Pension Plans (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule Of Allocation Of Plan Assets |
The range of targeted asset allocations for our U.S. plans for 2018 and 2017, by asset class, are as follows: | | | | | | | | | | | | | Domestic Plans | 2018 Targeted | | 2017 Targeted | | Percentage Range | | Percentage Range | | Minimum | | Maximum | | Minimum | | Maximum | Cash and cash equivalents | — | % | | — | % | | — | % | | — | % | Equity funds and securities | 50 | % | | 53 | % | | 52 | % | | 55 | % | Fixed income funds and securities | 37 | % | | 40 | % | | 44 | % | | 47 | % | Real estate funds | 1 | % | | 1 | % | | 1 | % | | 1 | % | Other | 9 | % | | 9 | % | | — | % | | — | % |
The range of targeted asset allocations for our International plans for 2018 and 2017, by asset class, are as follows: | | | | | | | | | | | | | International Plans | 2018 Targeted | | 2017 Targeted | | Percentage Range | | Percentage Range | | Minimum | | Maximum | | Minimum | | Maximum | Equity funds and securities | — | % | | 60 | % | | — | % | | 60 | % | Fixed income funds and securities | — | % | | 100 | % | | — | % | | 100 | % | Hedge funds | — | % | | 35 | % | | — | % | | 35 | % | Real estate funds | — | % | | 10 | % | | — | % | | 10 | % | Other | — | % | | 20 | % | | — | % | | 20 | % |
|
| Schedule of Obligations under the deferred compensation plan |
The following table presents our obligations under our employee deferred compensation plan included in "Employee compensation and benefits" in our consolidated balance sheets. | | | | | | | | | | December 31, | Dollars in millions | 2017 | | 2016 | Deferred compensation plans obligations | $ | 68 |
| | $ | 70 |
|
|
| Pension Benefits |
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule Of Changes In Projected Benefit Obligations |
Plan assets, expenses and obligations for retirement plans are presented in the following tables. | | | | | | | | | | | | | | | | | | United States | | Int’l | | United States | | Int’l | Dollars in millions | 2017 | | 2016 | Change in projected benefit obligations: | | | | | | | | Projected benefit obligations at beginning of period | $ | 75 |
| | $ | 1,970 |
| | $ | 75 |
| | $ | 1,849 |
| Acquisitions | — |
| | — |
| | 12 |
| | 3 |
| Service cost | — |
| | 1 |
| | — |
| | 1 |
| Interest cost | 3 |
| | 53 |
| | 3 |
| | 63 |
| Foreign currency exchange rate changes | — |
| | 186 |
| | — |
| | (304 | ) | Actuarial (gain) loss | 3 |
| | (78 | ) | | — |
| | 448 |
| Other | — |
| | (1 | ) | | — |
| | (1 | ) | Benefits paid | (4 | ) | | (85 | ) | | (15 | ) | | (89 | ) | Projected benefit obligations at end of period | $ | 77 |
| | $ | 2,046 |
| | $ | 75 |
| | $ | 1,970 |
| Change in plan assets: | | | | | | | | Fair value of plan assets at beginning of period | $ | 56 |
| | $ | 1,463 |
| | $ | 59 |
| | $ | 1,532 |
| Acquisitions | — |
| | — |
| | 8 |
| | — |
| Actual return on plan assets | 7 |
| | 119 |
| | 3 |
| | 235 |
| Employer contributions | 1 |
| | 36 |
| | 1 |
| | 40 |
| Foreign currency exchange rate changes | — |
| | 141 |
| | — |
| | (255 | ) | Benefits paid | (4 | ) | | (85 | ) | | (15 | ) | | (89 | ) | Other | (1 | ) | | (1 | ) | | — |
| | — |
| Fair value of plan assets at end of period | $ | 59 |
| | $ | 1,673 |
| | $ | 56 |
| | $ | 1,463 |
| Funded status | $ | (18 | ) | | $ | (373 | ) | | $ | (19 | ) | | $ | (507 | ) |
|
| Schedule Of Amounts Recognized On Consolidated Balance Sheet |
| | | | | | | | | | | | | | | | | | United States | | Int’l | | United States | | Int’l | Dollars in millions | 2017 | | 2016 | Amounts recognized on the consolidated balance sheets | | | | | | | | Pension obligations | $ | 18 |
| | $ | 373 |
| | $ | 19 |
| | $ | 507 |
|
|
| Components Of Net Periodic Benefit Cost |
Net periodic cost | | | | | | | | | | | | | | | | | | | | | | | | | | United States | | Int’l | | United States | | Int’l | | United States | | Int’l | Dollars in millions | 2017 | | 2016 | | 2015 | Components of net periodic benefit cost | | | | | | | | | | | | Service cost | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | 2 |
| Interest cost | 3 |
| | 53 |
| | 3 |
| | 63 |
| | 2 |
| | 76 |
| Expected return on plan assets | (3 | ) | | (77 | ) | | (3 | ) | | (87 | ) | | (3 | ) | | (97 | ) | Settlements/curtailments | — |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Recognized actuarial loss | 1 |
| | 30 |
| | 1 |
| | 28 |
| | 5 |
| | 43 |
| Net periodic benefit cost | $ | 1 |
| | $ | 7 |
| | $ | 2 |
| | $ | 5 |
| | $ | 4 |
| | $ | 24 |
|
|
| Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) |
The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 and 2016, net of tax were as follows: | | | | | | | | | | | | | | | | | | United States | | Int’l | | United States | | Int’l | Dollars in millions | 2017 | | 2016 | Unrecognized actuarial loss, net of tax of $10 and $217, and $10 and $244, respectively | $ | 22 |
| | $ | 638 |
| | $ | 24 |
| | $ | 761 |
| Total in accumulated other comprehensive loss | $ | 22 |
| | $ | 638 |
| | $ | 24 |
| | $ | 761 |
|
|
| Schedule Of Amounts In Accumulated Other Comprehensive Income To Be Amortized Into Net Periodic Benefit Cost In 2014 |
Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2018 are as follows: | | | | | | | | | Dollars in millions | United States | | Int’l | Actuarial loss | $ | 1 |
| | $ | 22 |
| Total | $ | 1 |
| | $ | 22 |
|
|
| Schedule Of Weighted-Average Assumptions |
| | | | | | | | | | | | | | | | | | | Weighted-average assumptions used to determine net periodic benefit cost | | | United States | | Int'l | | United States | | Int'l | | United States | | Int'l | | 2017 | | 2016 | | 2015 | Discount rate | 3.73 | % | | 2.60 | % | | 3.42 | % | | 3.75 | % | | 2.89 | % | | 3.65 | % | Expected return on plan assets | 6.01 | % | | 5.40 | % | | 5.00 | % | | 6.10 | % | | 4.81 | % | | 6.25 | % |
| | | | | | | | | | | | | Weighted-average assumptions used to determine benefit obligations at measurement date | | | United States | | Int'l | | United States | | Int'l | | 2017 | | 2016 | Discount rate | 3.33 | % | | 2.50 | % | | 3.73 | % | | 2.60 | % |
|
| Schedule Of Allocation Of Plan Assets |
The target asset allocation for our U.S. and International plans for 2018 is as follows: | | | | | | | Asset Allocation | 2018 Targeted | | United States | | Int'l | Equity funds and securities | 51 | % | | 30 | % | Fixed income funds and securities | 39 | % | | 50 | % | Hedge funds | — | % | | — | % | Real estate funds | 1 | % | | 5 | % | Other | 9 | % | | 15 | % | Total | 100 | % | | 100 | % |
A summary of total investments for KBR’s pension plan assets measured at fair value is presented below. | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date | Dollars in millions | Total | | Level 1 | | Level 2 | | Level 3 | Asset Category at December 31, 2017 | | | | | | | | United States plan assets | | | | | | | | Investments measured at net asset value (a) | $ | 59 |
| | $ | — |
| | $ | — |
| | $ | — |
| Total United States plan assets | $ | 59 |
| | $ | — |
| | $ | — |
| | $ | — |
| International plan assets | | | | | | | | Equities | $ | 60 |
| | $ | 34 |
| | $ | — |
| | $ | 26 |
| Fixed income | 5 |
| | — |
| | — |
| | 5 |
| Real estate | 3 |
| | — |
| | — |
| | 3 |
| Cash and cash equivalents | 8 |
| | 8 |
| | — |
| | — |
| Other | 40 |
| | — |
| | — |
| | 40 |
| Investments measured at net asset value (a) | 1,557 |
| | — |
| | — |
| | — |
| Total international plan assets | $ | 1,673 |
| | $ | 42 |
| | $ | — |
| | $ | 74 |
| Total plan assets at December 31, 2017 | $ | 1,732 |
| | $ | 42 |
| | $ | — |
| | $ | 74 |
|
| | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date | Dollars in millions | Total | | Level 1 | | Level 2 | | Level 3 | Asset Category at December 31, 2016 | | | | | | | | United States plan assets | | | | | | | | Investments measured at net asset value (a) | $ | 56 |
| | $ | — |
| | $ | — |
| | $ | — |
| Total United States plan assets | $ | 56 |
| | $ | — |
| | $ | — |
| | $ | — |
| International plan assets | | | | | | | | Equities | $ | 76 |
| | $ | 60 |
| | $ | — |
| | $ | 16 |
| Fixed income | 12 |
| | — |
| | — |
| | 12 |
| Real estate | 4 |
| | — |
| | — |
| | 4 |
| Cash and cash equivalents | 8 |
| | 8 |
| | — |
| | — |
| Other | 50 |
| | — |
| | — |
| | 50 |
| Investments measured at net asset value (a) | 1,313 |
| | — |
| | — |
| | — |
| Total international plan assets | $ | 1,463 |
| | $ | 68 |
| | $ | — |
| | $ | 82 |
| Total plan assets at December 31, 2016 | $ | 1,519 |
| | $ | 68 |
| | $ | — |
| | $ | 82 |
|
|
| Schedule Of Expected Benefit Payments |
Benefit payments. The following table presents the expected benefit payments over the next 10 years. | | | | | | | | | | Pension Benefits | Dollars in millions | United States | | Int’l | 2018 | $ | 5 |
| | $ | 56 |
| 2019 | $ | 5 |
| | $ | 57 |
| 2020 | $ | 5 |
| | $ | 58 |
| 2021 | $ | 5 |
| | $ | 60 |
| 2022 | $ | 5 |
| | $ | 61 |
| Years 2023 – 2027 | $ | 25 |
| | $ | 327 |
|
|
| Int’l |
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule Of Fair Value Measurement Of Plan Assets Using Significant Unobservable Inputs |
The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following:
| | | | | | | | | | | | | | | | | | | | | Dollars in millions | Total | | Equities | | Fixed Income | | Real Estate | | Other | International plan assets | | | | | | | | | | Balance as of December 31, 2015 | $ | 45 |
| | $ | 12 |
| | $ | 14 |
| | $ | 6 |
| | $ | 13 |
| Return on assets held at end of year | 14 |
| | 1 |
| | 1 |
| | 1 |
| | 11 |
| Purchases, sales and settlements | 32 |
| | 5 |
| | (1 | ) | | (3 | ) | | 31 |
| Foreign exchange impact | (9 | ) | | (2 | ) | | (2 | ) | | — |
| | (5 | ) | Balance as of December 31, 2016 | $ | 82 |
| | $ | 16 |
| | $ | 12 |
| | $ | 4 |
| | $ | 50 |
| Return on assets held at end of year | (1 | ) | | 3 |
| | — |
| | (1 | ) | | (3 | ) | Return on assets sold during the year | 3 |
| | — |
| | — |
| | — |
| | 3 |
| Purchases, sales and settlements, net | (15 | ) | | 5 |
| | (8 | ) | | (1 | ) | | (11 | ) | Foreign exchange impact | 5 |
| | 2 |
| | 1 |
| | 1 |
| | 1 |
| Balance as of December 31, 2017 | $ | 74 |
| | $ | 26 |
| | $ | 5 |
| | $ | 3 |
| | $ | 40 |
|
|