Other Comprehensive Income (Loss) - (Tables)

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of tax effects of components of other comprehensive income (loss)

The tax effects of the components of other comprehensive income (loss) (“OCI”) for the three months ended September 30, 2019 and 2018 are as follows:

	Three Months Ended September 30, 2019									Three Months Ended September 30, 2018
(in thousands)	Before-Tax Amount			Tax Benefit (Expense)			Net-of-Tax Amount			Before-Tax Amount			Tax Benefit (Expense)			Net-of-Tax Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(47,247	)	$	5,245		$	(42,002	)	$	(10,357	)	$	(1,376	)	$	(11,733	)
Ownership share of equity method investees’ other comprehensive income (loss)	3,593			(931		)	2,662			(8,051		)	1,556			(6,495		)
Defined benefit pension and postretirement plan adjustments	2,126			(136		)	1,990			(48,463		)	8,660			(39,803		)
Unrealized loss on derivative contracts	(8,031		)	1,737			(6,294		)	(2,189		)	237			(1,952		)
Total other comprehensive income (loss)	(49,559		)	5,915			(43,644		)	(69,060		)	9,077			(59,983		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1,749		)	—			(1,749		)	(400		)	—			(400		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(47,810	)	$	5,915		$	(41,895	)	$	(68,660	)	$	9,077		$	(59,583	)

The tax effects of the components of OCI for the nine months ended September 30, 2019 and 2018 are as follows:

	Nine Months Ended September 30, 2019									Nine Months Ended September 30, 2018
(in thousands)	Before-Tax Amount			Tax Benefit (Expense)			Net-of-Tax Amount			Before-Tax Amount			Tax Benefit (Expense)			Net-of-Tax Amount
Other comprehensive income (loss):
Foreign currency translation adjustment	$	(19,621	)	$	5,284		$	(14,337	)	$	(59,024	)	$	14,668		$	(44,356	)
Ownership share of equity method investees’ other comprehensive income (loss)	(3,302		)	1,177			(2,125		)	7,560			(1,505		)	6,055
Defined benefit pension and postretirement plan adjustments	6,518			(425		)	6,093			(43,580		)	7,647			(35,933		)
Unrealized loss on derivative contracts	(1		)	(598		)	(599		)	(9,274		)	1,580			(7,694		)
Unrealized gain on available-for-sale securities	—			—			—			1,134			(425		)	709
Total other comprehensive income (loss)	(16,406		)	5,438			(10,968		)	(103,184		)	21,965			(81,219		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1,543		)	—			(1,543		)	(1,283		)	—			(1,283		)
Other comprehensive income (loss) attributable to Fluor Corporation	$	(14,863	)	$	5,438		$	(9,425	)	$	(101,901	)	$	21,965		$	(79,936	)

Schedule of changes in accumulated other comprehensive income balances by component (after-tax)

The changes in accumulated other comprehensive income (“AOCI”) balances by component (after-tax) for the three months ended September 30, 2019 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			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of June 30, 2019	$	(281,288	)	$	(28,459	)	$	(200,546	)	$	285		$	(510,008	)
Other comprehensive income (loss) before reclassifications	(40,253		)	2,518			—			(6,844		)	(44,579		)
Amounts reclassified from AOCI	—			144			1,990			550			2,684
Net other comprehensive income (loss)	(40,253		)	2,662			1,990			(6,294		)	(41,895		)
Balance as of September 30, 2019	$	(321,541	)	$	(25,797	)	$	(198,556	)	$	(6,009	)	$	(551,903	)
Attributable to Noncontrolling Interests:
Balance as of June 30, 2019	$	(3,495	)	$	—		$	—		$	—		$	(3,495	)
Other comprehensive income (loss) before reclassifications	(1,749		)	—			—			—			(1,749		)
Amounts reclassified from AOCI	—			—			—			—			—
Net other comprehensive income (loss)	(1,749		)	—			—			—			(1,749		)
Balance as of September 30, 2019	$	(5,244	)	$	—		$	—		$	—		$	(5,244	)

The changes in AOCI balances by component (after-tax) for the nine months ended September 30, 2019 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			Accumulated Other Comprehensive Income (Loss), Net
Attributable to Fluor Corporation:
Balance as of December 31, 2018	$	(308,747	)	$	(23,672	)	$	(204,649	)	$	(5,410	)	$	(542,478	)
Other comprehensive income (loss) before reclassifications	(12,794		)	(2,552		)	—			(2,519		)	(17,865		)
Amounts reclassified from AOCI	—			427			6,093			1,920			8,440
Net other comprehensive income (loss)	(12,794		)	(2,125		)	6,093			(599		)	(9,425		)
Balance as of September 30, 2019	$	(321,541	)	$	(25,797	)	$	(198,556	)	$	(6,009	)	$	(551,903	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2018	$	(3,701	)	$	—		$	—		$	—		$	(3,701	)
Other comprehensive income (loss) before reclassifications	(1,543		)	—			—			—			(1,543		)
Amounts reclassified from AOCI	—			—			—			—			—
Net other comprehensive income (loss)	(1,543		)	—			—			—			(1,543		)
Balance as of September 30, 2019	$	(5,244	)	$	—		$	—		$	—		$	(5,244	)

The changes in AOCI balances by component (after-tax) for the three months ended September 30, 2018 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, 2018	$	(242,917	)	$	(20,064	)	$	(148,188	)	$	(11,426	)	$	—	$	(422,595	)
Other comprehensive income (loss) before reclassifications	(11,333		)	(6,646		)	(56,191		)	(3,736		)	—		(77,906		)
Amounts reclassified from AOCI	—			151			16,388			1,784			—		18,323
Net other comprehensive income (loss)	(11,333		)	(6,495		)	(39,803		)	(1,952		)	—		(59,583		)
Balance as of September 30, 2018	$	(254,250	)	$	(26,559	)	$	(187,991	)	$	(13,378	)	$	—	$	(482,178	)
Attributable to Noncontrolling Interests:
Balance as of June 30, 2018	$	(2,345	)	$	—		$	—		$	—		$	—	$	(2,345	)
Other comprehensive income (loss) before reclassifications	(400		)	—			—			—			—		(400		)
Amounts reclassified from AOCI	—			—			—			—			—		—
Net other comprehensive income (loss)	(400		)	—			—			—			—		(400		)
Balance as of September 30, 2018	$	(2,745	)	$	—		$	—		$	—		$	—	$	(2,745	)

The changes in AOCI balances by component (after-tax) for the nine months ended September 30, 2018 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, 2017	$	(211,177	)	$	(32,614	)	$	(152,058	)	$	(5,684	)	$	(709	)	$	(402,242	)
Other comprehensive income (loss) before reclassifications	(43,073		)	5,247			(56,191		)	(10,785		)	—			(104,802		)
Amounts reclassified from AOCI	—			808			20,258			3,091			709			24,866
Net other comprehensive income (loss)	(43,073		)	6,055			(35,933		)	(7,694		)	709			(79,936		)
Balance as of September 30, 2018	$	(254,250	)	$	(26,559	)	$	(187,991	)	$	(13,378	)	$	—		$	(482,178	)
Attributable to Noncontrolling Interests:
Balance as of December 31, 2017	$	(1,462	)	$	—		$	—		$	—		$	—		$	(1,462	)
Other comprehensive income (loss) before reclassifications	(1,283		)	—			—			—			—			(1,283		)
Amounts reclassified from AOCI	—			—			—			—			—			—
Net other comprehensive income (loss)	(1,283		)	—			—			—			—			(1,283		)
Balance as of September 30, 2018	$	(2,745	)	$	—		$	—		$	—		$	—		$	(2,745	)

Schedule of significant items reclassified out of AOCI and corresponding location and impact

The significant items reclassified out of AOCI and the corresponding location and impact on the Condensed Consolidated Statement of Operations are as follows:

	Location in Condensed Consolidated	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	Statement of Operations	2019			2018			2019			2018
Component of AOCI:
Ownership share of equity method investees’ other comprehensive loss	Total cost of revenue	$	(192	)	$	(200	)	$	(569	)	$	(1,099	)
Income tax benefit	Income tax expense	48			49			142			291
Net of tax		$	(144	)	$	(151	)	$	(427	)	$	(808	)
Defined benefit pension plan adjustments	Corporate general and administrative expense	$	(2,126	)	$	(20,062	)	$	(6,518	)	$	(24,945	)
Income tax benefit	Income tax expense	136			3,674			425			4,687
Net of tax		$	(1,990	)	$	(16,388	)	$	(6,093	)	$	(20,258	)
Unrealized gain (loss) on derivative contracts:
Foreign currency contracts	Various accounts(1)	$	(496	)	$	(2,257	)	$	(1,958	)	$	(3,375	)
Interest rate contracts	Interest expense	(419		)	(419		)	(1,258		)	(1,258		)
Income tax benefit	Income tax expense	365			892			1,296			1,542
Net of tax		$	(550	)	$	(1,784	)	$	(1,920	)	$	(3,091	)
Unrealized loss on available-for-sale securities	Corporate general and administrative expense	$	—		$	—		$	—		$	(1,134	)
Income tax benefit	Income tax expense	—			—			—			425
Net of tax		$	—		$	—		$	—		$	(709	)

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(1)

Gains and losses on foreign currency derivative contracts were reclassified to "Total cost of revenue" and "Corporate general and administrative expense."