EX-99.1 2 pressrelease.htm PRESS RELEASE

Exhibit 99.1

KBR          

601 Jefferson St. • Houston, Texas 77002
Phone 713.753.3011 • Fax 713.753.5353

FOR IMMEDIATE RELEASE                                                              Contact:     Rob Kukla, Jr.

February 25, 2010                                                                                                       Director, Investor Relations
                                                                                                                                       713-753-5082

                                                                                                                                       Heather Browne

                                                                                                                                       Director, Communications
                                                                                                                                       713-753-3775


 

KBR ANNOUNCES FOURTH QUARTER AND FULL YEAR 2009 RESULTS

$0.45 per diluted share for fourth quarter 2009 net income attributable to KBR, Inc.
and $1.79 per diluted share for full year 2009 net income attributable to KBR, Inc.

§     

Revenue for the full year of 2009 increased 5% over the previous year


§     

Solid backlog at the end of December 31, 2009 of $14.1 billion, up 5% over the sequential quarter


§     

Continued strong balance sheet with $941 million cash and equivalents




HOUSTON, Texas – KBR (NYSE:KBR) announced today that fourth quarter 2009 net income attributable to KBR was $73 million, or $0.45 per diluted share, compared to net income attributable to KBR of $88 million, or $0.54 per diluted share, in the fourth quarter of 2008. The fourth quarter of 2009 included a gain of $0.70 per diluted share related to the EPC-1 arbitration, a charge of $0.50 per diluted share for the reversal of previously recognized award fees related to the LogCAP III contract, a charge of $0.09 per diluted share for an unfavorable court ruling related to a subcontractor claim for work in performed in 2003 and 2004 under the LogCAP III contract, a $0.07 charge to correct prior period errors related to revenue recognition for legal fees related to ongoing lawsuits, which does not have a material impact on financial statements for previous quarters, and a $0.02 charge related to the abandonment of the Westside Houston resource center development project.

Consolidated revenue in the fourth quarter of 2009 was $3.0 billion compared to $3.4 billion in the fourth quarter of 2008. Consolidated operating income was $124 million in the fourth quarter of 2009 compared to $153 million in the fourth quarter of 2008, which included a $24 million gain from a project change order.

“2009 was a solid year for KBR in what was considered a very difficult market environment. We were able to grow revenue 5 percent and are especially pleased with KBR’s backlog performance, particularly in the second half of the year, which grew 14 percent in the last two quarters,” said Bill Utt, Chairman, President, and Chief Executive Officer of KBR. “During the quarter, we encountered changes by the U.S. Army in administering award fee determinations, which when excluding any recoveries of award fees from the 2008 and 2009 periods and applied to budgeted award fees for 2010, has the impact of reducing the low end of our 2010 guidance by $0.10 per diluted share. Nonetheless, we continue to be optimistic about KBR’s ability to deliver continued growth in our overall business despite an expected continued decline in our LogCAP volumes.”

2009 Fourth Quarter Business Unit Results

Upstream business unit income was $220 million in the fourth quarter of 2009 compared to business unit income of $65 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 included a $183 million gain related to a favorable arbitration award on the EPC-1 project. Business unit income in the fourth quarter of 2009 had positive contributions from various gas monetization projects, including the Pearl GTL, Gorgon LNG, and Escravos GTL projects, several offshore related projects in the Caspian area, and several topside engineering projects, offset by $24 million in additional costs related to subcontractor claims and schedule delays on two LNG projects. Business unit income in the fourth quarter of 2008 included a $24 million gain on a change order on an LNG project.

Government and Infrastructure business unit loss was $109 million in the fourth quarter of 2009 compared to business unit income of $85 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 included a charge of $20 million for an adverse decision on the granting of an award fee on LogCAP III, a charge of $112 million for KBR’s assessment and reversal of previously recognized award fees related to the LogCAP III contract, a charge of $19 million for an unfavorable court ruling related to a subcontractor claim for work in 2003 and 2004 under the LogCAP III contract, and $17 million to correct prior period errors related to revenue recognition for legal fees related to ongoing lawsuits. Business unit income in the fourth quarter 2009 had positive contributions from the Allenby & Connaught project, work on the CENTCOM project, work for the U.K. Ministry of Defense in Afghanistan, and numerous infrastructure projects, including the Qatar-Bahrain Causeway.

Services business unit income was $55 million in the fourth quarter of 2009 compared to business unit income of $53 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 had positive contributions from power projects in Georgia and Texas, the Scotford Upgrader project in Canada, construction and maintenance work in Texas, the offshore service vessels in the Gulf of Mexico, and an activated carbon project in Louisiana.

Downstream business unit income was $11 million in the fourth quarter of 2009 compared to business unit income of $14 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 had positive contributions from program management services for the Ras Tanura project and the Yanbu export refinery in Saudi Arabia, the Lobito refinery FEED in Angola, and several other refining projects.

Technology business unit income was $7 million in the fourth quarter of 2009 compared to business unit income of $3 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 had positive contributions from several refining technology packages for a facility in Angola, a ROSE™ unit project in Indonesia, an ethylene project in Korea, two ammonia license and basic engineering projects in South America, and the final license payment for the completion of a ROSE™ project in the United States.

Ventures business unit income was $4 million in the fourth quarter of 2009 compared to a business unit loss of $1 million in the fourth quarter of 2008. Business unit income in the fourth quarter of 2009 had positive contributions from the Aspire Defence project and the EBIC ammonia project in Egypt.
 

Corporate general and administrative expense in the fourth quarter of 2009 was $60 million, which includes a $4 million write-off related to the Westside campus. This compares to $60 million reported in the prior year fourth quarter.
 

Total cash flows used in operating activities for the full year 2009 were $36 million, which includes an increase in working capital of approximately $220 million related to the Skikda LNG project and $35 million in tax payments made prior to the recognition of foreign tax credits arising from the EPC-1 arbitration decision. The full year 2009 net income included a gain of $117 million, net of tax, related to the favorable EPC-1 arbitration.

Significant Achievements and Awards

§     

KBR was awarded a Contracted Construction, Maintenance and Services Agreement (CCMS) by DuPont, covering a three year period. KBR will provide supplemental maintenance and small capital construction services to DuPont at 19 of its production facilities across the northeast United States and Gulf Coast regions. Permanent presence work teams will be located at each facility to complete construction and maintenance projects as directed by DuPont.


§     

KBR was awarded a basic contract by the U.S. Air Force Center for Engineering and the Environment (AFCEE) Contracting Officer to compete for future task orders under the Worldwide Environmental Restoration and Construction 2009 (WERC09) program. KBR is one of 23 companies that received contract award notification from AFCEE in the Full & Open competition. The total contract value to be dispersed among participating contractors is $3 billion and has a base contract period of five years. Under the contract and upon award of future task order(s), KBR will provide a full range of engineering and construction activities necessary to meet Air Force and other customer requirements to be carried out as specified under Task Orders at locations worldwide.


§     

KBR was awarded a contract by Chevron USA Inc. for the FEED of the topsides for the proposed Big Foot development facility, located in the Walker Ridge Block 29 of the Gulf of Mexico and is owned by Chevron USA Inc. (operator), Statoil Gulf of Mexico LLC and Marubeni Oil & Gas (USA) Inc. The proposed facility will be installed in 5,300 feet of water approximately 200 miles from New Orleans and 35 miles south of Chevron’s producing Tahiti field. KBR will provide engineering and project management services to develop the process design, specify the required equipment, layout, modularize and integrate the decks, perform the necessary structural analyses, and provide the electrical power generation and distribution system designed to support the platform and the downhole electrical submersible pump requirements. KBR will also assist Chevron in estimating the cost of the facility and plan the subsequent phases of the development.


§     

KBR was awarded a contract by Suncor Energy, Inc. to provide turnaround services for Suncor’s 2010 Turnaround project at its oil sands plant in Fort McMurray, Alberta, Canada. KBR Canada will provide turnaround planning, management and execution for the shut down and maintenance of the plant including direct-hire labour resources, management of subcontractors, and coordination of activities with the client workforce and other contractors on site during the turnaround. Additionally, the Turnaround Group, Inc. (TGI), a KBR subsidiary, will work with the KBR Canada team to contribute expert project controls systems, providing high-level technical capabilities in the areas of planning, scheduling, cost estimating and forecasting, along with change management and the crucial integration of KBR’s activities with those of Suncor and other participants.


§     

KBR was awarded a Framework Contract by Sasol Technology (Pty) Ltd., the technology arm of the Sasol Group (Sasol), to provide engineering services across various sectors of Sasol Group’s business including downstream, petrochemical, and upstream in Southern Africa. Under the agreement and on the basis of mutually agreed terms and conditions, KBR will provide a full range of engineering services that will vary in scope depending on Sasol’s needs. The framework agreement is designed to allow Sasol and KBR to quickly engage on conceptual studies, feasibility studies and FEED packages.




KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial markets. For more information, visit www.kbr.com.

NOTE: The statements in this press release that are not historical statements, including statements regarding future financial performance and backlog information, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company’s indemnities from Halliburton Company; changes in capital spending by the company’s customers; the company’s ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates, escalating costs associated with and the performance of fixed-fee projects and the company’s ability to control its cost under its contracts; claims negotiations and contract disputes with the company’s customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR’s Annual Report on Form 10-K dated February 25, 2010, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.


KBR, Inc.: Condensed Consolidated Statements of Income
(Millions, except per share data) (Unaudited)

 

 

Three Months

 

Three Months

 
   

Ended

 

Ended

 
   

December 31,

 

September 30,

 

Revenue:

 

2009

 

2008

 

2009

 

Government and Infrastructure

 

$

1,207

 

$

1,788

 

$

1,376

 

Upstream

   

1,057

   

822

   

735

 

Services

   

543

   

597

   

566

 

Downstream

   

125

   

145

   

123

 

Technology

   

27

   

23

   

27

 

Ventures

   

5

   

1

   

5

 

Other

   

   

10

   

8

 

Total revenue

 

$

2,964

 

$

3,386

 

$

2,840

 

Business unit income (loss):

                   

Government and Infrastructure

 

$

(109

)

$

85

 

$

89

 

Upstream

   

220

   

65

   

48

 

Services

   

55

   

53

   

36

 

Downstream

   

11

   

14

   

10

 

Technology

   

7

   

3

   

7

 

Ventures

   

4

   

(1

)

 

4

 

Other

   

1

   

2

   

(5

)

Total business unit income

   

189

   

221

   

189

 

Unallocated costs: Gain (loss) on disposition of assets

   

1

   

   

(1

)

Labor cost absorption

   

(6

)

 

(8

)

 

(3

)

Corporate general and administrative

   

(60

)

 

(60

)

 

(54

)

Total operating income

   

124

   

153

   

131

 

Interest income (expense), net

   

(2

)

 

3

   

 

Foreign currency loss, net

   

(1

)

 

(6

)

 

 

Other non-operating expense

   

(1

)

 

   

(1

)

Income from continuing operations before income taxes and noncontrolling interests

   

120

   

150

   

130

 

Provision for income taxes

   

(31

)

 

(61

)

 

(33

)

Income from continuing operations, net of tax

 

$

89

 

$

89

 

$

97

 

Income from discontinued operations, net of tax benefit

                   

of $0, $0, and $0

   

   

   

 

Net income

   

89

   

89

   

97

 

Less: Net income attributable to noncontrolling interests

   

(16

)

 

(1

)

 

(24

)

Net income attributable to KBR

 

$

73

 

$

88

 

$

73

 

Reconciliation of net income attributable to KBR, Inc.

                   

common shareholders:

                   

Continuing operations

 

$

73

 

$

88

 

$

73

 

Discontinued operations, net

   

   

   

 

Net income attributable to KBR

   

73

   

88

   

73

 

Basic income per share(a):

                   

Continuing operations - Basic

 

$

0.46

 

$

0.54

 

$

0.46

 

Discontinued operations, net - Basic

   

   

   

 

Net income attributable to KBR per share - Basic

   

0.46

   

0.54

   

0.46

 

Diluted income per share(a):

                   

Continuing operations – Diluted

 

$

0.45

 

$

0.54

 

$

0.45

 

Discontinued operations, net – Diluted

   

   

   

 

Net income attributable to KBR per share - Diluted

   

0.45

   

0.54

   

0.45

 

Basic weighted average shares outstanding

   

160

   

161

   

160

 

Diluted weighted average shares outstanding

   

161

   

162

   

161

 

Cash dividends declared per share

 

$

0.05

 

$

0.05

 

$

0.05

 


(a) Due to the effect of rounding, the sum of the individual per share amounts may not equal the total shown.

 

KBR, Inc.: Condensed Consolidated Statements of Income
(Millions, except per share data) (Unaudited)

 

 

Twelve Months Ended

 
   

December 31,

 

Revenue:

 

2009

 

2008

 

Government and Infrastructure

 

$

5,879

 

$

6,938

 

Upstream

   

3,330

   

2,682

 

Services

   

2,266

   

1,373

 

Downstream

   

485

   

484

 

Technology

   

97

   

84

 

Ventures

   

21

   

(2

)

Other

   

27

   

22

 

Total revenue

 

$

12,105

 

$

11,581

 

Business unit income (loss):

             

Government and Infrastructure

 

$

141

 

$

332

 

Upstream

   

406

   

262

 

Services

   

144

   

110

 

Downstream

   

35

   

51

 

Technology

   

22

   

19

 

Ventures

   

19

   

(5

)

Other

   

(3

)

 

3

 

Total business unit income

   

764

   

772

 

Unallocated costs: Loss on disposition of assets - corporate

   

   

 

Labor cost absorption

   

(11

)

 

(8

)

Corporate general and administrative

   

(217

)

 

(223

)

Total operating income

   

536

   

541

 

Interest income (expense), net

   

(1

)

 

35

 

Foreign currency gains (losses), net

   

   

(8

)

Other non-operating expense

   

(3

)

 

 

Income from continuing operations before income taxes and noncontrolling interests

   

532

   

568

 

Provision for income taxes

   

(168

)

 

(212

)

Income from continuing operations, net of tax

 

$

364

 

$

356

 

Income from discontinued operations, net of tax benefit

             

of $0 and $11

   

   

11

 

Net income

   

364

   

367

 

Less: Net income attributable to non controlling interests

   

(74

)

 

(48

)

Net income attributable to KBR

 

$

290

 

$

319

 

Reconciliation of net income attributable to KBR, Inc.

             

common shareholders:

             

Continuing operations

 

$

290

 

$

308

 

Discontinued operations, net

   

   

11

 

Net income attributable to KBR

   

290

   

319

 

Basic income per share(a):

             

Continuing operations – Basic

 

$

1.80

 

$

1.84

 

Discontinued operations – Basic

   

   

0.07

 

Net income attributable to KBR per share - Basic

   

1.80

   

1.91

 

Diluted income per share(a):

             

Continuing operations – Diluted

 

$

1.79

 

$

1.84

 

Discontinued operations – Diluted

   

   

0.07

 

Net income attributable to KBR per share - Diluted

   

1.79

   

1.90

 

Basic weighted average shares outstanding

   

160

   

166

 

Diluted weighted average shares outstanding

   

161

   

167

 

Cash dividends declared per share

 

$

0.20

 

$

0.20

 

(a)     

Due to the effect of rounding, the sum of the individual per share amounts may not equal the total shown.




KBR, Inc.: Condensed Consolidated Balance Sheets

(Millions) (Unaudited) 
 

   

December 31,

 

December 31,

 
   

2009

 

2008

 

Assets

Current assets:

             

Cash and equivalents

 

$

941

 

$

1,145

 

Receivables:

             

Accounts receivable, net

   

1,243

   

1,312

 

Unbilled receivables on uncompleted contracts

   

657

   

835

 

Total receivables

   

1,900

   

2,147

 

Deferred income taxes

   

192

   

107

 

Other current assets

   

608

   

743

 

Total current assets

   

3,641

   

4,142

 

Property, plant, and equipment, net of accumulated

             

depreciation of $264 and $224

   

251

   

245

 

Goodwill

   

691

   

694

 

Intangible assets, net

   

58

   

73

 

Equity in and advances to related companies

   

164

   

185

 

Noncurrent deferred income taxes

   

120

   

167

 

Noncurrent unbilled receivables on uncompleted contracts

   

321

   

134

 

Other assets

   

81

   

244

 

Total assets

 

$

5,327

 

$

5,884

 
               

Liabilities and Shareholders’ Equity

Current liabilities:

             

Accounts payable

 

$

1,045

 

$

1,387

 

Due to former parent, net

   

53

   

54

 

Advanced billings on uncompleted contracts

   

407

   

519

 

Reserve for estimated losses on uncompleted contracts

   

40

   

76

 

Employee compensation and benefits

   

191

   

320

 

Other current liabilities

   

552

   

680

 

Current liabilities related to discontinued operations, net

   

3

   

7

 

Total current liabilities

   

2,291

   

3,043

 

Noncurrent employee compensation and benefits

   

469

   

403

 

Other noncurrent liabilities

   

106

   

333

 

Noncurrent income tax payable

   

43

   

34

 

Noncurrent deferred tax liability

   

122

   

37

 

Total liabilities

   

3,031

   

3,850

 

KBR shareholders’ equity:

             

Preferred stock

   

   

 

Common stock

   

   

 

Paid-in capital in excess of par value

   

2,103

   

2,091

 

Accumulated other comprehensive loss

   

(444

)

 

(439

)

Retained earnings

   

854

   

596

 

Treasury stock

   

(225

)

 

(196

)

Total KBR shareholders’ equity

   

2,288

   

2,052

 

Noncontrolling interest

   

8

   

(18

)

Total shareholders’ equity

   

2,296

   

2,034

 

Total liabilities and shareholders’ equity

 

$

5,327

 

$

5,884

 



KBR, Inc.: Condensed Consolidated Statements of Cash Flows
(Millions)
(Unaudited)

 

   

Twelve Months Ended

 
   

December 31,

 
   

2009

 

2008

 

Cash flows from operating activities:

             

Net income

 

$

364

 

$

367

 

Adjustments to reconcile net income to net cash provided by (used in) operations:

             

Depreciation and amortization

   

55

   

49

 

Equity earnings of unconsolidated affiliates

   

(45

)

 

(88

)

Deferred income taxes

   

65

   

88

 

Impairment of goodwill

   

6

   

 

Other

   

14

   

28

 

Changes in operating assets and liabilities:

             

Receivables

   

107

   

(124

)

Unbilled receivables on uncompleted contracts

   

156

   

(45

)

Accounts payable

   

(355

)

 

214

 

Advanced billings on uncompleted contracts

   

(98

)

 

(315

)

Accrued employee compensation and benefits

   

(129

)

 

(40

)

Reserve for loss on uncompleted contracts

   

(37

)

 

(41

)

Collection (repayment) of advances from (to) unconsolidated affiliates , net

   

(18

)

 

68

 

Distribution of earnings from unconsolidated affiliates

   

54

   

121

 

Other assets

   

(264

)

 

(149

)

Other liabilities

   

89

   

(9

)

Total cash flows provided by (used in) operating activities

   

(36

)

 

124

 

Cash flows from investing activities:

             

Capital expenditures

   

(41

)

 

(37

)

Sales of property, plant, and equipment

   

   

7

 

Acquisition of businesses, net of cash acquired

   

   

(526

)

Proceeds from sale of investments

   

32

   

 

Total cash flows used in investing activities

   

(9

)

 

(556

)

Cash flows from financing activities:

             

Payments to reacquire common stock

   

(31

)

 

(196

)

Net proceeds from issuance of stock

   

2

   

3

 

Excess tax benefits from stock-based compensation

   

(7

)

 

2

 

Payments of dividends to shareholders

   

(32

)

 

(25

)

Distributions to noncontrolling shareholders, net

   

(54

)

 

(28

)

Cash collateralization of letters of credit, net

   

(44

)

 

 

Total cash flows used in financing activities

   

(166

)

 

(244

)

Effect of exchange rate changes on cash

   

7

   

(40

)

Decrease in cash and equivalents

   

(204

)

 

(716

)

Cash and equivalents at beginning of period

   

1,145

   

1,861

 

Cash and equivalents at end of period

 

$

941

 

$

1,145

 



KBR, Inc.: Revenue and Operating Results by Business Unit
(Millions)
(Unaudited)

                                                                                    Three Months Ended 

 

December 31,

 

September 30,

 

Revenue:

 

2009

 

2008

 

2009

 

G&I: U.S. Government – Middle East Operations

 

$

972

 

$

1,446

 

$

1,108

 

U.S. Government – Americas Operations

   

95

   

158

   

130

 

International Operations

   

140

   

184

   

138

 

Total G&I

   

1,207

   

1,788

   

1,376

 

Upstream:

                   

Gas Monetization

   

777

   

703

   

637

 

Oil & Gas

   

280

   

119

   

98

 

Total Upstream

   

1,057

   

822

   

735

 

Services

   

543

   

597

   

566

 

Downstream

   

125

   

145

   

123

 

Technology

   

27

   

23

   

27

 

Ventures

   

5

   

1

   

5

 

Other

   

   

10

   

8

 

Total revenue

 

$

2,964

 

$

3,386

 

$

2,840

 

Business unit income (loss):

                   

G&I: U.S. Government – Middle East Operations

 

$

(123

)

$

59

 

$

71

 

U.S. Government – Americas Operations

   

16

   

9

   

19

 

International Operations

   

33

   

44

   

38

 

Total job income

   

(74

)

 

112

   

128

 

Divisional overhead

   

(35

)

 

(27

)

 

(39

)

Total G&I business unit income (loss)

   

(109

)

 

85

   

89

 

Upstream:

                   

Gas Monetization

   

23

   

55

   

40

 

Oil & Gas

   

210

   

19

   

20

 

Total job income

   

233

   

74

   

60

 

Divisional overhead

   

(13

)

 

(9

)

 

(12

)

Total Upstream business unit income

   

220

   

65

   

48

 

Services:

                   

Job income

   

77

   

75

   

56

 

Divisional overhead

   

(22

)

 

(22

)

 

(20

)

Total Services business unit income

   

55

   

53

   

36

 

Downstream:

                   

Job income

   

17

   

20

   

16

 

Divisional overhead

   

(6

)

 

(6

)

 

(6

)

Total Downstream business unit income

   

11

   

14

   

10

 

Technology:

                   

Job income

   

15

   

9

   

14

 

Divisional overhead

   

(8

)

 

(6

)

 

(7

)

Total Technology business unit income

   

7

   

3

   

7

 

Ventures:

                   

Job income

   

4

   

(1

)

 

5

 

Divisional overhead

   

   

   

(1

)

Total Ventures business unit income (loss)

   

4

   

(1

)

 

4

 

Other:

                   

Job Income

   

2

   

3

   

2

 

Impairment of goodwill

   

   

   

(6

)

Gain on sale of assets

   

   

1

   

 

Divisional overhead

   

(1

)

 

(2

)

 

(1

)

Total Other business unit income (loss)

   

1

   

2

   

(5

)

Total business unit income

 

$

189

 

$

221

 

$

189

 



KBR, Inc.: Revenue and Operating Results by Business Unit
(Millions)
(Unaudited)

                                                                                     Twelve Months Ended 

   

December 31,

 

Revenue:

 

2009

 

2008

 

G&I: U.S. Government – Middle East Operations

 

$

4,838

 

$

5,518

 

U.S. Government – Americas Operations

   

484

   

618

 

International Operations

   

557

   

802

 

Total G&I

   

5,879

   

6,938

 

Upstream:

             

Gas Monetization

   

2,748

   

2,157

 

Oil & Gas

   

582

   

525

 

Total Upstream

   

3,330

   

2,682

 

Services

   

2,266

   

1,373

 

Downstream

   

485

   

484

 

Technology

   

97

   

84

 

Ventures

   

21

   

(2

)

Other

   

27

   

22

 

Total revenue

 

$

12,105

 

$

11,581

 

Business unit income (loss):

             

G&I: U.S. Government – Middle East Operations

 

$

70

 

$

242

 

U.S. Government – Americas Operations

   

65

   

36

 

International Operations

   

145

   

170

 

Total job income

   

280

   

448

 

Divisional overhead

   

(139

)

 

(116

)

Total G&I business unit income

   

141

   

332

 

Upstream:

             

Gas Monetization

   

178

   

165

 

Oil & Gas

   

274

   

141

 

Total job income

   

452

   

306

 

Divisional overhead

   

(46

)

 

(44

)

Total Upstream business unit income

   

406

   

262

 

Services:

             

Job income

   

226

   

151

 

Gain on sale of assets

   

   

1

 

Divisional overhead

   

(82

)

 

(42

)

Total Services business unit income

   

144

   

110

 

Downstream:

             

Job income

   

59

   

72

 

Divisional overhead

   

(24

)

 

(21

)

Total Downstream business unit income

   

35

   

51

 

Technology:

             

Job income

   

49

   

41

 

Divisional overhead

   

(27

)

 

(22

)

Total Technology business unit income

   

22

   

19

 

Ventures:

             

Job income (loss)

   

19

   

(4

)

Gain on sale of assets

   

2

   

1

 

Divisional overhead

   

(2

)

 

(2

)

Total Ventures business unit income (loss)

   

19

   

(5

)

Other:

             

Job Income

   

9

   

7

 

Impairment of goodwill

   

(6

)

 

 

Gain on sale of assets

   

   

1

 

Divisional overhead

   

(6

)

 

(5

)

Total Other business unit income (loss)

   

(3

)

 

3

 

Total Business unit income

 

$

764

 

$

772

 



KBR, Inc.: Backlog Information (a)

(Millions) (Unaudited)

   

   

December 31,

 

September 30,

 

December 31,

 
   

2009

 

2009

 

2008

 

G&I:

                   

U.S. Government – Middle East Operations

 

$

901

 

$

781

 

$

1,428

 

U.S. Government – Americas Operations

   

561

   

379

   

600

 

International Operations

   

1,553

   

1,390

   

1,446

 

Total G&I(b)

   

3,015

   

2,550

   

3,474

 

Upstream:

                   

Gas Monetization

   

6,976

   

7,414

   

6,196

 

Oil & Gas

   

109

   

149

   

260

 

Total Upstream

   

7,085

   

7,563

   

6,456

 

Services

   

2,484

   

1,898

   

2,810

 

Downstream

   

611

   

624

   

578

 

Technology

   

154

   

140

   

130

 

Ventures

   

749

   

709

   

649

 

Total backlog for continuing operations

 

$

14,098

 

$

13,484

 

$

14,097

 


(a) Backlog is presented differently depending on if the contract is consolidated by KBR or is accounted for under the equity method of accounting. Backlog related to consolidated projects is presented as 100% of the expected revenue from the project. Backlog related to projects accounted for under the equity method of accounting is presented as KBR’s share of the expected future revenue from the project. Our backlog for projects related to unconsolidated joint ventures totaled $2.1 billion, $2.2 billion, and $2.4 billion at December 31, 2009, September 30, 2009, and December 31, 2008, respectively. Our backlog related to consolidated joint ventures with noncontrolling interest totaled $4.6 billion, $4.8 billion, and $3.1 billion at December 31, 2009, September 30, and December 31, 2008, respectively.

As of December 31, 2009, 18% of our backlog for continuing operations was attributable to fixed-price contracts and 82% was attributable to cost-reimbursable contracts. For contracts that contain both fixed-price and cost-reimbursable components, we classify the components as either fixed-price or cost-reimbursable according to the composition of the contract except for smaller contracts where we characterize the entire contract based on the predominate component.

(b)     

The Government and Infrastructure unit backlog attributable to firm orders in the amount of $2.7 billion, $2.4 billion, and $3.3 billion as of December 31, 2009, September 30, 2009, and December 31, 2008, respectively. Government and Infrastructure business unit backlog attributable to unfunded orders was $0.3 billion as of December 31, 2009, $0.1 billion as of September 30, 2009 and $0.2 billion as of December 31, 2008.




 

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