Company Quick10K Filing
KBR
Price25.32 EPS1
Shares142 P/E18
MCap3,595 P/FCF18
Net Debt531 EBIT333
TEV4,126 TEV/EBIT12
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-04
10-K 2019-12-31 Filed 2020-02-24
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-10-30
10-Q 2018-06-30 Filed 2018-07-30
10-Q 2018-03-31 Filed 2018-04-27
10-K 2017-12-31 Filed 2018-02-23
10-Q 2017-09-30 Filed 2017-10-31
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-04-28
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-09-30 Filed 2016-11-01
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-04-29
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-11-02
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-04-29
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-07-31
10-Q 2014-03-31 Filed 2014-06-19
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-10-24
10-Q 2013-06-30 Filed 2013-07-25
10-Q 2013-03-31 Filed 2013-04-25
10-K 2012-12-31 Filed 2013-02-20
10-Q 2012-09-30 Filed 2012-10-24
10-Q 2012-06-30 Filed 2012-07-25
10-Q 2012-03-31 Filed 2012-04-25
10-K 2011-12-31 Filed 2012-02-22
10-Q 2011-09-30 Filed 2011-10-26
10-Q 2011-06-30 Filed 2011-07-27
10-Q 2011-03-31 Filed 2011-04-27
10-K 2010-12-31 Filed 2011-02-23
10-Q 2010-09-30 Filed 2010-10-28
10-Q 2010-06-30 Filed 2010-07-29
10-Q 2010-03-31 Filed 2010-04-29
10-K 2009-12-31 Filed 2010-02-25
8-K 2020-05-13
8-K 2020-04-29
8-K 2020-04-09
8-K 2020-03-26
8-K 2020-02-24
8-K 2020-02-20
8-K 2020-02-07
8-K 2019-10-30
8-K 2019-07-30
8-K 2019-05-15
8-K 2019-04-30
8-K 2019-03-05
8-K 2019-02-25
8-K 2018-11-12
8-K 2018-11-12
8-K 2018-10-30
8-K 2018-10-30
8-K 2018-07-27
8-K 2018-05-16
8-K 2018-04-25
8-K 2018-04-25
8-K 2018-03-19
8-K 2018-03-14
8-K 2018-02-22
8-K 2018-02-08

KBR 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Information
Note 1. Basis of Presentation
Note 2. Business Segment Information
Note 3. Revenue
Note 4. Acquisitions
Note 5. Claims and Accounts Receivable
Note 6. Unapproved Change Orders, and Claims, Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors
Note 7. Restructuring Charges and Asset Impairments
Note 8. Goodwill and Goodwill Impairment
Note 9. Equity Method Investments and Variable Interest Entities
Note 10. Retirement Benefits
Note 11. Debt and Other Credit Facilities
Note 12. Income Taxes
Note 13. U.S. Government Matters
Note 14. Other Commitments and Contingencies
Note 15. Leases
Note 16. Accumulated Other Comprehensive Loss
Note 17. Share Repurchases
Note 18. Income (Loss) per Share
Note 19. Fair Value of Financial Instruments and Risk Management
Note 20. Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.1 kbr-ex101xrsuagreement.htm
EX-10.2 kbr-ex102xrsuagreement.htm
EX-10.3 kbr-ex103xpsuagreement.htm
EX-10.4 kbr-ex104xpsuagreement.htm
EX-10.5 kbr-ex105xperformancea.htm
EX-10.6 kbr-ex106xperformancea.htm
EX-10.7 kbr-ex107xkbrseniorexe.htm
EX-10.8 kbr-ex108xkbrmanagemen.htm
EX-31.1 kbr-ex311x0331202010xq.htm
EX-31.2 kbr-ex312x0331202010xq.htm
EX-32.1 kbr-ex321x0331202010xq.htm
EX-32.2 kbr-ex322x0331202010xq.htm

KBR Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
2.01.30.70.0-0.6-1.32012201420172020
Rev, G Profit, Net Income
0.70.40.1-0.3-0.6-0.92012201420172020
Ops, Inv, Fin

Document
false--12-31Q12020000135761530000002000000P1Y2900000026000000386000000388000000410000001400000090000000.100.0010.0013000000003000000001783302011788790991418191481422922950.0650P4Y570000001840000001900000000.0010.001500000005000000000P4Y36511053365868040.30 0001357615 2020-01-01 2020-03-31 0001357615 2020-04-22 0001357615 2019-01-01 2019-03-31 0001357615 2020-03-31 0001357615 2019-12-31 0001357615 us-gaap:RetainedEarningsMember 2019-03-31 0001357615 us-gaap:AccountingStandardsUpdate201409Member 2019-01-01 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001357615 us-gaap:TreasuryStockMember 2018-12-31 0001357615 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001357615 us-gaap:TreasuryStockMember 2019-12-31 0001357615 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001357615 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001357615 us-gaap:NoncontrollingInterestMember 2020-03-31 0001357615 us-gaap:RetainedEarningsMember 2020-01-01 0001357615 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001357615 us-gaap:NoncontrollingInterestMember 2019-12-31 0001357615 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001357615 us-gaap:NoncontrollingInterestMember 2019-03-31 0001357615 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 0001357615 us-gaap:NoncontrollingInterestMember 2018-12-31 0001357615 2020-01-01 0001357615 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001357615 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0001357615 us-gaap:RetainedEarningsMember 2019-12-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001357615 us-gaap:RetainedEarningsMember 2019-01-01 0001357615 2018-12-31 0001357615 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001357615 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001357615 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-01-01 0001357615 us-gaap:TreasuryStockMember 2019-01-01 0001357615 us-gaap:TreasuryStockMember 2020-01-01 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001357615 2019-03-31 0001357615 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001357615 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-01-01 0001357615 2019-01-01 0001357615 us-gaap:RetainedEarningsMember 2018-12-31 0001357615 us-gaap:TreasuryStockMember 2019-03-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001357615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 0001357615 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 0001357615 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0001357615 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001357615 us-gaap:RetainedEarningsMember 2020-03-31 0001357615 us-gaap:NoncontrollingInterestMember 2020-01-01 0001357615 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 0001357615 us-gaap:AccountingStandardsUpdate201613Member 2020-01-01 0001357615 us-gaap:NoncontrollingInterestMember 2019-01-01 0001357615 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2019-01-01 0001357615 us-gaap:TreasuryStockMember 2020-03-31 0001357615 2019-09-30 0001357615 us-gaap:AccountingStandardsUpdate201613Member 2020-01-01 2020-01-01 0001357615 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 kbr:OperatingSegmentsAndCorporateNonSegmentMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 kbr:OperatingSegmentsAndCorporateNonSegmentMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:TimeAndMaterialsContractMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:TimeAndMaterialsContractMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:FixedPriceContractMember 2020-01-01 2020-03-31 0001357615 us-gaap:TimeAndMaterialsContractMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:FixedPriceContractMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:TimeAndMaterialsContractMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:FixedPriceContractMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:FixedPriceContractMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:TimeAndMaterialsContractMember 2020-01-01 2020-03-31 0001357615 kbr:RetainageMember 2019-12-31 0001357615 kbr:RetainageMember 2020-03-31 0001357615 us-gaap:TradeAccountsReceivableMember 2019-12-31 0001357615 us-gaap:TradeAccountsReceivableMember 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 country:AU 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:MiddleEastMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 kbr:OtherCountriesMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 country:CA 2019-01-01 2019-03-31 0001357615 srt:AsiaMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:CA 2020-01-01 2020-03-31 0001357615 kbr:OtherCountriesMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember us-gaap:MiddleEastMember 2020-01-01 2020-03-31 0001357615 srt:EuropeMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:EuropeMember 2020-01-01 2020-03-31 0001357615 srt:AsiaMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember kbr:OtherCountriesMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 srt:AfricaMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:AfricaMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 srt:EuropeMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:CA 2019-01-01 2019-03-31 0001357615 country:US 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:US 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:AfricaMember 2019-01-01 2019-03-31 0001357615 us-gaap:MiddleEastMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:US 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember kbr:OtherCountriesMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 srt:AfricaMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:TechnologySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:AU 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 country:US 2020-01-01 2020-03-31 0001357615 us-gaap:MiddleEastMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember country:AU 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AfricaMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:CA kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:OtherCountriesMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 country:CA 2020-01-01 2020-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:AsiaMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:AsiaMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 country:AU 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:AsiaMember kbr:EnergySolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember us-gaap:MiddleEastMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:US kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember srt:EuropeMember kbr:EnergySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:OperatingSegmentsMember country:AU kbr:TechnologySolutionsMember 2019-01-01 2019-03-31 0001357615 us-gaap:MaterialReconcilingItemsMember srt:EuropeMember 2019-01-01 2019-03-31 0001357615 2020-04-01 2020-03-31 0001357615 2025-04-01 2020-03-31 0001357615 kbr:KeyU.S.GovernmentCustomersMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 kbr:NonU.S.GovernmentCustomersMember kbr:GovernmentSolutionsMember 2020-01-01 2020-03-31 0001357615 2021-04-01 2020-03-31 0001357615 kbr:KeyU.S.GovernmentCustomersMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 kbr:NonU.S.GovernmentCustomersMember kbr:GovernmentSolutionsMember 2019-01-01 2019-03-31 0001357615 kbr:ScientificManagementAssociatesMember 2020-03-06 2020-03-06 0001357615 kbr:ScientificManagementAssociatesMember 2020-03-13 2020-03-13 0001357615 kbr:ScientificManagementAssociatesMember 2020-03-06 0001357615 kbr:AllDefenseContractAuditAgencyAuditIssuesMember 2020-03-31 0001357615 kbr:AllDefenseContractAuditAgencyAuditIssuesMember 2019-12-31 0001357615 kbr:JKCJointVentureMember kbr:LegalActionAgainstTheConsortiumForCombinedCyclePowerPlantMember us-gaap:SettledLitigationMember 2018-04-01 2018-04-30 0001357615 kbr:IchthysLNGProjectMember 2020-01-01 2020-03-31 0001357615 kbr:CostReimbursableMember 2020-01-01 2020-03-31 0001357615 kbr:CostReimbursableMember 2019-01-01 2019-12-31 0001357615 kbr:JKCJointVentureMember 2020-01-01 2020-03-31 0001357615 kbr:IchthysLNGProjectMember 2020-03-31 0001357615 kbr:IchthysLNGProjectMember 2019-01-01 2019-03-31 0001357615 us-gaap:EmployeeSeveranceMember 2019-12-31 0001357615 us-gaap:EmployeeSeveranceMember 2020-01-01 2020-03-31 0001357615 us-gaap:ContractTerminationMember 2020-01-01 2020-03-31 0001357615 us-gaap:EmployeeSeveranceMember 2020-03-31 0001357615 us-gaap:ContractTerminationMember 2020-03-31 0001357615 us-gaap:ContractTerminationMember 2019-12-31 0001357615 kbr:EbicAmmoniaProjectMember 2020-01-01 2020-03-31 0001357615 kbr:LatinAmericaJointVentureMember 2020-03-31 0001357615 us-gaap:OtherNoncurrentLiabilitiesMember 2020-03-31 0001357615 kbr:LatinAmericaJointVentureMember 2020-01-01 2020-03-31 0001357615 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-03-31 0001357615 us-gaap:OtherCurrentLiabilitiesMember 2020-03-31 0001357615 kbr:LeaseholdImprovementsAndFurnitureAndFixturesMember 2020-01-01 2020-03-31 0001357615 us-gaap:TrademarksAndTradeNamesMember 2020-01-01 2020-03-31 0001357615 kbr:EbicAmmoniaProjectMember 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:EnergySolutionsMember 2019-12-31 0001357615 us-gaap:OperatingSegmentsMember kbr:TechnologySolutionsMember 2019-12-31 0001357615 us-gaap:OperatingSegmentsMember kbr:EnergySolutionsMember 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:GovernmentSolutionsMember 2020-03-31 0001357615 us-gaap:OperatingSegmentsMember kbr:GovernmentSolutionsMember 2019-12-31 0001357615 us-gaap:OperatingSegmentsMember kbr:TechnologySolutionsMember 2020-03-31 0001357615 us-gaap:AccountingStandardsUpdate201409Member us-gaap:EquityMethodInvestmentsMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 0001357615 kbr:LatinAmericaJointVentureMember us-gaap:EquityMethodInvestmentsMember 2020-01-01 2020-03-31 0001357615 us-gaap:EquityMethodInvestmentsMember 2019-01-01 2019-12-31 0001357615 kbr:TransactionswithRelatedPartiesMember 2019-01-01 2019-03-31 0001357615 kbr:TransactionswithRelatedPartiesMember 2020-01-01 2020-03-31 0001357615 kbr:EbicAmmoniaProjectMember us-gaap:EquityMethodInvestmentsMember 2020-01-01 2020-03-31 0001357615 kbr:AffinityProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001357615 kbr:UKRoadProjectsMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001357615 kbr:IchthysLNGProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001357615 kbr:EbicAmmoniaProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001357615 kbr:AspireDefenceProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001357615 kbr:AffinityProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001357615 kbr:UKRoadProjectsMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001357615 kbr:EbicAmmoniaProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001357615 kbr:AspireDefenceProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001357615 kbr:IchthysLNGProjectMember us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001357615 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember kbr:AspireDefenceProjectMember 2020-03-31 0001357615 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember kbr:FasttraxLimitedProjectMember 2020-03-31 0001357615 us-gaap:EquityMethodInvestmentsMember 2020-03-31 0001357615 us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001357615 us-gaap:EquityMethodInvestmentsMember 2018-01-01 0001357615 us-gaap:EquityMethodInvestmentsMember 2020-01-01 2020-03-31 0001357615 us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001357615 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember kbr:AspireDefenceProjectMember 2019-12-31 0001357615 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember kbr:FasttraxLimitedProjectMember 2019-12-31 0001357615 kbr:TransactionswithRelatedPartiesMember 2020-03-31 0001357615 kbr:TransactionswithRelatedPartiesMember 2019-12-31 0001357615 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-03-31 0001357615 country:US us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-03-31 0001357615 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-03-31 0001357615 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-03-31 0001357615 us-gaap:PensionPlansDefinedBenefitMember 2020-03-31 0001357615 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-03-31 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2020-03-31 0001357615 us-gaap:LetterOfCreditMember kbr:UncommittedLineOfCreditMember us-gaap:LineOfCreditMember 2020-03-31 0001357615 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2020-03-31 0001357615 kbr:NonrecourseProjectFinanceDebtMember 2020-03-31 0001357615 srt:MaximumMember kbr:DelayedDrawTermLoanAMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 kbr:ClassThreePointFivePercentageIndexLinkedBondsMember 2020-03-31 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2018-11-15 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2020-01-01 2020-03-31 0001357615 kbr:LettersOfCreditSuretyBondsAndBankGuaranteesMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001357615 currency:GBP kbr:ClassThreePointFivePercentageIndexLinkedBondsMember 2020-03-31 0001357615 kbr:NonrecourseProjectFinanceDebtMember 2020-01-01 2020-03-31 0001357615 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-03-31 0001357615 us-gaap:LetterOfCreditMember 2020-02-07 0001357615 srt:MinimumMember 2020-01-01 2020-03-31 0001357615 kbr:ClassBFivePointNinePercentageFixedRateBondsMember 2020-03-31 0001357615 us-gaap:RevolvingCreditFacilityMember 2020-02-07 0001357615 us-gaap:LetterOfCreditMember kbr:CommittedLineOfCreditMemberMember us-gaap:LineOfCreditMember 2020-03-31 0001357615 srt:ScenarioForecastMember kbr:DelayedDrawTermLoanBMember us-gaap:SecuredDebtMember 2020-06-30 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 srt:ScenarioForecastMember kbr:DelayedDrawTermLoanAMember 2022-06-30 0001357615 srt:ScenarioForecastMember kbr:DelayedDrawTermLoanAMember 2020-06-30 0001357615 currency:GBP kbr:ClassBFivePointNinePercentageFixedRateBondsMember 2020-03-31 0001357615 srt:MaximumMember 2020-01-01 2020-03-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:SecuredDebtMember 2020-02-07 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:SecuredDebtMember 2020-02-07 0001357615 kbr:ConsolidatedLeverageRatioGreaterthanor4.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan2.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan4.00to1.00butgreaterthanorequalto3.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan4.00to1.00butgreaterthanorequalto3.00to1.00Member 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioGreaterthanor4.00to1.00Member 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioGreaterthanor4.00to1.00Member us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan2.00to1.00Member us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan3.00to1.00butGreaterthantoequalto2.00to1.00Member us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan3.00to1.00butGreaterthantoequalto2.00to1.00Member 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan4.00to1.00butgreaterthanorequalto3.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan3.00to1.00butGreaterthantoequalto2.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan3.00to1.00butGreaterthantoequalto2.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan2.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan4.00to1.00butgreaterthanorequalto3.00to1.00Member us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioLessthan2.00to1.00Member 2020-01-01 2020-03-31 0001357615 kbr:ConsolidatedLeverageRatioGreaterthanor4.00to1.00Member kbr:LineofCreditandSecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001357615 us-gaap:ConvertibleDebtMember 2019-12-31 0001357615 us-gaap:ConvertibleDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2019-01-01 2019-03-31 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2019-03-31 0001357615 kbr:NotesDue2023Member us-gaap:ConvertibleDebtMember 2019-12-31 0001357615 srt:ProFormaMember 2020-01-01 2020-03-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember 2020-03-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember us-gaap:OtherLiabilitiesMember 2019-12-31 0001357615 kbr:DOJFCAMember 2014-01-01 2014-01-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember kbr:ContractLiabilitiesMember 2020-03-31 0001357615 kbr:FirstKuwaitiTradingCompanyArbitrationMember 2020-03-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember us-gaap:OtherLiabilitiesMember 2020-03-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember kbr:ContractLiabilitiesMember 2019-12-31 0001357615 kbr:FirstKuwaitiTradingCompanyArbitrationMember 2020-01-01 2020-03-31 0001357615 kbr:AllDefenseContractAuditAgencyAuditIssuesMember 2020-01-01 2020-03-31 0001357615 kbr:HowardquitamMember 2020-03-31 0001357615 kbr:HowardquitamMember 2011-03-31 0001357615 kbr:FirstKuwaitiTradingCompanyArbitrationMember kbr:PayWhenPaidTermsMember us-gaap:OtherCurrentLiabilitiesMember 2020-01-01 2020-03-31 0001357615 kbr:ReserveForPotentiallyDisallowableCostsIncurredUnderGovernmentContractsMember 2019-12-31 0001357615 kbr:ChadianEmployeeClassActionMember 2018-05-01 2018-05-31 0001357615 kbr:ChadianEmployeeClassActionMember 2019-03-01 2019-03-31 0001357615 kbr:NorthWestRailLinkProjectMember 2018-11-01 2020-03-31 0001357615 kbr:ChadianEmployeeClassActionMember kbr:ProvisionalAwardMember 2019-03-01 2019-03-31 0001357615 kbr:NorthWestRailLinkProjectMember 2020-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001357615 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-01-01 2020-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001357615 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0001357615 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 0001357615 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001357615 2020-02-19 0001357615 2014-02-25 0001357615 us-gaap:InterestRateSwapMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-10-10 0001357615 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember 2020-03-31 0001357615 us-gaap:InterestRateSwapMember 2019-01-01 2019-12-31 0001357615 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember 2019-12-31 0001357615 us-gaap:CashFlowHedgingMember 2020-03-31 0001357615 us-gaap:InterestRateSwapMember 2018-10-10 0001357615 us-gaap:InterestRateSwapMember 2020-01-01 2020-03-31 0001357615 kbr:EnergySolutionsAndTechnologySolutionsMember 2020-03-31 0001357615 us-gaap:InterestRateSwapMember 2019-12-31 0001357615 kbr:BalanceSheetHedgeMember 2020-03-31 0001357615 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateSwapMember 2019-12-31 0001357615 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateSwapMember 2020-03-31 0001357615 us-gaap:InterestRateSwapMember 2020-03-31 0001357615 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-12-31 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-12-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanBMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2020-03-31 0001357615 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2020-03-31 0001357615 kbr:DelayedDrawTermLoanAMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember 2019-12-31 0001357615 us-gaap:InterestRateSwapMember 2018-10-10 2018-10-10 xbrli:shares xbrli:pure kbr:contract kbr:transporter iso4217:GBP iso4217:USD kbr:segment iso4217:USD xbrli:shares kbr:renewal_option kbr:subcontractor kbr:defendent iso4217:AUD


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2020
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from             to
Commission File Number: 001-33146
 
 
 
kbrlogofinal2019.jpg
KBR, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
20-4536774
(State of incorporation)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
601 Jefferson Street, Suite 3400
Houston
Texas
 
77002
(Address of principal executive offices)
 
(Zip Code)

(713) 753-2000
(Registrant's telephone number including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which listed
Common Stock, $0.001 par value
KBR
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
 
Accelerated filer
 
Non-accelerated filer
 
 (Do not check if a smaller reporting company)
Smaller reporting company
 
 
 
 
Emerging growth company
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of April 22, 2020, there were 142,296,911 shares of KBR, Inc. Common Stock, par value $0.001 per share, outstanding.
 





TABLE OF CONTENTS
 



2



Forward-Looking and Cautionary Statements

This Quarterly Report on Form 10-Q contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Some of the statements contained in this Quarterly Report on Form 10-Q are forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "plan," "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future financial performance and results of operations.

We have based these statements on our assumptions and analyses in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. While it is not possible to identify all factors, factors that could cause actual future results to differ materially include:

the severity and duration of world health events, including the recent outbreak of the novel coronavirus ("COVID-19") pandemic, related economic repercussions and the resulting server disruption in the oil and gas industry and negative impact on demand for oil and gas;

the current significant surplus in the supply of oil and actions by the members of OPIC+ (as defined below) with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with supply limitations;

operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being four employees, remote work arrangements, performance of contracts and supply chain disruptions;

the level of capital spending and access to capital markets by oil and gas companies, including significant recent reductions and potential additional reductions in capital expenditures by oil and gas producers in response to commodity prices and dramatically reduced demand; and         

potential shut-ins of production by producers due to lack of downstream demand or storage capacity.

Many of these factors are beyond our ability to control or predict. Any of these factors, as well as the risks and uncertainties disclosed in our 2019 Annual Report on Form 10-K contained in Part I under "Risk Factors", this Quarterly Report on Form 10-Q contained in Part II under "Risk Factors", and the risk factors and other cautionary statements contained in our other filings with the SEC, or a combination of these factors, could materially and adversely affect our future financial condition or results of operations and the ultimate accuracy of the forward-looking statements. These forward-looking statements are not guarantees of our future performance, and our actual results and future developments may differ materially and adversely from those projected in the forward-looking statements. We caution against putting undue reliance on forward-looking statements or projecting any future results based on such statements or on present or prior earnings levels. In addition, each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statement.


3



Glossary of Terms

The following frequently used terms, abbreviations or acronyms are used in this Quarterly Report on Form 10-Q as defined below:
Acronym
 
Definition
AFCAP
 
Air Force Contract Augmentation Program
Affinity
 
Affinity Flying Training Services Ltd.
AOCL
 
Accumulated other comprehensive loss
ASBCA
 
Armed Services Board of Contract Appeals
ASC
 
Accounting Standards Codification
ASU
 
Accounting Standards Update
Carillion
 
Carillion plc
CAS
 
Cost Accounting Standards for U.S. government contracts
COFC
 
U.S. Court of Federal Claims
DCAA
 
Defense Contract Audit Agency
DCMA
 
Defense Contract Management Agency
DoD
 
Department of Defense
DOJ
 
U.S. Department of Justice
EBIC
 
Egypt Basic Industries Corporation
EPC
 
Engineering, procurement and construction
ES
 
Energy Solutions
ESPP
 
Employee Stock Purchase Plan
Exchange Act
 
Securities Exchange Act of 1934, as amended
FAR
 
Federal Acquisition Regulation
FASB
 
Financial Accounting Standards Board
FCA
 
False Claims Act
FKTC
 
First Kuwaiti Trading Company
FLNG
 
Floating liquefied natural gas
FPSO
 
Floating production, storage and offshore
FPUs
 
Floating production units
FSRU
 
Floating storage and regasification unit
GS
 
Government Solutions
GTL
 
Gas to liquids
HETs
 
Heavy equipment transporters
IT
 
Information and Technology
JKC
 
JKC Australia LNG, an Australian joint venture executing the Ichthys LNG Project
LIBOR
 
London interbank offered rate
LNG
 
Liquefied natural gas
MD&A
 
Management's Discussion and Analysis of Financial Condition and Results of Operations
MFRs
 
Memorandums for Record
MoD
 
Ministry of Defence
NCI
 
Noncontrolling interests
PFIs
 
Private financed initiatives and projects
PIC
 
Paid-in capital in excess of par
PLOC
 
Performance Letter of Credit facility
PSC
 
Private Security Contractor

4



Acronym
 
Definition
SEC
 
U.S. Securities and Exchange Commission
SFO
 
U.K. Serious Fraud Office
SGT
 
Stinger Ghaffarian Technologies
SMS
 
Space and Mission Solutions
TS
 
Technology Solutions
U.K.
 
United Kingdom
U.S.
 
United States
U.S. GAAP
 
Accounting principles generally accepted in the United States
VIEs
 
Variable interest entities


5



PART I. FINANCIAL INFORMATION

Item 1. Financial Information

KBR, Inc.
Condensed Consolidated Statements of Operations
(In millions, except for per share data)
(Unaudited)

 
Three Months Ended
 
March 31,
 
2020
 
2019
Revenues
$
1,537

 
$
1,340

Cost of revenues
(1,351
)
 
(1,187
)
Gross profit
186

 
153

Equity in earnings of unconsolidated affiliates
1

 

Selling, general and administrative expenses
(97
)
 
(78
)
Acquisition and integration related costs

 
(1
)
Goodwill impairment
(62
)
 

Restructuring charges and asset impairments
(116
)
 

Gain on disposition of assets and investments
19

 
4

Operating (loss) income
(69
)
 
78

Interest expense
(23
)
 
(25
)
Other non-operating income
7

 
5

(Loss) income before income taxes and noncontrolling interests
(85
)
 
58

Benefit (provision) for income taxes
1

 
(16
)
Net (loss) income
(84
)
 
42

Net income attributable to noncontrolling interests
(20
)
 
(2
)
Net (loss) income attributable to KBR
$
(104
)
 
$
40

Net (loss) income attributable to KBR per share:
 
 
 
Basic
$
(0.73
)
 
$
0.28

Diluted
$
(0.73
)
 
$
0.28

Basic weighted average common shares outstanding
142

 
141

Diluted weighted average common shares outstanding
142

 
141

Cash dividends declared per share
$
0.10

 
$
0.08

See accompanying notes to condensed consolidated financial statements.

6



KBR, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In millions)
(Unaudited)

 
Three Months Ended
 
March 31,
 
2020
 
2019
Net (loss) income
$
(84
)
 
$
42

Other comprehensive (loss) income:
 
 
 
Foreign currency translation adjustments
(82
)
 
(1
)
Pension and post-retirement benefits
6

 
4

Changes in fair value of derivatives
(22
)
 
(2
)
Other comprehensive (loss) income
(98
)
 
1

Income tax (expense) benefit:
 
 
 
Foreign currency translation adjustments

 

Pension and post-retirement benefits
(1
)
 
(1
)
Changes in fair value of derivatives
5

 

Income tax (expense) benefit
4

 
(1
)
Other comprehensive (loss) income, net of tax
(94
)
 

Comprehensive (loss) income
(178
)
 
42

Less: Comprehensive income attributable to noncontrolling interests
(20
)
 
(2
)
Comprehensive income attributable to KBR
$
(198
)
 
$
40

See accompanying notes to condensed consolidated financial statements.


7



KBR, Inc.
Condensed Consolidated Balance Sheets
(In millions, except share data)
 
March 31,
 
December 31,
 
2020
 
2019
 
(Unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and equivalents
$
566

 
$
712

Accounts receivable, net of allowance for credit losses of $9 and $14
1,085

 
938

Contract assets
197

 
215

Other current assets
134

 
146

Total current assets
1,982

 
2,011

Claims and accounts receivable
58

 
59

Property, plant, and equipment, net of accumulated depreciation of $388 and $386 (including net PPE of $26 and $29 owned by a variable interest entity)
120

 
130

Operating lease right-of-use assets
120

 
175

Goodwill
1,210

 
1,265

Intangible assets, net of accumulated amortization of $190 and $184
466

 
495

Equity in and advances to unconsolidated affiliates
759

 
850

Deferred income taxes
249

 
236

Other assets
140

 
143

Total assets
$
5,104

 
$
5,364

Liabilities and Shareholders’ Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
693

 
$
572

Contract liabilities
415

 
484

Accrued salaries, wages and benefits
238

 
209

Nonrecourse project debt
11

 
11

Operating lease liabilities
42

 
39

Other current liabilities
228

 
186

Total current liabilities
1,627

 
1,501

Pension obligations
249

 
277

Employee compensation and benefits
97

 
115

Income tax payable
91

 
92

Deferred income taxes
14

 
16

Nonrecourse project debt
6

 
7

Long-term debt
1,053

 
1,183

Operating lease liabilities
145

 
192

Other liabilities
164

 
124

Total liabilities
3,446

 
3,507

KBR shareholders’ equity:
 
 
 
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued

 

Common stock, $0.001 par value 300,000,000 shares authorized, 178,879,099 and 178,330,201 shares issued, and 142,292,295 and 141,819,148 shares outstanding, respectively

 

PIC
2,210

 
2,206

Retained earnings
1,320

 
1,441

Treasury stock, 36,586,804 shares and 36,511,053 shares, at cost, respectively
(819
)
 
(817
)
AOCL
(1,081
)
 
(987
)
Total KBR shareholders’ equity
1,630

 
1,843

Noncontrolling interests
28

 
14

Total shareholders’ equity
1,658

 
1,857

Total liabilities and shareholders’ equity
$
5,104

 
$
5,364

See accompanying notes to condensed consolidated financial statements.

8



KBR, Inc.
Condensed Consolidated Statements of Shareholders' Equity
(In millions, except for per share data)
(Unaudited)
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2019
$
1,857

 
$
2,206

 
$
1,441

 
$
(817
)
 
$
(987
)
 
$
14

Cumulative adjustment for the adoption of ASC 326
(3
)
 

 
(3
)
 

 

 

Adjusted balance at January 1, 2020
1,854

 
2,206

 
1,438

 
(817
)
 
(987
)
 
14

Share-based compensation
2

 
2

 

 

 

 

Common stock issued upon exercise of stock options
2

 
2

 

 

 

 

Dividends declared to shareholders ($0.10/share)
(14
)
 

 
(14
)
 

 

 

Repurchases of common stock
(4
)
 

 

 
(4
)
 

 

Issuance of ESPP shares
2

 

 

 
2

 

 

Other noncontrolling interests activity
(6
)
 

 

 

 

 
(6
)
Net loss
(84
)
 

 
(104
)
 

 

 
20

Other comprehensive loss, net of tax
(94
)
 

 

 

 
(94
)
 

Balance at March 31, 2020
$
1,658

 
$
2,210

 
$
1,320

 
$
(819
)
 
$
(1,081
)
 
$
28

 
 
 
 
 
 
 
 
 
 
 
 
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2018
$
1,718

 
$
2,190

 
$
1,235

 
$
(817
)
 
$
(910
)
 
$
20

Cumulative adjustment for the adoption of ASC 842
21

 

 
21

 

 

 

Cumulative adjustment for the adoption of ASC 606 for our unconsolidated affiliates
29

 

 
29

 

 

 

Adjusted balance at January 1, 2019
1,768

 
2,190

 
1,285

 
(817
)
 
(910
)
 
20

Share-based compensation
3

 
3

 

 

 

 

Common stock issued upon exercise of stock options
1

 
1

 

 

 

 

Dividends declared to shareholders ($0.08/share)
(11
)
 

 
(11
)
 

 

 

Repurchases of common stock
(3
)
 

 

 
(3
)
 

 

Issuance of ESPP shares
2

 

 

 
2

 

 

Net income
42

 

 
40

 

 

 
2

Other comprehensive loss, net of tax

 

 

 

 

 

Balance at March 31, 2019
$
1,802

 
$
2,194

 
$
1,314

 
$
(818
)
 
$
(910
)
 
$
22

See accompanying notes to condensed consolidated financial statements.



9



KBR, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 
Three Months Ended March 31,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net (loss) income
$
(84
)
 
$
42

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Depreciation and amortization
27

 
25

Equity in earnings of unconsolidated affiliates
(1
)
 

Deferred income tax expense
(10
)
 
3

Gain on disposition of assets and investments
(19
)
 
(4
)
Goodwill impairment
62

 

Asset impairments
64

 

Other
1

 
(4
)
 
 
 
 
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net of allowance for doubtful accounts
(169
)
 
(48
)
Contract assets
15

 
(1
)
Accounts payable
125

 
39

Contract liabilities
(59
)
 
4

Accrued salaries, wages and benefits
31

 
9

Other assets and liabilities
58

 
(17
)
Total cash flows provided by operating activities
$
41

 
$
48

Cash flows from investing activities:
 
 
 
Purchases of property, plant and equipment
$
(2
)
 
$
(2
)
Investments in equity method joint ventures

 
(70
)
Acquisition of businesses, net of cash acquired
(9
)
 

Other

 
3

Total cash flows used in investing activities
$
(11
)
 
$
(69
)
Cash flows from financing activities:
 
 
 
Borrowings on long-term debt
113

 

Payments on short-term and long-term borrowings
(252
)
 
(2
)
Debt issuance costs
(3
)
 

Payments of dividends to shareholders
(11
)
 
(11
)
Net proceeds from issuance of common stock
2

 
1

Payments to reacquire common stock
(4
)
 
(3
)
Other

 
(2
)
Total cash flows used in financing activities
$
(155
)
 
$
(17
)
Effect of exchange rate changes on cash
(21
)
 
7

Decrease in cash and equivalents
(146
)
 
(31
)
Cash and equivalents at beginning of period
712

 
739

Cash and equivalents at end of period
$
566

 
$
708

Noncash financing activities
 
 
 
Dividends declared
$
14

 
$
11


See accompanying notes to condensed consolidated financial statements.

10



KBR, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)


Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by general accepted accounting principles for annual financial statements and should be read together with our 2019 Annual Report on Form 10-K.

The condensed consolidated financial statements include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2020 and the results of our operations for the three months ended March 31, 2020 and 2019, and our cash flows for the three months ended March 31, 2020 and 2019.

Our significant accounting policies are detailed in "Note 1. Significant Accounting Policies" of our 2019 Annual Report on Form 10-K.

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

Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 9 to our condensed consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation.

Business Reorganization and Restructuring Activities

The impact of the recent declines in oil prices, the COVID-19 pandemic and related economic, business and market disruptions is evolving rapidly and its future effects are uncertain. The actual impact of these recent developments on our business will depend on many factors, many of which are beyond management's control and knowledge. During the first quarter of 2020, our management initiated and approved a broad restructuring plan in response to the dislocation of the global energy market resulting from the recent decline in oil prices and the COVID-19 pandemic. The restructuring plan is designed to optimize costs and improve operational efficiencies. As a result of certain restructuring activities and the adverse market conditions, we also performed interim impairment tests of our goodwill, intangible assets, significant investments and various other assets resulting in impairment charges recognized for the three months ended March 31, 2020. See Note 7 "Restructuring Charges and Asset Impairments" and Note 8 "Goodwill and Goodwill Impairment" for further discussion.

The restructuring plan included the reorganization of KBR's management structure primarily within our Energy Solutions business segment. The reorganization did not have an impact on our identified reportable segments. See Note 2 to our condensed consolidated financial statements for further discussion on our segments.

Impact of Adoption of New Accounting Standards

Financial Instruments - Credit Losses

Effective January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, using the modified retrospective approach. This ASU replaces the incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset, including receivables, are recorded. The estimate of expected credit losses considers not only historical information, but also current and future economic conditions and events. As a result of the adoption, we recorded a cumulative effect adjustment to retained earnings of $3 million, net of tax of $1 million, on our opening condensed consolidated balance sheet as of January 1, 2020. See Note 19 "Financial Instruments and Risk Management" for further discussion related to credit losses.


11



Other Standards

Effective January 1, 2020, we adopted ASU No. 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606 which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. The adoption of this standard did not have any impact on our financial position, results of operations or cash flows.

Effective January 1, 2020, we adopted ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest. The adoption of this standard did not have any impact on our financial position, results of operations or cash flows.

Effective January 1, 2020, we adopted ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows.

Effective January 1, 2020, we adopted ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU amends ASC 820 to add, remove and modify certain disclosure requirements for fair value measurements. For example, public companies will now be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows.

Effective January 1, 2020, we adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. As a result of the adoption of this standard, we used Step 1 to measure the goodwill impairment loss recognized during the first quarter of 2020 without proceeding to Step 2 of the goodwill impairment test as required under the previous standard. See Note 8 "Goodwill and Goodwill Impairment" for discussion of goodwill impairment recognized for the three months ended March 31, 2020.

Additional Balance Sheet Information

Other Current Liabilities
    
The components of "Other current liabilities" on our condensed consolidated balance sheets as of March 31, 2020, and December 31, 2019, are presented below:
 
March 31,
 
December 31,
Dollars in millions
2020
 
2019
Current maturities of long-term debt
$
12

 
$
27

Reserve for estimated losses on uncompleted contracts
9

 
10

Retainage payable
46

 
41

Income taxes payable
26

 
25

Restructuring reserve
28

 

Value-added tax payable
34

 
36

Dividend payable
14

 
11

Other miscellaneous liabilities
59

 
36

Total other current liabilities
$
228

 
$
186




12



Note 2. Business Segment Information

We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, a relatively few number of projects, government programs and joint ventures represent a substantial part of our operations. Our reportable segments follow the same accounting policies as those described in Note 1 to our condensed consolidated financial statements.

We are organized into three core business segments, Government Solutions, Technology Solutions, and Energy Solutions and two non-core business segments as described below:
Government Solutions. Our GS business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies in the U.S., U.K. and Australia. KBR covers the full spectrum from research and development; through systems engineering, test and evaluation, systems integration and program management; to operations support, maintenance and field logistics. Our acquisitions as described in Note 4 to our condensed consolidated financial statements have been fully integrated with our existing operations.

Technology Solutions. Our TS business segment combines KBR's proprietary technologies, equipment and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic and specialty chemicals as well as gasification, syngas, ammonia, nitric acid and fertilizers. From early planning through scope definition, advanced technologies and project life-cycle support, our TS business segment works closely with customers to provide the optimal approach to maximize their return on investment.
Energy Solutions. Our ES business segment provides full life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets. We provide comprehensive project and program delivery capabilities as well as engineering services front-end consulting and feasibility studies, sustaining capital construction, turnarounds, maintenance services, and more. Our key capabilities leverage our operational and technical excellence as a global provider of EPC and high-impact consulting and engineering services for onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers; offshore oil and gas; and floating solutions.
Non-strategic Business. Our Non-strategic Business segment represents the operations or activities we determine are no longer core to our business strategy and that we have exited or intend to exit upon completion of existing contracts. All Non-strategic business projects are substantially complete. Current activities in this business segment primarily relate to final project close-out, negotiation and settlement of claims, joint venture liquidation and various other matters associated with these projects.
Other. Our Other segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above.


13



Operations by Reportable Segment
 
Three Months Ended
 
March 31,
 
2020
 
2019
Dollars in millions
 
 
 
Revenues:
 
 
 
Government Solutions
$
955

 
$
975

Technology Solutions
88

 
92

Energy Solutions
491

 
272

Subtotal
1,534

 
1,339

Non-strategic Business
3

 
1

Total revenues
$
1,537

 
$
1,340

 
 
 
 
Gross profit (loss):
 
 
 
Government Solutions
$
127

 
$
90

Technology Solutions
29

 
27

Energy Solutions
34

 
36

Subtotal
190

 
153

Non-strategic Business
(4
)
 

Total gross profit
$
186

 
$
153

Equity in earnings of unconsolidated affiliates
1

 

Selling, general and administrative expenses
(97
)
 
(78
)
Acquisition and integration related costs

 
(1
)
Goodwill impairment
(62
)
 

Restructuring charges and asset impairments
(116
)
 

Gain on disposition of assets
19

 
4

Operating (loss) income
$
(69
)
 
$
78

Interest expense
$
(23
)
 
$
(25
)
Other non-operating income
$
7

 
$
5

(Loss) income before income taxes and noncontrolling interests
$
(85
)
 
$
58



Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. With a portfolio of more than one thousand contracts, we generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any.

Energy Solutions

We recognized a favorable change of $16 million in estimated revenues and gross profit associated with variable consideration resulting from resolution of a contingency on a completed LNG project in Australia during the three months ended March 31, 2020.



14



Note 3. Revenue

Disaggregated Revenue

We disaggregate our revenue from customers by geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Government Solutions revenue earned from key U.S. government customers including U.S. DoD agencies and NASA was $727 million and $763 million for the three months ended March 31, 2020 and 2019, respectively. Government Solutions revenue earned from non-U.S. government customers including the U.K. MoD, the Australian Defence Force and others was $228 million and $212 million for the three months ended March 31, 2020 and 2019, respectively.

Revenue by geographic destination was as follows:
 
Three Months Ended March 31, 2020
Total by Countries/Regions
Dollars in millions
Government Solutions
 
Technology Solutions
 
Energy Solutions
 
Non-strategic Business
 
Total
     United States
$
513

 
$
8

 
$
238

 
$
3

 
$
762

     Middle East
187

 
2

 
62

 

 
251

     Europe
190

 
8

 
51

 

 
249

     Australia
31

 

 
56

 

 
87

     Canada

 

 
25

 

 
25

     Africa
19

 
1

 
22

 

 
42

     Asia