8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 26, 2008

______________________________

KBR, INC.

(Exact name of registrant as specified in its charter)

Delaware 1-33146 20-4536774

(State or other jurisdiction (Commission File Number) (IRS Employer

of incorporation) Identification No.)

601 Jefferson Street

Suite 3400

Houston, Texas77002

(Address of principal executive offices)

Registrant’s telephone number, including area code: (713) 753-3011

______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01. Other Events.

On August 26, 2008, KBR announced that a judgment has been entered against KBR in the Associated Construction Company WLL (ASCO) case in the amount of just over $27 million, including damages, attorney’s fees and interest. KBR previously accrued approximately $40 million representing the probable estimate of the jury award. The press release announcing the judgment is attached hereto as Exhibit 99.1.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1      Press Release dated August 26, 2008, entitled “Court Reduces Award in Final Judgment in Associated Construction Company WLL Case against KBR.”

SIGNATURE

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 hereunto duly authorized.

KBR, INC.

Date: August 28, 2008	By:	/s/ Jeffrey B. King
		Vice President, Public Law

EX-99

FOR IMMEDIATE RELEASE Contact: Heather Browne

August 26, 2008 Director, Communications

713-753-3775

heather.browne@kbr.com

Rob Kukla, Jr.

Director, Investor Relations

713-753-5082

investors@kbr.com

Court Reduces Award in Final Judgment in

Associated Construction Company WLL Case against KBR

HOUSTON – KBR (NYSE: KBR) announced today that a judgment has been entered in the Associated Construction Company WLL (ASCO) case. ASCO was a subcontractor to KBR in Iraq and performed work under the LOGCAP III contract. The total judgment is just over $27 million, which includes damages, attorney’s fees, and interest. KBR previously accrued approximately $40 million representing the probable estimate of the jury award.

KBR believes there are additional errors in the verdict and judgment, and the company is evaluating its options on appeal. KBR also believes that the remaining jury award for extra work would be properly billable to the government once the issues are finally resolved.

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

NOTE: This news release contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. You can generally identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should” or other similar words. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from those in the future that are implied by these forward-looking statements. Many of these factors cannot be controlled or predicted. These risks and other factors include those described under “Risk Factors” in KBR’s Annual Report on Form 10-K dated February 26, 2008, final prospectus for its exchange offer dated March 27, 2007, subsequent Forms 10-Q, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings. Those factors, among others, could cause KBR’s actual results and performance to differ materially from the results and performance projected in, or implied by, the forward-looking statements. As you read and consider this news release, you should carefully understand that the forward-looking statements are not guarantees of performance or results. KBR cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual

results. Therefore, KBR cannot assure you that actual results will not differ materially from those expressed or implied by forward-looking statements.

The forward-looking statements included in this news release are made only as of the date of this document. New risks and uncertainties arise from time to time, and KBR cannot predict those events or their impact. KBR assumes no obligation to update any forward-looking statements after the date of this news release as a result of new information, future events or developments, except as required by the federal securities laws.