Fluor 2013 Annual Report Download - page 113

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The significant items reclassified out of AOCI and the corresponding location and impact on the
Consolidated Statement of Earnings are as follows:
Location in Consolidated Twelve Months Ended
(in thousands) Statements of Earnings December 31, 2013
Component of AOCI:
Defined benefit pension plan adjustments Various accounts(1) $(12,931)
Income tax benefit Income tax expense 4,849
Net of tax $ (8,082)
Unrealized gain (loss) on derivative contracts:
Commodity contracts and foreign
currency contracts Total cost of revenue $ (4,502)
Interest rate contracts Interest expense (1,678)
Income tax benefit Income tax expense 2,322
Net of tax: (3,858)
Less: Noncontrolling interests Net earnings attributable
to noncontrolling
interests 4
Net of tax and noncontrolling interests $ (3,854)
Unrealized gain on available-for-sale securities Corporate general and
administrative expense $ 202
Income tax expense Income tax expense (76)
Net of tax $ 126
(1) Defined benefit pension plan adjustments were reclassified primarily to total cost of revenue and
corporate general and administrative expense.
During 2013 and 2011, functional currency exchange rates for most of the company’s international
operations weakened against the U.S. dollar, resulting in unrealized translation losses. During 2012,
functional currency exchange rates for most of the company’s international operations strengthened
against the U.S. dollar, resulting in unrealized translation gains.
Recent Accounting Pronouncements
In January 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued ASU 2014-05, ‘‘Service
Concession Arrangements.’’ This ASU clarifies that, unless certain circumstances are met, operating
entities should not account for certain concession arrangements with public-sector entities as leases and
should not recognize the related infrastructure as property, plant and equipment. This ASU is effective for
interim and annual reporting periods beginning after December 15, 2014. Management does not expect the
adoption of ASU 2014-05 to have a material impact on the company’s financial position, results of
operations or cash flows.
In July 2013, the FASB issued ASU 2013-11, ‘‘Presentation of an Unrecognized Tax Benefit When a
Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.’’ This ASU
clarifies the financial statement presentation of unrecognized tax benefits in certain circumstances.
ASU 2013-11 is effective for interim and annual reporting periods beginning after December 15, 2013 and
should be applied prospectively to all unrecognized tax benefits that exist at the effective date.
F-14