Exhibit 99.1

KBR BUILDING GROUP, LLC

FINANCIAL STATEMENTS

December 31, 2014 and 2013

(With Independent Auditors’ Report Thereon)

KBR BUILDING GROUP, LLC

FINANCIAL STATEMENTS

December 31, 2014 and 2013

TABLE OF CONTENTS

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Independent Auditors’ Report

The Board of Directors

KBR Building Group, LLC:

We have audited the accompanying financial statements of KBR Building Group, LLC, which comprise the balance sheets as of December 31, 2014 and 2013, and the related statements of operations, stockholder’s equity and cash flows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of KBR Building Group, LLC as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Houston, Texas

September 11, 2015

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KBR BUILDING GROUP, LLC

BALANCE SHEETS

(In thousands, except share data)

See accompanying notes to financial statements

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KBR BUILDING GROUP, LLC

BALANCE SHEETS

(In thousands, except share data)

See accompanying notes to financial statements

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KBR BUILDING GROUP, LLC

STATEMENTS OF OPERATIONS

(In thousands)

See accompanying notes to financial statements

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KBR BUILDING GROUP, LLC

STATEMENTS OF STOCKHOLDER’S EQUITY

(In thousands)

See accompanying notes to financial statements

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KBR BUILDING GROUP, LLC

STATEMENTS OF CASH FLOWS

(In thousands)

See accompanying notes to financial statements

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KBR BUILDING GROUP, LLC

NOTES TO FINANCIAL STATEMENTS

1. DESCRIPTION OF COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

KBR Building Group, LLC (the Company) is a wholly-owned subsidiary of KBR, Inc. (the Parent). KBR Building Group, LLC's principal business is that of a general contractor performing industrial and commercial construction contracts under cost-plus, cost-plus with a guaranteed maximum, and fixed-price contracts.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include:

revenues under long term construction contracts, including estimates of costs to complete projects and provisions for contract losses

allowances for doubtful accounts

provisions for income taxes and related valuation allowances and tax uncertainties

recoverability of equity method investments

reserves for self-insured risks

Revenue Recognition - Construction Contracts

The Company recognizes revenues from construction contracts using the percentage-of-completion method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605 – Revenue Recognition.  Progress is measured based upon costs incurred to total estimated costs at completion. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation costs. Precontract costs directly associated with a specific anticipated contract are recorded as construction costs only if these costs are determined to be recoverable through the contract. All known or anticipated losses on contracts are recognized in the period in which they become evident. Revenues recognized in excess of amounts billed and the associated costs are classified as current assets, since it is anticipated that these earnings and costs will be billed and collected in the next fiscal year. Contract amounts billed to clients in excess of costs incurred and revenues recognized to date are classified as current liabilities. Profit incentives are included in revenue when their realization is reasonably assured.

Revenues and gross profit on contracts can be significantly affected by change orders and claims that may not have been approved by the customer until the later stages of a contract or subsequent to project completion.  If it is not probable that costs will be recovered through a change in the contract price, the costs attributable to such pending change orders are treated as contract costs without incremental revenue.  For contracts where it is probable that the costs will be recovered through a change order, total estimated contract revenue is increased by the lesser of the amount management expects to recover or the costs expected to be incurred.

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When we negotiate any type of contract, we frequently are required to accomplish the scope of work and meet certain performance criteria within a specified time frame; otherwise, we could be assessed damages, which in some cases are agreed-upon liquidated damages. We include an estimate of liquidated damages in our estimates of total contract value when it is deemed probable that they will be assessed. Profits are recorded based upon the product of estimated contract profit at completion times the current percentage-complete for the contract.

Cost Estimates

Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs, included in cost of revenues, include charges for such items as facilities, engineering, project management, quality control, bid and proposals and procurement.

General and Administrative Expenses

Our general and administrative expenses represent corporate overhead expenses that are not associated with the execution of the contracts. General and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and corporate accounting, human resources and various other corporate functions.

Cash and Equivalents

The Company considers short-term highly liquid investments with maturities of 90 days or less at the time of purchase to be cash equivalents.

Trade Receivable

Trade receivables are recorded at the invoiced amount based on contracted prices.  Amounts collected on trade receivables are included in net cash provided by operating activities in the statements of cash flows.

We establish an allowance for doubtful accounts based on the assessment of the clients’ willingness and ability to pay.  In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome.  Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due.  As of December 31, 2014 and 2013, the Company had receivables of $0.9 million and $0.9 million, respectively, related to contract claims.

Retainage, included in trade receivable, represents amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods.  As of December 31, 2014 and 2013, the Company had receivables of $17.0 million and $36.0 million, respectively, related to retainage.

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts, Including Claims, and Advanced Billings and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts

Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules.  Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of accounting. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date using the percentage-of-completion method over billings to date on certain contracts.  Billings in excess of costs and estimated earnings on uncompleted contracts represents the excess of billings to date over the amount of contract costs and profits recognized to date using the percentage-of-completion method on certain contracts.  With the exception of claims and change orders that we are in the process of negotiating with customers, unbilled receivables are usually billed during normal billing processes following achievement of the contractual requirements.

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Property, Plant, and Equipment

Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment.  Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred.  The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period.  Depreciation for equipment, furniture, and fixtures is generally provided on the straight-line method over the estimated useful lives of the related assets of three to seven years.  Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term, generally up to 10 years.

Management assesses the carrying value of property, plant, and equipment when indicators of impairment are identified. Impairment losses are recorded in the year incurred as a permanent reduction in the carrying value of the related assets.

Income Taxes

The Company is included in a consolidated federal income tax return with its Parent and other affiliates. The Company provides for income taxes as if it filed a separate income tax return, subject to certain modifications.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results.

We recognize the effect of income tax positions only if it is more-likely-than-not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company records potential interest and penalties related to unrecognized tax benefits in income tax expense.

Fair Value of Financial Instruments

For all of the Company’s financial instruments, including cash and cash equivalents, receivables, and other accrued liabilities, the carrying amounts on the balance sheet approximate their fair values due principally to their short maturities.

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Concentration of Credit Risk

As is customary in the industry, the Company grants uncollateralized credit to its customers, which include large multinational corporations operating in a broad range of industries. In order to mitigate its credit risk, the Company continually evaluates the creditworthiness of its major customers. The following tables present summarized data regarding revenues and trade receivables attributable to customers that account for 10% or more of the Company’s revenues.

2. RELATED PARTY TRANSACTIONS

Certain of the Company’s transactions are with its Parent and affiliates. The Company’s financial statements reflect these transactions based on actual costs or on a proportionate allocation basis determined by management of the Parent. The cumulative net balance resulting from these transactions is included in due from Parent and affiliates in the accompanying balance sheets. Balances due from Parent and affiliates are not interest bearing and are recorded as current as either party has the ability at its sole discretion to demand payment.

The Company’s employees participate in the Parent’s employee benefit plans.  The Parent allocates employee benefit costs to the Company based on standardized rates, with the associated liability recorded on the Parent’s books. Charges for such employee benefits totaled approximately $7.9 million and $11.8 million during 2014 and 2013, respectively, and are included in cost of revenues and in general and administrative expenses in the accompanying statements of operations.

The Company participates in centralized programs administered by the Parent for business insurance and surety bonding.  The Parent also provides certain shared support services to the Company and other affiliates consisting primarily of information systems, accounting and real estate services.  Charges for such shared services totaled approximately $1.5 million and $2.0 million during 2014 and 2013, respectively, and are included in general and administrative expenses in the accompanying statements of operations.

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The Parent and its affiliates are partially self-insured with respect to workers’ compensation benefits and general liability claims. The Company is charged by the Parent for its proportionate share of the estimated cost on a basis determined by management of the Parent, with the corresponding liability recorded on the Parent’s books.  Charges for such services totaled approximately $1.2 million and $1.9 million during 2014 and 2013, respectively, and are included in cost of revenues and in general and administrative expenses in the accompanying statements of operations.

3. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

Costs and estimated earnings on uncompleted contracts were as follows at December 31, 2014 and 2013:

Costs and estimated earnings on uncompleted contracts at December 31, 2014 and 2013 are included in the accompanying balance sheets under the following captions (in thousands):

The amounts of unapproved change orders and claims included in determining the profit or loss on contracts as of December 31, 2014 and 2013 were $4.7 million and $17.9 million, respectively. Substantially all of these amounts were subsequently resolved with the customers. An immaterial amount of income was recognized on the favorable resolution of these amounts.

4. EQUITY METHOD INVESTMENTS

The Company holds a 50% interest in the BE&K-Turner Boeing JV, which was formed for the execution of a project for Boeing.  The project was substantially completed in 2012 other than residual responsibilities under the project-specific insurance programs.  As of December 31, 2014 and 2013, the joint venture retained cash balances of $1.4 million and $2.7 million, respectively, to cover future liabilities under the insurance programs.  Management has determined that the joint venture is not a variable interest entity.

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5. INCOME TAXES

The Company is a disregarded single member LLC for federal income tax purposes. Income taxes are allocated to the Company under the Separate Return Method. The Company’s current income tax assets and liabilities are included in Due from Parent and affiliates in the accompanying balance sheets.  The components of the provision for income taxes were as follows:

The Company’s effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 35% as a result of the following:

The primary components of deferred tax assets and liabilities were as follows: