|
Delaware
|
|
33-0927079
|
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
|
incorporation or organization)
|
|
Identification No.)
|
|
|
|
|
|
6700 Las Colinas Boulevard
|
|
|
|
Irving,
|
Texas
|
|
75039
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value per share
|
FLR
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
TABLE OF CONTENTS
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PAGE
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|||
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
TOTAL REVENUE
|
|
$
|
3,937,707
|
|
|
$
|
3,842,235
|
|
|
$
|
10,622,201
|
|
|
$
|
11,268,305
|
|
TOTAL COST OF REVENUE
|
|
3,869,606
|
|
|
3,654,953
|
|
|
11,177,807
|
|
|
10,959,757
|
|
||||
OTHER (INCOME) AND EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
Corporate general and administrative expense
|
|
10,362
|
|
|
61,058
|
|
|
115,426
|
|
|
134,726
|
|
||||
Impairment, restructuring and other exit costs
|
|
333,988
|
|
|
—
|
|
|
388,027
|
|
|
—
|
|
||||
Interest expense
|
|
18,984
|
|
|
24,238
|
|
|
56,490
|
|
|
58,131
|
|
||||
Interest income
|
|
(13,965
|
)
|
|
(9,504
|
)
|
|
(40,695
|
)
|
|
(24,777
|
)
|
||||
Total cost and expenses
|
|
4,218,975
|
|
|
3,730,745
|
|
|
11,697,055
|
|
|
11,127,837
|
|
||||
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES
|
|
(281,268
|
)
|
|
111,490
|
|
|
(1,074,854
|
)
|
|
140,468
|
|
||||
INCOME TAX EXPENSE
|
|
490,077
|
|
|
28,710
|
|
|
368,289
|
|
|
39,260
|
|
||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
|
(771,345
|
)
|
|
82,780
|
|
|
(1,443,143
|
)
|
|
101,208
|
|
||||
NET EARNINGS FROM DISCONTINUED OPERATIONS
|
|
41,806
|
|
|
13,245
|
|
|
76,810
|
|
|
113,920
|
|
||||
NET EARNINGS (LOSS)
|
|
(729,539
|
)
|
|
96,025
|
|
|
(1,366,333
|
)
|
|
215,128
|
|
||||
LESS: NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS
|
|
10,260
|
|
|
14,199
|
|
|
(18,918
|
)
|
|
31,528
|
|
||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION FROM CONTINUING OPERATIONS
|
|
(781,605
|
)
|
|
68,581
|
|
|
(1,424,225
|
)
|
|
69,680
|
|
||||
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM DISCONTINUED OPERATIONS
|
|
2,185
|
|
|
4,481
|
|
|
7,803
|
|
|
9,013
|
|
||||
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION FROM DISCONTINUED OPERATIONS
|
|
39,621
|
|
|
8,764
|
|
|
69,007
|
|
|
104,907
|
|
||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION
|
|
$
|
(741,984
|
)
|
|
$
|
77,345
|
|
|
$
|
(1,355,218
|
)
|
|
$
|
174,587
|
|
AMOUNTS ATTRIBUTABLE TO FLUOR CORPORATION
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(781,605
|
)
|
|
$
|
68,581
|
|
|
$
|
(1,424,225
|
)
|
|
$
|
69,680
|
|
Net earnings from discontinued operations
|
|
39,621
|
|
|
8,764
|
|
|
69,007
|
|
|
104,907
|
|
||||
Net earnings (loss)
|
|
$
|
(741,984
|
)
|
|
$
|
77,345
|
|
|
$
|
(1,355,218
|
)
|
|
$
|
174,587
|
|
BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO FLUOR CORPORATION
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(5.57
|
)
|
|
$
|
0.49
|
|
|
$
|
(10.17
|
)
|
|
$
|
0.49
|
|
Net earnings from discontinued operations
|
|
0.28
|
|
|
0.06
|
|
|
0.49
|
|
|
0.75
|
|
||||
Net earnings (loss)
|
|
$
|
(5.29
|
)
|
|
$
|
0.55
|
|
|
$
|
(9.68
|
)
|
|
$
|
1.24
|
|
DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO FLUOR CORPORATION
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(5.57
|
)
|
|
$
|
0.49
|
|
|
$
|
(10.17
|
)
|
|
$
|
0.49
|
|
Net earnings from discontinued operations
|
|
0.28
|
|
|
0.06
|
|
|
0.49
|
|
|
0.74
|
|
||||
Net earnings (loss)
|
|
$
|
(5.29
|
)
|
|
$
|
0.55
|
|
|
$
|
(9.68
|
)
|
|
$
|
1.23
|
|
SHARES USED TO CALCULATE EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
||||||||
BASIC
|
|
140,163
|
|
|
140,713
|
|
|
140,027
|
|
|
140,489
|
|
||||
DILUTED
|
|
140,163
|
|
|
141,549
|
|
|
140,027
|
|
|
141,366
|
|
||||
DIVIDENDS DECLARED PER SHARE
|
|
$
|
0.21
|
|
|
$
|
0.21
|
|
|
$
|
0.63
|
|
|
$
|
0.63
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
NET EARNINGS (LOSS)
|
|
$
|
(729,539
|
)
|
|
$
|
96,025
|
|
|
$
|
(1,366,333
|
)
|
|
$
|
215,128
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(42,002
|
)
|
|
(11,733
|
)
|
|
(14,337
|
)
|
|
(44,356
|
)
|
||||
Ownership share of equity method investees’ other comprehensive income (loss)
|
|
2,662
|
|
|
(6,495
|
)
|
|
(2,125
|
)
|
|
6,055
|
|
||||
Defined benefit pension and postretirement plan adjustments
|
|
1,990
|
|
|
(39,803
|
)
|
|
6,093
|
|
|
(35,933
|
)
|
||||
Unrealized loss on derivative contracts
|
|
(6,294
|
)
|
|
(1,952
|
)
|
|
(599
|
)
|
|
(7,694
|
)
|
||||
Unrealized gain on available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
709
|
|
||||
TOTAL OTHER COMPREHENSIVE LOSS,
NET OF TAX |
|
(43,644
|
)
|
|
(59,983
|
)
|
|
(10,968
|
)
|
|
(81,219
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME (LOSS)
|
|
(773,183
|
)
|
|
36,042
|
|
|
(1,377,301
|
)
|
|
133,909
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
10,696
|
|
|
18,280
|
|
|
(12,658
|
)
|
|
39,258
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO FLUOR CORPORATION
|
|
$
|
(783,879
|
)
|
|
$
|
17,762
|
|
|
$
|
(1,364,643
|
)
|
|
$
|
94,651
|
|
|
|
Nine Months Ended
September 30, |
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net earnings (loss)
|
|
$
|
(1,366,333
|
)
|
|
$
|
215,128
|
|
Adjustments to reconcile net earnings (loss) to cash provided (utilized) by operating activities:
|
|
|
|
|
||||
Depreciation of fixed assets
|
|
129,014
|
|
|
150,592
|
|
||
Amortization of intangibles
|
|
13,032
|
|
|
14,327
|
|
||
(Earnings) loss from equity method investments, net of distributions
|
|
6,510
|
|
|
506
|
|
||
Gain on sale of joint venture interest
|
|
—
|
|
|
(124,942
|
)
|
||
Loss (gain) on sale of property, plant and equipment
|
|
5,690
|
|
|
(15,595
|
)
|
||
Impairment of long-lived assets
|
|
347,411
|
|
|
—
|
|
||
Amortization of stock-based awards
|
|
27,513
|
|
|
34,735
|
|
||
Deferred compensation trust
|
|
(36,989
|
)
|
|
(14,915
|
)
|
||
Deferred compensation obligation
|
|
34,827
|
|
|
19,320
|
|
||
Deferred taxes
|
|
270,996
|
|
|
30,969
|
|
||
Net retirement plan accrual (contributions)
|
|
(1,821
|
)
|
|
(16,552
|
)
|
||
Changes in operating assets and liabilities
|
|
627,009
|
|
|
(305,467
|
)
|
||
Other items
|
|
10,039
|
|
|
609
|
|
||
Cash provided (utilized) by operating activities
|
|
66,898
|
|
|
(11,285
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
||||
Purchases of marketable securities
|
|
(31,165
|
)
|
|
(317,747
|
)
|
||
Proceeds from the sales and maturities of marketable securities
|
|
197,923
|
|
|
347,131
|
|
||
Capital expenditures
|
|
(140,058
|
)
|
|
(148,671
|
)
|
||
Proceeds from disposal of property, plant and equipment
|
|
56,431
|
|
|
60,863
|
|
||
Investments in partnerships and joint ventures
|
|
(34,502
|
)
|
|
(33,799
|
)
|
||
Return of capital from partnerships and joint ventures
|
|
11,733
|
|
|
20,484
|
|
||
Proceeds from company owned life insurance
|
|
12,245
|
|
|
1,040
|
|
||
Other items
|
|
2,071
|
|
|
(1,041
|
)
|
||
Cash provided (utilized) by investing activities
|
|
74,678
|
|
|
(71,740
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
Dividends paid
|
|
(88,708
|
)
|
|
(89,193
|
)
|
||
Proceeds from issuance of 4.250% Senior Notes
|
|
—
|
|
|
598,722
|
|
||
Repayment of 3.375% Senior Notes
|
|
—
|
|
|
(503,285
|
)
|
||
Proceeds from other borrowings
|
|
21,206
|
|
|
4,555
|
|
||
Net proceeds from issuance of commercial paper
|
|
—
|
|
|
24,449
|
|
||
Debt issuance costs
|
|
—
|
|
|
(4,974
|
)
|
||
Distributions paid to noncontrolling interests
|
|
(26,123
|
)
|
|
(34,688
|
)
|
||
Capital contributions by noncontrolling interests
|
|
10,581
|
|
|
4,293
|
|
||
Taxes paid on vested restricted stock
|
|
(3,572
|
)
|
|
(5,686
|
)
|
||
Stock options exercised
|
|
1,466
|
|
|
7,170
|
|
||
Other items
|
|
(1,990
|
)
|
|
(9,737
|
)
|
||
Cash utilized by financing activities
|
|
(87,140
|
)
|
|
(8,374
|
)
|
||
Effect of exchange rate changes on cash
|
|
(14,078
|
)
|
|
(32,880
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
|
40,358
|
|
|
(124,279
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
1,764,746
|
|
|
1,804,075
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,805,104
|
|
|
$
|
1,679,796
|
|
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Earnings |
Total Shareholders' Equity
|
Noncontrolling
Interests |
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
JUNE 30, 2019 |
140,174
|
|
$
|
1,399
|
|
$
|
113,042
|
|
$
|
(510,008
|
)
|
$
|
2,769,804
|
|
$
|
2,374,237
|
|
$
|
123,252
|
|
$
|
2,497,489
|
|
Net earnings (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(741,984
|
)
|
(741,984
|
)
|
12,445
|
|
(729,539
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(41,895
|
)
|
—
|
|
(41,895
|
)
|
(1,749
|
)
|
(43,644
|
)
|
|||||||
Dividends ($0.21 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(29,678
|
)
|
(29,678
|
)
|
—
|
|
(29,678
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,551
|
)
|
(10,551
|
)
|
|||||||
Capital contributions by noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,760
|
|
2,760
|
|
|||||||
Other noncontrolling interest transactions
|
—
|
|
—
|
|
1,105
|
|
—
|
|
—
|
|
1,105
|
|
(1,722
|
)
|
(617
|
)
|
|||||||
Stock-based plan activity
|
—
|
|
—
|
|
(2,290
|
)
|
—
|
|
—
|
|
(2,290
|
)
|
—
|
|
(2,290
|
)
|
|||||||
BALANCE AS OF
SEPTEMBER 30, 2019 |
140,174
|
|
$
|
1,399
|
|
$
|
111,857
|
|
$
|
(551,903
|
)
|
$
|
1,998,142
|
|
$
|
1,559,495
|
|
$
|
124,435
|
|
$
|
1,683,930
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Earnings |
Total Shareholders' Equity
|
Noncontrolling
Interests |
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
DECEMBER 31, 2018 |
139,654
|
|
$
|
1,396
|
|
$
|
82,106
|
|
$
|
(542,478
|
)
|
$
|
3,422,157
|
|
$
|
2,963,181
|
|
$
|
154,869
|
|
$
|
3,118,050
|
|
Net earnings (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,355,218
|
)
|
(1,355,218
|
)
|
(11,115
|
)
|
(1,366,333
|
)
|
|||||||
Cumulative adjustment for the adoption of ASC 842
|
—
|
|
—
|
|
—
|
|
—
|
|
20,544
|
|
20,544
|
|
—
|
|
20,544
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
(9,425
|
)
|
—
|
|
(9,425
|
)
|
(1,543
|
)
|
(10,968
|
)
|
|||||||
Dividends ($0.63 per share)
|
—
|
|
—
|
|
218
|
|
—
|
|
(89,341
|
)
|
(89,123
|
)
|
—
|
|
(89,123
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(26,123
|
)
|
(26,123
|
)
|
|||||||
Capital contributions by noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,581
|
|
10,581
|
|
|||||||
Other noncontrolling interest transactions
|
—
|
|
—
|
|
4,188
|
|
—
|
|
—
|
|
4,188
|
|
(2,234
|
)
|
1,954
|
|
|||||||
Stock-based plan activity
|
520
|
|
3
|
|
25,345
|
|
—
|
|
—
|
|
25,348
|
|
—
|
|
25,348
|
|
|||||||
BALANCE AS OF
SEPTEMBER 30, 2019 |
140,174
|
|
$
|
1,399
|
|
$
|
111,857
|
|
$
|
(551,903
|
)
|
$
|
1,998,142
|
|
$
|
1,559,495
|
|
$
|
124,435
|
|
$
|
1,683,930
|
|
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Earnings |
Total Shareholders' Equity
|
Noncontrolling
Interests |
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
JUNE 30, 2018 |
140,700
|
|
$
|
1,406
|
|
$
|
111,368
|
|
$
|
(422,595
|
)
|
$
|
3,353,176
|
|
$
|
3,043,355
|
|
$
|
141,485
|
|
$
|
3,184,840
|
|
Net earnings
|
—
|
|
—
|
|
—
|
|
—
|
|
77,345
|
|
77,345
|
|
18,680
|
|
96,025
|
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(59,583
|
)
|
—
|
|
(59,583
|
)
|
(400
|
)
|
(59,983
|
)
|
|||||||
Dividends ($0.21 per share)
|
—
|
|
—
|
|
(128
|
)
|
—
|
|
(28,993
|
)
|
(29,121
|
)
|
—
|
|
(29,121
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,436
|
)
|
(2,436
|
)
|
|||||||
Capital contributions by noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
533
|
|
533
|
|
|||||||
Other noncontrolling interest transactions
|
—
|
|
—
|
|
1,374
|
|
—
|
|
—
|
|
1,374
|
|
(957
|
)
|
417
|
|
|||||||
Stock-based plan activity
|
49
|
|
1
|
|
9,653
|
|
—
|
|
—
|
|
9,654
|
|
—
|
|
9,654
|
|
|||||||
BALANCE AS OF
SEPTEMBER 30, 2018 |
140,749
|
|
$
|
1,407
|
|
$
|
122,267
|
|
$
|
(482,178
|
)
|
$
|
3,401,528
|
|
$
|
3,043,024
|
|
$
|
156,905
|
|
$
|
3,199,929
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Earnings |
Total Shareholders' Equity
|
Noncontrolling
Interests |
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
DECEMBER 31, 2017 |
139,918
|
|
$
|
1,399
|
|
$
|
88,222
|
|
$
|
(402,242
|
)
|
$
|
3,654,931
|
|
$
|
3,342,310
|
|
$
|
150,089
|
|
$
|
3,492,399
|
|
Net earnings
|
—
|
|
—
|
|
—
|
|
—
|
|
174,587
|
|
174,587
|
|
40,541
|
|
215,128
|
|
|||||||
Cumulative adjustment for the adoption of ASC 606
|
—
|
|
—
|
|
—
|
|
—
|
|
(338,738
|
)
|
(338,738
|
)
|
(963
|
)
|
(339,701
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(79,936
|
)
|
—
|
|
(79,936
|
)
|
(1,283
|
)
|
(81,219
|
)
|
|||||||
Dividends ($0.63 per share)
|
—
|
|
—
|
|
(250
|
)
|
—
|
|
(89,252
|
)
|
(89,502
|
)
|
—
|
|
(89,502
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(34,688
|
)
|
(34,688
|
)
|
|||||||
Capital contributions by noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,293
|
|
4,293
|
|
|||||||
Other noncontrolling interest transactions
|
—
|
|
—
|
|
3,936
|
|
—
|
|
—
|
|
3,936
|
|
(1,084
|
)
|
2,852
|
|
|||||||
Stock-based plan activity
|
831
|
|
8
|
|
30,359
|
|
—
|
|
—
|
|
30,367
|
|
—
|
|
30,367
|
|
|||||||
BALANCE AS OF
SEPTEMBER 30, 2018 |
140,749
|
|
$
|
1,407
|
|
$
|
122,267
|
|
$
|
(482,178
|
)
|
$
|
3,401,528
|
|
$
|
3,043,024
|
|
$
|
156,905
|
|
$
|
3,199,929
|
|
Lease Cost / (Sublease Income)
|
Three Months Ended
September 30, 2019 |
Nine Months Ended
September 30, 2019 |
||||||||
(in thousands)
|
|
|
|
|
|
|
||||
Operating lease cost
|
|
$
|
20,280
|
|
|
|
$
|
62,316
|
|
|
Finance lease cost
|
|
|
|
|
|
|
||||
Amortization of right-of-use assets
|
|
350
|
|
|
|
1,127
|
|
|
||
Interest on lease liabilities
|
|
14
|
|
|
|
54
|
|
|
||
Variable lease cost(1)
|
|
4,532
|
|
|
|
14,013
|
|
|
||
Short-term lease cost
|
|
28,580
|
|
|
|
85,780
|
|
|
||
Sublease income
|
|
(1,915
|
)
|
|
|
(5,258
|
)
|
|
||
Total lease cost
|
|
$
|
51,841
|
|
|
|
$
|
158,032
|
|
|
(1)
|
Primarily relates to rent escalation due to cost of living indexation and payments for property taxes, insurance or common area maintenance based on actual assessments.
|
Lease Assets / Liabilities
|
Balance Sheet Classification
|
September 30, 2019
|
||||
(in thousands)
|
|
|
|
|
||
Right-of-use assets
|
|
|
|
|
||
Operating lease assets
|
Other assets
|
|
$
|
253,336
|
|
|
Finance lease assets
|
Other assets
|
|
1,062
|
|
|
|
Total right-of-use assets
|
|
|
$
|
254,398
|
|
|
Lease liabilities
|
|
|
|
|
||
Operating lease liabilities, current
|
Other accrued liabilities
|
|
$
|
61,006
|
|
|
Operating lease liabilities, noncurrent
|
Noncurrent liabilities
|
|
217,060
|
|
|
|
Finance lease liabilities, current
|
Other accrued liabilities
|
|
471
|
|
|
|
Finance lease liabilities, noncurrent
|
Noncurrent liabilities
|
|
700
|
|
|
|
Total lease liabilities
|
|
|
$
|
279,237
|
|
|
|
Nine Months Ended
September 30, 2019 |
||||
(in thousands)
|
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
62,779
|
|
|
Operating cash flows from finance leases
|
|
54
|
|
|
|
Financing cash flows from finance leases
|
|
1,237
|
|
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
55,946
|
|
|
|
Right-of-use assets obtained in exchange for new finance lease liabilities
|
|
—
|
|
|
|
Weighted-average remaining lease term - operating leases
|
|
6.95 years
|
|
|
|
Weighted-average remaining lease term - finance leases
|
|
2.27 years
|
|
|
|
Weighted-average discount rate - operating leases
|
|
3.39
|
%
|
|
|
Weighted-average discount rate - finance leases
|
|
3.36
|
%
|
|
Year Ended December 31,
|
Operating Leases
|
|
Finance
Leases
|
||||
(in thousands)
|
|
|
|
||||
Remainder of 2019
|
$
|
22,598
|
|
|
$
|
62
|
|
2020
|
69,026
|
|
|
812
|
|
||
2021
|
50,060
|
|
|
186
|
|
||
2022
|
39,683
|
|
|
84
|
|
||
2023
|
31,893
|
|
|
77
|
|
||
Thereafter
|
97,401
|
|
|
—
|
|
||
Total lease payments
|
$
|
310,661
|
|
|
$
|
1,221
|
|
Less: Interest
|
(32,595
|
)
|
|
(50
|
)
|
||
Present value of lease liabilities
|
$
|
278,066
|
|
|
$
|
1,171
|
|
|
|
Three Months Ended
September 30, 2019 |
|
Three Months Ended
September 30, 2018 |
||||||||||||||||||||
(in thousands)
|
|
Before-Tax
Amount
|
|
Tax
Benefit
(Expense)
|
|
Net-of-Tax
Amount
|
|
Before-Tax
Amount
|
|
Tax
Benefit
(Expense)
|
|
Net-of-Tax
Amount
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
|
$
|
(47,247
|
)
|
|
$
|
5,245
|
|
|
$
|
(42,002
|
)
|
|
$
|
(10,357
|
)
|
|
$
|
(1,376
|
)
|
|
$
|
(11,733
|
)
|
Ownership share of equity method investees’ other comprehensive income (loss)
|
|
3,593
|
|
|
(931
|
)
|
|
2,662
|
|
|
(8,051
|
)
|
|
1,556
|
|
|
(6,495
|
)
|
||||||
Defined benefit pension and postretirement plan adjustments
|
|
2,126
|
|
|
(136
|
)
|
|
1,990
|
|
|
(48,463
|
)
|
|
8,660
|
|
|
(39,803
|
)
|
||||||
Unrealized loss on derivative contracts
|
|
(8,031
|
)
|
|
1,737
|
|
|
(6,294
|
)
|
|
(2,189
|
)
|
|
237
|
|
|
(1,952
|
)
|
||||||
Total other comprehensive income (loss)
|
|
(49,559
|
)
|
|
5,915
|
|
|
(43,644
|
)
|
|
(69,060
|
)
|
|
9,077
|
|
|
(59,983
|
)
|
||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests
|
|
(1,749
|
)
|
|
—
|
|
|
(1,749
|
)
|
|
(400
|
)
|
|
—
|
|
|
(400
|
)
|
||||||
Other comprehensive income (loss) attributable to Fluor Corporation
|
|
$
|
(47,810
|
)
|
|
$
|
5,915
|
|
|
$
|
(41,895
|
)
|
|
$
|
(68,660
|
)
|
|
$
|
9,077
|
|
|
$
|
(59,583
|
)
|
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||||||||||
(in thousands)
|
|
Before-Tax
Amount |
|
Tax
Benefit (Expense) |
|
Net-of-Tax
Amount |
|
Before-Tax
Amount |
|
Tax
Benefit (Expense) |
|
Net-of-Tax
Amount |
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
|
$
|
(19,621
|
)
|
|
$
|
5,284
|
|
|
$
|
(14,337
|
)
|
|
$
|
(59,024
|
)
|
|
$
|
14,668
|
|
|
$
|
(44,356
|
)
|
Ownership share of equity method investees’ other comprehensive income (loss)
|
|
(3,302
|
)
|
|
1,177
|
|
|
(2,125
|
)
|
|
7,560
|
|
|
(1,505
|
)
|
|
6,055
|
|
||||||
Defined benefit pension and postretirement plan adjustments
|
|
6,518
|
|
|
(425
|
)
|
|
6,093
|
|
|
(43,580
|
)
|
|
7,647
|
|
|
(35,933
|
)
|
||||||
Unrealized loss on derivative contracts
|
|
(1
|
)
|
|
(598
|
)
|
|
(599
|
)
|
|
(9,274
|
)
|
|
1,580
|
|
|
(7,694
|
)
|
||||||
Unrealized gain on available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,134
|
|
|
(425
|
)
|
|
709
|
|
||||||
Total other comprehensive income (loss)
|
|
(16,406
|
)
|
|
5,438
|
|
|
(10,968
|
)
|
|
(103,184
|
)
|
|
21,965
|
|
|
(81,219
|
)
|
||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests
|
|
(1,543
|
)
|
|
—
|
|
|
(1,543
|
)
|
|
(1,283
|
)
|
|
—
|
|
|
(1,283
|
)
|
||||||
Other comprehensive income (loss) attributable to Fluor Corporation
|
|
$
|
(14,863
|
)
|
|
$
|
5,438
|
|
|
$
|
(9,425
|
)
|
|
$
|
(101,901
|
)
|
|
$
|
21,965
|
|
|
$
|
(79,936
|
)
|
(in thousands)
|
Foreign
Currency Translation |
|
Ownership
Share of Equity Method Investees’ Other Comprehensive Income (Loss) |
|
Defined
Benefit Pension and Postretirement Plans |
|
Unrealized
Gain (Loss) on Derivative Contracts |
|
Accumulated
Other Comprehensive Income (Loss), Net |
||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance as of June 30, 2019
|
$
|
(281,288
|
)
|
|
$
|
(28,459
|
)
|
|
$
|
(200,546
|
)
|
|
$
|
285
|
|
|
$
|
(510,008
|
)
|
Other comprehensive income (loss) before reclassifications
|
(40,253
|
)
|
|
2,518
|
|
|
—
|
|
|
(6,844
|
)
|
|
(44,579
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
144
|
|
|
1,990
|
|
|
550
|
|
|
2,684
|
|
|||||
Net other comprehensive income (loss)
|
(40,253
|
)
|
|
2,662
|
|
|
1,990
|
|
|
(6,294
|
)
|
|
(41,895
|
)
|
|||||
Balance as of September 30, 2019
|
$
|
(321,541
|
)
|
|
$
|
(25,797
|
)
|
|
$
|
(198,556
|
)
|
|
$
|
(6,009
|
)
|
|
$
|
(551,903
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of June 30, 2019
|
$
|
(3,495
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,495
|
)
|
Other comprehensive income (loss) before reclassifications
|
(1,749
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net other comprehensive income (loss)
|
(1,749
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
|||||
Balance as of September 30, 2019
|
$
|
(5,244
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,244
|
)
|
(in thousands)
|
Foreign
Currency Translation |
|
Ownership
Share of Equity Method Investees’ Other Comprehensive Income (Loss) |
|
Defined
Benefit Pension and Postretirement Plans |
|
Unrealized
Gain (Loss) on Derivative Contracts |
|
Accumulated
Other Comprehensive Income (Loss), Net |
||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance as of December 31, 2018
|
$
|
(308,747
|
)
|
|
$
|
(23,672
|
)
|
|
$
|
(204,649
|
)
|
|
$
|
(5,410
|
)
|
|
$
|
(542,478
|
)
|
Other comprehensive income (loss) before reclassifications
|
(12,794
|
)
|
|
(2,552
|
)
|
|
—
|
|
|
(2,519
|
)
|
|
(17,865
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
427
|
|
|
6,093
|
|
|
1,920
|
|
|
8,440
|
|
|||||
Net other comprehensive income (loss)
|
(12,794
|
)
|
|
(2,125
|
)
|
|
6,093
|
|
|
(599
|
)
|
|
(9,425
|
)
|
|||||
Balance as of September 30, 2019
|
$
|
(321,541
|
)
|
|
$
|
(25,797
|
)
|
|
$
|
(198,556
|
)
|
|
$
|
(6,009
|
)
|
|
$
|
(551,903
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of December 31, 2018
|
$
|
(3,701
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,701
|
)
|
Other comprehensive income (loss) before reclassifications
|
(1,543
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,543
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net other comprehensive income (loss)
|
(1,543
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,543
|
)
|
|||||
Balance as of September 30, 2019
|
$
|
(5,244
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,244
|
)
|
(in thousands)
|
Foreign
Currency Translation |
|
Ownership
Share of Equity Method Investees’ Other Comprehensive Income (Loss) |
|
Defined
Benefit Pension and Postretirement Plans |
|
Unrealized
Gain (Loss) on Derivative Contracts |
|
Unrealized
Gain (Loss) on Available-for- Sale Securities |
|
Accumulated
Other Comprehensive Income (Loss), Net |
||||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of June 30, 2018
|
$
|
(242,917
|
)
|
|
$
|
(20,064
|
)
|
|
$
|
(148,188
|
)
|
|
$
|
(11,426
|
)
|
|
$
|
—
|
|
|
$
|
(422,595
|
)
|
Other comprehensive income (loss) before reclassifications
|
(11,333
|
)
|
|
(6,646
|
)
|
|
(56,191
|
)
|
|
(3,736
|
)
|
|
—
|
|
|
(77,906
|
)
|
||||||
Amounts reclassified from AOCI
|
—
|
|
|
151
|
|
|
16,388
|
|
|
1,784
|
|
|
—
|
|
|
18,323
|
|
||||||
Net other comprehensive income (loss)
|
(11,333
|
)
|
|
(6,495
|
)
|
|
(39,803
|
)
|
|
(1,952
|
)
|
|
—
|
|
|
(59,583
|
)
|
||||||
Balance as of September 30, 2018
|
$
|
(254,250
|
)
|
|
$
|
(26,559
|
)
|
|
$
|
(187,991
|
)
|
|
$
|
(13,378
|
)
|
|
$
|
—
|
|
|
$
|
(482,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance as of June 30, 2018
|
$
|
(2,345
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,345
|
)
|
Other comprehensive income (loss) before reclassifications
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
||||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income (loss)
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
||||||
Balance as of September 30, 2018
|
$
|
(2,745
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,745
|
)
|
(in thousands)
|
Foreign
Currency Translation |
|
Ownership
Share of Equity Method Investees’ Other Comprehensive Income (Loss) |
|
Defined
Benefit Pension and Postretirement Plans |
|
Unrealized
Gain (Loss) on Derivative Contracts |
|
Unrealized
Gain (Loss) on Available-for- Sale Securities |
|
Accumulated
Other Comprehensive Income (Loss), Net |
||||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2017
|
$
|
(211,177
|
)
|
|
$
|
(32,614
|
)
|
|
$
|
(152,058
|
)
|
|
$
|
(5,684
|
)
|
|
$
|
(709
|
)
|
|
$
|
(402,242
|
)
|
Other comprehensive income (loss) before reclassifications
|
(43,073
|
)
|
|
5,247
|
|
|
(56,191
|
)
|
|
(10,785
|
)
|
|
—
|
|
|
(104,802
|
)
|
||||||
Amounts reclassified from AOCI
|
—
|
|
|
808
|
|
|
20,258
|
|
|
3,091
|
|
|
709
|
|
|
24,866
|
|
||||||
Net other comprehensive income (loss)
|
(43,073
|
)
|
|
6,055
|
|
|
(35,933
|
)
|
|
(7,694
|
)
|
|
709
|
|
|
(79,936
|
)
|
||||||
Balance as of September 30, 2018
|
$
|
(254,250
|
)
|
|
$
|
(26,559
|
)
|
|
$
|
(187,991
|
)
|
|
$
|
(13,378
|
)
|
|
$
|
—
|
|
|
$
|
(482,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of December 31, 2017
|
$
|
(1,462
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,462
|
)
|
Other comprehensive income (loss) before reclassifications
|
(1,283
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,283
|
)
|
||||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income (loss)
|
(1,283
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,283
|
)
|
||||||
Balance as of September 30, 2018
|
$
|
(2,745
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,745
|
)
|
|
|
Location in Condensed Consolidated
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in thousands)
|
|
Statement of Operations
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Component of AOCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ownership share of equity method investees’ other comprehensive loss
|
|
Total cost of revenue
|
|
$
|
(192
|
)
|
|
$
|
(200
|
)
|
|
$
|
(569
|
)
|
|
$
|
(1,099
|
)
|
Income tax benefit
|
|
Income tax expense
|
|
48
|
|
|
49
|
|
|
142
|
|
|
291
|
|
||||
Net of tax
|
|
|
|
$
|
(144
|
)
|
|
$
|
(151
|
)
|
|
$
|
(427
|
)
|
|
$
|
(808
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Defined benefit pension plan adjustments
|
|
Corporate general and administrative expense
|
|
$
|
(2,126
|
)
|
|
$
|
(20,062
|
)
|
|
$
|
(6,518
|
)
|
|
$
|
(24,945
|
)
|
Income tax benefit
|
|
Income tax expense
|
|
136
|
|
|
3,674
|
|
|
425
|
|
|
4,687
|
|
||||
Net of tax
|
|
|
|
$
|
(1,990
|
)
|
|
$
|
(16,388
|
)
|
|
$
|
(6,093
|
)
|
|
$
|
(20,258
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
|
Various accounts(1)
|
|
$
|
(496
|
)
|
|
$
|
(2,257
|
)
|
|
$
|
(1,958
|
)
|
|
$
|
(3,375
|
)
|
Interest rate contracts
|
|
Interest expense
|
|
(419
|
)
|
|
(419
|
)
|
|
(1,258
|
)
|
|
(1,258
|
)
|
||||
Income tax benefit
|
|
Income tax expense
|
|
365
|
|
|
892
|
|
|
1,296
|
|
|
1,542
|
|
||||
Net of tax
|
|
|
|
$
|
(550
|
)
|
|
$
|
(1,784
|
)
|
|
$
|
(1,920
|
)
|
|
$
|
(3,091
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized loss on available-for-sale securities
|
|
Corporate general and administrative expense
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,134
|
)
|
Income tax benefit
|
|
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
425
|
|
||||
Net of tax
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(709
|
)
|
(1)
|
Gains and losses on foreign currency derivative contracts were reclassified to "Total cost of revenue" and "Corporate general and administrative expense."
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Amounts attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(781,605
|
)
|
|
$
|
68,581
|
|
|
$
|
(1,424,225
|
)
|
|
$
|
69,680
|
|
Net earnings from discontinued operations
|
|
39,621
|
|
|
8,764
|
|
|
69,007
|
|
|
104,907
|
|
||||
Net earnings (loss)
|
|
$
|
(741,984
|
)
|
|
$
|
77,345
|
|
|
$
|
(1,355,218
|
)
|
|
$
|
174,587
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
140,163
|
|
|
140,713
|
|
|
140,027
|
|
|
140,489
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(5.57
|
)
|
|
$
|
0.49
|
|
|
$
|
(10.17
|
)
|
|
$
|
0.49
|
|
Net earnings from discontinued operations
|
|
0.28
|
|
|
0.06
|
|
|
0.49
|
|
|
0.75
|
|
||||
Net earnings (loss)
|
|
$
|
(5.29
|
)
|
|
$
|
0.55
|
|
|
$
|
(9.68
|
)
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
140,163
|
|
|
140,713
|
|
|
140,027
|
|
|
140,489
|
|
||||
Diluted effect:
|
|
|
|
|
|
|
|
|
||||||||
Employee stock options, restricted stock units and shares and Value Driver Incentive units(1)
|
|
—
|
|
|
836
|
|
|
—
|
|
|
877
|
|
||||
Weighted average diluted shares outstanding
|
|
140,163
|
|
|
141,549
|
|
|
140,027
|
|
|
141,366
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
|
$
|
(5.57
|
)
|
|
$
|
0.49
|
|
|
$
|
(10.17
|
)
|
|
$
|
0.49
|
|
Net earnings from discontinued operations
|
|
0.28
|
|
|
0.06
|
|
|
0.49
|
|
|
0.74
|
|
||||
Net earnings (loss)
|
|
$
|
(5.29
|
)
|
|
$
|
0.55
|
|
|
$
|
(9.68
|
)
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive securities not included above
|
|
5,490
|
|
|
3,988
|
|
|
4,910
|
|
|
4,063
|
|
(1)
|
Employee stock options, restricted stock units and shares, and Value Driver Incentive units of 489,000 and 585,000 were excluded from weighted average diluted shares outstanding for the three and nine months ended September 30, 2019, respectively, as the shares would have an anti-dilutive effect on the net loss.
|
•
|
Level 1 — quoted prices in active markets for identical assets and liabilities
|
•
|
Level 2 — inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly
|
•
|
Level 3 — unobservable inputs
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
Fair Value Hierarchy
|
|
Fair Value Hierarchy
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deferred compensation trusts(1)
|
|
$
|
24,288
|
|
|
$
|
24,288
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,690
|
|
|
$
|
26,690
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency contracts
|
|
9,942
|
|
|
—
|
|
|
9,942
|
|
|
—
|
|
|
17,346
|
|
|
—
|
|
|
17,346
|
|
|
—
|
|
||||||||
Commodity contracts
|
|
2,421
|
|
|
—
|
|
|
2,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative liabilities(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency contracts
|
|
$
|
15,386
|
|
|
$
|
—
|
|
|
$
|
15,386
|
|
|
$
|
—
|
|
|
$
|
18,342
|
|
|
$
|
—
|
|
|
$
|
18,342
|
|
|
$
|
—
|
|
Commodity contracts
|
|
1,674
|
|
|
—
|
|
|
1,674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Consists of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange.
|
(2)
|
See Note 9 for the classification of foreign currency and commodity contracts on the Condensed Consolidated Balance Sheet. Foreign currency and commodity contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows.
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
(in thousands)
|
Fair Value
Hierarchy
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash(1)
|
Level 1
|
|
$
|
1,017,737
|
|
|
$
|
1,017,737
|
|
|
$
|
1,091,868
|
|
|
$
|
1,091,868
|
|
Cash equivalents(2)
|
Level 2
|
|
787,367
|
|
|
787,367
|
|
|
672,878
|
|
|
672,878
|
|
||||
Marketable securities, current(3)
|
Level 2
|
|
47,873
|
|
|
47,873
|
|
|
214,828
|
|
|
214,828
|
|
||||
Notes receivable, including noncurrent portion(4)
|
Level 3
|
|
38,906
|
|
|
38,906
|
|
|
32,645
|
|
|
32,645
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
1.750% Senior Notes(5)
|
Level 2
|
|
$
|
545,062
|
|
|
$
|
557,378
|
|
|
$
|
569,372
|
|
|
$
|
589,864
|
|
3.5% Senior Notes(5)
|
Level 2
|
|
495,000
|
|
|
499,815
|
|
|
494,280
|
|
|
484,790
|
|
||||
4.250% Senior Notes(5)
|
Level 2
|
|
594,345
|
|
|
604,038
|
|
|
593,871
|
|
|
583,200
|
|
||||
Other borrowings, including noncurrent portion(6)
|
Level 2
|
|
47,737
|
|
|
47,737
|
|
|
30,929
|
|
|
30,929
|
|
(1)
|
Cash consists of bank deposits. Carrying amounts approximate fair value.
|
(2)
|
Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments.
|
(3)
|
Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.
|
(4)
|
Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment.
|
(5)
|
The fair value of the 1.750% Senior Notes, 3.5% Senior Notes and 4.250% Senior Notes was estimated based on quoted market prices for similar issues.
|
(6)
|
Other borrowings primarily represent bank loans and other financing arrangements which mature within one year. The carrying amount of borrowings under these arrangements approximates fair value because of the short-term maturity.
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
(in thousands)
|
|
Balance Sheet
Location
|
|
September 30,
2019 |
|
December 31,
2018 |
|
Balance Sheet
Location
|
|
September 30,
2019 |
|
December 31,
2018 |
||||||||
Foreign currency contracts
|
|
Other current assets
|
|
$
|
7,238
|
|
|
$
|
12,861
|
|
|
Other accrued liabilities
|
|
$
|
7,964
|
|
|
$
|
16,582
|
|
Commodity contracts
|
|
Other current assets
|
|
2,421
|
|
|
—
|
|
|
Other accrued liabilities
|
|
—
|
|
|
—
|
|
||||
Foreign currency contracts
|
|
Other assets
|
|
1,719
|
|
|
2,669
|
|
|
Noncurrent liabilities
|
|
7,423
|
|
|
1,698
|
|
||||
Total
|
|
|
|
$
|
11,378
|
|
|
$
|
15,530
|
|
|
|
|
$
|
15,387
|
|
|
$
|
18,280
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
Cash Flow Hedges (in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Foreign currency contracts
|
(8,611
|
)
|
|
(3,736
|
)
|
|
(4,285
|
)
|
|
(10,785
|
)
|
Commodity contracts
|
1,767
|
|
|
—
|
|
|
1,766
|
|
|
—
|
|
|
(6,844
|
)
|
|
(3,736
|
)
|
|
(2,519
|
)
|
|
(10,785
|
)
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Cash Flow Hedges (in thousands)
|
|
Location of Gain (Loss)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Foreign currency contracts
|
|
Total cost of revenue
|
|
$
|
(288
|
)
|
|
$
|
(1,522
|
)
|
|
$
|
(1,134
|
)
|
|
$
|
(2,305
|
)
|
Interest rate contracts
|
|
Interest expense
|
|
(262
|
)
|
|
(262
|
)
|
|
(786
|
)
|
|
(786
|
)
|
||||
Total
|
|
|
|
$
|
(550
|
)
|
|
$
|
(1,784
|
)
|
|
$
|
(1,920
|
)
|
|
$
|
(3,091
|
)
|
|
|
Location in Condensed Consolidated Statement of Operations
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in thousands)
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Service cost
|
|
Total cost of revenue
|
|
$
|
3,917
|
|
|
$
|
4,436
|
|
|
$
|
11,846
|
|
|
$
|
13,644
|
|
Interest cost
|
|
Corporate general and administrative expense
|
|
4,832
|
|
|
5,537
|
|
|
14,731
|
|
|
17,118
|
|
||||
Expected return on assets
|
|
Corporate general and administrative expense
|
|
(8,068
|
)
|
|
(9,685
|
)
|
|
(24,540
|
)
|
|
(29,919
|
)
|
||||
Amortization of prior service credit
|
|
Corporate general and administrative expense
|
|
(220
|
)
|
|
(230
|
)
|
|
(667
|
)
|
|
(709
|
)
|
||||
Recognized net actuarial loss
|
|
Corporate general and administrative expense
|
|
2,529
|
|
|
1,803
|
|
|
7,736
|
|
|
5,573
|
|
||||
Loss on settlement
|
|
Corporate general and administrative expense
|
|
—
|
|
|
18,641
|
|
|
—
|
|
|
20,534
|
|
||||
Net periodic pension expense
|
|
|
|
$
|
2,990
|
|
|
$
|
20,502
|
|
|
$
|
9,106
|
|
|
$
|
26,241
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
External Revenue (in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Energy & Chemicals
|
|
$
|
1,611.6
|
|
|
$
|
1,902.3
|
|
|
$
|
4,485.2
|
|
|
$
|
5,859.8
|
|
Mining & Industrial
|
|
1,374.0
|
|
|
973.3
|
|
|
3,703.6
|
|
|
2,377.4
|
|
||||
Infrastructure & Power
|
|
392.5
|
|
|
412.3
|
|
|
951.8
|
|
|
1,250.6
|
|
||||
Diversified Services
|
|
521.7
|
|
|
526.3
|
|
|
1,525.0
|
|
|
1,706.9
|
|
||||
Other
|
|
37.9
|
|
|
28.0
|
|
|
(43.4
|
)
|
|
73.6
|
|
||||
Total external revenue
|
|
$
|
3,937.7
|
|
|
$
|
3,842.2
|
|
|
$
|
10,622.2
|
|
|
$
|
11,268.3
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Segment Profit (Loss) (in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Energy & Chemicals
|
|
$
|
84.9
|
|
|
$
|
50.2
|
|
|
$
|
(124.9
|
)
|
|
$
|
253.0
|
|
Mining & Industrial
|
|
56.9
|
|
|
20.9
|
|
|
129.1
|
|
|
56.9
|
|
||||
Infrastructure & Power
|
|
1.0
|
|
|
102.3
|
|
|
(193.3
|
)
|
|
(13.2
|
)
|
||||
Diversified Services
|
|
10.8
|
|
|
22.6
|
|
|
22.4
|
|
|
51.5
|
|
||||
Other
|
|
(95.8
|
)
|
|
(22.9
|
)
|
|
(370.0
|
)
|
|
(71.2
|
)
|
||||
Total segment profit (loss)
|
|
$
|
57.8
|
|
|
$
|
173.1
|
|
|
$
|
(536.7
|
)
|
|
$
|
277.0
|
|
Reconciliation of Total Segment Profit (Loss) to Earnings (Loss) from Continuing Operations Before Taxes
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Total segment profit (loss)
|
|
$
|
57.8
|
|
|
$
|
173.1
|
|
|
$
|
(536.7
|
)
|
|
$
|
277.0
|
|
Corporate general and administrative expense
|
|
(10.4
|
)
|
|
(61.1
|
)
|
|
(115.4
|
)
|
|
(134.7
|
)
|
||||
Impairment, restructuring and other exit costs
|
|
(334.0
|
)
|
|
—
|
|
|
(388.0
|
)
|
|
—
|
|
||||
Interest income (expense), net
|
|
(5.0
|
)
|
|
(14.7
|
)
|
|
(15.9
|
)
|
|
(33.3
|
)
|
||||
Earnings (loss) attributable to noncontrolling interests from continuing operations
|
|
10.3
|
|
|
14.2
|
|
|
(18.9
|
)
|
|
31.5
|
|
||||
Earnings (loss) from continuing operations before taxes
|
|
$
|
(281.3
|
)
|
|
$
|
111.5
|
|
|
$
|
(1,074.9
|
)
|
|
$
|
140.5
|
|
Total Assets by Segment (in millions)
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
Energy & Chemicals
|
|
$
|
1,170.5
|
|
|
$
|
1,525.1
|
|
Mining & Industrial
|
|
547.5
|
|
|
694.8
|
|
||
Infrastructure & Power
|
|
439.0
|
|
|
498.4
|
|
||
Diversified Services
|
|
1,322.2
|
|
|
1,414.6
|
|
||
Other
|
|
46.3
|
|
|
104.6
|
|
||
Corporate
|
|
3,361.0
|
|
|
3,513.9
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
External Revenue (in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
United States
|
|
$
|
1,287.7
|
|
|
$
|
1,292.6
|
|
|
$
|
3,434.3
|
|
|
$
|
4,466.3
|
|
Canada
|
|
379.8
|
|
|
77.7
|
|
|
880.6
|
|
|
182.1
|
|
||||
Asia Pacific (includes Australia)
|
|
489.1
|
|
|
413.5
|
|
|
1,390.9
|
|
|
1,042.1
|
|
||||
Europe
|
|
839.1
|
|
|
1,268.8
|
|
|
2,400.5
|
|
|
3,544.3
|
|
||||
Central and South America
|
|
736.6
|
|
|
464.5
|
|
|
1,841.4
|
|
|
1,038.4
|
|
||||
Middle East and Africa
|
|
205.4
|
|
|
325.1
|
|
|
674.5
|
|
|
995.1
|
|
||||
Total external revenue
|
|
$
|
3,937.7
|
|
|
$
|
3,842.2
|
|
|
$
|
10,622.2
|
|
|
$
|
11,268.3
|
|
(in millions)
|
September 30, 2019
|
||
Within 1 year
|
$
|
11,967
|
|
1 to 2 years
|
10,116
|
|
|
Thereafter
|
5,946
|
|
|
Total remaining unsatisfied performance obligations(1)
|
$
|
28,029
|
|
(in thousands)
|
Severance
|
Lease Exit Costs
|
Other
|
Total
|
||||||||
Balance as of January 1, 2019
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Restructuring charges accrued during the period
|
34,617
|
|
5,289
|
|
327
|
|
40,233
|
|
||||
Cash payments / settlements during the period
|
(13,987
|
)
|
(93
|
)
|
(568
|
)
|
(14,648
|
)
|
||||
Currency translation
|
(568
|
)
|
—
|
|
—
|
|
(568
|
)
|
||||
Balance as of September 30, 2019
|
$
|
20,062
|
|
$
|
5,196
|
|
$
|
(241
|
)
|
$
|
25,017
|
|
|
|
Three Months Ended
September 30, 2019 |
|
Three Months Ended
September 30, 2018 |
||||||||||||||||||||||||||||
(in thousands)
|
|
Government
|
|
AMECO
|
|
Other
|
|
Total
|
|
Government
|
|
AMECO
|
|
Other
|
|
Total
|
||||||||||||||||
Revenue
|
|
$
|
718,153
|
|
|
$
|
73,102
|
|
|
$
|
—
|
|
|
$
|
791,255
|
|
|
$
|
754,543
|
|
|
$
|
61,177
|
|
|
$
|
—
|
|
|
$
|
815,720
|
|
Cost of revenue
|
|
693,750
|
|
|
70,546
|
|
|
—
|
|
|
764,296
|
|
|
718,219
|
|
|
60,068
|
|
|
—
|
|
|
778,287
|
|
||||||||
Corporate general and administrative expense
|
|
603
|
|
|
40
|
|
|
(27,848
|
)
|
|
(27,205
|
)
|
|
594
|
|
|
87
|
|
|
1,923
|
|
|
2,604
|
|
||||||||
Interest expense (income), net
|
|
(123
|
)
|
|
(107
|
)
|
|
—
|
|
|
(230
|
)
|
|
(64
|
)
|
|
(125
|
)
|
|
—
|
|
|
(189
|
)
|
||||||||
Total cost and expenses
|
|
694,230
|
|
|
70,479
|
|
|
(27,848
|
)
|
|
736,861
|
|
|
718,749
|
|
|
60,030
|
|
|
1,923
|
|
|
780,702
|
|
||||||||
Earnings (loss) before taxes from discontinued operations
|
|
23,923
|
|
|
2,623
|
|
|
27,848
|
|
|
54,394
|
|
|
35,794
|
|
|
1,147
|
|
|
(1,923
|
)
|
|
35,018
|
|
||||||||
Income tax expense (benefit)
|
|
5,570
|
|
|
580
|
|
|
6,438
|
|
|
12,588
|
|
|
23,067
|
|
|
(852
|
)
|
|
(442
|
)
|
|
21,773
|
|
||||||||
Net earnings (loss) from discontinued operations
|
|
18,353
|
|
|
2,043
|
|
|
21,410
|
|
|
41,806
|
|
|
12,727
|
|
|
1,999
|
|
|
(1,481
|
)
|
|
13,245
|
|
||||||||
Less: Net earnings attributable to noncontrolling interests from discontinued operations
|
|
2,185
|
|
|
—
|
|
|
—
|
|
|
2,185
|
|
|
4,481
|
|
|
—
|
|
|
—
|
|
|
4,481
|
|
||||||||
Net earnings (loss) attributable to Fluor Corporation from discontinued operations
|
|
$
|
16,168
|
|
|
$
|
2,043
|
|
|
$
|
21,410
|
|
|
$
|
39,621
|
|
|
$
|
8,246
|
|
|
$
|
1,999
|
|
|
$
|
(1,481
|
)
|
|
$
|
8,764
|
|
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||||||||||||||||||
(in thousands)
|
|
Government
|
|
AMECO
|
|
Other
|
|
Total
|
|
Government
|
|
AMECO
|
|
Other
|
|
Total
|
||||||||||||||||
Revenue
|
|
$
|
2,196,176
|
|
|
$
|
197,708
|
|
|
$
|
—
|
|
|
$
|
2,393,884
|
|
|
$
|
2,907,000
|
|
|
$
|
190,217
|
|
|
$
|
—
|
|
|
$
|
3,097,217
|
|
Cost of revenue
|
|
2,102,747
|
|
|
211,913
|
|
|
—
|
|
|
2,314,660
|
|
|
2,740,053
|
|
|
170,406
|
|
|
—
|
|
|
2,910,459
|
|
||||||||
Corporate general and administrative expense
|
|
2,735
|
|
|
189
|
|
|
(22,929
|
)
|
|
(20,005
|
)
|
|
3,235
|
|
|
242
|
|
|
3,151
|
|
|
6,628
|
|
||||||||
Interest expense (income), net
|
|
(1,101
|
)
|
|
(280
|
)
|
|
—
|
|
|
(1,381
|
)
|
|
(208
|
)
|
|
(282
|
)
|
|
—
|
|
|
(490
|
)
|
||||||||
Total cost and expenses
|
|
2,104,381
|
|
|
211,822
|
|
|
(22,929
|
)
|
|
2,293,274
|
|
|
2,743,080
|
|
|
170,366
|
|
|
3,151
|
|
|
2,916,597
|
|
||||||||
Earnings (loss) before taxes from discontinued operations
|
|
91,795
|
|
|
(14,114
|
)
|
|
22,929
|
|
|
100,610
|
|
|
163,920
|
|
|
19,851
|
|
|
(3,151
|
)
|
|
180,620
|
|
||||||||
Income tax expense (benefit)
|
|
21,034
|
|
|
(2,535
|
)
|
|
5,301
|
|
|
23,800
|
|
|
64,140
|
|
|
3,285
|
|
|
(725
|
)
|
|
66,700
|
|
||||||||
Net earnings (loss) from discontinued operations
|
|
70,761
|
|
|
(11,579
|
)
|
|
17,628
|
|
|
76,810
|
|
|
99,780
|
|
|
16,566
|
|
|
(2,426
|
)
|
|
113,920
|
|
||||||||
Less: Net earnings attributable to noncontrolling interests from discontinued operations
|
|
7,803
|
|
|
—
|
|
|
—
|
|
|
7,803
|
|
|
9,013
|
|
|
—
|
|
|
—
|
|
|
9,013
|
|
||||||||
Net earnings (loss) attributable to Fluor Corporation from discontinued operations
|
|
$
|
62,958
|
|
|
$
|
(11,579
|
)
|
|
$
|
17,628
|
|
|
$
|
69,007
|
|
|
$
|
90,767
|
|
|
$
|
16,566
|
|
|
$
|
(2,426
|
)
|
|
$
|
104,907
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||
(in thousands)
|
|
Government
|
AMECO
|
Total from Discontinued Operations
|
Other Assets and Liabilities from Continuing Operations(2)
|
Total
|
|
Government
|
AMECO
|
Total from Discontinued Operations
|
||||||||||||||||
Accounts and notes receivable, net
|
|
$
|
109,536
|
|
$
|
82,388
|
|
$
|
191,924
|
|
$
|
2,543
|
|
$
|
194,467
|
|
|
$
|
202,837
|
|
$
|
95,652
|
|
$
|
298,489
|
|
Contract assets
|
|
349,610
|
|
4,057
|
|
353,667
|
|
2,936
|
|
356,603
|
|
|
411,777
|
|
2,285
|
|
414,062
|
|
||||||||
Other current assets
|
|
23,675
|
|
59,489
|
|
83,164
|
|
305
|
|
83,469
|
|
|
15,076
|
|
58,018
|
|
73,094
|
|
||||||||
Current assets held for sale
|
|
$
|
482,821
|
|
$
|
145,934
|
|
$
|
628,755
|
|
$
|
5,784
|
|
$
|
634,539
|
|
|
$
|
629,690
|
|
$
|
155,955
|
|
$
|
785,645
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property, plant and equipment, net
|
|
$
|
10,080
|
|
$
|
233,788
|
|
$
|
243,868
|
|
$
|
70,937
|
|
$
|
314,805
|
|
|
$
|
10,714
|
|
$
|
257,077
|
|
$
|
267,791
|
|
Goodwill
|
|
58,029
|
|
12,337
|
|
70,366
|
|
1,499
|
|
71,865
|
|
|
58,029
|
|
12,337
|
|
70,366
|
|
||||||||
Investments
|
|
32,767
|
|
—
|
|
32,767
|
|
6,309
|
|
39,076
|
|
|
35,354
|
|
—
|
|
35,354
|
|
||||||||
Other assets
|
|
15,096
|
|
6,412
|
|
21,508
|
|
—
|
|
21,508
|
|
|
2,021
|
|
1,067
|
|
3,088
|
|
||||||||
Noncurrent assets held for sale(1)
|
|
$
|
115,972
|
|
$
|
252,537
|
|
$
|
368,509
|
|
$
|
78,745
|
|
$
|
447,254
|
|
|
$
|
106,118
|
|
$
|
270,481
|
|
$
|
376,599
|
|
Total assets held for sale
|
|
$
|
598,793
|
|
$
|
398,471
|
|
$
|
997,264
|
|
$
|
84,529
|
|
$
|
1,081,793
|
|
|
$
|
735,808
|
|
$
|
426,436
|
|
$
|
1,162,244
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trade accounts payable
|
|
$
|
180,597
|
|
$
|
33,797
|
|
$
|
214,394
|
|
$
|
550
|
|
$
|
214,944
|
|
|
$
|
219,617
|
|
$
|
20,608
|
|
$
|
240,225
|
|
Short-term borrowings
|
|
767
|
|
—
|
|
767
|
|
—
|
|
767
|
|
|
—
|
|
—
|
|
—
|
|
||||||||
Contract liabilities
|
|
64,196
|
|
2,333
|
|
66,529
|
|
—
|
|
66,529
|
|
|
51,129
|
|
4,280
|
|
55,409
|
|
||||||||
Accrued salaries, wages and benefits
|
|
71,873
|
|
9,348
|
|
81,221
|
|
—
|
|
81,221
|
|
|
64,387
|
|
7,182
|
|
71,569
|
|
||||||||
Other accrued liabilities
|
|
11,716
|
|
7,573
|
|
19,289
|
|
2,646
|
|
21,935
|
|
|
10,473
|
|
3,139
|
|
13,612
|
|
||||||||
Current liabilities held for sale
|
|
$
|
329,149
|
|
$
|
53,051
|
|
$
|
382,200
|
|
$
|
3,196
|
|
$
|
385,396
|
|
|
$
|
345,606
|
|
$
|
35,209
|
|
$
|
380,815
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncurrent liabilities held for sale(1)
|
|
$
|
24,462
|
|
$
|
4,485
|
|
$
|
28,947
|
|
$
|
—
|
|
$
|
28,947
|
|
|
$
|
16,113
|
|
$
|
1,385
|
|
$
|
17,498
|
|
Total liabilities held for sale
|
|
$
|
353,611
|
|
$
|
57,536
|
|
$
|
411,147
|
|
$
|
3,196
|
|
$
|
414,343
|
|
|
$
|
361,719
|
|
$
|
36,594
|
|
$
|
398,313
|
|
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||||||||||
(in thousands)
|
|
Government
|
|
AMECO
|
|
Total
|
|
Government
|
|
AMECO
|
|
Total
|
||||||||||||
Depreciation of fixed assets
|
|
$
|
2,952
|
|
|
$
|
44,560
|
|
|
$
|
47,512
|
|
|
$
|
2,489
|
|
|
$
|
55,666
|
|
|
$
|
58,155
|
|
Amortization of stock-based awards
|
|
4,432
|
|
|
383
|
|
|
4,815
|
|
|
4,064
|
|
|
317
|
|
|
4,381
|
|
||||||
Capital expenditures
|
|
(2,216
|
)
|
|
(59,048
|
)
|
|
(61,264
|
)
|
|
(5,614
|
)
|
|
(35,538
|
)
|
|
(41,152
|
)
|
•
|
The cyclical nature of many of the markets the company serves, including our commodity-based business lines, and our client’s vulnerability to downturns, which may result in decreased capital investment or expenditures and reduced demand for our services;
|
•
|
The company’s failure to receive anticipated new contract awards and the related impact on revenue, earnings, staffing levels and cost;
|
•
|
Failure to accurately estimate the cost and schedule for our contracts, resulting in cost overruns or liabilities, including those related to project delays and those caused by the performance of our clients, subcontractors, suppliers and joint venture or teaming partners;
|
•
|
Intense competition in the global engineering, procurement and construction industry, which can place downward pressure on our contract prices and profit margins and may increase our contractual risks;
|
•
|
Failure to obtain favorable results in existing or future litigation or dispute resolution proceedings (including claims for indemnification), or claims against project owners, subcontractors or suppliers;
|
•
|
Failure of our joint venture partners to perform their venture obligations, which could impact the success of those ventures and impose additional financial and performance obligations on us, resulting in reduced profits or losses;
|
•
|
Cybersecurity breaches of our systems and information technology;
|
•
|
Civil unrest, security issues, labor conditions and other unforeseeable events in the countries in which we do business, resulting in unanticipated losses;
|
•
|
Changes in global business, economic (including currency risk), political and social conditions;
|
•
|
Project cancellations, scope adjustments or deferrals, or foreign currency fluctuations, that could reduce the amount of our backlog and the revenue and profits that the company earns;
|
•
|
Failure to maintain safe work sites;
|
•
|
Repercussions of events beyond our control, such as severe weather conditions, that may significantly affect operations, result in higher cost or subject the company to liability claims by our clients;
|
•
|
Uncertainties, restrictions and regulations impacting our government contracts;
|
•
|
Client delays or defaults in making payments;
|
•
|
Failure of our suppliers or subcontractors to provide supplies or services at the agreed-upon levels or times;
|
•
|
Failure of our employees, agents or partners to comply with laws, which could result in harm to our reputation and reduced profits or losses;
|
•
|
Differences between our actual results and the assumptions and estimates used to prepare our financial statements;
|
•
|
The potential impact of changes in tax laws and other tax matters including, but not limited to, those from foreign operations, the realizability of our deferred tax assets and the ongoing audits by tax authorities;
|
•
|
Possible systems and information technology interruptions;
|
•
|
The impact of anti-bribery and international trade laws and regulations;
|
•
|
The availability of credit and restrictions imposed by credit facilities, both for the company and our clients, suppliers,
|
•
|
The company’s ability to secure appropriate insurance;
|
•
|
The impact of new or changing legal requirements, as well as past and future environmental, health and safety regulations including climate change regulations;
|
•
|
The failure to be adequately indemnified for our nuclear services;
|
•
|
Foreign exchange risks;
|
•
|
The inability to hire and retain qualified personnel;
|
•
|
The loss of business from one or more significant clients;
|
•
|
Possible limitations of bonding or letter of credit capacity;
|
•
|
The failure to adequately protect intellectual property rights;
|
•
|
Impairments to goodwill, investments, deferred tax assets or other intangible assets;
|
•
|
The risks associated with acquisitions, dispositions or other investments, including the failure to successfully integrate acquired businesses; and
|
•
|
Restrictions on possible transactions imposed by our charter documents and Delaware law.
|
•
|
Management committed to a plan to sell substantially all of its government and AMECO equipment businesses, while retaining two fixed price government projects (for which the U.S. government is either the client or the ultimate client) and a few small international components of AMECO. The results of the government and AMECO businesses that are expected to be sold have been presented as earnings from discontinued operations, net of tax, in the Condensed Consolidated Statement of Operations for all periods presented.
|
•
|
Management reviewed its business lines, markets and geographies and changed the composition of its reportable segments to align them with the manner in which the chief executive officer manages the business and allocates resources. The Mining, Industrial, Infrastructure & Power segment was separated into a Mining & Industrial segment and an Infrastructure & Power segment. The operations of NuScale, as well as two U.S. government projects that do not qualify for discontinued operations reporting, were combined into a newly created segment called Other. The company now reports its operating results in the following five reportable segments: Energy & Chemicals; Mining & Industrial; Infrastructure & Power; Diversified Services; and Other. Segment operating information and assets for 2018 have been recast to reflect these changes.
|
•
|
The company approved additional restructuring activities associated with the broad restructuring plan initiated during the first quarter of 2019. These additional activities include the rationalization of resources, real estate and overhead across various geographies.
|
•
|
The company confirmed previously announced changes in its bidding and pursuit processes, which established the criteria under which the company may bid on lump-sum projects in the Energy and Chemicals segment, and directed the company's Infrastructure business to focus on opportunities in North America.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
1,611.6
|
|
|
$
|
1,902.3
|
|
|
$
|
4,485.2
|
|
|
$
|
5,859.8
|
|
Segment profit (loss)
|
|
84.9
|
|
|
50.2
|
|
|
(124.9
|
)
|
|
253.0
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
1,374.0
|
|
|
$
|
973.3
|
|
|
$
|
3,703.6
|
|
|
$
|
2,377.4
|
|
Segment profit
|
|
56.9
|
|
|
20.9
|
|
|
129.1
|
|
|
56.9
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
392.5
|
|
|
$
|
412.3
|
|
|
$
|
951.8
|
|
|
$
|
1,250.6
|
|
Segment profit (loss)
|
|
1.0
|
|
|
102.3
|
|
|
(193.3
|
)
|
|
(13.2
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
521.7
|
|
|
$
|
526.3
|
|
|
$
|
1,525.0
|
|
|
$
|
1,706.9
|
|
Segment profit
|
|
10.8
|
|
|
22.6
|
|
|
22.4
|
|
|
51.5
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
37.9
|
|
|
$
|
28.0
|
|
|
$
|
(43.4
|
)
|
|
$
|
73.6
|
|
Segment profit (loss)
|
|
(95.8
|
)
|
|
(22.9
|
)
|
|
(370.0
|
)
|
|
(71.2
|
)
|
•
|
Decreases in accounts receivable which resulted primarily from normal billing and collections for several projects in the Mining & Industrial segment as well as the LOGCAP IV program in Afghanistan, now included in discontinued operations.
|
•
|
Decreases in contract assets which resulted primarily from normal project execution activities for several projects in the Energy & Chemicals, Mining & Industrial, Infrastructure & Power and Other segments.
|
•
|
Increases in contract liabilities resulting from loss provisions and forecast adjustments for several projects in the Energy & Chemicals and Other segments.
|
•
|
Decreases in accounts payable which resulted primarily from normal invoicing and payment activities for several projects in the Energy & Chemicals, Mining & Industrial, Infrastructure & Power and Diversified Services segments.
|
•
|
An increase in accounts receivable, primarily driven by project execution activities for a power restoration project in Puerto Rico, now included in discontinued operations.
|
•
|
A decrease in contract liabilities in the Energy & Chemicals segment, which resulted primarily from normal project execution activities on several large projects.
|
•
|
Increases in accounts payable in the Mining & Industrial segment which resulted from normal invoicing activities.
|
|
|
Three Months Ended
September 30, |
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Backlog — beginning of period
|
|
$
|
31,892.2
|
|
|
$
|
27,186.4
|
|
New awards
|
|
2,628.1
|
|
|
6,343.8
|
|
||
Adjustments and cancellations, net
|
|
(397.8
|
)
|
|
208.6
|
|
||
Work performed
|
|
(3,870.6
|
)
|
|
(3,787.3
|
)
|
||
Backlog — end of period (1)
|
|
$
|
30,251.9
|
|
|
$
|
29,951.5
|
|
|
|
Nine Months Ended
September 30, |
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Backlog - beginning of period
|
|
$
|
35,510.1
|
|
|
$
|
27,318.4
|
|
New awards
|
|
7,664.0
|
|
|
13,472.4
|
|
||
Adjustments and cancellations, net (2)
|
|
(2,462.6
|
)
|
|
264.0
|
|
||
Work performed
|
|
(10,459.6
|
)
|
|
(11,103.3
|
)
|
||
Backlog — end of period (1)
|
|
$
|
30,251.9
|
|
|
$
|
29,951.5
|
|
(1)
|
Excludes $4.0 billion and $4.9 billion of backlog as of September 30, 2019 and December 31, 2018, respectively, associated with the company's discontinued operations.
|
(2)
|
Adjustments and cancellations, net during the nine months ended September 30, 2019 included an adjustment to remove certain contracts associated with the company’s joint venture in Mexico that were suspended during the second quarter of 2019, as well as other project scope adjustments and cancellations.
|
(c)
|
The following table provides information about purchases by the company during the quarter ended September 30, 2019 of equity securities that are registered by the company pursuant to Section 12 of the Exchange Act.
|
Period
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans
or Programs
|
|
Maximum
Number of
Shares that May
Yet Be Purchased
under the Plans or
Program (1)
|
|||||
|
|
|
|
|
|
|
|
|
|||||
July 1, 2019 — July 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
10,513,093
|
|
|
|
|
|
|
|
|
|
|
|||||
August 1, 2019 — August 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,513,093
|
|
|
|
|
|
|
|
|
|
|
|
|||||
September 1, 2019 — September 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,513,093
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
(1)
|
The share repurchase program was originally announced on November 3, 2011 for 12,000,000 shares and has been amended to increase the size of the program by an aggregate 34,000,000 shares, most recently in February 2016 with an increase of 10,000,000 shares. The company continues to repurchase shares from time to time in open market transactions or privately negotiated transactions, including through pre-arranged trading programs, at its discretion, subject to market conditions and other factors and at such time and in amounts that the company deems appropriate.
|
Item 6.
|
Exhibits
|
Exhibit
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
10.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.*
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
*
|
New exhibit filed with this report.
|
|
|
|
FLUOR CORPORATION
|
|
|
|
|
|
|
|
|
Date:
|
October 31, 2019
|
By:
|
/s/ D. Michael Steuert
|
|
|
|
D. Michael Steuert
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
Date:
|
October 31, 2019
|
By:
|
/s/ Robin K. Chopra
|
|
|
|
Robin K. Chopra
|
|
|
|
Senior Vice President, Controller and
|
|
|
|
Chief Accounting Officer
|
1.
|
Payments. The Company will make the payments and accommodations provided below in consideration of Employee’s execution of this Agreement and the attached exhibit as referenced and provided for herein. Employee understands that the Company will deduct from any payments specified herein federal withholding taxes and other deductions the Company is required by law to make from wages and other payments to employees. Employee further understands that the payments and the retirement treatment to long term incentives set forth in this Paragraph 1 are all the Employee is entitled to receive from the Company under this Agreement except for those benefits described in Paragraph 6 to which Employee may be entitled. Employee understands and agrees that he will receive no further wages, vacation, separation pay, bonuses, incentive payments, allowances, perquisites or other similar payments or benefits from the Company other than those set out in this Agreement.
|
a.
|
The Company will continue Employee’s active employment in a non-executive and non-officer status at his normal base salary up to and including September 13, 2019 (the “Retirement Date”) at which time Employee will retire from the Company. During the interim period before the Retirement Date, Employee shall remain an employee of the Company and shall undertake all such tasks and duties as requested to ensure that there is a smooth handover of his responsibilities and a seamless transition. Employee’s continued employment prior to the Retirement Date shall be at a level that results in a “separation from service” under the Fluor Executive Deferred Compensation Plan and for purposes of Section 409A of the Internal Revenue Code (the “Code”). The Parties agree that the Change in Control Agreement between Fluor and the Employee, dated June 30, 2010, is hereby terminated with immediate effect.
|
b.
|
Employee will receive a total gross payment of One million Three-hundred and Thirty-four Thousand dollars ($1,334,000) (the “Separation Payment”) which is equal to one (1) times his base salary as of the date of this Agreement. The Separation Payment will be made upon the later of: (1) Employee’s last day of employment, or (ii) within two weeks after the effective date of this Agreement. Employee acknowledges that this payment is adequate consideration for this Agreement.
|
c.
|
Employee aknowledges and agrees that he will not receive any portion of his 2019 Annual Incentive Award or any other bonus payments under the Fluor Corporation 2017 Performance Incentive Plan or any other similar plans.
|
d.
|
The payment in Paragraph 1b above is intended to include any and all payments to which Employee may be entitled under the Company’s Executive Severance Policy and are not intended to be in addition to, or duplicative of, the Company’s Executive Severance Policy.
|
e.
|
For the purpose of Employee’s Fluor stock incentives, and subject to the terms and conditions set forth in the applicable incentive plans and agreements, Employee’s separation of employment will be treated as being in connection with retirement, effective on the Retirement Date, provided Employee executes and delivers to the Company this Agreement and the “Long Term Incentives Vesting/Forfeiture Agreement” in the form attached as Exhibit 1 with the following results:
|
(i)
|
Restricted Stock Units (“RSUs”), Non-Qualified Stock Options, and VDI Awards granted to Employee at least one year prior to the Retirement Date shall continue to vest and continue to be payable in accordance with their terms on the dates set out in the Awards notwithstanding such termination. RSUs and VDI awards held by Employee for less than one year prior to the Retirement Date shall be forfeited.
|
(ii)
|
For the 2017 and 2018 option grants, Employee shall have the original 10-year term of the Option to exercise. For all other outstanding option grants, Employee shall have three years to exercise vested stock options following his Retirement Date (but in no case beyond the original 10-year term of the option).
|
f.
|
All accrued unused TOWP will be included in Employee’s final pay and paid out on the next regular pay date following his retirement from the Company.
|
g.
|
Employee may purchase the golf club membership currently owned by Company at Dallas National for an amount equal to the fair market value of such membership interest as determined by Company. Employee shall transfer all other Company memberships held in his name to the Company.
|
2.
|
No Obligation to Make Payment under Normal Policies. Employee agrees that the payments and accommodations described in Paragraph 1a, 1b, and 1e above are more than the Company is required to pay and/or provide under its normal policies and procedures. Additionally, Employee understands and agrees he is not entitled to the consideration referenced in Paragraph 1a, 1b, and 1e unless and until Employee signs and delivers to the Company: (i) this Agreement within 21 calendar days without revoking it within the time period set forth in Paragraph 4; and (ii) the Long Term Incentives Vesting/Forfeiture Agreement attached as Exhibit 1. Employee agrees that upon the receipt of his final paycheck and his accrued, unused TOWP, he will have been paid in full for any/all compensation he claims to be owed by the Company, including, but not limited to, salary, wages, commissions, bonuses, or any other compensation, and disavows any right or claim to any additional compensation other than that set forth herein pursuant to this Agreement, to which he becomes entitled as set forth herein.
|
3.
|
Complete Release. Subject to Paragraph 8 in this Agreement, Employee agrees to release the Company, and its current and former parent companies, subsidiaries, affiliated companies, related companies and joint ventures and each of their respective current and former officers, directors, board members, shareholders, affiliates and controlling person(s) (if any), employees, attorneys, representatives, predecessors, successors, assigns, divisions, co-employers, vendors, contractors and all other persons acting by, through, under, or in concert with any of them (collectively “Releasees”) from any and all claims, charges, complaints, lawsuits, liabilities, obligations, promises, agreements, damages, actions, causes of action, rights, demands, costs, losses, debts and expenses, injuries and grievances of any and every kind. Said release includes, but is not limited to, a full release of any and all claims for punitive damages, attorneys’ fees, injunctive relief, declaratory relief, equitable relief, loss of wages, loss of other employment, back pay, front pay, liquidated damages, compensatory damages, personal injury, emotional distress, mental anguish, libel, slander, defamation, vacation pay, sick pay, pension contributions or benefits, medical or health benefits, short or long term disability benefits, and any other employee benefits; and any and all claims and demands of any other kind and nature whatsoever, foreseen, unforeseen, or unforeseeable, now known or which may hereafter be discovered relating to his employment with and/or Retirement from Employer, or to any event, act or omission that has occurred as of the date this Agreement is executed, and includes, but is not limited to, to the fullest extent allowed by law, all liability arising from:
|
•
|
Title VII of the Civil Rights Acts of 1964;
|
•
|
the Americans with Disabilities Act of 1990;
|
•
|
the Family and Medical Leave Act;
|
•
|
Genetic Information Nondiscrimination Act of 2008
|
•
|
the Fair Labor Standards Act;
|
•
|
Sections 1981 through 1988 of Title 42 of the United States Code;
|
•
|
the Age Discrimination in Employment Act of 1967;
|
•
|
the Older Workers Benefit and Protection Act of 1990;
|
•
|
the Uniformed Services Employment and Reemployment Act of 1994;
|
•
|
the Employee Retirement Income Security Act of 1974;
|
•
|
the Health Insurance Portability and Accountability Act;
|
•
|
the Occupational and Safety Health Act of 1970;
|
•
|
the Worker Adjustment and Retraining Notification Act;
|
•
|
the Equal Pay Act;
|
•
|
Executive Orders 11246 and 11141;
|
•
|
the Rehabilitation Act of 1973;
|
•
|
any and all local, municipal, state, or federal statutes, regulations or ordinances;
|
•
|
any and all claims arising under state or federal common law;
|
•
|
any claims for attorneys’ fees or costs.
|
4.
|
Waiver of ADEA Claims. The release set forth above includes a waiver of rights and claims which Employee may have arising under the Age Discrimination in Employment Act of 1967 (Title 29, United States Code, Section 621, et seq.) (“ADEA”). In compliance with the Older Workers Benefit and Protection Act of 1990:
|
a.
|
Employee is advised to consult with an attorney before accepting this agreement and waiving his rights and claims under the ADEA. Employee understands that by signing this release, he waives his rights and/or claims under the ADEA.
|
b.
|
Review period. Employee acknowledges that he has been given a period of up to twenty-one (21) days to review and consider this Agreement and to consult with an attorney, accountant and/or other advisors before signing and that the actual time he has taken for such purposes was adequate for all appropriate consultations. Any changes in this agreement, whether material or immaterial, do not restart the running of the 21-day period.
|
c.
|
Revocation period. Employee understands that he has a period of seven (7) days, commencing with the day after the date of his signature on this Agreement, to revoke this agreement. To revoke, Employee must provide written notice to John Reynolds, Fluor Enterprises, Inc., 6700 Las Colinas Blvd. (W1H), Irving, TX 75039. Such written notice must be received no later than 11:59 pm (CST) on the seventh day after Employee signs this Agreement.
|
d.
|
This Retirement and Release Agreement will not be effective or enforceable until Employee has returned the fully executed Agreement and the seven day period has expired (“Effective Date”). If Employee revokes this Agreement, it shall not be effective or enforceable. Further, if this Agreement is revoked, Employee will not receive the payments and accommodations described in Paragraph 1 other than the payment provided for in Paragraph 1f, and any outstanding stock based awards shall be governed by the terms of the applicable award agreements.
|
5.
|
Additional Facts. Employee agrees and acknowledges that he may hereafter discover facts different from, or in addition to, those he now believes to be true with respect to any or all of the claims or demands herein released. Nevertheless, the Company and Employee agree that the release set forth above shall be and remain effective in all respects, notwithstanding the discovery of such different or additional facts.
|
6.
|
Release Inapplicable to Retirement Benefits. This release does not include a release of Employee's right, if any, to retirement benefits under the Company's standard retirement programs.
|
7.
|
No Pending Claims/Lawsuits. Employee represents that he has no pending complaints, actions, charges or claims of any nature (on his own behalf or in conjunction with any other person or entity) against the Releasees based on, or related to, any events or actions that occurred prior to the execution of this Agreement, and that Employee is not currently aware of facts that would support any such claim. Employee further represents that he has no knowledge of any unreported conduct by or on behalf of the Company that in his view is or may be inconsistent with applicable law, regulation, or Company standards of conduct and compliance.
|
8.
|
Notwithstanding what is stated in Paragraphs 7, 12, 13, 14, 15, 16 and 23, or any other provision in Agreement, nothing in this Agreement or in the Exhibit thereto prohibits or restricts Employee from either filing charges/complaints with any governmental agency or participating in a proceeding before any governmental agency responsible for the enforcement of any local, state, or federal law. However, Employee understands and agrees that, except as set forth in the following subparagraph, he will not be entitled to any financial recovery or non-monetary relief from any judgment, decision, or award upon any claim released by him in Paragraph 3 above regardless of who filed or initiated any such complaint, charge, or proceeding.
|
9.
|
Non-Admission of Wrongdoing. By making this Agreement, neither the Company nor the Employee admits that they have done anything wrong.
|
10.
|
Non-Release of Future Claims. This Agreement does not waive or release any rights or claims that Employee may have under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964 or the Americans with Disabilities Act which arise after the date the Employee signs this Agreement. In addition, the Company and Employee acknowledge and agree that the release set forth in Paragraph 3 does not include any claims Employee may have against the Company for its failure to comply with or breach of any provision in this Agreement.
|
11.
|
Other Officer / Director Positions. Employee agrees to resign immediately (whether or not requested by the Company) from any officer or director positions or trusteeships Employee holds with Company, its parent companies and their respective subsidiaries, joint ventures, or related entities and agrees to execute such documents as may be necessary to give effect to his resignation.
|
12.
|
Company Property and Company Resources. Employee’s failure to return and deliver on or before the Retirement Date all Company property, including but not limited to, any and all documents, records, notebooks, reports, blueprints, manuals, etc. downloaded by him or provided to him by the Company, and all documents, materials of a secret, confidential, proprietary, or attorney-client privilege nature relating to the Company’s business and which are in his possession or under his control, and to maintain the confidentiality of such materials thereafter, will be deemed a breach of this Agreement. Employee understands and agrees that the Company will assert all rights and remedies under the law, and in equity, that it may be entitled to as result of any breach of this Agreement. Notwithstanding the foregoing, the Company agrees to permit Employee to retain his assigned Company iPhone and iPad and mobile hot spot; provided however that Employee understands and agrees that such equipment shall be wiped clean by appropriate Company personnel consistent with Company policy and practice. Employee understands that the Company will make a forensic copy of the contents of such equipment to comply with litigation hold obligations prior to having the equipment wiped clean. Employee agrees to cooperate with the Company’s efforts to make such forensic copies. Additionally, until December 31, 2019, the Company will allow Employee to utilize remotely the services of Employee’s current administrative assistant, but only while she is employed and working at the Company, to provide secretarial services to Employee up to two hours per week.
|
13.
|
Consequences of Employee Breach of Promises. If Employee files a lawsuit based on legal claims that he has released, or otherwise breaches in this Agreement, Employee understands and agrees that the Company will be entitled to assert all rights and remedies, in law and in equity, that it may be entitled to as a result of any breach of this Agreement.
|
14.
|
Confidential Information. Employee understands and agrees that in the course of Employee's employment with the Company, Employee has acquired confidential information and trade secrets concerning the Company's operations, such as but not limited to, the company’s existing and prospective customers, suppliers, sales process, service practices, pricing strategies, cost of materials, information pertaining to its customers and suppliers, the Company’s future plans and its methods of doing business. Employee understands and agrees it would be extremely damaging to the Company if Employee disclosed such information to a competitor or made it available to any other company.
|
15.
|
Non-Disparagement. Employee agrees that he will not take any action or make or cause to be made any false or defamatory statements, written or oral, that disparage, are inimical to, are critical of, or damage the reputation of, or that otherwise work in any way to the detriment of, or which disrupts or impairs the Company’s normal operations, or that may be potentially embarrassing to the Company or any of its past or present affiliates, subsidiaries, agents, officers, directors, shareholders, employees, representatives or agents. This paragraph is intended to apply to any false or defamatory statements that may be harmful to professional reputation or personal reputation or character. The term “statements” is intended to extend to all forms of communications, including but not limited to verbal, written, e-mails, chat rooms, instant messaging, and all other forms of electronic communication. Further, if a prospective employer of Employee contacts the Company’s employment verification representative or service, such person or service will verify dates of employment and last position held, and will only disclose or verify any additional information that Employee authorizes, in writing, the Company to provide.
|
16.
|
Authorized Disclosures. Nothing in Paragraphs 12, 13, 14, 15, 16, and 23 shall prevent Employee or Company from responding truthfully and accurately to any inquiry or request for information when required by court order, a government investigation or otherwise by compulsion of law. If any inquiry or request for information is required by court order or compulsion of law, Employee will provide the Company with commercially reasonable adequate notice in advance of such proposed disclosure to enable the Company to be heard with respect to any such disclosure.
|
17.
|
Section 409A.
|
a.
|
It is intended that the payment of all benefits pursuant to Paragraph 1 of this Agreement be exempt from Section 409A of the Internal Revenue Code, as amended (the “Code”) and the regulations promulgated thereunder (“Section 409A) due to (i) the involuntary termination exception as set forth in Section 1.409A-1(b)((9)(iii) of the final regulations issued under Section 409A or such other exemption as may apply; (ii) the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the final regulations issued under Section 409A; or (iii) such other exemption as may apply.
|
b.
|
Notwithstanding the foregoing, to the extent any payments under this Agreement are subject to (and not exempt from) Section 409A, it is intended that such payments will comply with Section 409A as amounts payable on the
|
c.
|
Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the final regulations issued under Section 409A.
|
d.
|
This Paragraph 17 is intended to comply with the requirements of Section 409A of the Code so that none of the payments and benefits to be provided hereunder will be subject to either (1) the six (6) month delay which may otherwise be required with respect to payments of deferred compensation to “specified Executives” as defined in Section 409A, and (b) any additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A. Notwithstanding the foregoing, in the event that it is determined that the payments provided under Paragraph 1 of this Agreement are deferred compensation that are payable pursuant to a separation from service, then such payments will be delayed for six months in accordance with the six month delay rules applicable to the Company’s other nonqualified deferred compensation plans.
|
18.
|
Assistance in Litigation. Employee agrees to make himself reasonably available for any future assistance related to any investigation, inquiry, subpoena, administrative proceeding, claim, litigation, arbitration, or dispute (collectively “Litigation”) involving Company, Fluor Corporation, their respective subsidiaries, joint ventures, related entities, former employees, shareholders, officers, or directors as may be requested by the Company. Among other things, with reasonable advance notice, Employee will meet with the Company’s representatives and attorneys at mutually convenient times and locations to prepare for such Litigation and will appear and provide evidence (written or oral testimony) in any pending or future Litigation. If Employee is called as a witness by the Company to give testimony in any legal matter, Employee understands that Employee is to answer proper questions truthfully. For Employee’s involvement and assistance the Company agrees to pay Employee’s reasonable out-of-pocket expenses, and to the extent permitted by law, regulation or applicable rules of Court, lost earnings calculated at a rate of $ 665 per hour incurred directly as a result of such assistance. Any compensation is not, and shall not be, contingent upon the content of Employee’s testimony in the course of any Litigation matter nor shall the compensation be contingent on the outcome of any such matter.
|
19.
|
Modifications of Agreement. This Agreement can only be modified in writing and signed by both Employee and an authorized representative of the Company.
|
20.
|
Interpretation of Agreement. This Agreement will be interpreted in accordance with the plain meanings of its terms and not strictly for or against either of the parties. The parties agree that any ambiguities will not be construed solely against the drafting party.
|
21.
|
Applicable Law. This Agreement shall be governed by and construed and enforced under Texas law, excluding the provisions thereof which refer to the laws of another jurisdiction. The Parties agree to submit to the jurisdiction and venue of the state or federal courts in Dallas County, Texas, and applicable appellate courts therefrom, in any action or proceeding brought with respect to or in connection with this Agreement.
|
22.
|
Severability. If any provision or part of this Agreement is held or determined to be invalid or unenforceable for any reason, each such provision or part shall be severed from the remaining provisions of the Agreement or the Agreement shall be read and interpreted as if it did not contain such provision or part. The validity and enforceability of remaining provisions shall not be affected by any such invalid or unenforceable part or provision; however, if Employee seeks to invalidate any portion of the release in Paragraph 3 and any such portion of the release is held to be unenforceable, RELEASEES may seek modification or severance of such portion or may terminate the Agreement or consider the Agreement null and void.
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23.
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Entire Agreement. This Agreement along with Exhibit 1, which is incorporated by reference as if fully set forth herein, is the entire Agreement between Employee and Company and supercedes all prior negotiations, agreements, and/or understandings between the parties, whether written or oral. However, this Agreement is not intended to eliminate any indemnification protections Employee has under any prior agreements with Company or change the terms and conditions of any confidentiality agreement Employee may have signed at the time of hire or during his employment with the Company, except that Employee may make disclosures as expressly set forth in Paragraph 8 of this Agreement. Further, the Company has made no promises to Employee other than those in this Agreement.
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9/10/2019
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/s/ David T. Seaton
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DATE SIGNED
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DAVID T. SEATON - SIGNATURE
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FLUOR ENTERPRISES, INC.
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9/10/2019
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BY:
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/s/ John Reynolds
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DATE SIGNED
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1.
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Consideration. In exchange for the promises below, the Company agrees to vest unvested non-qualified stock options, restricted stock, and value driver incentives (“Long Term Incentives”) of Employee in connection with retirement as provided for in the applicable plan documents if such Long Term Incentives were granted to Employee at least one year prior to the Retirement Date. For clarity, Long Term Incentives granted to Employee in February 2019 or otherwise held by Employee for less than one year prior to the Retirement Date shall be forfeited and shall not continue to vest.
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2.
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Vesting Requirement/Conditions. For the consideration provided in paragraph 1 above, Employee agrees that he will not engage in any detrimental activity as provided for in paragraphs 3 and 4 below.
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3.
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Detrimental Activity. Employee agrees that for a period of twelve (12) months following his Retirement Date, he will not, directly or indirectly, accept or become engaged in any capacity (whether as an employee, partner, consultant, agent or other arrangement) with any other company engaged in or about to become engaged in any business that directly competes with the Company and/or its affiliates, including its parent corporation (a “Competitive Business”). This restriction applies to Employee working for a Competitive Business within a 50 mile radius of a Company office or project (existing or scheduled to start within 3 months of Employee’s Retirement Date). Such activity will be considered to be detrimental to the Company and/or its affiliates. A Competitive Business includes any engineering and/or construction company headquartered or having a physical presence in any county, parish, or province in which the Company or its affiliates conducts business operations that are substantially similar to and/or competitive with, the Company’s or an affiliate’s business operations as its business exists on the Retirement Date. The foregoing obligations shall not be deemed to prohibit Employee from being an owner of less than 5% of the outstanding stock of any class of a corporation which is publicly traded, so long as Employee has no active participation in the business of such corporation. Additionally, Detrimental Activity shall also include soliciting or participating in or assisting in any way in the solicitation of any clients or employees of the Company or of any of its affiliates for a period of one year from the Retirement Date. Detrimental Activity shall also include failure to return the Company’s property; however, Employee understands he is not limited from providing any documents to any governmental agency, including the U.S. Securities and Exchange Commission, as part of a whistleblower action and/or a report of possible violations of any federal securities law as stated in Paragraph 8 of the Retirement and Release Agreement. Employee may request the written consent of the Chief Legal Officer of the Company for any exceptions to this LTI Vesting/Forfeiture Agreement that Employee wants the Company to consider, which may or may not be granted.
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4.
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Confidential / Trade Secrets / Company Proprietary Information. Employee further understands and agrees that in the course of Employee's employment with the Company, Employee has acquired confidential and Company proprietary information and trade secrets concerning the Company's operations, its future plans, pricing strategies, cost of materials,
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5.
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Authority to Reform. Employee acknowledges and agrees that the forfeiture of unvested Long Term Incentives for voluntarily engaging in Detrimental Activity and the geographic and time restrictions set forth herein are reasonable and are no greater than required to adequately protect the Company’s legitimate business interests. However, if at the time of enforcement of this LTI Vesting/Forfeiture Agreement, a court shall refuse to enforce this LTI Vesting/Forfeiture Agreement, whether because the time limit is too long or because the restrictions are more extensive than is necessary to protect the business and goodwill of the Company, the parties understand and agree and direct that the court modify the restrictions to cover the maximum period, scope, and area permitted by law.
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6.
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Remedies. In the event Employee breaches or threatens to breach this LTI Vesting/Forfeiture Agreement by participating in Detrimental Activity (for example and without limitation, Employee becomes employed or otherwise engaged by an entity that competes with the Company or an affiliate or solicits clients or Fluor employees as provided above), Employee will forfeit any further vesting of any long term incentive awards and may be required to repay the value of vested awards to the Company to the extent that any vesting occurred in reliance on Employee’s promises as provided above. In addition and supplementary to other rights and remedies existing in its favor, the Company may apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions in this agreement (without posting a bond or other security).
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7.
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Governing Law and Venue. This LTI Vesting/Forfeiture Agreement shall in all respects be construed according to the laws of the State of Texas without regard to its conflict of law principles. With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Dallas County, Texas and appropriate appellate courts therefrom. This choice of forum and law is knowingly and voluntarily agreed to by the parties for their mutual convenience and in exchange for the consideration provided by the Company as stated herein, and is made a material part of this Agreement.
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8.
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Entire Agreement. This LTI Vesting/Forfeiture Agreement, in conjunction with the Retirement and Release Agreement and governing plan documents, contains the entire agreement of the parties with respect to the subject matter and supersedes any and all prior understandings, agreements or correspondence between the parties. This LTI Vesting/Forfeiture Agreement may not be waived or released by the Company unless in writing signed by the Chief Legal Officer and the Employee. No course of conduct or failure or delay in enforcing the provisions of this LTI Vesting/Forfeiture Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this LTI Vesting/Forfeiture Agreement or any provision hereof.
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EMPLOYEE
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9/10/2019
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/s/ David T. Seaton
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DATE SIGNED
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DAVID T. SEATON - SIGNATURE
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FLUOR ENTERPRISES, INC.
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9/10/2019
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BY:
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/s/ John Reynolds
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DATE SIGNED
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Date: October 31, 2019
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By:
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/s/ Carlos M. Hernandez
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Carlos M. Hernandez
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Chief Executive Officer
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Date: October 31, 2019
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By:
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/s/ D. Michael Steuert
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D. Michael Steuert
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Executive Vice President and Chief Financial Officer
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•
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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•
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: October 31, 2019
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By:
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/s/ Carlos M. Hernandez
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Carlos M. Hernandez
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Chief Executive Officer
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•
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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•
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: October 31, 2019
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By:
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/s/ D. Michael Steuert
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D. Michael Steuert
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Executive Vice President and Chief Financial Officer
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