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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
accumulated other comprehensive income (loss). The after-tax components of accumulated other
comprehensive income (loss), net are as follows:
Accumulated
Foreign Unrealized Loss Pension and Other
Currency Unrealized Gain on Derivative Postretirement Comprehensive
Translation on Debt Securities Contracts Benefit Obligation Income (Loss), Net
(in thousands)
Balance at December 31, 2005 $ 9,103 $ — $ — $ — $ 9,103
Current period change 22,725 — — (180,160) (157,435)
Balance at December 31, 2006 31,828 — — (180,160) (148,332)
Current period change 56,600 — — 17,560 74,160
Balance at December 31, 2007 88,428 — — (162,600) (74,172)
Current period change (144,963) 331 (3,428) (134,737) (282,797)
Balance at December 31, 2008 $ (56,535) $331 $(3,428) $(297,337) $(356,969)
During 2008, exchange rates for functional currencies for most of the company’s international
operations weakened against the U.S. dollar, resulting in unrealized translation losses that are reflected in
the foreign currency translation component of other comprehensive loss. During 2007 and 2006, exchange
rates for functional currencies for most of the company’s international operations strengthened against the
U.S. dollar and unrealized translation gains occurred. Most of these unrealized gains or losses relate to
cash balances and operating assets and liabilities held in currencies other than the U.S. dollar.
Recent Accounting Pronouncements Not Yet Adopted
In December 2007, the FASB issued Statement of Financial Accounting Standard (‘‘SFAS’’)
No. 141(R), ‘‘Business Combinations’’ (‘‘SFAS 141(R)’’). SFAS 141(R) replaces SFAS 141 and establishes
principles and requirements for how an acquirer recognizes and measures the identifiable assets acquired,
the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired in its financial
statements. This standard is effective, on a prospective basis, for business combinations that occur in fiscal
years beginning after December 15, 2008.
In December 2007, the FASB issued SFAS No. 160, ‘‘Noncontrolling Interests in Consolidated
Financial Statements’’ (‘‘SFAS 160’’). SFAS 160 establishes accounting and reporting standards for
ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net
income attributable to the parent and to the noncontrolling interest, changes in a parent’s ownership
interest and the valuation of retained noncontrolling equity investments when a subsidiary is
deconsolidated. This standard is effective for fiscal years beginning after December 15, 2008. Management
does not expect the adoption of this standard to have a material impact on the company’s financial
position, results of operations or cash flows.
In March 2008, the FASB issued SFAS No. 161, ‘‘Disclosures about Derivative Instruments and
Hedging Activities’’ (‘‘SFAS 161’’). SFAS 161 is intended to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced disclosures to enable investors to better
understand their effects on an entity’s financial position, financial performance and cash flows. This
standard is effective for fiscal years beginning after November 15, 2008. Management does not expect the
adoption of this standard to have a material impact on the company’s financial position, results of
operations or cash flows.
In May 2008, the FASB issued Staff Position APB 14-1, ‘‘Accounting for Convertible Debt Instruments
That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)’’ (‘‘FSP APB 14-1’’).
FSP APB 14-1 requires the issuer of a convertible debt instrument to separately account for the liability
and equity components in a manner that reflects the entity’s nonconvertible debt borrowing rate when
interest cost is recognized in subsequent periods. FSP APB 14-1 is effective for financial statements issued
F-12