We own a noncontrolling interest in two electric power generation projects, one waste-to-energy project and one wind farm project in Italy and in a refinery/electric power generation project in Chile. We also own a 50% noncontrolling interest in a project in Italy which generates earnings from royalty payments linked to the price of natural gas. Based on the outstanding equity interests of these entities, we own 41.65% of each of the two electric power generation projects in Italy, 39% of the waste-to-energy project and 50% of the wind farm project. We have a notional 85% equity interest in the project in Chile; however, we are not the primary beneficiary as a result of participating rights held by the minority shareholder. In determining that we are not the primary beneficiary, we considered the minority shareholder's right to approve activities of the project that most significantly impact the project's economic performance which include the right to approve or reject the annual financial (capital and operating) budget and the annual operating plan, the right to approve or reject the appointment of the general manager and senior management, and approval rights with respect to capital expenditures beyond those included in the annual budget.

On February 27, 2010, an earthquake occurred off the coast of Chile that caused significant damage to our unconsolidated affiliate's facility in Chile. As a result of the damage, the project's facility suspended normal operating activities on that date. Subsequent to that date, our unconsolidated affiliate filed a claim with its insurance carrier. A preliminary assessment of the extent of the damage was completed and an estimate of the required cost of repairs was developed. Based on the assessment and cost estimate, as well as correspondence received from the insurance carrier, we expect the property damage insurance recovery to be sufficient to cover the costs of repairing the facility. The insurance carrier also provided a preliminary assessment of the business interruption insurance recovery due to our unconsolidated affiliate, and advanced insurance proceeds against this assessment. Based on this assessment, we expect the business interruption insurance recovery to substantially compensate our unconsolidated affiliate for the loss of profits while the facility suspended normal operating activities. Our unconsolidated affiliate's receivable related to the remaining balance under their property damage and business interruption insurance recovery assessment was approximately $66,900 as of September 30, 2011, which is included in current assets in the table below. The facility began operating at less than normal utilization during the second quarter of 2011 and achieved normal operating activities in the third quarter of 2011.

The summarized financial information presented below for the project in Chile includes an estimated recovery under a property damage insurance policy sufficient to cover the costs that have been incurred to repair the facility and an estimated recovery under a business interruption insurance policy for fixed costs along with an estimated recovery for lost profits during the period that the facility suspended normal operating activities. In accordance with authoritative accounting guidance on business interruption insurance, the project recorded an estimated recovery for lost profits as substantially all contingencies related to the insurance claim had been resolved as of the third quarter of 2010.

We account for these investments in Italy and Chile under the equity method. The following is summarized financial information for these entities (each as a whole) based on where the projects are located:

	September 30, 2011				December 31, 2010
		Italy		Chile		Italy		Chile
Balance Sheet Data:
Current assets	$	202,070	$	120,487	$	396,512	$	70,381
Other assets (primarily buildings and equipment)		387,948		110,568		395,264		117,779
Current liabilities		98,616		55,264		202,658		43,909
Other liabilities (primarily long-term debt)		263,975		45,105		275,466		50,132
Net assets		227,427		130,686		313,652		94,119

	Quarter Ended September 30,								Nine Months Ended September 30,
	2011				2010				2011				2010
		Italy		Chile		Italy		Chile		Italy		Chile		Italy		Chile
Income Statement Data:
Total revenues	$	38,516	$	13,121	$	76,839	$	14,918	$	121,240	$	61,450	$	275,112	$	32,222
Gross profit		10,230		2,008		14,340		(1,257)		41,955		19,863		54,919		2,032
Income before income taxes		7,309		13,550		11,138		16,183		33,232		48,015		42,210		20,577
Net earnings		4,041		10,840		6,579		13,432		19,994		36,567		24,528		17,079

Our investment in these unconsolidated affiliates is recorded within investments in and advances to unconsolidated affiliates on the consolidated balance sheet and our equity in the net earnings of these unconsolidated affiliates is recorded within other income, net on the consolidated statement of operations. The investments and equity earnings of the projects in Italy and project in Chile are included in our Global E&C Group and Global Power Group business segments, respectively. Our consolidated financial statements reflect the following amounts related to these unconsolidated affiliates:

	Quarter Ended September 30,				Nine Months Ended September 30,
		2011		2010		2011		2010

Equity in earnings of investees	$	4,467	$	14,254	$	32,546	$	24,836
Distributions from equity affiliates	$	4,249	$	3,053	$	47,659	$	17,251

					September 30, 2011		December 31, 2010
Total investment in equity affiliates					$	190,599	$	200,668

Our equity earnings from our project in Chile were $2,585 and $11,195 in the third quarter of 2011 and 2010, respectively. The decrease in equity earnings in the third quarter of 2011, compared to the same period in 2010, included the unfavorable impact of the inclusion of the benefit in the third quarter of 2010 for the project's initial recognition of its recovery for lost profits under its business interruption insurance policy, which covered the period from the February 2010 earthquake through the third quarter of 2010, when substantially all contingencies related to the insurance claim had been resolved.

Our equity earnings from our project in Chile were $24,058 and $14,026 in the first nine months of 2011 and 2010, respectively. The increase in equity earnings in the nine months ended September 30, 2011, compared to the same period in 2010, was primarily driven by the project's higher marginal rates in 2011 for electrical power generation.

Equity earnings in the quarter and nine month periods ended September 30, 2011 and 2010 included our equity interest in the after tax estimated recovery under our project in Chile's business interruption insurance policy which covers the period from the date of the earthquake through the period when the facility resumed normal operating activities.

The two electric power generation projects in Italy, owned by the companies Centro Energia Teverola S.p.A., (“CET”) and Centro Energia Ferrara S.p.A., (“CEF”), in which we hold 41.65% of the shares in each company, had long-term power off-take agreements in place with the Authority for Energy (the “Energy Authority”), which is part of the Italian Economic Development Ministry (the “Ministry”). The power off-take agreements with the Energy Authority included an incentivized tariff during the period of operation. In September 2010, the Ministry announced an option for certain projects, including those of CEF and CET, to terminate their long-term power off-take agreements with the Energy Authority in exchange for a lump-sum payment. The payment was determined by specific calculation under parameters established by the Ministry. In October 2010, CEF and CET submitted an application to terminate their power off-take agreements and, in December 2010, the Ministry approved the applications. CET and CEF recognized revenue for the full value of the termination payments in their financial statements for the year ended December 31, 2010.

In light of the termination of the power off-take agreements, we and our respective partners at CET and CEF reviewed the economic viability of each plant. As a result, a decision was made to shut down the CET plant effective January 1, 2011. Following the termination of the power off-take agreement, we and our partner in CEF decided to continue to operate the CEF plant at least temporarily on a merchant basis while we considered a possible sale of the plant in 2011. As a result of the foregoing operating decisions, CET and CEF recorded impairment charges during the fourth quarter of 2010 to write down their fixed assets to fair value in their financial statements. Additionally, during the fourth quarter of 2010, our investments in CET and CEF were reduced by equity losses based on the 2010 financial results of CET and CEF, inclusive of the respective impairment charges. As a result of the foregoing, the carrying value of our CET and CEF investments approximated fair value at December 31, 2010.

During the second quarter of 2011, as part of our review of the economic viability of the CEF project, we and our partner in CEF concluded we would continue to operate the plant at least through the third quarter of 2011 and then re-evaluate the economic viability of the plant or potential disposal options. As a result, an additional impairment charge was recorded to bring the carrying value of our investment to fair value as of June 30, 2011.

During the third quarter 2011, we and our partner concluded that we will operate the plant through 2012 while continuing to consider the long-term economic viability of the plant or potential disposal options.

Our equity earnings from our CET and CEF investments during the third quarter were inconsequential. Our equity earnings from our CET and CEF investments totaled $213 during the nine months ended September 30, 2011, which included the impairment charge for CEF. Our equity earnings from our CET and CEF investments during the quarter and nine months ended September 30, 2010 totaled $611 and $3,378, respectively.

We have guaranteed certain performance obligations of the project in Chile. We do not expect that the earthquake will require us to contribute to this project under our guarantee of the project's performance obligations.

We have a contingent obligation, which is measured annually based on the operating results of the project in Chile for the preceding year and is shared equally with our minority interest partner. We did not have a current payment obligation under this guarantee as of September 30, 2011 and December 31, 2010.

In addition, we have provided a $10,000 debt service reserve letter of credit to cover debt service payments in the event that the project in Chile does not generate sufficient cash flows to make such payments. We are required to maintain the debt service reserve letter of credit during the term of the project in Chile's debt, which matures in 2014. As of September 30, 2011, no amounts have been drawn under this letter of credit and, based on our current assessment following the earthquake in Chile as described above, we do not anticipate any amounts being drawn under this letter of credit.

We also have a wholly-owned subsidiary that provides operations and maintenance services to the Chile based project, which included assessing the damage caused by the earthquake and the related repair while the facility suspended normal operating activities. We record the fees for operations and maintenance services in operating revenues on our consolidated statement of operations and the corresponding receivable in trade accounts and notes receivable on our consolidated balance sheet.

Our consolidated financial statements include the following balances related to our project in Chile:

		Quarter Ended September 30,				Nine Months Ended September 30,
			2011		2010		2011		2010
Fees for operations and maintenance services
	(included in operating revenues)	$	2,671	$	2,461	$	7,991	$	7,381

						September 30, 2011		December 31, 2010
Receivable from our unconsolidated affiliate
	in Chile (included in trade receivables)					$	6,727	$	632

We also have guaranteed the performance obligations of our wholly-owned subsidiary under the project in Chile's operations and maintenance agreement. The guarantee is limited to $20,000 over the life of the operations and maintenance agreement, which extends through 2016. No amounts have ever been paid under the guarantee.

We are the majority equity partner and general partner of a gas-fired cogeneration project in Martinez, California, which we have determined to be a VIE as of September 30, 2011 and December 31, 2010. We own 100% of the equity in a waste-to-energy project in Camden, New Jersey, which we determined to be a VIE as of December 31, 2010 due to the operating agreement in place at that time with a project sponsor. The operating agreement terminated as of the end of the second quarter of 2011, therefore the Camden project is no longer considered a VIE as of September 30, 2011.

We were the primary beneficiary of each project while they were VIEs, since we had the power to direct the activities that most significantly impact each VIE's performance. These activities include the operations and maintenance of the facilities. Accordingly, as primary beneficiaries of a VIE, we consolidate these entities. We also consolidate the Camden project as of September 30, 2011, even though it is no longer a VIE, since we own a 100% interest in the project. The aggregate net assets of these entities during the periods that they were determined to be VIEs are presented below.

Balance Sheet Data (excluding intercompany balances):	September 30, 2011		December 31, 2010
Current assets	$	16,616	$	15,915
Other assets (primarily buildings and equipment)		40,610		102,457
Current liabilities		5,606		11,177
Other liabilities		4,535		1,791
Net assets		47,085		105,404