Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 29, 2023 | Jan. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 29, 2023 | ||
Current Fiscal Year End Date | --12-29 | ||
Document Transition Report | false | ||
Entity File Number | 001-33146 | ||
Entity Registrant Name | KBR, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-4536774 | ||
Entity Address, Address Line One | 601 Jefferson Street, Suite 3400 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | 713 | ||
Local Phone Number | 753-2000 | ||
Title of 12(b) Security | Common Stock par value $0.001 per share | ||
Trading Symbol | KBR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8.7 | ||
Entity Common Stock, Shares Outstanding (in shares) | 135,071,541 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001357615 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 29, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 6,956 | $ 6,564 | $ 7,339 |
Cost of revenues | (5,979) | (5,736) | (6,533) |
Gross profit | 977 | 828 | 806 |
Equity in earnings (losses) of unconsolidated affiliates | 114 | (80) | (170) |
Selling, general and administrative expenses | (488) | (420) | (393) |
Legal settlement of legacy matter | (144) | 0 | 0 |
Gain (loss) on disposition of assets and investments | (7) | 19 | 2 |
Other | (4) | (4) | (14) |
Operating income | 448 | 343 | 231 |
Interest expense | (115) | (87) | (80) |
Unrealized gain on other investment | 0 | 16 | 4 |
Charges associated with Convertible Notes | (494) | 0 | 0 |
Other non-operating income (expense) | (5) | 12 | (9) |
Income (loss) before income taxes | (166) | 284 | 146 |
Provision for income taxes | (95) | (92) | (111) |
Net income (loss) | (261) | 192 | 35 |
Less: Net income attributable to noncontrolling interests | 4 | 2 | 8 |
Net income (loss) attributable to KBR | $ (265) | $ 190 | $ 27 |
Net income (loss) attributable to KBR per share | |||
Basic (usd per share) | $ (1.96) | $ 1.36 | $ 0.19 |
Diluted (usd per share) | $ (1.96) | $ 1.26 | $ 0.19 |
Basic weighted average common shares outstanding (in shares) | 135 | 139 | 140 |
Diluted weighted average common shares outstanding (in shares) | 135 | 156 | 141 |
Cash dividends declared per share (usd per share) | $ 0.54 | $ 0.48 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (261) | $ 192 | $ 35 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 52 | (56) | (4) |
Pension and post-retirement benefits | (101) | 17 | 227 |
Changes in fair value of derivatives | (12) | 53 | 31 |
Other comprehensive (loss) income | (61) | 14 | 254 |
Income tax (expense) benefit: | |||
Foreign currency translation adjustments | 0 | 0 | (1) |
Pension and post-retirement benefits | 25 | (4) | (44) |
Changes in fair value of derivatives | 3 | (11) | (7) |
Income tax (expense) benefit | 28 | (15) | (52) |
Other comprehensive (loss) income, net of tax | (33) | (1) | 202 |
Comprehensive income (loss) | (294) | 191 | 237 |
Less: Comprehensive income attributable to noncontrolling interests | 4 | 2 | 8 |
Comprehensive income (loss) attributable to KBR | $ (298) | $ 189 | $ 229 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 304 | $ 389 |
Accounts receivable, net of allowance for credit losses of $8 and $9 | 981 | 942 |
Contract assets | 177 | 252 |
Other current assets | 189 | 164 |
Total current assets | 1,651 | 1,747 |
Pension assets | 0 | 46 |
Property, plant, and equipment, net of accumulated depreciation of $458 and $417 (including net PPE of $36 and $22 owned by a variable interest entity) | 239 | 182 |
Operating lease right-of-use assets | 138 | 164 |
Goodwill | 2,109 | 2,087 |
Intangible assets, net of accumulated amortization of $382 and $332 | 618 | 645 |
Equity in and advances to unconsolidated affiliates | 206 | 188 |
Deferred income taxes | 239 | 213 |
Other assets | 365 | 294 |
Total assets | 5,565 | 5,566 |
Current liabilities: | ||
Accounts payable | 593 | 637 |
Contract liabilities | 359 | 275 |
Accrued salaries, wages and benefits | 340 | 325 |
Current maturities of long-term debt | 31 | 364 |
Other current liabilities | 249 | 220 |
Total current liabilities | 1,572 | 1,821 |
Employee compensation and benefits | 120 | 105 |
Income tax payable | 106 | 117 |
Deferred income taxes | 106 | 92 |
Long-term debt | 1,801 | 1,376 |
Operating lease liabilities | 176 | 193 |
Other liabilities | 290 | 230 |
Total liabilities | 4,171 | 3,934 |
Commitments and Contingencies (Notes 6, 13 and 14) | ||
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, 181,713,586 and 180,807,960 shares issued, and 135,067,562 and 136,505,145 shares outstanding, respectively | 0 | 0 |
Paid-in capital in excess of par | 2,505 | 2,235 |
Retained earnings | 1,072 | 1,410 |
Treasury stock, 46,646,024 shares and 44,302,815 shares, at cost, respectively | (1,279) | (1,143) |
Accumulated other comprehensive loss | (915) | (882) |
Total KBR shareholders’ equity | 1,383 | 1,620 |
Noncontrolling interests | 11 | 12 |
Total shareholders’ equity | 1,394 | 1,632 |
Total liabilities and shareholders’ equity | $ 5,565 | $ 5,566 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 8 | $ 9 |
Property, plant & equipment, accumulated deprecation | 458 | 417 |
Property, plant & equipment, net | 239 | 182 |
Accumulated amortization, intangibles | $ 382 | $ 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) | 181,713,586 | 180,807,960 |
Common stock, shares outstanding (in shares) | 135,067,562 | 136,505,145 |
Treasury stock, shares (in shares) | 46,646,024 | 44,302,815 |
Variable Interest Entity, Primary Beneficiary | ||
Property, plant & equipment, net | $ 36 | $ 22 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | PIC | Retained Earnings | Treasury Stock | AOCL | NCI |
Beginning balance at Dec. 31, 2020 | $ 1,582 | $ 2,177 | $ 1,323 | $ (864) | $ (1,083) | $ 29 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 12 | 12 | ||||
Common stock issued upon exercise of stock options | 12 | 12 | ||||
Dividends declared to shareholders | (63) | (63) | ||||
Repurchases of common stock | (82) | (82) | ||||
Issuance of ESPP shares | 4 | 1 | 3 | |||
Distributions to noncontrolling interests | (23) | (23) | ||||
Other | 4 | 4 | ||||
Net income | 35 | 27 | 8 | |||
Other comprehensive income (loss), net of tax | 202 | 202 | ||||
Ending balance at Dec. 31, 2021 | 1,683 | 2,206 | 1,287 | (943) | (881) | 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 21 | 21 | ||||
Common stock issued upon exercise of stock options | 5 | 5 | ||||
Dividends declared to shareholders | (67) | (67) | ||||
Repurchases of common stock | (203) | (203) | ||||
Issuance of ESPP shares | 6 | 3 | 3 | |||
Investments by noncontrolling interests | 3 | 3 | ||||
Distributions to noncontrolling interests | (4) | (4) | ||||
Other noncontrolling interests activity | (3) | (3) | ||||
Net income | 192 | 190 | 2 | |||
Other comprehensive income (loss), net of tax | (1) | (1) | ||||
Ending 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 | 20 | 20 | ||||
Common stock issued upon exercise of stock options | 5 | 5 | ||||
Dividends declared to shareholders | (73) | (73) | ||||
Repurchases of common stock | (138) | (138) | ||||
Issuance of ESPP shares | 6 | 3 | 3 | |||
Distributions to noncontrolling interests | (6) | (6) | ||||
Convertible Notes Transactions | 242 | 242 | ||||
Other noncontrolling interests activity | 0 | (1) | 1 | |||
Net income | (261) | (265) | 4 | |||
Other comprehensive income (loss), net of tax | (33) | (33) | ||||
Ending balance at Dec. 29, 2023 | $ 1,394 | $ 2,505 | $ 1,072 | $ (1,279) | $ (915) | $ 11 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share (usd per share) | $ 0.54 | $ 0.48 | $ 0.44 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (261) | $ 192 | $ 35 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Charges associated with Convertible Notes | 494 | 0 | 0 |
Depreciation and amortization | 141 | 137 | 146 |
Equity in (earnings) losses of unconsolidated affiliates | (114) | 80 | 170 |
Deferred income tax (benefit) expense | 14 | 37 | 47 |
Loss (gain) on disposition of assets | 7 | (19) | (2) |
Unrealized gain on other investment | 0 | (16) | (4) |
Other | 46 | 33 | 50 |
Changes in operating assets and liabilities, net of acquired businesses: | |||
Accounts receivable, net of allowance for credit losses | (32) | 455 | (476) |
Contract assets | 44 | (30) | (48) |
Accounts payable | (49) | (376) | 447 |
Contract liabilities | 82 | (25) | (17) |
Accrued salaries, wages and benefits | 22 | 16 | 38 |
Payments on operating lease liabilities | (65) | (63) | (59) |
Payments from unconsolidated affiliates, net | 18 | 14 | 17 |
Distributions of earnings from unconsolidated affiliates | 74 | 66 | 47 |
Pension funding | (9) | (74) | (46) |
Restructuring reserve | (9) | (13) | (26) |
Other assets and liabilities | (72) | (18) | (41) |
Total cash flows provided by operating activities | 331 | 396 | 278 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (80) | (71) | (30) |
Net proceeds from sale of assets or investments | 0 | 47 | 44 |
Return of (investments in) equity method joint ventures, net | 60 | 198 | |
Return of (investments in) equity method joint ventures, net | (29) | ||
Acquisitions of businesses, net of cash acquired | 0 | (73) | (399) |
Funding in other investment | (39) | (61) | (7) |
Other | (11) | (3) | (7) |
Total cash flows (used in) provided by investing activities | (70) | 37 | (428) |
Cash flows from financing activities: | |||
Borrowings on short-term and long-term debt | 785 | 58 | 290 |
Payments on short-term and long-term debt | (17) | (16) | (15) |
Payments on settlement of warrants | (217) | 0 | 0 |
Proceeds from the settlement of note hedge | 493 | 0 | 0 |
Payments to settle Convertible Notes | (843) | 0 | 0 |
Payments on revolving credit facility | (340) | (158) | (16) |
Debt issuance costs | 0 | (6) | (3) |
Payments of dividends to shareholders | (72) | (66) | (61) |
Net proceeds from issuance of common stock | 5 | 5 | 12 |
Payments to reacquire common stock | (138) | (203) | (82) |
Distributions to noncontrolling interests | (6) | (4) | (23) |
Other | (9) | (9) | (15) |
Total cash flows (used in) provided by financing activities | (359) | (399) | 87 |
Effect of exchange rate changes on cash | 13 | (15) | (3) |
(Decrease) increase in cash and cash equivalents | (85) | 19 | (66) |
Cash and equivalents at beginning of period | 389 | 370 | 436 |
Cash and equivalents at end of period | 304 | 389 | 370 |
Supplemental disclosure of cash flows information: | |||
Cash paid for interest | 102 | 66 | 63 |
Cash paid for income taxes (net of refunds) | 52 | 47 | 49 |
Noncash investing activities | |||
Leasehold improvements paid by landlord | 9 | 6 | 0 |
Accrued but unpaid purchases of property, plant and equipment | 3 | 5 | 0 |
Noncash financing activities | |||
Dividends declared | $ 18 | $ 16 | $ 15 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 9 to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform with current period 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 29, 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. Due to this change in fiscal year, our fiscal year ended on December 29 in 2023 as compared to December 31 in 2022. The years ended December 29, 2023 and December 31, 2022 contained 363 days and 365 days, respectively. 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. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring estimates and assumptions by our management include the following: • project revenues, costs and profits on our contracts • award fees, costs and profits on government services contracts • client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • evaluation of goodwill for impairment • evaluation of intangibles and long-lived assets for impairment • evaluation of equity method investments for impairment • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals Cash and Equivalents We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. Revenue Recognition We, and our equity method investments, recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied, which occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Contract Types The Company performs work under contracts that broadly consists of fixed-price, cost-reimbursable, time-and-materials or a combination of the three. Fixed-price contracts also include unit-rate contracts. Under fixed-price contracts, we perform a defined scope of work for a specified fee to cover all costs and any profit element. Fixed-price contracts entail risk to us because they require us to predetermine the work to be performed, the project execution schedule and all the costs associated with the scope of work. Unit-rate contracts are essentially fixed-price contracts with the only variable being units of work to be performed. Although fixed-price contracts involve greater risk than cost-reimbursable contracts, they also are potentially more profitable because the owner/customer pays a premium to transfer project risks to us. Time-and-materials contracts typically provide for negotiated fixed hourly rates for specified categories of direct labor. The rates cover the cost of direct labor, indirect expense and fee. These contracts can also allow for reimbursement of cost of material plus a fee, if applicable. In U.S. government contracting, this type of contract is generally used when there is uncertainty of the extent or duration of the work to be performed by the contractor at the time of contract award or it is not possible to anticipate costs with any reasonable degree of confidence. With respect to time-and-materials contracts, we assume the price risk because our costs of performance may exceed negotiated hourly rates. In commercial and non-U.S. government contracting, this contract type is generally used for defined and non-defined scope contracts where there is a higher degree of uncertainty and risks as to the scope of work. These types of contracts may also provide for a guaranteed maximum price where the total cost plus the fee cannot exceed an agreed upon guaranteed maximum price or not-to-exceed provisions. Under cost-reimbursable contracts, the price is generally variable based upon our actual allowable costs incurred for materials, equipment, reimbursable labor hours, overhead and G&A expenses. Profit on cost-reimbursable contracts may be in the form of a fixed fee or a mark-up applied to costs incurred, or a combination of the two. The fee may also be an incentive fee based on performance indicators, milestones or targets and can be based on customer discretion or in form of an award fee determined based on customer evaluation of the Company's performance against contractual criteria. Cost-reimbursable contracts may also provide for a guaranteed maximum price where the total fee plus the total cost cannot exceed an agreed upon guaranteed maximum price. Cost-reimbursable contracts are generally less risky because the owner/customer retains many of the project risks, however it requires us to use our best efforts to accomplish the scope of the work within a specified time and budget. Cost-reimbursable contracts with the U.S. government are subject to the FAR and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers, including the types of costs that are allowable, is based on specific negotiations with each customer. See Note 3 to our consolidated financial statements for further discussion of our revenue by contract type. Contract Costs Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project, which revenue is recognized up to cost. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer, which revenue is recognized using the cost-to-cost method. Project mobilization costs incurred are capitalized as deferred assets and amortized on a straight-line basis over the anticipated term of the contract or a specified period of performance consistent with the transfer of control of the performance obligation to the client. These costs incurred may be to transition the services, employees and equipment to or from the customer, a prior contract or prior contractor. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Variable Consideration In addition to the variable contract price under cost-reimbursable contracts, it is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. See Note 6 for changes in all other project-related estimates. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications prospectively when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is used, and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The payment terms of our contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered to contain a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation. Selling, General and Administrative Expenses Our selling, general and administrative expenses represent expenses that are not associated with the execution of the contracts. Selling, general and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other corporate functions. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in cost of revenues) or selling, general and administrative expenses in the same manner as such costs are defined in the Company’s disclosure statements under CAS. Accounts Receivable Accounts receivable include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. Amounts billed and unbilled are recognized at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Unbilled amounts also include rate variances that are billable upon negotiation of final indirect rates with the DCAA. We establish an allowance for credit losses based on the assessment of our clients' ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. Additionally, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. The receivables sold under the agreements do not allow for recourse for any credit risk related to our customers if such receivables are not collected by the third-party financial institutions. The Company accounts for these receivable transfers as a sale under Transfers and Servicing (Topic 860) as the receivables have been legally isolated from the Company, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the consolidated balance sheets is presented net of the transferred amount. See Note 20 to our consolidated financial statements for our further information on sales of receivables. Property, Plant and Equipment Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7 to our consolidated financial statements for our discussion on property, plant and equipment. Business Combinations We account for business combinations using the acquisition method of accounting in accordance with Business Combinations (Topic 805) , which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. Goodwill and Intangible Assets Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with Intangibles - Goodwill and Other (Topic 350) , goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required. We also have the option to proceed directly to the quantitative test. Under the quantitative impairment test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge equal to the excess would be recognized, up to a maximum amount of goodwill allocated to that reporting unit. We can resume the qualitative assessment in any subsequent period for any reporting unit. For 2023, 2022 and 2021, management performed a qualitative impairment assessment of our reporting units, of which there were no indications that it was more likely than not that the fair value of our reporting units were less than their respective carrying values. As such, a quantitative goodwill test was not required, and no goodwill impairment was recognized in 2023, 2022 and 2021. See Note 8 to our consolidated financial statements for reported goodwill in each of our segments. We had intangible assets with net carrying values of $618 million and $645 million as of December 29, 2023 and December 31, 2022, respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. During the years ended December 29, 2023, December 31, 2022 and December 31, 2021, there were no triggering events identified. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years. See Note 8 to our consolidated financial statements for further discussion of our intangible assets. Equity Method Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings (losses) of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 9 to our consolidated financial statements for our discussion on equity method investments. We evaluate distributions received from our equity method investments using the nature of distribution approach. Under this approach, we evaluate the nature of activities of the investee that generated the distribution. The distributions received are either classified as a return on investment, which is presented as a component of operating activities on our consolidated statements of cash flows, or as a return of investment, which is presented as a component of investing activities on our consolidated statements of cash flows. For BRIS only, we apply the cumulative earnings approach for the cash flow classification of distributions as information is not available to evaluate the nature of the activities of the joint venture. Other Investments Other investments are investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our 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. We measure the investments at cost, less any impairment, and adjust the carrying value to fair value resulting from observable transactions for identical or similar investments of the same issuer. If it is determined that impairment indicators exist and the carrying value is less than the fair value, we adjust the carrying value of the investment to its fair value and record the related impairment. The gains and losses on the investments are recognized in unrealized gain (loss) on other investment on our consolidated statements of operations. Joint Ventures and VIEs The majority of our joint ventures are VIEs. We account for VIEs in accordance with Consolidation (Topic 810) , which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 9 to our consolidated financial statements for our discussion on variable interest entities |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 29, 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. Our reportable segments follow the same accounting policies as those described in Note 1 to our consolidated financial statements. We are organized into two core business segments, Government Solutions and Sustainable Technology Solutions and one non-core business segment as described below: Government Solutions. Our Government Solutions business segment provides full life-cycle support solutions to defense, 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 80 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 and Balance Sheet Information by Reportable Segment The following table presents operations and balance sheet information by reportable segment. Assets specific to business segments include receivables, contract assets, other current assets, claims and accounts receivable, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other." Government Solutions Sustainable Technology Solutions Other Total Dollars in millions December 29, 2023 Revenue $ 5,353 $ 1,603 $ — $ 6,956 Equity in earnings (losses) of unconsolidated affiliates 42 72 — 114 Operating income (loss) 285 324 (161) 448 Depreciation and amortization 96 19 26 141 Total Assets 3,737 996 832 5,565 December 31, 2022 Revenue $ 5,320 $ 1,244 $ — $ 6,564 Equity in earnings (losses) of unconsolidated affiliates 27 (107) — (80) Operating income (loss) 441 47 (145) 343 Depreciation and amortization 95 14 28 137 Total Assets 3,735 915 916 5,566 December 31, 2021 Revenue $ 6,149 $ 1,190 $ — $ 7,339 Equity in earnings (losses) of unconsolidated affiliates 29 (199) — (170) Operating income (loss) 414 (30) (153) 231 Depreciation and amortization 108 16 22 146 Selected Geographic Information Long-lived assets by country are determined based on the location of tangible assets. December 29, December 31, Dollars in millions 2023 2022 Property, plant & equipment, net: United States $ 138 $ 103 United Kingdom 39 41 Other 62 38 Total $ 239 $ 182 |
Revenue
Revenue | 12 Months Ended |
Dec. 29, 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: Year Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Government Solutions Science & Space $ 1,127 $ 1,055 $ 1,018 Defense & Intel 1,575 1,509 1,475 Readiness & Sustainment 1,495 1,639 2,644 International 1,156 1,117 1,012 Total Government Solutions 5,353 5,320 6,149 Sustainable Technology Solutions 1,603 1,244 1,190 Total revenue $ 6,956 $ 6,564 $ 7,339 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: Year Ended December 29, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 3,096 $ 521 $ 3,617 Europe 1,569 247 1,816 Middle East 140 388 528 Australia 403 93 496 Africa 70 106 176 Asia 17 152 169 Other countries 58 96 154 Total revenue $ 5,353 $ 1,603 $ 6,956 Year Ended December 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 3,264 $ 469 $ 3,733 Europe 1,351 216 1,567 Middle East 157 249 406 Australia 392 45 437 Africa 86 63 149 Asia 14 154 168 Other countries 56 48 104 Total revenue $ 5,320 $ 1,244 $ 6,564 Year Ended December 31, 2021 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 4,493 $ 430 $ 4,923 Europe 762 223 985 Middle East 393 197 590 Australia 351 16 367 Africa 87 92 179 Asia 7 192 199 Other countries 56 40 96 Total revenue $ 6,149 $ 1,190 $ 7,339 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: Year Ended December 29, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost-Reimbursable $ 3,287 $ — $ 3,287 Time-and-Materials 1,023 989 $ 2,012 Fixed-Price 1,043 614 $ 1,657 Total revenue $ 5,353 $ 1,603 $ 6,956 Year Ended December 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost-Reimbursable $ 3,293 $ — $ 3,293 Time-and-Materials 973 770 1,743 Fixed-Price 1,054 474 1,528 Total revenue $ 5,320 $ 1,244 $ 6,564 Year Ended December 31, 2021 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 4,175 $ — $ 4,175 Time-and-Materials 903 739 1,642 Fixed Price 1,071 451 1,522 Total revenue $ 6,149 $ 1,190 $ 7,339 Performance Obligations Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency being resolved. We recognized revenue from performance obligations satisfied in previous periods for such matters of $15 million, $49 million and $19 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively. On December 29, 2023, we had $12.7 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 34% of our remaining performance obligations as revenue within one year, 39% in years two through five and 27% 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 December 29, 2023. Contract Assets and Contract Liabilities Contract assets were $177 million and $252 million and contract liabilities were $359 million and $275 million, at December 29, 2023 and December 31, 2022, respectively. The decrease in contract assets was primarily attributed to revenue recognized on certain contracts partially offset by the timing of billings. The increase in contract liabilities was due to the timing of advance payments and revenue recognized during the period. We recognized revenue of $202 million for the year ended December 29, 2023, which was previously included in the contract liability balance at December 31, 2022. Accounts Receivable December 29, December 31, Dollars in millions 2023 2022 Unbilled $ 519 $ 486 Trade & other 462 456 Accounts receivable, net $ 981 $ 942 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 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 | 12 Months Ended |
Dec. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents We 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: December 29, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 122 $ 36 $ 158 Short-term investments (c) 6 8 14 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d) 111 21 132 Total $ 239 $ 65 $ 304 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 (d) 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. (d) |
Unapproved Change Orders and Cl
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors | 12 Months Ended |
Dec. 29, 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 that has been recorded to date 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 26 (114) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project-related estimates-at-completion at end of fiscal year $ 74 $ 48 The balance as of December 29, 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 and ongoing resolution of legacy projects and legal matters, including any new or ongoing dispute with our business partners and others in our supply chain. 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. During the year ended December 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. Additionally, during the year ended December 31, 2022, within our GS business segment, we recorded a charge to equity in earnings of unconsolidated affiliates on a joint venture acquired from a historical GS acquisition of $10 million based on our funding obligations of projected losses. This joint venture was divested in the fourth quarter of 2022. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of our property, plant and equipment balance are as follows: Estimated December 29, December 31, Dollars in millions 2023 2022 Land N/A $ 5 $ 4 Buildings and property improvements 1-35 151 120 Equipment and other 1-25 541 475 Total 697 599 Less accumulated depreciation (458) (417) Net property, plant and equipment $ 239 $ 182 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the years ended December 29, 2023 and December 31, 2022 were as follows: Dollars in millions Government Solutions Sustainable Technology Solutions Total Balance as of January 1, 2022 $ 1,890 $ 170 $ 2,060 Goodwill acquired during the period (Note 4) 68 — 68 Foreign currency translation (40) (1) (41) Balance as of January 1, 2023 $ 1,918 $ 169 $ 2,087 Foreign currency translation 22 — 22 Balance as of December 29, 2023 $ 1,940 $ 169 $ 2,109 Intangible Assets Intangible assets are comprised of customer relationships, trade names, licensing agreements and other. The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 29, 2023 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 12 553 (184) 369 Developed technologies 17 82 (43) 39 Contract backlog 17 291 (140) 151 Other 13 24 (15) 9 Total intangible assets $ 1,000 $ (382) $ 618 December 31, 2022 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 13 548 (153) 395 Developed technologies 19 78 (41) 37 Contract backlog 18 278 (124) 154 Other 14 23 (14) 9 Total intangible assets $ 977 $ (332) $ 645 Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. Intangibles that are not subject to amortization are reviewed annually for impairment or more often if events or circumstances change that would create a triggering event. During the years ended December 29, 2023, December 31, 2022 and December 31, 2021, no impairments related to our intangible assets were recorded. Our intangibles amortization expense is presented below: Year Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Intangibles amortization expense $ 45 $ 50 $ 66 Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future 2024 $ 43 2025 $ 43 2026 $ 43 2027 $ 43 2028 $ 42 Beyond 2028 $ 354 |
Equity Method Investments and V
Equity Method Investments and Variable Interest Entities | 12 Months Ended |
Dec. 29, 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: December 29, December 31, Dollars in millions 2023 2022 Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 114 (80) Distributions of earnings of unconsolidated affiliates (b) (63) (53) Payments from unconsolidated affiliates, net (18) (14) (Return of) investments in equity method investment, net (c) (60) (198) Sale of equity method investment (d) (a) — (31) Foreign currency translation adjustments 3 (15) Other (e) 42 3 Ending balance $ 206 $ 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 consolidated statements of cash flows. (c) During the year ended December 29, 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 BRIS 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 first quarter 2022 sales. (e) During the year ended December 29, 2023, Other included the reclassification of the net liability position of $47 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, partially offset by certain tax benefits. Equity Method Investments Brown & Root Industrial Services Joint Venture. The Brown & Root Industrial Services joint venture offers engineering, construction and reliability-driven maintenance services for the refinery, petrochemical, chemical, specialty chemicals and fertilizer markets. Our interest in this venture is accounted for using the equity method and we have determined that the Brown & Root Industrial Services joint venture is not a VIE. Results from this joint venture are included in our STS business segment. Summarized financial information Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheet December 29, December 31, Dollars in millions 2023 2022 Current assets $ 2,838 $ 1,576 Noncurrent assets 1,662 1,717 Total assets $ 4,500 $ 3,293 Current liabilities $ 2,493 $ 1,105 Noncurrent liabilities 1,898 1,914 Total liabilities $ 4,391 $ 3,019 Statements of Operations Years Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Revenues $ 5,873 $ 3,175 $ 1,294 Operating income (loss) $ 264 $ (325) $ (650) Net income (loss) $ 242 $ (321) $ (698) Unconsolidated Variable Interest Entities For the VIEs in which we participate, our maximum exposure to loss consists of our equity investment in the VIE and any amounts owed to us for services we may have provided to the VIE, reduced by any unearned revenues on the project. Our maximum exposure to loss may also include our obligation to fund our proportionate share of any future losses incurred. Where our performance and financial obligations are joint and several to the client with our joint venture partners, we may be further exposed to losses above our ownership interest in the joint venture. The following summarizes the total assets and total liabilities recorded on our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 29, 2023 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 4 $ 2 Aspire Defence Limited $ 91 $ 7 JKC joint venture (Ichthys LNG project) $ — $ 48 Plaquemines LNG project $ 82 $ 72 Dollars in millions December 31, 2022 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 9 $ 3 Aspire Defence Limited $ 87 $ 7 JKC joint venture (Ichthys LNG project) $ 15 $ — Plaquemines LNG project $ 23 $ 36 Affinity. KBR owns a 50% interest in Affinity. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provide procurement, operations and management support services under subcontracts with Affinity. The remaining 50% interest in these entities is held by Elbit Systems. KBR has provided its proportionate share of certain limited financial and performance guarantees in support of the partners' contractual obligations. The three project-related entities are VIEs; however, KBR is not the primary beneficiary of any of these entities. We account for KBR's interests in each entity using the equity method of accounting within our GS business segment. The project is funded through KBR and Elbit Systems provided equity, subordinated debt and non-recourse third party commercial bank debt. Our maximum exposure to loss includes our equity investments in the project entities as of December 29, 2023. Aspire Defence project. We indirectly own a 45% interest in Aspire Defence Limited, the contracting company that is the holder of the 35-year concession contract. The project is funded through equity and subordinated debt provided by the project sponsors and the issuance of publicly-held senior bonds which are nonrecourse to KBR and the other project sponsors. The contracting company is a VIE; however, we are not the primary beneficiary of this entity. We account for our interest in Aspire Defence Limited using the equity method of accounting. Our maximum exposure to loss includes our equity investments in the project entities and amounts payable to us for services provided to these entities less unearned revenues to be provided to these entities as of December 29, 2023. Ichthys LNG project. The Ichthys LNG project, a project to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia, is being executed through two entities (collectively, "JKC"), which are VIEs, in which we own a 30% equity interest. We account for our investments using the equity method of accounting. At December 29, 2023, our assets and liabilities associated with our investment in JKC recorded in our consolidated balance sheets under our STS business segment were $0 million and $48 million, respectively. The liability of $48 million is primarily related to the net liability position associated with our investment in JKC. These assets include estimated recoveries of claims against suppliers and insurers. See Note 6 to our consolidated financial statements for further discussion on claims related to this project. Plaquemines LNG project. KZJV is a joint venture with Zachary Group that performs certain design, engineering, procurement and construction-related services for a LNG facility in Plaquemines Parish, Louisiana. KBR owns a 45% interest in KZJV, which is a VIE for which we are joint and several to the client with our joint venture partner. We are not the primary beneficiary as we do not have the power to direct the activities of the VIE that most significantly impact its economic performance. The investment is accounted for within our STS business segment using the equity method of accounting. 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 years ended December 29, 2023, December 31, 2022 and December 31, 2021, our revenues included $567 million, $413 million and $361 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 consolidated balance sheets related to services we provided to our unconsolidated joint ventures and undistributed earnings for the years ended December 29, 2023 and December 31, 2022 are as follows: December 29, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for doubtful accounts (a) $ 103 $ 56 Other current assets $ — $ 12 Contract liabilities (a) $ 89 $ 39 (a) Accounts receivable and contract liabilities primarily related to joint ventures within our STS business segment. Consolidated Variable Interest Entities We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 29, 2023 Total Assets Total Liabilities Fasttrax Limited (Fasttrax project) $ 7 $ 3 Aspire Defence subcontracting entities (Aspire Defence project) $ 394 $ 206 HomeSafe $ 72 $ 61 Dollars in millions December 31, 2022 Total Assets Total Liabilities Fasttrax Limited (Fasttrax project) $ 14 $ 5 Aspire Defence subcontracting entities (Aspire Defence project) $ 385 $ 196 HomeSafe $ 31 $ 19 Fasttrax Limited project. The Fasttrax joint venture ("Fasttrax") was created to provide to the U.K. MoD a fleet of 91 new HETs capable of carrying a 72-ton Challenger II tank. Fasttrax owns, operates and maintains the HET fleet and provides heavy equipment transportation services to the British Army. The current project includes operating and service contracts related to the MoD HET fleet through 2023. Fasttrax's entity structure includes a parent entity and its 100% owned subsidiary, Fasttrax Limited. KBR and its partner each own a 50% interest in the parent entity, which is considered a VIE. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. Therefore, we consolidate this VIE. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan. Assets collateralizing Fasttrax’s senior bonds include cash and cash equivalents of $1 million and net property, plant and equipment of approximately $3 million as of December 29, 2023. The total amount of debt outstanding at December 29, 2023 related to our nonrecourse project-finance debt of this VIE consolidated by KBR was $2 million. Aspire Defence project (subcontracting entities). As discussed above, we assumed operational management of the Aspire Defence subcontracting entities in January 2018. These subcontracting entities exclusively provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. These entities are considered VIEs, and, because we are the primary beneficiary, they are consolidated for financial reporting purposes. HomeSafe. HomeSafe, a KBR led joint venture with Tier One Relocation, was established to be the exclusive provider of household goods move management services for the U.S. Armed Forces, U.S. DoD civilians and their families. KBR owns a 72% interest in HomeSafe. The joint venture is a VIE that is consolidated for financial reporting purposes and is accounted for within our GS business segment. We determined that we are the primary beneficiary of this project entity because we control the activities that most significantly impact economic performance of the entity. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 29, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Contribution Retirement Plans We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $119 million in 2023, $104 million in 2022 and $84 million in 2021. Defined Benefit Pension Plans 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. Substantially all of our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of years of service or compensation. We used December 29 as the measurement date for all plans in 2023 and December 31 as the measurement date for all plans in 2022. Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. Overfunded Underfunded United States Int’l United States Int’l Dollars in millions 2023 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ — $ 17 $ 59 $ 1,208 Service cost — 1 — — Interest cost — 1 3 60 Foreign currency exchange rate changes — 1 — 67 Actuarial (gain) loss (1) — (1) 2 15 Other — — — — Benefits paid — (1) (6) (63) Projected benefit obligations at end of period $ — $ 18 $ 58 $ 1,287 Change in plan assets: Fair value of plan assets at beginning of period $ — $ 16 $ 52 $ 1,251 Actual return on plan assets — 1 7 12 Employer contributions — 1 — 8 Foreign currency exchange rate changes — 1 — 70 Benefits paid — (1) (5) (64) Other — — (1) — Fair value of plan assets at end of period $ — $ 18 $ 53 $ 1,277 Funded status $ — $ — $ (5) $ (10) (1) Actuarial (gains) losses primarily driven by change in discount rates. Overfunded Underfunded United States Int’l United States Int’l Dollars in millions 2022 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ — $ 2,066 $ 74 $ 35 Service cost — 1 — 1 Interest cost — 34 2 1 Foreign currency exchange rate changes — (220) — (4) Actuarial gain (1) — (614) (12) (12) Other — (1) — — Benefits paid — (61) (5) (1) Projected benefit obligations at end of period $ — $ 1,205 $ 59 $ 20 Change in plan assets: Fair value of plan assets at beginning of period $ — $ 1,992 $ 66 $ 31 Actual return on plan assets — (539) (9) (12) Employer contributions — 73 — 1 Foreign currency exchange rate changes — (213) — (3) Benefits paid — (61) (5) (1) Other — (1) — — Fair value of plan assets at end of period $ — $ 1,251 $ 52 $ 16 Funded status $ — $ 46 $ (7) $ (4) (1) Actuarial gains primarily driven by change in discount rates. The Accumulated Benefit Obligation ("ABO") is the present value of benefits earned to date. The ABO for our United States pension plans was $58 million and $59 million as of December 29, 2023 and December 31, 2022, respectively. The ABO for our international pension plans was $1,305 million and $1,225 million as of December 29, 2023 and December 31, 2022, respectively. United States Int’l United States Int’l Dollars in millions 2023 2022 Amounts recognized on the consolidated balance sheets Pension Assets $ — $ — $ — $ 46 Other Liabilities $ (5) $ (10) $ (7) $ (4) Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2023 2022 2021 Components of net periodic benefit cost Service cost $ — $ 1 $ — $ 2 $ — $ 3 Interest cost 3 61 2 35 2 33 Expected return on plan assets (3) (102) (3) (83) (3) (87) Prior service cost amortization — 1 — 1 — 1 Recognized actuarial loss 1 — 1 23 2 31 Net periodic (benefit) cost $ 1 $ (39) $ — $ (22) $ 1 $ (19) The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 29, 2023 and December 31, 2022, net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2023 2022 Unrecognized actuarial loss, net of tax of $7 and $221, $8 and $195, respectively $ 15 $ 629 $ 16 $ 552 Total in accumulated other comprehensive loss $ 15 $ 629 $ 16 $ 552 The weighted-average assumptions used to determine net periodic benefit cost were as follows: United States Int'l United States Int'l United States Int'l 2023 2022 2021 Discount rate 4.91 % 5.00 % 2.45 % 1.80 % 2.00 % 1.40 % Expected return on plan assets 6.63 % 5.92 % 5.19 % 4.73 % 5.19 % 4.67 % The weighted-average assumptions used to determine benefit obligations at the measurement date were as follows: United States Int'l United States Int'l 2023 2022 Discount rate 4.70 % 4.79 % 4.91 % 5.00 % Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have diversified asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range. The target asset allocation for our U.S. and International plans for 2024 is as follows: 2024 Targeted United States Int'l Equity funds and securities 52 % 14 % Fixed income funds and securities 39 % 67 % Hedge funds — % — % Real estate funds 1 % 7 % Other 8 % 12 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2024 and 2023, by asset class, are as follows: International Plans 2024 Targeted 2023 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 11 % 17 % 20 % 50 % Fixed income funds and securities 53 % 80 % 30 % 100 % Hedge funds — % — % — % 7 % Real estate funds 6 % 9 % — % 10 % Other 10 % 15 % — % 35 % The range of targeted asset allocations for our U.S. plans for 2024 and 2023, by asset class, are as follows: Domestic Plans 2024 Targeted 2023 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 62 % 41 % 62 % Fixed income funds and securities 31 % 47 % 31 % 47 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 7 % 10 % ASC 820 - Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. Refer to Note 20 "Financial Instruments and Risk Management" for a description of the primary valuation methodologies and classification used for assets measured at fair value. A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 29, 2023 United States plan assets Investments measured at net asset value (a) $ 53 $ — $ — $ — Cash and equivalents — — — — Total United States plan assets $ 53 $ — $ — $ — International plan assets Equities $ 51 $ — $ — $ 51 Fixed income 597 — 597 — Real estate 1 — — 1 Cash and cash equivalents 83 83 — — Other 62 — — 62 Investments measured at net asset value (a) 501 — — — Total international plan assets $ 1,295 $ 83 $ 597 $ 114 Total plan assets at December 29, 2023 $ 1,348 $ 83 $ 597 $ 114 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2022 United States plan assets Investments measured at net asset value (a) $ 52 $ — $ — $ — Cash and equivalents — — — — Total United States plan assets $ 52 $ — $ — $ — International plan assets Equities $ 60 $ — $ — $ 60 Fixed income — — — — Real estate 1 — — 1 Cash and cash equivalents 31 31 — — Other 52 — — 52 Investments measured at net asset value (a) 1,123 — — — Total international plan assets $ 1,267 $ 31 $ — $ 113 Total plan assets at December 31, 2022 $ 1,319 $ 31 $ — $ 113 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2021 $ 137 $ 88 $ — $ 1 $ 48 Return on assets held at end of year 11 7 — — 4 Return on assets sold during the year 5 — — — 5 Purchases, sales and settlements, net (26) (26) — — — Foreign exchange impact (14) (9) — — (5) Balance as of December 31, 2022 $ 113 $ 60 $ — $ 1 $ 52 Return on assets held at end of year (6) (4) — — (2) Return on assets sold during the year — — — — — Purchases, sales and settlements, net 2 (8) — — 10 Foreign exchange impact 5 3 — — 2 Balance as of December 29, 2023 $ 114 $ 51 $ — $ 1 $ 62 Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plans reside. In certain countries the funding requirements are mandatory while in other countries they are discretionary. We expect to contribute $42 million to our pension plans in 2024. On October 17, 2022, we made an advance payment to our U.K. pension plan for approximately £29 million of the £33 million required minimum annual contributions for the year ending December 29, 2023. Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2024 $ 6 $ 65 2025 $ 5 $ 67 2026 $ 5 $ 70 2027 $ 5 $ 72 2028 $ 5 $ 74 Years 2029 - 2033 $ 22 $ 405 Deferred Compensation Plans Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. The elective deferral plan is unfunded except for $13 million and $12 million of mutual funds designated for a portion of our employee deferral plan included in other assets on our consolidated balance sheets at December 29, 2023 and December 31, 2022, respectively. The mutual funds are measured at fair value using Level 1 inputs under ASC 820 and may be liquidated in the near term without restrictions. Our obligations under our employee deferred compensation plan were $66 million and $57 million as of December 29, 2023 and December 31, 2022, respectively, and are included in employee compensation and benefits in our consolidated balance sheets. |
Debt and Other Credit Facilitie
Debt and Other Credit Facilities | 12 Months Ended |
Dec. 29, 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 December 29, 2023 December 31, 2022 Term Loan A 595 398 Term Loan B 501 506 Senior Notes 250 250 Revolver 505 260 Convertible Senior Notes (a) — 350 Unamortized debt issuance costs and discount - Convertible Senior Notes (a) — (2) Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (8) (10) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt 1,832 1,740 Less: current portion 31 364 Total long-term debt, net of current portion $ 1,801 $ 1,376 (a) The settlement and maturity of the Convertible Senior Notes occurred on November 1, 2023. See "Convertible Senior Notes" section below for additional information. Senior Credit Facility We entered into Amendment No. 8 on February 6, 2023, to our existing Credit Agreement, dated as of April 25, 2018, as amended ("Credit Agreement"), 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" and together with the Revolver and Term Loan A, the "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. We entered into Amendment No. 9 to our Credit Agreement on June 6, 2023. Amendment No. 9 replaces the LIBOR-based reference borrowing rate with a SOFR-based reference borrowing rate for Term Loan B. We entered into Amendment No. 10 to our Credit Agreement on July 26, 2023. Amendment No. 10 provided for an additional $200 million loan tranche under Term Loan A. We borrowed the full $200 million principal amount available under this additional loan tranche, and this $200 million borrowing was applied as a partial repayment of the outstanding amounts of principal and accrued interest under the Revolver. We had borrowings of $785 million and repayments of $340 million on our Senior Credit Facility that occurred during the year ended December 29, 2023. The borrowings on our Senior Credit Facility were primarily related to funding our repurchase and maturity of Convertible Senior Notes in 2023 and our termination of outstanding warrants in 2023. See Note 22 "Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements" for additional information. We entered into Amendment No.11 to our Credit Agreement on January 19, 2024. This amendment provides for an incremental Term Loan B facility in an aggregate principal amount of $1 billion and extends the Term Loan B maturity date to January 2031. We borrowed the full $1 billion principal amount available under this loan and primarily used the proceeds to repay all amounts of outstanding principal and accrued interest under the Company’s Term Loan B facility at December 29, 2023 and to partially repay outstanding principal and accrued interest under the Company’s Revolver. We entered into Amendment No.12 to our Credit Agreement on February 7, 2024. This amendment consolidated the USD denominated Term A-1, Term A-2 and Term A-4 loan facilities under our Credit Agreement into the amended USD denominated Term A-1 loan facility and continued the GBP denominated Term A-3 loan facility outstanding at December 29, 2023. Additionally, this amendment extended the maturity date of the $1 billion Revolver, amended Term A-1 loan facility and Term A-3 loan facility to February 2029. Immediately following execution of Amendment No. 12, we had approximately $500 million outstanding related to the remaining Term Loan A facilities and $117 million outstanding on our Revolver. The interest rates with respect to the Revolver and Term Loan A are based on, at the Company's option, the applicable adjusted reference rate plus an additional margin or base rate plus additional margin. The interest rate with respect to the Term Loan B is SOFR plus 2.75% plus an additional margin, per annum. Additionally, there is a commitment fee applicable to available amounts under 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 plus 12 bps Credit Spread Adjustment 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 in February 2029 and Term Loan B matures in January 2031. 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 December 29, 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 were senior unsecured obligations and bore interest at 2.50% per year, and interest was payable on May 1 and November 1 of each year. 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. On June 1, 2023, we entered into privately negotiated transactions to repurchase $100 million in principal amount of the outstanding Convertible Notes (the “Convertible Notes repurchase”), using funds borrowed under our Revolver to pay the purchase price. Concurrent with the Convertible Notes repurchase, we entered into agreements with the option counterparties to terminate the corresponding portions of the Note Hedge Transactions and Warrant Transactions (collectively, the "Unwind Agreements"). See Note 22 "Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements" for additional information regarding these transactions. On August 23, 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 39.6890 Common Shares per $1,000 principal amount of Convertible Notes at a strike price of $25.20. This was the conversion rate upon maturity of the Convertible Notes on November 1, 2023. 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. See Note 22 "Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements" for information regarding the unwind agreements for our outstanding warrants. No warrants were outstanding as of December 29, 2023. The Note Hedge Transactions and the Warrant Transactions were separate transactions, in each case entered into by us with the option counterparties, and were not part of the terms of the Convertible Notes and did not affect any holder's rights under the Convertible Notes . Convertible Notes Maturity . The Convertible Notes matured November 1, 2023, and were settled in cash for $593 million of which $250 million related to the remaining principal and $343 million related to the value of the conversion option. Concurrently with the maturity of the Convertible Notes, the Note Hedge Transactions were settled with payments to the Company totaling $343 million. The aggregate cash conversion consideration of $593 million was fulfilled with proceeds received from Note Hedge Transactions totaling $343 million, a $200 million borrowing on our Revolver and $50 million in available cash. Prior to maturity and settlement on November 1, 2023, any changes related to the fair value of the derivative asset were directly offset by the change in fair value of the embedded derivative liability. No amounts were recognized on our statement of operations as a result of the maturity of the Convertible Notes on November 1, 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 could have redeemed 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 could have redeemed up to 35% of the original aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 104.750% of the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, to (but not including) the redemption date. If we undergo a change of control, we may be required to make an offer to holders of the Senior Notes to repurchase all of the Senior Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. Letters of credit, surety bonds and guarantees In connection with certain projects, we are required to provide letters of credit, surety bonds or guarantees to our customers in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers and future funding commitments. As of December 29, 2023, we had $1 billion in a committed line of credit on the Revolver under our Senior Credit Facility and $392 million of bilateral and uncommitted lines of credit to support the issuance of letters of credit. As of December 29, 2023, with respect to our Revolver, we had $505 million of outstanding borrowings. We also have $14 million of outstanding letters of credit on our Senior Credit Facility. With respect to our $392 million of bilateral and uncommitted lines of credit, we utilized $298 million for letters of credit as of December 29, 2023. The total remaining capacity of these committed and uncommitted lines of credit was approximately $575 million. Of the letters of credit outstanding under the Senior Credit Facility, none have expiry dates beyond the maturity date of the Senior Credit Facility. Of the total letters of credit outstanding under our bilateral facilities, $83 million relate to our joint venture operations where the letters of credit are posted using our capacity to support our pro-rata share of obligations under various contracts executed by joint ventures of which we are a member. We may also guarantee that a project, once completed, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential amount of future payments that we could be required to make under an outstanding performance arrangement is typically the remaining estimated cost of work to be performed by or on behalf of third parties. Amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete the project. If costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, subcontractors or vendors for claims. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 United States $ (465) $ 138 $ 177 Foreign: United Kingdom 133 161 56 Australia 49 (103) (199) Canada 1 — (2) Middle East 45 16 39 Africa 6 7 3 Other 65 65 72 Subtotal 299 146 (31) Total $ (166) $ 284 $ 146 The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Provision for income taxes $ (95) $ (92) $ (111) Shareholders' equity, foreign currency translation adjustment — — (1) Shareholders' equity, pension and post-retirement benefits 25 (4) (44) Shareholders' equity, changes in fair value of derivatives 3 (11) (7) Total income taxes $ (67) $ (107) $ (163) The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year ended December 29, 2023 Federal $ — $ (3) $ (3) Foreign (65) (14) (79) State and other (17) 4 (13) Provision for income taxes $ (82) $ (13) $ (95) Year ended December 31, 2022 Federal $ (10) $ (7) $ (17) Foreign (36) (26) (62) State and other (9) (4) (13) Provision for income taxes $ (55) $ (37) $ (92) Year ended December 31, 2021 Federal $ (1) $ (28) $ (29) Foreign (49) (22) (71) State and other (14) 3 (11) Provision for income taxes $ (64) $ (47) $ (111) The components of our total foreign income tax provision were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 United Kingdom $ (32) $ (29) $ (22) Australia (13) (13) (23) Middle East (12) (8) (9) Other (22) (12) (17) Foreign provision for income taxes $ (79) $ (62) $ (71) Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following: Years ended, December 29, December 31, December 31, 2023 2022 2021 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 21 % Increase (reduction) in tax rate from: Tax impact from foreign operations 2 % 1 % — % Noncontrolling interests and equity earnings (1) % 8 % 38 % State and local income taxes, net of federal benefit 2 % 2 % 2 % Other permanent differences, net 5 % 4 % 4 % Other non-deductible expenditures — % 2 % 1 % U.S. taxes on foreign unremitted earnings — % — % 1 % Change in federal and foreign valuation allowance (3) % (2) % (4) % Research and development credits, net of provision — % (6) % — % Release of previously reserved position (2) % — % — % U.K. statutory rate change — % 2 % 13 % Non-Deductible portion associated with legal settlement of legacy matter (11) % — % — % Non-Deductible portion of Charges associated with Convertible Notes (70) % — % — % Effective tax rate on income from operations (57) % 32 % 76 % The primary components of our deferred tax assets and liabilities were as follows: Years ended, December 29, December 31, Dollars in millions 2023 2022 Deferred tax assets: Employee compensation and benefits $ 68 $ 65 Foreign tax credit carryforwards 118 186 Loss carryforwards 77 121 Research and development and other credit carryforwards 64 49 Insurance accruals 8 9 Allowance for credit losses 1 3 Lease obligation and accrued liabilities 74 85 Contract liabilities 23 21 Capitalized research expenditures 37 18 Other 73 57 Total gross deferred tax assets 543 614 Valuation allowances (148) (217) Net deferred tax assets 395 397 Deferred tax liabilities: Right-of-use assets (31) (39) Intangible amortization (91) (96) Indefinite-lived intangible amortization (91) (82) Other (49) (59) Total gross deferred tax liabilities (262) (276) Deferred income tax (liabilities) assets, net $ 133 $ 121 The valuation allowance for deferred tax assets was $148 million and $217 million at December 29, 2023 and December 31, 2022, respectively. The net change in the total valuation allowance was a decrease of $69 million in 2023 and an increase of $13 million in 2022. The change in 2023 was mainly driven by proposed net operating loss amendments on previously filed state income tax returns and the utilization of previously valued foreign tax credits in the U.S. The valuation allowance balance at December 29, 2023 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. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), income available from carryback years, projected future taxable income and tax-planning strategies in making this assessment. Income related to the U.S. branches totaled $94 million, $56 million and $56 million for the fiscal years 2023, 2022, and 2021, respectively, and is included in the foreign component of income in the notes to our consolidated financial statements. The total income (loss) related to the U.S., inclusive of branches and exclusive of charges associated with Convertible Notes and the legal settlement of a legacy matter, totaled $267 million, $194 million and $221 million for the fiscal years 2023, 2022, and 2021, respectively. We concluded that future taxable income and the reversal of deferred tax liabilities were the only sources of taxable income available in determining the amount of valuation allowance to be recorded against our deferred tax assets. The deferred tax liabilities we relied on are projected to reverse in the same jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The deferred tax liabilities are projected to reverse in the same periods as the deferred tax assets and are projected to reverse beginning in fiscal year 2024 through fiscal year 2029. We estimated future taxable income by jurisdiction exclusive of reversing temporary differences and carryforwards and applied our foreign tax credit carryforwards based on the sourcing and character of those estimates and considered any limitations. Our ability to utilize the unreserved foreign tax credit carryforwards is based on our ability to generate future taxable income of at least $333 million prior to their expiration whereas our ability to utilize other net deferred tax assets to generate future taxable income of at least $933 million. While our current projections of taxable income exceed these amounts, changes in our forecasted taxable income in the applicable taxing jurisdictions within the carryforward periods could affect the ultimate realization of deferred tax assets and our valuation allowance. The net deferred tax balance by major jurisdiction after valuation allowance as of December 29, 2023 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 299 $ (116) $ 183 United Kingdom (70) (1) (71) Australia 13 — 13 Canada 21 (20) 1 Other 18 (11) 7 Total $ 281 $ (148) $ 133 At December 29, 2023, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 29, 2023 Expiration Foreign tax credit carryforwards $ 118 2024-2029 Foreign net operating loss carryforwards $ 118 2024-2043 Foreign net operating loss carryforwards $ 24 Indefinite State net operating loss carryforwards $ 830 Various Research and development and other credit carryforwards $ 64 2024-2043 We provide for taxes on accumulated and current E&P on certain foreign subsidiaries. As of December 29, 2023, the cumulative amount of permanently reinvested foreign earnings is $2.1 billion. These previously unremitted earnings have been subject to U.S. tax. However, these undistributed earnings could be subject to additional taxes (withholding and/or state taxes) if remitted, or deemed remitted, as a dividend. The tax effects of remitting earnings, if any, are recognized when we plan on remitting these earnings. We consider our future U.S. and non-U.S. cash needs such as 1) our anticipated foreign working capital requirements, including funding of our U.K. pension plan, 2) the expected growth opportunities across all geographical markets and 3) our plans to invest in strategic growth opportunities that may include acquisitions around the world. The Organization for Economic Co-operation and Development (OECD) has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective January 1, 2024 and other aspects effective January 1, 2025. While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which we operate have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. We do not expect Pillar 2 to have a material impact on our effective tax rate or our consolidated results of operation, financial position, and cash flows. The Inflation Reduction Act was signed into law by the President on August 16, 2022, which enacts a 15% corporate minimum tax effective in 2023 for C-Corporations with book profits greater than $1 billion and imposes a 1% tax on the fair market value of stock repurchases by a publicly traded U.S. corporation after December 31, 2022, which will be accounted for separately from income taxes when incurred. The Inflation Reduction Act also creates or extends certain tax-related energy incentives. KBR currently does not expect the tax-related provision of the Inflation Reduction Act to have a material impact on our financial results. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2023 2022 2021 Balance at January 1, $ 92 $ 89 $ 96 Increases related to current year tax positions 2 8 — Increases related to prior year tax positions — 1 — Decreases related to prior year tax positions (2) (2) (4) Settlements (16) — — Lapse of statute of limitations (2) (2) (2) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions — (2) (1) Ending Balance $ 74 $ 92 $ 89 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $60 million as of December 29, 2023. The difference between this amount and the amounts reflected in the tabular reconciliation above relates primarily to deferred income tax benefits on uncertain tax positions. In the next twelve months, it is reasonably possible that our uncertain tax positions could change by approximately $16 million due to settlements with tax authorities and the expirations of statutes of limitations. The settlements of $16 million in 2023 are related to the release of a previously reserved IRS audit position based on developments associated with the ongoing IRS examination and appeals process for certain years. We recognize accrued interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. Our accrual for interest and penalties was $40 million and $34 million as of December 29, 2023 and December 31, 2022, respectively. During the years ended December 29, 2023, 2022 and 2021, we recognized net interest and penalty charges of $3 million, $2 million and $1 million related to uncertain tax positions. KBR is the parent of a group of domestic companies that are members of a U.S. consolidated federal income tax return. We also file income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to examination by tax authorities for U.S. federal or state and local income tax for years before 2007. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We 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. See further discussion of material legal proceedings and ongoing litigation in Note 14 below. Environmental We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the U.S, these laws and regulations include, among others: the Comprehensive Environmental Response, Compensation and Liability Act; the Resources Conservation and Recovery Act; the Clean Air Act; the Clean Water Act and the Toxic Substances Control Act. In addition to federal and state laws and regulations, other countries where we do business often have numerous environmental regulatory requirements by which we must abide in the normal course of our operations. These requirements apply to our business segments where we perform construction and industrial maintenance services or operate and maintain facilities. Existing or pending climate change legislation, regulations, international treaties or accords are not expected to have a material direct effect on our business, the markets that we serve or on our results of operations or financial position. However, climate change legislation could have a direct effect on our customers or suppliers, which could impact our business. We continue to monitor developments in this area. Insurance Programs Our employee-related health care benefits program is self-funded. Our workers’ compensation, automobile and general liability insurance programs include a deductible applicable to each claim. Claims in excess of our deductible are paid by the insurer. The liabilities are based on claims filed and estimates of claims incurred but not reported. As of December 29, 2023, liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $37 million, comprised of $18 million included in accrued salaries, wages and benefits, $3 million included in other current liabilities and $16 million included in other liabilities all on our consolidated balance sheets. As of December 31, 2022, liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $41 million, comprised of $19 million included in accrued salaries, wages and benefits, $3 million included in other current liabilities and $19 million included in other liabilities all on our consolidated balance sheets. |
U.S. Government Matters
U.S. Government Matters | 12 Months Ended |
Dec. 29, 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 $45 million and $61 million for the years ended December 29, 2023, and December 31, 2022, respectively, which are recorded in other liabilities on our 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 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 administratively closing the individual task orders issued under the contract. We continue to work with the U.S. government to resolve the issues to close the remaining task orders, which includes ongoing litigation of third-party vendor disputes. 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. 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 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. On January 5, 2023, FKTC filed a motion to vacate the arbitral award in the Eastern District of Virginia Federal District Court. KBR filed its response on February 2, 2023. On March 22, 2023, both parties presented oral arguments. On May 12, 2023, the District Court issued its order denying FKTC’s motion to vacate the arbitration award and confirming the award. On June 12, 2023, the parties submitted their briefs in support of their calculations of the final award amount. KBR sought to confirm the net award of $16 million in KBR’s favor plus post-judgment interest. FKTC sought to offset amounts awarded to KBR with amounts FKTC claimed it was owed based on unpaid principal and post award interest on the awards issued in its favor in the prior arbitration proceedings, totaling $70 million. KBR disagreed with FKTC’s interest claim and calculation. On September 22, 2023, the Court issued a decision finding the net amount due in favor of KBR from FKTC is $8 million. FKTC has appealed this ruling. In addition, in March 2022, FKTC filed a 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. On December 7, 2023, the Kuwait Court of Cassation issued a ruling ordering KBR to pay an immaterial provisional damage award and requiring FKTC to refile its case in the Court of First Instance for adjudication. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, no amounts were accrued as of December 29, 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 violation of the FCA. 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, which was denied. Fact discovery and expert reports were completed. We also filed a 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 several times. Although we believe the allegations of fraud by the relators are without merit, we participated in mediation and discussions with the relators while continuing to prepare for trial. Any proposed framework for resolving the litigation required agreements on damages and attorneys' fees, as well as necessary determinations by the Department of the Army and approval by the DOJ. On June 30, 2023, KBR executed a settlement agreement with the relators and the Department of Justice. Under the terms of the settlement, KBR denies any liability or wrongful conduct. Pursuant to the settlement, KBR paid $109 million, of which $57 million comprised restitution damages, and $35 million to the relators as attorney’s fees. Payment of the settlement was made on July 10, 2023, and KBR recorded the associated charge of $144 million during the year ended December 29, 2023. |
Leases
Leases | 12 Months Ended |
Dec. 29, 2023 | |
Leases [Abstract] | |
Leases | Leases We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 91% of our lease obligations at December 29, 2023. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term to determine total future lease payments. Because most of our lease agreements do not explicitly state the discount rate, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments. Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities. The operating ROU asset and noncurrent operating lease liabilities are disclosed on our consolidated balance sheets. The current operating lease liabilities are included in other current liabilities on our consolidated balance sheets. The finance ROU asset is included in property, plant and equipment other current liabilities other liabilities, The components of our operating lease costs for the years ended December 29, 2023, December 31, 2022 and December 31, 2021 were as follows: Years ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Operating lease cost $ 62 $ 61 $ 51 Short-term lease cost 215 369 528 Total lease cost $ 277 $ 430 $ 579 Operating lease cost includes operating lease ROU asset amortization of $46 million, $47 million and $38 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively, and other noncash operating lease costs related to the accretion of operating lease liabilities and straight-line lease accounting of $16 million, $14 million and $13 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively. Total short-term lease commitments as of December 29, 2023 were approximately $178 million. Additional information related to leases was as follows: December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 65 $ 63 $ 59 Financing cash flows from finance leases $ 11 $ 11 $ 13 Right-of-use assets obtained in exchange for new operating lease liabilities $ 60 $ 61 $ 33 Right-of-use assets obtained in exchange for new finance lease liabilities $ 11 $ 13 $ 11 Weighted-average remaining lease term-operating (in years) 6 years 7 years 6 years Weighted-average remaining lease term-finance (in years) 2 years 2 years 3 years Weighted-average discount rate-operating leases 6.2 % 6.0 % 6.3 % Weighted-average discount rate-finance leases 4.2 % 3.1 % 4.0 % The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 29, 2023: Dollars in millions Operating Leases Finance Leases 2024 55 12 2025 49 7 2026 36 1 2027 31 1 2028 30 1 Thereafter 70 — Total future payments 271 22 Less imputed interest (47) (1) Present value of future lease payments 224 21 Less current portion of lease obligations (48) (11) Noncurrent portion of lease obligations $ 176 $ 10 |
Leases | Leases We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 91% of our lease obligations at December 29, 2023. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term to determine total future lease payments. Because most of our lease agreements do not explicitly state the discount rate, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments. Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities. The operating ROU asset and noncurrent operating lease liabilities are disclosed on our consolidated balance sheets. The current operating lease liabilities are included in other current liabilities on our consolidated balance sheets. The finance ROU asset is included in property, plant and equipment other current liabilities other liabilities, The components of our operating lease costs for the years ended December 29, 2023, December 31, 2022 and December 31, 2021 were as follows: Years ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Operating lease cost $ 62 $ 61 $ 51 Short-term lease cost 215 369 528 Total lease cost $ 277 $ 430 $ 579 Operating lease cost includes operating lease ROU asset amortization of $46 million, $47 million and $38 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively, and other noncash operating lease costs related to the accretion of operating lease liabilities and straight-line lease accounting of $16 million, $14 million and $13 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively. Total short-term lease commitments as of December 29, 2023 were approximately $178 million. Additional information related to leases was as follows: December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 65 $ 63 $ 59 Financing cash flows from finance leases $ 11 $ 11 $ 13 Right-of-use assets obtained in exchange for new operating lease liabilities $ 60 $ 61 $ 33 Right-of-use assets obtained in exchange for new finance lease liabilities $ 11 $ 13 $ 11 Weighted-average remaining lease term-operating (in years) 6 years 7 years 6 years Weighted-average remaining lease term-finance (in years) 2 years 2 years 3 years Weighted-average discount rate-operating leases 6.2 % 6.0 % 6.3 % Weighted-average discount rate-finance leases 4.2 % 3.1 % 4.0 % The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 29, 2023: Dollars in millions Operating Leases Finance Leases 2024 55 12 2025 49 7 2026 36 1 2027 31 1 2028 30 1 Thereafter 70 — Total future payments 271 22 Less imputed interest (47) (1) Present value of future lease payments 224 21 Less current portion of lease obligations (48) (11) Noncurrent portion of lease obligations $ 176 $ 10 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 29, 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, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (69) (6) 39 (36) Amounts reclassified from AOCL 13 19 3 35 Net other comprehensive income (loss) (56) 13 42 (1) Balance at December 31, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 42 (77) 10 (25) Amounts reclassified from AOCL 10 1 (19) (8) Net other comprehensive income (loss) 52 (76) (9) (33) Balance at December 29, 2023 $ (300) $ (644) $ 29 $ (915) Reclassifications out of AOCL, net of tax, by component Years ended Dollars in millions December 29, 2023 December 31, 2022 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ (10) $ (13) Net income attributable to noncontrolling interests and Gain (loss) on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ (10) $ (13) Accumulated pension liability adjustments Amortization of prior service cost $ (1) $ (1) See (a) below Recognized actuarial loss (1) (23) See (a) below Tax benefit 1 5 Provision for income taxes Net pension and post-retirement benefits $ (1) $ (19) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 24 $ (4) Other non-operating income (expense) Tax benefit (5) 1 Provision for income taxes Net changes in fair value of derivatives $ 19 $ (3) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 10 to our consolidated financial statements for further discussion. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 29, 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 December 29, 2023, $326 million remains available for repurchase under this authorization. On February 19, 2024, the Board of Directors authorized $174 million of share repurchases to be added to the prior authorizations. After the authorization on February 19, 2024, $500 million remains authorized and available for repurchase under this program. The authorization does not obligate the Company to acquire any particular number of shares of common stock and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash flows and the authorization does not have an expiration date. Share Maintenance Programs Stock options and restricted stock awards granted under the KBR, Inc. 2006 Stock and Incentive Plan ("KBR Stock Plan") may be satisfied using shares of our authorized but unissued common stock or our treasury share account. The ESPP allows eligible employees to withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR common stock. These shares are issued from our treasury share account. Withhold 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 Stock Plan. The table below presents information on our annual share repurchases activity under these programs: Year Ended December 29, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 2,222,293 $ 56.23 $ 125 Withhold to cover shares 240,098 54.22 13 Total 2,462,391 $ 56.03 $ 138 Year Ended December 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 4,029,686 $ 47.94 $ 193 Withhold to cover shares 199,642 48.64 10 Total 4,229,328 $ 47.97 $ 203 |
Share-based Compensation and In
Share-based Compensation and Incentive Plans | 12 Months Ended |
Dec. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation and Incentive Plans | Share-based Compensation and Incentive Plans KBR Stock Plan In November 2006, KBR established the KBR Stock Plan, which provides for the grant of any or all of the following types of share-based compensation listed below: • stock options, including incentive stock options and nonqualified stock options; • stock appreciation rights, in tandem with stock options or freestanding; • restricted stock; • restricted stock units; • cash performance awards; and • stock value equivalent awards. In May 2012, the KBR Stock Plan was amended to add 2 million shares of our common stock available for issuance under the KBR Stock Plan and increase certain sub-limits. In May 2016, the KBR Stock Plan was further amended to add 4.4 million shares of our common stock available for issuance under the KBR Stock Plan. Additionally, this amendment increased the sublimit under the Stock Plan in the form of restricted stock awards, restricted stock unit awards, stock value equivalent awards or pursuant to performance awards denominated in common stock by 4.4 million. Under the terms of the KBR Stock Plan, 16.4 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 9.9 million shares can be awarded as restricted stock, restricted stock units, stock value equivalents or pursuant to performance awards denominated in common stock. At December 29, 2023, approximately 3.9 million shares were available for future grants under the KBR Stock Plan, of which approximately 0.5 million shares remained available for restricted stock awards or restricted stock unit awards. KBR Stock Options Under the KBR Stock Plan, stock options are granted with an exercise price not less than the fair market value of the common stock on the date of the grant and a term no greater than 10 years. The fair value of options at the date of grant were estimated using the Black-Scholes-Merton option pricing model. The expected volatility of KBR options granted in each year is based upon a blended rate that uses the historical and implied volatility of common stock for KBR. The expected term of KBR options granted was based on KBR's historical experience. The estimated dividend yield was based upon KBR’s annualized dividend rate divided by the market price of KBR’s stock on the option grant date. The risk-free interest rate was based upon the yield of U.S. government issued treasury bills or notes on the option grant date. We amortize the fair value of the stock options over the vesting period on a straight-line basis. Options are granted from shares authorized by our Board of Directors. There were no stock options granted in 2023, 2022 or 2021. As of December 29, 2023, there were 152,799 options outstanding and exercisable with a weighted average exercise price of $19.92. All remaining outstanding and exercisable options expire by the end of 2025. During 2023, 246,387 options were exercised with a weighted average exercise price of $21.91. As of December 29, 2023, there was no unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options. There was no stock option compensation expense in 2023, 2022 and 2021. KBR Restricted stock Restricted shares issued under the KBR Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically over a period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and ratably charged to income over the period during which the restrictions lapse on a straight-line basis. For awards with performance conditions, an evaluation is made each quarter as to the likelihood of meeting the performance criteria. Share-based compensation is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date. The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2023 under the KBR Stock Plan. Restricted stock activity summary Number of Weighted Nonvested shares at December 31, 2022 845,126 $ 37.90 Granted 291,577 56.09 Vested (394,440) 36.33 Forfeited (61,483) 44.06 Nonvested shares at December 29, 2023 680,780 $ 46.04 The weighted average grant-date fair value per share of restricted KBR shares granted to employees during 2023, 2022 and 2021 was $56.09, $47.94 and $33.97, respectively. Restricted stock compensation expense was $15 million, $15 million, and $12 million for the years ended 2023, 2022 and 2021, respectively. Total income tax benefit recognized in net income for share-based compensation arrangements during 2023, 2022 and 2021 was $3 million, $3 million, and $2 million, respectively. As of December 29, 2023, there was $22 million of unrecognized compensation cost, net of estimated forfeitures, related to KBR’s non-vested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 1.73 years. The total fair value of shares vested was $21 million in 2023, $31 million in 2022 and $16 million in 2021 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $14 million in 2023, $15 million in 2022 and $10 million in 2021 based on the weighted-average fair value on the date of grant. Performance-Based Stock Awards Under the KBR Stock Plan, a portion of the Long-term Performance Cash and Stock Awards is settled in KBR shares. These awards vest and shares are issued at the end of a three-year period. The ultimate number of shares issued could range from 0% to 200% of the original shares granted depending upon KBR's performance in relation to the Total Shareholder Return ("TSR") performance objective. Stock compensation expense for these awards was $6 million, $6 million and $4 million for the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively. KBR Cash Performance Based Award Units ("Cash Performance Awards") Under the KBR Stock Plan, for Cash Performance Awards granted in 2023, 2022 and 2021, performance is based 50% on average TSR, as compared to the average TSR of KBR’s peers, and 50% on KBR’s Book-to-Bill for 2023 and 2022 and Job Income Sold ("JIS") for 2021. In accordance with the provisions of ASC 718 - Compensation-Stock Compensation, the TSR portion for the performance award units are classified as liability awards and remeasured at the end of each reporting period at fair value until settlement. The fair value approach uses the Monte Carlo valuation method which analyzes the companies comprising KBR’s peer group, considering volatility, interest rate, stock beta and TSR through the grant date. The Book-to-Bill calculation for 2023 and 2022 and JIS calculation for 2021 is based on the Company's Book-to-Bill and JIS earned at a target level averaged over a three year period. The Book-to-Bill and JIS portion of the Cash Performance Award is also classified as a liability award and remeasured at the end of each reporting period based on our estimate of the amount to be paid at the end of the vesting period. The cash performance award units may only be paid in cash. Under the KBR Stock Plan, in 2023, we granted 19 million performance based award units ("Cash Performance Awards") with a three-year performance period from January 1, 2023 to December 31, 2025. In 2022, we granted 16 million Cash Performance Awards with a three-year performance period from January 1, 2022 to December 31, 2024. In 2021, we granted 13 million Cash Performance Awards with a three-year performance period from January 1, 2021 to December 31, 2023. Cash Performance Awards forfeited, net of previous plan payout, totaled 5 million units, 2 million units and 4 million units during the years ended December 29, 2023, December 31, 2022 and December 31, 2021, respectively. At December 29, 2023, the outstanding balance for Cash Performance Awards is 42 million units. Cash Performance Awards are not considered earned until required performance conditions are met. Additionally, approval by the Compensation Committee of the Board of Directors is required before earned Cash Performance Awards are paid. Cost for the Cash Performance Awards is accrued over the requisite service period. For the years ended December 29, 2023, December 31, 2022 and December 31, 2021, we recognized $21 million, $20 million and $26 million, respectively, in expense for Cash Performance Awards. The expense associated with these Cash Performance Awards is included in cost of services and general and administrative expense in our consolidated statements of operations. The liability for Cash Performance Awards includes $20 million recorded within accrued salaries, wages and benefits and $19 million recorded within employee compensation and benefits on our consolidated balance sheets as of December 29, 2023. The liability for Cash Performance Awards includes $19 million recorded within accrued salaries, wages and benefits, and $17 million recorded within employee compensation and benefits on our consolidated balance sheets as of December 31, 2022. KBR Employee Stock Purchase Plan ("ESPP") Under the ESPP, eligible employees may withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR’s common stock. Unless KBR’s Board of Directors determines otherwise, each six-month offering period commences at the beginning of February and August of each year. In 2023, employees who participated in the ESPP received a 5% discount on the stock price at the end of each period. In 2024, employees who participate in the ESPP will receive a 6% discount on the stock price at the end of each period. During 2023 and 2022, our employees purchased approximately 119,000 and 124,000 shares, respectively, through the ESPP. These shares were issued from our treasury share account. |
Income (loss) per Share and Cer
Income (loss) per Share and Certain Related Information | 12 Months Ended |
Dec. 29, 2023 | |
Earnings Per Share [Abstract] | |
Income (loss) per Share and Certain Related Information | Income (loss) per Share and Certain Related Information 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: Years ended, December 29, December 31, December 31, Shares in millions 2023 2022 2021 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ (265) $ 190 $ 27 Less earnings allocable to participating securities $ — $ (1) $ — Basic net income (loss) attributable to KBR $ (265) $ 189 $ 27 Reversal of Convertible Debt interest expense $ — 7 — Diluted net income (loss) attributable to KBR $ (265) $ 196 $ 27 Weighted average common shares outstanding: Basic weighted average common shares outstanding 135 139 140 Convertible Debt — 14 — Warrants — 3 — Stock options and restricted shares — — 1 Diluted weighted average common shares outstanding 135 156 141 Net income (loss) attributable to KBR per share: Basic $(1.96) $1.36 $0.19 Diluted $(1.96) $1.26 $0.19 Due to our net loss position for the year ended December 29, 2023, our basic net loss attributable to KBR per share and diluted net loss attributable to KBR 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 net income (loss) attributable to KBR per share until the date of election of cash as the settlement method. 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. For the year ended December 31, 2022, the Warrant Transactions (as defined in Note 11, "Debt and Other Credit Facilities", to our consolidated financial statements) impacted the calculation of diluted net income (loss) per share as the average price of our common stock exceeded the adjusted strike price of $39.63. For the year ended December 31, 2021, the Warrant Transactions did not impact diluted net income (loss) per share as the average price of our common stock during the period did not exceed the adjusted strike price of $39.76. For the year ended December 29, 2023, the diluted net income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 4.0 million related to the Convertible Debt, 10.2 million related to the Warrant Transactions and 1.4 million related to our stock options and restricted stock awards. For the year ended December 31, 2022, the diluted net income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 11.2 million related to the Warrant Transactions and 0.5 million related to our stock options and restricted stock awards. For the year ended December 31, 2021, the diluted net income (loss) per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 13.5 million related to the Convertible Debt, 13.5 million related to the Warrant Transactions and 0.7 million related to our stock options and restricted stock awards. Shares of common stock Shares in millions Shares Balance at December 31, 2021 180.0 Common stock issued 0.8 Balance at December 31, 2022 180.8 Common stock issued 0.9 Balance at December 29, 2023 181.7 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2021 40.2 $ 943 Treasury stock acquired, net of ESPP shares issued 4.1 200 Balance at December 31, 2022 44.3 1,143 Treasury stock acquired, net of ESPP shares issued 2.3 136 Balance at December 29, 2023 46.6 $ 1,279 Dividends We declared dividends totaling $73 million and $67 million in 2023 and 2022, respectively. On February 19, 2024, the Board of Directors declared a dividend of $0.15 per share, which will be paid on April 15, 2024. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Risk Management | 12 Months Ended |
Dec. 29, 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 consolidated balance sheets, approximates fair value due to the short-term maturities of these financial instruments. The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our consolidated balance sheets are provided in the following table. December 29, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 595 $ 595 $ 398 $ 398 Term Loan B Level 2 501 503 506 511 Convertible Notes and Conversion Option Level 2 — — 350 731 Senior Notes Level 2 250 231 250 220 Revolver Level 2 505 505 260 260 Derivative Liability - Warrants Level 2 33 33 — — The carrying value of the debt instruments listed above exclude debt issuance costs for the respective instrument. See Note 11 "Debt and Other Credit Facilities" for the debt issuance costs of these instruments and further discussion of our term loans, Convertibles Notes, Senior Notes and Revolver. The decrease in carrying value of the Convertible Notes and conversion option is due to the maturity and settlement of the Convertible Notes on November 1, 2023. See Note 11 "Debt and Other Credit Facilities" for additional information regarding the maturity of the Convertible Notes. See Note 22 "Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements" for information regarding the increase in the derivative liability for warrants in 2023. The following disclosures for foreign currency risk and interest rate risk includes the fair value hierarchy levels for our assets and liabilities that are measured at fair value on a recurring basis. Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet. As of December 29, 2023, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $15 million, all of which had durations of 16 days or less. We also had approximately $3 million (gross notional value) of cash flow hedges which had durations of 6 months or less. The cash flow hedges are related to the British pound sterling. The fair value of our balance sheet hedges and cash flow hedges are included in other current assets, other assets, other current liabilities and other liabilities on our consolidated balance sheets at December 29, 2023, and December 31, 2022, respectively. The fair values of these derivatives are considered Level 2 under ASC 820, Fair Value Measurement, as they are based on quoted prices directly observable in active markets. The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating income (expense) on our consolidated statements of operations. Years ended December 31, December 29, December 31, Gains (losses) dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ 2 Balance Sheet Position - Remeasurement (6) 2 Net $ (6) $ 4 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 year ended December 29, 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 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: Dollars in millions Notional Amount at December 29, 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) $ 350 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 £ 116 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value increased 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 December 29, 2023 was a $36 million net asset, of which $24 million is included in other current assets, $18 million is included in other assets and $6 million is included in other liabilities. The unrealized net gains on these interest rate swaps was $36 million and is included in AOCL as of December 29, 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 year ended December 29, 2023, the Company has derecognized $3,077 million of accounts receivables from the balance sheet under these agreements, of which certain receivables totaling $3,022 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 income (expense) on the consolidated statements of operations. Activity for third-party financial institutions consisted of the following: Years ended Dollars in millions December 29, 2023 December 31, 2022 Beginning balance $ 134 $ 481 Sale of receivables 3,077 2,883 Settlement of receivables (3,076) (3,228) Cash collected, not yet remitted — (2) Outstanding balances sold to financial institutions $ 135 $ 134 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 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%. The additional payment in 2023 increased the carrying value of our investment to $128 million at December 29, 2023. The carrying value of our investment was $83 million at December 31, 2022. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 29, 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 will be effective for our 2024 fiscal year and for interim periods starting in our first quarter of fiscal year 2025. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. |
Cash Election and Repurchase of
Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements | Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements Cash Election for Convertible Notes. Upon issuance of the Convertible Notes, we had the right to elect to settle the Convertible Notes in cash, shares of our common stock or a combination of cash and shares of our common stock. As a result, our conversion option qualified for the equity scope exception under ASC 815 Derivatives and Hedging (“ASC 815”) that does not require the conversion option to be accounted for as a separate instrument. The Note Hedge Transactions and Warrant Transactions also qualified for the equity scope exception under ASC 815. 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 and Note Hedge. Upon that election, both instruments no longer qualified for the equity scope exception under ASC 815. The conversion option of the Convertible Notes was deemed to be embedded, which required bifurcation from the host contract, and the Note Hedge was reclassified to a freestanding derivative instrument. Upon bifurcation of the Convertible Notes' conversion option, we recorded an embedded derivative liability at fair value of $454 million, a debt discount of $350 million reducing the carrying value of our Convertible Notes to zero, and a $104 million loss. Upon reclassification of the Note Hedge, we recorded a derivative asset of $454 million at fair value, with an offset of $454 million to PIC. Prior to maturity and settlement on November 1, 2023, any changes related to the fair value of the derivative asset were directly offset by the change in fair value of the embedded derivative liability. Upon maturity and settlement of the Convertible Notes and Note Hedge on November 1, 2023, the derivative asset and embedded derivative liability were removed from our consolidated balance sheet. We recorded $282 million of accretion during the year ended December 29, 2023, and accelerated the accretion of $69 million as a loss on debt extinguishment associated with the repurchase of $100 million of Convertible Senior Notes in the second quarter of 2023. At December 29, 2023, all accretion related to the Convertible Notes has been recognized. Convertible Senior Notes Repurchase and Unwind Agreements. On June 1, 2023, we entered into privately negotiated transactions to repurchase $100 million in principal amount of the outstanding Convertible Notes (the “Convertible Notes repurchase”), using funds borrowed under our Revolver to pay the purchase price. Concurrent with the Convertible Notes repurchase, we entered into agreements with the option counterparties to terminate the corresponding portions of the Note Hedge Transactions and Warrant Transactions (collectively, the "June Unwind Agreements"). We paid $250 million related to the Convertible Notes repurchase and received a net amount of $49 million related to the Unwind Agreements. The portion of warrants settled in cash during the second quarter of 2023 no longer qualified for the equity scope exception under ASC 815 upon execution of the June Unwind Agreements on June 1, 2023. This resulted in the recognition of a derivative liability of $89 million, with an offset of $89 million to PIC. Upon settlement of the June Unwind Agreements, during the second quarter of 2023 we recognized $12 million in loss due to the change in fair value of the derivative liability between the initial recognition date and settlement date. This loss was recorded within "Charges associated with Convertible Notes" on our consolidated statement of operations. The Convertible Notes repurchase was accounted for as a debt extinguishment under ASC 470 Debt (“ASC 470”). ASC 470 requires the settlement consideration of $250 million to be allocated to both the carrying value of the debt instrument and the embedded derivative liability related to the conversion option. We recognized a loss on extinguishment of debt of $70 million due to the difference between the consideration paid of $250 million and the carrying value of the conversion option’s derivative liability and Convertible Notes, net of debt discount on the date of repurchase. Warrant Unwind Agreements in November 2023. On November 7, 2023, we entered into agreements with the option counterparties to settle the remaining warrants in cash (collectively, the "November Unwind Agreements"). The warrants settled as part of the November Unwind Agreements no longer qualified for the equity scope exception under ASC 815 upon execution of the November Unwind Agreements on November 7, 2023. This resulted in the recognition of a derivative liability of $123 million, with an offset of $123 million to PIC. Upon settlement of the November Unwind Agreements, we recognized $26 million in loss due to the change in fair value of the derivative liability between the initial recognition date and settlement date for each counterparty. This loss was recorded within "Charges associated with Convertible Notes" on our consolidated statement of operations. The Company paid $116 million in December 2023 and $33 million in January 2024 related to the November Unwind Agreements. At December 29, 2023, the derivative liability recorded within Other Current Liabilities See below for summary of items related to the cash election and repurchase of Convertible Notes and Note Hedge Transactions on our Consolidated Statement of Operations for the year ended December 29, 2023. Year Ended Dollars in millions December 29, 2023 Consolidated Statement of Operations Loss on derivative bifurcation $ 104 Loss on debt extinguishment 70 Loss on settlement of warrants 38 Accretion of Convertible Notes debt discount 282 Charges associated with Convertible Notes $ 494 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (loss) attributable to KBR | $ (265) | $ 190 | $ 27 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of 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 29, 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. Due to this change in fiscal year, our fiscal year ended on December 29 in 2023 as compared to December 31 in 2022. The years ended December 29, 2023 and December 31, 2022 contained 363 days and 365 days, respectively. 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. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring estimates and assumptions by our management include the following: • project revenues, costs and profits on our contracts • award fees, costs and profits on government services contracts • client claims and recoveries of costs from subcontractors, vendors and others • provisions for income taxes and related valuation allowances and tax uncertainties • evaluation of goodwill for impairment • evaluation of intangibles and long-lived assets for impairment • evaluation of equity method investments for impairment • valuation of pension obligations and pension assets • accruals for estimated liabilities, including litigation accruals |
Cash and Equivalents | Cash and Equivalents |
Revenue Recognition | Revenue Recognition We, and our equity method investments, recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied, which occurs with the transfer of control of the goods or services to the customer. Contract Combination To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract. For a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Contract Types The Company performs work under contracts that broadly consists of fixed-price, cost-reimbursable, time-and-materials or a combination of the three. Fixed-price contracts also include unit-rate contracts. Under fixed-price contracts, we perform a defined scope of work for a specified fee to cover all costs and any profit element. Fixed-price contracts entail risk to us because they require us to predetermine the work to be performed, the project execution schedule and all the costs associated with the scope of work. Unit-rate contracts are essentially fixed-price contracts with the only variable being units of work to be performed. Although fixed-price contracts involve greater risk than cost-reimbursable contracts, they also are potentially more profitable because the owner/customer pays a premium to transfer project risks to us. Time-and-materials contracts typically provide for negotiated fixed hourly rates for specified categories of direct labor. The rates cover the cost of direct labor, indirect expense and fee. These contracts can also allow for reimbursement of cost of material plus a fee, if applicable. In U.S. government contracting, this type of contract is generally used when there is uncertainty of the extent or duration of the work to be performed by the contractor at the time of contract award or it is not possible to anticipate costs with any reasonable degree of confidence. With respect to time-and-materials contracts, we assume the price risk because our costs of performance may exceed negotiated hourly rates. In commercial and non-U.S. government contracting, this contract type is generally used for defined and non-defined scope contracts where there is a higher degree of uncertainty and risks as to the scope of work. These types of contracts may also provide for a guaranteed maximum price where the total cost plus the fee cannot exceed an agreed upon guaranteed maximum price or not-to-exceed provisions. Under cost-reimbursable contracts, the price is generally variable based upon our actual allowable costs incurred for materials, equipment, reimbursable labor hours, overhead and G&A expenses. Profit on cost-reimbursable contracts may be in the form of a fixed fee or a mark-up applied to costs incurred, or a combination of the two. The fee may also be an incentive fee based on performance indicators, milestones or targets and can be based on customer discretion or in form of an award fee determined based on customer evaluation of the Company's performance against contractual criteria. Cost-reimbursable contracts may also provide for a guaranteed maximum price where the total fee plus the total cost cannot exceed an agreed upon guaranteed maximum price. Cost-reimbursable contracts are generally less risky because the owner/customer retains many of the project risks, however it requires us to use our best efforts to accomplish the scope of the work within a specified time and budget. Cost-reimbursable contracts with the U.S. government are subject to the FAR and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers, including the types of costs that are allowable, is based on specific negotiations with each customer. See Note 3 to our consolidated financial statements for further discussion of our revenue by contract type. Contract Costs Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. We recognize revenue, but not profit, on certain uninstalled materials that are not specifically produced or fabricated for a project, which revenue is recognized up to cost. Revenue for uninstalled materials is recognized when the cost is incurred and control is transferred to the customer, which revenue is recognized using the cost-to-cost method. Project mobilization costs incurred are capitalized as deferred assets and amortized on a straight-line basis over the anticipated term of the contract or a specified period of performance consistent with the transfer of control of the performance obligation to the client. These costs incurred may be to transition the services, employees and equipment to or from the customer, a prior contract or prior contractor. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties. We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations. Variable Consideration In addition to the variable contract price under cost-reimbursable contracts, it is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance and any other information (historical, current or forecasted) that is reasonably available to us. Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred. Contract Estimates and Modifications Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method. We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. See Note 6 for changes in all other project-related estimates. Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications prospectively when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification. Contract Assets and Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is used, and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue. Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Our selling, general and administrative expenses represent expenses that are not associated with the execution of the contracts. Selling, general and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other corporate functions. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in cost of revenues) or selling, general and administrative expenses in the same manner as such costs are defined in the Company’s disclosure statements under CAS. |
Accounts Receivable | Accounts Receivable Accounts receivable include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. Amounts billed and unbilled are recognized at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Unbilled amounts also include rate variances that are billable upon negotiation of final indirect rates with the DCAA. We establish an allowance for credit losses based on the assessment of our clients' ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due. Additionally, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. The receivables sold under the agreements do not allow for recourse for any credit risk related to our customers if such receivables are not collected by the third-party financial institutions. The Company accounts for these receivable transfers as a sale under Transfers and Servicing (Topic 860) |
Property, Plant and Equipment | Property, Plant and Equipment |
Business Combinations | Business Combinations We account for business combinations using the acquisition method of accounting in accordance with Business Combinations (Topic 805) , which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with Intangibles - Goodwill and Other (Topic 350) , goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required. We also have the option to proceed directly to the quantitative test. Under the quantitative impairment test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge equal to the excess would be recognized, up to a maximum amount of goodwill allocated to that reporting unit. We can resume the qualitative assessment in any subsequent period for any reporting unit. For 2023, 2022 and 2021, management performed a qualitative impairment assessment of our reporting units, of which there were no indications that it was more likely than not that the fair value of our reporting units were less than their respective carrying values. As such, a quantitative goodwill test was not required, and no goodwill impairment was recognized in 2023, 2022 and 2021. See Note 8 to our consolidated financial statements for reported goodwill in each of our segments. |
Equity Method Investments | Equity Method Investments We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions. Equity in earnings (losses) of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated affiliate taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings. We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 9 to our consolidated financial statements for our discussion on equity method investments. |
Other Investments | Other Investments |
Joint Ventures and VIEs | Joint Ventures and VIEs The majority of our joint ventures are VIEs. We account for VIEs in accordance with Consolidation (Topic 810) , which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting. We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations. We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810 - Consolidation. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 9 to our consolidated financial statements for our discussion on variable interest entities. Occasionally, we may determine that we are the primary beneficiary as a result of a reconsideration event associated with an existing unconsolidated VIE. We account for the change in control under the acquisition method of accounting for business combinations in accordance with Business Combinations (Topic 805). |
Pensions | Pensions We account for our defined benefit pension plans in accordance with ASC 715 - Compensation - Retirement Benefits, which requires an employer to: • recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan; • recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur; • measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and • disclose additional information. Our pension benefit obligations and expenses are calculated using actuarial models and methods. The more critical assumption and estimate used in the actuarial calculations is the discount rate for determining the current value of benefit obligations. Other assumptions and estimates used in determining benefit obligations and plan expenses include expected rate of return on plan assets, inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (typically annually) and are updated accordingly to reflect our actual experience and expectations. The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity funds and securities, fixed income funds and securities, hedge funds, real estate and other funds. As we have both domestic and international plans, these assumptions differ based on varying factors specific to each particular country, participant demographics or economic environment. Unrecognized actuarial gains and losses are recognized using the corridor method over a period of approximately 22 years, which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense. |
Income Taxes | Income Taxes We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. See Note 12 to our consolidated financial statements for our discussion on income taxes. Income taxes are accounted for under the asset and liability method. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, income available from carryback years, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results. We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year. We recognize the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records potential interest and penalties related to unrecognized tax benefits in income tax expense. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome. |
Derivative Instruments | Derivative Instruments We enter into derivative financial transactions to hedge existing or forecasted risk to changing foreign currency exchange rates and interest rate risk on variable rate debt. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives at fair value on the balance sheet. Derivatives that are not designated as hedges in accordance with Derivatives and Hedging (Topic 815) , are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a cash flow hedge, all changes in the fair value of derivatives are recognized in other comprehensive income (loss) and are subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. See Note 20 to our consolidated financial statements for our discussion on derivative instruments. Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within other non-operating income (expense) on our consolidated statements of operations. Realized gains or losses on derivatives used to manage interest rate risk are included in interest expense in our consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal. Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost. We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues (which are generally not collateralized). We generated significant revenues from transactions with the U.S. government and U.K. government within our GS business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented. |
Noncontrolling interest | Noncontrolling interest Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements. |
Foreign currency | Foreign currency Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long-term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in accumulated other comprehensive loss on our consolidated balance sheets. Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in accumulated other comprehensive loss on our consolidated balance sheets. |
Share-based compensation | Share-based compensation |
Commitments and Contingencies | Commitments and Contingencies We record liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Impact of Adoption of New Accounting Standards and Recent Accounting Pronouncements | Impact of Adoption of New Accounting Standards 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. The Financial Conduct Authority continued to publish some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) through June 30, 2023. As of December 29, 2023, all of our debt instruments that referenced LIBOR base rates have been amended to utilize SOFR or SOFR-based reference borrowing rates. We have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which now governs our derivatives following 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, helped limit the accounting impact from contract modifications, including hedging relationships, due to the transition from LIBOR to alternative reference rates that were completed by December 31, 2022. This deadline was extended to December 31, 2024 pursuant to ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . 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 consolidated financial statements. Additionally, the transition of our Senior Credit Facility from LIBOR to an alternate reference rate, did not have a significant impact to our financial results, financial position or cash flows as we elected to apply the optional expedients. New accounting pronouncements requiring implementation in future periods are discussed below. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 will be effective for our 2024 fiscal year and for interim periods starting in our first quarter of fiscal year 2025. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Summarizes of Contracts with U.S. and U.K. Governmental Agencies | The following table summarizes our revenues and accounts receivable for contracts with U.S. and U.K. government agencies for which we are the prime contractor, as well as for contracts in which we are a subcontractor and the ultimate customer is a U.S. or U.K. government agency, respectively. Revenues and percentage of consolidated revenues from major customers: Year ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 U.S. government $ 4,000 58 % $ 4,034 61 % $ 5,122 70 % U.K. government $ 634 9 % $ 584 9 % $ 508 7 % Accounts receivable and percentage of consolidated accounts receivable from major customers: December 29, December 31, Dollars in millions 2023 2022 U.S. government $ 480 49 % $ 501 53 % U.K. government $ 71 7 % $ 58 6 % |
Schedule of Other Current Assets | The components of other current assets on our consolidated balance sheets as of December 29, 2023 and December 31, 2022 are presented below: December 29, December 31, Dollars in millions 2023 2022 Prepaid expenses $ 83 $ 67 Value-added tax receivable 33 24 Advances to subcontractors 7 18 Other miscellaneous assets 66 55 Total other current assets $ 189 $ 164 |
Components of Other Current Liabilities | The components of other current liabilities on our consolidated balance sheets as of December 29, 2023 and December 31, 2022 are presented below: December 29, December 31, Dollars in millions 2023 2022 Value-added tax payable $ 41 $ 32 Operating lease liabilities 48 48 Dividend payable 18 17 Derivative Liability - Warrants 33 — Other miscellaneous liabilities 109 123 Total other current liabilities $ 249 $ 220 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Reportable Segment | The following table presents operations and balance sheet information by reportable segment. Assets specific to business segments include receivables, contract assets, other current assets, claims and accounts receivable, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other." Government Solutions Sustainable Technology Solutions Other Total Dollars in millions December 29, 2023 Revenue $ 5,353 $ 1,603 $ — $ 6,956 Equity in earnings (losses) of unconsolidated affiliates 42 72 — 114 Operating income (loss) 285 324 (161) 448 Depreciation and amortization 96 19 26 141 Total Assets 3,737 996 832 5,565 December 31, 2022 Revenue $ 5,320 $ 1,244 $ — $ 6,564 Equity in earnings (losses) of unconsolidated affiliates 27 (107) — (80) Operating income (loss) 441 47 (145) 343 Depreciation and amortization 95 14 28 137 Total Assets 3,735 915 916 5,566 December 31, 2021 Revenue $ 6,149 $ 1,190 $ — $ 7,339 Equity in earnings (losses) of unconsolidated affiliates 29 (199) — (170) Operating income (loss) 414 (30) (153) 231 Depreciation and amortization 108 16 22 146 |
Schedule of Selected Geographic Information | Long-lived assets by country are determined based on the location of tangible assets. December 29, December 31, Dollars in millions 2023 2022 Property, plant & equipment, net: United States $ 138 $ 103 United Kingdom 39 41 Other 62 38 Total $ 239 $ 182 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by business unit and reportable segment was as follows: Year Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Government Solutions Science & Space $ 1,127 $ 1,055 $ 1,018 Defense & Intel 1,575 1,509 1,475 Readiness & Sustainment 1,495 1,639 2,644 International 1,156 1,117 1,012 Total Government Solutions 5,353 5,320 6,149 Sustainable Technology Solutions 1,603 1,244 1,190 Total revenue $ 6,956 $ 6,564 $ 7,339 Revenue by geographic destination was as follows: Year Ended December 29, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 3,096 $ 521 $ 3,617 Europe 1,569 247 1,816 Middle East 140 388 528 Australia 403 93 496 Africa 70 106 176 Asia 17 152 169 Other countries 58 96 154 Total revenue $ 5,353 $ 1,603 $ 6,956 Year Ended December 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 3,264 $ 469 $ 3,733 Europe 1,351 216 1,567 Middle East 157 249 406 Australia 392 45 437 Africa 86 63 149 Asia 14 154 168 Other countries 56 48 104 Total revenue $ 5,320 $ 1,244 $ 6,564 Year Ended December 31, 2021 Dollars in millions Government Solutions Sustainable Technology Solutions Total United States $ 4,493 $ 430 $ 4,923 Europe 762 223 985 Middle East 393 197 590 Australia 351 16 367 Africa 87 92 179 Asia 7 192 199 Other countries 56 40 96 Total revenue $ 6,149 $ 1,190 $ 7,339 Year Ended December 29, 2023 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost-Reimbursable $ 3,287 $ — $ 3,287 Time-and-Materials 1,023 989 $ 2,012 Fixed-Price 1,043 614 $ 1,657 Total revenue $ 5,353 $ 1,603 $ 6,956 Year Ended December 31, 2022 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost-Reimbursable $ 3,293 $ — $ 3,293 Time-and-Materials 973 770 1,743 Fixed-Price 1,054 474 1,528 Total revenue $ 5,320 $ 1,244 $ 6,564 Year Ended December 31, 2021 Dollars in millions Government Solutions Sustainable Technology Solutions Total Cost Reimbursable $ 4,175 $ — $ 4,175 Time-and-Materials 903 739 1,642 Fixed Price 1,071 451 1,522 Total revenue $ 6,149 $ 1,190 $ 7,339 |
Schedule of Accounts Receivable | December 29, December 31, Dollars in millions 2023 2022 Unbilled $ 519 $ 486 Trade & other 462 456 Accounts receivable, net $ 981 $ 942 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of our cash and cash equivalents balance are as follows: December 29, 2023 Dollars in millions International (a) Domestic (b) Total Operating cash and cash equivalents $ 122 $ 36 $ 158 Short-term investments (c) 6 8 14 Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d) 111 21 132 Total $ 239 $ 65 $ 304 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 (d) 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. (d) |
Unapproved Change Orders and _2
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Tables) | 12 Months Ended |
Dec. 29, 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 that has been recorded to date 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 26 (114) Approved change orders — (271) Foreign currency impact — 7 Amounts included in project-related estimates-at-completion at end of fiscal year $ 74 $ 48 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The components of our property, plant and equipment balance are as follows: Estimated December 29, December 31, Dollars in millions 2023 2022 Land N/A $ 5 $ 4 Buildings and property improvements 1-35 151 120 Equipment and other 1-25 541 475 Total 697 599 Less accumulated depreciation (458) (417) Net property, plant and equipment $ 239 $ 182 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segments | The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the years ended December 29, 2023 and December 31, 2022 were as follows: Dollars in millions Government Solutions Sustainable Technology Solutions Total Balance as of January 1, 2022 $ 1,890 $ 170 $ 2,060 Goodwill acquired during the period (Note 4) 68 — 68 Foreign currency translation (40) (1) (41) Balance as of January 1, 2023 $ 1,918 $ 169 $ 2,087 Foreign currency translation 22 — 22 Balance as of December 29, 2023 $ 1,940 $ 169 $ 2,109 |
Summary of Cost and Accumulated Amortization of Intangible Assets | The cost and accumulated amortization of our intangible assets were as follows: Dollars in millions December 29, 2023 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 12 553 (184) 369 Developed technologies 17 82 (43) 39 Contract backlog 17 291 (140) 151 Other 13 24 (15) 9 Total intangible assets $ 1,000 $ (382) $ 618 December 31, 2022 Weighted Average Remaining Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Trademarks/trade names Indefinite $ 50 $ — $ 50 Customer relationships 13 548 (153) 395 Developed technologies 19 78 (41) 37 Contract backlog 18 278 (124) 154 Other 14 23 (14) 9 Total intangible assets $ 977 $ (332) $ 645 |
Summary of Amortization Expense of Intangible Assets | Our intangibles amortization expense is presented below: Year Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Intangibles amortization expense $ 45 $ 50 $ 66 |
Summary of Expected Amortization Expense of Intangibles | Our expected intangibles amortization expense for the next five years is presented below: Dollars in millions Expected future 2024 $ 43 2025 $ 43 2026 $ 43 2027 $ 43 2028 $ 42 Beyond 2028 $ 354 |
Equity Method Investments and_2
Equity Method Investments and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in Earnings of Unconsolidated Affiliates | The following table presents a rollforward of our equity in and advances to unconsolidated affiliates: December 29, December 31, Dollars in millions 2023 2022 Beginning balance at January 1, $ 188 $ 576 Equity in earnings (losses) of unconsolidated affiliates (a) 114 (80) Distributions of earnings of unconsolidated affiliates (b) (63) (53) Payments from unconsolidated affiliates, net (18) (14) (Return of) investments in equity method investment, net (c) (60) (198) Sale of equity method investment (d) (a) — (31) Foreign currency translation adjustments 3 (15) Other (e) 42 3 Ending balance $ 206 $ 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 consolidated statements of cash flows. (c) During the year ended December 29, 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 BRIS 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 first quarter 2022 sales. (e) During the year ended December 29, 2023, Other included the reclassification of the net liability position of $47 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, partially offset by certain tax benefits. |
Consolidated Summarized Financial Information | Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows: Balance Sheet December 29, December 31, Dollars in millions 2023 2022 Current assets $ 2,838 $ 1,576 Noncurrent assets 1,662 1,717 Total assets $ 4,500 $ 3,293 Current liabilities $ 2,493 $ 1,105 Noncurrent liabilities 1,898 1,914 Total liabilities $ 4,391 $ 3,019 Statements of Operations Years Ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Revenues $ 5,873 $ 3,175 $ 1,294 Operating income (loss) $ 264 $ (325) $ (650) Net income (loss) $ 242 $ (321) $ (698) The following summarizes the total assets and total liabilities recorded on our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. December 29, 2023 Dollars in millions Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 4 $ 2 Aspire Defence Limited $ 91 $ 7 JKC joint venture (Ichthys LNG project) $ — $ 48 Plaquemines LNG project $ 82 $ 72 Dollars in millions December 31, 2022 Total Assets Total Liabilities Affinity joint venture (U.K. MFTS project) $ 9 $ 3 Aspire Defence Limited $ 87 $ 7 JKC joint venture (Ichthys LNG project) $ 15 $ — Plaquemines LNG project $ 23 $ 36 |
Schedule of Services Provided to Unconsolidated JV's | Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures and undistributed earnings for the years ended December 29, 2023 and December 31, 2022 are as follows: December 29, December 31, Dollars in millions 2023 2022 Accounts receivable, net of allowance for doubtful accounts (a) $ 103 $ 56 Other current assets $ — $ 12 Contract liabilities (a) $ 89 $ 39 (a) Accounts receivable and contract liabilities primarily related to joint ventures within our STS business segment. |
Summary of Significant VIEs | The following is a summary of the significant VIEs where we are the primary beneficiary: Dollars in millions December 29, 2023 Total Assets Total Liabilities Fasttrax Limited (Fasttrax project) $ 7 $ 3 Aspire Defence subcontracting entities (Aspire Defence project) $ 394 $ 206 HomeSafe $ 72 $ 61 Dollars in millions December 31, 2022 Total Assets Total Liabilities Fasttrax Limited (Fasttrax project) $ 14 $ 5 Aspire Defence subcontracting entities (Aspire Defence project) $ 385 $ 196 HomeSafe $ 31 $ 19 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Projected Benefit Obligations | Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables. Overfunded Underfunded United States Int’l United States Int’l Dollars in millions 2023 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ — $ 17 $ 59 $ 1,208 Service cost — 1 — — Interest cost — 1 3 60 Foreign currency exchange rate changes — 1 — 67 Actuarial (gain) loss (1) — (1) 2 15 Other — — — — Benefits paid — (1) (6) (63) Projected benefit obligations at end of period $ — $ 18 $ 58 $ 1,287 Change in plan assets: Fair value of plan assets at beginning of period $ — $ 16 $ 52 $ 1,251 Actual return on plan assets — 1 7 12 Employer contributions — 1 — 8 Foreign currency exchange rate changes — 1 — 70 Benefits paid — (1) (5) (64) Other — — (1) — Fair value of plan assets at end of period $ — $ 18 $ 53 $ 1,277 Funded status $ — $ — $ (5) $ (10) (1) Actuarial (gains) losses primarily driven by change in discount rates. Overfunded Underfunded United States Int’l United States Int’l Dollars in millions 2022 Change in projected benefit obligations: Projected benefit obligations at beginning of period $ — $ 2,066 $ 74 $ 35 Service cost — 1 — 1 Interest cost — 34 2 1 Foreign currency exchange rate changes — (220) — (4) Actuarial gain (1) — (614) (12) (12) Other — (1) — — Benefits paid — (61) (5) (1) Projected benefit obligations at end of period $ — $ 1,205 $ 59 $ 20 Change in plan assets: Fair value of plan assets at beginning of period $ — $ 1,992 $ 66 $ 31 Actual return on plan assets — (539) (9) (12) Employer contributions — 73 — 1 Foreign currency exchange rate changes — (213) — (3) Benefits paid — (61) (5) (1) Other — (1) — — Fair value of plan assets at end of period $ — $ 1,251 $ 52 $ 16 Funded status $ — $ 46 $ (7) $ (4) (1) Actuarial gains primarily driven by change in discount rates. |
Schedule of Amounts Recognized on Consolidated Balance Sheet | United States Int’l United States Int’l Dollars in millions 2023 2022 Amounts recognized on the consolidated balance sheets Pension Assets $ — $ — $ — $ 46 Other Liabilities $ (5) $ (10) $ (7) $ (4) |
Components of Net Periodic Benefit Cost | Net periodic pension cost for our defined benefit plans included the following components: United States Int’l United States Int’l United States Int’l Dollars in millions 2023 2022 2021 Components of net periodic benefit cost Service cost $ — $ 1 $ — $ 2 $ — $ 3 Interest cost 3 61 2 35 2 33 Expected return on plan assets (3) (102) (3) (83) (3) (87) Prior service cost amortization — 1 — 1 — 1 Recognized actuarial loss 1 — 1 23 2 31 Net periodic (benefit) cost $ 1 $ (39) $ — $ (22) $ 1 $ (19) |
Schedule of Accumulated Other Comprehensive Loss | The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 29, 2023 and December 31, 2022, net of tax were as follows: United States Int’l United States Int’l Dollars in millions 2023 2022 Unrecognized actuarial loss, net of tax of $7 and $221, $8 and $195, respectively $ 15 $ 629 $ 16 $ 552 Total in accumulated other comprehensive loss $ 15 $ 629 $ 16 $ 552 |
Schedule of Weighted-Average Assumptions | The weighted-average assumptions used to determine net periodic benefit cost were as follows: United States Int'l United States Int'l United States Int'l 2023 2022 2021 Discount rate 4.91 % 5.00 % 2.45 % 1.80 % 2.00 % 1.40 % Expected return on plan assets 6.63 % 5.92 % 5.19 % 4.73 % 5.19 % 4.67 % The weighted-average assumptions used to determine benefit obligations at the measurement date were as follows: United States Int'l United States Int'l 2023 2022 Discount rate 4.70 % 4.79 % 4.91 % 5.00 % |
Schedule of Allocation of Plan Assets | The target asset allocation for our U.S. and International plans for 2024 is as follows: 2024 Targeted United States Int'l Equity funds and securities 52 % 14 % Fixed income funds and securities 39 % 67 % Hedge funds — % — % Real estate funds 1 % 7 % Other 8 % 12 % Total 100 % 100 % The range of targeted asset allocations for our International plans for 2024 and 2023, by asset class, are as follows: International Plans 2024 Targeted 2023 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 11 % 17 % 20 % 50 % Fixed income funds and securities 53 % 80 % 30 % 100 % Hedge funds — % — % — % 7 % Real estate funds 6 % 9 % — % 10 % Other 10 % 15 % — % 35 % The range of targeted asset allocations for our U.S. plans for 2024 and 2023, by asset class, are as follows: Domestic Plans 2024 Targeted 2023 Targeted Percentage Range Percentage Range Minimum Maximum Minimum Maximum Equity funds and securities 41 % 62 % 41 % 62 % Fixed income funds and securities 31 % 47 % 31 % 47 % Real estate funds 1 % 1 % 1 % 1 % Other 7 % 10 % 7 % 10 % A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below. Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 29, 2023 United States plan assets Investments measured at net asset value (a) $ 53 $ — $ — $ — Cash and equivalents — — — — Total United States plan assets $ 53 $ — $ — $ — International plan assets Equities $ 51 $ — $ — $ 51 Fixed income 597 — 597 — Real estate 1 — — 1 Cash and cash equivalents 83 83 — — Other 62 — — 62 Investments measured at net asset value (a) 501 — — — Total international plan assets $ 1,295 $ 83 $ 597 $ 114 Total plan assets at December 29, 2023 $ 1,348 $ 83 $ 597 $ 114 Fair Value Measurements at Reporting Date Dollars in millions Total Level 1 Level 2 Level 3 Asset Category at December 31, 2022 United States plan assets Investments measured at net asset value (a) $ 52 $ — $ — $ — Cash and equivalents — — — — Total United States plan assets $ 52 $ — $ — $ — International plan assets Equities $ 60 $ — $ — $ 60 Fixed income — — — — Real estate 1 — — 1 Cash and cash equivalents 31 31 — — Other 52 — — 52 Investments measured at net asset value (a) 1,123 — — — Total international plan assets $ 1,267 $ 31 $ — $ 113 Total plan assets at December 31, 2022 $ 1,319 $ 31 $ — $ 113 |
Schedule of Fair Value Measurement of Plan Assets | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following: Dollars in millions Total Equities Fixed Income Real Estate Other International plan assets Balance as of December 31, 2021 $ 137 $ 88 $ — $ 1 $ 48 Return on assets held at end of year 11 7 — — 4 Return on assets sold during the year 5 — — — 5 Purchases, sales and settlements, net (26) (26) — — — Foreign exchange impact (14) (9) — — (5) Balance as of December 31, 2022 $ 113 $ 60 $ — $ 1 $ 52 Return on assets held at end of year (6) (4) — — (2) Return on assets sold during the year — — — — — Purchases, sales and settlements, net 2 (8) — — 10 Foreign exchange impact 5 3 — — 2 Balance as of December 29, 2023 $ 114 $ 51 $ — $ 1 $ 62 |
Schedule of Expected Benefit Payments | Benefit payments. The following table presents the expected benefit payments over the next 10 years. Pension Benefits Dollars in millions United States Int’l 2024 $ 6 $ 65 2025 $ 5 $ 67 2026 $ 5 $ 70 2027 $ 5 $ 72 2028 $ 5 $ 74 Years 2029 - 2033 $ 22 $ 405 |
Debt and Other Credit Facilit_2
Debt and Other Credit Facilities (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our outstanding debt consisted of the following at the dates indicated: Dollars in millions December 29, 2023 December 31, 2022 Term Loan A 595 398 Term Loan B 501 506 Senior Notes 250 250 Revolver 505 260 Convertible Senior Notes (a) — 350 Unamortized debt issuance costs and discount - Convertible Senior Notes (a) — (2) Unamortized debt issuance costs - Term Loan A (8) (9) Unamortized debt issuance costs and discount - Term Loan B (8) (10) Unamortized debt issuance costs and discount - Senior Notes (3) (3) Total debt 1,832 1,740 Less: current portion 31 364 Total long-term debt, net of current portion $ 1,801 $ 1,376 (a) The settlement and maturity of the Convertible Senior Notes occurred on November 1, 2023. See "Convertible Senior Notes" section below for additional information. 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 plus 12 bps Credit Spread Adjustment |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax | The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 United States $ (465) $ 138 $ 177 Foreign: United Kingdom 133 161 56 Australia 49 (103) (199) Canada 1 — (2) Middle East 45 16 39 Africa 6 7 3 Other 65 65 72 Subtotal 299 146 (31) Total $ (166) $ 284 $ 146 |
Summary of Taxes on Financial Statements | The total income taxes included in the statements of operations and in shareholders' equity were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Provision for income taxes $ (95) $ (92) $ (111) Shareholders' equity, foreign currency translation adjustment — — (1) Shareholders' equity, pension and post-retirement benefits 25 (4) (44) Shareholders' equity, changes in fair value of derivatives 3 (11) (7) Total income taxes $ (67) $ (107) $ (163) |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Dollars in millions Current Deferred Total Year ended December 29, 2023 Federal $ — $ (3) $ (3) Foreign (65) (14) (79) State and other (17) 4 (13) Provision for income taxes $ (82) $ (13) $ (95) Year ended December 31, 2022 Federal $ (10) $ (7) $ (17) Foreign (36) (26) (62) State and other (9) (4) (13) Provision for income taxes $ (55) $ (37) $ (92) Year ended December 31, 2021 Federal $ (1) $ (28) $ (29) Foreign (49) (22) (71) State and other (14) 3 (11) Provision for income taxes $ (64) $ (47) $ (111) |
Components of Foreign Income Tax Provision | The components of our total foreign income tax provision were as follows: Years ended, December 29, December 31, December 31, Dollars in millions 2023 2022 2021 United Kingdom $ (32) $ (29) $ (22) Australia (13) (13) (23) Middle East (12) (8) (9) Other (22) (12) (17) Foreign provision for income taxes $ (79) $ (62) $ (71) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following: Years ended, December 29, December 31, December 31, 2023 2022 2021 U.S. statutory federal rate, expected (benefit) provision 21 % 21 % 21 % Increase (reduction) in tax rate from: Tax impact from foreign operations 2 % 1 % — % Noncontrolling interests and equity earnings (1) % 8 % 38 % State and local income taxes, net of federal benefit 2 % 2 % 2 % Other permanent differences, net 5 % 4 % 4 % Other non-deductible expenditures — % 2 % 1 % U.S. taxes on foreign unremitted earnings — % — % 1 % Change in federal and foreign valuation allowance (3) % (2) % (4) % Research and development credits, net of provision — % (6) % — % Release of previously reserved position (2) % — % — % U.K. statutory rate change — % 2 % 13 % Non-Deductible portion associated with legal settlement of legacy matter (11) % — % — % Non-Deductible portion of Charges associated with Convertible Notes (70) % — % — % Effective tax rate on income from operations (57) % 32 % 76 % |
Schedule of Deferred Tax Assets and Liabilities | The primary components of our deferred tax assets and liabilities were as follows: Years ended, December 29, December 31, Dollars in millions 2023 2022 Deferred tax assets: Employee compensation and benefits $ 68 $ 65 Foreign tax credit carryforwards 118 186 Loss carryforwards 77 121 Research and development and other credit carryforwards 64 49 Insurance accruals 8 9 Allowance for credit losses 1 3 Lease obligation and accrued liabilities 74 85 Contract liabilities 23 21 Capitalized research expenditures 37 18 Other 73 57 Total gross deferred tax assets 543 614 Valuation allowances (148) (217) Net deferred tax assets 395 397 Deferred tax liabilities: Right-of-use assets (31) (39) Intangible amortization (91) (96) Indefinite-lived intangible amortization (91) (82) Other (49) (59) Total gross deferred tax liabilities (262) (276) Deferred income tax (liabilities) assets, net $ 133 $ 121 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 29, 2023 was as follows: Dollars in millions Net Gross Deferred Asset (Liability) Valuation Allowance Deferred Asset (Liability), net United States $ 299 $ (116) $ 183 United Kingdom (70) (1) (71) Australia 13 — 13 Canada 21 (20) 1 Other 18 (11) 7 Total $ 281 $ (148) $ 133 |
Summary of Operating Loss Carryforwards | At December 29, 2023, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows: Dollars in millions December 29, 2023 Expiration Foreign tax credit carryforwards $ 118 2024-2029 Foreign net operating loss carryforwards $ 118 2024-2043 Foreign net operating loss carryforwards $ 24 Indefinite State net operating loss carryforwards $ 830 Various Research and development and other credit carryforwards $ 64 2024-2043 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Dollars in millions 2023 2022 2021 Balance at January 1, $ 92 $ 89 $ 96 Increases related to current year tax positions 2 8 — Increases related to prior year tax positions — 1 — Decreases related to prior year tax positions (2) (2) (4) Settlements (16) — — Lapse of statute of limitations (2) (2) (2) Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions — (2) (1) Ending Balance $ 74 $ 92 $ 89 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Leases [Abstract] | |
Schedule of Leasing Activity | The components of our operating lease costs for the years ended December 29, 2023, December 31, 2022 and December 31, 2021 were as follows: Years ended December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Operating lease cost $ 62 $ 61 $ 51 Short-term lease cost 215 369 528 Total lease cost $ 277 $ 430 $ 579 December 29, December 31, December 31, Dollars in millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 65 $ 63 $ 59 Financing cash flows from finance leases $ 11 $ 11 $ 13 Right-of-use assets obtained in exchange for new operating lease liabilities $ 60 $ 61 $ 33 Right-of-use assets obtained in exchange for new finance lease liabilities $ 11 $ 13 $ 11 Weighted-average remaining lease term-operating (in years) 6 years 7 years 6 years Weighted-average remaining lease term-finance (in years) 2 years 2 years 3 years Weighted-average discount rate-operating leases 6.2 % 6.0 % 6.3 % Weighted-average discount rate-finance leases 4.2 % 3.1 % 4.0 % |
Schedule of Lease Maturity | The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 29, 2023: Dollars in millions Operating Leases Finance Leases 2024 55 12 2025 49 7 2026 36 1 2027 31 1 2028 30 1 Thereafter 70 — Total future payments 271 22 Less imputed interest (47) (1) Present value of future lease payments 224 21 Less current portion of lease obligations (48) (11) Noncurrent portion of lease obligations $ 176 $ 10 |
Schedule of Lease Maturity | The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of December 29, 2023: Dollars in millions Operating Leases Finance Leases 2024 55 12 2025 49 7 2026 36 1 2027 31 1 2028 30 1 Thereafter 70 — Total future payments 271 22 Less imputed interest (47) (1) Present value of future lease payments 224 21 Less current portion of lease obligations (48) (11) Noncurrent portion of lease obligations $ 176 $ 10 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in AOCL, net of tax, by component Dollars in millions Accumulated foreign currency translation adjustments Accumulated pension liability adjustments Changes in fair value of derivatives Total Balance at December 31, 2021 $ (296) $ (581) $ (4) $ (881) Other comprehensive income (loss) adjustments before reclassifications (69) (6) 39 (36) Amounts reclassified from AOCL 13 19 3 35 Net other comprehensive income (loss) (56) 13 42 (1) Balance at December 31, 2022 $ (352) $ (568) $ 38 $ (882) Other comprehensive income (loss) adjustments before reclassifications 42 (77) 10 (25) Amounts reclassified from AOCL 10 1 (19) (8) Net other comprehensive income (loss) 52 (76) (9) (33) Balance at December 29, 2023 $ (300) $ (644) $ 29 $ (915) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCL, net of tax, by component Years ended Dollars in millions December 29, 2023 December 31, 2022 Affected line item on the Consolidated Statements of Operations Accumulated foreign currency adjustments Reclassification of foreign currency adjustments $ (10) $ (13) Net income attributable to noncontrolling interests and Gain (loss) on disposition of assets and investments Tax benefit — — Provision for income taxes Net accumulated foreign currency $ (10) $ (13) Accumulated pension liability adjustments Amortization of prior service cost $ (1) $ (1) See (a) below Recognized actuarial loss (1) (23) See (a) below Tax benefit 1 5 Provision for income taxes Net pension and post-retirement benefits $ (1) $ (19) Net of tax Changes in fair value for derivatives Foreign currency hedge and interest rate swap settlements $ 24 $ (4) Other non-operating income (expense) Tax benefit (5) 1 Provision for income taxes Net changes in fair value of derivatives $ 19 $ (3) Net of tax (a) This item is included in the computation of net periodic pension cost. See Note 10 to our consolidated financial statements for further discussion. |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | The table below presents information on our annual share repurchases activity under these programs: Year Ended December 29, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 2,222,293 $ 56.23 $ 125 Withhold to cover shares 240,098 54.22 13 Total 2,462,391 $ 56.03 $ 138 Year Ended December 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 4,029,686 $ 47.94 $ 193 Withhold to cover shares 199,642 48.64 10 Total 4,229,328 $ 47.97 $ 203 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2021 40.2 $ 943 Treasury stock acquired, net of ESPP shares issued 4.1 200 Balance at December 31, 2022 44.3 1,143 Treasury stock acquired, net of ESPP shares issued 2.3 136 Balance at December 29, 2023 46.6 $ 1,279 |
Share-based Compensation and _2
Share-based Compensation and Incentive Plans (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Vested and Unvested RSUs | The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during 2023 under the KBR Stock Plan. Restricted stock activity summary Number of Weighted Nonvested shares at December 31, 2022 845,126 $ 37.90 Granted 291,577 56.09 Vested (394,440) 36.33 Forfeited (61,483) 44.06 Nonvested shares at December 29, 2023 680,780 $ 46.04 |
Income (loss) per Share and C_2
Income (loss) per Share and Certain Related Information (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share, Basic and Diluted Income per Share Calculations | A summary of the basic and diluted net income (loss) per share calculations is as follows: Years ended, December 29, December 31, December 31, Shares in millions 2023 2022 2021 Net income (loss) attributable to KBR: Net Income (loss) attributable to KBR $ (265) $ 190 $ 27 Less earnings allocable to participating securities $ — $ (1) $ — Basic net income (loss) attributable to KBR $ (265) $ 189 $ 27 Reversal of Convertible Debt interest expense $ — 7 — Diluted net income (loss) attributable to KBR $ (265) $ 196 $ 27 Weighted average common shares outstanding: Basic weighted average common shares outstanding 135 139 140 Convertible Debt — 14 — Warrants — 3 — Stock options and restricted shares — — 1 Diluted weighted average common shares outstanding 135 156 141 Net income (loss) attributable to KBR per share: Basic $(1.96) $1.36 $0.19 Diluted $(1.96) $1.26 $0.19 |
Shares of Common Stock | Shares of common stock Shares in millions Shares Balance at December 31, 2021 180.0 Common stock issued 0.8 Balance at December 31, 2022 180.8 Common stock issued 0.9 Balance at December 29, 2023 181.7 |
Shares of Treasury Stock | The table below presents information on our annual share repurchases activity under these programs: Year Ended December 29, 2023 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 2,222,293 $ 56.23 $ 125 Withhold to cover shares 240,098 54.22 13 Total 2,462,391 $ 56.03 $ 138 Year Ended December 31, 2022 Number of Shares Average Price per Share Dollars in Millions Repurchases under the $500 million authorized share repurchase program 4,029,686 $ 47.94 $ 193 Withhold to cover shares 199,642 48.64 10 Total 4,229,328 $ 47.97 $ 203 Shares of treasury stock Shares and dollars in millions Shares Amount Balance at December 31, 2021 40.2 $ 943 Treasury stock acquired, net of ESPP shares issued 4.1 200 Balance at December 31, 2022 44.3 1,143 Treasury stock acquired, net of ESPP shares issued 2.3 136 Balance at December 29, 2023 46.6 $ 1,279 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 29, 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 consolidated balance sheets are provided in the following table. December 29, 2023 December 31, 2022 Dollars in millions Carrying Value Fair Value Carrying Value Fair Value Liabilities (including current maturities): Term Loan A Level 2 $ 595 $ 595 $ 398 $ 398 Term Loan B Level 2 501 503 506 511 Convertible Notes and Conversion Option Level 2 — — 350 731 Senior Notes Level 2 250 231 250 220 Revolver Level 2 505 505 260 260 Derivative Liability - Warrants Level 2 33 33 — — |
Schedule of derivatives instruments statements of financial performance and financial position, location | The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating income (expense) on our consolidated statements of operations. Years ended December 31, December 29, December 31, Gains (losses) dollars in millions 2023 2022 Balance Sheet Hedges - Fair Value $ — $ 2 Balance Sheet Position - Remeasurement (6) 2 Net $ (6) $ 4 |
Schedule of interest rate swaps | Our portfolio of interest rate swaps consists of the following: Dollars in millions Notional Amount at December 29, 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) $ 350 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 £ 116 3.81 % Term SONIA Monthly through November 2026 (a) Effective November 2023, the notional value increased to $350 million through maturity in January 2027. |
Schedule of sale of receivables activity | Activity for third-party financial institutions consisted of the following: Years ended Dollars in millions December 29, 2023 December 31, 2022 Beginning balance $ 134 $ 481 Sale of receivables 3,077 2,883 Settlement of receivables (3,076) (3,228) Cash collected, not yet remitted — (2) Outstanding balances sold to financial institutions $ 135 $ 134 |
Cash Election and Repurchase _2
Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | See below for summary of items related to the cash election and repurchase of Convertible Notes and Note Hedge Transactions on our Consolidated Statement of Operations for the year ended December 29, 2023. Year Ended Dollars in millions December 29, 2023 Consolidated Statement of Operations Loss on derivative bifurcation $ 104 Loss on debt extinguishment 70 Loss on settlement of warrants 38 Accretion of Convertible Notes debt discount 282 Charges associated with Convertible Notes $ 494 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Intangible assets | $ 618,000,000 | $ 645,000,000 | |
Period in years that unrecognized actuarial net gains (losses) are being recognized | 22 years | ||
Period of recognition (no greater than) | 3 years | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets useful lives | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets useful lives | 25 years |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Revenue and Receivables from Major Customers) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Accounts receivable, net | $ 981 | $ 942 | |
U.S. government | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 4,000 | $ 4,034 | $ 5,122 |
Concentration risk, percentage | 58% | 61% | 70% |
U.S. government | Accounts Receivable | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 49% | 53% | |
Accounts receivable, net | $ 480 | $ 501 | |
U.K. government | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 634 | $ 584 | $ 508 |
Concentration risk, percentage | 9% | 9% | 7% |
U.K. government | Accounts Receivable | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 7% | 6% | |
Accounts receivable, net | $ 71 | $ 58 |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 83 | $ 67 |
Value-added tax receivable | 33 | 24 |
Advances to subcontractors | 7 | 18 |
Other miscellaneous assets | 66 | 55 |
Total other current assets | $ 189 | $ 164 |
Significant Accounting Polici_7
Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Value-added tax payable | $ 41 | $ 32 |
Operating lease liabilities | 48 | 48 |
Dividend payable | 18 | 17 |
Derivative Liability - Warrants | 33 | 0 |
Other miscellaneous liabilities | 109 | 123 |
Total other current liabilities | $ 249 | $ 220 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total other current liabilities | Total other current liabilities |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 29, 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 | 80 |
Number of primary verticals | vertical | 4 |
Business Segment Information (S
Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 6,956 | $ 6,564 | $ 7,339 |
Equity in earnings (losses) of unconsolidated affiliates | 114 | (80) | (170) |
Operating income (loss) | 448 | 343 | 231 |
Depreciation and amortization | 141 | 137 | 146 |
Total Assets | 5,565 | 5,566 | |
Government Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,353 | 5,320 | 6,149 |
Equity in earnings (losses) of unconsolidated affiliates | 42 | 27 | 29 |
Operating income (loss) | 285 | 441 | 414 |
Depreciation and amortization | 96 | 95 | 108 |
Total Assets | 3,737 | 3,735 | |
Sustainable Technology Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,603 | 1,244 | 1,190 |
Equity in earnings (losses) of unconsolidated affiliates | 72 | (107) | (199) |
Operating income (loss) | 324 | 47 | (30) |
Depreciation and amortization | 19 | 14 | 16 |
Total Assets | 996 | 915 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated affiliates | 0 | 0 | 0 |
Operating income (loss) | (161) | (145) | (153) |
Depreciation and amortization | 26 | 28 | $ 22 |
Total Assets | $ 832 | $ 916 |
Business Segment Information _2
Business Segment Information (Schedule of Selected Geographic Information) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property, plant & equipment, net | $ 239 | $ 182 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant & equipment, net | 138 | 103 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Property, plant & equipment, net | 39 | 41 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant & equipment, net | $ 62 | $ 38 |
Revenue (Revenue by Geographic
Revenue (Revenue by Geographic Destination) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6,956 | $ 6,564 | $ 7,339 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,617 | 3,733 | 4,923 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,816 | 1,567 | 985 |
Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 528 | 406 | 590 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 496 | 437 | 367 |
Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 176 | 149 | 179 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 169 | 168 | 199 |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 154 | 104 | 96 |
Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,353 | 5,320 | 6,149 |
Government Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,096 | 3,264 | 4,493 |
Government Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,569 | 1,351 | 762 |
Government Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 140 | 157 | 393 |
Government Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 403 | 392 | 351 |
Government Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 70 | 86 | 87 |
Government Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17 | 14 | 7 |
Government Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 58 | 56 | 56 |
Sustainable Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,603 | 1,244 | 1,190 |
Sustainable Technology Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 521 | 469 | 430 |
Sustainable Technology Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 247 | 216 | 223 |
Sustainable Technology Solutions | Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 388 | 249 | 197 |
Sustainable Technology Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 93 | 45 | 16 |
Sustainable Technology Solutions | Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 106 | 63 | 92 |
Sustainable Technology Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 152 | 154 | 192 |
Sustainable Technology Solutions | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 96 | 48 | 40 |
Science & Space | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,127 | 1,055 | 1,018 |
Defense & Intel | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,575 | 1,509 | 1,475 |
Readiness & Sustainment | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,495 | 1,639 | 2,644 |
International | Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,156 | $ 1,117 | $ 1,012 |
Revenue (Revenue by Contract Ty
Revenue (Revenue by Contract Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6,956 | $ 6,564 | $ 7,339 |
Cost-Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,287 | 3,293 | 4,175 |
Time-and-Materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,012 | 1,743 | 1,642 |
Fixed-Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,657 | 1,528 | 1,522 |
Government Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,353 | 5,320 | 6,149 |
Government Solutions | Cost-Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,287 | 3,293 | 4,175 |
Government Solutions | Time-and-Materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,023 | 973 | 903 |
Government Solutions | Fixed-Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,043 | 1,054 | 1,071 |
Sustainable Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,603 | 1,244 | 1,190 |
Sustainable Technology Solutions | Cost-Reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Sustainable Technology Solutions | Time-and-Materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 989 | 770 | 739 |
Sustainable Technology Solutions | Fixed-Price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 614 | $ 474 | $ 451 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from performance obligations | $ 15 | $ 49 | $ 19 |
Contract assets | 177 | 252 | |
Contract liabilities | 359 | $ 275 | |
Contract liability, revenue recognized | $ 202 |
Revenue (Performance Obligation
Revenue (Performance Obligation) (Details) $ in Billions | Dec. 29, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 12.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 34% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-28 | |
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) | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-12-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected to be satisfied, percentage | 27% |
Revenue, remaining performance obligation, expected timing of satisfaction (year) |
Revenue (Accounts Receivable) (
Revenue (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | $ 981 | $ 942 |
Unbilled | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | 519 | 486 |
Trade & other | ||
Revenue from External Customer [Line Items] | ||
Accounts receivable, net | $ 462 | $ 456 |
Acquisitions (VIMA Group) (Deta
Acquisitions (VIMA Group) (Details) - USD ($) | 12 Months Ended | |||
Aug. 02, 2022 | Dec. 31, 2022 | Dec. 29, 2023 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,087,000,000 | $ 2,109,000,000 | $ 2,060,000,000 | |
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 | Dec. 29, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 304 | $ 389 |
Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 158 | 276 |
Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 14 | 6 |
Short-term investments | Aspire Defence Limited | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 83 | 46 |
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 132 | 107 |
International | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 239 | 354 |
International | Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 122 | 251 |
International | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 6 | 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 | 111 | 99 |
Domestic | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 65 | 35 |
Domestic | Operating cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 36 | 25 |
Domestic | Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 8 | 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 | $ 21 | $ 8 |
Unapproved Change Orders and _3
Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors (Schedule of Unapproved Change Orders and Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 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 | 26 | (114) |
Approved change orders | 0 | (271) |
Foreign currency impact | 0 | 7 |
Amounts included in project-related estimates-at-completion at end of fiscal year | $ 74 | $ 48 |
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 | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | $ 114 | $ (80) | $ (170) |
(Unfavorable) Favorable change in gross profit | 977 | 828 | 806 |
Loss (gain) on disposition of assets | 7 | (19) | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated foreign currency adjustments | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Loss (gain) on disposition of assets | 10 | 13 | |
Sustainable Technology Solutions | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | 72 | (107) | (199) |
Government Solutions | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | 42 | 27 | $ 29 |
Government Solutions | Historical Government Solutions Acquisition | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | (10) | ||
Ichthys LNG Project | Sustainable Technology Solutions | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
Equity in earnings (losses) of unconsolidated affiliates | (137) | ||
EPC Project | Sustainable Technology Solutions | |||
Increases in Unapproved Change Orders and Claims [Line Items] | |||
(Unfavorable) Favorable change in gross profit | 16 | ||
Severance and asset impairment costs | $ 6 | ||
Loss on disposition of assets and investments | $ 7 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 697 | $ 599 | |
Less accumulated depreciation | (458) | (417) | |
Net property, plant and equipment | 239 | 182 | |
Depreciation | 50 | 40 | $ 42 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 5 | 4 | |
Buildings and property improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 151 | 120 | |
Buildings and property improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Buildings and property improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 35 years | ||
Equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 541 | 475 | |
Finance leases | $ 48 | $ 40 | |
Equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 1 year | ||
Equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
PPE, useful life (in years) | 25 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Summary of Goodwill by Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance, Beginning of period | $ 2,087 | $ 2,060 |
Goodwill acquired during the period | 68 | |
Foreign currency translation | 22 | (41) |
Balance, End of period | 2,109 | 2,087 |
Government Solutions | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 1,918 | 1,890 |
Goodwill acquired during the period | 68 | |
Foreign currency translation | 22 | (40) |
Balance, End of period | 1,940 | 1,918 |
Sustainable Technology Solutions | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of period | 169 | 170 |
Goodwill acquired during the period | 0 | |
Foreign currency translation | 0 | (1) |
Balance, End of period | $ 169 | $ 169 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Cost and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 1,000 | $ 977 |
Accumulated Amortization | (382) | (332) |
Intangible Assets, Net | $ 618 | $ 645 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 12 years | 13 years |
Intangible Assets, Gross | $ 553 | $ 548 |
Accumulated Amortization | (184) | (153) |
Intangible Assets, Net | $ 369 | $ 395 |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 17 years | 19 years |
Intangible Assets, Gross | $ 82 | $ 78 |
Accumulated Amortization | (43) | (41) |
Intangible Assets, Net | $ 39 | $ 37 |
Contract backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 17 years | 18 years |
Intangible Assets, Gross | $ 291 | $ 278 |
Accumulated Amortization | (140) | (124) |
Intangible Assets, Net | $ 151 | $ 154 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives | 13 years | 14 years |
Intangible Assets, Gross | $ 24 | $ 23 |
Accumulated Amortization | (15) | (14) |
Intangible Assets, Net | 9 | 9 |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 50 | 50 |
Intangible Assets, Net | $ 50 | $ 50 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangibles amortization expense | $ 45 | $ 50 | $ 66 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Expected Amortization Expense of Intangibles) (Details) $ in Millions | Dec. 29, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 43 |
2025 | 43 |
2026 | 43 |
2027 | 43 |
2028 | 42 |
Beyond 2028 | $ 354 |
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 | |||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) project | Dec. 29, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 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 | 114 | $ (80) | $ (170) | ||||
Distributions of earnings of unconsolidated affiliates | (74) | (66) | (47) | ||||
(Return of) investments in equity method investment, net | (60) | (198) | |||||
Ending balance | $ 188 | 206 | 188 | ||||
Return of (investments in) equity method joint ventures, net | 60 | 198 | |||||
U.K. Road project joint ventures | |||||||
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, | 576 | 188 | 576 | ||||
Equity in earnings (losses) of unconsolidated affiliates | 114 | (80) | |||||
Distributions of earnings of unconsolidated affiliates | (63) | (53) | |||||
Payments from unconsolidated affiliates, net | (18) | (14) | |||||
(Return of) investments in equity method investment, net | (60) | (198) | |||||
Sale of equity method investment | 0 | (31) | |||||
Foreign currency translation adjustments | 3 | (15) | |||||
Other | 42 | 3 | |||||
Ending balance | 188 | 206 | 188 | $ 576 | |||
Impairment of equity method investments | $ 10 | ||||||
Gain (loss) on disposal | $ (3) | 16 | |||||
Return of (investments in) equity method joint ventures, net | 60 | 198 | |||||
Equity method investments | 0 | 31 | |||||
Cash proceeds | $ 35 | ||||||
Deferred consideration | $ 2 | ||||||
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 | BRIS | |||||||
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 | 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 | $ 47 |
Equity Method Investments and_4
Equity Method Investments and Variable Interest Entities (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2016 VIE | Apr. 30, 2006 | Dec. 29, 2023 USD ($) transporter bond | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of VIEs | VIE | 3 | ||||
Consolidated VIEs, total assets | $ 5,565 | $ 5,566 | |||
Total liabilities | 4,171 | 3,934 | |||
Revenue | 6,956 | 6,564 | $ 7,339 | ||
Debt outstanding | $ 1,832 | 1,740 | |||
JKC Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 30% | ||||
Corporate Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue | $ 567 | 413 | $ 361 | ||
Affinity joint venture (U.K. MFTS project) | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Consolidated VIEs, total assets | 4 | 9 | |||
Total liabilities | 2 | 3 | |||
Aspire Defence Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Term of contracted services portion of project (in years) | 35 years | ||||
Aspire Defence Limited | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Consolidated VIEs, total assets | 91 | 87 | |||
Total liabilities | 7 | 7 | |||
Aspire Defence Limited | Variable Interest Entity, Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Consolidated VIEs, total assets | 394 | 385 | |||
Total liabilities | 206 | 196 | |||
JKC joint venture (Ichthys LNG project) | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Consolidated VIEs, total assets | 0 | 15 | |||
Total liabilities | $ 48 | 0 | |||
Plaquemines LNG project | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 45% | ||||
Consolidated VIEs, total assets | $ 82 | 23 | |||
Total liabilities | $ 72 | 36 | |||
Fasttrax Limited (Fasttrax project) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50% | ||||
Number of heavy equipment transporters | transporter | 91 | ||||
Percentage of subsidiary owned by the parent entity | 100% | ||||
Number of series of bonds | bond | 2 | ||||
Cash collateral for borrowed securities | $ 1 | ||||
Property plant and equipment collateral for borrowed securities | 3 | ||||
Debt outstanding | 2 | ||||
Fasttrax Limited (Fasttrax project) | Variable Interest Entity, Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Consolidated VIEs, total assets | 7 | 14 | |||
Total liabilities | $ 3 | 5 | |||
HomeSafe | Variable Interest Entity, Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 72% | ||||
Consolidated VIEs, total assets | $ 72 | 31 | |||
Total liabilities | $ 61 | $ 19 | |||
Affinity Flying Training Services Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50% | ||||
Affinity Capital Works | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 50% | ||||
Aspire Defence Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity, ownership percentage | 45% |
Equity Method Investments and_5
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 1,651 | $ 1,747 |
Total assets | 5,565 | 5,566 |
Current liabilities | 1,572 | 1,821 |
Total liabilities | 4,171 | 3,934 |
Equity Method Investment | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 2,838 | 1,576 |
Noncurrent assets | 1,662 | 1,717 |
Total assets | 4,500 | 3,293 |
Current liabilities | 2,493 | 1,105 |
Noncurrent liabilities | 1,898 | 1,914 |
Total liabilities | $ 4,391 | $ 3,019 |
Equity Method Investments and_6
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Statements of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Net income (loss) | $ (261) | $ 192 | $ 35 |
Equity Method Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 5,873 | 3,175 | 1,294 |
Operating income (loss) | 264 | (325) | (650) |
Net income (loss) | $ 242 | $ (321) | $ (698) |
Equity Method Investments and_7
Equity Method Investments and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 5,565 | $ 5,566 |
Total Liabilities | 4,171 | 3,934 |
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 4 | 9 |
Total Liabilities | 2 | 3 |
Variable Interest Entity, Not Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 91 | 87 |
Total Liabilities | 7 | 7 |
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 0 | 15 |
Total Liabilities | 48 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Plaquemines LNG project | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 82 | 23 |
Total Liabilities | 72 | 36 |
Variable Interest Entity, Primary Beneficiary | Aspire Defence Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 394 | 385 |
Total Liabilities | 206 | 196 |
Variable Interest Entity, Primary Beneficiary | HomeSafe | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 72 | 31 |
Total Liabilities | $ 61 | $ 19 |
Equity Method Investments and_8
Equity Method Investments and Variable Interest Entities (Balance Sheet Amounts Related to Services Provided) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 981 | $ 942 |
Other current assets | 189 | 164 |
Contract liabilities | 359 | 275 |
Corporate Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net of allowance for doubtful accounts | 103 | 56 |
Other current assets | 0 | 12 |
Contract liabilities | $ 89 | $ 39 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Oct. 17, 2022 GBP (£) | Dec. 29, 2023 USD ($) plan | Dec. 29, 2023 GBP (£) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan expenses | $ 119 | $ 104 | $ 84 | ||
Estimated future employer contributions in next fiscal year | 42 | ||||
Funded amount | 13 | 12 | |||
Employee deferred compensation plan | $ 66 | 57 | |||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of frozen defined benefit plans | plan | 2 | 2 | |||
Accumulated benefit obligation | $ 58 | 59 | |||
Int’l | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 18 | $ 1,225 | |||
U.K. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of frozen defined benefit plans | plan | 1 | 1 | |||
Number of active defined benefit plans | plan | 1 | 1 | |||
Contributions by employer | £ | £ 29 | £ 33 | |||
Germany | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of frozen defined benefit plans | plan | 1 | 1 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 1,319 | ||
Fair value of plan assets at end of period | 1,348 | $ 1,319 | |
United States | |||
Change in projected benefit obligations: | |||
Service cost | 0 | 0 | $ 0 |
Interest cost | 3 | 2 | 2 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 52 | ||
Fair value of plan assets at end of period | 53 | 52 | |
United States | Overfunded | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 0 | 0 | |
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | 0 | 0 | |
Other | 0 | 0 | |
Benefits paid | 0 | 0 | |
Projected benefit obligations at end of period | 0 | 0 | 0 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of period | 0 | 0 | 0 |
Funded status | 0 | 0 | |
United States | Overfunded | Previously Reported | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 0 | ||
Projected benefit obligations at end of period | 0 | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 0 | ||
Fair value of plan assets at end of period | 0 | ||
United States | Underfunded | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 59 | 74 | |
Service cost | 0 | 0 | |
Interest cost | 3 | 2 | |
Foreign currency exchange rate changes | 0 | 0 | |
Actuarial (gain) loss | 2 | (12) | |
Other | 0 | 0 | |
Benefits paid | (6) | (5) | |
Projected benefit obligations at end of period | 58 | 59 | 74 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 52 | 66 | |
Actual return on plan assets | 7 | (9) | |
Employer contributions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | (5) | (5) | |
Other | (1) | 0 | |
Fair value of plan assets at end of period | 53 | 52 | 66 |
Funded status | (5) | (7) | |
United States | Underfunded | Previously Reported | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 59 | ||
Projected benefit obligations at end of period | 59 | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 52 | ||
Fair value of plan assets at end of period | 52 | ||
Int’l | |||
Change in projected benefit obligations: | |||
Service cost | 1 | 2 | 3 |
Interest cost | 61 | 35 | 33 |
Projected benefit obligations at end of period | 1,305 | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,267 | ||
Fair value of plan assets at end of period | 1,295 | 1,267 | |
Int’l | Overfunded | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 17 | 2,066 | |
Service cost | 1 | 1 | |
Interest cost | 1 | 34 | |
Foreign currency exchange rate changes | 1 | (220) | |
Actuarial (gain) loss | (1) | (614) | |
Other | 0 | (1) | |
Benefits paid | (1) | (61) | |
Projected benefit obligations at end of period | 17 | 2,066 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 16 | 1,992 | |
Actual return on plan assets | 1 | (539) | |
Employer contributions | 1 | 73 | |
Foreign currency exchange rate changes | 1 | (213) | |
Benefits paid | (1) | (61) | |
Other | 0 | (1) | |
Fair value of plan assets at end of period | 18 | 16 | 1,992 |
Funded status | 0 | 46 | |
Int’l | Overfunded | Previously Reported | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 1,205 | ||
Projected benefit obligations at end of period | 1,205 | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,251 | ||
Fair value of plan assets at end of period | 1,251 | ||
Int’l | Underfunded | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 1,208 | 35 | |
Service cost | 0 | 1 | |
Interest cost | 60 | 1 | |
Foreign currency exchange rate changes | 67 | (4) | |
Actuarial (gain) loss | 15 | (12) | |
Other | 0 | 0 | |
Benefits paid | (63) | (1) | |
Projected benefit obligations at end of period | 1,287 | 1,208 | 35 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 1,251 | 31 | |
Actual return on plan assets | 12 | (12) | |
Employer contributions | 8 | 1 | |
Foreign currency exchange rate changes | 70 | (3) | |
Benefits paid | (64) | (1) | |
Other | 0 | 0 | |
Fair value of plan assets at end of period | 1,277 | 1,251 | $ 31 |
Funded status | (10) | (4) | |
Int’l | Underfunded | Previously Reported | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of period | 20 | ||
Projected benefit obligations at end of period | 20 | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 16 | ||
Fair value of plan assets at end of period | $ 16 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Amounts Recognized on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension Assets | $ 0 | $ 46 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension Assets | 0 | 0 |
Other Liabilities | (5) | (7) |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension Assets | 0 | 46 |
Other Liabilities | $ (10) | $ (4) |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 3 | 2 | 2 |
Expected return on plan assets | (3) | (3) | (3) |
Prior service cost amortization | 0 | 0 | 0 |
Recognized actuarial loss | 1 | 1 | 2 |
Net periodic (benefit) cost | 1 | 0 | 1 |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 3 |
Interest cost | 61 | 35 | 33 |
Expected return on plan assets | (102) | (83) | (87) |
Prior service cost amortization | 1 | 1 | 1 |
Recognized actuarial loss | 0 | 23 | 31 |
Net periodic (benefit) cost | $ (39) | $ (22) | $ (19) |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $7 and $221, $8 and $195, respectively | $ 15 | $ 16 |
Total in accumulated other comprehensive loss | 15 | 16 |
Unrecognized actuarial loss, tax | 7 | 8 |
Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial loss, net of tax of $7 and $221, $8 and $195, respectively | 629 | 552 |
Total in accumulated other comprehensive loss | 629 | 552 |
Unrecognized actuarial loss, tax | $ 221 | $ 195 |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.91% | 2.45% | 2% |
Expected return on plan assets | 6.63% | 5.19% | 5.19% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.70% | 4.91% | |
Int’l | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5% | 1.80% | 1.40% |
Expected return on plan assets | 5.92% | 4.73% | 4.67% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.79% | 5% |
Retirement Benefits (Schedule_5
Retirement Benefits (Schedule of Target Plan Allocation) (Details) | Dec. 27, 2024 | Dec. 29, 2023 |
United States | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 41% | |
United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 62% | |
United States | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 31% | |
United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 47% | |
United States | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1% | |
United States | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1% | |
United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7% | |
United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10% | |
Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 20% | |
Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 50% | |
Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 30% | |
Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100% | |
Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7% | |
Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10% | |
Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 35% | |
Scenario, Forecast | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100% | |
Scenario, Forecast | United States | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 52% | |
Scenario, Forecast | United States | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 41% | |
Scenario, Forecast | United States | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 62% | |
Scenario, Forecast | United States | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 39% | |
Scenario, Forecast | United States | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 31% | |
Scenario, Forecast | United States | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 47% | |
Scenario, Forecast | United States | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Scenario, Forecast | United States | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1% | |
Scenario, Forecast | United States | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1% | |
Scenario, Forecast | United States | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 1% | |
Scenario, Forecast | United States | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 8% | |
Scenario, Forecast | United States | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7% | |
Scenario, Forecast | United States | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10% | |
Scenario, Forecast | Int’l | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 100% | |
Scenario, Forecast | Int’l | Equity funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 14% | |
Scenario, Forecast | Int’l | Equity funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 11% | |
Scenario, Forecast | Int’l | Equity funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 17% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 67% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 53% | |
Scenario, Forecast | Int’l | Fixed income funds and securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 80% | |
Scenario, Forecast | Int’l | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Scenario, Forecast | Int’l | Hedge funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Scenario, Forecast | Int’l | Hedge funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 0% | |
Scenario, Forecast | Int’l | Real estate funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 7% | |
Scenario, Forecast | Int’l | Real estate funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 6% | |
Scenario, Forecast | Int’l | Real estate funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 9% | |
Scenario, Forecast | Int’l | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 12% | |
Scenario, Forecast | Int’l | Other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 10% | |
Scenario, Forecast | Int’l | Other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations (in percentage) | 15% |
Retirement Benefits (Schedule_6
Retirement Benefits (Schedule of Pension Plan Assets Measured at Fair Value) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,348 | $ 1,319 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 83 | 31 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 597 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 114 | 113 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53 | 52 | |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53 | 52 | |
United States | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,295 | 1,267 | |
Int’l | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 83 | 31 | |
Int’l | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 597 | 0 | |
Int’l | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 114 | 113 | $ 137 |
Int’l | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 501 | 1,123 | |
Int’l | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 83 | 31 | |
Int’l | Cash and equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 83 | 31 | |
Int’l | Cash and equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Cash and equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51 | 60 | |
Int’l | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51 | 60 | 88 |
Int’l | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 597 | 0 | |
Int’l | Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 597 | 0 | |
Int’l | Fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | 0 |
Int’l | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Int’l | Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | 1 |
Int’l | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62 | 52 | |
Int’l | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Int’l | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 62 | $ 52 | $ 48 |
Retirement Benefits (Schedule_7
Retirement Benefits (Schedule of Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | $ 1,319 | |
Fair value of plan assets at end of period | 1,348 | $ 1,319 |
Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 113 | |
Fair value of plan assets at end of period | 114 | 113 |
Int’l | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1,267 | |
Fair value of plan assets at end of period | 1,295 | 1,267 |
Int’l | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 60 | |
Fair value of plan assets at end of period | 51 | 60 |
Int’l | Fixed Income | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 0 | |
Fair value of plan assets at end of period | 597 | 0 |
Int’l | Real Estate | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | |
Fair value of plan assets at end of period | 1 | 1 |
Int’l | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 52 | |
Fair value of plan assets at end of period | 62 | 52 |
Int’l | Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 113 | 137 |
Return on assets held at end of year | (6) | 11 |
Return on assets sold during the year | 0 | 5 |
Purchases, sales and settlements, net | 2 | (26) |
Foreign exchange impact | 5 | (14) |
Fair value of plan assets at end of period | 114 | 113 |
Int’l | Level 3 | Equities | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 60 | 88 |
Return on assets held at end of year | (4) | 7 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements, net | (8) | (26) |
Foreign exchange impact | 3 | (9) |
Fair value of plan assets at end of period | 51 | 60 |
Int’l | Level 3 | Fixed Income | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 0 | 0 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements, net | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 0 | 0 |
Int’l | Level 3 | Real Estate | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 1 | 1 |
Return on assets held at end of year | 0 | 0 |
Return on assets sold during the year | 0 | 0 |
Purchases, sales and settlements, net | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Fair value of plan assets at end of period | 1 | 1 |
Int’l | Level 3 | Other | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 52 | 48 |
Return on assets held at end of year | (2) | 4 |
Return on assets sold during the year | 0 | 5 |
Purchases, sales and settlements, net | 10 | 0 |
Foreign exchange impact | 2 | (5) |
Fair value of plan assets at end of period | $ 62 | $ 52 |
Retirement Benefits (Schedule_8
Retirement Benefits (Schedule of Expected Benefit Payments) (Details) $ in Millions | Dec. 29, 2023 USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 6 |
2025 | 5 |
2026 | 5 |
2027 | 5 |
2028 | 5 |
Years 2029 - 2033 | 22 |
Int’l | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 65 |
2025 | 67 |
2026 | 70 |
2027 | 72 |
2028 | 74 |
Years 2029 - 2033 | $ 405 |
Debt and Other Credit Facilit_3
Debt and Other Credit Facilities (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,832 | $ 1,740 |
Less: current portion | 31 | 364 |
Total long-term debt, net of current portion | 1,801 | 1,376 |
Secured Debt | Term Loan A | ||
Debt Instrument [Line Items] | ||
Long-term debt | 595 | 398 |
Unamortized debt issuance costs | (8) | (9) |
Secured Debt | Term Loan B | ||
Debt Instrument [Line Items] | ||
Long-term debt | 501 | 506 |
Unamortized debt issuance costs | (8) | (10) |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 250 | 250 |
Unamortized debt issuance costs | (3) | (3) |
Revolver | Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt | 505 | 260 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 350 |
Unamortized debt issuance costs | $ 0 | $ (2) |
Debt and Other Credit Facilit_4
Debt and Other Credit Facilities (Senior Credit Facility) (Details) | 12 Months Ended | |||||||||
Jan. 19, 2024 USD ($) | Nov. 01, 2023 USD ($) | Jul. 26, 2023 USD ($) | Dec. 29, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 07, 2024 USD ($) | Feb. 06, 2023 USD ($) | Mar. 31, 2022 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||||||||
Payments on revolving credit facility | $ 340,000,000 | $ 158,000,000 | $ 16,000,000 | |||||||
Borrowings on short-term and long-term debt | 785,000,000 | 58,000,000 | $ 290,000,000 | |||||||
Term Loan A | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding amount | $ 595,000,000 | 398,000,000 | ||||||||
Covenant, interest coverage ratio | 3 | |||||||||
Term Loan A | Secured Debt | Payment term one | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of aggregate principal | 0.625% | |||||||||
Term Loan A | Secured Debt | Payment term two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of aggregate principal | 1.25% | |||||||||
Term Loan A | Secured Debt | Maximum | ||||||||||
Debt Instrument [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 | |||||||||
Term Loan B | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding amount | $ 501,000,000 | 506,000,000 | ||||||||
Percentage of aggregate principal | 0.25% | |||||||||
Term Loan B | Secured Debt | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolver and term loan A, interest rate | 2.75% | |||||||||
Revolver | Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||||
Repurchase of convertible notes | $ 200,000,000 | 785,000,000 | ||||||||
Payments on revolving credit facility | 340,000,000 | |||||||||
Outstanding amount | $ 505,000,000 | $ 260,000,000 | ||||||||
Revolver | Revolver | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding amount | $ 117,000,000 | |||||||||
Revolver | Term Loan A | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, additional borrowing capacity | $ 200,000,000 | |||||||||
Borrowings on revolving credit facility | $ 200,000,000 | |||||||||
Revolver | Term Loan A | Secured Debt | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding amount | $ 500,000,000 | |||||||||
Revolver | Term Loan B | Secured Debt | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||
Borrowings on short-term and long-term debt | $ 1,000,000,000 |
Debt and Other Credit Facilit_5
Debt and Other Credit Facilities (Consolidated Leverage Ratio) (Details) | 12 Months Ended | |
Jul. 26, 2023 | Dec. 29, 2023 | |
Greater than or equal to 4.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.33% | |
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 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 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.25% | |
Less than 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.23% | |
Revolver and Term Loan A | LIBOR | Greater than or equal to 4.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Revolver and Term Loan A | LIBOR | Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2% | |
Revolver and Term Loan A | LIBOR | Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Revolver and Term Loan A | LIBOR | Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Revolver and Term Loan A | LIBOR | Less than 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Revolver and Term Loan A | Base Rate | Greater than or equal to 4.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Revolver and Term Loan A | Base Rate | Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1% | |
Revolver and Term Loan A | Base Rate | Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.75% | |
Revolver and Term Loan A | Base Rate | Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Revolver and Term Loan A | Base Rate | Less than 1.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Revolver and Term Loan A | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Revolver and Term Loan A | Sterling Overnight Index Average (SONIA) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.12% |
Debt and Other Credit Facilit_6
Debt and Other Credit Facilities (Convertible Senior Notes) (Details) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 01, 2023 USD ($) | Aug. 23, 2023 $ / shares | Jun. 01, 2023 USD ($) | Dec. 29, 2023 USD ($) | Dec. 29, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Nov. 15, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Cash dividends declared per share (usd per share) | $ / shares | $ 0.54 | $ 0.48 | $ 0.44 | ||||||
Payments to settle convertible notes | $ 50,000,000 | $ 843,000,000 | $ 0 | $ 0 | |||||
Proceeds received from note hedge | 343,000,000 | 493,000,000 | $ 0 | $ 0 | |||||
Revolver | Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of convertible notes | 200,000,000 | $ 785,000,000 | |||||||
Notes Due 2023 | Convertible Notes and Conversion Option | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 350,000,000 | ||||||||
Interest rate, stated percentage | 2.50% | ||||||||
Repurchase of convertible senior debt | 250,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
Cash dividends declared per share (usd per share) | $ / shares | $ 0.135 | ||||||||
Conversion rate | 0.0396890 | ||||||||
Convertible stock price (usd per share) | $ / shares | $ 25.20 | ||||||||
Payments to settle convertible notes | 593,000,000 | $ 250,000,000 | $ 116,000,000 | ||||||
Conversion option amount | $ 343,000,000 |
Debt And Other Credit Facilit_7
Debt And Other Credit Facilities (Senior Notes) (Details) - Notes Due 2028 - Senior Notes | 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) - Revolver - USD ($) | Dec. 29, 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 | $ 83,000,000 | |
Performance Letter of Credit Fee | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 575,000,000 | |
Performance Letter of Credit Fee | Committed Line of Credit | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 1,000,000,000 | |
Performance Letter of Credit Fee | Uncommitted Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 392,000,000 | |
Letters of credit, outstanding amount | 298,000,000 | |
Revolver | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Long-term line of credit | 505,000,000 | |
Letters of credit, outstanding amount | $ 14,000,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) before Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
United States | $ (465) | $ 138 | $ 177 |
Foreign | 299 | 146 | (31) |
Income (loss) before income taxes | (166) | 284 | 146 |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 133 | 161 | 56 |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 49 | (103) | (199) |
Canada | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 1 | 0 | (2) |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 45 | 16 | 39 |
Africa | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 6 | 7 | 3 |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | $ 65 | $ 65 | $ 72 |
Income Taxes (Summary of Taxes
Income Taxes (Summary of Taxes on Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ (95) | $ (92) | $ (111) |
Shareholders' equity, foreign currency translation adjustment | 0 | 0 | (1) |
Shareholders' equity, pension and post-retirement benefits | 25 | (4) | (44) |
Shareholders' equity, changes in fair value of derivatives | 3 | (11) | (7) |
Total income taxes | $ (67) | $ (107) | $ (163) |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal | |||
Current | $ 0 | $ (10) | $ (1) |
Deferred | (3) | (7) | (28) |
Total | (3) | (17) | (29) |
Foreign | |||
Current | (65) | (36) | (49) |
Deferred | (14) | (26) | (22) |
Total | (79) | (62) | (71) |
State and other | |||
Current | (17) | (9) | (14) |
Deferred | 4 | (4) | 3 |
Total | (13) | (13) | (11) |
Current | (82) | (55) | (64) |
Deferred | (13) | (37) | (47) |
Total | $ (95) | $ (92) | $ (111) |
Income Taxes (Components of For
Income Taxes (Components of Foreign Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (79) | $ (62) | $ (71) |
United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (32) | (29) | (22) |
Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (13) | (13) | (23) |
Middle East | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | (12) | (8) | (9) |
Other | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign provision for income taxes | $ (22) | $ (12) | $ (17) |
Income Taxes (Reconciliations)
Income Taxes (Reconciliations) (Details) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal rate, expected (benefit) provision | 21% | 21% | 21% |
Increase (reduction) in tax rate from: | |||
Tax impact from foreign operations | 2% | 1% | 0% |
Noncontrolling interests and equity earnings | (1.00%) | 8% | 38% |
State and local income taxes, net of federal benefit | 2% | 2% | 2% |
Other permanent differences, net | 5% | 4% | 4% |
Other non-deductible expenditures | 0% | 2% | 1% |
U.S. taxes on foreign unremitted earnings | 0% | 0% | 1% |
Change in federal and foreign valuation allowance | (3.00%) | (2.00%) | (4.00%) |
Research and development credits, net of provision | 0% | (6.00%) | 0% |
Release of previously reserved position | (2.00%) | 0% | 0% |
U.K. statutory rate change | 0% | 2% | 13% |
Non-Deductible portion associated with legal settlement of legacy matter | (11.00%) | 0% | 0% |
Non-Deductible portion of Charges associated with Convertible Notes | (70.00%) | 0% | 0% |
Effective tax rate on income from operations | (57.00%) | 32% | 76% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities and Related Valuation Allowances) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Employee compensation and benefits | $ 68 | $ 65 |
Foreign tax credit carryforwards | 118 | 186 |
Loss carryforwards | 77 | 121 |
Research and development and other credit carryforwards | 64 | 49 |
Insurance accruals | 8 | 9 |
Allowance for credit losses | 1 | 3 |
Lease obligation and accrued liabilities | 74 | 85 |
Contract liabilities | 23 | 21 |
Capitalized research expenditures | 37 | 18 |
Other | 73 | 57 |
Total gross deferred tax assets | 543 | 614 |
Valuation allowances | (148) | (217) |
Net deferred tax assets | 395 | 397 |
Deferred tax liabilities: | ||
Right-of-use assets | (31) | (39) |
Intangible amortization | (91) | (96) |
Indefinite-lived intangible amortization | (91) | (82) |
Other | (49) | (59) |
Total gross deferred tax liabilities | (262) | (276) |
Deferred tax assets, net | $ 133 | $ 121 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowances | $ 148 | $ 217 | |
Increase (decrease) in valuation allowance | (69) | 13 | |
Income (loss) exclusive of restructuring and impairment charges | 267 | 194 | $ 221 |
Income from foreign sources | 333 | ||
Income from domestic sources | 933 | ||
Undistributed earnings of foreign subsidiaries | 2,100 | ||
Unrecognized tax benefits | 60 | ||
Decrease in unrecognized tax benefits | 16 | ||
Settlements | 16 | 0 | 0 |
Income tax penalties and interest accrued | 40 | 34 | |
Income tax penalties and interest expense | 3 | 2 | 1 |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 94 | $ 56 | $ 56 |
Income Taxes (Summary of Valuat
Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | $ 281 | |
Valuation Allowance | (148) | $ (217) |
Deferred tax assets, net | 133 | $ 121 |
United States | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 299 | |
Valuation Allowance | (116) | |
Deferred tax assets, net | 183 | |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | (70) | |
Valuation Allowance | (1) | |
Deferred tax liabilities, net | (71) | |
Australia | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 13 | |
Valuation Allowance | 0 | |
Deferred tax assets, net | 13 | |
Canada | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 21 | |
Valuation Allowance | (20) | |
Deferred tax assets, net | 1 | |
Other | ||
Valuation Allowance [Line Items] | ||
Net Gross Deferred Asset (Liability) | 18 | |
Valuation Allowance | (11) | |
Deferred tax assets, net | $ 7 |
Income Taxes (Loss and Credit C
Income Taxes (Loss and Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Foreign tax credit carryforwards | $ 118 | |
Foreign net operating loss carryforwards | 118 | |
Foreign net operating loss carryforwards | 24 | |
State net operating loss carryforwards | 830 | |
Research and development and other credit carryforwards | $ 64 | $ 49 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 92 | $ 89 | $ 96 |
Increases related to current year tax positions | 2 | 8 | 0 |
Increases related to prior year tax positions | 0 | 1 | 0 |
Decreases related to prior year tax positions | (2) | (2) | (4) |
Settlements | (16) | 0 | 0 |
Lapse of statute of limitations | (2) | (2) | (2) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | 0 | (2) | (1) |
Unrecognized tax benefits, ending balance | $ 74 | $ 92 | $ 89 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Self insurance reserve, noncurrent | $ 37 | $ 41 |
Accounts Payable and Accrued Liabilities | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve, noncurrent | 18 | 19 |
Other Current Liabilities | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve, noncurrent | 3 | 3 |
Other Liabilities | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve, noncurrent | $ 16 | $ 19 |
U.S. Government Matters (Detail
U.S. Government Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Sep. 22, 2023 | Jun. 30, 2023 | Jun. 12, 2023 | Dec. 28, 2022 | Mar. 31, 2022 | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2011 | |
United States Government Contract Work [Line Items] | |||||||||
Settlement charge | $ 144 | $ 0 | $ 0 | ||||||
Reserve for Potentially Disallowable Costs Incurred under Government Contracts | |||||||||
United States Government Contract Work [Line Items] | |||||||||
Accrued reserve for unallowable costs | 45 | $ 61 | |||||||
First Kuwaiti Trading Company Arbitration | |||||||||
United States Government Contract Work [Line Items] | |||||||||
Damages awarded, value | $ 16 | ||||||||
Claims in unpaid bonuses | $ 70 | $ 100 | |||||||
First Kuwaiti Trading Company Arbitration | Settled Litigation | |||||||||
United States Government Contract Work [Line Items] | |||||||||
Funds received from litigation settlement | $ 8 | ||||||||
Howard qui tam | |||||||||
United States Government Contract Work [Line Items] | |||||||||
Estimate of possible loss | $ 628 | ||||||||
Number of days court ordered, stay of proceedings | 90 days | ||||||||
Payments for legal settlements | $ 109 | ||||||||
Payments for restitution damages | 57 | ||||||||
Attorney fees | $ 35 | ||||||||
Settlement charge | $ 144 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 USD ($) renewal_option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Operating Leased Assets [Line Items] | |||
Percentage of lease obligations | 91% | ||
Term of contract | 12 months | ||
Renewal term increments | 1 year | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant & equipment, net | Property, plant & equipment, net | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Operating lease ROU asset amortization | $ 46 | $ 47 | $ 38 |
Other noncash operating lease costs | 16 | $ 14 | $ 13 |
Short-term lease commitments | $ 178 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Number of renewal options | renewal_option | 1 |
Leases (Schedule of Leasing Act
Leases (Schedule of Leasing Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 62 | $ 61 | $ 51 |
Short-term lease cost | 215 | 369 | 528 |
Total lease cost | 277 | 430 | 579 |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 65 | 63 | 59 |
Financing cash flows from finance leases | 11 | 11 | 13 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 60 | 61 | 33 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 11 | $ 13 | $ 11 |
Weighted-average remaining lease term-operating (in years) | 6 years | 7 years | 6 years |
Weighted-average remaining lease term-finance (in years) | 2 years | 2 years | 3 years |
Weighted-average discount rate-operating leases | 6.20% | 6% | 6.30% |
Weighted-average discount rate-finance leases | 4.20% | 3.10% | 4% |
Leases (Schedule of Lease Matur
Leases (Schedule of Lease Maturity) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 55 | |
2025 | 49 | |
2026 | 36 | |
2027 | 31 | |
2028 | 30 | |
Thereafter | 70 | |
Total future payments | 271 | |
Less imputed interest | (47) | |
Present value of future lease payments | 224 | |
Less current portion of lease obligations | (48) | $ (48) |
Noncurrent portion of lease obligations | 176 | $ 193 |
Finance Leases | ||
2024 | 12 | |
2025 | 7 | |
2026 | 1 | |
2027 | 1 | |
2028 | 1 | |
Thereafter | 0 | |
Total future payments | 22 | |
Less imputed interest | (1) | |
Present value of future lease payments | 21 | |
Less current portion of lease obligations | (11) | |
Noncurrent portion of lease obligations | $ 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,632 | $ 1,683 | $ 1,582 |
Other comprehensive income (loss) adjustments before reclassifications | (25) | (36) | |
Amounts reclassified from AOCL | (8) | 35 | |
Other comprehensive (loss) income, net of tax | (33) | (1) | 202 |
Ending balance | 1,394 | 1,632 | 1,683 |
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 | 42 | (69) | |
Amounts reclassified from AOCL | 10 | 13 | |
Other comprehensive (loss) income, net of tax | 52 | (56) | |
Ending balance | (300) | (352) | (296) |
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 | (77) | (6) | |
Amounts reclassified from AOCL | 1 | 19 | |
Other comprehensive (loss) income, net of tax | (76) | 13 | |
Ending balance | (644) | (568) | (581) |
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 | 10 | 39 | |
Amounts reclassified from AOCL | (19) | 3 | |
Other comprehensive (loss) income, net of tax | (9) | 42 | |
Ending balance | 29 | 38 | (4) |
AOCL | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (882) | (881) | (1,083) |
Other comprehensive (loss) income, net of tax | (33) | (1) | 202 |
Ending balance | $ (915) | $ (882) | $ (881) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassification out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of foreign currency adjustments | $ (7) | $ 19 | $ 2 |
Foreign currency hedge and interest rate swap settlements | (5) | 12 | (9) |
Tax benefit | (95) | (92) | (111) |
Net income (loss) | (261) | 192 | $ 35 |
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 | (10) | (13) | |
Tax benefit | 0 | 0 | |
Net income (loss) | (10) | (13) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Prior service cost amortization | (1) | (1) | |
Recognized actuarial loss | (1) | (23) | |
Tax benefit | 1 | 5 | |
Net income (loss) | (1) | (19) | |
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value for derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Foreign currency hedge and interest rate swap settlements | 24 | (4) | |
Tax benefit | (5) | 1 | |
Net income (loss) | $ 19 | $ (3) |
Share Repurchases (Narrative) (
Share Repurchases (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2023 | Feb. 19, 2024 | Oct. 18, 2022 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 500,000,000 | $ 350,000,000 | ||
Remaining authorized repurchase amount | $ 326,000,000 | |||
Percentage of employee's earnings withheld | 10% | |||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Remaining authorized repurchase amount | $ 500,000,000 | |||
Additional amount authorized for repurchase program | $ 174,000,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 12 Months Ended | ||||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 18, 2022 | Feb. 25, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares (in shares) | 2,462,391 | 4,229,328 | |||
Average price per share (usd per share) | $ 56.03 | $ 47.97 | |||
Value of common stock repurchases | $ 138,000,000 | $ 203,000,000 | $ 82,000,000 | ||
Number of shares (in shares) | 240,098 | 199,642 | |||
Average price per share (usd per share) | $ 54.22 | $ 48.64 | |||
Value of common stock repurchases | $ 13,000,000 | $ 10,000,000 | |||
Stock repurchase program, authorized amount | $ 500,000,000 | $ 350,000,000 | |||
Share Repurchase Program 2014 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares (in shares) | 2,222,293 | 4,029,686 | |||
Average price per share (usd per share) | $ 56.23 | $ 47.94 | |||
Value of common stock repurchases | $ 125,000,000 | $ 193,000,000 |
Share-based Compensation and _3
Share-based Compensation and Incentive Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016 | May 31, 2012 | Dec. 27, 2024 | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 4,400,000 | 2,000,000 | ||||
Common stock reserved for issuance (in shares) | 16,400,000 | 3,900,000 | ||||
Stock Compensation Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 4,400,000 | |||||
Common stock reserved for issuance (in shares) | 9,900,000 | 500,000 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected term (in years) | 10 years | |||||
Number of options granted | 0 | 0 | 0 | |||
Options outstanding (in shares) | 152,799 | |||||
Exercisable (usd per share) | $ 19.92 | |||||
Exercised (in shares) | 246,387 | |||||
Exercised (usd per share) | $ 21.91 | |||||
Unrecognized compensation cost, net of estimated forfeitures | $ 0 | |||||
Share-based compensation expense | $ 0 | $ 0 | $ 0 | |||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected term (in years) | 10 years | |||||
Unrecognized compensation cost, net of estimated forfeitures | $ 22,000,000 | |||||
Weighted average grant-date fair value per share (usd per share) | $ 56.09 | $ 47.94 | $ 33.97 | |||
Restricted stock compensation expense | $ 15,000,000 | $ 15,000,000 | $ 12,000,000 | |||
Income tax benefit recognized in net income for share-based compensation | $ 3,000,000 | 3,000,000 | 2,000,000 | |||
Weighted average recognizing period of unrecognized compensation cost (in years) | 1 year 8 months 23 days | |||||
Weighted-Average Fair Value On Vesting Date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total fair value of shares vested based on the weighted-average fair value | $ 21,000,000 | 31,000,000 | 16,000,000 | |||
Weighted-Average Fair Value On Grant Date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total fair value of shares vested based on the weighted-average fair value | 14,000,000 | 15,000,000 | 10,000,000 | |||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 6,000,000 | $ 6,000,000 | $ 4,000,000 | |||
Award vesting period | 3 years | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued based on TSR performance, percentage | 0% | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued based on TSR performance, percentage | 200% | |||||
Cash Performance Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | 3 years | 3 years | |||
Percentage of average total shareholder return | 50% | 50% | 50% | |||
Percentage of job income sold | 50% | 50% | 50% | |||
Period of target level average | 3 years | |||||
Number of shares, granted (in shares) | 19,000,000 | 16,000,000 | 13,000,000 | |||
Number of cash performance based award units forfeited (in shares) | 5,000,000 | 2,000,000 | 4,000,000 | |||
Outstanding awards balance (in shares) | 42,000,000 | |||||
Expense for cash performance awards | $ 21,000,000 | $ 20,000,000 | $ 26,000,000 | |||
Liability for awards due within one year | 20,000,000 | 19,000,000 | ||||
Liability for awards | $ 19,000,000 | $ 17,000,000 | ||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum withhold percentage | 10% | |||||
ESPP offering period | 6 months | |||||
Percentage of discount on stock price | 5% | |||||
ESPP stock issued (in shares) | 119,000 | 124,000 | ||||
Employee Stock | Scenario, Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of discount on stock price | 6% |
Share-based Compensation and _4
Share-based Compensation and Incentive Plans (Summary of Vested and Unvested RSUs) (Details) - Restricted Stock | 12 Months Ended |
Dec. 29, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 845,126 |
Granted (in shares) | shares | 291,577 |
Vested (in shares) | shares | (394,440) |
Forfeited (in shares) | shares | (61,483) |
Ending balance (in shares) | shares | 680,780 |
Weighted Average Grant-Date Fair Value per Share | |
Beginning balance (usd per share) | $ / shares | $ 37.90 |
Granted (usd per share) | $ / shares | 56.09 |
Vested (usd per share) | $ / shares | 36.33 |
Forfeited (usd per share) | $ / shares | 44.06 |
Ending balance (usd per share) | $ / shares | $ 46.04 |
Income (loss) per Share and C_3
Income (loss) per Share and Certain Related Information (Schedule Of Basic And Diluted Net Income (Loss) Per Share Calculation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net Income (loss) attributable to KBR | $ (265) | $ 190 | $ 27 |
Less earnings allocable to participating securities | 0 | (1) | 0 |
Basic net income (loss) attributable to KBR | (265) | 189 | 27 |
Reversal of Convertible Debt interest expense | 0 | 7 | 0 |
Diluted net income (loss) attributable to KBR | $ (265) | $ 196 | $ 27 |
Basic weighted average common shares outstanding (in shares) | 135 | 139 | 140 |
Convertible Debt (in shares) | 0 | 14 | 0 |
Warrant (in shares) | 0 | 3 | 0 |
Stock options and restricted shares (in shares) | 0 | 0 | 1 |
Diluted weighted average common shares outstanding (in shares) | 135 | 156 | 141 |
Basic (usd per share) | $ (1.96) | $ 1.36 | $ 0.19 |
Diluted (usd per share) | $ (1.96) | $ 1.26 | $ 0.19 |
Income (loss) per Share and C_4
Income (loss) per Share and Certain Related Information (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Feb. 19, 2024 | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price (usd per share) | $ 39.63 | $ 39.76 | ||
Dividends declared to shareholders | $ 73 | $ 67 | $ 63 | |
Cash dividends declared per share (usd per share) | $ 0.54 | $ 0.48 | $ 0.44 | |
Subsequent Event | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Cash dividends declared per share (usd per share) | $ 0.15 | |||
Convertible Debt Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 4 | 13.5 | ||
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 10.2 | 11.2 | 13.5 | |
Stock Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1.4 | 0.5 | 0.7 |
Income (loss) per Share and C_5
Income (loss) per Share and Certain Related Information (Shares of Common Stock) (Details) - shares | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 180,807,960 | 180,000,000 |
Common stock issued (in shares) | 900,000 | 800,000 |
Ending balance (in shares) | 181,713,586 | 180,807,960 |
Income (loss) per Share and C_6
Income (loss) per Share and Certain Related Information (Shares of Treasury Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 44,302,815 | 40,200,000 |
Treasury stock acquired, net of ESPP shares issued (in shares) | 2,300,000 | 4,100,000 |
Ending balance (in shares) | 46,646,024 | 44,302,815 |
Beginning balance | $ 1,143 | $ 943 |
Treasury stock acquired, net of ESPP shares issued | 136 | 200 |
Ending balance | $ 1,279 | $ 1,143 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Risk Management (Carrying Value and Fair Value) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability - Warrants | $ 33 | $ 0 |
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 | 595 | 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 | 501 | 506 |
Carrying Value | Convertible Notes and Conversion Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 0 | 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 | Revolver | Revolver | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 505 | 260 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability - Warrants | 33 | 0 |
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 | 595 | 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 | 503 | 511 |
Fair Value | Convertible Notes and Conversion Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 0 | 731 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 231 | 220 |
Fair Value | Revolver | Revolver | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 505 | $ 260 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Risk Management (Foreign Currency Risk) (Details) | 12 Months Ended |
Dec. 29, 2023 USD ($) | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Maximum length of time hedged in balance sheet hedge | 16 days |
Maximum length of time hedged in cash flow hedge | 6 months |
Balance Sheet Hedge | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Derivative, notional amount | $ 15,000,000 |
Cash Flow Hedging | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Cash flow hedge | $ 3,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Risk Management (Summary of Changes in Fair Value of Balance Sheet Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Balance Sheet Hedges - Fair Value | $ 0 | $ 2 |
Balance Sheet Position - Remeasurement | (6) | 2 |
Net | $ (6) | $ 4 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Details) | Dec. 29, 2023 USD ($) | Dec. 29, 2023 GBP (£) | Nov. 30, 2023 USD ($) |
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 Swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 | |
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 | £ | £ 116,000,000 | ||
Fixed interest rate | 3.81% | 3.81% |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Narrative) (Details) - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | $ 36 | $ 48 |
Unrealized gain on derivatives | 36 | 48 |
Other Current Assets | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | 24 | 19 |
Other Assets | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | 18 | $ 29 |
Other Liabilities | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Fair value of interest rate swap assets (liabilities) | $ (6) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments and Risk Management (Sale of Receivables) (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Sale of receivables | $ 3,077 |
Receivables sold | $ 3,022 |
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 | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2022 | |
Transfer of Financial Assets Accounted for as Sales [Roll Forward] | ||
Beginning balance | $ 134 | $ 481 |
Sale of receivables | 3,077 | 2,883 |
Settlement of receivables | (3,076) | (3,228) |
Cash collected, not yet remitted | 0 | (2) |
Outstanding balances sold to financial institutions | $ 135 | $ 134 |
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 | Dec. 29, 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 | |||
Ownership percentage | 0.17 | |||
Carrying value of investment | $ | $ 128 | $ 83 |
Cash Election and Repurchase _3
Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Nov. 07, 2023 | Nov. 01, 2023 | Jun. 01, 2023 | Jan. 31, 2024 | Dec. 29, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Debt outstanding | $ 1,832,000,000 | $ 1,832,000,000 | $ 1,740,000,000 | |||||||
Offset to PIC | 242,000,000 | |||||||||
Payments to settle convertible notes | $ 50,000,000 | $ 843,000,000 | 0 | $ 0 | ||||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | ||||||||
Other current liabilities | $ 249,000,000 | $ 249,000,000 | $ 220,000,000 | |||||||
Convertible Notes and Conversion Option | Notes Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Embedded derivative liability | $ 454,000,000 | |||||||||
Debt discount | 350,000,000 | |||||||||
Debt outstanding | 0 | |||||||||
Loss on derivative bifurcation | 104,000,000 | 104,000,000 | ||||||||
Note hedge derivative asset | 454,000,000 | |||||||||
Offset to PIC | $ 123,000,000 | $ 89,000,000 | $ 454,000,000 | |||||||
Accretion expense | 282,000,000 | |||||||||
Loss on debt extinguishment | 70,000,000 | $ 69,000,000 | 70,000,000 | |||||||
Repurchase of convertible senior debt | 250,000,000 | 100,000,000 | 100,000,000 | |||||||
Payments to settle convertible notes | $ 593,000,000 | 250,000,000 | 116,000,000 | |||||||
Proceeds from warrant settlement | 49,000,000 | |||||||||
Derivative liability | 123,000,000 | $ 89,000,000 | $ 33,000,000 | 33,000,000 | ||||||
Loss on settlement of warrants | $ 26,000,000 | $ 12,000,000 | $ 38,000,000 | |||||||
Convertible Notes and Conversion Option | Notes Due 2023 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payments to settle convertible notes | $ 33,000,000 |
Cash Election and Repurchase _4
Cash Election and Repurchase of Convertible Notes and Warrant Unwind Agreements (Schedule of Convertible Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 07, 2023 | Jun. 01, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Dec. 29, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Charges associated with Convertible Notes | $ 494 | $ 0 | $ 0 | ||||
Convertible Notes and Conversion Option | Notes Due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Loss on derivative bifurcation | $ 104 | 104 | |||||
Loss on debt extinguishment | $ 70 | $ 69 | 70 | ||||
Loss on settlement of warrants | $ 26 | $ 12 | 38 | ||||
Accretion of Convertible Notes debt discount | 282 | ||||||
Charges associated with Convertible Notes | $ 494 |