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Business Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information We provide a wide range of professional services and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, a relatively few number of projects, government programs and joint ventures represent a substantial part of our operations. Our reportable segments follow the same accounting policies as those described in Note 1 to our consolidated financial statements. We are organized into three core business segments, Government Solutions, Technology Solutions, and Energy Solutions, and two non-core business segments as described below: Government Solutions. Our GS business segment provides full life-cycle support solutions to defense, space, aviation and other programs and missions for military and other government agencies in the U.S., U.K. and Australia. KBR covers the full spectrum from research and development; through systems engineering, test and evaluation, systems integration and program management; to operations support, maintenance and field logistics. Our acquisitions as described in Note 4 to our consolidated financial statements have been fully integrated with our existing operations. Technology Solutions. Our TS business segment combines KBR's proprietary technologies, equipment and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic and specialty chemicals as well as gasification, syngas, ammonia, nitric acid and fertilizers. From early planning through scope definition, advanced technologies and project life-cycle support, our TS business segment works closely with customers to provide the optimal approach to maximize their return on investment. Energy Solutions. Our ES business segment provides full life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets. We provide comprehensive project and program delivery capabilities as well as engineering services front-end consulting and feasibility studies, sustaining capital construction, turnarounds, maintenance services, and more. Our key capabilities leverage our operational and technical excellence as a global provider of EPC and high-impact consulting and engineering services for onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers; offshore oil and gas; and floating solutions. Non-strategic Business. Our Non-strategic Business segment represents the operations or activities we determine are no longer core to our business strategy and that we have exited or intend to exit upon completion of existing contracts. All Non-Strategic Business projects are substantially complete. Current activities in this business segment primarily relate to final project close-out, negotiation and settlement of claims, joint venture liquidation and various other matters associated with these projects. Effective for the quarter ended September 30, 2019, we reported the results of joint venture operations related to a project in Latin America within our Non-strategic Business segment. The reclassification results from our decision during the quarter to wind down the operating activities of the joint venture and exit the business. Equity in earnings of unconsolidated affiliates related to this joint venture were previously reported in our Energy Solutions business segment and were losses of $13 million and $3 million for the years ended December 31, 2019 and 2018, respectively. Other. Our Other segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above. The following table presents revenues, gross profit (loss), equity in earnings of unconsolidated affiliates, selling, general and administrative expenses, acquisition and integration related costs, gain on disposition of assets, gain on consolidation of Aspire entities and operating income (loss) by reporting segment. Operations by Reportable Segment
| Years ended December 31,
Dollars in millions | 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |
Government Solutions | $ | 3,925 |  |  | $ | 3,457 |  |  | $ | 2,193 |
Technology Solutions | 374 |  |  | 297 |  |  | 269 |
Energy Solutions | 1,339 |  |  | 1,157 |  |  | 1,671 |
Subtotal | 5,638 |  |  | 4,911 |  |  | 4,133 |
Non-strategic Business | 1 |  |  | 2 |  |  | 38 |
Total | $ | 5,639 |  |  | $ | 4,913 |  |  | $ | 4,171 |
Gross profit (loss): |  |  |  |  |
Government Solutions | $ | 430 |  |  | $ | 350 |  |  | $ | 188 |
Technology Solutions | 118 |  |  | 106 |  |  | 98 |
Energy Solutions | 100 |  |  | 134 |  |  | 153 |
Subtotal | 648 |  |  | 590 |  |  | 439 |
Non-strategic Business | 5 |  |  | (6 | ) |  | — |
Total | $ | 653 |  |  | $ | 584 |  |  | $ | 439 |
Equity in earnings of unconsolidated affiliates: |  |  |  |  |
Government Solutions | $ | 29 |  |  | $ | 32 |  |  | $ | 43 |
Technology Solutions | — |  |  | — |  |  | — |
Energy Solutions | 19 |  |  | 50 |  |  | 27 |
Subtotal | 48 |  |  | 82 |  |  | 70 |
Non-strategic Business | (13 | ) |  | (3 | ) |  | — |
Total | $ | 35 |  |  | $ | 79 |  |  | $ | 70 |
Selling, general and administrative expenses: |  |  |  |  |
Government Solutions | $ | (134 | ) |  | (109 | ) |  | (57 | )
Technology Solutions | (28 | ) |  | (24 | ) |  | (25 | )
Energy Solutions | (63 | ) |  | (64 | ) |  | (68 | )
Other | (116 | ) |  | (97 | ) |  | (94 | )
Subtotal | (341 | ) |  | (294 | ) |  | (244 | )
Non-strategic Business | — |  |  | — |  |  | — |
Total | $ | (341 | ) |  | (294 | ) |  | (244 | )
Acquisition and integration related costs: |  |  |  |  |
Government Solutions | $ | (2 | ) |  | (7 | ) |  | — |
Technology Solutions | — |  |  | — |  |  | — |
Energy Solutions | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |
Subtotal | (2 | ) |  | (7 | ) |  | — |
Non-strategic Business | — |  |  | — |  |  | — |
Total | $ | (2 | ) |  | (7 | ) |  | — |
Asset impairment and restructuring charges |  |  |  |  |
Government Solutions | $ | — |  |  | $ | — |  |  | $ | — |
Technology Solutions | — |  |  | — |  |  | — |
Energy Solutions | — |  |  | — |  |  | (6 | )
Other | — |  |  | — |  |  | — |
Subtotal | — |  |  | — |  |  | (6 | )
Non-strategic Business | — |  |  | — |  |  | — |
Total | $ | — |  |  | $ | — |  |  | $ | (6 | )
| Years ended December 31,
Dollars in millions | 2019 |  | 2018 |  | 2017
Gain (loss) on disposition of assets: |  |  |  |  |
Government Solutions | 12 |  |  | 4 |  |  | — |
Technology Solutions | — |  |  | — |  |  | — |
Energy Solutions | — |  |  | (2 | ) |  | 5 |
Other | 5 |  |  | (4 | ) |  | — |
Subtotal | 17 |  |  | (2 | ) |  | 5 |
Non-strategic Business | — |  |  | — |  |  | — |
Total | 17 |  |  | (2 | ) |  | 5 |
Gain on consolidation of Aspire entities: |  |  |  |  |
Government Solutions | — |  |  | 113 |  |  | — |
Technology Solutions | — |  |  | — |  |  | — |
Energy Solutions | — |  |  | — |  |  | — |
Other | — |  |  | (5 | ) |  | — |
Subtotal | — |  |  | 108 |  |  | — |
Non-strategic Business | — |  |  | — |  |  | — |
Total | — |  |  | 108 |  |  | — |
Segment operating income (loss): |  |  |  |  |
Government Solutions | $ | 335 |  |  | $ | 383 |  |  | $ | 173 |
Technology Solutions | 90 |  |  | 82 |  |  | 73 |
Energy Solutions | 56 |  |  | 118 |  |  | 111 |
Other | (111 | ) |  | (106 | ) |  | (93 | )
Subtotal | 370 |  |  | 477 |  |  | 264 |
Non-strategic Business | (8 | ) |  | (9 | ) |  | — |
Total | $ | 362 |  |  | $ | 468 |  |  | $ | 264 |
| Years ended December 31,
Dollars in millions | 2019 |  | 2018 |  | 2017
Capital expenditures: |  |  |  |  |
Government Solutions | $ | 7 |  |  | $ | 11 |  |  | $ | 4 |
Technology Solutions | 1 |  |  | — |  |  | — |
Energy Solutions | 3 |  |  | 1 |  |  | 2 |
Other | 9 |  |  | 5 |  |  | 2 |
Subtotal | 20 |  |  | 17 |  |  | 8 |
Non-strategic Business | — |  |  | — |  |  | — |
Total | $ | 20 |  |  | $ | 17 |  |  | $ | 8 |
Depreciation and amortization: |  |  |  |  |
Government Solutions | $ | 58 |  |  | $ | 42 |  |  | $ | 27 |
Technology Solutions | 6 |  |  | 3 |  |  | 3 |
Energy Solutions | 21 |  |  | 10 |  |  | 10 |
Other | 19 |  |  | 8 |  |  | 8 |
Subtotal | 104 |  |  | 63 |  |  | 48 |
Non-strategic Business | — |  |  | — |  |  | — |
Total | $ | 104 |  |  | $ | 63 |  |  | $ | 48 |
Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity and weather, and for unit rate and construction service contracts, the availability and detail of customer supplied engineering drawings. With a portfolio of more than one thousand contracts, we generally realize both lower and higher than expected margins on projects in any given period. We recognize revisions of revenues and costs in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. Changes in project-related estimates by business segment, which significantly impacted operating income during the periods presented, are as follows: Energy Solutions We recognized changes to equity earnings as a result of various changes to estimates on the Ichthys LNG Project during the years ended December 31, 2018 and 2017. See Note 8 for a discussion of the matters impacting this project. We also recognized a favorable change in estimated revenues and net income associated with variable consideration recognized as a result of successful completion and performance testing of a major ES project during the year ended December 31, 2018. During the year ended December 31, 2017, the PEMEX and PEP arbitration was settled (see Note 17 to our consolidated financial statements) which resulted in additional revenues and gross profit of $35 million during the year ended December 31, 2017. Balance Sheet Information by Reportable Segment Assets specific to business segments include receivables, contract assets, other current assets, claims and accounts receivable, certain identified property, plant and equipment, equity in and advances to related companies and goodwill. The remaining assets, such as cash and the remaining property, plant and equipment, are considered to be shared among the business segments and are therefore reported in "Other."
| December 31,
Dollars in millions | 2019 |  | 2018
Total assets: |  |  |
Government Solutions | $ | 2,749 |  |  | $ | 2,804 |
Technology Solutions | 222 |  |  | 204 |
Energy Solutions | 1,497 |  |  | 1,271 |
Other | 889 |  |  | 746 |
Subtotal | 5,357 |  |  | 5,025 |
Non-strategic Business | 7 |  |  | 27 |
Total | $ | 5,364 |  |  | $ | 5,052 |
Goodwill (Note 11): |  |  |
Government Solutions | $ | 978 |  |  | $ | 977 |
Technology Solutions | 50 |  |  | 51 |
Energy Solutions | 237 |  |  | 237 |
Other | — |  |  | — |
Subtotal | 1,265 |  |  | 1,265 |
Non-strategic Business | — |  |  | — |
Total | $ | 1,265 |  |  | $ | 1,265 |
Equity in and advances to related companies (Note 12): |  |  |
Government Solutions | $ | 151 |  |  | $ | 114 |
Technology Solutions | — |  |  | — |
Energy Solutions | 699 |  |  | 610 |
Other | — |  |  | — |
Subtotal | 850 |  |  | 724 |
Non-strategic Business | — |  |  | — |
Total | $ | 850 |  |  | $ | 724 |
Selected Geographic Information Revenues by country are determined based on the location of services provided. Long-lived assets by country are determined based on the location of tangible assets.
| Years ended December 31,
Dollars in millions | 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |
United States | $ | 2,705 |  |  | $ | 2,260 |  |  | $ | 1,986 |
Middle East | 1,027 |  |  | 884 |  |  | 836 |
Europe | 1,058 |  |  | 989 |  |  | 480 |
Australia | 288 |  |  | 329 |  |  | 334 |
Canada | 39 |  |  | 21 |  |  | 224 |
Africa | 197 |  |  | 133 |  |  | 121 |
Asia | 214 |  |  | 190 |  |  | 125 |
Other countries | 111 |  |  | 107 |  |  | 65 |
Total | $ | 5,639 |  |  | $ | 4,913 |  |  | $ | 4,171 |
| December 31,
Dollars in millions | 2019 |  | 2018
Property, plant & equipment, net: |  |  |
United States | $ | 50 |  |  | $ | 51 |
United Kingdom | 44 |  |  | 50 |
Other | 36 |  |  | 20 |
Total | $ | 130 |  |  | $ | 121 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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