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PROJECT CHANGES IN ESTIMATES
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
PROJECT CHANGES IN ESTIMATES

NOTE 5—PROJECT CHANGES IN ESTIMATES

Our RPOs for each of our operating groups generally consist of several hundred contracts, and our results may be impacted by changes in estimated margins. The following is a discussion of our most significant changes in cost estimates that impacted 2018, 2017 and 2016 segment operating income. For discussion of significant changes in estimates on loss projects impacting the fair value of our acquired balance sheet in the Combination, see Note 4, Revenue Recognition. For discussion of significant changes in estimates resulting from changes in transaction prices, see Note 8, Contracts in Progress and Advance Billings on Contracts.

2018

Segment operating income in 2018 was impacted by net favorable changes in estimates totaling approximately $29 million, primarily in our MENA and APAC segments, partially offset by our NCSA segment.

NCSA—Our segment results for the year ended December 31, 2018 were negatively impacted by net unfavorable changes in estimates aggregating approximately $190 million, primarily due to cost increases on our Cameron LNG and Calpine loss projects in the United States and the Abkatun-A2 platform project in Mexico (see Note 4, Revenue Recognition for discussion), partially offset by savings on various projects in the United States.

MENA—Our segment results in 2018 were positively impacted by net favorable changes in estimates aggregating approximately $163 million, primarily due to productivity improvements and cost savings on marine, fabrication and other activities related to three of our projects in the Middle East.

APAC—Our segment results in 2018 were positively impacted by net favorable changes in estimates aggregating approximately $56 million. The net favorable changes were due to reductions in costs to complete on offshore campaigns and several other active projects, primarily on two of our Australian projects, partially offset by cost increases and weather downtime on various projects.

2017

Segment operating income in 2017 was positively impacted by net favorable changes in estimates totaling approximately $165 million, primarily in our MENA (approximately $103 million) and APAC (approximately $62 million) segments.

2016

Segment operating income for 2016 was impacted by net favorable changes in cost estimates totaling approximately $91 million, primarily in our NCSA (approximately $38 million), MENA (approximately $38 million) and APAC (approximately $17 million) segments.