Fluor 2014 Annual Report Download - page 138

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
•Industrial & Infrastructure. Segment profit for 2012 included pre-tax charges for the Greater
Gabbard Project totaling $416 million as well as a pre-tax gain of $43 million on the sale of the
company’s unconsolidated interest in a telecommunications company located in the United
Kingdom.
•Government. Segment profit in 2013 included pre-tax income of $57 million resulting from the
favorable resolution of various issues with the U.S. government related to 2001 - 2013. Of this
amount, $31 million was the result of resolving challenges as to the reimbursability of certain costs,
$11 million was the result of a favorable court ruling that resolved certain disputed items and
$15 million was related to the closeout and final disposition of other matters.
•Global Services. During 2014, 2013 and 2012, intercompany revenue for the Global Services
segment, excluded from the amounts shown above, was $531 million, $505 million and $462 million,
respectively.
•Power. Segment profit for 2014, 2013 and 2012 included the operations of NuScale, which are
primarily for research and development activities associated with the licensing and
commercialization of small modular nuclear reactor technology. In May 2014, NuScale entered into
a cost-sharing agreement with the DOE establishing the terms and conditions of a multi-year
funding award that allows certain qualified expenditures to be reimbursed. NuScale expenses
included in the determination of segment profit were $46 million, $53 million and $63 million
during 2014, 2013 and 2012, respectively. NuScale expenses for 2014 were reported net of qualified
reimbursable expenses of $38 million. The company recognizes the cost-sharing award with the
DOE, when earned, as a reduction of ‘‘Total cost of revenue’’ in the Consolidated Statement of
Earnings and, correspondingly, as an increase to segment profit in the period for which the related
costs are recognized, with the exception of certain pre-award costs which were recognized in the
second quarter of 2014 upon entering into the cost-sharing agreement.
Reconciliation of Segment Information to Consolidated Amounts
Year Ended December 31,
(in millions) 2014 2013 2012
Total segment profit $1,262.4 $1,209.9 $ 769.4
Corporate general and administrative expense (182.7) (175.1) (151.0)
Interest expense, net (11.4) (12.5) (0.5)
Earnings attributable to noncontrolling interests 136.6 155.3 115.6
Earnings from continuing operations before taxes $1,204.9 $1,177.6 $ 733.5
F-45