KBR, INC., 10-Q filed on 10/31/2017
Quarterly Report
Document And Entity Information (USD $)
9 Months Ended
Sep. 30, 2017
Oct. 12, 2017
Dec. 31, 2016
Document and Entity Information [Abstract]
 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Sep. 30, 2017 
 
 
Entity Registrant Name
KBR, Inc. 
 
 
Entity Central Index Key
0001357615 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
140,079,609 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
Q3 
 
 
Common stock, par value
$ 0.001 
 
$ 0.001 
Condensed Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]
 
 
 
 
Revenues
$ 1,034 
$ 1,073 
$ 3,234 
$ 3,078 
Cost of revenues
(947)
(1,109)
(2,957)
(2,972)
Gross profit (loss)
87 
(36)
277 
106 
Equity in earnings of unconsolidated affiliates
23 
19 
64 
81 
General and administrative expenses
(37)
(43)
(107)
(111)
Asset impairment and restructuring charges
0 
(7)
0 
(21)
Gain on disposition of assets
0 
0 
5 
6 
Operating income (loss)
73 
(67)
239 
61 
Interest Expense
(6)
(3)
(16)
(7)
Other non-operating income (expense)
(4)
2 
(9)
8 
Income (loss) before income taxes and noncontrolling interests
63 
(68)
214 
62 
Benefit (provision) for income taxes
(16)
11 
(50)
(27)
Net income (loss)
47 
(57)
164 
35 
Net income attributable to noncontrolling interests
(2)
(6)
(5)
(9)
Net income (loss) attributable to KBR
$ 45 
$ (63)
$ 159 
$ 26 
Earnings Per Share [Abstract]
 
 
 
 
Basic
$ 0.32 
$ (0.44)
$ 1.12 
$ 0.18 
Diluted
$ 0.32 
$ (0.44)
$ 1.12 
$ 0.18 
Basic weighted average common shares outstanding
140 
142 
141 
142 
Diluted weighted average common shares outstanding
140 
142 
141 
142 
Cash dividends declared per share
$ 0.08 
$ 0.08 
$ 0.24 
$ 0.24 
Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ 47 
$ (57)
$ 164 
$ 35 
Net cumulative translation adjustments (CTA)[Abstract]
 
 
 
 
Foreign currency translation adjustments, net of tax
2 
10 
7 
21 
Reclassification adjustment included in net income
0 
0 
0 
0 
Foreign currency translation adjustments, net of taxes of $1, $2, $7 and $2
2 
10 
7 
21 
Actuarial losses, net of tax
0 
0 
0 
0 
Reclassification adjustment included in net income
5 
6 
18 
18 
Pension and post-retirement benefits, net of taxes of $(2), $(1), $(4) and $(4)
5 
6 
18 
18 
Changes in fair value of derivatives, net of tax
1 
0 
1 
0 
Reclassification adjustment included in net income
(1)
(1)
(1)
(1)
Changes in fair value of derivatives, net of taxes of $0, $0, $0 and $0
0 
(1)
0 
(1)
Other comprehensive income, net of tax
7 
15 
25 
38 
Comprehensive income (loss)
54 
(42)
189 
73 
Less: Comprehensive income attributable to noncontrolling interests
(3)
(5)
(4)
(8)
Comprehensive income (loss) attributable to KBR
$ 51 
$ (47)
$ 185 
$ 65 
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), taxes [Abstract]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 1 
$ 2 
$ 7 
$ 2 
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax
$ (2)
$ (1)
$ (4)
$ (4)
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and equivalents
$ 511 
$ 536 
Receivables:
 
 
Accounts receivable, net of allowance for doubtful accounts of $14 and $14
501 
592 
Costs and estimated earnings in excess of billings on uncompleted contracts
412 
416 
Claims receivable
0 
400 
Other current assets
94 
103 
Total current assets
1,518 
2,047 
Claims and accounts receivable
100 
131 
Property, plant, and equipment, net of accumulated depreciation of $323 and $324 (including net PPE of $35 and $36 owned by a variable interest entity)
134 
145 
Goodwill
965 
959 
Intangible assets, net of accumulated amortization of $119 and $100
237 
248 
Equity in and advances to unconsolidated affiliates
401 
369 
Deferred income taxes
122 
118 
Other assets
124 
127 
Total assets
3,601 
4,144 
Current liabilities:
 
 
Accounts payable
398 
535 
Billings in excess of costs and estimated earnings on uncompleted contracts
360 
552 
Accrued salaries, wages and benefits
211 
171 
Nonrecourse project debt
10 
9 
Total other current liabilities
193 
292 
Total current liabilities
1,172 
1,559 
Pension obligations
520 
526 
Employee compensation and benefits
116 
113 
Income tax payable
81 
78 
Deferred income taxes
66 
149 
Nonrecourse project debt
32 
34 
Revolving credit agreement
470 
650 
Deferred income from unconsolidated affiliates
98 
90 
Other liabilities
188 
200 
Total liabilities
2,743 
3,399 
KBR Shareholders' equity:
 
 
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding
0 
0 
Common stock, $0.001 par value, 300,000,000 shares authorized, 176,527,539 and 175,913,310 shares issued, and 140,079,193 and 142,803,782 shares outstanding
0 
0 
Paid-in capital in excess of par
2,095 
2,088 
Accumulated other comprehensive loss
(1,024)
(1,050)
Retained earnings
613 
488 
Treasury stock, 36,448,346 and 33,109,528 shares, at cost
(817)
(769)
Total KBR shareholders’ equity
867 
757 
Noncontrolling interests
(9)
(12)
Total shareholders’ equity
858 
745 
Total liabilities and shareholders’ equity
$ 3,601 
$ 4,144 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Receivables:
 
 
Allowance for doubtful accounts
$ 14 
$ 14 
Property, plant, and equipment:
 
 
Accumulated depreciation
323 
324 
PP&E owned by a VIE, net
35 
36 
Intangibles:
 
 
Accumulated amortization
$ 119 
$ 100 
KBR Shareholders' equity:
 
 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
50,000,000 
50,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, shares issued
176,527,539 
175,913,310 
Common stock, shares outstanding
140,079,193 
142,803,782 
Treasury stock, shares
36,448,346 
33,109,528 
Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows provided by operating activities:
 
 
Net income (loss)
$ 164 
$ 35 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
Depreciation and amortization
38 
31 
Equity in earnings of unconsolidated affiliates
(64)
(81)
Deferred income tax (benefit) expense
(75)
7 
Other
20 
4 
Changes in operating assets and liabilities:
 
 
Accounts receivable, net of allowance for doubtful accounts
100 
9 
Costs and estimated earnings in excess of billings on uncompleted contracts
11 
25 
Claims receivable
400 
0 
Accounts payable
(144)
39 
Billings in excess of costs and estimated earnings on uncompleted contracts
(207)
14 
Accrued salaries, wages and benefits
39 
(19)
Reserve for loss on uncompleted contracts
(43)
(15)
Payments from (advances to) unconsolidated affiliates, net
6 
(3)
Distributions of earnings from unconsolidated affiliates
41 
43 
Income taxes payable
(7)
(19)
Pension funding
(28)
(31)
Net settlement of derivative contracts
4 
(8)
Other assets and liabilities
(17)
(23)
Total cash flows provided by operating activities
238 
8 
Cash flows used in investing activities:
 
 
Purchases of property, plant and equipment
(6)
(8)
Proceeds from sale of assets or investments
2 
2 
Payments to Acquire Equity Method Investments
0 
(5)
Acquisition of businesses, net of cash acquired
2 
(911)
Other
(2)
0 
Total cash flows used in investing activities
(4)
(922)
Cash flows provided by (used in) financing activities:
 
 
Payments to reacquire common stock
(52)
(2)
Distributions to noncontrolling interests
(1)
(9)
Payments of dividends to shareholders
(34)
(34)
Borrowings on revolving credit agreement
0 
700 
Payments on revolving credit agreement
(180)
(50)
Payments on short-term and long-term borrowings
(5)
(5)
Total cash flows provided by (used in) financing activities
(272)
600 
Effect of exchange rate changes on cash
13 
0 
Decrease in cash and equivalents
(25)
(314)
Cash and equivalents at beginning of period
536 
883 
Cash and equivalents at end of period
511 
569 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest
16 
7 
Cash paid for income taxes (net of refunds)
128 
31 
Noncash financing activities
 
 
Dividends declared
$ 11 
$ 12 
Description Of Company And Significant Accounting Policies
Description of Company and Significant Accounting Policies
Description of Company and Significant Accounting Policies

KBR, Inc., a Delaware corporation, was formed on March 21, 2006 and is headquartered in Houston, Texas. KBR, Inc. and its wholly owned and majority-owned subsidiaries (collectively referred to herein as "KBR", the "Company", "we", "us" or "our") is a global provider of differentiated, professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. Our capabilities include research and development, feasibility and solutions development, specialized technical consulting, systems integration, engineering and design service, process technologies, program management, construction services, commissioning and startup services, highly specialized mission and logistics support solutions, and asset operations and maintenance services and other support services to a diverse customer base, including government and military organizations of the U.S., U.K. and Australia and a wide range of customers across the hydrocarbons value chain.
  
Principles of Consolidation

Our condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR and our wholly owned and majority-owned subsidiaries and VIEs of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 10 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation.

Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows.

We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures.

Prior Period Adjustment

As originally disclosed in our June 30, 2017 Form 10-Q, during the second quarter of 2017 we corrected cumulative errors resulting in an increase to "Equity in earnings of unconsolidated affiliates" and "Net income attributable to KBR" within our condensed consolidated statements of operations of $9 million and $11 million, respectively. The errors in equity in earnings of unconsolidated affiliates primarily relate to our accounting for derivatives in one of our unconsolidated VIEs in our GS segment from the first quarter of 2016 through the first quarter of 2017. We evaluated these cumulative errors on both a quantitative and qualitative basis under the guidance of ASC 250 - Accounting Changes and Error Corrections. We determined that the cumulative impact of the errors did not affect the trend of net income, cash flows or liquidity and therefore did not have a material impact to previously issued financial statements.  Additionally, we do not expect our consolidated financial statements for the current annual period to be materially impacted by the error correction.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include but are not limited to the following:

•
project revenues, costs and profits on engineering and construction contracts, including recognition of estimated losses on uncompleted contracts
•
project revenues, award fees, costs and profits on government services contracts
•
provisions for uncollectible receivables
•
provisions for client claims and recoveries of costs from subcontractors, vendors and others
•
provisions for income taxes and related valuation allowances and tax uncertainties
•
recoverability of goodwill
•
recoverability of other intangibles and long-lived assets and related estimated lives
•
recoverability of equity method and cost method investments
•
valuation of pension obligations and pension assets
•
accruals for estimated liabilities, including litigation accruals
•
consolidation of VIEs
•
valuation of share-based compensation
•
valuation of assets and liabilities acquired in business combinations

In accordance with normal practice in the construction industry, we include in current assets and current liabilities certain amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.

Adoption of New Accounting Standards

Compensation. Effective January 1, 2017, we adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting which was issued by the FASB on March 31, 2016. This ASU is intended to simplify several aspects of the accounting for share-based payment transactions including (a) the income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU 2016-09 did not have a material impact on our financial statements.

Additional Balance Sheet Information

Other Current Liabilities

The components of "Other current liabilities" on our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 are presented below:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Reserve for estimated losses on uncompleted contracts (a)
$
20

 
$
63

Retainage payable
37

 
47

Income taxes payable
37

 
55

Restructuring reserve
8

 
30

Taxes payable not based on income
13

 
14

Value-added tax payable
17

 
16

Insurance payable
13

 
14

Dividend payable
11

 
12

Other miscellaneous liabilities
37

 
41

Total other current liabilities
$
193

 
$
292

 
(a)
See Note 2 to our condensed consolidated financial statements for further discussion on significant reserves for estimated losses on uncompleted contracts.

Other Liabilities

Included in "Other liabilities" on our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 is noncurrent deferred rent of $100 million and $103 million, respectively. Also included in "Other liabilities" is a payable to our former parent of $19 million in each of the periods presented. This amount will be paid to our former parent upon receipt of a tax refund from the U.S. Internal Revenue Service.
Business Segment Information
Business Segment Information
Business Segment Information

We are organized into three core business segments and two non-core business segments. Our three core business segments focus on our core strengths in technical services relating to government services, technology and consulting, and engineering and construction. Our two non-core business segments are our Non-strategic Business segment, which includes businesses we intend to exit upon completion of existing contracts because they are no longer a part of our future strategic focus, and "Other," which includes our corporate expenses and general and administrative expenses not allocated to the other business segments.  Our business segments are described below:
Government Services. Our GS business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies in the U.S., U.K. and Australia. As program management integrator, KBR covers the full spectrum of defense, space, aviation and other government programs and missions from research and development; through systems engineering, test and evaluation, systems integration and program management; to operations support, maintenance and field logistics. Our recent acquisitions, as described in Note 3 to our condensed consolidated financial statements, have been combined with our existing U.S. operations within this business segment and operate under the single "KBRwyle" brand.
In October 2017, we entered into a definitive agreement to acquire 100% of the outstanding stock of Sigma Bravo Pty Ltd, a leading provider of high-end, information and communication technology services specializing in mission planning systems and solutions to the Australian Defence Force. The estimated purchase price is $10 million and the transaction is expected to close in the fourth quarter of 2017. The acquisition will become a KBRwyle company and expands our Government Services business in Australia.

Technology & Consulting. Our T&C business segment combines proprietary KBR technologies, knowledge-based services and our three specialist consulting brands, Granherne, Energo and GVA, under a single, customer-facing global hydrocarbons business.  This segment provides licensed technologies, know-how and consulting services across the hydrocarbons value chain, from wellhead to crude refining and through refining and petrochemicals to specialty chemicals production.  In addition to sharing many of the same customers, these brands share the approach of early and continuous customer involvement to deliver an optimal solution to meet the customers' objectives through early planning and scope definition, advanced technologies, and project life-cycle support.
Engineering & Construction. Our E&C business segment provides comprehensive project and program delivery capability globally. Our key capabilities leverage our operational and technical excellence as a global provider of EPC for onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers; offshore oil and gas (shallow-water, deep-water and subsea); floating solutions (FPUs, FPSO, FLNG & FSRU); and maintenance services (via the “Brown & Root Industrial Services” brand).
Non-strategic Business. Our Non-strategic Business segment represents the operations or activities that we intend to exit upon completion of existing contracts. All Non-Strategic Business projects are substantially complete as of September 30, 2017. We continue to finalize project close-out activities and negotiate the settlement of claims and various other matters associated with these projects.
Other. Our Other business segment includes corporate expenses and general and administrative expenses not allocated to the business segments above and would include any future activities that do not individually meet the criteria for segment presentation. 

The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, and operating income (loss) by reporting segment.
Operations by Reportable Segment
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
Dollars in millions
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Government Services
$
582

 
$
401

 
$
1,640

 
$
840

Technology & Consulting
78

 
67

 
236

 
262

Engineering & Construction
370

 
595

 
1,321

 
1,822

Other
—

 
—

 
—

 
—

Subtotal
1,030

 
1,063

 
3,197

 
2,924

Non-strategic Business
4

 
10

 
37

 
154

Total revenues
$
1,034

 
$
1,073

 
$
3,234

 
$
3,078

Gross profit (loss):
 
 
 
 
 
 
 
Government Services
$
39

 
$
32

 
$
113

 
$
94

Technology & Consulting
20

 
17

 
51

 
49

Engineering & Construction
25

 
1

 
113

 
65

Other
—

 
—

 
—

 
—

Subtotal
84

 
50

 
277

 
208

Non-strategic Business
3

 
(86
)
 
—

 
(102
)
Total gross profit (loss)
$
87

 
$
(36
)
 
$
277

 
$
106

Equity in earnings of unconsolidated affiliates:
 
 
 
 
 
 
 
Government Services (a)
$
14

 
$
8

 
$
41

 
$
29

Technology & Consulting
—

 
—

 
—

 
—

Engineering & Construction
9

 
11

 
23

 
52

Other
—

 
—

 
—

 
—

Subtotal
23

 
19

 
64

 
81

Non-strategic Business
—

 
—

 
—

 
—

Total equity in earnings of unconsolidated affiliates
$
23

 
$
19

 
$
64

 
$
81

Segment operating income (loss):
 
 
 
 
 
 
 
Government Services
$
48

 
$
25

 
$
136

 
$
104

Technology & Consulting
19

 
16

 
48

 
44

Engineering & Construction
25

 
(2
)
 
120

 
76

Other
(22
)
 
(21
)
 
(65
)
 
(65
)
Subtotal
70

 
18

 
239

 
159

Non-strategic Business
3

 
(85
)
 
—

 
(98
)
Total segment operating income (loss)
$
73

 
$
(67
)
 
$
239

 
$
61


 

(a) See Note 1 to our condensed consolidated financial statements for information related to a prior period adjustment in the second quarter of 2017.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. With a portfolio of more than one thousand contracts, we sometimes realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any.

Changes in project-related estimates by business segment which significantly impacted operating income were as follows:

Government Services

There were no significant changes in project-related estimates during the three and nine months ended September 30, 2017 within our GS business segment.

During the nine months ended September 30, 2016, revenues, gross profit, and segment operating income included a favorable change in estimate of $33 million as a result of a settlement with the U.S. government regarding reimbursement of previously expensed legal fees associated with the sodium dichromate litigation (see Note 14 to our condensed consolidated financial statements for information related to the settlement with the U.S. government). Additionally, we recognized a $15 million favorable change to gross profit related to the approval of a change order on a road construction project in the Middle East. The change order resulted in an extension of the contract terms and increased the total contract value.

Engineering & Construction

There were no significant changes in project-related estimates during the three and nine months ended September 30, 2017 within our E&C business segment, except for the PEMEX and PEP arbitration settlement (see Note 15 to our condensed consolidated financial statements) which resulted in additional revenues and gross profit of $35 million in the nine months ended September 30, 2017.

During the three and nine months ended September 30, 2016, we recognized $9 million of additional gross profit resulting from a favorable change in estimate resulting from the final settlement of outstanding claims on a legacy project in Canada.

Revenues, gross profit, and segment operating income during the three and nine months ended September 30, 2016 included $3 million and $59 million, respectively, related to a favorable change in estimate resulting from a settlement on close out of an LNG project in Africa.

During the three and nine months ended September 30, 2016, we recognized unfavorable changes in estimates of losses of $40 million and $110 million, respectively, on an EPC ammonia project in the U.S. primarily due to unforeseen costs related to the mechanical failure of a vendor supplied compressor and pumps that occurred during commissioning. The project was transferred to the customer in October 2016. Included in the reserve for estimated losses on uncompleted contracts, which is a component of "Other current liabilities" on our condensed consolidated balance sheets, is $2 million and $3 million as of September 30, 2017 and December 31, 2016, respectively, related to this project.

During 2016, we experienced weather delays as well as construction productivity rates less than previously expected on a downstream EPC project in the U.S. These issues delayed estimated completion of the project until 2018, which resulted in additional estimated costs to complete and recognition of liquidated damages which caused this project to become a loss project in the fourth quarter of 2016. There were no significant changes in estimated losses on this project during the three and nine months ended September 30, 2017. Included in the reserve for estimated losses on uncompleted contracts is $13 million and $35 million as of September 30, 2017 and December 31, 2016, respectively, related to this project. The EPC project was 85% complete as of September 30, 2017. Our estimated loss at completion represents our best estimate based on current information. Actual results could differ from the estimates we have used to account for this project as of September 30, 2017.

Non-strategic Business

There were no significant changes in project-related estimates during the three and nine months ended September 30, 2017 within our Non-strategic Business segment.

During the three and nine months ended September 30, 2016, we recognized unfavorable changes in estimates of losses on a power project of $86 million and $112 million, respectively, primarily due to increases in subcontractor costs to complete the project as a result of poor productivity from subcontractors. The project has completed performance testing and in April 2017, care, custody and control of the project were transferred to the customer. Included in the reserve for estimated losses on uncompleted contracts is $2 million and $14 million as of September 30, 2017 and December 31, 2016, respectively, related to this project.
Acquisitions, Dispositions and Other Transactions Acquisitions, Dispositions and Other Transactions
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
Acquisitions, Dispositions and Other Transactions

Wyle and Honeywell Technology Solutions Inc. Acquisitions

During the third quarter of 2016, we acquired 100% of the equity interests of Wyle (the "Wyle acquisition") and 100% of the outstanding common stock of HTSI (the "HTSI acquisition") and together with the Wyle acquisition, the "Wyle and HTSI acquisitions"). These acquisitions are reported within our GS business segment. The aggregate consideration paid for these acquisitions was $900 million, which was funded with $700 million in advances on our Credit Agreement and available cash on-hand. See Note 12 to our condensed consolidated financial statements for information related to our Credit Agreement.

During the third quarter of 2017, we completed the purchase accounting for the Wyle and HTSI acquisitions. In the same period, we made adjustments to reflect the final working capital settlement and the finalization of various immaterial contingencies for the Wyle and HTSI acquisitions. The net impacts of the Wyle adjustments were increases to liabilities and goodwill of $1 million. The net impacts of the HTSI adjustments were increases to goodwill, other assets, and liabilities of $2 million, $2 million and $4 million, respectively.

The following table summarizes the consideration paid for these acquisitions and the fair value of the assets acquired and liabilities assumed as of the respective acquisition dates.
Dollars in millions
Wyle
 
HTSI
Fair value of total consideration transferred
$
623

 
$
280

Recognized amounts of identifiable assets acquired and liabilities assumed:
 
 
 
Cash
10

 
—

Trade receivables, net
47

 
29

CIE
98

 
93

Prepaids and other current assets
4

 
7

Total current assets
159

 
129

Property, plant and equipment, net
10

 
6

Intangible assets
141

 
70

Deferred income taxes
—

 
8

Total assets
310

 
213

Accounts payable
61

 
23

BIE
—

 
10

Other current liabilities
47

 
33

Total current liabilities
108

 
66

Deferred income taxes
51

 
—

Other liabilities
12

 
—

Total liabilities
171

 
66

Goodwill
$
484

 
$
133



For the three months ended September 30, 2017, the acquired Wyle and HTSI businesses contributed $179 million and $136 million of revenues and $15 million and $5 million of gross profit, respectively. For the nine months ended September 30, 2017, Wyle and HTSI contributed $523 million and $401 million of revenues and $40 million and $23 million of gross profit, respectively.

The following supplemental pro forma condensed consolidated results of operations assume that Wyle and HTSI had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of Wyle and HTSI and has been adjusted to give effect to pro forma adjustments that are directly attributable to the transaction. The pro forma amounts reflect certain adjustments to amortization expense and interest expense associated with the portion of the purchase price funded by $700 million in advances on our Credit Agreement and also reflect adjustments to 2016 results to exclude acquisition related costs as they are nonrecurring and are directly attributable to the transaction. The supplemental pro forma financial information presented below does not include any anticipated cost savings or expected realization of other synergies associated with the transactions. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisitions occurred on January 1, 2015, nor is it indicative of future results of operations.
Dollars in millions, except per share data
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
(Unaudited)
 
(Unaudited)
Revenue
$
1,199

 
$
3,939

Net income (loss) attributable to KBR
(54
)
 
54

Diluted earnings per share
$
(0.38
)
 
$
0.38



Chematur Subsidiaries Acquisition

On January 11, 2016, we acquired 100% of the outstanding common stock of three subsidiaries of Connell Chemical Industry LLC (through its subsidiary, Chematur Technologies AB). The aggregate consideration paid for the acquisition was $25 million, less $2 million of acquired cash and other adjustments resulting in net cash consideration of $23 million. We recognized goodwill of $24 million arising from the acquisition. This acquisition and its subsequent operations are reported within our T&C business segment.

Investments

UKMFTS project. In February 2016, we executed agreements to establish a new joint venture between KBR and Elbit Systems within our GS business segment, named Affinity. Affinity was awarded a service contract by a third party to procure, operate and maintain aircraft, and aircraft-related assets over an 18-year contract period in support of the UKMFTS project. The contract has been determined to contain a leasing arrangement and various other services between the joint venture and the customer. KBR owns a 50% interest in Affinity, which is accounted for under the equity method of accounting. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provide procurement, operations and management support services under subcontracts with Affinity. During the first quarter of 2016, under the terms of the subordinated debt agreement between the partners and Affinity, we advanced our proportionate share, or $14 million, to meet initial working capital needs of the venture. We expect repayment on the advance and the associated interest over the term of the project. This amount is included in "Equity in and advances to unconsolidated affiliates" in our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016, and in "Payments from (advances to) unconsolidated affiliates, net" in our consolidated statement of cash flows for the nine months ended September 30, 2016.

Cash and Equivalents (Notes)
Cash and Cash Equivalents
Cash and Equivalents

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and equivalents include cash balances held by our wholly owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture cash balances are limited to joint venture activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors of the respective joint ventures. We expect to use joint venture cash for project costs and distributions of earnings related to joint venture operations. However, some of the earnings distributions may be paid to other KBR entities where the cash can be used for general corporate needs.

The components of our cash and equivalents balance are as follows:
 
September 30, 2017
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
134

 
$
144

 
$
278

Short-term investments (c)
97

 
68

 
165

Cash and equivalents held in joint ventures
65

 
3

 
68

Total
$
296

 
$
215

 
$
511


 
December 31, 2016
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
163

 
$
242

 
$
405

Short-term investments (c)
68

 
7

 
75

Cash and equivalents held in joint ventures
50

 
6

 
56

Total
$
281

 
$
255

 
$
536

 
(a)
Includes deposits held in non-U.S. operating accounts.
(b)
Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country.
(c)
Includes time deposits, money market funds, and other highly liquid short-term investments.
Accounts Receivable (Notes)
Accounts Receivable
Accounts Receivable
    
The components of our accounts receivable, net of allowance for doubtful accounts balance, are as follows:
 
September 30, 2017
Dollars in millions
Retainage
 
Trade & Other
 
Total
Government Services
$
6

 
$
179

 
$
185

Technology & Consulting
—

 
53

 
53

Engineering & Construction
49

 
209

 
258

Other
—

 
—

 
—

Subtotal
55

 
441

 
496

Non-strategic Business
4

 
1

 
5

Total
$
59

 
$
442

 
$
501


 
December 31, 2016
Dollars in millions
Retainage
 
Trade & Other
 
Total
Government Services
$
6

 
$
190

 
$
196

Technology & Consulting
—

 
52

 
52

Engineering & Construction
53

 
276

 
329

Other
—

 
3

 
3

Subtotal
59

 
521

 
580

Non-strategic Business
5

 
7

 
12

Total
$
64

 
$
528

 
$
592

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Our CIE balances by business segment are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Government Services
$
282

 
$
271

Technology & Consulting
54

 
30

Engineering & Construction
76

 
115

Subtotal
412

 
416

Non-strategic Business
—

 
—

Total
$
412

 
$
416


Our BIE balances by business segment are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Government Services
$
82

 
$
76

Technology & Consulting
44

 
61

Engineering & Construction
226

 
388

Subtotal
352

 
525

Non-strategic Business
8

 
27

Total
$
360

 
$
552

Unapproved Change Orders and Claims (Notes)
Unapproved Claims and Change Orders
Unapproved Change Orders, Claims and Estimated Recoveries of Claims Against Suppliers and Subcontractors

The amounts of unapproved change orders, claims and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows:
Dollars in millions
2017
 
2016
Amounts included in project estimates-at-completion at January 1,
$
294

 
$
104

Additions
483

 
33

Approved change orders
(4
)
 
(45
)
Amounts included in project estimates-at-completion at September 30,
$
773

 
$
92

Amounts recognized on a percentage-of-completion basis at September 30,
$
687

 
$
77



As of September 30, 2017, most of the change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors above relate to our proportionate share of unapproved change orders and claims associated with our 30% ownership interest in the Ichthys JV, which has contracted to perform the engineering, procurement, supply, construction and commissioning of onshore LNG facilities for a client in Darwin, Australia (Ichthys LNG Project). The contract between the Ichthys JV and its client is a hybrid contract containing both cost-reimbursable and fixed-price (including unit-rate) scopes. Our proportionate share of unapproved change orders, claims and estimated recoveries of claims against suppliers and subcontractors on the project increased by $201 million and $477 million for the three and nine months ended September 30, 2017, respectively.
These additional change orders, customer claims, estimated recoveries of claims against suppliers and subcontractors and additional costs have resulted in a reduction to our percentage of completion progress for the nine months ended September 30, 2017.
Further, there are additional claims we believe that we or our joint ventures are entitled to recover from clients which have been excluded from estimated revenues and profit at completion as appropriate under U.S. GAAP.
It is anticipated that these commercial matters may not be resolved in the near term. Our current estimates for the above unapproved change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors may prove inaccurate and could result in significant changes to the estimated revenue, costs and profits at completion on the underlying projects. Significant contingencies related to the Ichthys JV are discussed further in Note 15 to our condensed consolidated financial statements.
Liquidated damages

Some of our engineering and construction contracts have schedule dates and performance obligations that, if not met, could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract. Any accrued liquidated damages are recognized as a reduction in revenues in our condensed consolidated statements of operations.

It is possible that liquidated damages that have not been included in our estimates at completion in determining project income related to several projects totaling $10 million and $8 million at September 30, 2017 and December 31, 2016, respectively, could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance and other mitigating factors, we have concluded these liquidated damages are not probable.
Claims and Accounts Receivable (Notes)
Claims Receivable
Claims and Accounts Receivable

Our claims and accounts receivable balance not expected to be collected within the next 12 months was $100 million and $131 million as of September 30, 2017 and December 31, 2016, respectively. Claims and accounts receivable primarily reflects claims filed with the U.S. government related to payments not yet received for costs incurred under various U.S. government contracts within our GS business segment. These claims relate to disputed costs or contracts where our costs have exceeded the U.S. government's funded value on the task order.  Included in the amount is $83 million as of September 30, 2017 and December 31, 2016 related to Form 1s issued by the U.S. government questioning or objecting to costs billed to them. See Note 14 of our condensed consolidated financial statements for additional discussions. The amount also includes $17 million and $48 million as of September 30, 2017 and December 31, 2016, respectively, related to contracts where our costs have exceeded the U.S. government's funded values on the underlying task orders or task orders where the U.S. government has not authorized us to bill. We believe the remaining disputed costs will be resolved in our favor, at which time the U.S. government will be required to obligate funds from appropriations for the year in which resolution occurs.
Asset Impairment and Restructuring (Notes)
Restructuring, Impairment, and Other Activities Disclosure [Text Block]
Restructuring

In connection with our long-term strategic reorganization, we announced that beginning in the fourth quarter of 2014 we would undertake a restructuring, which would include actions such as reducing the amount of real estate we utilized and significantly reducing our workforce. There were additional actions undertaken in 2015 and 2016, including staff reductions to support current business levels. The employees affected by these reductions are eligible for separation benefits upon their expected termination dates which have occurred or are expected to occur through 2017. The table below provides a rollforward of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "Other current liabilities" on our condensed consolidated balance sheets.
Dollars in millions
Severance Accrual
Balance at December 31, 2016
$
8

Charges
—

Payments
(6
)
Balance at September 30, 2017
$
2

 
 
Balance at December 31, 2015
$
19

Charges
15

Payments
(21
)
Balance at September 30, 2016
$
13

Pension Plans Pension Plan (Notes)
Pension and Other Postretirement Benefits Disclosure
Pension Plans

The components of net periodic benefit cost related to pension benefits for the three and nine months ended September 30, 2017 and 2016 were as follows:
 
Three Months Ended September 30,
 
2017
 
2016
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
1

 
$
—

 
$
—

Interest cost
1

 
13

 
1

 
15

Expected return on plan assets
—

 
(20
)
 
(1
)
 
(21
)
Recognized actuarial loss
—

 
6

 
—

 
7

Net periodic benefit cost
$
1

 
$
—

 
$
—

 
$
1

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
2017
 
2016
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
1

 
$
—

 
$
1

Interest cost
2

 
39

 
2

 
48

Expected return on plan assets
(2
)
 
(57
)
 
(2
)
 
(67
)
Recognized actuarial loss
1

 
21

 
1

 
21

Net periodic benefit cost
$
1

 
$
4

 
$
1

 
$
3


For the nine months ended September 30, 2017, we have contributed approximately $28 million of the $37 million we expect to contribute to our plans in 2017.
Equity Method Investments And Variable Interest Entities
Equity Method Investments And Variable Interest Entities
Equity Method Investments and Variable Interest Entities

We conduct some of our operations through joint ventures, which operate through partnership, corporation, undivided interest and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are VIEs.

The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Beginning balance
$
369

 
$
281

Equity in earnings of unconsolidated affiliates
64

 
91

Distribution of earnings of unconsolidated affiliates (a)
(41
)
 
(56
)
Advances (receipts)
(6
)
 
1

Investments (b)
—

 
61

Foreign currency translation adjustments
12

 
(8
)
Other
2

 
(8
)
Balance before reclassification
$
400

 
$
362

Reclassification of excess distributions (a)
6

 
12

Recognition of excess distributions (a)
(5
)
 
(5
)
Ending balance
$
401

 
$
369


 
(a)
We received cash dividends in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as "Deferred income from unconsolidated affiliates" on our condensed consolidated balance sheets and recognize these dividends as earnings are generated by the investment.
(b)
In 2016, investments included a $56 million investment in the Brown & Root Industrial Services joint venture and a $5 million investment in the EPIC joint venture.

Unconsolidated Variable Interest Entities

For the VIEs in which we participate, our maximum exposure to loss is generally comprised of our equity investment in the VIE, any amounts owed to us for services we may have provided to the VIE and our obligation to fund our proportionate share of any future losses incurred. In addition:

•
The Affinity, Aspire Defence and U.K. Road joint venture projects are further exposed to the risks of construction and insurance losses, if any, on a joint and several basis. Any losses may be limited to the extent that these joint ventures become insolvent as the joint venture customer does not have recourse against the joint venture partners.

•
The Ichthys LNG joint venture project is further exposed to certain losses to the extent our joint venture partners are unable to meet their obligations, as we have joint and several liability to the customer. See Note 15 to our condensed consolidated financial statements for further discussion regarding contingencies related to the Ichthys JV.

The maximum exposure to loss is computed as our “Equity in and advances to unconsolidated affiliates” because our projections do not indicate losses related to these projects and project-level debt is nonrecourse to us. If a project becomes a loss project in the future, our maximum exposure to loss could increase to the extent we are required to fund those losses through capital contributions resulting from guarantees or other financial commitments. See Note 15 to our condensed consolidated financial statements for further discussion of our potential funding commitments to the Ichthys JV.





The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balance sheets and our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.

 
September 30, 2017
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity (U.K. MFTS project)
$
25

 
$
3

 
$
25

Aspire Defence project
$
15

 
$
114

 
$
15

Ichthys LNG Project
$
133

 
$
18

 
$
133

U.K. Road projects
$
35

 
$
10

 
$
35

EBIC Ammonia plant (65% interest)
$
38

 
$
2

 
$
25

 
 
December 31, 2016
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity (U.K. MFTS project)
$
12

 
$
3

 
$
12

Aspire Defence project
$
14

 
$
107

 
$
14

Ichthys LNG Project
$
124

 
$
33

 
$
124

U.K. Road projects
$
30

 
$
9

 
$
30

EBIC Ammonia plant (65% interest)
$
34

 
$
2

 
$
22



Related Party Transactions

We often provide engineering, construction management and other subcontractor services to our joint ventures and our revenues include amounts related to these services. For the nine months ended September 30, 2017 and 2016, our revenues included $85 million and $179 million, respectively, related to the services we provided to our joint ventures, primarily the Ichthys JV within our E&C business segment. Under the terms of an alliance agreement with our EPIC joint venture, EPIC provides certain pipe fabrication services to KBR. For the nine months ended September 30, 2017 and 2016, EPIC provided $3 million and $22 million, respectively, of services to KBR under the agreement.

Under the terms of our TSA with Brown & Root Industrial Services joint venture, we collect cash from customers and make payments to vendors and employees on behalf of the joint venture. For the nine months ended September 30, 2017 and 2016, we incurred approximately $4 million and $13 million, respectively, of reimbursable costs under the TSA.

Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of September 30, 2017 and December 31, 2016 are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Accounts receivable, net of allowance for doubtful accounts (a)
$
10

 
$
22

Costs and estimated earnings in excess of billings on uncompleted contracts (b)
$
4

 
$
1

Billings in excess of costs and estimated earnings on uncompleted contracts (b)
$
22

 
$
41

 
(a)
Includes an $5 million and $11 million net receivable from the Brown & Root Industrial Services joint venture at September 30, 2017 and December 31, 2016, respectively.
(b)
Reflects CIE and BIE primarily related to joint ventures within our E&C business segment as discussed above.

Consolidated Variable Interest Entities

We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary:
Dollars in millions
September 30, 2017
Total assets
 
Total liabilities
Gorgon LNG project
$
20

 
$
55

Escravos Gas-to-Liquids project
$
8

 
$
16

Fasttrax Limited project
$
61

 
$
51

 

Dollars in millions
December 31, 2016
Total assets
 
Total liabilities
Gorgon LNG project
$
28

 
$
60

Escravos Gas-to-Liquids project
$
11

 
$
22

Fasttrax Limited project
$
56

 
$
50

Debt And Other Credit Facilities
Debt and Other Credit Facilities
Debt and Other Credit Facilities

Credit Agreement

On September 25, 2015, we entered into a $1 billion, unsecured revolving credit agreement (the "Credit Agreement") with a syndicate of banks. The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries, matures in September 2020 and is available for cash borrowings and the issuance of letters of credit related to general corporate needs. Subject to certain conditions, we may request (i) that the aggregate commitments under the Credit Agreement be increased by up to an additional $500 million, and (ii) that the maturity date of the Credit Agreement be extended by two additional one-year terms.

Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i) the LIBOR plus an applicable margin of 1.375% to 1.75%, or (ii) a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a) reference bank’s publicly announced base rate, (b) the Federal Funds Rate plus 0.5%, or (c) LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company’s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%, per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. As of September 30, 2017, there were $35 million in letters of credit outstanding. As a result of the Wyle and HTSI acquisitions discussed in Note 3 to our condensed consolidated financial statements, we funded $700 million of acquisition consideration with borrowings under our Credit Agreement, of which $470 million remains outstanding as of September 30, 2017. Interest expense on these borrowings for the three and nine months ended September 30, 2017 was $4 million and $11 million, respectively.

The Credit Agreement contains customary covenants as defined by the agreement which include financial covenants requiring maintenance of a ratio of consolidated debt to a rolling four-quarter consolidated EBITDA not greater than 3.5 to 1 and a minimum consolidated net worth of $1.2 billion plus 50% of consolidated net income for each quarter beginning September 30, 2015 and 100% of any increase in shareholders’ equity attributable to the sale of equity interests, but excluding any adjustments in shareholders' equity attributable to changes in foreign currency translation adjustments. In December 2016, we obtained an amendment to the debt to EBITDA financial covenant to eliminate the impact, for certain periods and subject to certain dollar limits, of previously recorded project losses attributed to an EPC ammonia project and a power project in the U.S. The amendment also amends the maximum ratio of consolidated debt to consolidated EBITDA to 3.25 to 1 effective for periods after December 31, 2017. As of September 30, 2017, we were in compliance with our financial covenants.

The Credit Agreement contains a number of other covenants restricting, among other things, our ability to incur additional liens and indebtedness, enter into asset sales, repurchase our equity shares and make certain types of investments. Our subsidiaries are restricted from incurring indebtedness, except if such indebtedness relates to purchase money obligations, capitalized leases, refinancing or renewals secured by liens upon or in property acquired, constructed or improved in an aggregate principal amount not to exceed $200 million at any time outstanding. Additionally, our subsidiaries may incur unsecured indebtedness not to exceed $200 million in aggregate outstanding principal amount at any time. We are also permitted to repurchase our equity shares, provided that no such repurchases shall be made from proceeds borrowed under the Credit Agreement, and that the aggregate purchase price and dividends paid after September 25, 2015, does not exceed the Distribution Cap of $1.1 billion. As of September 30, 2017, the remaining availability under the Distribution Cap was approximately $968 million.

Nonrecourse Project Debt

Fasttrax Limited, a joint venture in which we indirectly own a 50% equity interest with an unrelated partner, was awarded a concession contract in 2001 with the U.K. MoD to provide a Heavy Equipment Transporter Service to the British Army. Under the terms of the arrangement, Fasttrax Limited operates and maintains 91 HETs for a term of 22 years. The purchase of the HETs by the joint venture was financed through two series of bonds secured by the assets of Fasttrax Limited and a bridge loan totaling approximately £84.9 million (approximately $120 million at the exchange rate on the date of the transaction). The secured bonds are an obligation of Fasttrax Limited and are not a debt obligation of KBR as they are nonrecourse to the joint venture partners. Accordingly, in the event of a default on the notes, the lenders may only look to the assets of Fasttrax Limited for repayment. The bridge loan of approximately £12.2 million (approximately $17 million at the exchange rate on the date of the transaction) was replaced when we and the other joint venture partners funded the joint venture with equity and subordinated notes in 2005.

The secured bonds were issued in two classes consisting of Class A 3.5% Index Linked Bonds in the amount of £56 million (approximately $79 million at the exchange rate on the date of the transaction) and Class B 5.9% Fixed Rate Bonds in the amount of £16.7 million (approximately $24 million at the exchange rate on the date of the transaction).  Semi-annual payments on both classes of bonds commenced in March 2005 and will continue through maturity in 2021.  The subordinated notes payable to each of the partners initially bear interest at 11.25% increasing to 16% over the term of the notes until maturity in 2025.  Semi-annual payments on the subordinated notes commenced in March 2006. For financial reporting purposes, the portion of the subordinated notes payable to us is eliminated in consolidation and consequently, only our partner's portion of the subordinated notes appears in the condensed consolidated financial statements.
Income Taxes
Income Tax Disclosure
Income Taxes

The effective tax rate was approximately 24% and 23% for the three and nine months ended September 30, 2017, respectively. The effective tax rate was approximately 17% and 43% for the three and nine months ended September 30, 2016, respectively. As a result of the tax effect of the PEMEX settlement in 2017, we reversed a previously recognized deferred tax liability, recorded a current income tax payable and paid the associated income tax. As a result, the net impact to consolidated income tax expense related to the PEMEX settlement was not material.

Our estimated annual effective tax rate for 2017 is 23%, which is lower than the U.S. statutory rate of 35% primarily due to non-controlling interests and equity earnings, which are reflected net of tax, as well as the rate differential on our foreign earnings. Our estimated annual effective rate is subject to change based on the actual jurisdictions where our 2017 earnings are generated.

The valuation allowance for deferred tax assets as of September 30, 2017 and December 31, 2016 was $512 million and $542 million, respectively. The change in the valuation allowance was ($11) million and $5 million for the three months ended September 30, 2017 and 2016, respectively, and ($30) million and ($1) million for the nine months ended September 30, 2017 and 2016, respectively. The decrease in valuation allowance is primarily driven by our ability to utilize previously reserved foreign tax credits in 2017 as a result of forecasted U.S. taxable income primarily from foreign sources, which may not be recurring. The valuation allowance is primarily related to foreign tax credit carryforwards, foreign and state net operating loss carryforwards and other deferred tax assets that, in the judgment of management, are not more-likely-than-not to be realized, due to the sourcing of U.S. taxable income, forecasted income in the appropriate jurisdictions, as well as the timing of temporary difference reversals in the respective carryforward periods.

The reserve for uncertain tax positions included in "Other liabilities" and "Deferred income taxes" on our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 was $263 million and $261 million, respectively.
U.S. Government Matters
U.S. Government Matters
U.S. Government Matters

We provide services to various U.S. governmental agencies, which include the U.S. DoD and the Department of State. We may have disagreements or experience performance issues on our U.S. government contracts. When performance issues arise under any of these contracts, the U.S. government retains the right to pursue various remedies, including challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government. The negotiation, administration and settlement of our contracts are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA, and the DCMA is responsible for the administration of the majority of our contracts. The scope of these audits include, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and CAS, compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. Based on the information received to date, we do not believe the completed or ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows.

Legacy U.S. Government Matters

Between 2002 and 2011, we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We continue to support the U.S. government around the world under the LogCAP IV and other contracts. We have been in the process of closeout of the LogCAP III contract since 2011, and we expect the closeout process to continue through at least 2018. As a result of our work under LogCAP III, there are claims and disputes pending between us and the U.S. government which need to be resolved in order to close the contract. The closeout process includes resolving objections raised by the U.S. government through a billing dispute process referred to as Form 1s and MFRs. We continue to work with the U.S. government to resolve these issues and are engaged in efforts to reach mutually acceptable resolution of these outstanding matters. However, for certain of these matters, we have filed claims with the ASBCA or the COFC. We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing additional labor,
vendor resolution and litigation costs as we resolve the open matters. At this time, we cannot determine the timing or net amounts to be collected or paid to close out these contracts.

Form 1s

The U.S. government has issued Form 1s questioning or objecting to costs we billed to them primarily related to (1) our use of private security and our provision of containerized housing under the LogCAP III contract discussed above and (2) our provision of emergency construction services primarily to U.S. government facilities damaged by Hurricanes Katrina and Wilma, under our CONCAP III contract with the U.S. Navy. As a consequence of the issuance of the Form 1s, the U.S. government has withheld payment to us on outstanding invoices, pending resolution of these matters.

The U.S. government has issued and has outstanding Form 1s questioning $171 million of billed costs as of September 30, 2017. They had previously paid us $88 million of the questioned costs related to our services on these contracts and the remaining balance of $83 million at September 30, 2017 is included in “Claims and accounts receivable" on our condensed consolidated balance sheets. In addition, we have withheld $26 million from our subcontractors at September 30, 2017 related to these questioned costs.

While we continue to believe that the amounts we have invoiced the U.S. government are in compliance with our contract terms and that recovery is probable, we also continue to evaluate our ability to recover these amounts as new information becomes known. As is common in the industry, negotiating and resolving these matters is often an involved and lengthy process, which sometimes necessitates the filing of claims or other legal action as discussed above. Concurrent with our continued negotiations with the U.S. government, we await the rulings on the filed claims. We are unable to predict when the rulings will be issued or when the matters will be settled or resolved with the U.S. government.

As a result of the Form 1s, and claims discussed above as well as open audits, we have accrued a reserve for unallowable costs at September 30, 2017 and December 31, 2016 of $56 million and $64 million, respectively, as a reduction to "Claims and accounts receivable" and in "Other liabilities" on our condensed consolidated balance sheets.

Private Security Contractors. Starting in February 2007, we received a series of Form 1s from the DCAA informing us of the U.S. government's intent to deny reimbursement to us under the LogCAP III contract for amounts related to the use of PSCs by KBR and a subcontractor in connection with its work for KBR providing dining facility services in Iraq between 2003 and 2006. The government challenged $56 million in billings. The government had previously paid $11 million and has withheld payments of $45 million, which as of September 30, 2017 we have recorded as due from the government related to this matter in "Claims and accounts receivable" on our condensed consolidated balance sheets.

On June 16, 2014, we received a decision from the ASBCA which agreed with KBR's position (i) that the LogCAP III contract did not prohibit the use of PSCs to provide force protection to KBR or subcontractor personnel, (ii) that there was a need for force protection and (iii) that the costs were reasonable. The ASBCA also found that the Army breached its obligation to provide force protection. Accordingly, we believe that we are entitled to reimbursement by the Army for the amounts charged by our subcontractors, even if they incurred costs for PSCs. The Army appealed the decision.

On June 12, 2017, we received a second ruling from the ASBCA that we are entitled to recover the withheld costs in the approximate amount of $45 million plus interest related to the use of PSCs. The Army filed a notice of appeal on October 12, 2017. At this time, we believe the likelihood that we will incur a loss related to this matter is remote, and therefore we have not accrued any loss provisions related to this matter.

Investigations, Qui Tams and Litigation

The following matters relate to ongoing litigation or federal investigations involving U.S. government contracts. Many of these matters involve allegations of violations of the FCA, which prohibits in general terms fraudulent billings to the U.S. government. Suits brought by private individuals are called "qui tams." We believe the costs of litigation and any damages that may be awarded in the FKTC and Burn Pit matters described below are billable under the LogCAP III contract and that any such costs or damages awarded in the Sodium Dichromate matter are billable under the RIO contract and a related indemnity agreement with the U.S. government. All costs billed under LogCAP III or RIO are subject to audit by the DCAA for reasonableness.

First Kuwaiti Trading Company arbitration. In April 2008, FKTC, one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association all its claims under various LogCAP III subcontracts. After complete hearings on all claims, the arbitration panel awarded FKTC $17 million plus interest for claims involving damages on lost or unreturned vehicles. In addition, we determined that we owe FKTC $32 million in connection with
other subcontracts. We paid FKTC $19 million and will pay $4 million on pay-when-paid terms in the contract. We have accrued amounts we believe are payable to FKTC in "Accounts payable" and "Other current liabilities" on our condensed consolidated balance sheets. The remaining $26 million owed to FKTC under the contract has not been billed to the government and we will not do so until the related claims and disputes between KBR and the government over the FKTC living container contract are resolved (see DOJ False Claims Act complaint - FKTC Containers below). At this time, we believe the likelihood that we would incur a loss related to this matter in excess of the amounts we have accrued is remote.

Burn Pit litigation. Since November 2008, KBR has been served with more than 60 lawsuits in various states alleging exposure to toxic materials resulting from the operation of burn pits in Iraq or Afghanistan in connection with services provided by KBR under the LogCAP III contract. These suits were consolidated in U.S. Federal District Court in Greenbelt, Maryland. The plaintiffs claimed unspecified damages. On January 13, 2017, KBR filed a renewed motion to dismiss and for summary judgment.

On July 19, 2017, the trial court issued its ruling granting KBR’s motions to dismiss on jurisdictional ground and for summary judgment.  In lengthy fact findings, the Court concluded that the military made all the relevant decisions about the use, location and operation of burn pits.  The plaintiffs filed a notice of appeal, and the cases are now pending before the U.S. Court of Appeals for the Fourth Circuit. Plaintiffs filed their opening brief on October 16, 2017. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2017, no amounts have been accrued.

Sodium Dichromate litigation. From December 2008 through September 2009, five cases were filed in various Federal District Courts against KBR by national guardsmen and other military personnel alleging exposure to sodium dichromate at the Qarmat Ali Water Treatment Plant in Iraq in 2003, which were consolidated into the case pending in the U.S. District Court for the Southern District of Texas. The Texas case was then dismissed by the court on the merits on multiple grounds including the conclusion that no one was injured. In March 2017, the Fifth Circuit Court of Appeals upheld the trial court's dismissal of plaintiffs' claims on summary judgment. The plaintiffs' request for the Texas Supreme Court to hear arguments over the application of certain laws and the application of Texas Supreme Court authority to the plaintiffs' claims was denied in May 2017. Plaintiffs' time to seek review by the U.S. Supreme Court has now passed. Our request for payment of court costs remains pending before the trial court in Houston. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2017, no amounts have been accrued.

Qui tams. We have several qui tam cases pending, one of which has been joined by the U.S. government (see DOJ False Claims Act complaint - Iraq Subcontractor below). At this time, we believe the likelihood that we would incur a loss in the qui tams the U.S. government has not joined is remote and as of September 30, 2017, no amounts have been accrued. Costs incurred in defending the qui tams cannot be billed to the U.S. government until those matters are successfully resolved in our favor. If successfully resolved, we can bill 80% of the costs to the U.S. government under federal regulations. As of September 30, 2017, we have incurred and expensed $11 million in legal costs incurred in defending ourselves in qui tams. There are two active cases as discussed below:

Barko qui tam. Relator Harry Barko, a KBR subcontracts administrator in Iraq for a year in 2004/2005, filed a qui tam lawsuit in June 2005 in the U.S. District Court for the District of Columbia, alleging violations of the FCA by KBR and its subcontractors Daoud & Partners and Eamar Combined for General Trading and Contracting. The DOJ investigated Barko's allegations and elected not to intervene. The claim was unsealed in March of 2009. On March 14, 2017, the Court granted KBR's motion for summary judgment and dismissed the case. The plaintiff has filed a notice of appeal and oral argument on the appeal has been scheduled for December 1, 2017.

Howard qui tam. In March 2011, Geoffrey Howard and Zella Hemphill filed a complaint in the U.S. District Court for the Central District of Illinois alleging that KBR mischarged the U.S. government $628 million for unnecessary materials and equipment. In October 2014, the DOJ declined to intervene and the case was partially unsealed. Discovery is ongoing in this case and is expected to continue into 2019.

DOJ False Claims Act complaint - FKTC Containers. In November 2012, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois against KBR, FKTC and others, related to our settlement of two requests for equitable adjustment submitted by our subcontractor, FKTC, in connection with FKTC's provision of living trailers for the bed down mission in Iraq in 2003-2004. The DOJ alleges that KBR submitted false claims to the U.S. government for reimbursement of the costs KBR incurred in settling the requests for equitable adjustment, which the U.S. government alleges were inflated, unverified, not subject to an adequate price analysis and had been contractually assumed by FKTC. Our contractual dispute with the Army over this settlement has been ongoing since 2005. In March 2014, KBR's motion to dismiss was denied and in September 2014, the District Court granted FKTC's motion to dismiss for lack of personal jurisdiction. The case is currently in discovery, which we
expect to be completed by June of 2018. At this time, we believe the likelihood that we would incur a loss related to this matter is remote. As of September 30, 2017, no amounts have been accrued.

KBR Contract Claim on FKTC containers. KBR previously filed a claim before the ASBCA to recover the costs paid to FKTC to settle its requests for equitable adjustment. The DCMA had disallowed the majority of those costs. Those contract claims were stayed in 2013 at the request of the DOJ so that they could pursue the FCA case referenced above. Those claims were reinstated in 2016. We tried our contract appeal in September 2017. Briefing and post trial hearings will run through at least December 2017. We hope to receive a ruling by July 2018.

DOJ False Claims Act complaint - Iraq Subcontractor. In January 2014, the DOJ filed a complaint in the U.S. District Court for the Central District of Illinois against KBR and two former KBR subcontractors, including FKTC, alleging that three former KBR employees were offered and accepted kickbacks from these subcontractors in exchange for favorable treatment in the award and performance of subcontracts to be awarded during the course of KBR's performance of the LogCAP III contract in Iraq. The complaint alleges that as a result of the kickbacks, KBR submitted invoices with inflated or unjustified subcontract prices, resulting in alleged violations of the FCA and the Anti-Kickback Act. The DOJ's investigation dates back to 2004. We self-reported most of the violations and tendered credits to the U.S. government as appropriate. On May 22, 2014, FKTC filed a motion to dismiss, which the U.S. government opposed. Following the submission of our answer in April 2014, the U.S. government was granted a Motion to Strike certain affirmative defenses in March 2015. We do not believe this limits KBR's ability to fully defend all allegations in this matter. As of September 30, 2017 and December 31, 2016, we have accrued our best estimate of probable loss related to an unfavorable settlement of this matter in "Other liabilities" on our condensed consolidated balance sheets. At this time, we believe the likelihood that we would incur a loss related to this matter in excess of the amounts we have accrued is remote. Discovery in the case is set to close in March 2018 with the trial set to begin on September 24, 2018.
Other Commitments And Contingencies
Commitments and Contingencies Disclosure [Text Block]
Other Commitments and Contingencies

Litigation and regulatory matters related to the Company’s restatement of its 2013 annual financial statements
In re KBR, Inc. Securities Litigation. Lead plaintiffs, Arkansas Public Employees Retirement System and IBEW Local 58/NECA Funds, sought class action status on behalf of our shareholders, alleging violations of Sections 10(b) and 20(a) of the Exchange Act against the Company, our former chief executive officer, our previous two former chief financial officers, and our former chief accounting officer, arising out of the restatement of our 2013 annual financial statements, and seek undisclosed damages. We reached an agreement to settle this case as of January 11, 2017 and accrued the proposed settlement amount as of December 31, 2016 in "Other current liabilities" on our consolidated balance sheets, net of insurance proceeds, which did not have a material impact on our financial statements. On August 24, 2017, the Court granted final approval of the settlement and terminated the case.

Butorin v. Blount et al, is a May 2014 shareholder derivative complaint pending in the U.S. District Court of Delaware and filed on behalf of the Company naming certain current and former members of the Company's board of directors as defendants and the Company as a nominal defendant. The complaint alleges that the named directors breached their fiduciary duties by permitting the Company's internal controls to be inadequate. KBR has filed a Motion to Dismiss, to which the derivative plaintiff has responded. At this time, we are not yet able to determine the likelihood of loss, if any, arising from this matter.
We have also received requests for information and a subpoena for documents from the SEC regarding the restatement of our 2013 annual financial statements. We have been and intend to continue cooperating with the SEC. We have accrued our estimate of a potential settlement in "Other current liabilities" on our consolidated balance sheets which did not have a material impact on our financial statements.

PEMEX and PEP arbitration

In 2004, we filed for arbitration with the ICC claiming recovery of damages against PEP, a subsidiary of PEMEX, the Mexican national oil company, related to a 1997 contract between PEP and our subsidiary, Commisa, and PEP subsequently counterclaimed. The project, known as EPC 1, required Commisa to build offshore platforms and treatment and reinjection facilities in Mexico and encountered significant schedule delays and increased costs due to problems with design work, late delivery and defects in equipment, increases in scope and other changes. In 2009, the ICC arbitration panel awarded us a total of approximately $351 million including legal and administrative recovery fees as well as interest and PEP was awarded approximately $6 million on counterclaims, plus interest on a portion of that sum. In August 2016, the U.S. Court of Appeals for the Second Circuit affirmed a 2013 District Court ruling confirming the ICC award, and PEP filed a Motion for Rehearing in September 2016. PEP posted $465 million as security for the judgment, pending exhaustion of all appeals.

On April 6, 2017, we entered into a settlement agreement with PEMEX and PEP resolving this dispute. The settlement provided for a cash payment to Commisa of $435 million, payment by PEP of all VAT related to the settlement amount and mutual dismissals and releases of all claims related to the EPC 1 project. This matter is now resolved, and all amounts were paid by PEP in April 2017. As a result of the final settlement, we recognized additional revenues and gross profit of $35 million for the three months ended June 30, 2017.

Ichthys LNG Project

The Ichthys JV has entered into commercial contracts with multiple suppliers and subcontractors to execute various scopes of work on the project. Certain of these suppliers and subcontractors have made contract claims against the Ichthys JV for recovery of costs and an extension of time in order to progress the works under the scope of their respective contracts due to a variety of issues related to changes to the scope of work, delays and lower than planned subcontractor productivity. In addition, the Ichthys JV has or is expected to incur incremental costs due to these circumstances. Most of these claims relate to cost-reimbursable scope between the Ichthys JV and its client.
Cost Reimbursable Scope
We believe any amounts paid or payable to the suppliers and subcontractors in settlement of their contract claims related to cost-reimbursable scope are an adjustment to the contract price, and accordingly the Ichthys JV has made claims for change orders under the reimbursable portion of the contract between the Ichthys JV and its client. However, the client has disputed these contract price adjustments and change orders. The change orders remain unapproved. In order to facilitate the continuation of work under the contract while we work to resolve this dispute, the client has agreed to a contractual mechanism (“Deed of Settlement”) providing funding in the form of an interim contract price adjustment to the Ichthys JV for settlement of certain subcontractor claims related to cost-reimbursable scope. A significant portion of the unapproved change orders has accordingly been paid by the client. The Ichthys JV has in turn settled the subcontractor claims relating to cost-reimbursable scope which have been funded through the Deed of Settlement by the client.
If the Ichthys JV does not resolve the claims under the Deed of Settlement with its client by December 31, 2020, it will be required to refund sums in excess of the final adjusted contract price with the client under the terms of the Deed of Settlement. We, along with our joint venture partners, are jointly and severally liable to the client for any amounts required to be refunded. While the Ichthys JV continues to pursue settlement of these disputes, the Ichthys JV has initiated proceedings and is planning other arbitrations against the client to resolve these open reimbursable supplier and subcontractor claims prior to December 31, 2020 and other related disputes.
In September and October 2017, additional supplier and subcontractor settlements have been negotiated which the client has funded. The formal price adjustment for these settlements remained pending at September 30, 2017, but there is no requirement to refund any amounts to the client by a fixed date if the change orders are not resolved.
There has been deterioration of paint on certain exterior areas of the onshore LNG facilities under our contract. The client has requested for and is funding paint remediation for a portion of the facilities. Ichthys JV revenues and costs include these remediation activities that we have been authorized to perform.
If the above matters are not resolved for the amounts recorded, or to the extent the Ichthys JV is unsuccessful in retaining amounts paid to it under the Deed of Settlement, we would be responsible for our pro-rata portion of any additional costs and refunded sums in excess of the final adjusted contract price, which could have a material adverse effect on our results of operations, financial position and cash flows. Additionally, to the extent the client does not continue to provide adequate funding for project activities prior to resolution of these matters, the joint venture partners will be required to fund working capital requirements of the Ichthys JV in the near term which could have a material adverse effect on our financial position and cash flows.
Fixed-Price Scope
Pursuant to the Ichthys JV's fixed-price scope of its contract with its client, the Ichthys JV awarded a fixed-price contract to a subcontractor for the design, construction and commissioning of a combined cycle power plant on the Ichthys LNG Project. The subcontractor is a consortium consisting of a joint venture between UGL Infrastructure Pty Limited, CH2M Hill, General Electric and GE Electrical International Inc (collectively, the "Consortium"). On January 25, 2017, the Ichthys JV received Notice of Termination from the Consortium, and the Consortium ceased work on the power plant. The Ichthys JV believes the Consortium breached its contracts and repudiated is obligation to complete the power plant. The Ichthys JV has evaluated the cost to complete the Consortium's work, which exceeds the awarded fixed-price subcontract value. The cost to complete the power plant, which excludes interest, liquidated damages and other related costs which we intend to pursue recovery from the Consortium, represent estimated recoveries of claims against suppliers and subcontractors and have been included in the Ichthys JV's estimate to complete
the Consortium's remaining obligations. The full amount of the costs to complete the plant have been determined to be probable of recovery from the subcontractor in our estimate of profit at completion. The Ichthys JV will pursue recourse against the Consortium to recover the amounts needed to complete the remaining work on the power plant, inclusive of calling bank guarantees (bonds) and parent guarantees provided by the Consortium partners. Each of the Consortium partners has joint and several liability with respect to all obligations under the subcontract. On August 3, 2017, the Consortium filed a request for arbitration with the ICC asserting that the Ichthys JV was in breach of the subcontract. The Ichthys JV's response to the arbitration request is due by November 9, 2017.

To the extent the Ichthys JV is unsuccessful in prevailing in the Arbitration and in recovering costs to complete the power plant, we would be responsible for funding our pro-rata portion of unrecovered costs from the subcontractor. This could have a material adverse impact on the profit at completion of the contract and thus on our consolidated statements of operations, financial position and cash flow. Additionally, to the extent the Ichthys JV does not resolve this matter with the subcontractor in the near term, the joint venture partners will be required to fund the Ichthys JV's completion of the combined cycle power plant which could have a material adverse effect on our financial position and cash flows.

Our proportionate share of unapproved change orders, customer claims and estimated recoveries of claims against suppliers and subcontractors related to the Ichthys JV included in determining estimated profit at completion of the contract are included in the amounts disclosed in Note 7 to our condensed consolidated financial statements.

The Ichthys JV intends to vigorously pursue approval and collection of amounts under all unapproved change orders and claims, as well as resolution of contingencies within reserved amounts with subcontractors and the client. Further, there are additional claims that the Ichthys JV believes it is entitled to recover from its client which have been excluded from estimated revenue and profit at completion as appropriate under U.S. GAAP. It is anticipated that these commercial matters may not be resolved in the near term.

Other matters

In re KBR, Inc. Securities Litigation (II). On August 22, 2017, the court consolidated Denenberg v. KBR, Inc. et al. with Porter v. KBR, Inc. et al. and restyled the consolidated matter as In re KBR, Inc. Securities Litigation. On September 15, 2017, Kuberbhai M. Patel and Kanti K. Patel were appointed lead plaintiffs of the consolidated case. On October 20, 2017, lead plaintiffs filed an amended consolidated complaint. Plaintiffs Denenberg and Porter asserted in the original complaints that defendants violated the securities law in connection with KBR's disclosures associate with the SFO's investigations against KBR and its affiliates relating to Unaoil, which the SFO announced in April 2017. At this time, we are not yet able to determine the likelihood of loss, if any, arising from this matter.

Unaoil Investigation. The DOJ, SEC, and the SFO are conducting investigations of Unaoil, a Monaco based company, in relation to international projects involving several global companies, including KBR, whose interactions with Unaoil are a subject of those investigations. KBR is cooperating with the DOJ, SEC, and the SFO in their investigations, including through the voluntary submission of information and responding to formal document requests.

Tisnado vs DuPont, et al. In May 2016, KBR was served with a Fourth Amended Petition in Intervention and was brought into a lawsuit which was originally filed on November 14, 2014, in the 11th Judicial District Court of Harris County, Texas. This suit was brought by the family members of persons who died in an incident at the DuPont plant in LaPorte, Texas. KBR has filed an Answer to the Petition, denying the plaintiffs' claims and asserting affirmative defenses. This case is in its early stages of discovery. At this time, we are not yet able to determine the likelihood of loss, if any, arising from this matter.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity

The following tables summarize our activity in shareholders’ equity:
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2016
$
745

 
$
2,088

 
$
488

 
$
(769
)
 
$
(1,050
)
 
$
(12
)
Share-based compensation
7

 
7

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(34
)
 
—

 
(34
)
 
—

 
—

 
—

Repurchases of common stock
(52
)
 
—

 
—

 
(52
)
 
—

 
—

Issuance of ESPP shares
4

 
—

 
—

 
4

 
—

 
—

Distributions to noncontrolling interests
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Net income
164

 
—

 
159

 
—

 
—

 
5

Other comprehensive income, net of tax
25

 
—

 
—

 
—

 
26

 
(1
)
Balance at September 30, 2017
$
858

 
$
2,095

 
$
613

 
$
(817
)
 
$
(1,024
)
 
$
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2015
$
1,052

 
$
2,070

 
$
595

 
$
(769
)
 
$
(831
)
 
$
(13
)
Share-based compensation
14

 
14

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(34
)
 
—

 
(34
)
 
—

 
—

 
—

Repurchases of common stock
(2
)
 
—

 
—

 
(2
)
 
—

 
—

Issuance of ESPP shares
3

 
(1
)
 
—

 
4

 
—

 
—

Distributions to noncontrolling interests
(9
)
 
—

 
—

 
—

 
—

 
(9
)
Net income
35

 
—

 
26

 
—

 
—

 
9

Other comprehensive income, net of tax
38

 
—

 
—

 
—

 
39

 
(1
)
Balance at September 30, 2016
$
1,097

 
$
2,083

 
$
587

 
$
(767
)
 
$
(792
)
 
$
(14
)



Accumulated other comprehensive loss, net of tax
 
September 30,
Dollars in millions
2017
 
2016
Accumulated foreign currency translation adjustments, net of tax of $5 and $3
$
(254
)
 
$
(247
)
Pension and post-retirement benefits, net of tax of $249 and $204
(767
)
 
(542
)
Fair value of derivatives, net of tax of $0 and $0
(3
)
 
(3
)
Total accumulated other comprehensive loss
$
(1,024
)
 
$
(792
)


Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2016
$
(262
)
 
$
(785
)
 
$
(3
)
 
$
(1,050
)
Other comprehensive income adjustments before reclassifications
8

 
—

 
1

 
9

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2017
$
(254
)
 
$
(767
)
 
$
(3
)
 
$
(1,024
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
22

 
—

 
—

 
22

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2016
$
(247
)
 
$
(542
)
 
$
(3
)
 
$
(792
)



Reclassifications out of accumulated other comprehensive loss, net of tax, by component
 
Nine Months Ended September 30,
 
 
Dollars in millions
2017
 
2016
 
Affected line item on the Condensed Consolidated Statements of Operations
Accumulated pension liability adjustments
 
 
 
 
 
    Amortization of actuarial loss (a)
$
(22
)
 
$
(22
)
 
See (a) below
Tax benefit
4

 
4

 
Provision for income taxes
Net pension and post-retirement benefits
$
(18
)
 
$
(18
)
 
Net of tax
 
(a)
This item is included in the computation of net periodic pension cost. See Note 11 to our condensed consolidated financial statements for further discussion.
Share Repurchase
Share Repurchases
Share Repurchases

Authorized Share Repurchase Program

On February 25, 2014, our Board of Directors authorized a plan to repurchase up to $350 million of our outstanding common shares, which replaced and terminated the August 26, 2011 share repurchase program. The authorization does not obligate the Company to acquire any particular number of common shares and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through the Company’s current and future cash and the authorization does not have an expiration date.

Withheld to Cover Program

In addition to the plans above, we also have in place a "withheld to cover" program, which allows us to withhold common shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share based equity awards under the KBR, Inc. 2006 Stock and Incentive Plan.

The table below presents information on our share repurchases activity under these programs:
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2017
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 

n/a

 
$
—

 
3,345,366

 
$
14.93

 
$
50

Withheld to cover shares
1,748

 
$
15.64

 
—

 
166,891

 
$
15.08

 
2

Total
1,748

 
$
15.64

 
$
—

 
3,512,257

 
$
14.93

 
$
52

 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2016
 
September 30, 2016
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 
n/a

 
$
—

 
—

 
n/a

 
$
—

Withheld to cover shares
15,608

 
$
13.76

 
—

 
161,153

 
$
13.98

 
2

Total
15,608

 
$
13.76

 
$
—

 
161,153

 
$
13.98

 
$
2

Income per Share
Income Per Share
Income per Share

Basic income per share is based upon the weighted average number of common shares outstanding during the period. Dilutive income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the treasury stock method.

A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Shares in millions
2017
 
2016
 
2017
 
2016
Basic weighted average common shares outstanding
140

 
142

 
141

 
142

Stock options and restricted shares
—

 
—

 
—

 
—

Diluted weighted average common shares outstanding
140

 
142

 
141

 
142



For purposes of applying the two-class method in computing income per share, there were $0.3 million and $1.1 million net earnings allocated to participating securities, or a negligible amount per share, for the three and nine months ended September 30, 2017, respectively. Net earnings allocated to participating securities for the three and nine months ended September 30, 2016 were $0.0 million and $0.2 million, or a negligible amount per share, respectively. The diluted income per share calculation did not include 1.9 million and 2.2 million antidilutive weighted average shares for the three and nine months ended September 30, 2017, respectively. The diluted income per share calculation did not include 2.9 million and 3.2 million antidilutive weighted average shares for the three and nine months ended September 30, 2016, respectively.
Financial Instruments And Risk Management Financial Instruments And Risk Management
Fair Value, Concentration of Risk
Financial Instruments and Risk Management

Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign exchange forwards and currency option contracts to hedge exposures associated with forecasted future cash flows and to hedge exposures present on our balance sheet.

As of September 30, 2017, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $58 million, all of which had durations of 10 days or less. We also had approximately $25 million (gross notional value) of cash flow hedges which had durations of approximately 34 months or less.

The fair value of our balance sheet and cash flow hedges included in "Other current assets" and "Other current liabilities" on our condensed consolidated balance sheets was immaterial at September 30, 2017 and December 31, 2016. The fair values of these derivatives are considered Level 2 under ASC 820, Fair Value Measurement, as they are based on quoted prices directly observable in active markets.
The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income (expense)" on our condensed consolidated statements of operations.


 
September 30,
 
December 31,
Gains (losses) dollars in millions
2017
 
2016
Balance sheet hedges - fair value
$
4

 
$
(7
)
Balance sheet position - remeasurement
(16
)
 
27

Net
$
(12
)
 
$
20

Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recent Accounting Pronouncements

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedge Activities. This ASU is intended to improve and simplify accounting rules around hedge accounting. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demand, uncertainties and events in our business.

In May 2017, the FASB issued ASU No. 2017-10, Service Concession Arrangements (Topic 853) - Determining the Customer of the Operation Services. This ASU is intended to clarify the customer of the operation services in all cases for service concession arrangements. This ASU is to be adopted concurrently with the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and applying the same transition method. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business.

In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting. This ASU is intended to clarify the accounting treatment when there are changes to the terms or conditions of a share-based payment award. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business.

In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow topics with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. We do not expect adoption of this ASU to be material to our ongoing financial reporting or on known trends, demands, uncertainties and events in our business.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecast and is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods after December 15, 2018, including interim periods within those annual periods. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with terms longer than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. We are currently in the process of assessing the impact of this ASU on our financial statements. We have not yet determined the effect of the standard on our ongoing financial reporting or the future impact of adoption on known trends, demands, uncertainties and events in our business.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended (Topic 606), which will change the way we recognize revenue and significantly expand the disclosure requirements for revenue arrangements. In July 2015, the FASB approved a one-year deferral of the effective date of the standard to 2018 for public companies, with an option that would permit companies to adopt the standard in 2017. Further amendments and technical corrections were made to the standard during 2016.
The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application.
We are continuing to evaluate the impact of the new standard on our contract portfolio. Our approach includes a detailed review of representative contracts at each of our business segments and comparing historical accounting policies and practices to the new standard. Because the standard will impact our business processes, systems and controls, we have developed a comprehensive change management plan to guide the implementation. While we are still evaluating the potential impact of
adoption on our financial statements, we currently believe the areas that may impact us the most include determining which goods and services are distinct and represent separate performance obligations and accounting for variable consideration and the manner in which we determine the unit of account for our projects. We expect that in most cases revenue generated from our EPC and services contracts will continue to be recognized over time utilizing the cost-to-cost measure of progress consistent with current practice. We also expect revenue recognition disclosures to significantly expand due to the new qualitative and quantitative requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts, including significant judgments, information about contract balances and performance obligations, and assets recognized from cost incurred to obtain or fulfill a contract. These concepts, as well as other aspects of the guidance, may change the method and/or timing of revenue recognition. We will adopt the requirements of the new standard effective January 1, 2018 and intend to apply the modified retrospective method of adoption with the cumulative effect of adoption recognized at the date of initial application for uncompleted contracts.
Description Of Company And Significant Accounting Policies (Policy)
Principles of consolidation 
Principles of Consolidation

Our condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR and our wholly owned and majority-owned subsidiaries and VIEs of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 10 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation.

Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows.

We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures.

Use of estimates 
Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include but are not limited to the following:

•
project revenues, costs and profits on engineering and construction contracts, including recognition of estimated losses on uncompleted contracts
•
project revenues, award fees, costs and profits on government services contracts
•
provisions for uncollectible receivables
•
provisions for client claims and recoveries of costs from subcontractors, vendors and others
•
provisions for income taxes and related valuation allowances and tax uncertainties
•
recoverability of goodwill
•
recoverability of other intangibles and long-lived assets and related estimated lives
•
recoverability of equity method and cost method investments
•
valuation of pension obligations and pension assets
•
accruals for estimated liabilities, including litigation accruals
•
consolidation of VIEs
•
valuation of share-based compensation
•
valuation of assets and liabilities acquired in business combinations

In accordance with normal practice in the construction industry, we include in current assets and current liabilities certain amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block] 
Adoption of New Accounting Standards

Compensation. Effective January 1, 2017, we adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting which was issued by the FASB on March 31, 2016. This ASU is intended to simplify several aspects of the accounting for share-based payment transactions including (a) the income tax consequences, (b) classification of awards as either equity or liabilities, and (c) classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU 2016-09 did not have a material impact on our financial statements.
Description Of Company And Significant Accounting Policies Additional Balance Sheet Disclosure (Tables)
Additional Balance Sheet Disclosure
The components of "Other current liabilities" on our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 are presented below:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Reserve for estimated losses on uncompleted contracts (a)
$
20

 
$
63

Retainage payable
37

 
47

Income taxes payable
37

 
55

Restructuring reserve
8

 
30

Taxes payable not based on income
13

 
14

Value-added tax payable
17

 
16

Insurance payable
13

 
14

Dividend payable
11

 
12

Other miscellaneous liabilities
37

 
41

Total other current liabilities
$
193

 
$
292

 
(a)
See Note 2 to our condensed consolidated financial statements for further discussion on significant reserves for estimated losses on uncompleted contracts.

Business Segment Information (Tables)
Schedule of Operations by Reportable Segment
The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, and operating income (loss) by reporting segment.
Operations by Reportable Segment
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
Dollars in millions
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Government Services
$
582

 
$
401

 
$
1,640

 
$
840

Technology & Consulting
78

 
67

 
236

 
262

Engineering & Construction
370

 
595

 
1,321

 
1,822

Other
—

 
—

 
—

 
—

Subtotal
1,030

 
1,063

 
3,197

 
2,924

Non-strategic Business
4

 
10

 
37

 
154

Total revenues
$
1,034

 
$
1,073

 
$
3,234

 
$
3,078

Gross profit (loss):
 
 
 
 
 
 
 
Government Services
$
39

 
$
32

 
$
113

 
$
94

Technology & Consulting
20

 
17

 
51

 
49

Engineering & Construction
25

 
1

 
113

 
65

Other
—

 
—

 
—

 
—

Subtotal
84

 
50

 
277

 
208

Non-strategic Business
3

 
(86
)
 
—

 
(102
)
Total gross profit (loss)
$
87

 
$
(36
)
 
$
277

 
$
106

Equity in earnings of unconsolidated affiliates:
 
 
 
 
 
 
 
Government Services (a)
$
14

 
$
8

 
$
41

 
$
29

Technology & Consulting
—

 
—

 
—

 
—

Engineering & Construction
9

 
11

 
23

 
52

Other
—

 
—

 
—

 
—

Subtotal
23

 
19

 
64

 
81

Non-strategic Business
—

 
—

 
—

 
—

Total equity in earnings of unconsolidated affiliates
$
23

 
$
19

 
$
64

 
$
81

Segment operating income (loss):
 
 
 
 
 
 
 
Government Services
$
48

 
$
25

 
$
136

 
$
104

Technology & Consulting
19

 
16

 
48

 
44

Engineering & Construction
25

 
(2
)
 
120

 
76

Other
(22
)
 
(21
)
 
(65
)
 
(65
)
Subtotal
70

 
18

 
239

 
159

Non-strategic Business
3

 
(85
)
 
—

 
(98
)
Total segment operating income (loss)
$
73

 
$
(67
)
 
$
239

 
$
61


 

(a) See Note 1 to our condensed consolidated financial statements for information related to a prior period adjustment in the second quarter of 2017.
Acquisitions, Dispositions and Other Transactions Acquisitions, Dispositions and Other Transactions (Tables)
Business Acquisition, Pro Forma Information [Table Text Block] 
The following supplemental pro forma condensed consolidated results of operations assume that Wyle and HTSI had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of Wyle and HTSI and has been adjusted to give effect to pro forma adjustments that are directly attributable to the transaction. The pro forma amounts reflect certain adjustments to amortization expense and interest expense associated with the portion of the purchase price funded by $700 million in advances on our Credit Agreement and also reflect adjustments to 2016 results to exclude acquisition related costs as they are nonrecurring and are directly attributable to the transaction. The supplemental pro forma financial information presented below does not include any anticipated cost savings or expected realization of other synergies associated with the transactions. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisitions occurred on January 1, 2015, nor is it indicative of future results of operations.
Dollars in millions, except per share data
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
(Unaudited)
 
(Unaudited)
Revenue
$
1,199

 
$
3,939

Net income (loss) attributable to KBR
(54
)
 
54

Diluted earnings per share
$
(0.38
)
 
$
0.38

Schedule of Business Acquisitions, by Acquisition [Table Text Block] 
The following table summarizes the consideration paid for these acquisitions and the fair value of the assets acquired and liabilities assumed as of the respective acquisition dates.
Dollars in millions
Wyle
 
HTSI
Fair value of total consideration transferred
$
623

 
$
280

Recognized amounts of identifiable assets acquired and liabilities assumed:
 
 
 
Cash
10

 
—

Trade receivables, net
47

 
29

CIE
98

 
93

Prepaids and other current assets
4

 
7

Total current assets
159

 
129

Property, plant and equipment, net
10

 
6

Intangible assets
141

 
70

Deferred income taxes
—

 
8

Total assets
310

 
213

Accounts payable
61

 
23

BIE
—

 
10

Other current liabilities
47

 
33

Total current liabilities
108

 
66

Deferred income taxes
51

 
—

Other liabilities
12

 
—

Total liabilities
171

 
66

Goodwill
$
484

 
$
133

Cash and Equivalents (Tables)
Schedule of Cash and Cash Equivalents
The components of our cash and equivalents balance are as follows:
 
September 30, 2017
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
134

 
$
144

 
$
278

Short-term investments (c)
97

 
68

 
165

Cash and equivalents held in joint ventures
65

 
3

 
68

Total
$
296

 
$
215

 
$
511


 
December 31, 2016
Dollars in millions
International (a)
 
Domestic (b)
 
Total
Operating cash and equivalents
$
163

 
$
242

 
$
405

Short-term investments (c)
68

 
7

 
75

Cash and equivalents held in joint ventures
50

 
6

 
56

Total
$
281

 
$
255

 
$
536

 
(a)
Includes deposits held in non-U.S. operating accounts.
(b)
Includes U.S. dollar and foreign currency deposits held in operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country.
(c)
Includes time deposits, money market funds, and other highly liquid short-term investments.
Accounts Receivable (Tables)
Schedule of Accounts Receivable
The components of our accounts receivable, net of allowance for doubtful accounts balance, are as follows:
 
September 30, 2017
Dollars in millions
Retainage
 
Trade & Other
 
Total
Government Services
$
6

 
$
179

 
$
185

Technology & Consulting
—

 
53

 
53

Engineering & Construction
49

 
209

 
258

Other
—

 
—

 
—

Subtotal
55

 
441

 
496

Non-strategic Business
4

 
1

 
5

Total
$
59

 
$
442

 
$
501


 
December 31, 2016
Dollars in millions
Retainage
 
Trade & Other
 
Total
Government Services
$
6

 
$
190

 
$
196

Technology & Consulting
—

 
52

 
52

Engineering & Construction
53

 
276

 
329

Other
—

 
3

 
3

Subtotal
59

 
521

 
580

Non-strategic Business
5

 
7

 
12

Total
$
64

 
$
528

 
$
592

Percentage-Of-Completion Contracts (Tables)
Schedule Of Unapproved Claims And Change Orders
Our CIE balances by business segment are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Government Services
$
282

 
$
271

Technology & Consulting
54

 
30

Engineering & Construction
76

 
115

Subtotal
412

 
416

Non-strategic Business
—

 
—

Total
$
412

 
$
416


Our BIE balances by business segment are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Government Services
$
82

 
$
76

Technology & Consulting
44

 
61

Engineering & Construction
226

 
388

Subtotal
352

 
525

Non-strategic Business
8

 
27

Total
$
360

 
$
552

Unapproved Change Orders and Claims (Tables)
Schedule Of Unapproved Claims And Change Orders
The amounts of unapproved change orders, claims and estimated recoveries of claims against suppliers and subcontractors included in determining the profit or loss on contracts are as follows:
Dollars in millions
2017
 
2016
Amounts included in project estimates-at-completion at January 1,
$
294

 
$
104

Additions
483

 
33

Approved change orders
(4
)
 
(45
)
Amounts included in project estimates-at-completion at September 30,
$
773

 
$
92

Amounts recognized on a percentage-of-completion basis at September 30,
$
687

 
$
77

Asset Impairment and Restructuring (Tables)
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]
The table below provides a rollforward of one-time charges associated with employee terminations based on the fair value of the termination benefits. These amounts are included in "Other current liabilities" on our condensed consolidated balance sheets.
Dollars in millions
Severance Accrual
Balance at December 31, 2016
$
8

Charges
—

Payments
(6
)
Balance at September 30, 2017
$
2

 
 
Balance at December 31, 2015
$
19

Charges
15

Payments
(21
)
Balance at September 30, 2016
$
13

Pension Plans Pension (Tables) (Pension Plan [Member])
Schedule of Net Benefit Costs
The components of net periodic benefit cost related to pension benefits for the three and nine months ended September 30, 2017 and 2016 were as follows:
 
Three Months Ended September 30,
 
2017
 
2016
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
1

 
$
—

 
$
—

Interest cost
1

 
13

 
1

 
15

Expected return on plan assets
—

 
(20
)
 
(1
)
 
(21
)
Recognized actuarial loss
—

 
6

 
—

 
7

Net periodic benefit cost
$
1

 
$
—

 
$
—

 
$
1

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
2017
 
2016
Dollars in millions
United States
 
Int’l
 
United States
 
Int’l
Components of net periodic benefit cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
1

 
$
—

 
$
1

Interest cost
2

 
39

 
2

 
48

Expected return on plan assets
(2
)
 
(57
)
 
(2
)
 
(67
)
Recognized actuarial loss
1

 
21

 
1

 
21

Net periodic benefit cost
$
1

 
$
4

 
$
1

 
$
3

Equity Method Investments And Variable Interest Entities (Related Part Disclosures) (Tables)
Schedule of Related Party Transactions 
Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of September 30, 2017 and December 31, 2016 are as follows:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Accounts receivable, net of allowance for doubtful accounts (a)
$
10

 
$
22

Costs and estimated earnings in excess of billings on uncompleted contracts (b)
$
4

 
$
1

Billings in excess of costs and estimated earnings on uncompleted contracts (b)
$
22

 
$
41

 
(a)
Includes an $5 million and $11 million net receivable from the Brown & Root Industrial Services joint venture at September 30, 2017 and December 31, 2016, respectively.
(b)
Reflects CIE and BIE primarily related to joint ventures within our E&C business segment as discussed above.

Equity In Earnings of Unconsolidated Affiliates 
The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
 
September 30,
 
December 31,
Dollars in millions
2017
 
2016
Beginning balance
$
369

 
$
281

Equity in earnings of unconsolidated affiliates
64

 
91

Distribution of earnings of unconsolidated affiliates (a)
(41
)
 
(56
)
Advances (receipts)
(6
)
 
1

Investments (b)
—

 
61

Foreign currency translation adjustments
12

 
(8
)
Other
2

 
(8
)
Balance before reclassification
$
400

 
$
362

Reclassification of excess distributions (a)
6

 
12

Recognition of excess distributions (a)
(5
)
 
(5
)
Ending balance
$
401

 
$
369


 
(a)
We received cash dividends in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as "Deferred income from unconsolidated affiliates" on our condensed consolidated balance sheets and recognize these dividends as earnings are generated by the investment.
(b)
In 2016, investments included a $56 million investment in the Brown & Root Industrial Services joint venture and a $5 million investment in the EPIC joint venture.
Consolidated Summarized Financial Information 

The maximum exposure to loss is computed as our “Equity in and advances to unconsolidated affiliates” because our projections do not indicate losses related to these projects and project-level debt is nonrecourse to us. If a project becomes a loss project in the future, our maximum exposure to loss could increase to the extent we are required to fund those losses through capital contributions resulting from guarantees or other financial commitments. See Note 15 to our condensed consolidated financial statements for further discussion of our potential funding commitments to the Ichthys JV.





The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balance sheets and our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.

 
September 30, 2017
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity (U.K. MFTS project)
$
25

 
$
3

 
$
25

Aspire Defence project
$
15

 
$
114

 
$
15

Ichthys LNG Project
$
133

 
$
18

 
$
133

U.K. Road projects
$
35

 
$
10

 
$
35

EBIC Ammonia plant (65% interest)
$
38

 
$
2

 
$
25

 
 
December 31, 2016
Dollars in millions
Total assets
 
Total liabilities
 
Maximum
exposure to 
loss
Affinity (U.K. MFTS project)
$
12

 
$
3

 
$
12

Aspire Defence project
$
14

 
$
107

 
$
14

Ichthys LNG Project
$
124

 
$
33

 
$
124

U.K. Road projects
$
30

 
$
9

 
$
30

EBIC Ammonia plant (65% interest)
$
34

 
$
2

 
$
22

Schedule Of Variable Interest Entities 
The following is a summary of the significant VIEs where we are the primary beneficiary:
Dollars in millions
September 30, 2017
Total assets
 
Total liabilities
Gorgon LNG project
$
20

 
$
55

Escravos Gas-to-Liquids project
$
8

 
$
16

Fasttrax Limited project
$
61

 
$
51

 

Dollars in millions
December 31, 2016
Total assets
 
Total liabilities
Gorgon LNG project
$
28

 
$
60

Escravos Gas-to-Liquids project
$
11

 
$
22

Fasttrax Limited project
$
56

 
$
50



Shareholders' Equity (Tables)
Shareholders' Equity Activities 
The following tables summarize our activity in shareholders’ equity:
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2016
$
745

 
$
2,088

 
$
488

 
$
(769
)
 
$
(1,050
)
 
$
(12
)
Share-based compensation
7

 
7

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(34
)
 
—

 
(34
)
 
—

 
—

 
—

Repurchases of common stock
(52
)
 
—

 
—

 
(52
)
 
—

 
—

Issuance of ESPP shares
4

 
—

 
—

 
4

 
—

 
—

Distributions to noncontrolling interests
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Net income
164

 
—

 
159

 
—

 
—

 
5

Other comprehensive income, net of tax
25

 
—

 
—

 
—

 
26

 
(1
)
Balance at September 30, 2017
$
858

 
$
2,095

 
$
613

 
$
(817
)
 
$
(1,024
)
 
$
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2015
$
1,052

 
$
2,070

 
$
595

 
$
(769
)
 
$
(831
)
 
$
(13
)
Share-based compensation
14

 
14

 
—

 
—

 
—

 
—

Dividends declared to shareholders
(34
)
 
—

 
(34
)
 
—

 
—

 
—

Repurchases of common stock
(2
)
 
—

 
—

 
(2
)
 
—

 
—

Issuance of ESPP shares
3

 
(1
)
 
—

 
4

 
—

 
—

Distributions to noncontrolling interests
(9
)
 
—

 
—

 
—

 
—

 
(9
)
Net income
35

 
—

 
26

 
—

 
—

 
9

Other comprehensive income, net of tax
38

 
—

 
—

 
—

 
39

 
(1
)
Balance at September 30, 2016
$
1,097

 
$
2,083

 
$
587

 
$
(767
)
 
$
(792
)
 
$
(14
)


Accumulated Other Comprehensive Income (Loss) 
Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2016
$
(262
)
 
$
(785
)
 
$
(3
)
 
$
(1,050
)
Other comprehensive income adjustments before reclassifications
8

 
—

 
1

 
9

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2017
$
(254
)
 
$
(767
)
 
$
(3
)
 
$
(1,024
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
22

 
—

 
—

 
22

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2016
$
(247
)
 
$
(542
)
 
$
(3
)
 
$
(792
)
Accumulated other comprehensive loss, net of tax
 
September 30,
Dollars in millions
2017
 
2016
Accumulated foreign currency translation adjustments, net of tax of $5 and $3
$
(254
)
 
$
(247
)
Pension and post-retirement benefits, net of tax of $249 and $204
(767
)
 
(542
)
Fair value of derivatives, net of tax of $0 and $0
(3
)
 
(3
)
Total accumulated other comprehensive loss
$
(1,024
)
 
$
(792
)
Accumulated Other Comprehensive Income (Loss) 
Changes in accumulated other comprehensive loss, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2016
$
(262
)
 
$
(785
)
 
$
(3
)
 
$
(1,050
)
Other comprehensive income adjustments before reclassifications
8

 
—

 
1

 
9

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2017
$
(254
)
 
$
(767
)
 
$
(3
)
 
$
(1,024
)


Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2015
$
(269
)
 
$
(560
)
 
$
(2
)
 
$
(831
)
Other comprehensive income adjustments before reclassifications
22

 
—

 
—

 
22

Amounts reclassified from accumulated other comprehensive income
—

 
18

 
(1
)
 
17

Balance at September 30, 2016
$
(247
)
 
$
(542
)
 
$
(3
)
 
$
(792
)
Accumulated other comprehensive loss, net of tax
 
September 30,
Dollars in millions
2017
 
2016
Accumulated foreign currency translation adjustments, net of tax of $5 and $3
$
(254
)
 
$
(247
)
Pension and post-retirement benefits, net of tax of $249 and $204
(767
)
 
(542
)
Fair value of derivatives, net of tax of $0 and $0
(3
)
 
(3
)
Total accumulated other comprehensive loss
$
(1,024
)
 
$
(792
)
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] 
Reclassifications out of accumulated other comprehensive loss, net of tax, by component
 
Nine Months Ended September 30,
 
 
Dollars in millions
2017
 
2016
 
Affected line item on the Condensed Consolidated Statements of Operations
Accumulated pension liability adjustments
 
 
 
 
 
    Amortization of actuarial loss (a)
$
(22
)
 
$
(22
)
 
See (a) below
Tax benefit
4

 
4

 
Provision for income taxes
Net pension and post-retirement benefits
$
(18
)
 
$
(18
)
 
Net of tax
 
(a)
This item is included in the computation of net periodic pension cost. See Note 11 to our condensed consolidated financial statements for further discussion.
Share Repurchases (Tables)
Schedule of shares repurchased
The table below presents information on our share repurchases activity under these programs:
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2017
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 

n/a

 
$
—

 
3,345,366

 
$
14.93

 
$
50

Withheld to cover shares
1,748

 
$
15.64

 
—

 
166,891

 
$
15.08

 
2

Total
1,748

 
$
15.64

 
$
—

 
3,512,257

 
$
14.93

 
$
52

 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2016
 
September 30, 2016
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
 
Number of Shares
 
Average Price per Share
 
Dollars in Millions
Repurchases under the $350 million authorized share repurchase program
—

 
n/a

 
$
—

 
—

 
n/a

 
$
—

Withheld to cover shares
15,608

 
$
13.76

 
—

 
161,153

 
$
13.98

 
2

Total
15,608

 
$
13.76

 
$
—

 
161,153

 
$
13.98

 
$
2

Income Per Share (Tables)
Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding
A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Shares in millions
2017
 
2016
 
2017
 
2016
Basic weighted average common shares outstanding
140

 
142

 
141

 
142

Stock options and restricted shares
—

 
—

 
—

 
—

Diluted weighted average common shares outstanding
140

 
142

 
141

 
142

Financial Instruments And Risk Management Financial Instruments and Risk Management (Tables)
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table summarizes the recognized changes in fair value of our balance sheet hedges offset by remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in "Other non-operating income (expense)" on our condensed consolidated statements of operations.


 
September 30,
 
December 31,
Gains (losses) dollars in millions
2017
 
2016
Balance sheet hedges - fair value
$
4

 
$
(7
)
Balance sheet position - remeasurement
(16
)
 
27

Net
$
(12
)
 
$
20

Description Of Company And Significant Accounting Policies (Balance Sheet Additional Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Equity in earnings of unconsolidated affiliates
$ 23 
$ 19 
$ 64 
$ 81 
 
Net income attributable to KBR
45 
(63)
159 
26 
 
Reserve for estimated losses on uncompleted contracts
20 
 
20 
 
63 
Retainage payable
37 
 
37 
 
47 
Income taxes payable
37 
 
37 
 
55 
Restructuring Reserve
8 
 
8 
 
30 
Accrual for Taxes Other than Income Taxes, Current
13 
 
13 
 
14 
Value-added tax payable
17 
 
17 
 
16 
Insurance payable
13 
 
13 
 
14 
Dividend payable
11 
 
11 
 
12 
Other miscellaneous liabilities
37 
 
37 
 
41 
Total other current liabilities
193 
 
193 
 
292 
Noncurrent deferred rent
100 
 
100 
 
103 
Due to former parent upon receipt from IRS
19 
 
19 
 
19 
Restatement Adjustment
 
 
 
 
 
Equity in earnings of unconsolidated affiliates
 
 
9 
 
 
Net income attributable to KBR
 
 
$ 11 
 
 
Business Segment Information (Schedule Of Operations By Reportable Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
$ 1,034 
$ 1,073 
$ 3,234 
$ 3,078 
Gross profit (loss):
87 
(36)
277 
106 
Equity in earnings of unconsolidated affiliates
23 
19 
64 
81 
Segment operating income (loss):
73 
(67)
239 
61 
Government Services [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
582 
401 
1,640 
840 
Gross profit (loss):
39 
32 
113 
94 
Equity in earnings of unconsolidated affiliates
14 
8 
41 
29 
Segment operating income (loss):
48 
25 
136 
104 
Technology and Consulting [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
78 
67 
236 
262 
Gross profit (loss):
20 
17 
51 
49 
Equity in earnings of unconsolidated affiliates
0 
0 
0 
0 
Segment operating income (loss):
19 
16 
48 
44 
Engineering and Construction [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
370 
595 
1,321 
1,822 
Gross profit (loss):
25 
1 
113 
65 
Equity in earnings of unconsolidated affiliates
9 
11 
23 
52 
Segment operating income (loss):
25 
(2)
120 
76 
Other Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
0 
0 
0 
0 
Gross profit (loss):
0 
0 
0 
0 
Equity in earnings of unconsolidated affiliates
0 
0 
0 
0 
Segment operating income (loss):
(22)
(21)
(65)
(65)
Non-strategic Business [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
4 
10 
37 
154 
Gross profit (loss):
3 
(86)
0 
(102)
Equity in earnings of unconsolidated affiliates
0 
0 
0 
0 
Segment operating income (loss):
3 
(85)
0 
(98)
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues:
1,030 
1,063 
3,197 
2,924 
Gross profit (loss):
84 
50 
277 
208 
Equity in earnings of unconsolidated affiliates
23 
19 
64 
81 
Segment operating income (loss):
$ 70 
$ 18 
$ 239 
$ 159 
Business Segment Information Business Segment Information Narrative (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Oct. 31, 2017
Scenario, Forecast [Member]
Subsequent Event [Member]
Sigma Bravo Pty Ltd [Member]
Oct. 31, 2017
Scenario, Forecast [Member]
Subsequent Event [Member]
Sigma Bravo Pty Ltd [Member]
Sep. 30, 2016
Legacy Project In Canada [Member]
Favorable [Member]
Sep. 30, 2016
Legacy Project In Canada [Member]
Favorable [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Additions
$ 483 
$ 33 
 
 
$ 9 
$ 9 
Voting interests acquired (percentage)
 
 
 
100.00% 
 
 
Purchase price
 
 
$ 10 
 
 
 
Business Segment Information Schedule of Changes in Estimates (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Jun. 30, 2017
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2017
EPC Ammonia Project in US [Member]
Dec. 31, 2016
EPC Ammonia Project in US [Member]
Sep. 30, 2017
Power Projects [Member]
Dec. 31, 2016
Power Projects [Member]
Sep. 30, 2017
Downstream EPC Ammonia Project in US [Member]
Dec. 31, 2016
Downstream EPC Ammonia Project in US [Member]
Sep. 30, 2016
Unfavorable [Member]
EPC Ammonia Project in US [Member]
Sep. 30, 2016
Unfavorable [Member]
EPC Ammonia Project in US [Member]
Sep. 30, 2016
Unfavorable [Member]
Power Projects [Member]
Sep. 30, 2016
Unfavorable [Member]
Power Projects [Member]
Sep. 30, 2016
Favorable [Member]
Legacy Project In Canada [Member]
Sep. 30, 2016
Favorable [Member]
Legacy Project In Canada [Member]
Sep. 30, 2016
Favorable [Member]
LNG Project in Africa [Member]
Sep. 30, 2016
Favorable [Member]
LNG Project in Africa [Member]
Sep. 30, 2016
Favorable [Member]
Sodium Dichromate Litigation [Member]
Sep. 30, 2016
Favorable [Member]
Road Construction Project [Member]
Change in Accounting Estimate [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for estimated losses on uncompleted contracts
 
$ 20 
 
$ 63 
$ 2 
$ 3 
$ 2 
$ 14 
$ 13 
$ 35 
 
 
 
 
 
 
 
 
 
 
Percent Complete on Project
 
 
 
 
 
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
Additions
 
483 
33 
 
 
 
 
 
 
 
40 
110 
86 
112 
9 
9 
3 
59 
33 
15 
Gain (Loss) Related to Litigation Settlement
$ 35 
$ 35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions, Dispositions and Other Transactions Acquisitions, Dispositions and Other Transactions (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 9 Months Ended
Jul. 1, 2016
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2016
Wyle & KTS [Member]
Jul. 1, 2016
Wyle [Member]
Sep. 30, 2017
Wyle [Member]
Sep. 30, 2017
Wyle [Member]
Jul. 1, 2016
Wyle [Member]
Jul. 1, 2016
Wyle [Member]
Trade Accounts Receivable [Member]
Jul. 1, 2016
Wyle [Member]
CIE [Member]
Jul. 1, 2016
Wyle [Member]
Government Services [Member]
Sep. 30, 2017
HTSI [Member]
Sep. 16, 2016
KTS [Member]
Sep. 30, 2017
KTS [Member]
Sep. 30, 2017
KTS [Member]
Sep. 16, 2016
KTS [Member]
Sep. 16, 2016
KTS [Member]
Trade Accounts Receivable [Member]
Sep. 16, 2016
KTS [Member]
CIE [Member]
Sep. 16, 2016
KTS [Member]
BIE [Member]
Sep. 16, 2016
KTS [Member]
Government Services [Member]
Jan. 11, 2016
Chematur Subsidiaries [Member]
companies
Jan. 11, 2016
Chematur Subsidiaries [Member]
Jan. 11, 2016
Chematur Subsidiaries [Member]
Technology and Consulting [Member]
Sep. 30, 2017
Advances [Member]
Dec. 31, 2016
Advances [Member]
Feb. 29, 2016
Affinity Project [Member]
Mar. 31, 2016
Affinity Project [Member]
Advances [Member]
Sep. 30, 2017
Affinity Flying Training Services Limited [Member]
Sep. 30, 2017
Affinity Capital Works [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Businesses Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
Voting interests acquired (percentage)
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
 
$ 900 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 25 
 
 
 
 
 
 
 
 
Cash Acquired from Acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
Proceeds from (Repayments of) Secured Debt
 
 
0 
700 
700 
700 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total consideration transferred
 
 
 
 
 
 
623 
 
 
 
 
 
 
 
280 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
 
 
 
 
 
 
 
 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepaids and other current assets
 
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
7 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total current assets
 
 
 
 
 
 
 
 
 
159 
 
 
 
 
 
 
 
129 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
 
 
 
 
 
 
 
 
 
10 
 
 
 
 
 
 
 
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets
 
 
 
 
 
 
 
 
 
141 
 
 
 
 
 
 
 
70 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
 
310 
 
 
 
 
 
 
 
213 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
 
 
 
 
 
 
 
61 
 
 
 
 
 
 
 
23 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other current liabilities
 
 
 
 
 
 
 
 
 
47 
 
 
 
 
 
 
 
33 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total current liabilities
 
 
 
 
 
 
 
 
 
108 
 
 
 
 
 
 
 
66 
 
 
10 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
 
 
 
 
 
 
 
 
51 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
 
 
 
 
 
 
 
171 
 
 
 
 
 
 
 
66 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
 
965 
 
959 
 
 
1 
1 
 
 
 
484 
2 
 
 
 
 
 
 
 
133 
 
 
24 
 
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
 
(2)
911 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables
 
 
 
 
 
 
 
 
 
 
47 
98 
 
 
 
 
 
 
29 
93 
 
 
 
 
 
 
 
 
 
 
 
Adjustment, liabilities
 
 
 
 
 
 
 
1 
1 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustment, other asset
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual
 
 
 
 
 
 
 
179 
523 
 
 
 
 
 
 
136 
401 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Information, Description
The following supplemental pro forma condensed consolidated results of operations assume that Wyle and HTSI had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of Wyle and HTSI and has been adjusted to give effect to pro forma adjustments that are directly attributable to the transaction. The pro forma amounts reflect certain adjustments to amortization expense and interest expense associated with the portion of the purchase price funded by $700 million in advances on our Credit Agreement and also reflect adjustments to 2016 results to exclude acquisition related costs as they are nonrecurring and are directly attributable to the transaction. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
1,199 
 
3,939 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to KBR
 
(54)
 
54 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share
 
$ (0.38)
 
$ 0.38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Of Contracted Services Portion Of Project
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18 years 
 
 
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
50.00% 
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(6)
1 
 
14 
 
 
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual
 
 
 
 
 
 
 
$ 15 
$ 40 
 
 
 
 
 
 
$ 5 
$ 23 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and Equivalents (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2015
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
$ 511 
$ 536 
$ 569 
$ 883 
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
278 
405 
 
 
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
165 
75 
 
 
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
68 
56 
 
 
International [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
296 
281 
 
 
International [Member] |
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
134 
163 
 
 
International [Member] |
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
97 
68 
 
 
International [Member] |
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
65 
50 
 
 
Domestic [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
215 
255 
 
 
Domestic [Member] |
Operating cash and equivalents [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
144 
242 
 
 
Domestic [Member] |
Short-term investments [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
68 
7 
 
 
Domestic [Member] |
Cash and equivalents held in joint ventures [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and equivalents
$ 3 
$ 6 
 
 
Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
$ 501 
$ 592 
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
59 
64 
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
442 
528 
Government Services [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
185 
196 
Government Services [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
6 
6 
Government Services [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
179 
190 
Technology and Consulting [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
53 
52 
Technology and Consulting [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
0 
Technology and Consulting [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
53 
52 
Engineering and Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
258 
329 
Engineering and Construction [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
49 
53 
Engineering and Construction [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
209 
276 
Other Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
3 
Other Segment [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
0 
Other Segment [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
0 
3 
Non-strategic Business [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
5 
12 
Non-strategic Business [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
4 
5 
Non-strategic Business [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
1 
7 
Operating Segments [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
496 
580 
Operating Segments [Member] |
Retainage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
55 
59 
Operating Segments [Member] |
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Account receivable, current
$ 441 
$ 521 
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts CIE (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Costs and estimated earnings in excess of billings on uncompleted contracts
$ 412 
$ 416 
Technology and Consulting [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
54 
30 
Engineering and Construction [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
76 
115 
Government Services [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
282 
271 
Non-strategic Business [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
0 
0 
Operating Segments [Member]
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
$ 412 
$ 416 
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts BIE (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Billings in Excess of Cost
$ 360 
$ 552 
Technology and Consulting [Member]
 
 
Billings in Excess of Cost
44 
61 
Engineering and Construction [Member]
 
 
Billings in Excess of Cost
226 
388 
Government Services [Member]
 
 
Billings in Excess of Cost
82 
76 
Non-strategic Business [Member]
 
 
Billings in Excess of Cost
8 
27 
Operating Segments [Member]
 
 
Billings in Excess of Cost
$ 352 
$ 525 
Percentage-Of-Completion Contracts (Schedule Of Unapproved Claims And Change Orders) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Ichthys LNG Project [Member]
Sep. 30, 2017
Ichthys LNG Project [Member]
Increases in Unapproved Change Orders, Claims and Estimated Recoveries of Claims Against Suppliers and Subcontractors
 
 
 
 
$ 201 
$ 477 
Unapproved Change Orders, Amount
773 
92 
294 
104 
 
 
Changes in estimates at completion
483 
33 
 
 
 
 
Approved change orders
(4)
(45)
 
 
 
 
Amounts recognized on a percentage-of-completion basis at September 30,
$ 687 
$ 77 
 
 
 
 
Percentage-Of-Completion Contracts (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Ichthys LNG Project [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
 
 
30.00% 
Liquidated damages
$ 10 
$ 8 
 
Unapproved Change Orders and Claims (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Contractors [Abstract]
 
 
 
Amounts included in project estimates-at-completion at January 1,
$ 294 
$ 104 
 
Additions
483 
33 
 
Approved change orders
(4)
(45)
 
Amounts included in project estimates-at-completion at September 30,
773 
92 
 
Amounts recognized on a percentage-of-completion basis at September 30,
687 
77 
 
Liquidated damages
$ 10 
 
$ 8 
Ichthys LNG Project [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Ownership percentage
30.00% 
 
 
Unapproved Change Orders and Claims Increases in Unapproved Change Orders and Claims (Details) (Ichthys LNG Project [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Ichthys LNG Project [Member]
 
 
Increases in Unapproved Change Orders and Claims [Line Items]
 
 
Increases in Unapproved Change Orders, Claims and Estimated Recoveries of Claims Against Suppliers and Subcontractors
$ 201 
$ 477 
Claims and Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Claims and accounts receivable
$ 100 
$ 131 
Government Services [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Government Contract Receivable
83 
83 
Disputed costs
$ 17 
$ 48 
Asset Impairment and Restructuring Severance Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Reserve
 
 
$ 30 
 
Charges
0 
7 
0 
21 
Restructuring Reserve
8 
 
8 
 
Employee Severance [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Reserve
 
 
8 
19 
Charges
 
 
0 
15 
Payments
 
 
(6)
(21)
Restructuring Reserve
$ 2 
$ 13 
$ 2 
$ 13 
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Beginning Balance [Member]
Dec. 31, 2015
Beginning Balance [Member]
Sep. 30, 2017
Joint Venture Earnings [Member]
Dec. 31, 2016
Joint Venture Earnings [Member]
Sep. 30, 2017
Distributions of earnings [Member]
Dec. 31, 2016
Distributions of earnings [Member]
Sep. 30, 2017
Advances [Member]
Dec. 31, 2016
Advances [Member]
Sep. 30, 2017
Investments [Member]
Dec. 31, 2016
Investments [Member]
Sep. 30, 2017
Cumulative Translation Adjustment [Member]
Dec. 31, 2016
Cumulative Translation Adjustment [Member]
Sep. 30, 2017
Other Activity [Member]
Dec. 31, 2016
Other Activity [Member]
Sep. 30, 2017
Subtotal Before Reclassification [Member]
Dec. 31, 2016
Subtotal Before Reclassification [Member]
Sep. 30, 2017
Reclassification of excess distribution [Member]
Dec. 31, 2016
Reclassification of excess distribution [Member]
Sep. 30, 2017
Recognition of Excess Distribution [Member]
Dec. 31, 2016
Recognition of Excess Distribution [Member]
Sep. 30, 2017
Ending Balance [Member]
Dec. 31, 2016
Ending Balance [Member]
Dec. 31, 2016
Brown & Root JV [Member]
Dec. 31, 2016
EPIC Piping [Member]
Equity In Earnings of Unconsolidated Affiliates [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investments
$ 369 
$ 281 
$ 64 
$ 91 
$ (41)
$ (56)
$ (6)
$ 1 
$ 0 
$ 61 
$ 12 
$ (8)
$ 2 
$ (8)
$ 400 
$ 362 
$ 6 
$ 12 
$ (5)
$ (5)
$ 401 
$ 369 
$ 56 
$ 5 
Equity Method Investments And Variable Interest Entities Equity Method Investments and Variable Interest Entities (Related Party Disclosures) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Accounts Receivable, Related Parties
$ 10 
 
$ 22 
Costs and estimated earnings in excess of billings on uncompleted contracts
412 
 
416 
Transactions with Related Parties [Member]
 
 
 
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Revenue from Related Parties
85 
179 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
4 
 
1 
Billings in Excess of Cost
22 
 
41 
EPIC Piping LLC [Member]
 
 
 
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Related Parties Amount in Cost of Sales
3 
22 
 
Brown & Root JV [Member]
 
 
 
Schedule of Related Party Transactions Included In Our Consolidated Balance Sheets [Line Items]
 
 
 
Revenue from Related Parties
4 
13 
 
Related Party Transaction, Due from (to) Related Party
$ 5 
 
$ 11 
Pension and Postretirement Plans (Components Of Net Periodic Benefit Cost) (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Domestic Plan [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 0 
$ 0 
$ 0 
$ 0 
Interest cost
1 
1 
2 
2 
Expected return on plan assets
0 
(1)
(2)
(2)
Recognized actuarial loss
0 
0 
1 
1 
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
1 
0 
1 
1 
Foreign Plan [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
1 
0 
1 
1 
Interest cost
13 
15 
39 
48 
Expected return on plan assets
(20)
(21)
(57)
(67)
Recognized actuarial loss
6 
7 
21 
21 
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
0 
1 
4 
3 
Contributions by employer
 
 
28 
 
Estimated future employer contributions in next fiscal year
$ 37 
 
$ 37 
 
Equity Method Investments And Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Variable Interest Entity, Not Primary Beneficiary [Member] |
Affinity Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
$ 25 
$ 12 
Unconsolidated VIEs, Total liabilities
3 
3 
Maximum exposure to loss
25 
12 
Variable Interest Entity, Not Primary Beneficiary [Member] |
Aspire Defence Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
15 
14 
Unconsolidated VIEs, Total liabilities
114 
107 
Maximum exposure to loss
15 
14 
Variable Interest Entity, Not Primary Beneficiary [Member] |
Ichthys LNG Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
133 
124 
Unconsolidated VIEs, Total liabilities
18 
33 
Maximum exposure to loss
133 
124 
Variable Interest Entity, Not Primary Beneficiary [Member] |
U.K. Road Projects [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
35 
30 
Unconsolidated VIEs, Total liabilities
10 
9 
Maximum exposure to loss
35 
30 
Variable Interest Entity, Not Primary Beneficiary [Member] |
EBIC Ammonia Plant [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Unconsolidated VIEs, Total assets
38 
34 
Unconsolidated VIEs, Total liabilities
2 
2 
Maximum exposure to loss
25 
22 
Variable Interest Entity, Primary Beneficiary [Member] |
Gorgon LNG Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
20 
28 
Consolidated VIEs, Total liabilities
55 
60 
Variable Interest Entity, Primary Beneficiary [Member] |
Escravos Gas-To-Liquids Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
8 
11 
Consolidated VIEs, Total liabilities
16 
22 
Variable Interest Entity, Primary Beneficiary [Member] |
Fasttrax Limited Project [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Consolidated VIEs, Total assets
61 
56 
Consolidated VIEs, Total liabilities
$ 51 
$ 50 
Debt And Other Credit Facilities (Details) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2017
Debt To EBITDA Ratio [Member]
Sep. 30, 2017
Maximum [Member]
Revolving Credit Facility [Member]
Sep. 30, 2017
AdditionalAggregateCommitmentsIncreaseLimit [Member]
Sep. 30, 2017
Revolving Credit Facility [Member]
Sep. 25, 2015
Revolving Credit Facility [Member]
Sep. 30, 2017
Revolving Credit Facility [Member]
Maximum [Member]
Sep. 30, 2017
Revolving Credit Facility [Member]
Minimum [Member]
Sep. 30, 2017
Letters Of Credit, Surety Bonds And Bank Guarantees [Member]
Credit Agreement [Member]
Dec. 31, 2017
Scenario, Forecast [Member]
Debt To EBITDA Ratio [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, description
 
 
 
 
 
 
 
Amounts drawn under the Credit Agreement will bear interest at variable rates, per annum, based either on (i)?the LIBOR plus an applicable margin of 1.375% to 1.75%, or (ii)?a base rate plus an applicable margin of 0.375% to 0.75%, with the base rate equal to the highest of (a)?reference bank?s publicly announced base rate, (b)?the Federal Funds Rate plus 0.5%, or (c)?LIBOR plus 1%. The amount of the applicable margin to be applied will be determined by the Company?s ratio of consolidated debt to consolidated EBITDA for the prior four fiscal quarters as defined in the Credit Agreement. The Credit Agreement provides for fees on letters of credit issued under the Credit Agreement at a rate equal to the applicable margin for LIBOR-based loans, except for performance letters of credit, which are priced at 50% of such applicable margin. KBR pays an annual issuance fee of 0.125% of the face amount of a letter of credit and pays a commitment fee of 0.225% to 0.25%,?per annum, on any unused portion of the commitment under the Credit Agreement based on the Company's consolidated leverage ratio. 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
 
$ 500,000,000 
 
$ 1,000,000,000 
 
 
 
 
LIBOR applicable margin
 
 
 
 
 
1.75% 
 
 
 
 
1.375% 
 
 
Base rate applicable margin
 
 
 
 
 
 
 
 
 
0.75% 
0.375% 
 
 
Percent added to federal fund rate
 
 
 
 
 
 
 
0.50% 
 
 
 
 
 
Percent added to LIBOR
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
Percentage of LIBOR applicable margin for performance letters of credit
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
Letter of credit fronting commitments
 
 
 
 
 
 
 
 
 
 
0.225% 
 
 
Letter of credit fee charged on issuance
 
 
 
 
 
 
 
0.125% 
 
 
 
 
 
Letters of credit, outstanding amount
 
 
 
 
 
 
 
 
 
 
 
35,000,000 
 
Borrowings on revolving credit agreement
 
0 
700,000,000 
700,000,000 
 
 
 
 
 
 
 
 
 
Revolving credit agreement
470,000,000 
470,000,000 
 
650,000,000 
 
 
 
 
 
 
 
 
 
Interest Expense, Debt
4,000,000 
11,000,000 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility terms
 
 
 
 
3.5 to 1 
 
 
 
 
 
 
 
3.25 to 1 
Minimum consolidated net worth base in addition to certain percentage of consolidated net income and increase in shareholders' equity attributable to the sale of equity interests
 
 
 
 
 
 
 
1,200,000,000 
 
 
 
 
 
Consolidated net income percentage
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
Increase in shareholders' equity attributable to the sale of equity securities percentage
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
Principal amount of of additional indebtedness parent company may incur under Credit Agreement provisions
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
Principal amount of unsecured indebtedness our subsidiaries may incur under Credit Agreement provisions
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
Base dollar amount of share and equity repurchases cap
 
 
 
 
 
 
 
 
 
1,100,000,000 
 
 
 
Remaining availability under equity repurchase distribution cap
 
 
 
 
 
 
 
$ 968,000,000 
 
 
 
 
 
Debt And Other Credit Facilities (Consolidated amount of non-recourse project-finance debt of a VIE) (Details)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2017
Class A 3.5% Index Linked Bonds [Member]
Sep. 30, 2017
Class B 5.9% Fixed Rate Bonds [Member]
Sep. 30, 2017
Minimum [Member]
Sep. 30, 2017
Maximum [Member]
Sep. 30, 2017
United Kingdom, Pounds
GBP (£)
Sep. 30, 2017
United Kingdom, Pounds
Class A 3.5% Index Linked Bonds [Member]
GBP (£)
Sep. 30, 2017
United Kingdom, Pounds
Class B 5.9% Fixed Rate Bonds [Member]
GBP (£)
Sep. 30, 2017
United States of America, Dollars
Class A 3.5% Index Linked Bonds [Member]
USD ($)
Sep. 30, 2017
United States of America, Dollars
Class B 5.9% Fixed Rate Bonds [Member]
USD ($)
Sep. 30, 2017
Nonrecourse Project Finance Debt [Member]
Sep. 30, 2017
Nonrecourse Project Finance Debt [Member]
United Kingdom, Pounds
GBP (£)
Sep. 30, 2017
Fasttrax Limited Project [Member]
Nonrecourse Project Finance Debt [Member]
United States of America, Dollars
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
Number Of Heavy Equipment Transporters
 
 
 
 
 
 
 
 
 
 
 
91 
 
 
Number Of Heavy Equipment Transporters Term Period
 
 
 
 
 
 
 
 
 
 
 
22 years 
 
 
Nonrecourse project debt
$ 32.0 
$ 34.0 
 
 
 
 
£ 84.9 
 
 
 
 
 
 
$ 120.0 
Non Recourse Debt Bridge Financing
 
 
 
 
 
 
 
 
 
 
 
 
12.2 
17.0 
Guaranteed secured bonds, percentage
 
 
3.50% 
5.90% 
 
 
 
 
 
 
 
 
 
 
Secured bonds
 
 
 
 
 
 
 
£ 56.0 
£ 16.7 
$ 79.0 
$ 24.0 
 
 
 
Subordinated notes payable, interest rate
 
 
 
 
11.25% 
16.00% 
 
 
 
 
 
 
 
 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Income Tax Disclosure [Abstract]
 
 
 
 
 
Effective tax rate on income from operations
24.00% 
17.00% 
23.00% 
43.00% 
 
Effective income tax rate, estimated
 
 
23.00% 
 
 
U.S. statutory federal rate, expected (benefit) provision
 
 
35.00% 
 
 
Deferred Tax Assets, Valuation Allowance
$ 512 
 
$ 512 
 
$ 542 
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount
(11)
5 
(30)
(1)
 
Liability for Uncertain Tax Positions, Noncurrent
$ 263 
 
$ 263 
 
$ 261 
U.S. Government Matters (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
All Defense Contract Audit Agency Audit Issues [Member]
Dec. 31, 2016
All Defense Contract Audit Agency Audit Issues [Member]
Sep. 30, 2017
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member]
Dec. 31, 2016
Reserve For Potentially Disallowable Costs Incurred Under Government Contracts [Member]
Sep. 30, 2017
Private Security [Member]
Sep. 30, 2017
First Kuwaiti Trading Company Arbitration [Member]
Dec. 31, 2014
First Kuwaiti Trading Company Arbitration [Member]
Dec. 31, 2009
Sodium Dichromate Litigation [Member]
lawsuits
Sep. 30, 2017
qui tams [Member]
claim
lawsuits
Mar. 27, 2011
Howard qui tam [Member]
Sep. 30, 2017
DOJFCA [Member]
defendent
Sep. 30, 2017
Minimum [Member]
Burn Pit Litigation [Member]
lawsuits
Sep. 30, 2017
Pay-When-Paid Terms [Member]
First Kuwaiti Trading Company Arbitration [Member]
United States Government Contract Work [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract Termination Claims, US Federal Government
 
 
 
 
$ 171 
 
 
 
$ 56 
 
 
 
 
 
 
 
 
Contracts Revenue
1,034 
1,073 
3,234 
3,078 
88 
 
 
 
11 
 
 
 
 
 
 
 
 
Government Contract Receivable
 
 
 
 
83 
83 
 
 
45 
 
 
 
 
 
 
 
 
Total Amount Of Payments Withheld From Subcontractors As Result Of Disapproved Costs Related To Dcaa Form 1 Issued To Enterprise
 
 
 
 
26 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Doubtful Accounts Receivable
 
 
 
 
 
 
56 
64 
 
 
 
 
 
 
 
 
 
Damages awarded, value
 
 
 
 
 
 
 
 
 
17 
 
 
 
 
 
 
 
AmountOwedToSubcontractor
 
 
 
 
 
 
 
 
 
32 
 
 
 
 
 
 
 
PaymentsOnContractWork
 
 
 
 
 
 
 
 
 
26 
19 
 
 
 
 
 
4 
Loss Contingency, Pending Claims, Number
 
 
 
 
 
 
 
 
 
 
 
5 
 
 
 
60 
 
qui tam government joined
 
 
 
 
 
 
 
 
 
 
 
 
1 
 
 
 
 
Percent of Legal Fees Billable to the U.S. Government
 
 
 
 
 
 
 
 
 
 
 
 
80.00% 
 
 
 
 
Legal Fees
 
 
 
 
 
 
 
 
 
 
 
 
11 
 
 
 
 
Loss Contingency, Number of Active Claims
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
Loss Contingency, Estimate of Possible Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 628 
 
 
 
Loss Contingency, Number of Defendants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
 
Other Commitments And Contingencies (Other) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended
Apr. 6, 2017
Jun. 30, 2017
Sep. 30, 2017
Dec. 31, 2009
Pemex [Member]
Sep. 30, 2016
Pemex [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
Amount awarded to enterprise in arbitration
 
 
 
$ 351 
 
Amount of counterclaims awarded to project owner in arbitration
 
 
 
6 
 
Amount of judgment awarded to enterprise
 
 
 
 
465 
Litigation settlement
435 
 
 
 
 
Gain (Loss) Related to Litigation Settlement
 
$ 35 
$ 35 
 
 
Shareholders' Equity (Shareholders' Equity Activities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
$ 745 
$ 1,052 
Share-based compensation
 
 
7 
14 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
(34)
(34)
Repurchases of common stock
 
 
(52)
(2)
Issuance of ESPP shares
 
 
4 
3 
Distributions to noncontrolling interests
 
 
(1)
(9)
Net income (loss)
47 
(57)
164 
35 
Other comprehensive income, net of tax
7 
15 
25 
38 
Ending Balance
858 
1,097 
858 
1,097 
Additional Paid-in Capital [Member]
 
 
 
 
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
2,088 
2,070 
Share-based compensation
 
 
7 
14 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
0 
0 
Repurchases of common stock
 
 
0 
0 
Issuance of ESPP shares
 
 
0 
(1)
Distributions to noncontrolling interests
 
 
0 
0 
Net income (loss)
 
 
0 
0 
Other comprehensive income, net of tax
 
 
0 
0 
Ending Balance
2,095 
2,083 
2,095 
2,083 
Retained Earnings [Member]
 
 
 
 
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
488 
595 
Share-based compensation
 
 
0 
0 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
(34)
(34)
Repurchases of common stock
 
 
0 
0 
Issuance of ESPP shares
 
 
0 
0 
Distributions to noncontrolling interests
 
 
0 
0 
Net income (loss)
 
 
159 
26 
Other comprehensive income, net of tax
 
 
0 
0 
Ending Balance
613 
587 
613 
587 
Treasury Stock [Member]
 
 
 
 
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
(769)
(769)
Share-based compensation
 
 
0 
0 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
0 
0 
Repurchases of common stock
 
 
(52)
(2)
Issuance of ESPP shares
 
 
4 
4 
Distributions to noncontrolling interests
 
 
0 
0 
Net income (loss)
 
 
0 
0 
Other comprehensive income, net of tax
 
 
0 
0 
Ending Balance
(817)
(767)
(817)
(767)
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
 
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
(1,050)
(831)
Share-based compensation
 
 
0 
0 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
0 
0 
Repurchases of common stock
 
 
0 
0 
Issuance of ESPP shares
 
 
0 
0 
Distributions to noncontrolling interests
 
 
0 
0 
Net income (loss)
 
 
0 
0 
Other comprehensive income, net of tax
 
 
26 
39 
Ending Balance
(1,024)
(792)
(1,024)
(792)
Noncontrolling Interests [Member]
 
 
 
 
Shareholders Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
(12)
(13)
Share-based compensation
 
 
0 
0 
Tax benefit increase related to share-based plans
 
 
 
0 
Dividends declared to shareholders
 
 
0 
0 
Repurchases of common stock
 
 
0 
0 
Issuance of ESPP shares
 
 
0 
0 
Distributions to noncontrolling interests
 
 
(1)
(9)
Net income (loss)
 
 
5 
9 
Other comprehensive income, net of tax
 
 
(1)
(1)
Ending Balance
$ (9)
$ (14)
$ (9)
$ (14)
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Accumulated changes in fair value of derivatives tax
$ 0 
$ 0 
Accumulated foreign currency translation adjustments tax
5 
3 
Accumulated pension and post-retirement benefit plans tax
249 
204 
Beginning balance
(1,050)
(831)
Other comprehensive income adjustments before reclassifications
9 
22 
Amounts reclassified from accumulated other comprehensive income
17 
17 
Ending balance
(1,024)
(792)
Accumulated foreign currency translation adjustments, net of tax of $5 and $3
(254)
(247)
Pension and post-retirement benefits, net of tax of $249 and $204
(767)
(542)
Fair value of derivatives, net of tax of $0 and $0
(3)
(3)
Total accumulated other comprehensive loss
(1,024)
(792)
Accumulated foreign currency translation adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(262)
(269)
Other comprehensive income adjustments before reclassifications
8 
22 
Amounts reclassified from accumulated other comprehensive income
0 
0 
Ending balance
(254)
(247)
Total accumulated other comprehensive loss
(254)
(247)
Accumulated pension liability adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(785)
(560)
Other comprehensive income adjustments before reclassifications
0 
0 
Amounts reclassified from accumulated other comprehensive income
18 
18 
Ending balance
(767)
(542)
Total accumulated other comprehensive loss
(767)
(542)
Changes in fair value of derivatives
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance
(3)
(2)
Other comprehensive income adjustments before reclassifications
1 
0 
Amounts reclassified from accumulated other comprehensive income
(1)
(1)
Ending balance
(3)
(3)
Total accumulated other comprehensive loss
$ (3)
$ (3)
Shareholders' Equity (Reclassification out of AOCI) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Amortization of actuarial loss
$ 63 
$ (68)
$ 214 
$ 62 
Tax benefit
(16)
11 
(50)
(27)
Accumulated pension liability adjustments |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Amortization of actuarial loss
 
 
(22)
(22)
Tax benefit
 
 
4 
4 
Net pension and post-retirement benefits
 
 
$ (18)
$ (18)
Share Repurchases (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Feb. 25, 2014
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
Number of shares repurchased under the authorization
1,748 
15,608 
3,512,257 
161,153 
 
Treasury Stock Acquired, Average Cost Per Share
$ 15.64 
$ 13.76 
$ 14.93 
$ 13.98 
 
Stock Repurchased During Period, Value
$ 0 
$ 0 
$ 52 
$ 2 
 
Share Repurchase Program Twenty Fourteen [Member]
 
 
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
Stock Repurchase Program, Authorized Amount
 
 
 
 
350 
Number of shares repurchased under the authorization
0 
0 
3,345,366 
0 
 
Treasury Stock Acquired, Average Cost Per Share
 
 
$ 14.93 
 
 
Stock Repurchased During Period, Value
0 
0 
50 
0 
 
Shares Withheld to Cover [Member]
 
 
 
 
 
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
Number of shares repurchased under the authorization
1,748 
15,608 
166,891 
161,153 
 
Treasury Stock Acquired, Average Cost Per Share
$ 15.64 
$ 13.76 
$ 15.08 
$ 13.98 
 
Stock Repurchased During Period, Value
$ 0 
$ 0 
$ 2 
$ 2 
 
Income Per Share (Schedule Of Basic And Diluted Weighted Average Common Shares Outstanding) (Details)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Basic weighted average common shares outstanding
140 
142 
141 
142 
Stock options and restricted shares
0 
0 
0 
0 
Diluted weighted average common shares outstanding
140 
142 
141 
142 
Income Per Share (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted
$ 0.3 
$ 0.0 
$ 1.1 
$ 0.2 
Antidilutive weighted average shares
1.9 
2.9 
2.2 
3.2 
Financial Instruments And Risk Management Financial Instruments And Risk Management (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Maximum length of time hedged in balance sheet hedge
10 days 
 
Maximum length of time hedged in cash flow hedge
34 months 
 
Balance sheet hedges - fair value
$ 4 
$ (7)
Balance sheet position - remeasurement
(16)
27 
Net
(12)
20 
Balance Sheet Hedge [Member]
 
 
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Derivative, notional amount
58 
 
Cash Flow Hedging [Member]
 
 
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]
 
 
Cash flow hedge
$ 25