Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33146 | |
Entity Registrant Name | KBR, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4536774 | |
Entity Address, Address Line One | 601 Jefferson Street, Suite 3400 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 753-2000 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | KBR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 135,722,134 | |
Amendment Flag | false | |
Entity Central Index Key | 0001357615 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 1,703 | $ 1,714 |
Cost of revenues | (1,458) | (1,518) |
Gross profit | 245 | 196 |
Equity in earnings (losses) of unconsolidated affiliates | 23 | (118) |
Selling, general and administrative expenses | (124) | (107) |
Other | 0 | (2) |
Operating income (loss) | 144 | (31) |
Interest expense | (26) | (20) |
Other non-operating expense | (2) | 0 |
Income (loss) before income taxes | 116 | (51) |
Provision for income taxes | (30) | (19) |
Net income (loss) | 86 | (70) |
Less: Net income attributable to noncontrolling interests | 0 | 1 |
Net income (loss) attributable to KBR | $ 86 | $ (71) |
Net income (loss) attributable to KBR per share | ||
Basic (in usd per share) | $ 0.62 | $ (0.51) |
Diluted (in usd per share) | $ 0.56 | $ (0.51) |
Basic weighted average common shares outstanding (in shares) | 137 | 140 |
Diluted weighted average common shares outstanding (in shares) | 154 | 140 |
Cash dividends declared per share (in usd per share) | $ 0.135 | $ 0.120 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 86 | $ (70) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 15 | (19) |
Pension and post-retirement benefits | 0 | 6 |
Changes in fair value of derivatives | (10) | 24 |
Other comprehensive income (loss) | 5 | 11 |
Income tax expense: | ||
Pension and post-retirement benefits | 0 | (1) |
Changes in fair value of derivatives | 2 | (5) |
Income tax expense | 2 | (6) |
Other comprehensive income, net of tax | 7 | 5 |
Comprehensive income (loss) | 93 | (65) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 1 |
Comprehensive income (loss) attributable to KBR | $ 93 | $ (66) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 416 | $ 389 |
Accounts receivable, net of allowance for credit losses of $9 and $9, respectively | 1,076 | 942 |
Contract assets | 258 | 252 |
Other current assets | 162 | 164 |
Total current assets | 1,912 | 1,747 |
Pension Assets | 62 | 46 |
Property, plant, and equipment, net of accumulated depreciation of $418 and $417 (including net PPE of $27 and $22 owned by a variable interest entity), respectively | 206 | 182 |
Operating lease right-of-use assets | 149 | 164 |
Goodwill | 2,095 | 2,087 |
Intangible assets, net of accumulated amortization of $346 and $332, respectively | 642 | 645 |
Equity in and advances to unconsolidated affiliates | 172 | 188 |
Deferred income taxes | 205 | 213 |
Other assets | 293 | 294 |
Total assets | 5,736 | 5,566 |
Current liabilities: | ||
Accounts payable | 755 | 637 |
Contract liabilities | 282 | 275 |
Accrued salaries, wages and benefits | 285 | 325 |
Current maturities of long-term debt | 367 | 364 |
Operating lease liabilities | 47 | 48 |
Other current liabilities | 192 | 172 |
Total current liabilities | 1,928 | 1,821 |
Employee compensation and benefits | 94 | 105 |
Income tax payable | 118 | 117 |
Deferred income taxes | 94 | 92 |
Long-term debt | 1,374 | 1,376 |
Operating lease liabilities | 185 | 193 |
Other liabilities | 286 | 230 |
Total liabilities | 4,079 | 3,934 |
Commitments and Contingencies (Notes 6, 11 and 12) | ||
KBR shareholders’ equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.001 par value 300,000,000 shares authorized, 181,420,685 and 180,807,960 shares issued, and 136,039,210 and 136,505,145 shares outstanding, respectively | 0 | 0 |
PIC | 2,244 | 2,235 |
Retained earnings | 1,478 | 1,410 |
Treasury stock, 45,381,475 shares and 44,302,815 shares, at cost, respectively | (1,203) | (1,143) |
AOCL | (875) | (882) |
Total KBR shareholders’ equity | 1,644 | 1,620 |
Noncontrolling interests | 13 | 12 |
Total shareholders’ equity | 1,657 | 1,632 |
Total liabilities and shareholders’ equity | $ 5,736 | $ 5,566 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9 | $ 9 |
Accumulated depreciation, PP&E | 418 | 417 |
PP&E owned by a VIE, net | 27 | 22 |
Accumulated amortization, intangibles | $ 346 | $ 332 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 181,420,685 | 180,807,960 |
Common stock, shares outstanding (in shares) | 136,039,210 | 136,505,145 |
Treasury stock, shares (in shares) | 45,381,475 | 44,302,815 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | PIC | Retained Earnings | Treasury Stock | AOCL | NCI |
Beginning balance at Dec. 31, 2021 | $ 1,683 | $ 2,206 | $ 1,287 | $ (943) | $ (881) | $ 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 5 | 5 | ||||
Common stock issued upon exercise of stock options | 4 | 4 | ||||
Dividends declared to shareholders | (17) | (17) | ||||
Repurchases of common stock | (33) | (33) | ||||
Issuance of ESPP shares | 1 | 1 | ||||
Other | 0 | 1 | (1) | |||
Net income | (70) | (71) | 1 | |||
Other comprehensive income (loss), net of tax | 5 | 5 | ||||
Ending balance at Mar. 31, 2022 | 1,578 | 2,216 | 1,200 | (976) | (876) | 14 |
Beginning balance at Dec. 31, 2022 | 1,632 | 2,235 | 1,410 | (1,143) | (882) | 12 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 6 | 6 | ||||
Common stock issued upon exercise of stock options | 2 | 2 | ||||
Dividends declared to shareholders | (18) | (18) | ||||
Repurchases of common stock | (61) | (61) | ||||
Issuance of ESPP shares | 2 | 1 | 1 | |||
Distributions to noncontrolling interests | (1) | (1) | ||||
Other | 2 | 2 | ||||
Net income | 86 | 86 | ||||
Other comprehensive income (loss), net of tax | 7 | 7 | ||||
Ending balance at Mar. 31, 2023 | $ 1,657 | $ 2,244 | $ 1,478 | $ (1,203) | $ (875) | $ 13 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per share (in usd per share) | $ 0.135 | $ 0.120 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 86 | $ (70) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 36 | 33 | |
Equity in (earnings) losses of unconsolidated affiliates | (23) | 118 | |
Deferred income tax | 14 | 16 | |
Other | 10 | 12 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net of allowance for credit losses | (130) | 370 | |
Contract assets | (7) | 14 | |
Accounts payable | 110 | (400) | |
Contract liabilities | 6 | 24 | |
Accrued salaries, wages and benefits | (36) | (43) | |
Payments on operating lease obligation | (17) | (14) | |
Payments from unconsolidated affiliates, net | 6 | 7 | |
Distributions of earnings from unconsolidated affiliates | 24 | 30 | |
Pension funding | (4) | (11) | |
Other assets and liabilities | (40) | 3 | |
Total cash flows provided by operating activities | 35 | 89 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (19) | (6) | |
Proceeds from sale of assets or investments | 0 | 18 | |
Return of (investments in) equity method joint ventures, net | 61 | ||
Return of (investments in) equity method joint ventures, net | (1) | ||
Other | 0 | 1 | |
Total cash flows provided by investing activities | 42 | 12 | |
Cash flows from financing activities: | |||
Payments on short-term and long-term debt | (4) | (4) | |
Payments of dividends to shareholders | (16) | (15) | |
Net proceeds from issuance of common stock | 2 | 4 | |
Payments to reacquire common stock | (61) | (33) | |
Other | 25 | (4) | |
Total cash flows used in financing activities | (54) | (52) | |
Effect of exchange rate changes on cash | 4 | (7) | |
Increase in cash and cash equivalents | 27 | 42 | |
Cash and cash equivalents at beginning of period | 389 | 370 | $ 370 |
Cash and cash equivalents at end of period | 416 | 412 | $ 389 |
Noncash investing and financing activities | |||
Leasehold improvements paid by landlord | 7 | 0 | |
Accrued but unpaid purchases of property, plant and equipment | 11 | 0 | |
Dividends declared | $ 18 | $ 17 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2022 Annual Report on Form 10-K. The condensed consolidated financial statements include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2023, the results of our operations for the three months ended March 31, 2023 and 2022 and our cash flows for the three months ended March 31, 2023 and 2022. Certain amounts in prior periods have been reclassified to conform with current period presentation. There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather. We generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Our significant accounting policies are detailed in "Note 1. Significant Accounting Policies" of our 2022 Annual Report on Form 10-K. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary (collectively, the "Company," "KBR", "we", "us" or "our"). We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 7 "Equity Method Investments and Variable Interest Entities" to our condensed consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Basis of Presentation On December 13, 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. In a 52 week fiscal year, each of the Company’s quarterly periods will comprise 13 weeks. The additional week in a 53 week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. The Company’s first 53 week fiscal year will occur in fiscal year 2024. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. The change will impact the prior year comparability of each of the fiscal quarters and the annual period for the year ending December 31, 2023, however, the impact will not be material. The Company believes this change will improve comparability between periods by eliminating the year-over-year variability in calendar month productive days and provide a more consistent reporting cadence for operational leaders to aid in strategic decision making. As a result of our change in a fiscal year end, goodwill will be tested annually for possible impairment as of the first day of our fourth quarter each fiscal year, and on an interim basis when indicators of possible impairment exist. Impact of Adoption of New Accounting Standards Effective January 1, 2023, we adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of this standard did not have an impact on our condensed consolidated financial statements. However, the ultimate impact is dependent upon the size and frequency of future acquisitions. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, government programs and joint ventures represent a substantial part of our operations. We are organized into two core business segments, Government Solutions and Sustainable Technology Solutions and one non-core business segment as described below: Government Solutions. Our Government Solutions business segment provides full life-cycle support solutions to defense, intelligence, space, aviation and other programs and missions for military and other government agencies primarily in the U.S., U.K. and Australia. KBR's services cover the full spectrum spanning research and development, advanced prototyping, acquisition support, systems engineering, C5ISR, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, operations readiness and support and professional advisory services across the defense, renewable energy and critical infrastructure sectors. Sustainable Technology Solutions. Our Sustainable Technology Solutions business segment is anchored by our portfolio of over 70 innovative, proprietary, sustainability-focused process technologies that accelerate and enable energy transition across the industrial base in four primary verticals: ammonia/syngas, chemical/petrochemicals, clean refining and circular process/circular economy solutions. STS also provides highly synergistic services including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions, high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization, as well as our digitally-enabled operating and monitoring solutions. Through early planning and scope definition, advanced technologies and facility life-cycle optimization, our STS business segment works closely with customers to provide what we believe is the optimal approach to maximize their return on investment. Other. Our non-core Other segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above. Operations by Reportable Segment Three Months Ended March 31, 2023 2022 Dollars in millions Revenues: Government Solutions $ 1,328 $ 1,459 Sustainable Technology Solutions 375 255 Total revenues $ 1,703 $ 1,714 Operating income (loss): Government Solutions $ 102 $ 116 Sustainable Technology Solutions 82 (106) Other (40) (41) Total operating income (loss) $ 144 $ (31) |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue We disaggregate our revenue from customers by business unit, geographic destination and contract type for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue by business unit and reportable segment was as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Government Solutions Science & Space $ 279 $ 253 Defense & Intel 363 378 Readiness & Sustainment 405 533 International 281 295 Total Government Solutions 1,328 1,459 Sustainable Technology Solutions 375 255 Total revenue $ 1,703 $ 1,714 Government Solutions revenue earned from key U.S. government customers includes U.S. DoD agencies and NASA, and is reported as Science & Space, Defense & Intel and Readiness & Sustainment. Government Solutions revenue earned from non-U.S. government customers primarily includes the U.K. MoD and the Australian Defence Force and is reported as International. Revenue by geographic destination was as follows: Three Months Ended March 31, 2023 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 718 $ 131 $ 849 Europe 447 58 505 Middle East 26 87 113 Australia 101 18 119 Africa 19 18 37 Asia 3 38 41 Other countries 14 25 39 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,011 $ 109 $ 1,120 Europe 283 32 315 Middle East 39 49 88 Australia 90 — 90 Africa 18 17 35 Asia 3 42 45 Other countries 15 6 21 Total revenue $ 1,459 $ 255 $ 1,714 Many of our contracts contain cost reimbursable, time-and-materials and fixed price components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows: Three Months Ended March 31, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 815 $ — $ 815 Time-and-Materials 263 233 496 Fixed Price 250 142 392 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 955 $ — $ 955 Time-and-Materials 235 175 410 Fixed Price 269 80 349 Total revenue $ 1,459 $ 255 $ 1,714 Performance Obligations and Contract Liabilities On March 31, 2023, we had $11.3 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 39% of our remaining performance obligations as revenue within one year, 33% in years two through five and 28% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of March 31, 2023. We recognized revenue of $126 million and $82 million for the three months ended March 31, 2023 and 2022, respectively, which was previously included in the contract liability balance at the beginning of each period. Accounts Receivable March 31, December 31, Dollars in millions 2023 2022 Unbilled $ 583 $ 486 Trade & other 493 456 Accounts receivable $ 1,076 $ 942 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions VIMA Group On August 2, 2022, we acquired VIMA Group, a U.K.-based leading provider of digital transformation solutions to defense and other public sector clients. VIMA Group is reported within our GS business segment. We accounted for this transaction as an acquisition of a business using the acquisition method under Business Combinations (Topic 805) . The agreed-upon purchase price for the acquisition was $82 million. The purchase price consisted of cash paid at closing of $75 million, subject to certain working capital and other closing adjustments, $4 million of deferred consideration and contingent consideration with an estimated fair value of $3 million that was contingent upon the achievement of certain performance targets from closing through December 31, 2022. As the targets were not met, no consideration was paid and we recorded a benefit of $3 million in our consolidated statements of operations for the year ended December 31, 2022. We recognized $2 million as an intangible backlog asset, $11 million in customer relationships, $3 million in net working capital, $2 million in deferred income tax liability and $68 million of goodwill arising from the acquisition, which relates primarily to future growth opportunities. The purchase price allocation for the business combination is considered final. For U.S. tax purposes, the transaction is treated as a stock deal. As a result, there is no step-up in tax basis in the individual assets and liabilities acquired and the goodwill recognized is not deductible for tax purposes. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include cash balances held by our wholly owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture and the Aspire project cash balances are limited to specific project activities and are not available for other projects, new acquisitions and joint ventures, general cash needs or distribution to us without approval of the board of directors of the respective entities. The cash and cash equivalents held in consolidated joint ventures and the Aspire project are expected to be used for their respective project costs and distributions of earnings. The components of our cash and cash equivalents balance are as follows: March 31, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 255 $ 38 $ 293 Short-term investments (c) 7 2 9 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 100 14 114 Total $ 362 $ 54 $ 416 December 31, 2022 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 251 $ 25 $ 276 Short-term investments (c) 4 2 6 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 99 8 107 Total $ 354 $ 35 $ 389 (a) Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes. (b) Includes U.S. dollar and foreign currency deposits held in U.S. entities with operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds and other highly liquid short-term investments. |
Unapproved Change Orders and Cl
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | 3 Months Ended |
Mar. 31, 2023 | |
Contractors [Abstract] | |
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2023 2022 Amounts included in project estimates-at-completion at January 1, $ 48 $ 426 Net increase (decrease) in project estimates 13 (117) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project estimates-at-completion at March 31, $ 61 $ 45 The balance as of March 31, 2023 primarily relates to projects in our Government Solutions segment. Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of legacy projects and legal matters. We generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Sanctions and trade control measures were implemented against Russia due to the ongoing conflict between Russia and Ukraine. These measures may impact our ability to operate in the region as we continue to carry out efforts to wind down our operations in Russia. During the three months ended March 31, 2022, we recognized an unfavorable change of $12 million in gross profit and incurred $4 million in severance and asset impairments costs associated with exiting commercial projects in Russia. During the three months ended March 31, 2022, within our STS business segment, we recognized a non-cash charge to equity in earnings of unconsolidated affiliates of $137 million as a result of changes in estimates on the Ichthys LNG Project in connection with a settlement agreement (the “Subcontractor Settlement Agreement”) entered into to resolve outstanding claims and disputes between JKC and the consortium of subcontractors. |
Equity Method Investments and V
Equity Method Investments and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Variable Interest Entities | Equity Method Investments and Variable Interest Entities We conduct some of our operations through joint ventures, which operate through partnerships, corporations and undivided interests and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are VIEs. The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Three Months Ended March 31, Year Ended December 31, 2023 2022 Dollars in millions Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 23 (80) Distributions of earnings of unconsolidated affiliates (b) (15) (53) Payments from unconsolidated affiliates, net (6) (14) (Return of) investments in equity method investment, net (c) (61) (198) Sale of equity method investment (d)(a) — (31) Foreign currency translation adjustments 1 (15) Other (e) 42 3 Ending balance $ 172 $ 188 (a) During 2022, a non-cash charge of $137 million was recorded for settlement agreements associated with the Ichthys LNG project. Additionally, during the third quarter of 2022, we recorded a charge against a joint venture acquired from a historical GS acquisition of $10 million based on our funding obligations of projected losses. In the fourth quarter of 2022, we divested this joint venture and recorded an incremental loss on sale of $3 million. The remaining equity in earnings (losses) of unconsolidated affiliates in 2023 and 2022 is related to normal activities within our other joint ventures. (b) In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our condensed consolidated statements of cash flows. (c) For the three months ended March 31, 2023, we received a return of investment from JKC of approximately $61 million related to the second payment received from the Subcontractor Settlement Agreement. For the year ended December 31, 2022, we received a return of investment from JKC of approximately $190 million related to the first payment from the Subcontractor Settlement Agreement and from BRJV of $10 million as our cumulative distributions from inception of the joint venture exceeded our cumulative earnings. (d) During the first quarter of 2022, we sold two of our four U.K. Road investments. The carrying value of our investment was $22 million. We received $18 million in cash proceeds and the purchaser agreed to assume the $4 million of consortium relief. In the second quarter of 2022, we sold an additional U.K. Road investment with a carrying value of $19 million and recorded a gain of approximately $16 million upon receipt of $35 million in cash proceeds, in addition to receipt of $2 million of deferred consideration from the Q1 2022 sales. (e) During the three months ended March 31, 2023, Other included a net liability position of $48 million related to our investment in JKC. The net liability position is attributed to our proportionate share of the provision that JKC continues to maintain for the paint and insulation claims against the insurer and paint manufacturer net of expected tax benefits. Related Party Transactions We often provide engineering, construction management and other subcontractor services to our unconsolidated joint ventures, and our revenues include amounts related to these services. For the three months ended March 31, 2023 and 2022, our revenues included $124 million and $104 million, respectively, related to the services we provided primarily to the Aspire Defence Limited joint venture within our GS business segment and a joint venture within our STS business segment. Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of March 31, 2023, and December 31, 2022 are as follows: March 31, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for credit losses $ 64 $ 56 Contract assets $ 2 $ 2 Other current assets $ 3 $ 12 Contract liabilities $ 52 $ 39 |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits We have two frozen defined benefit pension plans in the U.S., one frozen and one active plan in the U.K. and one frozen plan in Germany. All of these plans are immaterial except for the frozen U.K. defined benefit pension plan. The components of net periodic pension benefit related to the U.K. pension for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Components of net periodic pension benefit Interest cost $ 15 $ 9 Expected return on plan assets (25) (22) Recognized actuarial loss — 6 Net periodic pension benefit $ (10) $ (7) |
Debt and Other Credit Facilitie
Debt and Other Credit Facilities | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Credit Facilities | Debt and Other Credit Facilities Our outstanding debt consisted of the following at the dates indicated: Dollars in millions March 31, 2023 December 31, 2022 Term Loan A $ 399 $ 398 Term Loan B 504 506 Convertible Senior Notes 350 350 Senior Notes 250 250 Senior Credit Facility 260 260 Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (10) (10) Unamortized debt issuance costs and discount - Convertible Senior Notes (1) (2) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt (a) 1,741 1,740 Less: current portion 367 364 Total long-term debt, net of current portion $ 1,374 $ 1,376 (a) Total debt excludes bank overdrafts that do not have a legal right of offset against other cash balances. Senior Credit Facility On February 6, 2023, we entered into Amendment No. 8 under our existing Credit Agreement, dated as of April 25, 2018 ("Pro Rata Facilities"), consisting of a $1 billion revolving credit facility (the "Revolver"), a Term Loan A ("Term Loan A") with debt tranches denominated in U.S. dollars and British pound sterling and a Term Loan B ("Term Loan B") ("Senior Credit Facility"). Amendment No. 8 (i) replaces the LIBOR-based reference borrowing rate with a SOFR-based reference borrowing rate for the U.S. dollar tranche of Term Loan A and the Revolver and (ii) implements the Company’s recent fiscal year change from a calendar year ending on December 31 to a 52-53 week year ending on the Friday closest to December 31, effective beginning with fiscal year 2023. The interest rates with respect to the Revolver and Term Loan A are based on, at the Company's option, the respective adjusted reference rate plus an additional margin or base rate plus additional margin. The interest rate with respect to the Term Loan B is LIBOR plus 2.75%. Additionally, there is a commitment fee with respect to the Revolver. The details of the applicable margins and commitment fees under the amended Senior Credit Facility are based on the Company's consolidated net leverage ratio as follows: Revolver and Term Loan A Consolidated Net Leverage Ratio Reference Rate (a) Base Rate Commitment Fee Greater than or equal to 4.25 to 1.00 2.25 % 1.25 % 0.33 % Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 1.75 % 0.75 % 0.28 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.50 % 0.50 % 0.25 % Less than 1.25 to 1.00 1.25 % 0.25 % 0.23 % (a) The reference rate for the Revolver and the U.S. dollar tranches of Term Loan A is SOFR plus 10 bps Credit Spread Adjustment and the British pound sterling tranche is SONIA. Term Loan A provides for quarterly principal payments of 0.625% of the aggregate principal amount that commenced with the fiscal quarter ended March 31, 2022, increasing to 1.25% starting with the quarter ending March 29, 2024. Term Loan B provides for quarterly principal payments of 0.25% of the initial aggregate principal amounts that commenced with the fiscal quarter ended June 30, 2020. Term Loan A and the Revolver mature on November 2026 and Term Loan B matures in February 2027. The Senior Credit Facility contains financial covenants of a maximum consolidated net leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Senior Credit Facility). Our consolidated net leverage ratio as of the last day of any fiscal quarter may not exceed 4.50 to 1 through 2022, reducing to 4.25 to 1 in 2023 and 4.00 to 1 in 2024 and thereafter. Our consolidated interest coverage ratio may not be less than 3.00 to 1 as of the last day of any fiscal quarter. As of March 31, 2023, we were in compliance with our financial covenants related to our debt agreements. Convertible Senior Notes Convertible Senior Notes. On November 15, 2018, we issued and sold $350 million of 2.50% Convertible Senior Notes due 2023 (the "Convertible Notes") pursuant to an indenture between us and Citibank, N.A., as trustee. The Convertible Notes are senior unsecured obligations and bear interest at 2.50% per year, and interest is payable on May 1 and November 1 of each year. The Convertible Notes mature on November 1, 2023, and may not be redeemed by us prior to maturity. As such, the Convertible Notes are classified as current liabilities on our condensed consolidated balance sheets as of March 31, 2023. The Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. In April 2023, we elected cash as the settlement method to settle the principal and any excess value upon early conversion or maturity of the Convertible Notes. Prior to May 1, 2023, the Convertible Notes were convertible only upon the occurrence of certain events and during certain periods, and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. On February 10, 2023, we declared a quarterly cash dividend of $0.135 per Common Share, which exceeded our per share dividend threshold and adjusted the conversion rate to 39.6186 Common Shares per $1,000 principal amount of Convertible Notes at a strike price of $25.24. Convertible Notes Call Spread Overlay. Concurrent with the issuance of the Convertible Notes, we entered into privately negotiated convertible note hedge transactions (the "Note Hedge Transactions") and warrant transactions (the "Warrant Transactions") with the option counterparties. These transactions represent a call spread overlay, whereby the cost of the Note Hedge Transactions we purchased to cover the cash outlay upon conversion of the Convertible Notes was reduced by the sales price of the Warrant Transactions. The updated strike price of the net-share settled warrants as of March 31, 2023 was $39.59. The Note Hedge Transactions and the Warrant Transactions are separate transactions, in each case entered into by us with the option counterparties, and are not part of the terms of the Convertible Notes and will not affect any holder's rights under the Convertible Notes. As of March 31, 2023, the if-converted value of the Convertible Notes based on the closing share price exceeded the $350 million principal amount by approximately $413 million. The incremental value over the principal amount would be fully offset by the cash delivered from the Note Hedge Transactions. However, the counterparties holding the warrants would have the right to purchase the total convertible number of shares at the current conversion rate at a strike price of $39.59 resulting in value of $214 million that would have been delivered to the counterparties as of March 31, 2023. Senior Notes On September 30, 2020, we issued and sold $250 million aggregate principal amount of 4.750% Senior Notes due 2028 (the "Senior Notes") pursuant to an indenture among us, the guarantors party thereto and Citibank, N.A., as trustee. The Senior Notes are senior unsecured obligations and are fully and unconditionally guaranteed by each of our existing and future domestic subsidiaries that guarantee our obligations under the Senior Credit Facility and certain other indebtedness. Interest is payable semi-annually in arrears on March 30 and September 30 of each year, beginning on March 30, 2021, and the principal is due on September 30, 2028. At any time prior to September 30, 2023, we may redeem all or part of the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date, plus a specified “make-whole premium.” On or after September 30, 2023, we may redeem all or part of the Senior Notes at our option, at the redemption prices set forth in the Senior Notes, plus accrued and unpaid interest, if any, to (but not including) the redemption date. At any time prior to September 30, 2023, we may redeem up to 35% of the original aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 104.750% of the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, to (but not including) the redemption date. If we undergo a change of control, we may be required to make an offer to holders of the Senior Notes to repurchase all of the Senior Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. Letters of credit, surety bonds and guarantees |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate was approximately 26% and (37)% for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for the three months ended March 31, 2023 as compared to the U.S. statutory rate of 21%, was primarily impacted by the rate differential on our foreign earnings. The effective tax rate for the three months ended March 31, 2022 was primarily impacted by the non-deductibility of losses incurred with respect to the settlement of outstanding matters related to the Ichthys LNG project to which KBR is a JV partner. The valuation allowance for deferred tax assets as of March 31, 2023 and December 31, 2022 was $216 million and $217 million, respectively. The remaining valuation allowance is primarily related to foreign tax credit carryforwards and foreign and state net operating loss carryforwards that, in the judgment of management, are not more likely than not to be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income, in the appropriate character and source, during the periods in which those temporary differences become deductible or within the remaining carryforward period. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. The utilization of the unreserved foreign tax credit carryforwards is based on our ability to generate income from foreign sources of approximately $329 million prior to their expiration. The utilization of other net deferred tax assets, excluding those associated with indefinite-lived intangible assets, is based on our ability to generate U.S. forecasted taxable income of approximately $738 million. Changes in our forecasted taxable income, in the appropriate character and source, as well as jurisdiction, could affect the ultimate realization of deferred tax assets. The provision for uncertain tax positions included in other liabilities and deferred income taxes on our condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 was $91 million and $92 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are a party to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of any individual matter, including the matters described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings and cash flows in any particular reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress.Although we cannot predict the outcome of legal or other proceedings with certainty, when it is probable that a loss will be incurred and the amount is reasonably estimable, U.S. GAAP requires us to accrue an estimate of the probable loss or range of loss. In the event a loss is probable, but the probable loss is not reasonably estimable, we are required to make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion, a reasonably possible loss or range of loss associated with any individual contingency cannot be estimated. There have been no substantive developments or changes to existing claims. |
U.S. Government Matters
U.S. Government Matters | 3 Months Ended |
Mar. 31, 2023 | |
United States Government Contract Work [Abstract] | |
U.S. Government Matters | U.S. Government Matters We provide services to various U.S. governmental agencies, including the U.S. DoD, NASA and the Department of State. The negotiation, administration and settlement of our contracts are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA, which is responsible for the administration of the majority of our contracts. The scope of these audits includes, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and CAS, compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. Based on the information received to date, we do not believe any completed or ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. The U.S. government also retains the right to pursue various remedies under any of these contracts which could result in challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government. The Company accrued for probable and reasonably estimable unallowable costs associated with open government matters related to our GS business in the amounts of $51 million as of March 31, 2023 and $61 million as of December 31, 2022, which are recorded in other liabilities on our condensed consolidated balance sheets. Legacy U.S. Government Matters Between 2002 and 2011, we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We have been in the process of closing out the LogCAP III contract since 2011, and we expect the contract closeout process to continue for at least another year. As a result of our work under LogCAP III, there are claims and disputes pending between us and the U.S. government that need to be resolved in order to close the contract. The contract closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and MFRs. We continue to work with the U.S. government to resolve these issues and are engaged in efforts to reach mutually acceptable resolutions of these outstanding matters. We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor, vendor resolution and litigation costs as we resolve the open matters in the future. Investigations, Qui Tams and Litigation The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Some of these matters involve allegations of violations of the FCA, which prohibits in general terms fraudulent billings to the U.S. government; these suits brought by private individuals are called "qui tams." In the event we prevail in defending these allegations, a majority of our defense costs will be billable under the LogCAP III contract. All costs billed under LogCAP III are subject to audit by the DCAA for reasonableness. First Kuwaiti Trading Company arbitration. In April 2008, FKTC, one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association for several claims under various LogCAP III subcontracts. After a series of arbitration proceedings and related litigation between KBR and the U.S. government, the panel heard the final claims this year and we received an award on July 27, 2022. FKTC filed a motion for correction of the award asking the tribunal to change its findings. The tribunal denied FKTC's motion in an order issued on October 20, 2022. KBR filed its response on February 2, 2023. On January 5, 2023, FKTC filed a motion to vacate the arbitral award in the Eastern District of Virginia Federal District Court. On March 22, 2023, both parties presented oral arguments in the Eastern District of Virginia Federal District Court, and we expect a decision by the Court to be made soon. In addition, in March 2022, FKTC filed a new civil action in Kuwait civil court against KBR seeking $100 million in damages. This action is duplicative of the claims decided in arbitration. In September 2022, we filed a motion to dismiss this action for lack of jurisdiction due to the arbitration agreement between KBR and FKTC. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, no amounts are accrued as of March 31, 2023. Howard qui tam. In March 2011, Geoffrey Howard and Zella Hemphill filed a complaint in the U.S. District Court for the Central District of Illinois alleging that KBR mischarged the government $628 million for unnecessary materials and equipment. In October 2014, the DOJ declined to intervene and the case was partially unsealed. KBR and the relators filed various motions including a motion to dismiss by KBR. Although KBR's motion to dismiss was not granted it remains an option on appeal. Fact discovery and expert reports have been completed. We have completed briefing our motion for summary judgment and motions to exclude relators' experts. At the request of the parties, the court ordered a 90-day stay of the proceedings on December 28, 2022, which was later extended until May 31, 2023. Although we believe the allegations of fraud by the relators are without merit, we participated in mediation, and discussions with the relators are ongoing while we also continue to prepare for trial. Any proposed framework for resolving the litigation must involve agreements on damages and attorneys' fees as well as necessary determinations by the Department of the Army and approval by the DOJ. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, we are not able to estimate a reasonably possible range of loss and accordingly, no amounts have been accrued as of March 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 29 — (5) 24 Amounts reclassified from AOCL (14) — (3) (17) Net other comprehensive income (loss) 15 — (8) 7 Balance at March 31, 2023 $ (337) $ (568) $ 30 $ (875) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (19) — 17 (2) Amounts reclassified from AOCL — 5 2 7 Net other comprehensive income (loss) (19) 5 19 5 Balance at March 31, 2022 $ (315) $ (576) $ 15 $ (876) Reclassifications out of AOCL, net of tax, by component Three Months Ended March 31, Dollars in millions 2023 2022 Affected line item on the Condensed Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 14 $ — Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 14 $ — Net of tax Accumulated pension liability adjustments Amortization of actuarial loss (a) $ — $ (6) See (a) below Tax benefit — 1 Provision for income taxes Net pension and post-retirement benefits $ — $ (5) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 4 $ (3) Other non-operating expense Tax benefit (1) 1 Provision for income taxes Net changes in fair value of derivatives $ 3 $ (2) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 "Retirement Benefits" to our condensed consolidated financial statements for further discussion. |
Share Repurchases
Share Repurchases | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases Authorized Share Repurchase Program On February 25, 2014, the Board of Directors authorized a plan to repurchase up to $350 million of our outstanding shares of common stock, which replaced and terminated the August 26, 2011 share repurchase program. On October 18, 2022, the Board of Directors authorized an increase to the total authorization level to $500 million. As of March 31, 2023, $401 million remains available for repurchase under this authorization. The authorization does not obligate the Company to acquire any particular number of shares of common stock and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash flows and the authorization does not have an expiration date. Withheld to Cover Program We have in place a "withhold to cover" program, which allows us to withhold common shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share-based equity awards under the KBR, Inc. 2006 Stock and Incentive Plan. The table below presents information on our share repurchases activity under these programs: Three Months Ended March 31, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 934,935 $ 53.46 $ 50 Withhold to cover shares 203,233 $ 53.62 $ 11 Total 1,138,168 $ 53.49 $ 61 Three Months Ended March 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 519,332 $ 48.12 $ 25 Withhold to cover shares 170,939 $ 48.70 $ 8 Total 690,271 $ 48.26 $ 33 |
Income (loss) per Share
Income (loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income (loss) per Share | Income (loss) per Share Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for Convertible Debt and the treasury stock method for all other instruments. A summary of the basic and diluted net income (loss) per share calculations is as follows: Three Months Ended March 31, Shares in millions 2023 2022 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ 86 $ (71) Less earnings allocable to participating securities $ (1) $ — Basic net income (loss) attributable to KBR $ 85 $ (71) Reversal of Convertible Debt interest expense 2 — Diluted net income (loss) attributable to KBR (a) $ 87 $ (71) Weighted average common shares outstanding: Basic weighted average common shares outstanding 137 140 Convertible debt 14 — Warrants 3 — Diluted weighted average common shares outstanding (a) 154 140 Net income (loss) attributable to KBR per share: Basic $0.62 $(0.51) Diluted (a) $0.56 $(0.51) (a) In periods for which we report a net loss attributable to KBR, basic net loss per share and diluted net loss per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded. We apply the if-converted method to our Convertible Debt when calculating diluted income (loss) per share. Under the if-converted method, the principal amount and any conversion spread of the Convertible Debt, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period and net income (loss) attributable to KBR is adjusted to reverse the effect of any interest expense associated with the Convertible Debt. Additionally, for the three months ended March 31, 2023, the Warrant Transactions (as defined in Note 9 "Debt and Other Credit Facilities", to our condensed consolidated financial statements) impacted the calculation of diluted income (loss) per share as the average price of our common stock during the period exceeded the adjusted strike price of $39.59. For the three months ended March 31, 2023, the diluted income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 10.5 million related to the Warrant Transactions and 0.4 million related to our stock options and restricted stock awards. For the three months ended March 31, 2022, the diluted income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 13.8 million related to the Convertible Debt, 13.8 million related to the Warrant Transactions and 0.8 million related to our stock options and restricted stock awards. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Risk Management | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Risk Management | Fair Value of Financial Instruments and Risk Management Fair value measurements. The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short-term maturities of these financial instruments. The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our condensed consolidated balance sheets are provided in the following table. March 31, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 399 $ 399 $ 398 $ 398 Term Loan B Level 2 504 505 506 511 Convertible Notes Level 2 350 763 350 731 Senior Notes Level 2 250 225 250 220 Senior Credit Facility Level 2 ` 260 260 260 260 See Note 9 "Debt and Other Credit Facilities" for further discussion of our term loans, Convertibles Notes, Senior Notes and Revolver. The following disclosures for foreign currency risk and interest rate risk includes the fair value hierarchy levels for our assets and liabilities that are measured at fair value on a recurring basis. Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of March 31, 2023, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $69 million, all of which had durations of 17 days or less. We also had approximately $6 million (gross notional value) of cash flow hedges which had durations of 14 months or less. The cash flow hedges are primarily related to the British Pound. The fair value of our balance sheet and cash flow hedges are included in other current assets and other current liabilities on our condensed consolidated balance sheets at March 31, 2023, and December 31, 2022. The fair values of these derivatives are considered Level 2 under ASC 820, Fair Value Measurement, as they are based on quoted prices directly observable in active markets. The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our condensed consolidated statements of operations. Three Months Ended March 31, Dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ — Balance Sheet Position - Remeasurement (2) — Net loss $ (2) $ — Interest rate risk. We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting a portion of our variable rate debt under our Senior Credit Facility into fixed-rate debt. During the three months ended March 31, 2023, we amended all of our existing interest rate swap agreements to term SOFR effective March 2023. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, in March 2023, we entered into additional USD and GBP denominated interest rate swap agreements. Our portfolio of interest rate swaps consists of the following: Notional Amount at March 31, 2023 Pay Fixed Rate (Weighted Average) Receive Variable Rate Settlement and Termination March 2020 Interest Rate Swaps $ 400 0.89 % Term SOFR Monthly through January 2027 September 2022 Interest Rate Swaps (a) $ 250 3.43 % Term SOFR Monthly through January 2027 March 2023 Interest Rate Swaps $ 205 3.61 % Term SOFR Monthly through January 2027 March 2023 Amortizing Interest Rate Swaps £ 118 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value will increase to $350 million through maturity in January 2027. Our interest rate swaps are reported at fair value using Level 2 inputs. The fair value of the interest rate swaps at March 31, 2023 was a $37 million net asset, of which $23 million is included in other current assets, $24 million is included in other assets, $1 million is included in other current liabilities and $9 million is included in other liabilities. The unrealized net gain on these interest rate swaps was $37 million and is included in AOCL as of March 31, 2023. The fair value of the interest rate swaps at December 31, 2022, was a $48 million net asset, of which $19 million is included in other current assets and $29 million is included in other assets. The unrealized net gains on these interest rate swaps was $48 million and is included in AOCL as of December 31, 2022. Sales of Receivables. From time to time, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. One such program is with MUFG Bank, Ltd. (“MUFG”) under a Master Accounts Receivable Purchase Agreement (the “RPA”), which provides the sale to MUFG of certain of our designated eligible receivables, with a significant portion of such receivables being owed by the U.S. government. During the three months ended March 31, 2023, the Company has derecognized $703 million of accounts receivables from the balance sheet under these agreements, of which certain receivables totaling $693 million were sold under the MUFG RPA. The fair value of the sold receivables approximated their book value due to their short-term nature. The fees incurred are presented in other non-operating expense on the condensed consolidated statements of operations. Activity for third-party financial institutions consisted of the following: Three Months Ended Dollars in millions March 31, 2023 March 31, 2022 Beginning balance $ 134 481 Sale of receivables 703 1,287 Settlement of receivables (714) (1,649) Cash collected, not yet remitted (2) (1) Outstanding balances sold to financial institutions $ 121 $ 118 Other Investments. Other investments include investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our condensed consolidated balance sheets. These investments are accounted for under the measurement alternative, provided that KBR does not have the ability to exercise significant influence or control over the investees. In June 2022, we entered into an agreement to invest an additional £80 million in Mura Technology ("Mura"). Funding occurred in two tranches with the first payment made in June 2022 and the second payment made in April 2023, increasing KBR's aggregate investment in Mura to approximately 17%. No observable transactions entered during the three months ended March 31, 2023 and 2022 required an adjustment to the carrying value of our investment, which was $85 million and $83 million at March 31, 2023 and December 31, 2022, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New accounting pronouncements requiring implementation in future periods are discussed below. In 2017, the United Kingdom's Financial Conduct Authority announced that after 2021 it would no longer compel banks to submit the rates required to calculate the London Interbank Offered Rate (LIBOR), which have been widely used as reference rates for various securities and financial contracts, including loans, debts and derivatives. This announcement indicates that the continuation of LIBOR on the current basis is not guaranteed after 2021. Subsequently in March 2021, the Financial Conduct Authority announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. Regulators in the U.S. and other jurisdictions have been working to replace these rates with alternative reference interest rates that are supported by transactions in liquid and observable markets, such as the SOFR for USD LIBOR. Currently, our Senior Credit Facility references LIBOR base rates. Our Senior Credit Facility contains provisions to transition into alternative reference rates including calculations to be employed when LIBOR ceases to be available as a benchmark. We have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which will govern our derivatives upon the final termination of USD LIBOR index benchmark. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , as amended, helps limit the accounting impact from contract modifications, including hedging relationships, due to the transition from LIBOR to alternative reference rates that are completed by December 31, 2022. In December 2022, the FASB issued ASU 2020-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, as we enter into modifications to continue to transition our Senior Credit Facility from LIBOR to an alternate reference rate, we do not expect a significant impact to our financial results, financial position or cash flows as we will elect to apply the optional expedients. In March 2023, the FASB issued 2023-01, Leases (Topic 842) - Common Control Arrangements, which requires leasehold improvements associated with common control leases to be amortized over the useful life of the leasehold improvements to the common control group as long as the lessee controls the underlying asset through a lease. The amendments are effective for all entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements. We are currently evaluating the future impact of this standard. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary (collectively, the "Company," "KBR", "we", "us" or "our"). We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 7 "Equity Method Investments and Variable Interest Entities" to our condensed consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. |
Basis of Presentation | Basis of Presentation On December 13, 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. In a 52 week fiscal year, each of the Company’s quarterly periods will comprise 13 weeks. The additional week in a 53 week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. The Company’s first 53 week fiscal year will occur in fiscal year 2024. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. The change will impact the prior year comparability of each of the fiscal quarters and the annual period for the year ending December 31, 2023, however, the impact will not be material. The Company believes this change will improve comparability between periods by eliminating the year-over-year variability in calendar month productive days and provide a more consistent reporting cadence for operational leaders to aid in strategic decision making. |
Impact of Adoption of New Accounting Standards and Recent Accounting Pronouncements | Impact of Adoption of New Accounting Standards Effective January 1, 2023, we adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of this standard did not have an impact on our condensed consolidated financial statements. However, the ultimate impact is dependent upon the size and frequency of future acquisitions. New accounting pronouncements requiring implementation in future periods are discussed below. In 2017, the United Kingdom's Financial Conduct Authority announced that after 2021 it would no longer compel banks to submit the rates required to calculate the London Interbank Offered Rate (LIBOR), which have been widely used as reference rates for various securities and financial contracts, including loans, debts and derivatives. This announcement indicates that the continuation of LIBOR on the current basis is not guaranteed after 2021. Subsequently in March 2021, the Financial Conduct Authority announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. Regulators in the U.S. and other jurisdictions have been working to replace these rates with alternative reference interest rates that are supported by transactions in liquid and observable markets, such as the SOFR for USD LIBOR. Currently, our Senior Credit Facility references LIBOR base rates. Our Senior Credit Facility contains provisions to transition into alternative reference rates including calculations to be employed when LIBOR ceases to be available as a benchmark. We have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which will govern our derivatives upon the final termination of USD LIBOR index benchmark. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , as amended, helps limit the accounting impact from contract modifications, including hedging relationships, due to the transition from LIBOR to alternative reference rates that are completed by December 31, 2022. In December 2022, the FASB issued ASU 2020-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time entities can utilize the reference rate reform guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We elected to apply the optional expedient in ASC 848 in connection with transitioning our interest rate swaps from LIBOR to term SOFR that allowed the amended swaps to be considered as a continuation of the existing hedges. As a result, the reference rate transition did not have an impact on our hedge accounting or a material impact to our condensed consolidated financial statements. Additionally, as we enter into modifications to continue to transition our Senior Credit Facility from LIBOR to an alternate reference rate, we do not expect a significant impact to our financial results, financial position or cash flows as we will elect to apply the optional expedients. In March 2023, the FASB issued 2023-01, Leases (Topic 842) - Common Control Arrangements, which requires leasehold improvements associated with common control leases to be amortized over the useful life of the leasehold improvements to the common control group as long as the lessee controls the underlying asset through a lease. The amendments are effective for all entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements. We are currently evaluating the future impact of this standard. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of operations by reportable segment | Operations by Reportable Segment Three Months Ended March 31, 2023 2022 Dollars in millions Revenues: Government Solutions $ 1,328 $ 1,459 Sustainable Technology Solutions 375 255 Total revenues $ 1,703 $ 1,714 Operating income (loss): Government Solutions $ 102 $ 116 Sustainable Technology Solutions 82 (106) Other (40) (41) Total operating income (loss) $ 144 $ (31) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Revenue by business unit and reportable segment was as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Government Solutions Science & Space $ 279 $ 253 Defense & Intel 363 378 Readiness & Sustainment 405 533 International 281 295 Total Government Solutions 1,328 1,459 Sustainable Technology Solutions 375 255 Total revenue $ 1,703 $ 1,714 Revenue by geographic destination was as follows: Three Months Ended March 31, 2023 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 718 $ 131 $ 849 Europe 447 58 505 Middle East 26 87 113 Australia 101 18 119 Africa 19 18 37 Asia 3 38 41 Other countries 14 25 39 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Total by Countries/Regions Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 1,011 $ 109 $ 1,120 Europe 283 32 315 Middle East 39 49 88 Australia 90 — 90 Africa 18 17 35 Asia 3 42 45 Other countries 15 6 21 Total revenue $ 1,459 $ 255 $ 1,714 Three Months Ended March 31, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 815 $ — $ 815 Time-and-Materials 263 233 496 Fixed Price 250 142 392 Total revenue $ 1,328 $ 375 $ 1,703 Three Months Ended March 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 955 $ — $ 955 Time-and-Materials 235 175 410 Fixed Price 269 80 349 Total revenue $ 1,459 $ 255 $ 1,714 |
Schedule of accounts receivable | March 31, December 31, Dollars in millions 2023 2022 Unbilled $ 583 $ 486 Trade & other 493 456 Accounts receivable $ 1,076 $ 942 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | The components of our cash and cash equivalents balance are as follows: March 31, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 255 $ 38 $ 293 Short-term investments (c) 7 2 9 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 100 14 114 Total $ 362 $ 54 $ 416 December 31, 2022 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 251 $ 25 $ 276 Short-term investments (c) 4 2 6 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities 99 8 107 Total $ 354 $ 35 $ 389 (a) Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes. (b) Includes U.S. dollar and foreign currency deposits held in U.S. entities with operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. (c) Includes time deposits, money market funds and other highly liquid short-term investments. |
Unapproved Change Orders and _2
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Contractors [Abstract] | |
Schedule of unapproved change orders and claims | The amounts of unapproved change orders and claims against clients and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows: Dollars in millions 2023 2022 Amounts included in project estimates-at-completion at January 1, $ 48 $ 426 Net increase (decrease) in project estimates 13 (117) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project estimates-at-completion at March 31, $ 61 $ 45 |
Equity Method Investments and_2
Equity Method Investments and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity in earnings of unconsolidated affiliates | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: Three Months Ended March 31, Year Ended December 31, 2023 2022 Dollars in millions Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 23 (80) Distributions of earnings of unconsolidated affiliates (b) (15) (53) Payments from unconsolidated affiliates, net (6) (14) (Return of) investments in equity method investment, net (c) (61) (198) Sale of equity method investment (d)(a) — (31) Foreign currency translation adjustments 1 (15) Other (e) 42 3 Ending balance $ 172 $ 188 (a) During 2022, a non-cash charge of $137 million was recorded for settlement agreements associated with the Ichthys LNG project. Additionally, during the third quarter of 2022, we recorded a charge against a joint venture acquired from a historical GS acquisition of $10 million based on our funding obligations of projected losses. In the fourth quarter of 2022, we divested this joint venture and recorded an incremental loss on sale of $3 million. The remaining equity in earnings (losses) of unconsolidated affiliates in 2023 and 2022 is related to normal activities within our other joint ventures. (b) In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our condensed consolidated statements of cash flows. (c) For the three months ended March 31, 2023, we received a return of investment from JKC of approximately $61 million related to the second payment received from the Subcontractor Settlement Agreement. For the year ended December 31, 2022, we received a return of investment from JKC of approximately $190 million related to the first payment from the Subcontractor Settlement Agreement and from BRJV of $10 million as our cumulative distributions from inception of the joint venture exceeded our cumulative earnings. (d) During the first quarter of 2022, we sold two of our four U.K. Road investments. The carrying value of our investment was $22 million. We received $18 million in cash proceeds and the purchaser agreed to assume the $4 million of consortium relief. In the second quarter of 2022, we sold an additional U.K. Road investment with a carrying value of $19 million and recorded a gain of approximately $16 million upon receipt of $35 million in cash proceeds, in addition to receipt of $2 million of deferred consideration from the Q1 2022 sales. (e) During the three months ended March 31, 2023, Other included a net liability position of $48 million related to our investment in JKC. The net liability position is attributed to our proportionate share of the provision that JKC continues to maintain for the paint and insulation claims against the insurer and paint manufacturer net of expected tax benefits. |
Schedule of services provided to unconsolidated JV's | Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of March 31, 2023, and December 31, 2022 are as follows: March 31, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for credit losses $ 64 $ 56 Contract assets $ 2 $ 2 Other current assets $ 3 $ 12 Contract liabilities $ 52 $ 39 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension benefit | The components of net periodic pension benefit related to the U.K. pension for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, Dollars in millions 2023 2022 Components of net periodic pension benefit Interest cost $ 15 $ 9 Expected return on plan assets (25) (22) Recognized actuarial loss — 6 Net periodic pension benefit $ (10) $ (7) |
Debt and Other Credit Facilit_2
Debt and Other Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Our outstanding debt consisted of the following at the dates indicated: Dollars in millions March 31, 2023 December 31, 2022 Term Loan A $ 399 $ 398 Term Loan B 504 506 Convertible Senior Notes 350 350 Senior Notes 250 250 Senior Credit Facility 260 260 Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (10) (10) Unamortized debt issuance costs and discount - Convertible Senior Notes (1) (2) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt (a) 1,741 1,740 Less: current portion 367 364 Total long-term debt, net of current portion $ 1,374 $ 1,376 (a) Total debt excludes bank overdrafts that do not have a legal right of offset against other cash balances. The details of the applicable margins and commitment fees under the amended Senior Credit Facility are based on the Company's consolidated net leverage ratio as follows: Revolver and Term Loan A Consolidated Net Leverage Ratio Reference Rate (a) Base Rate Commitment Fee Greater than or equal to 4.25 to 1.00 2.25 % 1.25 % 0.33 % Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 2.00 % 1.00 % 0.30 % Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 1.75 % 0.75 % 0.28 % Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 1.50 % 0.50 % 0.25 % Less than 1.25 to 1.00 1.25 % 0.25 % 0.23 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 29 — (5) 24 Amounts reclassified from AOCL (14) — (3) (17) Net other comprehensive income (loss) 15 — (8) 7 Balance at March 31, 2023 $ (337) $ (568) $ 30 $ (875) Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (19) — 17 (2) Amounts reclassified from AOCL — 5 2 7 Net other comprehensive income (loss) (19) 5 19 5 Balance at March 31, 2022 $ (315) $ (576) $ 15 $ (876) |
Schedule of reclassification out of accumulated other comprehensive income | Reclassifications out of AOCL, net of tax, by component Three Months Ended March 31, Dollars in millions 2023 2022 Affected line item on the Condensed Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ 14 $ — Net income attributable to noncontrolling interests and Gain on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ 14 $ — Net of tax Accumulated pension liability adjustments Amortization of actuarial loss (a) $ — $ (6) See (a) below Tax benefit — 1 Provision for income taxes Net pension and post-retirement benefits $ — $ (5) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 4 $ (3) Other non-operating expense Tax benefit (1) 1 Provision for income taxes Net changes in fair value of derivatives $ 3 $ (2) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 8 "Retirement Benefits" to our condensed consolidated financial statements for further discussion. |
Share Repurchases (Tables)
Share Repurchases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of shares repurchased | The table below presents information on our share repurchases activity under these programs: Three Months Ended March 31, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 934,935 $ 53.46 $ 50 Withhold to cover shares 203,233 $ 53.62 $ 11 Total 1,138,168 $ 53.49 $ 61 Three Months Ended March 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $350 million authorized share repurchase program 519,332 $ 48.12 $ 25 Withhold to cover shares 170,939 $ 48.70 $ 8 Total 690,271 $ 48.26 $ 33 |
Income (loss) per Share (Tables
Income (loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted income (loss) per share calculations | A summary of the basic and diluted net income (loss) per share calculations is as follows: Three Months Ended March 31, Shares in millions 2023 2022 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ 86 $ (71) Less earnings allocable to participating securities $ (1) $ — Basic net income (loss) attributable to KBR $ 85 $ (71) Reversal of Convertible Debt interest expense 2 — Diluted net income (loss) attributable to KBR (a) $ 87 $ (71) Weighted average common shares outstanding: Basic weighted average common shares outstanding 137 140 Convertible debt 14 — Warrants 3 — Diluted weighted average common shares outstanding (a) 154 140 Net income (loss) attributable to KBR per share: Basic $0.62 $(0.51) Diluted (a) $0.56 $(0.51) (a) In periods for which we report a net loss attributable to KBR, basic net loss per share and diluted net loss per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and estimated fair values of financial instruments | The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our condensed consolidated balance sheets are provided in the following table. March 31, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 399 $ 399 $ 398 $ 398 Term Loan B Level 2 504 505 506 511 Convertible Notes Level 2 350 763 350 731 Senior Notes Level 2 250 225 250 220 Senior Credit Facility Level 2 ` 260 260 260 260 |
Schedule of derivatives instruments statements of financial performance and financial position, location | The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our condensed consolidated statements of operations. Three Months Ended March 31, Dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ — Balance Sheet Position - Remeasurement (2) — Net loss $ (2) $ — |
Schedule of Interest Rate Swaps | Our portfolio of interest rate swaps consists of the following: Notional Amount at March 31, 2023 Pay Fixed Rate (Weighted Average) Receive Variable Rate Settlement and Termination March 2020 Interest Rate Swaps $ 400 0.89 % Term SOFR Monthly through January 2027 September 2022 Interest Rate Swaps (a) $ 250 3.43 % Term SOFR Monthly through January 2027 March 2023 Interest Rate Swaps $ 205 3.61 % Term SOFR Monthly through January 2027 March 2023 Amortizing Interest Rate Swaps £ 118 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value will increase to $350 million through maturity in January 2027. |
Schedule of sale of receivables activity | Activity for third-party financial institutions consisted of the following: Three Months Ended Dollars in millions March 31, 2023 March 31, 2022 Beginning balance $ 134 481 Sale of receivables 703 1,287 Settlement of receivables (714) (1,649) Cash collected, not yet remitted (2) (1) Outstanding balances sold to financial institutions $ 121 $ 118 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment process_technology vertical | |
Segment Reporting Information [Line Items] | |
Core business segments, number | 2 |
Non-core business segments, number | 1 |
Sustainable Technology Solutions | |
Segment Reporting Information [Line Items] | |
Number of process technologies (over) | process_technology | 70 |
Number of primary areas | vertical | 4 |
Business Segment Information (S
Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 1,703 | $ 1,714 |
Total operating income (loss) | 144 | (31) |
Government Solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,328 | 1,459 |
Total operating income (loss) | 102 | 116 |
Sustainable Technology Solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 375 | 255 |
Total operating income (loss) | 82 | (106) |
Other | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | $ (40) | $ (41) |
Revenue (Revenue by Geographic
Revenue (Revenue by Geographic Destination) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,703 | $ 1,714 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 849 | 1,120 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 505 | 315 |
Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 113 | 88 |
Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 119 | 90 |
Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 37 | 35 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 41 | 45 |
Other countries | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 39 | 21 |
Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,328 | 1,459 |
Government Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 718 | 1,011 |
Government Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 447 | 283 |
Government Solutions | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 26 | 39 |
Government Solutions | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 101 | 90 |
Government Solutions | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19 | 18 |
Government Solutions | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3 | 3 |
Government Solutions | Other countries | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14 | 15 |
Sustainable Technology Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 375 | 255 |
Sustainable Technology Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 131 | 109 |
Sustainable Technology Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 58 | 32 |
Sustainable Technology Solutions | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 87 | 49 |
Sustainable Technology Solutions | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18 | 0 |
Sustainable Technology Solutions | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18 | 17 |
Sustainable Technology Solutions | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 38 | 42 |
Sustainable Technology Solutions | Other countries | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 25 | 6 |
Science & Space | Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 279 | 253 |
Defense & Intel | Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 363 | 378 |
Readiness & Sustainment | Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 405 | 533 |
International | Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 281 | $ 295 |
Revenue (Revenue by Contract Ty
Revenue (Revenue by Contract Type) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,703 | $ 1,714 |
Cost Reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 815 | 955 |
Time-and-Materials | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 496 | 410 |
Fixed Price | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 392 | 349 |
Government Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,328 | 1,459 |
Government Solutions | Cost Reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 815 | 955 |
Government Solutions | Time-and-Materials | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 263 | 235 |
Government Solutions | Fixed Price | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 250 | 269 |
Sustainable Technology Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 375 | 255 |
Sustainable Technology Solutions | Cost Reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Sustainable Technology Solutions | Time-and-Materials | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 233 | 175 |
Sustainable Technology Solutions | Fixed Price | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 142 | $ 80 |
Revenue (Performance Obligation
Revenue (Performance Obligation) (Details) $ in Billions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 11.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 39% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 33% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 28% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability, revenue recognized | $ 126 | $ 82 |
Revenue (Accounts Receivable) (
Revenue (Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from External Customer [Line Items] | ||
Accounts receivable | $ 1,076 | $ 942 |
Unbilled | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable | 583 | 486 |
Trade & other | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable | $ 493 | $ 456 |
Acquisitions (VIMA Group) (Deta
Acquisitions (VIMA Group) (Details) - USD ($) | 12 Months Ended | ||
Aug. 02, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,087,000,000 | $ 2,095,000,000 | |
VIMA Group | |||
Business Acquisition [Line Items] | |||
Purchase price of acquisition | $ 82,000,000 | ||
Cash consideration paid | 75,000,000 | ||
Deferred consideration | 4,000,000 | ||
Contingent consideration | 3,000,000 | ||
Payment of contingent consideration liability | 0 | ||
Contingent consideration non-payment benefit | $ 3,000,000 | ||
Working capital | 3,000,000 | ||
Deferred income tax liability | 2,000,000 | ||
Goodwill | 68,000,000 | ||
Tax deductible amount | 0 | ||
VIMA Group | Backlog assets | |||
Business Acquisition [Line Items] | |||
Intangible assets | 2,000,000 | ||
VIMA Group | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 11,000,000 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 416 | $ 389 |
Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 293 | 276 |
Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 9 | 6 |
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 114 | 107 |
International | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 362 | 354 |
International | Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 255 | 251 |
International | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 7 | 4 |
International | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 100 | 99 |
Domestic | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 54 | 35 |
Domestic | Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 38 | 25 |
Domestic | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 2 | 2 |
Domestic | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 14 | $ 8 |
Unapproved Change Orders and _3
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Unapproved Change Orders [Roll Forward] | ||
Amounts included in project estimates-at-completion at January 1, | $ 48 | $ 426 |
Net increase (decrease) in project estimates | 13 | (117) |
Approved change orders | 0 | (271) |
Foreign currency impact | 0 | 7 |
Amounts included in project estimates-at-completion at March 31, | 61 | 45 |
(Unfavorable) Favorable change in gross profit | $ 245 | $ 196 |
Unapproved Change Orders and _4
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increases in Unapproved Change Orders and Claims [Line Items] | ||
(Unfavorable) Favorable change in gross profit | $ 245 | $ 196 |
Equity in earnings (losses) of unconsolidated affiliates | $ 23 | (118) |
EPC Project | Sustainable Technology Solutions | ||
Increases in Unapproved Change Orders and Claims [Line Items] | ||
(Unfavorable) Favorable change in gross profit | (12) | |
Severance and asset impairment costs | 4 | |
Ichthys LNG Project | Sustainable Technology Solutions | ||
Increases in Unapproved Change Orders and Claims [Line Items] | ||
Equity in earnings (losses) of unconsolidated affiliates | $ (137) |
Equity Method Investments and_3
Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) project | Dec. 31, 2022 USD ($) | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Beginning balance at January 1, | $ 188 | |||||
Equity in earnings (losses) of unconsolidated affiliates | 23 | $ (118) | ||||
Distributions of earnings of unconsolidated affiliates | (24) | (30) | ||||
(Return of) investments in equity method investment, net | (61) | |||||
Ending balance | 172 | $ 188 | $ 188 | |||
Return of (investments in) equity method joint ventures, net | 61 | |||||
U K Road Projects | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Sale of equity method investment | $ (19) | (22) | ||||
Gain (loss) on disposal | $ 4 | |||||
Number of projects to be sold | project | 2 | |||||
Number of projects | project | 4 | |||||
Equity method investments | 19 | $ 22 | ||||
Cash proceeds | 18 | |||||
Equity Method Investments | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Beginning balance at January 1, | 188 | 576 | 576 | |||
Equity in earnings (losses) of unconsolidated affiliates | 23 | (80) | ||||
Distributions of earnings of unconsolidated affiliates | (15) | (53) | ||||
Payments from unconsolidated affiliates, net | (6) | (14) | ||||
(Return of) investments in equity method investment, net | (61) | (198) | ||||
Sale of equity method investment | 0 | (31) | ||||
Foreign currency translation adjustments | 1 | (15) | ||||
Other | 42 | 3 | ||||
Ending balance | 172 | 188 | 188 | |||
Impairment of equity method investments | $ 10 | |||||
Gain (loss) on disposal | $ (3) | 16 | ||||
Return of (investments in) equity method joint ventures, net | 61 | 198 | ||||
Equity method investments | 0 | 31 | ||||
Cash proceeds | $ 35 | |||||
Deferred consideration | $ 2 | |||||
Equity Method Investments | Ichthys LNG Project | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Non-cash charge recorded for settlement agreements | 137 | |||||
Equity Method Investments | Power Plant Subcontractor Consortium | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Other | 48 | |||||
Equity Method Investments | Subcontractor Settlement Agreement | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
(Return of) investments in equity method investment, net | (61) | (190) | ||||
Return of (investments in) equity method joint ventures, net | $ 61 | 190 | ||||
Equity Method Investments | BRJV | ||||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
(Return of) investments in equity method investment, net | (10) | |||||
Return of (investments in) equity method joint ventures, net | $ 10 |
Equity Method Investments and_4
Equity Method Investments and Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transactions with Related Parties | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue from related parties | $ 124 | $ 104 |
Equity Method Investments and_5
Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for credit losses | $ 1,076 | $ 942 |
Contract assets | 258 | 252 |
Other current assets | 162 | 164 |
Contract liabilities | 282 | 275 |
Transactions with Related Parties | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for credit losses | 64 | 56 |
Contract assets | 2 | 2 |
Other current assets | 3 | 12 |
Contract liabilities | $ 52 | $ 39 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) £ in Millions, $ in Millions | 3 Months Ended | ||
Oct. 17, 2022 GBP (£) | Mar. 31, 2023 USD ($) plan | Mar. 31, 2023 GBP (£) | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of frozen defined benefit plans | 2 | ||
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of frozen defined benefit plans | 1 | ||
Number of active defined benefit plans | 1 | ||
U.K. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | £ 29 | $ 4 | |
Estimated future employer contributions in remainder of fiscal year | $ | $ 7 | ||
Estimated future employer contributions, current fiscal year | £ | £ 33 | ||
Germany | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of frozen defined benefit plans | 1 |
Retirement Benefits (Details)
Retirement Benefits (Details) - U.K. - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 15 | $ 9 |
Expected return on plan assets | (25) | (22) |
Recognized actuarial loss | 0 | 6 |
Net periodic pension benefit | $ (10) | $ (7) |
Debt and Other Credit Facilit_3
Debt and Other Credit Facilities (Outstanding Debt Balances) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,741 | $ 1,740 |
Less: current portion | 367 | 364 |
Total long-term debt, net of current portion | 1,374 | 1,376 |
Secured Debt | Term Loan A | ||
Debt Instrument [Line Items] | ||
Long-term debt | 399 | 398 |
Unamortized debt issuance costs | (8) | (9) |
Secured Debt | Term Loan B | ||
Debt Instrument [Line Items] | ||
Long-term debt | 504 | 506 |
Unamortized debt issuance costs | (10) | (10) |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350 | 350 |
Unamortized debt issuance costs | (1) | (2) |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 250 | 250 |
Unamortized debt issuance costs | (3) | (3) |
Senior Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 260 | $ 260 |
Debt and Other Credit Facilit_4
Debt and Other Credit Facilities (Senior Credit Facility) (Details) | Feb. 06, 2023 USD ($) | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2020 |
Secured Debt | Term Loan A | |||||
Line of Credit Facility [Line Items] | |||||
Percentage of aggregate principal | 0.625% | ||||
Debt instrument, covenant, interest coverage ratio | 3 | ||||
Secured Debt | Term Loan A | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, covenant, leverage ratio through 2022 | 4.50 | ||||
Debt instrument, covenant, leverage ratio through 2023 | 4.25 | ||||
Debt instrument, covenant, leverage ratio through 2024 | 4 | ||||
Secured Debt | Term Loan A | Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Percentage of aggregate principal | 1.25% | ||||
Secured Debt | Term Loan B | |||||
Line of Credit Facility [Line Items] | |||||
Percentage of aggregate principal | 0.25% | ||||
Secured Debt | Term Loan B | Reference Rate | |||||
Line of Credit Facility [Line Items] | |||||
Revolver and term loan A, interest rate | 2.75% | ||||
Revolving Credit Facility | Performance Letter of Credit Fee | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 |
Debt and Other Credit Facilit_5
Debt and Other Credit Facilities (Schedule of Commitment Fees) (Details) | Feb. 06, 2023 |
Revolver and Term Loan A | SOFR | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 0.10% |
Greater than or equal to 4.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.33% |
Greater than or equal to 4.25 to 1.00 | Revolver and Term Loan A | Reference Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 2.25% |
Greater than or equal to 4.25 to 1.00 | Revolver and Term Loan A | Base Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 1.25% |
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.30% |
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver and Term Loan A | Reference Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 2% |
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver and Term Loan A | Base Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 1% |
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.28% |
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver and Term Loan A | Reference Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 1.75% |
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver and Term Loan A | Base Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 0.75% |
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.25% |
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver and Term Loan A | Reference Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 1.50% |
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver and Term Loan A | Base Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 0.50% |
Less than 1.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.23% |
Less than 1.25 to 1.00 | Revolver and Term Loan A | Reference Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 1.25% |
Less than 1.25 to 1.00 | Revolver and Term Loan A | Base Rate | |
Debt Instrument [Line Items] | |
Revolver and Term Loan A | 0.25% |
Debt and Other Credit Facilit_6
Debt and Other Credit Facilities (Convertible Senior Notes) (Details) | 3 Months Ended | |||
Feb. 10, 2023 $ / shares | Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2022 $ / shares | Nov. 15, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||
Cash dividends declared per share (in usd per share) | $ 0.135 | $ 0.120 | ||
Exercise price (in usd per share) | $ 39.59 | |||
Convertible Debt | Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ | $ 350,000,000 | $ 350,000,000 | ||
Interest rate, stated percentage | 2.50% | |||
Cash dividends declared per share (in usd per share) | $ 0.135 | |||
Conversion rate | 0.0396186 | |||
Convertible stock price (usd per share) | $ 25.24 | |||
Exercise price (in usd per share) | $ 39.59 | |||
If-converted value in excess of principal | $ | $ 413,000,000 | |||
Net convertible carrying amount of equity component | $ | $ 214,000,000 |
Debt and Other Credit Facilit_7
Debt and Other Credit Facilities (Senior Notes) (Details) - Senior Notes - Notes Due 2028 | Sep. 30, 2020 USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 250,000,000 |
Interest rate, stated percentage | 4.75% |
Interest rate, stated redeem percentage | 35% |
Prior to September 30, 2023 | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 100% |
On or after September 30, 2023 | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 104.75% |
Change of control | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 101% |
Debt and Other Credit Facilit_8
Debt and Other Credit Facilities (Letters of Credit, Surety Bonds and Guarantees) (Details) - USD ($) | Mar. 31, 2023 | Feb. 06, 2023 |
Letters of Credit Surety Bonds and Bank Guarantees | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding relate to joint venture operations | $ 85,000,000 | |
Performance Letter of Credit Fee | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 844,000,000 | |
Performance Letter of Credit Fee | Letter of Credit | Committed Line of Credit | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 1,000,000,000 | |
Performance Letter of Credit Fee | Letter of Credit | Uncommitted Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 369,000,000 | |
Letters of credit outstanding, amount | 251,000,000 | |
Performance Letter of Credit Fee | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Long-term line of credit | 260,000,000 | |
Letters of credit outstanding, amount | $ 14,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate on income from operations | 26% | (37.00%) | |
Deferred tax assets, valuation allowance | $ 216 | $ 217 | |
Income from foreign sources | 329 | ||
Income from domestic sources | 738 | ||
Liabilities for uncertain tax positions | $ 91 | $ 92 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) - USD ($) | 1 Months Ended | ||||
Dec. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2011 | |
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts | |||||
United States Government Contract Work [Line Items] | |||||
Accrued reserve for unallowable costs | $ 51,000,000 | $ 61,000,000 | |||
First Kuwaiti Trading Company Arbitration | |||||
United States Government Contract Work [Line Items] | |||||
Claims in unpaid bonuses | $ 100,000,000 | ||||
Howard qui tam | |||||
United States Government Contract Work [Line Items] | |||||
Estimate of possible loss | $ 628,000,000 | ||||
Number of days court ordered, stay of proceedings | 90 days | ||||
Amount accrued | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,632 | $ 1,683 |
Other comprehensive income (loss) adjustments before reclassifications | 24 | (2) |
Amounts reclassified from AOCL | (17) | 7 |
Other comprehensive income, net of tax | 7 | 5 |
Ending balance | 1,657 | 1,578 |
Accumulated foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (352) | (296) |
Other comprehensive income (loss) adjustments before reclassifications | 29 | (19) |
Amounts reclassified from AOCL | (14) | 0 |
Other comprehensive income, net of tax | 15 | (19) |
Ending balance | (337) | (315) |
Accumulated pension liability adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (568) | (581) |
Other comprehensive income (loss) adjustments before reclassifications | 0 | 0 |
Amounts reclassified from AOCL | 0 | 5 |
Other comprehensive income, net of tax | 0 | 5 |
Ending balance | (568) | (576) |
Changes in fair value of derivatives | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 38 | (4) |
Other comprehensive income (loss) adjustments before reclassifications | (5) | 17 |
Amounts reclassified from AOCL | (3) | 2 |
Other comprehensive income, net of tax | (8) | 19 |
Ending balance | 30 | 15 |
AOCL | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (882) | (881) |
Other comprehensive income, net of tax | 7 | 5 |
Ending balance | $ (875) | $ (876) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax benefit | $ (30) | $ (19) |
Foreign currency hedge and interest rate swap settlements | (2) | 0 |
Net income (loss) | 86 | (70) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated foreign currency adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification of foreign currency adjustments | 14 | 0 |
Tax benefit | 0 | 0 |
Net income (loss) | 14 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax benefit | 0 | 1 |
Amortization of actuarial loss | 0 | (6) |
Net income (loss) | 0 | (5) |
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value for derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax benefit | (1) | 1 |
Foreign currency hedge and interest rate swap settlements | 4 | (3) |
Net income (loss) | $ 3 | $ (2) |
Share Repurchases (Narrative) (
Share Repurchases (Narrative) (Details) - USD ($) | Mar. 31, 2023 | Oct. 18, 2022 | Feb. 25, 2014 |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 500,000,000 | $ 350,000,000 | |
Remaining authorized repurchase amount | $ 401,000,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Oct. 18, 2022 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 500,000,000 | $ 350,000,000 | ||
Number of shares (in shares) | 1,138,168 | 690,271 | ||
Average price per share (in usd per share) | $ 53.49 | $ 48.26 | ||
Repurchases of common stock | $ 61,000,000 | $ 33,000,000 | ||
Number of shares (in shares) | 203,233 | 170,939 | ||
Average price per share (in usd per share) | $ 53.62 | $ 48.70 | ||
Value of common stock repurchases | $ 11,000,000 | $ 8,000,000 | ||
Share Repurchase Program 2014 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares (in shares) | 934,935 | 519,332 | ||
Average price per share (in usd per share) | $ 53.46 | $ 48.12 | ||
Repurchases of common stock | $ 50,000,000 | $ 25,000,000 |
Income (loss) per Share (Schedu
Income (loss) per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net Income (loss) attributable to KBR | $ 86 | $ (71) |
Less earnings allocable to participating securities | (1) | 0 |
Basic net income (loss) attributable to KBR | 85 | (71) |
Reversal of Convertible Debt interest expense | 2 | 0 |
Diluted net income (loss) attributable to KBR | $ 87 | $ (71) |
Basic weighted average common shares outstanding (in shares) | 137 | 140 |
Convertible debt (in shares) | 14 | 0 |
Warrants (in shares) | 3 | 0 |
Diluted weighted average common shares outstanding (in shares) | 154 | 140 |
Basic (in usd per share) | $ 0.62 | $ (0.51) |
Diluted (in usd per share) | $ 0.56 | $ (0.51) |
Income (loss) per Share (Narrat
Income (loss) per Share (Narrative) (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exercise price (in usd per share) | $ 39.59 | |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 10.5 | 13.8 |
Stock options and restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.4 | 0.8 |
Convertible debt | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 13.8 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Risk Management (Carrying Value and Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying Value | Secured Debt | Term Loan A | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 399 | $ 398 |
Carrying Value | Secured Debt | Term Loan B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 504 | 506 |
Carrying Value | Convertible Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 350 | 350 |
Carrying Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 250 | 250 |
Carrying Value | Senior Credit Facility | Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 260 | 260 |
Fair Value | Secured Debt | Term Loan A | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 399 | 398 |
Fair Value | Secured Debt | Term Loan B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 505 | 511 |
Fair Value | Convertible Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 763 | 731 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 225 | 220 |
Fair Value | Senior Credit Facility | Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 260 | $ 260 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Risk Management (Foreign Currency Risk) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Maximum length of time hedged in balance sheet hedge | 17 days |
Maximum length of time hedged in cash flow hedge | 14 months |
Balance Sheet Hedge | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Derivative, notional amount | $ 69,000,000 |
Cash Flow Hedging | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Cash flow hedge | $ 6,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Risk Management (Summary of Changes in Fair Value of Balance Sheet Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Balance Sheet Hedges - Fair Value | $ 0 | $ 0 |
Balance Sheet Position - Remeasurement | (2) | 0 |
Net loss | $ (2) | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Narrative) (Details) - Interest Rate Swap - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | $ 37 | $ 48 |
Unrealized gain on derivatives | 37 | 48 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | 23 | 19 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | 24 | $ 29 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | (1) | |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | $ (9) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Details) | Nov. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 GBP (£) |
March 2020 Interest Rate Swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 400,000,000 | ||
Fixed interest rate | 0.89% | 0.89% | |
September 2022 Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 250,000,000 | ||
Fixed interest rate | 3.43% | 3.43% | |
March 2023 Interest Rate Swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 205,000,000 | ||
Fixed interest rate | 3.61% | 3.61% | |
March 2023 Amortizing Interest Rate Swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | £ | £ 118,000,000 | ||
Fixed interest rate | 3.81% | 3.81% | |
Interest Rate Swap | Forecast | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 350,000,000 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments and Risk Management (Sale of Receivables) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Sale of receivables | $ 703 |
Receivables sold | $ 693 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments and Risk Management (Sale of Receivables - Third-party Financial Institutions) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfer of Financial Assets Accounted for as Sales [Roll Forward] | ||
Beginning balance | $ 134 | $ 481 |
Sale of receivables | 703 | 1,287 |
Settlement of receivables | (714) | (1,649) |
Cash collected, not yet remitted | (2) | (1) |
Outstanding balances sold to financial institutions | $ 121 | $ 118 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments and Risk Management (Other Investments) (Details) - Mura £ in Millions, $ in Millions | 1 Months Ended | |||
Apr. 30, 2023 | Jun. 30, 2022 GBP (£) tranche | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Additional investment in equity securities without readily determinable fair value | £ | £ 80 | |||
Number of tranches | tranche | 2 | |||
Carrying value of investment | $ | $ 85 | $ 83 | ||
Subsequent Event | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Ownership percentage | 0.17 |