Percentage-Of-Completion Contracts

9 Months Ended

Sep. 30, 2016

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts

Our CIE balances by business segment are as follows:



	September 30,		December 31,
Dollars in millions	2016		2015
Technology & Consulting	$	25	$	42
Engineering & Construction	123		114
Government Services	242		68
Subtotal	390		224
Non-strategic Business	—		—
Total	$	390	$	224

Our BIE balances by business segment are as follows:



	September 30,		December 31,
Dollars in millions	2016		2015
Technology & Consulting	$	52	$	72
Engineering & Construction	347		307
Government Services	67		69
Subtotal	466		448
Non-strategic Business	71		61
Total	$	537	$	509

Unapproved change orders and claims

The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows:



Dollars in millions	2016			2015
Amounts included in project estimates-at-completion at January 1,	$	46		$	31
Additions	12			48
Approved change orders	(32		)	(40		)
Adjustment due to disposition of business	—			(6		)
Amounts included in project estimates-at-completion at September 30,	$	26		$	33

Amounts recorded in revenues on a percentage-of-completion basis at September 30,	$	24		$	32

The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims was $65 million as of September 30, 2016 and $59 million as of September 30, 2015 on a project in our E&C business segment.

Liquidated damages

Some of our engineering and construction contracts have schedule dates and performance obligations that if not met could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract. Any accrued liquidated damages are recognized as a reduction in revenues in our condensed consolidated statements of operations.

It is possible that liquidated damages related to several projects totaling $5 million and $6 million at September 30, 2016 and December 31, 2015, respectively, could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance, we have concluded these liquidated damages are not probable and therefore, they have not been recognized.