Fluor 2013 Annual Report Download - page 118

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
U.S. and foreign earnings before taxes are as follows:
Year Ended December 31,
(in thousands) 2013 2012 2011
United States $ 303,070 $279,890 $ 346,016
Foreign 874,529 453,615 655,800
Total $1,177,599 $733,505 $1,001,816
Earnings before taxes in the United States increased in 2013 compared to 2012 principally due to
improved performance in the Oil & Gas segment. Earnings before taxes in foreign jurisdictions increased
in 2013 compared to 2012 because the prior year results included a pre-tax charge of an unexpected
adverse decision in the arbitration proceedings related to the company’s claim for additional compensation
on the Greater Gabbard Project. Earnings before taxes in the United States declined in 2012 compared to
2011 principally due to reduced contributions from several completed projects in the Power segment and
expenses associated with the company’s continued investment in NuScale. Earnings before taxes in foreign
jurisdictions decreased in 2012 compared to 2011 primarily due to the pre-tax charge on the Greater
Gabbard Project discussed above.
4. Retirement Benefits
The company sponsors contributory and non-contributory defined contribution retirement and
defined benefit pension plans for eligible employees worldwide. Domestic and international defined
contribution retirement plans are available to eligible salaried and craft employees. Contributions to
defined contribution retirement plans are based on a percentage of the employee’s eligible compensation.
The company recognized expense of $151 million, $144 million and $101 million associated with
contributions to its defined contribution retirement plans during 2013, 2012 and 2011, respectively. The
increase in company contributions during 2012 was principally the result of certain U.S. plan amendments
that increased employer contributions to the primary U.S. defined contribution plan and reduced
contributions to the U.S. defined benefit pension plan. The defined benefit pension plans are available to
domestic and international salaried employees and U.S. craft employees. Contributions to defined benefit
pension plans are at least the minimum amounts required by applicable regulations. Payments to retired
employees under these plans are generally based upon length of service and/or a percentage of qualifying
compensation.
Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans included the
following components:
U.S. Pension Plan Non-U.S. Pension Plans
Year Ended December 31, Year Ended December 31,
(in thousands) 2013 2012 2011 2013 2012 2011
Service cost $ 6,453 $ 5,957 $ 37,172 $ 15,390 $ 7,723 $ 8,219
Interest cost 29,100 33,293 36,136 32,176 32,630 34,502
Expected return on assets (30,975) (35,322) (40,430) (46,420) (41,949) (42,852)
Amortization of prior service
cost/(credits) 103 (114) (168) — — —
Recognized net actuarial loss 6,039 4,279 13,955 6,788 1,663 5,874
(Gain on curtailment)/loss on
settlement (309) — (618) — — 1,111
Net periodic pension expense $ 10,411 $ 8,093 $ 46,047 $ 7,934 $ 67 $ 6,854
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