Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2013

Comprehensive Income

Schedule of tax effects of the components of other comprehensive income

The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended September 30, 2013 and 2012 are as follows:

	Three Months Ended									Three Months Ended
	September 30, 2013									September 30, 2012
				Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Tax			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			Expense			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	42,074		$	(15,882	)	$	26,192		$	38,768		$	(14,600	)	$	24,168
Ownership share of equity method investees’ other comprehensive income	3,118			(856		)	2,262			165			(32		)	133
Defined benefit pension and postretirement plan adjustments	(6,472		)	2,427			(4,045		)	1,643			(616		)	1,027
Unrealized gain on derivative contracts	1,700			(685		)	1,015			693			(281		)	412
Unrealized gain on debt securities	585			(220		)	365			630			(237		)	393
Total other comprehensive income	41,005			(15,216		)	25,789			41,899			(15,766		)	26,133
Less: Other comprehensive loss attributable to noncontrolling interests	(403		)	—			(403		)	(250		)	—			(250		)
Other comprehensive income attributable to Fluor Corporation	$	41,408		$	(15,216	)	$	26,192		$	42,149		$	(15,766	)	$	26,383

The tax effects of the components of OCI for the nine months ended September 30, 2013 and 2012 are as follows:

	Nine Months Ended									Nine Months Ended
	September 30, 2013									September 30, 2012
				Tax
	Before-Tax			Benefit			Net-of-Tax			Before-Tax			Tax			Net-of-Tax
(in thousands)	Amount			(Expense)			Amount			Amount			Expense			Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(48,753	)	$	18,198		$	(30,555	)	$	43,922		$	(16,506	)	$	27,416
Ownership share of equity method investees’ other comprehensive income (loss)	11,471			(3,118		)	8,353			(1,138		)	(218		)	(1,356		)
Defined benefit pension and postretirement plan adjustments	7,648			(2,868		)	4,780			10,187			(3,820		)	6,367
Unrealized gain (loss) on derivative contracts	(1,247		)	420			(827		)	3,465			(1,464		)	2,001
Unrealized gain (loss) on debt securities	(1,170		)	438			(732		)	456			(171		)	285
Total other comprehensive income (loss)	(32,051		)	13,070			(18,981		)	56,892			(22,179		)	34,713
Less: Other comprehensive loss attributable to noncontrolling interests	(350		)	—			(350		)	(587		)	—			(587		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(31,701	)	$	13,070		$	(18,631	)	$	57,479		$	(22,179	)	$	35,300

Schedule of changes in AOCI balances by component (after-tax)

The changes in AOCI balances by component (after-tax) for the three months ended September 30, 2013 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of June 30, 2013	$	(10,902	)	$	(36,928	)	$	(243,899	)	$	(10,801	)	$	(143	)	$	(302,673	)
Other comprehensive income (loss) before reclassifications	26,471			2,262			(6,057		)	(443		)	367			22,600
Amounts reclassified from AOCI	—			—			2,012			1,582			(2		)	3,592
Net other comprehensive income (loss)	26,471			2,262			(4,045		)	1,139			365			26,192
Balance as of September 30, 2013	$	15,569		$	(34,666	)	$	(247,944	)	$	(9,662	)	$	222		$	(276,481	)
Attributable to Noncontrolling Interests:
Balance as of June 30, 2013	$	8,777		$	—		$	—		$	—		$	—		$	8,777
Other comprehensive loss before reclassifications	(279		)	—			—			(124		)	—			(403		)
Amounts reclassified from AOCI	—			—			—			—			—			—
Net other comprehensive loss	(279		)	—			—			(124		)	—			(403		)
Balance as of September 30, 2013	$	8,498		$	—		$	—		$	(124	)	$	—		$	8,374

The changes in AOCI balances by component (after-tax) for the nine months ended as of September 30, 2013 are as follows:

(in thousands)	Foreign Currency Translation			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)			Defined Benefit Pension and Postretirement Plans			Unrealized Gain (Loss) on Derivative Contracts			Unrealized Gain (Loss) on Available- for-Sale Securities			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2012	$	45,899		$	(43,019	)	$	(252,724	)	$	(8,960	)	$	954		$	(257,850	)
Other comprehensive income (loss) before reclassifications	(30,330		)	8,353			(1,261		)	(2,883		)	(645		)	(26,766		)
Amounts reclassified from AOCI	—			—			6,041			2,181			(87		)	8,135
Net other comprehensive income (loss)	(30,330		)	8,353			4,780			(702		)	(732		)	(18,631		)
Balance as of September 30, 2013	$	15,569		$	(34,666	)	$	(247,944	)	$	(9,662	)	$	222		$	(276,481	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2012	$	8,723		$	—		$	—		$	1		$	—		$	8,724
Other comprehensive loss before reclassifications	(225		)	—			—			(124		)	—			(349		)
Amounts reclassified from AOCI	—			—			—			(1		)	—			(1		)
Net other comprehensive loss	(225		)	—			—			(125		)	—			(350		)
Balance as of September 30, 2013	$	8,498		$	—		$	—		$	(124	)	$	—		$	8,374

Summary of significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Earnings

	Location in Condensed	Three Months Ended			Nine Months Ended
(in thousands)	Consolidated Statement of Earnings	September 30, 2013			September 30, 2013
Component of AOCI:
Defined benefit pension plan adjustments	Various accounts(1)	$	(3,220	)	$	(9,666	)
Income tax benefit	Income tax expense	1,208			3,625
Net of tax		$	(2,012	)	$	(6,041	)
Unrealized loss on derivative contracts:
Commodity contracts and foreign currency contracts	Total cost of revenue	$	(2,112	)	$	(2,237	)
Interest rate contracts	Interest expense	(419		)	(1,258		)
Income tax benefit	Income tax expense	949			1,315
Net of tax		(1,582		)	(2,180		)
Less: Noncontrolling interests	Net earnings attributable to noncontrolling interests	—			(1		)
Net of tax and noncontrolling interests		$	(1,582	)	$	(2,181	)
Unrealized gain on available-for-sale securities	Corporate general and administrative expense	$	3		$	139
Income tax expense	Income tax expense	(1		)	(52		)
Net of tax		$	2		$	87

(1)      Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and corporate general and administrative expense.