Fluor 2004 Annual Report Download - page 80

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The revenues and earnings (loss) from discontinued operations are as follows:
Year Ended December 31
2003 2002
(in thousands)
Revenues:
Dealership operations $ 30,097 $ 155,909
Other equipment operations — 7,880
Temporary staffing operations 34 67,661
Total revenues $ 30,131 $ 231,450
Earnings (Loss) from Discontinued Operations:
Dealership operations $ 2,575 $ 4,214
Other equipment operations 117 213
Temporary staffing operations (404) (4,036)
Earnings from discontinued operations before tax 2,288 391
Provision for taxes 800 891
Earnings (loss) from discontinued operations $ 1,488 $ (500)
Loss on disposal before tax $ (7,386) $ (8,770)
Provision for taxes (tax benefit) 5,718 (2,909)
Loss on disposal $ (13,104) $ (5,861)
There have been no results of operations or assets or liabilities reported as discontinued operations for any period
subsequent to June 30, 2003.
Business Investments and Acquisitions
From time to time, the company enters into investment arrangements, including joint ventures, that are related to its
engineering and construction business.
In January 2003, the company acquired Del-Jen, Inc. (‘‘Del-Jen’’), a leading provider of services to the Departments of
Defense and Labor. The acquisition expanded the company’s ability to provide services in the government outsourcing
market and is reported in the company’s Government segment. Del-Jen was acquired for $33.3 million in cash. In connection
with this acquisition, the company recorded goodwill of $24.0 million and intangible assets of $3.2 million. The intangible
assets are being amortized over useful lives ranging from three to seven years.
In March 2003, the company acquired five specialty operations and maintenance (‘‘O&M’’) business groups from Philip
Services Corporation. The acquired businesses, which have been named Plant Performance Services (‘‘P2S’’), expand and
strengthen the O&M services business component of the Global Services segment and complement the company’s core
engineering, procurement, and construction business. The business groups were acquired for $21.2 million in cash. The seller
retained the working capital for these businesses. Acquisition cost in excess of tangible assets acquired amounted to
$11.5 million (goodwill of $8.7 million and intangible assets of $2.8 million). The intangible assets are being amortized over
useful lives ranging from one to five years.
In November 2003, the company acquired the International Division of J.A. Jones Construction Company (J.A. Jones),
which provides design-build and construction services to the U.S. Government. This acquisition further expanded the
company’s portfolio of government business. J.A. Jones has been renamed J.A. Jones International, LLC and is reported in
the Government segment. The acquisition did not have a material impact on the company’s consolidated financial statements.
In February 2004, Del-Jen acquired Trend Western Technical Corporation, a provider of logistics and operations services
to military bases in the United States and Guam for $33.0 million in cash. This acquisition further enhances the company’s
ability to serve the federal government marketplace and expands the service offering and the international reach of Del-Jen.
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