Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Impairment Expense

Impairment expense, included in Cont Ops, for 2021, 2020 and 2019 is summarized as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Impairment expense:
Energy Solutions' equity method investments	$	27,934	$	86,096	$	256,769
Information technology assets	15,858		16,269		—
Total impairment expense	$	43,792	$	102,365	$	256,769

Impairment expense, included in Disc Ops, is summarized as follows:

	Year Ended December 31, 2021				Year Ended December 31, 2020				Year Ended December 31, 2019
(in thousands)	Stork		AMECO		Stork		AMECO		Stork		AMECO
Impairment expense:
Goodwill (1)	$	12,700	$	—	$	168,568	$	12,300	$	—	$	2,125
Intangible customer relationships (2)	—		—		26,671		—		33,657		—
Fair value adjustment and expected costs associated with sale (3)	180,500		53,085		—		133,400		—		—
Total impairment expense	$	193,200	$	53,085	$	195,239	$	145,700	$	33,657	$	2,125

(1) As part of our assessment of goodwill in 2020, the fair value of the reporting units was determined using an income based approach that utilized unobservable Level 3 inputs, including significant management assumptions such as expected awards, forecasted revenue and operating margins, weighted average cost of capital, working capital assumptions and general market trends and conditions.

(2) The customer relationships' valuation approach utilized unobservable Level 3 inputs including ranges of assumptions of long-term revenue growth from 2% to 5.5% with a weighted average of 2.4%, weighted average cost of capital of 12% and a customer attrition factor of 10%.

(3) The fair value of the Stork and AMECO assets were determined using a combination of observable level 2 inputs in 2021, including indicative offers and ongoing negotiations for the related assets, and an income based approach that utilized unobservable Level 3 inputs in 2020, including significant management assumptions such as expected awards, forecasted revenue and operating margins, weighted average cost of capital, working capital assumptions and general market trends and conditions.

Earnings from discontinued operations, net of tax

Disc Ops information follows:

	Year Ended December 31, 2021								Year Ended December 31, 2020								Year Ended December 31, 2019
(in thousands)	Stork		AMECO		Other		Total		Stork		AMECO		Other		Total		Stork		AMECO		Other		Total
Revenue	$	1,599,705	$	122,263	$	—	$	1,721,968	$	1,509,238	$	216,994	$	—	$	1,726,232	$	1,805,705	$	317,371	$	—	$	2,123,076
Cost of revenue	(1,559,327)		(124,948)		(9,106)		(1,693,381)		(1,514,374)		(195,024)		(13,198)		(1,722,596)		(1,794,266)		(354,782)		21,152		(2,127,896)
Gross profit	40,378		(2,685)		(9,106)		28,587		(5,136)		21,970		(13,198)		3,636		11,439		(37,411)		21,152		(4,820)
G&A	(4,351)		—		—		(4,351)		—		(234)		—		(234)		—		(239)		—		(239)
Impairment, restructuring and other exit costs	(193,200)		(53,085)		—		(246,285)		(196,503)		(146,430)		—		(342,933)		(92,906)		(121,252)		—		(214,158)
Loss on sale of AMECO	—		(26,670)		—		(26,670)		—		(1,390)		—		(1,390)		—		—		—		—
Foreign currency gain (loss)	(228)		(157)		—		(385)		(2,078)		55		—		(2,023)		(413)		(1,265)		—		(1,678)
Operating profit (loss)	(157,401)		(82,597)		(9,106)		(249,104)		(203,717)		(126,029)		(13,198)		(342,944)		(81,880)		(160,167)		21,152		(220,895)
Interest (expense) income, net	(4,995)		27		—		(4,968)		(4,633)		(159)		—		(4,792)		(7,365)		341		—		(7,024)
Earnings (loss) before taxes from Disc Ops	(162,396)		(82,570)		(9,106)		(254,072)		(208,350)		(126,188)		(13,198)		(347,736)		(89,245)		(159,826)		21,152		(227,919)
Income tax (expense) benefit	(3,480)		—		—		(3,480)		(2,736)		(3,957)		—		(6,693)		(3,265)		3,938		(4,447)		(3,774)
Net earnings (loss) from Disc Ops	$	(165,876)	$	(82,570)	$	(9,106)	$	(257,552)	$	(211,086)	$	(130,145)	$	(13,198)	$	(354,429)	$	(92,510)	$	(155,888)	$	16,705	$	(231,693)
Less: Net earnings (loss) from Disc Ops attributable to NCI	$	883	$	(1)	$	—	$	882	$	1,537	$	1	$	—	$	1,538	$	7,169	$	660	$	—	$	7,829
Net earnings (loss) from Disc Ops attributable to Fluor	$	(166,759)	$	(82,569)	$	(9,106)	$	(258,434)	$	(212,623)	$	(130,146)	$	(13,198)	$	(355,967)	$	(99,679)	$	(156,548)	$	16,705	$	(239,522)

Assets and liabilities held for sale

The following summarizes information related to assets and liabilities classified as held for sale:

	December 31, 2021							December 31, 2020
(in thousands)	Stork	AMECO	Other	Total from Disc Ops	Other Assets and Liabilities from Cont Ops		Total	Stork	AMECO	Other	Total from Disc Ops	Other Assets and Liabilities from Cont Ops		Total
Accounts and notes receivable, net	$237,808	$26,355	$5,176	$269,339	$	—	$269,339	$245,105	$42,797	$10,475	$298,377	$	—	$298,377
Contract assets	134,516	—	—	134,516	—		134,516	108,152	2,188	—	110,340	—		110,340
Other current assets	41,126	18,853	—	59,979	—		59,979	45,384	73,618	—	119,002	—		119,002
Current assets held for sale	413,450	45,208	5,176	463,834	—		463,834	398,641	118,603	10,475	527,719	—		527,719
Property, plant and equipment, net	98,425	—	—	98,425	22,000		120,425	97,258	67,380	—	164,638	24,538		189,176
Goodwill	113,816	—	—	113,816	—		113,816	141,889	—	—	141,889	—		141,889
Investments	3,339	—	—	3,339	7,028		10,367	4,649	—	—	4,649	5,064		9,713
Other assets	125,306	21,107	—	146,413	—		146,413	135,421	13,810	—	149,231	—		149,231
Noncurrent assets held for sale (1)	340,886	21,107	—	361,993	29,028		391,021	379,217	81,190	—	460,407	29,602		490,009
Total assets held for sale	$754,336	$66,315	$5,176	$825,827	$29,028		$854,855	$777,858	$199,793	$10,475	$988,126	$29,602		$1,017,728
Accounts payable	$114,683	$6,423	$507	$121,613	$	—	$121,613	$116,580	$17,388	$13	$133,981	$	—	$133,981
Short-term borrowings	16,975	—	—	16,975	—		16,975	20,525	—	—	20,525	—		20,525
Contract liabilities	54,421	10	—	54,431	—		54,431	46,997	782	—	47,779	—		47,779
Accrued salaries, wages and benefits	60,519	1,164	—	61,683	—		61,683	57,626	7,152	—	64,778	—		64,778
Other accrued liabilities	290,853	51,506	—	342,359	—		342,359	113,965	11,977	—	125,942	—		125,942
Current liabilities held for sale	537,451	59,103	507	597,061	—		597,061	355,693	37,299	13	393,005	—		393,005
Noncurrent liabilities held for sale(1)	87,793	11,809	—	99,602	—		99,602	98,940	9,478	—	108,418	—		108,418
Total liabilities held for sale	$625,244	$70,912	$507	$696,663	$	—	$696,663	$454,633	$46,777	$13	$501,423	$	—	$501,423

(1)    Noncurrent assets and liabilities held for sale were classified as current as we expect to complete the sale of Stork and the remaining AMECO operations early in 2022.

Consolidated statements of cash flows for the discontinued operations

The changes in assets and liabilities included in operating cash flow follow:

	Year Ended December 31,
(in thousands)	2021		2020		2019
(Increase) decrease in:
Accounts and notes receivable, net	$	5,393	$	138,388	$	210,419
Contract assets	(178,632)		280,360		207,467
Other current assets	(167,416)		3,893		(80,248)
Other assets	283,895		76,613		44,707
Increase (decrease) in:
Accounts payable	6,360		(343,113)		(46,873)
Contract liabilities	(175,812)		(53,580)		202,359
Accrued liabilities	108,896		(11,829)		29,880
Other liabilities	(79,336)		(59,684)		63,986
Increase (decrease) in cash due to changes in assets and liabilities	$	(196,652)	$	31,048	$	631,697
Cash paid during the year for:
Interest	$	90,299	$	65,641	$	71,938
Income taxes (net of refunds)	74,589		65,188		204,080

Our cash flow information for 2021, 2020 and 2019 included the following activities related to Disc Ops:

	Year Ended December 31,
(in thousands)	2021						2020						2019
	Stork		AMECO		Total		Stork		AMECO		Total		Stork		AMECO		Total
Impairment expense	$	193,200	$	53,085	$	246,285	$	195,239	$	145,700	$	340,939	$	64,335	$	32,428	$	96,763
Depreciation of fixed assets	5,417		—		5,417		21,849		—		21,849		24,203		54,568		78,771
Amortization of stock-based awards	—		—		—		—		56		56		—		123		123
Capital expenditures	(16,861)		(11,019)		(27,880)		(21,087)		(26,913)		(48,000)		(28,185)		(73,433)		(101,618)