Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Business Reorganization

	Year Ended						Year Ended
	December 31, 2018						December 31, 2017
Dollars in millions	As Reported			As Previously Reported			As Reported			As Previously Reported
Statement of Operations
Cost of revenues	$	(4,329	)	$	(4,457	)	$	(3,732	)	$	(3,829	)
Selling, general and administrative expenses	(294		)	(166		)	(244		)	(147		)

Schedule of Revenues and Receivables from Major Customers

The following tables present summarized data related to our transactions with U.S. and U.K governmental agencies.

Revenues from major customers:
	Years ended December 31,
Dollars in millions	2019		2018		2017
U.S. government	$	3,014	$	2,610	$	1,914
U.K. government	$	659	$	622	$	66

Percentages of revenues and accounts receivable from major customers:
	Years ended December 31,
	2019		2018		2017
U.S. government revenues percentage	53	%	53	%	46	%
U.S. government receivables percentage	52	%	57	%	32	%
U.K. government revenues percentage	12	%	13	%	2	%
U.K. government receivables percentage	5	%	4	%	1	%

Schedule of Other Current Assets

The components of "Other current assets" on our consolidated balance sheets as of December 31, 2019 and 2018 are presented below: 

	December 31,
Dollars in millions	2019		2018
Prepaid expenses	$	65	$	49
Value-added tax receivable	37		29
Advances to subcontractors	20		5
Other miscellaneous assets	24		25
Total other current assets	$	146	$	108

Components of Other Current Liabilities

The components of "Other current liabilities" on our consolidated balance sheets as of December 31, 2019 and 2018 are presented below:

	December 31,
Dollars in millions	2019		2018
Current maturities of long-term debt	$	27	$	22
Reserve for estimated losses on uncompleted contracts	10		6
Retainage payable	41		33
Income taxes payable	25		30
Value-added tax payable	36		33
Dividend payable	11		11
Other miscellaneous liabilities	36		44
Total other current liabilities	$	186	$	179

Schedule of Impact of New Accounting Pronouncements

We recognized the cumulative effect of initially applying ASC Topic 606 for our unconsolidated affiliates as an adjustment to our assets and retained earnings in the balance sheet as of January 1, 2019, as follows:

	Balance at		Adjustments Due to		Balance at
Dollars in millions	December 31, 2018		ASC 606		January 1, 2019
Assets
Equity in and advances to unconsolidated affiliates	$	724	$	29	$	753
Shareholders' equity
Retained Earnings	1,235		29		1,264

We recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of January 1, 2018 as follows:

	Balance at		Adjustments Due to			Balance at
Dollars in millions	December 31, 2017		ASC 606			January 1, 2018
Assets
Accounts receivable	$	510	$	157		$	667
Contract assets	383		(191		)	192
Other current assets	93		5			98
Equity in and advances to unconsolidated affiliates	365		87			452
Deferred income taxes	300		(6		)	294
Other assets	124		1			125
Liabilities
Contract liabilities	368		9			377
Deferred income from unconsolidated affiliates	101		(101		)	—
Other liabilities	171		1			172
Equity
Retained Earnings	854		144			998

The impact of adoption on our consolidated statement of operations, balance sheet and cash flows for the period ended December 31, 2018 was as follows:

	Year Ended December 31, 2018
	As			Balances Without			Effect of Change
Dollars in millions	Reported			Adoption of ASC 606			Higher/(Lower)
Statement of Operations
Revenues	$	4,913		$	4,904		$	9
Cost of revenues	(4,329		)	(4,328		)	1
Equity in earnings of unconsolidated affiliates	79			75			4
Income before income taxes and noncontrolling interests	396			384			12
Provision for income taxes	(86		)	(85		)	1
Net income	310			300			10
EPS
Basic	$	1.99		$	1.92		$	0.07
Diluted	$	1.99		$	1.91		$	0.08

	As of December 31, 2018
	As			Balances Without			Effect of Change
Dollars in millions	Reported			Adoption of ASC 606			Higher/(Lower)
Assets
Accounts receivable	$	927		$	594		$	333
Contract assets	185			496			(311		)
Other current assets	108			103			5
Equity in and advances to unconsolidated affiliates	724			716			8
Deferred income taxes	222			229			(7		)
Other assets	147			143			4
Liabilities
Contract liabilities	463			479			(16		)
Deferred income taxes	27			28			(1		)
Deferred income from unconsolidated affiliates	—			95			(95		)
Other liabilities	202			202			—
Equity
Retained earnings	1,235			1,080			155
Accumulated other comprehensive loss	(910		)	(899		)	(11		)

	Year Ended December 31, 2018
	As			Balances Without			Effect of Change
Dollars in millions	Reported			Adoption of ASC 606			Higher/(Lower)
Cash flows from operating activities
Net income	$	310		$	300		$	10
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of unconsolidated affiliates	(79		)	(75		)	(4		)
Deferred income tax (benefit) expense	26			25			1
Changes in operating assets and liabilities, net of acquired businesses:
Accounts receivable, net of allowances for doubtful accounts	(203		)	130			(333		)
Contract assets	25			(286		)	311
Contract liabilities	(60		)	(77		)	17
Other assets and liabilities	(7		)	(5		)	(2		)
Total cash flows used in operating activities	165			165			—

We recognized the cumulative effect of initially applying ASC Topic 842 as an adjustment to our assets and liabilities in our consolidated balance sheet as of January 1, 2019, as follows:

	Balance at		Adjustments Due to			Balance at
Dollars in millions	December 31, 2018		ASC 842			January 1, 2019
Assets
Operating lease right-of-use asset	$	—	$	185		$	185
Other current assets	108		(1		)	107
Deferred income taxes	222		(7		)	215
Liabilities
Operating lease liabilities	—		40			40
Other current liabilities	179		(5		)	174
Operating lease liabilities (noncurrent)	—		213			213
Other liabilities (noncurrent)	202		(92		)	110
Shareholders' equity
Retained Earnings	1,235		21			1,256