XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Retirement Benefits | 12 Months Ended
--- | ---
Dec. 31, 2021
Retirement Benefits [Abstract] |
Retirement Benefits | Retirement Benefits Defined Contribution Retirement Plans We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $84 million in 2021, $83 million in 2020 and $63 million in 2019. Defined Benefit Pension Plans We have two frozen defined benefit pension plans in the U.S., one frozen plan in the U.K. and one frozen plan in Germany. Substantially all of our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of years of service or compensation. We used a December 31 measurement date for all plans in 2021 and 2020. Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables.
| United States |  | Int’l |  | United States |  | Int’l
Dollars in millions | 2021 |  | 2020
Change in projected benefit obligations: |  |  |  |  |  |  |
Projected benefit obligations at beginning of period | $ | 80 |  |  | $ | 2,326 |  |  | $ | 76 |  |  | $ | 1,988 |
Service cost | — |  |  | 3 |  |  | — |  |  | 2 |
Interest cost | 2 |  |  | 33 |  |  | 2 |  |  | 39 |
Foreign currency exchange rate changes | — |  |  | (4) |  |  | — |  |  | 75 |
Actuarial (gain) loss | (3) |  |  | (180) |  |  | 6 |  |  | 287 |
Other | — |  |  | (1) |  |  | — |  |  | (1) |
Benefits paid | (5) |  |  | (75) |  |  | (4) |  |  | (64) |
Projected benefit obligations at end of period | $ | 74 |  |  | $ | 2,102 |  |  | $ | 80 |  |  | $ | 2,326 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of plan assets at beginning of period | $ | 64 |  |  | $ | 1,961 |  |  | $ | 60 |  |  | $ | 1,727 |
Actual return on plan assets | 7 |  |  | 94 |  |  | 7 |  |  | 189 |
Employer contributions | 1 |  |  | 47 |  |  | 2 |  |  | 44 |
Foreign currency exchange rate changes | — |  |  | (3) |  |  | — |  |  | 66 |
Benefits paid | (5) |  |  | (75) |  |  | (4) |  |  | (64) |
Other | (1) |  |  | (1) |  |  | (1) |  |  | (1) |
Fair value of plan assets at end of period | $ | 66 |  |  | $ | 2,023 |  |  | $ | 64 |  |  | $ | 1,961 |
Funded status | $ | (8) |  |  | $ | (79) |  |  | $ | (16) |  |  | $ | (365) |
The Accumulated Benefit Obligation ("ABO") is the present value of benefits earned to date. The ABO for our United States pension plans was $74 million and $80 million as of December 31, 2021 and 2020, respectively. The ABO for our international pension plans was $2.1 billion and $2.3 billion as of December 31, 2021 and 2020, respectively.
| United States |  | Int’l |  | United States |  | Int’l
Dollars in millions | 2021 |  | 2020
Amounts recognized on the consolidated balance sheets |  |  |  |  |  |  |
Other assets | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |
Pension obligations | $ | (8) |  |  | $ | (80) |  |  | $ | (16) |  |  | $ | (365) |
Net periodic pension cost for our defined benefit plans included the following components:
| United States |  | Int’l |  | United States |  | Int’l |  | United States |  | Int’l
Dollars in millions | 2021 |  | 2020 |  | 2019
Components of net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |
Interest cost | 2 |  |  | 33 |  |  | 2 |  |  | 39 |  |  | 3 |  |  | 50 |
Expected return on plan assets | (3) |  |  | (87) |  |  | (3) |  |  | (59) |  |  | (3) |  |  | (77) |
Prior service cost amortization | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Recognized actuarial loss | 2 |  |  | 31 |  |  | 2 |  |  | 22 |  |  | 2 |  |  | 16 |
Net periodic benefit cost | $ | 1 |  |  | $ | (19) |  |  | $ | 1 |  |  | $ | 5 |  |  | $ | 2 |  |  | $ | (8) |
The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2021 and 2020, net of tax were as follows:
| United States |  | Int’l |  | United States |  | Int’l
Dollars in millions | 2021 |  | 2020
Unrecognized actuarial loss, net of tax of $8 and $198, $10 and $240, respectively | $ | 17 |  |  | $ | 564 |  |  | $ | 24 |  |  | $ | 740 |
Total in accumulated other comprehensive loss | $ | 17 |  |  | $ | 564 |  |  | $ | 24 |  |  | $ | 740 |
Estimated amounts that will be amortized from accumulated other comprehensive income, net of tax, into net periodic benefit cost in 2022 are as follows:
Dollars in millions | United States |  | Int’l
Actuarial loss | $ | 1 |  |  | $ | 20 |
Total | $ | 1 |  |  | $ | 20 |
Weighted-average assumptions used to determine net periodic benefit cost |
| United States |  | Int'l |  | United States |  | Int'l |  | United States |  | Int'l
| 2021 |  | 2020 |  | 2019
Discount rate | 2.00 | % |  | 1.40 | % |  | 2.89 | % |  | 2.05 | % |  | 3.98 | % |  | 2.90 | %
Expected return on plan assets | 5.19 | % |  | 4.67 | % |  | 5.72 | % |  | 3.70 | % |  | 6.09 | % |  | 5.09 | %
Weighted-average assumptions used to determine benefit obligations at measurement date |
| United States |  | Int'l |  | United States |  | Int'l
| 2021 |  | 2020
Discount rate | 2.45 | % |  | 1.80 | % |  | 2.00 | % |  | 1.40 | %
Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have diversified asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range. The target asset allocation for our U.S. and International plans for 2022 is as follows:
Asset Allocation | 2022 Targeted
| United States |  | Int'l
Equity funds and securities | 52 | % |  | 22 | %
Fixed income funds and securities | 39 | % |  | 53 | %
Hedge funds | — | % |  | 7 | %
Real estate funds | 1 | % |  | 5 | %
Other | 8 | % |  | 13 | %
Total | 100 | % |  | 100 | %
The range of targeted asset allocations for our International plans for 2022 and 2021, by asset class, are as follows:
International Plans | 2022 Targeted |  | 2021 Targeted
| Percentage Range |  | Percentage Range
| Minimum |  | Maximum |  | Minimum |  | Maximum
Equity funds and securities | 20 | % |  | 50 | % |  | 20 | % |  | 50 | %
Fixed income funds and securities | 30 | % |  | 100 | % |  | 35 | % |  | 100 | %
Hedge funds | — | % |  | 7 | % |  | — | % |  | 7 | %
Real estate funds | — | % |  | 10 | % |  | — | % |  | 10 | %
Other | — | % |  | 34 | % |  | — | % |  | 34 | %
The range of targeted asset allocations for our U.S. plans for 2022 and 2021, by asset class, are as follows:
Domestic Plans | 2022 Targeted |  | 2021 Targeted
| Percentage Range |  | Percentage Range
| Minimum |  | Maximum |  | Minimum |  | Maximum
Equity funds and securities | 41 | % |  | 62 | % |  | 41 | % |  | 62 | %
Fixed income funds and securities | 31 | % |  | 47 | % |  | 31 | % |  | 47 | %
Real estate funds | 1 | % |  | 1 | % |  | 1 | % |  | 1 | %
Other | 7 | % |  | 10 | % |  | 7 | % |  | 10 | %
ASC 820 - Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a description of the primary valuation methodologies and classification used for assets measured at fair value. Fair values of our Level 1 assets are based on observable inputs such as unadjusted quoted prices for identical assets in active markets. These consist of securities valued at the closing price reported on the active market on which the individual securities are traded. Fair values of our Level 2 assets are based on inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices for similar assets; quoted prices that are in inactive markets; inputs other than quoted prices that are observable for the asset; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Fair values of our Level 3 assets are based on unobservable inputs in which there is little or no market data and require us to develop our own assumptions. A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below.
| Fair Value Measurements at Reporting Date
Dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3
Asset Category at December 31, 2021 |  |  |  |  |  |  |
United States plan assets |  |  |  |  |  |  |
Investments measured at net asset value (a) | $ | 65 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cash and equivalents | 1 |  |  | 1 |  |  | — |  |  | — |
Total United States plan assets | $ | 66 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |
International plan assets |  |  |  |  |  |  |
Equities | $ | 88 |  |  | $ | — |  |  | $ | — |  |  | $ | 88 |
Fixed income | — |  |  | — |  |  | — |  |  | — |
Real estate | 1 |  |  | — |  |  | — |  |  | 1 |
Cash and cash equivalents | 6 |  |  | 6 |  |  | — |  |  | — |
Other | 48 |  |  | — |  |  | — |  |  | 48 |
Investments measured at net asset value (a) | 1,880 |  |  | — |  |  | — |  |  | — |
Total international plan assets | $ | 2,023 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 137 |
Total plan assets at December 31, 2021 | $ | 2,089 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 137 |
| Fair Value Measurements at Reporting Date
Dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3
Asset Category at December 31, 2020 |  |  |  |  |  |  |
United States plan assets |  |  |  |  |  |  |
Investments measured at net asset value (a) | $ | 62 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cash and equivalents | $ | 2 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |
Total United States plan assets | $ | 64 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |
International plan assets |  |  |  |  |  |  |
Equities | $ | 108 |  |  | $ | — |  |  | $ | — |  |  | $ | 108 |
Fixed income | 1 |  |  | — |  |  | — |  |  | 1 |
Real estate | 2 |  |  | — |  |  | — |  |  | 2 |
Cash and cash equivalents | 4 |  |  | 4 |  |  | — |  |  | — |
Other | 40 |  |  | — |  |  | — |  |  | 40 |
Investments measured at net asset value (a) | 1,806 |  |  | — |  |  | — |  |  | — |
Total international plan assets | $ | 1,961 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 151 |
Total plan assets at December 31, 2020 | $ | 2,025 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 151 |
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following:
Dollars in millions | Total |  | Equities |  | Fixed Income |  | Real Estate |  | Other
International plan assets |  |  |  |  |  |  |  |  |
Balance as of December 31, 2019 | $ | 149 |  |  | $ | 103 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 43 |
Return on assets held at end of year | 2 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Return on assets sold during the year | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Purchases, sales and settlements | (6) |  |  | — |  |  | — |  |  | — |  |  | (6) |
Foreign exchange impact | 4 |  |  | 4 |  |  | — |  |  | — |  |  | — |
Balance as of December 31, 2020 | $ | 151 |  |  | $ | 108 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 40 |
Return on assets held at end of year | (15) |  |  | (21) |  |  | — |  |  | (1) |  | 0 | 7 |
Return on assets sold during the year | 38 |  |  | 36 |  |  | — |  |  | — |  |  | 2 |
Purchases, sales and settlements, net | (37) |  |  | (35) |  |  | (1) |  |  | — |  |  | (1) |
Foreign exchange impact | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance as of December 31, 2021 | $ | 137 |  |  | $ | 88 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 48 |
Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plans reside. In certain countries the funding requirements are mandatory while in other countries they are discretionary. We expect to contribute $46 million to our pension plans in 2022. Benefit payments. The following table presents the expected benefit payments over the next 10 years.
| Pension Benefits
Dollars in millions | United States |  | Int’l
2022 | $ | 5 |  |  | $ | 60 |
2023 | $ | 5 |  |  | $ | 62 |
2024 | $ | 5 |  |  | $ | 64 |
2025 | $ | 5 |  |  | $ | 65 |
2026 | $ | 5 |  |  | $ | 67 |
Years 2027 - 2031 | $ | 23 |  |  | $ | 360 |
Multiemployer Pension Plans We participate in multiemployer plans in Canada. Generally, the plans provide defined benefits to substantially all employees covered by collective bargain agreements. Under the terms of these agreements, our obligations are discharged upon plan contributions and are not subject to any assessments for unfunded liabilities upon our termination or withdrawal. Our aggregate contributions to these plans were immaterial in the years ended December 31, 2021, 2020 and 2019. At December 31, 2021, none of the plans in which we participate is individually significant to our consolidated financial statements. Deferred Compensation Plans Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. The elective deferral plan is unfunded except for $13 million and $11 million of mutual funds designated for a portion of our employee deferral plan included in other assets on our consolidated balance sheets at December 31, 2021 and 2020, respectively. The mutual funds are measured at fair value using Level 1 inputs under ASC 820 and may be liquidated in the near term without restrictions. Our obligations under our employee deferred compensation plan were $64 million as of December 31, 2021 and 2020, respectively, and are included in employee compensation and benefits in our consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration