Delaware
|
1-33146
|
20-4536774
|
(State or other jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
of incorporation)
|
Identification No.)
|
(d)
|
Exhibits.
|
99.1 | KBR, Inc. press release dated November 2, 2015 entitled, "KBR Announces Strong Third Quarter 2015 Earnings." |
KBR, Inc. | |||
Date: November 2, 2015
|
By:
|
/s/ Beth Ann Dranguet | |
Beth Ann Dranguet | |||
Assistant Corporate Secretary | |||
KBR, Inc.: Condensed Consolidated Statements of Income
|
||||||||||||
(In millions, except for per share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
September 30,
|
September 30,
|
June 30,
|
||||||||||
2015
|
2014
|
2015
|
||||||||||
Revenues:
|
||||||||||||
Technology & Consulting
|
$
|
79
|
$
|
94
|
$
|
80
|
||||||
Engineering & Construction
|
828
|
1,196
|
953
|
|||||||||
Government Services
|
176
|
178
|
158
|
|||||||||
Subtotal
|
1,083
|
1,468
|
1,191
|
|||||||||
Non-strategic Business
|
116
|
189
|
190
|
|||||||||
Total revenues
|
1,199
|
1,657
|
1,381
|
|||||||||
Gross profit (loss):
|
||||||||||||
Technology & Consulting
|
17
|
18
|
21
|
|||||||||
Engineering & Construction
|
48
|
46
|
52
|
|||||||||
Government Services
|
8
|
24
|
(1
|
)
|
||||||||
Subtotal
|
73
|
88
|
72
|
|||||||||
Non-strategic Business
|
14
|
(58
|
)
|
2
|
||||||||
Total gross profit
|
87
|
30
|
74
|
|||||||||
Equity in earnings of unconsolidated affiliates:
|
||||||||||||
Technology & Consulting
|
-
|
-
|
-
|
|||||||||
Engineering & Construction
|
26
|
26
|
40
|
|||||||||
Government Services
|
9
|
12
|
13
|
|||||||||
Subtotal
|
35
|
38
|
53
|
|||||||||
Non-strategic Business
|
-
|
-
|
-
|
|||||||||
Total equity in earnings of unconsolidated affiliates
|
35
|
38
|
53
|
|||||||||
General and administrative expenses
|
(38
|
)
|
(58
|
)
|
(42
|
)
|
||||||
Asset impairment and restructuring charges
|
(15
|
)
|
-
|
(17
|
)
|
|||||||
Gain on disposition of assets
|
6
|
-
|
28
|
|||||||||
Operating income
|
75
|
10
|
96
|
|||||||||
Other non-operating income (expenses)
|
3
|
34
|
(5
|
)
|
||||||||
Income before income taxes and noncontrolling interests
|
78
|
44
|
91
|
|||||||||
Benefit (provision) for income taxes
|
(19
|
)
|
1
|
(23
|
)
|
|||||||
Net income
|
59
|
45
|
68
|
|||||||||
Net income attributable to noncontrolling interests
|
(4
|
)
|
(15
|
)
|
(6
|
)
|
||||||
Net income attributable to KBR
|
$
|
55
|
$
|
30
|
$
|
62
|
||||||
Net income attributable to KBR per share:
|
||||||||||||
Basic
|
$
|
0.38
|
$
|
0.21
|
$
|
0.43
|
||||||
Diluted
|
$
|
0.38
|
$
|
0.21
|
$
|
0.43
|
||||||
Basic weighted average common shares outstanding
|
144
|
145
|
144
|
|||||||||
Diluted weighted average common shares outstanding
|
144
|
145
|
144
|
|||||||||
Cash dividends declared per share
|
$
|
0.08
|
$
|
0.08
|
$
|
0.08
|
KBR, Inc.: Condensed Consolidated Statements of Income
|
||||||||
(In millions, except for per share data)
|
||||||||
(Unaudited)
|
||||||||
Nine Months Ended
|
||||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
|||||||
Revenues:
|
||||||||
Technology & Consulting
|
$
|
231
|
$
|
285
|
||||
Engineering & Construction
|
2,758
|
3,546
|
||||||
Government Services
|
489
|
527
|
||||||
Subtotal
|
3,478
|
4,358
|
||||||
Non-strategic Business
|
538
|
591
|
||||||
Total revenues
|
4,016
|
4,949
|
||||||
Gross profit (loss):
|
||||||||
Technology & Consulting
|
57
|
48
|
||||||
Engineering & Construction
|
155
|
108
|
||||||
Government Services
|
3
|
28
|
||||||
Subtotal
|
215
|
184
|
||||||
Non-strategic Business
|
16
|
(87
|
)
|
|||||
Total gross profit
|
231
|
97
|
||||||
Equity in earnings of unconsolidated affiliates:
|
||||||||
Technology & Consulting
|
-
|
-
|
||||||
Engineering & Construction
|
87
|
63
|
||||||
Government Services
|
36
|
55
|
||||||
Subtotal
|
123
|
118
|
||||||
Non-strategic Business
|
-
|
-
|
||||||
Total equity in earnings of unconsolidated affiliates
|
123
|
118
|
||||||
General and administrative expenses
|
(119
|
)
|
(178
|
)
|
||||
Asset impairment and restructuring charges
|
(34
|
)
|
-
|
|||||
Gain on disposition of assets
|
34
|
8
|
||||||
Operating income
|
235
|
45
|
||||||
Other non-operating income
|
4
|
18
|
||||||
Income before income taxes and noncontrolling interests
|
239
|
63
|
||||||
Provision for income taxes
|
(61
|
)
|
(30
|
)
|
||||
Net income
|
178
|
33
|
||||||
Net income attributable to noncontrolling interests
|
(17
|
)
|
(54
|
)
|
||||
Net income (loss) attributable to KBR
|
$
|
161
|
$
|
(21
|
)
|
|||
Net income (loss) attributable to KBR per share:
|
||||||||
Basic
|
$
|
1.11
|
$
|
(0.14
|
)
|
|||
Diluted
|
$
|
1.11
|
$
|
(0.14
|
)
|
|||
Basic weighted average common shares outstanding
|
144
|
145
|
||||||
Diluted weighted average common shares outstanding
|
144
|
145
|
||||||
Cash dividends declared per share
|
$
|
0.24
|
$
|
0.24
|
KBR, Inc.: Condensed Consolidated Balance Sheet
|
||||||||
(In millions, except share data)
|
||||||||
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and equivalents
|
$
|
768
|
$
|
970
|
||||
Accounts receivable, net of allowance for doubtful accounts of $20 and $19
|
699
|
847
|
||||||
Costs and estimated earnings in excess of billings on uncompleted contracts ("CIE")
|
284
|
490
|
||||||
Deferred income taxes
|
68
|
90
|
||||||
Other current assets
|
143
|
147
|
||||||
Total current assets
|
1,962
|
2,544
|
||||||
Property, plant and equipment, net of accumulated depreciation of $340 and $385 (including net PPE of
|
||||||||
$51 and $57 owned by a variable interest entity)
|
198
|
247
|
||||||
Goodwill
|
324
|
324
|
||||||
Intangible assets, net of accumulated amortization of $90 and $96
|
38
|
41
|
||||||
Equity in and advances to unconsolidated affiliates
|
261
|
151
|
||||||
Deferred income taxes
|
176
|
174
|
||||||
Claims and accounts receivable
|
549
|
570
|
||||||
Other assets
|
143
|
148
|
||||||
Total assets
|
$
|
3,651
|
$
|
4,199
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
485
|
$
|
742
|
||||
Payable to former parent
|
19
|
56
|
||||||
Billings in excess of costs and estimated earnings on uncompleted contracts ("BIE")
|
500
|
531
|
||||||
Accrued salaries, wages and benefits
|
176
|
197
|
||||||
Nonrecourse project debt
|
10
|
10
|
||||||
Other current liabilities
|
326
|
488
|
||||||
Total current liabilities
|
1,516
|
2,024
|
||||||
Pension obligations
|
444
|
502
|
||||||
Employee compensation and benefits
|
110
|
112
|
||||||
Income tax payable
|
72
|
69
|
||||||
Deferred income taxes
|
175
|
170
|
||||||
Nonrecourse project debt
|
56
|
63
|
||||||
Deferred income from unconsolidated affiliates
|
103
|
95
|
||||||
Other liabilities
|
201
|
229
|
||||||
Total liabilities
|
2,677
|
3,264
|
||||||
KBR shareholders' equity:
|
||||||||
Preferred stock
|
-
|
-
|
||||||
Common stock
|
-
|
-
|
||||||
Paid-in capital in excess of par
|
2,066
|
2,091
|
||||||
Accumulated other comprehensive loss
|
(920
|
)
|
(876
|
)
|
||||
Retained earnings
|
565
|
439
|
||||||
Treasury stock
|
(729
|
)
|
(712
|
)
|
||||
Total KBR shareholders' equity
|
982
|
942
|
||||||
Noncontrolling interests ("NCI")
|
(8
|
)
|
(7
|
)
|
||||
Total shareholders' equity
|
974
|
935
|
||||||
Total liabilities and shareholders' equity
|
$
|
3,651
|
$
|
4,199
|
KBR, Inc.: Condensed Consolidated Statements of Cash Flows
|
||||||||||||
(In millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
September 30,
|
June 30,
|
September 30,
|
||||||||||
2015
|
2015
|
2014
|
||||||||||
Cash flows from (used in) operating activities:
|
||||||||||||
Net income
|
$
|
59
|
$
|
68
|
$
|
45
|
||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
10
|
8
|
19
|
|||||||||
Equity in earnings of unconsolidated affiliates
|
(35
|
)
|
(53
|
)
|
(38
|
)
|
||||||
Deferred income tax (benefit) expense
|
17
|
(3
|
)
|
(13
|
)
|
|||||||
Gain on disposition of assets
|
(6
|
)
|
(28
|
)
|
-
|
|||||||
Gain on negotiated settlement with former parent
|
-
|
-
|
(24
|
)
|
||||||||
Other
|
19
|
9
|
4
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable, net of allowance for doubtful accounts
|
30
|
(52
|
)
|
(27
|
)
|
|||||||
Costs and estimated earnings in excess of billings on uncompleted contracts
|
30
|
94
|
(21
|
)
|
||||||||
Accounts payable
|
(104
|
)
|
(33
|
)
|
(12
|
)
|
||||||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
33
|
(35
|
)
|
45
|
||||||||
Accrued salaries, wages and benefits
|
(9
|
)
|
4
|
(15
|
)
|
|||||||
Reserve for loss on uncompleted contracts
|
(18
|
)
|
(45
|
)
|
(4
|
)
|
||||||
Receipts of advances from unconsolidated affiliates, net
|
6
|
(2
|
)
|
7
|
||||||||
Distributions of earnings from unconsolidated affiliates
|
12
|
35
|
153
|
|||||||||
Income taxes payable
|
8
|
(4
|
)
|
2
|
||||||||
Pension funding
|
(16
|
)
|
(10
|
)
|
(13
|
)
|
||||||
Net settlement of derivative contracts
|
(1
|
)
|
(3
|
)
|
(4
|
)
|
||||||
Other assets and liabilities
|
19
|
19
|
54
|
|||||||||
Total cash flows provided by (used in) operating activities
|
54
|
(31
|
)
|
158
|
||||||||
Cash flows from (used in) investing activities:
|
||||||||||||
Purchases of property, plant and equipment
|
(4
|
)
|
(3
|
)
|
(12
|
)
|
||||||
Payment for investment in partnership
|
(15
|
)
|
-
|
-
|
||||||||
Proceeds from sale of assets or investments
|
48
|
23
|
-
|
|||||||||
Total cash flows provided by (used in) investing activities
|
29
|
20
|
(12
|
)
|
||||||||
Cash flows used in financing activities:
|
||||||||||||
Payments to reacquire common stock
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||||
Investments from noncontrolling interests
|
-
|
-
|
2
|
|||||||||
Distributions to noncontrolling interests
|
(9
|
)
|
(5
|
)
|
(16
|
)
|
||||||
Payments of dividends to shareholders
|
(12
|
)
|
(11
|
)
|
(11
|
)
|
||||||
Excess tax benefits from share-based compensation
|
-
|
-
|
(1
|
)
|
||||||||
Payments on short-term and long-term borrowings
|
-
|
(7
|
)
|
-
|
||||||||
Other
|
(4
|
)
|
1
|
1
|
||||||||
Total cash flows used in financing activities
|
(30
|
)
|
(23
|
)
|
(31
|
)
|
||||||
Effect of exchange rate changes on cash
|
(16
|
)
|
7
|
(36
|
)
|
|||||||
Decrease in cash and equivalents
|
37
|
(27
|
)
|
79
|
||||||||
Cash and equivalents at beginning of period
|
731
|
758
|
969
|
|||||||||
Cash and equivalents at end of period
|
$
|
768
|
$
|
731
|
$
|
1,048
|
KBR, Inc.: Condensed Consolidated Statements of Cash Flows
|
||||||||
(In millions)
|
||||||||
(Unaudited)
|
||||||||
Nine Months Ended
|
||||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
|||||||
Cash flows from (used in) operating activities:
|
||||||||
Net income
|
$
|
178
|
$
|
33
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
29
|
55
|
||||||
Equity in earnings of unconsolidated affiliates
|
(123
|
)
|
(118
|
)
|
||||
Deferred income tax (benefit) expense
|
14
|
(2
|
)
|
|||||
Gain on disposition of assets
|
(34
|
)
|
(8
|
)
|
||||
Gain on negotiated settlement with former parent
|
-
|
(24
|
)
|
|||||
Other
|
29
|
33
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net of allowance for doubtful accounts
|
(19
|
)
|
66
|
|||||
Costs and estimated earnings in excess of billings on uncompleted contracts
|
168
|
(109
|
)
|
|||||
Accounts payable
|
(239
|
)
|
(43
|
)
|
||||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
(10
|
)
|
53
|
|||||
Accrued salaries, wages and benefits
|
(5
|
)
|
(16
|
)
|
||||
Reserve for loss on uncompleted contracts
|
(100
|
)
|
13
|
|||||
Receipts of advances from unconsolidated affiliates, net
|
10
|
14
|
||||||
Distributions of earnings from unconsolidated affiliates
|
84
|
212
|
||||||
Income taxes payable
|
(7
|
)
|
22
|
|||||
Pension funding
|
(37
|
)
|
(37
|
)
|
||||
Net settlement of derivative contracts
|
(40
|
)
|
2
|
|||||
Other assets and liabilities
|
17
|
32
|
||||||
Total cash flows provided by (used in) operating activities
|
(85
|
)
|
178
|
|||||
Cash flows from (used in) investing activities:
|
||||||||
Purchases of property, plant and equipment
|
(8
|
)
|
(46
|
)
|
||||
Payment for investment in partnership
|
(15
|
)
|
-
|
|||||
Proceeds from sale of assets or investments
|
71
|
9
|
||||||
Total cash flows provided by (used in) investing activities
|
48
|
(37
|
)
|
|||||
Cash flows used in financing activities:
|
||||||||
Payments to reacquire common stock
|
(22
|
)
|
(102
|
)
|
||||
Acquisition of noncontrolling interest
|
(40
|
)
|
-
|
|||||
Investments from noncontrolling interests
|
-
|
10
|
||||||
Distributions to noncontrolling interests
|
(21
|
)
|
(49
|
)
|
||||
Payments of dividends to shareholders
|
(35
|
)
|
(35
|
)
|
||||
Net proceeds from issuance of common stock
|
1
|
4
|
||||||
Payments on short-term and long-term borrowings
|
(7
|
)
|
(7
|
)
|
||||
Other
|
(4
|
)
|
1
|
|||||
Total cash flows used in financing activities
|
(128
|
)
|
(178
|
)
|
||||
Effect of exchange rate changes on cash
|
(37
|
)
|
(21
|
)
|
||||
Decrease in cash and equivalents
|
(202
|
)
|
(58
|
)
|
||||
Cash and equivalents at beginning of period
|
970
|
1,106
|
||||||
Cash and equivalents at end of period
|
$
|
768
|
$
|
1,048
|
KBR, Inc. Backlog Information
|
||||||||||||
(Millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
September 30,
|
June 30,
|
December 31,
|
||||||||||
2015
|
2015
|
2014
|
||||||||||
Technology & Consulting
|
$
|
423
|
$
|
421
|
$
|
400
|
||||||
Engineering & Construction
|
5,740
|
7,353
|
7,788
|
|||||||||
Government Services
|
6,783
|
7,068
|
1,763
|
|||||||||
Subtotal
|
12,946
|
14,842
|
9,951
|
|||||||||
Non-strategic Business
|
354
|
456
|
908
|
|||||||||
Total backlog(b)
|
$
|
13,300
|
$
|
15,298
|
$
|
10,859
|
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