Partnerships and Joint Ventures

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

In the normal course of business, we form partnerships or joint ventures primarily for the execution of single contracts or projects. The majority of these partnerships or joint ventures are characterized by a 50% or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. Many of the partnership and joint venture agreements provide for capital calls to fund operations, as necessary. Investments in a loss position of $240 million were included in other accrued liabilities as of December 31, 2021 and consisted primarily of provision for anticipated losses on a legacy infrastructure project. Accounts receivable related to work performed for unconsolidated partnerships and joint ventures included in "Accounts and notes receivable, net" were $204 million and $207 million as of December 31, 2021 and 2020, respectively.

The following is a summary of aggregate, unaudited balance sheet data for unconsolidated entities where our investment is presented as a one-line equity method investment:


	December 31,
(in millions)	2021		2020
Current assets	$	10,154	$	8,129
Noncurrent assets	3,755		4,744
Current liabilities	7,860		6,301
Noncurrent liabilities	3,527		4,353

The following is a summary of aggregate, unaudited income statement data for unconsolidated entities where the equity method of accounting is used to recognize our share of net earnings or loss of investees:


(in millions)	2021		2020		2019
Revenue	$	1,585	$	1,196	$	1,211
Cost of revenue	1,000		1,094		1,112
Net earnings	52		54		43

During 2021, 2020 and 2019, we evaluated our significant investments and determined that certain of our investments were impaired. As a result, we recognized impairment expense of $28 million, $86 million and $257 million during 2021, 2020 and 2019, respectively.

One of our more significant joint ventures is COOEC Fluor, in which we have a 49% ownership interest. COOEC Fluor owns, operates and manages the Zhuhai Fabrication Yard in China’s Guangdong province. We made a capital contribution of $26 million to the joint venture during the first quarter of 2021, which satisfied our contractual funding requirements.

During 2021, we sold our 10% ownership interest in an infrastructure joint venture and recognized a gain of $20 million, which was included in Urban Solutions' segment profit. During 2020, we sold our interests in three infrastructure joint ventures and recognized a gain of $8 million. We also sold our 50% ownership interest in Sacyr Fluor and recognized a loss of $11 million, which was included in Energy Solutions' segment profit.

Variable Interest Entities

The aggregate carrying value of the unconsolidated VIEs (classified under both "Investments" and "Other accrued liabilities") was a net asset of $30 million and $174 million as of December 31, 2021 and 2020, respectively. Some of our VIEs have debt; however, such debt is typically non-recourse in nature to Fluor. Our maximum exposure to loss as a result of our investments in unconsolidated VIEs is typically limited to the aggregate of the carrying value of the investment and future funding necessary to satisfy the contractual obligations of the VIE. Future funding commitments as of December 31, 2021 for the unconsolidated VIEs were $57 million.

In some cases, we are required to consolidate certain VIEs. Assets and liabilities associated with the operations of our consolidated VIEs are presented on the balance sheet. The assets of a VIE are restricted for use only for the particular VIE and are not available for our general operations.

We have agreements with certain VIEs to provide financial or performance assurances to clients, as discussed elsewhere.