CONDENSED CONSOLIDATING FINANCIAL INFORMATION

6 Months Ended

Jul. 04, 2014

Notes to Financial Statements [Abstract]

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

NOTE 17. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

On March 15, 2012, the Parent and Fox LP issued the Senior Notes. See Note 8, “Indebtedness,” for more information.

Consistent with the arrangement between Parent and Fox LP, $399 million and $600 million of the Senior Notes are included in the liabilities of Parent and Fox LP, respectively, as of July 4, 2014. As of January 3, 2014, $299 million and $700 million of the Senior Notes are included in the liabilities of Parent and Fox LP, respectively.

The following is our condensed consolidating financial information, segregating the issuers, guarantor subsidiaries and non-guarantor subsidiaries, as of July 4, 2014 and January 3, 2014, and for the three and six months ended July 4, 2014 and June 28, 2013.

						CONDENSED CONSOLIDATING BALANCE SHEET – UNAUDITED
						As of July 4, 2014
(in millions)						Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
ASSETS
Current assets:
	Cash and cash equivalents					$	54	$	—	$	25	$	247	$	(43)	$	283
	Accounts receivable, including retentions						—		—		761		624		(11)		1,374
	Costs and accrued earnings in excess of billings on contracts						—		—		966		575		(4)		1,537
	Less receivable allowances						—		—		(23)		(36)		—		(59)
		Net accounts receivable					—		—		1,704		1,163		(15)		2,852
	Intercompany accounts receivable						489		25		2,235		430		(3,179)		—
	Other current assets						14		—		122		117		(22)		231
			Total current assets				557		25		4,086		1,957		(3,259)		3,366
Investments in and advances to subsidiaries and unconsolidated joint ventures							5,454		67		1,520		178		(6,975)		244
Property and equipment, net							28		—		179		385		—		592
Intangible assets, net							—		—		207		316		—		523
Goodwill							—		—		2,230		1,479		—		3,709
Other long-term assets							18		—		109		97		(3)		221
					Total assets	$	6,057	$	92	$	8,331	$	4,412	$	(10,237)	$	8,655
LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt					$	2	$	—	$	23	$	26	$	—	$	51
	Accounts payable and subcontractors payable, including retentions						11		—		410		332		(61)		692
	Accrued salaries and employee benefits						38		—		350		135		—		523
	Billings in excess of costs and accrued earnings on contracts						—		—		120		102		—		222
	Intercompany accounts payable						1,726		—		1,125		328		(3,179)		—
	Short-term intercompany notes payable						66		—		21		230		(317)		—
	Other current liabilities						32		9		276		29		(19)		327
			Total current liabilities				1,875		9		2,325		1,182		(3,576)		1,815
Long-term debt							1,007		600		47		125		—		1,779
Deferred tax liabilities							—		—		357		74		(3)		428
Self-insurance reserves							—		—		11		117		—		128
Pension and post-retirement benefit obligations							—		—		117		164		—		281
Long-term intercompany notes payable							—		—		568		1,166		(1,734)		—
Other long-term liabilities							4		—		102		30		—		136
				Total liabilities			2,886		609		3,527		2,858		(5,313)		4,567
URS stockholders' equity							3,943		24		5,454		1,497		(6,975)		3,943
Intercompany notes receivable							(772)		(541)		(650)		(88)		2,051		—
			Total URS stockholders' equity				3,171		(517)		4,804		1,409		(4,924)		3,943
Noncontrolling interests							—		—		—		145		—		145
				Total stockholders' equity			3,171		(517)		4,804		1,554		(4,924)		4,088
					Total liabilities and stockholders' equity	$	6,057	$	92	$	8,331	$	4,412	$	(10,237)	$	8,655

						CONDENSED CONSOLIDATING BALANCE SHEET - UNAUDITED
						As of January 3, 2014
(in millions)						Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
ASSETS
Current assets:
	Cash and cash equivalents					$	107	$	—	$	20	$	205	$	(48)	$	284
	Accounts receivable, including retentions						—		—		815		590		(12)		1,393
	Costs and accrued earnings in excess of billings on contracts						—		—		980		547		(6)		1,521
	Less receivable allowances						—		—		(30)		(35)		—		(65)
		Net accounts receivable					—		—		1,765		1,102		(18)		2,849
	Intercompany accounts receivable						440		19		2,439		422		(3,320)		—
	Other current assets						42		—		108		118		(10)		258
			Total current assets				589		19		4,332		1,847		(3,396)		3,391
Investments in and advances to subsidiaries and unconsolidated joint ventures							5,731		52		1,488		192		(7,218)		245
Property and equipment at cost, net							29		—		166		413		—		608
Intangible assets, net							—		—		229		341		—		570
Goodwill							—		—		2,230		1,466		—		3,696
Other long-term assets							19		—		106		87		(4)		208
					Total assets	$	6,368	$	71	$	8,551	$	4,346	$	(10,618)	$	8,718
LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt					$	2	$	—	$	16	$	27	$	—	$	45
	Accounts payable and subcontractors payable, including retentions						3		—		421		331		(67)		688
	Accrued salaries and employee benefits						34		—		345		128		—		507
	Billings in excess of costs and accrued earnings on contracts						—		—		126		107		—		233
	Intercompany accounts payable						1,952		—		1,052		316		(3,320)		—
	Short-term intercompany notes payable						66		—		21		189		(276)		—
	Other current liabilities						50		9		277		40		(10)		366
			Total current liabilities				2,107		9		2,258		1,138		(3,673)		1,839
Long-term debt							907		700		28		32		—		1,667
Deferred tax liabilities							—		—		371		76		(3)		444
Self-insurance reserves							—		—		11		116		—		127
Pension and post-retirement benefit obligations							—		—		124		162		—		286
Long-term intercompany notes payable							—		—		564		1,263		(1,827)		—
Other long-term liabilities							3		—		94		31		—		128
				Total liabilities			3,017		709		3,450		2,818		(5,503)		4,491
URS stockholders' equity							4,081		19		5,731		1,468		(7,218)		4,081
Intercompany notes receivable							(730)		(657)		(630)		(86)		2,103		—
			Total URS stockholders' equity				3,351		(638)		5,101		1,382		(5,115)		4,081
Noncontrolling interests							—		—		—		146		—		146
				Total stockholders' equity			3,351		(638)		5,101		1,528		(5,115)		4,227
					Total liabilities and stockholders' equity	$	6,368	$	71	$	8,551	$	4,346	$	(10,618)	$	8,718

			CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS – UNAUDITED
			For the Three Months Ended July 4, 2014
(in millions)			Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Revenues			$	—	$	—	$	1,525	$	1,115	$	(85)	$	2,555
Cost of revenues				—		—		(1,431)		(1,061)		85		(2,407)
General and administrative expenses				(26)		—		—		(1)		—		(27)
Equity in income (loss) in subsidiaries				95		7		48		(4)		(146)		—
Equity in income of unconsolidated joint ventures				—		—		2		15		—		17
Intercompany royalty and general and administrative charges				22		—		(23)		1		—		—
	Operating income (loss)			91		7		121		65		(146)		138
Interest expense				(9)		(7)		—		(2)		—		(18)
Intercompany interest income				3		1		9		—		(13)		—
Intercompany interest expense				—		—		(3)		(10)		13		—
Other income				—		—		—		1		—		1
	Income (loss) before income taxes			85		1		127		54		(146)		121
Income tax benefit (expense)				3		2		(32)		14		—		(13)
	Net income (loss) including noncontrolling interests			88		3		95		68		(146)		108
Noncontrolling interests in income of consolidated subsidiaries				—		—		—		(20)		—		(20)
		Net income (loss) attributable to URS	$	88	$	3	$	95	$	48	$	(146)	$	88
		Comprehensive income (loss) attributable to URS	$	126	$	3	$	133	$	73	$	(209)	$	126

			CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS – UNAUDITED
			For the Three Months Ended June 28, 2013
(in millions)			Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Revenues			$	—	$	—	$	1,708	$	1,172	$	(88)	$	2,792
Cost of revenues				—		—		(1,585)		(1,145)		88		(2,642)
General and administrative expenses				(24)		—		—		1		—		(23)
Equity in income (loss) in subsidiaries				66		7		2		(4)		(71)		—
Equity in income of unconsolidated joint ventures				—		—		2		16		—		18
Intercompany royalty and general and administrative charges				32		—		(28)		(4)		—		—
	Operating income (loss)			74		7		99		36		(71)		145
Interest expense				(8)		(9)		—		(4)		—		(21)
Intercompany interest income				2		1		9		—		(12)		—
Intercompany interest expense				(1)		—		(2)		(9)		12		—
Other expenses				—		—		—		(3)		—		(3)
	Income (loss) before income taxes			67		(1)		106		20		(71)		121
Income tax benefit (expense)				—		4		(39)		(4)		—		(39)
	Net income (loss) including noncontrolling interests			67		3		67		16		(71)		82
Noncontrolling interests in income of consolidated subsidiaries				—		—		—		(15)		—		(15)
		Net income (loss) attributable to URS	$	67	$	3	$	67	$	1	$	(71)	$	67
		Comprehensive income (loss) attributable to URS	$	30	$	3	$	31	$	(37)	$	3	$	30

			CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS – UNAUDITED
			For the Six Months Ended July 4, 2014
(in millions)			Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Revenues			$	—	$	—	$	2,988	$	2,251	$	(147)	$	5,092
Cost of revenues				—		—		(2,828)		(2,173)		147		(4,854)
General and administrative expenses				(49)		—		—		—		—		(49)
Equity in income (loss) in subsidiaries				118		15		37		(9)		(161)		—
Equity in income of unconsolidated joint ventures				—		—		4		32		—		36
Intercompany royalty and general and administrative charges				56		—		(48)		(8)		—		—
	Operating income (loss)			125		15		153		93		(161)		225
Interest expense				(16)		(16)		—		(4)		—		(36)
Intercompany interest income				5		2		18		1		(26)		—
Intercompany interest expense				(1)		—		(5)		(20)		26		—
Other expenses				—		—		—		(3)		—		(3)
	Income (loss) before income taxes			113		1		166		67		(161)		186
Income tax benefit (expense)				2		5		(48)		2		—		(39)
	Net income (loss) including noncontrolling interests			115		6		118		69		(161)		147
Noncontrolling interests in income of consolidated subsidiaries				—		—		—		(32)		—		(32)
		Net income (loss) attributable to URS	$	115	$	6	$	118	$	37	$	(161)	$	115
		Comprehensive income (loss) attributable to URS	$	137	$	6	$	142	$	45	$	(193)	$	137

			CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS – UNAUDITED
			For the Six Months Ended June 28, 2013
(in millions)			Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Revenues			$	—	$	—	$	3,431	$	2,332	$	(168)	$	5,595
Cost of revenues				—		—		(3,183)		(2,278)		168		(5,293)
General and administrative expenses				(46)		—		—		—		—		(46)
Equity in income (loss) in subsidiaries				132		15		6		(9)		(144)		—
Equity in income of unconsolidated joint ventures				—		—		5		37		—		42
Intercompany royalty and general and administrative charges				69		—		(61)		(8)		—		—
	Operating income (loss)			155		15		198		74		(144)		298
Interest expense				(16)		(17)		—		(9)		—		(42)
Intercompany interest income				5		2		18		—		(25)		—
Intercompany interest expense				(1)		—		(5)		(19)		25		—
Other expenses				—		—		—		(6)		—		(6)
	Income (loss) before income taxes			143		—		211		40		(144)		250
Income tax benefit (expense)				(4)		6		(78)		(5)		—		(81)
	Net income (loss) including noncontrolling interests			139		6		133		35		(144)		169
Noncontrolling interests in income of consolidated subsidiaries				—		—		—		(30)		—		(30)
		Net income (loss) attributable to URS	$	139	$	6	$	133	$	5	$	(144)	$	139
		Comprehensive income (loss) attributable to URS	$	69	$	6	$	67	$	(70)	$	(3)	$	69

		CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS – UNAUDITED
		For the Six Months Ended July 4, 2014
(in millions)		Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Net cash from operating activities		$	(14)	$	(12)	$	229	$	54	$	5	$	262
Cash flows from investing activities:
	Proceeds from disposal of property and equipment		—		—		1		32		—		33
	Changes in restricted cash		—		—		—		3		—		3
	Capital expenditures, less equipment purchased through capital leases and equipment notes		(5)		—		(27)		(10)		—		(42)
	Other intercompany investing activities		36		112		(156)		823		(815)		—
Net cash from investing activities			31		112		(182)		848		(815)		(6)
Cash flows from financing activities:
	Borrowings from long-term debt		100		—		—		—		(100)		—
	Payments on long-term debt		—		(100)		(3)		—		100		(3)
	Borrowings from revolving line of credit		485		—		—		178		—		663
	Payments on revolving line of credit		(485)		—		—		(96)		—		(581)
	Net payments on other indebtedness		(1)		—		(3)		(7)		—		(11)
	Net change in overdrafts		—		—		—		1		—		1
	Proceeds from employee stock purchases and exercises of stock options		2		—		—		—		—		2
	Distributions to noncontrolling interests		—		—		—		(36)		—		(36)
	Dividends paid		(31)		—		—		—		—		(31)
	Repurchases of common stock		(266)		—		—		—		—		(266)
	Other intercompany financing activities		126		—		(36)		(905)		815		—
Net cash from financing activities			(70)		(100)		(42)		(865)		815		(262)
Net change in cash and cash equivalents			(53)		—		5		37		5		(6)
Effect of foreign exchange rate changes on cash and cash equivalents			—		—		—		5		—		5
Cash and cash equivalents at beginning of period			107		—		20		205		(48)		284
Cash and cash equivalents at end of period		$	54	$	—	$	25	$	247	$	(43)	$	283

		CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS – UNAUDITED
		For the Six Months Ended June 28, 2013
(in millions)		Issuer Parent		Issuer Fox LP		Guarantors		Non- Guarantors		Eliminations		Consolidated
Net cash from operating activities		$	(90)	$	2	$	189	$	(10)	$	(1)	$	90
Cash flows from investing activities:
	Proceeds from disposal of property and equipment		—		—		—		26		—		26
	Changes in restricted cash		—		—		—		2		—		2
	Capital expenditures, less equipment purchased through capital leases and equipment notes		(3)		—		(15)		(28)		—		(46)
	Other intercompany investing activities		394		(2)		307		9		(708)		—
Net cash from investing activities			391		(2)		292		9		(708)		(18)
Cash flows from financing activities:
	Payments on long-term debt		—		—		(2)		—		—		(2)
	Borrowings from revolving line of credit		815		—		—		43		—		858
	Payments on revolving line of credit		(755)		—		—		(68)		—		(823)
	Net payments on other indebtedness		(16)		—		(2)		(6)		—		(24)
	Net change in overdrafts		—		—		5		1		(19)		(13)
	Excess tax benefits from stock-based compensation		2		—		—		—		—		2
	Proceeds from employee stock purchases and exercises of stock options		13		—		—		—		—		13
	Distributions to noncontrolling interests		—		—		—		(32)		—		(32)
	Dividends paid		(31)		—		—		—		—		(31)
	Repurchases of common stock		(93)		—		—		—		—		(93)
	Other intercompany financing activities		(212)		—		(488)		(8)		708		—
Net cash from financing activities			(277)		—		(487)		(70)		689		(145)
Net change in cash and cash equivalents			24		—		(6)		(71)		(20)		(73)
Effect of foreign exchange rate changes on cash and cash equivalents			—		—		—		(8)		—		(8)
Cash and cash equivalents at beginning of period			14		—		17		286		(2)		315
Cash and cash equivalents at end of period		$	38	$	—	$	11	$	207	$	(22)	$	234