 $ 5,639 Year Ended December 31, 2018 Dollars in millions Government Solutions Technology Solutions Energy Solutions Non-strategic Business Total Fixed Price $ 1,031 $ 288 $ 187 $ 2 $ 1,508 Cost Reimbursable 2,426 9 970 — 3,405 Total net revenue $ 3,457 $ 297 $ 1,157 $ 2 $ 4,913 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Information | The following supplemental pro forma condensed consolidated results of operations assume that SGT and the Aspire Defence subcontracting entities had been acquired as of January 1, 2017. The supplemental pro forma information was prepared based on the historical financial information of SGT and the Aspire Defence subcontracting entities and has been adjusted to give effect to pro forma adjustments that are both directly attributable to the transaction and factually supportable. Pro forma adjustments were primarily related to the amortization of intangibles, interest on borrowings related to the acquisitions and the reclassification of the gain on consolidation of the Aspire entities to January 1, 2017. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisitions occurred on January 1, 2017, nor is it indicative of future results of operations. Year ended December 31, Dollars in millions 2018 2017 (Unaudited) Revenue $ 5,060 $ 5,057 Net income attributable to KBR 367 342 Diluted earnings per share $ 2.59 $ 2.41 |
Cash and Equivalents (Tables)
Cash and Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Equivalents | The components of our cash and equivalents balance are as follows: December 31, 2019 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 187 $ 114 $ 301 Short-term investments (c) 58 93 151 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 259 1 260 Total $ 504 $ 208 $ 712 December 31, 2018 Dollars in millions International (a) Domestic (b) Total Operating cash and equivalents $ 123 $ 104 $ 227 Short-term investments (c) 87 107 194 Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 315 3 318 Total $ 525 $ 214 $ 739 (a) Includes deposits held in non-U.S. operating accounts. (b) Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds, and other highly liquid short-term investments. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The components of our accounts receivable, net of allowance for doubtful accounts, are as follows: December 31, 2019 Dollars in millions Unbilled Trade & Other Total Government Solutions $ 184 $ 381 $ 565 Technology Solutions 6 56 62 Energy Solutions 118 192 310 Subtotal 308 629 937 Non-strategic Business — 1 1 Total $ 308 $ 630 $ 938 December 31, 2018 Dollars in millions Unbilled Trade & Other Total Government Solutions $ 266 $ 334 $ 600 Technology Solutions 11 62 73 Energy Solutions 69 185 254 Subtotal 346 581 927 Non-strategic Business — — — Total $ 346 $ 581 $ 927 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | Our contract assets by business segment are as follows: December 31, Dollars in millions 2019 2018 Government Solutions $ 111 $ 123 Technology Solutions 36 19 Energy Solutions 68 43 Subtotal 215 185 Non-strategic Business — — Total $ 215 $ 185 Our contract liabilities balances by business segment are as follows: December 31, Dollars in millions 2019 2018 Government Solutions $ 261 $ 261 Technology Solutions 73 98 Energy Solutions 147 100 Subtotal 481 459 Non-strategic Business 3 4 Total $ 484 $ 463 |
Unapproved Change Orders and _2
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Schedule of Unapproved Change Orders and Claims | The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2019 2018 Amounts included in project estimates-at-completion at January 1, $ 973 $ 924 Increase, net of foreign currency effect 12 53 Approved change orders, net of foreign currency effect (7 ) (4 ) Amounts included in project estimates-at-completion at December 31, $ 978 $ 973 Amounts recognized over time based on progress at December 31, $ 974 $ 945 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Land N/A $ 5 $ 5 Buildings and property improvements 1-35 124 122 Equipment and other 1-25 387 349 Total 516 476 Less accumulated depreciation (386 ) (355 ) Net property, plant and equipment $ 130 $ 121 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segments | The table below summarizes changes in the carrying amount of goodwill by business segment. Dollars in millions Government Solutions Technology Solutions Energy Solutions Total Balance as of January 1, 2018 $ 679 $ 51 $ 238 $ 968 Goodwill acquired during the period 299 — — 299 Purchase price adjustment 2 — — 2 Foreign currency translation (3 ) — (1 ) (4 ) Balance as of December 31, 2018 $ 977 $ 51 $ 237 $ 1,265 Goodwill acquired during the period $ — $ — $ — Purchase price adjustment — — — — Foreign currency translation 1 (1 ) — — Balance as of December 31, 2019 $ 978 $ 50 $ 237 $ 1,265 |
Cost and Accumulated Amortization of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 31, 2019 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 16 271 (83 ) 188 Developed technologies 22 68 (36 ) 32 Contract backlog 19 255 (52 ) 203 Other 14 24 (13 ) 11 Total intangible assets $ 679 $ (184 ) $ 495 December 31, 2018 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 61 $ — $ 61 Customer relationships 17 272 (69 ) 203 Developed technologies 22 61 (34 ) 27 Contract backlog 20 249 (36 ) 213 Other 14 24 (12 ) 12 Total intangible assets $ 667 $ (151 ) $ 516 |
Amortization Expense of Intangible Assets | Our intangibles amortization expense is presented below: Years ended December 31, Dollars in millions 2019 2018 2017 Intangibles amortization expense $ 33 $ 32 $ 21 |
Expected Amortization Expense of Intangibles | Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future intangibles amortization expense 2020 $ 32 2021 $ 28 2022 $ 23 2023 $ 23 2024 $ 23 Beyond 2024 $ 304 |
Equity Method Investments and_2
Equity Method Investments and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity In Earnings of Unconsolidated Affiliates | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Dollars in millions 2019 2018 Beginning balance at January 1, $ 724 $ 365 Cumulative effect of change in accounting policy (a) 29 87 Adjusted balance at January 1, 753 452 Equity in earnings of unconsolidated affiliates 35 79 Distributions of earnings of unconsolidated affiliates (69 ) (75 ) Payments from (advances to) unconsolidated affiliates, net (10 ) (12 ) Investments (b) 146 344 Foreign currency translation adjustments (7 ) (28 ) Other 2 (36 ) Balance at December 31, $ 850 $ 724 (a) At January 1, 2018, deferred construction income in the amount of $87 million previously recorded in "Equity in and advance to unconsolidated affiliates" was reversed and included in the cumulative effect adjustment as a result of the early adoption of ASC 606 by the Aspire Defence project joint ventures. At January 1, 2019, we recognized a cumulative effect adjustment of $29 million as a result of the adoption of ASC 606 by our remaining unconsolidated project joint ventures. (b) Investments include $141 million and $344 million in funding contributions to JKC for the years ended December 31, 2019 and 2018, respectively. |
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 2019 2018 Current assets $ 3,072 $ 3,526 Noncurrent assets 3,219 3,121 Total assets $ 6,291 $ 6,647 Current liabilities $ 949 $ 1,277 Noncurrent liabilities 2,922 3,212 Total liabilities $ 3,871 $ 4,489 Statements of Operations Years ended December 31, Dollars in millions 2019 2018 2017 Revenues $ 2,592 $ 3,190 $ 5,781 Operating income $ 92 $ 197 $ 278 Net income $ 48 $ 173 $ 145 The following summarizes the total assets and total liabilities as reflected in our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 31, 2019 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 14 $ 10 Aspire Defence Limited $ 67 $ 5 JKC joint venture (Ichthys LNG project) $ 546 $ 29 U.K. Road project joint ventures $ 40 $ 21 Middle East Petroleum Corporation (EBIC Ammonia project) $ 47 $ 1 Dollars in millions December 31, 2018 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 16 $ 8 Aspire Defence Limited $ 68 $ 5 JKC joint venture (Ichthys LNG project) $ 427 $ 32 U.K. Road project joint ventures $ 37 $ 10 Middle East Petroleum Corporation (EBIC Ammonia project) $ 51 $ 1 |
Schedule of Services Provided to Unconsolidated JV's | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures for the years ended December 31, 2019 and 2018 are as follows: December 31, Dollars in millions 2019 2018 Accounts receivable, net of allowance for doubtful accounts $ 49 $ 43 Contract assets (a) $ 2 $ 1 Contract liabilities (a) $ 33 $ 38 Accounts payable $ — $ 2 (a) Reflects contract assets and contract liabilities primarily related to joint ventures within our ES business segment. |
Summary of Significant VIEs | The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 31, 2019 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ — $ 17 Fasttrax Limited (Fasttrax project) $ 45 $ 24 Aspire Defence subcontracting entities (Aspire Defence project) $ 530 $ 283 Dollars in millions December 31, 2018 Total Assets Total Liabilities KJV-G joint venture (Gorgon LNG project) $ 13 $ 19 Fasttrax Limited (Fasttrax project) $ 49 $ 34 Aspire Defence subcontracting entities (Aspire Defence project) $ 589 $ 324 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Projected Benefit Obligations | Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. United States Int’l United States Int’l Dollars in millions 2019 2018 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ 71 $ 1,751 $ 77 $ 2,046 Acquisitions — — — 24 Service cost — 2 — 2 Interest cost 3 50 2 50 Foreign currency exchange rate changes — 46 — (114 ) Actuarial (gain) loss 7 214 (4 ) (184 ) Other — (1 ) — — Plan amendments — — — 20 Benefits paid (5 ) (74 ) (4 ) (93 ) Projected benefit obligations at end of period $ 76 $ 1,988 $ 71 $ 1,751 Change in plan assets: Fair value of plan assets at beginning of period $ 54 $ 1,518 $ 59 $ 1,673 Acquisitions — — — 24 Actual return on plan assets 10 200 (3 ) (28 ) Employer contributions 2 43 2 39 Foreign currency exchange rate changes — 41 — (96 ) Benefits paid (5 ) (74 ) (4 ) (93 ) Other (1 ) (1 ) — (1 ) Fair value of plan assets at end of period $ 60 $ 1,727 $ 54 $ 1,518 Funded status $ (16 ) $ (261 ) $ (17 ) $ (233 ) |
Schedule of Amounts Recognized on Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2019 2018 Amounts recognized on the consolidated balance sheets Pension obligations $ (16 ) $ (261 ) $ 17 $ 233 |
Components of Net Periodic Benefit Cost | Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2019 2018 2017 Components of net periodic benefit cost Service cost $ — $ 2 $ — $ 2 $ — $ 1 Interest cost 3 50 2 50 3 53 Expected return on plan assets (3 ) (77 ) (3 ) (80 ) (3 ) (77 ) Prior service cost amortization — 1 — — — — Recognized actuarial loss 2 16 2 26 1 30 Net periodic benefit cost $ 2 $ (8 ) $ 1 $ (2 ) $ 1 $ 7 |
Schedule of Accumulated Other Comprehensive Loss | The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2019 and 2018 , net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2019 2018 Unrecognized actuarial loss, net of tax of $9 and $215, $10 and $203, respectively $ 22 $ 632 $ 23 $ 569 Total in accumulated other comprehensive loss $ 22 $ 632 $ 23 $ 569 |
Schedule of Accumulated Other Comprehensive Income to be Amortized into Net Periodic Benefit Cost | Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2020 are as follows: Dollars in millions United States Int’l Actuarial loss $ 1 $ 19 Total $ 1 $ 19 |
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 2019 2018 2017 Discount rate 3.98 % 2.90 % 3.33 % 2.50 % 3.73 % 2.60 % Expected return on plan assets 6.09 % 5.09 % 6.01 % 5.20 % 6.01 % 5.40 % Weighted-average assumptions used to determine benefit obligations at measurement date United States Int'l United States Int'l 2019 2018 Discount rate 2.89 % 2.05 % 3.98 % 2.90 % |
Schedule of Allocation of Plan Assets | The range of targeted asset allocations for our U.S. plans for 2020 and 2019 , by asset class, are as follows: Domestic Plans 2020 Targeted 2019 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 68 % 50 % 53 % Fixed income funds and securities 31 % 47 % 37 % 40 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 9 % 9 % A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2019 United States plan assets Investments measured at net asset value (a) $ 59 $ — $ — $ — Cash and equivalents 1 1 — — Total United States plan assets $ 60 $ 1 $ — $ — International plan assets Equities $ 103 $ — $ — $ 103 Fixed income 1 — — 1 Real estate 2 — — 2 Cash and cash equivalents 2 2 — — Other 87 44 — 43 Investments measured at net asset value (a) 1,532 — — — Total international plan assets $ 1,727 $ 46 $ — $ 149 Total plan assets at December 31, 2019 $ 1,787 $ 47 $ — $ 149 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2018 United States plan assets Investments measured at net asset value (a) $ 54 $ — $ — $ — Total United States plan assets $ 54 $ — $ — $ — International plan assets Equities $ 84 $ — $ — $ 84 Fixed income 2 — — 2 Real estate 1 — — 1 Cash and cash equivalents 8 8 — — Other 74 35 — 39 Investments measured at net asset value (a) 1,349 — — — Total international plan assets $ 1,518 $ 43 $ — $ 126 Total plan assets at December 31, 2018 $ 1,572 $ 43 $ — $ 126 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The target asset allocation for our U.S. and International plans for 2020 is as follows: Asset Allocation 2020 Targeted United States Int'l Equity funds and securities 51 % 22 % Fixed income funds and securities 39 % 54 % Hedge funds — % 7 % Real estate funds 1 % 3 % Other 9 % 14 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2020 and 2019 , by asset class, are as follows: International Plans 2020 Targeted 2019 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 1 % 50 % 1 % 60 % Fixed income funds and securities 35 % 100 % — % 99 % Hedge funds — % 22 % — % 34 % Real estate funds — % 20 % — % 10 % Other — % 42 % — % 20 % |
Schedule of Fair Value Measurement of Plan Assets | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2017 $ 74 $ 26 $ 5 $ 3 $ 40 Return on assets held at end of year (3 ) 1 — (1 ) (3 ) Return on assets sold during the year 8 — — 1 7 Purchases, sales and settlements 39 11 (3 ) (2 ) 33 Transfers 13 48 — — (35 ) Foreign exchange impact (5 ) (2 ) — — (3 ) Balance as of December 31, 2018 $ 126 $ 84 $ 2 $ 1 $ 39 Return on assets held at end of year 8 10 — — (2 ) Return on assets sold during the year 1 — — 1 — Purchases, sales and settlements, net 11 7 (1 ) — 5 Transfers — — — 48,000,000 — 48 — Foreign exchange impact 3 2 — — 1 Balance as of December 31, 2019 $ 149 $ 103 $ 1 $ 2 $ 43 |
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 2020 $ 5 $ 57 2021 $ 5 $ 59 2022 $ 5 $ 60 2023 $ 5 $ 61 2024 $ 5 $ 63 Years 2025 - 2029 $ 24 $ 333 |
Debt and Other Credit Facilit_2
Debt and Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our outstanding debt consisted of the following at the dates indicated: Dollars in millions December 31, 2019 December 31, 2018 Term Loan A 176 190 Term Loan B 756 796 Convertible Notes 350 350 Unamortized debt issuance costs - Term Loan A (4 ) (5 ) Unamortized debt issuance costs and discount - Term Loan B (15 ) (18 ) Unamortized debt issuance costs and discount - Convertible Notes (53 ) (65 ) Total long-term debt 1,210 1,248 Less: current portion 27 22 Total long-term debt, net of current portion $ 1,183 $ 1,226 Revolver and Term Loan A Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Performance Letter of Credit Fee Commitment Fee Greater than or equal to 4.00 to 1.00 3.25 % 2.25 % 1.95 % 0.450 % Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 3.00 % 2.00 % 1.80 % 0.400 % Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 2.75 % 1.75 % 1.65 % 0.375 % Less than 2.00 to 1.00 2.50 % 1.50 % 1.50 % 0.350 % |
Summary of Combined Principal Installments for Both Classes of Bonds and Subordinated Notes | The following table summarizes the combined principal installments for both classes of bonds and subordinated notes, including inflation adjusted bond indexation over the next five years and beyond as of December 31, 2019 : Dollars in millions Payments Due 2020 $ 11 2021 $ 5 2022 $ 1 2023 $ 1 2024 $ — Beyond 2024 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax | The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 United States $ 2 $ 44 $ 84 Foreign: United Kingdom 105 203 40 Australia 15 7 (30 ) Canada 3 (2 ) 15 Middle East 87 61 42 Africa 5 13 20 Other 51 70 76 Subtotal 266 352 163 Total $ 268 $ 396 $ 247 |
Summary of Taxes on Financial Statements | The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 (Provision) Benefit for income taxes $ (59 ) $ (86 ) $ 193 Shareholders' equity, foreign currency translation adjustment 1 (2 ) 6 Shareholders' equity, pension and post-retirement benefits 11 (14 ) (27 ) Shareholders' equity, changes in fair value of derivatives 2 3 — Total income taxes $ (45 ) $ (99 ) $ 172 |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year-ended December 31, 2019 Federal $ (4 ) $ 15 $ 11 Foreign (67 ) 1 (66 ) State and other (2 ) (2 ) (4 ) (Provision) benefit for income taxes $ (73 ) $ 14 $ (59 ) Year-ended December 31, 2018 Federal $ (1 ) $ (6 ) $ (7 ) Foreign (56 ) (20 ) (76 ) State and other (2 ) (1 ) (3 ) Provision for income taxes $ (59 ) $ (27 ) $ (86 ) Year-ended December 31, 2017 Federal $ (6 ) $ 230 $ 224 Foreign (122 ) 92 (30 ) State and other (2 ) 1 (1 ) (Provision) benefit for income taxes $ (130 ) $ 323 $ 193 |
Components of Foreign Income Tax Provision | The components of our total foreign income tax provision were as follows: Years ended December 31, Dollars in millions 2019 2018 2017 United Kingdom $ (19 ) $ (32 ) $ (7 ) Australia (6 ) (8 ) 6 Canada (1 ) (6 ) — Middle East (20 ) (16 ) (10 ) Africa (1 ) (1 ) 1 Other (19 ) (13 ) (20 ) Foreign provision for income taxes $ (66 ) $ (76 ) $ (30 ) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% for 2019 and 2018 and the statutory rate of 35% for 2017 as a result of the following: Years ended December 31, 2019 2018 2017 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 35 % Increase (reduction) in tax rate from: Tax impact from foreign operations 7 — (5 ) Noncontrolling interests and equity earnings — (1 ) (2 ) State and local income taxes, net of federal benefit 2 1 1 Other permanent differences, net 3 — (8 ) Contingent liability accrual 1 3 (2 ) U.S. taxes on foreign unremitted earnings 3 — — Change in valuation allowance (10 ) (2 ) (90 ) Research and development credits, net of provision (5 ) — — U.S. tax reform — — (7 ) Effective tax rate on income from operations 22 % 22 % (78 )% |
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 2019 2018 Deferred tax assets: Employee compensation and benefits $ 103 $ 95 Foreign tax credit carryforwards 257 267 Loss carryforwards 96 103 Insurance accruals 7 9 Allowance for bad debt 2 2 Accrued liabilities 63 23 Construction contract accounting — — Other 4 3 Total gross deferred tax assets 532 502 Valuation allowances (200 ) (207 ) Net deferred tax assets 332 295 Deferred tax liabilities: Construction contract accounting (6 ) (1 ) Intangible amortization (56 ) (57 ) Indefinite-lived intangible amortization (49 ) (41 ) Fixed asset depreciation 2 1 Accrued foreign tax credit carryforwards (3 ) (2 ) Total gross deferred tax liabilities (112 ) (100 ) Deferred income tax (liabilities) assets, net $ 220 $ 195 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2019 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 370 $ (156 ) $ 214 United Kingdom (6 ) — (6 ) Australia 12 — 12 Canada 23 (22 ) 1 Other 21 (22 ) (1 ) Total $ 420 $ (200 ) $ 220 |
Summary of Operating Loss Carryforwards | At December 31, 2019 , the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 31, 2019 Expiration Foreign tax credit carryforwards $ 257 2020-2029 Foreign net operating loss carryforwards $ 150 2020-2039 Foreign net operating loss carryforwards $ 34 Indefinite State net operating loss carryforwards $ 1,024 Various |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2019 2018 2017 Balance at January 1, $ 90 $ 184 $ 261 Increases related to current year tax positions 2 1 2 Increases related to prior year tax positions 7 18 1 Decreases related to prior year tax positions — (45 ) (1 ) Settlements — (62 ) (80 ) Lapse of statute of limitations (1 ) (2 ) (1 ) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions (1 ) (4 ) 2 Balance at December 31, $ 97 $ 90 $ 184 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Leasing Activity | The components of lease costs for the year ended December 31, 2019 were as follows: December 31, Dollars in millions 2019 Operating lease cost $ 54 Short-term lease cost 121 Total lease cost $ 175 Operating lease cost for the year ended ended December 31, 2019 includes operating lease ROU asset amortization of $38 million and other noncash operating lease costs of $16 million related to the accretion of operating lease liabilities and straight-line lease accounting. Total rent expense on our operating leases under the previous lease standard were $144 million and $139 million for the years ended December 31, 2018 and 2017, respectively. Total short-term lease commitments as of December 31, 2019 was approximately $77 million . Additional information related to leases was as follows: December 31, Dollars in millions 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 56 Right-of-use assets obtained in exchange for new operating lease liabilities $ 20 Weighted-average remaining lease term-operating (in years) 8.0 Weighted-average discount rate-operating leases 7.6 % |
Schedule of Lease Maturity | The following is a maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of December 31, 2019 : Year Dollars in millions 2020 2021 2022 2023 2024 Thereafter Total Future payments - operating leases $ 54 $ 44 $ 37 $ 33 $ 25 $ 119 $ 312 Dollars in millions Operating Leases Total future payments $ 312 Less imputed interest (81 ) Present value of future lease payments $ 231 Less current portion of lease obligations (39 ) Noncurrent portion of lease obligations $ 192 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of 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, 2016 $ 725 $ 2,088 $ 467 $ (769 ) $ (1,049 ) $ (12 ) Acquisition of noncontrolling interest (8 ) (8 ) — — — — Share-based compensation 12 12 — — — — Dividends declared to shareholders ($0.32/share) (45 ) — (45 ) — — — Repurchases of common stock (53 ) — — (53 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (4 ) — — — — (4 ) Other noncontrolling interests activity (1 ) — — — — (1 ) Net income 440 — 432 — — 8 Other comprehensive income, net of tax 127 — — — 127 — Balance at December 31, 2017 $ 1,197 $ 2,091 $ 854 $ (818 ) $ (922 ) $ (8 ) Cumulative effect of change in accounting policy, net of tax (Note 1) 144 — 144 — — — Adjusted balance at January 1, 2018 1,341 2,091 998 (818 ) (922 ) (8 ) Acquisition of noncontrolling interest 69 69 — — — — Share-based compensation 10 10 — — — — Tax benefit decrease related to share-based plans 1 1 — — — — Common stock issued upon exercise of stock options 2 2 — — — — Dividends declared to shareholders ($0.32/share) (44 ) — (44 ) — — — Repurchases of common stock (3 ) — — (3 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Issuance of convertible debt and call spread overlay 18 18 — — — — Distributions to noncontrolling interests (3 ) — — — — (3 ) Other noncontrolling interests activity 2 — — — — 2 Net income 310 — 281 — — 29 Other comprehensive income, net of tax 12 — — — 12 — Balance at December 31, 2018 $ 1,718 $ 2,190 $ 1,235 $ (817 ) $ (910 ) $ 20 Cumulative adjustment for the adoption of ASC 842, net of tax (Note 1) 21 — 21 — — — Cumulative adjustment for the adoption of ASC 606 for our unconsolidated affiliates, net of tax (Note 1) 29 — 29 — — — Adjusted balance at January 1, 2019 1,768 2,190 1,285 (817 ) (910 ) 20 Share-based compensation 12 12 — — — — Common stock issued upon exercise of stock options 5 5 — — — — Dividends declared to shareholders ($0.32/share) (46 ) — (46 ) — — — Repurchases of common stock (4 ) — — (4 ) — — Issuance of ESPP shares 3 (1 ) — 4 — — Investments by noncontrolling interests 1 — — — — 1 Distributions to noncontrolling interests (14 ) — — — — (14 ) Net income 209 — 202 — — 7 Other comprehensive income (loss), net of tax (77 ) — — — (77 ) — Balance at December 31, 2019 $ 1,857 $ 2,206 $ 1,441 $ (817 ) $ (987 ) $ 14 |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2017 $ (259 ) $ (660 ) $ (3 ) $ (922 ) Other comprehensive income adjustments before reclassifications (51 ) 44 (20 ) (27 ) Amounts reclassified from AOCL 6 24 9 39 Net other comprehensive income (loss) (45 ) 68 (11 ) 12 Balance at December 31, 2018 $ (304 ) $ (592 ) $ (14 ) $ (910 ) Other comprehensive income adjustments before reclassifications (3 ) (76 ) (14 ) (93 ) Amounts reclassified from AOCL (8 ) 14 10 16 Net other comprehensive income (loss) (11 ) (62 ) (4 ) (77 ) Balance at December 31, 2019 $ (315 ) $ (654 ) $ (18 ) $ (987 ) AOCL, net of tax December 31, Dollars in millions 2019 2018 2017 Accumulated foreign currency translation adjustments, net of tax of $3, $2 and $4 $ (315 ) $ (304 ) $ (259 ) Pension and post-retirement benefits, net of tax of $224, $213 and $227 (654 ) (592 ) (660 ) Fair value of derivatives, net of tax of $5, $3 and $0 (18 ) (14 ) (3 ) Total accumulated other comprehensive loss $ (987 ) $ (910 ) $ (922 ) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCL, net of tax, by component Dollars in millions December 31, 2019 December 31, 2018 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments 8 $ (6 ) Gain (loss) on disposition of assets and Gain on consolidation of Aspire entities, respectively Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 8 $ (6 ) Accumulated pension liability adjustments Amortization of actuarial loss (a) $ (17 ) $ (28 ) See (a) below Tax benefit 3 4 Provision for income taxes Net pension and post-retirement benefits $ (14 ) $ (24 ) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ (10 ) $ (9 ) Other non-operating income (loss) Tax benefit — — Provision for income taxes Net changes in fair value of derivatives $ (10 ) $ (9 ) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 13 to our consolidated financial statements for further discussion. |
Shares of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2017 176.6 Common stock issued 0.8 Balance at December 31, 2018 177.4 Common stock issued 0.9 Balance at December 31, 2019 178.3 |
Shares of Treasury Stock | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2017 36.5 $ 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 $ 817 The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2017 36.5 $ 818 Treasury stock acquired, net of ESPP shares issued — (1 ) Balance at December 31, 2018 36.5 817 Treasury stock acquired, net of ESPP shares issued — — Balance at December 31, 2019 36.5 $ 817 The table below presents information on our annual share repurchases activity under these programs: Year ending December 31, 2019 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 194,124 20.59 4 Total 194,124 $ 20.59 $ 4 Year ending December 31, 2018 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program — $ — $ — Repurchases under the existing share maintenance program — — — Withheld to cover shares 175,469 15.81 3 Total 175,469 $ 15.81 $ 3 |
Share-based Compensation and _2
Share-based Compensation and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table presents stock options granted, exercised, forfeited and expired under KBR share-based compensation plans for the year ended December 31, 2019 . 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, 2018 2,090,519 $ 24.34 3.88 $ 0.83 Granted — — Exercised (289,942 ) 16.26 Forfeited — — Expired (197,990 ) 16.68 Outstanding at December 31, 2019 1,602,587 $ 26.74 3.33 $ 0.87 Exercisable at December 31, 2019 1,601,297 $ 26.73 3.33 $ 0.87 |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2019 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, 2018 1,136,791 $ 15.32 Granted 802,025 19.01 Vested (675,366 ) 15.92 Forfeited (33,405 ) 16.44 Nonvested shares at December 31, 2019 1,230,045 $ 17.37 |
Summary of Stock-Based Compensation | Share-based compensation summary table Years ended December 31, Dollars in millions 2019 2018 2017 Share-based compensation $ 12 $ 10 $ 12 Income tax benefit recognized in net income for share-based compensation $ 3 $ 2 $ 4 Incremental compensation cost $ — $ 1 $ — |
Income per Share (Tables)
Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Weighted Average Common Shares Outstanding | A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows: Years ended December 31, Shares in millions 2019 2018 2017 Basic weighted average common shares outstanding 141 140 141 Stock options, restricted shares, and convertible debt 1 1 — Diluted weighted average common shares outstanding 142 141 141 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Recognized Changes in Fair Value of Balance Sheet Hedges Offset by Remeasurement of Balance Sheet positions | The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income (loss)" on our consolidated statements of operations. Years ended December 31, Gains (losses) dollars in millions 2019 2018 Balance Sheet Hedges - Fair Value $ 1 $ — Balance Sheet Position - Remeasurement 3 (9 ) Net $ 4 $ (9 ) |
Impact on Previously Issued F_2
Impact on Previously Issued Financial Statements for the Correction of an Error (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | In order to correctly present the errors noted above, previously issued financials statements have been revised and are presented as “As Corrected” in the table below. Three Months Ended December 31, 2018 Revised Consolidated Statement of Operations Amounts ( Unaudited ) : As Previously Reported Adjustments As Corrected Equity in earnings of unconsolidated affiliates $ 27 $ 2 $ 29 Operating income $ 88 $ 2 $ 90 Net income $ 49 $ 4 $ 53 Net income attributable to KBR $ 43 $ 4 $ 47 Net income attributable to KBR per share: Basic $ 0.31 $ 0.02 $ 0.33 Diluted $ 0.31 $ 0.02 $ 0.33 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is presented in the following table. In the following table, the sum of basic and diluted “Net income attributable to KBR per share” for the four quarters may differ from the annual amounts due to the required method of computing weighted average number of shares in the respective periods. Additionally, due to the effect of rounding, the sum of the individual quarterly earnings per share amounts may not equal the calculated year earnings per share amount. (Dollars in millions, except per share amounts) First Second Third Fourth Year 2019 Total revenues $ 1,340 $ 1,422 $ 1,425 $ 1,452 $ 5,639 Gross profit 153 160 169 171 653 Equity in earnings of unconsolidated affiliates — 15 9 11 35 Operating income 78 92 104 88 362 Net income 42 50 58 59 209 Net income attributable to noncontrolling interests (2 ) (2 ) (2 ) (1 ) (7 ) Net income attributable to KBR 40 48 56 58 202 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.28 $ 0.34 $ 0.39 $ 0.41 $ 1.42 Net income attributable to KBR per share—Diluted $ 0.28 $ 0.34 $ 0.39 $ 0.40 $ 1.41 (Dollars in millions, except per share amounts) First Second Third Fourth Year 2018 Total revenues $ 1,038 $ 1,267 $ 1,278 $ 1,330 $ 4,913 Gross profit 117 161 149 157 584 Equity in earnings of unconsolidated affiliates 21 12 17 29 79 Operating income (a) 179 100 99 90 468 Net income 137 64 56 53 310 Net income attributable to noncontrolling interests (1 ) (20 ) (2 ) (6 ) (29 ) Net income attributable to KBR 136 44 54 47 281 Net income attributable to KBR per share: Net income attributable to KBR per share—Basic $ 0.96 $ 0.31 $ 0.38 $ 0.33 $ 1.99 Net income attributable to KBR per share—Diluted $ 0.96 $ 0.31 $ 0.38 $ 0.33 $ 1.99 (a) Operating income includes gain on consolidation of Aspire entities of $108 million that occurred in the first quarter of 2018. |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amount reclassified from cost of revenues to SG&A | $ 128,000,000 | $ 97,000,000 | |||
Number of reportable segments | segment | 5 | ||||
Accounts receivable derecognized | 14,000,000 | ||||
Intangible assets | $ 495,000,000 | 516,000,000 | |||
Impairment of intangible assets, finite-lived | $ 0 | ||||
Period in years that unrecognized actuarial net gains (losses) are being recognized | 25 years | ||||
Period of recognition (no greater than) | 5 years | ||||
Noncurrent refundable income taxes | $ 92,000,000 | 84,000,000 | |||
Deferred rent | 92,000,000 | ||||
Operating lease, liability | 231,000,000 | ||||
Cumulative effect of change in accounting policy | $ 50,000,000 | $ 144,000,000 | |||
Deferred income taxes | 222,000,000 | 215,000,000 | |||
Equity in and advances to unconsolidated affiliates | 850,000,000 | 724,000,000 | 452,000,000 | ||
Other Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Noncurrent refundable income taxes | $ 98,000,000 | $ 98,000,000 | |||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite lived intangible assets useful lives | 1 year | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite lived intangible assets useful lives | 25 years | ||||
Accounting Standards Update 2016-02 | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred rent | 68,000,000 | ||||
Operating lease, liability | 253,000,000 | ||||
Cumulative effect of change in accounting policy | 21,000,000 | ||||
Deferred income taxes | 7,000,000 | ||||
Accounting Standards Update 2014-09 | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cumulative effect of change in accounting policy | 29,000,000 | ||||
Deferred income from unconsolidated affiliates | 101,000,000 | ||||
Equity in and advances to unconsolidated affiliates | 87,000,000 | ||||
Retained Earnings | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cumulative effect of change in accounting policy | $ 144,000,000 | ||||
Retained Earnings | Accounting Standards Update 2016-02 | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cumulative effect of change in accounting policy | 21,000,000 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cumulative effect of change in accounting policy | $ 29,000,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Business Reorganization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of revenues | $ (4,986) | $ (4,329) | $ (3,732) |
Selling, general and administrative expenses | (294) | (244) | |
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of revenues | (4,457) | (3,829) | |
Selling, general and administrative expenses | $ (166) | $ (147) |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule of Revenue and Receivables from Major Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 5,639 | $ 4,913 | $ 4,171 |
U.S. government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 3,014 | $ 2,610 | $ 1,914 | ||||||||
Revenue percentage | 53.00% | 53.00% | 46.00% | ||||||||
Receivables percentage | 52.00% | 57.00% | 32.00% | ||||||||
U.K. government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 659 | $ 622 | $ 66 | ||||||||
Revenue percentage | 12.00% | 13.00% | 2.00% | ||||||||
Receivables percentage | 5.00% | 4.00% | 1.00% |
Significant Accounting Polici_7
Significant Accounting Policies (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Accounting Policies [Abstract] | |||
Prepaid expenses | $ 65 | $ 49 | |
Value-added tax receivable | 37 | 29 | |
Advances to subcontractors | 20 | 5 | |
Other miscellaneous assets | 24 | 25 | |
Total other current assets | $ 146 | $ 108 | $ 98 |
Significant Accounting Polici_8
Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Current maturities of long-term debt | $ 27 | $ 22 | |
Reserve for estimated losses on uncompleted contracts | 10 | 6 | |
Retainage payable | 41 | 33 | |
Income taxes payable | 25 | 30 | |
Value-added tax payable | 36 | 33 | |
Dividend payable | 11 | 11 | |
Other miscellaneous liabilities | 36 | 44 | |
Total other current liabilities | $ 186 | $ 174 | $ 179 |
Significant Accounting Polici_9
Significant Accounting Policies (Schedule of Impact of New Accounting Pronouncements) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Assets | ||||
Operating lease right-of-use asset | $ 175 | $ 185 | $ 0 | |
Other current assets | 107 | 108 | ||
Deferred income taxes | 215 | 222 | ||
Equity in and advances to unconsolidated affiliates | 850 | 724 | $ 452 | |
Liabilities | ||||
Operating lease liabilities | 39 | 40 | 0 | |
Other current liabilities | 186 | 174 | 179 | |
Operating lease liabilities (noncurrent) | 192 | 213 | 0 | |
Other liabilities (noncurrent) | 124 | 110 | 202 | 172 |
Shareholders' equity | ||||
Retained Earnings | $ 1,441 | 1,256 | $ 1,235 | $ 998 |
Adjustments Due to Topic 842 | ||||
Assets | ||||
Operating lease right-of-use asset | 185 | |||
Other current assets | (1) | |||
Deferred income taxes | 7 | |||
Liabilities | ||||
Operating lease liabilities | 40 | |||
Other current liabilities | (5) | |||
Operating lease liabilities (noncurrent) | 213 | |||
Other liabilities (noncurrent) | (92) | |||
Shareholders' equity | ||||
Retained Earnings | $ 21 |
Significant Accounting Polic_10
Significant Accounting Policies (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||||
Accounts receivable | $ 938 | $ 927 | $ 667 | ||
Contract assets | 185 | 192 | |||
Other current assets | 146 | 108 | 98 | ||
Equity in and advances to unconsolidated affiliates | 850 | 724 | 452 | ||
Deferred income taxes | 236 | 222 | 294 | ||
Other assets | 143 | 147 | 125 | ||
Liabilities | |||||
Contract liabilities | 484 | 463 | 377 | ||
Deferred income taxes | 16 | 27 | |||
Deferred income from unconsolidated affiliates | 0 | 0 | |||
Other liabilities | 124 | $ 110 | 202 | 172 | |
Equity | |||||
Retained earnings | 1,441 | 1,256 | 1,235 | 998 | |
Accumulated other comprehensive loss | $ (987) | (910) | $ (922) | ||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||
Assets | |||||
Accounts receivable | 594 | 510 | |||
Contract assets | 496 | 383 | |||
Other current assets | 103 | 93 | |||
Equity in and advances to unconsolidated affiliates | 716 | 365 | |||
Deferred income taxes | 229 | 300 | |||
Other assets | 143 | 124 | |||
Liabilities | |||||
Contract liabilities | 479 | 368 | |||
Deferred income taxes | 28 | ||||
Deferred income from unconsolidated affiliates | 95 | 101 | |||
Other liabilities | 202 | 171 | |||
Equity | |||||
Retained earnings | 1,080 | $ 854 | |||
Accumulated other comprehensive loss | (899) | ||||
Adjustments Due to Topic 606 | |||||
Assets | |||||
Equity in and advances to unconsolidated affiliates | 87 | ||||
Adjustments Due to Topic 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
Assets | |||||
Accounts receivable | 333 | 157 | |||
Contract assets | (311) | (191) | |||
Other current assets | 5 | 5 | |||
Equity in and advances to unconsolidated affiliates | 8 | 87 | |||
Deferred income taxes | (7) | (6) | |||
Other assets | 4 | 1 | |||
Liabilities | |||||
Contract liabilities | (16) | 9 | |||
Deferred income taxes | (1) | ||||
Deferred income from unconsolidated affiliates | (95) | (101) | |||
Other liabilities | 0 | 1 | |||
Equity | |||||
Retained earnings | 155 | $ 144 | |||
Accumulated other comprehensive loss | (11) | ||||
Equity Method Investments | |||||
Assets | |||||
Equity in and advances to unconsolidated affiliates | 753 | 724 | |||
Equity | |||||
Retained earnings | 1,264 | $ 1,235 | |||
Equity Method Investments | Adjustments Due to Topic 606 | |||||
Assets | |||||
Equity in and advances to unconsolidated affiliates | 29 | ||||
Equity | |||||
Retained earnings | $ 29 |
Significant Accounting Polic_11
Significant Accounting Policies (Income Statement) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Revenues | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 5,639 | $ 4,913 | $ 4,171 |
Cost of revenues | (4,986) | (4,329) | (3,732) | ||||||||
Equity in earnings of unconsolidated affiliates | 11 | 9 | 15 | 0 | 29 | 17 | 12 | 21 | 35 | 79 | 70 |
Income before income taxes and noncontrolling interests | 268 | 396 | 247 | ||||||||
(Provision) benefit for income taxes | (59) | (86) | 193 | ||||||||
Net income | $ 59 | $ 58 | $ 50 | $ 42 | $ 53 | $ 56 | $ 64 | $ 137 | $ 209 | $ 310 | $ 440 |
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.42 | $ 1.99 | $ 3.05 |
Diluted (usd per share) | $ 0.40 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.41 | $ 1.99 | $ 3.05 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Revenues | $ 4,904 | ||||||||||
Cost of revenues | (4,328) | ||||||||||
Equity in earnings of unconsolidated affiliates | 75 | ||||||||||
Income before income taxes and noncontrolling interests | 384 | ||||||||||
(Provision) benefit for income taxes | (85) | ||||||||||
Net income | $ 300 | ||||||||||
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 1.92 | ||||||||||
Diluted (usd per share) | $ 1.91 | ||||||||||
Adjustments Due to Topic 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Revenues | $ 9 | ||||||||||
Cost of revenues | 1 | ||||||||||
Equity in earnings of unconsolidated affiliates | 4 | ||||||||||
Income before income taxes and noncontrolling interests | 12 | ||||||||||
(Provision) benefit for income taxes | 1 | ||||||||||
Net income | $ 10 | ||||||||||
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 0.07 | ||||||||||
Diluted (usd per share) | $ 0.08 |
Significant Accounting Polic_12
Significant Accounting Policies (Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | $ 59 | $ 58 | $ 50 | $ 42 | $ 53 | $ 56 | $ 64 | $ 137 | $ 209 | $ 310 | $ 440 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | $ (11) | $ (9) | $ (15) | $ 0 | $ (29) | $ (17) | $ (12) | $ (21) | (35) | (79) | (70) |
Deferred income tax (benefit) expense | (14) | 26 | (322) | ||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | (16) | (203) | 92 | ||||||||
Contract assets | (31) | 25 | 40 | ||||||||
Contract liabilities | 19 | (60) | (198) | ||||||||
Other assets and liabilities | (84) | (7) | (148) | ||||||||
Total cash flows provided by operating activities | $ 256 | 165 | $ 193 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | 300 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | (75) | ||||||||||
Deferred income tax (benefit) expense | 25 | ||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | 130 | ||||||||||
Contract assets | (286) | ||||||||||
Contract liabilities | (77) | ||||||||||
Other assets and liabilities | (5) | ||||||||||
Total cash flows provided by operating activities | 165 | ||||||||||
Adjustments Due to Topic 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | 10 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated affiliates | (4) | ||||||||||
Deferred income tax (benefit) expense | 1 | ||||||||||
Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
Accounts receivable, net of allowances for doubtful accounts | (333) | ||||||||||
Contract assets | 311 | ||||||||||
Contract liabilities | 17 | ||||||||||
Other assets and liabilities | (2) | ||||||||||
Total cash flows provided by operating activities | $ 0 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segmentcontract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Core business segments, number | segment | 3 | ||
Non-core business segments, number | segment | 2 | ||
Number of contracts (more than) | contract | 1,000 | ||
Additional revenue and gross profit recognized | $ | $ 35 | ||
MMM Joint Venture | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | $ | $ (13) | $ (3) |
Business Segment Information (S
Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 5,639,000,000 | $ 4,913,000,000 | $ 4,171,000,000 | ||||||||
Gross profit (loss) | $ 171,000,000 | $ 169,000,000 | $ 160,000,000 | $ 153,000,000 | $ 157,000,000 | $ 149,000,000 | $ 161,000,000 | $ 117,000,000 | 653,000,000 | 584,000,000 | 439,000,000 |
Equity in earnings of unconsolidated affiliates | 11,000,000 | 9,000,000 | 15,000,000 | 0 | 29,000,000 | 17,000,000 | 12,000,000 | 21,000,000 | 35,000,000 | 79,000,000 | 70,000,000 |
Selling, general and administrative expenses | (341,000,000) | (294,000,000) | (244,000,000) | ||||||||
Acquisition and integration related costs | (2,000,000) | (7,000,000) | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | (6,000,000) | ||||||||
Gain (loss) on disposition of assets | 17,000,000 | (2,000,000) | 5,000,000 | ||||||||
Gain on consolidation of Aspire entities | 0 | 108,000,000 | 0 | ||||||||
Segment operating income (loss) | $ 88,000,000 | $ 104,000,000 | $ 92,000,000 | $ 78,000,000 | $ 90,000,000 | $ 99,000,000 | $ 100,000,000 | $ 179,000,000 | 362,000,000 | 468,000,000 | 264,000,000 |
Capital expenditures | 20,000,000 | 17,000,000 | 8,000,000 | ||||||||
Depreciation and amortization | 104,000,000 | 63,000,000 | 48,000,000 | ||||||||
Operating Segments | Government Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,925,000,000 | 3,457,000,000 | 2,193,000,000 | ||||||||
Gross profit (loss) | 430,000,000 | 350,000,000 | 188,000,000 | ||||||||
Equity in earnings of unconsolidated affiliates | 29,000,000 | 32,000,000 | 43,000,000 | ||||||||
Selling, general and administrative expenses | (134,000,000) | (109,000,000) | (57,000,000) | ||||||||
Acquisition and integration related costs | (2,000,000) | (7,000,000) | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
Gain (loss) on disposition of assets | 12,000,000 | 4,000,000 | 0 | ||||||||
Gain on consolidation of Aspire entities | 0 | 113,000,000 | 0 | ||||||||
Segment operating income (loss) | 335,000,000 | 383,000,000 | 173,000,000 | ||||||||
Capital expenditures | 7,000,000 | 11,000,000 | 4,000,000 | ||||||||
Depreciation and amortization | 58,000,000 | 42,000,000 | 27,000,000 | ||||||||
Operating Segments | Technology Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 374,000,000 | 297,000,000 | 269,000,000 | ||||||||
Gross profit (loss) | 118,000,000 | 106,000,000 | 98,000,000 | ||||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | (28,000,000) | (24,000,000) | (25,000,000) | ||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
Gain (loss) on disposition of assets | 0 | 0 | 0 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 90,000,000 | 82,000,000 | 73,000,000 | ||||||||
Capital expenditures | 1,000,000 | 0 | 0 | ||||||||
Depreciation and amortization | 6,000,000 | 3,000,000 | 3,000,000 | ||||||||
Operating Segments | Energy Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,339,000,000 | 1,157,000,000 | 1,671,000,000 | ||||||||
Gross profit (loss) | 100,000,000 | 134,000,000 | 153,000,000 | ||||||||
Equity in earnings of unconsolidated affiliates | 19,000,000 | 50,000,000 | 27,000,000 | ||||||||
Selling, general and administrative expenses | (63,000,000) | (64,000,000) | (68,000,000) | ||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | (6,000,000) | ||||||||
Gain (loss) on disposition of assets | 0 | (2,000,000) | 5,000,000 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 56,000,000 | 118,000,000 | 111,000,000 | ||||||||
Capital expenditures | 3,000,000 | 1,000,000 | 2,000,000 | ||||||||
Depreciation and amortization | 21,000,000 | 10,000,000 | 10,000,000 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Selling, general and administrative expenses | (116,000,000) | (97,000,000) | (94,000,000) | ||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
Gain (loss) on disposition of assets | 5,000,000 | (4,000,000) | 0 | ||||||||
Gain on consolidation of Aspire entities | 0 | (5,000,000) | 0 | ||||||||
Segment operating income (loss) | (111,000,000) | (106,000,000) | (93,000,000) | ||||||||
Capital expenditures | 9,000,000 | 5,000,000 | 2,000,000 | ||||||||
Depreciation and amortization | 19,000,000 | 8,000,000 | 8,000,000 | ||||||||
Subtotal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,638,000,000 | 4,911,000,000 | 4,133,000,000 | ||||||||
Gross profit (loss) | 648,000,000 | 590,000,000 | 439,000,000 | ||||||||
Equity in earnings of unconsolidated affiliates | 48,000,000 | 82,000,000 | 70,000,000 | ||||||||
Selling, general and administrative expenses | (341,000,000) | (294,000,000) | (244,000,000) | ||||||||
Acquisition and integration related costs | (2,000,000) | (7,000,000) | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | (6,000,000) | ||||||||
Gain (loss) on disposition of assets | 17,000,000 | (2,000,000) | 5,000,000 | ||||||||
Gain on consolidation of Aspire entities | 0 | 108,000,000 | 0 | ||||||||
Segment operating income (loss) | 370,000,000 | 477,000,000 | 264,000,000 | ||||||||
Capital expenditures | 20,000,000 | 17,000,000 | 8,000,000 | ||||||||
Depreciation and amortization | 104,000,000 | 63,000,000 | 48,000,000 | ||||||||
Non-strategic Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,000,000 | 2,000,000 | 38,000,000 | ||||||||
Gross profit (loss) | 5,000,000 | (6,000,000) | 0 | ||||||||
Equity in earnings of unconsolidated affiliates | (13,000,000) | (3,000,000) | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Asset impairment and restructuring charges | 0 | 0 | 0 | ||||||||
Gain (loss) on disposition of assets | 0 | 0 | 0 | ||||||||
Gain on consolidation of Aspire entities | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | (8,000,000) | (9,000,000) | 0 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation and amortization | $ 0 | $ 0 | $ 0 |
Business Segment Information _2
Business Segment Information (Schedule of Balance Sheet Information by Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 5,364 | $ 5,052 | ||
Goodwill | 1,265 | 1,265 | $ 968 | |
Equity in and advances to related companies | 850 | 724 | $ 452 | |
Government Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 978 | 977 | $ 679 | |
Operating Segments | Government Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,749 | 2,804 | ||
Goodwill | 978 | 977 | ||
Equity in and advances to related companies | 151 | 114 | ||
Operating Segments | Technology Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 222 | 204 | ||
Goodwill | 50 | 51 | ||
Equity in and advances to related companies | 0 | 0 | ||
Operating Segments | Energy Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,497 | 1,271 | ||
Goodwill | 237 | 237 | ||
Equity in and advances to related companies | 699 | 610 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 889 | 746 | ||
Goodwill | 0 | 0 | ||
Equity in and advances to related companies | 0 | 0 | ||
Subtotal | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 5,357 | 5,025 | ||
Goodwill | 1,265 | 1,265 | ||
Equity in and advances to related companies | 850 | 724 | ||
Non-strategic Business | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 7 | 27 | ||
Goodwill | 0 | 0 | ||
Equity in and advances to related companies | $ 0 | $ 0 |
Business Segment Information _3
Business Segment Information (Schedule of Selected Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 5,639 | $ 4,913 | $ 4,171 |
Property, plant & equipment, net | 130 | 121 | 130 | 121 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,705 | 2,260 | 1,986 | ||||||||
Property, plant & equipment, net | 50 | 51 | 50 | 51 | |||||||
Middle East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,027 | 884 | 836 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,058 | 989 | 480 | ||||||||
Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 288 | 329 | 334 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 39 | 21 | 224 | ||||||||
Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 197 | 133 | 121 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 214 | 190 | 125 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant & equipment, net | 44 | 50 | 44 | 50 | |||||||
Other countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 111 | 107 | $ 65 | ||||||||
Property, plant & equipment, net | $ 36 | $ 20 | $ 36 | $ 20 |
Revenue (Revenue by Product Lin
Revenue (Revenue by Product Line) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,639 | $ 4,913 | $ 4,171 |
Operating Segments | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,925 | 3,457 | 2,193 |
Operating Segments | Government Solutions | Space and Mission Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 874 | 651 | |
Operating Segments | Government Solutions | Engineering | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,158 | 1,141 | |
Operating Segments | Government Solutions | Logistics | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,893 | 1,665 | |
Operating Segments | Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 374 | 297 | 269 |
Operating Segments | Energy Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,339 | 1,157 | 1,671 |
Operating Segments | Energy Solutions | EPC Delivery Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 438 | 432 | |
Operating Segments | Energy Solutions | Services and Consulting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 901 | 725 | |
Non-strategic Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1 | $ 2 | $ 38 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from performance obligations | $ 15 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,639 | $ 4,913 | $ 4,171 |
Government Solutions | Key U.S. Government Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,000 | 2,600 | |
Government Solutions | Non U.S. Government Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 911 | $ 847 |
Revenue (Revenue by Geographic
Revenue (Revenue by Geographic Destination) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,639 | $ 4,913 | $ 4,171 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,705 | 2,260 | |
Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,027 | 884 | |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,058 | 989 | |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 288 | 329 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 39 | 21 | |
Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 197 | 133 | |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 214 | 190 | |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 111 | 107 | |
Operating Segments | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,925 | 3,457 | 2,193 |
Operating Segments | Government Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,110 | 1,767 | |
Operating Segments | Government Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 795 | 735 | |
Operating Segments | Government Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 796 | 766 | |
Operating Segments | Government Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 93 | 60 | |
Operating Segments | Government Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 1 | |
Operating Segments | Government Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 76 | 77 | |
Operating Segments | Government Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Government Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 54 | 51 | |
Operating Segments | Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 374 | 297 | 269 |
Operating Segments | Technology Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 38 | 22 | |
Operating Segments | Technology Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 15 | 14 | |
Operating Segments | Technology Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 71 | 50 | |
Operating Segments | Technology Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 1 | |
Operating Segments | Technology Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 2 | |
Operating Segments | Technology Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 31 | 25 | |
Operating Segments | Technology Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 211 | 177 | |
Operating Segments | Technology Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6 | 6 | |
Operating Segments | Energy Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,339 | 1,157 | 1,671 |
Operating Segments | Energy Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 556 | 469 | |
Operating Segments | Energy Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 217 | 135 | |
Operating Segments | Energy Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 191 | 173 | |
Operating Segments | Energy Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 194 | 268 | |
Operating Segments | Energy Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 37 | 18 | |
Operating Segments | Energy Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 90 | 31 | |
Operating Segments | Energy Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3 | 13 | |
Operating Segments | Energy Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 51 | 50 | |
Non-strategic Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 2 | $ 38 |
Non-strategic Business | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 2 | |
Non-strategic Business | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Non-strategic Business | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 |
Revenue (Revenue by Contract Ty
Revenue (Revenue by Contract Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,639 | $ 4,913 | $ 4,171 |
Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,719 | 1,508 | |
Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,920 | 3,405 | |
Operating Segments | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,925 | 3,457 | 2,193 |
Operating Segments | Government Solutions | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,111 | 1,031 | |
Operating Segments | Government Solutions | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,814 | 2,426 | |
Operating Segments | Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 374 | 297 | 269 |
Operating Segments | Technology Solutions | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 367 | 288 | |
Operating Segments | Technology Solutions | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7 | 9 | |
Operating Segments | Energy Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,339 | 1,157 | 1,671 |
Operating Segments | Energy Solutions | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 240 | 187 | |
Operating Segments | Energy Solutions | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,099 | 970 | |
Non-strategic Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 2 | $ 38 |
Non-strategic Business | Fixed Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 2 | |
Non-strategic Business | Cost Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 |
Revenue (Performance Obligation
Revenue (Performance Obligation) (Details) $ in Billions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 11.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 34.00% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 33.00% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 4 years |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Stinger Ghaffarian Technologies Acquisition) (Details) - USD ($) $ in Millions | Apr. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,265 | $ 1,265 | $ 968 | |
Acquisition related costs | 2 | 7 | $ 0 | |
SGT | ||||
Business Acquisition [Line Items] | ||||
Voting interests acquired | 100.00% | |||
Aggregate base consideration | $ 355 | |||
Adjustments to consideration transferred | 10 | |||
Goodwill | $ 257 | |||
Acquisition related costs | 2 | 4 | ||
Revenues contributed by acquiree | 481 | 342 | ||
Gross profit contributed by acquiree | $ 47 | $ 31 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Aspire Defence Subcontracting Joint Ventures) (Details) - USD ($) | Apr. 18, 2018 | Sep. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 15, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,265,000,000 | $ 1,265,000,000 | $ 968,000,000 | ||||
Acquisition related costs | 2,000,000 | 7,000,000 | $ 0 | ||||
Aspire | |||||||
Business Acquisition [Line Items] | |||||||
Gain on consolidation of entities | $ 108,000,000 | 108,000,000 | |||||
Goodwill | $ 42,000,000 | ||||||
Fair value of total consideration transferred | $ 50,000,000 | ||||||
Adjustment to noncontrolling interests | 119,000,000 | ||||||
Net increase to PIC | $ 69,000,000 | ||||||
Acquisition related costs | $ 0 | 1,000,000 | |||||
Revenues contributed by acquiree | 535,000,000 | 533,000,000 | |||||
Gross profit contributed by acquiree | $ 71,000,000 | $ 61,000,000 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Pro Forma Information) (Details) - SGT and Aspire Defence - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenue | $ 5,060 | $ 5,057 |
Net income attributable to KBR | $ 367 | $ 342 |
Diluted earnings per share (usd per share) | $ 2.59 | $ 2.41 |
Cash and Equivalents (Details)
Cash and Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | $ 712 | $ 739 |
Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 301 | 227 |
Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 151 | 194 |
Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 260 | 318 |
International | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 504 | 525 |
International | Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 187 | 123 |
International | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 58 | 87 |
International | Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 259 | 315 |
Domestic | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 208 | 214 |
Domestic | Operating cash and equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 114 | 104 |
Domestic | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | 93 | 107 |
Domestic | Cash and equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and equivalents | $ 1 | $ 3 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 938 | $ 927 | $ 667 |
Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 308 | 346 | |
Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 630 | 581 | |
Operating Segments | Government Solutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 565 | 600 | |
Operating Segments | Government Solutions | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 184 | 266 | |
Operating Segments | Government Solutions | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 381 | 334 | |
Operating Segments | Technology Solutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 62 | 73 | |
Operating Segments | Technology Solutions | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 6 | 11 | |
Operating Segments | Technology Solutions | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 56 | 62 | |
Operating Segments | Energy Solutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 310 | 254 | |
Operating Segments | Energy Solutions | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 118 | 69 | |
Operating Segments | Energy Solutions | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 192 | 185 | |
Subtotal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 937 | 927 | |
Subtotal | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 308 | 346 | |
Subtotal | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 629 | 581 | |
Non-strategic Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 1 | 0 | |
Non-strategic Business | Unbilled | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 0 | 0 | |
Non-strategic Business | Trade & Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 1 | $ 0 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities (Contract Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 215 | $ 185 |
Operating Segments | Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 111 | 123 |
Operating Segments | Technology Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 36 | 19 |
Operating Segments | Energy Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 68 | 43 |
Subtotal | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 215 | 185 |
Non-strategic Business | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 0 | $ 0 |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities (Contract Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 484 | $ 463 | $ 377 |
Operating Segments | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | 261 | 261 | |
Operating Segments | Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | 73 | 98 | |
Operating Segments | Energy Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | 147 | 100 | |
Subtotal | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | 481 | 459 | |
Non-strategic Business | |||
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 3 | $ 4 |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract liability, revenue recognized | $ 211 |
Unapproved Change Orders and _3
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Schedule of Unapproved Change Orders and Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unapproved Change Orders [Roll Forward] | ||
Amounts included in project estimates-at-completion at January 1, | $ 973 | $ 924 |
Increase, net of foreign currency effect | 12 | 53 |
Approved change orders, net of foreign currency effect | (7) | (4) |
Amounts included in project estimates-at-completion at December 31, | 978 | 973 |
Amounts recognized over time based on progress at December 31, | $ 974 | $ 945 |
Unapproved Change Orders and _4
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Commitments, estimated recovery | $ 1,900 | ||
Ichthys LNG Project | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Letters of credit outstanding, amount | 164 | ||
JKC Joint Venture | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Additional investments to joint venture | (484) | ||
JKC Joint Venture | Legal Action Against the Consortium for Combined Cycle Power Plant | Settled Litigation | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Funds received from litigation settlement | $ 52 | ||
Cost Reimbursable | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Changes in estimates at completion | $ 158 | $ 159 | |
Ichthys LNG Project | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Variable interest entity, ownership percentage | 30.00% | 30.00% | |
JKC Joint Venture | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Variable interest entity, ownership percentage | 30.00% |
Claims and Accounts Receivable
Claims and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims receivable | $ 59 | $ 98 |
Government Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Government contract receivable | 28 | 73 |
Claims and uncertain amounts | $ 31 | $ 25 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 516 | $ 476 | |
Less accumulated depreciation | (386) | (355) | |
Net property, plant and equipment | 130 | 121 | |
Depreciation | 33 | 31 | $ 27 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 5 | 5 | |
Buildings and property improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 124 | 122 | |
Buildings and property improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Buildings and property improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 35 years | ||
Equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 387 | $ 349 | |
Equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 25 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Summary of Goodwill by Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance, Beginning of period | $ 1,265 | $ 968 |
Goodwill acquired during the period | 0 | 299 |
Purchase price adjustment | 0 | 2 |
Foreign currency translation | 0 | (4) |
Balance, End of period | 1,265 | 1,265 |
Government Solutions | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 977 | 679 |
Goodwill acquired during the period | 0 | 299 |
Purchase price adjustment | 0 | 2 |
Foreign currency translation | 1 | (3) |
Balance, End of period | 978 | 977 |
Technology | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 51 | 51 |
Goodwill acquired during the period | 0 | |
Purchase price adjustment | 0 | 0 |
Foreign currency translation | (1) | 0 |
Balance, End of period | 50 | 51 |
Energy Solutions | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 237 | 238 |
Goodwill acquired during the period | 0 | 0 |
Purchase price adjustment | 0 | 0 |
Foreign currency translation | 0 | (1) |
Balance, End of period | $ 237 | $ 237 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Cost and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 679 | $ 667 |
Accumulated Amortization | (184) | (151) |
Intangible Assets, Net | $ 495 | $ 516 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 16 years | 17 years |
Intangible Assets, Gross | $ 271 | $ 272 |
Accumulated Amortization | (83) | (69) |
Intangible Assets, Net | $ 188 | $ 203 |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 22 years | 22 years |
Intangible Assets, Gross | $ 68 | $ 61 |
Accumulated Amortization | (36) | (34) |
Intangible Assets, Net | $ 32 | $ 27 |
Contract backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 19 years | 20 years |
Intangible Assets, Gross | $ 255 | $ 249 |
Accumulated Amortization | (52) | (36) |
Intangible Assets, Net | $ 203 | $ 213 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 14 years | 14 years |
Intangible Assets, Gross | $ 24 | $ 24 |
Accumulated Amortization | (13) | (12) |
Intangible Assets, Net | 11 | 12 |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 61 | 61 |
Intangible Assets, Net | $ 61 | $ 61 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 33 | $ 32 | $ 21 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Expected Amortization Expense of Intangibles) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 32 |
2021 | 28 |
2022 | 23 |
2023 | 23 |
2024 | 23 |
Beyond 2024 | $ 304 |
Equity Method Investments and_3
Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Cumulative effect of change in accounting policy | $ 50 | $ 144 | |||
Distributions of earnings of unconsolidated affiliates | $ (69) | $ (75) | $ (62) | ||
Investments | 146 | 344 | 0 | ||
Equity in and advances to unconsolidated affiliates | 850 | 724 | 452 | ||
Accounting Standards Update 2014-09 | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Cumulative effect of change in accounting policy | 29 | ||||
Equity in and advances to unconsolidated affiliates | 87 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Equity in and advances to unconsolidated affiliates | 8 | 87 | |||
Equity Method Investments | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Beginning balance | 724 | 365 | |||
Cumulative effect of change in accounting policy | 29 | 87 | |||
Adjusted balance at January 1, | 753 | 452 | |||
Equity in earnings of unconsolidated affiliates | 35 | 79 | |||
Distributions of earnings of unconsolidated affiliates | (69) | (75) | |||
Payments from (advances to) unconsolidated affiliates, net | (10) | (12) | |||
Investments | 146 | 344 | |||
Foreign currency translation adjustments | (7) | (28) | |||
Other | 2 | (36) | |||
Ending balance | 850 | 724 | $ 365 | ||
Equity in and advances to unconsolidated affiliates | 724 | 753 | |||
Amount allocated to fund ownership venture | $ 141 | $ 344 | |||
Equity Method Investments | Accounting Standards Update 2014-09 | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Equity in and advances to unconsolidated affiliates | $ 29 | ||||
Aspire | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||||
Equity in and advances to unconsolidated affiliates | $ 87 |
Equity Method Investments and_4
Equity Method Investments and Variable Interest Entities (Narrative) (Details) $ in Millions | Sep. 30, 2015USD ($) | Feb. 29, 2016 | Apr. 30, 2006 | Dec. 31, 2019USD ($)transporter | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Nonrecourse Project Finance Debt | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage (in percentage) | 50.00% | |||||
Number of heavy equipment transporters | transporter | 91 | |||||
Transactions with Related Parties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue from related parties | $ 684 | $ 721 | $ 133 | |||
JKC Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 30.00% | |||||
Affinity joint venture (U.K. MFTS project) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Term of contracted services portion of project (in years) | 18 years | |||||
Affinity joint venture (U.K. MFTS project) | Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Nonconsolidated assets | $ 14 | 16 | ||||
Nonconsolidated liabilities | 10 | 8 | ||||
Aspire Defence Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Term of contracted services portion of project (in years) | 35 years | |||||
Term of construction portion of project (in years) | 9 years | |||||
Aspire Defence Limited | Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Nonconsolidated assets | 67 | 68 | ||||
Nonconsolidated liabilities | 5 | 5 | ||||
JKC joint venture (Ichthys LNG project) | Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Nonconsolidated assets | 546 | 427 | ||||
Nonconsolidated liabilities | $ 29 | 32 | ||||
U.K. Road project joint ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 25.00% | |||||
U.K. Road project joint ventures | Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Nonconsolidated assets | $ 40 | 37 | ||||
Nonconsolidated liabilities | $ 21 | 10 | ||||
Middle East Petroleum Corporation (EBIC Ammonia project) | Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage the enterprise has in a development company that has a minority interest in a VIE | 65.00% | |||||
Middle East Petroleum Corporation (EBIC Ammonia project) | Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Nonconsolidated assets | $ 47 | 51 | ||||
Nonconsolidated liabilities | $ 1 | $ 1 | ||||
KJV-G joint venture (Gorgon LNG project) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 30.00% | |||||
Fasttrax Limited (Fasttrax project) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Percentage of subsidiary owned by the parent entity | 100.00% | |||||
Cash collateral for borrowed securities | $ 18 | |||||
Property plant and equipment collateral for borrowed securities | $ 23 | |||||
Brown & Root JV | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage (in percentage) | 50.00% | |||||
Affinity Flying Training Services Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Affinity Capital Works | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Aspire Defence Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Variable interest entity, ownership percentage | 45.00% | 50.00% | ||||
Development Corporation | Middle East Petroleum Corporation (EBIC Ammonia project) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Development company's ownership interest in a company that consolidates a VIE | 25.00% | |||||
Industrial Services Business | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 48 |
Equity Method Investments and_5
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 3,072 | $ 3,526 |
Noncurrent assets | 3,219 | 3,121 |
Total assets | 6,291 | 6,647 |
Current liabilities | 949 | 1,277 |
Noncurrent liabilities | 2,922 | 3,212 |
Total liabilities | $ 3,871 | $ 4,489 |
Equity Method Investments and_6
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Statements of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 2,592 | $ 3,190 | $ 5,781 |
Operating income | 92 | 197 | 278 |
Net income | $ 48 | $ 173 | $ 145 |
Equity Method Investments and_7
Equity Method Investments and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 14 | $ 16 |
Total Liabilities | 10 | 8 |
Variable Interest Entity, Not Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 67 | 68 |
Total Liabilities | 5 | 5 |
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 546 | 427 |
Total Liabilities | 29 | 32 |
Variable Interest Entity, Not Primary Beneficiary | U.K. Road project joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 40 | 37 |
Total Liabilities | 21 | 10 |
Variable Interest Entity, Not Primary Beneficiary | Middle East Petroleum Corporation (EBIC Ammonia project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 47 | 51 |
Total Liabilities | 1 | 1 |
Variable Interest Entity, Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 530 | 589 |
Consolidated VIEs, Total liabilities | 283 | 324 |
Variable Interest Entity, Primary Beneficiary | KJV-G joint venture (Gorgon LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 0 | 13 |
Consolidated VIEs, Total liabilities | 17 | 19 |
Variable Interest Entity, Primary Beneficiary | Fasttrax Limited (Fasttrax project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Consolidated VIEs, Total assets | 45 | 49 |
Consolidated VIEs, Total liabilities | $ 24 | $ 34 |
Equity Method Investments and_8
Equity Method Investments and Variable Interest Entities (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 938 | $ 927 | $ 667 |
Contract assets | 215 | 185 | |
Contract liabilities | 484 | 463 | $ 377 |
Accounts payable | 572 | 546 | |
Transactions with Related Parties | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | 49 | 43 | |
Contract assets | 2 | 1 | |
Contract liabilities | 33 | 38 | |
Accounts payable | $ 0 | $ 2 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan expenses | $ 63 | $ 56 | $ 52 | |
Multi-employer plan contribution | 0 | 0 | $ 3 | |
Funded amount | 10 | 8 | ||
Employee deferred compensation plan | $ 65 | 67 | ||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 2 | |||
Increase in projected benefit obligation | $ 0 | 0 | ||
Accumulated benefit obligation | $ 76 | 71 | ||
United Kingdom | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Increase in prior service cost | 20 | |||
Increase in projected benefit obligation | 20 | |||
Germany | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of frozen defined benefit plans | plan | 1 | |||
Int’l | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase in projected benefit obligation | $ 0 | 20 | ||
Accumulated benefit obligation | $ 2,000 | $ 1,800 | ||
Scenario, Forecast | Int’l | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contributions in next fiscal year | $ 47 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 1,572 | ||
Fair value of plan assets at end of period | 1,787 | $ 1,572 | |
United States | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 71 | 77 | |
Acquisitions | 0 | 0 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 3 | 2 | 3 |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | 7 | (4) | |
Other | 0 | 0 | |
Plan amendments | 0 | 0 | |
Benefits paid | (5) | (4) | |
Projected benefit obligations at end of period | 76 | 71 | 77 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 54 | 59 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | 10 | (3) | |
Employer contributions | 2 | 2 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | (5) | (4) | |
Other | (1) | 0 | |
Fair value of plan assets at end of period | 60 | 54 | 59 |
Funded status | (16) | (17) | |
Int’l | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 1,751 | 2,046 | |
Acquisitions | 0 | 24 | |
Service cost | 2 | 2 | 1 |
Interest cost | 50 | 50 | 53 |
Foreign currency exchange rate changes | 46 | (114) | |
Actuarial (gain) loss | 214 | (184) | |
Other | (1) | 0 | |
Plan amendments | 0 | 20 | |
Benefits paid | (74) | (93) | |
Projected benefit obligations at end of period | 1,988 | 1,751 | 2,046 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,518 | 1,673 | |
Acquisitions | 0 | 24 | |
Actual return on plan assets | 200 | (28) | |
Employer contributions | 43 | 39 | |
Foreign currency exchange rate changes | 41 | (96) | |
Benefits paid | (74) | (93) | |
Other | (1) | (1) | |
Fair value of plan assets at end of period | 1,727 | 1,518 | $ 1,673 |
Funded status | $ (261) | $ (233) |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Amounts Recognized on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ (16) | $ 17 |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ (261) | $ 233 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 3 | 2 | 3 |
Expected return on plan assets | (3) | (3) | (3) |
Prior service cost amortization | 0 | 0 | 0 |
Recognized actuarial loss | 2 | 2 | 1 |
Net periodic benefit cost | 2 | 1 | 1 |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 1 |
Interest cost | 50 | 50 | 53 |
Expected return on plan assets | (77) | (80) | (77) |
Prior service cost amortization | 1 | 0 | 0 |
Recognized actuarial loss | 16 | 26 | 30 |
Net periodic benefit cost | $ (8) | $ (2) | $ 7 |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $9 and $215, $10 and $203, respectively | $ 22 | $ 23 |
Total in accumulated other comprehensive loss | 22 | 23 |
Unrecognized actuarial loss, tax | (9) | (10) |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $9 and $215, $10 and $203, respectively | 632 | 569 |
Total in accumulated other comprehensive loss | 632 | 569 |
Unrecognized actuarial loss, tax | $ (215) | $ (203) |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Accumulated Other Comprehensive Income to be Amortized into Net Periodic Benefit Cost in Next Fiscal Year) (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | $ 1 |
Total | 1 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | 19 |
Total | $ 19 |
Retirement Benefits (Schedule_5
Retirement Benefits (Schedule of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 3.98% | 3.33% | 3.73% |
Expected return on plan assets | 6.09% | 6.01% | 6.01% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 2.89% | 3.98% | |
Int’l | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.90% | 2.50% | 2.60% |
Expected return on plan assets | 5.09% | 5.20% | 5.40% |
Weighted-average assumptions used to determine benefit obligations at measurement date | |||
Discount rate | 2.05% | 2.90% |
Retirement Benefits (Schedule_6
Retirement Benefits (Schedule of Target Plan Allocation) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
United States | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 53.00% | |
United States | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 37.00% | |
United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 40.00% | |
United States | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
United States | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 60.00% | |
Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 99.00% | |
Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 34.00% | |
Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20.00% | |
Scenario, Forecast | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 51.00% | |
Scenario, Forecast | United States | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 41.00% | |
Scenario, Forecast | United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 68.00% | |
Scenario, Forecast | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 39.00% | |
Scenario, Forecast | United States | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 31.00% | |
Scenario, Forecast | United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 47.00% | |
Scenario, Forecast | United States | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | United States | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | United States | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | United States | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9.00% | |
Scenario, Forecast | United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7.00% | |
Scenario, Forecast | United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10.00% | |
Scenario, Forecast | Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 22.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1.00% | |
Scenario, Forecast | Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 54.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 35.00% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100.00% | |
Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7.00% | |
Scenario, Forecast | Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 22.00% | |
Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 3.00% | |
Scenario, Forecast | Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20.00% | |
Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 14.00% | |
Scenario, Forecast | Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0.00% | |
Scenario, Forecast | Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 42.00% |
Retirement Benefits (Schedule_7
Retirement Benefits (Schedule of Pension Plan Assets Measured at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,787 | $ 1,572 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 43 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 149 | 126 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60 | 54 | $ 59 |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
United States | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59 | 54 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
United States | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,727 | 1,518 | 1,673 |
Int’l | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 43 | |
Int’l | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 149 | 126 | 74 |
Int’l | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,532 | 1,349 | |
Int’l | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 103 | 84 | |
Int’l | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 103 | 84 | 26 |
Int’l | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Int’l | Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | 5 |
Int’l | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Int’l | Real estate funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | 3 |
Int’l | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 8 | |
Int’l | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 8 | |
Int’l | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87 | 74 | |
Int’l | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44 | 35 | |
Int’l | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 43 | $ 39 | $ 40 |
Retirement Benefits (Schedule_8
Retirement Benefits (Schedule of Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | $ 1,572 | |
Fair value of plan assets at end of period | 1,787 | $ 1,572 |
Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 126 | |
Fair value of plan assets at end of period | 149 | 126 |
Int’l | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1,518 | 1,673 |
Foreign exchange impact | 46 | (114) |
Fair value of plan assets at end of period | 1,727 | 1,518 |
Int’l | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 126 | 74 |
Return on assets held at end of year | 8 | (3) |
Return on assets sold during the year | 1 | 8 |
Purchases, sales and settlements | 11 | 39 |
Transfers | 0 | 13 |
Foreign exchange impact | 3 | (5) |
Fair value of plan assets at end of period | 149 | 126 |
Int’l | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 84 | |
Fair value of plan assets at end of period | 103 | 84 |
Int’l | Equities | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 84 | 26 |
Return on assets held at end of year | 10 | 1 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | 7 | 11 |
Transfers | 0 | 48 |
Foreign exchange impact | 2 | (2) |
Fair value of plan assets at end of period | 103 | 84 |
Int’l | Fixed Income | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 2 | |
Fair value of plan assets at end of period | 1 | 2 |
Int’l | Fixed Income | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 2 | 5 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements | (1) | (3) |
Transfers | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 1 | 2 |
Int’l | Real Estate | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | |
Fair value of plan assets at end of period | 2 | 1 |
Int’l | Real Estate | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | 3 |
Return on assets held at end of year | 0 | (1) |
Return on assets sold during the year | 1 | 1 |
Purchases, sales and settlements | 0 | (2) |
Transfers | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 2 | 1 |
Int’l | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 74 | |
Fair value of plan assets at end of period | 87 | 74 |
Int’l | Other | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 39 | 40 |
Return on assets held at end of year | (2) | (3) |
Return on assets sold during the year | 0 | 7 |
Purchases, sales and settlements | 5 | 33 |
Transfers | 0 | (35) |
Foreign exchange impact | 1 | (3) |
Fair value of plan assets at end of period | $ 43 | $ 39 |
Retirement Benefits (Schedule_9
Retirement Benefits (Schedule of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 5 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | 5 |
Years 2025 - 2029 | 24 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 57 |
2021 | 59 |
2022 | 60 |
2023 | 61 |
2024 | 63 |
Years 2025 - 2029 | $ 333 |
Debt and Other Credit Facilit_3
Debt and Other Credit Facilities (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,210 | $ 1,248 |
Less: current portion | 27 | 22 |
Total long-term debt, net of current portion | 1,183 | 1,226 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4) | (5) |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (15) | (18) |
Secured Debt | Term Loan A | ||
Debt Instrument [Line Items] | ||
Long-term debt | 176 | 190 |
Total long-term debt | 350 | |
Secured Debt | Term Loan B | ||
Debt Instrument [Line Items] | ||
Long-term debt | 756 | 796 |
Total long-term debt | 800 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350 | 350 |
Unamortized debt issuance costs | $ (53) | $ (65) |
Debt and Other Credit Facilit_4
Debt and Other Credit Facilities (Narrative) (Details) $ / shares in Units, £ in Millions | Nov. 15, 2018$ / shares | Apr. 25, 2018 | Sep. 30, 2019USD ($)$ / shares | Dec. 31, 2019USD ($)transporter | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 07, 2020USD ($) | Dec. 31, 2019GBP (£) | Sep. 30, 2019GBP (£) | Jun. 30, 2019 | Sep. 30, 2018 | Apr. 12, 2018 |
Debt Instrument [Line Items] | ||||||||||||
Revolving credit agreement | $ 1,210,000,000 | $ 1,248,000,000 | ||||||||||
Nonrecourse project debt | 7,000,000 | 17,000,000 | £ 62 | |||||||||
Exercise price (usd per share) | $ / shares | $ 40.02 | |||||||||||
Percentage of strike price above reported last sale price | 31.00% | |||||||||||
Proceeds from sale of warrants | $ 22,000,000 | $ 0 | 22,000,000 | $ 0 | ||||||||
Class A 3.5% Index Linked Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Guaranteed secured bonds, percentage | 3.50% | 3.50% | ||||||||||
Class A 3.5% Index Linked Bonds | United Kingdom, Pounds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured bonds | £ | £ 56 | |||||||||||
Class B 5.9% Fixed Rate Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Guaranteed secured bonds, percentage | 5.90% | 5.90% | ||||||||||
Class B 5.9% Fixed Rate Bonds | United Kingdom, Pounds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured bonds | £ | £ 20.7 | |||||||||||
Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Subordinated notes payable, interest rate | 11.25% | |||||||||||
Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Subordinated notes payable, interest rate | 16.00% | |||||||||||
Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversion rate | 0.0391961 | |||||||||||
Line of Credit | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of aggregate principal | 2.50% | |||||||||||
Term Loan A | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit agreement | $ 350,000,000 | |||||||||||
Covenant, leverage ratio | 3.50 | |||||||||||
Covenant, interest coverage ratio | 3 | |||||||||||
Term Loan A | Secured Debt | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount due at maturity | 275,000,000 | |||||||||||
Term Loan A | Secured Debt | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Covenant, leverage ratio | 4.50 | |||||||||||
Term Loan B | LIBOR Margin | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 3.75% | |||||||||||
Term Loan B | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit agreement | 800,000,000 | |||||||||||
Percentage of aggregate principal | 0.25% | |||||||||||
Term Loan B | Secured Debt | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount due at maturity | 520,000,000 | |||||||||||
Notes Due 2023 | Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount due at maturity | 350,000,000 | |||||||||||
If-converted value in excess of principal | 68,000,000 | |||||||||||
Equity method investments | 57,000,000 | 57,000,000 | ||||||||||
Interest cost, contractual coupon | 9,000,000 | 1,000,000 | ||||||||||
Interest cost, amortization of discount | $ 12,000,000 | $ 1,000,000 | ||||||||||
Interest rate, stated percentage | 2.50% | |||||||||||
Guaranteed secured bonds, percentage | 6.50% | 6.50% | 6.50% | |||||||||
Conversion price (usd per share) | $ / shares | $ 25.51 | |||||||||||
Letters of Credit, Surety Bonds and Bank Guarantees | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit outstanding relate to joint venture operations | $ 170,000,000 | |||||||||||
Nonrecourse Project Finance Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership percentage (in percentage) | 50.00% | 50.00% | ||||||||||
Number of heavy equipment transporters | transporter | 91 | |||||||||||
Number of heavy equipment transporters, term period, in years | 22 years | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit, outstanding amount | $ 500,000,000 | |||||||||||
Revolving Credit Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit, outstanding amount | 26,000,000 | |||||||||||
Long-term line of credit | 0 | |||||||||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Letter of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit, outstanding amount | 500,000,000 | |||||||||||
Letter of Credit | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit, outstanding amount | 100,000,000 | |||||||||||
Letter of Credit | Committed Line of Credit | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount due at maturity | 1,000,000,000 | |||||||||||
Letter of Credit | Uncommitted Line of Credit | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit, outstanding amount | 199,000,000 | |||||||||||
Face amount due at maturity | 1,000,000,000 | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 368,000,000 |
Debt and Other Credit Facilit_5
Debt and Other Credit Facilities (Consolidated Leverage Ratio) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Greater than or equal to 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.45% |
Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.40% |
Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.375% |
Less than 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.35% |
Revolver and Term Loan A | LIBOR Margin | Greater than or equal to 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.25% |
Revolver and Term Loan A | LIBOR Margin | Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.00% |
Revolver and Term Loan A | LIBOR Margin | Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.75% |
Revolver and Term Loan A | LIBOR Margin | Less than 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Revolver and Term Loan A | Base Rate Margin | Greater than or equal to 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Revolver and Term Loan A | Base Rate Margin | Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Revolver and Term Loan A | Base Rate Margin | Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
Revolver and Term Loan A | Base Rate Margin | Less than 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Line of Credit | Performance Letter of Credit Fee | Greater than or equal to 4.00 to 1.00 | |
Debt Instrument [Line Items] | |
Performance Letter of Credit Fee | 1.95% |
Line of Credit | Performance Letter of Credit Fee | Less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Performance Letter of Credit Fee | 1.80% |
Line of Credit | Performance Letter of Credit Fee | Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Performance Letter of Credit Fee | 1.65% |
Line of Credit | Performance Letter of Credit Fee | Less than 2.00 to 1.00 | |
Debt Instrument [Line Items] | |
Performance Letter of Credit Fee | 1.50% |
Debt and Other Credit Facilit_6
Debt and Other Credit Facilities (Schedule of Debt Maturities) (Details) - Nonrecourse Project Finance Debt $ in Millions | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 11 |
2021 | 5 |
2022 | 1 |
2023 | 1 |
2024 | 0 |
Beyond 2024 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) before Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
United States | $ 2 | $ 44 | $ 84 |
Foreign | 266 | 352 | 163 |
Total | 268 | 396 | 247 |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 105 | 203 | 40 |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 15 | 7 | (30) |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 3 | (2) | 15 |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 87 | 61 | 42 |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 5 | 13 | 20 |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | $ 51 | $ 70 | $ 76 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
(Provision) Benefit for income taxes | $ (59) | $ (86) | $ 193 |
Shareholders' equity, foreign currency translation adjustment | 1 | (2) | 6 |
Shareholders' equity, pension and post-retirement benefits | 11 | (14) | (27) |
Shareholders' equity, changes in fair value of derivatives | 2 | 3 | 0 |
Total income taxes | $ (45) | $ (99) | $ 172 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | |||
Current | $ (4) | $ (1) | $ (6) |
Deferred | 15 | (6) | 230 |
Total | 11 | (7) | 224 |
Foreign | |||
Current | (67) | (56) | (122) |
Deferred | 1 | (20) | 92 |
Total | (66) | (76) | (30) |
State and other | |||
Current | (2) | (2) | (2) |
Deferred | (2) | (1) | 1 |
Total | (4) | (3) | (1) |
Current income tax (provision) benefit | (73) | (59) | (130) |
Deferred income tax (provision) benefit | 14 | (27) | 323 |
Total income tax (provision) benefit | $ (59) | $ (86) | $ 193 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Foreign Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (66) | $ (76) | $ (30) |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (19) | (32) | (7) |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (6) | (8) | 6 |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (1) | (6) | 0 |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (20) | (16) | (10) |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (1) | (1) | 1 |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (19) | $ (13) | $ (20) |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | 21.00% | 21.00% | 35.00% |
Increase (reduction) in tax rate from: | |||
Tax impact from foreign operations | 7.00% | 0.00% | (5.00%) |
Noncontrolling interests and equity earnings | 0.00% | (1.00%) | (2.00%) |
State and local income taxes, net of federal benefit | 2.00% | 1.00% | 1.00% |
Other permanent differences, net | 3.00% | 0.00% | (8.00%) |
Contingent liability accrual | 1.00% | 3.00% | (2.00%) |
U.S. taxes on foreign unremitted earnings | 3.00% | 0.00% | 0.00% |
Change in valuation allowance | (10.00%) | (2.00%) | (90.00%) |
Research and development credits, net of provision | (5.00%) | 0.00% | 0.00% |
U.S. tax reform | 0.00% | 0.00% | (7.00%) |
Effective tax rate on income from operations | 22.00% | 22.00% | (78.00%) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowances | $ 200 | $ 207 | |
Increase (decrease) in valuation allowance | (7) | (10) | |
Income from foreign sources | 824 | ||
Income from domestic sources | 432 | ||
Undistributed earnings of foreign subsidiaries | 2,300 | ||
Unrecognized tax benefits | 83 | ||
Decrease in unrecognized tax benefits | 35 | ||
Income tax penalties and interest accrued | 23 | 19 | |
Income tax penalties and interest expense | 3 | (1) | $ 5 |
Due to former parent upon receipt from IRS | 5 | 5 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 90 | 96 | 163 |
Federal Deferred Tax Asset | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | (223) | ||
Foreign Tax Credit Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ (17) | (152) | |
Other Net Deferred Tax Assets | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ (71) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities and Related Valuation Allowances) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Employee compensation and benefits | $ 103 | $ 95 |
Foreign tax credit carryforwards | 257 | 267 |
Loss carryforwards | 96 | 103 |
Insurance accruals | 7 | 9 |
Allowance for bad debt | 2 | 2 |
Accrued liabilities | 63 | 23 |
Construction contract accounting | 0 | 0 |
Other | 4 | 3 |
Total gross deferred tax assets | 532 | 502 |
Valuation allowances | (200) | (207) |
Net deferred tax assets | 332 | 295 |
Deferred tax liabilities: | ||
Construction contract accounting | (6) | (1) |
Intangible amortization | (56) | (57) |
Indefinite-lived intangible amortization | (49) | (41) |
Fixed asset depreciation | 2 | 1 |
Accrued foreign tax credit carryforwards | (3) | (2) |
Total gross deferred tax liabilities | (112) | (100) |
Deferred Tax Assets, Net | $ 220 | $ 195 |
Income Taxes Income Taxes (Summ
Income Taxes Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | $ 420 | |
Valuation Allowance | (200) | $ (207) |
Deferred Tax Assets, Net | 220 | $ 195 |
United States | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 370 | |
Valuation Allowance | (156) | |
Deferred Tax Assets, Net | 214 | |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | (6) | |
Valuation Allowance | 0 | |
Deferred Tax Liability, Net | (6) | |
Australia | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 12 | |
Valuation Allowance | 0 | |
Deferred Tax Assets, Net | 12 | |
Canada | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 23 | |
Valuation Allowance | (22) | |
Deferred Tax Assets, Net | 1 | |
Other countries | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 21 | |
Valuation Allowance | (22) | |
Deferred Tax Liability, Net | $ (1) |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Foreign tax credit carryforwards | $ 257 |
Foreign net operating loss carryforwards | 150 |
Foreign net operating loss carryforwards | 34 |
State net operating loss carryforwards | $ 1,024 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 90 | $ 184 | $ 261 |
Increases related to current year tax positions | 2 | 1 | 2 |
Increases related to prior year tax positions | 7 | 18 | 1 |
Decreases related to prior year tax positions | 0 | (45) | (1) |
Settlements | 0 | (62) | (80) |
Lapse of statute of limitations | (1) | (2) | (1) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | (1) | (4) | 2 |
Unrecognized tax benefits, ending balance | $ 97 | $ 90 | $ 184 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) $ in Millions | Jul. 09, 2019USD ($) | Jan. 31, 2014subcontractordefendent | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2011USD ($) |
United States Government Contract Work [Line Items] | ||||||
Cost of revenues | $ 4,986 | $ 4,329 | $ 3,732 | |||
Government Services | ||||||
United States Government Contract Work [Line Items] | ||||||
Billed costs | 80 | |||||
Cost of revenues | 52 | |||||
Government contract receivable | 28 | 73 | ||||
Total amount of payments withheld from subcontractors as result of disapproved costs related to Dcaa form 1 issued to enterprise | 26 | |||||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | ||||||
United States Government Contract Work [Line Items] | ||||||
Provision for doubtful accounts | 41 | 41 | ||||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | Contract Liabilities | ||||||
United States Government Contract Work [Line Items] | ||||||
Provision for doubtful accounts | 26 | 26 | ||||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | Other Liabilities | ||||||
United States Government Contract Work [Line Items] | ||||||
Provision for doubtful accounts | 15 | $ 15 | ||||
Private Security | ||||||
United States Government Contract Work [Line Items] | ||||||
Billed costs | 57 | |||||
Government contract receivable | 44 | |||||
Awarded interest, revenue recognized | $ 13 | |||||
First Kuwaiti Trading Company Arbitration | ||||||
United States Government Contract Work [Line Items] | ||||||
Damages awarded, value | 17 | |||||
Accounts payable | 32 | |||||
Payments on contract work | 19 | |||||
First Kuwaiti Trading Company Arbitration | Other Current Liabilities | Pay-When-Paid Terms | ||||||
United States Government Contract Work [Line Items] | ||||||
Payments on contract work | $ 30 | |||||
Howard qui tam | ||||||
United States Government Contract Work [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 628 | |||||
DOJFCA | ||||||
United States Government Contract Work [Line Items] | ||||||
Number of subcontractors | subcontractor | 2 | |||||
Loss contingency, number of defendants | defendent | 3 |
Other Commitments and Conting_2
Other Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 14 Months Ended | ||
Mar. 31, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | $ 42 | $ 48 | ||
Accounts Payable and Accrued Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | 14 | 16 | ||
Other Current Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | 2 | 3 | ||
Other Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Self insurance reserve, noncurrent | 26 | $ 29 | ||
Chadian Employee Class Action | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded, value | $ 34 | $ 25 | ||
Claims in unpaid bonuses | $ 122 | |||
Chadian Employee Class Action | Provisional Award | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded, value | $ 2 | |||
North West Rail Link Project | ||||
Loss Contingencies [Line Items] | ||||
Claims in unpaid bonuses | $ 300 | |||
Noncontrolling interest, ownership percentage by parent | 33.00% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)renewal_option | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Leased Assets [Line Items] | |||
Percentage of lease obligations | 85.00% | ||
Term of contract | 12 months | ||
Renewal term increments | 1 year | ||
Operating lease ROU asset amortization | $ 38 | ||
Other noncash operating lease costs | 16 | ||
Rent expense on operating leases under previous lease standard | $ 144 | $ 139 | |
Short-term lease commitments | $ 77 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating leases, future minimum payments due | 367 | ||
2019 | 76 | ||
2020 | 48 | ||
2021 | 39 | ||
2022 | 32 | ||
2023 | 29 | ||
Thereafter | $ 143 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Number of renewal options | renewal_option | 1 |
Leases (Schedule of Leasing Act
Leases (Schedule of Leasing Activity) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 54 |
Short-term lease cost | 121 |
Total lease cost | 175 |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | 56 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 20 |
Weighted-average remaining lease term-operating (in years) | 8 years |
Weighted-average discount rate-operating leases | 7.60% |
Leases (Schedule of Lease Matur
Leases (Schedule of Lease Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Future payments - operating leases | |||
2020 | $ 54 | ||
2021 | 44 | ||
2022 | 37 | ||
2023 | 33 | ||
2024 | 25 | ||
Thereafter | 119 | ||
Total | 312 | ||
Operating Leases | |||
Total | 312 | ||
Less imputed interest | 81 | ||
Present value of future lease payments | 231 | ||
Less current portion of lease obligations | 39 | $ 40 | $ 0 |
Noncurrent portion of lease obligations | $ 192 | $ 213 | $ 0 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activities) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,718 | $ 1,197 | $ 1,718 | $ 1,197 | $ 725 | |||||||||
Acquisition of noncontrolling interest | 69 | (8) | ||||||||||||
Cumulative effect of change in accounting policy | $ 50 | $ 144 | ||||||||||||
Adjusted balance | $ 1,768 | 1,768 | 1,341 | 1,768 | 1,341 | $ 725 | ||||||||
Acquisition of noncontrolling interest | 69 | |||||||||||||
Share-based compensation | 12 | 10 | 12 | |||||||||||
Tax benefit decrease related to share-based plans | 1 | |||||||||||||
Common stock issued upon exercise of stock options | 5 | 2 | ||||||||||||
Dividends declared to shareholders ($0.32/share) | (46) | (44) | (45) | |||||||||||
Repurchases of common stock | (4) | (3) | (53) | |||||||||||
Issuance of ESPP shares | 3 | 3 | 3 | |||||||||||
Investments by noncontrolling interests | 1 | 1 | ||||||||||||
Issuance of convertible debt and call spread overlay | 18 | |||||||||||||
Distributions to noncontrolling interests | (14) | (3) | (4) | |||||||||||
Other noncontrolling interests activity | 2 | (1) | ||||||||||||
Net income | $ 59 | $ 58 | $ 50 | 42 | 53 | $ 56 | $ 64 | 137 | 209 | 310 | 440 | |||
Net other comprehensive income (loss) | (77) | 12 | 127 | |||||||||||
Ending Balance | 1,857 | 1,718 | $ 1,857 | $ 1,718 | $ 1,197 | |||||||||
Dividends declared per share (usd per share) | $ 0.32 | $ 0.32 | $ 0.32 | |||||||||||
ASC 842 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of change in accounting policy | 21 | |||||||||||||
ASC 606 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of change in accounting policy | 29 | |||||||||||||
PIC | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | 2,190 | 2,091 | $ 2,190 | $ 2,091 | $ 2,088 | |||||||||
Acquisition of noncontrolling interest | (8) | |||||||||||||
Adjusted balance | 2,190 | 2,091 | ||||||||||||
Acquisition of noncontrolling interest | 69 | |||||||||||||
Share-based compensation | 12 | 10 | 12 | |||||||||||
Tax benefit decrease related to share-based plans | 1 | |||||||||||||
Common stock issued upon exercise of stock options | 5 | 2 | ||||||||||||
Issuance of ESPP shares | (1) | (1) | (1) | |||||||||||
Issuance of convertible debt and call spread overlay | 18 | |||||||||||||
Ending Balance | 2,206 | 2,190 | 2,206 | 2,190 | 2,091 | |||||||||
Retained Earnings | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | 1,235 | 854 | 1,235 | 854 | 467 | |||||||||
Cumulative effect of change in accounting policy | 144 | |||||||||||||
Adjusted balance | 1,285 | 998 | ||||||||||||
Dividends declared to shareholders ($0.32/share) | (46) | (44) | (45) | |||||||||||
Net income | 202 | 281 | 432 | |||||||||||
Ending Balance | 1,441 | 1,235 | 1,441 | 1,235 | 854 | |||||||||
Retained Earnings | ASC 842 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of change in accounting policy | 21 | |||||||||||||
Retained Earnings | ASC 606 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of change in accounting policy | 29 | |||||||||||||
Treasury Stock | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | (817) | (818) | (817) | (818) | (769) | |||||||||
Adjusted balance | (817) | (818) | ||||||||||||
Repurchases of common stock | (4) | (3) | (53) | |||||||||||
Issuance of ESPP shares | 4 | 4 | 4 | |||||||||||
Ending Balance | (817) | (817) | (817) | (817) | (818) | |||||||||
AOCL | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | (910) | (922) | (910) | (922) | (1,049) | |||||||||
Adjusted balance | (910) | (922) | ||||||||||||
Net other comprehensive income (loss) | (77) | 12 | 127 | |||||||||||
Ending Balance | (987) | (910) | (987) | (910) | (922) | |||||||||
NCI | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 20 | $ (8) | 20 | (8) | (12) | |||||||||
Adjusted balance | $ 20 | $ (8) | ||||||||||||
Investments by noncontrolling interests | 1 | 1 | ||||||||||||
Distributions to noncontrolling interests | (14) | (3) | (4) | |||||||||||
Other noncontrolling interests activity | 2 | (1) | ||||||||||||
Net income | 7 | 29 | 8 | |||||||||||
Net other comprehensive income (loss) | 0 | |||||||||||||
Ending Balance | $ 14 | $ 20 | $ 14 | $ 20 | $ (8) |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (987) | $ (910) | $ (922) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 1,718 | 1,197 | 725 |
Other comprehensive income adjustments before reclassifications | (93) | (27) | |
Amounts reclassified from AOCL | 16 | 39 | |
Total other comprehensive income (loss) | (77) | 12 | 127 |
Ending Balance | 1,857 | 1,718 | 1,197 |
Accumulated foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (315) | (304) | (259) |
Accumulated other comprehensive loss, tax | (3) | (2) | (4) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (304) | (259) | |
Other comprehensive income adjustments before reclassifications | (3) | (51) | |
Amounts reclassified from AOCL | (8) | 6 | |
Total other comprehensive income (loss) | (11) | (45) | |
Ending Balance | (315) | (304) | (259) |
Accumulated pension liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (654) | (592) | (660) |
Accumulated other comprehensive loss, tax | (224) | (213) | (227) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (592) | (660) | |
Other comprehensive income adjustments before reclassifications | (76) | 44 | |
Amounts reclassified from AOCL | 14 | 24 | |
Total other comprehensive income (loss) | (62) | 68 | |
Ending Balance | (654) | (592) | (660) |
Changes in fair value for derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (18) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income adjustments before reclassifications | (14) | ||
Amounts reclassified from AOCL | 10 | ||
Total other comprehensive income (loss) | (4) | ||
Ending Balance | (18) | ||
Changes in fair value of derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | (14) | (3) | |
Accumulated other comprehensive loss, tax | (5) | (3) | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (14) | (3) | |
Other comprehensive income adjustments before reclassifications | (20) | ||
Amounts reclassified from AOCL | 9 | ||
Total other comprehensive income (loss) | (11) | ||
Ending Balance | (14) | (3) | |
AOCL | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (910) | (922) | (1,049) |
Total other comprehensive income (loss) | (77) | 12 | 127 |
Ending Balance | $ (987) | $ (910) | $ (922) |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on consolidation of Aspire subcontracting entities | $ 0 | $ 108 | $ 0 | ||||||||
Tax benefit | 59 | 86 | (193) | ||||||||
Net pension and post-retirement benefits | (16) | (39) | |||||||||
Other non-operating income (loss) | 5 | (6) | 4 | ||||||||
Net income | $ 59 | $ 58 | $ 50 | $ 42 | $ 53 | $ 56 | $ 64 | $ 137 | 209 | 310 | $ 440 |
Accumulated foreign currency adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | 8 | (6) | |||||||||
Changes in fair value for derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | (10) | ||||||||||
Changes in fair value of derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net pension and post-retirement benefits | (9) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated foreign currency adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on consolidation of Aspire subcontracting entities | 8 | (6) | |||||||||
Tax benefit | 0 | 0 | |||||||||
Net income | 8 | (6) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of actuarial loss | (17) | (28) | |||||||||
Tax benefit | 3 | 4 | |||||||||
Net pension and post-retirement benefits | (14) | (24) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value for derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit | 0 | ||||||||||
Other non-operating income (loss) | (10) | ||||||||||
Net income | $ (10) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value of derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit | 0 | ||||||||||
Other non-operating income (loss) | (9) | ||||||||||
Net income | $ (9) |
Shareholders' Equity (Shares of
Shareholders' Equity (Shares of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 177,383,302 | 176,600,000 |
Common stock issued (in shares) | 900,000 | 800,000 |
Ending balance (in shares) | 178,330,201 | 177,383,302 |
Shareholders' Equity (Shares _2
Shareholders' Equity (Shares of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 36,483,270 | 36,500,000 | |
Beginning balance | $ 817 | $ 818 | |
Treasury stock acquired, net of ESPP shares issued (in shares) | 0 | 0 | |
Treasury stock acquired, net of ESPP shares issued | $ 0 | $ (1) | |
Ending balance (in shares) | 36,511,053 | 36,483,270 | 36,500,000 |
Ending balance | $ 817 | $ 817 | $ 818 |
Dividends declared to shareholders | $ 46 | $ 44 | $ 45 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Percentage of employee's earnings withheld | 10.00% | |||
Number of Shares | 194,124 | 175,469 | ||
Average Price per Share (usd per share) | $ 20.59 | $ 15.81 | ||
Repurchases of common stock | $ 4,000,000 | $ 3,000,000 | $ 53,000,000 | |
Share Repurchase Program 2014 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 350,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 | |||
Number of Shares | 0 | 0 | ||
Average Price per Share (usd per share) | $ 0 | $ 0 | ||
Repurchases of common stock | $ 0 | $ 0 | ||
Share Maintenance Plan | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of Shares | 0 | 0 | ||
Average Price per Share (usd per share) | $ 0 | $ 0 | ||
Repurchases of common stock | $ 0 | $ 0 |
Share-based Compensation and _3
Share-based Compensation and Incentive Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||||
May 31, 2016 | May 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected term | 10 years | |||||||
Income tax benefit recognized in net income for share-based compensation | $ 3,000,000 | $ 2,000,000 | $ 4,000,000 | |||||
Share-based compensation expense | 12,000,000 | $ 10,000,000 | $ 12,000,000 | |||||
Cost of Sales | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | 2,000,000 | |||||||
Selling, General and Administrative Expenses | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 10,000,000 | |||||||
Stock Compensation Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized | 4,400,000 | 2,000,000 | ||||||
Common stock reserved for issuance (in shares) | 16,400,000 | 5,500,000 | 5,500,000 | |||||
Stock Compensation Plan | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized | 4,400,000 | |||||||
Common stock reserved for issuance (in shares) | 9,900,000 | 2,600,000 | 2,600,000 | |||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options granted | 0 | 0 | 0 | |||||
Total intrinsic values of options exercised | $ 300,000 | $ 100,000 | $ 400,000 | |||||
Unrecognized compensation cost, net of estimated forfeitures | 0 | $ 0 | ||||||
Stock option compensation expense | 0 | 0 | 1,000,000 | |||||
Income tax benefit recognized in net income for share-based compensation | $ 0 | $ 0 | $ 0 | |||||
Maximum withhold percentage | 10.00% | 10.00% | ||||||
Percentage of discount on stock price | 5.00% | |||||||
ESPP stock issued (in shares) | 166,000 | 164,000 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost, net of estimated forfeitures | $ 13,000,000 | $ 13,000,000 | ||||||
Weighted average grant-date fair value per share (usd per share) | $ 19.01 | $ 15.93 | $ 15.11 | |||||
Restricted stock compensation expense | $ 12,000,000 | $ 10,000,000 | $ 11,000,000 | |||||
Income tax benefit recognized in net income for share-based compensation | $ 3,000,000 | 2,000,000 | 4,000,000 | |||||
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 9 months 29 days | |||||||
Weighted-Average Fair Value On Vesting Date | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total fair value of shares vested based on the weighted-average fair value | $ 14,000,000 | 10,000,000 | 10,000,000 | |||||
Weighted-Average Fair Value On Grant Date | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total fair value of shares vested based on the weighted-average fair value | $ 11,000,000 | $ 10,000,000 | $ 11,000,000 | |||||
Cash Performance Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of average total shareholder return | 50.00% | 50.00% | 50.00% | |||||
Percentage of job income sold | 50.00% | 50.00% | 50.00% | |||||
Period of target level average | 3 years | |||||||
Number of shares, granted | 19,000,000 | 18,000,000 | 19,000,000 | |||||
Award vesting period | 3 years | |||||||
Number of cash performance based award units forfeited (in shares) | 3,000,000 | 3,000,000 | 5,000,000 | |||||
Outstanding awards balance (in shares) | 49,000,000 | 49,000,000 | ||||||
Expense for cash performance awards | $ 34,000,000 | $ 15,000,000 | $ 22,000,000 | |||||
Liability for awards due within one year | 27,000,000 | 13,000,000 | $ 27,000,000 | |||||
Liability for awards | $ 23,000,000 | $ 17,000,000 | $ 23,000,000 | |||||
Cash Performance Awards | Scenario, Forecast | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | 3 years |
Share-based Compensation and _4
Share-based Compensation and Incentive Plans (Summary of Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at December 31, Number of Shares | 2,090,519 | ||
Granted, Number of Shares | 0 | 0 | 0 |
Exercised, Number of Shares | (289,942) | ||
Forfeited, Number of Shares | 0 | ||
Expired, Number of Shares | (197,990) | ||
Outstanding at December 31, Number of Shares | 1,602,587 | 2,090,519 | |
Exercisable, Number of Shares | 1,601,297 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding at December 31, Weighted Average Exercise Price per Share (usd per share) | $ 24.34 | ||
Granted, Weighted Average Exercise Price per Share (usd per share) | 0 | ||
Exercised, Weighted Average Exercise Price per Share (usd per share) | 16.26 | ||
Forfeited, Weighted Average Exercise Price per Share (usd per share) | 0 | ||
Expired, Weighted Average Exercise Price per Share (usd per share) | 16.68 | ||
Outstanding at December 31, Weighted Average Exercise Price per Share (usd per share) | 26.74 | $ 24.34 | |
Exercisable, Weighted Average Exercise Price per Share (usd per share) | $ 26.73 | ||
Weighted Average Remaining Contractual Term (years) | 3 years 3 months 29 days | 3 years 10 months 17 days | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 3 years 3 months 29 days | ||
Aggregate Intrinsic Value, beginning balance | $ 830 | ||
Aggregate Intrinsic Value, ending balance | 870 | $ 830 | |
Exercisable, Aggregate Intrinsic Value | $ 870 |
Share-based Compensation and _5
Share-based Compensation and Incentive Plans (Summary of Vested and Unvested RSUs) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested shares at December 31, Number of Shares | shares | 1,136,791 |
Granted, Number of Shares | shares | 802,025 |
Vested, Number of Shares | shares | (675,366) |
Forfeited, Number of Shares | shares | (33,405) |
Nonvested shares at December 31, Number of Shares | shares | 1,230,045 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 15.32 |
Granted, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 19.01 |
Vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 15.92 |
Forfeited, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | 16.44 |
Nonvested shares at December 31, Weighted Average Grant-Date Fair Value per Share (usd per share) | $ / shares | $ 17.37 |
Share-based Compensation and _6
Share-based Compensation and Incentive Plans (Summary of Share-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 12 | $ 10 | $ 12 |
Income tax benefit recognized in net income for share-based compensation | 3 | 2 | 4 |
Incremental compensation cost | $ 0 | $ 1 | $ 0 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding (in shares) | 141 | 140 | 141 |
Stock options, restricted shares, and convertible debt (in shares) | 1 | 1 | 0 |
Diluted weighted average common shares outstanding (in shares) | 142 | 141 | 141 |
Income per Share (Narrative) (D
Income per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Undistributed earnings (loss) allocated to participating securities, diluted | $ 1.5 | $ 1.8 | $ 3 |
Undistributed earnings (loss) allocated to participating securities, diluted (usd per share) | $ 0.01 | $ 0.01 | $ 0.02 |
Antidilutive weighted average shares (in shares) | 1.3 | 1.5 | 2.1 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Foreign Currency Risk) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Maximum length of time hedged in balance sheet hedge | 21 days |
Maximum length of time hedged in cash flow hedge | 7 months |
Balance Sheet Hedge | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Derivative, notional amount | $ 52,000,000 |
Cash Flow Hedging | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Cash flow hedge | $ 5,000,000 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Summary of Changes in Fair Value of Balance Sheet Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Balance Sheet Hedges - Fair Value | $ 1 | $ 0 |
Balance Sheet Position - Remeasurement | 3 | (9) |
Net | $ 4 | $ (9) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Interest Rate Risk) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 10, 2018 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Maximum length of time hedged in balance sheet hedge | 21 days | ||
Interest Rate Swap | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Derivative, notional amount | $ 500,000,000 | ||
Maximum length of time hedged in balance sheet hedge | 4 years | ||
Fair value of interest rate swaps | $ 21,000,000 | $ 12,000,000 | |
Unrealized net losses on interest rate swaps | 21,000,000 | 12,000,000 | |
Interest Rate Swap | Other Current Liabilities | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Fair value of interest rate swaps | 8,000,000 | 3,000,000 | |
Interest Rate Swap | Other Liabilities | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Fair value of interest rate swaps | $ 13,000,000 | $ 9,000,000 | |
Interest Rate Swap | LIBOR | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Fixed interest rate | 3.055% |
Impact on Previously Issued F_3
Impact on Previously Issued Financial Statements for the Correction of an Error (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 23 |
Impact on Previously Issued F_4
Impact on Previously Issued Financial Statements for the Correction of an Error (Statement of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Equity in earnings of unconsolidated affiliates | $ 11 | $ 9 | $ 15 | $ 0 | $ 29 | $ 17 | $ 12 | $ 21 | $ 35 | $ 79 | $ 70 |
Operating income | 88 | 104 | 92 | 78 | 90 | 99 | 100 | 179 | 362 | 468 | 264 |
Net income | 59 | 58 | 50 | 42 | 53 | 56 | 64 | 137 | 209 | 310 | 440 |
Net income attributable to KBR | $ 58 | $ 56 | $ 48 | $ 40 | $ 47 | $ 54 | $ 44 | $ 136 | $ 202 | $ 281 | $ 432 |
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.42 | $ 1.99 | $ 3.05 |
Diluted (usd per share) | $ 0.40 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.41 | $ 1.99 | $ 3.05 |
As Previously Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Equity in earnings of unconsolidated affiliates | $ 27 | ||||||||||
Operating income | 88 | ||||||||||
Net income | 49 | ||||||||||
Net income attributable to KBR | $ 43 | ||||||||||
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 0.31 | ||||||||||
Diluted (usd per share) | $ 0.31 | ||||||||||
Adjustments | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Equity in earnings of unconsolidated affiliates | $ 2 | ||||||||||
Operating income | 2 | ||||||||||
Net income | 4 | ||||||||||
Net income attributable to KBR | $ 4 | ||||||||||
Net income attributable to KBR per share: | |||||||||||
Basic (usd per share) | $ 0.02 | ||||||||||
Diluted (usd per share) | $ 0.02 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 1,452 | $ 1,425 | $ 1,422 | $ 1,340 | $ 1,330 | $ 1,278 | $ 1,267 | $ 1,038 | $ 5,639 | $ 4,913 | $ 4,171 |
Gross profit | 171 | 169 | 160 | 153 | 157 | 149 | 161 | 117 | 653 | 584 | 439 |
Equity in earnings of unconsolidated affiliates | 11 | 9 | 15 | 0 | 29 | 17 | 12 | 21 | 35 | 79 | 70 |
Operating income | 88 | 104 | 92 | 78 | 90 | 99 | 100 | 179 | 362 | 468 | 264 |
Net income | 59 | 58 | 50 | 42 | 53 | 56 | 64 | 137 | 209 | 310 | 440 |
Net income attributable to noncontrolling interests | (1) | (2) | (2) | (2) | (6) | (2) | (20) | (1) | (7) | (29) | (8) |
Net income attributable to KBR | $ 58 | $ 56 | $ 48 | $ 40 | $ 47 | $ 54 | $ 44 | $ 136 | $ 202 | $ 281 | $ 432 |
Net income attributable to KBR per share: | |||||||||||
Net income attributable to KBR per share—Basic (usd per share) | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.42 | $ 1.99 | $ 3.05 |
Net income attributable to KBR per share—Diluted (usd per share) | $ 0.40 | $ 0.39 | $ 0.34 | $ 0.28 | $ 0.33 | $ 0.38 | $ 0.31 | $ 0.96 | $ 1.41 | $ 1.99 | $ 3.05 |
Aspire | |||||||||||
Net income attributable to KBR per share: | |||||||||||
Gain on consolidation | $ 108 | $ 108 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning Period | $ 9 | $ 12 | $ 14 |
Charged to Costs and Expenses | 13 | 3 | 0 |
Charged to Other Accounts | 3 | 0 | 0 |
Deductions | (11) | (6) | (2) |
Balance at End of Period | 14 | 9 | 12 |
Reserve for losses on uncompleted contracts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning Period | 6 | 15 | 63 |
Charged to Costs and Expenses | 12 | 9 | 4 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (8) | (18) | (52) |
Balance at End of Period | 10 | 6 | 15 |
Reserve for potentially disallowable costs incurred under government contracts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning Period | 55 | 60 | 73 |
Charged to Costs and Expenses | 5 | 13 | 1 |
Charged to Other Accounts | 0 | 2 | 0 |
Deductions | (2) | (20) | (14) |
Balance at End of Period | $ 58 | 55 | $ 60 |
SGT | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reserves charged to other accounts | $ 2 |