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Equity Method Investments And Variable Interest Entities | 6 Months Ended
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Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments And Variable Interest Entities | Equity Method Investments and Variable Interest Entities We conduct some of our operations through joint ventures which operate through partnership, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are also VIEs. The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
| June 30, |  | December 31,
Dollars in millions | 2015 |  | 2014
Beginning balance | $ | 151 |  |  | $ | 156 |
Equity in earnings of unconsolidated affiliates | 88 |  |  | 163 |
Distribution of earnings of unconsolidated affiliates | (72 | ) |  | (249 | )
Advances | (4 | ) |  | (13 | )
Foreign currency translation adjustments | (4 | ) |  | (1 | )
Other | 1 |  |  | — |
Balance before reclassification | $ | 160 |  |  | $ | 56 |
Reclassification of excess distribution | 9 |  |  | 102 |
Recognition of excess distributions | (4 | ) |  | (7 | )
Ending balance | $ | 165 |  |  | $ | 151 |
During 2014, we received cash dividends of $102 million in excess of the carrying value of one of our investments. We have no obligation to return any portion of the cash dividends received. We recorded the excess dividend amount as “deferred income from unconsolidated affiliates” on our condensed consolidated balance sheets and will recognize these dividends as earnings are generated by the investment. We recognized $7 million of the excess dividends during 2014. During 2015, we received an additional $9 million of cash dividends in excess of the carrying value of our investment and recognized $4 million of excess dividends. Related Party Transactions We often provide engineering, construction management and other services as a subcontractor to the joint ventures in which we participate. The amounts included in our revenues represent revenues from services we provide directly to the joint ventures. For the six months ended June 30, 2015 and 2014, our revenues included $127 million and $144 million, respectively, related to services we provided to our joint ventures, primarily those in our E&C business segment. Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of June 30, 2015 and December 31, 2014 are as follows:
| June 30, |  | December 31,
Dollars in millions | 2015 |  | 2014
Accounts receivable, net of allowance for doubtful accounts | $ | 4 |  |  | $ | 7 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 3 |  |  | $ | 2 |
Billings in excess of costs and estimated earnings on uncompleted contracts | $ | 36 |  |  | $ | 21 |
Our related party accounts payable for both periods were immaterial. Unconsolidated Variable Interest Entities The following summarizes the total assets and total liabilities as reflected in our condensed consolidated balances sheets as well as our maximum exposure to losses related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary. Generally, our maximum exposure to loss is limited to our equity investment in the joint venture and any amounts payable to us for services we provided to the joint venture reduced for any unearned revenues on the projects.
| June 30, 2015
Dollars in millions | Total assets |  | Total liabilities |  | Maximum exposure to loss
Aspire Defence project | $ | 17 |  |  | $ | 125 |  |  | $ | 17 |
Ichthys Liquefied Natural Gas project | $ | 51 |  |  | $ | 45 |  |  | $ | 51 |
U.K. Road projects | $ | 37 |  |  | $ | 11 |  |  | $ | 37 |
EBIC Ammonia project | $ | 38 |  |  | $ | 2 |  |  | $ | 24 |
Dollars in millions | December 31, 2014
Total assets |  | Total liabilities
Aspire Defence project | $ | 17 |  |  | $ | 118 |
Ichthys Liquefied Natural Gas project | $ | 49 |  |  | $ | 35 |
U.K. Road projects | $ | 34 |  |  | $ | 11 |
EBIC Ammonia project | $ | 42 |  |  | $ | 2 |
On the Aspire Defence project, in addition to the maximum exposure to loss indicated in the table above, we have exposure to any losses incurred by the construction or operating joint ventures under their respective subcontract arrangements with the project company. Our exposure is, however, limited to our equity participation in these entities. The Ichthys liquefied natural gas ("LNG") project joint venture executes a project that has a lump sum component; in addition to the maximum exposure to loss indicated in the table above, we have an exposure to losses if the project exceeds the lump sum component to the extent of our ownership percentage in the joint venture. Our maximum exposure to loss on the EBIC Ammonia project reflects our 65% ownership of the development corporation which owns 25% of the company that consolidates the ammonia plant. We continue to monitor the $38 million investment in our EBIC Ammonia project joint venture as the profitability of its operations has been affected by the availability of natural gas feedstock in Egypt. Consolidated Variable Interest Entities We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIEs where we are the primary beneficiary:
Dollars in millions | June 30, 2015
Total assets |  | Total liabilities
Gorgon LNG project | $ | 245 |  |  | $ | 266 |
Escravos Gas-to-Liquids project | $ | 18 |  |  | $ | 35 |
Fasttrax Limited project | $ | 80 |  |  | $ | 77 |
Dollars in millions | December 31, 2014
Total assets |  | Total liabilities
Gorgon LNG project | $ | 282 |  |  | $ | 309 |
Escravos Gas-to-Liquids project | $ | 23 |  |  | $ | 36 |
Fasttrax Limited project | $ | 83 |  |  | $ | 81 |
Acquisition of Noncontrolling Interest During the three months ended March 31, 2015, we entered into an agreement to acquire the noncontrolling interest in one of our consolidated joint ventures for $40 million. We paid the partner previously accrued expenses of $8 million. The acquisition of these shares was recorded as an equity transaction, with a $40 million reduction in our paid-in capital in excess of par.

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- Definition Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Equity Method Investment represents disclosure of information related to equity method investments in common stock. The information which should be considered for disclosure includes: (a) the name of each investee or group of investments for which combined disclosure is appropriate, (2) the percentage ownership of common stock, (3) the difference, if any, between the carrying amount of an investment and the value of the underlying equity in the net assets and the accounting treatment of difference, if any, and (4) the aggregate value of each identified investment based on its quoted market price, if available. + References No definition available. + Details
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