Fluor 2014 Annual Report Download - page 122

FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The company measures and reports assets and liabilities at fair value utilizing pricing information
received from third parties. The company performs procedures to verify the reasonableness of pricing
information received for significant assets and liabilities classified as Level 2.
The following table presents, for each of the fair value hierarchy levels required under ASC 820-10,
the company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31,
2014 and 2013:
December 31, 2014 December 31, 2013
Fair Value Hierarchy Fair Value Hierarchy
(in thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets:
Cash and cash equivalents(1) $ 14,419 $14,419 $ — $ — $ 50,081 $50,081 $ — $ —
Marketable securities, current(2) 80,706 — 80,706 — 111,333 — 111,333 —
Deferred compensation trusts(3) 94,893 94,893 — — 87,507 87,507 — —
Marketable securities,
noncurrent(4) 343,644 — 343,644 — 275,402 — 275,402 —
Derivative assets(5)
Commodity contracts 561 — 561 — 438 — 438 —
Foreign currency contracts 180 — 180 — 855 — 855 —
Liabilities:
Derivative liabilities(5)
Commodity contracts $ 2,290 $ — $ 2,290 $ — $ 3 $ — $ 3 $ —
Foreign currency contracts 4,392 — 4,392 — 967 — 967 —
(1) Consists primarily of registered money market funds valued at fair value. These investments represent the net
asset value of the shares of such funds as of the close of business at the end of the period.
(2) Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities and
commercial paper with maturities of less than one year that are valued based on pricing models, which are
determined from a compilation of primarily observable market information, broker quotes in non-active markets
or similar assets.
(3) Consists primarily of registered money market funds and an equity index fund valued at fair value. These
investments, which are trading securities, represent the net asset value of the shares of such funds as of the close
of business at the end of the period based on the last trade or official close of an active market or exchange.
(4) Consists of investments in U.S. agency securities, U.S. Treasury securities and corporate debt securities with
maturities ranging from one year to three years that are valued based on pricing models, which are determined
from a compilation of primarily observable market information, broker quotes in non-active markets or similar
assets.
(5) See ‘‘7. Derivatives and Hedging’’ for the classification of commodity and foreign currency contracts in the
Consolidated Balance Sheet. Commodity and foreign currency contracts are estimated using standard pricing
models with market-based inputs, which take into account the present value of estimated future cash flows.
All of the company’s financial instruments carried at fair value are included in the table above. All of
the above financial instruments are available-for-sale securities except for those held in the deferred
compensation trusts (which are trading securities) and derivative assets and liabilities. The company has
determined that there was no other-than-temporary impairment of available-for-sale securities with
unrealized losses, and the company expects to recover the entire cost basis of the securities. The available-
for-sale securities are made up of the following security types as of December 31, 2014: money market
funds of $14 million, U.S. agency securities of $73 million, U.S. Treasury securities of $107 million and
corporate debt securities of $245 million. As of December 31, 2013, available-for-sale securities consisted
of money market funds of $50 million, U.S. agency securities of $119 million, U.S. Treasury securities of
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