|
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
|
Preferred Stock Purchase Rights
|
FLR
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
TABLE OF CONTENTS
|
PAGE
|
||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
Abbreviation/Term
|
Definition
|
Q1 2020 10-Q
|
Quarterly Report on Form 10-Q for the three months ended March 31, 2020
|
2019 10-K
|
Annual Report on Form 10-K for the year ended December 31, 2019
|
AOCI
|
Accumulated other comprehensive income (loss)
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Corporate G&A
|
Corporate general and administrative expense
|
COVID-19
|
Coronavirus pandemic of 2020
|
DOE
|
U.S. Department of Energy
|
EPC
|
Engineering, procurement and construction
|
EPS
|
Earnings per share
|
Exchange Act
|
Securities Exchange Act of 1934
|
GAAP
|
Accounting principles generally accepted in the United States
|
ICFR
|
Internal control over financial reporting
|
NCI
|
Noncontrolling interests
|
NuScale
|
NuScale Power, LLC
|
OCI
|
Other comprehensive income (loss)
|
RSU
|
Restricted stock units
|
RUPO
|
Remaining unsatisfied performance obligations
|
SEC
|
Securities and Exchange Commission
|
Stork
|
Stork Holding B.V. and subsidiaries; Acquired by Fluor in 2016
|
VDI
|
Value Driver Incentive
|
VIE
|
Variable interest entity
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands, except per share amounts)
|
|
2020
|
|
2019
|
||||
Revenue
|
|
$
|
4,118,556
|
|
|
$
|
4,133,612
|
|
Cost of revenue
|
|
4,057,159
|
|
|
4,070,859
|
|
||
Other (income) and expenses
|
|
|
|
|
||||
Corporate general and administrative expense
|
|
(14,052
|
)
|
|
58,621
|
|
||
Impairment, restructuring and other exit costs
|
|
297,604
|
|
|
27,368
|
|
||
Interest expense
|
|
18,323
|
|
|
18,630
|
|
||
Interest income
|
|
(12,052
|
)
|
|
(12,892
|
)
|
||
Total cost and expenses
|
|
4,346,982
|
|
|
4,162,586
|
|
||
Earnings (loss) from continuing operations before taxes
|
|
(228,426
|
)
|
|
(28,974
|
)
|
||
Income tax expense (benefit)
|
|
(66,831
|
)
|
|
15,257
|
|
||
Net earnings (loss) from continuing operations
|
|
(161,595
|
)
|
|
(44,231
|
)
|
||
Net earnings (loss) from discontinued operations
|
|
(94,855
|
)
|
|
(814
|
)
|
||
Net earnings (loss)
|
|
(256,450
|
)
|
|
(45,045
|
)
|
||
|
|
|
|
|
||||
Less: Net earnings (loss) attributable to NCI from continuing operations
|
|
9,509
|
|
|
23,859
|
|
||
Net earnings (loss) attributable to Fluor Corporation from continuing operations
|
|
(171,104
|
)
|
|
(68,090
|
)
|
||
|
|
|
|
|
||||
Less: Net earnings (loss) attributable to NCI from discontinued operations
|
|
—
|
|
|
—
|
|
||
Net earnings (loss) attributable to Fluor Corporation from discontinued operations
|
|
(94,855
|
)
|
|
(814
|
)
|
||
|
|
|
|
|
||||
Net earnings (loss) attributable to Fluor Corporation
|
|
$
|
(265,959
|
)
|
|
$
|
(68,904
|
)
|
|
|
|
|
|
||||
Amounts attributable to Fluor Corporation
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(171,104
|
)
|
|
$
|
(68,090
|
)
|
Net earnings (loss) from discontinued operations
|
|
(94,855
|
)
|
|
(814
|
)
|
||
Net earnings (loss)
|
|
$
|
(265,959
|
)
|
|
$
|
(68,904
|
)
|
|
|
|
|
|
||||
Basic earnings (loss) per share attributable to Fluor Corporation
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(1.22
|
)
|
|
$
|
(0.49
|
)
|
Net earnings (loss) from discontinued operations
|
|
(0.68
|
)
|
|
—
|
|
||
Net earnings (loss)
|
|
$
|
(1.90
|
)
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
||||
Diluted earnings (loss) per share attributable to Fluor Corporation
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(1.22
|
)
|
|
$
|
(0.49
|
)
|
Net earnings (loss) from discontinued operations
|
|
(0.68
|
)
|
|
—
|
|
||
Net earnings (loss)
|
|
$
|
(1.90
|
)
|
|
$
|
(0.49
|
)
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
|
2020
|
|
2019
|
||||
Net earnings (loss)
|
|
$
|
(256,450
|
)
|
|
$
|
(45,045
|
)
|
OCI, net of tax:
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
(111,101
|
)
|
|
42,196
|
|
||
Ownership share of equity method investees’ OCI
|
|
(8,172
|
)
|
|
(2,322
|
)
|
||
Defined benefit pension and postretirement plan adjustments
|
|
1,046
|
|
|
2,064
|
|
||
Unrealized gain (loss) on derivative contracts
|
|
(5,470
|
)
|
|
3,457
|
|
||
Total OCI, net of tax
|
|
(123,697
|
)
|
|
45,395
|
|
||
Comprehensive income (loss)
|
|
(380,147
|
)
|
|
350
|
|
||
Less: Comprehensive income (loss) attributable to NCI
|
|
5,292
|
|
|
24,344
|
|
||
Comprehensive income (loss) attributable to Fluor Corporation
|
|
$
|
(385,439
|
)
|
|
$
|
(23,994
|
)
|
(in thousands, except share and per share amounts)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
ASSETS
|
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents ($441,709 and $392,772 related to VIEs)
|
|
$
|
1,870,874
|
|
|
$
|
1,997,199
|
|
Marketable securities ($66 related to VIEs in both periods)
|
|
6,477
|
|
|
7,262
|
|
||
Accounts and notes receivable, net ($279,915 and $329,548 related to VIEs)
|
|
1,097,800
|
|
|
1,217,464
|
|
||
Contract assets ($282,050 and $294,116 related to VIEs)
|
|
1,310,686
|
|
|
1,238,173
|
|
||
Other current assets ($21,166 and $32,271 related to VIEs)
|
|
477,013
|
|
|
389,565
|
|
||
Current assets held for sale
|
|
366,639
|
|
|
559,070
|
|
||
Total current assets
|
|
5,129,489
|
|
|
5,408,733
|
|
||
|
|
|
|
|
||||
Noncurrent assets
|
|
|
|
|
||||
Property, plant and equipment, net ($28,841 and $29,492 related to VIEs)
|
|
567,148
|
|
|
552,856
|
|
||
Goodwill
|
|
306,482
|
|
|
508,415
|
|
||
Investments
|
|
523,757
|
|
|
600,814
|
|
||
Deferred taxes
|
|
55,521
|
|
|
62,688
|
|
||
Deferred compensation trusts
|
|
280,589
|
|
|
341,235
|
|
||
Other assets ($44,265 and $45,425 related to VIEs)
|
|
429,483
|
|
|
491,917
|
|
||
Total noncurrent assets
|
|
2,162,980
|
|
|
2,557,925
|
|
||
Total assets
|
|
$
|
7,292,469
|
|
|
$
|
7,966,658
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable ($379,524 and $501,525 related to VIEs)
|
|
$
|
1,443,280
|
|
|
$
|
1,546,840
|
|
Short-term borrowings
|
|
51,204
|
|
|
38,727
|
|
||
Contract liabilities ($289,616 and $232,160 related to VIEs)
|
|
1,138,019
|
|
|
1,157,788
|
|
||
Accrued salaries, wages and benefits ($31,253 and $31,178 related to VIEs)
|
|
586,807
|
|
|
609,094
|
|
||
Other accrued liabilities ($44,185 and $21,088 related to VIEs)
|
|
425,897
|
|
|
470,351
|
|
||
Current liabilities related to assets held for sale
|
|
65,339
|
|
|
82,322
|
|
||
Total current liabilities
|
|
3,710,546
|
|
|
3,905,122
|
|
||
|
|
|
|
|
||||
Long-term debt
|
|
1,647,173
|
|
|
1,651,739
|
|
||
Deferred taxes
|
|
79,420
|
|
|
83,295
|
|
||
Other noncurrent liabilities ($10,468 and $11,366 related to VIEs)
|
|
645,165
|
|
|
742,410
|
|
||
|
|
|
|
|
||||
Contingencies and commitments
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
||||
Preferred stock — authorized 20,000,000 shares ($0.01 par value); none issued
|
|
—
|
|
|
—
|
|
||
Common stock — authorized 375,000,000 shares ($0.01 par value); issued and outstanding — 140,533,363 and 140,174,400 shares in 2020 and 2019, respectively
|
|
1,403
|
|
|
1,399
|
|
||
Additional paid-in capital
|
|
170,750
|
|
|
165,314
|
|
||
Accumulated OCI
|
|
(499,353
|
)
|
|
(379,873
|
)
|
||
Retained earnings
|
|
1,418,845
|
|
|
1,700,912
|
|
||
Total shareholders’ equity
|
|
1,091,645
|
|
|
1,487,752
|
|
||
NCI
|
|
118,520
|
|
|
96,340
|
|
||
Total equity
|
|
1,210,165
|
|
|
1,584,092
|
|
||
Total liabilities and equity
|
|
$
|
7,292,469
|
|
|
$
|
7,966,658
|
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
|
2020
|
|
2019
|
||||
OPERATING CASH FLOW
|
|
|
|
|
|
|
||
Net earnings (loss)
|
|
$
|
(256,450
|
)
|
|
$
|
(45,045
|
)
|
Adjustments to reconcile net earnings (loss) to operating cash flow:
|
|
|
|
|
||||
Loss on impairment - continuing operations
|
|
297,604
|
|
|
—
|
|
||
Loss on impairment - discontinued operations
|
|
100,000
|
|
|
—
|
|
||
Depreciation
|
|
26,528
|
|
|
45,264
|
|
||
Amortization of intangibles
|
|
2,189
|
|
|
4,567
|
|
||
(Earnings) loss from equity method investments, net of distributions
|
|
1,354
|
|
|
2,115
|
|
||
(Gain) loss on sales of property, plant and equipment
|
|
(948
|
)
|
|
(1,858
|
)
|
||
Amortization of stock-based awards
|
|
5,977
|
|
|
13,242
|
|
||
Deferred compensation trust
|
|
44,346
|
|
|
(26,145
|
)
|
||
Deferred compensation obligation
|
|
(48,944
|
)
|
|
28,584
|
|
||
Deferred taxes
|
|
(5,055
|
)
|
|
(21,174
|
)
|
||
Net retirement plan accrual (contributions)
|
|
(5,833
|
)
|
|
(3,577
|
)
|
||
Changes in assets and liabilities
|
|
(227,504
|
)
|
|
(16,566
|
)
|
||
Other
|
|
2,993
|
|
|
3,117
|
|
||
Operating cash flow
|
|
(63,743
|
)
|
|
(17,476
|
)
|
||
|
|
|
|
|
||||
INVESTING CASH FLOW
|
|
|
|
|
||||
Purchases of marketable securities
|
|
(6,115
|
)
|
|
(8,180
|
)
|
||
Proceeds from the sales and maturities of marketable securities
|
|
6,921
|
|
|
124,299
|
|
||
Capital expenditures
|
|
(30,094
|
)
|
|
(48,172
|
)
|
||
Proceeds from sales of property, plant and equipment
|
|
13,465
|
|
|
10,720
|
|
||
Investments in partnerships and joint ventures
|
|
(5,971
|
)
|
|
(12,001
|
)
|
||
Other
|
|
56
|
|
|
1,090
|
|
||
Investing cash flow
|
|
(21,738
|
)
|
|
67,756
|
|
||
|
|
|
|
|
||||
FINANCING CASH FLOW
|
|
|
|
|
||||
Dividends paid
|
|
(14,700
|
)
|
|
(30,005
|
)
|
||
Other borrowings
|
|
22,203
|
|
|
7,692
|
|
||
Distributions paid to NCI
|
|
(2,751
|
)
|
|
(10,152
|
)
|
||
Capital contributions by NCI
|
|
19,968
|
|
|
4,767
|
|
||
Taxes paid on vested restricted stock
|
|
(1,208
|
)
|
|
(3,549
|
)
|
||
Stock options exercised
|
|
—
|
|
|
1,466
|
|
||
Other
|
|
(884
|
)
|
|
(39
|
)
|
||
Financing cash flow
|
|
22,628
|
|
|
(29,820
|
)
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash
|
|
(63,472
|
)
|
|
20,571
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
(126,325
|
)
|
|
41,031
|
|
||
Cash and cash equivalents at beginning of period
|
|
1,997,199
|
|
|
1,764,746
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,870,874
|
|
|
$
|
1,805,777
|
|
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
AOCI
|
Retained
Earnings |
Total Shareholders' Equity
|
NCI
|
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
DECEMBER 31, 2018 |
139,654
|
|
$
|
1,396
|
|
$
|
82,106
|
|
$
|
(543,531
|
)
|
$
|
3,294,154
|
|
$
|
2,834,125
|
|
$
|
146,128
|
|
$
|
2,980,253
|
|
Net earnings (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(68,904
|
)
|
(68,904
|
)
|
23,859
|
|
(45,045
|
)
|
|||||||
Cumulative adjustment for the adoption of ASC 842
|
—
|
|
—
|
|
—
|
|
—
|
|
20,544
|
|
20,544
|
|
—
|
|
20,544
|
|
|||||||
OCI
|
—
|
|
—
|
|
—
|
|
44,910
|
|
—
|
|
44,910
|
|
485
|
|
45,395
|
|
|||||||
Dividends ($0.21 per share)
|
—
|
|
—
|
|
218
|
|
—
|
|
(29,923
|
)
|
(29,705
|
)
|
—
|
|
(29,705
|
)
|
|||||||
Distributions to NCI
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,152
|
)
|
(10,152
|
)
|
|||||||
Capital contributions by NCI
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,767
|
|
4,767
|
|
|||||||
Other NCI transactions
|
—
|
|
—
|
|
1,035
|
|
—
|
|
—
|
|
1,035
|
|
(1,475
|
)
|
(440
|
)
|
|||||||
Stock-based plan activity
|
455
|
|
3
|
|
11,097
|
|
—
|
|
—
|
|
11,100
|
|
—
|
|
11,100
|
|
|||||||
BALANCE AS OF
MARCH 31, 2019 |
140,109
|
|
$
|
1,399
|
|
$
|
94,456
|
|
$
|
(498,621
|
)
|
$
|
3,215,871
|
|
$
|
2,813,105
|
|
$
|
163,612
|
|
$
|
2,976,717
|
|
(in thousands, except per share amounts)
|
Common Stock
|
Additional Paid-In Capital
|
AOCI
|
Retained
Earnings |
Total Shareholders' Equity
|
NCI
|
Total
Equity |
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
BALANCE AS OF
DECEMBER 31, 2019 |
140,174
|
|
$
|
1,399
|
|
$
|
165,314
|
|
$
|
(379,873
|
)
|
$
|
1,700,912
|
|
$
|
1,487,752
|
|
$
|
96,340
|
|
$
|
1,584,092
|
|
Net earnings (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(265,959
|
)
|
(265,959
|
)
|
9,509
|
|
(256,450
|
)
|
|||||||
Cumulative adjustment for the adoption of ASC 326
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,977
|
)
|
(1,977
|
)
|
—
|
|
(1,977
|
)
|
|||||||
OCI
|
—
|
|
—
|
|
—
|
|
(119,480
|
)
|
—
|
|
(119,480
|
)
|
(4,217
|
)
|
(123,697
|
)
|
|||||||
Dividends ($0.10 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(14,131
|
)
|
(14,131
|
)
|
—
|
|
(14,131
|
)
|
|||||||
Distributions to NCI
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,751
|
)
|
(2,751
|
)
|
|||||||
Capital contributions by NCI
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19,968
|
|
19,968
|
|
|||||||
Other NCI transactions
|
—
|
|
—
|
|
672
|
|
—
|
|
—
|
|
672
|
|
(329
|
)
|
343
|
|
|||||||
Stock-based plan activity
|
359
|
|
4
|
|
4,764
|
|
—
|
|
—
|
|
4,768
|
|
—
|
|
4,768
|
|
|||||||
BALANCE AS OF
MARCH 31, 2020 |
140,533
|
|
$
|
1,403
|
|
$
|
170,750
|
|
$
|
(499,353
|
)
|
$
|
1,418,845
|
|
$
|
1,091,645
|
|
$
|
118,520
|
|
$
|
1,210,165
|
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands, except per share amounts)
|
|
2020
|
|
2019
|
||||
Amounts attributable to Fluor Corporation:
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(171,104
|
)
|
|
$
|
(68,090
|
)
|
Net earnings (loss) from discontinued operations
|
|
(94,855
|
)
|
|
(814
|
)
|
||
Net earnings (loss)
|
|
$
|
(265,959
|
)
|
|
$
|
(68,904
|
)
|
|
|
|
|
|
||||
Basic EPS attributable to Fluor Corporation:
|
|
|
|
|
||||
Weighted average common shares outstanding
|
|
140,262
|
|
|
139,776
|
|
||
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(1.22
|
)
|
|
$
|
(0.49
|
)
|
Net earnings (loss) from discontinued operations
|
|
(0.68
|
)
|
|
—
|
|
||
Net earnings (loss)
|
|
$
|
(1.90
|
)
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
||||
Diluted EPS attributable to Fluor Corporation:
|
|
|
|
|
||||
Weighted average common shares outstanding
|
|
140,262
|
|
|
139,776
|
|
||
Diluted effect:
|
|
|
|
|
||||
Stock options, RSUs, restricted stock and VDI units(1)
|
|
—
|
|
|
—
|
|
||
Weighted average diluted shares outstanding
|
|
140,262
|
|
|
139,776
|
|
||
|
|
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(1.22
|
)
|
|
$
|
(0.49
|
)
|
Net earnings (loss) from discontinued operations
|
|
(0.68
|
)
|
|
—
|
|
||
Net earnings (loss)
|
|
$
|
(1.90
|
)
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
||||
Anti-dilutive securities not included above
|
|
5,545
|
|
|
4,776
|
|
(1)
|
Stock options, RSUs, restricted stock and VDI units totaling 438,000 and 740,000 were excluded from weighted average diluted shares outstanding for the three months ended March 31, 2020 and 2019, respectively, as the shares would be anti-dilutive.
|
|
|
Three Months Ended
March 31, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Revenue
|
|
|
|
|
||||
Energy & Chemicals
|
|
$
|
1,355.5
|
|
|
$
|
1,474.7
|
|
Mining & Industrial
|
|
1,173.9
|
|
|
1,051.3
|
|
||
Infrastructure & Power
|
|
385.9
|
|
|
344.0
|
|
||
Government
|
|
717.7
|
|
|
756.1
|
|
||
Diversified Services
|
|
457.1
|
|
|
488.4
|
|
||
Other
|
|
28.5
|
|
|
19.1
|
|
||
Total revenue
|
|
$
|
4,118.6
|
|
|
$
|
4,133.6
|
|
|
|
|
|
|
||||
Segment profit (loss)
|
|
|
|
|
||||
Energy & Chemicals
|
|
$
|
(6.4
|
)
|
|
$
|
12.2
|
|
Mining & Industrial
|
|
38.7
|
|
|
27.5
|
|
||
Infrastructure & Power
|
|
5.2
|
|
|
(21.8
|
)
|
||
Government
|
|
30.9
|
|
|
38.4
|
|
||
Diversified Services
|
|
5.1
|
|
|
8.7
|
|
||
Other
|
|
(21.6
|
)
|
|
(26.1
|
)
|
||
Total segment profit (loss)
|
|
$
|
51.9
|
|
|
$
|
38.9
|
|
|
|
|
|
|
||||
Corporate G&A
|
|
14.1
|
|
|
(58.6
|
)
|
||
Impairment, restructuring and other exit costs
|
|
(297.6
|
)
|
|
(27.4
|
)
|
||
Interest income (expense), net
|
|
(6.3
|
)
|
|
(5.7
|
)
|
||
Earnings (loss) attributable to NCI from continuing operations
|
|
9.5
|
|
|
23.8
|
|
||
Earnings (loss) from continuing operations before taxes
|
|
$
|
(228.4
|
)
|
|
$
|
(29.0
|
)
|
(in millions)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Energy & Chemicals
|
|
$
|
1,006.8
|
|
|
$
|
1,139.3
|
|
Mining & Industrial
|
|
624.1
|
|
|
594.9
|
|
||
Infrastructure & Power
|
|
505.0
|
|
|
471.2
|
|
||
Government
|
|
623.8
|
|
|
629.1
|
|
||
Diversified Services
|
|
1,004.0
|
|
|
1,290.6
|
|
||
Other
|
|
43.4
|
|
|
68.5
|
|
||
Corporate
|
|
3,232.7
|
|
|
3,379.3
|
|
|
|
Three Months Ended
March 31, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
North America
|
|
$
|
2,445.0
|
|
|
$
|
1,905.7
|
|
Asia Pacific (including Australia)
|
|
326.6
|
|
|
419.9
|
|
||
Europe
|
|
671.7
|
|
|
1,010.6
|
|
||
Central and South America
|
|
507.3
|
|
|
454.0
|
|
||
Middle East and Africa
|
|
168.0
|
|
|
343.4
|
|
||
Total revenue
|
|
$
|
4,118.6
|
|
|
$
|
4,133.6
|
|
5.
|
Impairment, Restructuring and Other Exit Costs
|
(in millions)
|
|
Recognized to Date
|
|
Expected to be Incurred
|
||||
Restructuring and other exit costs:
|
|
|
|
|
||||
Severance
|
|
$
|
63.9
|
|
|
$
|
70.0
|
|
Asset impairments
|
|
90.4
|
|
|
90.4
|
|
||
Entity liquidation costs (including the recognition of cumulative translation adjustments)
|
|
83.7
|
|
|
85.0
|
|
||
Other exit costs
|
|
2.0
|
|
|
5.0
|
|
||
Total restructuring and other exit costs
|
|
$
|
240.0
|
|
|
$
|
250.4
|
|
(in thousands)
|
Severance
|
Lease Exit Costs
|
Other
|
Total
|
||||||||
Balance as of December 31, 2019
|
$
|
46,303
|
|
$
|
570
|
|
$
|
307
|
|
$
|
47,180
|
|
Restructuring charges accrued during the period
|
(67
|
)
|
94
|
|
506
|
|
533
|
|
||||
Cash payments / settlements during the period
|
(3,636
|
)
|
(640
|
)
|
(213
|
)
|
(4,489
|
)
|
||||
Currency translation
|
(172
|
)
|
—
|
|
—
|
|
(172
|
)
|
||||
Balance as of March 31, 2020
|
$
|
42,428
|
|
$
|
24
|
|
$
|
600
|
|
$
|
43,052
|
|
•
|
Other-than-temporary impairment of equity method investments in the Energy & Chemicals business of $86 million; and
|
(in millions)
|
March 31,
2020 |
December 31,
2019 |
||||
Information about contract assets:
|
|
|
||||
Contract assets
|
|
|
||||
Unbilled receivables
|
$
|
840
|
|
$
|
851
|
|
Contract work in progress
|
471
|
|
387
|
|
||
Contract assets
|
$
|
1,311
|
|
$
|
1,238
|
|
|
|
|
||||
Advance billings deducted from contract assets
|
$
|
515
|
|
$
|
574
|
|
|
|
|
||||
|
Three Months Ended
March 31, |
|||||
(in millions)
|
2020
|
2019
|
||||
Information about contract liabilities:
|
|
|
||||
Revenue recognized during the year that was included in contract liabilities as of January 1
|
$
|
543
|
|
$
|
581
|
|
(in millions)
|
March 31, 2020
|
||
Within 1 year
|
$
|
14,775
|
|
1 to 2 years
|
8,103
|
|
|
Thereafter
|
6,514
|
|
|
Total remaining unsatisfied performance obligations
|
$
|
29,392
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||||||
|
|
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)
|
|
$
|
7,091
|
|
|
$
|
7,091
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,719
|
|
|
$
|
7,719
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
|
14,640
|
|
|
—
|
|
|
14,640
|
|
|
—
|
|
|
7,167
|
|
|
—
|
|
|
7,167
|
|
|
—
|
|
||||||||
Commodity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative liabilities(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
|
$
|
18,168
|
|
|
$
|
—
|
|
|
$
|
18,168
|
|
|
$
|
—
|
|
|
$
|
6,561
|
|
|
$
|
—
|
|
|
$
|
6,561
|
|
|
$
|
—
|
|
Commodity
|
|
6,985
|
|
|
—
|
|
|
6,985
|
|
|
—
|
|
|
1,247
|
|
|
—
|
|
|
1,247
|
|
|
—
|
|
(1)
|
Consists of registered money market funds and an equity index fund. These investments, which are trading securities, represent the net asset value 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)
|
Foreign currency and commodity derivatives are estimated using pricing models with market-based inputs, which take into account the present value of estimated future cash flows.
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
(in thousands)
|
Fair Value
Hierarchy
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash(1)
|
Level 1
|
|
$
|
1,109,348
|
|
|
$
|
1,109,348
|
|
|
$
|
1,014,138
|
|
|
$
|
1,014,138
|
|
Cash equivalents(2)
|
Level 2
|
|
761,526
|
|
|
761,526
|
|
|
983,061
|
|
|
983,061
|
|
||||
Marketable securities(3)
|
Level 2
|
|
6,477
|
|
|
6,477
|
|
|
7,262
|
|
|
7,262
|
|
||||
Notes receivable, including noncurrent portion(4)
|
Level 3
|
|
24,513
|
|
|
24,513
|
|
|
28,117
|
|
|
28,117
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
2016 Senior Notes(5)
|
Level 2
|
|
$
|
553,050
|
|
|
$
|
349,659
|
|
|
$
|
557,185
|
|
|
$
|
562,399
|
|
2014 Senior Notes(5)
|
Level 2
|
|
495,480
|
|
|
349,145
|
|
|
495,240
|
|
|
510,145
|
|
||||
2018 Senior Notes(5)
|
Level 2
|
|
594,660
|
|
|
409,692
|
|
|
594,502
|
|
|
609,918
|
|
||||
Other borrowings, including noncurrent portion(6)
|
Level 2
|
|
55,187
|
|
|
55,187
|
|
|
43,539
|
|
|
43,539
|
|
(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 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 Senior Notes was estimated based on the quoted market prices for these issues as of the end of the period.
|
(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.
|
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
Location of Component
|
|
2020
|
|
2019
|
||||
Service cost
|
Cost of revenue
|
|
$
|
4,384
|
|
|
$
|
3,981
|
|
Interest cost
|
Corp G&A
|
|
2,394
|
|
|
4,975
|
|
||
Expected return on assets
|
Corp G&A
|
|
(6,356
|
)
|
|
(8,279
|
)
|
||
Amortization of prior service credit
|
Corp G&A
|
|
(218
|
)
|
|
(225
|
)
|
||
Recognized net actuarial loss
|
Corp G&A
|
|
1,402
|
|
|
2,619
|
|
||
Net periodic pension expense
|
|
|
$
|
1,606
|
|
|
$
|
3,071
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
(in thousands)
|
|
Balance Sheet
Location
|
|
March 31,
2020 |
|
December 31,
2019 |
|
Balance Sheet
Location
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||||
Foreign currency contracts
|
|
Other current assets
|
|
$
|
4,933
|
|
|
$
|
2,871
|
|
|
Other accrued liabilities
|
|
$
|
7,040
|
|
|
$
|
1,585
|
|
Commodity contracts
|
|
Other current assets
|
|
—
|
|
|
10
|
|
|
Other accrued liabilities
|
|
158
|
|
|
—
|
|
||||
Foreign currency contracts
|
|
Other assets
|
|
7,406
|
|
|
3,757
|
|
|
Noncurrent liabilities
|
|
11,128
|
|
|
4,747
|
|
||||
Total
|
|
|
|
$
|
12,339
|
|
|
$
|
6,638
|
|
|
|
|
$
|
18,326
|
|
|
$
|
6,332
|
|
|
|
After-Tax Amount of Gain (Loss) Recognized in OCI
|
|
|
After-Tax Amount of Gain (Loss) Reclassified from AOCI into Earnings
|
||||||||||||
|
|
Three Months Ended
March 31, |
|
|
Three Months Ended
March 31, |
||||||||||||
Cash Flow Hedges (in thousands)
|
|
2020
|
|
2019
|
|
Location of Gain (Loss)
|
2020
|
|
2019
|
||||||||
Foreign currency contracts
|
|
$
|
(5,140
|
)
|
|
$
|
2,696
|
|
|
Total cost of revenue
|
$
|
626
|
|
|
$
|
(499
|
)
|
Commodity contracts
|
|
(111
|
)
|
|
—
|
|
|
Total cost of revenue
|
12
|
|
|
—
|
|
||||
Interest rate contracts
|
|
—
|
|
|
—
|
|
|
Interest expense
|
(419
|
)
|
|
(262
|
)
|
||||
Total
|
|
$
|
(5,251
|
)
|
|
$
|
2,696
|
|
|
|
$
|
219
|
|
|
$
|
(761
|
)
|
|
|
Three Months Ended
March 31, 2020 |
|
Three Months Ended
March 31, 2019 |
||||||||||||||||||||
(in thousands)
|
|
Before-Tax
Amount
|
|
Tax
Benefit
(Expense)
|
|
Net-of-Tax
Amount
|
|
Before-Tax
Amount
|
|
Tax
Benefit
(Expense)
|
|
Net-of-Tax
Amount
|
||||||||||||
OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
$
|
(111,101
|
)
|
|
$
|
—
|
|
|
$
|
(111,101
|
)
|
|
$
|
44,210
|
|
|
$
|
(2,014
|
)
|
|
$
|
42,196
|
|
Ownership share of equity method investees’ OCI
|
|
(2,519
|
)
|
|
(5,653
|
)
|
|
(8,172
|
)
|
|
(3,495
|
)
|
|
1,173
|
|
|
(2,322
|
)
|
||||||
Defined benefit pension and postretirement plan adjustments
|
|
1,002
|
|
|
44
|
|
|
1,046
|
|
|
2,210
|
|
|
(146
|
)
|
|
2,064
|
|
||||||
Unrealized gain (loss) on derivative contracts
|
|
(5,874
|
)
|
|
404
|
|
|
(5,470
|
)
|
|
4,634
|
|
|
(1,177
|
)
|
|
3,457
|
|
||||||
Total OCI
|
|
(118,492
|
)
|
|
(5,205
|
)
|
|
(123,697
|
)
|
|
47,559
|
|
|
(2,164
|
)
|
|
45,395
|
|
||||||
Less: OCI attributable to NCI
|
|
(4,217
|
)
|
|
—
|
|
|
(4,217
|
)
|
|
485
|
|
|
—
|
|
|
485
|
|
||||||
OCI attributable to Fluor Corporation
|
|
$
|
(114,275
|
)
|
|
$
|
(5,205
|
)
|
|
$
|
(119,480
|
)
|
|
$
|
47,074
|
|
|
$
|
(2,164
|
)
|
|
$
|
44,910
|
|
(in thousands)
|
Foreign
Currency Translation |
|
Ownership
Share of Equity Method Investees’ OCI |
|
Defined
Benefit Pension and Postretirement Plans |
|
Unrealized
Gain (Loss) on Derivative Contracts |
|
Accumulated
OCI, Net |
||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance as of December 31, 2019
|
$
|
(242,950
|
)
|
|
$
|
(35,456
|
)
|
|
$
|
(99,197
|
)
|
|
$
|
(2,270
|
)
|
|
$
|
(379,873
|
)
|
OCI before reclassifications
|
(106,884
|
)
|
|
(8,313
|
)
|
|
—
|
|
|
(5,251
|
)
|
|
(120,448
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
141
|
|
|
1,046
|
|
|
(219
|
)
|
|
968
|
|
|||||
Net OCI
|
(106,884
|
)
|
|
(8,172
|
)
|
|
1,046
|
|
|
(5,470
|
)
|
|
(119,480
|
)
|
|||||
Balance as of March 31, 2020
|
$
|
(349,834
|
)
|
|
$
|
(43,628
|
)
|
|
$
|
(98,151
|
)
|
|
$
|
(7,740
|
)
|
|
$
|
(499,353
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable to NCI:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of December 31, 2019
|
$
|
(5,051
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,051
|
)
|
OCI before reclassifications
|
(4,217
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,217
|
)
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net OCI
|
(4,217
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,217
|
)
|
|||||
Balance as of March 31, 2020
|
$
|
(9,268
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(9,268
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable to Fluor Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance as of December 31, 2018
|
$
|
(309,800
|
)
|
|
$
|
(23,672
|
)
|
|
$
|
(204,649
|
)
|
|
$
|
(5,410
|
)
|
|
$
|
(543,531
|
)
|
OCI before reclassifications
|
41,711
|
|
|
(2,464
|
)
|
|
—
|
|
|
2,696
|
|
|
41,943
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
142
|
|
|
2,064
|
|
|
761
|
|
|
2,967
|
|
|||||
Net OCI
|
41,711
|
|
|
(2,322
|
)
|
|
2,064
|
|
|
3,457
|
|
|
44,910
|
|
|||||
Balance as of March 31, 2019
|
$
|
(268,089
|
)
|
|
$
|
(25,994
|
)
|
|
$
|
(202,585
|
)
|
|
$
|
(1,953
|
)
|
|
$
|
(498,621
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable to NCI:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of December 31, 2018
|
$
|
(3,701
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,701
|
)
|
OCI before reclassifications
|
485
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net OCI
|
485
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|||||
Balance as of March 31, 2019
|
$
|
(3,216
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,216
|
)
|
|
|
Location in Statement of Operations
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
|
|
2020
|
|
2019
|
|||||
Component of AOCI:
|
|
|
|
|
|
|
|
|
||
Ownership share of equity method investees’ OCI
|
|
Cost of revenue
|
|
$
|
(188
|
)
|
|
$
|
(189
|
)
|
Income tax benefit
|
|
Income tax expense (benefit)
|
|
47
|
|
|
47
|
|
||
Net of tax
|
|
|
|
$
|
(141
|
)
|
|
$
|
(142
|
)
|
|
|
|
|
|
|
|
||||
Defined benefit pension plan adjustments
|
|
Corporate G&A
|
|
$
|
(1,002
|
)
|
|
$
|
(2,210
|
)
|
Income tax benefit (expense)
|
|
Income tax expense (benefit)
|
|
(44
|
)
|
|
146
|
|
||
Net of tax
|
|
|
|
$
|
(1,046
|
)
|
|
$
|
(2,064
|
)
|
|
|
|
|
|
|
|
||||
Unrealized gain (loss) on derivative contracts:
|
|
|
|
|
|
|
||||
Commodity and foreign currency contracts
|
|
Various accounts(1)
|
|
$
|
642
|
|
|
$
|
(845
|
)
|
Interest rate contracts
|
|
Interest expense
|
|
(419
|
)
|
|
(420
|
)
|
||
Income tax benefit (expense)
|
|
Income tax expense (benefit)
|
|
(4
|
)
|
|
504
|
|
||
Net of tax
|
|
|
|
$
|
219
|
|
|
$
|
(761
|
)
|
(1)
|
Gains and losses on commodity and foreign currency derivative contracts were reclassified to "Cost of revenue" and "Corporate G&A".
|
|
|
Three Months Ended
March 31, 2020 |
|
Three Months Ended
March 31, 2019 |
||||||||||||||||||||
(in thousands)
|
|
AMECO
|
|
Other
|
|
Total
|
|
AMECO
|
|
Other
|
|
Total
|
||||||||||||
Revenue
|
|
$
|
60,538
|
|
|
$
|
—
|
|
|
$
|
60,538
|
|
|
$
|
61,786
|
|
|
$
|
—
|
|
|
$
|
61,786
|
|
Cost of revenue
|
|
48,269
|
|
|
—
|
|
|
48,269
|
|
|
60,621
|
|
|
—
|
|
|
60,621
|
|
||||||
Corporate general and administrative expense
|
|
14
|
|
|
5,703
|
|
|
5,717
|
|
|
79
|
|
|
2,015
|
|
|
2,094
|
|
||||||
Impairment of assets held for sale
|
|
100,000
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense (income), net
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
||||||
Total cost and expenses
|
|
148,233
|
|
|
5,703
|
|
|
153,936
|
|
|
60,624
|
|
|
2,015
|
|
|
62,639
|
|
||||||
Earnings (loss) before taxes from discontinued operations
|
|
(87,695
|
)
|
|
(5,703
|
)
|
|
(93,398
|
)
|
|
1,162
|
|
|
(2,015
|
)
|
|
(853
|
)
|
||||||
Income tax expense (benefit)
|
|
1,457
|
|
|
—
|
|
|
1,457
|
|
|
427
|
|
|
(466
|
)
|
|
(39
|
)
|
||||||
Net earnings (loss) from discontinued operations
|
|
$
|
(89,152
|
)
|
|
$
|
(5,703
|
)
|
|
$
|
(94,855
|
)
|
|
$
|
735
|
|
|
$
|
(1,549
|
)
|
|
$
|
(814
|
)
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||||||
(in thousands)
|
|
AMECO
|
Other
|
Total from Discontinued Operations
|
Other Assets and Liabilities from Continuing Operations
|
Total
|
|
AMECO
|
Other
|
Total from Discontinued Operations
|
Other Assets and Liabilities from Continuing Operations
|
Total
|
||||||||||||||||||||
Accounts and notes receivable, net
|
|
$
|
49,305
|
|
$
|
15,925
|
|
$
|
65,230
|
|
$
|
14,927
|
|
$
|
80,157
|
|
|
$
|
69,126
|
|
$
|
15,925
|
|
$
|
85,051
|
|
$
|
17,513
|
|
$
|
102,564
|
|
Contract assets
|
|
3,930
|
|
—
|
|
3,930
|
|
4,603
|
|
8,533
|
|
|
3,497
|
|
—
|
|
3,497
|
|
3,779
|
|
7,276
|
|
||||||||||
Other current assets
|
|
46,014
|
|
—
|
|
46,014
|
|
7,029
|
|
53,043
|
|
|
54,116
|
|
—
|
|
54,116
|
|
8,112
|
|
62,228
|
|
||||||||||
Current assets held for sale
|
|
$
|
99,249
|
|
$
|
15,925
|
|
$
|
115,174
|
|
$
|
26,559
|
|
$
|
141,733
|
|
|
$
|
126,739
|
|
$
|
15,925
|
|
$
|
142,664
|
|
$
|
29,404
|
|
$
|
172,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Property, plant and equipment, net
|
|
$
|
132,315
|
|
$
|
—
|
|
$
|
132,315
|
|
$
|
59,683
|
|
$
|
191,998
|
|
|
$
|
232,792
|
|
$
|
—
|
|
$
|
232,792
|
|
$
|
106,762
|
|
$
|
339,554
|
|
Goodwill
|
|
37
|
|
—
|
|
37
|
|
7,311
|
|
7,348
|
|
|
12,338
|
|
—
|
|
12,338
|
|
9,295
|
|
21,633
|
|
||||||||||
Investments
|
|
—
|
|
—
|
|
—
|
|
6,118
|
|
6,118
|
|
|
—
|
|
—
|
|
—
|
|
7,293
|
|
7,293
|
|
||||||||||
Other assets
|
|
5,135
|
|
—
|
|
5,135
|
|
14,307
|
|
19,442
|
|
|
5,868
|
|
—
|
|
5,868
|
|
12,654
|
|
18,522
|
|
||||||||||
Noncurrent assets held for sale(1)
|
|
$
|
137,487
|
|
$
|
—
|
|
$
|
137,487
|
|
$
|
87,419
|
|
$
|
224,906
|
|
|
$
|
250,998
|
|
$
|
—
|
|
$
|
250,998
|
|
$
|
136,004
|
|
$
|
387,002
|
|
Total assets held for sale
|
|
$
|
236,736
|
|
$
|
15,925
|
|
$
|
252,661
|
|
$
|
113,978
|
|
$
|
366,639
|
|
|
$
|
377,737
|
|
$
|
15,925
|
|
$
|
393,662
|
|
$
|
165,408
|
|
$
|
559,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Accounts payable
|
|
$
|
14,438
|
|
$
|
8
|
|
$
|
14,446
|
|
$
|
7,384
|
|
$
|
21,830
|
|
|
$
|
24,692
|
|
$
|
—
|
|
$
|
24,692
|
|
$
|
6,702
|
|
$
|
31,394
|
|
Contract liabilities
|
|
2,462
|
|
—
|
|
2,462
|
|
55
|
|
2,517
|
|
|
4,466
|
|
—
|
|
4,466
|
|
25
|
|
4,491
|
|
||||||||||
Accrued salaries, wages and benefits
|
|
8,177
|
|
—
|
|
8,177
|
|
118
|
|
8,295
|
|
|
8,913
|
|
—
|
|
8,913
|
|
919
|
|
9,832
|
|
||||||||||
Other accrued liabilities
|
|
7,604
|
|
461
|
|
8,065
|
|
10,288
|
|
18,353
|
|
|
9,451
|
|
—
|
|
9,451
|
|
11,562
|
|
21,013
|
|
||||||||||
Current liabilities held for sale
|
|
$
|
32,681
|
|
$
|
469
|
|
$
|
33,150
|
|
$
|
17,845
|
|
$
|
50,995
|
|
|
$
|
47,522
|
|
$
|
—
|
|
$
|
47,522
|
|
$
|
19,208
|
|
$
|
66,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Noncurrent liabilities held for sale(1)
|
|
$
|
3,638
|
|
$
|
—
|
|
$
|
3,638
|
|
$
|
10,706
|
|
$
|
14,344
|
|
|
$
|
4,272
|
|
$
|
—
|
|
$
|
4,272
|
|
$
|
11,320
|
|
$
|
15,592
|
|
Total liabilities held for sale
|
|
$
|
36,319
|
|
$
|
469
|
|
$
|
36,788
|
|
$
|
28,551
|
|
$
|
65,339
|
|
|
$
|
51,794
|
|
$
|
—
|
|
$
|
51,794
|
|
$
|
30,528
|
|
$
|
82,322
|
|
•
|
The severity and duration of the COVID-19 pandemic and actions by governments, businesses and individuals in response to the pandemic;
|
•
|
The cyclical nature of many of the markets we serve, 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;
|
•
|
Our 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;
|
•
|
Failure to remediate material weaknesses in our internal controls over financial reporting or the failure to maintain an effective system of internal controls;
|
•
|
Failure to prepare and timely file our periodic reports, which limits our access to public markets to raise debt and equity capital and restricts our ability to issue equity securities;
|
•
|
The restatement of certain of our previously issued consolidated financial statements, which may result in unanticipated costs and may affect investor confidence and our reputation;
|
•
|
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, regulatory proceedings 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 we earn;
|
•
|
Failure to maintain safe work sites;
|
•
|
Repercussions of events beyond our control, such as severe weather conditions, natural disasters, pandemics, political crises or other catastrophic events, that may significantly affect operations, result in higher cost or subject the company to liability claims by our clients;
|
•
|
Differences between our actual results and the assumptions and estimates used to prepare our financial statements;
|
•
|
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;
|
•
|
The availability of credit and restrictions imposed by credit facilities, both for the company and our clients, suppliers,
|
•
|
Possible limitations of bonding or letter of credit capacity;
|
•
|
Failure to successfully implement our strategic and operational initiatives;
|
•
|
The risks associated with acquisitions, dispositions or other investments, including the failure to successfully integrate acquired businesses;
|
•
|
Uncertainties, restrictions and regulations impacting our government contracts;
|
•
|
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;
|
•
|
Failure of our employees, agents or partners to comply with laws, which could result in harm to our reputation and reduced profits or losses;
|
•
|
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 loss of business from one or more significant clients;
|
•
|
The failure to adequately protect intellectual property rights;
|
•
|
Impairments to goodwill, investments, deferred tax assets or other intangible assets; and
|
•
|
Restrictions on possible transactions imposed by our charter documents, Delaware law and our stockholder rights agreement.
|
(In millions)
|
|
|
|
|
|
|||||||
THREE MONTHS ENDED MARCH 31
|
|
2020
|
|
2019
|
||||||||
Revenue
|
|
|
|
|
|
|
||||||
Energy & Chemicals
|
|
$
|
1,355.5
|
|
|
|
$
|
1,474.7
|
|
|
||
Mining & Industrial
|
|
1,173.9
|
|
|
|
1,051.3
|
|
|
||||
Infrastructure & Power
|
|
385.9
|
|
|
|
344.0
|
|
|
||||
Government
|
|
717.7
|
|
|
|
756.1
|
|
|
||||
Diversified Services
|
|
457.1
|
|
|
|
488.4
|
|
|
||||
Other
|
|
28.5
|
|
|
|
19.1
|
|
|
||||
Total revenue
|
|
$
|
4,118.6
|
|
|
|
$
|
4,133.6
|
|
|
||
|
|
|
|
|
|
|
||||||
Segment profit (loss) $ and margin %
|
|
|
|
|
|
|
||||||
Energy & Chemicals
|
|
$
|
(6.4
|
)
|
(0.5
|
)%
|
|
$
|
12.2
|
|
0.8
|
%
|
Mining & Industrial
|
|
38.7
|
|
3.3
|
%
|
|
27.5
|
|
2.6
|
%
|
||
Infrastructure & Power
|
|
5.2
|
|
1.4
|
%
|
|
(21.8
|
)
|
(6.3
|
)%
|
||
Government
|
|
30.9
|
|
4.3
|
%
|
|
38.4
|
|
5.1
|
%
|
||
Diversified Services
|
|
5.1
|
|
1.1
|
%
|
|
8.7
|
|
1.8
|
%
|
||
Other
|
|
(21.6
|
)
|
NM
|
|
(26.1
|
)
|
NM
|
||||
Total segment profit (loss) $ and margin %(1)
|
|
$
|
51.9
|
|
1.3
|
%
|
|
$
|
38.9
|
|
0.9
|
%
|
|
|
|
|
|
|
|
||||||
Corporate G&A
|
|
14.1
|
|
|
|
(58.6
|
)
|
|
||||
Impairment, restructuring and other exit costs
|
|
(297.6
|
)
|
|
|
(27.4
|
)
|
|
||||
Interest expense, net
|
|
(6.3
|
)
|
|
|
(5.7
|
)
|
|
||||
Earnings (loss) attributable to NCI from continuing operations
|
|
9.5
|
|
|
|
23.8
|
|
|
||||
Earnings (loss) from continuing operations before taxes
|
|
(228.4
|
)
|
|
|
(29.0
|
)
|
|
||||
Income tax expense (benefit)
|
|
(66.8
|
)
|
|
|
15.2
|
|
|
||||
Net earnings (loss) from continuing operations
|
|
$
|
(161.6
|
)
|
|
|
$
|
(44.2
|
)
|
|
||
|
|
|
|
|
|
|
||||||
New awards
|
|
|
|
|
|
|
||||||
Energy & Chemicals
|
|
$
|
1,542.3
|
|
|
|
$
|
1,002.7
|
|
|
||
Mining & Industrial
|
|
1,600.5
|
|
|
|
723.2
|
|
|
||||
Infrastructure & Power
|
|
7.3
|
|
|
|
533.1
|
|
|
||||
Government
|
|
684.0
|
|
|
|
180.3
|
|
|
||||
Diversified Services
|
|
357.0
|
|
|
|
809.8
|
|
|
||||
Other
|
|
—
|
|
|
|
151.1
|
|
|
||||
Total new awards
|
|
$
|
4,191.1
|
|
|
|
$
|
3,400.2
|
|
|
||
|
|
|
|
|
|
|
||||||
New awards related to projects located outside of the U.S.
|
|
59%
|
|
|
35%
|
|
||||||
|
|
|
|
|
|
|
||||||
Backlog
|
|
March 31,
2020 |
|
|
December 31,
2019 |
|
||||||
Energy & Chemicals
|
|
$
|
14,093.8
|
|
|
|
$
|
14,128.9
|
|
|
||
Mining & Industrial
|
|
5,502.6
|
|
|
|
5,383.9
|
|
|
||||
Infrastructure & Power
|
|
5,655.0
|
|
|
|
6,079.4
|
|
|
||||
Government
|
|
3,581.4
|
|
|
|
3,556.1
|
|
|
||||
Diversified Services
|
|
2,343.9
|
|
|
|
2,541.6
|
|
|
||||
Other
|
|
209.0
|
|
|
|
244.0
|
|
|
||||
Total backlog
|
|
$
|
31,385.7
|
|
|
|
$
|
31,933.9
|
|
|
||
|
|
|
|
|
|
|
||||||
Backlog related to projects located outside of the U.S.
|
|
65%
|
|
|
67%
|
|
(1)
|
Total segment profit (loss) is a non-GAAP financial measure. We believe that total segment profit (loss) provides a meaningful perspective on our business results as it is the aggregation of individual segment profit (loss) measures that we use to evaluate and manage our business performance.
|
•
|
$298 million for impairments of goodwill, intangible assets, investments and other assets;
|
•
|
$55 million for current expected credit losses associated with Energy & Chemical clients;
|
•
|
$52 million for project positions for potential COVID-19 related schedule delays and associated cost growth; and
|
•
|
$100 million for impairments of assets held for sale (included in discontinued operations), of which $12 million related to goodwill.
|
(in millions)
|
|
||||||
THREE MONTHS ENDED MARCH 31
|
2020
|
|
2019
|
||||
Corporate G&A
|
|
|
|
||||
Compensation
|
$
|
18.8
|
|
|
$
|
33.0
|
|
Foreign currency (gains) losses
|
(44.0
|
)
|
|
19.0
|
|
||
Other
|
11.1
|
|
|
6.6
|
|
||
Corporate G&A
|
$
|
(14.1
|
)
|
|
$
|
58.6
|
|
•
|
Impairment testing of investments as part of other than temporary impairment assessments when impairment indicators are present
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
|
2020
|
|
2019
|
||||
OPERATING CASH FLOW
|
|
$
|
(63,743
|
)
|
|
$
|
(17,476
|
)
|
|
|
|
|
|
||||
INVESTING CASH FLOW
|
|
|
|
|
||||
Proceeds from sales and maturities (purchases) of marketable securities
|
|
806
|
|
|
116,119
|
|
||
Capital expenditures
|
|
(30,094
|
)
|
|
(48,172
|
)
|
||
Proceeds from sales of property, plant and equipment
|
|
13,465
|
|
|
10,720
|
|
||
Investments in partnerships and joint ventures
|
|
(5,971
|
)
|
|
(12,001
|
)
|
||
Other
|
|
56
|
|
|
1,090
|
|
||
Investing cash flow
|
|
(21,738
|
)
|
|
67,756
|
|
||
|
|
|
|
|
||||
FINANCING CASH FLOW
|
|
|
|
|
||||
Dividends paid
|
|
(14,700
|
)
|
|
(30,005
|
)
|
||
Other borrowings
|
|
22,203
|
|
|
7,692
|
|
||
Distributions paid to NCI
|
|
(2,751
|
)
|
|
(10,152
|
)
|
||
Capital contributions by NCI
|
|
19,968
|
|
|
4,767
|
|
||
Other
|
|
(2,092
|
)
|
|
(2,122
|
)
|
||
Financing cash flow
|
|
22,628
|
|
|
(29,820
|
)
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash
|
|
(63,472
|
)
|
|
20,571
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
(126,325
|
)
|
|
41,031
|
|
||
Cash and cash equivalents at beginning of period
|
|
1,997,199
|
|
|
1,764,746
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,870,874
|
|
|
$
|
1,805,777
|
|
•
|
Decreases in accounts receivable in the Mining & Industrial, Government and Diversified Services segments, primarily related to normal billing and collection activities for various projects.
|
•
|
Increases in contract assets in the Mining & Industrial and Government segments, which resulted primarily from normal project execution activities.
|
•
|
Decreases in accounts payable in the Energy & Chemicals, Mining & Industrial, Infrastructure & Power and Diversified Services segments, which resulted primarily from normal invoicing and payment activities for several projects.
|
•
|
An increase in prepaid income taxes.
|
•
|
Decreases in accounts receivable in the Mining & Industrial, Government and Diversified Services segments, primarily related to normal billing and collection activities for various projects, including LOGCAP IV.
|
•
|
Increases in contract assets in the Mining & Industrial, Infrastructure & Power and Diversified Services segments, which resulted primarily from normal project execution activities.
|
•
|
A decrease in accounts payable in the Energy & Chemicals segment, which resulted primarily from normal invoicing and payment activities.
|
|
|
Three Months Ended
March 31, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Backlog, January 1
|
|
$
|
31,933.9
|
|
|
$
|
40,050.7
|
|
New awards
|
|
4,191.1
|
|
|
3,400.2
|
|
||
Adjustments and cancellations, net
|
|
(654.1
|
)
|
|
57.5
|
|
||
Work performed
|
|
(4,085.2
|
)
|
|
(4,084.4
|
)
|
||
Backlog, March 31
|
|
$
|
31,385.7
|
|
|
$
|
39,424.0
|
|
(c)
|
The following table provides information for the quarter ended March 31, 2020 about purchases by the company 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)
|
|||||
January 1 — January 31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
10,513,093
|
|
February 1 — February 29, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,513,093
|
|
|
March 1 — March 31, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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. We continue to repurchase shares from time to time in open market transactions or privately negotiated transactions, including through pre-arranged trading programs, at our discretion, subject to market conditions and other factors and at such time and in amounts that we deem appropriate.
|
Item 6.
|
Exhibits
|
Exhibit
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
4.1
|
|
|
4.2
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS
|
|
Inline XBRL Instance Document.*
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.*
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.*
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.*
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.*
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.*
|
104
|
|
The cover page from the Company's Q1 2020 10-Q for the three months ended March 31, 2020, formatted in Inline XBRL (included in the Exhibit 101 attachments).*
|
*
|
New exhibit filed with this report.
|
|
|
|
FLUOR CORPORATION
|
|
|
|
|
|
|
|
|
Date:
|
October 22, 2020
|
By:
|
/s/ Joseph L. Brennan
|
|
|
|
Joseph L. Brennan
|
|
|
|
Chief Financial Officer
|
|
|
|
|
Date:
|
October 22, 2020
|
By:
|
/s/ John C. Regan
|
|
|
|
John C. Regan
|
|
|
|
Chief Accounting Officer
|
October 22, 2020
|
By:
|
/s/ Carlos M. Hernandez
|
|
|
Carlos M. Hernandez
|
|
|
Chief Executive Officer
|
October 22, 2020
|
By:
|
/s/ Joseph L. Brennan
|
|
|
Joseph L. Brennan
|
|
|
Executive Vice President and Chief Financial Officer
|
•
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 22, 2020
|
By:
|
/s/ Carlos M. Hernandez
|
|
|
Carlos M. Hernandez
|
|
|
Chief Executive Officer
|
•
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 22, 2020
|
By:
|
/s/ Joseph L. Brennan
|
|
|
Joseph L. Brennan
|
|
|
Executive Vice President and Chief Financial Officer
|