Fluor 2014 Annual Report Download - page 76

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U.S. plan as of December 31, 2014. Plan assets exceeded the accumulated benefit obligation for each of the
company’s non-U.S plans as of December 31, 2014 and 2013 and for the U.S. plan as of December 31,
2013.
In May 2014, NuScale entered into a Cooperative Agreement establishing the terms and conditions of
a multi-year funding award totaling $217 million under the DOE’s Small Modular Reactor Licensing
Technical Support Program. For further discussion of the Cooperative Agreement, see ‘‘Power’’ above.
The loss from discontinued operations, discussed above in ‘‘Results of Operations’’, did not have a
material impact on the company’s cash flows during 2014. In October 2014, the company entered into a
settlement agreement with counsel for a number of plaintiffs, and in January 2015, the company paid
approximately $300 million pursuant to the settlement agreement. See Note 14 of the Notes to
Consolidated Financial Statements for further discussion of this matter.
Investing Activities
Cash utilized by investing activities amounted to $199 million, $235 million and $14 million during
2014, 2013 and 2012, respectively. The primary investing activities included purchases, sales and maturities
of marketable securities; capital expenditures; disposals of property, plant and equipment; business
acquisitions; and investments in and sales of partnerships and joint ventures. Investing activities in 2013
also included the consolidation of a VIE that had previously been accounted for using the proportionate
consolidation method in which cash for this VIE was not required to be consolidated.
The company holds cash in bank deposits and marketable securities which are governed by the
company’s investment policy. This policy focuses on, in order of priority, the preservation of capital,
maintenance of liquidity and maximization of yield. These investments include money market funds which
invest in U.S. Government-related securities, bank deposits placed with highly-rated financial institutions,
repurchase agreements that are fully collateralized by U.S. Government-related securities, high-grade
commercial paper and high quality short-term and medium-term fixed income securities. During 2014 and
2012, proceeds from sales and maturities of marketable securities exceeded purchases of such securities by
$9 million and $143 million, respectively. During 2013, purchases of marketable securities exceeded
proceeds from sales and maturities by $10 million. The company held combined current and noncurrent
marketable securities of $449 million and $461 million as of December 31, 2014 and 2013, respectively.
Capital expenditures of $325 million, $288 million and $255 million during 2014, 2013 and 2012,
respectively, primarily related to construction equipment associated with equipment operations in the
Global Services segment, as well as expenditures for land and facilities and investments in information
technology. Proceeds from the disposal of property, plant and equipment of $106 million, $74 million and
$102 million during 2014, 2013 and 2012, respectively, primarily related to the disposal of construction
equipment associated with the equipment operations in the Global Services segment.
During 2014, the company sold its interest in two joint ventures in the Industrial & Infrastructure
segment for $44 million. The company had a 10 percent interest in both joint ventures and accounted for
these investments using the equity method. Investing activities in 2012 included proceeds of $55 million
from the sale of the company’s unconsolidated interest in a telecommunications company located in the
United Kingdom.
During 2013, the company paid $15 million to acquire a Virginia-based construction company and
$8 million to acquire an Australian-based company that specializes in fabrication and pressure welding.
During 2012, the company paid $19 million to acquire an equipment company in Mozambique. The
company continues to make investments in partnerships or joint ventures primarily for the execution of
single contracts or projects. Investments in unconsolidated partnerships and joint ventures were
$39 million, $27 million and $31 million in 2014, 2013 and 2012, respectively.
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