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Description Of Company And Significant Accounting Policies | 6 Months Ended
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Jun. 30, 2015
Accounting Policies [Abstract] |
Description of Company and Significant Accounting Policies | Description of Company and Significant Accounting Policies KBR, Inc., a Delaware corporation, was formed on March 21, 2006 and is headquartered in Houston, Texas. KBR, Inc. and its wholly owned and majority-owned subsidiaries (collectively referred to herein as "KBR", "the Company", "we", "us" or "our") is an engineering, procurement, construction and services company supporting the global hydrocarbons and international government services market segments. Our capabilities include engineering, procurement, construction, construction management, technology licensing, operations, maintenance and other support services to a diverse customer base, including international and national oil and gas companies, independent refiners, petrochemical producers, fertilizer producers, manufacturers and domestic and foreign governments. Principles of consolidation Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of KBR and our wholly owned and majority-owned, controlled subsidiaries and variable interest entities ("VIEs") of which we are the primary beneficiary. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. See Note 7 to our condensed consolidated financial statements for further discussion on our equity investments and VIEs. The cost method is used when we do not have the ability to exert significant influence. All material intercompany balances and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed consolidated statements of operations, condensed consolidated balance sheets and the condensed consolidated statements of cash flows. We have evaluated all events and transactions occurring after the balance sheet date but before the financial statements were issued and have included the appropriate disclosures. Use of estimates The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas requiring significant estimates and assumptions by our management include the following:
• | project revenues, costs and profits on engineering and construction contracts and government services contracts, including recognition of estimated losses on uncompleted contracts
• | provisions for uncollectible receivables and client claims and recoveries of costs from subcontractors, vendors and others
• | provisions for income taxes and related valuation allowances and tax uncertainties
• | recoverability of goodwill
• | recoverability of other intangibles and long-lived assets and related estimated lives
• | recoverability of equity method and cost method investments
• | valuation of pension obligations and pension assets
• | accruals for estimated liabilities, including litigation accruals
• | consolidation of VIEs
• | valuation of stock-based compensation
In accordance with normal practice in the construction industry, we include in current assets and current liabilities amounts related to construction contracts realizable and payable over a period in excess of one year. If the underlying estimates and assumptions upon which the financial statements are based change in the future, actual amounts may differ from those included in the accompanying condensed consolidated financial statements. Service Concession Arrangements On January 24, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-05, Service Concession Arrangements. A service concession arrangement is an arrangement between a public-sector entity and an operating entity under which the operating entity operates the grantor's infrastructure. This ASU specifies that an operating entity should not account for a service concession arrangement within the scope of this ASU as a lease in accordance with Accounting Standards Codification ("ASC") 840 - Leases. An operating entity should refer to other ASUs as applicable to account for various aspects of a service concession arrangement. The amendments also specify that the infrastructure used in a service concession agreement should not be recognized as property, plant and equipment of the operating entity. The amendments in this ASU are effective using a modified retrospective approach for annual reporting periods beginning after December 15, 2014 and interim periods within those annual periods. The adoption of ASU 2014-05 on January 1, 2015 did not have a material impact on our financial statements. Additional Balance Sheet Information The components of “other current liabilities” on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014 are presented below:
| June 30, |  | December 31,
Dollars in millions | 2015 |  | 2014
Reserve for estimated losses on uncompleted contracts (a) | $ | 73 |  |  | $ | 159 |
Retainage payable | 67 |  |  | 88 |
Income taxes payable | 48 |  |  | 61 |
Deferred tax liabilities | 46 |  |  | 46 |
Value-added tax payable | 41 |  |  | 31 |
Insurance payable | 20 |  |  | 19 |
Dividend payable | 12 |  |  | 12 |
Other miscellaneous liabilities | 56 |  |  | 72 |
Total other current liabilities | $ | 363 |  |  | $ | 488 |
(a) | See Note 2 for further discussion on our reserve for estimated losses on uncompleted contracts.

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