Fluor 2001 Annual Report Download - page 40

FLUOR CORPORATION 2001 ANNUAL REPORT
charges include legal, audit and consulting fees, employment agree-
ment settlement costs, debt placement fees and other expenses of
the spin-off.
The assets and liabilities of the discontinued operations consisted
of the following:
December 31, December 31,
At Period End 2001 2000
(in thousands)
Accounts and notes receivable $ 47,996 $ 74,691
Inventories and other assets 54,272 152,008
Property, plant and equipment, net 106,683 187,843
Total assets of discontinued operations $208,951 $414,542
Accounts and notes payable $ 21,090 $ 34,028
Accrued and other liabilities 37,021 9,883
Total liabilities of discontinued operations $ 58,111 $ 43,911
BUSINESS INVESTMENTS AND ACQUISITIONS
From time to time, the company enters into investment arrange-
ments, including joint ventures, that are related to its engineering and
construction business. During 1999 through 2001, the majority of
these expenditures related to ongoing investments in an equity fund
that focuses on energy related projects and a number of smaller,
diversified ventures.
In June 2001, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No.141, “Business
Combinations” (SFAS 141). SFAS 141 requires that the purchase method
of accounting be used for all business combinations initiated after
June 30, 2001. SFAS 141 also includes guidance on the initial recog-
nition and measurement of goodwill and other intangible assets aris-
ing from business combinations completed after June 30, 2001.
BUSINESS DISPOSITIONS
During fiscal 2000, the company recorded a nonrecurring charge of
$19.3 million relating to the write-off of certain assets and the loss
on the sale of a European-based consulting business.
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows as shown in the Consolidated Statement of Cash Flows and
changes in operating assets and liabilities shown below include the
effects of discontinued operations on a consolidated basis, without
separate identification and classification of discontinued operations.
Securities with maturities of 90 days or less at the date of pur-
chase are classified as cash equivalents. Securities with maturities
beyond 90 days, when present, are classified as marketable securi-
ties and are carried at fair value.
The changes in operating assets and liabilities as shown in the Consolidated Statement of Cash Flows comprise:
Year Ended Two Months Ended
December 31, October 31, October 31, December 31, December 31,
2001 2000 1999 2000 1999
(in thousands) (unaudited)
(Increase) decrease in:
Accounts and notes receivable $ 57,355 $ (3,009) $ 25,972 $ (1,909) $(29,145)
Contract work in progress (28,406) (22,923) 180,698 72,985 10,034
Inventories 40,462 35,876 (49,473) (9,853) 8,969
Other current assets 80,186 (43,376) (16,054) (24,516) (62,115)
Increase (decrease) in:
Accounts payable (80,273) (108,616) (173,345) (47,161) (58,163)
Advances from affiliate 374,816 51,433 113,379 (11,724) (27,232)
Advance billings on contracts 113,003 (169,501) 18,557 (84,633) 53,906
Accrued liabilities $(116,780) (27,965) (8,906) 38,709 23,694
(Increase) decrease in operating assets and liabilities $ 440,363 $(288,081) $ 90,828 $ (68,102) $(80,052)
Cash paid during the period for:
Interest $ 30,072 $ 60,455 $ 47,558 $ 6,023 $ 6,293
Income taxes $ 52,631 $ 58,637 $ 52,025 $ 3,099 $ 571
Supplemental disclosure of noncash activity:
Warrant issued $ 6,380 $ — $ — $ — $ —
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