KBR, INC., 10-Q filed on 4/29/2016
Quarterly Report
Document And Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 12, 2016
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2016 
 
Entity Registrant Name
KBR, INC. 
 
Entity Central Index Key
0001357615 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
142,423,300 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Condensed Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Statement [Abstract]
 
 
Revenues
$ 996 
$ 1,436 
Cost of revenues
(928)
(1,366)
Gross profit
68 
70 
Equity in earnings of unconsolidated affiliates
29 
35 
General and administrative expenses
(34)
(39)
Asset impairment and restructuring charges
(2)
(2)
Gain on disposition of assets
4 
0 
Operating income
65 
64 
Other non-operating income (expense)
(5)
6 
Income before income taxes and noncontrolling interests
60 
70 
Provision for income taxes
(15)
(19)
Net income
45 
51 
Net income attributable to noncontrolling interests
(3)
(7)
Net income attributable to KBR
$ 42 
$ 44 
Earnings Per Share [Abstract]
 
 
Basic
$ 0.30 
$ 0.30 
Diluted
$ 0.30 
$ 0.30 
Basic weighted average common shares outstanding
142 
145 
Diluted weighted average common shares outstanding
142 
145 
Cash dividends declared per share
$ 0.08 
$ 0.08 
Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 45 
$ 51 
Net cumulative translation adjustments (CTA)[Abstract]
 
 
Foreign currency translation adjustments, net of tax
16 
(58)
Reclassification adjustment included in net income
0 
0 
Foreign currency translation adjustments, net of taxes of $2 and $0
16 
(58)
Actuarial losses, net of tax
0 
0 
Reclassification adjustment included in net income
6 
12 
Pension and post-retirement benefits, net of taxes of $(1) and $(2)
6 
12 
Other comprehensive income (loss), net of tax
22 
(46)
Comprehensive income
67 
5 
Less: Comprehensive income attributable to noncontrolling interests
(2)
(7)
Comprehensive income (loss) attributable to KBR
$ 65 
$ (2)
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss), taxes [Abstract]
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 2 
$ 0 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax
$ (1)
$ (2)
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and equivalents
$ 824 
$ 883 
Receivables:
 
 
Accounts receivable, net of allowance for doubtful accounts of $18 and $17
583 
628 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
222 
224 
Other current assets
116 
109 
Total current assets
1,745 
1,844 
Claims and accounts receivable
532 
526 
Property, plant, and equipment, net of accumulated depreciation of $354 and $352 (including net PPE of $45 and $48 owned by a variable interest entity)
162 
169 
Goodwill
344 
324 
Intangible assets, net of accumulated amortization of $92 and $91
53 
35 
Equity in and advances to unconsolidated affiliates
303 
281 
Deferred income taxes
97 
99 
Other assets
134 
134 
Total assets
3,370 
3,412 
Current liabilities:
 
 
Accounts payable
440 
438 
Billings in excess of costs and estimated earnings on uncompleted contracts (BIE)
471 
509 
Accrued salaries, wages and benefits
152 
173 
Nonrecourse project debt
10 
10 
Total other current liabilities
240 
263 
Total current liabilities
1,313 
1,393 
Pension obligations
314 
333 
Employee compensation and benefits
99 
105 
Income tax payable
79 
78 
Deferred income taxes
103 
94 
Nonrecourse project debt
50 
51 
Deferred income from unconsolidated affiliates
101 
100 
Other liabilities
203 
206 
Total liabilities
2,262 
2,360 
KBR Shareholders' equity:
 
 
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding
0 
0 
Common stock, $0.001 par value, 300,000,000 shares authorized, 175,474,146 and 175,108,100 shares issued, and 142,411,295 and 142,058,356 shares outstanding
0 
0 
Paid-in capital in excess of par (PIC)
2,076 
2,070 
Accumulated other comprehensive loss (AOCL)
(808)
(831)
Retained earnings
626 
595 
Treasury stock, 33,062,851 and 33,049,744 shares, at cost
(769)
(769)
Total KBR shareholders’ equity
1,125 
1,065 
Noncontrolling interests (NCI)
(17)
(13)
Total shareholders’ equity
1,108 
1,052 
Total liabilities and shareholders’ equity
$ 3,370 
$ 3,412 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Receivables:
 
 
Allowance for doubtful accounts
$ 18 
$ 17 
Property, plant, and equipment:
 
 
Accumulated depreciation
354 
352 
PP&E owned by a VIE, net
45 
48 
Intangibles:
 
 
Accumulated amortization
$ 92 
$ 91 
KBR Shareholders' equity:
 
 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
50,000,000 
50,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, shares issued
175,474,146 
175,108,100 
Common stock, shares outstanding
142,411,295 
142,058,356 
Treasury stock, shares
33,062,851 
33,049,744 
Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows used in operating activities:
 
 
Net income
$ 45 
$ 51 
Adjustments to reconcile net income to net cash used in operating activities:
 
 
Depreciation and amortization
9 
11 
Equity in earnings of unconsolidated affiliates
(29)
(35)
Deferred income tax expense
2 
0 
Other
8 
1 
Changes in operating assets and liabilities:
 
 
Accounts receivable, net of allowance for doubtful accounts
54 
3 
Costs and estimated earnings in excess of billings on uncompleted contracts
5 
44 
Accounts payable
(9)
(102)
Billings in excess of costs and estimated earnings on uncompleted contracts
(46)
(8)
Accrued salaries, wages and benefits
(20)
0 
Reserve for loss on uncompleted contracts
(16)
(37)
Payments from (advances to) unconsolidated affiliates, net
(8)
6 
Distributions of earnings from unconsolidated affiliates
20 
37 
Income taxes payable
1 
(11)
Pension funding
(10)
(11)
Net settlement of derivative contracts
(4)
(36)
Other assets and liabilities
(23)
(21)
Total cash flows used in operating activities
(21)
(108)
Cash flows used in investing activities:
 
 
Purchases of property, plant and equipment
(3)
(1)
Acquisition of technology businesses, net of cash acquired
(22)
0 
Total cash flows used in investing activities
(25)
(1)
Cash flows used in financing activities:
 
 
Payments to reacquire common stock
(2)
(16)
Acquisition of noncontrolling interest
0 
(40)
Distributions to noncontrolling interests
(6)
(7)
Payments of dividends to shareholders
(11)
(12)
Net proceeds from issuance of common stock
0 
1 
Excess tax benefits from share-based compensation
1 
0 
Other
0 
(1)
Total cash flows used in financing activities
(18)
(75)
Effect of exchange rate changes on cash
5 
(28)
Decrease in cash and equivalents
(59)
(212)
Cash and equivalents at beginning of period
883 
970 
Cash and equivalents at end of period
824 
758 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest
2 
3 
Cash paid for income taxes (net of refunds)
7 
28 
Noncash financing activities
 
 
Dividends declared
$ 11 
$ 12 
Description Of Company And Significant Accounting Policies
Description of Company and Significant Accounting Policies
Description of Company and Significant Accounting Policies

KBR, Inc., a Delaware corporation, was formed on March 21, 2006 and is headquartered in Houston, Texas. KBR, Inc. and its wholly owned and majority-owned subsidiaries (collectively referred to herein as "KBR", "the Company", "we", "us" or "our") is an engineering, procurement, construction and services company supporting the global hydrocarbons and international government services market segments. Our capabilities include engineering, procurement, construction, construction management, technology licensing, operations, maintenance and other support services to a diverse customer base, including international and national oil and gas companies, independent refiners, petrochemical producers, fertilizer producers, manufacturers and domestic and foreign governments.
  
Principles of Consolidation

Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities ("VIEs") of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 8 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation.

Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows.

We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following:

•
project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts
•
provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others
•
provisions for income taxes and related valuation allowances and tax uncertainties
•
recoverability of goodwill
•
recoverability of other intangibles and long-lived assets and related estimated lives
•
recoverability of equity method and cost method investments
•
valuation of pension obligations and pension assets
•
accruals for estimated liabilities, including litigation accruals
•
consolidation of VIEs
•
valuation of share-based compensation

In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.

Adoption of New Accounting Standards

Consolidation. Effective January 1, 2016, we adopted Accounting Standards Update ("ASU") No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which was issued by the Financial Accounting Standards Board ("FASB") on February 18, 2015. This ASU amends the consolidation guidance for VIEs as well as general partners’ investments in limited partnerships and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. ASU 2015-02 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. The adoption of ASU 2015-02 did not have a material impact on our financial statements.

Additional Balance Sheet Information

Other Current Assets

Included in the "other current assets" balance on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 is prepaid taxes and other prepaid assets of $59 million and $58 million, respectively.

Other Current Liabilities

The components of "other current liabilities" on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 are presented below:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Reserve for estimated losses on uncompleted contracts (a)
$
44

 
$
60

Retainage payable
48

 
49

Income taxes payable
54

 
56

Value-added tax payable
13

 
12

Insurance payable
10

 
12

Dividend payable
11

 
12

Other miscellaneous liabilities (b)
60

 
62

Total other current liabilities
$
240

 
$
263

 
(a)
See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts.
(b)
Included in other current miscellaneous liabilities is deferred rent of $6 million and $7 million as of March 31, 2016 and December 31, 2015, respectively.

Other Liabilities

Included in the "other liabilities" balance on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 is noncurrent deferred rent of $111 million and $114 million, respectively. Also included in the "other liabilities" balance is a payable to our former parent of $19 million in each of the periods presented. Such amount will be paid to our former parent upon receipt of a tax refund from the United States ("U.S.") Internal Revenue Service in an amount greater than or equal to $19 million.
Business Segment Information
Business Segment Information
Business Segment Information

We are organized into three core business segments and two non-core business segments. Our three core business segments focus on our core strengths in technology and consulting, engineering and construction, and government services. Our two non-core business segments are our Non-strategic Business segment, which includes businesses we intend to exit upon completion of existing contracts because they are no longer a part of our future strategic focus, and "Other", which includes our corporate expenses and general and administrative expenses not allocated to the other business segments. Each business segment excluding Other reflects a reportable segment led by a separate business segment president who reports directly to our chief operating decision maker ("CODM").  Business segment performance is evaluated by our CODM using gross profit (loss), which is defined as business segment revenues less the cost of revenues, and includes overhead directly attributable to the business segment.

Our business segments are described below.

Technology & Consulting ("T&C"). Our T&C business segment combines proprietary KBR technologies, knowledge-based services and our three specialist consulting brands, Granherne, Energo and GVA, under a single customer-facing global business.  This business segment provides licensed technologies and consulting services throughout the oil and gas value chain, from wellhead to crude refining and through to specialty chemicals production.  In addition to sharing many of the same customers, these brands share the approach of early and continuous customer involvement to deliver an optimal solution to meet the customer’s objectives through early planning and scope definition, advanced technologies, and project lifecycle support.
Engineering & Construction ("E&C"). Our E&C business segment leverages our operational and technical excellence as a global provider of engineering, procurement, construction ("EPC"), commissioning and maintenance services for oil and gas, refining, petrochemical and chemical customers.  E&C is managed on a geographic basis in order to facilitate close proximity to our customers and our people, while utilizing a consistent global execution strategy. 
Government Services ("GS"). Our GS business segment focuses on long-term service contracts with annuity streams, particularly for the United Kingdom ("U.K."), Australian and U.S. governments.
Non-strategic Business. Our Non-strategic Business segment represents the operations or activities that we intend to exit upon completion of existing contracts. This segment also included businesses we exited upon sale to third parties.
Other. Our Other business segment includes our corporate expenses and general and administrative expenses not allocated to the business segments above and any future activities that do not individually meet the criteria for segment presentation. 

The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates and operating income (loss) by reporting segment.
Operations by Reportable Segment
 
Three Months Ended March 31,
Dollars in millions
2016
 
2015
Revenues:
 
 
 
Technology & Consulting
$
97

 
$
72

Engineering & Construction
606

 
977

Government Services
210

 
155

Other
—

 
—

Subtotal
913

 
1,204

Non-strategic Business
83

 
232

Total revenues
$
996

 
$
1,436

Gross profit (loss):
 
 
 
Technology & Consulting
$
17

 
$
19

Engineering & Construction
29

 
55

Government Services
21

 
(4
)
Other
—

 
—

Subtotal
67

 
70

Non-strategic Business
1

 
—

Total gross profit (loss)
$
68

 
$
70

Equity in earnings of unconsolidated affiliates:
 
 
 
Technology & Consulting
$
—

 
$
—

Engineering & Construction
18

 
21

Government Services
11

 
14

Other
—

 
—

Subtotal
29

 
35

Non-strategic Business
—

 
—

Total equity in earnings of unconsolidated affiliates
$
29

 
$
35

Segment operating income (loss):
 
 
 
Technology & Consulting
$
15

 
$
17

Engineering & Construction
37

 
66

Government Services
30

 
9

Other
(22
)
 
(28
)
Subtotal
60

 
64

Non-strategic Business
5

 
—

Total segment operating income (loss)
$
65

 
$
64



Changes in Estimates

There are many factors that can affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. In the past, we have realized both lower and higher than expected margins and have incurred losses as a result of unforeseen changes in our project costs. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. However, historically, our estimates have been reasonably dependable regarding the recognition of revenues and profit on percentage of completion contracts.

Significant changes in estimates periodically result in the recognition of losses on a particular contract. We generally believe that the recognition of a contract as a loss contract is a significant change in estimate. Activity in our reserve for estimated losses on uncompleted contracts, which is a component of "other current liabilities" on our condensed consolidated balance sheets, was as follows:
Dollars in millions
Reserve for Estimated Losses
Balance at December 31, 2015
$
60

Changes in estimates on loss projects
5

Change due to progress on loss projects
(21
)
Balance at March 31, 2016
$
44

 
 
Balance at December 31, 2014
$
159

Changes in estimates on loss projects
12

Change due to progress on loss projects
(53
)
Balance at March 31, 2015
$
118



Included in the reserve for estimated losses on uncompleted contracts is $33 million as of March 31, 2016, primarily related to a power project in our Non-strategic Business segment that we expect to complete in 2017. Our estimates of revenues and costs at completion for the remaining power project have been, and may continue to be, impacted by our performance, the performance of our subcontractors, and the U.S. labor market. Our estimated losses at completion as of March 31, 2016 on this power project represents our best estimate based on current information. Actual results could differ from the estimates we have used to account for this power project as of March 31, 2016. At March 31, 2015, the losses on uncompleted contracts included $65 million for two power projects in our Non-strategic Business segment and $37 million for our seven Canadian pipe fabrication and module assembly projects in our E&C business segment.

Acquisitions, Dispositions and Other Transactions

On January 11, 2016, we acquired 100% of the outstanding common stock of three subsidiaries of Connell Chemical Industry LLC (through its subsidiary, Chematur Technologies AB): Plinke GmbH ("Plinke"), Weatherly Inc., ("Weatherly"), and Chematur Ecoplanning Oy ("Ecoplanning"). Plinke specializes in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities. Weatherly provides nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market. Ecoplanning offers proprietary evaporation and crystallization technologies and specialist equipment for weak acid and base solutions. As a result of this acquisition, we can expand our technology and consulting solutions into new markets while leveraging KBR's global sales and EPC capabilities.

In accordance with FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, we accounted for this transaction using the acquisition method. We effected the acquisition through $25 million in cash paid to the seller, less $3 million of acquired cash for net cash consideration of $22 million. The consideration paid includes an escrow of $5 million that secures the indemnification obligations of the seller and other contingent obligations related to the operation of the business. We conducted an external valuation of certain acquired assets for inclusion in our balance sheet at the date of acquisition. Assets that would not normally be recorded in ordinary operations (i.e., customer relationships and other intangibles) were recorded at their estimated fair values. The excess of preliminary purchase price over the estimated fair values of the net assets acquired was recorded as goodwill.

The goodwill of $20 million arising from the acquisition relates primarily to future growth opportunities to extend the acquired technologies outside North America to new customers and in revamping units of the existing customer base globally. None of the goodwill is deductible for income tax purposes. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies, final tax returns that provide the underlying tax basis of assets and liabilities, and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the acquisition date, in line with the acquisition method of accounting, during which time the value of the assets and liabilities, including any goodwill, may be revised as appropriate. This acquisition will be reported within our T&C business segment.

We recognized costs related to this acquisition of $1 million during the quarter ended March 31, 2016.

The following table summarizes the consideration paid for this acquisition and the fair value of the assets acquired and liabilities assumed as of the acquisition date.
Dollars in millions
 
Fair value of total consideration transferred
$
25

 
 
Recognized amounts of identifiable assets acquired and liabilities assumed:
 
Tangible assets (a)
23

Intangible assets (b)
19

Liabilities (c)
(31
)
Liabilities arising from contingencies (d)
(6
)
 
 
Goodwill
$
20

 
(a)
Includes $13 million of trade receivables and similar amounts due from customers and indemnification assets related to the contingent liabilities.
(b)
Includes developed technology of $10 million and customer relationships of $7 million. These intangible assets are amortized over their estimated useful lives up to 20 years.
(c)
Reflects BIE, accounts payable and other accrued liabilities (current) of $17 million and non-current liabilities of $14 million.
(d)
Fair value reflects our best estimate of certain contingencies pending final evaluation or resolution of the matters.

As a result of this acquisition, $10 million of revenues and $4 million of gross profit was included in our condensed consolidated statements of operations for the quarter ended March 31, 2016.

In February 2016, we executed agreements to establish a new joint venture within our GS business segment. See Note 8 to our condensed consolidated financial statements for information related to the establishment of this new joint venture.
Cash and Equivalents (Notes)
Cash and Cash Equivalents
Cash and Equivalents

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and equivalents include cash balances held by our wholly owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture cash balances are limited to joint venture activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors of the respective joint ventures. We expect to use joint venture cash for project costs and distributions of earnings related to joint venture operations. However, some of the earnings distributions may be paid to other KBR entities where the cash can be used for general corporate needs.

The components of our cash and equivalents balance are as follows:
 
March 31, 2016
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
143

 
$
258

 
$
401

Short-term investments (c)
286

 
81

 
367

Cash and equivalents held in joint ventures
52

 
4

 
56

Total
$
481

 
$
343

 
$
824


 
December 31, 2015
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
177

 
$
253

 
$
430

Short-term investments (c)
293

 
107

 
400

Cash and equivalents held in joint ventures
49

 
4

 
53

Total
$
519

 
$
364

 
$
883

 
(a)
Includes deposits held in non-U.S. operating accounts.
(b)
Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country.
(c)
Includes time deposits, money market funds, and other highly liquid short-term investments
Accounts Receivable (Notes)
Accounts Receivable
Accounts Receivable
    
The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows:
 
March 31, 2016
Dollars in millions
Retainage
 
Trade & Other
 
Total
Technology & Consulting
$
—

 
$
61

 
$
61

Engineering & Construction
58

 
358

 
416

Government Services
2

 
76

 
78

Other
—

 
—

 
—

Subtotal
60

 
495

 
555

Non-strategic Business
9

 
19

 
28

Total
$
69

 
$
514

 
$
583


 
December 31, 2015
Dollars in millions
Retainage
 
Trade & Other
 
Total
Technology & Consulting
$
—

 
$
70

 
$
70

Engineering & Construction
51

 
402

 
453

Government Services
2

 
75

 
77

Other
—

 
2

 
2

Subtotal
53

 
549

 
602

Non-strategic Business
9

 
17

 
26

Total
$
62

 
$
566

 
$
628

Percentage-Of-Completion Contracts
Percentage-of-Completion Contracts
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Our CIE balances by business segment are as follows:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Technology & Consulting
$
42

 
$
42

Engineering & Construction
103

 
114

Government Services
77

 
68

Subtotal
222

 
224

Non-strategic Business
—

 
—

Total
$
222

 
$
224


Our BIE balances by business segment are as follows:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Technology & Consulting
$
77

 
$
72

Engineering & Construction
300

 
307

Government Services
56

 
69

Subtotal
433

 
448

Non-strategic Business
38

 
61

Total
$
471

 
$
509


Unapproved change orders and claims

The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows:
Dollars in millions
2016
 
2015
Amounts included in project estimates-at-completion at January 1,
$
46

 
$
31

Changes in estimates-at-completion
10

 
11

Approved change orders
(26
)
 
(3
)
Amounts included in project estimates-at-completion at March 31,
$
30

 
$
39

 
 
 
 
Amounts recorded in revenues on a percentage-of-completion basis at March 31,
$
25

 
$
37


The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims on a percentage-of-completion basis was $51 million as of March 31, 2016 and $77 million as of March 31, 2015 on a project in our E&C business segment.

Liquidated damages

Some of our engineering and construction contracts have schedule dates and performance obligations that if not met could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract.

It is possible that liquidated damages related to several projects totaling $7 million at March 31, 2016 and $6 million at December 31, 2015 could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance, we have concluded these liquidated damages are not probable and therefore, they have not been recognized.
Claims and Accounts Receivable (Notes)
Claims Receivable
Claims and Accounts Receivable

The components of our claims and accounts receivable account balance not expected to be collected within the next 12 months are as follows:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Engineering & Construction
$
401

 
$
400

Government Services
131

 
126

Total
$
532

 
$
526



Our E&C business segment's claims and accounts receivable includes $401 million related to our EPC 1 arbitration. See Note 13 to our condensed consolidated financial statements under PEMEX and PEP Arbitration for further discussion.

Our GS business segment's claims and accounts receivable reflects claims filed with the U.S. government related to payments not yet received for cost incurred under various U.S. government contracts. These claims relate to de-obligated funding on certain task orders that are subject to the Form 1s discussed in Note 12 of our condensed consolidated financial statements. In addition, the claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order.  We believe such disputed costs will be resolved in our favor at which time the U.S. government will be required to obligate funds from appropriations for the year in which resolution occurs.
Asset Impairment and Restructuring (Notes)
Restructuring, Impairment, and Other Activities Disclosure [Text Block]
Restructuring

In connection with our 2014 long-term strategic reorganization, we announced that we would reduce our workforce beginning December 2014. There were additional work force reductions in 2015 and 2016 to support current business levels. The employees affected by these reductions are eligible for separation benefits upon their termination and the dates have occurred or are expected to occur through 2016. The table below provides details of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "other current liabilities" on our condensed consolidated balance sheets.
Dollars in millions
Severance Accrual
Balance at December 31, 2015
$
19

Charges
5

Payments
(7
)
Balance at March 31, 2016
$
17

 
 
Balance at December 31, 2014
$
21

Charges
1

Payments
(8
)
Balance at March 31, 2015
$
14

Equity Method Investments And Variable Interest Entities
Equity Method Investments And Variable Interest Entities
Equity Method Investments and Variable Interest Entities

We conduct some of our operations through joint ventures which operate through partnership, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are also VIEs.

The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Beginning balance
$
281

 
$
151

Equity in earnings of unconsolidated affiliates
29

 
149

Distribution of earnings of unconsolidated affiliates (b)
(20
)
 
(92
)
Advances
8

 
(10
)
Investments (a)
—

 
80

Foreign currency translation adjustments
2

 
(9
)
Other
—

 
1

Balance before reclassification
$
300

 
$
270

Reclassification of excess distributions (b)
6

 
16

Recognition of excess distributions (b)
(3
)
 
(5
)
Ending balance
$
303

 
$
281


 

(a)
In 2015, investments included a $58 million investment in the Brown & Root Industrial Services joint venture and a $24 million investment in EPIC Piping, and the disposition of a joint venture included in the sale of the Building Group.
(b)
We receive cash dividends in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We record the excess dividend amount as "deferred income from unconsolidated affiliates" on our condensed consolidated balance sheets and recognize these dividends as earnings are generated by the investment.

Equity Method Investments

New Investments

U.K. Military Flying Training System ("UKMFTS") project. In February 2016, Affinity Flying Training Services Ltd. ("Affinity"), a joint venture between KBR and Elbit Systems, was awarded a service contract by a third party to procure, operate and maintain aircraft, and aircraft-related assets over an 18-year contract period, in support of the UKMFTS project. KBR owns a 50% interest in Affinity. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provides procurement, operations and management support services under subcontracts with Affinity. KBR has provided its proportionate share of certain limited financial and performance guarantees in support of the partners' contractual obligations. The three project-related entities are VIEs; however, KBR is not the primary beneficiary of any of these entities.  We account for KBR's interests in each entity using the equity method of accounting within our GS business segment. The project is funded through sponsor provided equity, subordinated debt and non-recourse third party commercial bank debt.  During the first quarter ended March 31, 2016, under the terms of the subordinated debt agreement between the partners and Affinity, we advanced our proportionate share or $14 million to meet initial working capital needs of the venture. We expect repayment on the advance and the associated interest over the term of the project. The amount is included in the "equity in and advances" balance on our condensed consolidated balance sheets as of March 31, 2016 and in "payments from (advances to) unconsolidated affiliates, net" in our condensed consolidated statement of cash flows for the three months ended March 31, 2016.

Unconsolidated Variable Interest Entities

Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture reduced for any unearned revenues on the projects. On the Affinity joint venture, our maximum exposure to loss is limited to our proportionate share of any amounts required to fund future losses incurred by those entities under their respective contracts with the project company. On the Aspire Defence project, in addition to the maximum exposure to loss indicated in the table below, we have exposure to any losses incurred by the construction or operating joint ventures under their respective subcontract arrangements with the project company. Our exposure is, however, limited to our equity participation in these entities. The Ichthys liquefied natural gas ("LNG") project joint venture executes a project that has a lump sum component; in addition to the maximum exposure to loss indicated in the table below, we have an exposure to losses to the extent of our ownership percentage in the joint venture if the project exceeds the lump sum component. Our maximum exposure to loss on the EBIC Ammonia plant reflects our 65% ownership of the development corporation which owns 25% of the company that consolidates the ammonia plant. We continue to monitor our investment in this joint venture as the profitability of its operations has been impacted by the challenges related to the availability of natural gas feedstock in Egypt.

The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.

 
March 31, 2016
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity project
$
19

 
$
3

 
$
19

Aspire Defence project
$
16

 
$
124

 
$
16

Ichthys LNG project
$
94

 
$
69

 
$
94

U.K. Road projects
$
34

 
$
11

 
$
34

EBIC Ammonia plant (65% interest)
$
36

 
$
2

 
$
22

 
 
December 31, 2015
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Aspire Defence project
$
17

 
$
121

 
$
17

Ichthys LNG project
$
87

 
$
63

 
$
87

U.K. Road projects
$
34

 
$
11

 
$
34

EBIC Ammonia plant (65% interest)
$
36

 
$
2

 
$
22



Related Party Transactions

We often provide engineering, construction management and other services as a subcontractor to the joint ventures in which we participate. The amounts included in our revenues represent revenues from services we provide directly to the joint ventures. For the three months ended March 31, 2016 and 2015, our revenues included $99 million and $73 million, respectively, related to services we provided to our joint ventures, primarily those in our E&C business segment. Under the terms of our transition services agreement ("TSA") with Brown & Root Industrial Services joint venture, we collected cash from customers and made payments to vendors and employees on behalf of the joint venture. For the three months ended March 31, 2016 we incurred approximately $4 million of reimbursable costs under the TSA.

Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of March 31, 2016 and December 31, 2015 are as follows:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Accounts receivable, net of allowance for doubtful accounts (a)
$
24

 
$
7

Costs and estimated earnings in excess of billings on uncompleted contracts
$
6

 
$
5

Billings in excess of costs and estimated earnings on uncompleted contracts
$
61

 
$
55

Accounts payable (b)
$
—

 
$
9

 
(a)
Includes a $9 million receivable from the Brown & Root Industrial Services joint venture at March 31, 2016.
(b)
Reflects a $9 million payable to the Brown & Root Industrial Services joint venture at December 31, 2015.

Consolidated Variable Interest Entities

We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary:
Dollars in millions
March 31, 2016
Total assets
 
Total liabilities
Gorgon LNG project
$
46

 
$
80

Escravos Gas-to-Liquids project
$
16

 
$
33

Fasttrax Limited project
$
72

 
$
69

 

Dollars in millions
December 31, 2015
Total assets
 
Total liabilities
Gorgon LNG project
$
117

 
$
145

Escravos Gas-to-Liquids project
$
16

 
$
33

Fasttrax Limited project
$
74

 
$
70

Pension Plans Pension Plan (Notes)
Pension and Other Postretirement Benefits Disclosure
Pension Plans

The components of net periodic benefit cost related to pension benefits for the three months ended March 31, 2016 and 2015 were as follows:
 
Three Months Ended March 31,
 
2016
 
2015
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
—

 
$
—

Interest cost
1

 
17

 
1

 
19

Expected return on plan assets
(1
)
 
(23
)
 
(1
)
 
(24
)
Recognized actuarial loss
—

 
7

 
1

 
13

Net periodic benefit cost
$
—

 
$
1

 
$
1

 
$
8



For the three months ended March 31, 2016, we have contributed approximately $10 million of the $41 million we expect to contribute to our international plans in 2016.
Debt And Other Credit Facilities
Debt and Other Credit Facilities
Debt and Other Credit Facilities

Credit Agreement

On September 25, 2015, we entered into a new $1 billion, unsecured revolving credit agreement (the "Credit Agreement") with a syndicate of banks replacing the previous agreement which was scheduled to mature in December 2016. The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries, matures in September 2020 and is available for cash borrowings and the issuance of letters of credit related to general corporate needs. Subject to certain conditions, we may request (i) that the aggregate commitments under the Credit Agreement be increased by up to an additional $500 million, and (ii) that the maturity date of the Credit Agreement be extended by two additional one-year terms.

Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i) the London interbank offered rate ("LIBOR") plus an applicable margin of 1.375% to 1.75%, or (ii) a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. As of March 31, 2016, there were $119 million in letters of credit and no cash borrowings outstanding.

The Credit Agreement contains customary covenants as defined by the agreement which include financial covenants requiring maintenance of a ratio of consolidated debt to consolidated EBITDA not greater than 3.5 to 1 and a minimum consolidated net worth of $1.2 billion plus 50% of consolidated net income for each quarter beginning September 30, 2015 and 100% of any increase in shareholders’ equity attributable to the sale of equity interests, but excluding any adjustments in shareholders' equity attributable to changes in foreign currency translation adjustments. As of March 31, 2016, we were in compliance with our financial covenants.

The Credit Agreement contains a number of other covenants restricting, among other things, our ability to incur additional liens and indebtedness, enter into asset sales, repurchase our equity shares and make certain types of investments. Our subsidiaries are restricted from incurring indebtedness, except if such indebtedness relates to purchase money obligations, capitalized leases, refinancing or renewals secured by liens upon or in property acquired, constructed or improved in an aggregate principal amount not to exceed $200 million at any time outstanding. Additionally, our subsidiaries may incur unsecured indebtedness not to exceed $200 million in aggregate outstanding principal amount at any time. We are also permitted to repurchase our equity shares, provided that no such repurchases shall be made from proceeds borrowed under the Credit Agreement, and that the aggregate purchase price and dividends paid after September 25, 2015, does not exceed the Distribution Cap (equal to the sum of $750 million plus the lesser of (1) $400 million and (2) the amount received by us in connection with the arbitration and subsequent litigation of the PEP contracts as discussed in Note 13 to our condensed consolidated financial statements). As of March 31, 2016, the remaining availability under the Distribution Cap was approximately $686 million.

Nonrecourse Project Debt

Fasttrax Limited, a joint venture in which we indirectly own a 50% equity interest with an unrelated partner, was awarded a concession contract in 2001 with the U.K. Ministry of Defense ("MoD") to provide a Heavy Equipment Transporter Service to the British Army. See Note 8 to our condensed consolidated financial statements for further discussion on the joint venture. Under the terms of the arrangement, Fasttrax Limited operates and maintains 91 heavy equipment transporters ("HETs") for a term of 22 years. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan totaling approximately £84.9 million (approximately $120 million at the exchange rate on the date of the transaction). The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The bridge loan of approximately £12.2 million (approximately $17 million at the exchange rate on the date of the transaction) was replaced when the joint venture partners funded their equity and subordinated debt contributions in 2005.

The secured bonds were issued in two classes consisting of Class A 3.5% Index Linked Bonds in the amount of £56 million (approximately $79 million at the exchange rate on the date of the transaction) and Class B 5.9% Fixed Rate Bonds in the amount of £16.7 million (approximately $24 million at the exchange rate on the date of the transaction).  Semi-annual payments on both classes of bonds commenced in March 2005 and will continue through maturity in 2021.  The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16% over the term of the notes until maturity in 2025.  Semi-annual payments on the subordinated notes commenced in March 2006. For financial reporting purposes, only our partner's portion of the subordinated notes appears in the condensed consolidated financial statements.
Income per Share
Income Per Share
Income per Share

Basic income per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method.

A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows:
 
Three Months Ended March 31,
Shares in millions
2016
 
2015
Basic weighted average common shares outstanding
142

 
145

Stock options and restricted shares
—

 
—

Diluted weighted average common shares outstanding
142

 
145



For purposes of applying the two-class method in computing income per share, there were $0.3 million net earnings allocated to participating securities, or a negligible amount per share, for the three months ended March 31, 2016, and $0.3 million for the three months ended March 31, 2015. The diluted income per share calculation did not include 3.3 million and 3.5 million antidilutive weighted average shares for the three months ended March 31, 2016 and March 31, 2015, respectively.
Income Taxes
Income Tax Disclosure
Income Taxes

The effective tax rate was approximately 25% and 27% for the three months ended March 31, 2016 and 2015, respectively.

Our estimated annual rate for 2016 is 25%, which is lower than the U.S. statutory rate of 35% due to lower tax rates related to noncontrolling interests and equity in earnings of unconsolidated affiliates of approximately 9%. Our estimated annual effective rate is subject to change based on the actual jurisdictions where our 2016 earnings are generated.

There were no changes in our repatriation strategy during the three months ended March 31, 2016.

The valuation allowance for deferred tax assets as of March 31, 2016 and December 31, 2015 was $542 million, respectively. There was no change in the valuation allowance in the three months ended March 31, 2016 and a $1 million increase in the valuation allowance for the three months ended March 31, 2015. The valuation allowance is primarily related to foreign tax credit carryforwards, foreign and state net operating loss carryforwards and other deferred tax assets that, in the judgment of management, are not more-likely-than-not to be realized.

The reserve for uncertain tax positions included in "other liabilities" and "deferred income taxes" on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 was $258 million and $257 million, respectively. The net increase (decrease) in the uncertain tax position for the three months ended March 31, 2016 and 2015 was $1 million and $(1) million, respectively.
U.S. Government Matters
U.S. Government Matters
U.S. Government Matters

We provide services to various U.S. governmental agencies, which include the U.S. Department of Defense ("DoD") and the Department of State. We may have disagreements or experience performance issues on our U.S. government contracts. When performance issues arise under any of these contracts, the U.S. government retains the right to pursue various remedies, including challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government.

Between 2002 and 2011, we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We continue to support the U.S. government around the world under the LogCAP IV and other contracts. We have been in the process of closeout of the LogCAP III contract since 2011, and we expect the closeout process to continue through at least 2017. As a result of our work under LogCAP III, there are claims and disputes pending between us and the U.S. government which need to be resolved in order to close the contracts. The closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and Memorandums for Record ("MFRs") and resolving results from U.S. government audits. We continue to work with the U.S. government to resolve these issues and are engaged in efforts to reach mutually acceptable resolution of these outstanding matters. However, for certain of these matters, we have filed claims with the Armed Services Board of Contract Appeals ("ASBCA") or the U.S. Court of Federal Claims ("COFC"). We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor, vendor resolution and litigation costs as we resolve the open matters. At this time, we cannot determine the timing or net amounts to be collected or paid to close out these contracts.

Form 1s

The U.S. government has issued Form 1s questioning or objecting to costs we billed to them. We believe the amounts we have invoiced the U.S. government are in compliance with our contract terms; however, we continue to evaluate our ability to recover these amounts as new information becomes known. There were no material changes to the amounts reported in the 2015 Annual Report on Form 10-K for the period ended March 31, 2016.

Audits

In addition to reviews performed by the U.S. government through the Form 1 process, the negotiation, administration and settlement of our contracts, which primarily consist of DoD contracts, are subject to audit by the Defense Contract Audit Agency ("DCAA"). The DCAA serves in an advisory role to the Defense Contract Management Agency ("DCMA") and the DCMA is responsible for the administration of the majority of our contracts. The scope of these audits include, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the Federal Acquisition Regulations ("FAR") and Cost Accounting Standards ("CAS"), compliance with certain unique contract clauses and audits of certain aspects of our internal control systems.

As of March 31, 2016, we have completed the negotiation of both direct and indirect incurred costs for the years of significant performance under LogCAP III (2003-2011). The DCAA has commenced its review of the incurred costs for 2012, and is scheduling its reviews for the years 2013 and beyond. The direct claimed cost for these years still to be reviewed was $1 billion, which is significantly less than prior periods. The indirect costs invoiced for these years amounts to $78 million.

Historically, we have recovered 99.9% of the direct and indirect costs we have claimed for reimbursement from the U.S. government. As a result, for the open audit years we have accrued our estimate of disallowed costs based on our historical recovery rate as a reduction to "claims and accounts receivable" and in "other liabilities" on our condensed consolidated balance sheets. Based on the information received to date, we do not believe the ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows.

As a result of the Form 1s, open audits and claims discussed above, we have accrued a reserve for unallowable costs at March 31, 2016 and December 31, 2015 of $48 million and $50 million, respectively, as a reduction to "claims and accounts receivable" and in "other liabilities" on our condensed consolidated balance sheet.

Investigations, Qui Tams and Litigation

The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Many of these matters involve allegations of violations of the False Claims Act ("FCA"), which prohibits in general terms fraudulent billings to the government. Suits brought by private individuals are called "qui tams."

First Kuwaiti Trading Company arbitration. In April 2008, First Kuwaiti Trading Company ("FKTC"), one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association of all its claims under various LogCAP III subcontracts. FKTC sought damages in the amount of $134 million. After complete hearings on all of FKTC's claims, an arbitration panel awarded $17 million and interest to FKTC for claims involving damages on lost or unreturned vehicles. In addition, we determined that we owe FKTC $32 million in connection with other subcontracts. We paid FKTC $19 million and will pay $4 million on pay-when-paid terms in the contract. We have accrued amounts we believe are payable to FKTC in "accounts payable" and "other current liabilities" on our condensed consolidated balance sheets.

The remaining $26 million owed to FKTC under contract has not been billed to the government and we will not do so until the related claims and disputes between KBR and the government over the FKTC living container contract are resolved (see Department of Justice ("DOJ") False Claims Act complaint - FKTC Containers below).

We believe any cost or damages ultimately awarded to FKTC will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter in excess of the amounts we have accrued is remote.

Electrocution litigation. During 2008, a lawsuit was filed against KBR in Pittsburgh, PA, in the Allegheny County Common Pleas Court alleging that the Company was responsible for an electrical incident which resulted in the death of a soldier at the Radwaniyah Palace Complex near Baghdad, Iraq. Plaintiffs are claiming unspecified damages for personal injury, death and loss of consortium by the parents. After extensive motion practice and appeals, the case is back before the U.S. District Court for the Western District of Pennsylvania for further action. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood we would incur a loss related to this matter is remote. As of March 31, 2016, no amounts have been accrued.

We believe the costs of litigation and any damages which might be awarded are either covered by insurance or will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness.

Burn Pit litigation. From November 2008 through current, KBR was served with in excess of 60 lawsuits in various states alleging exposure to toxic materials resulting from the operation of burn pits in Iraq or Afghanistan in connection with services provided by KBR under the LogCAP III contract. Each lawsuit has multiple named plaintiffs and seeks class certification. The plaintiffs are claiming unspecified damages. All of the pending cases were removed to Federal Court and have been consolidated for multi-district litigation treatment before the U.S. Federal District Court in Baltimore, Maryland. After extensive motion practice and appeals the cases are now back before the District Court in Baltimore, Maryland for further action in conformity with the Fourth Circuit's ruling on appeal. KBR will continue to pursue all available jurisdictional and other dismissal options. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of March 31, 2016, no amounts have been accrued.

We believe any costs of litigation and any damages which might be awarded will be billable under the LogCAP III contract. As with all costs that are billed under LogCAP III, these costs would be subject to audit by the DCAA for reasonableness.

Sodium Dichromate litigation. From December 2008 through September 2009, five cases were filed in various Federal District Courts against KBR by national guardsmen and other military personnel alleging exposure to sodium dichromate at the Qarmat Ali Water Treatment Plant in Iraq in 2003. The majority of the cases were re-filed and consolidated into two cases, before the U.S. District Court for the Southern District of Texas and the U.S. District Court for the District of Oregon. The Oregon case was dismissed on appeal and consolidated with the case pending in the Southern District of Texas. The Texas case was then dismissed by the Court on the merits on multiple grounds including the conclusion that no one was injured and is now on appeal to the Fifth Circuit. The plaintiffs are claiming unspecified damages.

The costs of litigation and any damages which might be awarded are billable under the Restore Iraqi Oil ("RIO") contract and the related indemnity agreement described below. As with all costs that are billed under RIO, these costs would be subject to audit by the DCAA for reasonableness. At this time, we believe that the likelihood we would incur a loss related to this matter is remote.
 
COFC/ASBCA Claims. During the period of time since the first sodium dichromate litigation was filed, we have incurred legal defense costs that we believe are reimbursable under the related U.S. government contract. We have billed for these costs and filed claims to recover the associated costs incurred to date. Due to KBR's inability to procure adequate insurance coverage for this work, the Secretary of the Army approved the inclusion of an indemnification provision in the RIO Contract pursuant to Public Law 85-804.

After some procedural challenges, KBR’s claims for payment were filed before the ASBCA. On December 23, 2014, we filed a Motion for Partial Summary Judgment asking the ASBCA to find that the sodium dichromate related incidents and litigation are within the definition of the "unusually hazardous risks" language in the 85-804 indemnity agreement. We subsequently filed a motion for summary judgment asking the ASBCA to find that the $30 million in legal fees incurred and expensed to the date of the motion are reasonable and payable by the government to KBR pursuant to the indemnity agreement. On August 17, 2015, the ASBCA issued an order holding that KBR is entitled to reimbursement of the sodium dichromate legal fees and any resulting judgments pursuant to the 85-804 indemnity agreement. The U.S. government has withdrawn its appeal of the ASBCA’s ruling and we are in discussions regarding payment of the $30 million legal fees incurred at the time of the claim, the $4 million incurred subsequent to the claim and for future costs to be incurred defending ourselves on this matter. All legal fees incurred to date have been expensed.
  
Qui tams. On the active qui tams of which we are aware, the U.S. government has joined one of them (see DOJ FCA complaint - Iraq Subcontractor below). We believe the likelihood that we would incur a loss in the qui tams the U.S. government has not joined is remote and as of March 31, 2016, no amounts have been accrued. Costs incurred in defending the qui tams cannot be billed to the U.S. government until those matters are successfully resolved in our favor. If successfully resolved, we can bill 80% of the costs to the U.S. government under the federal regulations. As of March 31, 2016, we have incurred and expensed $11 million in legal costs to date in defending ourselves in qui tams. Five of the remaining qui tam cases either have been dismissed, are on appeal from a dismissal or are at the dismissal stage. There are two active cases as discussed below.

Barko qui tam. Relator Harry Barko, a KBR subcontracts administrator in Iraq for a year in 2004/2005, filed a qui tam lawsuit in June 2005 in the U.S. District Court for the District of Columbia (D.C.), alleging violations of the FCA by KBR and KBR subcontractors Daoud & Partners and Eamar Combined for General Trading and Contracting. The DOJ investigated Barko's allegations and elected not to intervene. The claim was unsealed in March of 2009.

Early phases of this case focused on discovery issues and we successfully sought review and reversal of two trial court's opinion on KBR's attorney client and work product privileges. After the second reversal, KBR was notified that the case has been transferred to a new District Court Judge who is now considering KBR's motion for summary judgment. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore as of March 31, 2016 we have not accrued any loss provisions related to this matter.

Howard qui tam. On March 27, 2011, Geoffrey Howard filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL alleging that KBR mischarged the government $628 million for unnecessary materials and equipment. On October 7, 2014 the Department of Justice declined to intervene and the case was partially unsealed. We believe the claims lack merit and we answered and filed a motion to dismiss which was denied on October 15, 2015. The case is starting discovery. We believe the likelihood that we will incur a loss related to this matter is remote, and therefore as of March 31, 2016 we have not accrued any loss provisions related to this matter.

DOJ False Claims Act complaint - FKTC Containers. In November 2012, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL against KBR, FKTC and others, related to our settlement of delay claims by our subcontractor, FKTC, in connection with FKTC's provision of living trailers for the bed down mission in Iraq in 2003-2004. The DOJ alleges that KBR knew that FKTC had submitted inflated costs, that KBR did not verify the costs, that FKTC had contractually assumed the risk for the costs which KBR submitted to the U.S. government, that KBR concealed information about FKTC's costs from the U.S. government, that KBR claimed that an adequate price analysis had been done when in fact one had not been done and that KBR submitted false claims for reimbursement to the U.S. government in connection with FKTC's services during the bed down mission. Our contractual dispute with the Army over this settlement has been ongoing since 2005. On May 6, 2013, KBR filed a motion to dismiss and in March 2014 the motion to dismiss was denied. We filed our answer on May 2, 2014. On September 30, 2014, the District Court granted FKTC's motion to dismiss for lack of personal jurisdiction. We expect discovery to be substantially completed in 2016. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of March 31, 2016, no amounts have been accrued.

DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Central District of Illinois in Rock Island, IL, against KBR and two former KBR subcontractors alleging that three former KBR employees were offered and accepted kickbacks from these subcontractors in exchange for favorable treatment in the award and performance of subcontracts to be awarded during the course of KBR's performance of the LogCAP III contract in Iraq. The complaint alleges that as a result of the kickbacks, we submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. The DOJ's investigation dates back to 2004. We self-reported most of the violations and tendered credits to the U.S. government as appropriate. On May 22, 2014, FTKC filed a motion to dismiss which the U.S. government opposed. On April 22, 2014, we filed our answer and in May 2014 the U.S. government filed a Motion to Strike certain affirmative defenses and this motion was granted on March 30, 2015. We do not believe this limits KBR's ability to fully defend all allegations in this matter. As of March 31, 2016, we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter in "other liabilities" on our condensed consolidated balance sheets. At this time, we believe the likelihood that we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Discovery in the case will likely run well into 2016.
Other Commitments And Contingencies
Other Commitments and Contingencies
Other Commitments and Contingencies

Litigation and regulatory matters related to the Company’s restatement of its 2013 annual financial statements
In re KBR, Inc. Securities Litigation. Lead plaintiffs, Arkansas Public Employees Retirement System and IBEW Local 58/NECA Funds, seek class action status on behalf of our shareholders, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company, our former chief executive officer, our current and former chief financial officers, and our former chief accounting officer, arising out of the restatement of our 2013 annual financial statements, and seek undisclosed damages. The case is currently pending in the U.S. District Court for the Southern District of Texas, Master File No. 14-cv-01287. We filed a motion to dismiss the consolidated complaint for failure to plead particularized facts supporting a strong inference of scienter on the part of the individual defendants and the motion was denied on September 3, 2015. We intend to continue to vigorously defend against these claims. Discovery in the case has begun and is expected to continue in 2016. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter.

Butorin v. Blount et al, is a shareholder derivative complaint, filed on May 27, 2014 in the U.S. District Court for the Southern District of Texas on behalf of the Company naming certain current and former members of the Company's board of directors as defendants and the Company as a nominal defendant. The complaint alleges that the named directors breached their fiduciary duties by permitting the Company's internal controls to be inadequate. On March 31, 2015, the District Court transferred the case to the U.S. District Court of Delaware. The court has approved a stay of the action pending resolution of securities litigation and that stay has not been lifted. At this early stage, we are not yet able to determine the likelihood of loss, if any, arising from this matter.
Stella Dupree and Donald Taylor v. KBR, Inc., was filed by shareholders of the Company on May 12, 2015 in Delaware Chancery Court seeking the right to inspect and make copies of certain books and records of the Company under §220 of Delaware General Corporation Law relating primarily to the restatement of our 2013 annual financial statements. The remaining plaintiff voluntarily dismissed this case on February 26, 2016 following receipt of a limited set of documents from the Company. This matter is now resolved.
We have also received requests for information and a subpoena for documents from the Securities Exchange Commission ("SEC") regarding the restatement of our 2013 annual financial statements. We have been and intend to continue cooperating with the SEC.

PEMEX and PEP Arbitration

In 1997, Commisa, a subsidiary of KBR, Inc., entered into a contract with PEP, a subsidiary of PEMEX, the Mexican national oil company, to build offshore platforms and treatment and re-injection facilities in the Bay of Campeche, offshore Mexico. The project, known as EPC 1, encountered significant schedule delays and increased costs due to problems with design work, late delivery and defects in equipment, increases in scope and other changes.

PEP took possession of the facilities in March 2004 prior to the completion of our scope of work and without paying us for our work. We filed for arbitration with the International Chamber of Commerce ("ICC") in 2004 claiming recovery of damages of approximately $323 million. PEP subsequently filed counterclaims totaling $157 million. In December 2009, the ICC arbitration panel ruled in our favor, and we were awarded a total of approximately $351 million including legal and administrative recovery fees as well as interest. PEP was awarded approximately $6 million on counterclaims, plus interest on a portion of that sum. In connection with this award, we recognized a gain of $117 million net of tax in 2009.

U.S. Proceedings. Collection efforts have involved multiple actions. On August 27, 2013, the U.S. District Court for the Southern District of New York entered an order stating it would confirm the award even though it had been annulled in Mexico (see Mexico proceedings discussion below). The judgment included reimbursement for sums Commisa was forced to pay from our performance bonds that PEP had previously called (see Performance Bonds discussion below). PEP filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit on October 16, 2013 and posted $465 million cash as security for the judgment pending appeal. Oral argument on the appeal was held on November 20, 2014. The U.S. government was invited to file a brief and did so, and the parties have filed responses to the U.S. government's brief. We continue to await the Court's ruling on the matter. There has been no indication as to when a decision will be reached and we are not aware of any factors preventing a decision from being reached. PEP could seek rehearing at the court of appeals and a review by the U.S. Supreme Court. At this time, we are unable to predict the timing of any ruling or resolution concerning this matter.

Mexico Proceedings. PEP's initial multiple attempts to nullify the award in Mexico were rejected by the Mexican courts. However, in September 2011, the Collegiate Court ruled that PEP, by administratively rescinding the contract in 2004, deprived the arbitration panel of jurisdiction and the award was null and void.

Other Proceedings. Commisa also initiated collection proceedings in Luxembourg and sought to collect under the North American Free Trade Agreement, the latter of which has been denied pending collection efforts in the U.S. and in Luxembourg.

Performance Bonds

We had provided approximately $80 million in performance bonds to PEP when the project was awarded. The bonds were written by a Mexican bond company and backed by a U.S. insurance company which is indemnified by KBR. As a result of the ICC arbitration award in December 2009, the panel determined that KBR had performed on the project and recovery on the bonds by PEP was precluded.  Notwithstanding, PEP filed an action in Mexico in June 2010 against the Mexican bond company to collect the bonds. On June 17, 2013, after proceedings in multiple Mexican courts, we were required to pay $108 million to the Mexican bond company. The $108 million consists of the $80 million in outstanding bonds, plus $26 million in related interest and other expenses and $2 million in legal and banking fees. These sums were added to the judgment entered by the Federal Court in New York as discussed above.

Consistent with our treatment of probable claim recoveries, we have recorded $401 million of the ICC arbitration award, net of advances, in "claims and accounts receivable" on the condensed consolidated balance sheets. PEP has posted $465 million in cash collateral in the U.S. under the control of the Federal District Court in New York. In addition we have taken action to attach assets in Luxembourg as additional protection to collect on the ICC arbitration award. Although it is possible we could resolve and collect the amounts due from PEP in the next 12 months, we believe the timing of the collection of the award is uncertain; therefore, consistent with our prior practice, as of March 31, 2016, we continue to classify the amount recorded for financial reporting purposes due from PEP as long term.

Other Matters

Recently, there have been news reports related to Unaoil, a Monaco based company, and activities Unaoil may have engaged in related to international projects involving several global companies, including KBR. It has also been reported that the U.S. DOJ is conducting an investigation of Unaoil related to the information reported in these news articles. The DOJ has contacted the Company in connection with that investigation and the Company is cooperating with its requests for information.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity

The following tables summarize our activity in shareholders’ equity:
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2015
$
1,052

 
$
2,070

 
$
595

 
$
(769
)
 
$
(831
)
 
$
(13
)
Share-based compensation
6

 
6

 
—

 
—

 
—

 
—

Tax benefit increase related to share-based plans
1

 
1

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(11
)
 
—

 
(11
)
 
—

 
—

 
—

Repurchases of common stock
(2
)
 
—

 
—

 
(2
)
 
—

 
—

Issuance of ESPP shares
1

 
(1
)
 
—

 
2

 
—

 
—

Distributions to noncontrolling interests
(6
)
 
—

 
—

 
—

 
—

 
(6
)
Net income
45

 
—

 
42

 
—

 
—

 
3

Other comprehensive income (loss), net of tax
22

 
—

 
—

 
—

 
23

 
(1
)
Balance at March 31, 2016
$
1,108

 
$
2,076

 
$
626

 
$
(769
)
 
$
(808
)
 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2014
$
935

 
$
2,091

 
$
439

 
$
(712
)
 
$
(876
)
 
$
(7
)
Acquisition of noncontrolling interest
(40
)
 
(40
)
 
—

 
—

 
—

 
—

Share-based compensation
5

 
5

 
—

 
—

 
—

 
—

Common stock issued upon exercise of stock options
1

 
1

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(12
)
 
—

 
(12
)
 
—

 
—

 
—

Repurchases of common stock
(16
)
 
—

 
—

 
(16
)
 
—

 
—

Issuance of ESPP shares
1

 
(1
)
 
—

 
2

 
—

 
—

Distributions to noncontrolling interests
(7
)
 
—

 
—

 
—

 
—

 
(7
)
Net income
51

 
—

 
44

 
—

 
—

 
7

Other comprehensive income, net of tax
(46
)
 
—

 
—

 
—

 
(46
)
 
—

Balance at March 31, 2015
$
872

 
$
2,056

 
$
471

 
$
(726
)
 
$
(922
)
 
$
(7
)



Accumulated other comprehensive loss, net of tax
 
March 31,
Dollars in millions
2016
 
2015
Accumulated foreign currency translation adjustments, net of tax of $3 and $3
$
(252
)
 
$
(261
)
Pension and post-retirement benefits, net of tax of $207 and $230
(554
)
 
(658
)
Fair value of derivatives, net of tax of $0 and $0
(2
)
 
(3
)
Total accumulated other comprehensive loss
$
(808
)
 
$
(922
)


Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
17

 
—

 
—

 
17

Amounts reclassified from accumulated other comprehensive income
—

 
6

 
—

 
6

Balance at March 31, 2016
$
(252
)
 
$
(554
)
 
$
(2
)
 
$
(808
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2014
$
(203
)
 
$
(670
)
 
$
(3
)
 
$
(876
)
Other comprehensive income adjustments before reclassifications
(58
)
 
—

 
—

 
(58
)
Amounts reclassified from accumulated other comprehensive income
—

 
12

 
—

 
12

Balance at March 31, 2015
$
(261
)
 
$
(658
)
 
$
(3
)
 
$
(922
)



Reclassifications out of accumulated other comprehensive loss, net of tax, by component
 
Three Months Ended March 31,
 
 
Dollars in millions
2016
 
2015
 
Affected line item on the Condensed Consolidated Statements of Operations
Accumulated pension liability adjustments
 
 
 
 
 
    Amortization of actuarial loss (a)
$
(7
)
 
$
(14
)
 
See (a) below
Tax benefit
1

 
2

 
Provision for income taxes
Net pension and post-retirement benefits
$
(6
)
 
$
(12
)
 
Net of tax
 
(a)
This item is included in the computation of net periodic pension cost. See Note 9 to our condensed consolidated financial statements for further discussion.
Share Repurchase
Share Repurchases
Share Repurchases

Authorized Share Repurchase Program

On February 25, 2014, our Board of Directors authorized a plan to repurchase up to $350 million of our outstanding common shares, which replaced and terminated the August 26, 2011 share repurchase program. The authorization does not obligate the Company to acquire any particular number of common shares and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash and the authorization does not have an expiration date.

Share Maintenance Programs

Stock options and restricted stock awards granted under the KBR Stock and Incentive Plan may be satisfied using shares of our authorized but unissued common stock or our treasury share account.

The Employee Stock Purchase Plan ("ESPP") allows eligible employees to withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR common stock. These shares are issued from our treasury share account.

Withheld to Cover Program

In addition to the plans above, we also have in place a "withheld to cover" program, which allows us to withhold ordinary shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share based equity awards under the KBR Stock and Incentive Plan.

The table below presents information on our share repurchases activity under these programs:
 
Three Months Ended March 31, 2016
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 
$
—

 
$
—

Repurchases under the existing share maintenance programs
—

 
—

 
—

Withheld to cover shares
118,036

 
13.81

 
2

Total
118,036

 
$
13.81

 
$
2

 
 
 
Three Months Ended March 31, 2015
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
604,032

 
$
15.14

 
$
9

Repurchases under the existing share maintenance programs
359,382

 
15.49

 
5

Withheld to cover shares
108,276

 
16.34

 
2

Total
1,071,690

 
$
15.38

 
$
16

Financial Instruments And Risk Management Financial Instruments And Risk Management
Fair Value, Concentration of Risk
Financial Instruments and Risk Management

Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet.

As of March 31, 2016, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $88 million, all of which had durations of 8 days or less. We also had approximately $21 million (notional value) of foreign currency hedges which had durations of approximately 21 months or less.

The fair value of our balance sheet and cash flow hedges included in "other current assets" and "other current liabilities" on our condensed consolidated balance sheets was immaterial at March 31, 2016 and December 31, 2015, respectively. These fair values of our derivatives are considered Level 2 under ASC 820 - Fair Value Measurement as they are based on quoted prices directly observable in active markets.
The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "other non-operating income (expense)" on our condensed consolidated statements of operations.
 
March 31,
 
December 31,
Gains (losses) dollars in millions
2016
 
2015
Balance sheet hedges - fair value
$
(2
)
 
$
(40
)
Balance sheet position - remeasurement
6

 
50

Net
$
4

 
$
10

Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recent Accounting Pronouncements

On March 31, 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify several aspects of the accounting for share-based payment transactions including (a) the income tax consequences (b) classification of awards as either equity or liabilities and (c) classification on the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. The application of the amendments requires various transition methods depending on the specific item. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business.

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with terms longer than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016. Subsequent amendments have been issued as follows:

On August 12, 2015, the FASB issued ASU No. 2015-14 which approved a one year deferral of the effective date of this standard. The FASB also approved changes allowing for early adoption of the standard as of the original effective date. The revised effective date for the ASU is January 1, 2018, and can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application.

On March 17, 2016, the FASB issued ASU No. 2016-08 to amend and clarify the principal versus agent considerations under the new revenue recognition standard. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition.

On April 14, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing. The amendments improve the guidance for determining whether the promised goods or services are separately identifiable and also provide implementation guidance on determining whether an entity's promise to grant a license provides a customer with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time).

We intend to apply the modified retrospective method of adoption with the cumulative effect of adoption recognized at the date of initial application. We are in the process of assessing the impact of the adoption of ASU 2014-09, ASU 2016-08 and ASU 2016-10 on our financial statements. We have not yet determined the effect of the adoption on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business.
Description Of Company And Significant Accounting Policies (Policy)
Principles of consolidation 
Principles of Consolidation

Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities ("VIEs") of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 8 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation.

Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows.

We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures.

Use of estimates 
Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following:

•
project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts
•
provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others
•
provisions for income taxes and related valuation allowances and tax uncertainties
•
recoverability of goodwill
•
recoverability of other intangibles and long-lived assets and related estimated lives
•
recoverability of equity method and cost method investments
•
valuation of pension obligations and pension assets
•
accruals for estimated liabilities, including litigation accruals
•
consolidation of VIEs
•
valuation of share-based compensation

In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block] 
Adoption of New Accounting Standards

Consolidation. Effective January 1, 2016, we adopted Accounting Standards Update ("ASU") No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which was issued by the Financial Accounting Standards Board ("FASB") on February 18, 2015. This ASU amends the consolidation guidance for VIEs as well as general partners’ investments in limited partnerships and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. ASU 2015-02 is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. The adoption of ASU 2015-02 did not have a material impact on our financial statements.
Description Of Company And Significant Accounting Policies Additional Balance Sheet Disclosure (Tables)
Additional Balance Sheet Disclosure

Additional Balance Sheet Information

Other Current Assets

Included in the "other current assets" balance on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 is prepaid taxes and other prepaid assets of $59 million and $58 million, respectively.

Other Current Liabilities

The components of "other current liabilities" on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 are presented below:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Reserve for estimated losses on uncompleted contracts (a)
$
44

 
$
60

Retainage payable
48

 
49

Income taxes payable
54

 
56

Value-added tax payable
13

 
12

Insurance payable
10

 
12

Dividend payable
11

 
12

Other miscellaneous liabilities (b)
60

 
62

Total other current liabilities
$
240

 
$
263

 
(a)
See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts.
(b)
Included in other current miscellaneous liabilities is deferred rent of $6 million and $7 million as of March 31, 2016 and December 31, 2015, respectively.

Other Liabilities

Included in the "other liabilities" balance on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 is noncurrent deferred rent of $111 million and $114 million, respectively. Also included in the "other liabilities" balance is a payable to our former parent of $19 million in each of the periods presented. Such amount will be paid to our former parent upon receipt of a tax refund from the United States ("U.S.") Internal Revenue Service in an amount greater than or equal to $19 million.
Business Segment Information (Tables)
Schedule of Operations by Reportable Segment 
The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates and operating income (loss) by reporting segment.
Operations by Reportable Segment
 
Three Months Ended March 31,
Dollars in millions
2016
 
2015
Revenues:
 
 
 
Technology & Consulting
$
97

 
$
72

Engineering & Construction
606

 
977

Government Services
210

 
155

Other
—

 
—

Subtotal
913

 
1,204

Non-strategic Business
83

 
232

Total revenues
$
996

 
$
1,436

Gross profit (loss):
 
 
 
Technology & Consulting
$
17

 
$
19

Engineering & Construction
29

 
55

Government Services
21

 
(4
)
Other
—

 
—

Subtotal
67

 
70

Non-strategic Business
1

 
—

Total gross profit (loss)
$
68

 
$
70

Equity in earnings of unconsolidated affiliates:
 
 
 
Technology & Consulting
$
—

 
$
—

Engineering & Construction
18

 
21

Government Services
11

 
14

Other
—

 
—

Subtotal
29

 
35

Non-strategic Business
—

 
—

Total equity in earnings of unconsolidated affiliates
$
29

 
$
35

Segment operating income (loss):
 
 
 
Technology & Consulting
$
15

 
$
17

Engineering & Construction
37

 
66

Government Services
30

 
9

Other
(22
)
 
(28
)
Subtotal
60

 
64

Non-strategic Business
5

 
—

Total segment operating income (loss)
$
65

 
$
64



Schedule of Change in Accounting Estimate, Contract Costs 
Activity in our reserve for estimated losses on uncompleted contracts, which is a component of "other current liabilities" on our condensed consolidated balance sheets, was as follows:
Dollars in millions
Reserve for Estimated Losses
Balance at December 31, 2015
$
60

Changes in estimates on loss projects
5

Change due to progress on loss projects
(21
)
Balance at March 31, 2016
$
44

 
 
Balance at December 31, 2014
$
159

Changes in estimates on loss projects
12

Change due to progress on loss projects
(53
)
Balance at March 31, 2015
$
118

Business Segment Information Acquisitions (Tables)
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the consideration paid for this acquisition and the fair value of the assets acquired and liabilities assumed as of the acquisition date.
Dollars in millions
 
Fair value of total consideration transferred
$
25

 
 
Recognized amounts of identifiable assets acquired and liabilities assumed:
 
Tangible assets (a)
23

Intangible assets (b)
19

Liabilities (c)
(31
)
Liabilities arising from contingencies (d)
(6
)
 
 
Goodwill
$
20

Cash and Equivalents (Tables)
Schedule of Cash and Cash Equivalents
The components of our cash and equivalents balance are as follows:
 
March 31, 2016
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
143

 
$
258

 
$
401

Short-term investments (c)
286

 
81

 
367

Cash and equivalents held in joint ventures
52

 
4

 
56

Total
$
481

 
$
343

 
$
824


 
December 31, 2015
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
177

 
$
253

 
$
430

Short-term investments (c)
293

 
107

 
400

Cash and equivalents held in joint ventures
49

 
4

 
53

Total
$
519

 
$
364

 
$
883

 
(a)
Includes deposits held in non-U.S. operating accounts.
(b)
Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country.
(c)
Includes time deposits, money market funds, and other highly liquid short-term investments
Accounts Receivable (Tables)
Schedule of Accounts Receivable
The components of our accounts receivable, net of allowance for doubtful accounts balance are as follows:
 
March 31, 2016
Dollars in millions
Retainage
 
Trade & Other
 
Total
Technology & Consulting
$
—

 
$
61

 
$
61

Engineering & Construction
58

 
358

 
416

Government Services
2

 
76

 
78

Other
—

 
—

 
—

Subtotal
60

 
495

 
555

Non-strategic Business
9

 
19

 
28

Total
$
69

 
$
514

 
$
583


 
December 31, 2015
Dollars in millions
Retainage
 
Trade & Other
 
Total
Technology & Consulting
$
—

 
$
70

 
$
70

Engineering & Construction
51

 
402

 
453

Government Services
2

 
75

 
77

Other
—

 
2

 
2

Subtotal
53

 
549

 
602

Non-strategic Business
9

 
17

 
26

Total
$
62

 
$
566

 
$
628

Percentage-Of-Completion Contracts (Tables)
Schedule Of Unapproved Claims And Change Orders
The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows:
Dollars in millions
2016
 
2015
Amounts included in project estimates-at-completion at January 1,
$
46

 
$
31

Changes in estimates-at-completion
10

 
11

Approved change orders
(26
)
 
(3
)
Amounts included in project estimates-at-completion at March 31,
$
30

 
$
39

 
 
 
 
Amounts recorded in revenues on a percentage-of-completion basis at March 31,
$
25

 
$
37


Claims and Accounts Receivable (Tables)
Schedule of Contracts Receivable, Claims and Uncertain Amounts
The components of our claims and accounts receivable account balance not expected to be collected within the next 12 months are as follows:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Engineering & Construction
$
401

 
$
400

Government Services
131

 
126

Total
$
532

 
$
526

Asset Impairment and Restructuring (Tables)
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]
The table below provides details of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "other current liabilities" on our condensed consolidated balance sheets.
Dollars in millions
Severance Accrual
Balance at December 31, 2015
$
19

Charges
5

Payments
(7
)
Balance at March 31, 2016
$
17

 
 
Balance at December 31, 2014
$
21

Charges
1

Payments
(8
)
Balance at March 31, 2015
$
14

Equity Method Investments And Variable Interest Entities (Related Part Disclosures) (Tables)
Equity In Earnings of Unconsolidated Affiliates [Table Text Block] 
The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
 
March 31,
 
December 31,
Dollars in millions
2016
 
2015
Beginning balance
$
281

 
$
151

Equity in earnings of unconsolidated affiliates
29

 
149

Distribution of earnings of unconsolidated affiliates (b)
(20
)
 
(92
)
Advances
8

 
(10
)
Investments (a)
—

 
80

Foreign currency translation adjustments
2

 
(9
)
Other
—

 
1

Balance before reclassification
$
300

 
$
270

Reclassification of excess distributions (b)
6

 
16

Recognition of excess distributions (b)
(3
)
 
(5
)
Ending balance
$
303

 
$
281


 

Consolidated Summarized Financial Information 
Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture reduced for any unearned revenues on the projects. On the Affinity joint venture, our maximum exposure to loss is limited to our proportionate share of any amounts required to fund future losses incurred by those entities under their respective contracts with the project company. On the Aspire Defence project, in addition to the maximum exposure to loss indicated in the table below, we have exposure to any losses incurred by the construction or operating joint ventures under their respective subcontract arrangements with the project company. Our exposure is, however, limited to our equity participation in these entities. The Ichthys liquefied natural gas ("LNG") project joint venture executes a project that has a lump sum component; in addition to the maximum exposure to loss indicated in the table below, we have an exposure to losses to the extent of our ownership percentage in the joint venture if the project exceeds the lump sum component. Our maximum exposure to loss on the EBIC Ammonia plant reflects our 65% ownership of the development corporation which owns 25% of the company that consolidates the ammonia plant. We continue to monitor our investment in this joint venture as the profitability of its operations has been impacted by the challenges related to the availability of natural gas feedstock in Egypt.

The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.

 
March 31, 2016
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity project
$
19

 
$
3

 
$
19

Aspire Defence project
$
16

 
$
124

 
$
16

Ichthys LNG project
$
94

 
$
69

 
$
94

U.K. Road projects
$
34

 
$
11

 
$
34

EBIC Ammonia plant (65% interest)
$
36

 
$
2

 
$
22

 
 
December 31, 2015
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Aspire Defence project
$
17

 
$
121

 
$
17

Ichthys LNG project
$
87

 
$
63

 
$
87

U.K. Road projects
$
34

 
$
11

 
$
34

EBIC Ammonia plant (65% interest)
$
36

 
$
2

 
$
22

Schedule Of Variable Interest Entities 
The following is a summary of the significant VIEs where we are the primary beneficiary:
Dollars in millions
March 31, 2016
Total assets
 
Total liabilities
Gorgon LNG project
$
46

 
$
80

Escravos Gas-to-Liquids project
$
16

 
$
33

Fasttrax Limited project
$
72

 
$
69

 

Dollars in millions
December 31, 2015
Total assets
 
Total liabilities
Gorgon LNG project
$
117

 
$
145

Escravos Gas-to-Liquids project
$
16

 
$
33

Fasttrax Limited project
$
74

 
$
70

Pension Plans Pension (Tables) (Pension Plan [Member])
Schedule of Net Benefit Costs
The components of net periodic benefit cost related to pension benefits for the three months ended March 31, 2016 and 2015 were as follows:
 
Three Months Ended March 31,
 
2016
 
2015
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
—

 
$
—

Interest cost
1

 
17

 
1

 
19

Expected return on plan assets
(1
)
 
(23
)
 
(1
)
 
(24
)
Recognized actuarial loss
—

 
7

 
1

 
13

Net periodic benefit cost
$
—

 
$
1

 
$
1

 
$
8

Income Per Share (Tables)
Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding
A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows:
 
Three Months Ended March 31,
Shares in millions
2016
 
2015
Basic weighted average common shares outstanding
142

 
145

Stock options and restricted shares
—

 
—

Diluted weighted average common shares outstanding
142

 
145

Shareholders' Equity (Tables)
Shareholders' Equity Activities 
The following tables summarize our activity in shareholders’ equity:
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2015
$
1,052

 
$
2,070

 
$
595

 
$
(769
)
 
$
(831
)
 
$
(13
)
Share-based compensation
6

 
6

 
—

 
—

 
—

 
—

Tax benefit increase related to share-based plans
1

 
1

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(11
)
 
—

 
(11
)
 
—

 
—

 
—

Repurchases of common stock
(2
)
 
—

 
—

 
(2
)
 
—

 
—

Issuance of ESPP shares
1

 
(1
)
 
—

 
2

 
—

 
—

Distributions to noncontrolling interests
(6
)
 
—

 
—

 
—

 
—

 
(6
)
Net income
45

 
—

 
42

 
—

 
—

 
3

Other comprehensive income (loss), net of tax
22

 
—

 
—

 
—

 
23

 
(1
)
Balance at March 31, 2016
$
1,108

 
$
2,076

 
$
626

 
$
(769
)
 
$
(808
)
 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2014
$
935

 
$
2,091

 
$
439

 
$
(712
)
 
$
(876
)
 
$
(7
)
Acquisition of noncontrolling interest
(40
)
 
(40
)
 
—

 
—

 
—

 
—

Share-based compensation
5

 
5

 
—

 
—

 
—

 
—

Common stock issued upon exercise of stock options
1

 
1

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(12
)
 
—

 
(12
)
 
—

 
—

 
—

Repurchases of common stock
(16
)
 
—

 
—

 
(16
)
 
—

 
—

Issuance of ESPP shares
1

 
(1
)
 
—

 
2

 
—

 
—

Distributions to noncontrolling interests
(7
)
 
—

 
—

 
—

 
—

 
(7
)
Net income
51

 
—

 
44

 
—

 
—

 
7

Other comprehensive income, net of tax
(46
)
 
—

 
—

 
—

 
(46
)
 
—

Balance at March 31, 2015
$
872

 
$
2,056

 
$
471

 
$
(726
)
 
$
(922
)
 
$
(7
)


Accumulated Other Comprehensive Income (Loss) 
Accumulated other comprehensive loss, net of tax
 
March 31,
Dollars in millions
2016
 
2015
Accumulated foreign currency translation adjustments, net of tax of $3 and $3
$
(252
)
 
$
(261
)
Pension and post-retirement benefits, net of tax of $207 and $230
(554
)
 
(658
)
Fair value of derivatives, net of tax of $0 and $0
(2
)
 
(3
)
Total accumulated other comprehensive loss
$
(808
)
 
$
(922
)
Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
17

 
—

 
—

 
17

Amounts reclassified from accumulated other comprehensive income
—

 
6

 
—

 
6

Balance at March 31, 2016
$
(252
)
 
$
(554
)
 
$
(2
)
 
$
(808
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2014
$
(203
)
 
$
(670
)
 
$
(3
)
 
$
(876
)
Other comprehensive income adjustments before reclassifications
(58
)
 
—

 
—

 
(58
)
Amounts reclassified from accumulated other comprehensive income
—

 
12

 
—

 
12

Balance at March 31, 2015
$
(261
)
 
$
(658
)
 
$
(3
)
 
$
(922
)
Accumulated Other Comprehensive Income (Loss) 
Accumulated other comprehensive loss, net of tax
 
March 31,
Dollars in millions
2016
 
2015
Accumulated foreign currency translation adjustments, net of tax of $3 and $3
$
(252
)
 
$
(261
)
Pension and post-retirement benefits, net of tax of $207 and $230
(554
)
 
(658
)
Fair value of derivatives, net of tax of $0 and $0
(2
)
 
(3
)
Total accumulated other comprehensive loss
$
(808
)
 
$
(922
)
Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
17

 
—

 
—

 
17

Amounts reclassified from accumulated other comprehensive income
—

 
6

 
—

 
6

Balance at March 31, 2016
$
(252
)
 
$
(554
)
 
$
(2
)
 
$
(808
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2014
$
(203
)
 
$
(670
)
 
$
(3
)
 
$
(876
)
Other comprehensive income adjustments before reclassifications
(58
)
 
—

 
—

 
(58
)
Amounts reclassified from accumulated other comprehensive income
—

 
12

 
—

 
12

Balance at March 31, 2015
$
(261
)
 
$
(658
)
 
$
(3
)
 
$
(922
)
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] 
Reclassifications out of accumulated other comprehensive loss, net of tax, by component
 
Three Months Ended March 31,
 
 
Dollars in millions
2016
 
2015
 
Affected line item on the Condensed Consolidated Statements of Operations
Accumulated pension liability adjustments
 
 
 
 
 
    Amortization of actuarial loss (a)
$
(7
)
 
$
(14
)
 
See (a) below
Tax benefit
1

 
2

 
Provision for income taxes
Net pension and post-retirement benefits
$
(6
)
 
$
(12
)
 
Net of tax
 
(a)
This item is included in the computation of net periodic pension cost. See Note 9 to our condensed consolidated financial statements for further discussion.
Share Repurchases (Tables)
Schedule of shares repurchased
The table below presents information on our share repurchases activity under these programs:
 
Three Months Ended March 31, 2016
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 
$
—

 
$
—

Repurchases under the existing share maintenance programs
—

 
—

 
—

Withheld to cover shares
118,036

 
13.81

 
2

Total
118,036

 
$
13.81

 
$
2

 
 
 
Three Months Ended March 31, 2015
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
604,032

 
$
15.14

 
$
9

Repurchases under the existing share maintenance programs
359,382

 
15.49

 
5

Withheld to cover shares
108,276

 
16.34

 
2

Total
1,071,690

 
$
15.38

 
$
16

Financial Instruments And Risk Management Financial Instruments and Risk Management (Tables)
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "other non-operating income (expense)" on our condensed consolidated statements of operations.
 
March 31,
 
December 31,
Gains (losses) dollars in millions
2016
 
2015
Balance sheet hedges - fair value
$
(2
)
 
$
(40
)
Balance sheet position - remeasurement
6

 
50

Net
$
4

 
$
10

Description Of Company And Significant Accounting Policies (Balance Sheet Additional Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Accounting Policies [Abstract]
 
 
 
 
Prepaid taxes and other prepaid expenses
$ 59 
$ 58 
 
 
Reserve for estimated losses on uncompleted contracts
44 
60 
118 
159 
Retainage payable
48 
49 
 
 
Income taxes payable
54 
56 
 
 
Value-added tax payable
13 
12 
 
 
Insurance payable
10 
12 
 
 
Dividend payable
11 
12 
 
 
Other miscellaneous liabilities (b)
60 
62 
 
 
Total other current liabilities
240 
263 
 
 
Deferred rent
6 
7 
 
 
Noncurrent deferred rent
111 
114 
 
 
Due to former parent upon receipt from IRS
$ 19 
$ 19 
 
 
Business Segment Information (Schedule Of Operations By Reportable Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting Information [Line Items]
 
 
Revenue
$ 996 
$ 1,436 
Gross profit
68 
70 
Equity in earnings of unconsolidated affiliates
29 
35 
Operating income
65 
64 
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
913 
1,204 
Gross profit
67 
70 
Equity in earnings of unconsolidated affiliates
29 
35 
Operating income
60 
64 
Operating Segments [Member] |
Technology and Consulting [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
97 
72 
Gross profit
17 
19 
Equity in earnings of unconsolidated affiliates
0 
0 
Operating income
15 
17 
Operating Segments [Member] |
Engineering and Construction [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
606 
977 
Gross profit
29 
55 
Equity in earnings of unconsolidated affiliates
18 
21 
Operating income
37 
66 
Operating Segments [Member] |
Government Services [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
210 
155 
Gross profit
21 
(4)
Equity in earnings of unconsolidated affiliates
11 
14 
Operating income
30 
9 
Operating Segments [Member] |
Other Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
0 
0 
Gross profit
0 
0 
Equity in earnings of unconsolidated affiliates
0 
0 
Operating income
(22)
(28)
Operating Segments [Member] |
Non-strategic Business [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
83 
232 
Gross profit
1 
0 
Equity in earnings of unconsolidated affiliates
0 
0 
Operating income
$ 5 
$ 0 
Business Segment Information Schedule of Changes in Estimates (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Change in Accounting Estimate [Line Items]
 
 
 
 
Reserve for estimated losses on uncompleted contracts
$ 44 
$ 60 
$ 118 
$ 159 
Initial Changes [Member]
 
 
 
 
Change in Accounting Estimate [Line Items]
 
 
 
 
Reserve for estimated losses on uncompleted contracts
5 
 
12 
 
Amortization of Loss Provision [Member]
 
 
 
 
Change in Accounting Estimate [Line Items]
 
 
 
 
Reserve for estimated losses on uncompleted contracts
(21)
 
(53)
 
Power Projects [Member]
 
 
 
 
Change in Accounting Estimate [Line Items]
 
 
 
 
Reserve for estimated losses on uncompleted contracts
33 
 
65 
 
Canadian Pipe Fabrication And Module Assembly Projects [Member]
 
 
 
 
Change in Accounting Estimate [Line Items]
 
 
 
 
Reserve for estimated losses on uncompleted contracts
 
 
$ 37 
 
Business Segment Information Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Jan. 11, 2016
Chematur Subsidiaries [Member]
Mar. 31, 2016
Chematur Subsidiaries [Member]
Jan. 11, 2016
Chematur Subsidiaries [Member]
Jan. 11, 2016
Technology and Consulting [Member]
Chematur Subsidiaries [Member]
Jan. 11, 2016
Technology-Based Intangible Assets [Member]
Chematur Subsidiaries [Member]
Jan. 11, 2016
Customer-Related Intangible Assets [Member]
Chematur Subsidiaries [Member]
Jan. 11, 2016
Trade Accounts Receivable [Member]
Chematur Subsidiaries [Member]
Jan. 11, 2016
Accounts Payable and Accrued Liabilities [Member]
Chematur Subsidiaries [Member]
Jan. 11, 2016
Other Noncurrent Liabilities [Member]
Chematur Subsidiaries [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
 
 
 
100.00% 
 
 
 
 
 
 
Number of Businesses Acquired
 
 
 
3 
 
 
 
 
 
 
 
 
Business Combination, Reason for Business Combination
 
 
 
Plinke specializes in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities. Weatherly provides nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market. Ecoplanning offers proprietary evaporation and crystallization technologies and specialist equipment for weak acid and base solutions. As a result of this acquisition, we can expand our technology and consulting solutions into new markets while leveraging KBR's global sales and EPC capabilities. 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
$ (25)
 
 
 
 
 
 
 
 
Cash Acquired from Acquisition
 
 
 
3 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
22 
0 
 
22 
 
 
 
 
 
 
 
 
Escrow Deposit
 
 
 
 
 
5 
 
 
 
 
 
 
Business Combination, Goodwill Recognized, Description
 
 
 
The goodwill of $20 million arising from the acquisition relates primarily to future growth opportunities to extend the acquired technologies outside North America to new customers and in revamping units of the existing customer base globally. 
 
 
 
 
 
 
 
 
Business Acquisition, Goodwill, Expected Tax Deductible Amount
 
 
 
 
0 
 
 
 
 
 
 
 
Business Acquisition, Transaction Costs
 
 
 
 
1 
 
 
 
 
 
 
 
Business Combination, Consideration Transferred
 
 
 
25 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets
 
 
 
 
 
23 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
 
 
 
 
 
19 
 
10 
7 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities
 
 
 
 
 
(31)
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability
 
 
 
 
 
(6)
 
 
 
 
 
 
Goodwill
344 
 
324 
 
 
 
20 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets
 
 
 
 
 
 
 
 
 
13 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
 
20 years 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities
 
 
 
 
 
 
 
 
 
 
17 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
 
 
14 
Business Acquisition, Pro Forma Revenue
 
 
 
 
10 
 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual
 
 
 
 
$ 4 
 
 
 
 
 
 
 
Cash and Equivalents (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
$ 824 
$ 883 
$ 758 
$ 970 
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
401 
430 
 
 
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
367 
400 
 
 
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
56 
53 
 
 
International [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
481 
519 
 
 
International [Member] |
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
143 
177 
 
 
International [Member] |
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
286 
293 
 
 
International [Member] |
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
52 
49 
 
 
Domestic [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
343 
364 
 
 
Domestic [Member] |
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
258 
253 
 
 
Domestic [Member] |
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
81 
107 
 
 
Domestic [Member] |
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
$ 4 
$ 4 
 
 
Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
$ 555 
$ 602 
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
60 
53 
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
495 
549 
Technology and Consulting [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
61 
70 
Technology and Consulting [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
0 
Technology and Consulting [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
61 
70 
Engineering and Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
416 
453 
Engineering and Construction [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
58 
51 
Engineering and Construction [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
358 
402 
Government Services [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
78 
77 
Government Services [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
2 
2 
Government Services [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
76 
75 
Other Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
2 
Other Segment [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
0 
Other Segment [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
2 
Non-strategic Business [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
28 
26 
Non-strategic Business [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
9 
9 
Non-strategic Business [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
19 
17 
Operating Segments [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
583 
628 
Operating Segments [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
69 
62 
Operating Segments [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
$ 514 
$ 566 
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts CIE (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
$ 222 
$ 224 
Operating Segments [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
222 
224 
Operating Segments [Member] |
Technology and Consulting [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
42 
42 
Operating Segments [Member] |
Engineering and Construction [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
103 
114 
Operating Segments [Member] |
Government Services [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
77 
68 
Operating Segments [Member] |
Non-strategic Business [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
$ 0 
$ 0 
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts BIE (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Billings in Excess of Cost
$ 471 
$ 509 
Operating Segments [Member]
 
 
Billings in Excess of Cost
433 
448 
Operating Segments [Member] |
Technology and Consulting [Member]
 
 
Billings in Excess of Cost
77 
72 
Operating Segments [Member] |
Engineering and Construction [Member]
 
 
Billings in Excess of Cost
300 
307 
Operating Segments [Member] |
Government Services [Member]
 
 
Billings in Excess of Cost
56 
69 
Operating Segments [Member] |
Non-strategic Business [Member]
 
 
Billings in Excess of Cost
$ 38 
$ 61 
Percentage-Of-Completion Contracts (Schedule Of Unapproved Claims And Change Orders) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Unapproved Change Orders And Claims Recorded In Revenues
$ 25 
$ 37 
 
 
Unapproved change orders
30 
39 
46 
31 
Changes in Estimates at Completion
10 
11 
 
 
Change Orders Approved by Customer
(26)
(3)
 
 
Parent Share of Probable Unapproved Claims of Unconsolidated Subsidiary [Member]
 
 
 
 
Unapproved change orders
$ 51 
$ 77 
 
 
Percentage-Of-Completion Contracts (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Liquidated damages
$ 7 
Claims and Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Claims receivable
$ 532 
$ 526 
Engineering and Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Claims receivable
401 
400 
Government Services [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Claims receivable
$ 131 
$ 126 
Asset Impairment and Restructuring Severance Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
Charges
$ 2 
$ 2 
Employee Severance [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Reserve
19 
21 
Charges
5 
1 
Payments
(7)
(8)
Restructuring Reserve
$ 17 
$ 14 
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Beginning Balance [Member]
Dec. 31, 2014
Beginning Balance [Member]
Mar. 31, 2016
Joint Venture Earnings [Member]
Dec. 31, 2015
Joint Venture Earnings [Member]
Mar. 31, 2016
Dividends Paid by Joint Venture [Member]
Dec. 31, 2015
Dividends Paid by Joint Venture [Member]
Mar. 31, 2016
Advances [Member]
Dec. 31, 2015
Advances [Member]
Mar. 31, 2016
New Investments [Member]
Dec. 31, 2015
New Investments [Member]
Mar. 31, 2016
Cumulative Translation Adjustment [Member]
Dec. 31, 2015
Cumulative Translation Adjustment [Member]
Mar. 31, 2016
Other Activity [Member]
Dec. 31, 2015
Other Activity [Member]
Mar. 31, 2016
Subtotal Before Reclassification [Member]
Dec. 31, 2015
Subtotal Before Reclassification [Member]
Mar. 31, 2016
Reclassification of excess distribution [Member]
Dec. 31, 2015
Reclassification of excess distribution [Member]
Mar. 31, 2016
Recognition of Excess Distribution [Member]
Dec. 31, 2015
Recognition of Excess Distribution [Member]
Mar. 31, 2016
Ending Balance [Member]
Dec. 31, 2015
Ending Balance [Member]
Dec. 31, 2015
Brown & Root JV [Member]
Dec. 31, 2015
EPIC Piping [Member]
Equity In Earnings of Unconsolidated Affiliates [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investments
$ 281 
$ 151 
$ 29 
$ 149 
$ (20)
$ (92)
$ 8 
$ (10)
$ 0 
$ 80 
$ 2 
$ (9)
$ 0 
$ 1 
$ 300 
$ 270 
$ 6 
$ 16 
$ (3)
$ (5)
$ 303 
$ 281 
$ 58 
$ 24 
Equity Method Investments And Variable Interest Entities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Mar. 31, 2016
Affinity Flying Training Services Limited [Member]
Mar. 31, 2016
Affinity Flying Services [Member]
Mar. 31, 2016
Affinity Capital Works [Member]
Feb. 29, 2016
Affinity Project [Member]
Mar. 31, 2016
EBIC Ammonia Plant [Member]
Parent Company [Member]
Mar. 31, 2016
EBIC Ammonia Plant [Member]
Development Corporation [Member]
Mar. 31, 2016
Advances [Member]
Dec. 31, 2015
Advances [Member]
Mar. 31, 2016
Advances [Member]
Affinity Project [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
50.00% 
50.00% 
50.00% 
 
 
 
 
 
 
Equity Method Investments
 
 
 
 
 
 
$ 8 
$ (10)
$ 14 
Term Of Contracted Services Portion Of Project
 
 
 
18 years 
 
 
 
 
 
Ownership Percentage In Development Corporation Which Has Minority Interest In Company That Consolidates VIE
 
 
 
 
65.00% 
 
 
 
 
Ownership Percentage Of Development Corporation In Company That Consolidates VIE
 
 
 
 
 
25.00% 
 
 
 
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Accounts Receivable, Related Parties
$ 24 
 
$ 7 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
222 
 
224 
Accounts Payable, Related Parties
0 
 
9 
Transactions with Related Parties [Member]
 
 
 
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Revenue from Related Parties
99 
73 
 
Costs and estimated earnings in excess of billings on uncompleted contracts (CIE)
6 
 
5 
Billings in Excess of Cost
61 
 
55 
Brown & Root JV [Member]
 
 
 
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Revenue from Related Parties
4 
 
 
Related Party Transaction, Due from (to) Related Party
$ (9)
 
$ 9 
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Variable Interest Entity, Not Primary Beneficiary [Member] |
Affinity Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
$ 19 
 
Unconsolidated VIEs, Total liabilities
3 
 
Maximum exposure to loss
19 
 
Variable Interest Entity, Not Primary Beneficiary [Member] |
Aspire Defence Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
16 
17 
Unconsolidated VIEs, Total liabilities
124 
121 
Maximum exposure to loss
16 
17 
Variable Interest Entity, Not Primary Beneficiary [Member] |
Ichthys LNG Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
94 
87 
Unconsolidated VIEs, Total liabilities
69 
63 
Maximum exposure to loss
94 
87 
Variable Interest Entity, Not Primary Beneficiary [Member] |
U.K. Road Projects [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
34 
34 
Unconsolidated VIEs, Total liabilities
11 
11 
Maximum exposure to loss
34 
34 
Variable Interest Entity, Not Primary Beneficiary [Member] |
EBIC Ammonia Plant [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
36 
36 
Unconsolidated VIEs, Total liabilities
2 
2 
Maximum exposure to loss
22 
22 
Variable Interest Entity, Primary Beneficiary [Member] |
Gorgon LNG Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
46 
117 
Consolidated VIEs, Total liabilities
80 
145 
Variable Interest Entity, Primary Beneficiary [Member] |
Escravos Gas-To-Liquids Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
16 
16 
Consolidated VIEs, Total liabilities
33 
33 
Variable Interest Entity, Primary Beneficiary [Member] |
Fasttrax Limited Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
72 
74 
Consolidated VIEs, Total liabilities
$ 69 
$ 70 
Pension and Postretirement Plans (Components Of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
United States Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
$ 0 
$ 0 
Interest cost
1 
1 
Expected return on plan assets
(1)
(1)
Recognized actuarial loss
0 
1 
Defined Benefit Plan, Net Periodic Benefit Cost
0 
1 
International Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
0 
0 
Interest cost
17 
19 
Expected return on plan assets
(23)
(24)
Recognized actuarial loss
7 
13 
Defined Benefit Plan, Net Periodic Benefit Cost
1 
8 
Contributions by employer
10 
 
Estimated future employer contributions in next fiscal year
$ 41 
 
Debt And Other Credit Facilities (Details) (USD $)
3 Months Ended
Mar. 31, 2016
Sep. 25, 2015
Line of Credit Facility [Line Items]
 
 
Amounts advanced bear interest at variable rates
Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i) the London interbank offered rate ("LIBOR") plus an applicable margin of 1.375% to 1.75%, or (ii) a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. 
 
Debt To EBITDA Ratio [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility terms
3.5 to 1 
 
Maximum [Member] |
Revolving Credit Facility [Member]
 
 
Line of Credit Facility [Line Items]
 
 
LIBOR applicable margin
1.75% 
 
AdditionalAggregateCommitmentsIncreaseLimit [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility, maximum borrowing capacity
$ 500,000,000 
 
Revolving Credit Facility [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Line of credit facility, maximum borrowing capacity
 
1,000,000,000 
Percent added to federal fund rate
0.50% 
 
Percent added to LIBOR
1.00% 
 
Percentage of LIBOR applicable margin for performance letters of credit
50.00% 
 
Letter of credit fee charged on issuance
0.125% 
 
Minimum consolidated net worth base in addition to certain percentage of consolidated net income and increase in shareholders' equity attributable to the sale of equity interests
1,200,000,000 
 
Consolidated net income percentage
50.00% 
 
Increase in shareholders' equity attributable to the sale of equity securities percentage
100.00% 
 
Additional amount of equity repurchases allowed under Credit Agreement pending the resolution of PEMEX litigation.
400,000,000 
 
Remaining availability under equity repurchase distribution cap
686,000,000 
 
Revolving Credit Facility [Member] |
Maximum [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Base rate applicable margin
0.75% 
 
Letter of credit fronting commitments
0.25% 
 
Principal amount of of additional indebtedness parent company may incur under Credit Agreement provisions
200,000,000 
 
Principal amount of unsecured indebtedness our subsidiaries may incur under Credit Agreement provisions
200,000,000 
 
Base dollar amount of share and equity repurchases cap
750,000,000 
 
Revolving Credit Facility [Member] |
Minimum [Member]
 
 
Line of Credit Facility [Line Items]
 
 
LIBOR applicable margin
1.375% 
 
Base rate applicable margin
0.375% 
 
Letter of credit fronting commitments
0.225% 
 
Letters Of Credit, Surety Bonds And Bank Guarantees [Member] |
Credit Agreement [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Letters of credit, outstanding amount
$ 119,000,000 
 
Income Per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Basic weighted average common shares outstanding
142 
145 
Stock options and restricted shares
0 
0 
Diluted weighted average common shares outstanding
142 
145 
Debt And Other Credit Facilities (Consolidated amount of non-recourse project-finance debt of a VIE) (Details)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Mar. 31, 2016
Class A 3.5% Index Linked Bonds [Member]
Mar. 31, 2016
Class B 5.9% Fixed Rate Bonds [Member]
Mar. 31, 2016
Minimum [Member]
Mar. 31, 2016
Maximum [Member]
Mar. 31, 2016
United Kingdom, Pounds
Class A 3.5% Index Linked Bonds [Member]
GBP (£)
Mar. 31, 2016
United Kingdom, Pounds
Class B 5.9% Fixed Rate Bonds [Member]
GBP (£)
Mar. 31, 2016
United States of America, Dollars
Class A 3.5% Index Linked Bonds [Member]
USD ($)
Mar. 31, 2016
United States of America, Dollars
Class B 5.9% Fixed Rate Bonds [Member]
USD ($)
Mar. 31, 2016
Nonrecourse Project Finance Debt [Member]
Mar. 31, 2016
Nonrecourse Project Finance Debt [Member]
United Kingdom, Pounds
GBP (£)
Mar. 31, 2016
Fasttrax Limited Project [Member]
Nonrecourse Project Finance Debt [Member]
United States of America, Dollars
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
Number Of Heavy Equipment Transporters
 
 
 
 
 
 
 
 
 
 
91 
 
 
Number Of Heavy Equipment Transporters Term Period
 
 
 
 
 
 
 
 
 
 
22 years 
 
 
Nonrecourse project debt
$ 50.0 
$ 51.0 
 
 
 
 
 
£ 84.9 
 
 
 
 
$ 120.0 
Non Recourse Debt Bridge Financing
 
 
 
 
 
 
 
 
 
 
 
12.2 
17.0 
Guaranteed secured bonds, percentage
 
 
3.50% 
5.90% 
 
 
 
 
 
 
 
 
 
Secured bonds
 
 
 
 
 
 
£ 56.0 
£ 16.7 
$ 79.0 
$ 24.0 
 
 
 
Subordinated notes payable, interest rate
 
 
 
 
11.25% 
16.00% 
 
 
 
 
 
 
 
Income Per Share (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted
$ 0.3 
$ 0.3 
Antidilutive weighted average shares
3.3 
3.5 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate on income from operations
25.00% 
27.00% 
 
Effective income tax rate, estimated
25.00% 
 
 
U.S. statutory federal rate, expected (benefit) provision
35.00% 
 
 
Noncontrolling interests
(9.00%)
 
 
Deferred Tax Assets, Valuation Allowance
$ 542 
 
$ 542 
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount
 
1 
 
Liability for Uncertain Tax Positions, Noncurrent
258 
 
257 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
 
Unrecognized Tax Benefits, Period Increase (Decrease)
$ 1 
$ (1)
 
U.S. Government Matters (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2016
Audits [Member]
Mar. 31, 2016
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member]
Dec. 31, 2015
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member]
Apr. 30, 2008
First Kuwaiti Trading Company Arbitration [Member]
Mar. 31, 2016
First Kuwaiti Trading Company Arbitration [Member]
Dec. 31, 2014
First Kuwaiti Trading Company Arbitration [Member]
Mar. 31, 2016
Burn Pit Litigation [Member]
lawsuits
Mar. 31, 2016
Sodium Dichromate Litigation [Member]
lawsuits
Dec. 31, 2009
Sodium Dichromate Litigation [Member]
lawsuits
Mar. 31, 2016
qui tams [Member]
claim
lawsuits
Mar. 27, 2011
Howard qui tam [Member]
Mar. 31, 2016
DOJFCA [Member]
defendent
Mar. 31, 2016
Pay-When-Paid Terms [Member]
First Kuwaiti Trading Company Arbitration [Member]
Mar. 31, 2016
Legal fees incurred after claim [Domain]
Sodium Dichromate Litigation [Member]
United States Government Contract Work [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract, Direct Claim
$ 1,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract, Indirect Claim
78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract Termination Claims, US Federal Government
 
 
 
 
 
 
 
 
30 
 
 
 
 
 
4 
Loss Contingency, Estimate of Possible Loss
 
 
 
 
 
 
 
 
 
 
 
628 
 
 
 
DisallowanceRate
 
99.90% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Doubtful Accounts Receivable
 
 
48 
50 
 
 
 
 
 
 
 
 
 
 
 
Total judgment on Sodium Dichromate
 
 
 
 
134 
 
 
 
 
 
 
 
 
 
 
AmountOwedToSubcontractor
 
 
 
 
 
32 
 
 
 
 
 
 
 
 
 
PaymentsOnContractWork
 
 
 
 
 
26 
19 
 
 
 
 
 
 
4 
 
Loss Contingency, Pending Claims, Number
 
 
 
 
 
 
 
60 
2 
5 
5 
 
 
 
 
Loss Contingency, Number of Active Claims
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
qui tam government joined
 
 
 
 
 
 
 
 
 
 
1 
 
 
 
 
Legal Fees
 
 
 
 
 
 
 
 
 
 
11 
 
 
 
 
Loss Contingency, Number of Defendants
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
 
Damages awarded, value
 
 
 
 
 
$ 17 
 
 
 
 
 
 
 
 
 
Other Commitments And Contingencies (Other) (Narrative) (Details) (Pemex [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Dec. 31, 2009
Dec. 31, 2013
Dec. 31, 2004
Pemex [Member]
 
 
 
Loss Contingencies [Line Items]
 
 
 
Outstanding performance bonds by enterprise
 
$ 80 
 
Payment on performance bonds
 
108 
 
Customer's arbitration claim
 
 
157 
Amount of arbitration claim filed by enterprise
 
 
323 
Amount awarded to enterprise in arbitration
351 
 
 
Amount of counterclaims awarded to project owner in arbitration
6 
 
 
Gain recognized
117 
 
 
Amount of judgment awarded to enterprise
 
465 
 
Performance Bond Recovery Including Interest
 
26 
 
PaymentOnPerformanceBondsOther
 
$ 2 
 
Shareholders' Equity (Shareholders' Equity Activities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Shareholders Equity [Line Items]
 
 
Beginning Balance
$ 1,052 
$ 935 
Acquisition of noncontrolling interest
 
(40)
Share-based compensation
6 
5 
Common stock issued upon exercise of stock options
 
1 
Tax benefit increase related to share-based plans
1 
 
Dividends declared to shareholders
(11)
(12)
Repurchases of common stock
(2)
(16)
Issuance of ESPP shares
1 
1 
Distributions to noncontrolling interests
(6)
(7)
Net income (loss)
45 
51 
Other comprehensive income (loss), net of tax
22 
(46)
Ending Balance
1,108 
872 
Additional Paid-in Capital [Member]
 
 
Shareholders Equity [Line Items]
 
 
Beginning Balance
2,070 
2,091 
Acquisition of noncontrolling interest
 
(40)
Share-based compensation
6 
5 
Common stock issued upon exercise of stock options
 
1 
Tax benefit increase related to share-based plans
1 
 
Dividends declared to shareholders
0 
0 
Repurchases of common stock
0 
0 
Issuance of ESPP shares
(1)
(1)
Distributions to noncontrolling interests
0 
0 
Net income (loss)
0 
0 
Other comprehensive income (loss), net of tax
0 
0 
Ending Balance
2,076 
2,056 
Retained Earnings [Member]
 
 
Shareholders Equity [Line Items]
 
 
Beginning Balance
595 
439 
Acquisition of noncontrolling interest
 
0 
Share-based compensation
0 
0 
Common stock issued upon exercise of stock options
 
0 
Tax benefit increase related to share-based plans
0 
 
Dividends declared to shareholders
(11)
(12)
Repurchases of common stock
0 
0 
Issuance of ESPP shares
0 
0 
Distributions to noncontrolling interests
0 
0 
Net income (loss)
42 
44 
Other comprehensive income (loss), net of tax
0 
0 
Ending Balance
626 
471 
Treasury Stock [Member]
 
 
Shareholders Equity [Line Items]
 
 
Beginning Balance
(769)
(712)
Acquisition of noncontrolling interest
 
0 
Share-based compensation
0 
0 
Common stock issued upon exercise of stock options
 
0 
Tax benefit increase related to share-based plans
0 
 
Dividends declared to shareholders
0 
0 
Repurchases of common stock
(2)
(16)
Issuance of ESPP shares
2 
2 
Distributions to noncontrolling interests
0 
0 
Net income (loss)
0 
0 
Other comprehensive income (loss), net of tax
0 
0 
Ending Balance
(769)
(726)
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
Shareholders Equity [Line Items]
 
 
Beginning Balance
(831)
(876)
Acquisition of noncontrolling interest
 
0 
Share-based compensation
0 
0 
Common stock issued upon exercise of stock options
 
0 
Tax benefit increase related to share-based plans
0 
 
Dividends declared to shareholders
0 
0 
Repurchases of common stock
0 
0 
Issuance of ESPP shares
0 
0 
Distributions to noncontrolling interests
0 
0 
Net income (loss)
0 
0 
Other comprehensive income (loss), net of tax
23 
(46)
Ending Balance
(808)
(922)
Noncontrolling Interests [Member]
 
 
Shareholders Equity [Line Items]
 
 
Beginning Balance
(13)
(7)
Acquisition of noncontrolling interest
 
0 
Share-based compensation
0 
0 
Common stock issued upon exercise of stock options
 
0 
Tax benefit increase related to share-based plans
0 
 
Dividends declared to shareholders
0 
0 
Repurchases of common stock
0 
0 
Issuance of ESPP shares
0 
0 
Distributions to noncontrolling interests
(6)
(7)
Net income (loss)
3 
7 
Other comprehensive income (loss), net of tax
(1)
0 
Ending Balance
$ (17)
$ (7)
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Accumulated changes in fair value of derivatives tax
$ 0 
$ 0 
Accumulated foreign currency translation adjustments tax
3 
3 
Accumulated pension and post-retirement benefit plans tax
207 
230 
Beginning balance
(831)
(876)
Other comprehensive income adjustments before reclassifications
17 
(58)
Amounts reclassified from accumulated other comprehensive income
6 
12 
Ending balance
(808)
(922)
Accumulated foreign currency translation adjustments, net of tax of $3 and $3
(252)
(261)
Pension and post-retirement benefits, net of tax of $207 and $230
(554)
(658)
Fair value of derivatives, net of tax of $0 and $0
(2)
(3)
Total accumulated other comprehensive loss
(808)
(922)
Accumulated foreign currency translation adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(269)
(203)
Other comprehensive income adjustments before reclassifications
17 
(58)
Amounts reclassified from accumulated other comprehensive income
0 
0 
Ending balance
(252)
(261)
Total accumulated other comprehensive loss
(252)
(261)
Accumulated pension liability adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(560)
(670)
Other comprehensive income adjustments before reclassifications
0 
0 
Amounts reclassified from accumulated other comprehensive income
6 
12 
Ending balance
(554)
(658)
Total accumulated other comprehensive loss
(554)
(658)
Changes in fair value of derivatives
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(2)
(3)
Other comprehensive income adjustments before reclassifications
0 
0 
Amounts reclassified from accumulated other comprehensive income
0 
0 
Ending balance
(2)
(3)
Total accumulated other comprehensive loss
$ (2)
$ (3)
Shareholders' Equity (Reclassification out of AOCI) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Amortization of actuarial loss
$ 60 
$ 70 
Tax benefit
(15)
(19)
Accumulated pension liability adjustments |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Amortization of actuarial loss
(7)
(14)
Tax benefit
1 
2 
Net pension and post-retirement benefits
$ (6)
$ (12)
Share Repurchases (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Feb. 25, 2014
Equity, Class of Treasury Stock [Line Items]
 
 
 
Number of shares repurchased under the authorization
118,036 
1,071,690 
 
Treasury Stock Acquired, Average Cost Per Share
$ 13.81 
$ 15.38 
 
Stock Repurchased During Period, Value
$ 2 
$ 16 
 
Share Repurchase Program Twenty Fourteen [Member]
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
Stock Repurchase Program, Authorized Amount
 
 
350 
Number of shares repurchased under the authorization
0 
604,032 
 
Treasury Stock Acquired, Average Cost Per Share
$ 0.00 
$ 15.14 
 
Stock Repurchased During Period, Value
0 
9 
 
Share Maintenance Plan [Member]
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
Number of shares repurchased under the authorization
0 
359,382 
 
Treasury Stock Acquired, Average Cost Per Share
$ 0.00 
$ 15.49 
 
Stock Repurchased During Period, Value
0 
5 
 
Shares Withheld to Cover [Member]
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
Number of shares repurchased under the authorization
118,036 
108,276 
 
Treasury Stock Acquired, Average Cost Per Share
$ 13.81 
$ 16.34 
 
Stock Repurchased During Period, Value
$ 2 
$ 2 
 
Financial Instruments And Risk Management Financial Instruments And Risk Management (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Interest Rate Derivatives, at Fair Value, Net
$ (2)
$ (40)
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge
6 
50 
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net
4 
10 
Maximum length of time hedged in balance sheet hedge
8 days 
 
Maximum Length of Time Hedged in Cash Flow Hedge
21 months 
 
Balance Sheet Hedge [Member]
 
 
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Derivative, Notional Amount
88 
 
Cash Flow Hedging [Member]
 
 
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Cash flow hedge
$ 21