Fluor 2011 Annual Report Download - page 128

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
corporate debt securities of $235 million, and other securities of $5 million. As of December 31, 2010,
available-for-sale securities consisted of money market funds of $20 million, U.S. agency securities of
$155 million, U.S. Treasury securities of $59 million, corporate debt securities of $196 million, commercial
paper of $26 million and other securities of $8 million. The amortized cost of these available-for-sale
securities is not materially different than the fair value. During 2011, 2010 and 2009, proceeds from sales
and maturities of available-for-sale securities were $497 million, $522 million and $196 million,
respectively.
The estimated fair values of the company’s financial instruments that are not measured at fair value
on a recurring basis are as follows:
December 31, 2011 December 31, 2010
(in thousands) Carrying Value Fair Value Carrying Value Fair Value
Assets:
Cash and cash equivalents(1) $2,137,047 $2,137,047 $2,091,203 $2,091,203
Marketable securities, current(2) 23,593 23,593 52,087 52,087
Notes receivable, including noncurrent
portion 41,957 41,957 44,789 44,789
Liabilities:
3.375% Senior Notes 495,723 500,254 — —
1.5% Convertible Senior Notes 19,458 35,647 96,692 230,214
5.625% Municipal Bonds 17,777 17,901 17,759 18,039
(1) Consists of bank deposits.
(2) Consists of held-to-maturity time deposits.
Fair values were determined as follows:
• The carrying amounts of cash and cash equivalents, marketable securities, current and notes
receivable that are classified as current approximate fair value because of the short-term maturity of
these instruments. Amortized cost is not materially different than the fair value.
• Notes receivable classified as noncurrent are carried at net realizable value which approximates fair
value.
• The fair value of the 3.375 percent Senior Notes, 1.5 percent Convertible Senior Notes and
5.625 percent Municipal Bonds are estimated based on quoted market prices for the same or similar
issues or on the current rates offered to the company for debt of the same maturities.
In the first quarter of 2010, the company adopted FASB ASU 2010-06 ‘‘Improving Disclosure about
Fair Value Measurements’’ (ASC 820). ASU 2010-06 requires, on a prospective basis, additional
disclosures regarding significant transfers in and out of Level 1 and Level 2 fair value measurements, of
which the company had none for the years ended December 31, 2011 and 2010. ASU 2010-06 also clarifies
existing disclosure requirements related to the level of disaggregation of fair value measurements for each
class of assets and liabilities and disclosures about inputs and valuation techniques used to measure fair
value. The adoption of ASU 2010-06 did not have a material impact on the company’s disclosures in its
Consolidated Financial Statements.
6. Derivatives and Hedging
As of December 31, 2011, the company had total gross notional amounts of $736 million of foreign
exchange forward contracts and $12 million of commodity swap forward contracts outstanding relating to
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