Fluor 2011 Annual Report Download - page 121

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
no significant concentration exists in any one rating category or industry. Government securities include
inflation-indexed U.S. treasury notes and international and U.S. government bonds. Corporate bonds and
government securities are valued based on evaluated prices, which are determined from a compilation of
primarily observable market information, broker quotes in non-active markets or similar assets. Securities
not traded on the last business day are valued at the last reported bid price. As of December 31, 2011, the
investments in corporate bonds and government securities held by the U.S. plan were primarily
concentrated in U.S. issuers.
Other is primarily comprised of common collective trusts, foreign exchange forward contracts and
insurance contracts. Common collective trusts hold underlying investments in commodities, foreign
exchange foreign contracts and real estate. Common collective trusts with underlying investments in real
estate are classified as Level 3 investments. Insurance contracts are valued based on actuarial assumptions
and are also classified as Level 3 investments.
Liabilities primarily consist of foreign currency exchange contracts and obligations to return collateral
under securities lending arrangements. The estimated fair value of foreign exchange forward contracts is
determined from broker quotes. The estimated fair value of obligations to return collateral under
securities lending arrangements are determined based on the last traded price of the underlying securities
held as collateral.
The company measures and reports assets and liabilities at fair value utilizing pricing information
received from third-party pricing services. The company performs procedures to verify the reasonableness
of pricing information received for significant assets and liabilities classified as Level 2.
F-20