-
Full year 2011 earnings per diluted share up 53% compared to full year
2010
-
KBR full year 2011 revenue, excluding the LogCAP project, up 4%
-
Cash flows from operating activities for full year 2011 of $650
million; up 18% compared to full year 2010
-
Continued strong balance sheet with $966 million cash and equivalents
HOUSTON -- (Business Wire)
KBR (NYSE:KBR) announced today that fourth quarter 2011 net income
attributable to KBR was $90 million, or $0.60 per diluted share,
compared to net income attributable to KBR of $78 million, or $0.51 per
diluted share, in the fourth quarter of 2010.
Consolidated revenue in the fourth quarter was $2.1 billion compared to
$2.3 billion in the fourth quarter of 2010. Operating income was $136
million compared to $148 million in the prior year fourth quarter.
Fourth quarter operating income, when compared to the prior year fourth
quarter, was negatively impacted by approximately $25 million in cost
and schedule issues on three legacy projects at Roberts & Schaefer and
lower profits in Downstream, Oil and Gas, and Services.
Hydrocarbons revenue and income was $989 million and $99 million, down
7% and 14%, respectively, compared to the fourth quarter of 2010.
Infrastructure, Government, and Power (IGP) revenue in the fourth
quarter was $707 million, down $138 million compared to the prior year
fourth quarter. The fourth quarter of 2011 included an expected revenue
reduction of $222 million, compared to the prior year fourth quarter,
related to reduced activity on the LogCAP contracts. IGP income was $55
million in the fourth quarter, up $17 million or 45%, compared to the
prior year fourth quarter. Services revenue and income in the fourth
quarter was $378 million and $15 million, down 7% and 50%, respectively,
compared to the fourth quarter of 2010.
“2011 was another solid year for KBR with consistent execution and
operating performance across our businesses. This resulted in strong
cash generation of $650 million from operations and a year-end cash
balance of almost a billion dollars,” said Bill Utt, Chairman,
President, and Chief Executive Officer of KBR. “The strong balance
sheet, execution momentum, and a robust prospect portfolio aligns KBR
for continued success in 2012 and beyond.”
Hydrocarbons Results
Gas Monetization job income was $65 million compared to job income of
$57 million in the fourth quarter of 2010. The increase in job income
was primarily related to increased profits on the Kitimat, Ichthys, and
Browse LNG projects as well as the Statoil KEP engineering services
project in Norway. Partially offsetting this increase was lower work
volumes on the Escravos GTL and Skikda LNG projects as well as the Pearl
GTL project as the project nears completion.
Oil and Gas job income was $23 million compared to job income of $37
million in the fourth quarter of 2010. The decrease in job income was
primarily related to the completion, or near completion, of several
projects including the CLOV floating production, storage, and offloading
(FPSO), BP Quad 204 FEED, and Jack St. Malo. Partially offsetting this
decrease was work on the BP Shah Deniz FEED and Quad 204 detailed
design. The fourth quarter of 2010 included a $7 million gain from a
project close-out settlement on an offshore FPSO project.
Downstream job income was $19 million compared to job income of $44
million in the fourth quarter of 2010. The decrease in job income was
primarily related to the reduced work volumes on a number of
international refinery projects and a fourth quarter of 2010 contingency
release on the Saudi Kayan project.
Technology job income was $22 million compared to job income of $12
million in the fourth quarter of 2010. The increase in job income was
primarily related to the sale of proprietary equipment for an ammonia
plant in Brazil and several new ammonia and aniline projects in
Indonesia, Egypt, China, and Saudi Arabia. The fourth quarter of 2010
included an unfavorable jury verdict on a project dispute.
Infrastructure, Government, and Power Results
North American Government and Logistics (NAGL) job income was $45
million compared to job income of $29 million in the fourth quarter of
2010. The increase in job income is primarily related to net favorable
cost reserve adjustments.
International Government, Defence and Support Services (IGDSS) job
income was $50 million compared to job income of $26 million in the
fourth quarter of 2010. The increase in job income primarily related to
improved margins on the Allenby & Connaught, Namsa Kabul, Namsa KAF,
Afghanistan ISP, and CONLOG projects.
Infrastructure and Minerals (I&M) loss was $7 million compared to job
income of $15 million in the fourth quarter of 2010. The decrease in job
income was primarily related to approximately $25 million in cost and
schedule issues on three legacy projects at Roberts & Schaefer.
Partially offsetting this decrease was the ramp up of the Hope Downs 4
project in Australia.
Power and Industrial (P&I) job income was $6 million compared to job
income of $2 million in the fourth quarter of 2010. The increase in job
income was primarily related to the ramp up and increased activity on
newly awarded waste-to-energy expansion and coal gasification projects,
increased work volumes on forest products-related engineering contracts,
and the close-out of an activated carbon project.
Services Results
Services job income was $30 million compared to job income of $47
million in the fourth quarter of 2010. The decrease in job income was
primarily driven by lower margins and reduced activity in Industrial
Services, the completion of several large U.S. construction projects,
and the close-out of a large project in Canada in the prior year fourth
quarter.
Ventures Results
Ventures job income was $13 million compared to job income of $9 million
in the fourth quarter of 2010. The increase in job income was primarily
related to higher ammonia prices related to the EBIC ammonia project in
Egypt.
Corporate
Corporate general and administrative expense was $51 million compared to
$55 million in the prior year fourth quarter. Cost controls and
budgetary discipline are evident in all areas.
Total cash provided by operating activities in the fourth quarter of
2011 was $338 million and was $650 million for the twelve months of
2011, driven by overall earnings and improved working capital management.
The effective tax rate for the fourth quarter 2011 was approximately 19%.
During the fourth quarter of 2011, KBR had share repurchases of $22
million, capital expenditures of $17 million, pension contributions of
$8 million, and quarterly dividend payments of $7 million.
Full Year 2012 Outlook
The KBR full year 2012 earnings per diluted share guidance is in the
$2.45 to $2.80 range.
Significant Achievements and Awards
-
KBR, JGC Corporation (JGC) and Chiyoda Corporation (Chiyoda) jointly
announced that INPEX CORPORATION and Total S.A. (the Ichthys Owners)
have notified the joint venture formed by JGC, KBR and Chiyoda, the
JKC JV, that the Final Investment Decision for the Ichthys LNG project
has been achieved. As part of this notification, the Ichthys Owners
have issued a notification of award to the JKC JV for the engineering,
procurement and construction for Ichthys LNG Project. The Ichthys
Owners and the JKC JV have executed a formal letter of award for the
initial engineering, procurement and construction activities for the
project.
-
KBR was awarded a contract to upgrade Rio Tinto’s fuel assets as part
of the mining company’s investment in power and fuel supply projects
to underpin existing and future expansion of iron ore production
capacity in the Pilbara region of Western Australia. KBR’s minerals
division will provide engineering, procurement and construction
management services to install fuel assets and storage in five
locations: port facilities at Cape Lambert and Dampier, mines at
Brockman and West Angelas and a maintenance yard located near Dampier.
The infrastructure will help provide certainty in meeting Rio Tinto’s
fuel requirements.
-
KBR was awarded a contract to provide construction services for
ExxonMobil’s new synthetics lubricant base stock facility to be built
at ExxonMobil’s refinery and chemical plant complex in Baytown, Texas.
When completed in 2013, the facility will produce ExxonMobil
Chemical’s high-viscosity SpectraSyn Elite™ metallocene PAO base
stock. KBR’s scope of work for the Baytown plant includes site work,
civil, structural, pipe, electrical, instrumentation and mechanical
installation, test and checkout services.
-
KBR was awarded a contract by the U.S. Army Corps of Engineers
Philadelphia District to serve as a contingency electrical power
generation contractor in Afghanistan. KBR will provide electrical
power generation in support of U.S. military operations at forward
operating bases in Afghanistan. KBR and the other two selected
contractors will compete for task orders under the contract which has
a ceiling value of $490 million over five years.
-
KBR was awarded a hybrid Firm-Fixed-Priced /Cost-Plus-Fixed-Fee Single
Award Task Order Contract for the United States Army Europe (USAREUR)
Support Contract. The contract is for a one-year base and four
one-year option periods for a total of five years. The maximum
capacity of the contract is estimated at $245 million over the
five-year lifespan of the contract. KBR will provide Base Operations
and Support Services to USAREUR throughout their area of
responsibility encompassing 51 countries. Work includes functions such
as: Facility Maintenance & Utility, Troop, Operational and
Construction Services. KBR is the incumbent on the existing USC
contract and has operated continuously for this client in the Balkans
since 1995.
-
KBR was awarded a job order contract by The Cooperative Purchasing
Network to provide construction management services for public
entities throughout the entire state of Texas. The one year contract
offers six option years for renewal. KBR will provide a full range of
construction management services that will vary in size and scope and
will include facilities repair, renovations and new construction for
all public entities throughout the state.
KBR is a global engineering, construction and services company
supporting the energy, hydrocarbons, government services, minerals,
civil infrastructure, power, industrial, and commercial 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 22, 2012, 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 Ended
|
| |
December 31,
| |
December 31,
| |
September 30,
|
| |
2011
| |
2010
| |
2011
|
| Revenue: | | | | | | |
|
Hydrocarbons
| |
$
|
989
| | |
$
|
1,069
| | |
$
|
1,122
| |
|
Infrastructure, Government and Power
| | |
707
| | | |
845
| | | |
876
| |
|
Services
| | |
378
| | | |
408
| | | |
370
| |
|
Ventures
| | |
17
| | | |
14
| | | |
14
| |
|
Other
|
|
|
5
|
|
|
|
6
|
|
|
|
5
|
|
| Total revenue |
|
|
2,096
|
|
|
|
2,342
|
|
|
|
2,387
|
|
| Business group income: | | | | | | |
|
Hydrocarbons
| | |
99
| | | |
115
| | | |
89
| |
|
Infrastructure, Government and Power
| | |
55
| | | |
38
| | | |
78
| |
|
Services
| | |
15
| | | |
30
| | | |
15
| |
|
Ventures
| | |
12
| | | |
12
| | | |
8
| |
|
Other
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
| Total business group income |
|
|
184
|
|
|
|
195
|
|
|
|
193
|
|
| Unallocated costs: | | | | | | |
|
Labor cost absorption
| | |
3
| | | |
8
| | | |
6
| |
|
General and administrative
|
|
|
(51
|
)
|
|
|
(55
|
)
|
|
|
(61
|
)
|
| Operating income |
|
|
136
|
|
|
|
148
|
|
|
|
138
|
|
|
Interest expense, net
| | |
(5
|
)
| | |
(5
|
)
| | |
(3
|
)
|
|
Foreign currency gains (loss), net
| | |
(1
|
)
| | |
-
| | | |
1
| |
|
Other non-operating gains (expense)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
1
|
|
| Income before income taxes and noncontrolling interests | | |
130
| | | |
142
| | | |
137
| |
|
Benefit (provision) for income taxes
|
|
|
(25
|
)
|
|
|
(45
|
)
|
|
|
54
|
|
| Net income | | |
105
| | | |
97
| | | |
191
| |
|
Net income attributable to noncontrolling interests
|
|
|
(15
|
)
|
|
|
(19
|
)
|
|
|
(6
|
)
|
| Net income attributable to KBR |
|
$
|
90
|
|
|
$
|
78
|
|
|
$
|
185
|
|
| | | | | |
|
| Net income attributable to KBR per share: | | | | | | |
|
Basic
| |
$
|
0.60
| | |
$
|
0.52
| | |
$
|
1.23
| |
|
Diluted
| | |
0.60
| | | |
0.51
| | | |
1.22
| |
| | | | | |
|
|
Basic weighted average shares outstanding
| | |
149
| | | |
151
| | | |
150
| |
|
Diluted weighted average shares outstanding
| | |
150
| | | |
152
| | | |
151
| |
| | | | | |
|
|
Cash dividends declared per share
| |
$
|
0.05
| | |
$
|
-
| | |
$
|
0.05
| |
|
| |
| |
KBR, Inc.: Condensed Consolidated Statements of Income
|
(Millions, except per share data) (Unaudited)
|
| | | |
|
| |
Twelve Months Ended
|
| |
December 31,
|
| |
2011
| |
2010
|
| Revenue: | | | | |
|
Hydrocarbons
| |
$
|
4,258
| | |
$
|
3,969
| |
|
Infrastructure, Government and Power
| | |
3,328
| | | |
4,299
| |
|
Services
| | |
1,590
| | | |
1,755
| |
|
Ventures
| | |
65
| | | |
55
| |
|
Other
|
|
|
20
|
|
|
|
21
|
|
| Total revenue |
|
|
9,261
|
|
|
|
10,099
|
|
| Business group income: | | | | |
|
Hydrocarbons
| | |
408
| | | |
400
| |
|
Infrastructure, Government and Power
| | |
266
| | | |
272
| |
|
Services
| | |
58
| | | |
102
| |
|
Ventures
| | |
42
| | | |
33
| |
|
Other
|
|
|
9
|
|
|
|
2
|
|
| Total business group income |
|
|
783
|
|
|
|
809
|
|
| Unallocated costs: | | | | |
|
Labor cost absorption
| | |
18
| | | |
12
| |
|
General and administrative
|
|
|
(214
|
)
|
|
|
(212
|
)
|
| Operating income |
|
|
587
|
|
|
|
609
|
|
|
Interest expense, net
| | |
(18
|
)
| | |
(17
|
)
|
|
Foreign currency gains (losses), net
| | |
3
| | | |
(4
|
)
|
|
Other non-operating expenses
|
|
|
-
|
|
|
|
(2
|
)
|
| Income before income taxes and noncontrolling interests | | |
572
| | | |
586
| |
|
Provision for income taxes
|
|
|
(32
|
)
|
|
|
(191
|
)
|
| Net income | | |
540
| | | |
395
| |
|
Net income attributable to noncontrolling interests
|
|
|
(60
|
)
|
|
|
(68
|
)
|
| Net income attributable to KBR |
|
$
|
480
|
|
|
$
|
327
|
|
| | | |
|
| Net income attributable to KBR per share: | | | | |
|
Basic
| |
$
|
3.18
| | |
$
|
2.08
| |
|
Diluted
| | |
3.16
| | | |
2.07
| |
| | | |
|
|
Basic weighted average shares outstanding
| | |
150
| | | |
156
| |
|
Diluted weighted average shares outstanding
| | |
151
| | | |
157
| |
| | | |
|
|
Cash dividends declared per share
| |
$
|
0.20
| | |
$
|
0.15
| |
|
| |
| | |
KBR, Inc.: Condensed Consolidated Balance Sheets
|
(Millions) (Unaudited)
|
| | | | |
|
| |
December 31,
| |
December 31,
| |
|
|
|
2011
|
|
2010
| |
| Assets | | | | | |
| Current assets: | | | | | |
|
Cash and equivalents
| |
$
|
966
| | |
$
|
786
| | |
|
Receivables:
| | | | | |
|
Accounts receivable, net
| | |
1,227
| | | |
1,455
| | |
|
Unbilled receivables on uncompleted contracts
|
|
|
435
|
|
|
|
428
|
| |
|
Total receivables
| | |
1,662
| | | |
1,883
| | |
|
Deferred income taxes
| | |
297
| | | |
199
| | |
|
Other current assets
|
|
|
517
|
|
|
|
394
|
| |
| Total current assets | | |
3,442
| | | |
3,262
| | |
|
Property, plant and equipment, net of accumulated
| | | | | |
|
depreciation of $364 and $334
| | |
384
| | | |
355
| |
|
|
Goodwill
| | |
951
| | | |
947
| | |
|
Intangible assets, net
| | |
113
| | | |
127
| | |
|
Equity in and advances to related companies
| | |
190
| | | |
219
| | |
|
Noncurrent deferred income taxes
| | |
128
| | | |
103
| | |
|
Noncurrent unbilled receivables on uncompleted contracts
| | |
313
| | | |
320
| | |
|
Other assets
|
|
|
152
|
|
|
|
84
|
| |
| Total assets |
|
$
|
5,673
|
|
|
$
|
5,417
|
| |
| | | | |
|
| Liabilities and Shareholders' Equity |
|
|
|
| |
| Current liabilities: | | | | | |
|
Accounts payable
| |
$
|
761
| | |
$
|
921
| | |
|
Due to former parent, net
| | |
53
| | | |
43
| | |
|
Obligation to former noncontrolling interest
| | |
1
| | | |
172
| | |
|
Advanced billings on uncompleted contracts
| | |
626
| | | |
498
| | |
|
Reserve from estimated losses on uncompleted contracts
| | |
22
| | | |
26
| | |
|
Employee compensation and benefits
| | |
226
| | | |
200
| | |
|
Current non-recourse project-finance debt of a variable interest
entity
| | |
10
| | | |
9
| | |
|
Other current liabilities
|
|
|
585
|
|
|
|
470
|
| |
| Total current liabilities | | |
2,284
| | | |
2,339
| | |
|
Noncurrent employee compensation and benefits
| | |
470
| | | |
397
| | |
|
Noncurrent non-recourse project-finance debt of a variable interest
entity
| | |
88
| | | |
92
| | |
|
Noncurrent obligation to former noncontrolling interest
| | |
8
| | | |
8
| | |
|
Other noncurrent liabilities
| | |
169
| | | |
132
| | |
|
Noncurrent income tax payable
| | |
141
| | | |
128
| | |
|
Noncurrent deferred tax liability
|
|
|
71
|
|
|
|
117
|
| |
| Total liabilities |
|
|
3,231
|
|
|
|
3,213
|
| |
| KBR shareholders' equity | | | | | |
|
Preferred stock
| | |
-
| | | |
-
| | |
|
Common stock
| | |
-
| | | |
-
| | |
|
Paid-in-capital in excess of par
| | |
2,005
| | | |
1,981
| | |
|
Accumulated other comprehensive loss
| | |
(548
|
)
| | |
(438
|
)
| |
|
Retained earnings
| | |
1,607
| | | |
1,157
| | |
|
Treasury stock
|
|
|
(569
|
)
|
|
|
(454
|
)
| |
| Total KBR shareholders' equity | | |
2,495
| | | |
2,246
| | |
|
Noncontrolling interests
|
|
|
(53
|
)
|
|
|
(42
|
)
| |
| Total shareholders' equity |
|
|
2,442
|
|
|
|
2,204
|
| |
| Total liabilities and shareholders' equity |
|
$
|
5,673
|
|
|
$
|
5,417
|
| |
|
| |
| |
KBR, Inc.: Condensed Consolidated Statements of Cash Flows
|
(Millions) (Unaudited)
|
| | | |
|
| |
Twelve Months Ended
|
| |
December 31,
|
|
|
|
2011
|
|
2010
|
| Cash flows from operating activities: | | | | |
|
Net income
| |
$
|
540
| | |
$
|
395
| |
|
Adjustments to reconcile net income to net cash provided by
operations:
| | | | |
|
Depreciation and amortization
| | |
71
| | | |
62
| |
|
Equity earnings of unconsolidated affiliates
| | |
(158
|
)
| | |
(137
|
)
|
|
Deferred income taxes
| | |
(173
|
)
| | |
14
| |
|
Impairment of long-lived assets
| | |
-
| | | |
5
| |
|
Other
| | |
14
| | | |
30
| |
|
Changes in operating assets and liabilities:
| | | | |
|
Receivables
| | |
252
| | | |
(182
|
)
|
|
Unbilled receivables on uncompleted contracts
| | |
(26
|
)
| | |
223
| |
|
Accounts payable
| | |
(110
|
)
| | |
(177
|
)
|
|
Advanced billings on uncompleted contracts
| | |
68
| | | |
116
| |
|
Accrued employee compensation and benefits
| | |
31
| | | |
9
| |
|
Reserve for loss on uncompleted contracts
| | |
(4
|
)
| | |
(13
|
)
|
|
Collection (repayment) of advances from (to) unconsolidated
affiliates, net
| | |
14
| | | |
(16
|
)
|
|
Distribution of earnings from unconsolidated affiliates
| | |
182
| | | |
93
| |
|
Other assets
| | |
(28
|
)
| | |
33
| |
|
Other liabilities
|
|
|
(23
|
)
|
|
|
94
|
|
| Total cash flows provided by operating activities |
|
|
650
|
|
|
|
549
|
|
| Cash flows from investing activities: | | | | |
|
Acquisition of business, net of cash acquired
| | |
-
| | | |
(299
|
)
|
|
Capital expenditures
| | |
(83
|
)
| | |
(66
|
)
|
|
Investment in equity method joint ventures
| | |
(11
|
)
| | |
(12
|
)
|
|
Investment in licensing arrangement
| | |
-
| | | |
(20
|
)
|
|
Proceeds from sale of investments
|
|
|
6
|
|
|
|
-
|
|
| Total cash flows used in investing activities |
|
|
(88
|
)
|
|
|
(397
|
)
|
| Cash flows from financing activities: | | | | |
|
Acquisition of noncontrolling interest
| | |
(178
|
)
| | |
-
| |
|
Payments to reacquire common stock
| | |
(118
|
)
| | |
(233
|
)
|
|
Distributions to noncontrolling interests, net
| | |
(63
|
)
| | |
(91
|
)
|
|
Payments of dividends to shareholders
| | |
(30
|
)
| | |
(32
|
)
|
|
Net proceeds from issuance of stock
| | |
7
| | | |
5
| |
|
Payments on short-term and long-term borrowings
| | |
(15
|
)
| | |
(13
|
)
|
|
Excess tax benefits from stock-based compensation
| | |
3
| | | |
-
| |
|
Return of cash collateral on letters of credit, net
|
|
|
17
|
|
|
|
28
|
|
| Total cash flows used in financing activities |
|
|
(377
|
)
|
|
|
(336
|
)
|
|
Effect of exchange rate changes on cash
| | |
(5
|
)
| | |
7
| |
|
Increase (decrease) in cash and equivalents
| | |
180
| | | |
(177
|
)
|
|
Cash increase due to consolidation of a variable interest entity
|
|
|
-
|
|
|
|
22
|
|
|
Cash and equivalents at beginning of period
|
|
|
786
|
|
|
|
941
|
|
| Cash and equivalents at end of period |
|
$
|
966
|
|
|
$
|
786
|
|
|
| |
| |
| |
KBR, Inc.: Revenue and Operating Results by Business Unit
|
(Millions)(Unaudited)
|
| | | | | |
|
| |
Three Months Ended
|
| |
December 31,
| |
December 31,
| |
September 30,
|
| Revenue: |
|
2011
|
|
2010
|
|
2011
|
|
Hydrocarbons:
| | | | | | |
|
Gas Monetization
| |
$
|
687
| | |
$
|
748
| | |
$
|
831
| |
|
Oil and Gas
| | |
116
| | | |
131
| | | |
117
| |
|
Downstream
| | |
139
| | | |
155
| | | |
136
| |
|
Technology
|
|
|
47
|
|
|
|
35
|
|
|
|
38
|
|
|
Total Hydrocarbons
|
|
|
989
|
|
|
|
1,069
|
|
|
|
1,122
|
|
|
Infrastructure, Government and Power
| | | | | | |
|
North American Government and Logistics
| | |
409
| | | |
618
| | | |
586
| |
|
International Government, Defence and Support Services
| | |
118
| | | |
85
| | | |
93
| |
|
Infrastructure and Minerals
| | |
117
| | | |
70
| | | |
142
| |
|
Power and Industrial
|
|
|
63
|
|
|
|
72
|
|
|
|
55
|
|
|
Total Infrastructure, Government and Power
|
|
|
707
|
|
|
|
845
|
|
|
|
876
|
|
|
Services
| | |
378
| | | |
408
| | | |
370
| |
|
Ventures
| | |
17
| | | |
14
| | | |
14
| |
|
Other
|
|
|
5
|
|
|
|
6
|
|
|
|
5
|
|
| Total revenue |
|
$
|
2,096
|
|
|
$
|
2,342
|
|
|
$
|
2,387
|
|
| | | | | |
|
| Business group income (loss): | | | | | | |
|
Hydrocarbons:
| | | | | | |
|
Gas Monetization
| |
$
|
65
| | |
$
|
57
| | |
$
|
52
| |
|
Oil and Gas
| | |
23
| | | |
37
| | | |
27
| |
|
Downstream
| | |
19
| | | |
44
| | | |
18
| |
|
Technology
|
|
|
22
|
|
|
|
12
|
|
|
|
17
|
|
|
Total job income
| | |
129
| | | |
150
| | | |
114
| |
|
Impairment of long-lived assets
| | |
-
| | | |
(4
|
)
| | |
-
| |
|
Gain (loss) on disposition of assets
| | |
(1
|
)
| | |
(1
|
)
| | |
1
| |
|
Division overhead
|
|
|
(29
|
)
|
|
|
(30
|
)
|
|
|
(26
|
)
|
|
Total Hydrocarbons
|
|
|
99
|
|
|
|
115
|
|
|
|
89
|
|
| | | | | |
|
|
Infrastructure, Government and Power:
| | | | | | |
|
North American Government and Logistics
| | |
45
| | | |
29
| | | |
61
| |
|
International Government, Defence and Support Services
| | |
50
| | | |
26
| | | |
28
| |
|
Infrastructure and Minerals
| | |
(7
|
)
| | |
15
| | | |
19
| |
|
Power and Industrial
|
|
|
6
|
|
|
|
2
|
|
|
|
9
|
|
|
Total job income
| | |
94
| | | |
72
| | | |
117
| |
|
Loss on disposition of assets
| | |
-
| | | |
-
| | | |
(1
|
)
|
|
Division overhead
|
|
|
(39
|
)
|
|
|
(34
|
)
|
|
|
(38
|
)
|
|
Total Infrastructure, Government and Power
|
|
|
55
|
|
|
|
38
|
|
|
|
78
|
|
| | | | | |
|
|
Services:
| | | | | | |
|
Job income
| | |
30
| | | |
47
| | | |
31
| |
|
Gain on disposition of assets
| | |
1
| | | |
-
| | | |
-
| |
|
Division overhead
|
|
|
(16
|
)
|
|
|
(17
|
)
|
|
|
(16
|
)
|
|
Total Services
|
|
|
15
|
|
|
|
30
|
|
|
|
15
|
|
| | | | | |
|
|
Ventures:
| | | | | | |
|
Job income
| | |
13
| | | |
9
| | | |
9
| |
|
Gain on disposition of assets
| | |
-
| | | |
3
| | | |
-
| |
|
Division overhead
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
Total Ventures
|
|
|
12
|
|
|
|
12
|
|
|
|
8
|
|
| | | | | |
|
|
Other:
| | | | | | |
|
Job income
| | |
4
| | | |
2
| | | |
5
| |
|
Impairment of long-lived assets
| | |
-
| | | |
(1
|
)
| | |
-
| |
|
Gain on disposition of assets
| | |
1
| | | |
1
| | | |
-
| |
|
Division overhead
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Total Other
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
| Total business group income |
|
$
|
184
|
|
|
$
|
195
|
|
|
$
|
193
|
|
|
| |
| |
KBR, Inc.: Revenue and Operating Results by Business Unit
|
(Millions) (Unaudited)
|
| | | |
|
| |
Twelve Months Ended
|
| |
December 31,
|
| Revenue: |
|
2011
|
|
2010
|
|
Hydrocarbons:
| | | | |
|
Gas Monetization
| |
$
|
3,044
| | |
$
|
2,829
| |
|
Oil and Gas
| | |
488
| | | |
426
| |
|
Downstream
| | |
557
| | | |
584
| |
|
Technology
|
|
|
169
|
|
|
|
130
|
|
|
Total Hydrocarbons
|
|
|
4,258
|
|
|
|
3,969
|
|
|
Infrastructure, Government and Power
| | | | |
|
North American Government and Logistics
| | |
2,198
| | | |
3,307
| |
|
International Government, Defence and Support Services
| | |
378
| | | |
369
| |
|
Infrastructure and Minerals
| | |
510
| | | |
271
| |
|
Power and Industrial
|
|
|
242
|
|
|
|
352
|
|
|
Total Infrastructure, Government and Power
|
|
|
3,328
|
|
|
|
4,299
|
|
|
Services
| | |
1,590
| | | |
1,755
| |
|
Ventures
| | |
65
| | | |
55
| |
|
Other
|
|
|
20
|
|
|
|
21
|
|
| Total revenue |
|
$
|
9,261
|
|
|
$
|
10,099
|
|
| | | |
|
| Business group income: | | | | |
|
Hydrocarbons:
| | | | |
|
Gas Monetization
| |
$
|
257
| | |
$
|
252
| |
|
Oil and Gas
| | |
104
| | | |
90
| |
|
Downstream
| | |
77
| | | |
117
| |
|
Technology
|
|
|
75
|
|
|
|
55
|
|
|
Total job income
| | |
513
| | | |
514
| |
|
Impairment of long-lived assets
| | |
-
| | | |
(4
|
)
|
|
Gain on disposition of assets
| | |
1
| | | |
-
| |
|
Division overhead
|
|
|
(106
|
)
|
|
|
(110
|
)
|
|
Total Hydrocarbons
|
|
|
408
|
|
|
|
400
|
|
| | | |
|
|
Infrastructure, Government and Power:
| | | | |
|
North American Government and Logistics
| | |
212
| | | |
230
| |
|
International Government, Defence and Support Services
| | |
128
| | | |
88
| |
|
Infrastructure and Minerals
| | |
60
| | | |
62
| |
|
Power and Industrial
|
|
|
29
|
|
|
|
37
|
|
|
Total job income
| | |
429
| | | |
417
| |
|
Loss on disposition of assets
| | |
(1
|
)
| | |
-
| |
|
Division overhead
|
|
|
(162
|
)
|
|
|
(145
|
)
|
|
Total Infrastructure, Government and Power
|
|
|
266
|
|
|
|
272
|
|
| | | |
|
|
Services:
| | | | |
|
Job income
| | |
124
| | | |
172
| |
|
Gain (loss) on disposition of assets
| | |
1
| | | |
(1
|
)
|
|
Division overhead
|
|
|
(67
|
)
|
|
|
(69
|
)
|
|
Total Services
|
|
|
58
|
|
|
|
102
|
|
| | | |
|
|
Ventures:
| | | | |
|
Job income
| | |
45
| | | |
33
| |
|
Gain on disposition of assets
| | |
1
| | | |
3
| |
|
Division overhead
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
Total Ventures
|
|
|
42
|
|
|
|
33
|
|
| | | |
|
|
Other:
| | | | |
|
Job income
| | |
16
| | | |
12
| |
|
Impairment of long-lived assets
| | |
-
| | | |
(1
|
)
|
|
Gain (loss) on disposition of assets
| | |
1
| | | |
(2
|
)
|
|
Division overhead
|
|
|
(8
|
)
|
|
|
(7
|
)
|
|
Total Other
|
|
|
9
|
|
|
|
2
|
|
| Total business group income |
|
$
|
783
|
|
|
$
|
809
|
|
|
| |
| |
| |
| KBR, Inc. Backlog Information |
|
(Millions) (Unaudited)
|
| | | | | |
|
| | | | | |
|
| |
December 31,
| |
September 30,
| |
December 31,
|
|
|
|
2011
|
|
2011
|
|
2010
|
|
Hydrocarbons:
| | | | | | |
|
Gas Monetization
| |
$
|
3,880
| |
$
|
4,314
| |
$
|
5,509
|
|
Oil and Gas
| | |
289
| | |
285
| | |
325
|
|
Downstream
| | |
546
| | |
582
| | |
525
|
|
Technology
|
|
|
258
|
|
|
216
|
|
|
201
|
|
Total Hydrocarbons
|
|
|
4,973
|
|
|
5,397
|
|
|
6,560
|
| | | | | |
|
|
Infrastructure, Government and Power:
| | | | | | |
|
North American Government and Logistics
| | |
899
| | |
1,258
| | |
1,043
|
|
International Government, Defence and Support Services
| | |
1,086
| | |
1,139
| | |
1,223
|
|
Infrastructure and Minerals
| | |
502
| | |
559
| | |
446
|
|
Power and Industrial
|
|
|
777
|
|
|
743
|
|
|
177
|
|
Total Infrastructure, Government and Power
|
|
|
3,264
|
|
|
3,699
|
|
|
2,889
|
| | | | | |
|
|
Services
| | |
1,766
| | |
1,642
| | |
1,771
|
|
Ventures
|
|
|
928
|
|
|
939
|
|
|
821
|
| Total backlog(b) |
|
$
|
10,931
|
|
$
|
11,677
|
|
$
|
12,041
|
(a) Backlog is presented differently depending on whether 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 generally
includes total expected revenue in backlog when a contract is awarded
and/or the scope is definitized. Where contract duration is indefinite,
projects included in backlog are limited to the estimated amount of
expected revenue within the following twelve months. Certain contracts
provide maximum dollar limits, with actual authorization to perform work
under the contract being agreed upon on a periodic basis with the
customer. In these arrangements, only the amounts authorized are
included in backlog. For projects where KBR acts solely in a project
management capacity, KBR only includes the management fee revenue of
each project in backlog. For certain long-term service contracts with a
defined contract term, such as those associated with privately financed
projects, the amount included in backlog is limited to five years.
Backlog related to unconsolidated joint ventures is presented as KBR’s
percentage ownership of the joint venture’s estimated revenue. However,
because these projects are accounted for under the equity method, only
KBR’s share of future earnings from these projects will be recorded in
revenue. Our backlog for projects related to unconsolidated joint
ventures totaled $1.7 billion, $1.7 billion and $1.7 billion at December
31, 2011, September 30, 2011, and December 31, 2010, respectively. Our
backlog related to consolidated joint ventures with noncontrolling
interest totaled $3.2 billion, $3.6 billion and $4.2 billion at December
31, 2011, September 30, 2011, and December 31, 2010, respectively.
As of December 31, 2011, 25% of our backlog was attributable to
fixed-price contracts and 75% 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.
All backlog is attributable to firm orders as of December 31, 2011,
September 30, 2011, and December, 31, 2010.
(b) Backlog attributable to unfunded government orders was $0.4 billion,
$0.4 billion and $0.1 billion as of December 31, 2011, September 30,
2011, and December 31, 2010, respectively.
Contacts:
KBR
Zac Nagle, 713-753-5082
Vice President, Investor Relations
and Communications
or
Rob Kukla, Jr., 713-753-5082
Director,
Investor Relations
Source: KBR
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