KBR, INC. - FORM 8-K/A - EX-99.1 - EXHIBIT 99.1 - April 26, 2018

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8-K/A - KBR, INC. 8-K/A 04-26-2018 - KBR, INC.form8ka_04262018.htm
Exhibit 99.1
 
KBR, Inc.: Consolidated Balance Sheets
(In millions)
   
March 31,
  
December 31,
   
2018
  
2017
   
(Unaudited)
    
Assets
        
Current assets:
        
Cash and equivalents
  
$
486
    
$
439
  
Accounts receivable, net of allowance for doubtful accounts of $12 and $12
  
810
    
510
  
Contract assets
  
235
    
383
  
Other current assets
  
102
    
93
  
Total current assets
  
1,633
    
1,425
  
Claims and accounts receivable
  
106
    
101
  
Property, plant, and equipment, net of accumulated depreciation of $336 and $329 (including net PPE of $43 and $34 owned by a variable interest entity)
  
142
    
130
  
Goodwill
  
1,011
    
968
  
Intangible assets, net of accumulated amortization of $128 and $122
  
486
    
239
  
Equity in and advances to unconsolidated affiliates
  
566
    
387
  
Deferred income taxes
  
289
    
300
  
Other assets
  
131
    
124
  
Total assets
  
$
4,364
    
$
3,674
  
         
Liabilities and Shareholders' Equity
        
Current liabilities:
        
Accounts payable
  
$
475
    
$
350
  
Contract liabilities
  
502
    
368
  
Accrued salaries, wages and benefits
  
186
    
186
  
Nonrecourse project debt
  
11
    
10
  
Other current liabilities
  
146
    
157
  
Total current liabilities
  
1,320
    
1,071
  
Pension obligations
  
392
    
391
  
Employee compensation and benefits
  
102
    
118
  
Income tax payable
  
86
    
85
  
Deferred income taxes
  
81
    
18
  
Nonrecourse project debt
  
29
    
28
  
Revolving credit agreement
  
540
    
470
  
Deferred income from unconsolidated affiliates
  
—
    
101
  
Other liabilities
  
183
    
171
  
Total liabilities
  
2,733
    
2,453
  
KBR shareholders' equity:
        
Preferred stock
  
—
    
—
  
Common stock
  
—
    
—
  
Paid-in capital in excess of par
  
2,094
    
2,091
  
Accumulated other comprehensive loss
  
(912
)
  
(921
)
Retained earnings
  
1,148
    
877
  
Treasury stock
  
(818
)
  
(818
)
Total KBR shareholders' equity
  
1,512
    
1,229
  
Noncontrolling interests
  
119
    
(8
)
Total shareholders' equity
  
1,631
    
1,221
  
Total liabilities and shareholders' equity
  
$
4,364
    
$
3,674
  

KBR, Inc.: Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 
Three Months Ended
 
March 31,
  
March 31,
 
2018
  
2017
Cash flows from operating activities:
      
Net income
$
139
    
$
38
  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
      
Depreciation and amortization
13
    
13
  
Equity in earnings of unconsolidated affiliates
(23
)
  
(9
)
Deferred income tax expense
25
    
5
  
Gain on consolidation of Aspire entities
(115
)
  
—
  
Other
11
    
6
  
Changes in operating assets and liabilities:
      
Accounts receivable, net of allowance for doubtful accounts
(134
)
  
38
  
Contract assets
(44
)
  
4
  
Accounts payable
63
    
(75
)
Contract liabilities
(32
)
  
(124
)
Accrued salaries, wages and benefits
2
    
16
  
Reserve for loss on uncompleted contracts
(3
)
  
(22
)
Payments from unconsolidated affiliates, net
1
    
1
  
Distributions of earnings from unconsolidated affiliates
1
    
14
  
Income taxes payable
12
    
6
  
Pension funding
(10
)
  
(9
)
Retainage payable
—
    
—
  
Subcontractor advances
(1
)
  
—
  
Net settlement of derivative contracts
3
    
(2
)
Other assets and liabilities
(38
)
  
(15
)
Total cash flows used in operating activities
(130
)
  
(115
)
Cash flows from investing activities:
      
Purchases of property, plant and equipment
(9
)
  
(3
)
Payments for investments in equity method joint ventures
(72
)
  
—
  
Acquisition of businesses, net of cash acquired
—
    
2
  
Increase in cash due to consolidation of Aspire entities
205
    
—
  
Other
1
    
—
  
Total cash flows provided by (used in) investing activities
125
    
(1
)
Cash flows from financing activities:
      
Payments to reacquire common stock
(2
)
  
(2
)
Acquisition of noncontrolling interest
(6
)
  
—
  
Distributions to noncontrolling interests
—
    
(1
)
Payments of dividends to shareholders
(11
)
  
(12
)
Net proceeds from issuance of common stock
—
    
—
  
Borrowings on revolving credit agreement
70
    
—
  
Other
—
    
—
  
Total cash flows provided by (used in) financing activities
51
    
(15
)
Effect of exchange rate changes on cash
1
    
5
  
Increase (decrease) in cash and equivalents
47
    
(126
)
Cash and equivalents at beginning of period
439
    
536
  
Cash and equivalents at end of period
$
486
    
$
410
  

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