Fluor 2013 Annual Report Download - page 136

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The company’s obligations for minimum rentals under non-cancelable operating leases are as follows:
Year Ended December 31, (in thousands)
2014 $54,500
2015 52,200
2016 41,500
2017 35,000
2018 23,300
Thereafter 67,900
12. Noncontrolling Interests
The company applies the provisions of ASC 810-10-45, which establishes accounting and reporting
standards for ownership interests in subsidiaries held by parties other than the parent, the amount of
consolidated net earnings 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.
As required by ASC 810-10-45, the company has separately disclosed on the face of the Consolidated
Statement of Earnings for all periods presented the amount of net earnings attributable to the company
and the amount of net earnings attributable to noncontrolling interests. For the years ended December 31,
2013, 2012 and 2011, net earnings attributable to noncontrolling interests were $155 million, $115 million
and $104 million, respectively. Income taxes associated with earnings attributable to noncontrolling
interests were immaterial in all periods presented. Distributions paid to noncontrolling interests were
$125 million, $101 million and $104 million for the years ended December 31, 2013, 2012 and 2011,
respectively. Capital contributions by noncontrolling interests were $2 million, $3 million and $23 million
for the years ended December 31, 2013, 2012 and 2011, respectively.
13. Contingencies and Commitments
The company and certain of its subsidiaries are subject to litigation, claims, performance guarantees,
and other commitments and contingencies arising in the ordinary course of business, including matters
related to government contracting and environmental regulations. The company currently does not expect
that the ultimate resolution of these matters will have a material adverse effect on its consolidated
financial position or results of operations.
As of December 31, 2013 and 2012, several matters were in the litigation and dispute resolution
process. The following discussion provides a background and current status of these matters:
Greater Gabbard Offshore Wind Farm Project
The company was involved in a dispute in connection with the Greater Gabbard Project, a $1.8 billion
lump-sum project to provide engineering, procurement and construction services for the client’s offshore
wind farm project in the United Kingdom. The primary dispute was resolved in November 2012 resulting
in a pre-tax charge against the company’s earnings in the fourth quarter of 2012.
The client had also filed a counterclaim against the company, seeking to recover up to $100 million for
past and future costs associated with, among other things, monitoring certain monopiles and transition
pieces for alleged defects. The counterclaim and all related disputes were resolved during the second
quarter of 2013, with no material effect on earnings. This concluded the company’s involvement in the
completion of the project.
F-37