Fluor 2013 Annual Report Download - page 135

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
VDI units as of December 31, 2013 was $19 million, which is expected to be recognized over a weighted-
average period of 2.0 years.
10. Earnings Per Share
Basic earnings per share (‘‘EPS’’) is calculated by dividing net earnings attributable to Fluor
Corporation by the weighted average number of common shares outstanding during the period. Potentially
dilutive securities include employee stock options, restricted stock units and shares, VDI units and the
1.5% Convertible Senior Notes (see ‘‘7. Financing Arrangements’’ above for information about the
Convertible Senior Notes). Diluted EPS reflects the assumed exercise or conversion of all dilutive
securities using the treasury stock method.
The calculations of the basic and diluted EPS for the years ended December 31, 2013, 2012 and 2011
under the treasury stock method are presented below:
Year Ended December 31,
(in thousands, except per share amounts) 2013 2012 2011
Net earnings attributable to Fluor Corporation $667,711 $456,330 $593,728
Basic EPS:
Weighted average common shares outstanding 162,566 167,121 172,501
Basic earnings per share $ 4.11 $ 2.73 $ 3.44
Diluted EPS:
Weighted average common shares outstanding 162,566 167,121 172,501
Diluted effect:
Employee stock options, restricted stock units and shares and VDI
units 1,383 1,024 1,393
Conversion equivalent of dilutive convertible debt 405 346 670
Weighted average diluted shares outstanding 164,354 168,491 174,564
Diluted earnings per share $ 4.06 $ 2.71 $ 3.40
Anti-dilutive securities not included above 1,436 1,557 824
During the years ended December 31, 2013, 2012 and 2011, the company repurchased and canceled
2,591,557, 7,409,200 and 10,050,000 shares of its common stock, respectively, under its stock repurchase
program for $200 million, $389 million, and $640 million, respectively.
11. Lease Obligations
Net rental expense amounted to approximately $206 million, $181 million and $166 million in the
years ended December 31, 2013, 2012 and 2011, respectively. The company’s lease obligations relate
primarily to office facilities, equipment used in connection with long-term construction contracts and other
personal property. Net rental expense in 2013 was higher compared to 2012, primarily due to an increase in
rental equipment required to support project execution activities in the Industrial & Infrastructure
segment. Net rental expense in 2012 was higher compared to 2011, primarily due to an increase in rental
equipment required to support project execution activities in the Government segment.
F-36