Fluor 2013 Annual Report Download - page 141

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
included assets of $119 million and liabilities of $115 million for Fluor-Lane 95. As of December 31, 2012,
the company’s financial statements included assets of $80 million and liabilities of $68 million for
Fluor-Lane 95.
The company has also evaluated its interest in 95 Express Lanes, LLC and has determined that it is
not the primary beneficiary. Based on contractual documents, the company’s maximum exposure to loss
relating to its investment in Fluor-Transurban is its future funding commitment of $9 million, plus its
investment balance of $19 million. The company will never have repayment obligations associated with any
of the debt because it is non-recourse to the joint venture members. The company accounts for its
ownership interest in 95 Express Lanes, LLC under the equity method of accounting.
Eagle P3 Commuter Rail Project
In August 2010, the company was awarded its $1.7 billion share of the Eagle P3 Commuter Rail
Project in the Denver metropolitan area. The project is a public-private partnership between the Regional
Transportation District in Denver, Colorado (‘‘RTD’’) and Denver Transit Partners (‘‘DTP’’), a wholly-
owned subsidiary of Denver Transit Holdings LLC (‘‘DTH’’), a joint venture in which the company has a
10 percent interest, with two additional partners each owning a 45 percent interest. Under the agreement,
RTD owns and oversees the addition of railways, facilities and rolling stock for three new commuter and
light rail corridors in the Denver metropolitan area. RTD is funding the construction of the railways and
facilities through the issuance of $398 million of private activity bonds, as well as from various other
sources, including federal grants. RTD advanced the proceeds of the private activity bonds to DTP as a
loan that is non-recourse to the company and will be repaid to RTD over the life of the concession
agreement. DTP, as concessionaire, will design, build, finance, operate and maintain the railways, facilities
and rolling stock under a 35-year concession agreement. The company has determined that DTH is a VIE
for which the company is not the primary beneficiary. DTH is accounted for under the equity method of
accounting. Based on contractual documents, the company’s maximum exposure to loss relating to its
investments in DTH is limited to its future funding commitment of $5 million, plus the carrying value of its
investment of less than $1 million.
The construction of the railways and facilities is being performed through subcontract arrangements
by Denver Transit Systems (‘‘DTS’’) and Denver Transit Constructors (‘‘DTC’’), construction joint
ventures in which the company has an ownership interest of 50 percent and 40 percent, respectively. The
company has determined that DTS and DTC are VIEs for which the company is the primary beneficiary.
Therefore, the company consolidates the accounts of DTS and DTC in its financial statements. As of
December 31, 2013, the combined carrying values of the assets and liabilities of DTS and DTC were
$150 million and $72 million, respectively. As of December 31, 2012, the combined carrying values of the
assets and liabilities of DTS and DTC were $120 million and $79 million, respectively. The company has
provided certain performance guarantees on behalf of DTS.
Fluor SKM Joint Venture
In 2008, the Fluor SKM joint venture was awarded the initial program management, engineering and
construction management contract for the expansion of port, rail and mine facilities for BHP Billiton
Limited’s iron ore mining project in the Pilbara region of Western Australia. Fluor SKM is a joint venture
between Fluor Australia Pty Ltd and Sinclair Knight Merz (‘‘Fluor SKM’’) in which Fluor Australia Pty Ltd
has a 55 percent interest and Sinclair Knight Merz has the remaining 45 percent interest.
The company has evaluated its interest in Fluor SKM and has determined that the company is the
primary beneficiary. Accordingly, the company consolidates the accounts of Fluor SKM. For the years
ended December 31, 2013, 2012 and 2011, the company’s results of operations included revenue of
$1.8 billion, $3.4 billion and $1.8 billion, respectively. As of December 31, 2013, the carrying values of the
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