10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

or

o 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:  1-16129

FLUOR CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	33-0927079
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
6700 Las Colinas Boulevard Irving, Texas	75039
(Address of principal executive offices)	(Zip Code)

469-398-7000

(Registrant’s telephone number, including area code)

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 x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

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

As of July 29, 2016, 139,248,369 shares of the registrant’s common stock, $0.01 par value, were outstanding.

FLUOR CORPORATION

FORM 10-Q

June 30, 2016

TABLE OF CONTENTS

			PAGE
Part I:	Financial Information
	Item 1:	Financial Statements
		Condensed Consolidated Statement of Earnings for the Three and Six Months Ended June 30, 2016 and 2015 (Unaudited)	2
		Condensed Consolidated Statement of Comprehensive Income for the Three and Six Months Ended June 30, 2016 and 2015 (Unaudited)	3
		Condensed Consolidated Balance Sheet as of June 30, 2016 and December 31, 2015 (Unaudited)	4
		Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2016 and 2015 (Unaudited)	5
		Notes to Condensed Consolidated Financial Statements (Unaudited)	6
	Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
	Item 3:	Quantitative and Qualitative Disclosures about Market Risk	38
	Item 4:	Controls and Procedures	38
	Changes in Consolidated Backlog (Unaudited)		39
Part II:	Other Information
	Item 1:	Legal Proceedings	40
	Item 1A:	Risk Factors	40
	Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	40
	Item 6:	Exhibits	41
Signatures			44

1

PART I:  FINANCIAL INFORMATION

Item 1. Financial Statements

FLUOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

UNAUDITED

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share amounts)	2016			2015			2016			2015
TOTAL REVENUE	$	4,856,117		$	4,810,106		$	9,280,006		$	9,358,755
TOTAL COST OF REVENUE	4,607,868			4,516,125			8,775,935			8,767,314
OTHER (INCOME) AND EXPENSES
Corporate general and administrative expense	52,640			47,785			107,753			88,895
Interest expense	18,719			11,401			33,364			23,569
Interest income	(4,512		)	(4,054		)	(7,668		)	(8,750		)
Total cost and expenses	4,674,715			4,571,257			8,909,384			8,871,028
EARNINGS BEFORE TAXES	181,402			238,849			370,622			487,727
INCOME TAX EXPENSE	61,348			78,105			131,557			161,379
NET EARNINGS	120,054			160,744			239,065			326,348
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	18,241			12,237			32,929			33,762
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	$	101,813		$	148,507		$	206,136		$	292,586
BASIC EARNINGS PER SHARE	$	0.73		$	1.02		$	1.48		$	1.99
DILUTED EARNINGS PER SHARE	$	0.72		$	1.00		$	1.46		$	1.96
SHARES USED TO CALCULATE EARNINGS PER SHARE
BASIC	139,226			146,261			139,088			146,996
DILUTED	140,801			147,921			140,833			148,918
DIVIDENDS DECLARED PER SHARE	$	0.21		$	0.21		$	0.42		$	0.42

See Notes to Condensed Consolidated Financial Statements.

2

FLUOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

UNAUDITED

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2016			2015			2016			2015
NET EARNINGS	$	120,054		$	160,744		$	239,065		$	326,348
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustment	(38,516		)	12,885			(16,180		)	(35,839		)
Ownership share of equity method investees’ other comprehensive income (loss)	8,384			1,653			366			(2,828		)
Defined benefit pension and postretirement plan adjustments	1,208			2,677			(2,117		)	5,365
Unrealized gain (loss) on derivative contracts	(2,681		)	496			921			1,390
Unrealized gain (loss) on available-for-sale securities	265			(235		)	1,112			374
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(31,340		)	17,476			(15,898		)	(31,538		)
COMPREHENSIVE INCOME	88,714			178,220			223,167			294,810
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	18,940			11,626			33,684			33,742
COMPREHENSIVE INCOME ATTRIBUTABLE TO FLUOR CORPORATION	$	69,774		$	166,594		$	189,483		$	261,068

See Notes to Condensed Consolidated Financial Statements.

3

FLUOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

UNAUDITED

	June 30,			December 31,
(in thousands, except share and per share amounts)	2016			2015
ASSETS
CURRENT ASSETS
Cash and cash equivalents ($379,146 and $289,991 related to variable interest entities (“VIEs”))	$	1,627,054		$	1,949,886
Marketable securities, current ($67,156 and $70,176 related to VIEs)	125,086			197,092
Accounts and notes receivable, net ($262,090 and $186,833 related to VIEs)	1,676,241			1,203,024
Contract work in progress ($198,397 and $178,826 related to VIEs)	1,796,469			1,376,471
Other current assets ($30,373 and $27,362 related to VIEs)	426,390			378,927
Total current assets	5,651,240			5,105,400
Marketable securities, noncurrent	163,715			220,634
Property, plant and equipment (“PP&E”) ((net of accumulated depreciation of $1,084,124 and $1,046,077) (net PP&E of $68,651 and $70,247 related to VIEs))	1,055,902			892,340
Goodwill	567,264			111,646
Investments	748,455			337,930
Deferred taxes	339,206			394,832
Deferred compensation trusts	332,432			360,725
Other assets ($24,616 and $24,141 related to VIEs)	383,253			201,899
TOTAL ASSETS	$	9,241,467		$	7,625,406
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable ($275,511 and $178,139 related to VIEs)	$	1,714,192		$	1,266,509
Revolving credit facility and other borrowings	166,081			—
Advance billings on contracts ($234,097 and $188,484 related to VIEs)	737,663			754,037
Accrued salaries, wages and benefits ($31,672 and $47,526 related to VIEs)	731,393			669,592
Other accrued liabilities ($40,060 and $25,384 related to VIEs)	430,701			245,214
Total current liabilities	3,780,030			2,935,352
LONG-TERM DEBT DUE AFTER ONE YEAR	1,547,459			986,564
NONCURRENT LIABILITIES	630,344			589,991
CONTINGENCIES AND COMMITMENTS
EQUITY
Shareholders’ equity
Capital stock
Preferred — authorized 20,000,000 shares ($0.01 par value); none issued	—			—
Common — authorized 375,000,000 shares ($0.01 par value); issued and outstanding — 139,243,680 and 139,018,309 shares in 2016 and 2015, respectively	1,392			1,390
Additional paid-in capital	21,441			—
Accumulated other comprehensive loss	(449,428		)	(432,775		)
Retained earnings	3,566,143			3,428,732
Total shareholders’ equity	3,139,548			2,997,347
Noncontrolling interests	144,086			116,152
Total equity	3,283,634			3,113,499
TOTAL LIABILITIES AND EQUITY	$	9,241,467		$	7,625,406

See Notes to Condensed Consolidated Financial Statements.

4

FLUOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

UNAUDITED

	Six Months Ended  June 30,
(in thousands)	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	239,065		$	326,348
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities:
Depreciation of fixed assets	101,390			94,695
Amortization of intangibles	7,191			445
(Earnings) loss from equity method investments, net of distributions	13,951			(7,377		)
Gain on sale of property, plant and equipment	(10,182		)	(18,034		)
Amortization of stock-based awards	23,912			27,774
Deferred compensation trust	28,322			35,754
Deferred compensation obligation	10,416			3,169
Deferred taxes	23,972			146,941
Net retirement plan accrual (contributions)	(8,690		)	6,968
Changes in operating assets and liabilities	(341,659		)	(111,957		)
Cash outflows from discontinued operations	—			(306,490		)
Other items	2,856			5,953
Cash provided by operating activities	90,544			204,189
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities	(216,884		)	(182,561		)
Proceeds from the sales and maturities of marketable securities	346,486			220,728
Capital expenditures	(107,345		)	(133,487		)
Proceeds from disposal of property, plant and equipment	39,047			54,890
Investments in partnerships and joint ventures	(400,651		)	(47,458		)
Acquisitions, net of cash acquired	(240,740		)	—
Other items	7,042			911
Cash utilized by investing activities	(573,045		)	(86,977		)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of common stock	(9,718		)	(214,253		)
Dividends paid	(59,333		)	(63,531		)
Proceeds from issuance of 1.75% Senior Notes	552,958			—
Debt issuance costs	(3,513		)	—
Repayment of Stork Notes, convertible debt and other borrowings	(332,509		)	(28,425		)
Borrowings under revolving lines of credit	883,750			—
Repayment of borrowings under revolving lines of credit	(851,594		)	—
Distributions paid to noncontrolling interests	(24,327		)	(41,766		)
Capital contributions by noncontrolling interests	8,016			2,294
Taxes paid on vested restricted stock	(6,987		)	(8,392		)
Stock options exercised	3,144			1,162
Other items	8,554			(3,495		)
Cash provided (utilized) by financing activities	168,441			(356,406		)
Effect of exchange rate changes on cash	(8,772		)	(30,171		)
Decrease in cash and cash equivalents	(322,832		)	(269,365		)
Cash and cash equivalents at beginning of period	1,949,886			1,993,125
Cash and cash equivalents at end of period	$	1,627,054		$	1,723,760

See Notes to Condensed Consolidated Financial Statements.

5

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(1)Principles of Consolidation

The Condensed Consolidated Financial Statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States and, therefore, should be read in conjunction with the company’s December 31, 2015 Annual Report on Form 10-K. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and six months ended June 30, 2016 may not necessarily be indicative of results that can be expected for the full year.

The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly its consolidated financial position as of June 30, 2016 and December 31, 2015 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Certain amounts in 2015 have been reclassified to conform to the 2016 presentation due to the implementation of new accounting pronouncements discussed below. Segment operating information for 2015 has been recast to reflect changes in the composition of the company’s reportable segments as discussed in Note 16. Management has evaluated all material events occurring subsequent to the date of the financial statements up to the filing date of this Form 10-Q.

The Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2016 include the financial statements of Stork Holding B.V. (“Stork”) since March 1, 2016, the date of acquisition. See Note 17 for a further discussion of the acquisition.

(2)Recent Accounting Pronouncements

New accounting pronouncements implemented by the company during the first six months of 2016 or requiring implementation in future periods are discussed below or in the related notes, where appropriate.

In the first quarter of 2016, the company adopted Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” on a retrospective basis. This ASU requires entities to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent. As a result of the adoption of ASU 2015-17, deferred tax assets of $173 million were reclassified from current assets to noncurrent assets on the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-17 did not have any impact on the company’s results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of ASU 2015-16 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update),” which clarifies the presentation and measurement of debt issuance costs incurred in connection with line of credit arrangements. The adoption of ASU 2015-15 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” on a prospective basis. This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. The adoption of ASU 2015-05 did not have a material impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” on a retrospective basis. This ASU changes the presentation of debt issuance costs on the balance sheet by requiring entities to present such costs as a direct deduction from the related debt liability rather than as an asset. As a result of the adoption of ASU

6

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

2015-03, debt issuance costs of $6 million were reclassified from noncurrent assets to a direct deduction of long-term debt on the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-03 did not have any impact on the company’s results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-02, “Amendments to the Consolidation Analysis.” This ASU amends the consolidation guidance for VIEs and general partners’ investments in limited partnerships and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. The adoption of ASU 2015-02 did not have a material impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” Under this ASU, an entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. The adoption of ASU 2015-01 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period.” This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The adoption of ASU 2014-12 did not have any impact on the company’s financial position, results of operations or cash flows.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU replace the incurred loss impairment methodology in current practice with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Management does not expect the adoption of ASU 2016-13 to have a material impact on the company’s financial position, results of operations or cash flows.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU is intended to simplify various aspects of the accounting for share-based payment awards, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Management is currently evaluating the impact of adopting ASU 2016-09 on the company’s financial position, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting” which eliminates the requirement to retrospectively apply equity method accounting when an investor obtains significant influence over a previously held investment. ASU 2016-07 is effective for interim and annual reporting periods beginning after December 15, 2016, and should be applied prospectively. Management does not expect the adoption of ASU 2016-07 to have a material impact on the company’s financial position, results of operations or cash flows.

In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” This ASU clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. ASU 2016-05 is effective for interim and annual reporting periods beginning after December 15, 2016. ASU 2016-05 can be applied on either a prospective or modified retrospective basis. Management does not expect the adoption of ASU 2016-05 to have a material impact on the company’s financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU 2016-02, “Leases: Amendments to the FASB Accounting Standards Codification,” which amends the existing guidance on accounting for leases. This ASU requires the recognition of lease assets and lease liabilities on the balance sheet, and the disclosure of key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted and modified retrospective application is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Management is currently evaluating the impact of adopting ASU 2016-02 on the company’s financial position, results of operations or cash flows.

7

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments — Overall — Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to recognize any changes in fair value in net income unless the investments qualify for a practicability exception. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2016-01 to have a material impact on the company’s financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016 and subsequent interim reporting periods. Management does not expect the adoption of ASU 2014-15 to have a material impact on the company’s financial position, results of operations or cash flows.

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and require separate accounting (performance obligations), how variable consideration (which may include change orders and claims) is recognized, whether revenue should be recognized at a point in time or over time and ensuring the time value of money is considered in the transaction price.

As a result of the deferral of the effective date in ASU 2015-14, “Revenue from Contracts with Customers — Deferral of the Effective Date,” the company will now be required to adopt ASU 2014-09 for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of interim and annual reporting periods beginning after December 15, 2016. ASU 2014-09 can be applied either retrospectively to each prior period presented or as a cumulative-effect adjustment as of the date of adoption.

In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the principal versus agent guidance in ASU 2014-09. ASU 2016-08 clarifies how an entity determines whether to report revenue gross or net based on whether it controls a specific good or service before it is transferred to a customer. ASU 2016-08 also reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent.

In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends certain aspects of ASU 2014-09. ASU 2016-10 amends how an entity should identify performance obligations for immaterial promised goods or services, shipping and handling activities and promises that may represent performance obligations. ASU 2016-10 also provides implementation guidance for determining the nature of licensing and royalties arrangements.

In May 2016, the FASB issued ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” which also clarifies certain aspects of ASU 2014-09 including the assessment of collectability, presentation of sales taxes, treatment of noncash consideration, and accounting for completed contracts and contract modifications at transition. ASU 2016-12, 2016-10 and 2016-08 are effective upon adoption of ASU 2014-09.

Management is currently evaluating the impact of adopting ASU 2014-09, 2016-08, 2016-10 and 2016-12 on the company’s financial position, results of operations, cash flows and related disclosures. Adoption of these ASUs is expected to affect the manner in which the company determines the unit of account for its projects (i.e., performance obligations). Under existing

8

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

guidance, the company typically segments revenue and margin recognition between the engineering and construction phases of its contracts. Upon adoption, the company expects that the entire engineering and construction contract will typically be a single unit of account (a single performance obligation), which will result in a more consistent recognition of revenue and margin over the term of the contract. Management is considering whether to adopt ASU 2014-09 at the required adoption date for the company (January 2018) or earlier (January 2017). The company expects to adopt this new standard using the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption.

(3)Other Comprehensive Income (Loss)

The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended June 30, 2016 and 2015 are as follows:

	Three Months Ended									Three Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(61,923	)	$	23,407		$	(38,516	)	$	21,082		$	(8,197	)	$	12,885
Ownership share of equity method investees’ other comprehensive income	13,112			(4,728		)	8,384			1,838			(185		)	1,653
Defined benefit pension and postretirement plan adjustments	1,933			(725		)	1,208			4,283			(1,606		)	2,677
Unrealized gain (loss) on derivative contracts	(4,337		)	1,656			(2,681		)	648			(152		)	496
Unrealized gain (loss) on available-for-sale securities	424			(159		)	265			(375		)	140			(235		)
Total other comprehensive income (loss)	(50,791		)	19,451			(31,340		)	27,476			(10,000		)	17,476
Less: Other comprehensive income (loss) attributable to noncontrolling interests	699			—			699			(611		)	—			(611		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(51,490	)	$	19,451		$	(32,039	)	$	28,087		$	(10,000	)	$	18,087

9

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

The tax effects of the components of OCI for the six months ended June 30, 2016 and 2015 are as follows:

	Six Months Ended									Six Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(26,168	)	$	9,988		$	(16,180	)	$	(57,189	)	$	21,350		$	(35,839	)
Ownership share of equity method investees’ other comprehensive income (loss)	1,020			(654		)	366			(4,164		)	1,336			(2,828		)
Defined benefit pension and postretirement plan adjustments	(617		)	(1,500		)	(2,117		)	8,584			(3,219		)	5,365
Unrealized gain on derivative contracts	1,448			(527		)	921			2,062			(672		)	1,390
Unrealized gain on available-for-sale securities	1,779			(667		)	1,112			599			(225		)	374
Total other comprehensive loss	(22,538		)	6,640			(15,898		)	(50,108		)	18,570			(31,538		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	755			—			755			(20		)	—			(20		)
Other comprehensive loss attributable to Fluor Corporation	$	(23,293	)	$	6,640		$	(16,653	)	$	(50,088	)	$	18,570		$	(31,518	)

The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended June 30, 2016 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2016	$	(200,207	)	$	(45,967	)	$	(165,855	)	$	(5,735	)	$	375		$	(417,389	)
Other comprehensive income (loss) before reclassifications	(39,010		)	8,384			—			(3,980		)	325			(34,281		)
Amounts reclassified from AOCI	—			—			1,208			1,094			(60		)	2,242
Net other comprehensive income (loss)	(39,010		)	8,384			1,208			(2,886		)	265			(32,039		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2016	$	(140	)	$	—		$	—		$	(428	)	$	—		$	(568	)
Other comprehensive income before reclassifications	494			—			—			126			—			620
Amounts reclassified from AOCI	—			—			—			79			—			79
Net other comprehensive income	494			—			—			205			—			699
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

10

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2016 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2015	$	(222,569	)	$	(37,949	)	$	(162,530	)	$	(9,255	)	$	(472	)	$	(432,775	)
Other comprehensive income (loss) before reclassifications	(16,648		)	366			(4,617		)	(2,184		)	1,135			(21,948		)
Amounts reclassified from AOCI	—			—			2,500			2,818			(23		)	5,295
Net other comprehensive income (loss)	(16,648		)	366			(2,117		)	634			1,112			(16,653		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2015	$	(114	)	$	—		$	—		$	(510	)	$	—		$	(624	)
Other comprehensive income before reclassifications	468			—			—			110			—			578
Amounts reclassified from AOCI	—			—			—			177			—			177
Net other comprehensive income	468			—			—			287			—			755
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

The changes in AOCI balances by component (after-tax) for the three months ended June 30, 2015 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2015	$	(168,660	)	$	(34,917	)	$	(322,457	)	$	(8,131	)	$	348		$	(533,817	)
Other comprehensive income (loss) before reclassifications	13,660			1,653			—			(120		)	(234		)	14,959
Amounts reclassified from AOCI	—			—			2,677			452			(1		)	3,128
Net other comprehensive income (loss)	13,660			1,653			2,677			332			(235		)	18,087
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2015	$	1,848		$	—		$	—		$	(614	)	$	—		$	1,234
Other comprehensive income (loss) before reclassifications	(775		)	—			—			105			—			(670		)
Amounts reclassified from AOCI	—			—			—			59			—			59
Net other comprehensive income (loss)	(775		)	—			—			164			—			(611		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

11

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2015 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2014	$	(119,416	)	$	(30,436	)	$	(325,145	)	$	(8,954	)	$	(261	)	$	(484,212	)
Other comprehensive income (loss) before reclassifications	(35,584		)	(2,828		)	—			476			444			(37,492		)
Amounts reclassified from AOCI	—			—			5,365			679			(70		)	5,974
Net other comprehensive income (loss)	(35,584		)	(2,828		)	5,365			1,155			374			(31,518		)
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2014	$	1,328		$	—		$	—		$	(685	)	$	—		$	643
Other comprehensive income (loss) before reclassifications	(255		)	—			—			102			—			(153		)
Amounts reclassified from AOCI	—			—			—			133			—			133
Net other comprehensive income (loss)	(255		)	—			—			235			—			(20		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

The significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Earnings are as follows:

	Location in	Three Months Ended						Six Months Ended
	Condensed Consolidated	June 30,						June 30,
(in thousands)	Statement of Earnings	2016			2015			2016			2015
Component of AOCI:
Defined benefit pension plan adjustments	Various accounts(1)	$	(1,933	)	$	(4,283	)	$	(4,000	)	$	(8,584	)
Income tax benefit	Income tax expense	725			1,606			1,500			3,219
Net of tax		$	(1,208	)	$	(2,677	)	$	(2,500	)	$	(5,365	)
Unrealized loss on derivative contracts:
Commodity and foreign currency contracts	Total cost of revenue	$	(1,412	)	$	(398	)	$	(3,884	)	$	(460	)
Interest rate contracts	Interest expense	(420		)	(420		)	(839		)	(839		)
Income tax benefit (net)	Income tax expense	659			307			1,728			487
Net of tax		(1,173		)	(511		)	(2,995		)	(812		)
Less: Noncontrolling interests	Net earnings attributable to noncontrolling interests	(79		)	(59		)	(177		)	(133		)
Net of tax and noncontrolling interests		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)
Unrealized gain on available-for-sale securities	Corporate general and administrative expense	$	95		$	2		$	36		$	112
Income tax expense	Income tax expense	(35		)	(1		)	(13		)	(42		)
Net of tax		$	60		$	1		$	23		$	70

(1)Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense.

12

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(4)Income Taxes

The effective tax rates for the three and six months ended June 30, 2016 were 33.8 percent and 35.5 percent, respectively, compared to 32.7 percent and 33.1 percent for the corresponding periods of 2015. The higher effective rates for the three and six months ended June 30, 2016 were primarily due to unfavorable impacts of foreign losses without benefits and the prior periods being favorably impacted by a benefit for an IRS settlement. Both periods benefitted from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company.

The company conducts business globally and, as a result, the company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, the Netherlands, South Africa, the United Kingdom and the United States. Although the company believes its reserves for its tax positions are reasonable, the final outcome of tax audits could be materially different, both favorably and unfavorably. With few exceptions, the company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2012.

(5)Cash Paid for Interest and Taxes

Cash paid for interest was $38 million and $21 million for the six months ended June 30, 2016 and 2015, respectively. Income tax payments, net of refunds, were $77 million and $115 million during the six-month periods ended June 30, 2016 and 2015, respectively.

(6)Earnings Per Share

Diluted earnings per share (“EPS”) reflects the assumed exercise or conversion of all dilutive securities using the treasury stock method.

The calculations of the basic and diluted EPS for the three and six months ended June 30, 2016 and 2015 are presented below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2016		2015		2016		2015
Net earnings attributable to Fluor Corporation	$	101,813	$	148,507	$	206,136	$	292,586
Basic EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Basic earnings per share	$	0.73	$	1.02	$	1.48	$	1.99
Diluted EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Diluted effect:
Employee stock options, restricted stock units and shares and Value Driver Incentive units	1,575		1,660		1,745		1,742
Conversion equivalent of dilutive convertible debt	—		—		—		180
Weighted average diluted shares outstanding	140,801		147,921		140,833		148,918
Diluted earnings per share	$	0.72	$	1.00	$	1.46	$	1.96
Anti-dilutive securities not included above	4,107		3,499		3,917		3,330

13

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

During the six months ended June 30, 2016, the company repurchased and cancelled 202,650 shares of its common stock under its stock repurchase program for $10 million. No shares were repurchased during the three months ended June 30, 2016. During the three and six months ended June 30, 2015, the company repurchased and cancelled 1,782,679 and 3,722,676 shares, respectively, of its common stock under its stock repurchase program for $103 million and $214 million, respectively.

(7)Fair Value Measurements

The fair value hierarchy established by ASC 820, “Fair Value Measurement,” prioritizes the use of inputs used in valuation techniques into the following three levels:

· Level 1	—	quoted prices in active markets for identical assets and liabilities
· Level 2	—	inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly
· Level 3	—	unobservable inputs

The company measures and reports assets and liabilities at fair value utilizing pricing information received from third parties. The company performs procedures to verify the reasonableness of pricing information received for significant assets and liabilities classified as Level 2.

The following table presents, for each of the fair value hierarchy levels required under ASC 820-10, the company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:

	June 30, 2016								December 31, 2015
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents(1)	$	6,526	$	6,526	$	—	$	—	$	19,161	$	19,161	$	—	$	—
Marketable securities, current(2)	49,442		—		49,442		—		87,763		—		87,763		—
Deferred compensation trusts(3)	30,130		30,130		—		—		60,003		60,003		—		—
Marketable securities, noncurrent(4)	163,715		—		163,715		—		220,634		—		220,634		—
Derivative assets(5)
Commodity contracts	138		—		138		—		341		—		341		—
Foreign currency contracts	29,149		—		29,149		—		8,439		—		8,439		—
Liabilities:
Derivative liabilities(5)
Commodity contracts	$	1,549	$	—	$	1,549	$	—	$	2,510	$	—	$	2,510	$	—
Foreign currency contracts	33,034		—		33,034		—		14,138		—		14,138		—

(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period.

(2) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange.

14

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(4)Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(5)See Note 8 for the classification of commodity and foreign currency contracts on the Condensed Consolidated Balance Sheet. Commodity and foreign currency contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows.

All of the company’s financial instruments carried at fair value are included in the table above. All of the above financial instruments are available-for-sale securities except for those held in the deferred compensation trusts (which are trading securities) and derivative assets and liabilities. The company has determined that there was no other-than-temporary impairment of available-for-sale securities with unrealized losses, and the company expects to recover the entire cost basis of the securities. The available-for-sale securities are made up of the following security types as of June 30, 2016: money market funds of $7 million, U.S. agency securities of $13 million, U.S. Treasury securities of $90 million and corporate debt securities of $110 million. As of December 31, 2015, available-for-sale securities consisted of money market funds of $19 million, U.S. agency securities of $18 million, U.S. Treasury securities of $102 million and corporate debt securities of $189 million. The amortized cost of these available-for-sale securities is not materially different from the fair value. During the three and six months ended June 30, 2016, proceeds from sales and maturities of available-for-sale securities were $92 million and $214 million, respectively, compared to $20 million and $203 million for the corresponding periods of 2015.

The carrying values and estimated fair values of the company’s financial instruments that are not required to be measured at fair value on the Condensed Consolidated Balance Sheet are as follows:

		June 30, 2016				December 31, 2015
	Fair Value	Carrying		Fair		Carrying		Fair
(in thousands)	Hierarchy	Value		Value		Value		Value
Assets:
Cash(1)	Level 1	$	992,591	$	992,591	$	1,073,756	$	1,073,756
Cash equivalents(2)	Level 2	627,937		627,937		856,969		856,969
Marketable securities, current(3)	Level 2	75,644		75,644		109,329		109,329
Notes receivable, including noncurrent portion(4)	Level 3	25,010		25,010		19,182		19,182
Liabilities:
1.750% Senior Notes(5)	Level 2	$	549,340	$	579,954	$	—	$	—
3.375% Senior Notes(5)	Level 2	495,588		530,435		495,165		509,025
3.5% Senior Notes(5)	Level 2	491,879		536,135		491,399		504,265
Revolving Credit Facility(6)	Level 2	121,803		121,803		—		—
Other borrowings, including noncurrent portion(7)	Level 2	54,930		54,930		—		—

(1) Cash consists of bank deposits. Carrying amounts approximate fair value.

(2) Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments.

(3) Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.

(4) Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment.

15

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(5) The fair value of the 1.750% Senior Notes, 3.375% Senior Notes and 3.5% Senior Notes were estimated based on quoted market prices for similar issues.

(6) Amounts represent borrowings under the company’s €125 million Revolving Credit Facility which expires in April 2017, as discussed in Note 10. The carrying amount of the borrowings under this revolving credit facility approximates fair value because of the short-term maturity.

(7) Other borrowings as of June 30, 2016 primarily represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The majority of these borrowings mature within one year. The carrying amounts of the borrowings under these arrangements approximate fair value because of the short-term maturity.

(8)Derivatives and Hedging

The company limits exposure to foreign currency fluctuations in most of its engineering and construction contracts through provisions that require client payments in currencies corresponding to the currencies in which cost is incurred. Certain financial exposure, which includes currency and commodity price risk associated with engineering and construction contracts, currency risk associated with monetary assets and liabilities denominated in nonfunctional currencies and risk associated with interest rate volatility, may subject the company to earnings volatility. In cases where financial exposure is identified, the company generally implements a hedging strategy utilizing derivative instruments as hedging instruments to mitigate the risk. These hedging instruments are designated as either fair value or cash flow hedges in accordance with ASC 815, “Derivatives and Hedging.” The company formally documents its hedge relationships at inception, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. The company also formally assesses, both at inception and at least quarterly thereafter, whether the hedging instruments are highly effective in offsetting changes in the fair value of the hedged items. The fair values of all hedging instruments are recognized as assets or liabilities at the balance sheet date. For fair value hedges, the effective portion of the change in the fair value of the hedging instrument is offset against the change in the fair value of the underlying asset or liability through earnings. For cash flow hedges, the effective portion of the hedging instrument’s gain or loss due to changes in fair value is recorded as a component of AOCI and is reclassified into earnings when the hedged item settles. Any ineffective portion of a hedging instrument’s change in fair value is immediately recognized in earnings. The company does not enter into derivative instruments for speculative purposes. The company maintains master netting arrangements with certain counterparties to facilitate the settlement of derivative instruments; however, the company reports the fair value of derivative instruments on a gross basis.

As of June 30, 2016, the company had total gross notional amounts of $790 million of foreign currency contracts and $6 million of commodity contracts outstanding relating to hedging of engineering and construction contract obligations and monetary assets and liabilities denominated in nonfunctional currencies. The foreign currency contracts are of varying duration, none of which extend beyond December 2019. The commodity contracts are of varying duration, none of which extend beyond December 2017. The impact to earnings due to hedge ineffectiveness was immaterial for the three and six months ended June 30, 2016 and 2015.

The fair values of derivatives designated as hedging instruments under ASC 815 as of June 30, 2016 and December 31, 2015 were as follows:

	Asset Derivatives					Liability Derivatives
	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
(in thousands)	Location	2016		2015		Location	2016		2015
Commodity contracts	Other current assets	$	138	$	326	Other accrued liabilities	$	1,460	$	2,195
Foreign currency contracts	Other current assets	14,707		6,865		Other accrued liabilities	16,587		12,381
Commodity contracts	Other assets	—		15		Noncurrent liabilities	89		315
Foreign currency contracts	Other assets	14,442		1,574		Noncurrent liabilities	16,447		1,757
Total		$	29,287	$	8,780		$	34,583	$	16,648

16

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

The pre-tax net gains (losses) recognized in earnings associated with the hedging instruments designated as fair value hedges for the three and six months ended June 30, 2016 and 2015 were as follows:

		Three Months Ended June 30,					Six Months Ended June 30,
Fair Value Hedges (in thousands)	Location of Gain (Loss)	2016			2015		2016			2015
Foreign currency contracts	Corporate general and administrative expense	$	(1,521	)	$	5,237	$	(1,326	)	$	4,083

The pre-tax amount of gain (loss) recognized in earnings on hedging instruments for the fair value hedges noted in the table above offset the amount of gain (loss) recognized in earnings on the hedged items in the same locations on the Condensed Consolidated Statement of Earnings.

The after-tax amount of gain (loss) recognized in OCI associated with the derivative instruments designated as cash flow hedges was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	2016			2015			2016			2015
Commodity contracts	$	298		$	11		$	300		$	(102	)
Foreign currency contracts	(4,278		)	(131		)	(2,484		)	578
Total	$	(3,980	)	$	(120	)	$	(2,184	)	$	476

The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows:

		Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	Location of Gain (Loss)	2016			2015			2016			2015
Commodity contracts	Total cost of revenue	$	(57	)	$	(120	)	$	(177	)	$	(211	)
Foreign currency contracts	Total cost of revenue	(775		)	(70		)	(2,117		)	56
Interest rate contracts	Interest expense	(262		)	(262		)	(524		)	(524		)
Total		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)

As of June 30, 2016, the company also had total gross notional amounts of $8 million of foreign currency contracts and $2 million of commodity contracts outstanding that were not designated as hedging instruments. These contracts primarily related to engineering and construction and operations and maintenance contract obligations denominated in nonfunctional currencies. Recognized gains of $3 million and $0.3 million associated with these contracts were included in Cost of Revenues for the three and six months ended June 30, 2016, respectively.

17

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(9)Retirement Benefits

Net periodic pension expense for the company’s defined benefit pension plans included the following components:

	U.S. Pension Plan										Non-U.S. Pension Plans
	Three Months Ended					Six Months Ended					Three Months Ended						Six Months Ended
	June 30,					June 30,					June 30,						June 30,
(in thousands)	2016 (1)		2015			2016 (1)		2015			2016			2015			2016			2015
Service cost	$	—	$	1,700		$	—	$	3,400		$	5,014		$	5,139		$	9,746		$	10,341
Interest cost	—		3,800			—		7,599			6,899			6,648			13,520			13,289
Expected return on assets	—		(5,275		)	—		(10,550		)	(10,258		)	(12,295		)	(20,309		)	(24,600		)
Amortization of prior service cost	—		216			—		433			(198		)	(203		)	(407		)	(409		)
Recognized net actuarial loss	—		2,351			—		4,702			2,130			1,919			4,406			3,858
Net periodic pension expense	$	—	$	2,792		$	—	$	5,584		$	3,587		$	1,208		$	6,956		$	2,479

(1)In December 2015, the company settled the remaining obligations associated with its U.S. defined benefit pension plan. A detailed discussion of the plan settlement is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015.

The company currently expects to contribute between $15 million and $20 million into its non-U.S. defined benefit pension plans during 2016, which is expected to be in excess of the minimum funding required. During the six months ended June 30, 2016, contributions of approximately $11 million were made by the company.

(10)Financing Arrangements

As of June 30, 2016, the company had a combination of committed and uncommitted lines of credit totaling $6.0 billion that may be used for revolving loans and letters of credit. As of June 30, 2016, letters of credit and borrowings totaling $2.0 billion were outstanding under these committed and uncommitted lines of credit. The committed lines of credit include a $1.7 billion Revolving Loan and Letter of Credit Facility and a $1.8 billion Revolving Loan and Letter of Credit Facility. Both facilities mature in February 2021. The company may utilize up to $1.75 billion in the aggregate of the combined $3.5 billion committed lines of credit for revolving loans, which may be used for acquisitions and/or general purposes. Each of the credit facilities may be increased up to an additional $500 million subject to certain conditions, and contains customary financial and restrictive covenants, including a maximum ratio of consolidated debt to tangible net worth of one-to-one and a cap on the aggregate amount of debt of the greater of $750 million or €750 million for the company’s subsidiaries. Borrowings under both facilities, which may be denominated in USD, EUR, GBP or CAD, bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin.

In connection with the Stork acquisition, the company assumed a €110 million Super Senior Revolving Credit Facility that bore interest at EURIBOR plus 3.75%. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility which may be used for revolving loans, bank guarantees, letters of credit and to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%. The €125 million Revolving Credit Facility was included in committed lines of credit as of June 30, 2016. Outstanding borrowings under this facility amounted to €110 million (or approximately $122 million) as of June 30, 2016.

Letters of credit are provided in the ordinary course of business primarily to indemnify the company’s clients if the company fails to perform its obligations under its contracts. As an alternative to letters of credit, surety bonds are used as a form of credit enhancement.

18

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

In March 2016, the company issued €500 million of 1.750% Senior Notes (the “2016 Notes”) due March 21, 2023 and received proceeds of €497 million, net of underwriting discounts. Interest on the 2016 Notes is payable annually on March 21 of each year, beginning on March 21, 2017. Prior to December 21, 2022, the company may redeem the 2016 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after December 21, 2022, the company may redeem the 2016 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. Additionally, the company may redeem the 2016 Notes at any time upon the occurrence of certain changes in U.S. tax laws at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In November 2014, the company issued $500 million of 3.5% Senior Notes (the “2014 Notes”) due December 15, 2024 and received proceeds of $491 million, net of underwriting discounts. Interest on the 2014 Notes is payable semi-annually on June 15 and December 15 of each year, and began on June 15, 2015. Prior to September 15, 2024, the company may redeem the 2014 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after September 15, 2024, the company may redeem the 2014 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In September 2011, the company issued $500 million of 3.375% Senior Notes (the “2011 Notes”) due September 15, 2021 and received proceeds of $492 million, net of underwriting discounts. Interest on the 2011 Notes is payable semi-annually on March 15 and September 15 of each year, and began on March 15, 2012. The company may, at any time, redeem the 2011 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture.

For the 2016 Notes, the 2014 Notes and the 2011 Notes, if a change of control triggering event occurs, as defined by the terms of the respective indentures, the company will be required to offer to purchase the applicable notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of redemption. The company is generally not limited under the indentures governing the 2016 Notes, the 2014 Notes and the 2011 Notes in its ability to incur additional indebtedness provided the company is in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions.

In conjunction with the acquisition of Stork on March 1, 2016, the company assumed Stork’s outstanding debt obligations, including its 11.0% Super Senior Notes due 2017 (the ‘‘Stork Notes’’), borrowings under the €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. See Note 17 for a further discussion of the acquisition.

Other borrowings of $55 million as of June 30, 2016 primarily represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork, exclusive of the Stork Notes.

As of June 30, 2016, the company was in compliance with all of the financial covenants related to its debt agreements.

(11)Stock-Based Plans

The company’s executive and director stock-based compensation plans are described, and informational disclosures are provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. In the first half of 2016 and 2015, restricted stock units totaling 553,415 and 546,679, respectively, were granted to executives and directors, at weighted-average per share prices of $46.50 and $59.11, respectively. For the company’s executives, the restricted stock units granted in 2016 and 2015 generally vest ratably over three years. For the company’s directors, the restricted stock units granted in 2016 and 2015 vest or vested on the first anniversary of the grant. During the first half of 2016 and 2015, options for the purchase of 662,001 shares at a weighted-average exercise price of $46.07 per share and 963,288 shares at a weighted-average exercise price of $59.05 per share, respectively, were awarded to executives. The options granted in 2016 and 2015 vest ratably over three years. The options expire ten years after the grant date.

19

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

In the first half of 2016 and 2015, performance-based Value Driver Incentive (“VDI”) units totaling 98,684 and 430,970, respectively, were granted to executives at weighted-average per share prices of $46.07 and $59.05, respectively. The number of units is adjusted at the end of each performance period based on the achievement of certain performance criteria. The VDI awards granted in 2016 and 2015 can only be settled in company stock and are accounted for as equity awards in accordance with ASC 718. Both the VDI awards granted in 2016 and 2015 vest after a period of approximately three years. VDI awards granted during 2016 are also subject to a post-vest holding period restriction for the period of three years.

(12)Noncontrolling Interests

The company applies the provisions of ASC 810-10-45, which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net earnings attributable to the parent and to the noncontrolling interests, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated.

As required by ASC 810-10-45, the company has separately disclosed on the face of the Condensed Consolidated Statement of Earnings for all periods presented the amount of net earnings attributable to the company and the amount of net earnings attributable to noncontrolling interests. For the three and six months ended June 30, 2016, net earnings attributable to noncontrolling interests were $18 million and $33 million, respectively. For the three and six months ended June 30, 2015, net earnings attributable to noncontrolling interests were $12 million and $34 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $24 million and $42 million for the six months ended June 30, 2016 and 2015, respectively. Capital contributions by noncontrolling interests were $8 million and $2 million for the six months ended June 30, 2016 and 2015, respectively.

(13)Contingencies and Commitments

The company and certain of its subsidiaries are subject to litigation, claims and other commitments and contingencies arising in the ordinary course of business. Although the asserted value of these matters may be significant, the company currently does not expect that the ultimate resolution of any open matters will have a material adverse effect on its consolidated financial position or results of operations.

Other Matters

The company has made claims arising from the performance under its contracts. The company recognizes revenue, but not profit, for certain claims (including change orders in dispute and unapproved change orders in regard to both scope and price) when it is determined that recovery of incurred costs is probable and the amounts can be reliably estimated. Under ASC 605-35-25, these requirements are satisfied when (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. The company periodically evaluates its position and the amounts recognized in revenue with respect to all its claims. As of June 30, 2016 and December 31, 2015, the company had recorded $49 million and $30 million, respectively, of claim revenue for costs incurred to date and such costs are included in contract work in progress. Additional costs, which will increase the claim revenue balance over time, are expected to be incurred in future quarters. The company believes the ultimate recovery of incurred and future costs related to these claims is probable in accordance with ASC 605-35-25.

From time to time, the company enters into significant contracts with the U.S. government and its agencies. Government contracts are subject to audits and investigations by government representatives with respect to the company’s compliance with various restrictions and regulations applicable to government contractors, including but not limited to the allowability of costs incurred under reimbursable contracts. In connection with performing government contracts, the company maintains reserves for estimated exposures associated with these matters.

20

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(14)Guarantees

In the ordinary course of business, the company enters into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated and consolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The performance guarantees have various expiration dates ranging from mechanical completion of the project being constructed to a period extending beyond contract completion in certain circumstances. The maximum potential amount of future payments that the company could be required to make under outstanding performance guarantees, which represents the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts, was estimated to be $21.7 billion as of June 30, 2016. Amounts that may be required to be paid in excess of estimated cost to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete. In those cases where costs exceed the remaining amounts payable under the contract, the company may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors for claims. The company assessed its performance guarantee obligation as of June 30, 2016 and December 31, 2015 in accordance with ASC 460, “Guarantees,” and the carrying value of the liability was not material.

Financial guarantees, made in the ordinary course of business in certain limited circumstances, are entered into with financial institutions and other credit grantors and generally obligate the company to make payment in the event of a default by the borrower. These arrangements generally require the borrower to pledge collateral to support the fulfillment of the borrower’s obligation.

(15)Partnerships and Joint Ventures

In the normal course of business, the company forms partnerships or joint ventures primarily for the execution of single contracts or projects. The majority of these partnerships or joint ventures are characterized by a 50 percent or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. Many of the partnership and joint venture agreements provide for capital calls to fund operations, as necessary. Receivables related to work performed for unconsolidated partnerships and joint ventures included in “Accounts and notes receivable, net” on the Condensed Consolidated Balance Sheet were $308 million and $132 million as of June 30, 2016 and December 31, 2015, respectively.

For unconsolidated partnerships and joint ventures in the construction industry, the company generally recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Earnings and uses the one-line equity method of accounting on the Condensed Consolidated Balance Sheet, which is a common application of ASC 810-10-45-14 in the construction industry. The equity method of accounting is also used for other investments in entities where the company has significant influence. The company’s investments in unconsolidated partnerships and joint ventures accounted for under these methods amounted to $673 million and $292 million as of June 30, 2016 and December 31, 2015, respectively, and were classified under “Investments” and “Other accrued liabilities” on the Condensed Consolidated Balance Sheet.

In August 2015, the company entered into an agreement to form COOEC Fluor Heavy Industries Co., Ltd. (“CFHI”), a joint venture in which the company has a 49% ownership interest and Offshore Oil Engineering Co., Ltd., a subsidiary of China National Offshore Oil Corporation, has a 51% ownership interest. Through CFHI, the two companies own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. In February 2016, the company made an initial cash investment of $350 million and an additional investment of $140 million will be made in the future.

Variable Interest Entities

In accordance with ASC 810, “Consolidation,” the company assesses its partnerships and joint ventures at inception to determine if any meet the qualifications of a variable interest entity (“VIE”). The company considers a partnership or joint venture a VIE if either (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) characteristics of a controlling financial interest are missing (either the ability to

21

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, the company reassesses its initial determination of whether the partnership or joint venture is a VIE. The majority of the company’s partnerships and joint ventures qualify as VIEs because the total equity investment is typically nominal and not sufficient to permit the entity to finance its activities without additional subordinated financial support.

The company also performs a qualitative assessment of each VIE to determine if the company is its primary beneficiary, as required by ASC 810. The company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. The company also considers all parties that have direct or implicit variable interests when determining whether it is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed.

The net carrying value of the unconsolidated VIEs classified under “Investments” and “Other accrued liabilities” on the Condensed Consolidated Balance Sheet was a net asset of $259 million and $208 million as of June 30, 2016 and December 31, 2015, respectively. Some of the company’s VIEs have debt; however, such debt is typically non-recourse in nature. The company’s maximum exposure to loss as a result of its investments in unconsolidated VIEs is typically limited to the aggregate of the carrying value of the investment and future funding commitments. Future funding commitments as of June 30, 2016 for the unconsolidated VIEs were $36 million.

In some cases, the company is required to consolidate certain VIEs. As of June 30, 2016, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.0 billion and $590 million, respectively. As of December 31, 2015, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $863 million and $443 million, respectively. The assets of a VIE are restricted for use only for the particular VIE and are not available for general operations of the company.

The company has agreements with certain VIEs to provide financial or performance assurances to clients. See Note 14 for a further discussion of such agreements. A discussion of some of the company’s more significant or unique VIEs is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015.

(16)Operating Information by Segment

During the first quarter of 2016, the company changed the composition of its reportable segments to better reflect the diverse end markets that the company serves. The company now reports its operating results in four reportable segments as follows: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government; and Maintenance, Modification & Asset Integrity. Segment operating information and assets for 2015 have been recast to reflect these changes.

The Energy, Chemicals & Mining segment is driven by the supply and demand for commodities. This segment provides design, engineering, procurement, construction, fabrication and project management services for chemicals and petrochemicals, downstream refining, pipelines, upstream oil and gas production, liquefied natural gas and offshore production markets. This segment also provides design, engineering, procurement, construction, project management and commissioning and start-up support for mining and metals markets.

The Industrial, Infrastructure & Power segment provides design, engineering, procurement, construction, project management, start-up and commissioning, and technical services to the transportation, commercial and institutional, life sciences and advanced manufacturing, telecommunications, microelectronics and water sectors as well as the gas fueled, solid fueled,

22

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

environmental compliance, renewables, and nuclear power markets. The Industrial, Infrastructure & Power segment includes the operations of NuScale Power, LLC, an Oregon-based designer of small modular nuclear reactors, which is managed as a separate operating segment within the Industrial, Infrastructure & Power segment.

The Government segment provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad.

The Maintenance, Modification & Asset Integrity segment is comprised of several operating segments that do not meet the requirements under ASC 280, “Segment Reporting” for separate disclosure, and therefore, have been combined under the aggregation criteria of ASC 280. The Maintenance, Modification & Asset Integrity segment includes the operations of the company’s equipment business, temporary staffing, power services, the former operations & maintenance business line as well as Stork.

For service contracts (including maintenance contracts) that do not satisfy the criteria for revenue recognition using the percentage-of-completion method, revenue is recognized when services are performed. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract work in progress. Amounts billed to clients in excess of revenue recognized on service contracts to date are classified as a current liability under advance billings on contracts.

Operating information by reportable segment is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
External Revenue (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	2,476.4	$	3,263.1	$	4,919.9	$	6,245.8
Industrial, Infrastructure & Power	1,010.0		580.9		1,843.3		1,127.6
Government	657.9		603.1		1,343.9		1,249.1
Maintenance, Modification & Asset Integrity	711.8		363.0		1,172.9		736.3
Total external revenue	$	4,856.1	$	4,810.1	$	9,280.0	$	9,358.8

Intercompany revenue for the Maintenance, Modification & Asset Integrity segment, excluded from the amounts shown above, was $123 million and $240 million for the three and six months ended June 30, 2016, respectively, and $108 million and $223 million for the three and six months ended June 30, 2015, respectively.

Segment profit is an earnings measure that the company utilizes to evaluate and manage its business performance. Segment profit is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests excluding: corporate general and administrative expense; interest expense; interest income; domestic and foreign income taxes; other non-operating income and expense items.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Segment Profit (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	125.5	$	229.4	$	307.5	$	447.2
Industrial, Infrastructure & Power	51.4		4.4		63.3		14.1
Government	22.0		17.2		39.1		32.0
Maintenance, Modification & Asset Integrity	31.1		30.8		61.2		64.4
Total segment profit	$	230.0	$	281.8	$	471.1	$	557.7

Industrial, Infrastructure & Power segment profit for the three and six months ended June 30, 2016 and 2015 included the operations of NuScale, which are primarily for research and development activities associated with the licensing and commercialization of small modular nuclear reactor technology. In May 2014, NuScale entered into a cost-sharing agreement with the U.S. Department of Energy (“DOE”) establishing the terms and conditions of a multi-year funding award that allows

23

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

certain qualified expenditures to be reimbursed. NuScale expenses included in the determination of segment profit were $22 million and $48 million for the three and six months ended June 30, 2016, respectively, and $19 million and $36 million for the three and six months ended 30, 2015, respectively. For both 2016 and 2015, NuScale expenses were net of qualified reimbursable expenses of $17 million and $31 million for the three and six month periods, respectively. The company recognizes the cost-sharing award with the DOE, when earned, as a reduction of “Total cost of revenue” on the Condensed Consolidated Statement of Earnings and, correspondingly, as an increase to segment profit in the period for which the related costs are recognized.

A reconciliation of total segment profit to net earnings attributable to Fluor Corporation is as follows:

	Three Months Ended						Six Months Ended
Reconciliation of Total Segment Profit to Net Earnings	June 30,						June 30,
Attributable to Fluor Corporation (in millions)	2016			2015			2016			2015
Total segment profit	$	230.0		$	281.8		$	471.1		$	557.7
Corporate general and administrative expense	(52.6		)	(47.8		)	(107.7		)	(88.9		)
Interest income (expense), net	(14.2		)	(7.4		)	(25.7		)	(14.9		)
Income tax expense	(61.4		)	(78.1		)	(131.6		)	(161.3		)
Net earnings attributable to Fluor Corporation	$	101.8		$	148.5		$	206.1		$	292.6

Total assets by segment are as follows:

	June 30,		December 31,
Total Assets by Segment (in millions)	2016		2015
Energy, Chemicals & Mining	$	2,493.2	$	1,728.0
Industrial, Infrastructure & Power	734.9		544.2
Government	516.0		495.4
Maintenance, Modification & Asset Integrity	2,106.1		923.8

The increase in total assets in the Energy, Chemicals & Mining segment resulted from the company’s investment in CFHI and increased working capital in support of project execution activities. The increase in total assets in the Industrial, Infrastructure & Power segment resulted from increased working capital in support of project execution activities. The increase in total assets in the Maintenance, Modification & Asset Integrity resulted from the company’s acquisition of Stork.

(17)Acquisition of Stork Holding B.V.

In December 2015, the company signed an agreement to acquire 100 percent of Stork for an aggregate purchase price of €695 million (or approximately $756 million), including the assumption of debt and other liabilities. Stork, based in the Netherlands, is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets.

On March 1, 2016 (“the acquisition date”), the company completed the Stork acquisition and paid €276 million (or approximately $300 million) in cash consideration. The company borrowed €200 million (or approximately $217 million) under its $1.7 billion Revolving Loan and Letter of Credit Facility, and paid €76 million (or approximately $83 million) of cash on hand to initially finance the Stork acquisition. The €200 million borrowed under the $1.7 billion Revolving Loan and Letter of Credit Facility was subsequently repaid from the net proceeds of the 2016 Notes as discussed in Note 10.

In conjunction with the acquisition, the company assumed Stork’s outstanding debt obligations, including the Stork Notes, borrowings under a €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective

24

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility that is available to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%.

The initial accounting for assets acquired and liabilities assumed in connection with the Stork acquisition is incomplete as of the filing date of this Form 10-Q. Third party valuations for property, plant and equipment, intangible assets and liabilities, and pension obligations are still underway; and the company is continuing to assess deferred taxes, certain tax positions and other liabilities related to the acquisition. Therefore, the amounts recognized in the financial statements for the business combination have been determined provisionally. The aggregate purchase price noted above has been preliminarily allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired, totaling €411 million (or approximately $447 million), has been preliminarily recorded as goodwill.

The company has made certain changes to the preliminary purchase price allocation since the initial estimates reported in the first quarter of 2016. These changes primarily relate to the following:

·Identifiable intangible assets, which were previously aggregated with goodwill, have been separately reported at their estimated fair value of €167 million (or approximately $181 million).

·Deferred taxes were adjusted by €47 million (or approximately $51 million) primarily to record the deferred tax impact of valuation adjustments associated with identifiable intangible assets.

·Property, plant and equipment was adjusted by €8 million (or approximately $9 million) to reflect its estimated fair value.

·Certain other assets and liabilities have been adjusted to reflect their estimated fair values or due to balance sheet reclassifications. Such adjustments were insignificant.

·Goodwill has been adjusted by €120 million (or approximately $131 million) to reflect all of the changes to the purchase price allocation noted above.

Adjustments to the Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2016 related to the income effects that would have been recognized in previous periods if the adjustments to provisional amounts were recognized as of the acquisition date were not significant.

25

FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. The following table summarizes the company’s updated preliminary estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date:

(in thousands)	In EUR			In USD
Cash and cash equivalents	€	54,441		$	59,204
Accounts and notes receivable	167,894			182,585
Contract work in progress	102,717			111,705
Other current assets	58,162			63,251
Property, plant and equipment	159,511			173,468
Investments	8,417			9,153
Intangible assets(1)	166,814			181,410
Goodwill(2)	411,413			447,411
Other assets	900			979
Trade accounts payable	(113,898		)	(123,864		)
Advance billings on contracts	(21,364		)	(23,234		)
Other accrued liabilities	(195,228		)	(212,311		)
Revolving credit facility and other borrowings	(400,228		)	(435,248		)
Long-term debt	(15,295		)	(16,633		)
Deferred taxes, net	(35,213		)	(38,294		)
Noncurrent liabilities	(64,989		)	(70,676		)
Noncontrolling interests	(8,241		)	(8,962		)
Net assets acquired	€	275,813		$	299,944

(1)Acquired intangible assets consist primarily of customer relationships and trade names. A third party valuation is currently underway to determine the fair value of identifiable intangible assets and their useful lives.

(2)Goodwill represents the excess of the purchase price over the fair value of the underlying net assets acquired. Factors contributing to the goodwill balance include the acquired established workforce and the estimated future synergies associated with the combined operations. Of the total goodwill recorded in conjunction with the Stork acquisition, none is expected to be deductible for tax purposes. The goodwill recognized in conjunction with the Stork acquisition has been reported in the Maintenance, Modification & Asset Integrity segment.

Since the acquisition date, revenue and earnings from Stork of $391 million and $4 million for the three months ended June 30, 2016, respectively, and $512 million and $7 million for the six months ended June 30, 2016, respectively, have been included on the Condensed Consolidated Statement of Earnings. Integration costs of $5 million and $11 million for the three and six months ended June 30, 2016, respectively, and transaction costs of $1 million and $11 million for the three and six months ended June 30, 2016, respectively, were included in corporate general and administrative expense.

The following pro forma financial information reflects the Stork acquisition as if it had occurred on January 1, 2015 and includes adjustments for debt refinancing and transaction costs.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Pro forma revenue	$	4,856,117	$	5,244,396	$	9,509,653	$	10,194,460
Pro forma net earnings attributable to Fluor Corporation	102,354		147,464		203,817		284,999

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FLUOR CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED

(18)Discontinued Operations

During the first half of 2015, the company made payments totaling $306 million to settle certain lead exposure cases associated with the divested lead business of St. Joe Minerals Corporation and The Doe Run Company in Herculaneum, Missouri, which the company sold in 1994. The company has filed suit against the buyer seeking indemnification for all liabilities arising from these lead exposures cases.

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FLUOR CORPORATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements and notes and the company’s December 31, 2015 Annual Report on Form 10-K. For purposes of reviewing this document, “segment profit” is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests excluding: corporate general and administrative expense; interest expense; interest income; domestic and foreign income taxes; other non-operating income and expense items.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made herein, including statements regarding the company’s projected revenue and earnings levels, cash flow and liquidity, new awards and backlog levels and the implementation of strategic initiatives are forward-looking in nature. We wish to caution readers that forward-looking statements, including disclosures which use words such as the company “believes,” “anticipates,” “expects,” “estimates” and similar statements are subject to various risks and uncertainties which could cause actual results of operations to differ materially from expectations. Factors potentially contributing to such differences include, among others:

·The cyclical nature of many of the markets the company serves, including our commodity-based business lines, and our vulnerability to downturns;

·The company’s failure to receive anticipated new contract awards and the related impact on revenue, earnings, staffing levels and cost;

·Difficulties or delays incurred in the execution of contracts, or failure to accurately estimate the resources and time necessary for our contracts, resulting in cost overruns or liabilities, including those caused by the performance of our clients, subcontractors, suppliers and joint venture or teaming partners;

·Failure of our joint venture partners to perform their venture obligations, which could impact the success of those ventures and impose additional financial and performance obligations on us, resulting in reduced profits or losses;

·Failure to obtain favorable results in existing or future litigation or dispute resolution proceedings (including claims for indemnification), or claims against project owners, subcontractors or suppliers;

·Client delays or defaults in making payments;

·Intense competition in the global engineering, procurement and construction industry, which can place downward pressure on our contract prices and profit margins;

·Current economic conditions affecting our clients, partners, subcontractors and suppliers, which may result in decreased capital investment or expenditures, or a failure to make anticipated increased capital investment or expenditures, by the company’s clients or other financial difficulties by our partners, subcontractors or suppliers;

·Cybersecurity breaches of our systems and information technology;

·Failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects;

·Liabilities arising from faulty services that could result in significant professional or product liability, warranty or other claims;

·Failure of our suppliers or subcontractors to provide supplies or services at the agreed-upon levels or times;

·Client cancellations of, or scope adjustments to, existing contracts and the related impacts on staffing levels and cost;

·The risks associated with acquisitions, dispositions or other investments, including the failure to successfully integrate acquired businesses;

·Changes in global business, economic (including currency risk), political and social conditions;

·Civil unrest, security issues, labor conditions and other unforeseeable events in the countries in which we do business, resulting in unanticipated losses;

·Repercussions of events beyond our control, such as severe weather conditions, that may significantly affect operations, result in higher cost or subject the company to liability claims by our clients;

·Failure of our employees, agents or partners to comply with laws, which could result in harm to our reputation and reduced profits or losses;

·The potential impact of certain tax matters including, but not limited to, those from foreign operations and the ongoing audits by tax authorities;

·Possible systems and information technology interruptions or the failure to adequately protect intellectual property rights;

·The impact of anti-bribery and international trade laws and regulations;

·The impact of past and future environmental, health and safety regulations including climate change regulations;

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·The failure to be adequately indemnified for our nuclear services;

·Foreign exchange risks;

·The inability to hire and retain qualified personnel;

·Failure to maintain safe work sites;

·The availability of credit and restrictions imposed by credit facilities, both for the company and our clients, suppliers, subcontractors or other partners;

·Possible limitations of bonding or letter of credit capacity;

·The company’s ability to secure appropriate insurance;

·Restrictions on possible transactions imposed by our charter documents and Delaware law.

Any forward-looking statements that we may make are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those anticipated by us. Any forward-looking statements are subject to the risks, uncertainties and other factors that could cause actual results of operations, financial condition, cost reductions, acquisitions, dispositions, financing transactions, operations, expansion, consolidation and other events to differ materially from those expressed or implied in such forward-looking statements.

Due to known and unknown risks, the company’s actual results may differ materially from its expectations or projections. While most risks affect only future cost or revenue anticipated by the company, some risks may relate to accruals that have already been reflected in earnings. The company’s failure to receive payments of accrued amounts or incurrence of liabilities in excess of amounts previously recognized could result in a charge against future earnings. As a result, the reader is cautioned to recognize and consider the inherently uncertain nature of forward-looking statements and not to place undue reliance on them.

Additional information concerning these and other factors can be found in the company’s press releases and periodic filings with the Securities and Exchange Commission, including the discussion under the heading “Item 1A. — Risk Factors” in the company’s Form 10-K filed February 18, 2016. These filings are available publicly on the SEC’s website at http://www.sec.gov, on the company’s website at http://investor.fluor.com or upon request from the company’s Investor Relations Department at (469) 398-7220. The company cannot control such risk factors and other uncertainties, and in many cases, cannot predict the risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. These risks and uncertainties should be considered when evaluating the company and deciding whether to invest in its securities. Except as otherwise required by law, the company undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

RESULTS OF OPERATIONS

Summary

Consolidated revenue of $4.9 billion and $9.3 billion for the three and six months ended June 30, 2016, respectively, was essentially flat when compared to consolidated revenue of $4.8 billion and $9.4 billion for the three and six months ended June 30, 2015. During both periods, revenue growth in the Industrial, Infrastructure & Power, Government and Maintenance, Modification & Asset Integrity segments were offset by revenue declines in the Energy, Chemicals & Mining segment. The revenue growth in both periods resulted primarily from increased project execution activities for several power projects, as well as revenue contributions from the Stork acquisition. Revenue in the Energy, Chemicals & Mining segment decreased in both periods due to reduced levels of project execution activities in the mining and metals business line and for a large upstream project and certain chemical projects that were completed or nearing completion in the prior year periods.

Net earnings attributable to Fluor Corporation were $102 million and $206 million for the three and six months ended June 30, 2016, respectively, compared to net earnings attributable to Fluor Corporation of $149 million and $293 million, respectively, for the corresponding periods of 2015. The three and six month periods of 2016 reflect lower earnings contributions from the Energy, Chemicals & Mining segment compared to the prior year periods, partially offset by higher contributions from power projects in the Industrial, Infrastructure & Power segment. Net earnings attributable to Fluor Corporation were also affected by higher corporate general and administrative expenses, primarily associated with the Stork acquisition.

The effective tax rates for the three and six months ended June 30, 2016 were 33.8 percent and 35.5 percent, respectively, compared to 32.7 percent and 33.1 percent for the corresponding periods of 2015. The higher effective rates for the three and six months ended June 30, 2016 were primarily due to unfavorable impacts of foreign losses without benefits and the prior periods being favorably impacted by a benefit for an IRS settlement. Both periods benefitted from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company.

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Diluted earnings per share were $0.72 and $1.46 for the three and six months ended June 30, 2016, respectively, compared to $1.00 and $1.96 for the corresponding periods of 2015.

The company’s results reported by foreign subsidiaries with non-U.S. dollar functional currencies are affected by foreign currency volatility. When the U.S. dollar appreciates against the non-U.S. dollar functional currencies of these subsidiaries, the company’s reported revenue, cost and earnings, after translation into U.S. dollars, are lower than what they would have been had the U.S. dollar depreciated against the same foreign currencies or if there had been no change in the exchange rates.

The Energy, Chemicals & Mining segment remains well positioned for new project activity in downstream, petrochemical and select upstream markets; however, declining oil prices since the latter part of 2014 have affected the timing of new awards and the pace of execution on certain existing projects. The mining and metals business has continued to slow as major capital investment decisions by most mining customers have been deferred.

Consolidated new awards were $6.4 billion and $11.1 billion for the three and six months ended June 30, 2016, respectively,  compared to new awards of $4.3 billion and $8.7 billion for the three and six months ended June 30, 2015. The Industrial, Infrastructure & Power and Government segments were the major contributors to the new award activity in the first half of 2016. Approximately 28 percent of consolidated new awards for the six months ended June 30, 2016 were for projects located outside of the United States compared to 63 percent for the first six months of 2015.

Consolidated backlog as of June 30, 2016 was $47.3 billion compared to $41.6 billion as of June 30, 2015. The increase in backlog was primarily due to new awards booked after the second quarter of 2015 in the Industrial, Infrastructure & Power segment. As of June 30, 2016, approximately 55 percent of consolidated backlog related to projects outside of the United States compared to 66 percent as of June 30, 2015. Although backlog reflects business which is considered to be firm, cancellations or scope adjustments may occur. Backlog is adjusted to reflect any known project cancellations, revisions to project scope and cost, and deferrals, as appropriate.

On March 1, 2016, the company acquired 100 percent of Stork Holding B.V. (“Stork”) for an aggregate purchase price of €695 million (or approximately $756 million), including the assumption of debt and other liabilities. Stork, based in the Netherlands, is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets. The company paid €276 million (or approximately $300 million) in cash consideration. The operations of Stork are reported in the Maintenance, Modification & Asset Integrity segment below. See Note 17 to the Condensed Consolidated Financial Statements for a further discussion of the acquisition.

In February 2016, the company made an initial cash investment of $350 million in COOEC Fluor Heavy Industries Co., Ltd. (“CFHI”), a joint venture in which the company has a 49% ownership interest and Offshore Oil Engineering Co., Ltd., a subsidiary of China National Offshore Oil Corporation, has 51% ownership interest. Through CFHI, the two companies own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. An additional investment of $140 million will be made in the future.

During the first quarter of 2016, the company changed the composition of its reportable segments to better reflect the diverse end markets that the company serves. The company now reports its operating results in four reportable segments as follows: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government; and Maintenance, Modification & Asset Integrity. Segment operating information and assets for 2015 have been recast to reflect these changes. See Note 16 to the Condensed Consolidated Financial Statements for a further discussion of the company’s reportable segments.

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Energy, Chemicals & Mining

Revenue and segment profit for the Energy, Chemicals & Mining segment are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Revenue	$	2,476.4	$	3,263.1	$	4,919.9	$	6,245.8
Segment profit	125.5		229.4		307.5		447.2

Revenue for the three and six months ended June 30, 2016 decreased by 24 percent and 21 percent, respectively, compared to the corresponding periods in 2015, primarily due to a significant decline in volume of the mining and metals business line, including the completion of a large mining project. The revenue decline was also driven by reduced volume from several projects that were completed or nearing completion in the prior year periods, including certain large chemicals projects and an upstream oil sands facility in Canada. This revenue decline was partially offset by an increase in project execution activities for numerous downstream projects across various regions.

Segment profit for the three and six months ended June 30, 2016 decreased by 45 percent and 31 percent respectively, compared to the corresponding periods in 2015. The decrease in segment profit was primarily due to reduced contributions from the mining and metals business line, upstream projects that were completed or nearing completion in the prior year, including a coal bed methane project in Australia, and current period forecast revisions on two projects. These declines were partially offset by increased contributions from project execution activities for numerous downstream projects across various regions. Segment profit margin for the three and six months ended June 30, 2016 was 5.1 percent and 6.3 percent, respectively compared to 7.0 percent and 7.2 percent for the corresponding periods in 2015. The decrease in segment profit margin during both periods was attributable to the same factors affecting revenue and segment profit.

New awards for the three and six months ended June 30, 2016 were $1.2 billion and $1.8 billion, compared to $2.8 billion and $6.2 billion for the corresponding periods of 2015. New awards in the current quarter include an award for a bauxite mine project in Guinea. Backlog of $25.1 billion as of June 30, 2016 decreased from $30.0 billion as of June 30, 2015. The reduction in backlog resulted from new award activity being outpaced by work performed. The continued decline in oil prices since the latter part of 2014 has affected the timing of new awards and pace of execution on certain existing projects. The mining and metals business line also continues to experience the deferral of major capital investment decisions by some mining customers as a result of softening commodity demand.

Total assets in the segment were $2.5 billion as of June 30, 2016 compared to $1.7 billion as of December 31, 2015. The increase in total assets primarily resulted from the company’s investment in CFHI and increased working capital in support of project execution activities. For further discussion of such agreement, see “Liquidity and Financial Condition” below.

Industrial, Infrastructure & Power

Revenue and segment profit for the Industrial, Infrastructure & Power segment are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Revenue	$	1,010.0	$	580.9	$	1,843.3	$	1,127.6
Segment profit	51.4		4.4		63.3		14.1

Revenue for the three and six months ended June 30, 2016 increased by 74 percent and 63 percent, respectively, compared to the three and six months ended June 30, 2015 primarily due to increased project execution activities in the power business line for several projects in the early stages of project execution, including two nuclear projects and several gas-fired power plants in the southeastern United States. The revenue growth during the six month period was slightly offset by reduced project execution activities for the life sciences and advanced manufacturing business line resulting from projects nearing completion.

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Segment profit for the three and six months ended June 30, 2016 significantly increased from the corresponding periods in 2015, primarily due to higher contributions associated with the project execution activities for several power business line projects in the early stages of project execution. This increase in segment profit during the six month period was partially offset by reduced project execution activities in the infrastructure business line related to projects nearing completion and an increase in NuScale expenses, net of qualified reimbursable expenditures. Segment profit margin for the three and six months ended June 30, 2016 was 5.1 percent and 3.4 percent compared to 0.7 percent and 1.2 percent for the corresponding periods in 2015. The increases in segment profit margin were principally driven by the same factors affecting segment profit.

The Industrial, Infrastructure & Power segment includes the operations of NuScale, which are primarily research and development activities. In May 2014, NuScale entered into a Cooperative Agreement establishing the terms and conditions of a funding award totaling $217 million under the DOE’s Small Modular Reactor Licensing Technical Support Program. This cost-sharing award requires NuScale to use the DOE funds to cover first-of-a-kind engineering costs associated with small modular reactor design development and certification. The DOE is to provide cost reimbursement for up to 43 percent of qualified expenditures incurred during the period from June 1, 2014 to May 31, 2019. The company recognizes the cost-sharing award as a reduction of “Total cost of revenue” on the Condensed Consolidated Statement of Earnings and, correspondingly, as an increase to segment profit in the period for which the related costs are recognized. NuScale expenses, net of qualified reimbursable expenditures, included in the determination of segment profit, were $22 million and $48 million, respectively, for the three and six months ended June 30, 2016 compared to $19 million and $36 million, respectively, for the three and six months ended June 30, 2015.

New awards for the three and six months ended June 30, 2016 were $3.4 billion and $4.8 billion, compared to $93 million and $622 million for the corresponding periods of 2015. New awards for the current quarter were primarily in the infrastructure business line and included the Purple Line Light Rail Transit Project in Maryland, the Port Access Road Project in South Carolina and an award on a combined-cycle power plant in Greensville County, Virginia. Backlog increased to $12.7 billion as of June 30, 2016 compared to $4.4 billion as of June 30, 2015 primarily due to the new awards discussed above.

Total segment assets were $735 million as of June 30, 2016 compared to $544 million as of December 31, 2015. The increase in total assets in the Industrial, Infrastructure & Power segment resulted from increased working capital in support of project execution activities.

Government

Revenue and segment profit for the Government segment are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Revenue	$	657.9	$	603.1	$	1,343.9	$	1,249.1
Segment profit	22.0		17.2		39.1		32.0

Revenue for the three and six months ended June 30, 2016 increased 9 percent and 8 percent, respectively, compared to the same periods in 2015. The revenue growth in both periods was due to the commencement of project execution activities for the recently awarded Idaho Cleanup Project Core Contract (“Idaho Core”) and increased project execution activities for the Paducah Gaseous Diffusion Plant Project and the Savannah River Site Management and Operating Project. These increases were partially offset by a continued reduction in project execution activities for LOGCAP IV.

Segment profit for the three and six months ended June 30, 2016 increased 28 percent and 22 percent, respectively, compared to the corresponding periods in 2015. Segment profit increases during both periods resulted primarily from the continued implementation of the company’s cost optimization efforts as well as increased contributions from construction projects within the services business line. However, segment profit continues to be negatively affected by the reduced project execution activities for LOGCAP IV, as well as continued pressure on the environmental and nuclear business line margins. Segment profit margin for the three and six months ended June 30, 2016  was 3.3 percent and 2.9 percent, respectively, compared to 2.9 percent and 2.6 percent for the corresponding prior year periods. These increases were substantially due to the factors noted above that affected revenue and segment profit.

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New awards for the three and six months ended June 30, 2016 were $1.2 billion and $3.5 billion, compared to $726 million and $800 million for the corresponding periods of 2015. This increase was primarily driven by incremental awards for existing long-term nuclear decommissioning contracts. New awards for the current quarter also included LOGCAP IV task order awards. Backlog as of June 30, 2016 increased to $5.8 billion compared to $4.3 billion as of June 30, 2015 due to the previously mentioned first quarter award of the Idaho Core contract and incremental awards on existing long-term nuclear decommissioning contracts. Total backlog included $3.2 billion and $1.9 billion of unfunded government contracts as of June 30, 2016 and 2015, respectively.

Total assets in the Government segment were $516 million as of June 30, 2016 compared to $495 million as of December 31, 2015.

Maintenance, Modification & Asset Integrity

Revenue and segment profit for the Maintenance, Modification & Asset Integrity segment are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Revenue	$	711.8	$	363.0	$	1,172.9	$	736.3
Segment profit	31.1		30.8		61.2		64.4

Revenue for the three and six months ended June 30, 2016 increased by 96 percent and 59 percent, respectively, compared to the three and six months ended June 30, 2015. Revenue in 2016 includes four months of revenue associated with the acquisition of the Stork business, which closed on March 1, 2016. The increase in revenue from Stork during both periods was partially offset by lower revenue for the equipment business line, which experienced volume declines in Latin America and North America. The year to date increase in revenue was also affected by a lower level of project execution activities for the power services business line during the first quarter.

Segment profit for the three months ended June 30, 2016 remained flat when compared to the same period in the prior year. Increased segment profit contribution from Stork was offset by reduced segment profit associated with the volume declines in the equipment and power services business lines. Segment profit for the six months ended June 30, 2016 decreased 5 percent compared to the same period in 2015. Increased segment profit contribution from the four months of ownership of Stork was more than offset by reduced segment profit associated with the volume declines in the equipment and power services business lines. Segment profit margin for the three and six months ended June 30, 2016 was 4.4 percent and 5.2 percent, respectively, compared to 8.5 percent and 8.7 percent for the three and six months ended June 30, 2015, principally driven by the inclusion of Stork in 2016, and reduced profit margins in the power services business.

New awards for the three and six months of 2016 were $664 million and $1.1 billion, respectively, compared to $604 million and $1.1 billion for the corresponding periods of 2015. Backlog of $3.7 billion as of June 30, 2016 increased from $2.8 billion as of June 30, 2015. The increase in backlog is primarily due to the inclusion of backlog assumed in the Stork acquisition.

The total assets were $2.1 billion as of June 30, 2016, compared to $924 million as of December 31, 2015. The increase in total assets resulted from the company’s acquisition of Stork.

Other

Corporate general and administrative expense for the three and six months ended June 30, 2016 was $53 million and $108 million, respectively, compared to $48 million and $89 million for the three and six months ended June 30, 2015, respectively. The increase in corporate general and administrative expense for the three month period was primarily attributable to integration activities associated with the Stork acquisition. The increase for the six month period was primarily attributable to transaction costs and integration activities associated with the Stork acquisition. Net interest expense was $14 million and $26 million for the three and six months ended June 30, 2016, respectively, compared to $7 million and $15 million during the corresponding periods of 2015. The increases were primarily due to interest associated with debt assumed in the Stork acquisition and the €500 million of 1.750% Senior Notes issued in March 2016. Income tax expense for the three and six months ended June 30, 2016 and 2015 is discussed above under “— Summary.”

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RECENT ACCOUNTING PRONOUNCEMENTS

See Note 2 of the Notes to Condensed Consolidated Financial Statements.

LITIGATION AND MATTERS IN DISPUTE RESOLUTION

See Note 13 of the Notes to Condensed Consolidated Financial Statements.

LIQUIDITY AND FINANCIAL CONDITION

Liquidity is provided by available cash and cash equivalents and marketable securities, cash generated from operations, credit facilities and access to capital markets. The company has committed and uncommitted lines of credit totaling $6.0 billion, which may be used for revolving loans and letters of credit. The company believes that for at least the next 12 months, cash generated from operations, along with its unused credit capacity of $4.0 billion and substantial cash position, is sufficient to support operating requirements. However, the company regularly reviews its sources and uses of liquidity and may pursue opportunities to increase its liquidity position. The company’s financial strategy and consistent performance have earned it strong credit ratings, resulting in competitive advantage and continued access to the capital markets. As of June 30, 2016, the company was in compliance with all its covenants related to its debt agreements.

Cash Flows

Cash and cash equivalents were $1.6 billion as of June 30, 2016 compared to $1.9 billion as of December 31, 2015. Cash and cash equivalents combined with current and noncurrent marketable securities were $1.9 billion and $2.4 billion as of June 30, 2016 and December 31, 2015, respectively. Cash and cash equivalents are held in numerous accounts throughout the world to fund the company’s global project execution activities. Non-U.S. cash and cash equivalents amounted to $929 million and $1.3 billion as of June 30, 2016 and December 31, 2015, respectively. Non-U.S. cash and cash equivalents exclude deposits of U.S. legal entities that are either swept into overnight, offshore accounts or invested in offshore, short-term time deposits, to which there is unrestricted access.

In evaluating its liquidity needs, the company considers cash and cash equivalents held by its consolidated VIEs (joint ventures and partnerships). These amounts (which totaled $379 million and $290 million as of June 30, 2016 and December 31, 2015, respectively, as reflected on the Condensed Consolidated Balance Sheet) were not necessarily readily available for general purposes. In its evaluation, the company also considers the extent to which the current balance of its advance billings on contracts (which totaled $738 million and $754 million as of June 30, 2016 and December 31, 2015, respectively, as reflected on the Condensed Consolidated Balance Sheet) is likely to be sustained or consumed over the near term for project execution activities and the cash flow requirements of its various foreign operations. In some cases, it may not be financially efficient to move cash and cash equivalents between countries due to statutory dividend limitations and/or adverse tax consequences. The company did not consider any cash to be permanently reinvested overseas as of June 30, 2016 and December 31, 2015 and, as a result, has accrued the U.S. deferred tax liability on foreign earnings, as appropriate.

Operating Activities

Cash flows from operating activities result primarily from earnings sources and are affected by changes in operating assets and liabilities which consist primarily of working capital balances for projects. Working capital levels vary from period to period and are primarily affected by the company’s volume of work. These levels are also impacted by the mix, stage of completion and commercial terms of engineering and construction projects, as well as the company’s execution of its projects within budget. Working capital requirements also vary by project and relate to clients in various industries and locations throughout the world. Most contracts require payments as the projects progress. The company evaluates the counterparty credit risk of third parties as part of its project risk review process. The company maintains adequate reserves for potential credit losses and generally such losses have been minimal and within management’s estimates. Additionally, certain projects receive advance payments from clients. A normal trend for these projects is to have higher cash balances during the initial phases of execution which then level out toward the end of the construction phase. As a result, the company’s cash position is reduced as customer advances are worked off, unless they are replaced by advances on other projects. The company maintains cash reserves and borrowing facilities to provide additional working capital in the event that a project’s net operating cash outflows exceed its available cash balances.

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During the first half of 2016, working capital increased primarily due to increases in accounts receivable and contract work in progress partially offset by an increase in accounts payable. Specific factors related to these drivers include:

·Increases in accounts receivable, contract work in progress and accounts payable due to the Stork acquisition.

·An increase in accounts receivable in the Energy, Chemicals & Mining segment, which resulted primarily from normal billing activities for a chemicals project.

·Increases in contract work in progress for both the Energy, Chemicals & Mining and Industrial, Infrastructure & Power segments which were the result of normal project execution activities for several projects.

·Increases in accounts payable for both the Energy, Chemicals & Mining and Industrial, Infrastructure & Power segments, which resulted primarily from normal invoicing and payment activities.

During the first half of 2015, working capital increased primarily due to an increase in prepaid income taxes and a decrease in accounts payable partially offset by a decrease in accounts receivable. Specific factors related to these drivers include:

·A decrease in accounts payable in the Energy, Chemicals & Mining segment. The lower accounts payable balance in 2015 resulted from invoicing and payment activities for numerous projects including an oil sands facility in Canada and a coal bed methane gas project in Australia.

·A decrease in accounts receivable in the Energy, Chemicals & Mining segment, primarily related to collections for the coal bed methane gas project in Australia.

Cash provided by operating activities was $91 million for the six months ended June 30, 2016 compared to $204 million for the corresponding period of the prior year. The decrease in free cash generated from operating activities resulted primarily from a significantly larger increase in working capital in 2016 compared to 2015.

The company contributed $11 million into its international defined benefit pension plans during the six months ended June 30, 2016 compared to $2 million during the corresponding period of the prior year. The company currently expects to contribute between $15 million and $20 million during 2016, which is expected to be in excess of the minimum funding required.

During 2014, the company recorded a loss from discontinued operations in connection with the reassessment of estimated loss contingencies related to the previously divested lead business of St. Joe Minerals Corporation and The Doe Run Company in Herculaneum, Missouri. In October 2014, the company entered into a settlement agreement with counsel for a number of plaintiffs, and in January 2015, the company paid $306 million pursuant to the settlement agreement.

Investing Activities

Cash utilized by investing activities amounted to $573 million and $87 million for the six months ended June 30, 2016 and 2015, respectively. The primary investing activities included purchases, sales and maturities of marketable securities; capital expenditures; disposals of property, plant and equipment; business acquisitions; and investments in partnerships and joint ventures.

The company holds cash in bank deposits and marketable securities which are governed by the company’s investment policy. This policy focuses on, in order of priority, the preservation of capital, maintenance of liquidity and maximization of yield. These investments include money market funds which invest in U.S. Government-related securities, bank deposits placed with highly-rated financial institutions, repurchase agreements that are fully collateralized by U.S. Government-related securities, high-grade commercial paper and high quality short-term and medium-term fixed income securities. During the six months ended June 30, 2016 and 2015, proceeds from sales and maturities of marketable securities exceeded purchases of such securities by $130 million and $38 million, respectively. The company held combined current and noncurrent marketable securities of $289 million and $418 million as of June 30, 2016 and December 31, 2015, respectively.

Capital expenditures of $107 million and $133 million for the six months ended June 30, 2016 and 2015, respectively, primarily related to construction equipment associated with equipment operations in the Maintenance, Modification & Asset Integrity segment, as well as expenditures for facilities and investments in information technology. Proceeds from the disposal of property, plant and equipment of $39  million and $55 million during the first half of 2016 and 2015, respectively, primarily related to the disposal of construction equipment associated with the equipment operations in the Maintenance, Modification & Asset Integrity segment.

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On March 1, 2016, the company acquired 100 percent of Stork for an aggregate purchase price of €695 million (or approximately $756 million), including the assumption of debt and other liabilities. Stork, based in the Netherlands, is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets. The company paid €276 million (or approximately $300 million) in cash consideration. The company borrowed €200 million (or approximately $217 million) under its $1.7 billion Revolving Loan and Letter of Credit Facility, and paid €76 million (or approximately $83 million) of cash on hand to initially finance the Stork acquisition. The €200 million borrowed under the $1.7 billion Revolving Loan and Letter of Credit Facility was subsequently repaid from the net proceeds of the 2016 Notes as discussed in Note 10 to the Condensed Consolidated Financial Statements.

The company continues to make investments in partnerships and joint ventures primarily for the execution of single contracts or projects. Investments in unconsolidated partnerships and joint ventures were $401 million and $47 million during the six months ended June 30, 2016 and 2015, respectively. Investments during the six months ended June 30, 2016 included an initial cash investment of $350 million in COOEC Fluor Heavy Industries Co., Ltd. (“CFHI”), a joint venture in which the company has a 49% ownership interest and Offshore Oil Engineering Co., Ltd., a subsidiary of China National Offshore Oil Corporation, has 51% ownership interest. Through CFHI, the two companies own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. An additional investment of $140 million will be made in the future.

Financing Activities

Cash provided by financing activities of $168 million during the six months ended June 30, 2016 and cash utilized by financing activities of $356 million during the six months ended June 30, 2015 included company stock repurchases, company dividend payments to stockholders, proceeds from the issuance of senior notes, repayments of debt, distributions paid to holders of noncontrolling interests, and borrowings and repayment under revolving lines of credit.

Cash utilized by financing activities during the six months ended June 30, 2016 and 2015 included the repurchase and cancellation of 202,650 and 3,722,676 shares of the company’s common stock for $10 million and $214 million, respectively, under its stock repurchase program.

Quarterly cash dividends are typically paid during the month following the quarter in which they are declared. Therefore, dividends declared in the fourth quarter of 2015 were paid in the first quarter of 2016. Quarterly cash dividends of $0.21 per share were declared in the second quarter of 2016 and 2015. The payment and level of future cash dividends is subject to the discretion of the company’s Board of Directors.

In March 2016, the company issued €500 million of 1.750% Senior Notes (the “2016 Notes”) due March 21, 2023 and received proceeds of €497 million (or approximately $553 million), net of underwriting discounts. Interest on the 2016 Notes is payable annually on March 21 of each year, beginning on March 21, 2017. Prior to December 21, 2022, the company may redeem the 2016 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after December 21, 2022, the company may redeem the 2016 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. Additionally, the company may redeem the 2016 Notes at any time upon the occurrence of certain changes in U.S. tax laws at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In November 2014, the company issued $500 million of 3.5% Senior Notes (the “2014 Notes”) due December 15, 2024 and received proceeds of $491 million, net of underwriting discounts. Interest on the 2014 Notes is payable semi-annually on June 15 and December 15 of each year, and began on June 15, 2015. Prior to September 15, 2024, the company may redeem the 2014 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after September 15, 2024, the company may redeem the 2014 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In September 2011, the company issued $500 million of 3.375% Senior Notes (the “2011 Notes”) due September 15, 2021 and received proceeds of $492 million, net of underwriting discounts. Interest on the 2011 Notes is payable semi-annually on March 15 and September 15 of each year, and began on March 15, 2012. The company may, at any time, redeem the 2011 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture.

For the 2016 Notes, the 2014 Notes and the 2011 Notes, if a change of control triggering event occurs, as defined by the terms of the respective indentures, the company will be required to offer to purchase applicable notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of redemption. The company is generally not limited under the indentures governing the 2016 Notes, the 2014 Notes and the 2011 Notes in its ability to incur additional indebtedness provided the company is in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions.

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In conjunction with the acquisition of Stork on March 1, 2016, the company assumed Stork’s outstanding debt obligations, including its 11.0% Super Senior Notes due 2017 (the ‘‘Stork Notes’’), borrowings under a €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled during the three months ended March 31, 2016. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility that is available to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%.

Distributions paid to holders of noncontrolling interests represent cash outflows to partners of consolidated partnerships or joint ventures created primarily for the execution of single contracts or projects. Distributions paid were $24 million and $42 million during the six months ended June 30, 2016 and 2015, respectively. Distributions in 2016 primarily related to two transportation joint venture projects in the United States. Distributions in 2015 primarily related to a mining joint venture project in Australia and a transportation joint venture project in the United States.

Effect of Exchange Rate Changes on Cash

Unrealized translation gains and losses resulting from changes in functional currency exchange rates are reflected in the cumulative translation component of accumulated other comprehensive loss. During the six months ended June 30, 2016, some major foreign currencies weakened against the U.S. dollar resulting in unrealized translation losses of $26 million, of which $9 million related to cash held by foreign subsidiaries. During the six months ended June 30, 2015, most major foreign currencies weakened against the U.S. dollar resulting in unrealized translation losses of $57 million, of which $30 million related to cash held by foreign subsidiaries. The cash held in foreign currencies will primarily be used for project-related expenditures in those currencies, and therefore the company’s exposure to exchange gains and losses is generally mitigated.

Off-Balance Sheet Arrangements

Guarantees and Commitments

As of June 30, 2016, the company had a combination of committed and uncommitted lines of credit totaling $6.0 billion that may be used for revolving loans and letters of credit. As of June 30, 2016, letters of credit and borrowings totaling $2.0 billion were outstanding under these committed and uncommitted lines of credit. The committed lines of credit include a $1.7 billion Revolving Loan and Letter of Credit Facility and a $1.8 billion Revolving Loan and Letter of Credit Facility. Both facilities mature in February 2021. The company may utilize up to $1.75 billion in the aggregate of the combined $3.5 billion committed lines of credit for revolving loans, which may be used for acquisitions and/or general purposes. Each of the credit facilities may be increased up to an additional $500 million subject to certain conditions, and contain customary financial and restrictive covenants, including a maximum ratio of consolidated debt to tangible net worth of one-to-one and a cap on the aggregate amount of debt of the greater of $750 million or €750 million for the company’s subsidiaries. Borrowings under both facilities, which may be denominated in USD, EUR, GBP or CAD, bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin.

In connection with the Stork acquisition, the company assumed a €110 million Super Senior Revolving Credit Facility that bore interest at EURIBOR plus 3.75%. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility which may be used for revolving loans, bank guarantees, letters of credit and to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%. The €125 million Revolving Credit Facility was included in committed lines of credit as of June 30, 2016. Outstanding borrowings under this facility amounted to €110 million (or approximately $122 million) as of June 30, 2016.

Letters of credit are provided in the ordinary course of business primarily to indemnify the company’s clients if the company fails to perform its obligations under its contracts. As an alternative to letters of credit, surety bonds are used as a form of credit enhancement.

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In the ordinary course of business, the company enters into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated and consolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The performance guarantees have various expiration dates ranging from mechanical completion of the project being constructed to a period extending beyond contract completion in certain circumstances. The maximum potential amount of future payments that the company could be required to make under outstanding performance guarantees, which represents the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts, was estimated to be $21.7 billion as of June 30, 2016. Amounts that may be required to be paid in excess of estimated cost to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete. In those cases where costs exceed the remaining amounts payable under the contract, the company may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors for claims. The company assessed its performance guarantee obligation as of June 30, 2016 and December 31, 2015 in accordance with ASC 460, “Guarantees,” and the carrying value of the liability was not material.

Financial guarantees, made in the ordinary course of business in certain limited circumstances, are entered into with financial institutions and other credit grantors and generally obligate the company to make payment in the event of a default by the borrower. These arrangements generally require the borrower to pledge collateral to support the fulfillment of the borrower’s obligation.

Variable Interest Entities

In the normal course of business, the company forms partnerships or joint ventures primarily for the execution of single contracts or projects. The company evaluates each partnership and joint venture to determine whether the entity is a VIE. If the entity is determined to be a VIE, the company assesses whether it is the primary beneficiary and needs to consolidate the entity.

For further discussion of the company’s VIEs, see Note 15 to the Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to market risk in the first half of 2016. Accordingly, the disclosures provided in the Annual Report on Form 10-K for the year ended December 31, 2015 remain current.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on their evaluation as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act) are effective as required by paragraph (b) of Rule 13a-15 or Rule 15d-15 of the Exchange Act.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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FLUOR CORPORATION

CHANGES IN CONSOLIDATED BACKLOG

UNAUDITED

	Three Months Ended
	June 30,
(in millions)	2016			2015
Backlog — beginning of period	$	45,989.5		$	41,194.8
New awards	6,431.8			4,268.4
Adjustments and cancellations, net(1)	(341.9		)	813.5
Work performed	(4,757.7		)	(4,684.7		)
Backlog — end of period	$	47,321.7		$	41,592.0

	Six Months Ended
	June 30,
(in millions)	2016			2015
Backlog — beginning of period	$	44,726.1		$	42,481.5
New awards	11,113.2			8,716.1
Acquisition of Stork	1,533.7			—
Adjustments and cancellations, net(1)	(982.2		)	(502.0		)
Work performed	(9,069.1		)	(9,103.6		)
Backlog — end of period	$	47,321.7		$	41,592.0

(1)Adjustments and cancellations, net resulted primarily from project scope reductions, as well as exchange rate fluctuations.

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PART II:  OTHER INFORMATION

Item 1. Legal Proceedings

Fluor and its subsidiaries, as part of their normal business activities, are parties to a number of legal proceedings and other matters in various stages of development. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest information available. We disclose material pending legal proceedings pursuant to Securities and Exchange Commission rules and other pending matters as we may determine to be appropriate.

For information on matters in dispute, see Note 14 to the Consolidated Financial Statements included in the company’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on February 18, 2016, and Note 13 to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

There have been no material changes from our risk factors as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c)The following table provides information about purchases by the company during the quarter ended June 30, 2016 of equity securities that are registered by the company pursuant to Section 12 of the Exchange Act.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased under the Plans or Program(1)
April 1, 2016 – April 30, 2016	—	$	—	—	11,610,219
May 1, 2016 – May 31, 2016	—	—		—	11,610,219
June 1, 2016 – June 30, 2016	—	—		—	11,610,219
Total	—	$	—	—

(1)The share repurchase program was originally announced on November 3, 2011 for 12,000,000 shares and has been amended since then to increase the size of the program by an aggregate 34,000,000 shares, most recently in February 2016 with an increase of 10,000,000 shares. The company continues to repurchase shares from time to time in open market transactions or privately negotiated transactions, including through pre-arranged trading programs, at its discretion, subject to market conditions and other factors and at such time and in amounts that the company deems appropriate.

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Item 6.           Exhibits

EXHIBIT INDEX

Exhibit	Description
3.1	Amended and Restated Certificate of Incorporation of the registrant (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on May 8, 2012).
3.2	Amended and Restated Bylaws of the registrant (incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed on February 9, 2016).
4.1	Senior Debt Securities Indenture between Fluor Corporation and Wells Fargo Bank, National Association, as trustee, dated as of September 8, 2011 (incorporated by reference to Exhibit 4.3 to the registrant’s Current Report on Form 8-K filed on September 8, 2011).
4.2	First Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, as trustee, dated as of September 13, 2011 (incorporated by reference to Exhibit 4.4 to the registrant’s Current Report on Form 8-K filed on September 13, 2011).
4.3	Second Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, as trustee, dated as of June 22, 2012 (incorporated by reference to Exhibit 4.2 to the registrant’s Form S-3ASR filed on June 22, 2012).
4.4	Third Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, as trustee, dated as of November 25, 2014 (incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed on November 25, 2014).
4.5	Fourth Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, as trustee, dated as of March 21, 2016 (incorporated by reference to Exhibit 4.3 to the registrant’s Current Report on Form 8-K filed on March 21, 2016).
10.1	Fluor Corporation 2003 Executive Performance Incentive Plan, as amended and restated as of March 30, 2005 (incorporated by reference to Exhibit 10.15 to the registrant’s Quarterly Report on Form 10-Q filed on May 5, 2005).
10.2	Form of Compensation Award Agreements for grants under the Fluor Corporation 2003 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.16 to the registrant’s Quarterly Report on Form 10-Q filed on November 9, 2004).
10.3	Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on May 3, 2013).
10.4	Form of Stock Option Agreement under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.28 to the registrant’s Quarterly Report on Form 10-Q filed on May 10, 2010).
10.5	Form of Option Agreement under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.26 to the registrant’s Quarterly Report on Form 10-Q filed on April 30, 2015).
10.6	Form of Value Driver Incentive Award Agreement (for the senior team) under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.24 to the registrant’s Quarterly Report on Form 10-Q filed on April 30, 2015).
10.7	Form of Value Driver Incentive Award Agreement (for the senior team, with a post-vesting holding period) under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.7 to the registrant’s Quarterly Report on Form 10-Q filed on May 5, 2016).
10.8	Form of Value Driver Incentive Award Agreement (for non-senior executives) under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.25 to the registrant’s Quarterly Report on Form 10-Q filed on April 30, 2015).
10.9	Form of Value Driver Incentive Award Agreement (cash-based, for non-senior executives) under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.9 to the registrant’s Quarterly Report on Form 10-Q filed on May 5, 2016).
10.10	Form of Restricted Stock Unit Agreement (for the senior team, with a post-vesting holding period) under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.10 to the registrant’s Quarterly Report on Form 10-Q filed on May 5, 2016).

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10.11	Form of Restricted Stock Unit Agreement under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.27 to the registrant’s Quarterly Report on Form 10-Q filed on April 30, 2015).
10.12	Form of Non-U.S. Stock Growth Incentive Award Agreement under the Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.28 to the registrant’s Quarterly Report on Form 10-Q filed on April 30, 2015).
10.13	Fluor Executive Deferred Compensation Plan, as amended and restated effective April 21, 2003 (incorporated by reference to Exhibit 10.5 to the registrant’s Annual Report on Form 10-K filed on February 29, 2008).
10.14	Fluor 409A Executive Deferred Compensation Program, as amended and restated effective January 1, 2014 (incorporated by reference to Exhibit 10.13 to the registrant’s Annual Report on Form 10-K filed on February 18, 2014).
10.15	Fluor Executives’ Supplemental Benefit Plan (incorporated by reference to Exhibit 10.8 to the registrant’s Annual Report on Form 10-K filed on February 29, 2008).
10.16	Executive Severance Plan (incorporated by reference to Exhibit 10.7 to the registrant’s Annual Report on Form 10-K filed on February 22, 2012).
10.17	Summary of Fluor Corporation Non-Management Director Compensation.*
10.18	Fluor Corporation 2014 Restricted Stock Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.1 to the registrant’s Registration Statement on Form S-8 filed on May 1, 2014).
10.19	Form of Restricted Stock Unit Agreement under the Fluor Corporation 2014 Restricted Stock Plan for Non-Employee Directors.*
10.20	Fluor Corporation Deferred Directors’ Fees Program, as amended and restated effective January 1, 2002 (incorporated by reference to Exhibit 10.9 to the registrant’s Annual Report on Form 10-K filed on March 31, 2003).
10.21	Fluor Corporation 409A Director Deferred Compensation Program, as amended and restated effective as of January 1, 2015 (incorporated by reference to Exhibit 10.11 to the registrant’s Annual Report on Form 10-K filed on February 18, 2015).
10.22	Directors’ Life Insurance Summary (incorporated by reference to Exhibit 10.12 to the registrant’s Registration Statement on Form 10/A (Amendment No. 1) filed on November 22, 2000).
10.23	Form of Indemnification Agreement entered into between the registrant and each of its directors and executive officers (incorporated by reference to Exhibit 10.21 to the registrant’s Annual Report on Form 10-K filed on February 25, 2009).
10.24	Form of Change in Control Agreement entered into between the registrant and each of its executive officers (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on June 29, 2010).
10.25	$1,800,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., the Lenders thereunder, BNP Paribas, as Administrative Agent and an Issuing Lender, Bank of America, N.A., as Syndication Agent, and Citibank, N.A. and The Bank of Tokyo - Mitsubishi UFJ, Ltd., as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on March 2, 2016).
10.26	$1,700,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., the Lenders thereunder, BNP Paribas, as Administrative Agent and an Issuing Lender, Bank of America, N.A., as Syndication Agent, and Citibank, N.A. and The Bank of Tokyo - Mitsubishi UFJ, Ltd., as Co-Documentation Agents (incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-Q filed on March 2, 2016).
31.1	Certification of Chief Executive Officer of Fluor Corporation.*
31.2	Certification of Chief Financial Officer of Fluor Corporation.*
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.*
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.*

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101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.*

* New exhibit filed with this report.

Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2016 and 2015, (ii) the Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2016 and 2015, (iii) the Condensed Consolidated Balance Sheet as of June 30, 2016 and December 31, 2015, and (iv) the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 and 2015.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		FLUOR CORPORATION
Date:	August 4, 2016	/s/ Biggs C. Porter
		Biggs C. Porter
		Executive Vice President and Chief Financial Officer
Date:	August 4, 2016	/s/ Robin K. Chopra
		Robin K. Chopra
		Senior Vice President and Controller (Chief Accounting Officer)

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EX-10.17

Exhibit 10.17

Summary of Fluor Corporation Non-Management Director Compensation

Cash Compensation

Annual Retainer:	$	115,000
Annual Committee Chair Retainer:
Audit Committee Chair:	$	20,000
Organization and Compensation Committee Chair:	$	15,000
Governance Committee Chair:	$	15,000
Lead Independent Director Retainer:	$	30,000
Non-Committee Chair Members of the Executive Committee:	$	10,000

Retainers are paid quarterly in cash and can be deferred at the director’s election under the Fluor Corporation 409A Director Deferred Compensation Program (the “Deferred Compensation Program”). Effective January 1, 2013, directors no longer receive a 25% premium on the deferred amount deemed invested in company stock via the Deferred Compensation Program.

Equity Compensation

Each non-management director receives an annual grant of restricted stock units with a total market value of $150,000. The grant is made on the date of the annual meeting of shareholders. Restrictions on annual grants vest immediately on the first anniversary of the date of grant.  Directors can defer such units at their election under the Deferred Compensation Program.

Other Information

Fluor Corporation reimburses non-management directors for their travel and related expenses in connection with attending Board meetings and Board-related activities. Directors also receive life insurance ($75,000 in coverage) and business travel accident insurance ($250,000 in coverage). Directors’ charitable contributions that meet the guidelines of the Company’s employee charitable matching gift program are eligible for matching funds from the Company in an amount up to $5,000 per year.

EX-10.19

Exhibit 10.19

FORM OF RESTRICTED STOCK UNIT AGREEMENT

This Restricted Stock Unit Agreement (“Agreement”) entered into as of <<GRANT DATE>> (the “Grant Date”), by and between Fluor Corporation, a Delaware corporation (“Company”), and <<NAME>> (“Grantee” or “you”) evidences and confirms the grant to Grantee of a Restricted Stock Unit Award (“RSU Award”) by the Committee (as defined in the Plan) under the Fluor Corporation 2014 Restricted Stock Plan for Non-Employee Directors (as amended from time to time, the “Plan”).

Section 1.AWARD SUBJECT TO PLAN

This RSU Award is made subject to all of the terms and conditions of this Agreement and the Plan, including any terms, rules or determinations made by the Committee, pursuant to its administrative authority under the Plan and such further terms as are set forth in the Plan that are applicable to awards thereunder, including without limitation provisions on adjustment of awards, non-transferability, satisfaction of tax requirements and compliance with other laws.  Capitalized terms used in this Agreement and not defined herein have the meaning set forth in the Plan.

Section 2.RESTRICTED STOCK UNITAWARD

The Company hereby awards Grantee <<NUMBER>> restricted stock units (“RSUs”) pursuant to the Plan, subject to the terms and conditions set forth herein.  Each RSU represents the right to receive one share of Company common stock, par value $.01 per share (“Shares”), pursuant to this RSU Award, subject to the terms and conditions set forth herein.  Subject to the provisions of Section 3 and Section 4 hereof, upon the issuance to Grantee of Shares hereunder, Grantee shall also receive cash in an amount equivalent to any dividends or distributions paid or made by the Company from the date of this RSU Award to the date of the issuance of the Shares with respect to an equivalent number of Shares so issued. All or a portion of this RSU Award, as well as associated dividends, may be deferred by Grantee pursuant to the terms of the Fluor Corporation 409A Director Deferred Compensation Program.

Section 3.RESTRICTIONS ON SALE OR OTHER TRANSFER

Each RSU awarded to Grantee pursuant to this Agreement shall be subject to forfeiture to the Company and each RSU may not be sold or otherwise transferred except pursuant to the following provisions:

(a)The RSUs shall be held in book entry form by the Company until (1) the restrictions set forth herein lapse in accordance with the provisions of Section 4, at which time the RSUs will be converted to Shares, or (2) the RSUs are forfeited pursuant to Section 3(c) hereof.

(b)No such RSUs may be sold, transferred or otherwise alienated or hypothecated so long as such RSUs are subject to the restrictions provided for in this Agreement.

(c)All of Grantee’s RSUs remaining subject to any restriction hereunder shall be forfeited to, and be acquired at no cost by, the Company in the event that the Committee determines that any of the following circumstances has occurred:

(i)Grantee has engaged in knowing and willful misconduct in connection with his service as a member of the Board;

(ii)Grantee, without the consent of the Committee, at any time during his period of service as a member of the Board, becomes a principal of, serves as a director of, or owns a material interest in, any business that directly or through a controlled subsidiary competes with the Company or any Subsidiary; or

(iii)Grantee does not stand for re-election to, or voluntarily quits or resigns from, the Board for any reason, except under circumstances that would cause such restrictions to lapse under Section 4.

1

Section 4.LAPSE OF RESTRICTIONS

Provided you are serving as a non-employee director of the Company at the time, the restrictions set forth in Section 3 hereof shall lapse (provided that such RSUs have not previously been forfeited pursuant to the provisions of paragraph (c) of Section 3 hereof) with respect to the number of RSUs as specified below upon the occurrence of any of the following events:

(a)100% of the RSUs subject to this RSU Award shall vest on <<VEST DATE>>;

(b)Notwithstanding the foregoing, the restrictions set forth in Section 3 hereof shall lapse in their entirety if the RSUs have been held by Grantee for at least six months, and:

(i)the Grantee attains the age for mandatory retirement of members of the Board as specified in the Bylaws of the Company (as applied to the Grantee on the date of Grantee’s retirement from the Board) or obtains Board approval of early retirement in accordance with Section 5.5 of the Plan;

(ii)the Grantee dies or becomes permanently and totally disabled, which shall have the meaning give to it in Appendix A to this Agreement, as determined in accordance with applicable Company personnel policies; or

(iii)upon a Change of Control, which shall have the meaning given to it in Appendix A to this Agreement.

Section 5.TAX WITHHOLDING

Regardless of any action the Company takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Grantee acknowledges and agrees that the ultimate liability for all Tax-Related Items legally due by the Grantee is and remains the Grantee’s responsibility and that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this grant of RSUs, including the grant and vesting of the RSUs, subsequent delivery of Shares and/or cash related to such RSUs or the subsequent sale of any Shares acquired pursuant to such RSUs and receipt of any dividend equivalent payments (if any) and (ii) does not commit to structure the terms or any aspect of this grant of RSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items. The Grantee shall pay the Company any amount of Tax-Related Items that the Company may be required to withhold as a result of the Grantee’s participation in the Plan or the Grantee’s receipt of RSUs or of Shares pursuant to RSUs. Further, if the Grantee is subject to tax in more than one jurisdiction, the Grantee acknowledges that the Company may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Grantee authorizes the Company to withhold all applicable Tax-Related Items legally payable by the Grantee by (1) withholding a number of Shares otherwise deliverable equal to the Retained Share Amount (as defined below), (2) withholding from the Grantee’s cash compensation paid by the Company; and/or (3) withholding from proceeds of the sale of Shares acquired upon settlement of the RSUs, either through a voluntary sale or through a sale arranged by the Company (on the Grantee’s behalf pursuant to this authorization).  The “Retained Share Amount” shall mean a number of Shares equal to the quotient of the minimum statutory tax withholding obligation of the Company triggered by the RSUs on the relevant date, divided by the fair market value of one Share on the relevant date or as otherwise provided in the Plan.

Grantee acknowledges and understands that Grantee should consult a tax advisor regarding Grantee’s tax obligations prior to such settlement or disposition.

2

Section 6.SEVERABILITY

In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

Section 7.DATA PROTECTION

THE GRANTEE HEREBY EXPLICITLY AND UNAMBIGUOUSLY CONSENTS TO THE COLLECTION, USE AND TRANSFER, IN ELECTRONIC OR OTHER FORM, OF THE GRANTEE’S PERSONAL DATA AS DESCRIBED IN THIS DOCUMENT BY AND AMONG, AS APPLICABLE, THE COMPANY AND ITS SUBSIDIARIES FOR THE EXCLUSIVE PURPOSE OF IMPLEMENTING, ADMINISTERING AND MANAGING THE GRANTEE’S PARTICIPATION IN THE PLAN. THE GRANTEE UNDERSTANDS THAT THE COMPANY AND ITS SUBSIDIARIES HOLD CERTAIN PERSONAL INFORMATION ABOUT THE GRANTEE, INCLUDING, BUT NOT LIMITED TO, NAME, HOME ADDRESS AND TELEPHONE NUMBER, DATE OF BIRTH, SOCIAL SECURITY OR INSURANCE NUMBER OR OTHER IDENTIFICATION NUMBER, SALARY, NATIONALITY, JOB TITLE, ANY SHARES OR DIRECTORSHIPS HELD IN THE COMPANY, DETAILS OF ALL OPTIONS OR ANY OTHER ENTITLEMENT TO SHARES AWARDED, CANCELED, PURCHASED, EXERCISED, VESTED, UNVESTED OR OUTSTANDING IN THE GRANTEE’S FAVOR FOR THE PURPOSE OF IMPLEMENTING, MANAGING AND ADMINISTERING THE PLAN (“DATA”).  THE GRANTEE UNDERSTANDS THAT THE DATA MAY BE TRANSFERRED TO ANY THIRD PARTIES ASSISTING IN THE IMPLEMENTATION, ADMINISTRATION AND MANAGEMENT OF THE PLAN, THAT THESE RECIPIENTS MAY BE LOCATED IN THE GRANTEE’S COUNTRY OR ELSEWHERE, INCLUDING OUTSIDE THE EUROPEAN ECONOMIC AREA, AND THAT THE RECIPIENT COUNTRY MAY HAVE DIFFERENT DATA PRIVACY LAWS AND PROTECTIONS THAN THE GRANTEE’S COUNTRY. THE GRANTEE UNDERSTANDS THAT HE/SHE MAY REQUEST A LIST WITH THE NAMES AND ADDRESSES OF ANY POTENTIAL RECIPIENTS OF THE DATA BY CONTACTING THE LOCAL HUMAN RESOURCES REPRESENTATIVE. THE GRANTEE AUTHORIZES THE RECIPIENTS TO RECEIVE, POSSESS, USE, RETAIN AND TRANSFER THE DATA, IN ELECTRONIC OR OTHER FORM, FOR THE PURPOSES OF IMPLEMENTING, ADMINISTERING AND MANAGING THE GRANTEE’S PARTICIPATION IN THE PLAN, INCLUDING ANY REQUISITE TRANSFER OF SUCH DATA, AS MAY BE REQUIRED TO A BROKER OR OTHER THIRD PARTY WITH WHOM THE GRANTEE MAY ELECT TO DEPOSIT ANY SHARES ACQUIRED UNDER THE PLAN. THE GRANTEE UNDERSTANDS THAT DATA WILL BE HELD ONLY AS LONG AS IS NECESSARY TO IMPLEMENT, ADMINISTER AND MANAGE PARTICIPATION IN THE PLAN. THE GRANTEE UNDERSTANDS THAT HE/SHE MAY, AT ANY TIME, VIEW DATA, REQUEST ADDITIONAL INFORMATION ABOUT THE STORAGE AND PROCESSING OF THE DATA, REQUIRE ANY NECESSARY AMENDMENTS TO THE DATA OR REFUSE OR WITHDRAW THE CONSENTS HEREIN, IN ANY CASE WITHOUT COST, BY CONTACTING THE LOCAL HUMAN RESOURCES REPRESENTATIVE IN WRITING. THE GRANTEE UNDERSTANDS THAT REFUSING OR WITHDRAWING CONSENT MAY AFFECT THE GRANTEE’S ABILITY TO PARTICIPATE IN THE PLAN. FOR MORE INFORMATION ON THE CONSEQUENCES OF REFUSING TO CONSENT OR WITHDRAWING CONSENT, THE GRANTEE UNDERSTANDS THAT HE/SHE MAY CONTACT THE STOCK PLAN ADMINISTRATOR AT THE COMPANY.

Section 8.ACKNOWLEDGMENT AND WAIVER

By accepting this grant of RSUs, the Grantee acknowledges and agrees that:

(a)the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Agreement;

(b)the grant of RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Shares or RSUs, or benefits in lieu of Shares or RSUs, even if Shares or RSUs have been granted repeatedly in the past;

(c)all decisions with respect to future grants, if any, will be at the sole discretion of the Company;

(d)the Grantee is participating voluntarily in the Plan;

(e)RSU awards and resulting benefits are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company;

3

(f)this award of RSUs will not be interpreted to form an employment contract or relationship with the Company;

(g)the future value of the Shares is unknown, may increase or decrease from the date of grant or vesting of the RSUs and cannot be predicted with certainty; and

(h)in consideration of this grant of RSUs, no claim or entitlement to compensation or damages shall arise from termination of this grant of RSUs or diminution in value of this grant of RSUs resulting from termination of the Grantee’s directorship by the Company (for any reason whatsoever) and the Grantee irrevocably releases the Company from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this Agreement, the Grantee shall be deemed irrevocably to have waived any entitlement to pursue such claim.

Section 9.ADDITIONAL LANGUAGE

Appendix A contains additional language regarding Section 409A of the United States Internal Revenue Code.

Section 10.NONTRANSFERABILITY

Grantee acknowledges and agrees that no RSU Award and no other right under the Plan, contingent or otherwise, will be assignable or made subject to any encumbrance, pledge, or charge of any nature.

Section 11.ENFORCEMENT

This Agreement shall be construed, administered and enforced in accordance with the laws of the State of Delaware.

Section 12.EXECUTION OF AWARD AGREEMENT

Please acknowledge your acceptance of the terms and conditions of this Agreement by signing this Agreement and returning it to Executive Compensation.  If you have not signed (either manually or electronically) and returned this Agreement within one month, the Company is not obligated to provide you any benefit hereunder and may refuse to issue Shares to you under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first herein above written.

FLUOR CORPORATION
by:
	Carlos M. Hernandez
	Chief Legal Officer & Secretary
	Grantee

4

APPENDIX A

Compliance with Section 409A of the Internal Revenue Code

(a)           It is intended that the provisions of this Agreement comply with Section 409A of the U.S. Internal Revenue Code (“Section 409A”) and with the exclusion from Section 409A deferred compensation for so-called short-term deferrals, and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes and penalties under Section 409A.

(b)           Neither Grantee nor any of Grantee’s creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Section 409A) payable under this Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to Grantee or for Grantee’s benefit under this Agreement may not be reduced by, or offset against, any amount owing by Grantee to the Company or any of its subsidiaries.

(c)           If, at the time of Grantee’s separation from service (within the meaning of Section 409A), (i) Grantee is a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time) and (ii) the Company shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay it, without interest, on the first business day after such six-month period or, if earlier, upon the Grantee’s death.

(d)           Notwithstanding anything to the contrary contained herein, for the purpose of this Agreement, (i) Grantee shall not be considered permanently and totally disabled unless Grantee is considered disabled in accordance with U.S. Treasury Regulations section 1.409A-3(i)(4), determined as if all permissible provisions of such regulation were in effect, and (ii) a Change of Control of the Company shall not be considered to have occurred unless there occurs a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, as determined in accordance with U.S. Treasury Regulations section 1.409A-3(i)(5).

(e)           Notwithstanding any provision of this Agreement to the contrary, in light of the uncertainty with respect to the proper application of Section 409A, the Company reserves the right to make amendments to this Agreement as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A.  In any case, Grantee shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on Grantee or for Grantee’s account in connection with this Agreement (including, without limitation, any taxes and penalties under Section 409A), and neither the Company nor any of its subsidiaries shall have any obligation to indemnify or otherwise hold Grantee harmless from any or all of such taxes or penalties.

5

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934

I, David T. Seaton, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Fluor Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016	By:	/s/ David T. Seaton
		David T. Seaton
		Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934

I, Biggs C. Porter, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Fluor Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016	By:	/s/ Biggs C. Porter
		Biggs C. Porter
		Executive Vice President and
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(b) OR RULE 15d-14(b)

OF THE SECURITIES EXCHANGE ACT OF 1934

AND 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Fluor Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David T. Seaton, Chairman and Chief Executive Officer of the Company, certify, for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

·the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

·the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2016	By:	/s/ David T. Seaton
		David T. Seaton
		Chairman and Chief Executive Officer

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(b) OR RULE 15d-14(b)

OF THE SECURITIES EXCHANGE ACT OF 1934

AND 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Fluor Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Biggs C. Porter, Executive Vice President and Chief Financial Officer of the Company, certify, for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

·the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

·the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2016	By:	/s/ Biggs C. Porter
		Biggs C. Porter
		Executive Vice President and
		Chief Financial Officer

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document and Entity Information
Entity Registrant Name	FLUOR CORP
Entity Central Index Key	0001124198
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		139,248,369
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

XML

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
TOTAL REVENUE	$ 4,856,117	$ 4,810,106	$ 9,280,006	$ 9,358,755
TOTAL COST OF REVENUE	4,607,868	4,516,125	8,775,935	8,767,314
OTHER (INCOME) AND EXPENSES
Corporate general and administrative expense	52,640	47,785	107,753	88,895
Interest expense	18,719	11,401	33,364	23,569
Interest income	(4,512)	(4,054)	(7,668)	(8,750)
Total cost and expenses	4,674,715	4,571,257	8,909,384	8,871,028
EARNINGS BEFORE TAXES	181,402	238,849	370,622	487,727
INCOME TAX EXPENSE	61,348	78,105	131,557	161,379
NET EARNINGS	120,054	160,744	239,065	326,348
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	18,241	12,237	32,929	33,762
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	$ 101,813	$ 148,507	$ 206,136	$ 292,586
BASIC EARNINGS PER SHARE	$ 0.73	$ 1.02	$ 1.48	$ 1.99
DILUTED EARNINGS PER SHARE	$ 0.72	$ 1.00	$ 1.46	$ 1.96
SHARES USED TO CALCULATE EARNINGS PER SHARE
BASIC (in shares)	139,226	146,261	139,088	146,996
DILUTED (in shares)	140,801	147,921	140,833	148,918
DIVIDENDS DECLARED PER SHARE	$ 0.21	$ 0.21	$ 0.42	$ 0.42

XML

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
NET EARNINGS	$ 120,054	$ 160,744	$ 239,065	$ 326,348
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustment	(38,516)	12,885	(16,180)	(35,839)
Ownership share of equity method investees' other comprehensive income (loss)	8,384	1,653	366	(2,828)
Defined benefit pension and postretirement plan adjustments	1,208	2,677	(2,117)	5,365
Unrealized gain (loss) on derivative contracts	(2,681)	496	921	1,390
Unrealized gain (loss) on available-for-sale securities	265	(235)	1,112	374
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(31,340)	17,476	(15,898)	(31,538)
COMPREHENSIVE INCOME	88,714	178,220	223,167	294,810
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	18,940	11,626	33,684	33,742
COMPREHENSIVE INCOME ATTRIBUTABLE TO FLUOR CORPORATION	$ 69,774	$ 166,594	$ 189,483	$ 261,068

XML

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents ($379,146 and $289,991 related to variable interest entities ("VIEs"))	$ 1,627,054	$ 1,949,886
Marketable securities, current ($67,156 and $70,176 related to VIEs)	125,086	197,092
Accounts and notes receivable, net ($262,090 and $186,833 related to VIEs)	1,676,241	1,203,024
Contract work in progress ($198,397 and $178,826 related to VIEs)	1,796,469	1,376,471
Other current assets ($30,373 and $27,362 related to VIEs)	426,390	378,927
Total current assets	5,651,240	5,105,400
Marketable securities, noncurrent	163,715	220,634
Property, plant and equipment ("PP&E") ((net of accumulated depreciation of $1,084,124 and $1,046,077) (net PP&E of $68,651 and $70,247 related to VIEs))	1,055,902	892,340
Goodwill	567,264	111,646
Investments	748,455	337,930
Deferred taxes	339,206	394,832
Deferred compensation trusts	332,432	360,725
Other assets ($24,616 and $24,141 related to VIEs)	383,253	201,899
TOTAL ASSETS	9,241,467	7,625,406
CURRENT LIABILITIES
Trade accounts payable ($275,511 and $178,139 related to VIEs)	1,714,192	1,266,509
Revolving credit facility and other borrowings	166,081
Advance billings on contracts ($234,097 and $188,484 related to VIEs)	737,663	754,037
Accrued salaries, wages and benefits ($31,672 and $47,526 related to VIEs)	731,393	669,592
Other accrued liabilities ($40,060 and $25,384 related to VIEs)	430,701	245,214
Total current liabilities	3,780,030	2,935,352
LONG-TERM DEBT DUE AFTER ONE YEAR	1,547,459	986,564
NONCURRENT LIABILITIES	630,344	589,991
CONTINGENCIES AND COMMITMENTS
Capital stock
Preferred - authorized 20,000,000 shares ($0.01 par value); none issued
Common - authorized 375,000,000 shares ($0.01 par value); issued and outstanding - 139,243,680 and 139,018,309 shares in 2016 and 2015, respectively	1,392	1,390
Additional paid-in capital	21,441
Accumulated other comprehensive loss	(449,428)	(432,775)
Retained earnings	3,566,143	3,428,732
Total shareholders' equity	3,139,548	2,997,347
Noncontrolling interests	144,086	116,152
Total equity	3,283,634	3,113,499
TOTAL LIABILITIES AND EQUITY	$ 9,241,467	$ 7,625,406

XML

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, plant and equipment, net
Property, plant and equipment, accumulated depreciation	$ 1,084,124	$ 1,046,077
Shareholders' equity
Preferred stock, authorized shares (in shares)	20,000,000	20,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, issued shares (in shares)	0	0
Common stock, authorized shares (in shares)	375,000,000	375,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued shares (in shares)	139,243,680	139,018,309
Common stock, outstanding shares (in shares)	139,243,680	139,018,309
CURRENT ASSETS, VIEs
Cash and cash equivalents	$ 1,627,054	$ 1,949,886
Marketable securities, current	125,086	197,092
Accounts and notes receivable	1,676,241	1,203,024
Contract work in progress	1,796,469	1,376,471
Other current assets ($30,373 and $27,362 related to VIEs)	426,390	378,927
Net property, plant and equipment	1,055,902	892,340
Other noncurrent assets	383,253	201,899
CURRENT LIABILITIES, VIEs
Trade accounts payable	1,714,192	1,266,509
Advance billings on contracts	737,663	754,037
Accrued salaries, wages and benefits	731,393	669,592
Other accrued liabilities	430,701	245,214
Consolidated variable interest entities
CURRENT ASSETS, VIEs
Cash and cash equivalents	379,146	289,991
Marketable securities, current	67,156	70,176
Accounts and notes receivable	262,090	186,833
Contract work in progress	198,397	178,826
Other current assets ($30,373 and $27,362 related to VIEs)	30,373	27,362
Net property, plant and equipment	68,651	70,247
Other noncurrent assets	24,616	24,141
CURRENT LIABILITIES, VIEs
Trade accounts payable	275,511	178,139
Advance billings on contracts	234,097	188,484
Accrued salaries, wages and benefits	31,672	47,526
Other accrued liabilities	$ 40,060	$ 25,384

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$ 239,065	$ 326,348
Adjustments to reconcile net earnings to cash provided (utilized) by operating activities:
Depreciation of fixed assets	101,390	94,695
Amortization of intangibles	7,191	445
(Earnings) loss from equity method investments, net of distributions	13,951	(7,377)
Gain on sale of property, plant and equipment	(10,182)	(18,034)
Amortization of stock-based awards	23,912	27,774
Deferred compensation trust	28,322	35,754
Deferred compensation obligation	10,416	3,169
Deferred taxes	23,972	146,941
Net retirement plan accrual (contributions)	(8,690)	6,968
Changes in operating assets and liabilities	(341,659)	(111,957)
Cash outflows from discontinued operations		(306,490)
Other items	2,856	5,953
Cash provided by operating activities	90,544	204,189
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities	(216,884)	(182,561)
Proceeds from the sales and maturities of marketable securities	346,486	220,728
Capital expenditures	(107,345)	(133,487)
Proceeds from disposal of property, plant and equipment	39,047	54,890
Investments in partnerships and joint ventures	(400,651)	(47,458)
Acquisitions, net of cash acquired	(240,740)
Other items	7,042	911
Cash utilized by investing activities	(573,045)	(86,977)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of common stock	(9,718)	(214,253)
Dividends paid	(59,333)	(63,531)
Proceeds from issuance of 1.75% Senior Notes	552,958
Debt issuance costs	(3,513)
Repayment of Stork Notes, convertible debt and other borrowings	(332,509)	(28,425)
Borrowings under revolving lines of credit	883,750
Repayment of borrowings under revolving lines of credit	(851,594)
Distributions paid to noncontrolling interests	(24,327)	(41,766)
Capital contributions by noncontrolling interests	8,016	2,294
Taxes paid on vested restricted stock	(6,987)	(8,392)
Stock options exercised	3,144	1,162
Other items	8,554	(3,495)
Cash provided (utilized) by financing activities	168,441	(356,406)
Effect of exchange rate changes on cash	(8,772)	(30,171)
Decrease in cash and cash equivalents	(322,832)	(269,365)
Cash and cash equivalents at beginning of period	1,949,886	1,993,125
Cash and cash equivalents at end of period	$ 1,627,054	$ 1,723,760

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical)	Jun. 30, 2016	Mar. 31, 2016
1.750% 2016 Senior Notes
Debt instruments
Debt interest rate (as a percent)	1.75%	1.75%

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Principles of Consolidation

6 Months Ended

Jun. 30, 2016

Principles of Consolidation

Principles of Consolidation

(1)Principles of Consolidation

The Condensed Consolidated Financial Statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States and, therefore, should be read in conjunction with the company’s December 31, 2015 Annual Report on Form 10-K. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and six months ended June 30, 2016 may not necessarily be indicative of results that can be expected for the full year.

The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly its consolidated financial position as of June 30, 2016 and December 31, 2015 and its consolidated results of operations and cash flows for the interim periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Certain amounts in 2015 have been reclassified to conform to the 2016 presentation due to the implementation of new accounting pronouncements discussed below. Segment operating information for 2015 has been recast to reflect changes in the composition of the company’s reportable segments as discussed in Note 16. Management has evaluated all material events occurring subsequent to the date of the financial statements up to the filing date of this Form 10-Q.

The Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2016 include the financial statements of Stork Holding B.V. (“Stork”) since March 1, 2016, the date of acquisition. See Note 17 for a further discussion of the acquisition.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2016

Recent Accounting Pronouncements

Recent Accounting Pronouncements

(2)Recent Accounting Pronouncements

New accounting pronouncements implemented by the company during the first six months of 2016 or requiring implementation in future periods are discussed below or in the related notes, where appropriate.

In the first quarter of 2016, the company adopted Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” on a retrospective basis. This ASU requires entities to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent. As a result of the adoption of ASU 2015-17, deferred tax assets of $173 million were reclassified from current assets to noncurrent assets on the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-17 did not have any impact on the company’s results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of ASU 2015-16 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update),” which clarifies the presentation and measurement of debt issuance costs incurred in connection with line of credit arrangements. The adoption of ASU 2015-15 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” on a prospective basis. This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. The adoption of ASU 2015-05 did not have a material impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” on a retrospective basis. This ASU changes the presentation of debt issuance costs on the balance sheet by requiring entities to present such costs as a direct deduction from the related debt liability rather than as an asset. As a result of the adoption of ASU 2015-03, debt issuance costs of $6 million were reclassified from noncurrent assets to a direct deduction of long-term debt on the Condensed Consolidated Balance Sheet as of December 31, 2015. The adoption of ASU 2015-03 did not have any impact on the company’s results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-02, “Amendments to the Consolidation Analysis.” This ASU amends the consolidation guidance for VIEs and general partners’ investments in limited partnerships and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. The adoption of ASU 2015-02 did not have a material impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” Under this ASU, an entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. The adoption of ASU 2015-01 did not have any impact on the company’s financial position, results of operations or cash flows.

In the first quarter of 2016, the company adopted ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period.” This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The adoption of ASU 2014-12 did not have any impact on the company’s financial position, results of operations or cash flows.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU replace the incurred loss impairment methodology in current practice with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Management does not expect the adoption of ASU 2016-13 to have a material impact on the company’s financial position, results of operations or cash flows.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU is intended to simplify various aspects of the accounting for share-based payment awards, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Management is currently evaluating the impact of adopting ASU 2016-09 on the company’s financial position, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting” which eliminates the requirement to retrospectively apply equity method accounting when an investor obtains significant influence over a previously held investment. ASU 2016-07 is effective for interim and annual reporting periods beginning after December 15, 2016, and should be applied prospectively. Management does not expect the adoption of ASU 2016-07 to have a material impact on the company’s financial position, results of operations or cash flows.

In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” This ASU clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. ASU 2016-05 is effective for interim and annual reporting periods beginning after December 15, 2016. ASU 2016-05 can be applied on either a prospective or modified retrospective basis. Management does not expect the adoption of ASU 2016-05 to have a material impact on the company’s financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU 2016-02, “Leases: Amendments to the FASB Accounting Standards Codification,” which amends the existing guidance on accounting for leases. This ASU requires the recognition of lease assets and lease liabilities on the balance sheet, and the disclosure of key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted and modified retrospective application is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Management is currently evaluating the impact of adopting ASU 2016-02 on the company’s financial position, results of operations or cash flows.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments — Overall — Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to recognize any changes in fair value in net income unless the investments qualify for a practicability exception. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Management does not expect the adoption of ASU 2016-01 to have a material impact on the company’s financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016 and subsequent interim reporting periods. Management does not expect the adoption of ASU 2014-15 to have a material impact on the company’s financial position, results of operations or cash flows.

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and require separate accounting (performance obligations), how variable consideration (which may include change orders and claims) is recognized, whether revenue should be recognized at a point in time or over time and ensuring the time value of money is considered in the transaction price.

As a result of the deferral of the effective date in ASU 2015-14, “Revenue from Contracts with Customers — Deferral of the Effective Date,” the company will now be required to adopt ASU 2014-09 for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of interim and annual reporting periods beginning after December 15, 2016. ASU 2014-09 can be applied either retrospectively to each prior period presented or as a cumulative-effect adjustment as of the date of adoption.

In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the principal versus agent guidance in ASU 2014-09. ASU 2016-08 clarifies how an entity determines whether to report revenue gross or net based on whether it controls a specific good or service before it is transferred to a customer. ASU 2016-08 also reframes the indicators to focus on evidence that an entity is acting as a principal rather than as an agent.

In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends certain aspects of ASU 2014-09. ASU 2016-10 amends how an entity should identify performance obligations for immaterial promised goods or services, shipping and handling activities and promises that may represent performance obligations. ASU 2016-10 also provides implementation guidance for determining the nature of licensing and royalties arrangements.

In May 2016, the FASB issued ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” which also clarifies certain aspects of ASU 2014-09 including the assessment of collectability, presentation of sales taxes, treatment of noncash consideration, and accounting for completed contracts and contract modifications at transition. ASU 2016-12, 2016-10 and 2016-08 are effective upon adoption of ASU 2014-09.

Management is currently evaluating the impact of adopting ASU 2014-09, 2016-08, 2016-10 and 2016-12 on the company’s financial position, results of operations, cash flows and related disclosures. Adoption of these ASUs is expected to affect the manner in which the company determines the unit of account for its projects (i.e., performance obligations). Under existing  guidance, the company typically segments revenue and margin recognition between the engineering and construction phases of its contracts. Upon adoption, the company expects that the entire engineering and construction contract will typically be a single unit of account (a single performance obligation), which will result in a more consistent recognition of revenue and margin over the term of the contract. Management is considering whether to adopt ASU 2014-09 at the required adoption date for the company (January 2018) or earlier (January 2017). The company expects to adopt this new standard using the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption.

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Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2016

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

(3)Other Comprehensive Income (Loss)

The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended June 30, 2016 and 2015 are as follows:

	Three Months Ended									Three Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(61,923	)	$	23,407		$	(38,516	)	$	21,082		$	(8,197	)	$	12,885
Ownership share of equity method investees’ other comprehensive income	13,112			(4,728		)	8,384			1,838			(185		)	1,653
Defined benefit pension and postretirement plan adjustments	1,933			(725		)	1,208			4,283			(1,606		)	2,677
Unrealized gain (loss) on derivative contracts	(4,337		)	1,656			(2,681		)	648			(152		)	496
Unrealized gain (loss) on available-for-sale securities	424			(159		)	265			(375		)	140			(235		)
Total other comprehensive income (loss)	(50,791		)	19,451			(31,340		)	27,476			(10,000		)	17,476
Less: Other comprehensive income (loss) attributable to noncontrolling interests	699			—			699			(611		)	—			(611		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(51,490	)	$	19,451		$	(32,039	)	$	28,087		$	(10,000	)	$	18,087

The tax effects of the components of OCI for the six months ended June 30, 2016 and 2015 are as follows:

	Six Months Ended									Six Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(26,168	)	$	9,988		$	(16,180	)	$	(57,189	)	$	21,350		$	(35,839	)
Ownership share of equity method investees’ other comprehensive income (loss)	1,020			(654		)	366			(4,164		)	1,336			(2,828		)
Defined benefit pension and postretirement plan adjustments	(617		)	(1,500		)	(2,117		)	8,584			(3,219		)	5,365
Unrealized gain on derivative contracts	1,448			(527		)	921			2,062			(672		)	1,390
Unrealized gain on available-for-sale securities	1,779			(667		)	1,112			599			(225		)	374
Total other comprehensive loss	(22,538		)	6,640			(15,898		)	(50,108		)	18,570			(31,538		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	755			—			755			(20		)	—			(20		)
Other comprehensive loss attributable to Fluor Corporation	$	(23,293	)	$	6,640		$	(16,653	)	$	(50,088	)	$	18,570		$	(31,518	)

The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended June 30, 2016 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2016	$	(200,207	)	$	(45,967	)	$	(165,855	)	$	(5,735	)	$	375		$	(417,389	)
Other comprehensive income (loss) before reclassifications	(39,010		)	8,384			—			(3,980		)	325			(34,281		)
Amounts reclassified from AOCI	—			—			1,208			1,094			(60		)	2,242
Net other comprehensive income (loss)	(39,010		)	8,384			1,208			(2,886		)	265			(32,039		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2016	$	(140	)	$	—		$	—		$	(428	)	$	—		$	(568	)
Other comprehensive income before reclassifications	494			—			—			126			—			620
Amounts reclassified from AOCI	—			—			—			79			—			79
Net other comprehensive income	494			—			—			205			—			699
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2016 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2015	$	(222,569	)	$	(37,949	)	$	(162,530	)	$	(9,255	)	$	(472	)	$	(432,775	)
Other comprehensive income (loss) before reclassifications	(16,648		)	366			(4,617		)	(2,184		)	1,135			(21,948		)
Amounts reclassified from AOCI	—			—			2,500			2,818			(23		)	5,295
Net other comprehensive income (loss)	(16,648		)	366			(2,117		)	634			1,112			(16,653		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2015	$	(114	)	$	—		$	—		$	(510	)	$	—		$	(624	)
Other comprehensive income before reclassifications	468			—			—			110			—			578
Amounts reclassified from AOCI	—			—			—			177			—			177
Net other comprehensive income	468			—			—			287			—			755
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

The changes in AOCI balances by component (after-tax) for the three months ended June 30, 2015 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2015	$	(168,660	)	$	(34,917	)	$	(322,457	)	$	(8,131	)	$	348		$	(533,817	)
Other comprehensive income (loss) before reclassifications	13,660			1,653			—			(120		)	(234		)	14,959
Amounts reclassified from AOCI	—			—			2,677			452			(1		)	3,128
Net other comprehensive income (loss)	13,660			1,653			2,677			332			(235		)	18,087
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2015	$	1,848		$	—		$	—		$	(614	)	$	—		$	1,234
Other comprehensive income (loss) before reclassifications	(775		)	—			—			105			—			(670		)
Amounts reclassified from AOCI	—			—			—			59			—			59
Net other comprehensive income (loss)	(775		)	—			—			164			—			(611		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

The changes in AOCI balances by component (after-tax) for the six months ended June 30, 2015 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2014	$	(119,416	)	$	(30,436	)	$	(325,145	)	$	(8,954	)	$	(261	)	$	(484,212	)
Other comprehensive income (loss) before reclassifications	(35,584		)	(2,828		)	—			476			444			(37,492		)
Amounts reclassified from AOCI	—			—			5,365			679			(70		)	5,974
Net other comprehensive income (loss)	(35,584		)	(2,828		)	5,365			1,155			374			(31,518		)
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2014	$	1,328		$	—		$	—		$	(685	)	$	—		$	643
Other comprehensive income (loss) before reclassifications	(255		)	—			—			102			—			(153		)
Amounts reclassified from AOCI	—			—			—			133			—			133
Net other comprehensive income (loss)	(255		)	—			—			235			—			(20		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

The significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Earnings are as follows:

	Location in	Three Months Ended						Six Months Ended
	Condensed Consolidated	June 30,						June 30,
(in thousands)	Statement of Earnings	2016			2015			2016			2015
Component of AOCI:
Defined benefit pension plan adjustments	Various accounts(1)	$	(1,933	)	$	(4,283	)	$	(4,000	)	$	(8,584	)
Income tax benefit	Income tax expense	725			1,606			1,500			3,219
Net of tax		$	(1,208	)	$	(2,677	)	$	(2,500	)	$	(5,365	)
Unrealized loss on derivative contracts:
Commodity and foreign currency contracts	Total cost of revenue	$	(1,412	)	$	(398	)	$	(3,884	)	$	(460	)
Interest rate contracts	Interest expense	(420		)	(420		)	(839		)	(839		)
Income tax benefit (net)	Income tax expense	659			307			1,728			487
Net of tax		(1,173		)	(511		)	(2,995		)	(812		)
Less: Noncontrolling interests	Net earnings attributable to noncontrolling interests	(79		)	(59		)	(177		)	(133		)
Net of tax and noncontrolling interests		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)
Unrealized gain on available-for-sale securities	Corporate general and administrative expense	$	95		$	2		$	36		$	112
Income tax expense	Income tax expense	(35		)	(1		)	(13		)	(42		)
Net of tax		$	60		$	1		$	23		$	70

(1)Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense.

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Income Taxes

6 Months Ended

Jun. 30, 2016

Income Taxes

Income Taxes

(4)Income Taxes

The effective tax rates for the three and six months ended June 30, 2016 were 33.8 percent and 35.5 percent, respectively, compared to 32.7 percent and 33.1 percent for the corresponding periods of 2015. The higher effective rates for the three and six months ended June 30, 2016 were primarily due to unfavorable impacts of foreign losses without benefits and the prior periods being favorably impacted by a benefit for an IRS settlement. Both periods benefitted from earnings attributable to noncontrolling interests for which income taxes are not typically the responsibility of the company.

The company conducts business globally and, as a result, the company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, the Netherlands, South Africa, the United Kingdom and the United States. Although the company believes its reserves for its tax positions are reasonable, the final outcome of tax audits could be materially different, both favorably and unfavorably. With few exceptions, the company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2012.

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Cash Paid for Interest and Taxes

6 Months Ended

Jun. 30, 2016

Cash Paid for Interest and Taxes

Cash Paid for Interest and Taxes

(5)Cash Paid for Interest and Taxes

Cash paid for interest was $38 million and $21 million for the six months ended June 30, 2016 and 2015, respectively. Income tax payments, net of refunds, were $77 million and $115 million during the six-month periods ended June 30, 2016 and 2015, respectively.

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share

Earnings Per Share

(6)Earnings Per Share

Diluted earnings per share (“EPS”) reflects the assumed exercise or conversion of all dilutive securities using the treasury stock method.

The calculations of the basic and diluted EPS for the three and six months ended June 30, 2016 and 2015 are presented below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2016		2015		2016		2015
Net earnings attributable to Fluor Corporation	$	101,813	$	148,507	$	206,136	$	292,586
Basic EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Basic earnings per share	$	0.73	$	1.02	$	1.48	$	1.99
Diluted EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Diluted effect:
Employee stock options, restricted stock units and shares and Value Driver Incentive units	1,575		1,660		1,745		1,742
Conversion equivalent of dilutive convertible debt	—		—		—		180
Weighted average diluted shares outstanding	140,801		147,921		140,833		148,918
Diluted earnings per share	$	0.72	$	1.00	$	1.46	$	1.96
Anti-dilutive securities not included above	4,107		3,499		3,917		3,330

During the six months ended June 30, 2016, the company repurchased and cancelled 202,650 shares of its common stock under its stock repurchase program for $10 million. No shares were repurchased during the three months ended June 30, 2016. During the three and six months ended June 30, 2015, the company repurchased and cancelled 1,782,679 and 3,722,676 shares, respectively, of its common stock under its stock repurchase program for $103 million and $214 million, respectively.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Measurements

Fair Value Measurements

(7)Fair Value Measurements

The fair value hierarchy established by ASC 820, “Fair Value Measurement,” prioritizes the use of inputs used in valuation techniques into the following three levels:

Level 1  —  quoted prices in active markets for identical assets and liabilities

Level 2  —  inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly

Level 3  —  unobservable inputs

The company measures and reports assets and liabilities at fair value utilizing pricing information received from third parties. The company performs procedures to verify the reasonableness of pricing information received for significant assets and liabilities classified as Level 2.

The following table presents, for each of the fair value hierarchy levels required under ASC 820-10, the company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:

	June 30, 2016								December 31, 2015
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents(1)	$	6,526	$	6,526	$	—	$	—	$	19,161	$	19,161	$	—	$	—
Marketable securities, current(2)	49,442		—		49,442		—		87,763		—		87,763		—
Deferred compensation trusts(3)	30,130		30,130		—		—		60,003		60,003		—		—
Marketable securities, noncurrent(4)	163,715		—		163,715		—		220,634		—		220,634		—
Derivative assets(5)
Commodity contracts	138		—		138		—		341		—		341		—
Foreign currency contracts	29,149		—		29,149		—		8,439		—		8,439		—
Liabilities:
Derivative liabilities(5)
Commodity contracts	$	1,549	$	—	$	1,549	$	—	$	2,510	$	—	$	2,510	$	—
Foreign currency contracts	33,034		—		33,034		—		14,138		—		14,138		—

(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period.

(2) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange.

(4) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(5) See Note 8 for the classification of commodity and foreign currency contracts on the Condensed Consolidated Balance Sheet. Commodity and foreign currency contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows.

All of the company’s financial instruments carried at fair value are included in the table above. All of the above financial instruments are available-for-sale securities except for those held in the deferred compensation trusts (which are trading securities) and derivative assets and liabilities. The company has determined that there was no other-than-temporary impairment of available-for-sale securities with unrealized losses, and the company expects to recover the entire cost basis of the securities. The available-for-sale securities are made up of the following security types as of June 30, 2016: money market funds of $7 million, U.S. agency securities of $13 million, U.S. Treasury securities of $90 million and corporate debt securities of $110 million. As of December 31, 2015, available-for-sale securities consisted of money market funds of $19 million, U.S. agency securities of $18 million, U.S. Treasury securities of $102 million and corporate debt securities of $189 million. The amortized cost of these available-for-sale securities is not materially different from the fair value. During the three and six months ended June 30, 2016, proceeds from sales and maturities of available-for-sale securities were $92 million and $214 million, respectively, compared to $20 million and $203 million for the corresponding periods of 2015.

The carrying values and estimated fair values of the company’s financial instruments that are not required to be measured at fair value on the Condensed Consolidated Balance Sheet are as follows:

		June 30, 2016				December 31, 2015
	Fair Value	Carrying		Fair		Carrying		Fair
(in thousands)	Hierarchy	Value		Value		Value		Value
Assets:
Cash(1)	Level 1	$	992,591	$	992,591	$	1,073,756	$	1,073,756
Cash equivalents(2)	Level 2	627,937		627,937		856,969		856,969
Marketable securities, current(3)	Level 2	75,644		75,644		109,329		109,329
Notes receivable, including noncurrent portion(4)	Level 3	25,010		25,010		19,182		19,182
Liabilities:
1.750% Senior Notes(5)	Level 2	$	549,340	$	579,954	$	—	$	—
3.375% Senior Notes(5)	Level 2	495,588		530,435		495,165		509,025
3.5% Senior Notes(5)	Level 2	491,879		536,135		491,399		504,265
Revolving Credit Facility(6)	Level 2	121,803		121,803		—		—
Other borrowings, including noncurrent portion(7)	Level 2	54,930		54,930		—		—

(1) Cash consists of bank deposits. Carrying amounts approximate fair value.

(2) Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments.

(3) Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.

(4) Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment.

(5) The fair value of the 1.750% Senior Notes, 3.375% Senior Notes and 3.5% Senior Notes were estimated based on quoted market prices for similar issues.

(6) Amounts represent borrowings under the company’s €125 million Revolving Credit Facility which expires in April 2017, as discussed in Note 10. The carrying amount of the borrowings under this revolving credit facility approximates fair value because of the short-term maturity.

(7) Other borrowings as of June 30, 2016 primarily represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The majority of these borrowings mature within one year. The carrying amounts of the borrowings under these arrangements approximate fair value because of the short-term maturity.

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Derivatives and Hedging

6 Months Ended

Jun. 30, 2016

Derivatives and Hedging

Derivatives and Hedging

(8)Derivatives and Hedging

The company limits exposure to foreign currency fluctuations in most of its engineering and construction contracts through provisions that require client payments in currencies corresponding to the currencies in which cost is incurred. Certain financial exposure, which includes currency and commodity price risk associated with engineering and construction contracts, currency risk associated with monetary assets and liabilities denominated in nonfunctional currencies and risk associated with interest rate volatility, may subject the company to earnings volatility. In cases where financial exposure is identified, the company generally implements a hedging strategy utilizing derivative instruments as hedging instruments to mitigate the risk. These hedging instruments are designated as either fair value or cash flow hedges in accordance with ASC 815, “Derivatives and Hedging.” The company formally documents its hedge relationships at inception, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. The company also formally assesses, both at inception and at least quarterly thereafter, whether the hedging instruments are highly effective in offsetting changes in the fair value of the hedged items. The fair values of all hedging instruments are recognized as assets or liabilities at the balance sheet date. For fair value hedges, the effective portion of the change in the fair value of the hedging instrument is offset against the change in the fair value of the underlying asset or liability through earnings. For cash flow hedges, the effective portion of the hedging instrument’s gain or loss due to changes in fair value is recorded as a component of AOCI and is reclassified into earnings when the hedged item settles. Any ineffective portion of a hedging instrument’s change in fair value is immediately recognized in earnings. The company does not enter into derivative instruments for speculative purposes. The company maintains master netting arrangements with certain counterparties to facilitate the settlement of derivative instruments; however, the company reports the fair value of derivative instruments on a gross basis.

As of June 30, 2016, the company had total gross notional amounts of $790 million of foreign currency contracts and $6 million of commodity contracts outstanding relating to hedging of engineering and construction contract obligations and monetary assets and liabilities denominated in nonfunctional currencies. The foreign currency contracts are of varying duration, none of which extend beyond December 2019. The commodity contracts are of varying duration, none of which extend beyond December 2017. The impact to earnings due to hedge ineffectiveness was immaterial for the three and six months ended June 30, 2016 and 2015.

The fair values of derivatives designated as hedging instruments under ASC 815 as of June 30, 2016 and December 31, 2015 were as follows:

	Asset Derivatives					Liability Derivatives
	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
(in thousands)	Location	2016		2015		Location	2016		2015
Commodity contracts	Other current assets	$	138	$	326	Other accrued liabilities	$	1,460	$	2,195
Foreign currency contracts	Other current assets	14,707		6,865		Other accrued liabilities	16,587		12,381
Commodity contracts	Other assets	—		15		Noncurrent liabilities	89		315
Foreign currency contracts	Other assets	14,442		1,574		Noncurrent liabilities	16,447		1,757
Total		$	29,287	$	8,780		$	34,583	$	16,648

The pre-tax net gains (losses) recognized in earnings associated with the hedging instruments designated as fair value hedges for the three and six months ended June 30, 2016 and 2015 were as follows:

		Three Months Ended June 30,					Six Months Ended June 30,
Fair Value Hedges (in thousands)	Location of Gain (Loss)	2016			2015		2016			2015
Foreign currency contracts	Corporate general and administrative expense	$	(1,521	)	$	5,237	$	(1,326	)	$	4,083

The pre-tax amount of gain (loss) recognized in earnings on hedging instruments for the fair value hedges noted in the table above offset the amount of gain (loss) recognized in earnings on the hedged items in the same locations on the Condensed Consolidated Statement of Earnings.

The after-tax amount of gain (loss) recognized in OCI associated with the derivative instruments designated as cash flow hedges was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	2016			2015			2016			2015
Commodity contracts	$	298		$	11		$	300		$	(102	)
Foreign currency contracts	(4,278		)	(131		)	(2,484		)	578
Total	$	(3,980	)	$	(120	)	$	(2,184	)	$	476

The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows:

		Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	Location of Gain (Loss)	2016			2015			2016			2015
Commodity contracts	Total cost of revenue	$	(57	)	$	(120	)	$	(177	)	$	(211	)
Foreign currency contracts	Total cost of revenue	(775		)	(70		)	(2,117		)	56
Interest rate contracts	Interest expense	(262		)	(262		)	(524		)	(524		)
Total		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)

As of June 30, 2016, the company also had total gross notional amounts of $8 million of foreign currency contracts and $2 million of commodity contracts outstanding that were not designated as hedging instruments. These contracts primarily related to engineering and construction and operations and maintenance contract obligations denominated in nonfunctional currencies. Recognized gains of $3 million and $0.3 million associated with these contracts were included in Cost of Revenues for the three and six months ended June 30, 2016, respectively.

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Retirement Benefits

6 Months Ended

Jun. 30, 2016

Retirement Benefits

Retirement Benefits

(9)Retirement Benefits

Net periodic pension expense for the company’s defined benefit pension plans included the following components:

	U.S. Pension Plan										Non-U.S. Pension Plans
	Three Months Ended					Six Months Ended					Three Months Ended						Six Months Ended
	June 30,					June 30,					June 30,						June 30,
(in thousands)	2016 (1)		2015			2016 (1)		2015			2016			2015			2016			2015
Service cost	$	—	$	1,700		$	—	$	3,400		$	5,014		$	5,139		$	9,746		$	10,341
Interest cost	—		3,800			—		7,599			6,899			6,648			13,520			13,289
Expected return on assets	—		(5,275		)	—		(10,550		)	(10,258		)	(12,295		)	(20,309		)	(24,600		)
Amortization of prior service cost	—		216			—		433			(198		)	(203		)	(407		)	(409		)
Recognized net actuarial loss	—		2,351			—		4,702			2,130			1,919			4,406			3,858
Net periodic pension expense	$	—	$	2,792		$	—	$	5,584		$	3,587		$	1,208		$	6,956		$	2,479

(1)In December 2015, the company settled the remaining obligations associated with its U.S. defined benefit pension plan. A detailed discussion of the plan settlement is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015.

The company currently expects to contribute between $15 million and $20 million into its non-U.S. defined benefit pension plans during 2016, which is expected to be in excess of the minimum funding required. During the six months ended June 30, 2016, contributions of approximately $11 million were made by the company.

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Financing Arrangements

6 Months Ended

Jun. 30, 2016

Financing Arrangements

Financing Arrangements

(10)Financing Arrangements

As of June 30, 2016, the company had a combination of committed and uncommitted lines of credit totaling $6.0 billion that may be used for revolving loans and letters of credit. As of June 30, 2016, letters of credit and borrowings totaling $2.0 billion were outstanding under these committed and uncommitted lines of credit. The committed lines of credit include a $1.7 billion Revolving Loan and Letter of Credit Facility and a $1.8 billion Revolving Loan and Letter of Credit Facility. Both facilities mature in February 2021. The company may utilize up to $1.75 billion in the aggregate of the combined $3.5 billion committed lines of credit for revolving loans, which may be used for acquisitions and/or general purposes. Each of the credit facilities may be increased up to an additional $500 million subject to certain conditions, and contains customary financial and restrictive covenants, including a maximum ratio of consolidated debt to tangible net worth of one-to-one and a cap on the aggregate amount of debt of the greater of $750 million or €750 million for the company’s subsidiaries. Borrowings under both facilities, which may be denominated in USD, EUR, GBP or CAD, bear interest at rates based on the Eurodollar Rate or an alternative base rate, plus an applicable borrowing margin.

In connection with the Stork acquisition, the company assumed a €110 million Super Senior Revolving Credit Facility that bore interest at EURIBOR plus 3.75%. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility which may be used for revolving loans, bank guarantees, letters of credit and to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%. The €125 million Revolving Credit Facility was included in committed lines of credit as of June 30, 2016. Outstanding borrowings under this facility amounted to €110 million (or approximately $122 million) as of June 30, 2016.

Letters of credit are provided in the ordinary course of business primarily to indemnify the company’s clients if the company fails to perform its obligations under its contracts. As an alternative to letters of credit, surety bonds are used as a form of credit enhancement.

In March 2016, the company issued €500 million of 1.750% Senior Notes (the “2016 Notes”) due March 21, 2023 and received proceeds of €497 million, net of underwriting discounts. Interest on the 2016 Notes is payable annually on March 21 of each year, beginning on March 21, 2017. Prior to December 21, 2022, the company may redeem the 2016 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after December 21, 2022, the company may redeem the 2016 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. Additionally, the company may redeem the 2016 Notes at any time upon the occurrence of certain changes in U.S. tax laws at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In November 2014, the company issued $500 million of 3.5% Senior Notes (the “2014 Notes”) due December 15, 2024 and received proceeds of $491 million, net of underwriting discounts. Interest on the 2014 Notes is payable semi-annually on June 15 and December 15 of each year, and began on June 15, 2015. Prior to September 15, 2024, the company may redeem the 2014 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture. On or after September 15, 2024, the company may redeem the 2014 Notes at 100 percent of the principal amount plus accrued and unpaid interest, if any, to the date of redemption.

In September 2011, the company issued $500 million of 3.375% Senior Notes (the “2011 Notes”) due September 15, 2021 and received proceeds of $492 million, net of underwriting discounts. Interest on the 2011 Notes is payable semi-annually on March 15 and September 15 of each year, and began on March 15, 2012. The company may, at any time, redeem the 2011 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make whole” premium described in the indenture.

For the 2016 Notes, the 2014 Notes and the 2011 Notes, if a change of control triggering event occurs, as defined by the terms of the respective indentures, the company will be required to offer to purchase the applicable notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of redemption. The company is generally not limited under the indentures governing the 2016 Notes, the 2014 Notes and the 2011 Notes in its ability to incur additional indebtedness provided the company is in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions.

In conjunction with the acquisition of Stork on March 1, 2016, the company assumed Stork’s outstanding debt obligations, including its 11.0% Super Senior Notes due 2017 (the ‘‘Stork Notes’’), borrowings under the €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. See Note 17 for a further discussion of the acquisition.

Other borrowings of $55 million as of June 30, 2016 primarily represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork, exclusive of the Stork Notes.

As of June 30, 2016, the company was in compliance with all of the financial covenants related to its debt agreements.

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Stock-Based Plans

6 Months Ended

Jun. 30, 2016

Stock-Based Plans

Stock-Based Plans

(11)Stock-Based Plans

The company’s executive and director stock-based compensation plans are described, and informational disclosures are provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015. In the first half of 2016 and 2015, restricted stock units totaling 553,415 and 546,679, respectively, were granted to executives and directors, at weighted-average per share prices of $46.50 and $59.11, respectively. For the company’s executives, the restricted stock units granted in 2016 and 2015 generally vest ratably over three years. For the company’s directors, the restricted stock units granted in 2016 and 2015 vest or vested on the first anniversary of the grant. During the first half of 2016 and 2015, options for the purchase of 662,001 shares at a weighted-average exercise price of $46.07 per share and 963,288 shares at a weighted-average exercise price of $59.05 per share, respectively, were awarded to executives. The options granted in 2016 and 2015 vest ratably over three years. The options expire ten years after the grant date.

In the first half of 2016 and 2015, performance-based Value Driver Incentive (“VDI”) units totaling 98,684 and 430,970, respectively, were granted to executives at weighted-average per share prices of $46.07 and $59.05, respectively. The number of units is adjusted at the end of each performance period based on the achievement of certain performance criteria. The VDI awards granted in 2016 and 2015 can only be settled in company stock and are accounted for as equity awards in accordance with ASC 718. Both the VDI awards granted in 2016 and 2015 vest after a period of approximately three years. VDI awards granted during 2016 are also subject to a post-vest holding period restriction for the period of three years.

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Noncontrolling Interests

6 Months Ended

Jun. 30, 2016

Noncontrolling Interests.

Noncontrolling Interests

(12)Noncontrolling Interests

The company applies the provisions of ASC 810-10-45, which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net earnings attributable to the parent and to the noncontrolling interests, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated.

As required by ASC 810-10-45, the company has separately disclosed on the face of the Condensed Consolidated Statement of Earnings for all periods presented the amount of net earnings attributable to the company and the amount of net earnings attributable to noncontrolling interests. For the three and six months ended June 30, 2016, net earnings attributable to noncontrolling interests were $18 million and $33 million, respectively. For the three and six months ended June 30, 2015, net earnings attributable to noncontrolling interests were $12 million and $34 million, respectively. Income taxes associated with earnings attributable to noncontrolling interests were immaterial in both periods presented. Distributions paid to noncontrolling interests were $24 million and $42 million for the six months ended June 30, 2016 and 2015, respectively. Capital contributions by noncontrolling interests were $8 million and $2 million for the six months ended June 30, 2016 and 2015, respectively.

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Contingencies and Commitments

6 Months Ended

Jun. 30, 2016

Contingencies and Commitments

Contingencies and Commitments

(13)Contingencies and Commitments

The company and certain of its subsidiaries are subject to litigation, claims and other commitments and contingencies arising in the ordinary course of business. Although the asserted value of these matters may be significant, the company currently does not expect that the ultimate resolution of any open matters will have a material adverse effect on its consolidated financial position or results of operations.

Other Matters

The company has made claims arising from the performance under its contracts. The company recognizes revenue, but not profit, for certain claims (including change orders in dispute and unapproved change orders in regard to both scope and price) when it is determined that recovery of incurred costs is probable and the amounts can be reliably estimated. Under ASC 605-35-25, these requirements are satisfied when (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. The company periodically evaluates its position and the amounts recognized in revenue with respect to all its claims. As of June 30, 2016 and December 31, 2015, the company had recorded $49 million and $30 million, respectively, of claim revenue for costs incurred to date and such costs are included in contract work in progress. Additional costs, which will increase the claim revenue balance over time, are expected to be incurred in future quarters. The company believes the ultimate recovery of incurred and future costs related to these claims is probable in accordance with ASC 605-35-25.

From time to time, the company enters into significant contracts with the U.S. government and its agencies. Government contracts are subject to audits and investigations by government representatives with respect to the company’s compliance with various restrictions and regulations applicable to government contractors, including but not limited to the allowability of costs incurred under reimbursable contracts. In connection with performing government contracts, the company maintains reserves for estimated exposures associated with these matters.

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Guarantees

6 Months Ended

Jun. 30, 2016

Guarantees

Guarantees

(14)Guarantees

In the ordinary course of business, the company enters into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated and consolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The performance guarantees have various expiration dates ranging from mechanical completion of the project being constructed to a period extending beyond contract completion in certain circumstances. The maximum potential amount of future payments that the company could be required to make under outstanding performance guarantees, which represents the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts, was estimated to be $21.7 billion as of June 30, 2016. Amounts that may be required to be paid in excess of estimated cost to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For lump-sum or fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete. In those cases where costs exceed the remaining amounts payable under the contract, the company may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors for claims. The company assessed its performance guarantee obligation as of June 30, 2016 and December 31, 2015 in accordance with ASC 460,  “Guarantees,” and the carrying value of the liability was not material.

Financial guarantees, made in the ordinary course of business in certain limited circumstances, are entered into with financial institutions and other credit grantors and generally obligate the company to make payment in the event of a default by the borrower. These arrangements generally require the borrower to pledge collateral to support the fulfillment of the borrower’s obligation.

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Partnerships and Joint Ventures

6 Months Ended

Jun. 30, 2016

Partnerships and Joint Ventures

Partnerships and Joint Ventures

(15)Partnerships and Joint Ventures

In the normal course of business, the company forms partnerships or joint ventures primarily for the execution of single contracts or projects. The majority of these partnerships or joint ventures are characterized by a 50 percent or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. Many of the partnership and joint venture agreements provide for capital calls to fund operations, as necessary. Receivables related to work performed for unconsolidated partnerships and joint ventures included in “Accounts and notes receivable, net” on the Condensed Consolidated Balance Sheet were $308 million and $132 million as of June 30, 2016 and December 31, 2015, respectively.

For unconsolidated partnerships and joint ventures in the construction industry, the company generally recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Earnings and uses the one-line equity method of accounting on the Condensed Consolidated Balance Sheet, which is a common application of ASC 810-10-45-14 in the construction industry. The equity method of accounting is also used for other investments in entities where the company has significant influence. The company’s investments in unconsolidated partnerships and joint ventures accounted for under these methods amounted to $673 million and $292 million as of June 30, 2016 and December 31, 2015, respectively, and were classified under “Investments” and “Other accrued liabilities” on the Condensed Consolidated Balance Sheet.

In August 2015, the company entered into an agreement to form COOEC Fluor Heavy Industries Co., Ltd. (“CFHI”), a joint venture in which the company has a 49% ownership interest and Offshore Oil Engineering Co., Ltd., a subsidiary of China National Offshore Oil Corporation, has a 51% ownership interest. Through CFHI, the two companies own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. In February 2016, the company made an initial cash investment of $350 million and an additional investment of $140 million will be made in the future.

Variable Interest Entities

In accordance with ASC 810, “Consolidation,” the company assesses its partnerships and joint ventures at inception to determine if any meet the qualifications of a variable interest entity (“VIE”). The company considers a partnership or joint venture a VIE if either (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, the company reassesses its initial determination of whether the partnership or joint venture is a VIE. The majority of the company’s partnerships and joint ventures qualify as VIEs because the total equity investment is typically nominal and not sufficient to permit the entity to finance its activities without additional subordinated financial support.

The company also performs a qualitative assessment of each VIE to determine if the company is its primary beneficiary, as required by ASC 810. The company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. The company also considers all parties that have direct or implicit variable interests when determining whether it is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed.

The net carrying value of the unconsolidated VIEs classified under “Investments” and “Other accrued liabilities” on the Condensed Consolidated Balance Sheet was a net asset of $259 million and $208 million as of June 30, 2016 and December 31, 2015, respectively. Some of the company’s VIEs have debt; however, such debt is typically non-recourse in nature. The company’s maximum exposure to loss as a result of its investments in unconsolidated VIEs is typically limited to the aggregate of the carrying value of the investment and future funding commitments. Future funding commitments as of June 30, 2016 for the unconsolidated VIEs were $36 million.

In some cases, the company is required to consolidate certain VIEs. As of June 30, 2016, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $1.0 billion and $590 million, respectively. As of December 31, 2015, the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $863 million and $443 million, respectively. The assets of a VIE are restricted for use only for the particular VIE and are not available for general operations of the company.

The company has agreements with certain VIEs to provide financial or performance assurances to clients. See Note 14 for a further discussion of such agreements. A discussion of some of the company’s more significant or unique VIEs is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015.

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Operating Information by Segment

6 Months Ended

Jun. 30, 2016

Operating Information by Segment

Operating Information by Segment

(16)Operating Information by Segment

During the first quarter of 2016, the company changed the composition of its reportable segments to better reflect the diverse end markets that the company serves. The company now reports its operating results in four reportable segments as follows: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government; and Maintenance, Modification & Asset Integrity. Segment operating information and assets for 2015 have been recast to reflect these changes.

The Energy, Chemicals & Mining segment is driven by the supply and demand for commodities. This segment provides design, engineering, procurement, construction, fabrication and project management services for chemicals and petrochemicals, downstream refining, pipelines, upstream oil and gas production, liquefied natural gas and offshore production markets. This segment also provides design, engineering, procurement, construction, project management and commissioning and start-up support for mining and metals markets.

The Industrial, Infrastructure & Power segment provides design, engineering, procurement, construction, project management, start-up and commissioning, and technical services to the transportation, commercial and institutional, life sciences and advanced manufacturing, telecommunications, microelectronics and water sectors as well as the gas fueled, solid fueled, environmental compliance, renewables, and nuclear power markets. The Industrial, Infrastructure & Power segment includes the operations of NuScale Power, LLC, an Oregon-based designer of small modular nuclear reactors, which is managed as a separate operating segment within the Industrial, Infrastructure & Power segment.

The Government segment provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad.

The Maintenance, Modification & Asset Integrity segment is comprised of several operating segments that do not meet the requirements under ASC 280, “Segment Reporting” for separate disclosure, and therefore, have been combined under the aggregation criteria of ASC 280. The Maintenance, Modification & Asset Integrity segment includes the operations of the company’s equipment business, temporary staffing, power services, the former operations & maintenance business line as well as Stork.

For service contracts (including maintenance contracts) that do not satisfy the criteria for revenue recognition using the percentage-of-completion method, revenue is recognized when services are performed. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract work in progress. Amounts billed to clients in excess of revenue recognized on service contracts to date are classified as a current liability under advance billings on contracts.

Operating information by reportable segment is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
External Revenue (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	2,476.4	$	3,263.1	$	4,919.9	$	6,245.8
Industrial, Infrastructure & Power	1,010.0		580.9		1,843.3		1,127.6
Government	657.9		603.1		1,343.9		1,249.1
Maintenance, Modification & Asset Integrity	711.8		363.0		1,172.9		736.3
Total external revenue	$	4,856.1	$	4,810.1	$	9,280.0	$	9,358.8

Intercompany revenue for the Maintenance, Modification & Asset Integrity segment, excluded from the amounts shown above, was $123 million and $240 million for the three and six months ended June 30, 2016, respectively, and $108 million and $223 million for the three and six months ended June 30, 2015, respectively.

Segment profit is an earnings measure that the company utilizes to evaluate and manage its business performance. Segment profit is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests excluding: corporate general and administrative expense; interest expense; interest income; domestic and foreign income taxes; other non-operating income and expense items.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Segment Profit (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	125.5	$	229.4	$	307.5	$	447.2
Industrial, Infrastructure & Power	51.4		4.4		63.3		14.1
Government	22.0		17.2		39.1		32.0
Maintenance, Modification & Asset Integrity	31.1		30.8		61.2		64.4
Total segment profit	$	230.0	$	281.8	$	471.1	$	557.7

Industrial, Infrastructure & Power segment profit for the three and six months ended June 30, 2016 and 2015 included the operations of NuScale, which are primarily for research and development activities associated with the licensing and commercialization of small modular nuclear reactor technology. In May 2014, NuScale entered into a cost-sharing agreement with the U.S. Department of Energy (“DOE”) establishing the terms and conditions of a multi-year funding award that allows certain qualified expenditures to be reimbursed. NuScale expenses included in the determination of segment profit were $22 million and $48 million for the three and six months ended June 30, 2016, respectively, and $19 million and $36 million for the three and six months ended 30, 2015, respectively. For both 2016 and 2015, NuScale expenses were net of qualified reimbursable expenses of $17 million and $31 million for the three and six month periods, respectively. The company recognizes the cost-sharing award with the DOE, when earned, as a reduction of “Total cost of revenue” on the Condensed Consolidated Statement of Earnings and, correspondingly, as an increase to segment profit in the period for which the related costs are recognized.

A reconciliation of total segment profit to net earnings attributable to Fluor Corporation is as follows:

	Three Months Ended						Six Months Ended
Reconciliation of Total Segment Profit to Net Earnings	June 30,						June 30,
Attributable to Fluor Corporation (in millions)	2016			2015			2016			2015
Total segment profit	$	230.0		$	281.8		$	471.1		$	557.7
Corporate general and administrative expense	(52.6		)	(47.8		)	(107.7		)	(88.9		)
Interest income (expense), net	(14.2		)	(7.4		)	(25.7		)	(14.9		)
Income tax expense	(61.4		)	(78.1		)	(131.6		)	(161.3		)
Net earnings attributable to Fluor Corporation	$	101.8		$	148.5		$	206.1		$	292.6

Total assets by segment are as follows:

	June 30,		December 31,
Total Assets by Segment (in millions)	2016		2015
Energy, Chemicals & Mining	$	2,493.2	$	1,728.0
Industrial, Infrastructure & Power	734.9		544.2
Government	516.0		495.4
Maintenance, Modification & Asset Integrity	2,106.1		923.8

The increase in total assets in the Energy, Chemicals & Mining segment resulted from the company’s investment in CFHI and increased working capital in support of project execution activities.  The increase in total assets in the Industrial, Infrastructure & Power segment resulted from increased working capital in support of project execution activities.  The increase in total assets in the Maintenance, Modification & Asset Integrity resulted from the company’s acquisition of Stork.

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Acquisition of Stork Holding B.V.

6 Months Ended

Jun. 30, 2016

Acquisition of Stork Holding B.V.

Acquisition of Stork Holding B.V.

(17)Acquisition of Stork Holding B.V.

In December 2015, the company signed an agreement to acquire 100 percent of Stork for an aggregate purchase price of €695 million (or approximately $756 million), including the assumption of debt and other liabilities. Stork, based in the Netherlands, is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets.

On March 1, 2016 (“the acquisition date”), the company completed the Stork acquisition and paid €276 million (or approximately $300 million) in cash consideration. The company borrowed €200 million (or approximately $217 million) under its $1.7 billion Revolving Loan and Letter of Credit Facility, and paid €76 million (or approximately $83 million) of cash on hand to initially finance the Stork acquisition. The €200 million borrowed under the $1.7 billion Revolving Loan and Letter of Credit Facility was subsequently repaid from the net proceeds of the 2016 Notes as discussed in Note 10.

In conjunction with the acquisition, the company assumed Stork’s outstanding debt obligations, including the Stork Notes, borrowings under a €110 million Super Senior Revolving Credit Facility, and other debt obligations. On March 2, 2016, the company gave notice to all holders of the Stork Notes of the full redemption of the outstanding €273 million (or approximately $296 million) principal amount of Stork Notes plus a redemption premium of €7 million (or approximately $8 million) effective March 17, 2016. The redemption of the Stork Notes was initially funded with additional borrowings under the company’s $1.7 billion Revolving Loan and Letter of Credit Facility, which borrowings were subsequently repaid from the net proceeds of the 2016 Notes. Certain other outstanding debt obligations assumed in the Stork acquisition of €20 million (or approximately $22 million) were settled in March 2016. In April 2016, the company repaid and replaced the €110 million Super Senior Revolving Credit Facility with a €125 million Revolving Credit Facility that is available to fund working capital in the ordinary course of business. This replacement facility expires in April 2017 and bears interest at EURIBOR plus .75%.

The initial accounting for assets acquired and liabilities assumed in connection with the Stork acquisition is incomplete as of the filing date of this Form 10-Q. Third party valuations for property, plant and equipment, intangible assets and liabilities, and pension obligations are still underway; and the company is continuing to assess deferred taxes, certain tax positions and other liabilities related to the acquisition. Therefore, the amounts recognized in the financial statements for the business combination have been determined provisionally. The aggregate purchase price noted above has been preliminarily allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired, totaling €411 million (or approximately $447 million), has been preliminarily recorded as goodwill.

The company has made certain changes to the preliminary purchase price allocation since the initial estimates reported in the first quarter of 2016. These changes primarily relate to the following:

· Identifiable intangible assets, which were previously aggregated with goodwill, have been separately reported at their estimated fair value of €167 million (or approximately $181 million).

· Deferred taxes were adjusted by €47 million (or approximately $51 million) primarily to record the deferred tax impact of valuation adjustments associated with identifiable intangible assets.

· Property, plant and equipment was adjusted by €8 million (or approximately $9 million) to reflect its estimated fair value.

· Certain other assets and liabilities have been adjusted to reflect their estimated fair values or due to balance sheet reclassifications. Such adjustments were insignificant.

· Goodwill has been adjusted by €120 million (or approximately $131 million) to reflect all of the changes to the purchase price allocation noted above.

Adjustments to the Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2016 related to the income effects that would have been recognized in previous periods if the adjustments to provisional amounts were recognized as of the acquisition date were not significant.

The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. The following table summarizes the company’s updated preliminary estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date:

(in thousands)	In EUR			In USD
Cash and cash equivalents	€	54,441		$	59,204
Accounts and notes receivable	167,894			182,585
Contract work in progress	102,717			111,705
Other current assets	58,162			63,251
Property, plant and equipment	159,511			173,468
Investments	8,417			9,153
Intangible assets(1)	166,814			181,410
Goodwill(2)	411,413			447,411
Other assets	900			979
Trade accounts payable	(113,898		)	(123,864		)
Advance billings on contracts	(21,364		)	(23,234		)
Other accrued liabilities	(195,228		)	(212,311		)
Revolving credit facility and other borrowings	(400,228		)	(435,248		)
Long-term debt	(15,295		)	(16,633		)
Deferred taxes, net	(35,213		)	(38,294		)
Noncurrent liabilities	(64,989		)	(70,676		)
Noncontrolling interests	(8,241		)	(8,962		)
Net assets acquired	€	275,813		$	299,944

(1) Acquired intangible assets consist primarily of customer relationships and trade names. A third party valuation is currently underway to determine the fair value of identifiable intangible assets and their useful lives.

(2) Goodwill represents the excess of the purchase price over the fair value of the underlying net assets acquired. Factors contributing to the goodwill balance include the acquired established workforce and the estimated future synergies associated with the combined operations. Of the total goodwill recorded in conjunction with the Stork acquisition, none is expected to be deductible for tax purposes. The goodwill recognized in conjunction with the Stork acquisition has been reported in the Maintenance, Modification & Asset Integrity segment.

Since the acquisition date, revenue and earnings from Stork of $391 million and $4 million for the three months ended June 30, 2016, respectively, and $512 million and $7 million for the six months ended June 30, 2016, respectively, have been included on the Condensed Consolidated Statement of Earnings. Integration costs of $5 million and $11 million for the three and six months ended June 30, 2016, respectively, and transaction costs of $1 million and $11 million for the three and six months ended June 30, 2016, respectively, were included in corporate general and administrative expense.

The following pro forma financial information reflects the Stork acquisition as if it had occurred on January 1, 2015 and includes adjustments for debt refinancing and transaction costs.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Pro forma revenue	$	4,856,117	$	5,244,396	$	9,509,653	$	10,194,460
Pro forma net earnings attributable to Fluor Corporation	102,354		147,464		203,817		284,999

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Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations

Discontinued Operations

(18)Discontinued Operations

During the first half of 2015, the company made payments totaling $306 million to settle certain lead exposure cases associated with the divested lead business of St. Joe Minerals Corporation and The Doe Run Company in Herculaneum, Missouri, which the company sold in 1994. The company has filed suit against the buyer seeking indemnification for all liabilities arising from these lead exposures cases.

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Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2016

Other Comprehensive Income (Loss)

Schedule of tax effects of components of other comprehensive income (loss)

	Three Months Ended									Three Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(61,923	)	$	23,407		$	(38,516	)	$	21,082		$	(8,197	)	$	12,885
Ownership share of equity method investees’ other comprehensive income	13,112			(4,728		)	8,384			1,838			(185		)	1,653
Defined benefit pension and postretirement plan adjustments	1,933			(725		)	1,208			4,283			(1,606		)	2,677
Unrealized gain (loss) on derivative contracts	(4,337		)	1,656			(2,681		)	648			(152		)	496
Unrealized gain (loss) on available-for-sale securities	424			(159		)	265			(375		)	140			(235		)
Total other comprehensive income (loss)	(50,791		)	19,451			(31,340		)	27,476			(10,000		)	17,476
Less: Other comprehensive income (loss) attributable to noncontrolling interests	699			—			699			(611		)	—			(611		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(51,490	)	$	19,451		$	(32,039	)	$	28,087		$	(10,000	)	$	18,087

	Six Months Ended									Six Months Ended
	June 30, 2016									June 30, 2015
				Tax									Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Benefit			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			(Expense)			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(26,168	)	$	9,988		$	(16,180	)	$	(57,189	)	$	21,350		$	(35,839	)
Ownership share of equity method investees’ other comprehensive income (loss)	1,020			(654		)	366			(4,164		)	1,336			(2,828		)
Defined benefit pension and postretirement plan adjustments	(617		)	(1,500		)	(2,117		)	8,584			(3,219		)	5,365
Unrealized gain on derivative contracts	1,448			(527		)	921			2,062			(672		)	1,390
Unrealized gain on available-for-sale securities	1,779			(667		)	1,112			599			(225		)	374
Total other comprehensive loss	(22,538		)	6,640			(15,898		)	(50,108		)	18,570			(31,538		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	755			—			755			(20		)	—			(20		)
Other comprehensive loss attributable to Fluor Corporation	$	(23,293	)	$	6,640		$	(16,653	)	$	(50,088	)	$	18,570		$	(31,518	)

Schedule of changes in accumulated other comprehensive income balances by component (after-tax)

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2016	$	(200,207	)	$	(45,967	)	$	(165,855	)	$	(5,735	)	$	375		$	(417,389	)
Other comprehensive income (loss) before reclassifications	(39,010		)	8,384			—			(3,980		)	325			(34,281		)
Amounts reclassified from AOCI	—			—			1,208			1,094			(60		)	2,242
Net other comprehensive income (loss)	(39,010		)	8,384			1,208			(2,886		)	265			(32,039		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2016	$	(140	)	$	—		$	—		$	(428	)	$	—		$	(568	)
Other comprehensive income before reclassifications	494			—			—			126			—			620
Amounts reclassified from AOCI	—			—			—			79			—			79
Net other comprehensive income	494			—			—			205			—			699
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available-for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2015	$	(222,569	)	$	(37,949	)	$	(162,530	)	$	(9,255	)	$	(472	)	$	(432,775	)
Other comprehensive income (loss) before reclassifications	(16,648		)	366			(4,617		)	(2,184		)	1,135			(21,948		)
Amounts reclassified from AOCI	—			—			2,500			2,818			(23		)	5,295
Net other comprehensive income (loss)	(16,648		)	366			(2,117		)	634			1,112			(16,653		)
Balance as of June 30, 2016	$	(239,217	)	$	(37,583	)	$	(164,647	)	$	(8,621	)	$	640		$	(449,428	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2015	$	(114	)	$	—		$	—		$	(510	)	$	—		$	(624	)
Other comprehensive income before reclassifications	468			—			—			110			—			578
Amounts reclassified from AOCI	—			—			—			177			—			177
Net other comprehensive income	468			—			—			287			—			755
Balance as of June 30, 2016	$	354		$	—		$	—		$	(223	)	$	—		$	131

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of March 31, 2015	$	(168,660	)	$	(34,917	)	$	(322,457	)	$	(8,131	)	$	348		$	(533,817	)
Other comprehensive income (loss) before reclassifications	13,660			1,653			—			(120		)	(234		)	14,959
Amounts reclassified from AOCI	—			—			2,677			452			(1		)	3,128
Net other comprehensive income (loss)	13,660			1,653			2,677			332			(235		)	18,087
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of March 31, 2015	$	1,848		$	—		$	—		$	(614	)	$	—		$	1,234
Other comprehensive income (loss) before reclassifications	(775		)	—			—			105			—			(670		)
Amounts reclassified from AOCI	—			—			—			59			—			59
Net other comprehensive income (loss)	(775		)	—			—			164			—			(611		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2014	$	(119,416	)	$	(30,436	)	$	(325,145	)	$	(8,954	)	$	(261	)	$	(484,212	)
Other comprehensive income (loss) before reclassifications	(35,584		)	(2,828		)	—			476			444			(37,492		)
Amounts reclassified from AOCI	—			—			5,365			679			(70		)	5,974
Net other comprehensive income (loss)	(35,584		)	(2,828		)	5,365			1,155			374			(31,518		)
Balance as of June 30, 2015	$	(155,000	)	$	(33,264	)	$	(319,780	)	$	(7,799	)	$	113		$	(515,730	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2014	$	1,328		$	—		$	—		$	(685	)	$	—		$	643
Other comprehensive income (loss) before reclassifications	(255		)	—			—			102			—			(153		)
Amounts reclassified from AOCI	—			—			—			133			—			133
Net other comprehensive income (loss)	(255		)	—			—			235			—			(20		)
Balance as of June 30, 2015	$	1,073		$	—		$	—		$	(450	)	$	—		$	623

Schedule of significant items reclassified out of AOCI and corresponding location and impact

	Location in	Three Months Ended						Six Months Ended
	Condensed Consolidated	June 30,						June 30,
(in thousands)	Statement of Earnings	2016			2015			2016			2015
Component of AOCI:
Defined benefit pension plan adjustments	Various accounts(1)	$	(1,933	)	$	(4,283	)	$	(4,000	)	$	(8,584	)
Income tax benefit	Income tax expense	725			1,606			1,500			3,219
Net of tax		$	(1,208	)	$	(2,677	)	$	(2,500	)	$	(5,365	)
Unrealized loss on derivative contracts:
Commodity and foreign currency contracts	Total cost of revenue	$	(1,412	)	$	(398	)	$	(3,884	)	$	(460	)
Interest rate contracts	Interest expense	(420		)	(420		)	(839		)	(839		)
Income tax benefit (net)	Income tax expense	659			307			1,728			487
Net of tax		(1,173		)	(511		)	(2,995		)	(812		)
Less: Noncontrolling interests	Net earnings attributable to noncontrolling interests	(79		)	(59		)	(177		)	(133		)
Net of tax and noncontrolling interests		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)
Unrealized gain on available-for-sale securities	Corporate general and administrative expense	$	95		$	2		$	36		$	112
Income tax expense	Income tax expense	(35		)	(1		)	(13		)	(42		)
Net of tax		$	60		$	1		$	23		$	70

(1)Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share

Schedule of calculations of basic and diluted EPS

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2016		2015		2016		2015
Net earnings attributable to Fluor Corporation	$	101,813	$	148,507	$	206,136	$	292,586
Basic EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Basic earnings per share	$	0.73	$	1.02	$	1.48	$	1.99
Diluted EPS attributable to Fluor Corporation:
Weighted average common shares outstanding	139,226		146,261		139,088		146,996
Diluted effect:
Employee stock options, restricted stock units and shares and Value Driver Incentive units	1,575		1,660		1,745		1,742
Conversion equivalent of dilutive convertible debt	—		—		—		180
Weighted average diluted shares outstanding	140,801		147,921		140,833		148,918
Diluted earnings per share	$	0.72	$	1.00	$	1.46	$	1.96
Anti-dilutive securities not included above	4,107		3,499		3,917		3,330

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

	June 30, 2016								December 31, 2015
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents(1)	$	6,526	$	6,526	$	—	$	—	$	19,161	$	19,161	$	—	$	—
Marketable securities, current(2)	49,442		—		49,442		—		87,763		—		87,763		—
Deferred compensation trusts(3)	30,130		30,130		—		—		60,003		60,003		—		—
Marketable securities, noncurrent(4)	163,715		—		163,715		—		220,634		—		220,634		—
Derivative assets(5)
Commodity contracts	138		—		138		—		341		—		341		—
Foreign currency contracts	29,149		—		29,149		—		8,439		—		8,439		—
Liabilities:
Derivative liabilities(5)
Commodity contracts	$	1,549	$	—	$	1,549	$	—	$	2,510	$	—	$	2,510	$	—
Foreign currency contracts	33,034		—		33,034		—		14,138		—		14,138		—

(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period.

(2) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities of less than one year that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These investments, which are trading securities, represent the net asset value of the shares of such funds as of the close of business at the end of the period based on the last trade or official close of an active market or exchange.

(4) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with maturities ranging from one year to three years that are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets.

(5) See Note 8 for the classification of commodity and foreign currency contracts on the Condensed Consolidated Balance Sheet. Commodity and foreign currency contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows.

Schedule of carrying values and estimated fair values of financial instruments not required to be measured at fair value

		June 30, 2016				December 31, 2015
	Fair Value	Carrying		Fair		Carrying		Fair
(in thousands)	Hierarchy	Value		Value		Value		Value
Assets:
Cash(1)	Level 1	$	992,591	$	992,591	$	1,073,756	$	1,073,756
Cash equivalents(2)	Level 2	627,937		627,937		856,969		856,969
Marketable securities, current(3)	Level 2	75,644		75,644		109,329		109,329
Notes receivable, including noncurrent portion(4)	Level 3	25,010		25,010		19,182		19,182
Liabilities:
1.750% Senior Notes(5)	Level 2	$	549,340	$	579,954	$	—	$	—
3.375% Senior Notes(5)	Level 2	495,588		530,435		495,165		509,025
3.5% Senior Notes(5)	Level 2	491,879		536,135		491,399		504,265
Revolving Credit Facility(6)	Level 2	121,803		121,803		—		—
Other borrowings, including noncurrent portion(7)	Level 2	54,930		54,930		—		—

(1) Cash consists of bank deposits. Carrying amounts approximate fair value.

(2) Cash equivalents consist of held-to-maturity time deposits with maturities of three months or less at the date of purchase. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments.

(3) Marketable securities, current consist of held-to-maturity time deposits with original maturities greater than three months that will mature within one year. The carrying amounts of these time deposits approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.

(4) Notes receivable are carried at net realizable value which approximates fair value. Factors considered by the company in determining the fair value include the credit worthiness of the borrower, current interest rates, the term of the note and any collateral pledged as security. Notes receivable are periodically assessed for impairment.

(5) The fair value of the 1.750% Senior Notes, 3.375% Senior Notes and 3.5% Senior Notes were estimated based on quoted market prices for similar issues.

(6) Amounts represent borrowings under the company’s €125 million Revolving Credit Facility which expires in April 2017, as discussed in Note 10. The carrying amount of the borrowings under this revolving credit facility approximates fair value because of the short-term maturity.

(7) Other borrowings as of June 30, 2016 primarily represent bank loans and other financing arrangements assumed in conjunction with the acquisition of Stork. See Note 17 for a further discussion of the acquisition. The majority of these borrowings mature within one year. The carrying amounts of the borrowings under these arrangements approximate fair value because of the short-term maturity.

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Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 2016

Derivatives and Hedging

Schedule of fair values of derivatives designated as hedging instruments under ASC 815

	Asset Derivatives					Liability Derivatives
	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
(in thousands)	Location	2016		2015		Location	2016		2015
Commodity contracts	Other current assets	$	138	$	326	Other accrued liabilities	$	1,460	$	2,195
Foreign currency contracts	Other current assets	14,707		6,865		Other accrued liabilities	16,587		12,381
Commodity contracts	Other assets	—		15		Noncurrent liabilities	89		315
Foreign currency contracts	Other assets	14,442		1,574		Noncurrent liabilities	16,447		1,757
Total		$	29,287	$	8,780		$	34,583	$	16,648

Schedule of after-tax amount of gain (loss) recognized in OCI and reclassified from AOCI into earnings associated with derivative instruments designated as cash flow hedges

	Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	2016			2015			2016			2015
Commodity contracts	$	298		$	11		$	300		$	(102	)
Foreign currency contracts	(4,278		)	(131		)	(2,484		)	578
Total	$	(3,980	)	$	(120	)	$	(2,184	)	$	476

The after-tax amount of gain (loss) reclassified from AOCI into earnings associated with the derivative instruments designated as cash flow hedges was as follows:

		Three Months Ended June 30,						Six Months Ended June 30,
Cash Flow Hedges (in thousands)	Location of Gain (Loss)	2016			2015			2016			2015
Commodity contracts	Total cost of revenue	$	(57	)	$	(120	)	$	(177	)	$	(211	)
Foreign currency contracts	Total cost of revenue	(775		)	(70		)	(2,117		)	56
Interest rate contracts	Interest expense	(262		)	(262		)	(524		)	(524		)
Total		$	(1,094	)	$	(452	)	$	(2,818	)	$	(679	)

Hedging instruments designated as fair value hedges

Derivatives and Hedging

Schedule of pre-tax net gains (losses) recognized in earnings

		Three Months Ended June 30,					Six Months Ended June 30,
Fair Value Hedges (in thousands)	Location of Gain (Loss)	2016			2015		2016			2015
Foreign currency contracts	Corporate general and administrative expense	$	(1,521	)	$	5,237	$	(1,326	)	$	4,083

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Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2016

Defined Benefit Pension Plans

Defined Benefit Plans and Other Postretirement Benefit Plans

Schedule of components of net periodic pension expense

	U.S. Pension Plan										Non-U.S. Pension Plans
	Three Months Ended					Six Months Ended					Three Months Ended						Six Months Ended
	June 30,					June 30,					June 30,						June 30,
(in thousands)	2016 (1)		2015			2016 (1)		2015			2016			2015			2016			2015
Service cost	$	—	$	1,700		$	—	$	3,400		$	5,014		$	5,139		$	9,746		$	10,341
Interest cost	—		3,800			—		7,599			6,899			6,648			13,520			13,289
Expected return on assets	—		(5,275		)	—		(10,550		)	(10,258		)	(12,295		)	(20,309		)	(24,600		)
Amortization of prior service cost	—		216			—		433			(198		)	(203		)	(407		)	(409		)
Recognized net actuarial loss	—		2,351			—		4,702			2,130			1,919			4,406			3,858
Net periodic pension expense	$	—	$	2,792		$	—	$	5,584		$	3,587		$	1,208		$	6,956		$	2,479

(1)In December 2015, the company settled the remaining obligations associated with its U.S. defined benefit pension plan. A detailed discussion of the plan settlement is provided in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2015.

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Operating Information by Segment (Tables)

6 Months Ended

Jun. 30, 2016

Operating Information by Segment

Schedule of operating information and total assets by reportable segment

	Three Months Ended				Six Months Ended
	June 30,				June 30,
External Revenue (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	2,476.4	$	3,263.1	$	4,919.9	$	6,245.8
Industrial, Infrastructure & Power	1,010.0		580.9		1,843.3		1,127.6
Government	657.9		603.1		1,343.9		1,249.1
Maintenance, Modification & Asset Integrity	711.8		363.0		1,172.9		736.3
Total external revenue	$	4,856.1	$	4,810.1	$	9,280.0	$	9,358.8

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Segment Profit (in millions)	2016		2015		2016		2015
Energy, Chemicals & Mining	$	125.5	$	229.4	$	307.5	$	447.2
Industrial, Infrastructure & Power	51.4		4.4		63.3		14.1
Government	22.0		17.2		39.1		32.0
Maintenance, Modification & Asset Integrity	31.1		30.8		61.2		64.4
Total segment profit	$	230.0	$	281.8	$	471.1	$	557.7

	June 30,		December 31,
Total Assets by Segment (in millions)	2016		2015
Energy, Chemicals & Mining	$	2,493.2	$	1,728.0
Industrial, Infrastructure & Power	734.9		544.2
Government	516.0		495.4
Maintenance, Modification & Asset Integrity	2,106.1		923.8

Reconciliation of total segment profit to net earnings

	Three Months Ended						Six Months Ended
Reconciliation of Total Segment Profit to Net Earnings	June 30,						June 30,
Attributable to Fluor Corporation (in millions)	2016			2015			2016			2015
Total segment profit	$	230.0		$	281.8		$	471.1		$	557.7
Corporate general and administrative expense	(52.6		)	(47.8		)	(107.7		)	(88.9		)
Interest income (expense), net	(14.2		)	(7.4		)	(25.7		)	(14.9		)
Income tax expense	(61.4		)	(78.1		)	(131.6		)	(161.3		)
Net earnings attributable to Fluor Corporation	$	101.8		$	148.5		$	206.1		$	292.6

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Acquisition of Stork Holding B.V. (Tables)

6 Months Ended

Jun. 30, 2016

Acquisition of Stork Holding B.V.

Summary of preliminary estimate of fair values of assets acquired and liabilities assumed as of the acquisition date

(in thousands)	In EUR			In USD
Cash and cash equivalents	€	54,441		$	59,204
Accounts and notes receivable	167,894			182,585
Contract work in progress	102,717			111,705
Other current assets	58,162			63,251
Property, plant and equipment	159,511			173,468
Investments	8,417			9,153
Intangible assets(1)	166,814			181,410
Goodwill(2)	411,413			447,411
Other assets	900			979
Trade accounts payable	(113,898		)	(123,864		)
Advance billings on contracts	(21,364		)	(23,234		)
Other accrued liabilities	(195,228		)	(212,311		)
Revolving credit facility and other borrowings	(400,228		)	(435,248		)
Long-term debt	(15,295		)	(16,633		)
Deferred taxes, net	(35,213		)	(38,294		)
Noncurrent liabilities	(64,989		)	(70,676		)
Noncontrolling interests	(8,241		)	(8,962		)
Net assets acquired	€	275,813		$	299,944

(1) Acquired intangible assets consist primarily of customer relationships and trade names. A third party valuation is currently underway to determine the fair value of identifiable intangible assets and their useful lives.

(2) Goodwill represents the excess of the purchase price over the fair value of the underlying net assets acquired. Factors contributing to the goodwill balance include the acquired established workforce and the estimated future synergies associated with the combined operations. Of the total goodwill recorded in conjunction with the Stork acquisition, none is expected to be deductible for tax purposes. The goodwill recognized in conjunction with the Stork acquisition has been reported in the Maintenance, Modification & Asset Integrity segment.

Schedule of pro forma financial information

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Pro forma revenue	$	4,856,117	$	5,244,396	$	9,509,653	$	10,194,460
Pro forma net earnings attributable to Fluor Corporation	102,354		147,464		203,817		284,999

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Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
New accounting pronouncements implemented
Noncurrent deferred tax assets	$ 339,206	$ 394,832
Other noncurrent assets	383,253	201,899
Long-term debt	$ 1,547,459	986,564
ASU 2015-17, Balance Sheet Classification of Deferred Taxes | Early Adoption
New accounting pronouncements implemented
Current deferred tax assets		(173,000)
Noncurrent deferred tax assets		173,000
ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs | Adjustment
New accounting pronouncements implemented
Other noncurrent assets		(6,000)
Long-term debt		$ (6,000)

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Other Comprehensive Income (Loss) - Tax Effects of Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	$ (50,791)	$ 27,476	$ (22,538)	$ (50,108)
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Before-Tax	699	(611)	755	(20)
Other comprehensive income (loss) attributable to Fluor Corporation, Before-Tax	(51,490)	28,087	(23,293)	(50,088)
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	19,451	(10,000)	6,640	18,570
Other comprehensive income (loss) attributable to Fluor Corporation, Tax (Expense) Benefit	19,451	(10,000)	6,640	18,570
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(31,340)	17,476	(15,898)	(31,538)
Less: Other comprehensive income (loss) attributable to noncontrolling interests, Net-of-Tax	699	(611)	755	(20)
Other comprehensive income (loss) attributable to Fluor Corporation, Net-of-Tax	(32,039)	18,087	(16,653)	(31,518)
Foreign Currency Translation Adjustment, including noncontrolling interests
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	(61,923)	21,082	(26,168)	(57,189)
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	23,407	(8,197)	9,988	21,350
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(38,516)	12,885	(16,180)	(35,839)
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss)
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	13,112	1,838	1,020	(4,164)
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	(4,728)	(185)	(654)	1,336
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	8,384	1,653	366	(2,828)
Defined Benefit Pension and Postretirement Plan adjustments, including noncontrolling interests
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	1,933	4,283	(617)	8,584
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	(725)	(1,606)	(1,500)	(3,219)
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	1,208	2,677	(2,117)	5,365
Unrealized Gain (Loss) on Derivative Contracts, including noncontrolling interests
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	(4,337)	648	1,448	2,062
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	1,656	(152)	(527)	(672)
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(2,681)	496	921	1,390
Unrealized Gain (Loss) on Available-for-Sale Securities, including noncontrolling interests
Other comprehensive income (loss), Before-Tax Amount:
Total other comprehensive income (loss), Before-Tax	424	(375)	1,779	599
Other comprehensive income (loss), Tax (Expense) Benefit:
Total other comprehensive income (loss), Tax (Expense) Benefit	(159)	140	(667)	(225)
Other comprehensive income (loss), Net-of-Tax Amount:
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	$ 265	$ (235)	$ 1,112	$ 374

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Other Comprehensive Income (Loss) - Changes in AOCI Balances by Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Changes in AOCI balances by component (after-tax)
BALANCE			$ 3,113,499
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	$ (31,340)	$ 17,476	(15,898)	$ (31,538)
BALANCE	3,283,634		3,283,634
Accumulated Other Comprehensive Income (Loss)
Changes in AOCI balances by component (after-tax)
BALANCE	(417,389)	(533,817)	(432,775)	(484,212)
Other comprehensive income (loss) before reclassifications	(34,281)	14,959	(21,948)	(37,492)
Amounts reclassified from AOCI	2,242	3,128	5,295	5,974
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(32,039)	18,087	(16,653)	(31,518)
BALANCE	(449,428)	(515,730)	(449,428)	(515,730)
Foreign Currency Translation
Changes in AOCI balances by component (after-tax)
BALANCE	(200,207)	(168,660)	(222,569)	(119,416)
Other comprehensive income (loss) before reclassifications	(39,010)	13,660	(16,648)	(35,584)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(39,010)	13,660	(16,648)	(35,584)
BALANCE	(239,217)	(155,000)	(239,217)	(155,000)
Ownership Share of Equity Method Investees' Other Comprehensive Income (Loss)
Changes in AOCI balances by component (after-tax)
BALANCE	(45,967)	(34,917)	(37,949)	(30,436)
Other comprehensive income (loss) before reclassifications	8,384	1,653	366	(2,828)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	8,384	1,653	366	(2,828)
BALANCE	(37,583)	(33,264)	(37,583)	(33,264)
Defined Benefit Pension and Postretirement Plans
Changes in AOCI balances by component (after-tax)
BALANCE	(165,855)	(322,457)	(162,530)	(325,145)
Other comprehensive income (loss) before reclassifications			(4,617)
Amounts reclassified from AOCI	1,208	2,677	2,500	5,365
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	1,208	2,677	(2,117)	5,365
BALANCE	(164,647)	(319,780)	(164,647)	(319,780)
Unrealized Gain (Loss) on Derivative Contracts
Changes in AOCI balances by component (after-tax)
BALANCE	(5,735)	(8,131)	(9,255)	(8,954)
Other comprehensive income (loss) before reclassifications	(3,980)	(120)	(2,184)	476
Amounts reclassified from AOCI	1,094	452	2,818	679
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(2,886)	332	634	1,155
BALANCE	(8,621)	(7,799)	(8,621)	(7,799)
Unrealized Gain (Loss) on Available-for-Sale Securities
Changes in AOCI balances by component (after-tax)
BALANCE	375	348	(472)	(261)
Other comprehensive income (loss) before reclassifications	325	(234)	1,135	444
Amounts reclassified from AOCI	(60)	(1)	(23)	(70)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	265	(235)	1,112	374
BALANCE	640	113	640	113
Accumulated Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests
Changes in AOCI balances by component (after-tax)
BALANCE	(568)	1,234	(624)	643
Other comprehensive income (loss) before reclassifications	620	(670)	578	(153)
Amounts reclassified from AOCI	79	59	177	133
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	699	(611)	755	(20)
BALANCE	131	623	131	623
Foreign Currency Translation Attributable to Noncontrolling Interests
Changes in AOCI balances by component (after-tax)
BALANCE	(140)	1,848	(114)	1,328
Other comprehensive income (loss) before reclassifications	494	(775)	468	(255)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	494	(775)	468	(255)
BALANCE	354	1,073	354	1,073
Unrealized Gain (Loss) on Derivative Contracts Attributable Noncontrolling Interests
Changes in AOCI balances by component (after-tax)
BALANCE	(428)	(614)	(510)	(685)
Other comprehensive income (loss) before reclassifications	126	105	110	102
Amounts reclassified from AOCI	79	59	177	133
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	205	164	287	235
BALANCE	$ (223)	$ (450)	$ (223)	$ (450)

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Other Comprehensive Income (Loss) - Significant Items Reclassified Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassifications out of accumulated other comprehensive income (loss)
Total cost of revenue	$ (4,607,868)	$ (4,516,125)	$ (8,775,935)	$ (8,767,314)
Interest expense	(18,719)	(11,401)	(33,364)	(23,569)
Corporate general and administrative expense	(52,640)	(47,785)	(107,753)	(88,895)
Income tax expense	(61,348)	(78,105)	(131,557)	(161,379)
NET EARNINGS	120,054	160,744	239,065	326,348
Net earnings attributable to noncontrolling interests	18,241	12,237	32,929	33,762
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	101,813	148,507	206,136	292,586
Defined Benefit Pension and Postretirement Plans
Reclassifications out of accumulated other comprehensive income (loss)
Adjustments	(1,933)	(4,283)	(4,000)	(8,584)
Income tax benefit	725	1,606	1,500	3,219
Net of tax	(1,208)	(2,677)	(2,500)	(5,365)
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI
Reclassifications out of accumulated other comprehensive income (loss)
Income tax expense	659	307	1,728	487
NET EARNINGS	(1,173)	(511)	(2,995)	(812)
Net earnings attributable to noncontrolling interests	(79)	(59)	(177)	(133)
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	(1,094)	(452)	(2,818)	(679)
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Commodity and foreign currency contracts
Reclassifications out of accumulated other comprehensive income (loss)
Total cost of revenue	(1,412)	(398)	(3,884)	(460)
Unrealized Gain (Loss) on Derivative Contracts | Reclassified out of AOCI | Interest rate contracts
Reclassifications out of accumulated other comprehensive income (loss)
Interest expense	(420)	(420)	(839)	(839)
Unrealized Gain (Loss) on Available-for-Sale Securities | Reclassified out of AOCI
Reclassifications out of accumulated other comprehensive income (loss)
Corporate general and administrative expense	95	2	36	112
Income tax expense	(35)	(1)	(13)	(42)
NET EARNINGS	$ 60	$ 1	$ 23	$ 70

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Income Taxes - Effective Tax Rates (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes
Effective tax rate, continuing operations (as a percent)	33.80%	32.70%	35.50%	33.10%

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Cash Paid for Interest and Taxes (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Paid for Interest and Taxes
Interest	$ 38	$ 21
Income taxes payments, net of refunds	$ 77	$ 115

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Earnings Per Share - Calculations of Basic and Diluted EPS and Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amounts attributable to Fluor Corporation
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	$ 101,813	$ 148,507	$ 206,136	$ 292,586
Basic EPS attributable to Flour Corporation:
Weighted average common shares outstanding (in shares)	139,226,000	146,261,000	139,088,000	146,996,000
Basic earnings per share (in dollars per share)	$ 0.73	$ 1.02	$ 1.48	$ 1.99
Diluted EPS attributable to Fluor Corporation:
Weighted average common shares outstanding (in shares)	139,226,000	146,261,000	139,088,000	146,996,000
Diluted effect:
Employee stock options, restricted stock units and shares and Value Driver Incentive units (in shares)	1,575,000	1,660,000	1,745,000	1,742,000
Conversion equivalent of dilutive convertible debt (in shares)				180,000
Weighted average diluted shares outstanding (in shares)	140,801,000	147,921,000	140,833,000	148,918,000
Diluted earnings per share (in dollars per share)	$ 0.72	$ 1.00	$ 1.46	$ 1.96
Anti-dilutive securities not included above (in shares)	4,107,000	3,499,000	3,917,000	3,330,000
Repurchases of common stock
Common stock repurchased and cancelled, shares (in shares)	0	1,782,679	202,650	3,722,676
Common stock repurchased and cancelled, amount (in dollars)		$ 103,000	$ 10,000	$ 214,000

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Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Fair value of assets and liabilities measured on recurring basis
Other-than-temporary impairment of available-for-sale securities			$ 0		$ 0
Proceeds from sale and maturity of available-for-sale securities
Proceeds from the sales and maturities of available-for-sale securities	$ 92,000	$ 20,000	$ 214,000	$ 203,000
Marketable securities, available-for-sale | Minimum
Fair value of assets and liabilities measured on recurring basis
Debt securities maturity period			1 year		1 year
Marketable securities, available-for-sale | Maximum
Fair value of assets and liabilities measured on recurring basis
Debt securities maturity period			3 years		3 years
Fair Value, Measurements, Recurring
Fair value of assets and liabilities measured on recurring basis
Cash and cash equivalents	6,526		$ 6,526		$ 19,161
Marketable securities, current	49,442		49,442		87,763
Deferred compensation trusts	30,130		30,130		60,003
Marketable securities, noncurrent	163,715		163,715		220,634
Fair Value, Measurements, Recurring | Money market funds
Fair value of assets and liabilities measured on recurring basis
Available-for-sale securities	7,000		7,000		19,000
Fair Value, Measurements, Recurring | U.S. agency securities
Fair value of assets and liabilities measured on recurring basis
Available-for-sale securities	13,000		13,000		18,000
Fair Value, Measurements, Recurring | U.S. Treasury securities
Fair value of assets and liabilities measured on recurring basis
Available-for-sale securities	90,000		90,000		102,000
Fair Value, Measurements, Recurring | Corporate debt securities
Fair value of assets and liabilities measured on recurring basis
Available-for-sale securities	110,000		110,000		189,000
Fair Value, Measurements, Recurring | Commodity contracts
Fair value of assets and liabilities measured on recurring basis
Derivative assets	138		138		341
Derivative liabilities	1,549		1,549		2,510
Fair Value, Measurements, Recurring | Foreign currency contracts
Fair value of assets and liabilities measured on recurring basis
Derivative assets	29,149		29,149		8,439
Derivative liabilities	33,034		33,034		14,138
Fair Value, Measurements, Recurring | Level 1
Fair value of assets and liabilities measured on recurring basis
Cash and cash equivalents	6,526		6,526		19,161
Deferred compensation trusts	30,130		30,130		60,003
Fair Value, Measurements, Recurring | Level 2
Fair value of assets and liabilities measured on recurring basis
Marketable securities, current	49,442		49,442		87,763
Marketable securities, noncurrent	163,715		163,715		220,634
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts
Fair value of assets and liabilities measured on recurring basis
Derivative assets	138		138		341
Derivative liabilities	1,549		1,549		2,510
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contracts
Fair value of assets and liabilities measured on recurring basis
Derivative assets	29,149		29,149		8,439
Derivative liabilities	$ 33,034		$ 33,034		$ 14,138

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Fair Value Measurements - Financial Instruments Not Required to be Measured at Fair Value (Details)	Jun. 30, 2016 USD ($)	Apr. 30, 2016 EUR (€)	Mar. 31, 2016	Mar. 01, 2016 EUR (€)	Dec. 31, 2015 USD ($)	Nov. 30, 2014	Sep. 30, 2011
Lines of credit
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Maximum borrowing capacity	$ 6,000,000,000
Lines of credit | Committed credit line
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Maximum borrowing capacity	$ 3,500,000,000
1.750% 2016 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Interest rate (as a percent)	1.75%		1.75%
3.375% 2011 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Interest rate (as a percent)	3.375%				3.375%		3.375%
3.5% 2014 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Interest rate (as a percent)	3.50%				3.50%	3.50%
Super Senior Revolving Credit Facility | Lines of credit | Committed credit line
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Maximum borrowing capacity | €		€ 110,000,000		€ 110,000,000
April 2016 Revolving Credit Facility due April 2017 | Lines of credit | Committed credit line
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Maximum borrowing capacity | €		€ 125,000,000
Carrying Value
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Marketable securities, held-to-maturity	$ 75,644,000				$ 109,329,000
Notes receivable, including noncurrent portion	25,010,000				19,182,000
Carrying Value | Other borrowings
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	54,930,000
Carrying Value | 1.750% 2016 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	549,340,000
Carrying Value | 3.375% 2011 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	495,588,000				495,165,000
Carrying Value | 3.5% 2014 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	491,879,000				491,399,000
Carrying Value | Super Senior Revolving Credit Facility
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	121,803,000
Fair Value | Level 2
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Marketable securities, held-to-maturity	75,644,000				109,329,000
Fair Value | Level 2 | Other borrowings
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	54,930,000
Fair Value | Level 2 | 1.750% 2016 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	579,954,000
Fair Value | Level 2 | 3.375% 2011 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	530,435,000				509,025,000
Fair Value | Level 2 | 3.5% 2014 Senior Notes
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	536,135,000				504,265,000
Fair Value | Level 2 | Super Senior Revolving Credit Facility
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Debt	121,803,000
Fair Value | Level 3
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Notes receivable, including noncurrent portion	25,010,000				19,182,000
Bank deposits | Carrying Value
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Cash and cash equivalents	992,591,000				1,073,756,000
Bank deposits | Fair Value | Level 1
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Cash and cash equivalents	992,591,000				1,073,756,000
Time deposits | Carrying Value
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Cash and cash equivalents	627,937,000				856,969,000
Time deposits | Fair Value | Level 2
Estimated fair values of the company's financial instruments that are not measured at fair value on a recurring basis
Cash and cash equivalents	$ 627,937,000				$ 856,969,000

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Derivatives and Hedging - Notional Amounts and Fair Values (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value
Asset Derivatives	$ 29,287	$ 8,780
Liability Derivatives	34,583	16,648
Commodity contracts
Derivatives, Fair Value
Total gross notional amount	6,000
Commodity contracts | Other current assets
Derivatives, Fair Value
Asset Derivatives	138	326
Commodity contracts | Other assets
Derivatives, Fair Value
Asset Derivatives		15
Commodity contracts | Other accrued liabilities
Derivatives, Fair Value
Liability Derivatives	1,460	2,195
Commodity contracts | Noncurrent liabilities
Derivatives, Fair Value
Liability Derivatives	89	315
Foreign currency contracts
Derivatives, Fair Value
Total gross notional amount	790,000
Foreign currency contracts | Other current assets
Derivatives, Fair Value
Asset Derivatives	14,707	6,865
Foreign currency contracts | Other assets
Derivatives, Fair Value
Asset Derivatives	14,442	1,574
Foreign currency contracts | Other accrued liabilities
Derivatives, Fair Value
Liability Derivatives	16,587	12,381
Foreign currency contracts | Noncurrent liabilities
Derivatives, Fair Value
Liability Derivatives	$ 16,447	$ 1,757

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Derivatives and Hedging - Gains (Losses) Associated with Fair Value and Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Foreign currency contracts | Corporate general and administrative expense
Derivative Instruments, Gain (Loss)
Pre-tax net gains (losses) recognized in earnings associated with hedging instruments designated as fair value hedges	$ (1,521)	$ 5,237	$ (1,326)	$ 4,083
Cash Flow Hedges
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) recognized in OCI	(3,980)	(120)	(2,184)	476
After-tax amount of gain (loss) reclassified from AOCI into earnings	(1,094)	(452)	(2,818)	(679)
Cash Flow Hedges | Commodity contracts
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) recognized in OCI	298	11	300	(102)
Cash Flow Hedges | Commodity contracts | Total cost of revenue
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) reclassified from AOCI into earnings	(57)	(120)	(177)	(211)
Cash Flow Hedges | Foreign currency contracts
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) recognized in OCI	(4,278)	(131)	(2,484)	578
Cash Flow Hedges | Foreign currency contracts | Total cost of revenue
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) reclassified from AOCI into earnings	(775)	(70)	(2,117)	56
Cash Flow Hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
After-tax amount of gain (loss) reclassified from AOCI into earnings	$ (262)	$ (262)	$ (524)	$ (524)

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Derivatives and Hedging - Derivative Contracts Not Designated as Hedging Instruments (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)
Total cost of revenue
Derivatives
Recognized gains/losses associated with derivative contracts not designated as hedging instruments	$ 3.0	$ 0.3
Not designated as hedging instrument | Foreign currency contracts
Derivatives
Total gross notional amount	8.0	8.0
Not designated as hedging instrument | Commodity contracts
Derivatives
Total gross notional amount	$ 2.0	$ 2.0

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Retirement Benefits - Net Periodic Pension Expense for Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined Benefit U.S. Pension Plan
Net periodic pension expense for defined benefit pension plans
Service cost		$ 1,700		$ 3,400
Interest cost		3,800		7,599
Expected return on assets		(5,275)		(10,550)
Amortization of prior service cost		216		433
Recognized net actuarial loss		2,351		4,702
Net periodic pension expense		2,792		5,584
Defined Benefit Non-U.S. Pension Plans
Net periodic pension expense for defined benefit pension plans
Service cost	$ 5,014	5,139	$ 9,746	10,341
Interest cost	6,899	6,648	13,520	13,289
Expected return on assets	(10,258)	(12,295)	(20,309)	(24,600)
Amortization of prior service cost	(198)	(203)	(407)	(409)
Recognized net actuarial loss	2,130	1,919	4,406	3,858
Net periodic pension expense	$ 3,587	$ 1,208	$ 6,956	$ 2,479

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Retirement Benefits - International Defined Benefit Pension Plan Contributions (Details) - Defined Benefit Non-U.S. Pension Plans $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($)
Retirement benefits
Company contributions	$ 11
Minimum
Retirement benefits
Expected contributions during 2016	15
Maximum
Retirement benefits
Expected contributions during 2016	$ 20

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Financing Arrangements - Credit Facilities (Details)		1 Months Ended	6 Months Ended
	Mar. 01, 2016 USD ($)	Apr. 30, 2016 EUR (€)	Jun. 30, 2016 USD ($)	Jun. 30, 2016 EUR (€)	Mar. 17, 2016 USD ($)	Mar. 01, 2016 EUR (€)
Lines of credit
Financing Arrangements
Maximum borrowing capacity			$ 6,000,000,000
Amount outstanding under credit facilities			2,000,000,000
Committed credit line | Lines of credit
Financing Arrangements
Maximum borrowing capacity			3,500,000,000
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019
Financing Arrangements
Maximum borrowing capacity	$ 1,700,000,000		1,700,000,000		$ 1,700,000,000
Maximum borrowing capacity additional amount, subject to certain conditions			$ 500,000,000
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Maximum
Financing Arrangements
Ratio of consolidated debt to tangible net worth (as a percent)			100.00%
Committed credit line | Lines of credit | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Maximum | Subsidiaries
Financing Arrangements
Aggregate amount of debt			$ 750,000,000	€ 750,000,000
Committed credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, as amended, due May 2019
Financing Arrangements
Maximum borrowing capacity			1,800,000,000
Maximum borrowing capacity additional amount, subject to certain conditions			$ 500,000,000
Committed credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, as amended, due May 2019 | Maximum
Financing Arrangements
Ratio of consolidated debt to tangible net worth (as a percent)			100.00%
Committed credit line | Lines of credit | $1.8 billion Revolving Loan and Letter of Credit Facility, as amended, due May 2019 | Maximum | Subsidiaries
Financing Arrangements
Aggregate amount of debt			$ 750,000,000	750,000,000
Committed credit line | Lines of credit | Super Senior Revolving Credit Facility
Financing Arrangements
Maximum borrowing capacity | €		€ 110,000,000				€ 110,000,000
Committed credit line | Lines of credit | April 2016 Revolving Credit Facility due April 2017
Financing Arrangements
Maximum borrowing capacity | €		€ 125,000,000
Amount outstanding under credit facilities			122,000,000	€ 110,000,000
Committed credit line | Lines of credit | Euribor | Super Senior Revolving Credit Facility
Financing Arrangements
Margin added to variable rate (as a percent)	3.75%
Committed credit line | Lines of credit | Euribor | April 2016 Revolving Credit Facility due April 2017
Financing Arrangements
Margin added to variable rate (as a percent)		0.75%
Committed credit line | Revolving advances
Financing Arrangements
Maximum borrowing capacity			$ 1,750,000,000

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Financing Arrangements - Senior Notes (Details)	1 Months Ended			6 Months Ended
	Mar. 31, 2016 EUR (€)	Nov. 30, 2014 USD ($)	Sep. 30, 2011 USD ($)	Jun. 30, 2016	Dec. 31, 2015
1.750% 2016 Senior Notes
Financing Arrangements
Debt issued | €	€ 500,000,000
Interest rate (as a percent)	1.75%			1.75%
Proceeds from issuance of notes, net of underwriting discounts | €	€ 497,000,000
1.750% 2016 Senior Notes | On or after December 21, 2022
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%
1.750% 2016 Senior Notes | Occurrence of certain changes in U.S. tax laws
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%
1.750% 2016 Senior Notes | Change of control triggering event
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				101.00%
1.750% 2016 Senior Notes | Minimum | Prior to December 21, 2022
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%
3.5% 2014 Senior Notes
Financing Arrangements
Debt issued		$ 500,000,000
Interest rate (as a percent)		3.50%		3.50%	3.50%
Proceeds from issuance of notes, net of underwriting discounts		$ 491,000,000
3.5% 2014 Senior Notes | On or after September 15, 2024
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%
3.5% 2014 Senior Notes | Change of control triggering event
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				101.00%
3.5% 2014 Senior Notes | Minimum | Prior to September 15, 2024
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%
3.375% 2011 Senior Notes
Financing Arrangements
Debt issued			$ 500,000,000
Interest rate (as a percent)			3.375%	3.375%	3.375%
Proceeds from issuance of notes, net of underwriting discounts			$ 492,000,000
3.375% 2011 Senior Notes | Change of control triggering event
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				101.00%
3.375% 2011 Senior Notes | Minimum
Financing Arrangements
Redemption price at which debt may be redeemed (as a percent)				100.00%

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Financing Arrangements - Debt Assumed in Conjunction with Stork Acquisition (Details)	Mar. 17, 2016 USD ($)	Mar. 17, 2016 EUR (€)	Mar. 01, 2016 USD ($)	Mar. 01, 2016 EUR (€)	Jun. 30, 2016 USD ($)	Apr. 30, 2016 EUR (€)	Mar. 02, 2016 USD ($)	Mar. 02, 2016 EUR (€)	Mar. 01, 2016 EUR (€)
Lines of credit
Financing Arrangements
Maximum borrowing capacity					$ 6,000,000,000
Lines of credit | Committed credit line
Financing Arrangements
Maximum borrowing capacity					3,500,000,000
Stork Holding B.V. | Other borrowings
Financing Arrangements
Debt assumed			$ 22,000,000	€ 20,000,000
Stork Notes
Financing Arrangements
Debt outstanding							$ 296,000,000	€ 273,000,000
Outstanding debt redeemed	$ 296,000,000	€ 273,000,000
Redemption premium	8,000,000	€ 7,000,000
Stork Notes | Stork Holding B.V.
Financing Arrangements
Interest rate (as a percent)			11.00%						11.00%
Super Senior Revolving Credit Facility | Lines of credit | Committed credit line
Financing Arrangements
Maximum borrowing capacity | €						€ 110,000,000			€ 110,000,000
Super Senior Revolving Credit Facility | Stork Holding B.V.
Financing Arrangements
Maximum borrowing capacity | €									€ 110,000,000
$1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019 | Lines of credit | Committed credit line
Financing Arrangements
Maximum borrowing capacity	$ 1,700,000,000		$ 1,700,000,000		$ 1,700,000,000

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Financing Arrangements - Other Borrowings (Details) $ in Millions	Jun. 30, 2016 USD ($)
Stork Holding B.V.
Short-term credit facility
Other borrowings	$ 55

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Stock-Based Plans - Grants, Vesting Period and Option Term (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Restricted stock units | Executives and directors
Stock-Based Plans
Granted (in shares)	553,415	546,679
Granted, weighted average grant date fair value (in dollars per share)	$ 46.50	$ 59.11
Restricted stock units | Executives
Stock-Based Plans
Vesting period	3 years	3 years
Stock Options | Executives
Stock-Based Plans
Options awarded (in shares)	662,001	963,288
Options awarded, weighted average exercise price (in dollars per share)	$ 46.07	$ 59.05
Vesting period	3 years	3 years
Term of stock-based award	10 years	10 years
Performance-based VDI units | Executives
Stock-Based Plans
Granted (in shares)	98,684	430,970
Granted, weighted average grant date fair value (in dollars per share)	$ 46.07	$ 59.05
Vesting period	3 years	3 years
Performance-based VDI units | Awards granted during 2016 | Executives
Stock-Based Plans
Post-vest holding period	3 years

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Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Noncontrolling Interests.
Net earnings attributable to noncontrolling interests	$ 18,241	$ 12,237	$ 32,929	$ 33,762
Distributions paid to noncontrolling interests			24,327	41,766
Capital contributions by noncontrolling interests			$ 8,016	$ 2,294

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Contingencies and Commitments - Performance Claims under Contracts (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Contract work in progress
Recognized claims against clients
Contracts receivable, claims and uncertain amounts	$ 49	$ 30

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Guarantees (Details) $ in Billions	Jun. 30, 2016 USD ($)
Performance Guarantee
Guarantees
Estimated performance guarantees outstanding	$ 21.7

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Partnerships and Joint Ventures - Ownership and Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Partnership | Majority
Variable interest entity information
Entity's interest in partnership or joint venture (as a percent)	50.00%
Joint ventures | Majority
Variable interest entity information
Entity's interest in partnership or joint venture (as a percent)	50.00%
Unconsolidated variable interest entities | Accounts and notes receivable, net
Variable interest entity information
Receivables related to work performed for unconsolidated partnerships and joint ventures	$ 308	$ 132

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Partnerships and Joint Ventures - Unconsolidated Partnerships and Joint Ventures and Equity Method Investments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Partnerships and Joint Ventures
Investments in unconsolidated partnerships and joint ventures under equity method	$ 673	$ 292

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Partnerships and Joint Ventures - Joint Venture Investment Agreement (Details) $ in Millions	1 Months Ended
	Feb. 29, 2016 USD ($)	Aug. 31, 2015 company	Jun. 30, 2016 USD ($)
COOEC Fluor Heavy Industries Co., Ltd.
Commitments
Ownership interest in joint venture (as a percent)		49.00%
Cash investment in joint venture	$ 350
COOEC Fluor Heavy Industries Co., Ltd. | Funding commitment, additional investment
Commitments
Commitment amount			$ 140
Offshore Oil Engineering Co., Ltd. | COOEC Fluor Heavy Industries Co., Ltd.
Commitments
Ownership interest in joint venture (as a percent)		51.00%
COOEC Fluor Heavy Industries Co., Ltd.
Commitments
Number of parties to joint venture | company		2

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Partnerships and Joint Ventures - Variable Interest Entities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Unconsolidated variable interest entities
Variable interest entity information
Net carrying value of the unconsolidated VIEs	$ 259	$ 208
Unconsolidated variable interest entities | Future funding commitment
Variable interest entity information
Commitment amount	36
Consolidated variable interest entities
Variable interest entity information
Carrying value of assets	1,000	863
Carrying value of liabilities	$ 590	$ 443

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Operating Information by Segment - Reportable Segments and Concentration (Details)	6 Months Ended
	Jun. 30, 2016 segment
Operating Information by Segment
Number of reportable segments	4

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Operating Information by Segment - External Revenue and Segment Profit (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
External revenue
Revenue	$ 4,856,117	$ 4,810,106	$ 9,280,006	$ 9,358,755
Reportable segments
Segment profit (loss)
Segment profit	230,000	281,800	471,100	557,700
Energy, Chemicals and Mining
External revenue
Revenue	2,476,400	3,263,100	4,919,900	6,245,800
Energy, Chemicals and Mining | Reportable segments
Segment profit (loss)
Segment profit	125,500	229,400	307,500	447,200
Industrial, Infrastructure and Power
External revenue
Revenue	1,010,000	580,900	1,843,300	1,127,600
Industrial, Infrastructure and Power | Reportable segments
Segment profit (loss)
Segment profit	51,400	4,400	63,300	14,100
Government
External revenue
Revenue	657,900	603,100	1,343,900	1,249,100
Government | Reportable segments
Segment profit (loss)
Segment profit	22,000	17,200	39,100	32,000
Maintenance, Modification and Asset Integrity
External revenue
Revenue	711,800	363,000	1,172,900	736,300
Maintenance, Modification and Asset Integrity | Reportable segments
External revenue
Revenue			240,000
Segment profit (loss)
Segment profit	31,100	30,800	$ 61,200	64,400
Maintenance, Modification and Asset Integrity | Intercompany
External revenue
Revenue	$ 123,000	$ 108,000		$ 223,000

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Operating Information by Segment - Additional Operating Information (Details) - Reportable segments - Industrial, Infrastructure and Power - Nu Scale Power - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment reporting information
Research and development expense	$ 22	$ 19	$ 48	$ 36
Cost-sharing agreement, research and development activities | U.S. Department of Energy | Total cost of revenue
Segment reporting information
Qualified expenses reimbursed	$ 17	$ 17	$ 31	$ 31

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Operating Information by Segment - Reconciliation to Consolidated Amounts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of total segment profit to earnings attributable to Fluor Corporation
Corporate general and administrative expense	$ (52,640)	$ (47,785)	$ (107,753)	$ (88,895)
Interest income (expense), net	(14,200)	(7,400)	(25,700)	(14,900)
Income tax expense	(61,348)	(78,105)	(131,557)	(161,379)
NET EARNINGS ATTRIBUTABLE TO FLUOR CORPORATION	101,813	148,507	206,136	292,586
Reportable segments
Reconciliation of total segment profit to earnings attributable to Fluor Corporation
Segment profit	$ 230,000	$ 281,800	$ 471,100	$ 557,700

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Operating Information by Segment - Total Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Segment reporting information
Total assets	$ 9,241,467	$ 7,625,406
Reportable segments | Energy, Chemicals and Mining
Segment reporting information
Total assets	2,493,200	1,728,000
Reportable segments | Industrial, Infrastructure and Power
Segment reporting information
Total assets	734,900	544,200
Reportable segments | Government
Segment reporting information
Total assets	516,000	495,400
Reportable segments | Maintenance, Modification and Asset Integrity
Segment reporting information
Total assets	$ 2,106,100	$ 923,800

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Acquisition of Stork Holding B.V. - Purchase Consideration, Assumed Debt Obligations and Redemption of Assumed Stork Notes (Details)					1 Months Ended	6 Months Ended
	Mar. 17, 2016 USD ($)	Mar. 17, 2016 EUR (€)	Mar. 01, 2016 USD ($)	Mar. 01, 2016 EUR (€)	Apr. 30, 2016 EUR (€)	Jun. 30, 2016 USD ($)	Mar. 02, 2016 USD ($)	Mar. 02, 2016 EUR (€)	Mar. 01, 2016 EUR (€)
Acquisition
Amount borrowed under credit facility						$ 883,750,000
Stork Notes
Acquisition
Debt outstanding							$ 296,000,000	€ 273,000,000
Outstanding debt redeemed	$ 296,000,000	€ 273,000,000
Redemption premium	8,000,000	€ 7,000,000
Lines of credit
Acquisition
Maximum borrowing capacity						6,000,000,000
Lines of credit | Committed credit line
Acquisition
Maximum borrowing capacity						3,500,000,000
Lines of credit | Committed credit line | $1.7 billion Revolving Loan and Letter of Credit Facility, due May 2019
Acquisition
Amount borrowed under credit facility			$ 217,000,000	€ 200,000,000
Maximum borrowing capacity	$ 1,700,000,000		$ 1,700,000,000			$ 1,700,000,000
Lines of credit | Committed credit line | Super Senior Revolving Credit Facility
Acquisition
Maximum borrowing capacity | €					€ 110,000,000				€ 110,000,000
Lines of credit | Committed credit line | Super Senior Revolving Credit Facility | Euribor
Acquisition
Margin added to variable rate (as a percent)			3.75%	3.75%
Lines of credit | Committed credit line | April 2016 Revolving Credit Facility due April 2017
Acquisition
Maximum borrowing capacity | €					€ 125,000,000
Lines of credit | Committed credit line | April 2016 Revolving Credit Facility due April 2017 | Euribor
Acquisition
Margin added to variable rate (as a percent)					0.75%
Stork Holding B.V.
Acquisition
Ownership interest acquired (as a percent)			100.00%						100.00%
Total purchase consideration			$ 756,000,000	€ 695,000,000
Cash consideration			300,000,000	276,000,000
Amount paid from cash on hand			83,000,000	76,000,000
Stork Holding B.V. | Super Senior Revolving Credit Facility
Acquisition
Maximum borrowing capacity | €									€ 110,000,000
Stork Holding B.V. | Certain other outstanding debt obligations
Acquisition
Debt assumed			$ 22,000,000	€ 20,000,000

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Acquisition of Stork Holding B.V. - Purchase Price Allocation (Details) € in Thousands, $ in Thousands	Jun. 30, 2016 USD ($)	Mar. 01, 2016 USD ($)	Mar. 01, 2016 EUR (€)	Dec. 31, 2015 USD ($)
Estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date
Goodwill	$ 567,264			$ 111,646
Stork Holding B.V.
Estimate of the fair values of assets acquired and liabilities assumed as of the acquisition date
Cash and cash equivalents		$ 59,204	€ 54,441
Accounts and notes receivable		182,585	167,894
Contract work in progress		111,705	102,717
Other current assets		63,251	58,162
Property, plant and equipment		173,468	159,511
Investments		9,153	8,417
Intangible assets		181,410	166,814
Goodwill		447,411	411,413
Other assets		979	900
Trade accounts payable		(123,864)	(113,898)
Advance billings on contracts		(23,234)	(21,364)
Other accrued liabilities		(212,311)	(195,228)
Revolving credit facility and other borrowings		(435,248)	(400,228)
Long-term debt		(16,633)	(15,295)
Deferred taxes, net		(38,294)	(35,213)
Noncurrent liabilities		(70,676)	(64,989)
Noncontrolling interests		(8,962)	(8,241)
Net assets acquired		$ 299,944	€ 275,813

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Acquisition of Stork Holding B.V. - Additional Purchase Price Allocation Information (Details)	6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2016 EUR (€)	Mar. 01, 2016 USD ($)	Mar. 01, 2016 EUR (€)
Significant changes in purchase price allocation
Adjustment to the fair value of deferred taxes	$ 51,000,000	€ 47,000,000
Adjustment to the fair value of property, plant and equipment	9,000,000	8,000,000
Adjustment to the fair value of goodwill	$ 131,000,000	€ 120,000,000
Stork Holding B.V.
Goodwill
Goodwill expected to be deductible for tax purposes			$ 0	€ 0

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Acquisition of Stork Holding B.V. - Revenue and Earnings, Costs Expensed and Pro Forma Financial Information (Details) - Stork Holding B.V. - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Acquisition
Revenue since the acquisition date	$ 391,000		$ 512,000
Earnings before taxes since the acquisition date	4,000		7,000
Pro forma financial information
Pro forma revenue	4,856,117	$ 5,244,396	9,509,653	$ 10,194,460
Pro forma net earnings attributable to Fluor Corporation	102,354	$ 147,464	203,817	$ 284,999
Corporate general and administrative expense
Acquisition
Integration costs	5,000		11,000
Transaction costs	$ 1,000		$ 11,000

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Discontinued Operations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
St. Joe Minerals Corporation and The Doe Run Company litigation matters | St. Joe Minerals Corporation and The Doe Run Company | Discontinued operations sold
Discontinued Operations
Payments to settle litigation cases	$ 306