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Discontinued Operations - (Notes) | 9 Months Ended
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Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations In the third quarter of 2019, management committed to a plan to sell substantially all of its government and AMECO equipment businesses, while retaining two fixed-price projects previously included in the government segment and a few small international components of AMECO. The company expects to complete the sale of both businesses within one year. Management has concluded that these disposal groups have met the criteria to be classified as held for sale beginning in the third quarter of 2019, and as a result, the assets and liabilities of the government and AMECO businesses have been classified as held for sale on the Condensed Consolidated Balance Sheet as of September 30, 2019 and December 31, 2018. Management has also concluded that the operations of the disposal groups qualify for discontinued operations presentation because their disposal represents a strategic shift that will have a major effect on the company's financial results. Therefore, the results of the government and AMECO businesses that are expected to be sold have been presented as earnings from discontinued operations, net of tax, in the Condensed Consolidated Statement of Operations for all periods presented. On August 1, 2019, the company entered into a settlement agreement in connection with legal matters related to a previously divested business. The resulting gain on settlement as well as all legal fees associated with this matter were reported in earnings from discontinued operations, net of tax, in the Condensed Consolidated Statement of Operations and are included in "Other" in the tables below. Earnings from discontinued operations for the three months ended September 30, 2019 and 2018 were as follows:
|  | Three Months Ended September 30, 2019 |  | Three Months Ended September 30, 2018
(in thousands) |  | Government |  | AMECO |  | Other |  | Total |  | Government |  | AMECO |  | Other |  | Total
Revenue |  | $ | 718,153 |  |  | $ | 73,102 |  |  | $ | — |  |  | $ | 791,255 |  |  | $ | 754,543 |  |  | $ | 61,177 |  |  | $ | — |  |  | $ | 815,720 |
Cost of revenue |  | 693,750 |  |  | 70,546 |  |  | — |  |  | 764,296 |  |  | 718,219 |  |  | 60,068 |  |  | — |  |  | 778,287 |
Corporate general and administrative expense |  | 603 |  |  | 40 |  |  | (27,848 | ) |  | (27,205 | ) |  | 594 |  |  | 87 |  |  | 1,923 |  |  | 2,604 |
Interest expense (income), net |  | (123 | ) |  | (107 | ) |  | — |  |  | (230 | ) |  | (64 | ) |  | (125 | ) |  | — |  |  | (189 | )
Total cost and expenses |  | 694,230 |  |  | 70,479 |  |  | (27,848 | ) |  | 736,861 |  |  | 718,749 |  |  | 60,030 |  |  | 1,923 |  |  | 780,702 |
Earnings (loss) before taxes from discontinued operations |  | 23,923 |  |  | 2,623 |  |  | 27,848 |  |  | 54,394 |  |  | 35,794 |  |  | 1,147 |  |  | (1,923 | ) |  | 35,018 |
Income tax expense (benefit) |  | 5,570 |  |  | 580 |  |  | 6,438 |  |  | 12,588 |  |  | 23,067 |  |  | (852 | ) |  | (442 | ) |  | 21,773 |
Net earnings (loss) from discontinued operations |  | 18,353 |  |  | 2,043 |  |  | 21,410 |  |  | 41,806 |  |  | 12,727 |  |  | 1,999 |  |  | (1,481 | ) |  | 13,245 |
Less: Net earnings attributable to noncontrolling interests from discontinued operations |  | 2,185 |  |  | — |  |  | — |  |  | 2,185 |  |  | 4,481 |  |  | — |  |  | — |  |  | 4,481 |
Net earnings (loss) attributable to Fluor Corporation from discontinued operations |  | $ | 16,168 |  |  | $ | 2,043 |  |  | $ | 21,410 |  |  | $ | 39,621 |  |  | $ | 8,246 |  |  | $ | 1,999 |  |  | $ | (1,481 | ) |  | $ | 8,764 |
Earnings from discontinued operations for the nine months ended September 30, 2019 and 2018 were as follows:
|  | Nine Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2018
(in thousands) |  | Government |  | AMECO |  | Other |  | Total |  | Government |  | AMECO |  | Other |  | Total
Revenue |  | $ | 2,196,176 |  |  | $ | 197,708 |  |  | $ | — |  |  | $ | 2,393,884 |  |  | $ | 2,907,000 |  |  | $ | 190,217 |  |  | $ | — |  |  | $ | 3,097,217 |
Cost of revenue |  | 2,102,747 |  |  | 211,913 |  |  | — |  |  | 2,314,660 |  |  | 2,740,053 |  |  | 170,406 |  |  | — |  |  | 2,910,459 |
Corporate general and administrative expense |  | 2,735 |  |  | 189 |  |  | (22,929 | ) |  | (20,005 | ) |  | 3,235 |  |  | 242 |  |  | 3,151 |  |  | 6,628 |
Interest expense (income), net |  | (1,101 | ) |  | (280 | ) |  | — |  |  | (1,381 | ) |  | (208 | ) |  | (282 | ) |  | — |  |  | (490 | )
Total cost and expenses |  | 2,104,381 |  |  | 211,822 |  |  | (22,929 | ) |  | 2,293,274 |  |  | 2,743,080 |  |  | 170,366 |  |  | 3,151 |  |  | 2,916,597 |
Earnings (loss) before taxes from discontinued operations |  | 91,795 |  |  | (14,114 | ) |  | 22,929 |  |  | 100,610 |  |  | 163,920 |  |  | 19,851 |  |  | (3,151 | ) |  | 180,620 |
Income tax expense (benefit) |  | 21,034 |  |  | (2,535 | ) |  | 5,301 |  |  | 23,800 |  |  | 64,140 |  |  | 3,285 |  |  | (725 | ) |  | 66,700 |
Net earnings (loss) from discontinued operations |  | 70,761 |  |  | (11,579 | ) |  | 17,628 |  |  | 76,810 |  |  | 99,780 |  |  | 16,566 |  |  | (2,426 | ) |  | 113,920 |
Less: Net earnings attributable to noncontrolling interests from discontinued operations |  | 7,803 |  |  | — |  |  | — |  |  | 7,803 |  |  | 9,013 |  |  | — |  |  | — |  |  | 9,013 |
Net earnings (loss) attributable to Fluor Corporation from discontinued operations |  | $ | 62,958 |  |  | $ | (11,579 | ) |  | $ | 17,628 |  |  | $ | 69,007 |  |  | $ | 90,767 |  |  | $ | 16,566 |  |  | $ | (2,426 | ) |  | $ | 104,907 |
The carrying amounts of the major classes of assets and liabilities included as part of discontinued operations and classified as held for sale as of September 30, 2019 and December 31, 2018 were as follows:
|  | September 30, 2019 |  | December 31, 2018
(in thousands) |  | Government | AMECO | Total from Discontinued Operations | Other Assets and Liabilities from Continuing Operations(2) | Total |  | Government | AMECO | Total from Discontinued Operations
Accounts and notes receivable, net |  | $ | 109,536 |  | $ | 82,388 |  | $ | 191,924 |  | $ | 2,543 |  | $ | 194,467 |  |  | $ | 202,837 |  | $ | 95,652 |  | $ | 298,489 |
Contract assets |  | 349,610 |  | 4,057 |  | 353,667 |  | 2,936 |  | 356,603 |  |  | 411,777 |  | 2,285 |  | 414,062 |
Other current assets |  | 23,675 |  | 59,489 |  | 83,164 |  | 305 |  | 83,469 |  |  | 15,076 |  | 58,018 |  | 73,094 |
Current assets held for sale |  | $ | 482,821 |  | $ | 145,934 |  | $ | 628,755 |  | $ | 5,784 |  | $ | 634,539 |  |  | $ | 629,690 |  | $ | 155,955 |  | $ | 785,645 |
Property, plant and equipment, net |  | $ | 10,080 |  | $ | 233,788 |  | $ | 243,868 |  | $ | 70,937 |  | $ | 314,805 |  |  | $ | 10,714 |  | $ | 257,077 |  | $ | 267,791 |
Goodwill |  | 58,029 |  | 12,337 |  | 70,366 |  | 1,499 |  | 71,865 |  |  | 58,029 |  | 12,337 |  | 70,366 |
Investments |  | 32,767 |  | — |  | 32,767 |  | 6,309 |  | 39,076 |  |  | 35,354 |  | — |  | 35,354 |
Other assets |  | 15,096 |  | 6,412 |  | 21,508 |  | — |  | 21,508 |  |  | 2,021 |  | 1,067 |  | 3,088 |
Noncurrent assets held for sale(1) |  | $ | 115,972 |  | $ | 252,537 |  | $ | 368,509 |  | $ | 78,745 |  | $ | 447,254 |  |  | $ | 106,118 |  | $ | 270,481 |  | $ | 376,599 |
Total assets held for sale |  | $ | 598,793 |  | $ | 398,471 |  | $ | 997,264 |  | $ | 84,529 |  | $ | 1,081,793 |  |  | $ | 735,808 |  | $ | 426,436 |  | $ | 1,162,244 |
Trade accounts payable |  | $ | 180,597 |  | $ | 33,797 |  | $ | 214,394 |  | $ | 550 |  | $ | 214,944 |  |  | $ | 219,617 |  | $ | 20,608 |  | $ | 240,225 |
Short-term borrowings |  | 767 |  | — |  | 767 |  | — |  | 767 |  |  | — |  | — |  | — |
Contract liabilities |  | 64,196 |  | 2,333 |  | 66,529 |  | — |  | 66,529 |  |  | 51,129 |  | 4,280 |  | 55,409 |
Accrued salaries, wages and benefits |  | 71,873 |  | 9,348 |  | 81,221 |  | — |  | 81,221 |  |  | 64,387 |  | 7,182 |  | 71,569 |
Other accrued liabilities |  | 11,716 |  | 7,573 |  | 19,289 |  | 2,646 |  | 21,935 |  |  | 10,473 |  | 3,139 |  | 13,612 |
Current liabilities held for sale |  | $ | 329,149 |  | $ | 53,051 |  | $ | 382,200 |  | $ | 3,196 |  | $ | 385,396 |  |  | $ | 345,606 |  | $ | 35,209 |  | $ | 380,815 |
Noncurrent liabilities held for sale(1) |  | $ | 24,462 |  | $ | 4,485 |  | $ | 28,947 |  | $ | — |  | $ | 28,947 |  |  | $ | 16,113 |  | $ | 1,385 |  | $ | 17,498 |
Total liabilities held for sale |  | $ | 353,611 |  | $ | 57,536 |  | $ | 411,147 |  | $ | 3,196 |  | $ | 414,343 |  |  | $ | 361,719 |  | $ | 36,594 |  | $ | 398,313 |
(1) Noncurrent assets and liabilities held for sale as of September 30, 2019 were classified as current on the Condensed Consolidated Balance Sheet as the company expects to complete the sale of both the government and AMECO businesses within one year. (2) Other assets and liabilities held for sale from continuing operations were not recast as of December 31, 2018 because the balances were not significant. The Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019 and 2018 included the following activities related to discontinued operations:
|  | Nine Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2018
(in thousands) |  | Government |  | AMECO |  | Total |  | Government |  | AMECO |  | Total
Depreciation of fixed assets |  | $ | 2,952 |  |  | $ | 44,560 |  |  | $ | 47,512 |  |  | $ | 2,489 |  |  | $ | 55,666 |  |  | $ | 58,155 |
Amortization of stock-based awards |  | 4,432 |  |  | 383 |  |  | 4,815 |  |  | 4,064 |  |  | 317 |  |  | 4,381 |
Capital expenditures |  | (2,216 | ) |  | (59,048 | ) |  | (61,264 | ) |  | (5,614 | ) |  | (35,538 | ) |  | (41,152 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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