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FLUOR CORPORATION INDEX TO CONSOLIDATED FINANCIAL STATEMENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-16129 FLUOR CORPORATION (Exact name of registrant as specified in its charter) Delaware 33-0927079 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 6700 Las Colinas Boulevard Irving, Texas 75039 (Address of principal executive offices) (Zip Code) 469-398-7000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Stock, $.01 par value per share FLR New York Stock Exchange Preferred Stock Purchase Rights FLR New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No þ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting fi rm that prepared or issued its audit report. ☑ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ As of June 30, 2020, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was approximately $1.7 billion based on the closing sale price as reported on the New York Stock Exchange. As of January 31, 2021, 140,759,346 shares of the registrant’s common stock, $0.01 par value per share, were outstanding. DOCUMENTS INCORPORATED BY REFERENCE Document Parts Into Which Incorporated Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 6, 2021. Part III Table of Contents

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Page 1: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONINDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

Form10-K☒ ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedDecember31,2020or

☐ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

Forthetransitionperiodfromto

Commissionfilenumber: 1-16129

FLUORCORPORATION(Exactnameofregistrantasspecifiedinitscharter)

Delaware 33-0927079(Stateorotherjurisdictionof (I.R.S.Employerincorporationororganization) IdentificationNo.)

6700LasColinasBoulevard Irving, Texas 75039

(Addressofprincipalexecutiveoffices) (ZipCode)

469-398-7000(Registrant’stelephonenumber,includingareacode)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:TitleofEachClass TradingSymbol(s) NameofEachExchangeonWhichRegistered

CommonStock,$.01parvaluepershare FLR NewYorkStockExchangePreferredStockPurchaseRights FLR NewYorkStockExchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes o No þIndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheExchangeAct.Yes o No þIndicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheExchangeActduringthepreceding 12months (or for such shorter period that the registrantwas required to file such reports), and (2) has been subject to such filingrequirementsforthepast90days.Yes þ No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant toRule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit suchfiles).Yes þ No oIndicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompanyoranemerginggrowthcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler,""smallerreportingcompany"and"emerginggrowthcompany"inRule12b-2oftheExchangeAct.

Largeacceleratedfiler þ Acceleratedfiler o Non-acceleratedfiler o Smallerreportingcompany ☐ Emerginggrowthcompany ☐

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct. oIndicateby checkmarkwhether the registranthas fileda reportonandattestation to itsmanagement'sassessmentof theeffectivenessof itsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.☑Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).Yes ☐ No þAsofJune30,2020,theaggregatemarketvalueoftheregistrant'scommonstockheldbynon-affiliatesoftheregistrantwasapproximately$1.7billionbasedontheclosingsalepriceasreportedontheNewYorkStockExchange.AsofJanuary31,2021,140,759,346sharesoftheregistrant’scommonstock,$0.01parvaluepershare,wereoutstanding.

DOCUMENTSINCORPORATEDBYREFERENCEDocument PartsIntoWhichIncorporated

PortionsoftheProxyStatementfortheAnnualMeetingofStockholderstobeheldonMay6,2021.

PartIII

TableofContents

Page 2: Form 10-K FLUOR CORPORATION

FLUORCORPORATION

INDEXTOANNUALREPORTONFORM10-K

FortheFiscalYearEndedDecember31,2020

Page

GlossaryofTerms....................................................................... 1Forward-LookingInformation............................................................. 1

PARTI

Item1. Business............................................................................... 3Item1A. RiskFactors............................................................................ 13Item1B. UnresolvedStaffComments.............................................................. 31Item2. Properties............................................................................. 31Item3. LegalProceedings....................................................................... 32Item4. MineSafetyDisclosures.................................................................. 32

PARTII Item5. MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Securities............................................................................ 33Item7. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations............ 33Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk.................................... 46Item8. FinancialStatementsandSupplementaryData............................................... 47Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure........... 47Item9A. ControlsandProcedures................................................................. 47Item9B. OtherInformation....................................................................... 48

PARTIII Item10. Directors,ExecutiveOfficersandCorporateGovernance....................................... 50Item11. ExecutiveCompensation................................................................. 50Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters. 50Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence...................... 51Item14. PrincipalAccountantFeesandServices..................................................... 51

PARTIV Item15. ExhibitsandFinancialStatementSchedules.................................................. 52Item16. Form10-KSummary..................................................................... 56Signatures......................................................................................... 56

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Page 3: Form 10-K FLUOR CORPORATION

GlossaryofTerms

Thedefinitionsandabbreviationssetforthbelowapplytotheindicatedtermsusedthroughoutthisfiling.

Abbreviation/Term Definition

201910-K AnnualReportonForm10-KfortheyearendedDecember31,2019

202010-K AnnualReportonForm10-KfortheyearendedDecember31,2020

ABO Accumulatedbenefitobligation

AOCI Accumulatedothercomprehensiveincome(loss)

ASC AccountingStandardsCodification

ASU AccountingStandardsUpdate

ContOps Continuingoperations

CorporateG&A Corporategeneralandadministrativeexpense

COVID-19 Coronaviruspandemic

DBplan Definedbenefitpensionplan

DCplan Definedcontributionpensionplan

DiscOps Discontinuedoperations

DOE U.S.DepartmentofEnergy

EPC Engineering,procurementandconstruction

EPS Earningspershare

ExchangeAct SecuritiesExchangeActof1934

FEMA U.S.FederalEmergencyManagementAgency

GAAP AccountingprinciplesgenerallyacceptedintheUnitedStates

GILTI GlobalIntangibleLow-TaxedIncome

ICFR Internalcontroloverfinancialreporting

LNG Liquefiednaturalgas

NCI Noncontrollinginterests

NM Notmeaningful

NuScale NuScalePower,LLC

OCI Othercomprehensiveincome(loss)

RSU Restrictedstockunits

RUPO Remainingunsatisfiedperformanceobligations

SEC SecuritiesandExchangeCommission

SGI Stockgrowthincentiveawards

Stork StorkHoldingB.V.andsubsidiaries;AcquiredbyFluorin2016

VDI Valuedriverincentive

VIE Variableinterestentity

Forward-LookingInformation

Fromtimetotime,Fluor®Corporationmakescertaincommentsanddisclosuresinreportsandstatements,includingthis202010-K,orstatementsaremadebyitsofficersordirectors,that,whilebasedonreasonableassumptions,maybeforward-lookinginnature.UnderthePrivateSecuritiesLitigationReformActof1995,a"safeharbor"maybeprovidedtousforcertainoftheseforward-lookingstatements.Wecautionreadersthatforward-lookingstatements,includingdisclosureswhichusewordssuchas"will,"may,""could,""should""believes,""anticipates,""plans,""expects,""intends,""estimates,""projects,""potential,""continue"andsimilarstatementsaresubjecttovariousfuturerisksanduncertaintieswhichcouldcauseactualresultsofoperationstodiffermateriallyfromexpectations.

Anyforward-lookingstatementsthatwemaymakearebasedonourcurrentexpectationsandbeliefsconcerningfuturedevelopmentsandtheirpotentialeffectsonus.Therecanbenoassurancethatfuturedevelopmentsaffectinguswillbethoseanticipatedbyus.Anyforward-lookingstatementsaresubjecttotherisks,uncertaintiesandotherfactorsthatcouldcauseactualresultsofoperations,financialcondition,costreductions,acquisitions,dispositions,financingtransactions,operations,

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Page 4: Form 10-K FLUOR CORPORATION

expansion,consolidationandothereventstodiffermateriallyfromthoseexpressedorimpliedinsuchforward-lookingstatements.

Wearesubjecttoknownrisksandtopotentiallyunknownrisks.Whilemostrisksaffectonlyfuturecostorrevenueanticipatedbyus,somerisksmayrelatetoaccrualsthathavealreadybeenreflectedinearnings.Ourfailuretoreceivepaymentsofexpectedamountsortheincurrenceofliabilitiesinexcessofamountsrecorded,couldresultinchargesagainstfutureearnings.Asaresult,thereaderiscautionedtorecognizeandconsidertheinherentlyuncertainnatureofforward-lookingstatementsandnottoplaceunduerelianceonthem.

Thesefactorsincludethosereferencedordescribedinthis202010-K(includingin"Item1A.—RiskFactors").Wecannotcontrolallrisksanduncertainties,andinmanycases,wecannotpredicttherisksanduncertaintiesthatcouldcauseouractualresultstodiffermateriallyfromthoseindicatedbytheforward-lookingstatements.Youshouldconsidertheserisksanduncertaintieswhenyouareevaluatingusanddecidingwhethertoinvestinoursecurities.Exceptasotherwiserequiredbylaw,weundertakenoobligationtopubliclyupdateorreviseourforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.

DefinedTerms

Exceptasthecontextotherwiserequires,theterms"Fluor"orthe"Registrant"asusedhereinarereferencestoFluorCorporationanditspredecessorsandreferencestothe"company,""we,""us,"or"our"asusedhereinshallincludeFluorCorporation,itsconsolidatedsubsidiariesandjointventures.

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Page 5: Form 10-K FLUOR CORPORATION

PARTI

Item1. Business

FluorCorporationwasincorporatedinDelawareinSeptember,2000.However,throughourpredecessors,wehavebeeninbusinessforoveracentury.

OurcommonstocktradesontheNewYorkStockExchangeunderthetickersymbol"FLR".

FluorCorporationisaholdingcompanythatownsanumberofsubsidiaries,aswellasinterestsinjointventures.Actingthroughtheseentities,weareoneofthelargestprofessionalservicesfirmsprovidingengineering,procurement,construction,fabricationandmodularization,operations,maintenanceandassetintegrity,aswellasprojectmanagementservices,onaglobalbasis.Weprovidetheseservicestoourclientsinadiversesetofindustriesworldwideincludingoilandgas,chemicalsandpetrochemicals,miningandmetals,infrastructure,lifesciences,advancedmanufacturingandadvancedtechnologies.WearealsoaserviceprovidertotheU.S.federalgovernmentandgovernmentsabroad;and,weperformoperations,maintenanceandassetintegrityactivitiesgloballyformajorindustrialclients.

AtDecember31,2020,weoperatedourbusinessthroughsixprincipalsegments.Thesixsegmentswere:Energy&Chemicals;Mining&Industrial;Infrastructure&Power;Government;DiversifiedServices;andOther.FluorConstructorsInternational,Inc.,whichisorganizedandoperatesseparatelyfromtherestofourbusiness,providesunionizedmanagementandconstructionservicesintheUnitedStatesandCanada,bothindependentlyandasasubcontractoronprojectsineachofoursegments.

InJanuary2021,weintroducedournewstrategy,"BuildingaBetterFuture"duringaStrategyDayeventwithinvestors.AtourStrategyDay,weoutlinedfourstrategicprioritiesfordrivingvaluecreationforourshareholders:

• Drivegrowthacrossourportfolio,bygrowingmarketsoutsideofthetraditionaloilandgassector,includingenergytransition,advancedtechnologyandlifesciences,high-demandmetals,infrastructureandmissionsolutions;

• Pursuecontractswithfairandbalancedcommercialtermsthatrewardvalue,withabiastowardsreimbursablecontracts;

• Reinforcefinancialdiscipline,maintainingasolidbalancesheetbygeneratingpredictablecashflowandearnings;and

• Fosterahigh-performanceculturewithpurpose,byadvancingourdiversity,equityandinclusioneffortsandpromotingsocialprogressandsustainability.

CompetitiveStrengths

Asaworld-classproviderofourservices,webelievethatwebringcapitalefficientbusinesssolutionsthatcombineexcellenceinexecution,safety,costcontainmentandexperiencetoourclients.Inthatregard,webelievethatourbusinessstrengthsandglobalpositioningprovideuswithsignificantcompetitiveadvantages:

Safety.Oneofourcorevaluesisourconstantfocusonsafety.Maintainingasafeandsecureworkplaceisakeybusinessdriverforusandourclients.Inourexperience,whetherinanofficeoratajobsite,asafeenvironmentdecreasesrisks,assuresaproperenvironmentforallworkers,enhancesmorale,improvesproductivity,reducesprojectcostandgenerallyimprovesclientrelations.Webelievethatourcommitmenttosafetyisoneofourmostdistinguishingfeatures.

GlobalExecutionPlatform.Asoneofthelargerpublicly-tradedEPCcompanies,wehaveaglobalfootprintwithemployeessituatedthroughouttheworld.Ourglobalpresenceallowsustobuildlocalrelationshipstocapitalizeonopportunitiesneartheselocations.Webelieveitalsoallowsustomobilizequicklytoprojectsitesaroundtheworldandtodrawonourlocalknowledgeandtalentpools.Wecontinuetoformstrategicallianceswithlocalpartners,leverageoursupplychainexpertiseandemphasizelocaltrainingprograms.Wealsoprovideservicesfromourdistributedexecutioncentersonacost-efficientbasis.

ExcellenceinExecution.Webelievethatourabilitytoexecute,maintainandmanagecomplexprojects,ofteningeographicallychallenginglocations,givesusadistinctcompetitiveadvantage.Westrivetocompleteourprojectsmeetingorexceedingallclientspecifications.Wehavecontinuedtoshifttowarddata-drivenexecution,whichweexpectwillenhanceourabilitytomeetourclients'needs.

MarketDiversity.Weservemultiplemarketsacrossabroadspectrumofindustriesaroundtheglobe.Wefeelthatourmarketdiversityhelpstomitigatetheimpactofthecyclicalityinthemarketsweserve.Justasimportant,ourconcentrated

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attentiononmarketdiversificationshouldallowustoachievemoreconsistentgrowthanddeliversolidfinancialreturns.Webelievethatmaintainingagoodmixturewithinourentirebusinessportfoliopermitsustobothfocusonourmorestablebusinessmarketsandtocapitalizeoncyclicalmarketswhenthetimingisappropriate.

ClientRelationships.Weactivelypursuerelationshipswithnewclientswhilealsobuildingonourlong-termrelationshipswithexistingclients.Webelievethatlong-termrelationshipswithexistingclientsserveuswellbyallowingustobetterunderstandandbemoreresponsivetotheirrequirements.Regardlessofwhetherourclientsareneworhavebeenwithusformanydecades,ourabilitytosuccessfullyfosterrelationshipsisakeystrength.

RiskManagement.Incombinationwithournewpursuitcriteriaandguidelineswebelievewehaveenhancedourabilitytoassess,mitigateandmanageprojectrisk,especiallyindifficultlocationsorcircumstances.Wehaveanexperiencedmanagementteam,andutilizeasystematicanddisciplinedapproachtowardsidentifying,assessingandmanagingrisks.Webelievethatourriskmanagementapproachhelpsuscontrolcostsandmeetclients'schedules.

GeneralOperations

Ourservicesfallintosixbroadcategories(outlinedbelow).Ourservicescanrangefrombasicconsultingactivities,oftenattheearlystagesofaproject,tocompletedesign-build,operationsandmaintenancecontracts.

• Inengineeringanddesign,wedevelopsolutionstoaddressourclients’mostcomplexproblems.Ourengineeringservicesrangefromtraditionalengineeringdisciplinessuchaspiping,mechanical,electrical,controlsystems,civil,structuralandarchitecturaltoadvancedengineeringspecialtiesincludingprocessengineering,chemicalengineering,simulation,integratedautomationprocessesandinteractive3-Dmodeling.Throughourdesignsolutions,wecanprovideclientswithvariedofferingswhichcanincludefront-endengineering,conceptualdesign,estimating,feasibilitystudies,permitting,processsimulation,technologyandlicensingevaluation,scopedefinitionandsiting.

• Ourprocurementofferingsincludeprocurementandsupplychainsolutionsaimedatimprovingproductqualityandperformancewhilealsoreducingprojectcostandschedule.Ourclientsdrawuponourglobalsourcingandsupplyexpertise,globalpurchasingpower,technicalknowledge,processes,systemsandexperiencedglobalresources.Ourprocurementactivitiesincludestrategicsourcing,materialmanagement,contractsmanagement,buying,expediting,supplierqualityinspectionandlogistics.

• Inconstruction,wemobilize,execute,commissionanddemobilizeprojectsonaself-performorsubcontractedbasis.Generally,weareresponsibleforthecompletionofaproject,oftenindifficultlocationsandunderchallengingcircumstances.Wearefrequentlydesignatedasaprogrammanager,andserveassuchwithoutregardtowhethertheclienthasfacilitiesinmultiplelocations,complexphasesinasingleprojectlocation,oralarge-scaleinvestmentinafacility.

• Wealsoprovideavarietyoffabricationandmodularizationservices,includingintegratedengineeringandmodularfabricationandassembly,aswellasmodularconstructionandassetsupportservicestoclientsaroundtheglobefromourjointventureyards.Byoperatingourownfabricationyardsinkeyregionsoftheworld,ouroff-sitefabricationsolutionscanhelpourclientsachievecostandschedulesavingsbyreducingon-sitecraftneedsandshiftingworktoinherentlysaferandmorecontrolledworkenvironments.

• Weofferoperations,maintenanceandassetintegrityservicesintendedtoimprovetheperformanceandextendthelifeofourclients’facilities.Thismayincludetheglobaldeliveryoftotalmaintenanceservices,facilitymanagement,plantreadiness,commissioning,start-upandmaintenancetechnology,smallcapitalprojects,andturnaroundandoutageservices.Amongotherthings,wecanprovidekeymanagement,staffingandmanagementskillstoclientson-siteattheirfacilities.Theseactivitiesalsoincluderoutineandoutage/turnaroundmaintenanceservices,generalmaintenanceandassetmanagement,emissionsreductiontechnologiesandservices,andrestorative,repair,predictiveandpreventionservices.

• Projectmanagementinvolvesmanagingallaspectsoftheefforttodeliverprojectsonscheduleandwithinbudget,andiscriticaloneveryproject.Weareoftenhiredastheoverallprogrammanageronlargecomplexprojectswherevariouscontractorsandsubcontractorsareinvolvedandmultipleactivitiesneedtobeintegratedtoensurethesuccessoftheoverallproject.Ourservicesincludelogistics,developmentofprojectexecutionplans,detailedschedules,costforecasts,progresstrackingandreporting,andtheintegrationofEPCefforts.Projectmanagementisaccountabletotheclienttodeliverthesafety,functionalityandfinancialperformancerequirementsoftheproject.

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BusinessSegments(asofDecember31,2020)

Energy&Chemicals

OurEnergy&Chemicalssegmentfocusesonopportunitiesintheupstream,midstream,downstream,chemical,petrochemical,offshoreandonshoreoilandgasproduction,LNGandpipelinemarkets.Wehavelongservedabroadspectrumofindustriesofferingafullrangeofdesign,engineering,procurement,construction,fabricationandprojectmanagementservices.Whileweperformprojectsthatrangegreatlyinsizeandscope,webelievethatoneofourdistinguishingfeaturesisthatweareoneofthefewcompaniesthathavetheglobalstrengthandexperiencetoperformextremelylargeprojectsindifficultlocations.Asthelocationsoflargescaleenergyandchemicalsprojectshavebecomemorechallenginggeographically,geopoliticallyorotherwise,webelievethatclientswillcontinuetolooktousbaseduponoursize,strength,globalreach,experienceandtrackrecordtomanagetheircomplexprojects.

Witheachspecificproject,ourrolecanvary.Wemaybeinvolvedinprovidingfront-endengineering,programmanagementandfinaldesignservices,constructionmanagementservices,self-performconstruction,oroversightofothercontractors,andwemayalsoassumeresponsibilityfortheprocurementofmaterials,equipmentandsubcontractors.Wehavethecapacitytodesign,fabricateandconstructnewfacilities,upgrade,modernizeandexpandexistingfacilities,andrebuildfacilitiesfollowingfiresandexplosions.Wealsoprovideconsultingservicesrangingfromfeasibilitystudiestoprocessassessmentstoprojectfinancestructuringandstudies.

Intheupstreamsector,ourclientsneedtodevelopadditionalandnewsourcesofsupply.Ourtypicalprojectsintheupstreamsectorrevolvearoundtheproduction,processingandtransportingofoilandgasresources,includingthedevelopmentofinfrastructureassociatedwithmajornewfieldsandpipelines.Wearealsoinvolvedinoffshoreproductionfacilitiesandinconventionalandunconventionalgasprojectsinvariousgeographiclocations.

Inthedownstreamsector,ourclientshavebeenmodernizingandmodifyingexistingrefineriestoincreasecapacity,improvemarginsandimproveenvironmentalperformance.Wecontinuetoplayakeyroleineachofthesemarkets.Wearealsofocusedonsustainablemarkets,suchascleanfuels,greenenergyandcarbonsequestration,whereanincreasingnumberofclientsandcountriesareimplementingstrongerenvironmentalstandardsandgoals.

Wehavebeenveryactiveforseveraldecadesinthechemicalsandpetrochemicalsmarket,withmajorprojectsinvolvingtheexpansionofethylene-basedderivativesaswellasspecialtychemicals.ThemostactivemarketshavebeenintheUnitedStates,MiddleEastandAsia,wherethereissignificantdemandforchemicalproducts.

Mining&Industrial

TheMining&Industrialsegmentprovidesdesign,engineering,procurement,constructionandprojectmanagementservicestotheminingandmetals,lifesciences,advancedmanufacturingandadvancedtechnologiessectors.

Inminingandmetals,weprovideafullrangeofservicestoourclientswhoproduceavarietyofcommodities,includingbauxite,copper,gold,ironore,diamond,nickel,alumina,aluminumandphosphates.Ourservicesincludeconceptualandfeasibilitystudiesthroughdetailedengineering,design,procurement,construction,commissioningandstartupsupport.Manyoftheseopportunitiesarebeingdevelopedinremoteandlogisticallychallengingenvironments,suchastheAndesMountains,WesternAustraliaandAfrica.Webelieveweareoneofthefewcompanieswiththesize,regionalpresenceandexperiencetoexecutelargescaleminingandmetalsprojectsinthesedifficultandremotelocations.

Fortheadvancedmanufacturingandtechnologiesmarket,weprovidedesign,engineering,procurement,constructionandconstructionmanagementservicestoawidevarietyofindustriesonaglobalbasis.Wespecializeindesigningprojectsthatincorporateleanmanufacturingconceptswhilealsosatisfyingclientsustainabilitygoals.Ourexperiencespansawidevarietyofmarketsegmentsrangingfromtraditionalmanufacturingtoadvancedtechnologyprojects,suchasdatacenters.

Inlifesciences,weprovidedesign,engineering,procurement,constructionandconstructionmanagementservicestothepharmaceuticalandbiotechnologyindustries.Wealsospecializeinprovidingvalidationandcommissioningserviceswherewenotonlybringnewfacilitiesintoproduction,butwealsokeepexistingfacilitiesoperating.Webelievetheabilitytocompleteprojectsonalargescalebasis,especiallyinabusinesswheretimetomarketiscritical,enablesustobetterserveourclientsandisakeycompetitiveadvantage.

Infrastructure&Power

TheInfrastructure&Powersegmentprovidesdesign,engineering,procurement,constructionandprojectmanagementservicestotheinfrastructuresector.

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Weareanindustryleaderindevelopinginfrastructureprojectssuchasroads,highways,bridgesandrailforgovernments,withparticularinterestinlarge,complexprojects.Weprovideabroadrangeofservicesincludingconsulting,design,planning,financialstructuring,engineeringandconstruction.Wealsoprovidelong-termoperationandmaintenanceservicesfortransitandhighwayprojects.Ourprojectsmayinvolvetheuseofpublic/privatepartnerships,whichallowustodevelopandfinancedealsinconcertwithpublicentitiesforprojectssuchastollroadsandraillinesthatwouldnothaveotherwisebeenundertakenwithpublicfundingalone.ThereplacementandexpansionofaginginfrastructureinNorthAmericacontinuestodriveprojectopportunities.

Historically,wehavealsoofferedafullrangeofservicesincludingengineering,procurement,construction,programmanagement,startupandcommissioningandtechnicalservicestoutilities,independentpowerproducers,originalequipmentmanufacturersandotherthirdparties.

Government

TheGovernmentsegmentprovidesengineeringandconstructionservices,logisticsandlife-support,aswellascontingencyoperationssupport,tothedefensesector.Wesupportmilitarylogisticalandinfrastructureneedsaroundtheworld,includinglife-support,engineering,procurement,constructionandlogisticalaugmentationservicestotheU.S.militaryandcoalitionforcesinvariousinternationallocations.Thissegmentalsoprovidesfulllife-cycleinfrastructuresupporttotheU.S.intelligencecommunityglobally.

TheGovernmentsegmentalsoprovidessupporttotheU.S.DepartmentofEnergyandNationalNuclearSecurityAdministrationthatincludesmanagement,missionoperations,environmentalremediation,decommissioning,engineeringandconstructionservicesthataddressthemanyenvironmentalandregulatorychallengesassociatedwithlegacyandoperationalnuclearsites.

WealsoprovidesupporttotheU.S.DepartmentofHomelandSecurity.ThisincludessupportingtheU.S.government’srapidresponsecapabilitiestoaddresssecurityissuesanddisasterrelief,thelatterprimarilythroughourlong-standingrelationshipwiththeFederalEmergencyManagementAgencyandinsupportoftheArmyCorpsofEngineers.

DiversifiedServices

TheDiversifiedServicessegmentprovidesawidearrayofassetmaintenance,assetintegrityandstaffingservices.Theseservicesareprovidedaroundtheworldduringboththeprojectdeliveryphaseaswellastoneworexistingclientproductionassets.

Throughoursubsidiary,Stork,weprovideassetmaintenanceandassetintegrityservicestotheoilandgas,chemicals,lifesciences,power,miningandmetals,consumerproductsandmanufacturingindustries.Wefocusonassetmanagementsolutions,aswellasprovidingassetservicesinareassuchaselectrical,instrumentation,mechanicalandpiping.Wealsoprovideassetintegrityservices,includingnewassetreadinesssolutions,inspectionofexistingassets,andassetturnaroundandmodificationsolutions.Thisbusiness,drivenbyourclients'annualoperatingexpenditures,oftenbenefitsfromlargeprojectsthatoriginateinanotherofoursegments,whichcanleadtolong-termoperationsormaintenanceopportunities.Ourlong-termmaintenancecontractscanalsoleadtolargercapitalprojectsforourotherbusinesssegmentswhenthoseneedsarise.Ourgoalistohelpclientsimprovetheperformanceoftheirassets,includinglate-lifemanagementsolutions.Inthefirstquarterof2021,weannouncedaplantosellStork,whichweexpectwillbereportedasadiscontinuedoperationbeginningwiththefirstquarterof2021.

Thesegment'sstaffingservicesareprovidedthroughTRSStaffingSolutions®.TRSisaglobalenterpriseofstaffingspecialiststhatprovidesthecompanyandthirdpartyclientswithtechnical,professionalandcraftresourceseitheronacontractorpermanentplacementbasis.

Other

OurOthersegmentincludesthefinancialinformationforNuScale,aswellastwolump-sumprojectsforwhichtheU.S.governmentiseithertheclientorultimateclient.

NuScale,asmallmodularnuclearreactor(“SMR”)technologycompany,isaleaderinthedevelopmentoflightwater,passivelysafeSMRs,whichwebelievewillprovideuswithsignificantfutureprojectopportunities.NuScalereceivedfinaldesigncertificationbytheU.S.NuclearRegulatoryCommissioninAugust2020.

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DiscontinuedOperations

Inthethirdquarterof2019,weimplementedanumberofstrategicinitiativesandorganizationalchangestostrengthenourfinancialpositionandimproveoperationalperformance.Amongthoseinitiatives,wecommittedtoaplantosellsubstantiallyallofourAMECObusiness,whichisreportedasadiscontinuedoperationforallperiodspresented.

AMECOprovidesintegratedconstructionequipment,tool,scaffoldingandfleetservicesolutionstothecompanyandthirdpartyclientsinafocusednumberoflocationsaroundtheworldforconstructionprojectsandclientproductionassets.

BusinessSegments(asofJanuary1,2021)

AtDecember31,2020,weoperatedourbusinessthroughsixprincipalbusinesssegmentsdescribedabove.Inthefirstquarterof2021,weannouncedanupdatedorganizationalandreportingstructure.Beginninginthefirstquarterof2021,wewilloperatethroughthreebusinesssegments:EnergySolutions,UrbanSolutionsandMissionSolutions.EnergySolutionswillfocusonenergytransition,chemicalsandtraditionaloilandgasopportunities.UrbanSolutionswillfocusonmining,metals,advancedtechnologies,manufacturing,lifesciences,infrastructureandourprofessionalstaffingservices.MissionSolutionswillfocusondeliveringsolutionstofederalagenciesacrosstheU.S.governmentandtoselectinternationalopportunities.

OtherMatters

Backlog

Backlogrepresentsthetotalamountofrevenueweexpecttorecordinthefuturebaseduponcontractsthathavebeenawardedtous.Backlogisstatedintermsofgrossrevenuesandmayincludesignificantestimatedamountsofthird-party,subcontractedandpass-throughcosts.

Backlogintheengineeringandconstructionindustryisameasureofthevalueofworktobeperformedoncontractsalreadyawardedandthoseinprogress.

December31,2020 December31,2019

(inmillions)

Energy&Chemicals $ 11,021 $ 14,129

Mining&Industrial 3,980 5,384

Infrastructure&Power 5,244 6,079

Government 2,780 3,556

DiversifiedServices(1) 2,425 2,542

Other 119 244

TotalBacklog(2)(3) $ 25,569 $ 31,934

_______________________________________________________________________________

(1) WithrespecttoourongoingoperationsandmaintenanceandassetintegritycontractsintheDiversifiedServicessegment,backlogincludestheamountofrevenueweexpecttorecognizefortheremainderofthecurrentyearrenewalperiodplusuptothreeadditionalyearsifweconsiderrenewaltobeprobable.TheequipmentandtemporarystaffingbusinessesintheDiversifiedServicessegmentdonotreportbacklogornewawards.

(2) Includesbacklogof$1.8billionand$1.7billionforprojectsinalosspositionasofDecember31,2020and2019,respectively.

(3) Forprojectsrelatedtoproportionatelyconsolidatedjointventures,weincludeonlyourpercentageownershipofeachjointventure'sbacklog.

(inmillions) December31,2020 December31,2019

NorthAmerica $ 17,438 $ 19,205

AsiaPacific(includingAustralia) 1,604 2,627

Europe 3,199 5,739

CentralandSouthAmerica 2,469 3,210

MiddleEastandAfrica 859 1,153

TotalBacklog $ 25,569 $ 31,934

_______________________________________________________________________________

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Althoughbacklogreflectsbusinessthatweconsidertobefirm,cancellations,deferralsorscopeadjustmentsmayoccur.Backlogisadjustedtoreflectanyknownprojectcancellations,revisionstoprojectscopeandcost,foreigncurrencyexchangefluctuationsandprojectdeferrals,asappropriate.Thetermsandconditionsofsomecontractsincludeelementsofbothlump-sumandreimbursablecontracts.Also,certaincontractsmaybeconvertedfromreimbursabletolump-sum.Duetoadditionalfactorsoutsideofourcontrol,suchaschangesinprojectschedules,wecannotaccuratelypredicttheexacttimingthatourDecember31,2020backlogwillbeearnedasrevenue.Accordingly,backlogisnotnecessarilyindicativeoffutureearningsorrevenuesandnoassurancescanbeprovidedthatwewillultimatelyrealizerevenueonourbacklog.

Thefollowingtablesetsforthourchangesinconsolidatedbacklog: 2020 2019

(inmillions)

Backlogatbeginningofyear $ 31,934 $ 40,051Newawards 9,005 12,563

Adjustmentsandcancellations,net(1) 188 (3,583)Workperformed (15,558) (17,097)

Backlogatendofyear $ 25,569 $ 31,934

_______________________________________________________________________________

(1) Adjustmentsandcancellationsduring2019includedthecancellationoftwoinfrastructureprojectsaswellasthesuspensionofcertaincontractsassociatedwithourjointventureinMexico.

In2021,weexpecttoperformapproximately50%ofourtotalbacklogreportedasofDecember31,2020,whichisinlinewiththelastthreeyears.

TypesofContracts

Whilethebasictermsandconditionsofthecontractsthatweperformmayvaryconsiderably,wetypicallyperformourworkundertwotypesofcontracts:(a)reimbursablecontractsand(b)lump-sumorguaranteedmaximumcontracts.Insomemarkets,weareseeinghybridcontractscontainingbothlump-sumandreimbursableelements.AsofDecember31,2020,thefollowingtablesummarizescontracttypewithinourendingbacklog:

December31,2020

(inmillions) (percentage)

Reimbursable $ 11,621 45%

Lump-SumandGuaranteedMaximum 13,948 55%

Inaccordancewithindustrypractice,mostofourcontractsaresubjecttoterminationatthediscretionofourclient.Insuchsituations,ourcontractstypicallyprovideforthepaymentoffeesearnedthroughthedateofterminationandthereimbursementofcostsincurredincludingdemobilizationcosts.

Underreimbursablecontracts,theclientreimbursesusbaseduponnegotiatedratesandpaysusapre-determinedfee,orafeebaseduponapercentageofthecostincurredincompletingtheproject.Ourprofitmaybeintheformofafee,asimplemarkupappliedtolaborcostincurredinperformingthecontract,oracombinationofthetwo.Thefeeelementmayalsovary.Thefeemaybeanincentivefeebaseduponachievingcertainperformancefactors,milestonesortargets;itmaybeafixedamountinthecontract;oritmaybebaseduponapercentageofthecostincurred.Insomecases,reimbursablecontractsmaybeconvertedintolump-sumcontracts.

OurGovernmentsegment,primarilyactingasaprimecontractororamajorsubcontractorforanumberofgovernmentprograms,generallyperformsitsservicesunderreimbursablecontractssubjecttoapplicablestatutesandregulations.Inmanycases,thesecontractsincludeincentivefeearrangements.Theprogramsmayspanmanyyearsandmaybeimplementedbyawardsundermultiplecontracts.Someofourgovernmentcontractsareknownasindefinitedeliveryindefinitequantity(“IDIQ”)agreements.Underthesearrangements,weworkcloselywiththegovernmenttodefinethescopeandamountofworkrequiredbaseduponanestimateofthemaximumamountthatthegovernmentdesirestospend.Whilethescopeisoftennotinitiallyfullydefinedordoesnotrequireanyspecificamountofwork,oncetheprojectscopeisdetermined,additionalworkmaybeawardedtouswithouttheneedforfurthercompetitivebidding.

Underlump-sumcontracts,wetypicallybidbaseduponspecificationsprovidedbytheclient.Thistypeofcontractingpresentsrisksbecauseitrequiresustopredeterminetheworktobeperformed,theprojectexecutionscheduleandallcosts

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associatedwiththework.Anothertypeoflump-sumcontractisanegotiatedfixed-pricecontract,underwhichweareselectedascontractorfirst,andthenwenegotiatepricewiththeclient.Negotiatedfixed-pricecontractsfrequentlyoccurinsingle-responsibilityarrangementswhereweperformsomeoftheworkbeforenegotiatingthetotalpricefortheproject.Anothertypeoflump-sumcontractisaunitpricecontractunderwhichwearepaidasetamountforevery“unit”ofworkperformed.Ifweperformwellunderthesetypesofcontracts,wecanbenefitfromcostsavings.However,iftheprojectdoesnotproceedasoriginallyplanned,wemaynotbeabletorecovercostoverrunsexceptincertainsituations.

Guaranteedmaximumpricecontractsarereimbursablecontractsexceptthatthetotalfeeplusthetotalcostcannotexceedanagreeduponguaranteedmaximumprice.Wecanberesponsibleforsomeorallofthetotalcostoftheprojectifthecostexceedstheguaranteedmaximumprice.Wherethetotalcostislessthanthenegotiatedguaranteedmaximumprice,wemayreceivethebenefitofthecostsavingsbaseduponanegotiatedagreementwiththeclient.

Someofourcontracts,regardlessoftype,mayoperateunderjointventuresorotherteamingarrangements.Typically,weenterintothesearrangementswithreputablecompanieswithwhomwehaveworkedpreviously.Thesearrangementsaregenerallymadetostrengthenourmarketpositionortechnicalskills,orwherethesize,scaleorlocationoftheprojectdirectstheuseofsucharrangements.

Competition

Weareoneoftheworld’slargerprovidersofengineering,procurement,construction,fabricationandmodularization,operations,maintenanceandassetintegrity,andprojectmanagementservices.Themarketsservedbyourbusinessarehighlycompetitiveand,forthemostpart,requiresubstantialresourcesandhighlyskilledandexperiencedtechnicalpersonnel.Alargenumberofcompaniescompeteagainstus,includingU.S.-basedcompaniessuchasAECOM,BechtelGroup,Inc.,EMCORGroup,Inc.,JacobsEngineeringGroup,Inc.,KBR,Inc.,KiewitCorporation,GraniteConstruction,Inc.andQuantaServices,Inc.,andinternational-basedcompaniessuchasACSActividadesdeConstruccionyServicios,BalfourBeattyplc,ChiyodaCorporation,HyundaiEngineering&ConstructionCompany,Ltd.,JGCCorporation,McDermottInternational,Inc.,PetrofacLimited,SNC-LavalinGroup,Inc.,SamsungEngineering,StantecInc.,TechnipFMCplc,WoodGroupplc,andWorleyParsonsLimited.

CompetitionforourEnergy&Chemicals,Mining&IndustrialandInfrastructure&Powersegmentsisbasedonanabilitytoprovidethedesign,engineering,planning,managementandprojectexecutionskillsrequiredtocompletecomplexprojectsinasafe,timelyandcost-efficientmanner.Webelieveourengineering,procurement,fabricationandconstructionbusinessderivesitscompetitivestrengthfromourdiversity,excellenceinexecution,reputationforquality,technology,cost-effectiveness,worldwideprocurementcapability,projectmanagementexpertise,geographiccoverage,abilitytomeetclientrequirementsbyperformingconstructiononeitheraunionoranopenshopbasis,abilitytoexecutecomplexprojectsofvaryingsizes,strongsafetyrecordandlengthyexperiencewithawiderangeofservicesandtechnologies.

ThevariousmarketsservedbytheDiversifiedServicessegment,whilehavingsomesimilaritiestoothersegments,tendalsotohavediscreteissuesimpactingindividualbusinesslines.Eachofthemarketsweservehasalargenumberofcompetingcompanies.Intheoperationsandmaintenancemarkets,barrierstoentryarebothfinanciallyandlogisticallylow,resultinginafragmentedindustrywithnosinglecompanybeingdominant.Competitioninthosemarketsisgenerallydrivenbyreputation,priceandthecapacitytoperform.Temporarystaffingisahighlyfragmentedmarketwithover1,000companiescompetingglobally.Thekeycompetitivefactorsinthisbusinesslineareprice,service,quality,clientrelationships,breadthofserviceandtheabilitytoidentifyandretainqualifiedpersonnelandgeographiccoverage.

IntheGovernmentsegment,keycompetitivefactorsareprimarilycenteredonperformance,reputationandtheabilitytoprovidethedesign,engineering,planning,managementandprojectexecutionskillsrequiredtocompletecomplexprojectsinasafe,timely,cost-efficientandcompliantmanner.

TheAMECObusiness,whichoperatesinnumerousmarkets,ishighlyfragmentedandverycompetitive,withalargenumberofcompetitorsmostlyoperatinginspecificgeographicareas.Thecompetitionintheequipmentbusinessforlargercapitalprojectservicesismorenarrowandlimitedtoonlythosecapableofprovidingcomprehensiveequipment,toolandmanagementservices.

RawMaterials

Theprincipalproductsweuseinourbusinessincludestructuralsteel,metalplate,concrete,cableandvariouselectricalandmechanicalcomponents.Theseproductsandcomponentsaresubjecttorawmaterial(aluminum,copper,nickel,ironore,etc.)availabilityandpricingfluctuations,whichwemonitoronaregularbasis.Wehaveaccesstonumerousglobalsupplysources,andwedonotforeseeanyunavailabilityoftheseitemsthatwouldhaveamaterialadverseeffectonourbusinessinthenearterm.However,theavailabilityoftheseproducts,componentsandrawmaterialsmayvarysignificantlyfromyeartoyearduetovariousfactorsincludingclientdemand,producercapacity,marketconditionsandspecificmaterialshortages.

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CompliancewithGovernmentRegulations,IncludingEnvironmental,SafetyandHealthMatters

Weprovideservicesatsitesthroughouttheworld.Workatsomeofthesesitesinvolvesactivitiesrelatedtonuclearfacilities,hazardouswaste,hydrocarbonproduction,distributionandtransport,themilitaryandinfrastructure.Someofourworkcanbeperformedadjacenttoenvironmentallysensitivelocationssuchaswetlands,lakesandrivers.Wealsocontractwithgovernmentstoremediatehazardousmaterials,includingchemicalagentsandweapons,aswellastodecontaminateanddecommissionnuclearsites.Theseactivitiescanrequireustomanage,handle,remove,treat,transportanddisposeoftoxic,radioactiveorhazardoussubstances,andaresubjecttomanyenvironmental,healthandsafetylawsandregulations.

Webelievethatwearegenerallycompliantwithallenvironmental,healthandsafetylawsandregulations.Wefurtherbelievethatanyaccrualswithrespecttofutureenvironmentalcostsareadequateandthatanyfuturecostswillnothaveamaterialeffectonourfinancialpositionorresultsofoperations.Somefactors,however,couldresultinadditionalexpendituresortheprovisionofadditionalaccrualsinexpectationofsuchexpenditures.Theseincludetheimpositionofmorestringentrequirementsunderenvironmentallawsorregulations,newdevelopmentsorchangesregardingsitecleanupcostsortheallocationofsuchcostsamongpotentiallyresponsibleparties,oradeterminationthatwearepotentiallyresponsibleforthereleaseofhazardoussubstancesatsitesotherthanthosecurrentlyidentified.

HumanCapitalManagement

Wepromoteahighperformanceculturewithpurposeandfosteradiverseandinclusiveworkplaceasabusinessimperativebecauseweconsiderpeopletobeoursinglegreatestasset.Ahighperformanceculture,whereeveryoneistreatedfairlyandrespectfullyandhasequalaccesstoopportunitiesbasedoncapabilitiesandperformance,regardlessofbackground,raisesboththeindividualandcollectiveperformanceofourcompany.Ourculturedrivesemployeeengagement,productivityandasustainablecompetitiveadvantage.

ThefollowingsummarizesourhumancapitalinformationasofDecember31,2020:

NumberofEmployees

SalariedEmployees 24,203

CraftandHourlyEmployees 16,514

TRSAgency 3,000

Total 43,717

Thenumberofcraftandhourlyemployeescanvaryinrelationtothenumber,sizeandphaseofexecutionofourprojects.Wehaveemployeesinthefollowingregions:

Region%ofGlobalWorkforce

NorthAmerica 36%

Europe,AfricaandMiddleEast 27%

CentralandSouthAmerica 25%

AsiaPacific(includesAustralia) 12%

HealthandSafety

Safetyisoneofourcorevalues.Wearecommittedtotakingcareofouremployeesandpreventinginjuriesinourofficesandprojectlocations.Ourrobustprogramsandprocedureshelpusmitigatethehazardsinherentintheworkwedo.Wearecommittedtofosteringacaring,preventativeculturefoundedonproactiveactionbyengagedemployees.WecallthisSaferTogetherSM.Our2020safetyperformanceresultedinatotalcaseincidentrateof0.38(calculatedinaccordancewithOSHArecordkeepingrequirements),outperformingourgoaloflessthan0.40andwellbelowthecomparableindustrybenchmarks.From2019to2020,wealsoexperiencedreductionsinthenumberofwork-relatedlife-alteringinjuries,losttimeinjuriesandinjuriesrequiringmedicaltreatmentorworkrestriction.

InresponsetoCOVID-19,weimplementedanumberofmeasurestoprotectthewell-beingofouremployeesandmitigateCOVID-19transmissionwithinourofficesandonourprojects.WeestablishedaglobalCOVID-19taskforceinJanuary2020andimplementedactionstoempowerremoteworking,restrictnon-essentialbusinesstravel,enhancesanitationatourofficesandprojectsites,andotherreturn-to-workmeasures.Wehaveanemployeeassistanceprogramtosupportemployeewell-beingwithafocusonmentalhealth.WealsocreatedaWorkplaceFlexibilityglobaltaskforcetodefinetheworkplaceofthefuture.

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Diversity,EquityandInclusion

WearecommittedtoadvancingDiversity,EquityandInclusion("DE&I").Webelievethateveryvoicematters,andwevalueDE&Iateverylevel.Weembracedifferentideas,perspectivesandbackgrounds.Welistenactively,respectoneanotherandfosteranenvironmentwithadeepsenseofprideandbelonging.WearefocusedonfourkeyimpactpillarstoadvanceDE&I:

• Championaninclusiveculture;

• Recruit,developandretaintalent;

• Enhanceemployeeexperience;and

• Improvesocialprogressandimpact.

Weengageandpartnerwithselectorganizationsthatrepresentandsupportgender,racialandethnicdiversityintheengineeringprofession,andweworkwithavarietyofuniversitystudentassociationstoreachtargetedpopulations.Weextendourjobpostingstotheappropriatestateworkforceagenciesaswellasasyndicatednetworkofpartnersites,inordertoreachadiversepoolofcandidates.

DevelopmentOpportunities

Oneofourtopprioritiesistoprovideongoingtraininganddevelopmentforouremployeesthroughmultiplevenues,includingFluorUniversity,ouronlinelearningplatform.Employeescanselectfromamongawidevarietyofself-paced,onlinetrainingcoursesandhaveoptionstosignupforlocation-specific,instructor-ledandvirtualcourses.Topicsrangefromdiscipline-specificandtargetedtechnicallearningtogeneralknowledgetopics,suchasleadership,businessacumen,communicationandinclusivemanagement.In2020,ouremployeesearnedmorethan98,000credithoursthroughFluorUniversity.

Wehavealsodevelopedseveralprogramstohelpemployeesadvancetheircareers,includingFluorFellowsforourtechnicalexpertsandMentoringCircles.Inaddition,wecurrentlyhavethreeemployeeresourcegroups:GrowingRepresentation&OpportunityforWomen("GROW"),GraduatesAdvancingtoProfessionalism("GAP")andEmergingLeadersGroup("ELG").

CommunityResponsibility

Partofbuildingahigh-performanceculturewithpurposeisofferingemployeesrobustandenrichingopportunitiestohelpbuildabetterfuturethroughvolunteerismandphilanthropy.Formorethan40years,ouremployeevolunteerprogram,FluorCares,hasgivenemployeesaconduitforgivingbacktothecommunitieswhereweliveandwork.In2020,employeesvolunteeredmorethan24,000hourstocharitableorganizationsandcauses.Additionally,employeespledged$3.6million,whichincludeda25percentcompanymatch,throughourNorthAmericaemployeegivingcampaign.

WeremainedtruetoourlegacyofgivingbackevenasCOVID-19continuedtoimpactlivesandcommunitiesinfar-reachingandprofoundways.Ouremployeescontinuedtoexhibitcompassionandgenerosityforthoseaffectedbythevirus.LocalcommunityrelationsteamsdirectedfinancialresourcestothemostsignificantCOVID-19reliefeffortsintheirlocalcommunitieswithcontributionsexceeding$0.7milliontolocalCOVID-19relieffundsorganizedbyourcommunitypartnersinsupportofmealservicecharities,criticalhumanneedsandschools.

InformationaboutourExecutiveOfficers

ThefollowinginformationisbeingfurnishedwithrespecttoourexecutiveofficersasofJanuary31,2021:

Name Age PositionwiththeCompany(1)AlanL.Boeckmann 72 ExecutiveChairman

JosephL.Brennan 53 ExecutiveVicePresidentandChiefFinancialOfficerJamesR.Breuer 52 GroupPresident,EnergySolutionsAlvinC.CollinsIII 47 GroupPresident,CorporateDevelopmentandSustainabilityDavidE.Constable 59 ChiefExecutiveOfficerThomasP.D'Agostino 62 GroupPresident,MissionSolutionsStacyL.Dillow 47 ExecutiveVicePresidentandChiefHumanResourcesOfficerMarkE.Fields 62 GroupPresident,ProjectExecutionJohnC.Regan 51 ExecutiveVicePresident,ControllerandChiefAccountingOfficerJohnR.Reynolds 64 ExecutiveVicePresident,ChiefLegalOfficerandSecretaryTerryW.Towle 60 GroupPresident,UrbanSolutions

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_______________________________________________________________________________

(1) AllreferencesaretopositionsheldwithFluorCorporation.AllofficersserveintheirrespectivecapacitiesatthepleasureoftheBoardofDirectors.

AlanL.Boeckmann

Mr.BoeckmannhasbeenExecutiveChairmansince2019.Priortohisretirementin2012,hepreviouslyservedasnon-executiveChairmanofthecompanyfrom2011to2012andChairmanandChiefExecutiveOfficerofthecompanyfrom2002to2011.Mr.Boeckmannfirstjoinedthecompanyin1974.

JosephL.Brennan

Mr.BrennanhasbeenExecutiveVicePresidentandChiefFinancialOfficersinceJuly2020.Priortothat,hewasSeniorVicePresidentandOperationsControllerin2020,SeniorVicePresidentandSegmentController—Energy&Chemicalsfrom2018to2020andVicePresidentandSegmentController—Energy&Chemicalsfrom2016to2018andasthegeneralmanagerofthecompany'sSouthernCaliforniaoperationsfrom2013to2016.Mr.Brennanjoinedthecompanyin1991.

JamesR.Breuer

Mr.BreuerhasbeenGroupPresident,EnergySolutionssinceJanuary2021.Priortothat,hewasPresident,Downstream—Energy&Chemicalsfrom2019to2021,VicePresidentandGeneralManager,SouthAmerica—Mining&Metalsfrom2017to2019andDirectorofOperations,ICAFluorfrom2013to2017.Mr.Breuerjoinedthecompanyin1993.

AlvinC.CollinsIII

Mr.CollinshasbeenGroupPresident,CorporateDevelopmentandSustainabilitysinceJanuary2021.Priortothat,hewasSeniorVicePresident,Operations—Energy&Chemicalsfrom2019to2021,SeniorVicePresident,GlobalBusinessDevelopment—Energy&Chemicalsin2019,SeniorVicePresident,OperationsinEurope,AfricaandtheMiddleEast—Energy&Chemicalsfrom2016to2019.Mr.Collinsjoinedthecompanyin1994.

DavidE.Constable

Mr.ConstablehasbeenChiefExecutiveOfficersinceJanuary2021,afterservingasamemberofFluor'sBoardofDirectorssince2019.HepreviouslyservedasChiefExecutiveOfficer(from2011)andChiefExecutiveOfficerandPresident(from2014)ofSasolLtd.,anintegratedenergyandchemicalcompany,until2016.Priortothat,hewasGroupPresident,ProjectOperationsatthecompanyfrom2009to2011andGroupPresident,Powerfrom2005to2009.Mr.Constablefirstjoinedthecompanyin1982.

ThomasP.D'Agostino

Mr.D'AgostinohasbeenGroupPresident,MissionSolutionssinceJanuary2021.Priortothat,hewasGroupPresident,Governmentfrom2017to2021,SeniorVicePresident,Sales—Governmentfrom2015to2017andSeniorVicePresident,StrategicPlanningandDevelopment—Governmentfrom2013to2015.Mr.D'Agostinojoinedthecompanyin2013.

StacyL.Dillow

Ms.DillowhasbeenExecutiveVicePresidentandChiefHumanResourcesOfficersince2019.Priortothat,shewasHeadofSupplyChainTransformation,SoutheastAsiaandAustralasiaatUnilever,aconsumergoodscompany,from2018to2019.Priortothat,shewasSeniorProjectDirector—Energy&Chemicalsatthecompanyfrom2014to2017.Ms.Dillowfirstjoinedthecompanyin1996.

MarkE.Fields

Mr.FieldshasbeenGroupPresident,ProjectExecutionsinceJanuary2021.Priortothat,hewasGroupPresident,Energy&Chemicalsfrom2019to2021,SeniorVicePresident,Energy&ChemicalsAmericasfrom2017to2019andSeniorVicePresident,ProjectDirector—Energy&Chemicalsfrom2009to2017.Mr.Fieldsjoinedthecompanyin1981.

JohnC.Regan

Mr.ReganhasbeenExecutiveVicePresident,ControllerandChiefAccountingOfficersinceJune2020.Priortojoiningthecompany,hewasExecutiveVicePresidentandChiefFinancialOfficerofAltaMesaResources,Inc.,anupstreamexplorationandproductioncompany,from2019to2020,andExecutiveVicePresidentandChiefFinancialOfficerofVineOilandGasLPandBrixOilandGasLP,privatecompaniesfocusedonnaturalgasexploration,from2015to2018.AltaMesa

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Resources,Inc.andcertainofitssubsidiariesfiledforprotectionunderChapter11oftheU.S.BankruptcyCodeinSeptember2019.

JohnR.Reynolds

Mr.ReynoldshasbeenExecutiveVicePresidentandChiefLegalOfficersince2019andSecretarysince2020.Priortothat,hewasVicePresidentandSeniorManagingGeneralCounselfrom2017to2019andManagingGeneralCounselfrom2005to2017.Mr.Reynoldsjoinedthecompanyin1985.

TerryW.Towle

Mr.TowlehasbeenGroupPresident,UrbanSolutionssinceJanuary2021.Priortothat,hewasGroupPresident,Infrastructure&Powerfrom2019to2021,SeniorVicePresident,ProjectDirector—Infrastructurefrom2015to2019andSeniorVicePresident,BusinessLinePresident—Infrastructurefrom2014to2015.Mr.Towlejoinedthecompanyin1985.

AvailableInformation

Ourwebsiteaddressiswww.fluor.com.YoumayobtainfreeelectroniccopiesofourannualreportsonForm10-K,quarterlyreportsonForm10-Q,currentreportsonForm8-K,andallamendmentstothosereportsonthe“InvestorRelations”portionofourwebsite,undertheheading“SECFilings”filedunder“FinancialInformation.”ThesereportsareavailableonourwebsiteassoonasreasonablypracticableafterweelectronicallyfilethemwiththeSEC.Thesereports,andanyamendmentstothem,arealsoavailableattheInternetwebsiteoftheSEC,http://www.sec.gov.Wealsouseourinvestorrelationswebsiteasachannelofdistributionforimportantcompanyinformation.Investorsandotherscanreceivenotificationsofnewinformationpostedonourinvestorrelationswebsiteinrealtimebysigningupfore-mailalertsandRSSfeeds.WealsomaintainvariousdocumentsrelatedtoourcorporategovernanceincludingourCorporateGovernanceGuidelines,ourBoardCommitteeChartersandourCodeofBusinessConductandEthicsforMembersoftheBoardofDirectorsonthe“Sustainability”portionofourwebsiteundertheheading“CorporateGovernanceDocuments”filedunder“Governance.”

Item1A. RiskFactors

Weoperateinacomplexandrapidlychangingglobalenvironmentthatinvolvesnumerousknownandunknownrisksanduncertaintiesthatcouldmateriallyadverselyaffectourbusiness,financialcondition,resultsofoperations,andstockprice.Therisksdescribedbelowhighlightsomeofthefactorsthathaveaffectedandcouldaffectusinthefuture.Wemayalsobeaffectedbyunknownrisksorrisksthatwecurrentlythinkareimmaterial.Ifanysucheventsactuallyoccur,ourbusiness,financialcondition,resultsofoperations,andstockpricecouldbemateriallyadverselyaffected.

SummaryRiskFactors

Thefollowingsummarizestherisksanduncertaintiesthatcouldmateriallyadverselyaffectourbusiness,financialcondition,resultsofoperationandstockprice.Youshouldreadthissummarytogetherwiththemoredetaileddescriptionofeachriskfactorcontainedbelow.

RisksRelatedtoourOperations

• COVID-19hashadandcouldcontinuetohaveamaterialadverseeffectonourbusinessoperations,resultsofoperationsandfinancialposition.

• Wearevulnerabletothecyclicalnatureofthemarketsweserve.• Ourrevenueandearningsarelargelydependentontheawardofnewcontracts,whichisdrivenbyourclients.• Thenatureofourcontracts,particularlyourlump-sumcontracts,subjectustorisksassociatedwithdelaysandcost

overruns,whichmaynotberecoverableandmayresultinreducedprofitsorlossesthatcouldhaveamaterialimpactonourfinancialconditionorresultsofoperations.

• IntensecompetitionintheglobalEPCindustrycanreduceourrevenueandprofits.• Thesuccessofouruseofteamingarrangementsandjointventuresdependsonthesatisfactoryperformancebyour

venturepartnersoverwhomwemayhavelittleornocontrol,andthefailureofthosepartnerstoperformtheirobligationscouldimposeadditionalobligationsonusthatcouldhaveamaterialimpactonourfinancialconditionandresultsofoperations.

• Cybersecuritybreachesofoursystemsandinformationtechnologycouldadverselyimpactourabilitytooperate.• Wehaveinternationaloperationsthataresubjecttoforeigneconomicandpoliticaluncertaintiesandrisks.

Unexpectedandadversechangesintheforeigncountriesinwhichweoperatecouldresultinprojectdisruptions,increasedcostandpotentiallosses.

• Ourbacklogissubjecttounexpectedadjustmentsandcancellations.

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• Ouremployeesworkonprojectsthatareinherentlydangerousandinlocationswheretherearehighsecurityrisks,andafailuretomaintainasafeworksitecouldresultinsignificantlosses.

• Ourbusinessescouldbemateriallyandadverselyaffectedbyeventsoutsideofourcontrol.• Ouractualresultscoulddifferfromtheassumptionsandestimatesusedtoprepareourfinancialstatements.• Ifweexperiencedelaysand/ordefaultsinclientpayments,wecouldsufferliquidityproblemsorwecouldbeunable

torecoverallexpenditures.• Wearedependentuponsuppliersandsubcontractorstocompletemanyofourcontracts.• OurU.S.governmentcontractsandcontractingrightsmaybeterminatedorotherwiseadverselyimpactedatany

time,andourinabilitytowinorrenewgovernmentcontractsduringregulatedprocurementprocessescouldharmouroperationsandreduceourprojectsandrevenues.

• Ourcontinuedsuccessrequiresustohireandretainqualifiedpersonnel.• Oureffectivetaxrateandtaxpositionsmayvary.• Systemsandinformationtechnologyinterruption,aswellasnewsystemsimplementation,couldadverselyimpact

ourabilitytooperateandouroperatingresults.• Itcanbeverydifficultandexpensivetoobtaintheinsuranceweneedforourbusinessoperations.• Ifwedonothaveadequateindemnificationforournuclearservices,itcouldadverselyaffectourbusinessand

financialcondition.• Foreigncurrencyriskscouldhaveanadverseimpactonrevenue,earningsand/orbacklog.• Thelossofoneorafewclientscouldhaveanadverseeffectonus.• Damagetoourreputationcouldinturncausedamagetoourbusiness.• Ourbusinessmaybenegativelyimpactedifweareunabletoadequatelyprotectintellectualpropertyrights.• Ourresultsofoperationscouldbeadverselyaffectedasaresultofassetimpairments.

RisksRelatedtoFinancialReporting

• WeidentifiedmaterialweaknessesinourICFRin2019,whichwereremediatedin2020.Ifweidentifymaterialweaknessesinthefutureorotherwisefailtomaintainaneffectivesystemofinternalcontrols,wemaynotbeabletoaccuratelyandtimelyreportourfinancialresults.

• OurpriorfailuretoprepareandtimelyfileourperiodicreportswiththeSEClimitsouraccesstothepublicmarketstoraisedebtorequitycapitalandrestrictsourabilitytoissueequitysecurities.

• Werestatedcertainofourpreviouslyissuedfinancialstatementsduring2020,whichresultedinunanticipatedcostsandmayaffectinvestorconfidenceandraisereputationalissues.

RisksRelatedtoIndebtednessandotherCreditRelatedRisks

• Adversecreditandfinancialmarketconditionscouldimpairour,ourclients'andourpartners'borrowingcapacity,whichcouldnegativelyaffectourbusinessoperations,profitsandgrowthobjectives.

• Ourindebtednesscouldleadtoadverseconsequencesoradverselyaffectourfinancialpositionandpreventusfromfulfillingourobligationsundersuchindebtedness,andanyrefinancingofthisdebtcouldbeatsignificantlyhigherinterestrates.

• Wemaybeunabletowinnewcontractawardsifwecannotprovideclientswithlettersofcredit,bondsorothersecurityorcreditenhancements.

LegalandRegulatoryRisks

• Fromtimetotime,weareinvolvedinlitigationandregulatoryproceedings,potentialliabilityclaimsandcontractdisputesthatmayhaveamaterialimpactonourfinancialconditionandresultsofoperations.

• Ourfailuretorecoveradequatelyonclaimsagainstprojectowners,subcontractorsorsuppliersforpaymentorperformancecouldhaveamaterialeffectonourfinancialresults.

• WecouldbeadverselyaffectedbyviolationsoftheU.S.ForeignCorruptPracticesActandsimilarworldwideanti-briberylaws.

• Wecouldbeadverselyimpactedifwefailtocomplywithdomesticandinternationalimportandexportlaws.• Employee,agentorpartnermisconductorouroverallfailuretocomplywithlawsorregulationscouldweakenour

abilitytowincontracts,whichcouldresultinreducedrevenuesandprofits.• Neworchanginglegalrequirements,includingthoserelatingtoclimatechange,couldadverselyaffectouroperating

results.• Pastandfutureenvironmental,safetyandhealthregulationscouldimposesignificantadditionalcostsonusthat

reduceourprofits.

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RisksRelatedtoMergers&AcquisitionsandStrategicPlans

• Wecannotassurethesuccessfulimplementationofourstrategicandoperationalinitiatives.• Anyacquisitions,dispositionsorotherinvestmentsaresubjecttovariousrisksoruncertaintiesandmaynotbe

completedinaccordancewiththeexpectedplansoranticipatedtimeframe,oratall,andwillinvolvesignificanttimeandexpense,whichcoulddisruptoradverselyaffectourbusiness.

• Wemaybeunabletosuccessfullyintegrateacquisitionsorinvestmentswemakeintoourbusinessesorcapturetheanticipatedbenefitsoftheseacquisitionsandinvestments.

RisksRelatedtoourCommonStock

• Intheeventweissueadditionalequitysecurities,stockholders'ownershippercentageswouldbediluted.• Delawarelaw,ourcharterdocumentsandourstockholderrightsagreementmayimpedeordiscourageatakeoveror

changeofcontrol.

RisksRelatedtoourOperations

COVID-19hashadandcouldcontinuetohaveamaterialadverseeffectonourbusinessoperations,resultsofoperationsandfinancialposition.

Therehavebeenextraordinaryandwide-rangingactionstakenbyinternational,federal,stateandlocalpublichealthandgovernmentalauthoritiesinresponsetoCOVID-19,includingquarantines,governmentrestrictionsonmovement,businessclosuresandsuspensions,canceledeventsandactivities,self-isolation,andothervoluntaryormandatedchangesinbehavior.Boththeoutbreakofthediseaseandactionsinresponsetheretohavecreatedsignificantuncertaintyandeconomicvolatilityanddisruption,whichhaveimpactedandmaycontinuetoimpactourworkforceandoperationsandhavemateriallyadverselyaffectedandmaycontinuetomateriallyadverselyaffectourresultsofoperationsandfinancialperformance,including,butnotlimitedto,thefollowing:

• Wehaveexperienced,andmaycontinuetoexperience,reductionsindemandforcertainofourservicesandthedelayorabandonmentofongoingoranticipatedprojectsduetoourclients’,suppliers’andotherthirdparties’diminishedfinancialconditionsorfinancialdistress,aswellasgovernmentalbudgetconstraints.Theseimpactsareexpectedtocontinueorworsenifstay-at-home,socialdistancing,travelrestrictionsandothersimilarordersorrestrictionsremaininplaceforanextendedperiodoftimeorarere-imposedafterbeingliftedoreased.

• Someclientshavebeen,andmayinthefuturebe,unabletomeettheirpaymentobligationstousinatimelymanner,includingasaresultofdeterioratingfinancialconditionorbankruptcy.Further,otherthirdparties,suchassuppliers,subcontractors,jointventurepartnersandotheroutsidebusinesspartners,haveexperiencedsignificantdisruptionsintheirabilitytosatisfytheirobligationswithrespecttous,ortheymaybeunabletodosointhefuturealtogether.

• Manyemployers,includingus,andgovernmentscontinuetorequireallorasignificantportionofemployeestoworkremotely.Whilemanyofouremployeescaneffectivelyperformtheirresponsibilitieswhileworkingremotely,someworkmaynotbecompletedasefficientlyasifitwereperformedonsite.Additionally,wemaybeexposedtounexpectedcybersecurityrisksandadditionalinformationtechnology-relatedexpensesasaresultoftheseremoteworkingrequirements.

• Illness,travelrestrictionsorotherworkforcedisruptionshaveaffected,andmaycontinuetoaffect,oursupplychain,ourabilitytotimelyandsatisfactorilycompleteourclients’projects,ourabilitytoprovideservicestoourclientsorourotherbusinessprocesses.

• Wehavefurloughedcertainemployeesandmayneedtofurtherfurloughorreducethenumberofemployeesthatweemploy.Wemayexperiencedifficultiesassociatedwithhiringadditionalemployeesorreplacingemployees,inparticularwithrespecttorolesthatrequiresecurityclearancesorotherspecialqualificationsthatmaybelimitedordifficulttoobtain.

• InadditiontoexistingtravelrestrictionsimplementedinresponsetoCOVID-19,jurisdictionsmaycontinuetocloseborders,imposeprolongedquarantinesandfurtherrestricttravelandbusinessactivity,whichcouldmateriallyimpairourabilitytoconductouroperations,tosourcesuppliesthroughtheglobalsupplychainandtoidentify,pursueandcapturenewbusinessopportunities,andwhichcouldcontinuetorestricttheabilityofouremployeestoaccesstheirworkplaces.WealsofacethepossibilityofincreasedoverheadorotherexpensesresultingfromcompliancewithanyfuturegovernmentordersorothermeasuresenactedinresponsetoCOVID-19.

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• Weoperateinmanycountriesaroundtheworld,andcertainofthosecountries’governmentsmaybeunabletoeffectivelymitigatethefinancialorotherimpactsofCOVID-19ontheireconomiesandworkforcesandouroperationstherein.

TheextenttowhichCOVID-19willcontinuetoimpactusdependsonnumerousevolvingfactorsandfuturedevelopmentsthatwearenotcurrentlyabletopredictandmayalsoexacerbateotherrisksdiscussedinthis202010-K,anyofwhichcouldhaveamaterialadverseeffectonus,ourbusinessoperations,resultsofoperationsandfinancialposition.

Wearevulnerabletothecyclicalnatureofthemarketsweserve.

Thedemandforourservicesisdependentupontheexistenceofprojectswithengineering,procurement,construction,fabrication,maintenanceandmanagementneeds.Ourclients'interestinapprovingnewprojects,budgetsforcapitalexpendituresandneedforourserviceshaveinthepastbeen,andmayinthefuturebe,adverselyaffectedby,amongotherthings,pooreconomicconditions,lowoilprices,politicaluncertaintiesandcurrencydevaluations.Clientshavebeenandremainselectiveinhowtheyallocateandexpendtheircapital,whichhasresultedinareductionofthenumberofprojectswemaybidonandwin,especiallythelargerscaleprojectsinwhichwespecialize.Forexample,inourEnergy&Chemicalssegment,capitalexpendituresbyourclientsareinfluencedbyfactorssuchasprevailingpricesandexpectationsaboutfuturepricesforunderlyingcommodities,technologicaladvances,thecostsofexploration,productionanddeliveryofproduct,domesticandinternationalpolitical,military,regulatoryandeconomicconditionsandothersimilarfactors.Asaresultofthedeclineinoilpricesinthefirstquarterof2020,demandforourservicesinourEnergy&Chemicalssegmenthasbeenadverselyimpacted.Thereisnoguaranteethatthecurrentrecoveryinoilpriceswillbesustained,andthetimingandextentofanyfutureimprovementsindemandremainuncertain.Industriesservedbythatsegmentandmanyoftheothersweservehavehistoricallybeenandwillcontinuetobevulnerabletogeneraldownturns,whichinturncouldmateriallyandadverselyaffectthedemandforourservices.

Ourrevenueandearningsarelargelydependentontheawardofnewcontracts,whichisdrivenbyourclients.

Theawardingandtimingofprojectsisunpredictableanddrivenbyourclients.Awards,includingexpansionsofexistingprojects,ofteninvolvecomplexandlengthynegotiationsandcompetitivebiddingprocesses.Theseprocessescanbeimpactedbyawidevarietyoffactorsincludingaclient'sdecisiontonotproceedwiththedevelopmentofaproject,governmentalapprovals,financingcontingencies,oilprices,environmentalconditionsandoverallmarketandeconomicconditions.Wemaynotwincontractsthatwehavebidonduetoprice,aclient'sperceptionofourabilitytoperformand/orperceivedtechnologyadvantagesheldbyothers.Manyofourcompetitorsmaybemoreinclinedtotakegreaterorunusualrisksorincludetermsandconditionsinacontractthatwemightnotdeemacceptable,especiallywhenthemarketsfortheserviceswetypicallyofferarerelativelysoft.Becauseasignificantportionofourrevenueisgeneratedfromlargeprojects,ourresultsofoperationscanfluctuatedependingonwhetherandwhenlargeprojectawardsoccurandthecommencementandprogressofworkunderlargecontractsalreadyawarded.Asaresult,wearesubjecttotheriskoflosingnewawardstocompetitorsortheriskthatrevenuemaynotbederivedfromawardedprojectsasquicklyasanticipated.Additionally,uncertaineconomicandpoliticalconditionsmaymakeitdifficultforourclients,ourvendorsandustoaccuratelyforecastandplanfuturebusinessactivities.Forexample,recentchangestoU.S.policiesrelatedtoglobaltradeandtariffshaveresultedinuncertaintysurroundingthefutureoftheglobaleconomyaswellasretaliatorytrademeasuresimplementedbyothercountries.

Thenatureofourcontracts,particularlyourlump-sumcontracts,subjectustorisksassociatedwithdelaysandcostoverruns,whichmaynotberecoverableandmayresultinreducedprofitsorlossesthatcouldhaveamaterialimpactonourfinancialconditionorresultsofoperations.

Becauseourprojectsareoftentechnicallycomplex,withmultiplephasesoccurringoverseveralyears,weincurrisksinourprojectexecutionactivities.Theseriskscouldresultinprojectdelays,costoverrunsorotherproblemsandcanincludethefollowing:

• Incorrectassumptionsrelatedtoproductivity,schedulingestimatesorfutureeconomicconditions,includingwithrespecttotheimpactsofinflationonlump-sumcontracts;

• Unanticipatedtechnicalproblems,includingdesignorengineeringissues;

• Inaccuraterepresentationsofsiteconditionsandunanticipatedchangesintheprojectexecutionplan;

• Projectmodificationscreatingunanticipatedcostsordelaysandfailuretoproperlymanageprojectmodifications;

• Inabilitytoachieveguaranteedperformanceorqualitystandardswithregardtoengineering,constructionorprojectmanagementobligations;

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• Insufficientorinadequateprojectexecutiontoolsandsystemsneededtorecord,track,forecastandcontrolcostandschedule;

• Relianceonhistoriccostand/orexecutiondatathatisnotrepresentativeofcurrenteconomicand/orexecutionconditions;

• Failuretoaccuratelyestimatethetimingandcostofprojects,includingduetounforeseenincreasesinthecostoflabor;

• Unanticipatedincreasesinthecostofrawmaterials,componentsorequipment,includingduetotheimpositionofimporttariffs;

• Failuretoproperlymakejudgmentsinaccordancewithapplicableprofessionalstandards,includingengineeringstandards;

• Failuretoproperlyassessandupdateappropriateriskmitigationstrategiesandmeasures;

• Difficultiesrelatedtotheperformanceofourclients,partners,subcontractors,suppliersorotherthirdparties;

• Delaysorproductivityissuescausedbyweather;and

• Changesinlocallawsordifficultiesordelaysinobtainingpermits,rightsofwayorapprovals.

Theseandotherriskshaveinthepastandmayinthefutureresultinourfailuretoachievecontractualcostorschedulecommitments,safetyperformance,overallclientsatisfactionorotherperformancecriteria.Asaresult,wemayreceivelowerfeesorloseourabilitytoearnincentivefees.Inothercases,ourfeewillnotchangebutwewillhavetocontinuetoperformworkwithoutadditionalfeesuntiltheperformancecriteriaisachieved.Wemayalsoberequiredtopayliquidateddamagesifwefailtocompleteaprojectonschedule.Inaddition,ifwefailtomeetguaranteedperformanceorqualitystandards,wemaybeheldresponsibleundertheguaranteeorwarrantyprovisionsofourcontractforcostimpacttotheclient,generallyintheformofcontractuallyagreed-uponliquidateddamagesoranobligationtore-performwork.Totheextenttheseeventsoccur,thetotalcosttotheproject(includinganyliquidateddamageswebecomeliabletopay)couldbematerialandcould,insomecircumstances,equalorexceedthefullvalueofthecontract.Insuchevents,ourfinancialconditionorresultsofoperationscouldbemateriallyandnegativelyimpacted.

Incircumstanceswherethecontractislump-sumortherevenueisotherwisefixed,webearsignificantriskfordelaysandcostoverruns.Reimbursablecontracttypes,suchasthosethatincludenegotiatedhourlybillingrates,mayrestrictthekindsoramountsofcoststhatarereimbursable,thereforeexposingustotheriskthatwemayincurcertaincostsinexecutingthesecontractsthatareaboveourestimatesandnotrecoverablefromourclients.

IntensecompetitionintheglobalEPCindustrycanreduceourrevenueandprofits.

Weservemarketsthatarehighlycompetitiveandinwhichalargenumberofmultinationalcompaniescompete.Thesemarketsrequiresubstantialresourcesandinvestmentintechnologyandskilledpersonnel.Wealsoseeacontinuinginfluxofnon-traditionalcompetitorsofferingbelow-marketpricingwhileacceptinggreaterrisk.Competitionplacesdownwardpressureonourcontractpricesandprofitmargins,andhasinthepastforced,andmayinthefutureforce,ustoacceptcontractualtermsandconditionsthatarenotnormalorcustomary,therebyincreasingtheriskoflossesonsuchcontracts.Intensecompetitionisexpectedtocontinueinthesemarkets,presentinguswithsignificantchallengesinourabilitytomaintainstronggrowthratesandacceptableprofitmargins.Totheextentweareunabletomeetthesecompetitivechallenges,wecouldloserevenueandexperienceanoverallreductioninourprofits.

Thesuccessofouruseofteamingarrangementsandjointventuresdependsonthesatisfactoryperformancebyourventurepartnersoverwhomwemayhavelittleornocontrol,andthefailureofthosepartnerstoperformtheirobligationscouldimposeadditionalobligationsonusthatcouldhaveamaterialimpactonourfinancialconditionandresultsofoperations.

Intheordinarycourseofbusiness,andashasbecomeincreasinglycommoninourindustry,weexecutespecificprojectsandotherwiseconductcertainoperationsthroughjointventures,consortiums,partnershipsandothercollaborativearrangements(collectively,"ventures").Wehavevariousownershipinterestsintheseventures,withsuchownershiptypicallybeingproportionatetoourdecision-makinganddistributionrights.Theventuresgenerallycontractdirectlywiththethirdpartyclient;however,servicesmaybeperformeddirectlybytheventure,ormaybeperformedbyus,ourpartners,oracombinationthereof.

Oursuccessinmanymarketsisdependent,inpart,onthepresenceorcapabilityofalocalpartner.Ifweareunabletocompetealone,orwithaqualitypartner,ourabilitytowinworkandsuccessfullycompleteourcontractsmaybeimpacted.

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Differencesinopinionsorviewsbetweenventurepartnerscanresultindelayeddecision-makingorfailuretoagreeonmaterialissues,whichcouldadverselyaffectthebusinessandoperationsofourventures.Inmanyofthecountriesinwhichweengageinjointventures,itmaybedifficulttoenforceourcontractualrightsundertheapplicablejointventureagreement.

Attimes,wealsoparticipateinventureswherewearenotacontrollingpartyorwhereweteamwithunaffiliatedpartiesonaparticularprojectbid.Insuchinstances,wemayhavelimitedcontroloverventuredecisionsandactions,includinginternalcontrolsandfinancialreporting,whichmayhaveanimpactonourbusiness.Ifinternalcontrolproblemsarisewithinthejointventure,orifourjointventurepartnershavefinancialoroperationalissues,therecouldbeamaterialimpactonourbusiness,financialconditionorresultsofoperations.

Thesuccessoftheseandotherventuresalsodepends,inlargepart,onthesatisfactoryperformancebyourventurepartnersoftheirventureobligations,includingtheirobligationtocommitworkingcapital,equityorcreditsupportasrequiredbytheventureandtosupporttheirindemnificationandothercontractualobligations.Ifourventurepartnersfailtosatisfactorilyperformtheirventureobligations,theventuremaybeunabletoadequatelyperformordeliveritscontractedservices.Underthesecircumstances,wemayberequiredtomakeadditionalinvestmentsandprovideadditionalservicestoensuretheadequateperformanceanddeliverybytheventureofthecontractedservicesandtomeetanyperformanceguarantees.Fromtimetotime,inordertoestablishorpreservearelationship,ortobetterensureventuresuccess,wemayacceptrisksorresponsibilitiesfortheventurethatarenotnecessarilyproportionatewiththerewardweexpecttoreceiveorthatmaydifferfromrisksorresponsibilitieswewouldnormallyacceptinourownoperations.Wemayalsobesubjecttojointandseveralliabilityforourventurepartnersundertheapplicablecontractsforventureprojects.Theseadditionalobligationscouldresultinreducedprofitsor,insomecases,increasedliabilitiesorsignificantlossesforuswithrespecttotheventure,andinturn,ourbusinessandoperations.Inaddition,afailurebyaventurepartnertocomplywithapplicablelaws,rulesorregulationscouldnegativelyimpactourbusinessandreputationandcouldresultinfines,penalties,suspensionor,inthecaseofgovernmentcontracts,evendebarment.

Cybersecuritybreachesofoursystemsandinformationtechnologycouldadverselyimpactourabilitytooperate.

Weutilize,develop,installandmaintainanumberofinformationtechnologysystemsbothforusandforothers.Variousprivacyandsecuritylawsrequireustoprotectsensitiveandconfidentialinformationfromdisclosure.Inaddition,weareboundbyourclientandothercontracts,aswellasourownbusinesspractices,toprotectconfidentialandproprietaryinformation(whetheritbeoursorathirdparty'sinformationentrustedtous)fromdisclosure.Ourcomputersystems,aswellasthoseofourclients,contractorsandothervendors,facethethreatofunauthorizedaccess,computerhackers,viruses,maliciouscode,cyberattacks,phishingandothersecurityincursionsandsystemdisruptions,includingattemptstoimproperlyaccessourconfidentialandproprietaryinformationaswellastheconfidentialandproprietaryinformationofourclientsandotherbusinesspartners.Whileweendeavortomaintainindustry-acceptedsecuritymeasuresandtechnologytosecureourcomputersystemsandwhileweendeavortoensureourcloudvendorsthatstoreourdatamaintainsimilarmeasures,thesesystemsandtheinformationstoredonthesesystemsmaystillbesubjecttothreats.Therecanbenoassurancethatoureffortswillprotectusagainstallthreats.Further,asthesesecuritythreatscontinuetoevolve,wemayberequiredtodevoteadditionalresourcestoprotect,detectandrespondagainstsuchthreats.Apartywhocircumventsoursecuritymeasures,orthoseofourclients,contractorsorothervendors,couldmisappropriateconfidentialorproprietaryinformation,improperlymanipulatedata,orcausedamageorinterruptionstosystems.Anyoftheseeventscoulddamageourreputation,resultinlitigationandregulatoryfinesandpenalties,orhaveamaterialadverseeffectonourbusiness,financialconditionorresultsofoperations.Furthermore,whilewemaintaininsurancethatspecificallycoverscybersecuritythreats,ourcoveragemaynotsufficientlycoveralltypesoflossesorclaimsthatmayarise.

Wehaveinternationaloperationsthataresubjecttoforeigneconomicandpoliticaluncertaintiesandrisks.Unexpectedandadversechangesintheforeigncountriesinwhichweoperatecouldresultinprojectdisruptions,increasedcostandpotentiallosses.

Ourbusinessissubjecttointernationaleconomicandpoliticalconditionsthatchange(sometimesfrequently)forreasonsthatarebeyondourcontrol.Weexpectthatasignificantportionofourrevenueandprofitswillcontinuetocomefrominternationalprojectsfortheforeseeablefuture.

Operatingintheinternationalmarketplaceexposesustoanumberofrisksincluding:

• abruptchangesingovernmentpolicies,laws,treaties(includingthoseimpactingtrade),regulationsorleadership;

• embargoesorothertraderestrictions,includingsanctions;

• restrictionsoncurrencymovement;

• taxortariffchanges;

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• currencyexchangeratefluctuations;

• changesinlaborconditionsanddifficultiesinstaffingandmanaginginternationaloperations,includinglogisticalandcommunicationchallenges;

• U.S.governmenttradeorotherpolicychangesinrelationtotheforeigncountriesinwhichweorourclientsoperate;

• othersocial,politicalandeconomicinstability,includingrecessionsandothereconomiccrisesinotherregions;

• naturaldisastersandpublichealthcrises,includingpandemicssuchasCOVID-19;

• expropriationandnationalizationofourassetsinaforeigncountry;

• internationalhostilities;and

• unrest,civilstrife,actsofwar,terrorismandinsurrection.

Also,thelackofawell-developedlegalsysteminsomeofthecountrieswhereweoperatemaymakeitdifficulttoenforceourcontractualrightsortodefendourselfagainstclaimsmadebyothers.Weoperateinlocationswherethereisasignificantamountofpoliticalrisk.Inaddition,militaryactionorcontinuedunrestcouldimpactthesupplyorpricingofoil,disruptouroperationsintheregionandelsewhere,andincreaseoursecuritycosts.Ourlevelofexposuretotheserisksmayvarywitheachproject,dependingonthelocationoftheprojectanditsstageofcompletion.Forexample,ourriskexposurewithrespecttoaprojectinanearlydevelopmentphase,suchasengineering,willgenerallybelessthanourriskexposureonaprojectthatisintheconstructionphase.Totheextentthatourinternationalbusinessisaffectedbyunexpectedandadverseforeigneconomicandpoliticalconditionsandrisks,wemayexperienceprojectdisruptionsandlosses.Projectdisruptionsandlossescouldsignificantlyreduceouroverallrevenueandprofits.

Ourbacklogissubjecttounexpectedadjustmentsandcancellations.

Ourbackloggenerallyconsistsofprojectsforwhichwehaveanexecutedcontractorcommitmentwithaclientandreflectsourexpectedrevenuefromthecontractorcommitment,whichisoftensubjecttorevisionovertime.Wecannotguaranteethattherevenueprojectedinourbacklogwillberealizedorprofitableorwillnotbesubjecttodelayorsuspension.Projectcancellations,scopeadjustmentsordeferrals,orforeigncurrencyfluctuationsmayoccurwithrespecttocontractsreflectedinourbacklogandcouldreducethedollaramountofourbacklogandtherevenueandprofitsthatweactuallyearn;or,maycausetherateatwhichweperformonourbacklogtodecrease.Mostofourcontractshaveterminationforconvenienceprovisionsinthemallowingclientstocancelprojectsalreadyawardedtous.Ourcontractstypicallyprovideforthepaymentoffeesearnedthroughthedateofterminationandthereimbursementofcostsincurredincludingdemobilizationcosts.Inaddition,projectsmayremaininourbacklogforanextendedperiodoftime.Duringperiodsofeconomicslowdown,ordecreasesand/orinstabilityinoilprices,theriskofprojectsbeingsuspended,delayedorcanceledgenerallyincreases.Finally,poorprojectorcontractperformancecouldalsoimpactourbacklogandprofits.Suchdevelopmentscouldhaveamaterialadverseeffectonourbusinessandourprofits.

Ouremployeesworkonprojectsthatareinherentlydangerousandinlocationswheretherearehighsecurityrisks,andafailuretomaintainasafeworksitecouldresultinsignificantlosses.

Weoftenworkoncomplexprojects,frequentlyingeographicallyremoteorhigh-risklocationsthataresubjecttopolitical,socialoreconomicrisks,orwarorcivilunrest.Inthoselocationswherewehaveemployeesoroperations,wemayexpendsignificanteffortsandincursubstantialsecuritycoststomaintainthesafetyofourpersonnel.Inaddition,ourprojectsitescanplaceouremployeesandothersnearlargeequipment,dangerousprocessesorsubstancesorhighlyregulatedmaterials,andinchallengingenvironments.Safetyisaprimaryfocusofourbusinessandiscriticaltoourreputationandperformance.Manyofourclientsrequirethatwemeetcertainsafetycriteriatobeeligibletobidoncontracts,andsomeofourcontractfeesorprofitsaresubjecttosatisfyingsafetycriteria.Unsafeworkconditionsalsohavethepotentialofincreasingemployeeturnover,increasingprojectcostsandraisingouroperatingcosts.Ifwefailtoimplementappropriatesafetyproceduresand/orifourproceduresfail,ouremployeesorothersmaysufferinjuriesorevenlossoflife,thecompletionofaprojectcouldbedelayedandwecouldexperienceinvestigationsorlitigation.Althoughwemaintainfunctionalgroupswhoseprimarypurposeistoimplementeffectivehealth,safetyandenvironmentalproceduresthroughoutourcompany,thefailuretocomplywithsuchprocedures,clientcontractsorapplicableregulationscouldsubjectustolossesandliability.Despitetheseactivities,intheselocationsandatthesesites,wecannotguaranteethesafetyofourpersonnel,norcanweguaranteeourwork,equipmentorsupplieswillbefreefromdamage.

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Ourbusinessescouldbemateriallyandadverselyaffectedbyeventsoutsideofourcontrol.

Extraordinaryorforcemajeureeventsbeyondourcontrol,suchasnaturalorman-madedisasters,severeweatherconditions,publichealthcrises,politicalcrisesorothercatastrophicevents,couldnegativelyimpactourabilitytooperateorincreaseourcoststooperate.Sucheventsmayresultindisruptionstoouroperations;evacuationofpersonnel;increasedlaborandmaterialcostsorshortages;inabilitytodelivermaterials,equipmentandpersonneltojobsitesinaccordancewithcontractschedules;andlossofproductivity.Wemayremainobligatedtoperformourservicesafteranysuchevents,unlessacontractprovisionprovidesuswithrelieffromourobligations.Theextracostsincurredasaresultoftheseeventsmaynotbereimbursedbyourclients.Ifwearenotabletoreactquicklytosuchevents,orifahighconcentrationofourprojectsareimpactedbysuchanevent,ouroperationsmaybeadverselyaffected.Inaddition,ifwecannotcompleteourcontractsontime,wemaybesubjecttopotentialliabilityclaimsbyourclients,whichmayreduceourprofitsandresultinlosses.

Ouractualresultscoulddifferfromtheassumptionsandestimatesusedtoprepareourfinancialstatements.

Inpreparingourfinancialstatements,wemakeestimatesandassumptionsthroughthefilingdateofthe202010-K.Theseestimatesandassumptionsaffectthereportedvaluesofassets,liabilities,revenueandexpenses,andthedisclosureofcontingentassetsandliabilities.Areasrequiringsignificantestimatesbyourmanagementinclude:

• recognitionofcontractrevenue,costs,profitsorlossesinapplyingtheprinciplesofpercentage-of-completionaccounting;

• recognitionofrevenuesrelatedtoprojectincentivesorawardsweexpecttoreceive;

• recognitionofrecoveriesundercontractchangeordersorclaims;

• estimatedamountsforexpectedprojectlosses,warrantycosts,contractclose-outorothercosts;

• collectabilityofbilledandunbilledaccountsreceivableandtheneedandamountofanyallowancefordoubtfulaccounts;

• assetvaluations;

• incometaxprovisionsandrelatedvaluationallowances;

• determinationofexpenseandpotentialliabilitiesunderpensionandotherpost-retirementbenefitprograms;and

• accrualsforotherestimatedliabilities,includinglitigationandinsurancerevenues/reserves.

Estimatesarebasedonmanagement'sreasonableassumptionsandexperience,butareonlyestimates.Ouractualbusinessandfinancialresultscoulddifferfromourestimatesofsuchresultsduetochangesinfactsandcircumstances,whichcouldhaveamaterialnegativeimpactonourfinancialconditionandreportedresultsofoperations.Further,werecognizecontractrevenueasworkonacontractprogresses.Thecumulativeamountofrevenuerecordedonacontractatanypointintimeisthatpercentageoftotalestimatedrevenuesthatcostsincurredtodatebeartoestimatedtotalcosts.Accordingly,contractrevenueandtotalcostestimatesarereviewedandrevisedastheworkprogresses.Adjustmentsarereflectedincontractrevenueintheperiodwhensuchestimatesarerevised.Suchadjustmentscouldbematerialandcouldresultinreducedprofitability.

Ifweexperiencedelaysand/ordefaultsinclientpayments,wecouldsufferliquidityproblemsorwecouldbeunabletorecoverallexpenditures.

Becauseofthenatureofourcontracts,wesometimescommitresourcestoprojectspriortoreceivingpaymentsfromclientsinamountssufficienttocoverexpendituresastheyareincurred.Someofourclientshavefounditdifficulttopayinvoicesforourservicestimely,increasingtheriskthatouraccountsreceivablecouldbecomeuncollectibleandultimatelybewrittenoff.Incertaincases,ourclientsforourlargeprojectsareproject-specificentitiesthatdonothavesignificantassetsotherthantheirinterestsintheproject.Fromtimetotime,ithasbeenandmayinthefuturebedifficultforustocollectpaymentsowedtousbytheseclients.Inaddition,clientsmayrequestextensionofthepaymenttermsotherwiseagreedtounderourcontracts.Delaysinclientpaymentsmayrequireustomakeaworkingcapitalinvestment,whichcouldimpactourcashflowsandliquidity.Ifaclientfailstopayinvoicesonatimelybasisordefaultsinmakingitspaymentsonaprojectinwhichwehavedevotedsignificantresources,therecouldbeamaterialadverseeffectonourresultsofoperationsorliquidity.

Wearedependentuponsuppliersandsubcontractorstocompletemanyofourcontracts.

Someoftheworkperformedunderourcontractsisperformedbythird-partysubcontractors.Wealsorelyonthird-partysupplierstoprovidemuchoftheequipmentandmaterialsusedforprojects.Ifweareunabletohirequalified

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subcontractorsorfindqualifiedsuppliers,ourabilitytosuccessfullyortimelycompleteaprojectcouldbeimpaired.Iftheamountwearerequiredtopayforsubcontractorsorequipmentandsuppliesexceedswhatwehaveestimated,especiallyinalump-sumcontract,wemaysufferlossesonthesecontracts.Ifasupplierorsubcontractorfailstoprovidesupplies,technology,equipmentorservicesasrequiredunderacontracttous,ourjointventurepartner,ourclientoranyotherpartyinvolvedintheprojectforanyreason,orprovidessupplies,technology,equipmentorservicesthatarenotanacceptablequality,wemayberequiredtosourcethosesupplies,technology,equipmentorservicesonadelayedbasisoratahigherpricethananticipated,whichcouldimpactcontractprofitability.Inaddition,faultyworkmanship,equipmentormaterialscouldimpacttheoverallproject,resultinginclaimsagainstusforfailuretomeetrequiredprojectspecifications.Theserisksmaybeintensifiedduringaneconomicdownturnifthesesuppliersorsubcontractorsexperiencefinancialdifficultiesorfinditdifficulttoobtainsufficientfinancingtofundtheiroperationsoraccesstobonding,andarenotabletoprovidetheservicesorsuppliesnecessaryforourbusiness.Inaddition,ininstanceswherewerelyonasinglecontractedsupplierorsubcontractororasmallnumberofsuppliersorsubcontractors,ifasubcontractororsupplierweretofail,theremaybenoavailablereplacementtechnology,equipment,materialsorservicesonatimelybasisoratthecostswehadanticipated.Afailurebyathird-partysubcontractororsuppliertocomplywithapplicablelaws,rulesorregulationscouldnegativelyimpactourbusinessandreputationandcouldresultinfines,penalties,suspension,orinthecaseofgovernmentcontracts,evendebarment.

OurU.S.governmentcontractsandcontractingrightsmaybeterminatedorotherwiseadverselyimpactedatanytime,andourinabilitytowinorrenewgovernmentcontractsduringregulatedprocurementprocessescouldharmouroperationsandreduceourprojectsandrevenues.

Weenterintosignificantgovernmentcontracts,includingthosecontractsthatwehaveinplacewiththeU.S.DepartmentofEnergyandDepartmentofDefense.U.S.governmentcontractsaresubjecttovariousuncertainties,restrictionsandregulations,includingoversightauditsbygovernmentagenciesandprofitandcostcontrols,whichcouldresultinwithholdingordelayofpaymentstous.U.S.governmentcontractsarealsosubjecttouncertaintiesassociatedwithCongressionalfunding,includingthepotentialimpactsofbudgetdeficits,governmentshutdownsandfederalsequestration.ChangesinU.S.governmentpriorities,whichcanoccurduetopolicychangesorchangesintheeconomy,couldadverselyimpactourrevenues.TheU.S.governmentisundernoobligationtomaintainprogramfundingatanyspecificlevel,andfundsforaprogrammayevenbeeliminated.OurU.S.governmentclientsmayterminateordecidenottorenewourcontractswithlittleornopriornotice.

Inaddition,U.S.governmentcontractsaresubjecttospecificregulationssuchastheFederalAcquisitionRegulation("FAR"),theTruthinNegotiationsAct,theCostAccountingStandards("CAS"),theServiceContractActandDepartmentofDefensesecurityregulations.Failuretocomplywithanyoftheseregulationsandothergovernmentrequirementsmayresultincontractpriceadjustments,financialpenaltiesorcontracttermination.OurU.S.governmentcontractsarealsosubjecttoaudits,costreviewsandinvestigationsbyU.S.governmentoversightagenciessuchastheU.S.DefenseContractAuditAgency(the"DCAA").TheDCAAreviewstheadequacyof,andourcompliancewith,ourinternalcontrolsystemsandpolicies(includingourlabor,billing,accounting,purchasing,estimating,compensationandmanagementinformationsystems).TheDCAAalsohastheabilitytoreviewhowwehaveaccountedforcostsundertheFARandCAS.TheDCAApresentsitsreportfindingstotheDefenseContractManagementAgency("DCMA").ShouldtheDCMAdeterminethatwehavenotcompliedwiththetermsofourcontractandapplicablestatutesandregulations,oriftheybelievethatwehaveengagedininappropriateaccountingorotheractivities,paymentstousmaybedisallowedorwecouldberequiredtorefundpreviouslycollectedpayments.Additionally,wemaybesubjecttocriminalandcivilpenalties,suspensionordebarmentfromfuturegovernmentcontracts,andquitamlitigationbroughtbyprivateindividualsonbehalfoftheU.S.governmentundertheFalseClaimsAct,whichcouldincludeclaimsfortrebledamages.Thesesuitsmayremainunderseal(andhence,beunknowntous)forsometimewhilethegovernmentdecideswhethertointerveneonbehalfofthequitamplaintiff.Furthermore,ifwehavesignificantdisagreementswithourgovernmentclientsconcerningcostsincurred,negativepublicitycouldarise,whichcouldadverselyaffectourindustryreputationandourabilitytocompetefornewcontractsinthegovernmentarenaorotherwise.

MostU.S.governmentcontractsareawardedthrougharigorouscompetitiveprocess.TheU.S.governmenthasincreasinglyrelieduponmultiple-yearcontractswithpre-establishedtermsandconditionsthatgenerallyrequirethosecontractorsthathavebeenpreviouslyawardedthecontracttoengageinanadditionalcompetitivebiddingprocessforeachtaskorderissuedunderthecontract.Suchprocessesrequiresuccessfulcontractorstoanticipaterequirementsanddeveloprapid-responsebidandproposalteamsaswellasdedicatedsupplierrelationshipsanddeliverysystemstoreacttotheseneeds.Wefacerigorouscompetitionandsignificantpricingpressuresinordertowinthesetaskorders.Ifwearenotsuccessfulincontainingcostsorabletotimelyrespondtogovernmentrequests,wemaynotwinadditionalawards.Moreover,evenifwearequalifiedtoworkonagovernmentcontract,wemaybeimpactedinourpursuitofworkbygovernmentpoliciesdesignedtoprotectsmallbusinessesandunder-representedminoritycontractors.

ManyofourU.S.governmentcontractsrequiresecurityclearances.Dependinguponthelevelofclearancerequired,securityclearancescanbedifficultandtime-consumingtoobtain.Ifweorouremployeesareunabletoobtainorretain

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necessarysecurityclearances,wemaynotbeabletowinnewbusiness,andourexistinggovernmentclientscouldterminatetheircontractswithusordecidenottorenewthem.

UndertheBudgetControlActof2011,anautomaticsequestrationprocess,oracross-the-boardbudgetcuts,wastriggeredwhentheJointSelectCommitteeonDeficitReduction,acommitteeoftwelvemembersofCongress,failedtoagreeonadeficitreductionplanfortheU.S.federalbudget.TheBipartisanBudgetActof2019(the“BBA”)eliminatessequestrationondiscretionaryaccountsin2020and2021byincreasingfederaldiscretionaryspendinglimitsuntil2021.TheBBAalsotemporarilysuspendsthepublicdebtlimitthroughJuly31,2021.However,theBudgetControlActof2011remainsinplace,extendedthrough2029,andabsentadditionallegislativeorotherremedialaction,thesequestrationcouldrequirereducedU.S.federalgovernmentspendingfrom2022through2029.Asignificantreductioninfederalgovernmentspendingorachangeinbudgetaryprioritiescouldreducedemandforourservices,cancelordelayfederalprojects,andresultintheclosureoffederalfacilitiesandsignificantpersonnelreductions,whichcouldhaveamaterialadverseeffectonourresultsofoperationsandfinancialcondition.

Ourcontinuedsuccessrequiresustohireandretainqualifiedpersonnel.

Thesuccessofourbusinessisdependentuponbeingabletoattract,developandretainpersonnel,includingengineers,projectmanagement,craftemployeesandmanagementaroundtheglobe,whohavethenecessaryandrequiredexperienceandexpertise,andwhowillperformtheseservicesatareasonableandcompetitiverate.Competitionfortheseandotherexperiencedpersonnelisintense.Itmaybedifficulttoattractandretainqualifiedindividualswiththeexpertiseandinthetimeframedemandedbyourclients.Incertaingeographicareas,forexample,wemaybeunabletosatisfythedemandforourservicesbecauseofourinabilitytodeployqualifiedpersonnel.Also,itmaybedifficulttoreplacepersonnelwhoholdgovernmentgrantedeligibilitythatmayberequiredtoobtaincertaingovernmentprojectsand/orwhohavesignificantgovernmentcontractexperience.Lossoftheservicesof,orfailuretorecruit,qualifiedtechnicalandmanagementpersonnelcouldlimitourabilitytosuccessfullycompleteexistingprojectsandcompetefornewprojects.

Assomeofourexecutivesandotherkeypersonnelapproachretirementageorotherwiseleavethecompany,weneedtoprovideforsmoothtransitions,whichmayrequirethatwedevotetimeandresourcestoidentifyandintegratenewpersonnelintotheseleadershiprolesandotherkeypositions.Changesinourmanagementteammaydisruptourbusinessandthefailuretosuccessfullytransitionandassimilateexecutivesorotherkeypersonnelcouldadverselyaffectourresultsofoperation.Ifweareunabletoemployasufficientnumberofskilledpersonneloreffectivelyimplementappropriatesuccessionplans,ourabilitytopursueprojectsmaybeadverselyaffected,thecostsofexecutingourexistingandfutureprojectsmayincreaseandourfinancialperformancemaydecline.

Inaddition,thecostofprovidingourservices,includingtheextenttowhichweutilizeourworkforce,affectsourprofitability.Forexample,theuncertaintyofcontractawardtimingcanpresentdifficultiesinmatchingourworkforcesizewithourcontracts.Ifanexpectedcontractawardisdelayedornotreceived,wecouldincurcostsresultingfromexcessstaff,reductionsinstaff,orredundancyoffacilitiesthatcouldhaveamaterialadverseimpactonourbusiness,financialconditionsandresultsofoperations.

Oureffectivetaxrateandtaxpositionsmayvary.

WearesubjecttoincometaxesintheUnitedStatesandnumerousforeignjurisdictions.Achangeintaxlaws,treatiesorregulations,ortheirinterpretation,inanycountryinwhichweoperatecouldchangethetaxrateonourearnings,whichcouldhaveamaterialimpactonourresultsofoperations.Inaddition,significantjudgmentisrequiredindeterminingourworldwideprovisionforincometaxesandourjudgmentscouldproveinaccurate.Intheordinarycourseofourbusiness,therearemanytransactionsandcalculationswheretheultimatetaxdeterminationisuncertain.Weareregularlyunderauditbytaxauthorities,andourtaxestimatesandtaxpositionscouldbemateriallyaffectedbymanyfactorsincludingthefinaloutcomeoftaxauditsandrelatedlitigation,theintroductionofnewtaxaccountingstandards,legislation,regulationsandrelatedinterpretations,ourglobalmixofearnings,ourabilitytorealizedeferredtaxassetsandchangesinuncertaintaxpositions.Futurechangesinourtaxrateoradversechangesintaxlawscouldhaveamaterialadverseeffectonourprofitabilityandliquidity.

Systemsandinformationtechnologyinterruption,aswellasnewsystemsimplementation,couldadverselyimpactourabilitytooperateandouroperatingresults.

Asaglobalcompany,weareheavilyreliantoncomputer,informationandcommunicationstechnologyandrelatedsystems,someofwhicharehostedbythirdpartyproviders,inordertooperate.Fromtimetotime,weexperiencesysteminterruptionsanddelaysthatmaybeplannedforupgradesorthatmaybeunplanned.Unplannedinterruptionscouldresultfromnaturaldisasters,powerloss,telecommunicationsfailures,actsofwarorterrorism,actsofGod,computerviruses,physicalorelectronicbreak-insandsimilareventsordisruptions.Anyoftheseorothereventscouldcausesysteminterruptions,delays,lossofcriticalorsensitivedata(includingpersonalorfinancialdata)orlossoffunds;coulddelayor

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preventoperations(includingtheprocessingoftransactionsandreportingoffinancialresults);andcouldadverselyaffectourreputationorouroperatingresults.Whilewehaveandrequirethemaintenanceofreasonablesafeguardsdesignedtoprotectagainstunavailabilityorlossofdata,thesesafeguardsmaynotbesufficient.Wemayberequiredtoexpendsignificantresourcestoprotectagainstoralleviatedamagecausedbysystemsinterruptionsanddelays,whichcouldhaveamaterialadverseeffectonourbusinessandcashflows.

Wecontinuetoevaluatetheneedtoupgradeand/orreplaceoursystemsandnetworkinfrastructuretoprotectourcomputingenvironment,tostaycurrentonvendorsupportedproducts,toimprovetheefficiencyofoursystemsandforotherbusinessreasons.Theimplementationofnewsystemsandinformationtechnologycouldadverselyimpactouroperationsbyimposingsubstantialcapitalexpenditures,demandsonmanagementtimeandrisksofdelaysordifficultiesintransitioningtonewsystems.Oursystemsimplementationsalsomaynotresultinproductivityimprovementsatthelevelsanticipated.Systemsimplementationdisruptionandanyotherinformationtechnologydisruption,ifnotanticipatedandappropriatelymitigated,couldhaveamaterialadverseeffectonourbusiness.

Itcanbeverydifficultandexpensivetoobtaintheinsuranceweneedforourbusinessoperations.

Aspartofbusinessoperationswemaintaininsurancebothasacorporateriskmanagementstrategyandtosatisfytherequirementsofmanyofourcontracts.Althoughwehavebeengenerallyabletocoverourinsuranceneeds,therecanbenoassurancesthatwecansecureallnecessaryorappropriateinsuranceinthefuture,orthatsuchinsurancecanbeeconomicallysecured.Forexample,catastrophiceventscanresultindecreasedcoveragelimits,morelimitedcoverage,increasedpremiumcostsordeductibles.Wealsomonitorthefinancialhealthoftheinsurancecompaniesfromwhichweprocureinsurance,andthisisoneofthefactorswetakeintoaccountwhenpurchasinginsurance.Ourinsuranceispurchasedfromanumberoftheworld'sleadingproviders,ofteninlayeredinsuranceorquotasharearrangements.Ifanyofourthirdpartyinsurersfail,abruptlycancelourcoverageorotherwisecannotsatisfytheirinsurancerequirementstous,thenouroverallriskexposureandoperationalexpensescouldbeincreasedandourbusinessoperationscouldbeinterrupted.

Ifwedonothaveadequateindemnificationforournuclearservices,itcouldadverselyaffectourbusinessandfinancialcondition.

WeprovideservicestotheU.S.DepartmentofEnergyandthenuclearenergyindustryintheon-goingmaintenanceandmodificationofnuclearfacilitiesaswellasdecontaminationanddecommissioningactivitiesofnuclearplants.ThePrice-AndersonActgenerallyindemnifiespartiesperformingservicestonuclearpowerplantsandDepartmentofEnergycontractors;however,notallactivitiesweengageinonbehalfofourclientsarecovered.Thus,ifthePrice-AndersonActindemnificationprotectionsdonotapplytoourservices,oriftheexposureoccursoutsideoftheUnitedStatesinaregionthatdoesnothaveprotectionscomparabletothePrice-AndersonAct,ourbusinessandfinancialconditioncouldbeadverselyaffectedbyourclient'srefusaltocontractwithus,byourinabilitytoobtaincommerciallyreasonableinsuranceorthirdpartyindemnification,orbythepotentiallysignificantmonetarydamageswecouldincur.

Foreigncurrencyriskscouldhaveanadverseimpactonrevenue,earningsand/orbacklog.

Certainofourcontractssubjectustoforeigncurrencyrisk,particularlywhenprojectcontractrevenueisdenominatedinacurrencydifferentthanthecontractcosts.Inaddition,ouroperationalcashflowsandcashbalances,thoughpredominatelyheldinU.S.dollars,mayconsistofdifferentcurrenciesatvariouspointsintimeinordertoexecuteourprojectcontractsgloballyandmeettransactionalrequirements.Wemayattempttominimizeourexposuretoforeigncurrencyriskbyobtainingcontractprovisionsthatprotectusfromforeigncurrencyfluctuationsand/orbyimplementinghedgingstrategiesutilizingderivativesashedginginstruments.However,theseactionsmaynotalwayseliminateallforeigncurrencyrisk,andasaresult,ourprofitabilityoncertainprojectscouldbeaffected.

Ourmonetaryassetsandliabilitiesdenominatedinnonfunctionalcurrenciesaresubjecttoremeasurement.Inaddition,theU.S.dollarvalueofourbacklogmayfromtimetotimeincreaseordecreasesignificantlyduetoforeigncurrencyvolatility.Wemayalsobeexposedtolimitationsonourabilitytoreinvestearningsfromoperationsinonecountrytofundouroperationsinothercountries.

Ourreportedrevenueandearningsofforeignsubsidiariescouldalsobeaffectedbyforeigncurrencyvolatility.Revenue,costandearningsofforeignsubsidiarieswithfunctionalcurrenciesotherthantheU.S.dollararetranslatedintoU.S.dollars.IftheU.S.dollarappreciatesagainstaforeignsubsidiary'snon-U.S.dollarfunctionalcurrency,wewouldreportlessrevenue,costandearningsinU.S.dollarsthanitwouldhavehadtheU.S.dollardepreciatedagainstthesameforeigncurrencyoriftherehadbeennochangeintheexchangerate.

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Thelossofoneorafewclientscouldhaveanadverseeffectonus.

Afewclients,includingtheU.S.government,stategovernmentsandU.S.andstategovernmentagencies,haveinthepast,andmayinthefuture,accountforasignificantportionofourrevenuesinanyoneyearoroveraperiodofseveralconsecutiveyears,eitherdirectlyorthroughparticipationinajointventurethatservesasaclient.Althoughwehavelong-standingrelationshipswithmanyofoursignificantclients,ourclientsmayunilaterallyreduce,failtoreneworterminatetheircontractswithusatanytime.Mostofourcontractshaveterminationforconvenienceprovisionsinthem.Thelossofbusinessfromasignificantclientcouldhaveamaterialadverseeffectonourbusiness,financialpositionandresultsofoperations.

Damagetoourreputationcouldinturncausedamagetoourbusiness.

Maintainingapositivereputationiscriticaltoattractingandmaintainingclientsandotherbusinessrelationships.Ifwefailtoaddressissuesthatmaygiverisetoreputationalrisk,wecouldsignificantlyharmourbusiness.Theseissuesmayinclude,butarenotlimitedto,anyoftheriskfactorsdiscussedinthisItem1A,includingcompliancewithlaws,projectexecutionrisk,cybersecurityandsafety.Ifourreputationisharmed,wecouldsufferanumberofadverseconsequences,suchas:

• reduceddemandforourservices;

• lackofinvestorconfidence;

• lessfavorablecreditrating;

• theinabilitytoattractandretainqualifiedemployees;

• alossorreductioninscopeofcurrentprojectcontractsandfewercontractawards;

• lessfavorablecontractterms;

• increasedneedforfinancialassurances;

• increasedlitigationandcosts;and

• heightenedregulatoryscrutiny.

Theseandotherconsequencesresultingfromdamagetoourreputationcouldhaveamaterialadverseeffectonourbusiness,financialconditionorresultsofoperations.

Ourbusinessmaybenegativelyimpactedifweareunabletoadequatelyprotectintellectualpropertyrights.

Oursuccessisdependent,inpart,onourabilitytodifferentiateourservicesthroughourtechnologiesandknow-how.Thissuccessincludestheabilityofcompaniesinwhichweinvest,suchasNuScale,toprotecttheirintellectualpropertyrights.Weutilizeacombinationofpatents,copyrights,tradesecrets,confidentialityagreementsandothercontractualarrangementstoprotectourinterests.However,thesemethodsonlyprovidealimitedamountofprotectionandmaynotadequatelyprotectourinterests.Ouremployees,contractorsandjointventurepartnersaresubjecttoconfidentialityobligations,butthisprotectionmaybeinadequatetodeterorpreventmisappropriationofourconfidentialinformationand/orinfringementofourintellectualpropertyrights.ThiscanbeespeciallytrueincertainforeigncountrieswhereintellectualpropertydoesnothaveequivalentprotectionsasintheUnitedStates,orwhenourjointventurepartnerisacompetitorwhowillgainaccesstoourproceduresandknow-howwhileworkingwithusintheperformanceofservices.

Ourclientsrequirebroadownershiprightsintheworkproductandothermaterialswedeliver.Ifwearenotabletoretainownershipofourpre-existingintellectualpropertyandimprovementsthereto,itmayaffectourabilitytoprovidesimilarservicestootherclientsinthefuture,whichultimately,couldhaveamaterialadverseeffectonouroperations.

Ourcompetitorsorothersmayindependentlydeveloptechnologysubstantiallysimilartoourtradesecrettechnologyorwemaybeunsuccessfulinpreservingourintellectualpropertyrightsinthefuture.Ourintellectualpropertyrightscouldbeinvalidated,circumvented,challengedorinfringedupon.Litigationtodeterminethescopeofintellectualpropertyrights,evenifultimatelysuccessful,couldbecostlyandcoulddivertmanagement'sattention.

Inaddition,ourclientsorotherthirdpartiesmayalsoprovideuswiththeirtechnologyandintellectualproperty.Thereisariskthatwemaynotsufficientlyprotectourortheirinformationfromimproperuseordisseminationand,asaresult,couldbesubjecttoclaimsandlitigationandresultingliabilities,lossofcontractsorotherconsequencesthatcouldhaveanadverseimpactonourbusiness,financialconditionandresultsofoperation.

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Wealsoholdlicensesfromthirdpartiesthatmaybeutilizedinourbusinessoperations.Ifwearenolongerabletolicensesuchtechnologyoncommerciallyreasonabletermsorotherwise,ourbusinessandfinancialperformancecouldbeadverselyaffected.Whenwelicenseourintellectualpropertytothirdparties,thescopeofsuchlicensegrantislimitedtoaparticularplantorproject.Ifsuchthirdpartyexceedsthescopeofthelicensegrant,andifweareunabletodetectunauthorizeduseofourintellectualpropertyorotherwisetakeappropriatestepstoenforceourrights,ourrevenueandmarginswillbeadverselyimpacted,andthevalueofourintellectualpropertyportfoliomaydeclinetherebyadverselyaffectingourcompetitiveadvantageandabilitytowinfuturework.

Ourresultsofoperationscouldbeadverselyaffectedasaresultofassetimpairments.

Ourresultsofoperationsandfinancialconditioncouldbeadverselyaffectedbyimpairmentstogoodwill,investments,deferredtaxassetsorotherintangibleassets.Goodwillandotherintangibleassetsthathaveindefiniteusefullivesarenotamortized,butinsteadaretestedatleastannuallyforimpairment.Anyfutureimpairments,includingimpairmentsofgoodwill,investments,deferredtaxassetsorotherintangibleassets,couldhaveamaterialadverseeffectonourfinancialconditionandresultsofoperations.

Inaddition,ifwedeterminethatanother-than-temporarydeclineinthefairvalueexistsforacompanyinwhichwehaveinvested,wemayhavetowritedownthatinvestmenttoitsfairvalueandrecognizetherelatedwrite-downasaninvestmentloss.Forcasesinwhichwearerequiredundertheequitymethodortheproportionateconsolidationmethodofaccountingtorecognizeaproportionateshareofanothercompany'sincomeorloss,suchincomeorlossmayimpactourearnings.

RisksRelatedtoFinancialReporting

WeidentifiedmaterialweaknessesinourICFRin2019,whichwereremediatedin2020.Ifweidentifymaterialweaknessesinthefutureorotherwisefailtomaintainaneffectivesystemofinternalcontrols,wemaynotbeabletoaccuratelyandtimelyreportourfinancialresults.

Inconnectionwithour2019year-endassessmentofICFR,wedeterminedthatwedidnothaveaneffectiveICFRatDecember31,2019.WetookstepstoimproveourICFRanddeterminedthatwehaveaneffectiveICFRatDecember31,2020.

IfweidentifyamaterialweaknessesinthefutureorareunabletosuccessfullyremediateanyfuturematerialweaknessesorotherdeficienciesinourICFR,theaccuracyandtimingofourfinancialreportingmaybeadverselyaffected,wemaybeunabletomaintainorregaincompliancewithapplicablesecuritieslawsandNewYorkStockExchangelistingrequirementsandwemaybesubjecttoregulatoryinvestigationsandpenalties.

OurpriorfailuretoprepareandtimelyfileourperiodicreportswiththeSEClimitsouraccesstothepublicmarketstoraisedebtorequitycapitalandrestrictsourabilitytoissueequitysecurities.

Wedidnottimelyfileour201910-KorourQuarterlyReportsonForm10-QforthequartersendedMarch31,2020,June30,2020orSeptember30,2020withinthetimeframespecifiedbytheSEC.Thislimitsourabilitytoutilizeashelfregistrationduring2021toaccessthepublicmarketstoraisedebtorequitycapital,whichcouldpreventusfrompursuingtransactionsorimplementingbusinessstrategiesthatwemightotherwisebelievearebeneficialtoourbusiness.WearenoteligibletousearegistrationstatementonFormS-3thatwouldallowustocontinuouslyincorporatebyreferenceourSECreportsuntilDecember2021.Ifwewishtopursueapublicofferingaheadofthatdate,wewouldberequiredtofilearegistrationstatementonFormS-1andhaveitreviewedanddeclaredeffectivebytheSEC.DoingsocouldtakesignificantlylongerthanusingashelfregistrationstatementonFormS-3,increaseourtransactioncostsandadverselyimpactourabilitytoraisecapitalorcompleteacquisitionsofothercompaniesinatimelymanner.

Werestatedcertainofourpreviouslyissuedfinancialstatementsduring2020,whichresultedinunanticipatedcostsandmayaffectinvestorconfidenceandraisereputationalissues.

Asdisclosedinour201910-K,werestatedourfinancialstatementsandrelateddisclosuresfortheyearsendedDecember31,2018,2017and2016andforeachoftheinterimquarterlyperiodsin2018and2019,followingtheidentificationofmisstatementsasaresultofaninternalreview.Therestatementalsoincludedotherimmaterialadjustmentstohistoricalperiods,includingitemspreviouslyidentifiedandcorrectedinearlierperiodsandforothernon-projectitemsidentifiedoutsideoftheinternalreview.Asaresult,weincurredpreviouslyunanticipatedcostsforaccountingandlegalfeesinconnectionwithorrelatedtotherestatement,andhavebecomesubjecttoanumberofadditionalrisksanduncertainties,whichmayaffectinvestorconfidenceintheaccuracyofourfinancialdisclosuresandmayraisereputationalissuesforourbusiness.

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RisksRelatedtoIndebtedness

Adversecreditandfinancialmarketconditionscouldimpairour,ourclients'andourpartners'borrowingcapacity,whichcouldnegativelyaffectourbusinessoperations,profitsandgrowthobjectives.

Ourabilitytogeneratecashisimportantforthefundingofouroperations,investinginjointventures,theservicingofourindebtedness,payingdividendstostockholdersandmakingacquisitions.Totheextentthatexistingcashbalancesandcashflowfromoperations,togetherwithborrowingcapacityunderourcreditfacilities,areinsufficienttomakeinvestmentsoracquisitionsorprovideneededworkingcapital,wemayrequireadditionalfinancingfromothersources.Ourabilitytoobtainsuchadditionalfinancingwilldependuponprevailingcapitalmarketconditions,includingthosearisingduetoeventsoccurringinourindustry,aswellasconditionsinourbusinessandouroperatingresults;andthosefactorsmayaffectoureffortstonegotiatetermsthatareacceptabletous.Furthermore,ifglobaleconomic,industry,politicalorothermarketconditionsadverselyaffectthefinancialinstitutionsthatprovidecredittous,itispossiblethatourabilitytoestablishordrawuponourcreditfacilitiesmaybeimpacted.Inaddition,adowngradeinourcreditratingcouldincreasethecostofourborrowingsortheirrefinancing,limitaccesstosourcesoffinancingorleadtootheradverseconsequences.Ifadequatefundsarenotavailable,orarenotavailableonacceptableterms,wemaynotbeabletomakefutureinvestments,takeadvantageofacquisitionsorotheropportunities,orrespondtocompetitivechallenges.

Inaddition,adversecreditandfinancialmarketconditionsalsoadverselyaffectourclients'andourpartners'borrowingcapacity,whichsupportthecontinuationandexpansionofprojectsworldwide,andcouldresultincontractcancellationsorsuspensions,projectawardandexecutiondelays,paymentdelaysordefaultsbyourclients.Thesedisruptionscouldmateriallyimpactourbacklogandprofits.Ifweextendasignificantportionofcredittoourclientsorprojectsinaspecificgeographicregionorindustry,wemayexperiencehigherlevelsofcollectionriskornon-paymentifthoseclientsareimpactedbyfactorsspecifictotheirgeographicindustryorregion.

Our indebtedness could lead to adverse consequences or adversely affect our financial position and prevent us fromfulfillingourobligationsundersuchindebtedness,andanyrefinancingofthisdebtcouldbeatsignificantlyhigherinterestrates.

Ourindebtednesscouldhaveimportantconsequences,includingbutnotlimitedto:

• increasingourvulnerabilitytogeneraladverseeconomicandindustryconditions;

• requiringustodedicateasubstantialportionofourcashflowfromoperationstomakedebtservicepayments,therebyreducingtheavailabilityofcashflowtofundworkingcapital,capitalexpenditures,acquisitionsandinvestmentsandothergeneralcorporatepurposes;

• limitingourflexibilityinplanningfor,orreactingto,challengesandopportunities,andchangesinourbusinessesandthemarketsinwhichweoperate;and

• limitingourabilitytoobtainadditionalfinancingtofundourworkingcapital,capitalexpenditures,acquisitionsanddebtservicerequirementsandotherfinancingneeds.

Ourability to serviceour indebtednesswilldependonour futureoperatingperformanceand financial results,whichmaybesubjecttofactorsbeyondourcontrol,includinggeneraleconomic,financialandbusinessconditions.Ifwedonothavesufficientcashflowtoserviceour indebtedness,wemayneedtorefinanceallorpartofourexisting indebtedness,borrowmoremoneyor sell securities or assets, someor all ofwhichmaynot be available to us at acceptable termsor at all. Inaddition,wemayneedtoincuradditionalindebtednessinthefutureintheordinarycourseofbusiness.Althoughthetermsofourcreditagreementsandourbondindenturesallowustoincuradditionaldebt,therearelimitationswhichmayprecludeusfromincurringtheamountofindebtednessweotherwisedesire.

Our credit facilities, senior notes, other outstanding indebtedness and any additional indebtedness we incur in thefutureimpose,ormayimpose,significantoperatingandfinancialrestrictionsonus.Inaddition,ourcreditfacilitiesrequireustomaintainspecifiedfinancialcovenants.Abreachofanyofthesecovenantscouldresultinadefault.Ifadefaultoccurs,therelevant lenderscouldelecttodeclareour indebtedness,togetherwithaccrued interestandotherfees,tobe immediatelydueandpayable.Ifouroperatingperformancedeclines,orifweareunabletocomplywithanycovenant,suchasourabilityto timely prepare and file our periodic reports with the SEC, we have needed and may in the future need to obtainamendmentstoourcreditagreementsorwaiversfromtherequiredcreditorsunderourindebtednessinstrumentstoavoidbeingindefault.Thesefactorscouldhaveamaterialadverseeffectonourbusiness,financialcondition,resultsofoperationsorshareprice.

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Wemaybeunabletowinnewcontractawardsifwecannotprovideclientswithlettersofcredit,bondsorothersecurityorcreditenhancements.

Itisacommonindustrypracticeforclientstorequireustoprovidesuretybonds,lettersofcredit,bankguaranteesorotherformsoffinancialassuranceascreditenhancements.Suretybonds,lettersofcreditorguaranteesindemnifyourclientsifwefailtoperformourobligationsunderourcontracts.Historically,wehavehadstrongsuretybondingcapacityduetoourinvestment-gradecreditrating,but,bondingisprovidedatthesurety'ssolediscretion.Inaddition,becauseoftheoveralllimitationsinworldwidebondingcapacity,wemayfinditdifficulttoaccesssufficientsuretybondingcapacitytomeetourtotalsuretybondingneeds.Withregardtolettersofcredit,whilewehavehistoricallyhadadequatecapacityunderourexistingcreditfacilities,anycapacitythatmayberequiredinexcessofourcreditlimitswouldbeatourlenders'solediscretionandthereforeisnotcertain.Failuretoprovidecreditenhancementsontermsrequiredbyaclientmayresultinaninabilitytocompetefororwinaproject.

LegalandRegulatoryRisks

Fromtimetotime,weareinvolvedinlitigationandregulatoryproceedings,potentialliabilityclaimsandcontractdisputesthatmayhaveamaterialimpactonourfinancialconditionandresultsofoperations.

Wemaybesubjecttoavarietyoflegalorregulatoryproceedings,liabilityclaimsorcontractdisputesinvirtuallyeverypartoftheworld.Weengageinengineeringandconstructionactivitiesforlargefacilitieswheredesign,constructionorsystemsfailurescanresultinsubstantialinjuryordamage.Inaddition,thenatureofourbusinessresultsinclients,subcontractorsandsuppliersoccasionallypresentingclaimsagainstusforrecoveryofcoststheyincurredinexcessofwhattheyexpectedtoincur,orforwhichtheybelievetheyarenotcontractuallyliable.Wehavebeenandmayinthefuturebenamedasadefendantinlegalproceedingswherepartiesmaymakeaclaimfordamagesorotherremedieswithrespecttoourprojectsorothermatters,includingshareholderlitigation.Duringtimesofeconomicuncertainty,especiallywithregardtoourcommodity-basedclients,claimfrequenciesandamountstendtoincrease.

Inproceedingswhereitisdeterminedthatwehaveliability,wemaynotbecoveredbyinsuranceor,ifcovered,thedollaramountoftheseliabilitiesmayexceedourpolicylimits.Inaddition,evenwhereinsuranceismaintainedforsuchexposure,thepolicieshavedeductiblesresultinginourassumingexposureforalayerofcoveragewithrespecttoanysuchclaims.Ourprofessionalliabilitycoverageisona"claims-made"basiscoveringonlyclaimsactuallymadeduringthepolicyperiodcurrentlyineffect.Anyliabilitynotcoveredbyourinsurance,inexcessofourinsurancelimitsor,ifcoveredbyinsurancebutsubjecttoahighdeductible,couldresultinamateriallossforus,andmateriallyreduceourcashavailableforoperations.

Aspreviouslydisclosed,wehavereceivedsubpoenasfromboththeSECandtheU.S.DepartmentofJustice("DOJ")seekingdocumentsandinformationrelatedtoprojectsforwhichwerecordedchargesinthesecondquarterof2019andcertainprojectaccounting,financialreportingandgovernancematters.WearecoordinatingourresponsestotheSECandDOJandcooperatinginprovidingtherequesteddocumentsandinformation.Inadditiontotheseinvestigations,aspecialcommitteeofourBoardofDirectorsindependentlyconductedandcompletedareviewofourpriorperiodreportingandrelatedcontrolenvironment.

IftheSECorDOJcommenceslegalactionasaresultoftheinvestigations,wecouldberequiredtopaysignificantpenaltiesandbecomesubjecttoinjunctions,ceaseanddesistorders,andotherequitableremedies.Wecanprovidenoassurancesastotheoutcomeortimingofanygovernmentalorregulatoryinvestigation.

Inadditiontotheseinvestigations,wehavealsohadnumeroussecuritiesclassactionlawsuitsandstockholderderivativeactionsfiledagainstusandcertainofourcurrentandformerexecutiveofficersanddirectors.

Wehaveincurred,andmaycontinuetoincur,significantexpensesrelatedtolegal,accounting,andotherprofessionalservicesinconnectionwiththeSECinvestigation,theDOJinvestigation,lawsuitsandrelatedlegalandregulatorymatters.Theseexpensesandthediversionoftheattentionofthemanagementteamthathasoccurred,andisexpectedtocontinue,hasadverselyaffected,andcouldcontinuetoadverselyaffect,ourbusiness,financialconditionandresultsofoperations.

AsaresultofmattersassociatedwiththeSECandDOJinvestigationsandvariouslawsuits,weareexposedtogreaterrisksassociatedwithlitigation,regulatoryproceedings,andgovernmentenforcementactionsandadditionalsubpoenas.Anyfutureinvestigationsoradditionallawsuitsmayhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Inotherlegalorregulatoryproceedings,liabilityclaimsorcontractdisputes,wemaybecoveredbyindemnificationagreementsthatmayattimesbedifficulttoenforce.Evenifenforceable,itmaybedifficulttorecoverundertheseagreementsiftheindemnitordoesnothavetheabilitytofinanciallysupporttheindemnity.Litigationandregulatory

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proceedingsaresubjecttoinherentuncertainties,andunfavorablerulingscouldoccur,includingformonetarydamages.Ifweweretoreceiveanunfavorablerulinginamatter,ourbusinessandresultsofoperationscouldbemateriallyharmed.Suchproceedingscanalsobecostly,time-consuming,disruptivetooperationsanddistractingtomanagement,regardlessoftheoutcome.Forfurtherinformationonmattersindispute,pleaseseeNotestoConsolidatedFinancialStatements.

Ourfailuretorecoveradequatelyonclaimsagainstprojectowners,subcontractorsorsuppliersforpaymentorperformancecouldhaveamaterialeffectonourfinancialresults.

Weoccasionallybringclaimsagainstclientsforadditionalcostsexceedingthecontractpriceorforamountsnotincludedintheoriginalcontractprice.Similarly,wepresentchangeordersandclaimstooursubcontractorsandsuppliers.Ifwefailtoproperlyprovidenoticeordocumentthenatureofchangeordersorclaims,orareotherwiseunsuccessfulinnegotiatingareasonablesettlement,wecouldincurreducedprofits,costoverrunsandinsomecasesalossontheproject.Thesetypesofclaimscanoftenoccurduetomatterssuchasowner-causeddelaysorchangesfromtheinitialprojectscope,whichresultinadditionalcost,bothdirectandindirect.Fromtimetotime,theseclaimscanbethesubjectoflengthyandcostlyproceedings,anditisoftendifficulttoaccuratelypredictwhentheseclaimswillbefullyresolved.Whenthesetypesofeventsoccurandwhileunresolvedclaimsarepending,wemayinvestsignificantworkingcapitalinprojectstocovercostoverrunspendingtheresolutionoftherelevantclaims.Afailuretopromptlyrecoveronthesetypesofclaimscouldhaveamaterialadverseimpactonourliquidityandfinancialresults.

WecouldbeadverselyaffectedbyviolationsoftheU.S.ForeignCorruptPracticesActandsimilarworldwideanti-briberylaws.

TheU.S.ForeignCorruptPracticesAct,theU.K.BriberyActof2010andsimilaranti-briberylawsinotherjurisdictionsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstoofficialsorothersforthepurposeofobtainingorretainingbusiness.Whileourpoliciesmandatecompliancewiththeseanti-briberylaws,weoperateinmanypartsoftheworldthathaveexperiencedcorruptiontosomedegreeand,incertaincircumstances,strictcompliancewithanti-briberylawsmayconflictwithlocalcustomsandpractices.Wetrainourpersonnelconcerninganti-briberylawsandissues,andwealsoinformourpartners,subcontractors,suppliers,agentsandotherswhoworkforusoronourbehalfthattheymustcomplywithanti-briberylawrequirements.Wealsohaveproceduresandcontrolsinplacetomonitorcompliance.However,thereisnoassurancethatourinternalcontrolsandprocedureswillalwaysprotectusfromthepossiblerecklessorcriminalactscommittedbyouremployeesoragents.Ifwearefoundtobeliableforanti-briberylawviolations(eitherduetoourownactsorourinadvertence,orduetotheactsorinadvertenceofothersincludingourpartners,agents,subcontractorsorsuppliers),wecouldsufferfromcriminalorcivilpenaltiesorothersanctions,includingcontractcancellationsordebarment,andlossofreputation,anyofwhichcouldhaveamaterialadverseeffectonourbusiness.Litigationorinvestigationsrelatingtoallegedorsuspectedviolationsofanti-briberylaws,evenifultimatelysuchlitigationorinvestigationsdemonstratethatwedidnotviolateanti-briberylaws,couldbecostlyandcoulddivertmanagement'sattentionawayfromotheraspectsofourbusiness.

Wecouldbeadverselyimpactedifwefailtocomplywithdomesticandinternationalimportandexportlaws.

Ourglobaloperationsrequireimportingandexportinggoodsandtechnologyacrossinternationalbordersonaregularbasis.OurpoliciesmandatestrictcompliancewithU.S.andforeigninternationaltradelaws.Totheextentweexporttechnicalservices,dataandproductsoutsideoftheUnitedStates,wearesubjecttoU.S.andinternationallawsandregulationsgoverninginternationaltradeandexportsincludingbutnotlimitedtotheInternationalTrafficinArmsRegulations,theExportAdministrationRegulationsandtradesanctionsagainstembargoedcountries,whichareadministeredbytheOfficeofForeignAssetsControlwithintheDepartmentofTreasury.Fromtimetotime,weidentifycertaininadvertentorpotentialexportorrelatedviolations.Theseviolationsmayinclude,forexample,transferswithoutrequiredgovernmentalauthorization.Afailuretocomplywiththeselawsandregulationscouldresultincivilorcriminalsanctions,includingtheimpositionoffines,thedenialofexportprivileges,andsuspensionordebarmentfromparticipationinU.S.governmentcontracts.

Employee,agentorpartnermisconductorouroverallfailuretocomplywithlawsorregulationscouldweakenourabilitytowincontracts,whichcouldresultinreducedrevenuesandprofits.

Misconduct,fraud,non-compliancewithapplicablelawsandregulations,orotherimproperactivitiesbyoneofouremployees,agentsorpartnerscouldhaveasignificantnegativeimpactonourbusinessandreputation.Suchmisconductcouldincludethefailuretocomplywithanti-corruption,exportcontrolandenvironmentalregulations;federalprocurementregulations,regulationsregardingthepricingoflaborandothercostsingovernmentcontractsandregulationsregardingtheprotectionofsensitivegovernmentinformation;regulationsonlobbyingorsimilaractivities;regulationspertainingtotheinternalcontroloverfinancialreporting;andvariousotherapplicablelawsorregulations.Theprecautionswetaketopreventanddetectfraud,misconductorfailurestocomplywithapplicablelawsandregulationsmaynotbeeffective,andwecouldfaceunknownrisksorlosses.Failuretocomplywithapplicablelawsorregulationsoractsoffraudormisconductcould

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subjectustofinesandpenalties,lossofsecurityclearanceandsuspensionordebarmentfromcontractingwithgovernmentagencies,whichcouldweakenourabilitytowincontractsandhaveamaterialadverseimpactonourrevenuesandprofits.

Neworchanginglegalrequirements,includingthoserelatingtoclimatechange,couldadverselyaffectouroperatingresults.

Ourbusinessandresultsofoperationscouldbeaffectedbythepassageofclimatechange,defense,environmental,infrastructure,tradeandotherlaws,policiesandregulations.Forexample,growingconcernsaboutclimatechangemayresultintheimpositionofadditionalenvironmentalregulations.Legislation,internationalprotocolsortreaties,regulationorotherrestrictionsonemissionscouldaffectourclients,includingthosewho(a)areinvolvedintheexploration,productionorrefiningoffossilfuelssuchasourenergyandchemicalsclients,(b)emitgreenhousegasesthroughthecombustionoffossilfuels,or(c)emitgreenhousegasesthroughthemining,manufacture,utilizationorproductionofmaterialsorgoods.Suchlegislationorrestrictionscouldincreasethecostsofprojectsforusandourclientsor,insomecases,preventaprojectfromgoingforward,therebypotentiallyreducingtheneedforourservices,whichcouldinturnhaveamaterialadverseeffectonouroperationsandfinancialcondition.However,legislationandregulationregardingclimatechangecouldalsoincreasethepaceofdevelopmentofcarboncaptureandstorageprojects,alternativetransportation,alternativeenergyfacilities,suchaswindfarmsornuclearreactors,orincentivizeincreasedimplementationofcleanfuelprojects,whichcouldpositivelyimpactthedemandforourservices.Asanotherexample,theimplementationoftradebarriers,countervailingduties,orbordertaxes,ortheaddition,relaxationorrepealoflaws,policiesandregulationsregardingtheindustriesandsectorsinwhichweworkcouldresultinadeclineindemandforourservices,ormaymakethemannerinwhichweperformourservices,especiallyfromoutsidetheUnitedStates,lesscostefficient.Furthermore,changestoexistingtradeagreementsmayimpactourbusinessoperations.Wecannotpredictwhenorwhetheranyofthesevariouslegislativeandregulatoryproposalsmaybecomelaworwhattheireffectwillbeonusandourclients.

Pastandfutureenvironmental,safetyandhealthregulationscouldimposesignificantadditionalcostsonusthatreduceourprofits.

Wearesubjecttonumerousenvironmentallawsandhealthandsafetyregulations.Ourprojectscaninvolvethehandlingofhazardousandotherhighlyregulatedmaterials,includingnuclearandotherradioactivematerials,which,ifimproperlyhandledordisposedof,couldsubjectustocivilandcriminalliabilities.Itisimpossibletoreliablypredictthefullnatureandeffectofjudicial,legislativeorregulatorydevelopmentsrelatingtohealthandsafetyregulationsandenvironmentalprotectionregulationsapplicabletoouroperations.Theapplicableregulations,aswellasthelengthoftimeavailabletocomplywiththoseregulations,continuetodevelopandchange.Thecostofcomplyingwithrulingsandregulations,satisfyinganyenvironmentalremediationrequirementsforwhichwearefoundresponsible,orsatisfyingclaimsorjudgmentsallegingpersonalinjury,propertydamageornaturalresourcedamagesasaresultofexposureto,orcontaminationby,hazardousmaterials,includingasaresultofcommoditiessuchasleadorasbestos-relatedproducts,couldbesubstantial,maynotbecoveredbyinsurance,couldreduceourprofits,andtherefore,couldmateriallyimpactourfutureoperations.

Ourcompany,alongwithourinvestmentinNuScale,issubjecttoanumberofregulationssuchasthosefromtheU.S.NuclearRegulatoryCommissionandnon-U.S.regulatorybodies,suchastheInternationalAtomicEnergyCommissionandtheEuropeanUnion,whichcanhaveasubstantialeffectonournuclearoperationsandinvestments.Delaysinreceivingnecessaryapprovals,permitsorlicenses,thefailuretomaintainsufficientcomplianceprograms,andotherproblemsencounteredduringconstruction(includingchangestosuchregulatoryrequirements)couldsignificantlyincreaseourcostsorhaveanadverseeffectonourresultsofoperations,ourreturnoninvestmentsandourfinancialposition.

Asubstantialportionofourbusinessisgeneratedeitherdirectlyorindirectlyasaresultoffederal,state,localandforeignlawsandregulationsrelatedtoenvironmentalmatters.Areductioninthenumberorscopeoftheselawsorregulations,orchangesingovernmentpoliciesregardingthefunding,implementationorenforcementofsuchlawsandregulations,couldsignificantlyreducethesizeofoneofourmarketsandlimitouropportunitiesforgrowthorreduceourrevenuebelowcurrentlevels.

RisksRelatedtoMergers&AcquisitionsandStrategicPlans

Wecannotassurethesuccessfulimplementationofourstrategicandoperationalinitiatives.

Wehaveannouncedanumberofstrategicandoperationalinitiativesdesignedtooptimizecostsandimproveoperationalefficiency,includingplanstodivestourAMECOandStorkbusinesses,monetizesurplusrealestateandnon-coreinvestments,andrationalizeresourcesandoverheadacrossvariousgeographies.Ourabilitytosuccessfullyexecutetheseinitiativesissubjecttovariousrisksanduncertainties,includingregulatoryintervention,whichmaynegativelyimpacttherealizationofexpectedbenefits.Ourfailuretorealizetheanticipatedbenefits,whichmaybeduetoourinabilitytoexecute,

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competition,economicconditions,andotherrisksdescribedherein,couldhaveamaterialadverseeffectonourbusiness,financialcondition,andresultsofoperations.

Anyacquisitions,dispositionsorotherinvestmentsaresubjecttovariousrisksoruncertaintiesandmaynotbecompletedinaccordancewiththeexpectedplansoranticipatedtimeframe,oratall,andwillinvolvesignificanttimeandexpense,whichcoulddisruptoradverselyaffectourbusiness.

Wehavemadeandexpecttocontinuetopursueselectiveacquisitionsordispositionsofbusinesses,orinvestmentsinstrategicbusinessopportunities.Wemaybeunabletolocatesuitableacquisitionsorinvestments,orwemaybeunabletoconsummateanysuchtransactionsontermsandconditionsacceptabletous.Acquisitionsmaybringusintobusinesseswehavenotpreviouslyconductedorjurisdictionswherewehavehadlittletonoprioroperationsexperienceandthusexposeustoadditionalbusinessrisksthataredifferentfromthosewehavetraditionallyexperienced.Wealsomayencounterdifficultiesidentifyingallsignificantrisksduringourduediligenceactivitiesorintegratingacquisitionsandsuccessfullymanagingorachievingthegrowthweexpecttoexperiencefromtheseacquisitions.Wemayinvestincompaniesorbusinessesthatfail,causingalossofallorpartofourinvestment.

Divestingbusinessesinvolvesrisksanduncertainties,suchasthedifficultyseparatingassetsrelatedtosuchbusinessesfromthebusinessesweretain,employeedistraction,theneedtoobtainregulatoryapprovalsandotherthird-partyconsents,whichpotentiallydisruptscustomerandvendorrelationships,andthefactthatwemaybesubjecttoadditionaltaxobligationsorlossofcertaintaxbenefits.Suchactionsalsoinvolvesignificantcostsandrequiretimeandattentionofourmanagement,whichmaydivertattentionfromotherbusinessoperations.Becauseofthesechallenges,aswellasmarketconditionsorotherfactors,anticipateddivestituresmaytakelongerorbecostlierorgeneratefewerbenefitsthanexpectedandmaynotbecompletedatall.Ifweareunabletocompletethedivestituresortosuccessfullytransitiondivestedbusinesses,ourbusinessandfinancialresultscouldbenegativelyimpacted.Ifwedisposeofabusiness,wemaynotbeabletosuccessfullycauseabuyerofadivestedbusinesstoassumetheliabilitiesofthatbusinessor,evenifsuchliabilitiesareassumed,wemayhavedifficultiesenforcingourrights,contractualorotherwise,againstthebuyer.Wemayretainexposureonfinancialorperformanceguaranteesandothercontractual,employment,pensionandseveranceobligations,andpotentialliabilitiesthatmayariseunderlawbecauseofthedispositionorthesubsequentfailureofanacquirer.Asaresult,performancebythedivestedbusinessesorotherconditionsoutsideofourcontrolcouldhaveamaterialadverseeffectonourresultsofoperations.Inaddition,thedivestitureofanybusinesscouldnegativelyimpactourprofitabilitybecauseoflossesthatmayresultfromsuchasale,thelossofrevenuesoradecreaseincashflows.Followingadivestiture,wemayalsohavelessdiversityinourbusinessandinthemarketsweserve,aswellasinourclientbase.

Wemaybeunabletosuccessfullyintegrateacquisitionsorinvestmentswemakeintoourbusinessesorcapturetheanticipatedbenefitsoftheseacquisitionsandinvestments.

Wheneverwemakeanacquisitionorinvestment,wehaveandwillcontinuetodevotesignificantmanagementattentionandresourcestointegratingoraligningthebusinesspracticesandoperationsofcompaniesweacquireorinvestin.Difficultieswemayencounterintheintegration/alignmentprocessinclude:

• Adelayintheintegrationoralignmentofmanagementteams,strategies,operations,productsandservices;

• Diversionoftheattentionofmanagementasaresultoftheacquisitionorinvestment;

• Theconsequencesofachangeintaxtreatment,includingthecostsofintegration/consolidationandcompliance,andthepossibilitythattheanticipatedbenefitsoftheacquisition/investmentwillnotberealized;

• Differencesincorporatecultureandmanagementphilosophies;

• Theabilitytoretainkeypersonnel;

• Thechallengesofintegratingoraligningcomplexsystems,technology,networksandotherassetsintoortobecompatiblewithoursinawaythatminimizesanyadverseeffectsonthebusiness;and

• Potentialunknownliabilitiesandunforeseenincreasedexpensesordelaysassociatedwiththeacquisitionorinvestment,includingthecoststointegrateorconsolidatebeyondcurrentestimates.

Anyofthesefactorscouldnegativelyaffectourabilitytomaintainbusinessrelationshipsortoachievetheanticipatedbenefitsoftheacquisitionorinvestment.

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RisksRelatedtoourCommonStock

Intheeventweissueadditionalequitysecurities,stockholders'ownershippercentageswouldbediluted.

Wemayinthefutureissueadditionalequitysecuritiestopayforpotentialacquisitionsortootherwisefundourcorporateinitiatives.Ifwedoissueadditionalequitysecurities,theissuancemaydiluteourearningspershareandstockholders'percentageownership.

Delawarelaw,ourcharterdocumentsandourstockholderrightsagreementmayimpedeordiscourageatakeoverorchangeofcontrol.

FluorisaDelawarecorporation.Variousanti-takeoverprovisionsunderDelawarelawimposeimpedimentsontheabilityofotherstoacquirecontrolofus,evenifachangeofcontrolwouldbebeneficialtoourstockholders.Inaddition,certainprovisionsofourchartersandbylawsmayimpedeordiscourageatakeover.Forexample:

• stockholdersmaynotactbywrittenconsent;

• therearevariousrestrictionsontheabilityofastockholdertocallaspecialmeetingortonominateadirectorforelection;and

• ourBoardofDirectorscanauthorizetheissuanceofpreferredshares.

Thesetypesofprovisionsinourchartersandbylawscouldalsomakeitmoredifficultforathirdpartytoacquirecontrolofus,eveniftheacquisitionwouldbebeneficialtoourstockholders.Accordingly,stockholdersmaybelimitedintheabilitytoobtainapremiumfortheirshares.

OnMarch24,2020,ourBoardofDirectorsapprovedtheadoptionofalimiteddurationstockholderrightsagreementanddeclaredadividenddistributionofonepreferredsharepurchaserightoneachoutstandingshareofourcommonstock.Therightsaredesignedtoensurethatallofourstockholdersreceivefairandequaltreatmentintheeventofanyproposedtakeoverofthecompanyandtoprotectagainstabusivetacticstogaincontrolofthecompanywithoutpayingallstockholdersapremiumforthatcontrol.ThestockholderrightsagreementwouldcausesubstantialdilutiontoanypersonorgroupthatattemptstoacquireusontermsnotapprovedinadvancebyourBoardofDirectorsandmayhavetheeffectofdelaying,discouragingorpreventingachangeincontrolthatmightotherwisebebeneficialtostockholdersandmightadverselyaffectthemarketpriceofourcommonstock.

Item1B. UnresolvedStaffComments

None.

Item2. Properties

MajorFacilities

OuroperationsareconductedatbothownedandleasedpropertiesinU.S.andforeignlocationstotalingapproximately7.9millionrentablesquarefeet.Ourexecutiveofficesarelocatedat6700LasColinasBoulevard,Irving,Texas.Asourbusinessfrequentlychanges,theextentofutilizationofthefacilitiesbyparticularsegmentscannotbeaccuratelystated.Inaddition,certainofourpropertiesareleasedorsubleasedtothirdpartytenants.Whilewehaveoperationsworldwide,thefollowingsummarizesourmoresignificantexistingfacilities:

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Location InterestUnitedStates:

Greenville,SouthCarolina OwnedHouston(SugarLand),Texas LeasedIrving,Texas(CorporateHeadquarters) OwnedSouthernCalifornia(AlisoViejoandLongBeach) Leased

Canada:

Calgary,Alberta OwnedVancouver,BritishColumbia Leased

LatinAmerica:

MexicoCity,Mexico LeasedSantiago,Chile OwnedandLeased

Europe,AfricaandMiddleEast:

AlKhobar,SaudiArabia OwnedAmsterdam,theNetherlands OwnedFarnborough,England OwnedandLeasedGliwice,Poland OwnedJohannesburg,SouthAfrica LeasedUtrecht,theNetherlands Leased

Asia/AsiaPacific:

Manila,thePhilippines OwnedandLeasedNewDelhi,India LeasedPerth,Australia LeasedShanghai,China Leased

Inaddition,weleaseorownanumberofindividuallyinsignificantoffices,warehousesandequipmentyardsstrategicallylocatedthroughouttheworld.Wealso,throughvariousjointventures,ownorleasefabricationyardsinChinaandMexico.

Item3. LegalProceedings

Aspartofournormalbusinessactivities,wearepartytoanumberoflegalproceedingsandothermattersinvariousstagesofdevelopment.Weperiodicallyassessourliabilitiesandcontingenciesforthesemattersbaseduponthelatestinformationavailable.

Forinformationonlegalproceedingsandmattersindispute,seetheConsolidatedFinancialStatementsinthisreport.

Item4. MineSafetyDisclosures

None.

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PARTII

Item5. MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

OurcommonstockistradedontheNewYorkStockExchangeunderthesymbol"FLR."

Anyfuturecashdividendswilldependuponourresultsofoperations,financialcondition,cashrequirements,availabilityofsurplusandsuchotherfactorsasourBoardofDirectorsmaydeemrelevant.See"Item1A.—RiskFactors."

AtJanuary31,2021,therewere140,759,346sharesoutstandingand4,244stockholdersofrecordofthecompany'scommonstock.

IssuerPurchasesofEquitySecurities

ThefollowingtableprovidesinformationforthethreemonthsendedDecember31,2020aboutpurchasesbythecompanyofequitysecuritiesthathavebeenregisteredpursuanttoSection12oftheSecuritiesExchangeActof1934,asamended(the"ExchangeAct").

Period

TotalNumberofSharesPurchased

AveragePricePaidperShare

TotalNumberofSharesPurchasedas

PartofPubliclyAnnouncedPlans

orPrograms

MaximumNumberof

SharesthatMayYetBePurchasedUnderPlansorPrograms(1)

October1–October31,2020 — $ — — 10,513,093

November1–November30,2020 — — — 10,513,093

December1–December31,2020 — — — 10,513,093

Total — $ — —

_______________________________________________________________________________

(1) Thesharerepurchaseprogram,asamended,totals34,000,000shares.Wemayrepurchasesharesfromtimetotimeinopenmarkettransactionsorprivatelynegotiatedtransactions,includingthroughpre-arrangedtradingprograms,atourdiscretion,subjecttomarketconditionsandotherfactorsandatsuchtimeandinamountsthatwedeemappropriate.

Item7. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations

Thefollowingdiscussionandanalysisshouldbereadinconjunctionwithourfinancialstatements.

ResultsofOperations

Inearly2020,wedecidedtoretainourgovernmentbusiness,whichhadbeenincludedinDiscOpssincethethirdquarterof2019.Asaresult,thegovernmentbusinessisnolongerreportedasadiscontinuedoperationforanyperiodpresented.OurplantoselltheAMECOequipmentbusinessremainsunchangedanditremainsreportedasadiscontinuedoperation.WeexpecttocompletethesaleoftheAMECOequipmentbusinesswithinthefirsthalfof2021.TheassetsandliabilitiesoftheAMECObusinessareclassifiedasheldforsaleforallperiodspresented.

Inlightofourdecisiontoretainourgovernmentbusinessin2020,wehadthefollowingsixreportablesegments:

◦ Energy&Chemicals◦ Mining&Industrial◦ Infrastructure&Power◦ Government◦ DiversifiedServices◦ Other

Beginninginthefirstquarterof2021,wewilloperatethroughthreebusinesssegments:EnergySolutions,UrbanSolutionsandMissionSolutions.EnergySolutionswillfocusonenergytransition,chemicalsandtraditionaloilandgasopportunities.UrbanSolutionswillfocusonmining,metals,advancedtechnologies,manufacturing,lifesciences,infrastructureandourprofessionalstaffingservices.MissionSolutionswillfocusondeliveringsolutionstofederalagenciesacrosstheU.S.governmentandtoselectinternationalopportunities.Additionally,weareinitiatingplanstosellStork.

During2019,weapprovedandinitiatedabroadrestructuringplandesignedtooptimizecosts,improveoperationalefficiencyandsupportlong-termsustainablegrowth.Theserestructuringactivitiesincludedtherationalizationofresources,investments,realestateandoverheadacrossvariousgeographies.Wealsometwithanumberofourclients,subcontractors

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andsuppliersinanattempttobringresolutiontoorgetclarificationonavarietyofmatters,includingoutstandingdisputesandclaims,pendingchangeorders,scheduleextensions,accountsreceivableandotherprojectcloseoutitems.Thenegotiationsandagreementsresultingfromthesemeetings,aswellasprojectdevelopmentsduringthesecondquarter,resultedintherecognitionofsignificantchargesacrossthreesegments,whicharereflectedintheresultsfor2019.

YEARENDEDDECEMBER31,

(inmillions) 2020 2019 2018

RevenueEnergy&Chemicals $ 5,260.4 $ 5,823.7 $ 7,695.5Mining&Industrial 4,149.1 5,057.2 3,491.0Infrastructure&Power 1,595.5 1,370.4 1,668.0Government 2,922.8 2,969.3 3,678.5DiversifiedServices 1,630.9 2,040.1 2,257.2Other 109.8 56.6 60.8

Totalrevenue $ 15,668.5 $ 17,317.3 $ 18,851.0

Segmentprofit(loss)$andmargin%Energy&Chemicals $ 163.7 3.1% $ (95.0) (1.6)% $ 334.5 4.3%Mining&Industrial 122.4 2.9% 158.5 3.1% 94.3 2.7%Infrastructure&Power 13.7 0.9% (243.9) (17.8)% (30.1) (1.8)%Government 88.4 3.0% 200.3 6.7% 187.3 5.1%DiversifiedServices 14.2 0.9% 14.6 0.7% 68.7 3.0%

Other (85.4) NM (220.1) NM (144.7) NM

Totalsegmentprofit(loss)$andmargin%(1) $ 317.0 2.0% $ (185.6) (1.1)% $ 510.0 2.7%

CorporateG&A (240.7) (165.9) (121.2)Impairment,restructuringandotherexitcosts (305.6) (532.6) —Gain(loss)onpensionsettlement 0.4 (137.9) (21.9)Interestexpense,net (46.4) (18.5) (40.6)Earnings(loss)attributabletoNCIfromContOps 68.3 (31.0) 59.4Earnings(loss)fromContOpsbeforetaxes (207.0) (1,071.5) 385.7Less:Incometaxexpense(benefit) 18.6 485.2 173.3

Netearnings(loss)fromContOps $ (225.6) $ (1,556.7) $ 212.4

NewawardsEnergy&Chemicals $ 2,013.2 $ 3,724.1 $ 10,641.4Mining&Industrial 2,799.1 1,861.9 8,696.1Infrastructure&Power 763.7 2,608.7 2,066.0Government 1,882.8 1,999.2 4,130.3DiversifiedServices 1,546.1 2,217.2 2,138.5Other — 152.2 —

Totalnewawards $ 9,004.9 $ 12,563.3 $ 27,672.3

NewawardsrelatedtoprojectslocatedoutsideoftheU.S. 58% 51% 80%

(1) Totalsegmentprofit(loss)isanon-GAAPfinancialmeasure.Webelievethattotalsegmentprofit(loss)providesameaningfulperspectiveonourresultsasitistheaggregationofindividualsegmentprofit(loss)measuresthatweusetoevaluateandmanageourperformance.

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(inmillions)December31,

2020December31,

2019

BacklogEnergy&Chemicals $ 11,020.5 $ 14,128.9Mining&Industrial 3,979.7 5,383.9Infrastructure&Power 5,244.3 6,079.4Government 2,780.3 3,556.1DiversifiedServices 2,425.4 2,541.6Other 119.2 244.0

Totalbacklog $ 25,569.4 $ 31,933.9

BacklogrelatedtoprojectslocatedoutsideoftheU.S. 64% 67%

Backlogrelatedtolump-sumprojects 55% 52%

OurbusinesshasbeenadverselyaffectedbytheeconomicimpactsoftheoutbreakofCOVID-19andthesteepdeclineinoilpricesthatoccurredintheearlypartof2020.Theseeventshavecreatedsignificantuncertaintyandeconomicvolatilityanddisruption,whichhaveimpactedandmaycontinuetoimpactourbusiness.Wehaveexperienced,andmaycontinuetoexperience,reductionsindemandforcertainofourservicesandthedelayorabandonmentofongoingoranticipatedprojectsduetoourclients’,suppliers’andotherthirdparties’diminishedfinancialconditionorfinancialdistress,aswellasgovernmentalbudgetconstraints.AlthoughweinitiallyassessedourprojectestimatesforCOVID-19duringthefirstquarterof2020,continuedisolationofestimatedCOVID-19effectsbecameincreasinglydifficulttomeasureas2020progressed.OurestimatesreflectourbestassessmentofprojectresultsinclusiveofCOVID-19effects,whichhavebeendynamicasourprojectshaveseenchangesinprevailingregulationsasCOVIDcasescrestedandfell.Theseimpactsmaycontinueorworsenunderprolongedstay-at-home,socialdistancing,travelrestrictionsandothersimilarordersorrestrictions.Significantuncertaintystillexistsconcerningthemagnitudeoftheimpactanddurationoftheseevents.

Becauseoftheforegoingmatters,weperformedinterimimpairmenttestingofourgoodwill,intangibleassetsandinvestments.Wealsoevaluatedtheimpactoftheseeventsonourreservesforcreditriskandthefairvalueofourassetsheldforsale.

During2020,werecognizedthefollowingsignificantcharges:

•$298millionforimpairmentsofgoodwill,intangibleassets,investmentsandotherassets;

•$60millionforcurrentexpectedcreditlossesassociatedwithEnergy&Chemicalsclients;

•$146millionforimpairmentsofassetsheldforsale(includedinDiscOps),ofwhich$12millionrelatedtogoodwill;aswellas

•SignificantforecastrevisionsforprojectpositionsduetoCOVID-19relatedscheduledelaysandassociatedcostgrowth.

During2019,werecognizedcharges(relatedtocumulativecatchupadjustmentsandlossprojects)totaling$839millionintheEnergy&Chemicals,Infrastructure&PowerandOthersegments.Wealsorecognized$533millionrelatedtoimpairments,restructuringandotherexitcosts.Additionally,wesettledtheremainingobligationsassociatedwithourdefinedbenefitpensionplanintheUnitedKingdomandrecognizedalossonpensionsettlementof$138millionduring2019.During2018,werecognizedchargestotaling$417millionrelatedtoprojectsintheEnergy&Chemicals,Infrastructure&PowerandOthersegments.Theseprojectchargeswerepartiallyoffsetbyagainof$125millionfromthesaleofajointventureinterestintheUnitedKingdom.Earningsin2018alsobenefittedfromtheadoptionofASC606whichincreasedearningsbeforetaxesby$132million,primarilyintheEnergy&Chemicalssegment.

During2020,consolidatedrevenuedeclinedprimarilyduetovolumedeclinesonEnergy&ChemicalsandMining&Industrialprojects,manyofwhichwerecompletedornearingcompletion.Therevenuedeclinein2020wasfurthercompoundedbyCOVID-19andthedeclineinoilprices.Forexample,alargeminingprojectwassuspendedforsixmonthsduetoCOVID-19andthevolumeofworkintheDiversifiedServicessegmentsignificantlydeclinedasturnaroundworkwasdelayedandmaintenancescopesreduced.During2019,consolidatedrevenuedeclinedprimarilyduetovolumedeclinesonEnergy&ChemicalsprojectsaswellasthecompletionofapowerrestorationprojectinPuertoRicoin2018andthreelargepowerprojectsin2019.

During2020,totalsegmentprofitincreasedduetotheprojectchargesintheEnergy&Chemicals,Infrastructure&PowerandOthersegmentsrecognizedin2019(discussedabove).Theincreaseintotalsegmentprofitin2020wasdiminished

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bytheimpactofCOVID-19onnumerousprojectsin2020.During2019,totalsegmentprofitsignificantlydeclinedduetothe2019projectchargesintheEnergy&Chemicals,Infrastructure&PowerandOthersegments.

Theeffectivetaxratefromcontinuingoperationswas(9.0%),(45.3%)and44.9%for2020,2019,and2018,respectively.The2020effectivetaxratewasfavorablyimpactedbya$125millionbenefitduetotheutilizationofa2019netoperatinglosscarrybackasallowedundertheCARESACTenactedonMarch27,2020.Thisbenefitwasoffsetbya$149millionincreaseinvaluationallowancestoreducedeferredtaxassetsprimarilyintheU.S.andtheNetherlands.The2019effectivetaxratewasunfavorablyimpactedby$731millioninchargesrelatedtoestablishingvaluationallowancestoreducenetdeferredtaxassetsintheU.S.,theU.K.andAustralia.The2018effectivetaxratewasunfavorablyimpactedduetoa$79millionincreaseinvaluationallowancestoreducecertaindeferredtaxassetsintheU.S.,theNetherlandsandBelgium.

Ourresultsreportedbyforeignsubsidiarieswithnon-U.S.dollarfunctionalcurrenciesareaffectedbyforeigncurrencyvolatility.WhentheU.S.dollarappreciatesagainstthenon-U.S.dollarfunctionalcurrenciesofthesesubsidiaries,ourreportedrevenue,costandearnings,aftertranslationintoU.S.dollars,arelowerthanwhattheywouldhavebeenhadtheU.S.dollardepreciatedagainstthesameforeigncurrenciesoriftherehadbeennochangeintheexchangerates.

Ourmargins,insomecases,maybefavorablyorunfavorablyimpactedbyachangeintheamountofmaterialsandcustomer-furnishedmaterials,whichareaccountedforaspass-throughcosts.

Thelackofbroadbasednewawardscouldcontinuetoputpressureonourfutureearningsstreams,particularlyintheEnergy&Chemicalssegment.Backlogincluded$1.8billionforprojectsinalosspositionasofDecember31,2020.Thedeclineinbacklogduring2020and2019primarilyresultedfromnewawardactivitybeingoutpacedbyworkperformed.During2019,certainsuspendedcontractsassociatedwithourjointventureinMexicowereremovedfrombacklog.Althoughbacklogreflectsbusinessthatisconsideredtobefirm,cancellations,deferralsorscopeadjustmentsmayoccur.Backlogisadjustedtoreflectanyknownprojectcancellations,revisionstoprojectscopeandcost,foreigncurrencyexchangefluctuationsandprojectdeferrals,asappropriate.BacklogdiffersfromRUPOdiscussedelsewhere.Backlogincludestheamountofrevenueweexpecttorecognizeunderongoingoperationsandmaintenancecontractsfortheremainderofthecurrentyearrenewalperiodplusuptothreeadditionalyearsifrenewalisconsideredtobeprobable,whileRUPOincludesonlytheamountofrevenueweexpecttorecognizeunderongoingoperationsandmaintenancecontractswithdefinitetermsandsubstantiveterminationprovisions.

Impairment,RestructuringandOtherExitCosts

During2019,weinitiatedarestructuringplandesignedtooptimizecostsandimproveoperationalefficiency.Theseeffortsprimarilyrelatetotherationalizationofresources,investments,realestateandoverheadacrossvariousgeographies,aswellastheliquidationofcertaincomponentsoftheAMECObusinessthatarebeingexcludedfromsale.Ourplannedrestructuringactivitiesweresubstantiallycompletedbytheendof2020.Restructuringcoststotaled$8millionand$240millionduring2020and2019,respectively.

Informationaboutourrestructuring,whichwebelieveiscompleteasofDecember31,2020,follows:

(inmillions)

CostsIncurredin

2020

CostsIncurredin

2019

Restructuringandotherexitcosts:

Severance $ 6.6 $ 63.9

Assetimpairments 0.4 90.4

Entityliquidationcosts(includingtherecognitionofcumulativetranslationadjustments) — 83.7

Otherexitcosts 1.0 2.0

Totalrestructuringandotherexitcosts $ 8.0 $ 240.0

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Impairmentexpenseissummarizedasfollows:YearEndedDecember31,

(inthousands) 2020 2019

Impairmentexpense:

GoodwillassociatedwiththeDiversifiedServicesreportingunit $ 168,568 $ 2,125

IntangiblecustomerrelationshipsassociatedwithStork 26,671 33,657

EquitymethodinvestmentsintheEnergy&Chemicalssegment 86,096 256,769

Informationtechnologyassets 16,269 —

Totalimpairmentexpense $ 297,604 $ 292,551

Inthefirstquarterof2021,weannouncedaplantosellStork.Beginninginthefirstquarterof2021,weexpectStorkwillbereportedasadiscontinuedoperationandtheassetsandliabilitiesofStorkwillbeclassifiedasheldforsale.Onceclassifiedasavailableforsale,Stork'sassetswillbesubjectedtoaquarterlyrecoverabilityanalysis.

SegmentOperations

Weprovideprofessionalservicesinthefieldsofengineering,procurement,construction,fabricationandmodularization,operations,maintenanceandassetintegrity,aswellasprojectmanagementservices,onaglobalbasisandserveadiversesetofindustriesworldwide.Weconsiderchargestoincludeeffectsthatnegativelyimpactaproject'sgrossmargin,includingnegativeadjustmentstorevenueandrecognitionofprojectlosses.

Energy&Chemicals

Revenuein2020decreasedcomparedto2019duetosignificantdeclinesinthevolumeofexecutionactivitiesfornumerousupstream,downstreamandchemicalsprojectsnearingcompletion,partiallyoffsetbyincreasedexecutionactivityforanLNGprojectinCanada.Revenuein2019decreasedcomparedto2018duetoasignificantdeclineinthevolumeofcustomer-furnishedmaterialsandprojectexecutionactivities,combinedwiththeimpactofalowervolumeofbroadbasednewawards.Therevenuedeclinein2019wasalsopartiallyoffsetbyincreasedexecutionactivityfortheLNGproject.

Segmentprofitsignificantlyincreasedduring2020despitetheadverseimpactsoftherecognitionofreservestotaling$60millionforexpectedcreditlossesassociatedwithcertainjointventureclients,aswellasmargindiminutiononapercentage-of-completionbasisresultingfromprojectpositionstakenwithrespecttoCOVID-19relatedscheduledelaysandassociatedcostgrowth.Theincreaseinsegmentprofitduring2020isprimarilytheresultofchargestakenduring2019,discussedbelow.Excludingtheseitems,segmentprofitdeclinedin2020duetothereducedexecutionactivityoftheupstream,downstreamandchemicalsprojectsdiscussedabove,partiallyoffsetbytheincreaseinactivityfortheLNGprojectandadecreaseinoverhead.

Segmentprofitin2019significantlydecreasedcomparedto2018asaresultofchargestakenduring2019including$260millionforcostgrowthonanoffshoreproject,$87millionforcostgrowthontwodownstreamprojectsandscopereductionsonalargeupstreamproject,$26millionforthewrite-offofpre-contractcosts,$26milliononembeddedforeigncurrencyderivativesand$31millionfromtheresolutionofclose-outmatters.Segmentprofitin2018wasadverselyimpactedbychargesof$133millionforcostgrowthonacompleted,downstreamprojectand$40millionforcostgrowthontheaforementionedoffshoreproject.

Thechangesinsegmentprofitmarginin2020and2019wereprimarilyattributabletothesamefactorsthataffectedrevenueandsegmentprofit.Segmentprofitmarginin2020wasalsoadverselyimpactedbyashiftfromhighermarginworkin2019tolowermarginworkin2020incertaingeographies.

Nosignificantawardswerebookedin2020duetotheimpactofCOVID-19anddecliningoilpricesonourcustomers'capitalspend.Newawardsin2019includedadownstreamprojectintheUnitedKingdomaswellaschemicalsprojectsinChina,IndiaandontheU.S.gulfcoast.Newawardsin2018includedanLNGexportfacilityinCanadaaswellasanengineeringandprocurementcontractforarefineryinTexas.

Thedeclineinbacklogduring2020resultedfromthedeclineinnewawardactivityandthede-recognitionofasuspendeddownstreamproject.Thedecreaseinbacklogduring2019resultedprimarilyfromnewawardactivitybeingoutpacedbyworkperformedaswellastheremovalofcertaincontractsassociatedwithourjointventureinMexicothatweresuspendedduring2019.

WeexpectourEnergy&Chemicalssegmenttobenefitfromopportunitiesinthechemicalsandnon-traditionaloilandgasmarkets.

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Mining&Industrial

Revenuedecreasedin2020comparedto2019primarilyduetoasixmonthsuspensionduring2020ofalargeminingprojectinSouthAmericaduetoCOVID-19andadeclineinthevolumeofexecutionactivitiesforalargelifesciencesprojectandtwominingprojectscompletedornearingcompletion.Theserevenuedeclineswerepartiallyoffsetbyincreasedexecutionactivitiesontwoadvancedtechnologiesprojectsaswellasaminingprojectandametalsproject,bothinNorthAmerica.Revenueincreasedin2019comparedto2018primarilyduetoincreasedexecutionactivitiesforseverallargeminingprojectsaswellasrampingupconstructionactivityonthetwoadvancedtechnologiesprojects.

Segmentprofitdeclinedin2020comparedto2019primarilyduetoagainof$31millionrecognizedin2019resultingfromafavorableresolutionofalongstandingcustomerdisputeonaminingproject.Segmentprofitin2020wasalsoadverselyimpactedbythedeclineinactivityforthelifesciencesprojectandminingprojectsnearingcompletionaswellastheminingprojectinSouthAmericathatwasimpactedbyCOVID-19.Thedecreaseinsegmentprofitin2020waspartiallyoffsetbyareductioninoverheadexpenses. Segmentprofitin2019increasedcomparedto2018duetotheincreasedvolumeofexecutionactivitiesforthelargeminingprojectsandthetwoadvancedtechnologiesprojectsthatdrovetheincreaseinrevenueaswellasthefavorableresolutionofthecustomerdispute.Thedeclineinsegmentprofitmarginin2020andtheincreaseinsegmentprofitmarginin2019wasprimarilytheresultofthefavorableresolutionofthecustomerdisputein2019.

Newawardsin2020includedasignificantNorthAmericansteelprojectaswellasseveralfront-endstudiesthatwebelievepositionsthesegmentwellforfollow-onEPCawards.Newawardsin2019includedanadvancedmanufacturingprojectintheNetherlands.Newawardsin2018includedacopperprojectinPeru,anironorereplacementmineinAustraliaandamineexpansionprojectinPeru.Thedecreaseinbacklogduring2020and2019primarilyresultedfromworkperformedoutpacingnewawardactivity.

Weexpectourminingbusinesslinetobenefitfromthegrowingglobaldemandforcopperandouradvancedtechnologiesandlifesciencesbusinesslinetobenefitfromtheincreasingdemandfordatastoragefacilitiesandbiologicalfacilities.

Infrastructure&Power

Revenuein2020increasedcomparedto2019primarilydrivenbyanincreaseinexecutionactivitiesforseveralinfrastructureprojects,includingayear-over-yearincreaseonarailprojectwhichwascanceledinthethirdquarterof2020.Theincreaseinrevenueduring2020waspartiallyoffsetbyadecreaseinexecutionactivitiesforseveralinfrastructureprojectsnearingcompletion.Revenuein2019decreasedcomparedto2018primarilyduetothesubstantialcompletionofthethreelargepowerprojectsduring2019.Thisdeclinewaspartiallyoffsetbyincreasedprojectexecutionactivitiesonseveralinfrastructureprojects.Revenuealsoreflectstheadverseimpactofvariousforecastrevisionsdiscussedbelow.

Segmentprofitin2020significantlyimprovedcomparedto2019primarilyduetoforecastrevisionsonseveralpowerandinfrastructureprojectsrecognizedin2019(discussedbelow).Apositivesettlementonacanceledrailprojectin2020wasoffsetbychargesforcostgrowthintheinfrastructurelegacyportfolio.Segmentprofitin2019significantlydecreasedcomparedto2018duetochargesof$135millionforthesettlementofclientdisputesandcostgrowthoncertainclose-outmattersforthethreepowerprojectsdiscussedaboveand$133millionresultingfromlateengineeringchanges,schedule-drivencostgrowthandnegotiationswithclientsandsubcontractorsonpendingchangeordersforseveralinfrastructureprojects.Segmentprofitin2018included$188millioninchargesononeoftheaforementionedpowerprojectsasaresultofcostgrowthanda$125milliongainassociatedwiththesaleofajointventureinterestintheUnitedKingdom.Thechangesinsegmentprofitmarginin2020and2019wereprimarilyattributabletothesamefactorsimpactingsegmentprofitinthoseyears.Lowermargincontributionsfromcertaininfrastructureprojectsforwhichchargeswererecognizedduring2020and2019maycontinuetoadverselyimpactneartermsegmentprofitmargin.Weexpectapproximately35%ofthesegment'srevenuein2021willbegeneratedfromzeromarginprojectsasofDecember31,2020.

Newawardsin2020includedahighwayprojectinTexas.Newawardsin2019includedaroadprojectinTexasandarailprojectinChicago.Newawardsin2018includedaninternationalbridgeprojectandtheLAXAutomatedPeopleMoverproject.

Thedecreaseinbacklogduring2020wasprimarilyduetoadeclineinnewawardactivityinpartdrivenbymoreselectivityinpursuingprojectsaswellasdelayedprocurements.Thedecreaseinbacklogduring2019wasprimarilyduetoworkperformedandprojectcancellationsoutpacingnewawardactivity.Backlogincluded$1.5billionforprojectsinalosspositionasofDecember31,2020.

WebelieveourinfrastructurebusinessiswellpositionedforselectopportunitiesintheU.S.duetourbanizationandanaginginfrastructuresystem.Theseopportunitiesmaybeenhancedwiththeintroductionofafederalinfrastructurespendingbill.

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Government

Revenuein2020decreasedcomparedto2019primarilyduetothecompletionofanucleardecommissioningprojectin2019aswelladeclineinworkperformedforFEMA.Thedecreasein2020revenuewasfurtherdrivenbytherecognitionofservicefeerevenuein2019uponthefavorablesettlementofprojectclaimsontwocancellednuclearpowerprojectsintheU.S.Thedeclineinrevenuein2020waspartiallyoffsetbyincreasedprojectexecutionactivitiesattheStrategicPetroleumReserveaswellasourDOEsites.Revenuein2019decreasedcomparedto2018substantiallydrivenbythecompletionofapowerrestorationprojectinPuertoRicoin2018aswellasadecreaseinprojectexecutionactivitiesforalogisticsassistanceprograminAfghanistan,partiallyoffsetbyanincreaseinexecutionactivitiesattheSavannahRiverDOEsiteandthefavorablesettlementofthetwonuclearpowerplantprojectsin2019.

Thedecreaseinsegmentprofitin2020wassubstantiallydrivenbythefavorablesettlementofthetwonuclearpowerplantprojectsin2019aswellasthecompletionofthenucleardecommissioningprojectin2019andthedeclineinFEMAworkin2020.Segmentprofitin2020wasalsoadverselyimpactedbyCOVID-19,particularlyasitrelatestoestimatedfeerecoveriesoncertainprojects.Theincreaseinsegmentprofitin2019wasduetothefavorablesettlementofthetwonuclearpowerplantprojects.Thechangesinsegmentprofitmarginin2020and2019wereprimarilyattributabletothesamefactorsthataffectedrevenueandsegmentprofit.

Newawardsin2020,2019and2018includedone-yearextensionsofthelogisticsassistancecontractinAfghanistanandtheSavannahRiverenvironmentalmanagementcontract.Newawardsin2018alsoincludedafive-yearextensionoftheStrategicPetroleumReservecontractandathirty-monthextensionatthePortsmouthGaseousDiffusionPlantsite.

Thedeclineinbacklogduring2020and2019resultedfromnewawardactivitybeingoutpacedbyworkperformed.Backlogincluded$1.0billionand$1.9billionofunfundedgovernmentcontractsasofDecember31,2020and2019,respectively.

DiversifiedServices

Asdiscussedelsewhere,mostoftheoperatingresultsofourAMECOequipmentbusinessareincludedinDiscOps.TheretainedportionoftheAMECOoperationshavebeenorareintheprocessofbeingliquidatedbutdonotmeetthequalificationsofDiscOps.TheseretainedoperationsremainintheDiversifiedServicessegment.

Revenuein2020decreasedcomparedto2019primarilyduetotheimpactofCOVID-19anddecliningoilpricesresultinginlowervolumesintheStorkbusinessandthestaffingbusinessasturnaroundworkisdelayedandmaintenancescopesreduced.Revenuedeclinesin2020werefurtherdrivenbyreducedvolumefromthewindingdownofourAMECOoperationsinMexico.Revenuein2019decreasedcomparedto2018primarilyduetolowervolumesintheStorkbusinessinEurope,thecancellationofalargeoperationsandmaintenanceprojectinNorthAmericain2018andscopereductionsonamaintenanceprojectinAustralia.Thedeclinein2019revenuewasfurtherdrivenbyscopereductionsonalargepowerservicesprojectintheU.S.andlowervolumesattheAMECOequipmentbusinessinMexico.Therevenuedeclinesin2019werepartiallyoffsetbyhighercontributionsfromthestaffingbusinessinNorthAmericaandEurope.

Segmentprofitin2020remainedflatcomparedto2019.ThelowervolumesintheStorkbusinessandthestaffingbusinesswereoffsetbyareductioninexpensesrelatedtocloseoutactivitiesatourAMECOoperationsinMexicoaswellasareductioninoverheadcosts.Segmentprofitin2019decreasedcomparedto2018primarilydrivenbytheabovementionedreducedvolumesintheoperationsandmaintenancebusiness,includinghighermarginspecialtyservices,andtheclosureoftheAMECOequipmentbusinessinMexico.Thedeclineinsegmentprofitin2019wasfurtherdrivenbychargesrelatedtonegotiationswithclientsandjointventurepartners.Thedeclinesinsegmentprofitmarginin2020and2019wereprimarilyduetothesamefactorsaffectingsegmentprofit.

Thedecreaseinbacklogduring2020wasprimarilyduetothepostponementofnewmaintenanceworkduetoCOVID-19andthedeclineinoilprices.Theincreaseinbacklogduring2019wasprimarilyduetoalargeawardforthepowerservicesbusiness.Ourequipmentandstaffingbusinessesdonotreportbacklogornewawards.

Other

OtherincludestheoperationsofNuScale,aswellastwolump-sumprojectsincludingaplantforwhichweserveasasubcontractortoacommercialclient(the"Radford"project)andaweaponsstorageandmaintenancefacility(the"Warren"project).TheRadfordandWarrenprojectscontinuetoprojectlossesasofDecember31,2020.

Revenuein2020increasedcomparedto2019duetoincreasedexecutionactivitiesforboththeRadfordandWarrenprojects.

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Segmentlossin2020improvedduetotherecognitionofsignificantchargesontheRadfordandWarrenprojectsin2019.Forecastrevisionsin2019resultedinchargesof$59millionontheWarrenprojectand$83millionontheRadfordprojectforvariousengineeringandcostgrowthassociatedwiththefacilities.Segmentlossin2018of$56millionwasdrivenbyforecastrevisionsontheRadfordproject.Ourforecastforbothprojectsisbaseduponourassessmentoftheprobablecosttofinishtheprojectsaswellasourassessmentoftherecoveryofunapprovedchangeorders.TheRadfordprojectissubstantiallycompletewithsystemsturnovertotheclientexpectedinthefirstquarterof2021.

NuScaleexpenses,netofqualifiedreimbursableexpenses,includedinthedeterminationofsegmentloss,were$84million,$66millionand$74millionduring2020,2019and2018,respectively.TheincreaseinNuScalecostsduring2020wasduetoanincreaseinresearchanddevelopmentactivitiesasNuScalereceivedfinaldesigncertificationbytheU.S.NuclearRegulatoryCommissioninAugustof2020.CapitalcontributionsbyNuScale'sNCIholdersof$9million,$49millionand$2millionduring2020,2019and2018,respectively,reducedtheneedforadditionalfundingfromFluor.

CorporateandOtherMattersYEARENDEDDECEMBER31

(inmillions) 2020 2019 2018

CorporateG&ACompensation $ 121.7 $ 87.1 $ 115.3Foreigncurrency(gains)losses 46.8 26.5 (33.4)Legalandaccountingfeesassociatedwiththe2020internalreview 42.0 — —Other 30.2 52.3 39.3

CorporateG&A $ 240.7 $ 165.9 $ 121.2

Theincreaseincompensationexpensein2020wasprimarilyduetohigherstockpricedrivencompensation,asourstockpriceincreasedfromthedateofgranttotheendoftheyear.Thedecreaseincompensationexpensein2019wasprimarilyduetolowerstockpriceandperformancedrivencompensation.During2020and2019,mostmajorforeigncurrenciesstrengthenedagainsttheU.S.dollarresultinginforeigncurrencyexchangelosses.In2018,mostmajorforeigncurrenciesweakenedagainsttheU.S.dollarresultinginforeigncurrencyexchangegains.Thedecreaseinotherexpensein2020wasdrivenbytherealizationofourrestructuringeffortsandlowertravelcostsduetoCOVID-19.

Theincreaseinnetinterestexpenseduring2020wasprimarilyattributabletoadecreaseininterestincomedrivenbylowerinterestratesin2020.Thedecreaseinnetinterestexpenseduring2019wasprimarilyattributabletoanincreaseininterestincomefromtimedepositsin2019aswellasapaymentmadein2018fora"make-whole"premiumassociatedwiththeredemptionofthe2021Notes.

CriticalAccountingPoliciesandEstimates

Ourdiscussionandanalysisofourfinancialconditionandresultsofoperationsisbaseduponourfinancialstatements,whichhavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Oursignificantaccountingpoliciesaredescribedinthenotestoourfinancialstatements.Thepreparationofourfinancialstatementsrequiresmanagementtomakeestimatesandjudgmentsthataffectthereportedamountsofassets,liabilities,revenueandexpenses,andrelateddisclosureofcontingentassetsandliabilities.Estimatesarebasedoninformationavailablethroughthedateoftheissuanceofthefinancialstatementsand,accordingly,actualresultsinfutureperiodscoulddifferfromtheseestimates.Significantjudgmentsandestimatesusedinthepreparationofourfinancialstatementsapplytothefollowingcriticalaccountingpolicies:

RevenueRecognitionforLong-TermContracts.Werecognizeourengineeringandconstructioncontractrevenueovertimeasweprovideservicestosatisfyourperformanceobligations.Wegenerallyusethecost-to-costpercentage-of-completionmeasureofprogressasitbestdepictshowcontroltransferstoourclients.Thecost-to-costapproachmeasuresprogresstowardscompletionbasedontheratioofcontractcostincurredtodatecomparedtototalestimatedcontractcost.Useofthecost-to-costmeasureofprogressrequiresustoprepareestimatesoftotalexpectedrevenueandcosttocompleteourprojects.

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Duetothenatureofourindustry,thereissignificantcomplexityinourestimationoftotalexpectedrevenueandcost,forwhichwemustmakesignificantjudgments.Ourcontractswithourcustomersmaycontainawardfees,incentivefees,liquidateddamagesorotherprovisionsthatcaneitherincreaseordecreasethecontractpricetoarriveatestimatedrevenue.Thesevariableamountsgenerallyareawardeduponachievementofcertainperformancemetrics,programmilestonesorcosttargetsandcanbebaseduponcustomerdiscretion.Weestimatevariableconsiderationatthemostlikelyamounttowhichweexpecttobeentitled.Weincludeestimatedamountsinthetransactionpricetotheextentitisprobablewewillrealizethatamount.Ourestimatesofvariableconsiderationandourdeterminationofitsinclusioninprojectrevenueforaccountingpurposesarebasedonanassessmentofouranticipatedperformanceandotherinformationthatmaybeavailabletous.

Ataprojectlevel,wehavespecificpracticesandprocedurestoreviewourestimateoftotalrevenueandcost.Eachprojectteamreviewstheprogressandexecutionofourperformanceobligations,whichimpacttheproject’saccountingoutcome.Aspartofthisprocess,theprojectteamreviewsinformationsuchasanyoutstandingkeycontractmatters,progresstowardscompletionandtherelatedprogramscheduleandidentifiedrisksandopportunities.Theaccuracyofourrevenueandprofitrecognitioninagivenperioddependsontheaccuracyofourprojectestimates,whichcanchangefromperiodtoperiodforfactorssuchas:

• Complexityinoriginaldesign;• Extentofchangesfromoriginaldesign;• Differentsiteconditionsthanassumedinourbid;• Theproductivity,availabilityandskillleveloflabor;• Weatherconditionswhenexecutingaproject;• Thetechnicalmaturityofthetechnologiesinvolved;• Lengthoftimetocompletetheproject;• Availabilityandcostofequipmentandmaterials;• Subcontractorandjointventurepartnerperformance;• Expectedcostsofwarranties;and• Ourabilitytorecoverforadditionalcontractcosts.

Werecognizechangesincontractestimatesonacumulativecatch-upbasisintheperiodinwhichthechangesareidentified.Suchchangesincontractestimatescanresultintherecognitionofrevenueinacurrentperiodforperformanceobligationswhichweresatisfiedorpartiallysatisfiedinpriorperiods.Changesincontractestimatesmayalsoresultinthereversalofpreviouslyrecognizedrevenueifthecurrentestimateadverselydiffersfromthepreviousestimate.Ifweestimatethataprojectwillhavecostsinexcessofrevenue,werecognizethetotallossintheperioditisidentified.

VariableConsideration.Thenatureofourcontractsgivesrisetoseveraltypesofvariableconsideration,includingclaims,unpricedchangeorders,awardandincentivefees,liquidateddamagesandpenalties.Weconsidervariableconsiderationinthedevelopmentofourprojectforecastssothatourforecastedrevenuereflectstheamountofconsiderationweexpecttobeprobableofrecoveringwithoutafuturesignificantreversal.Weestimatetheamountofrevenueattributabletovariableconsiderationusingtheexpectedvaluemethod(i.e.,thesumofprobability-weightedamounts)orthemostlikelyamountmethod,whicheveroffersbetterprediction.Significantjudgmentsarerequiredindevelopingestimatesforvariableconsideration.

FairValueMeasurements.Weareoftenrequiredtousefairvaluemeasurementtechniqueswithinputsthatrequiretheuseofestimatesandinvolvesignificantjudgment.Thesecircumstancesinclude:

• Goodwillimpairmenttestingofreportingunitswhenquantitativeanalysisisdeemednecessary• Impairmenttestingofintangibleassetswhenimpairmentindicatorsarepresent• Impairmenttestingofinvestmentsaspartofotherthantemporaryimpairmentassessmentswhenimpairment

indicatorsarepresent• Fairvalueassessmentsofbusinessesheldforsalethatarereportedatfairvaluelesscosttosell• Purchasepriceallocationsforacquiredbusinesses

Whenperformingquantitativefairvalueorimpairmentevaluations,weestimatethefairvalueofourassetsbyconsideringtheresultsofeitherorbothincome-basedandmarket-basedvaluationapproaches.Undertheincomeapproach,weprepareadiscountedcashflowvaluationmodelusingrecentforecastsandcomparetheestimatedfairvalueofeachassettoitscarryingvalue.Cashflowforecastsarediscountedusingtheappropriateweighted-averagecostofcapitalatthedateofevaluation.Theweighted-averagecostofcapitaliscomprisedofthecostofequityandthecostofdebtwithaweightingforeachthatreflectsourcurrentcapitalstructure.Preparationoflong-termforecastsinvolvesignificantjudgmentsinvolvingconsiderationofourbacklog,expectedfutureawards,customerattrition,workingcapitalassumptions,andgeneralmarkettrendsandconditions.Significantchangesintheseforecastsoranyvaluationassumptions,suchasthediscountrateselected,couldaffecttheestimatedfairvalueofourassetsandcouldresultinimpairmentexpenses.Underthemarketapproach,we

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considermarketinformationsuchasmultiplesofcomparablepubliclytradedcompaniesand/orcompletedsalestransactionstodeveloporvalidateourfairvalueconclusions,whenappropriateandavailable.

DuetotheimpactofCOVID-19andthedeclineinoilpricesin2020,weperformedinterimimpairmenttestingofourgoodwill,intangiblesandcertainotherinvestmentsandrecognizedimpairmentexpensesduringthefirstquarterof2020of$169million,$27millionand$86million,respectively.Allotherfactorsbeingequal,aonehundredbasispointchangeinthediscountratesusedinthesevaluationswouldchangethefairvalueoftheseassetsby$47million,$2millionand$3million,respectively.

Duringthethirdquarterof2019,weperformedquantitativetestingofourgoodwill,intangiblesandotherinvestments.ThemajorityofourgoodwillresidesinourDiversifiedServicesreportingunit.Basedonthetestingperformed,thefairvalueoftheDiversifiedServicesreportingunitexceededitscarryingvalue,includinggoodwill,by20%.Allotherfactorsbeingequal,aonehundredbasispointincreaseinthediscountrateusedinthevaluationwouldhaveresultedinitsfairvalueexceedingitscarryingvalueby7%.Duringthethirdquarterof2019,werecognizedimpairmentchargesof$257millionrelatedtocertaininvestmentsand$34millionrelatedtocustomerrelationshipintangibleassets.Allotherfactorsbeingequal,aonehundredbasispointchangeinthediscountratesusedinthesevaluationswouldhaveaffectedtheseimpairmentsby$20millionand$4million,respectively.

RestructuringAccruals.WerecognizeandaccruerestructuringrelatedterminationbenefitswhentherecognitioncriteriaunderGAAPhavebeenmet,dependingonthenatureoftheterminationbenefit.Recognitionofterminationbenefitsrequirestheuseofestimatesindeterminingtheexpectedterminationbenefitspayable,whentheyareprobableofbeingrealizedandcanbereasonablyestimated.Ourestimatesconsiderthenumberofemployeesthatweexpectwillbeeligibletoreceivethebenefitandtheamountofbenefitpotentiallypayabletoeachemployeebasedoneitherthetermsoftheplanorstatutoryentitlement.

RecentAccountingPronouncements

ItemisdescribedmorefullyintheNotestoFinancialStatements.

LitigationandMattersinDisputeResolution

ItemisdescribedmorefullyintheNotestoFinancialStatements.

LIQUIDITYANDFINANCIALCONDITION

Ourliquidityisprovidedbyavailablecashandcashequivalentsandmarketablesecurities,cashgeneratedfromoperations,capacityunderourcreditfacilityand,whennecessary,accesstothecapitalmarkets.Wehavebothcommittedanduncommittedlinesofcreditavailableforrevolvingloansandlettersofcredit.Webelievethatforatleastthenext12months,cashgeneratedfromoperations,alongwithourunusedcreditcapacityandcashposition,issufficienttosupportoperatingrequirements.However,weregularlyreviewoursourcesandusesofliquidityandmaypursueopportunitiestoincreaseourliquidityposition.

InFebruary2021,weenteredintoanamendedandrestated$1.65billioncreditfacilitywhichmaturesinFebruary2023andreplacesthenowterminated$1.7billionand$1.8billionRevolvingLoanandLetterofCreditFacilities.Theamendedcreditfacilitycontainscustomaryfinancialandrestrictivecovenants,includingadebt-to-capitalizationratiothatcannotexceed0.65to1.00,alimitationontheaggregateamountofdebtofthegreaterof$750millionor€750millionforoursubsidiaries,andaminimumliquiditythreshold,asdefinedintheamendedcreditfacility,of$1.5billionwhichmaybereducedto$1.25billionupontherepaymentofdebt.IftheamendedcreditfacilityhadbeeninplaceasofDecember31,2020,ourfinancialcovenantswouldhavelimitedourfurtherborrowingstoapproximately$934million.Iftherearefuturelosses,theamountofavailablecreditcapacityunderourcommittedfacilitymaybefurtherreduced.

AsofDecember31,2020,lettersofcredittotaling$418millionwereoutstandingunderourpredecessorlinesofcredit.TherewerenoborrowingsoutstandingunderthesefacilitiesasofDecember31,2020.Thesecreditfacilitiesalsocontainedcustomaryfinancialandrestrictivecovenants,includingadebt-to-capitalizationratiothatcouldnotexceed0.6to1.0.

Cashandcashequivalentscombinedwithmarketablesecuritieswere$2.2billionasofDecember31,2020and$2.0billionasofDecember31,2019.Cashandcashequivalentsareheldinnumerousaccountsthroughouttheworldtofundourglobalprojectexecutionactivities.Non-U.S.cashandcashequivalentsamountedto$984millionand$944millionasofDecember31,2020and2019,respectively.Non-U.S.cashandcashequivalentsexcludedepositsofU.S.legalentitiesthatareeithersweptintoovernight,offshoreaccountsorinvestedinoffshore,short-termtimedeposits,towhichthereisunrestrictedaccess.

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Inevaluatingourliquidityneeds,weconsidercashandcashequivalentsheldbyourconsolidatedvariableinterestentities(jointventuresandpartnerships).Theseamounts(whichtotaled$655millionand$393millionasofDecember31,2020and2019,respectively)werenotnecessarilyreadilyavailableforgeneralpurposes.Wealsoconsidertheextenttowhichclientadvances(whichtotaled$125millionand$69millionasofDecember31,2020and2019,respectively)arelikelytobesustainedorconsumedovertheneartermforprojectexecutionactivitiesandthecashflowrequirementsofourvariousforeignoperations.Insomecases,itmaynotbefinanciallyefficienttomovecashandcashequivalentsbetweencountriesduetostatutorydividendlimitationsand/oradversetaxconsequences.WedidnotconsideranycashtobepermanentlyreinvestedoutsidetheU.S.asofDecember31,2020and2019,otherthanunremittedearningsrequiredtomeetourworkingcapitalandlong-terminvestmentneedsinnon-U.S.foreignjurisdictionswhereweoperate.

YearEndedDecember31,

(inthousands) 2020 2019 2018

OPERATINGCASHFLOW $ 185,884 $ 219,018 $ 162,164

INVESTINGCASHFLOWProceedsfromsalesandmaturities(purchases)ofmarketablesecurities (15,430) 207,374 57,591Capitalexpenditures (113,442) (180,842) (210,998)Proceedsfromsalesofproperty,plantandequipment 62,692 65,977 81,038Proceedsfromsalesofbusinessesandinvestments 48,897 — 124,942Investmentsinpartnershipsandjointventures (29,219) (52,305) (73,145)Other 4,940 40,268 21,955Investingcashflow (41,562) 80,472 1,383

FINANCINGCASHFLOWRepurchaseofcommonstock — — (50,022)Dividendspaid (28,720) (118,073) (118,734)ProceedsfromissuanceofSeniorNotes — — 598,722Repaymentof2021SeniorNotes — — (503,285)DistributionspaidtoNCI (23,184) (33,674) (63,523)CapitalcontributionsbyNCI 110,051 64,646 5,128Other (9,701) 9,802 (8,777)Financingcashflow 48,446 (77,299) (140,491)

Effectofexchangeratechangesoncash 8,814 10,262 (62,385)Increase(decrease)incashandcashequivalents 201,582 232,453 (39,329)Cashandcashequivalentsatbeginningofyear 1,997,199 1,764,746 1,804,075Cashandcashequivalentsatendofyear $2,198,781 $1,997,199 $1,764,746

Cashpaidduringtheyearfor:Interest $ 65,641 $ 71,938 $ 66,514Incometaxes(netofrefunds) 65,188 204,080 (28,408)

OperatingActivities

CashflowsfromoperatingactivitiesresultprimarilyfromourEPCactivitiesandareaffectedbychangesinworkingcapitalassociatedwithsuchactivities.Workingcapitallevelsvaryfromperiodtoperiodandareprimarilyaffectedbyourvolumeofworkandthebillingschedulesonourprojects.Theselevelsarealsoimpactedbythestageofcompletionandcommercialtermsofengineeringandconstructionprojects,aswellasourexecutionofourprojectscomparedtotheirbudget.Workingcapitalrequirementsalsovarybyprojectandthepaymentstermsagreedtowithourclients,vendorsandsubcontractors.Mostcontractsrequirepaymentsastheprojectsprogress.Additionally,certainprojectsreceiveadvancepaymentsfromclients.Atypicaltrendforourprojectsistohavehighercashbalancesduringtheinitialphasesofexecutionduetodepositspaidtouswhichthendiminishtowardtheendoftheconstructionphase.Asaresult,ourcashpositionisreducedascustomeradvancesareutilized,unlesstheyarereplacedbyadvancesonotherprojects.Wemaintaincashreservesandborrowingfacilitiestoprovideadditionalworkingcapitalintheeventthataproject’snetoperatingcashoutflowsexceeditsavailablecashbalances.

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During2020,consolidatedworkingcapitaldecreased.Specificfactorsrelatedtothechangeinworkingcapitalinclude:

• DecreasesinaccountsreceivablewhichresultedfromnormalbillingandcollectionsforseveralprojectsintheInfrastructure&Power,GovernmentandDiversifiedServicessegments.

• DecreasesincontractassetswhichresultedfromnormalprojectexecutionactivitiesforseveralprojectsintheEnergy&Chemicals,Mining&Industrial,andDiversifiedServicessegments.

During2019,workingcapitalsignificantlydecreased.Specificfactorsrelatedtothechangeinworkingcapitalinclude:

• DecreasesinaccountsreceivablewhichresultedprimarilyfromnormalbillingandcollectionsforseveralprojectsintheMining&IndustrialsegmentaswellastheLOGCAPIVprograminAfghanistan.

• DecreasesincontractassetswhichresultedprimarilyfromnormalprojectexecutionactivitiesforseveralprojectsintheEnergy&Chemicals,Infrastructure&PowerandGovernmentsegments.

Excludingthenon-cashimpactofadoptingASC606,workingcapitalincreasedduring2018.Specificfactorsrelatedtothechangeinworkingcapitalinclude:

• Increasesincontractassetswhichresultedprimarilyfromnormalprojectexecutionactivitiesonalargeminingprojectandseveralinfrastructureprojects,partiallyoffsetbydecreasesincontractassetsonseveralEnergy&Chemicalsprojects.

• AdecreaseincontractliabilitiesintheEnergy&Chemicalssegment,whichresultedprimarilyfromnormalprojectexecutionactivitiesonseverallargeprojects.

• AnincreaseinaccountspayableintheMining&Industrialsegment,whichresultedfromnormalinvoicingactivitiesonalargeminingproject.

• Adecreaseinothercurrentassets,drivenprimarilybythereceiptofincometaxrefundsin2018.

Thedecreaseinoperatingcashflowin2020andtheincreaseinoperatingcashflowin2019resultedprimarilyfromchangesinworkingcapitalbalances.

Duringthefourthquarterof2020,weenteredintoasettlementagreementwithaclientinconnectionwithadisputeoverclient-imposeddelaysandcostoverrunsonacancelledrailprojectinMaryland.Wereceivedaninitialsettlementpaymentof$116millioninDecember2020andwearecontractuallyowedanadditional$150milliontobepaidnolaterthanDecember2021.

During2020,wepaidapproximately$40millioninlegalandaccountingfeesassociatedwiththeinternalreviewthatwascompletedinDecember2020.

Wecontributed$130million,$115millionand$150millionintoourDCplansduring2020,2019and2018,respectively,and$25million,$15millionand$45millionintoourDBplansduring2020,2019and2018,respectively.Weexpecttocontributeupto$12milliontoourDBplansin2021,whichisexpectedtobeinexcessoftheminimumfundingrequired.

AllperiodsincludedtheoperationsofNuScale,whichareprimarilyforresearchanddevelopmentactivitiesassociatedwiththelicensingandcommercializationofsmallmodularnuclearreactortechnology.NuScaleexpensesincludedinthedeterminationofsegmentprofitwere$84million,$66millionand$74millionduring2020,2019and2018,respectively.NuScaleexpensesfor2020,2019and2018werereportednetofqualifiedreimbursableexpensesof$71million,$56millionand$62million,respectively.CapitalcontributionsbyNuScale'sNCIholdersof$9million,$49millionand$2millionduring2020,2019and2018,respectively,reducedtheneedforadditionalfundingfromFluor.

InvestingActivities

Weholdcashinbankdepositsandmarketablesecuritieswhicharegovernedbyourinvestmentpolicy.Thispolicyfocuseson,inorderofpriority,thepreservationofcapital,maintenanceofliquidityandmaximizationofyield.Theseinvestmentsmayincludemoneymarketfunds,bankdepositsplacedwithhighly-ratedfinancialinstitutions,repurchaseagreementsthatarefullycollateralizedbyU.S.Government-relatedsecurities,high-gradecommercialpaperandhighqualityshort-termandmedium-termfixedincomesecurities.

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CapitalexpendituresareprimarilyrelatedtoconstructionequipmentassociatedwithequipmentoperationsnowincludedinDiscOps,aswellasexpendituresforfacilitiesandinvestmentsininformationtechnology.Proceedsfromthedisposalofproperty,plantandequipmentareprimarilyrelatedtothedisposalofconstructionequipmentassociatedwiththeequipmentbusinessinDiscOps.

During2020,wesoldsubstantiallyalloftheassetsofourAMECOequipmentbusinessinJamaicaaswellas100%ofourinterestinanequipmentrentalbusinessinEurope.TheoperationsoftheAMECObusinessinJamaicawereincludedinDiscOpsthroughthedateofsale.Alsoin2020,wesoldourinterestsintwoinfrastructurejointventuresintheNetherlandsthatarecurrentlyintheoperationsandmaintenancephaseofthecontractandoneinfrastructurejointventureintheU.S.In2018,wesoldourinterestinajointventureintheUnitedKingdom.

Investmentsinunconsolidatedpartnershipsandjointventuresin2020and2019includedcapitalcontributionstotwoinfrastructurejointventuresintheUnitedStates.Investmentsin2018includedcapitalcontributionstoaninfrastructurejointventureintheUnitedStatesaswellasinvestmentsinCOOECFluor.WecompletedourfinalfundingcommitmenttoCOOECFluorof$26millionduring2021.

FinancingActivities

Wehaveacommonstockrepurchaseprogram,authorizedbytheBoardofDirectors,topurchasesharesintheopenmarketorprivatelynegotiatedtransactionsatourdiscretion.In2018,werepurchased1,097,126sharesofcommonstockunderourcurrentandpreviouslyauthorizedstockrepurchaseprograms.AsofDecember31,2020,10,513,093sharescouldstillbepurchasedundertheexistingstockrepurchaseprogram.

Quarterlycashdividendsweretypicallypaidduringthemonthfollowingthequarterinwhichtheyweredeclared.Therefore,dividendsdeclaredinthefourthquarterof2019werepaidinthefirstquarterof2020.Quarterlycashdividendsof$0.21pershareweredeclaredin2018andinthefirst,secondandthirdquartersof2019.Quarterlycashdividendsof$0.10pershareweredeclaredinthefourthquarterof2019.WesuspendedourdividendduringApril2020.ThepaymentandleveloffuturecashdividendsissubjecttothediscretionofourBoardofDirectors.

InAugust2018,weissued$600millionof4.250%SeniorNotes(the“2028Notes”)dueSeptember15,2028andreceivedproceedsof$595million,netofunderwritingdiscounts.Interestonthe2028Notesispayablesemi-annuallyonMarch15andSeptember15ofeachyear,beginningonMarch15,2019.

InSeptember2018,weusedaportionoftheproceedsfromthe2028Notestofullyredeemour$500million3.375%SeniorNotes(the“2021Notes”)dueSeptember15,2021.Theredemptionpriceof$503millionwasequalto100percentoftheprincipalamountofthe2011Notesplusa“make-whole”premiumof$3million.

Otherborrowingsrepresentshort-termbankloansandotherfinancingarrangementsassociatedwithStork.Duringthesecondandthirdquartersof2018,weissuedcommercialpapertomeetourshort-termliquidityneeds.AlloftheoutstandingcommercialpaperwasrepaidinOctober2018.

DistributionspaidtoholdersofNCIrepresentcashoutflowstopartnersofconsolidatedpartnershipsorjointventurescreatedprimarilyfortheexecutionofsinglecontractsorprojects.Distributionsin2020and2019primarilyrelatedtoaminingjointventureprojectinChile.Distributionsin2018primarilyrelatedtotransportationjointventureprojectsintheUnitedStates.CapitalcontributionsbyNCIin2020relatedtothreeinfrastructurejointventuresintheUnitedStates.CapitalcontributionsbyNCIin2019primarilyrelatedtoinitialinvestmentsfromnewpartnersinNuScale.

EffectofExchangeRateChangesonCash

During2019,mostmajorforeigncurrenciesstrengthenedagainsttheU.S.dollarresultinginunrealizedtranslationgainsof$101millionofwhich$10millionrelatedtocashheldbyforeignsubsidiaries.During2018,mostmajorforeigncurrenciesweakenedagainsttheU.S.dollarresultinginunrealizedtranslationlossesof$117millionofwhich$62millionrelatedtocashheldbyforeignsubsidiaries.Thecashheldinforeigncurrencieswillprimarilybeusedforproject-relatedexpendituresinthosecurrencies,andthereforeourexposuretoexchangegainsandlossesisgenerallymitigated.

Off-BalanceSheetArrangements

LettersofCredit

AsofDecember31,2020,lettersofcredittotaling$418millionwereoutstandingundercommittedlinesofcreditandlettersofcredittotaling$862millionwereoutstandingunderuncommittedlinesofcredit.Lettersofcreditareprovidedintheordinarycourseofbusinessprimarilytoindemnifyourclientsifwefailtoperformourobligationsunderourcontracts.Suretybondsmaybeusedasanalternativetolettersofcredit.

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Guarantees

Intheordinarycourseofbusiness,weenterintovariousagreementsprovidingperformanceassurancesandguaranteestoourclients.Theseagreementsareenteredintoprimarilytosupportprojectexecutioncommitments.Theperformanceguaranteeshavevariousexpirationdatesrangingfrommechanicalcompletionoftheprojecttoaperiodextendingbeyondcontractcompletion.Themaximumpotentialamountoffuturepaymentsthatwecouldberequiredtomakeunderoutstandingperformanceguarantees,whichrepresentstheremainingcostofworktobeperformed,wasestimatedtobe$14billionasofDecember31,2020.Amountsthatmayberequiredtobepaidinexcessofestimatedcosttocompletecontractsinprogressarenotestimable.Forcostreimbursablecontracts,amountsthatmaybecomepayablepursuanttoguaranteeprovisionsarenormallyrecoverablefromtheclientforworkperformed.Forlump-sumcontracts,theperformanceguaranteeamountisthecosttocompletethecontractedwork,lessamountsremainingtobebilledtotheclientunderthecontract.Remainingbillableamountscouldbegreaterorlessthanthecosttocomplete.Inthosecaseswherecostsexceedtheremainingamountspayableunderthecontract,wemayhaverecoursetothirdparties,suchasowners,co-venturers,subcontractorsorvendorsforclaims.TheperformanceguaranteeobligationwasnotmaterialasofDecember31,2020and2019.

Financialguarantees,madeintheordinarycourseofbusinessincertainlimitedcircumstances,areenteredintowithfinancialinstitutionsandothercreditgrantorsandgenerallyobligateustomakepaymentintheeventofadefaultbytheborrower.Thesearrangementsgenerallyrequiretheborrowertopledgecollateraltosupportthefulfillmentoftheborrower’sobligation.

Inflation

Althoughinflationandcosttrendsaffectourresults,wemitigatethesetrendsbyseekingtofixourcostatorsoonafterthetimeofawardonlump-sumorfixed-pricecontractsortorecovercostincreasesincostreimbursablecontracts.

VariableInterestEntities

Wefrequentlyformjointventuresorpartnershipswithothersprimarilyfortheexecutionofsinglecontractsorprojects.WeassessourjointventuresandpartnershipsatinceptiontodetermineifanymeetthequalificationsofaVIEasdefinedinGAAP.IfajointventureorpartnershipisaVIEandwearetheprimarybeneficiary,thejointventureorpartnershipisconsolidatedandourpartners'interestsarerecognizedasNCI.AdditionaldiscussionofourVIEsmaybefoundintheNotestotheConsolidatedFinancialStatements.

Item7A. QuantitativeandQualitativeDisclosuresaboutMarketRisk

Cashandmarketablesecuritiesaredepositedwithmajorbanksthroughouttheworld.Suchdepositsareplacedwithhighqualityinstitutionsandtheamountsinvestedinanysingleinstitutionarelimitedtotheextentpossibleinordertominimizeconcentrationofcounterpartycreditrisk.Marketablesecuritiesmayconsistoftimedeposits,registeredmoneymarketfunds,U.S.agencysecurities,U.S.Treasurysecurities,commercialpaper,non-U.S.governmentsecuritiesandcorporatedebtsecurities.Wehavenotincurredanycreditrisklossesrelatedtodepositsincashorinvestmentsinmarketablesecurities.

Certainofourcontractsaresubjecttoforeigncurrencyrisk.Welimitexposuretoforeigncurrencyfluctuationsinmostofourengineeringandconstructioncontractsthroughprovisionsthatrequireclientpaymentsincurrenciescorrespondingtothecurrencyinwhichcostisincurred.Asaresult,wegenerallydonotneedtohedgeforeigncurrencycashflowsforcontractworkperformed.However,incaseswhererevenueandexpensesarenotdenominatedinthesamecurrency,wemayhedgeourexposure,ifmaterialandifanefficientmarketexists,asdiscussedbelow.

Weutilizederivativeinstrumentstomitigatecertainfinancialexposures,includingcurrencyandoilpriceriskassociatedwithengineeringandconstructioncontracts,currencyriskassociatedwithmonetaryassetsandliabilitiesdenominatedinnonfunctionalcurrenciesandriskassociatedwithinterestratevolatility.AsofDecember31,2020,wehadtotalgrossnotionalamountsof$977millionofforeigncurrencycontracts(primarilyrelatedtotheCanadianDollar,ChineseYuan,BritishPound,Euro,IndianRupeeandPhilippinePeso)and$28millionofcommoditycontracts.Theforeigncurrencyandcommoditycontractsareofvaryingduration,noneofwhichextendbeyondDecember2024.Ourhistoricalgainsandlossesassociatedwithforeigncurrencycontractshavetypicallybeenimmaterial,andhavelargelymitigatedtheexposuresbeinghedged.Wedonotenterintoderivativetransactionsforspeculativepurposes.

Ourresultsreportedbyforeignsubsidiarieswithnon-U.S.dollarfunctionalcurrenciesarealsoaffectedbyforeigncurrencyvolatility.WhentheU.S.dollarappreciatesagainstthenon-U.S.dollarfunctionalcurrenciesofthesesubsidiaries,ourreportedrevenue,costandearnings,aftertranslationintoU.S.dollars,arelowerthanwhattheywouldhavebeenhadtheU.S.dollardepreciatedagainstthesameforeigncurrenciesoriftherehadbeennochangeintheexchangerates.

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Ourlong-termdebtobligationstypicallycarryafixed-ratecoupon,andtherefore,ourexposuretointerestrateriskisnotmaterial.

Item8. FinancialStatementsandSupplementaryData

TheinformationrequiredbythisItemissubmittedasaseparatesectionofthisForm10-KasdescribedinItem15.

Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure

None.

Item9A. ControlsandProcedures

EvaluationofDisclosureControlsandProcedures

AsdefinedinRule13a-15and15d-15oftheExchangeAct,ourmanagement,withtheparticipationofourCEOandCFO,isresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures.ThesecontrolsandproceduresshouldbedesignedtoprovidereasonableassurancethatinformationrequiredtobedisclosedbyusinreportswefileorsubmitundertheExchangeActisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintherulesandformsoftheSEC,andthattheinformationrequiredtobedisclosedbyusinreportsthatwefileorsubmitundertheExchangeActisaccumulatedandcommunicatedtoourmanagement,includingtheCEOandCFOtoallowtimelydecisionsregardingrequireddisclosure.

Basedontheirevaluation,ourCEOandCFOhaveconcludedthatourdisclosurecontrolsandprocedureswereeffectiveasofDecember31,2020.

Management'sReportonInternalControloverFinancialReporting

OurmanagementisresponsibleforestablishingandmaintainingadequateICFRthatisdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsinaccordancewithGAAP.

Ourmanagement,includingourCEOandCFO,conductedanassessmentoftheeffectivenessofourICFRasofDecember31,2020basedupontheframeworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO2013)andconcludedthatourICFRwaseffective.

Ernst&YoungLLP,ourindependentregisteredpublicaccountingfirm,hasissuedanattestationreportontheeffectivenessofourICFR.Theirreportfollowsthismanagementreport.

ChangesinInternalControloverFinancialReporting

AsdisclosedinPartII,Item9A.ControlsandProceduresinour201910-K,weconcludedthatourdisclosurecontrolsandprocedureswerenoteffectiveasofDecember31,2019duetotheexistenceofmaterialweaknessinourICFR.Materialweaknessdescribesadeficiency,orcombinationofdeficiencies,inICFR,suchthatthereisareasonablepossibilitythatamaterialmisstatementofourannualorinterimfinancialstatementswouldnotbepreventedordetectedonatimelybasis.

During2020,managementimplementedseveralremediationstoaddressthematerialweaknessby:

• Takingpersonnelactions,includingseparations,forindividualsinvolvedinprojectsassociatedwiththematerialweaknesses

• Establishingadditionalmonitoringprocedurestohelpensurethatourpoliciesandproceduresareconsistentlyfollowedattheprojectlevel,includingenhancedrequirementsforbusinesslineapprovalandsupportingdocumentation

• Reinforcingexistingpolicies,includingthosepoliciesthatarecriticaltothegenerationofaccountinginformation,toprovidefurtherassurancethatthefinancialstatementsaresubjecttoadditionalproject-levelcontrols;and

• Conductingexpandedtrainingonethicalbehaviorandinternalcertificationprocesses.

Exceptforthechangesmadeinconnectionwithourimplementationoftheremediationeffortsdiscussedabove,therehavebeennochangesinourICFRduringthefourthquarterof2020thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourICFR.

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ReportofIndependentRegisteredPublicAccountingFirm

TotheShareholdersandtheBoardofDirectorsofFluorCorporation

OpiniononInternalControlOverFinancialReporting

WehaveauditedFluorCorporation’sinternalcontroloverfinancialreportingasofDecember31,2020,basedoncriteriaestablishedinInternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)(theCOSOcriteria).Inouropinion,FluorCorporation(theCompany)maintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2020,basedontheCOSOcriteria.

Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB),theconsolidatedbalancesheetsofFluorCorporationasofDecember31,2020and2019,therelatedconsolidatedstatementsofoperations,comprehensiveincome(loss),changesinequityandcashflowsforeachofthethreeyearsintheperiodendedDecember31,2020,andtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancialstatements”)andourreportdatedFebruary26,2021expressedanunqualifiedopinionthereon.

BasisforOpinion

FluorCorporation’smanagementisresponsibleformaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreportingincludedintheaccompanyingManagement’sReportonInternalControlOverFinancialReporting.OurresponsibilityistoexpressanopiniononFluorCorporation’sinternalcontroloverfinancialreportingbasedonouraudit.WeareapublicaccountingfirmregisteredwiththePCAOBandarerequiredtobeindependentwithrespecttoFluorCorporationinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.

Ourauditincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditprovidesareasonablebasisforouropinion.

DefinitionandLimitationsofInternalControlOverFinancialReporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

/s/Ernst&YoungLLP

Dallas,Texas

February26,2021

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Item9B. OtherInformation

None.

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PARTIII

Item10. Directors,ExecutiveOfficersandCorporateGovernance

Directors,ExecutiveOfficers,PromotersandControlPersons

TheinformationrequiredbyParagraph(a),andParagraphs(c)through(g)ofItem401ofRegulationS-K(exceptforinformationrequiredbyParagraphs(d)—(f)ofthatItemtotheextenttherequiredinformationpertainstoourexecutiveofficers)andItem405ofRegulationS-KwillbesetforthinourdefinitiveproxystatementtobefiledwiththeSECpursuanttoRegulation14Awithin120daysafterthecloseofourfiscalyear(our"ProxyStatement")andisincorporatedhereinbyreference.TheinformationrequiredbyParagraph(b)ofItem401ofRegulationS-K,aswellastheinformationrequiredbyParagraphs(d)—(f)ofthatItemtotheextenttherequiredinformationpertainstoourexecutiveofficers,issetforthhereinatPartI,Item1ofthis202010-Kundertheheading"InformationaboutourExecutiveOfficers."

CodeofEthics

WehavelongmaintainedandenforcedaCodeofBusinessConductandEthicsthatappliestoourCEO,CFOandCAO.AcopyofourCodeofBusinessConductandEthics,asamended,hasbeenpostedonthe"Sustainability"—"EthicsandCompliance"portionofourwebsite,www.fluor.com.

WehavedisclosedandintendtocontinuetodiscloseanychangesoramendmentstoourcodeofethicsorwaiversfromourcodeofethicsapplicabletoourCEO,CFOandCAObypostingsuchchangesorwaiverstoourwebsite.

CorporateGovernance

Wehaveadoptedcorporategovernanceguidelines,whichareavailableonourwebsiteatwww.fluor.comunderthe"Sustainability"portionofourwebsiteundertheheading"CorporateGovernanceDocuments"filedunder"Governance."InformationregardingtheAuditCommitteeisherebyincorporatedbyreferencefromtheinformationthatwillbecontainedinourProxyStatement.

Item11. ExecutiveCompensation

InformationrequiredbythisitemwillbeincludedinourProxyStatement,whichinformationisincorporatedhereinbyreference.

Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters

EquityCompensationPlanInformation

ThefollowingtableprovidesinformationasofDecember31,2020withrespecttothesharesofcommonstockthatmaybeissuedunderourequitycompensationplans:

PlanCategory

(a)Numberofsecuritiestobeissueduponexerciseofoutstandingoptions,warrantsandrights

(b)Weightedaverageexercisepriceof

outstandingoptions,warrantsandrights

(c)Numberofsecuritiesavailablefor

futureissuanceunderequitycompensationplans(excludingsecuritieslistedincolumn(a))

Equitycompensationplansapprovedbystockholders(1) 9,434,449 $45.80(3) 9,179,797

Equitycompensationplansnotapprovedbystockholders(2) 427,420 $16.55(3) —

Total 9,861,869 9,179,797

_______________________________________________________________________________

(1) Consistsof(a)theAmendedandRestated2008ExecutivePerformanceIncentivePlan,underwhich3,631,290sharesareissuableuponexerciseofoutstandingoptions,andunderwhichnosharesremainforfutureissuance;(b)the2017PerformanceIncentivePlan,underwhich1,845,282sharesareissuableuponexerciseofoutstandingoptions,2,096,516sharesareissuableuponvestingofoutstandingrestrictedstockunits,1,554,108sharesareissuableifspecifiedperformancetargetawardsaremetunderoutstandingperformance-basedawardunits,andunderwhichnosharesremainavailableforissuance;(c)the2020PerformanceIncentivePlan,underwhich9,179,797remainavailableforissuance;(d)17,212,23,177and8,708vestedrestrictedstockunitsunderthe2008ExecutivePerformancePlan,2017PerformanceIncentivePlanand2020PerformanceIncentivePlan,respectively,thatweredeferredbynon-associatedirectorsparticipatinginthe409ADirectorDeferredCompensationProgramthataredistributableintheformofshares;

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(e)108,734vestedrestrictedstockunitsgrantedtonon-associatedirectorsunderthe2017PerformanceIncentivePlanthataresubjecttoapost-vestholdingperiodandforwhichshareshavenotbeenissued;and(f)149,422vestedrestrictedstockunitsandperformance-basedawardunitsdeferredbyexecutiveofficersunderthe2008ExecutivePerformanceIncentivePlan.

(2) ConsistsofinducementawardsmadetoMr.DavidE.ConstableinconnectionwithhisappointmentasCEO.

(3) Weighted-averageexercisepriceofoutstandingoptionsonly.

TheadditionalinformationrequiredbythisitemwillbeincludedinourProxyStatement,whichinformationisincorporatedbyreference.

Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence

InformationrequiredbythisitemwillbeincludedinourProxyStatement,whichinformationisincorporatedhereinbyreference.

Item14. PrincipalAccountantFeesandServices

InformationrequiredbythisitemwillbeincludedinourProxyStatement,whichinformationisincorporatedhereinbyreference.

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PARTIV

Item15. ExhibitsandFinancialStatementSchedules

(a) Documentsfiledaspartofthis202010-K:

1. FinancialStatements:

OurconsolidatedfinancialstatementsatDecember31,2020and2019andforeachofthethreeyearsintheperiodendedDecember31,2020,togetherwiththereportofourindependentregisteredpublicaccountingfirmonthoseconsolidatedfinancialstatementsareherebyfiledaspartofthis202010-K,beginningonpageF-1.

2. FinancialStatementSchedules:

Nofinancialstatementschedulesarepresentedsincetherequiredinformationisnotpresentornotpresentinamountssufficienttorequiresubmissionoftheschedule,orbecausetheinformationrequiredisincludedintheconsolidatedfinancialstatementsandnotesthereto.

3. Exhibits:

EXHIBITINDEX

Exhibit Description3.1 AmendedandRestatedCertificateofIncorporationoftheregistrant(incorporatedbyreferencetoExhibit3.1to

theregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMay8,2012).

3.2 Amended andRestatedBylaws of the registrant (incorporated by reference to Exhibit 3.2 to the registrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonFebruary9,2016).

3.3 Certificate of Designation, Preferences, and Rights of Series A Junior Participating Preferred Stock of theregistrant(incorporatedbyreferencetoExhibit3.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMarch25,2020).

4.1 Senior Debt Securities Indenture between Fluor Corporation andWells Fargo Bank, National Association, astrustee, dated as of September 8, 2011 (incorporated by reference to Exhibit 4.3 to the registrant's CurrentReportonForm8-K(Commissionfilenumber1-16129)filedonSeptember8,2011).

4.2 FirstSupplementalIndenturebetweenFluorCorporationandWellsFargoBank,NationalAssociation,astrustee,datedasofSeptember13,2011(incorporatedbyreferencetoExhibit4.4totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonSeptember13,2011).

4.3 Second Supplemental Indenture between Fluor Corporation andWells Fargo Bank, National Association, astrustee, dated as of June 22, 2012 (incorporated by reference to Exhibit 4.2 to the registrant's RegistrationStatementonFormS-3(Commissionfilenumber333-182283)filedonJune22,2012).

4.4 Third Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, astrustee,datedasofNovember25,2014 (incorporatedby reference toExhibit4.1 to the registrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonNovember25,2014).

4.5 Fourth Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, astrustee,datedasofMarch21,2016(incorporatedbyreferencetoExhibit4.3totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMarch21,2016).

4.6 Fifth Supplemental Indenture between Fluor Corporation and Wells Fargo Bank, National Association, astrustee,datedasofAugust29,2018(incorporatedbyreferencetoExhibit4.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonAugust29,2018).

4.7 DescriptionofSecurities(incorporatedbyreferencetoExhibit4.7totheregistrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonSeptember25,2020).

4.8 RightsAgreementdated as ofMarch25, 2020, by andbetween Fluor Corporation andComputershare TrustCompany, N.A., as rights agent, which includes as Exhibit B the Form of Rights Certificate (incorporated byreferencetoExhibit4.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMarch25,2020).

4.9 Amendment to Rights Agreement dated as of July 29, 2020, by and between Fluor Corporation andComputershareTrustCompany,N.A.,asrightsagent(incorporatedbyreferencetoExhibit4.2totheregistrant'sCurrentReportonForm8-K(commissionfilenumber1-16129)filedonAugust3,2020).

4.10 SecondAmendmenttoRightsAgreementdatedasofDecember22,2020,byandbetweenFluorCorporationand Computershare Trust Company, N.A. as rights agent (incorporated by reference to Exhibit 4.3 to theregistrant'sCurrentReportonForm8-K(commissionfilenumber1-16129)filedonDecember28,2020).

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Exhibit Description10.1 Fluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated by

referencetoExhibit10.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMay3,2013).**

10.2 FormofOptionAgreement(2015grants)undertheFluorCorporationAmendedandRestated2008ExecutivePerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.26totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonApril30,2015).**

10.3 FormofOptionAgreement(2017grants)undertheFluorCorporationAmendedandRestated2008ExecutivePerformance Incentive Plan (incorporated by reference to Exhibit 10.6 to the registrant's Annual Report onForm10-K(Commissionfilenumber1-16129)filedonFebruary17,2017).**

10.4 Form of Value Driver Incentive Award Agreement (for the senior team, with a post-vesting holding period)undertheFluorCorporationAmendedandRestated2008ExecutivePerformanceIncentivePlan(incorporatedby reference to Exhibit 10.7 to the registrant's Quarterly Report on Form 10-Q (Commission file number1-16129)filedonMay5,2016).**

10.5 Form of Value Driver Incentive Award Agreement (2017 grants) under the Fluor Corporation Amended andRestated 2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.9 to theregistrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonFebruary17,2017).**

10.6 FormofRestrictedStockUnitAgreement (for thesenior team,withapost-vestingholdingperiod)under theFluor Corporation Amended and Restated 2008 Executive Performance Incentive Plan (incorporated byreferencetoExhibit10.10totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonMay5,2016).**

10.7 Formof Restricted StockUnit Agreement (2017 grants) under the Fluor CorporationAmended andRestated2008 Executive Performance Incentive Plan (incorporated by reference to Exhibit 10.14 to the registrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonFebruary17,2017).**

10.8 Fluor Corporation 2017 Performance Incentive Plan (incorporated by reference to Exhibit 10.1 to theregistrant'sRegistrationStatementonFormS-8(Commissionfilenumber333-217653)filedonMay4,2017).**

10.9 FormofRestrictedStockUnitAgreementundertheFluorCorporation2017PerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.15totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonMay3,2018).**

10.10 FormofRestrictedStockUnitAgreement(2020grant)undertheFluorCorporation2017PerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.1totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonDecember10,2020).**

10.11 Form of Option Agreement under the Fluor Corporation 2017 Performance Incentive Plan (incorporated byreferencetoExhibit10.16totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonMay3,2018).**

10.12 Form of Option Agreement (2020 grant) under the Fluor Corporation 2017 Performance Incentive Plan(incorporatedbyreferencetoExhibit10.2totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonDecember10,2020).**

10.13 FormofValueDriverIncentiveAwardAgreementundertheFluorCorporation2017PerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.17totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonMay3,2018).**

10.14 FormofPerformanceAwardAgreement(2020grant)undertheFluorCorporation2017PerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.3totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonDecember10,2020).**

10.15 FormofStockGrowthIncentiveAwardAgreement(2020grant)undertheFluorCorporation2017PerformanceIncentive Plan (incorporated by reference to Exhibit 10.4 to the registrant's Quarterly Report on Form 10-Q(Commissionfilenumber1-16129)filedonDecember10,2020).**

10.16 Fluor Corporation 2020 Performance Incentive Plan (incorporated by reference to Exhibit 99.1 to theregistrant'sRegistrationStatementonFormS-8 (Commission filenumber333-251426) filedonDecember17,2020.**

10.17 FluorExecutiveDeferredCompensationPlan,asamendedandrestatedeffectiveApril21,2003(incorporatedbyreferencetoExhibit10.5totheregistrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonFebruary29,2008).**

10.18 Fluor 409A Executive Deferred Compensation Program, as amended and restated effective January 1, 2017(incorporatedbyreferencetoExhibit10.16totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonNovember2,2017).**

10.19 Executive Severance Plan (incorporated by reference to Exhibit 10.7 to the registrant's Annual Report onForm10-K(Commissionfilenumber1-16129)filedonFebruary22,2012).**

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Exhibit Description10.20 Retention Award, dated November 26, 2019, granted to Alan L. Boeckmann (incorporated by reference to

Exhibit 10.17 to the registrant's Annual Report on Form 10-K (Commission file number 1-16129) filed onSeptember25,2020).**

10.21 RetentionAward, datedNovember 14, 2019, granted to CarlosM.Hernandez (incorporated by reference toExhibit 10.18 to the registrant's Annual Report on Form 10-K (Commission file number 1-16129) filed onSeptember25,2020).**

10.22 RetirementandReleaseAgreement,effectiveSeptember10,2019,betweentheregistrantandDavidT.Seaton(incorporatedbyreferencetoExhibit10.1totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonOctober31,2019).**

10.23 RetirementandReleaseAgreement,effectiveOctober11,2019,between the registrantandBruceA.Stanski(incorporatedby reference to Exhibit 10.20 to the registrant'sAnnualReporton Form10-K (Commission filenumber1-16129)filedonSeptember24,2020).**

10.24 Retirement and Release Agreement, effective October 30, 2020, between the registrant and Carlos M.Hernandez.***

10.25 ConsultingAgreement,effectiveJuly1,2021,betweenFDEEConsulting,Inc.andCarlosM.Hernandez.***10.26 OfferLetter,datedOctober30,2020,betweentheregistrantandDavidE.Constable.***10.27 OptionAgreement,datedDecember23,2020,betweentheregistrantandDavidE.Constable.***10.28 RestrictedStockUnitAgreement,datedDecember23,2020,betweentheregistrantandDavidE.Constable.***10.29 SummaryofFluorCorporationNon-ManagementDirectorCompensation.*10.30 FormofRestrictedStockUnitAgreementgrantedtodirectorsundertheFluorCorporation2017Performance

IncentivePlan (incorporatedby reference toExhibit10.19 to the registrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonAugust3,2017).**

10.31 FormofRestrictedStockUnitAgreementgrantedtodirectors (2018grant)undertheFluorCorporation2017PerformanceIncentivePlan(incorporatedbyreferencetoExhibit10.25totheregistrant'sQuarterlyReportonForm10-Q(Commissionfilenumber1-16129)filedonAugust2,2018).**

10.32 FormofRestrictedStockUnitAgreementgrantedtodirectors (2020grant)undertheFluorCorporation2020PerformanceIncentivePlan.***

10.33 Fluor Corporation Deferred Directors' Fees Program, as amended and restated effective January 1, 2002(incorporated by reference to Exhibit 10.9 to the registrant's Annual Report on Form 10-K (Commission filenumber1-16129)filedonMarch31,2003).**

10.34 Fluor Corporation 409A Director Deferred Compensation Program, as amended and restated effective as ofNovember2,2016(incorporatedbyreferencetoExhibit10.22totheregistrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonFebruary17,2017).**

10.35 Directors' Life InsuranceSummary (incorporatedby reference toExhibit10.12 to the registrant'sRegistrationStatement on Form 10/A (Amendment No. 1) (Commission file number 1-16129) filed on November 22,2000).**

10.36 FormofIndemnificationAgreemententeredintobetweentheregistrantandeachofitsdirectorsandexecutiveofficers(incorporatedbyreferencetoExhibit10.21totheregistrant'sAnnualReportonForm10-K(Commissionfilenumber1-16129)filedonFebruary25,2009).

10.37 FormofChange inControlAgreemententered intobetween the registrantandeachof itsexecutiveofficers(incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K (Commission filenumber1-16129)filedonJune29,2010).**

10.38 $1,800,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as ofFebruary25,2016,amongFluorCorporation,FluorB.V.,theLendersthereunder,BNPParibas,asAdministrativeAgentandanIssuingLender,BankofAmerica,N.A.,asSyndicationAgent,andCitibank,N.A.andTheBankofTokyo—MitsubishiUFJ, Ltd., asCo-DocumentationAgents (incorporatedby reference toExhibit10.1 to theregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMarch2,2016).

10.39 AmendmentNo.1,datedasofAugust20,2018,to$1,800,000,000AmendedandRestatedRevolvingLoanandLetter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit 10.1 to the registrant’s Current Report on Form 8-K (Commission file number 1-16129) filed onAugust23,2018).

10.40 AmendmentNo. 2, dated as ofApril 2, 2020, to $1,800,000,000Amended andRestatedRevolving Loan andLetter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit10.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonApril3,2020).

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Exhibit Description10.41 Amendment No. 3, dated as of July 7, 2020, to $1,800,000,000 Amended and Restated Revolving Loan and

Letter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit10.1totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonJuly8,2020).

10.42 AmendmentNo.4,datedasofSeptember17,2020,to$1,800,000,000AmendedandRestatedRevolvingLoanandLetterofCreditFacilityAgreementdatedasofFebruary25,2016,amongFluorCorporation,FluorB.V.,thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit 10.1 to the registrant's Current Report on Form 8-K (Commission file number 1-16129) filed onSeptember21,2020).

10.43 $1,700,000,000 Amended and Restated Revolving Loan and Letter of Credit Facility Agreement dated as ofFebruary25,2016,amongFluorCorporation,FluorB.V.,theLendersthereunder,BNPParibas,asAdministrativeAgentandanIssuingLender,BankofAmerica,N.A.,asSyndicationAgent,andCitibank,N.A.andTheBankofTokyo—MitsubishiUFJ, Ltd., asCo-DocumentationAgents (incorporatedby reference toExhibit10.2 to theregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonMarch2,2016).

10.44 AmendmentNo.1,datedasofAugust20,2018,to$1,700,000,000AmendedandRestatedRevolvingLoanandLetter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit 10.2 to the registrant’s Current Report on Form 8-K (Commission file number 1-16129) filed onAugust23,2018).

10.45 AmendmentNo. 2, dated as ofApril 2, 2020, to $1,700,000,000Amended andRestatedRevolving Loan andLetter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit10.2totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonApril3,2020).

10.46 Amendment No. 3, dated as of July 7, 2020, to $1,700,000,000 Amended and Restated Revolving Loan andLetter of Credit Facility Agreement dated as of February 25, 2016, among Fluor Corporation, Fluor B.V., thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit10.2totheregistrant'sCurrentReportonForm8-K(Commissionfilenumber1-16129)filedonJuly8,2020).

10.47 AmendmentNo.4,datedasofSeptember17,2020,to$1,700,000,000AmendedandRestatedRevolvingLoanandLetterofCreditFacilityAgreementdatedasofFebruary25,2016,amongFluorCorporation,FluorB.V.,thefinancial institutions party thereto and BNP Paribas, as Administrative Agent (incorporated by reference toExhibit 10.2 to the registrant's Current Report on Form 8-K (Commission file number 1-16129) filed onSeptember21,2020).

10.48 $1,650,000SecondAmendedandRestatedRevolvingLoanandLetterofCreditFacilityAgreementdatedasofFebruary19,2021,amongFluorCorporation,theLendersthereunder,BNPParibas,asAdministrativeAgentandan Issuing Lender, Bank of America, N.A., as Syndication Agent, and Citibank, N.A. and Wells Fargo Bank,NationalAssociation,asCo-DocumentationAgents.*

21.1 Subsidiariesoftheregistrant.*

23.1 ConsentofIndependentRegisteredPublicAccountingFirm.*

31.1 CertificationofChiefExecutiveOfficerpursuanttoRule13a-14(a)orRule15d-14(a)oftheSecuritiesExchangeActof1934.*

31.2 CertificationofChiefFinancialOfficerpursuanttoRule13a-14(a)orRule15d-14(a)oftheSecuritiesExchangeActof1934.ofChiefFinancialOfficerpursuanttoRule13a-14(a)orRule15d-14(a)oftheSecuritiesExchangeActof1934.*

32.1 CertificationofChiefExecutiveOfficerpursuanttoRule13a-14(b)orRule15d-14(b)oftheSecuritiesExchangeActof1934and18U.S.C.Section1350.ofChiefExecutiveOfficerpursuanttoRule13a-14(b)orRule15d-14(b)oftheSecuritiesExchangeActof1934and18U.S.C.Section1350.*

32.2 CertificationofChiefFinancialOfficerpursuanttoRule13a-14(b)orRule15d-14(b)oftheSecuritiesExchangeActof1934and18U.S.C.Section1350.*

101.INS InlineXBRLInstanceDocument.*

101.SCH InlineXBRLTaxonomyExtensionSchemaDocument.*

101.CAL InlineXBRLTaxonomyExtensionCalculationLinkbaseDocument.*

101.LAB InlineXBRLTaxonomyExtensionLabelLinkbaseDocument.*

101.PRE InlineXBRLTaxonomyExtensionPresentationLinkbaseDocument.*

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Exhibit Description101.DEF InlineXBRLTaxonomyExtensionDefinitionLinkbaseDocument.*

104 ThecoverpagefromtheCompany's202010-KfortheyearendedDecember31,2020,formattedinInlineXBRL(includedintheExhibit101attachments).*

_______________________________________________________________________________

* Exhibitfiledwiththisreport.** Managementcontractorcompensatoryplanorarrangement.

AttachedasExhibit101tothisreportarethefollowingdocumentsformattedinXBRL(ExtensibleBusinessReportingLanguage):(i)theConsolidatedStatementofOperationsfortheyearsendedDecember31,2020,2019and2018,(ii)theConsolidatedBalanceSheetatDecember31,2020andDecember31,2019,(iii)theConsolidatedStatementofCashFlowsfortheyearsendedDecember31,2020,2019and2018and(iv)theConsolidatedStatementofEquityfortheyearsendedDecember31,2020,2019and2018.

Item16. Form10-KSummary

None.

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthis202010-Ktobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

FLUORCORPORATION

By: /s/JOSEPHL.BRENNAN

JosephL.Brennan,ChiefFinancialOfficer

February26,2021

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,this202010-Khasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated.

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Signature Title Date

PrincipalExecutiveOfficerandDirector:

/s/DAVIDE.CONSTABLE

DavidE.Constable ChiefExecutiveOfficer February26,2021

PrincipalFinancialOfficer:

/s/JOSEPHL.BRENNANJosephL.Brennan ChiefFinancialOfficer February26,2021

PrincipalAccountingOfficer:

/s/JOHNC.REGAN

JohnC.Regan ChiefAccountingOfficer February26,2021

OtherDirectors:

/s/ALANL.BOECKMANN

AlanL.Boeckmann ExecutiveChairman February26,2021

/s/ALANM.BENNETT

AlanM.Bennett Director February26,2021

/s/ROSEMARYT.BERKERY

RosemaryT.Berkery Director February26,2021

/s/H.PAULETTEBERHART

H.PaulettEberhart Director February26,2021

/s/PETERJ.FLUOR

PeterJ.Fluor Director February26,2021

/s/JAMEST.HACKETT

JamesT.Hackett Director February26,2021

/s/THOMASC.LEPPERT

ThomasC.Leppert Director February26,2021

/s/TERIP.MCCLURE

TeriP.McClure Director February26,2021

/s/ARMANDOJ.OLIVERA

ArmandoJ.Olivera Director February26,2021

/s/MATTHEWK.ROSE

MatthewK.Rose Director February26,2021

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FLUORCORPORATION

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

TABLEOFCONTENTS PAGE

ReportofIndependentRegisteredPublicAccountingFirm F-2ConsolidatedStatementofOperations F-5ConsolidatedStatementofComprehensiveIncome(Loss) F-6ConsolidatedBalanceSheet F-7ConsolidatedStatementofCashFlows F-8ConsolidatedStatementofChangesinEquity F-9NotestoConsolidatedFinancialStatements F-10

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Page 61: Form 10-K FLUOR CORPORATION

ReportofIndependentRegisteredPublicAccountingFirm

TotheShareholdersandtheBoardofDirectorsofFluorCorporation

OpinionontheFinancialStatements

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofFluorCorporation(theCompany)asofDecember31,2020and2019,therelatedconsolidatedstatementsofoperations,comprehensiveincome(loss),changesinequityandcashflowsforeachofthethreeyearsintheperiodendedDecember31,2020,andtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancialstatements“).Inouropinion,theconsolidatedfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyatDecember31,2020and2019,andtheresultsofitsoperationsanditscashflowsforeachofthethreeyearsintheperiodendedDecember31,2020,inconformitywithU.S.generallyacceptedaccountingprinciples.

Wehavealsoaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB),theCompany’sinternalcontroloverfinancialreportingasofDecember31,2020,basedoncriteriaestablishedinInternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)andourreportdatedFebruary26,2021expressedanunmodifiedopinionthereon.

BasisforOpinion

ThesefinancialstatementsaretheresponsibilityoftheCompany’smanagement.OurresponsibilityistoexpressanopinionontheCompany’sfinancialstatementsbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePCAOBandarerequiredtobeindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud.Ourauditsincludedperformingprocedurestoassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludeexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresinthefinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatourauditsprovideareasonablebasisforouropinion.

CriticalAuditMatters

Thecriticalauditmatterscommunicatedbelowaremattersarisingfromthecurrentperiodauditofthefinancialstatementsthatwerecommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat:(1)relatetoaccountsordisclosuresthatarematerialtothefinancialstatementsand(2)involvedourespeciallychallenging,subjectiveorcomplexjudgments.Thecommunicationofthecriticalauditmattersdoesnotalterinanywayouropinionontheconsolidatedfinancialstatements,takenasawhole,andwearenot,bycommunicatingthecriticalauditmattersbelow,providingseparateopinionsonthecriticalauditmattersorontheaccountsordisclosurestowhichtheyrelate.

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Page 62: Form 10-K FLUOR CORPORATION

EstimationoftheFairValueofGoodwillandIntangibles

Description of the Matter

AsmorefullydescribedinNote6totheconsolidatedfinancialstatements,certainoftheCompany’sbusinesseswereadverselyaffectedbytheeconomicimpactsofthesteepdeclineinoilpricesandtheoutbreakofCOVID-19.Theseeventscausedsignificantuncertainty,economicvolatilityanddisruptionthataffectedcertainoftheCompany’soperations,andtheCompany’simpairmenttestsofitsgoodwillandintangibleassets.Asaresultoftheimpairmenttests,theCompanyrecognizeda$195millionimpairmentlossrelatedtogoodwillandcertainintangiblecustomerrelationshipswithintheDiversifiedServicesreportingunit,whichistheamountbywhichthecarryingvalueexceededtheestimatedfairvalueoftheseassets.

Auditingmanagement’sassessmentofimpairmentinvolvedahighdegreeofsubjectivityduetothesignificantestimationuncertaintyrelatedtoassumptionsusedinestimatingthefairvalueofthereportingunitsofgoodwillandintangibleassets.Whenestimatingthefairvalueofthereportingunitsforpurposesoftestinggoodwillforimpairment,significantassumptionsusedinmanagement’sassessmentsincludedrevenuegrowthrates,expectedcashoutflows,terminalgrowthratesanddiscountrates.Whenestimatingthefairvalueofintangibleassetsforpurposesoftestingforimpairment,significantassumptionsusedinmanagement’sassessmentsincludedrevenuegrowthrates,expectedcashoutflows,royaltyrates,attritionrateanddiscountrates.Theaforementionedassumptionsareaffectedbyexpectationsaboutfuturemarketoreconomicconditionsthatmateriallyimpactthefairvalueofthereportingunitsaswellasintangibleassets.

How We Addressed the Matter in Our Audit

Weobtainedanunderstanding,evaluatedthedesign,andtestedtheoperatingeffectivenessofcontrolsovertheCompany'sprocessestoestimatethefairvalueoftheCompany’sreportingunitsofgoodwillandintangibleassets.Thisincludedcontrolsovermanagement'sreviewofthesignificantassumptionsunderlyingthefairvalueestimates.

OurtestingoftheCompany'sestimatesoffairvalueincluded,amongotherprocedures,evaluatingthesignificantassumptionsasdiscussedabove.Forexample,wecomparedthesignificantassumptionstocurrentindustryandeconomictrendsandhistoricalperformance,performedsensitivityanalysesofthesignificantassumptionstoevaluatethechangeinthefairvalueestimatesthatwouldresultfromchangesintheassumptionsandrecalculatedmanagement'sestimates.Wealsoinvolvedourvaluationspecialiststoassistinourevaluationofkeyassumptions,whichincludedterminalgrowthrates,royaltyrates,attritionrate,andthediscountratesusedinthefairvalueestimates.

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F-3

Page 63: Form 10-K FLUOR CORPORATION

Long-termrevenuerecognitiononengineeringandconstructioncontracts

Description of the Matter

AsdescribedinNote2totheconsolidatedfinancialstatements,theCompanyrecognizesengineeringandconstructioncontractrevenueovertime,asperformanceobligationsaresatisfied,duetothecontinuoustransferofcontroltothecustomer,usingthepercentage-of-completionmethodofaccounting,basedprimarilyoncontractcostincurredtodatecomparedtototalestimatedcontractcost.Revenuerecognitionunderthismethodisjudgmental,particularlyonlump-sumcontracts,asitrequirestheCompanytoprepareestimatesoftotalcontractrevenueandtotalcontractcosts,includingcoststocompletein-processcontracts.

AuditingtheCompany’sestimatesoftotalcontractrevenueandcostsusedtorecognizerevenueonengineeringandconstructioncontractsinvolvedsignificantauditorjudgment,asitrequiredtheevaluationofsubjectivefactorssuchasassumptionsrelatedtoprojectscheduleandcompletion,forecastedlabor,materialandsubcontractcostsandvariableconsiderationestimatesrelatedtoincentivefees,unpricedchangesordersandcontractualdisputesandclaims.Theseassumptionsinvolvedsignificantmanagementjudgment,whichaffectsthemeasurementofrevenuerecognizedbytheCompany.

How We Addressed the Matter in Our Audit

Weobtainedanunderstanding,evaluatedthedesign,andtestedtheoperatingeffectivenessofcontrolsovertheestimationprocessthataffectrevenuerecognizedonengineeringandconstructioncontracts.Thisincludedcontrolsovermanagement’smonitoringandreviewofprojectcostsandvariableconsiderationestimates,includingtheCompany’sprocedurestovalidatethecompletenessandaccuracyofdatausedtodeterminetheestimates.

ToevaluatetheCompany’scontractestimatesrelatedtorevenuerecognizedonengineeringandconstructioncontracts,weselectedasampleofprojectsand,amongotherprocedures,obtainedandinspectedthecontractagreements,amendmentsandchangeorderstotesttheexistenceofcustomerarrangementsandunderstandthescopeandpricingoftherelatedcontracts;performedsite-visitsforcertaincontractstoobserveprogress;observedselectedcontractreviewmeetings,inspectedpresentationspreparedbymanagementandinterviewedcontractteampersonneltoobtainanunderstandingofthestatusofoperationalperformanceandprogressontherelatedcontracts;evaluatedtheCompany’sestimatedrevenueandcoststocompletebyobtainingandanalyzingsupportingdocumentationofmanagement’sestimatesofvariableconsiderationandcontractcosts,includingexternallettersfromlegalcounselsupportingtheCompany’slegalbasisrelatedtocertaincontractualmattersincludingcontractualdisputes;andcomparedcontractprofitabilityestimatesinthecurrentyeartohistoricalestimatesandactualperformance.

/s/Ernst&YoungLLP

WehaveservedastheCompany‘sauditorsince1973.

Dallas,Texas

February26,2021

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F-4

Page 64: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFOPERATIONS

YearEndedDecember31,(inthousands,exceptpershareamounts) 2020 2019 2018Revenue $ 15,668,477 $ 17,317,284 $ 18,851,008Costofrevenue 15,283,226 17,533,864 18,281,628Other(income)andexpenses

Corporategeneralandadministrativeexpense 240,692 165,921 121,164Impairment,restructuringandotherexitcosts 305,590 532,600 —(Gain)lossonpensionsettlement (406) 137,898 21,900Interestexpense 72,120 74,104 77,144Interestincome (25,693) (55,608) (36,577)

Totalcostandexpenses 15,875,529 18,388,779 18,465,259

Earnings(loss)fromContOpsbeforetaxes (207,052) (1,071,495) 385,749

Incometaxexpense(benefit) 18,592 485,230 173,331

Netearnings(loss)fromContOps (225,644) (1,556,725) 212,418

Netearnings(loss)fromDiscOps (141,147) 3,603 20,435

Netearnings(loss) (366,791) (1,553,122) 232,853

Less:Netearnings(loss)attributabletoNCIfromContOps 68,255 (30,958) 59,385Netearnings(loss)attributabletoFluorCorporationfromContOps (293,899) (1,525,767) 153,033Netearnings(loss)attributabletoFluorCorporationfromDiscOps (141,147) 3,603 20,435

Netearnings(loss)attributabletoFluorCorporation $ (435,046) $ (1,522,164) $ 173,468

Basicearnings(loss)pershareattributabletoFluorCorporation

Netearnings(loss)fromContOps $ (2.09) $ (10.89) $ 1.09

Netearnings(loss)fromDiscOps (1.01) 0.02 0.15

Netearnings(loss) $ (3.10) $ (10.87) $ 1.24

Dilutedearnings(loss)pershareattributabletoFluorCorporationNetearnings(loss)fromContOps $ (2.09) $ (10.89) $ 1.08Netearnings(loss)fromDiscOps (1.01) 0.02 0.15

Netearnings(loss) $ (3.10) $ (10.87) $ 1.23

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

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F-5

Page 65: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME(LOSS)

YearEndedDecember31,

(inthousands) 2020 2019 2018

Netearnings(loss) (366,791) (1,553,122) 232,853OCI,netoftax:

Foreigncurrencytranslationadjustment (17,127) 65,500 (100,561)Ownershipshareofequitymethodinvestees'OCI (18,528) (11,784) 8,942Definedbenefitplanadjustments (19,392) 105,452 (52,591)Unrealizedgain(loss)onhedges 18,897 3,140 274Unrealizedgain(loss)onavailable-for-salesecurities — — 709

TotalOCI,netoftax (36,150) 162,308 (143,227)Comprehensiveincome(loss) (402,941) (1,390,814) 89,626

Less:Comprehensiveincome(loss)attributabletoNCI 69,138 (32,310) 57,145

Comprehensiveincome(loss)attributabletoFluorCorporation $ (472,079) $ (1,358,504) $ 32,481

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

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F-6

Page 66: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONCONSOLIDATEDBALANCESHEET

(inthousands,exceptshareandpershareamounts)December31,

2020December31,

2019

ASSETSCurrentassetsCashandcashequivalents($654,852and$392,772relatedtoVIEs) $ 2,198,781 $ 1,997,199Marketablesecurities($66relatedtoVIEsinbothperiods) 23,345 7,262Accountsandnotesreceivable,net($248,106and$329,548relatedtoVIEs) 1,181,590 1,217,464Contractassets($244,552and$294,116relatedtoVIEs) 967,827 1,238,173Othercurrentassets($33,884and$32,271relatedtoVIEs) 424,849 389,565Currentassetsheldforsale 237,617 517,100Totalcurrentassets 5,034,009 5,366,763

NoncurrentassetsProperty,plantandequipment($37,236and$29,492relatedtoVIEs) 561,084 594,826Goodwill 349,258 508,415Investments 532,065 600,814Deferredtaxes 77,915 62,688Deferredcompensationtrusts 350,427 341,235Otherassets($41,124and$45,425relatedtoVIEs) 405,054 491,917Totalnoncurrentassets 2,275,803 2,599,895

Totalassets $ 7,309,812 $ 7,966,658

LIABILITIESANDEQUITYCurrentliabilitiesAccountspayable($335,902and$501,525relatedtoVIEs) $ 1,232,236 $ 1,546,840Short-termborrowings 25,415 38,728Contractliabilities($262,812and$232,160relatedtoVIEs) 1,141,415 1,157,788Accruedsalaries,wagesandbenefits($28,381and$31,178relatedtoVIEs) 637,563 609,094Otheraccruedliabilities($44,244and$21,088relatedtoVIEs) 490,104 470,350Currentliabilitiesrelatedtoassetsheldforsale 45,304 82,322Totalcurrentliabilities 3,572,037 3,905,122

Long-termdebt 1,710,033 1,651,739Deferredtaxes 80,745 83,295Othernoncurrentliabilities($9,528and$11,366relatedtoVIEs) 683,770 742,410

Contingenciesandcommitments

EquityShareholders'equity

Preferredstock—authorized20,000,000shares($0.01parvalue),noneissued — —Commonstock—authorized375,000,000shares($0.01parvalue);issuedandoutstanding—140,715,205and140,174,400sharesin2020and2019,respectively 1,404 1,399Additionalpaid-incapital 195,940 165,314AOCI (416,906) (379,873)Retainedearnings 1,249,809 1,700,912Totalshareholders'equity 1,030,247 1,487,752NCI 232,980 96,340Totalequity 1,263,227 1,584,092

Totalliabilitiesandequity $ 7,309,812 $ 7,966,658

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

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F-7

Page 67: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS

YearEndedDecember31,

(inthousands) 2020 2019 2018

OPERATINGCASHFLOWNetearnings(loss) $ (366,791) $(1,553,122) $ 232,853Adjustmentstoreconcilenetearnings(loss)tooperatingcashflow:

Impairmentexpense-ContOps 297,604 383,017 —

Impairmentexpense-DiscOps 145,700 — —(Gain)lossonpensionsettlement (406) 137,898 21,900Write-offofcumulativetranslationloss — 83,665 —Depreciation 102,451 154,599 197,585Amortizationofintangibles 3,123 15,882 19,071(Earnings)lossfromequitymethodinvestments,netofdistributions (3,881) 9,348 980(Gain)lossonsalesofassets (510) 7,284 (147,074)Amortizationofstock-basedawards 21,882 36,075 43,029(Gain)lossondeferredcompensationtrust (32,792) (55,820) 18,010(Gain)lossondeferredcompensationobligation 34,039 54,490 (22,272)Deferredtaxes (20,285) 320,633 60,709

Netretirementplanaccrual(contributions) (20,770) (2,325) (38,372)Changesinassetsandliabilities 29,801 633,027 (227,732)Other (3,281) (5,633) 3,477Operatingcashflow 185,884 219,018 162,164

INVESTINGCASHFLOWPurchasesofmarketablesecurities (35,078) (31,165) (483,513)Proceedsfromsalesandmaturitiesofmarketablesecurities 19,648 238,539 541,104Capitalexpenditures (113,442) (180,842) (210,998)Proceedsfromsalesofproperty,plantandequipment 62,692 65,977 81,038

Proceedsfromsalesofotherassets 48,897 — 124,942Investmentsinpartnershipsandjointventures (29,219) (52,305) (73,145)Returnofcapitalfrompartnershipsandjointventures 529 24,065 22,284Proceedsfromcompanyownedlifeinsurance 4,574 16,414 1,040Other (163) (211) (1,369)Investingcashflow (41,562) 80,472 1,383

FINANCINGCASHFLOWRepurchaseofcommonstock — — (50,022)Dividendspaid (28,720) (118,073) (118,734)Proceedsfromissuanceof2028Notes — — 598,722Repaymentof2021Notes — — (503,285)Debtissuancecosts — — (5,061)Otherborrowings 3,881 9,093 3,235DistributionspaidtoNCI (23,184) (33,674) (63,523)CapitalcontributionsbyNCI 110,051 64,646 5,128Taxespaidonvestedrestrictedstock (1,313) (3,572) (5,686)Stockoptionsexercised — 1,466 7,258Other (12,269) 2,815 (8,523)Financingcashflow 48,446 (77,299) (140,491)Effectofexchangeratechangesoncash 8,814 10,262 (62,385)Increase(decrease)incashandcashequivalents 201,582 232,453 (39,329)Cashandcashequivalentsatbeginningofyear 1,997,199 1,764,746 1,804,075Cashandcashequivalentsatendofyear $ 2,198,781 $ 1,997,199 $ 1,764,746

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

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F-8

Page 68: Form 10-K FLUOR CORPORATION

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

(inthousands,exceptpershareamounts)

CommonStock AdditionalPaid-InCapital AOCI

RetainedEarnings

TotalShareholders'

Equity NCITotalEquityShares Amount

BALANCEASOFDECEMBER31,2017 139,918 $ 1,399 $ 88,222 $ (402,543) $ 3,566,194 $ 3,253,272 $ 150,089 $ 3,403,361

Netearnings — — — — 173,468 173,468 59,385 232,853

CumulativeadjustmentfortheadoptionofASC606 — — — — (326,639) (326,639) (963) (327,602)

OCI — — — (140,988) — (140,988) (2,239) (143,227)

Dividends($0.84pershare) — — 153 — (118,869) (118,716) — (118,716)

DistributionstoNCI — — — — — — (63,523) (63,523)

CapitalcontributionsbyNCI — — — — — — 5,128 5,128

OtherNCItransactions — — 5,329 — — 5,329 (1,749) 3,580

Stock-basedplanactivity 833 8 38,413 — — 38,421 — 38,421

Repurchaseofcommonstock (1,097) (11) (50,011) — — (50,022) — (50,022)

BALANCEASOFDECEMBER31,2018 139,654 $ 1,396 $ 82,106 $ (543,531) $ 3,294,154 $ 2,834,125 $ 146,128 $ 2,980,253

Netloss — — — — (1,522,164) (1,522,164) (30,958) (1,553,122)

CumulativeadjustmentfortheadoptionofASC842 — — — — 20,544 20,544 — 20,544

CumulativeadjustmentfortheadoptionofASC606forcertaininvestments — — — — 11,934 11,934 — 11,934

OCI — — — 163,658 — 163,658 (1,350) 162,308

Dividends($0.73pershare) — — 304 — (103,556) (103,252) — (103,252)

DistributionstoNCI — — — — — — (33,674) (33,674)

CapitalcontributionsbyNCI — — — — — — 64,646 64,646

OtherNCItransactions — — 48,997 — — 48,997 (48,452) 545

Stock-basedplanactivity 520 3 33,907 — — 33,910 — 33,910

BALANCEASOFDECEMBER31,2019 140,174 $ 1,399 $ 165,314 $ (379,873) $ 1,700,912 $ 1,487,752 $ 96,340 $ 1,584,092

Netearnings(loss) — — — — (435,046) (435,046) 68,255 (366,791)

CumulativeadjustmentfortheadoptionofASC326 — — — — (1,977) (1,977) — (1,977)

OCI — — — (37,033) — (37,033) 883 (36,150)

Dividends($0.10pershare) — — — — (14,120) (14,120) — (14,120)

DistributionstoNCI — — — — — — (23,184) (23,184)

CapitalcontributionsbyNCI — — — — — — 110,051 110,051

OtherNCItransactions — — 10,099 — — 10,099 (19,365) (9,266)

Stock-basedplanactivity 541 5 20,527 — 40 20,572 — 20,572

BALANCEASOFDECEMBER31,2020 140,715 $ 1,404 $ 195,940 $ (416,906) $ 1,249,809 $ 1,030,247 $ 232,980 $ 1,263,227

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

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F-9

Page 69: Form 10-K FLUOR CORPORATION

1. DescriptionofBusiness

FluorCorporation(“we”,“us”,“our”or“thecompany”)isaholdingcompanythatownsthestockofanumberofsubsidiaries,aswellasinterestsinjointventures.Actingthroughtheseentities,weareoneofthelargestprofessionalservicesfirmsprovidingengineering,procurement,construction,fabricationandmodularization,operations,maintenanceandassetintegrity,aswellasprojectmanagementservices,onaglobalbasis.Weprovideservicestoourclientsinadiversesetofindustriesworldwideincludingoilandgas,chemicalsandpetrochemicals,miningandmetals,infrastructure,lifesciences,advancedmanufacturingandadvancedtechnologies.WearealsoaserviceprovidertotheU.S.federalgovernmentandgovernmentsabroad;and,weperformoperations,maintenanceandassetintegrityactivitiesgloballyformajorindustrialclients.

WehadthefollowingsixreportablesegmentsasofDecember31,2020:

• Energy&Chemicals• Mining&Industrial• Infrastructure&Power• Government• DiversifiedServices• Other

TheEnergy&Chemicalssegmentfocusesonopportunitiesintheupstream,midstream,downstream,chemical,petrochemical,offshoreandonshoreoilandgasproduction,LNGandpipelinemarkets.Thissegmenthaslongservedabroadspectrumofindustriesofferingafullrangeofdesign,engineering,procurement,construction,fabricationandprojectmanagementservices.

TheMining&Industrialsegmentprovidesdesign,engineering,procurement,constructionandprojectmanagementservicestotheminingandmetals,lifesciences,advancedmanufacturingandadvancedtechnologiessectors.

TheInfrastructure&Powersegmentprovidesdesign,engineering,procurement,constructionandprojectmanagementservicestothetransportationandpowersectors.

TheGovernmentsegmentprovidesengineeringandconstructionservices,logisticsandlife-support,contingencyoperationssupport,management,missionoperations,environmentalremediationanddecommissioningtotheU.S.governmentandgovernmentsabroad.

TheDiversifiedServicessegmentprovidesawidearrayofassetmaintenance,assetintegrityandstaffingservicesaroundtheworld.MostoftheoperatingresultsofourAMECOequipmentbusinesspreviouslyincludedinDiversifiedServicesarenowincludedindiscontinuedoperations.CertainoperationsofAMECO,primarilyinMexico,areintheprocessofbeingliquidatedanddidnotmeetthequalificationsofdiscontinuedoperations.TheseretainedoperationswillremainintheDiversifiedServicessegmentuntiltheirliquidation.

OtherincludestheoperationsofNuScale,aswellastwolump-sumprojectsincludingaplantforwhichweserveasasubcontractortoacommercialclient(the"Radford"project)andaweaponsstorageandmaintenancefacility(the"Warren"project).TheRadfordprojectissubstantiallycompletewithsystemsturnovertotheclientexpectedinthefirstquarterof2021.

Inthefirstquarterof2020,wedecidedtoretainourgovernmentbusiness,whichhadpreviouslybeenincludedinDiscOps.Asaresult,thegovernmentbusinessisnolongerreportedasadiscontinuedoperationforanyperiodpresented.OurplantoselltheAMECOequipmentbusinessremainsunchangedanditremainsreportedasadiscontinuedoperation.WeexpecttocompletethesaleoftheAMECOequipmentbusinesswithinthefirsthalfof2021.TheassetsandliabilitiesoftheAMECObusinessareclassifiedasheldforsaleforallperiodspresented.

Inthefirstquarterof2021,weannouncedaplantosellStork,whichweexpectwillbereportedasadiscontinuedoperationbeginningwiththefirstquarterof2021.

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FLUORCORPORATIONNOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

F-10

Page 70: Form 10-K FLUOR CORPORATION

2. SignificantAccountingPolicies

PrinciplesofConsolidation

ThefinancialstatementsincludetheaccountsofFluorCorporationanditssubsidiaries.Allsignificantintercompanytransactionsofconsolidatedsubsidiariesareeliminated.Certainamountsdisclosedin2019and2018havebeenreclassifiedtoconformtothe2020presentation,whichincludespresentingtheoperationsofthegovernmentbusinessinContOps.ManagementhasevaluatedallmaterialeventsoccurringsubsequenttoDecember31,2020throughthefilingdateofthe202010-K.

Wefrequentlyformjointventuresorpartnershipswithothersprimarilyfortheexecutionofsinglecontractsorprojects.IfajointventureorpartnershipisaVIEandwearetheprimarybeneficiary,thejointventureorpartnershipisconsolidatedandourpartners'interestsarerecognizedasNCI.Asiscustomaryinourindustry,forotherconstructionpartnershipsandjointventures,wegenerallyrecognizeourproportionateshareofrevenue,costandprofitandusetheone-lineequitymethodfortheinvestment.Inotherinstances,thecostandequitymethodsofaccountingareused,dependingonourrespectiveownershipinterestandamountofinfluenceontheentity,aswellasotherfactors.Attimes,wealsoexecuteprojectsthroughcollaborativearrangementsforwhichwerecognizeourrelativeshareofrevenueandcost.

UseofEstimates

ThepreparationoffinancialstatementsinaccordancewithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffectreportedamounts.Theseestimatesarebasedoninformationavailablethroughthedateoftheissuanceofthefinancialstatements.Therefore,actualresultscoulddifferfromthoseestimates.

ForeignCurrencyTranslation

OurreportingcurrencyistheU.S.dollar.Forourinternationalsubsidiaries,thefunctionalcurrencyistypicallythecurrencyoftheprimaryeconomicenvironmentinwhicheachsubsidiaryoperates.TranslationgainsandlossesarerecordedinOCI.Gainsandlossesfromremeasuringforeigncurrencytransactionsintothefunctionalcurrencyareincludedinearnings.

RevenueRecognition

Engineeringandconstructioncontracts.Werecognizeengineeringandconstructioncontractrevenueovertimeasweprovideservicestosatisfyourperformanceobligations.Wegenerallyusethecost-to-costpercentage-of-completionmeasureofprogressasitbestdepictshowcontroltransferstoourclients.Thecost-to-costapproachmeasuresprogresstowardscompletionbasedontheratioofcontractcostincurredtodatecomparedtototalestimatedcontractcost.Engineeringandconstructioncontractsaregenerallyaccountedforasasingleunitofaccount(asingleperformanceobligation)andarenotsegmentedbetweentypesofservicesonasingleproject.Costofrevenueincludesanallocationofdepreciationandamortization.Whereapplicable,customer-furnishedmaterials,laborandequipmentandsubcontractormaterials,laborandequipment,areincludedinrevenueandcostofrevenuewhenmanagementbelievesthatweareactingasaprincipalratherthanasanagent(i.e.,weintegratethematerials,laborandequipmentintothedeliverablespromisedtothecustomer).Customer-furnishedmaterialsareonlyincludedinrevenueandcostwhenthecontractincludesconstructionactivityandwehavevisibilityintotheamountthecustomerispayingforthematerialsorthereisareasonablebasisforestimatingtheamount.Werecognizerevenue,butnotprofit,oncertainuninstalledmaterialsthatarenotspecificallyproduced,fabricated,orconstructedforaproject.Revenueontheseuninstalledmaterialsisrecognizedwhenthecostisincurredandcontrolistransferred.Changestototalestimatedcontractcostorlosses,ifany,arerecognizedintheperiodinwhichtheyaredeterminedasassessedatthecontractlevel.Pre-contractcostsareexpensedasincurredunlesstheyareexpectedtoberecoveredfromtheclient.Projectmobilizationcostsaregenerallychargedtoprojectcostsasincurredwhentheyareanintegratedpartoftheperformanceobligationbeingtransferredtotheclient.Customerpaymentsonengineeringandconstructioncontractsaretypicallyduewithin30to45daysofbilling,dependingonthecontract.

Servicecontracts.Forthemajorityofouroperationsandmaintenancecontracts,revenueisrecognizedwhenservicesareperformedandcontractuallybillable.Forallotherservicecontracts,werecognizerevenueovertimeusingthecost-to-costpercentage-of-completionmethod.Servicecontractsthatincludemultipleperformanceobligationsaresegmentedbetweentypesofservices.Forcontractswithmultipleperformanceobligations,weallocatethetransactionpricetoeachperformanceobligationusinganestimateofthestand-alonesellingpriceofeachdistinctserviceinthecontract.Revenuerecognizedonservicecontractsthathasnotbeenbilledtoclientsisrecordedascontractassets.Amountsbilledtoclientsinexcessofrevenuerecognizedonservicecontractstodatearerecordedascontractliabilities.Customerpaymentsonservicecontractsaretypicallyduewithin30to90daysofbilling,dependingonthecontract.

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FLUORCORPORATION

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

F-11

Page 71: Form 10-K FLUOR CORPORATION

Variableconsideration.Thenatureofourcontractsgivesrisetoseveraltypesofvariableconsideration,includingclaims,unpricedchangeorders,awardandincentivefees,liquidateddamagesandpenalties.Weconsidervariableconsiderationinthedevelopmentofourprojectforecastssothatourforecastedrevenuereflectstheamountofconsiderationweexpecttobeprobableofrecoveringwithoutasignificantreversal.Weestimatetheamountofrevenuetoberecognizedonvariableconsiderationusingtheexpectedvaluemethod(i.e.,thesumofprobability-weightedamounts)orthemostlikelyamountmethod,whicheveroffersbetterprediction.

Warranties.Wegenerallyprovidelimiteddurationwarrantiesforworkperformedunderourcontracts.Historically,warrantyclaimshavenotresultedinmaterialcostsincurred,andanyestimatedcostsforwarrantiesareincludedintheindividualprojectcostestimatesforpurposesofaccountingforlong-termcontracts.

PracticalExpedients.Ifwehavearighttoconsiderationfromacustomerinanamountthatcorrespondsdirectlywiththevalueofourperformancecompletedtodate(aservicecontractinwhichwebillafixedamountforeachhourofserviceprovided),werecognizerevenueintheamounttowhichwehavearighttoinvoiceforservicesperformed.Wedonotadjustthecontractpricefortheeffectsofasignificantfinancingcomponentwhere,atcontractinception,theperiodbetweenserviceprovisionandcustomerpaymentwillbeoneyearorless.Weexcludefromthemeasurementofthetransactionpricealltaxesassessedbygovernmentalauthoritiesthatarecollectedbyusfromourcustomers(usetaxes,valueaddedtaxes,someexcisetaxes).

RUPO.RUPOrepresentsameasureofthevalueofworktobeperformedoncontractsawardedandinprogress.AlthoughRUPOreflectsbusinessthatisconsideredtobefirm,cancellations,deferralsorscopeadjustmentsmayoccur.RUPOisadjustedtoreflectanyknownprojectcancellations,revisionstoprojectscopeandcost,foreigncurrencyexchangefluctuationsandprojectdeferrals,asappropriate.RUPOdiffersfrombacklogdiscussedelsewhereinthe202010-K.Backlogincludestheamountofrevenueweexpecttorecognizeunderongoingoperationsandmaintenancecontractsfortheremainderofthecurrentyearrenewalperiodplusuptothreeadditionalyearsifrenewalisconsideredtobeprobable,whileRUPOincludesonlytheamountofrevenueweexpecttorecognizeunderongoingoperationsandmaintenancecontractswithdefinitetermsandsubstantiveterminationprovisions.

ProjectEstimates

Duetothenatureofourindustry,thereissignificantcomplexityinourestimationoftotalexpectedrevenueandcost,forwhichwemustmakesignificantjudgments.Ourcontractswithourcustomersmaycontainawardfees,incentivefees,liquidateddamagesorotherprovisionsthatcaneitherincreaseordecreasethecontractpricetoarriveatestimatedrevenue.Thesevariableamountsgenerallyareearneduponachievementofcertainperformancemetrics,programmilestonesorcosttargetsandcanbebaseduponcustomerdiscretion.Weestimatevariableconsiderationatthemostlikelyamounttowhichweexpecttobeentitled.Weincludeestimatedamountsinthetransactionpricetotheextentitisprobablewewillrealizethatamount.Ourestimatesofvariableconsiderationandourdeterminationofitsinclusioninprojectrevenueforaccountingpurposesarebasedonanassessmentofouranticipatedperformanceandotherinformationthatmaybeavailabletous.

Ataprojectlevel,wehavespecificpracticesandprocedurestoreviewourestimateoftotalrevenueandcost.Eachprojectteamreviewstheprogressandexecutionofourperformanceobligations,whichimpacttheproject’saccountingoutcome.Aspartofthisprocess,theprojectteamreviewsinformationsuchasanyoutstandingkeycontractmatters,progresstowardscompletionandtherelatedprogramscheduleandidentifiedrisksandopportunities.Theaccuracyofourrevenueandprofitrecognitioninagivenperioddependsontheaccuracyofourprojectestimates,whichcanchangefromperiodtoperiodforfactorssuchas:

• Complexityinoriginaldesign;• Extentofchangesfromoriginaldesign;• Differentsiteconditionsthanassumedinourbid;• Theproductivity,availabilityandskillleveloflabor;• Weatherconditionswhenexecutingaproject;• Thetechnicalmaturityofthetechnologiesinvolved;• Lengthoftimetocompletetheproject;• Availabilityandcostofequipmentandmaterials;• Subcontractorandjointventurepartnerperformance;• Expectedcostsofwarranties;and

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FLUORCORPORATION

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

F-12

Page 72: Form 10-K FLUOR CORPORATION

• Ourabilitytorecoverforadditionalcontractcosts.

Werecognizechangesincontractestimatesonacumulativecatch-upbasisintheperiodinwhichthechangesareidentified.Suchchangesincontractestimatescanresultintherecognitionofrevenueinacurrentperiodforperformanceobligationswhichweresatisfiedorpartiallysatisfiedinpriorperiods.Changesincontractestimatesmayalsoresultinthereversalofpreviouslyrecognizedrevenueifthecurrentestimateadverselydiffersfromthepreviousestimate.Ifweestimatethataprojectwillhavecostsinexcessofrevenue,werecognizethetotallossintheperioditisidentified.

ContractAssetsandLiabilities

Contractassetsrepresentrevenuerecognizedinexcessofamountsbilledandincludeunbilledreceivables(typicallyforcostreimbursablecontracts)andcontractworkinprogress(typicallyforfixed-pricecontracts).Unbilledreceivables,whichrepresentanunconditionalrighttopaymentsubjectonlytothepassageoftime,arerecognizedasaccountsreceivablewhentheyarebilledunderthetermsofthecontract.Advancesthatarepaymentsonaccountofcontractassetsaredeductedfromcontractassets.WeanticipatethatsubstantiallyallincurredcostassociatedwithcontractassetsasofDecember31,2020willbebilledandcollectedwithinoneyear.Contractliabilitiesrepresentamountsbilledtoclientsinexcessofrevenuerecognizedtodate.

SegmentReporting

Managementevaluatessegmentperformancebasedonsegmentprofit.Weincurcostandexpensesandholdcertainassetsatthecorporatelevelwhichrelatetoourbusinessasawhole.Certainoftheseamountshavebeenchargedtoourbusinesssegmentsbyvariousmethods,largelyonthebasisofusage.Totalassetsnotallocatedtosegmentsandheldin"Corporateandother"primarilyincludecash,marketablesecurities,income-taxrelatedassets,pensionassets,deferredcompensationtrustassetsandcorporateproperty,plantandequipment.

Segmentprofitisanearningsmeasurethatweutilizetoevaluateandmanageourbusinessperformance.SegmentprofitiscalculatedasrevenuelesscostofrevenueandearningsattributabletoNCI.

VariableInterestEntities

WeassessourpartnershipsandjointventuresatinceptiontodetermineifanymeetthequalificationsofaVIE.WeconsiderapartnershiporjointventureaVIEifithasanyofthefollowingcharacteristics:

(a)thetotalequityinvestmentisnotsufficienttopermittheentitytofinanceitsactivitieswithoutadditionalsubordinatedfinancialsupport,

(b)characteristicsofacontrollingfinancialinterestaremissing(eithertheabilitytomakedecisionsthroughvotingorotherrights,theobligationtoabsorbtheexpectedlossesoftheentityortherighttoreceivetheexpectedresidualreturnsoftheentity),or

(c)thevotingrightsoftheequityholdersarenotproportionaltotheirobligationstoabsorbtheexpectedlossesoftheentityand/ortheirrightstoreceivetheexpectedresidualreturnsoftheentity,andsubstantiallyalloftheentity'sactivitieseitherinvolveorareconductedonbehalfofaninvestorthathasdisproportionatelyfewvotingrights.

Upontheoccurrenceofcertainevents,wereassessourinitialdeterminationofwhetherthepartnershiporjointventureisaVIE.ThemajorityofourpartnershipsandjointventuresqualifyasVIEsbecausethetotalequityinvestmentistypicallynominalandnotsufficienttopermittheentitytofinanceitsactivitieswithoutadditionalsubordinatedfinancialsupport.

WealsoperformaqualitativeassessmentofeachidentifiedVIEtodetermineifweareitsprimarybeneficiary.WeconcludethatwearetheprimarybeneficiaryandconsolidatetheVIEifwehaveboth:

(a)thepowertodirecttheeconomicallysignificantactivitiesoftheentityand(b)theobligationtoabsorblossesof,ortherighttoreceivebenefitsfrom,theentitythatcouldpotentiallybesignificant

totheVIE.

Weconsiderthecontractualagreementsthatdefinetheownershipstructure,distributionofprofitsandlosses,risks,responsibilities,indebtedness,votingrightsandboardrepresentationoftherespectivepartiesindeterminingifwearetheprimarybeneficiary.Wealsoconsiderallpartiesthathavedirectorimplicitvariableinterestswhendeterminingwhetherwe

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aretheprimarybeneficiary.Management'sassessmentofwhetherwearetheprimarybeneficiaryofaVIEiscontinuouslyperformed.

CashandCashEquivalents

Cashandcashequivalentsincludesecuritieswithmaturitiesofthreemonthsorlessatthedateofpurchase.

MarketableSecurities

Marketablesecuritiesconsistoftimedepositsplacedwithinvestmentgradebankswithoriginalmaturitiesgreaterthanthreemonths,whicharetypicallyheld-to-maturitybecausewehavetheintentandabilitytoholdthemuntilmaturity.Held-to-maturitysecuritiesarecarriedatamortizedcost.Ourinvestmentsindebtsecuritiesareclassifiedasavailable-for-salebecausetheymaybesoldpriortotheirmaturitydate.Available-for-salesecuritiesarecarriedatfairvalue.Thecostofsecuritiessoldisdeterminedbyusingthespecificidentificationmethod.Marketablesecuritiesareassessedatleastannuallyforother-than-temporaryimpairment.

ResearchandDevelopment

WehaveacontrollinginterestinNuScale,aresearchanddevelopmentoperationassociatedwiththelicensingandcommercializationofsmallmodularnuclearreactortechnology.SinceMay2014,NuScalehasbeenreceivingreimbursementfromtheDOEforcertainqualifiedexpendituresundercost-sharingawardagreementsthatrequireNuScaletousetheDOEfundstocoverfirst-of-a-kindengineeringcostsassociatedwithsmallmodularreactordesigndevelopmentandcertification.CostsincurredbyNuScaleareexpensedasincurred,netofqualifyingDOEreimbursements,andreportedin"Costofrevenue".TheU.S.NuclearRegulatoryCommissionapprovedNuScale'sdesigncertificationapplicationinAugust2020.AsidefromNuScale,wegenerallydonotengageinsignificantresearchanddevelopmentactivities.

Property,PlantandEquipment

Property,plantandequipmentisrecordedatcost.Leaseholdimprovementsareamortizedovertheshorteroftheireconomiclivesortheleaseterms.Depreciationiscalculatedusingthestraight-linemethodoverthefollowingrangesofestimatedusefulservicelives,inyears:

EstimatedUsefulServiceLives

Buildings 20–40

Buildingandleaseholdimprovements 6–20

Machineryandequipment 2–10

Furnitureandfixtures 2–10

GoodwillandIntangibleAssets

Goodwillandintangibleassetswithindefinitelivesarenotamortizedbutaresubjecttoatleastannualimpairmenttestsduringthefourthquarter.Forimpairmenttesting,goodwillisallocatedtotheapplicablereportingunitsbasedonthecurrentreportingstructure.Wecomparethefairvalueofeachreportingunitwithitscarryingamount.Ifthecarryingamountofareportingunitexceedsitsfairvalue,animpairmentlossisrecognized.Intangibleassetswithindefinitelivesareimpairediftheircarryingvalueexceedstheirfairvalue.In-processresearchanddevelopmentassociatedwithourinvestmentinNuScaleisconsideredindefiniteliveduntiltherelatedtechnologyisavailableforcommercialuse.

Interimimpairmenttestingofgoodwillandintangibleassetsisperformedifindicatorsofpotentialimpairmentexist.Suchindicatorsmayincludetheresultsofoperationsofcertainbusinessesandgeographiesandtheperformanceofthecompanystockprice.

Intangibleassetswithfinitelivesareamortizedonastraight-linebasisovertheirusefullives.

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IncomeTaxes

Deferredtaxassetsandliabilitiesarerecognizedfortheexpectedfuturetaxconsequencesofeventsthathavebeenrecognizedinourfinancialstatementsortaxfilings.Weevaluatetherealizabilityofourdeferredtaxassetsandrecordavaluationallowancetoreducedeferredtaxassetstoamountsthataremorelikelythannottoberealized.Thefactorsusedtoassessthelikelihoodofrealizationareourforecastoffuturetaxableincomeandavailabletaxplanningstrategiesthatcouldbeimplementedtorealizesuchassets.Failuretoachieveforecastedtaxableincomecouldaffecttheultimaterealizationofdeferredtaxassetsandcouldadverselyimpactourfutureeffectivetaxrate.

Incometaxpositionsarerecognizedwhentheymeetamore-likely-than-notrecognitionthreshold.Previouslyrecognizedtaxpositionsthatnolongermeetthemore-likely-than-notthresholdarederecognizeduponsuchdetermination.Werecognizepotentialinterestandpenaltiesrelatedtounrecognizedtaxpositionsasacomponentofincometaxexpense.

Judgmentisrequiredindeterminingtheprovisionforincometaxesasweconsiderourworldwidetaxableearningsandtheimpactofthecontinuingauditprocessconductedbyvarioustaxauthorities.Thefinaloutcomeofanyauditscoulddiffermateriallyfromamountsrecognizedbythecompany.

WeaccountfortheGILTIeffectsintheperiodthatissubjecttosuchtax.

DerivativesandHedging

Weattempttolimitforeigncurrencyexposureinmostofourcontractsbydenominatingcontractrevenueinthecurrenciesinwhichcostisincurred.Certainfinancialexposure,whichincludescurrencyandcommoditypriceriskassociatedwithengineeringandconstructioncontracts,currencyriskassociatedwithmonetaryassetsandliabilitiesdenominatedinnonfunctionalcurrenciesandriskassociatedwithinterestratevolatility,maysubjectustoearningsvolatility.Wemayimplementahedgingstrategyutilizingderivativesinstrumentsorhedginginstrumentstomitigatesuchrisk.Ourhedginginstrumentsaredesignatedaseitherfairvalueorcashflowhedges.Weformallydocumentourhedgerelationshipsatinception,includingidentificationofthehedginginstrumentsandthehedgeditems,ourriskmanagementobjectivesandstrategiesforundertakingthehedgetransaction,andtheinitialquantitativeassessmentofthehedginginstrument'seffectivenessinoffsettingchangesinthefairvalueofthehedgeditems.Wesubsequentlyassesshedgeeffectivenessqualitatively,unlessthehedgerelationshipisnolongerhighlyeffective.Allhedginginstrumentsarerecordedatfairvalue.Forfairvaluehedges,thechangeinfairvalueisoffsetagainstthechangeinthefairvalueoftheunderlyingassetorliabilitythroughearnings.Forcashflowhedges,thechangeinfairvalueisrecordedasacomponentofAOCIandisreclassifiedintoearningswhenthehedgeditemsettles.Forderivativesthatarenotdesignatedordonotqualifyashedginginstruments,thechangeinthefairvalueofthederivativeisoffsetagainstthechangeinthefairvalueoftheunderlyingassetorliabilitythroughearnings.Incertainlimitedcircumstances,foreigncurrencypaymentprovisionscouldbedeemedembeddedderivatives.Ifanembeddedforeigncurrencyderivativeisidentified,thederivativeisbifurcatedfromthehostcontractandthechangeinfairvalueisrecognizedthroughearnings.Wemaintainmasternettingarrangementswithcertaincounterpartiestofacilitatethesettlementofderivativeinstruments;however,wereportthefairvalueofderivativesonagrossbasis.

ConcentrationsofCreditRisk

Accountsreceivableandallcontractworkinprogressarefromclientsinvariousindustriesandlocationsthroughouttheworld.Mostcontractsrequirepaymentsastheprojectsprogressor,incertaincases,advancepayments.Wegenerallydonotrequirecollateral,butinmostcasescanplaceliensagainsttheprojectassetsorterminatethecontract,ifamaterialdefaultoccurs.Weevaluatethecounterpartycreditriskaspartofourprojectriskreviewprocessandindeterminingtheappropriatelevelofreserves.Wemaintainreservesforpotentialcreditlossesandgenerallysuchlosseshavebeenminimalandwithinmanagement'sestimates.

Cashandmarketablesecuritiesaredepositedwithmajorbanksthroughouttheworld.Suchdepositsareplacedwithhighqualityinstitutionsandtheamountsinvestedinanysingleinstitutionarelimitedtotheextentpossibleinordertominimizeconcentrationofcounterpartycreditrisk.

Ourcounterpartiesforderivativesarelargefinancialinstitutionsselectedbasedonprofitability,strengthofbalancesheet,creditratingsandcapacityfortimelypaymentoffinancialcommitments.Therearenosignificantconcentrationsofcreditriskwithanyindividualcounterpartyrelatedtoourderivativecontracts.

Wemonitorthecreditqualityofourcounterpartiesandhavenotincurredanysignificantcreditrisklossesrelatedtoourdepositsorderivativecontracts.

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Stock-BasedPlans

Ourstockplansprovideforgrantsofnonqualifiedorincentivestockoptions,RSUs,restrictedstockandperformance-basedawardunits,includingVDIunits.AllgrantsofstockoptionsandRSUsaswellasperformance-basedunitsawardedtoSection16officersin2020,2019and2018canonlybesettledincompanystockandareaccountedforasequityawards.

Allexpenseunderstock-basedawardsisrecognizedbasedonthefairvaluesoftheawards.Stockoptionawardshavegrantexercisepricesequaltothegrantdatemarketpriceofthecompany'sstock.ThefairvalueofgrantsofRSUsandrestrictedstockisdeterminedusingtheclosingpriceofourcommonstockonthedateofgrantbutmaybediscountedforanypost-vestholdingperiods.Thegrantdatefairvalueofperformance-basedawardunitsisdeterminedbyadjustingtheclosingpriceofthecompany'scommonstockonthedateofgrantforanypost-vestholdingperioddiscountsandfortheeffectofmarketconditions,whenapplicable.Stock-basedcompensationexpenseisgenerallyrecognizedovertherequiredserviceperiod,oroverashorterperiodwhenemployeeretirementeligibilityisafactor.

WealsograntSGIawardsandperformance-basedawardstonon-Section16executiveswhicharesettledincash.Theseawardsareclassifiedasliabilitiesandremeasuredatfairvaluethroughexpenseattheendofeachreportingperiodusingourclosingstockpriceuntiltheawardsaresettled.Awardsthatmaybesettledincashorcompanystockattheelectionoftherecipientarealsoclassifiedasliabilityawards.

Leases

Werecognizeright-of-useassetsandleaseliabilitiesforleaseswithtermsgreaterthan12monthsorleasesthatcontainapurchaseoptionthatisreasonablycertaintobeexercised.Leasesareclassifiedaseitherfinanceoroperatingleases.Thisclassificationdictateswhetherleaseexpenseisrecognizedbasedonaneffectiveinterestmethodoronastraight-linebasisoverthetermofthelease.

Ourright-ofuseassetsandleaseliabilitiesprimarilyrelatetoofficefacilities,equipmentusedinconnectionwithlong-termconstructioncontractsandotherpersonalproperty.Certainofourfacilityandequipmentleasesincludeoneormoreoptionstorenew,withrenewaltermsthatcanextendtheleasetermupto10years.Theexerciseofleaserenewaloptionsisatourdiscretion.Renewalperiodsareincludedintheexpectedleasetermiftheyarereasonablycertainofbeingexercisedbyus.Certainleasesalsoincludeoptionstopurchasetheleasedproperty.Noneofourleaseagreementscontainmaterialresidualvalueguaranteesormaterialrestrictionsorcovenants.

Long-termleases(leaseswithtermsgreaterthan12months)arerecordedasliabilitiesatthepresentvalueoftheminimumleasepaymentsnotyetpaid.Weuseourincrementalborrowingratetodeterminethepresentvalueoftheleasewhentherateimplicitintheleaseisnotreadilydeterminable.Certainleasecontractscontainnonleasecomponentssuchasmaintenance,utilities,fuelandoperatorservices.Werecognizeboththeleasecomponentandnonleasecomponentsasasingleleasecomponentforallofitsright-of-useassets.Fromtimetotime,certainserviceorpurchasecontractsmaycontainanembeddedlease.

Short-termleases(leaseswithaninitialtermof12monthsorlessorleasesthatarecancelablebythelesseeandlessorwithoutsignificantpenalties)arenotcapitalizedbutareexpensedonastraight-linebasisovertheleaseterm.Themajorityofourshort-termleasesrelatetoequipmentusedonconstructionprojects.Theseleasesareenteredintoatperiodicrentalratesforanunspecifieddurationandtypicallyhaveaterminationforconvenienceprovision.

3. RecentAccountingPronouncements

AccountingPronouncementsImplementedDuring2020

OnJanuary1,2020,weadoptedASCTopic326,“FinancialInstruments-CreditLosses,”whichreplacestheincurredlossimpairmentmethodologywithamethodologythatreflectsexpectedcreditlossesandrequiresconsiderationofabroaderrangeofinformationtoestimatecreditlosses.Thenewguidancerequiresfinancialassetsmeasuredatamortizedcosttobepresentedatthenetamountexpectedtobecollected.WeadoptedASC326usingthemodifiedretrospectivemethod,andaccordingly,thenewguidancewasappliedtofinancialassetsmeasuredatamortizedcost(primarilyaccountsreceivableandcontractassets)thatexistedasofJanuary1,2020(thedateofinitialapplication).Asaresult,werecordedadditionalreservesforcreditlossesof$2millionandacumulativeeffectadjustmenttodecreaseretainedearningsby$2millionasofJanuary1,2020.TheadoptionofASC326didnothaveamaterialimpactonourresultsofoperationsoranyimpactonourcashflows.Weutilizeacombinationofmethodsforestimatingexpectedcreditlossesincludinglossrates,agingschedulesand

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probability-of-default.Inevaluatingourhistoricallossrates,accountsreceivableandcontractassetsarepooledintothefollowingcategoriesbasedonsimilarriskcharacteristics:(1)EPCmanagement;(2)government;(3)operationsandmaintenance;and(4)equipmentleasing.Historicallossexperienceisadjustedforcurrentconditionsandreasonableandsupportableforecasts,whenapplicable.Significantlyagedreceivablesareevaluatedindividuallybycreditrating.Ourreserveforcreditlossesamountedto$39millionand$35millionasofDecember31,2020and2019.

Inthefirstquarterof2020,weadoptedASU2019-12,“SimplifyingtheAccountingforIncomeTaxes,”whicheliminatescertainexceptionsrelatedtotheapproachforintraperiodtaxallocation,themethodologyforcalculatingincometaxesinaninterimperiodandtherecognitionofdeferredtaxliabilitiesforoutsidebasisdifferences.Theadoptiondidnothaveamaterialimpactonourfinancialstatements.

Inthefirstquarterof2020,weadoptedASU2018-18,“ClarifyingtheInteractionbetweenTopic808andTopic606,”whichclarifiesthatcertaintransactionsbetweenparticipantsinacollaborativearrangementshouldbeaccountedforunderASC606whenthecounterpartyisacustomer.Theadoptiondidnothaveanyimpactonourfinancialstatements.

Inthefirstquarterof2020,weadoptedASU2018-17,“TargetedImprovementstoRelatedPartyGuidanceforVariableInterestEntities,”whichamendstheguidancefordeterminingwhetheradecision-makingfeeisavariableinterest.Theadoptiondidnothaveanyimpactonourfinancialstatements.

Inthefirstquarterof2020,weadoptedASU2018-15,“Customer’sAccountingforImplementationCostsIncurredinaCloudComputingArrangementThatIsaServiceContract,”whichrequirescustomersinahostingarrangementthatisaservicecontracttocapitalizecertainimplementationcostsasifthearrangementwasaninternal-usesoftwareproject.Theadoptiondidnothaveanyimpactonourfinancialstatements.

Inthefirstquarterof2020,weadoptedASU2018-13,“DisclosureFramework-ChangestotheDisclosureRequirementsforFairValueMeasurement,”whichamendscertaindisclosurerequirementsforfairvaluemeasurements.Forexample,publiccompanieswillnowberequiredtodisclosetherangeandweightedaverageusedtodevelopsignificantunobservableinputsforLevel3fairvaluemeasurements.Theadoptiondidnothaveanyimpactonourfinancialstatements,butwehavemadeadditionaldisclosuresrelatedtotherangeandweightedaverageratesusedtodevelopsignificantinputsfornonrecurringLevel3measurements.

Inthefourthquarterof2020,weadoptedASU2018-14,“DisclosureFramework-ChangestotheDisclosureRequirementsforDefinedBenefitPlans,”whichamendscertaindisclosurerequirementsrelatedtodefinedbenefitpensionandotherpostretirementplans.Theadoptiondidnothaveamaterialimpactonourfinancialstatements.

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4. EarningsPerShare

Potentiallydilutivesecuritiesincludestockoptions,RSUs,restrictedstockandperformance-basedawardunits.DilutedEPSreflectstheassumedexerciseorconversionofalldilutivesecuritiesusingthetreasurystockmethod.

YearEndedDecember31,

(inthousands,exceptpershareamounts) 2020 2019 2018

AmountsattributabletoFluorCorporation:Netearnings(loss)fromContOps $ (293,899)$(1,525,767)$ 153,033Netearnings(loss)fromDiscOps (141,147) 3,603 20,435Netearnings(loss) $ (435,046)$(1,522,164)$ 173,468

BasicEPSattributabletoFluorCorporation:Weightedaveragecommonsharesoutstanding 140,511 140,061 140,413

Netearnings(loss)fromContOps $ (2.09)$ (10.89)$ 1.09Netearnings(loss)fromDiscOps (1.01) 0.02 0.15Netearnings(loss) $ (3.10)$ (10.87)$ 1.24

DilutedEPSattributabletoFluorCorporation:Weightedaveragecommonsharesoutstanding 140,511 140,061 140,413Dilutiveeffects:Stockoptions,RSUs,restrictedstockandperformance-basedawardunits(1) — — 859Weightedaveragedilutedsharesoutstanding 140,511 140,061 141,272

Netearnings(loss)fromContOps $ (2.09)$ (10.89)$ 1.08Netearnings(loss)fromDiscOps (1.01) 0.02 0.15Netearnings(loss) $ (3.10)$ (10.87)$ 1.23

(1)Anti-dilutivesecuritiesnotincludedinsharesoutstanding 709 593 —

During2018,werepurchasedandcanceled1.1millionsharesofcommonstockfor$50million.

LimitedDurationStockholderRightsAgreement

InMarch2020,theboardofdirectorsdeclaredadividenddistributionofonepreferredsharepurchaserightforeachoutstandingshareofourcommonstock,payabletoholdersofrecordasofApril10,2020.Therightsaredesignedtoprotectagainstunsolicitedtakeovers.Therightswillbeexercisableonlyifapersonorgroupacquires10%ormoreofouroutstandingcommonstock.Eachrightwillentitlestockholderstopurchaseoneonethousandthofashareofanewseriesofjuniorparticipatingpreferredstockatanexercisepriceof$50.Inaddition,ifapersonorgroupacquires10%ofouroutstandingcommonstock(unlesssuchpersonorgroupacquires50%ormore),theboardofdirectorsmayexchangeoneshareofcommonstockforeachoutstandingright.Priorthereto,therightsareredeemablefor$0.01perrightattheoptionoftheboardofdirectors.TherightsarescheduledtoexpireinMarch2021.

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5. OperatingInformationbySegmentandGeographicArea YearEndedDecember31,

(inmillions) 2020 2019 2018

RevenueEnergy&Chemicals $ 5,260.4 $ 5,823.7 $ 7,695.5Mining&Industrial 4,149.1 5,057.2 3,491.0Infrastructure&Power 1,595.5 1,370.4 1,668.0Government 2,922.8 2,969.3 3,678.5DiversifiedServices 1,630.9 2,040.1 2,257.2Other 109.8 56.6 60.8

Totalrevenue $ 15,668.5 $ 17,317.3 $ 18,851.0Segmentprofit(loss)

Energy&Chemicals $ 163.7 $ (95.0) $ 334.5Mining&Industrial 122.4 158.5 94.3Infrastructure&Power 13.7 (243.9) (30.1)Government 88.4 200.3 187.3DiversifiedServices 14.2 14.6 68.7Other (85.4) (220.1) (144.7)

Totalsegmentprofit $ 317.0 $ (185.6) $ 510.0Depreciation(allbutCorporateincludedinsegmentprofit)

Energy&Chemicals $ — $ — $ —Mining&Industrial — — —Infrastructure&Power 10.0 7.3 6.7Government 4.0 4.0 3.6DiversifiedServices 21.9 34.5 52.1Other 1.7 2.8 3.2Corporate 64.9 61.7 59.8

Totaldepreciation(1) $ 102.5 $ 110.3 $ 125.4Capitalexpenditures

Energy&Chemicals $ — $ — $ —Mining&Industrial — — —Infrastructure&Power 28.8 12.2 24.5Government 3.2 3.0 6.9DiversifiedServices 24.6 33.6 46.9Other 3.4 1.5 1.8Corporate 30.0 62.5 90.0

Totalcapitalexpenditures(2) $ 90.0 $ 112.8 $ 170.1

December31,2020

December31,2019

TotalassetsEnergy&Chemicals $ 1,004.6 $ 1,139.3Mining&Industrial 508.5 594.9Infrastructure&Power 469.3 471.3Government 575.4 629.1DiversifiedServices 950.6 1,290.6Other 38.1 68.5Corporate 3,574.7 3,379.3DiscontinuedOperations-Assetsheldforsale 188.6 393.7

Totalassets $ 7,309.8 $ 7,966.7Goodwill

Energy&Chemicals $ 12.6 $ 12.6Mining&Industrial 9.2 8.2Infrastructure&Power 2.5 2.5Government 58.0 58.0DiversifiedServices 260.8 420.9Other 6.2 6.2

TotalGoodwill $ 349.3 $ 508.4

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(1)Depreciationof$44millionand$72millionduring2019and2018,respectively,wasincludedindiscontinuedoperationsandexcludedfromthetableabove.

(2)Capitalexpendituresof$23million,$68millionand$41millionduring2020,2019and2018,respectively,wereincludedindiscontinuedoperationsandexcludedfromthetableabove.

Energy&Chemicals.TherevenueofasingleEnergy&Chemicalscustomeranditsaffiliatesamountedto12%ofourconsolidatedrevenueduring2020.TherevenueofadifferentEnergy&Chemicalscustomeranditsaffiliatesamountedto11%and18%ofourconsolidatedrevenueduring2019and2018,respectively.

Segmentprofitin2020includedtheadverseimpactsoftherecognitionofreservestotaling$60millionforexpectedcreditlossesassociatedwithcertainjointventureclients,aswellasmargindiminutiononapercentage-of-completionbasisresultingfromprojectpositionstakenwithrespecttoCOVID-19relatedscheduledelaysandassociatedcostgrowth.Segmentlossin2019includedchargesassociatedwithforecastrevisionsoncertainprojectsincluding$260million(or$1.85pershare)forcostgrowthonanoffshoreproject;$87million(or$0.62pershare)forcostgrowthontwodownstreamprojectsandscopereductionsonalargeupstreamproject;$26million(or$0.19pershare)forthewrite-offofpre-contractcosts,$26million(or$0.19pershare)onembeddedforeigncurrencyderivativesand$31million(or$0.22pershare)fromtheresolutionofclose-outmatters.Segmentprofitin2018includedchargesof$133million(or$0.89pershare)forcostgrowthonacompleted,downstreamprojectand$40million(or$0.23pershare)forcostgrowthontheaforementionedoffshoreproject.

Wearecurrentlyindiscussionswiththeclientsofthetwolump-sum,downstreamprojectsmentionedaboveoverunapprovedchangeorderstotaling$66millionforcostgrowthandextensionoftimeduetoclient-causeddelays.Ourcurrentforecastsarebasedontheprobabilityoffavorablyresolvingthesematters.Revenueandsegmentprofitcouldbeadverselyaffectedifthesemattersarenotsuccessfullyresolved,includingtheassessmentofliquidateddamagesforwhichourcombinedmaximumexposureforbothprojectsisapproximately$121million.

Mining&Industrial.Segmentprofitin2019includedagainof$31million(or$0.16pershare)resultingfromafavorableresolutionofalongstandingcustomerdisputeonaminingproject.

Infrastructure&Power.Segmentprofitin2020includedapositivesettlementonacanceledrailprojectoffsetbychargesforcostgrowthintheinfrastructurelegacyportfolio.Segmentlossin2019includedchargestotaling$135million(or$0.96pershare)forthesettlementofclientdisputesandcostgrowthoncertainclose-outmattersforthreepowerprojectsthatweresubstantiallycompleteasofDecember31,2019.Segmentlossin2019wasfurtherdrivenbychargestotaling$133million(or$0.95pershare)resultingfromlateengineeringchanges,schedule-drivencostgrowthandnegotiationswithclientsandsubcontractorsonpendingchangeorders,forseveralinfrastructureprojects.Segmentlossin2018includedchargestotaling$188million(or$1.02pershare)resultingfromcostgrowthatoneoftheaforementionedpowerprojects.Thechargesin2018werelargelyoffsetbyagainof$125million(or$0.74pershare)onthesaleofajointventureinterestintheUnitedKingdom.

Government.RevenuefromworkperformedforvariousagenciesoftheU.S.governmentamountedto18%,15%and18%ofourconsolidatedrevenueduring2020,2019and2018,respectively.

During2019,wesettledwithaclientinconnectionwiththecancellationoftwosubcontractsatnuclearpowerplantprojectsinSouthCarolinaandGeorgia.ThesettlementresolvedourclaimsarisingpriortothebankruptcyfilinginMarch2017.Proceedsfromthesettlementwerereceivedduring2019.Asaresultofthesettlement,wede-recognizedpre-petitionaccountsreceivableof$68millionandalsorecorded$89millionofpreviouslyunrecognizedservicefeerevenue.

DiversifiedServices.During2020,2019and2018,intercompanyrevenuefortheDiversifiedServicessegment,excludedfromtheamountsshownabove,was$270million,$322millionand$332million,respectively.

Other.Segmentlossin2019includedchargesof$59million(or$0.42pershare)ontheWarrenprojectand$83million(or$0.59pershare)ontheRadfordprojectforvariousengineeringandcostgrowthassociatedwiththefacilities.Segmentlossin2018of$56million(or$0.30pershare)wasdrivenbyforecastrevisionsontheRadfordproject.Therewerenosimilarmaterialchargesin2020.SegmentlossforallperiodsincludedtheoperationsofNuScale,whichareprimarilyforresearchanddevelopmentactivitiesassociatedwiththelicensingandcommercializationofsmallmodularnuclearreactortechnology.NuScaleexpensesincludedinthedeterminationofsegmentlosswere$84million,$66millionand$74millionduring2020,

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2019and2018,respectively.NuScaleexpensesin2020,2019and2018werereportednetofqualifiedreimbursableexpensesof$71million,$56millionand$62million,respectively.

ReconciliationofTotalSegmentProfit(Loss)toEarnings(Loss)fromContinuingOperationsBeforeTaxes YearEndedDecember31,

(inmillions) 2020 2019 2018

Totalsegmentprofit(loss) $ 317.0 $ (185.6)$ 510.0

Corporategeneralandadministrativeexpense (240.7) (165.9) (121.2)

Impairment,restructuringandotherexitcosts (305.6) (532.6) —

Gain(loss)onpensionsettlement 0.4 (137.9) (21.9)

Interestincome(expense),net (46.4) (18.5) (40.6)

Earnings(loss)attributabletoNCIfromcontinuingoperations 68.2 (31.0) 59.4

Earnings(loss)fromcontinuingoperationsbeforetaxes $ (207.1)$ (1,071.5)$ 385.7

Foreigncurrencyexchangegainsand(losses)of($47million),($27million)and$33millionwereincludedinCorporateG&Aduring2020,2019and2018,respectively.

OperatingInformationbyGeographicArea

RevenuebyprojectlocationYearEndedDecember31,

TotalAssetsAsofDecember31,

(inmillions) 2020 2019 2018 2020 2019

NorthAmerica $ 9,806.4 $ 8,439.7 $ 8,982.1 $ 3,982.4 $ 3,728.8

AsiaPacific(includesAustralia) 1,398.2 1,763.3 1,494.0 562.1 533.7

Europe 2,517.5 3,731.6 5,326.6 1,403.9 1,906.9

CentralandSouthAmerica 1,388.1 2,375.3 1,262.6 812.8 1,233.6

MiddleEastandAfrica 558.3 1,007.4 1,785.7 548.6 563.7

Total $ 15,668.5 $ 17,317.3 $ 18,851.0 $ 7,309.8 $ 7,966.7

6. Impairment,RestructuringandOtherExitCosts

RestructuringandOtherExitCosts

During2019,weinitiatedarestructuringplandesignedtooptimizecostsandimproveoperationalefficiency.Theseeffortsprimarilyrelatetotherationalizationofresources,investments,realestateandoverheadacrossvariousgeographies,aswellastheliquidationofcertaincomponentsoftheAMECObusinessthatarebeingexcludedfromsale.Ourplannedrestructuringactivitiesweresubstantiallycompletedbytheendof2020.Restructuringcoststotaled$8millionand$240millionduring2020and2019,respectively.

Informationaboutourrestructuring,whichwebelieveiscompleteasofDecember31,2020,follows:

(inmillions)

CostsIncurredin

2020

CostsIncurredin

2019

Restructuringandotherexitcosts:Severance $ 6.6 $ 63.9Assetimpairments 0.4 90.4Entityliquidationcosts(includingtherecognitionofcumulativetranslationadjustments) — 83.7Otherexitcosts 1.0 2.0

Totalrestructuringandotherexitcosts $ 8.0 $ 240.0

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Assetimpairmentchargesincludedthewritedownofassetsheldforsaletofairvaluelesscosttosellandthewritedownofcertainotherassetstofairvalue.Thefairvalueofassetsandliabilitiesheldforsaleandotherimpairedassets,primarilyconstructionequipment,wasestimatedusingobservableLevel2inputsforidenticalassets.SeeNote24forasummaryofassetsandliabilitiesclassifiedasheldforsaleasofDecember31,2020and2019.Thefairvalueoftheotherimpairedassetswas$25millionasofDecember31,2019.Theseassetswereincludedin"Property,plantandequipment"and"Otherassets".ThefairvalueoftheseotherassetswasestimatedusingobservableLevel2inputsforidenticalassets.

Areconciliationofrestructuringliabilitiesfollow:

(inthousands) SeveranceLeaseExitCosts Other Total

BalanceasofDecember31,2019 $ 46,303 $ 570 $ 307 $ 47,180Restructuringchargesaccruedduringtheperiod 6,965 334 687 7,986Cashpayments/settlementsduringtheperiod (32,292) (799) (993) (34,084)Currencytranslation 2,282 1 (1) 2,282

BalanceasofDecember31,2020 $ 23,258 $ 106 $ — $ 23,364

Impairment

Impairmentexpenseissummarizedasfollows:YearEndedDecember31,

(inthousands) 2020 2019

Impairmentexpense:

GoodwillassociatedwiththeDiversifiedServicesreportingunit $ 168,568 $ 2,125

IntangiblecustomerrelationshipsassociatedwithStork 26,671 33,657

EquitymethodinvestmentsintheEnergy&Chemicalssegment 86,096 256,769

Informationtechnologyassets 16,269 —

Totalimpairmentexpense $ 297,604 $ 292,551

2020Impairment

OurbusinesshasbeenadverselyaffectedbytheeconomicimpactsoftheoutbreakofCOVID-19andthesteepdeclineinoilpricesthatoccurredintheearlypartof2020.Theseeventshavecreatedsignificantuncertaintyandeconomicvolatilityanddisruption,whichhaveimpactedandmaycontinuetoimpactourbusiness.Wehaveexperienced,andmaycontinuetoexperience,reductionsindemandforcertainofourservicesandthedelayorabandonmentofongoingoranticipatedprojectsduetoourclients’,suppliers’andotherthirdparties’diminishedfinancialconditionorfinancialdistress,aswellasgovernmentalbudgetconstraints.Theseimpactsareexpectedtocontinueorworsenunderprolongedstay-at-home,socialdistancing,travelrestrictionsandothersimilarordersorrestrictions.Significantuncertaintystillexistsconcerningthemagnitudeoftheimpactanddurationoftheseevents.Becauseoftheseevents,weperformedinterimimpairmenttestingofourgoodwill,intangibleassetsandinvestmentsandrecognizedtheaboveimpairmentexpenseduringthefirstquarterof2020.

Aspartofourassessmentofgoodwill,thefairvalueofthereportingunitswasdeterminedusinganincomebasedapproachthatutilizedunobservableLevel3inputs,includingsignificantmanagementassumptionssuchasexpectedawards,forecastedrevenueandoperatingmargins,weightedaveragecostofcapital,workingcapitalassumptionsandgeneralmarkettrendsandconditions.

Thecustomerrelationships'valuationapproachutilizedunobservableLevel3inputsincludingrangesofassumptionsoflong-termrevenuegrowthfrom2%to5.5%withaweightedaverageof2.4%,weightedaveragecostofcapitalof12%andacustomerattritionfactorof10%.

ThevaluationoftheequitymethodinvestmentsutilizedunobservableLevel3inputsbasedontheforecastofanticipatedvolumesandoverheadabsorptioninacyclicalbusiness.

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2019Impairment

During2019,werecognizedimpairmentexpenseonourintangiblecustomerrelationshipsassociatedwithStork.Thefairvalueofthecustomerrelationshipswasdeterminedbyathirdpartyusinganincome-basedapproachthatutilizedunobservableLevel3inputs,includingsignificantmanagementassumptionssuchasforecastedrevenueandoperatingmargins,customerattritionandweightedaveragecostofcapital.Thenetcarryingvalueofthecustomerrelationshipswas$31millionasofDecember31,2019.

Wealsoevaluatedoursignificantinvestmentsanddeterminedthatcertainofourinvestmentswereimpairedduring2019.Thefairvalueoftheseinvestmentsweredeterminedusingincome-basedapproachesthatutilizedunobservableLevel3inputs,includingsignificantmanagementassumptionssuchasforecastedrevenueandoperatingmarginsandweightedaveragecostofcapital.Thenetcarryingvalueoftheseinvestmentstotaled$95millionasofDecember31,2019.

7. IncomeTaxes

InMarch2020,theCoronavirusAid,ReliefandEconomicSecurityAct(“CARESAct”)wasenacted.TheCARESAct,amongotherthings,includesprovisionsrelatingtonetoperatinglosscarrybackperiods,alternativeminimumtaxcreditrefunds,modificationstothenetinterestdeductionlimitationsanddeferralofemployerpayrolltaxes.Werecordedadiscretebenefitof$125millionduetoutilizationofa2019netoperatinglossinthecarrybackperiod.PriortotheCARESAct,thislosscouldonlybecarriedforwardandwasoffsetbyavaluationallowance.ThroughDecember31,2020,wehavedeferredpayrolltaxesof$41millionundertheCARESAct,withapproximatelyhalfofthedeferralpayablein2021andandtheremainderpayablein2022.

Theincometaxexpense(benefit)componentsrecognizedincontinuingoperationsfollow:

YearEndedDecember31,

(inthousands) 2020 2019 2018

Current:

Federal $ (121,411) $ (36,591) $ (19,199)

Foreign 140,551 163,141 115,281

Stateandlocal 5,343 4,295 12,377

Totalcurrent 24,483 130,845 108,459

Deferred:

Federal 17,451 325,351 16,800

Foreign (23,342) 9,593 55,208

Stateandlocal — 19,441 (7,136)

Totaldeferred (5,891) 354,385 64,872

Totalincometaxexpense $ 18,592 $ 485,230 $ 173,331

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AreconciliationofU.S.statutoryfederalincometaxexpense(benefit)toincometaxexpense(benefit)fromcontinuingoperationsfollows:

YearEndedDecember31,

(inthousands) 2020 2019 2018

U.S.statutoryfederaltaxexpense(benefit) $ (43,481) $ (225,014) $ 81,007

Increase(decrease)intaxesresultingfrom:

Stateandlocalincometaxes (10,614) (11,135) (13,668)

U.S.taxonGILTI — — 10,649

NCI (9,466) 11,565 (7,200)

Foreigntaxdifferential,net 38,667 13,479 1,460

Valuationallowance,net 148,783 730,787 79,168

Otherchangestouncertaintaxpositions 7,484 4,098 7,753

StrandedtaxeffectsfromAOCI — (35,619) —

Impactoftaxreform — — (1,373)

CARESActBenefit (124,753) — —

Other,net 11,972 (2,931) 15,535

Totalincometaxexpense $ 18,592 $ 485,230 $ 173,331

Deferredtaxesreflectthetaxeffectsofdifferencesbetweentheamountsrecordedasassetsandliabilitiesforfinancialreportingpurposesandtheamountsrecordedforincometaxpurposes.Thetaxeffectsofsignificanttemporarydifferencesgivingrisetodeferredtaxassetsandliabilitiesareasfollows:

December31,

(inthousands) 2020 2019

Deferredtaxassets:

Accruedliabilitiesnotcurrentlydeductible:

Employeecompensationandbenefits $ 104,305 $ 116,162

Projectandnon-projectreserves 71,999 60,768

Netoperatinglosscarryforward 326,402 357,803

Taxbasisofinvestmentinexcessofbookbasis 118,915 88,255

U.S.foreigntaxcreditcarryforward 414,348 226,845

AOCI 62,681 67,258

Other 103,955 85,059

Totaldeferredtaxassets 1,202,605 1,002,150

Valuationallowance (1,080,752) (910,336)

Deferredtaxassets,net $ 121,853 $ 91,814

Deferredtaxliabilities:Bookbasisofpropertyandequipmentinexcessoftaxbasis (43,475) (29,846)

Dividendwithholdingonunremittednon-U.S.earnings (57,859) (49,663)

Other (23,349) (32,912)

Totaldeferredtaxliabilities (124,683) (112,421)

Deferredtaxassets,netofdeferredtaxliabilities $ (2,830) $ (20,607)

AsofDecember31,2020,weareindefinitelyreinvestedonlywithrespecttounremittedearningsrequiredtomeetourworkingcapitalandlong-terminvestmentneedsintheforeignjurisdictionswithinwhichweoperate.Beyondthoselimits,weexpectcurrentearningstobeavailablefordistribution.Deferredtaxliabilitiesofapproximately$28millionhavenotbeenrecordedwithrespecttounremittedearningsthatareconsideredindefinitelyreinvested,againprimarilyassociatedwith

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foreignwithholdingandincometaxesthatwouldbedueuponremittance.Wehavenointentionofinitiatinganyactionsthatwouldleadtotaxationoftheearningsdeemedindefinitelyreinvested.

WehaveU.Sfederalandstatenetoperatinglosscarryforwardsof$159millionand$908million,respectively.Thefederalnetoperatinglosscarryforwardscanbecarriedforwardindefinitely.Ifnotused,thestatenetoperatinglosscarryforwardswillbegintoexpirein2021.Approximately$117millionofthestatenetoperatinglosscarryforwardswillexpirein2021.Wealsohavenon-U.S.netoperatinglosscarryforwardsrelatedtovariousjurisdictionsofapproximately$1.2billion.Non-U.S.netoperatinglossesinclude$599millionintheUnitedKingdomand$345millionintheNetherlandsasofDecember31,2020.Ofthetotalnon-U.S.losses,$800millioncanbecarriedforwardindefinitely.Themajorityoftheremaining$296millionnetoperatinglosses,ifunused,willexpirebetween2023and2028.

WehadU.S.foreigntaxcreditsofapproximately$414millionasofDecember31,2020,whichwillbegintoexpirein2028,butwhicharefullyreservedforinourvaluationallowance

During2020and2019,wewereinathree-yearcumulativelossonaconsolidated,jurisdictionalbasisinAustralia,theNetherlands,theU.K.andtheU.S.Suchcumulativelossconstitutessignificantnegativeevidence(withregardstofuturetaxableincome)forassessinglikelihoodofrealization.Wealsoconsideredpositiveevidencebutconcludeditdidnotoutweighthissignificantnegativeevidenceofathree-yearcumulativeloss.Accordingly,werecognizednon-cashchargestotaxexpenseof$142millionand$602milliontorecordavaluationallowanceagainstnetU.S.deferredtaxassetsand$28millionand$129millionagainstcertainnetforeigndeferredtaxassetsduring2020and2019,respectively.

Inthenormalcourseofbusiness,wearesubjecttoexaminationbytaxingauthoritiesworldwide,includingsuchmajorjurisdictionsasAustralia,Canada,theNetherlands,SouthAfrica,theUnitedKingdom,andtheUnitedStates.Althoughwebelieveourreservesforourtaxpositionsarereasonable,theoutcomeoftaxauditscouldbemateriallydifferent,bothfavorablyandunfavorably.Withafewexceptions,wearenolongersubjecttoU.S.federal,stateandlocal,ornon-U.S.incometaxexaminationsforyearsbefore2012.

Asummaryofunrecognizedtaxbenefitsfollows:

(inthousands) 2020 2019

Balanceatbeginningofyear $ 42,394 $ 55,476

Changeintaxpositionsofprioryears 8,166 6,359

Changeintaxpositionsofcurrentyear — —

Reductionintaxpositionsforstatuteexpirations (1,510) (16,894)

Reductionintaxpositionsforauditsettlements (637) (2,547)

Balanceatendofyear $ 48,413 $ 42,394

Ifrecognized,thetotalamountofunrecognizedtaxbenefitsasofDecember31,2020and2019,wouldfavorablyimpacttheeffectivetaxratesby$30millionand$22million,respectively.Wehad$11millionand$10millionofaccruedinterestandpenaltiesasofDecember31,2020and2019,respectively.Wedonotanticipateanysignificantchangestotheunrecognizedtaxbenefitswithinthenexttwelvemonths.

U.S.andforeignearnings(loss)fromcontinuingoperationsbeforetaxesareasfollows:

YearEndedDecember31,

(inthousands) 2020 2019 2018

UnitedStates $ (265,682) $ (968,280) $ (252,376)Foreign 58,630 (103,215) 638,125Total $ (207,052) $(1,071,495) $ 385,749

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8. SupplementalCashFlowInformation

Thechangesinassetsandliabilitiesincludedinoperatingcashflowfollow:

YearEndedDecember31,

(inthousands) 2020 2019 2018

(Increase)decreasein:

Accountsandnotesreceivable,net $ 138,388 $ 210,419 $ (40,632)

Contractassets 280,360 207,467 (83,774)

Othercurrentassets 3,893 (80,248) 168,021

Otherassets 109,405 100,527 (25,424)

Increase(decrease)in:

Accountspayable (343,113) (46,873) 176,335

Contractliabilities (53,580) 202,359 (307,844)

Accruedliabilities (11,829) 29,880 (75,878)

Otherliabilities (93,723) 9,496 (38,536)

Increase(decrease)incashduetochangesinassetsandliabilities $ 29,801 $ 633,027 $ (227,732)

Cashpaidduringtheyearfor:

Interest $ 65,641 $ 71,938 $ 66,514

Incometaxes(netofrefunds) 65,188 204,080 (28,408)

9. PartnershipsandJointVentures

Inthenormalcourseofbusiness,weformpartnershipsorjointventuresprimarilyfortheexecutionofsinglecontractsorprojects.Themajorityofthesepartnershipsorjointventuresarecharacterizedbya50percentorless,noncontrollingownershiporparticipationinterest,withdecisionmakinganddistributionofexpectedgainsandlossestypicallybeingproportionatetotheownershiporparticipationinterest.Manyofthepartnershipandjointventureagreementsprovideforcapitalcallstofundoperations,asnecessary.Accountsreceivablerelatedtoworkperformedforunconsolidatedpartnershipsandjointventuresincludedin"Accountsandnotesreceivable,net"were$218millionand$149millionasofDecember31,2020and2019,respectively.

Thefollowingisasummaryofaggregate,unauditedbalancesheetdataforunconsolidatedentitieswhereourinvestmentispresentedasaone-lineequitymethodinvestment:

December31,

(inmillions) 2020 2019

Currentassets $ 8,138 $ 6,927Noncurrentassets 4,745 5,109Currentliabilities 6,307 4,605Noncurrentliabilities 4,354 5,256

Thefollowingisasummaryofaggregate,unauditedincomestatementdataforunconsolidatedentitieswheretheequitymethodofaccountingisusedtorecognizeourshareofnetearningsorlossofinvestees:

(inmillions) 2020 2019 2018

Revenue $ 1,209 $ 1,258 $ 1,465Costofrevenue 1,104 1,151 1,338Netearnings 54 45 35

During2020and2019,weevaluatedoursignificantinvestmentsanddeterminedthatcertainofourinvestmentswereimpaired.Asaresult,werecognizedimpairmentexpenseof$86millionand$257millionduring2020and2019,respectively.

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OneofourmoresignificantjointventuresisCOOECFluor,inwhichwehavea49%ownershipinterest.COOECFluorowns,operatesandmanagestheZhuhaiFabricationYardinChina’sGuangdongprovince.Wecompletedourfinalfundingcommitmenttothejointventureof$26millionduring2021.

During2020,wesoldourinterestsinthreeinfrastructurejointventuresandrecognizedagainof$8million.Wealsosoldour50%interestinanEnergy&Chemicalsjointventureduring2020andrecognizedalossof$11million.

VariableInterestEntities

ThenetcarryingvalueoftheunconsolidatedVIEs(classifiedunderbothinvestmentsandotheraccruedliabilities)wasanetassetof$174millionand$217millionasofDecember31,2020and2019,respectively.SomeofourVIEshavedebt;however,suchdebtistypicallynon-recourseinnature.OurmaximumexposuretolossasaresultofourinvestmentsinunconsolidatedVIEsistypicallylimitedtotheaggregateofthecarryingvalueoftheinvestmentandfuturefundingnecessarytosatisfythecontractualobligationsoftheVIE.FuturefundingcommitmentsasofDecember31,2020fortheunconsolidatedVIEswere$72million.

Insomecases,wearerequiredtoconsolidatecertainVIEs.AsofDecember31,2020,thecarryingvaluesoftheassetsandliabilitiesassociatedwiththeoperationsoftheconsolidatedVIEswere$1.3billionand$703million,respectively.AsofDecember31,2019,thecarryingvaluesoftheassetsandliabilitiesassociatedwiththeoperationsoftheconsolidatedVIEswere$1.1billionand$798million,respectively.TheassetsofaVIEarerestrictedforuseonlyfortheparticularVIEandarenotavailableforourgeneraloperations.

WehaveagreementswithcertainVIEstoprovidefinancialorperformanceassurancestoclients,asdiscussedelsewhere.

10. Guarantees

Intheordinarycourseofbusiness,weenterintovariousagreementsprovidingperformanceassurancesandguaranteestoourclientsonbehalfofcertainunconsolidatedandconsolidatedpartnerships,jointventuresandotherjointlyexecutedcontracts.Theseagreementsareenteredintoprimarilytosupportprojectexecutioncommitments.Theperformanceguaranteeshavevariousexpirationdatesrangingfrommechanicalcompletionoftheprojecttoaperiodextendingbeyondcontractcompletion.Themaximumpotentialamountoffuturepaymentsthatwecouldberequiredtomakeunderoutstandingperformanceguarantees,whichrepresentstheremainingcostofworktobeperformed,wasestimatedtobe$14billionasofDecember31,2020.Forcostreimbursablecontracts,amountsthatmaybecomepayablepursuanttoguaranteeprovisionsarenormallyrecoverablefromtheclientforworkperformed.Forlump-sumcontracts,theperformanceguaranteeamountisthecosttocompletethecontractedwork,lessamountsremainingtobebilledtotheclientunderthecontract.Remainingbillableamountscouldbegreaterorlessthanthecosttocomplete.Inthosecaseswherecostsexceedtheremainingamountspayableunderthecontract,wemayhaverecoursetothirdparties,suchasowners,partners,subcontractorsorvendorsforclaims.TheperformanceguaranteeobligationwasnotmaterialasofDecember31,2020and2019.

Financialguarantees,madeintheordinarycourseofbusinessincertainlimitedcircumstances,areenteredintowithfinancialinstitutionsandothercreditgrantorsandgenerallyobligatethecompanytomakepaymentintheeventofadefaultbytheborrower.Thesearrangementsgenerallyrequiretheborrowertopledgecollateraltosupportthefulfillmentoftheborrower'sobligation.

11. ContingenciesandCommitments

Weandcertainofoursubsidiariesaresubjecttolitigation,claimsandothercommitmentsandcontingenciesarisingintheordinarycourseofbusiness.Althoughtheassertedvalueofthesemattersmaybesignificant,wecurrentlydonotexpectthattheultimateresolutionofanyopenmatterswillhaveamaterialadverseeffectonourfinancialpositionorresultsofoperations.

SinceMay2018,purportedshareholdershavefiledvariouscomplaintsagainstFluorCorporationandcertainofitscurrentandformerexecutivesintheU.S.DistrictCourtfortheNorthernDistrictofTexas.TheplaintiffspurporttorepresentaclassofshareholderswhopurchasedorotherwiseacquiredFluorcommonstockfromAugust14,2013throughFebruary14,2020,andseektorecoverdamagesarisingfromallegedviolationsoffederalsecuritieslaws.TheseclaimsarebasedonstatementsconcerningFluor’sinternalanddisclosurecontrols,riskmanagement,revenuerecognition,andFluor’sgas-fired

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powerbusiness,whichplaintiffsassertweremateriallymisleading.AsofMay26,2020,thesecomplaintshavebeenconsolidatedintoonematter.WefiledamotiontodismissthematteronJuly1,2020.Whilenoassurancecanbegivenastotheultimateoutcomeofthismatter,wedonotbelieveitisprobablethatalosswillbeincurred.Accordingly,wehavenotrecordedachargeasaresultofthisaction.

SinceSeptember2018,tenseparatepurportedshareholders'derivativeactionswerefiledagainstcurrentandformermembersoftheBoardofDirectors,aswellascertainofFluor’scurrentandformerexecutives.FluorCorporationisnamedasanominaldefendantintheactions.ThesederivativeactionspurporttoassertclaimsonbehalfofFluorCorporationandmakesubstantiallythesamefactualallegationsasthesecuritiesclassactionmatterdiscussedaboveandseekvariousformsofmonetaryandinjunctiverelief.TheseactionsarependinginTexasstatecourt(DistrictCourtforDallasCounty),theU.S.DistrictCourtfortheDistrictofDelaware,theU.S.DistrictCourtfortheNorthernDistrictofTexas,andtheCourtofChanceryoftheStateofDelaware.Certainoftheseactionshavebeenconsolidatedandstayeduntilourmotiontodismissisruleduponinthesecuritiesclassactionmatter.Whilenoassurancecanbegivenastotheultimateoutcomeofthismatter,wedonotbelieveitisprobablethatalosswillbeincurred.Accordingly,wehavenotrecordedachargeasaresultoftheseactions.

FluorAustraliaLtd.,ourwholly-ownedsubsidiary(“FluorAustralia”),completedacostreimbursableengineering,procurementandconstructionmanagementservicesprojectforSantosLtd.(“Santos”)involvingalargenetworkofnaturalgasgatheringandprocessingfacilitiesinQueensland,Australia.OnDecember13,2016,SantosfiledanactioninQueenslandSupremeCourtagainstFluorAustralia,assertingvariouscausesofactionandseekingdamagesand/orarefundofcontractproceedspaidofapproximatelyAUD$1.47billion.SantoshasjoinedFluorCorporationtothematteronthebasisofaparentcompanyguaranteeissuedfortheproject.WebelievethattheclaimsassertedbySantosarewithoutmeritandwearevigorouslydefendingtheseclaims.Whilenoassurancecanbegivenastotheultimateoutcomeofthismatter,wedonotbelieveitisprobablethatalosswillbeincurred.Accordingly,wehavenotrecordedachargeasaresultofthisaction.

FluorLimited,ourwholly-ownedsubsidiary(“FluorLimited”),andFluorArabiaLimited,apartially-ownedsubsidiary(“FluorArabia”),completedcostreimbursableengineering,procurementandconstructionmanagementservicesforSadaraChemicalCompany(“Sadara”)involvingalargepetrochemicalfacilityinJubail,KingdomofSaudiArabia.OnAugust23,2019,FluorLimitedandFluorArabiaLimitedcommencedarbitrationproceedingsagainstSadaraafteritrefusedtopayinvoicestotalingapproximately$100milliondueundertheparties’agreements.Aspartofthearbitrationproceedings,Sadarahasassertedvariouscounterclaimsfordamagesand/orarefundofcontractproceedspaidtotalingapproximately$574millionagainstFluorLimitedandFluorArabiaLimited.WebelievethatthecounterclaimsassertedbySadaraarewithoutmeritandarevigorouslydefendingtheseclaims.Whilenoassurancecanbegivenastotheultimateoutcomeofthecounterclaims,wedonotbelieveitisprobablethatalosswillbeincurredinexcessofamountsreservedforthismatter.Accordingly,wehavenotrecordedachargeasaresultofthecounterclaims.

Variouswholly-ownedsubsidiariesofFluor,inconjunctionwithapartner,TECHINT,(“Fluor/TECHINT”)performedengineering,procurementandconstructionmanagementservicesonacostreimbursablebasisforBarrickinvolvingagoldmineandoreprocessingfacilityonasitestraddlingtheborderbetweenArgentinaandChile.In2013,BarrickterminatedtheFluor/TECHINTagreementsforconvenienceandnotduetotheperformanceofFluor/TECHINT.OnAugust12,2016,BarrickfiledanoticeofarbitrationagainstFluor/TECHINT,demandingdamagesand/orarefundofcontractproceedspaidofnotlessthan$250millionundervariousclaimsrelatingtoFluor/TECHINT’sallegedperformance.Proceedingsweresuspendedwhilethepartiesexploredapossiblesettlement.InAugust2019,Barrickdrewdown$36millionoflettersofcreditfromFluor/TECHINT($24millionfromFluorand$12millionfromTECHINT).Thereafter,Barrickproceededtoreactivatethearbitration.InDecember2020,BarrickandFluor/TECHINTexchangeddetailedstatementsofclaimandcounterclaimpursuanttowhichBarrick’sclaimagainstFluor/TECHINTnowtotalsapproximately$330million.WebelievethattheclaimsassertedbyBarrickarewithoutmeritandarevigorouslydefendingtheseclaims.Whilenoassurancecanbegivenastotheultimateoutcomeofthismatter,wedonotbelieveitisprobablethatalosswillbeincurred.Accordingly,wehavenotrecordedachargeasaresultoftheseclaims.

PurpleLineTransitPartners,LLC(“PLTP”)enteredintoaPublicPrivatePartnershipAgreement(“PPPA”)withtheMarylandDepartmentofTransportationandtheMarylandTransitAdministration(together,the“State”)forthefinance,design,construction,andoperationofthePurpleLineProject,anewlightraillineinMaryland(the“Project”).PLTPisalimitedliabilitycompanyinwhichFluorhasa15%membershipinterest.PLTPenteredintoanAmendedandRestatedDesign-BuildContract(the“DBContract”)withPurpleLineTransitConstructors,LLC(“PLTC”)asdesign-buildcontractortoperformPLTP’sdesignandconstructionobligationsunderthePPPAonaback-to-backbasis.PLTCisalimitedliabilitycompanyinwhichFluorhasa50%membershipinterest.ThedesignandconstructionoftheProjectwassignificantlydelayedbymore

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thantwoandahalfyearsduetoeventsoutsideofPLTPorPLTC’scontrol.ThePPPAcontainedaprovisionallowingPLTPtheunconditionalrighttoterminatethePPPAifcertaineventsdelayedthedesignandconstructionoftheProjectby365daysormore.TheDBContractcontainedasimilarprovisionallowingPLTCtoterminatetheDBContract.BecauseofsignificantProjectdelays,inexcessof365days,onMay1,2020,PLTCgavenoticetoPLTPofPLTC’sintenttoterminatetheDBContract.UponreceivingPLTC’snotice,onJune23,2020,PLTPexerciseditsunconditionalrighttoterminatethePPPA.TheStatechallengedPLTP’sterminationofthePPPAandcommencedalawsuitinMarylandstatecourtagainstPLTPallegingbreachofthePPPA.Thismatterhasnowbeenresolved.PLTC,PLTPandtheStateenteredintoacomprehensivesettlementinDecember,2020.Aspartofthesettlement,Fluortransferredits15%interestinPLTPtotheremainingpartners.Fluoralsosoldits50%interestintheoperations&maintenanceentitytotheremainingpartners.PLTCreceivedaninitialsettlementpaymentof$116millionfromPLTPinDecember2020,andwearecontractuallyowedanadditional$150milliontobepaidnolaterthanDecember2021.Thelawsuithasbeendismissedwithprejudice,theDBContractisofficiallyterminated,andPLTChasreceivedafinalreleasefromPLTPandtheState.

OtherMatters

Wehavemadeclaimsarisingfromtheperformanceunderourcontracts.Werecognizerevenueforclaims,includingchangeordersindisputeandunapprovedchangeorders,whenitisprobablethatasignificantreversalintheamountofcumulativerevenuerecognizedwillnotoccur.Weestimatetheamountofrevenuetoberecognizedonclaimsusingtheexpectedvaluemethod(i.e.,thesumofprobability-weightedamounts)orthemostlikelyamountmethod,whicheveroffersbetterprediction.Factorsconsideredindeterminingwhetherrevenueassociatedwithclaimsshouldberecognizedincludethefollowing:(a)thelegalbasisfortheclaim,(b)additionalcostswerecausedbycircumstancesthatwereunforeseenatthecontractdateandnottheresultofdeficienciesinourperformance,(c)claim-relatedcostsareidentifiableandconsideredreasonableinviewoftheworkperformed,and(d)evidencesupportingtheclaimisobjectiveandverifiable.Similarly,werecognizedisputedbackchargestosuppliersorsubcontractorsasareductionofcostwhenthesamerequirementshavebeensatisfied.Weperiodicallyevaluateourpositionsandtheamountsrecognizedwithrespecttoallourclaimsandbackcharges.AsofDecember31,2020and2019,wehadrecorded$216millionand$198million,respectively,ofclaimrevenueforcostsincurredtodate.Additionalcosts,whichwillincreasetheclaimrevenuebalanceovertime,areexpectedtobeincurredinfutureperiods.WealsohadrecordeddisputedbackchargestosuppliersorsubcontractorsasofDecember31,2020and2019,noneofwhichwerematerial.

Fromtimetotime,weenterintocontractswiththeU.S.governmentanditsagencies.Governmentcontractsaresubjecttoauditsandinvestigationsbygovernmentrepresentativeswithrespecttoourcompliancewithvariousrestrictionsandregulationsapplicabletogovernmentcontractors,includingbutnotlimitedtotheallowabilityofcostsincurredunderreimbursablecontracts.Inconnectionwithperforminggovernmentcontracts,wemaintainreservesforestimatedexposuresassociatedwiththesematters.

Ouroperationsaresubjecttoandaffectedbyfederal,stateandlocallawsandregulationsregardingtheprotectionoftheenvironment.Wemaintainreservesforpotentialfutureenvironmentalcostwheresuchobligationsareeitherknownorconsideredprobable,andcanbereasonablyestimated.Webelieve,baseduponpresentinformationavailabletous,thatourreserveswithrespecttofutureenvironmentalcostareadequateandsuchfuturecostwillnothaveamaterialeffectonourconsolidatedfinancialposition,resultsofoperationsorliquidity.

InFebruary2020,weannouncedthattheSECisconductinganinvestigationandhasrequesteddocumentsandinformationrelatedtoprojectsforwhichwerecordedchargesinthesecondquarterof2019.InApril2020,theCorporationreceivedasubpoenafromtheU.S.DepartmentofJustice(“DOJ”)seekingdocumentsandinformationrelatedtothesecondquarter2019charges;certainoftheprojectsassociatedwiththosecharges;andcertainprojectaccounting,financialreportingandgovernancematters.WearecoordinatingresponsestotheSECandDOJandcooperatinginprovidingtherequesteddocumentsandinformation,whicheffortsareongoing.

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12. ContractAssetsandLiabilities

Thefollowingsummarizesinformationaboutourcontractassetsandliabilities:

December31,

(inmillions) 2020 2019

Informationaboutcontractassets:Contractassets

Unbilledreceivables $ 681 $ 851

Contractworkinprogress 287 387Contractassets $ 968 $ 1,238

Advancebillingsdeductedfromcontractassets $ 310 $ 574

YearEndedDecember31,

2020 2019

Informationaboutcontractliabilities:Provisionforanticipatedlossesoncontractsincludedincontractliabilities $ 203 $ 371RevenuerecognizedthatwasincludedincontractliabilitiesasofJanuary1 755 779

13.RemainingUnsatisfiedPerformanceObligations

WeestimatethatourRUPOwillbesatisfiedoverthefollowingperiods:

(inmillions)December31,

2020Within1year $ 10,8731to2years 6,150Thereafter 6,445Totalremainingunsatisfiedperformanceobligations $ 23,468

14. LinesofCredit,SeniorNotesandOtherBorrowings

Debtconsistedofthefollowing:

December31,

(inthousands) 2020 2019

Current:Otherborrowings $ 25,415 $ 38,728

Long-Term:SeniorNotes2023Notes $ 609,764 $ 557,1852024Notes 496,200 495,2402028Notes 595,134 594,502Otherborrowings 8,935 4,812

Borrowingsundercommittedlinesofcredit $ — $ —

CommittedLineofCredit

InFebruary2021,weenteredintoanamendedandrestated$1.65billioncreditfacilitywhichmaturesinFebruary2023.Thiscreditfacilitycontainscustomaryfinancialcovenants,includingadebt-to-capitalizationratiothatcannotexceed0.65to1.00,alimitationontheaggregateamountofdebtofthegreaterof$750millionor€750millionforoursubsidiaries,andaminimumliquiditythreshold,asdefinedintheamendedcreditfacility,of$1.5billionwhichmaybereducedto$1.25billion

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upontherepaymentofdebt.IfthiscreditfacilityhadbeeninplaceasofDecember31,2020,ourfinancialcovenantswouldhavelimitedourfurtherborrowingstoapproximately$934million.ThecreditfacilityalsocontainsprovisionsthatwillrequireustoprovidecollateraltosecurethisfacilityshouldwebedowngradedtoBBbyS&PandBa2byMoody's,suchcollateralconsistingbroadlyofourU.S.assets.Borrowingsunderthefacility,whichmaybedenominatedinUSD,EUR,GBPorCAD,bearinterestatabaserate,plusanapplicableborrowingmargin.

AsofDecember31,2020,lettersofcredittotaling$418millionwereoutstandingunderourpredecessorlinesofcredit,whichconsistedofa$1.7billionRevolvingLoanandLetterofCreditFacilityanda$1.8billionRevolvingLoanandLetterofCreditFacility.TherewerenoborrowingsoutstandingunderthesefacilitiesasofDecember31,2020.Thesecreditfacilitiesalsocontainedcustomaryfinancialandrestrictivecovenants,includingadebt-to-capitalizationratiothatcouldnotexceed0.6to1.0.

SeniorNotes

InAugust2018,weissued$600millionof4.250%SeniorNotesdueinSeptember2028("2028Notes")andreceivedproceedsof$595million.Interestonthe2028Notesispayablesemi-annuallyinMarchandSeptember.PriortoJune2028,wemayredeemthe2028Notesataredemptionpriceequalto100%oftheprincipalamount,plusa“makewhole”premiumdescribedintheindenture.AfterJune2028,the2028Notescanberedeemedatparplusaccruedinterest.

InMarch2016,weissued€500millionof1.750%SeniorNotesdueinMarch2023("2023Notes")andreceivedproceedsof€497million.Interestonthe2023NotesispayableannuallyinMarch.PriortoDecember2022,wemayredeemthe2023Notesataredemptionpriceequalto100%oftheprincipalamount,plusa"makewhole"premiumdescribedintheindenture.AfterDecember2022,the2023Notescanberedeemedatparplusaccruedinterest.Additionally,wemayredeemthe2023NotesatparplusaccruedinterestifcertainchangesinU.S.taxlawsoccur.

InNovember2014,weissued$500millionof3.5%SeniorNotesdueinDecember2024("2024Notes")andreceivedproceedsof$491million.Interestonthe2024Notesispayablesemi-annuallyinJuneandDecember.PriortoSeptember2024,wemayredeemthe2024Notesataredemptionpriceequalto100%oftheprincipalamount,plusa"makewhole"premiumdescribedintheindenture.AfterSeptember2024,the2024Notescanberedeemedatparplusaccruedinterest.

ForalloftheSeniorNotes,achangeofcontrol(asdefinedbythetermsoftherespectiveindentures)couldrequirethecompanytorepaythemat101%oftheprincipalamount,plusaccruedinterest.Wemayincuradditionalindebtednessifweareincompliancewithcertainrestrictivecovenants,includingrestrictionsonliensandrestrictionsonsaleandleasebacktransactions.

OtherBorrowingsandLettersofCredit

Otherborrowingsof$34millionand$44millionasofDecember31,2020and2019,respectively,primarilyrepresentbankloansandotherfinancingarrangementsassociatedwithStork.

Lettersofcreditareprovidedintheordinarycourseofbusinessprimarilytoindemnifyourclientsifwefailtoperformourobligationsunderourcontracts.Suretybondsmaybeusedasanalternativetolettersofcredit.AsofDecember31,2020,lettersofcredittotaling$862millionwereoutstandingunderuncommittedlinesofcredit.

15. FairValueMeasurements

Thefairvaluehierarchyprioritizestheuseofinputsusedinvaluationtechniquesintothefollowingthreelevels:

• Level1—quotedpricesinactivemarketsforidenticalassetsandliabilities• Level2—inputsotherthanquotedpricesinactivemarketsforidenticalassetsandliabilitiesthatareobservable,

eitherdirectlyorindirectly• Level3—unobservableinputs

WeperformprocedurestoverifythereasonablenessofpricinginformationreceivedfromthirdpartiesforsignificantassetsandliabilitiesclassifiedasLevel2.

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Thefollowingtabledelineatesassetsandliabilitiesthataremeasuredatfairvalueonarecurringbasis:

December31,2020 December31,2019

(inthousands) Total Level1 Level2 Level3 Total Level1 Level2 Level3

Assets:

Deferredcompensationtrusts(1) $ 9,626 $ 9,626 $ — $ — $ 7,719 $ 7,719 $ — $ —

Derivativeassets(2)

Foreigncurrency 22,667 — 22,667 — 7,167 — 7,167 —

Commodity 806 — 806 — 46 — 46 —

Liabilities:

Derivativeliabilities(2)

Foreigncurrency $ 2,571 $ — $ 2,571 $ — $ 6,561 $ — $ 6,561 $ —

Commodity 5,059 — 5,059 — 1,247 — 1,247 —

(1) Consistsofregisteredmoneymarketfundsandanequityindexfund.Theseinvestments,whicharetradingsecurities,representthenetassetvalueasofthecloseofbusinessattheendoftheperiodbasedonthelasttradeorofficialcloseofanactivemarketorexchange.

(2) Foreigncurrencyandcommodityderivativesareestimatedusingpricingmodelswithmarket-basedinputs,whichtakeintoaccountthepresentvalueofestimatedfuturecashflows.

During2018,proceedsfromsalesandmaturitiesofavailable-for-salesecuritieswere$175million.Therewerenosalesormaturitiesofavailable-for-salesecuritiesduring2020and2019.

Wehavemeasuredassetsandliabilitiesheldforsaleandcertainotherimpairedassetsatfairvalueonanonrecurringbasis.

Thefollowingsummarizesinformationaboutourfinancialinstrumentsthatarenotrequiredtobemeasuredatfairvalue:

December31,2020 December31,2019

(inthousands)FairValueHierarchy CarryingValue FairValue CarryingValue FairValue

Assets:

Cash(1) Level1 $ 1,180,024 $ 1,180,024 $ 1,014,138 $ 1,014,138

Cashequivalents(2) Level2 1,018,757 1,018,757 983,061 983,061

Marketablesecurities,current(2) Level2 23,345 23,345 7,262 7,262

Notesreceivable,includingnoncurrentportion(3) Level3 38,295 38,295 28,117 28,117

Liabilities:

2023SeniorNotes(4) Level2 $ 609,764 $ 578,554 $ 557,185 $ 562,399

2024SeniorNotes(4) Level2 496,200 494,045 495,240 510,145

2028SeniorNotes(4) Level2 595,134 599,220 594,502 609,918

Otherborrowings,includingnoncurrentportion(5) Level2 34,350 34,350 43,539 43,539

_______________________________________________________________________________

(1) Cashconsistsofbankdeposits.Carryingamountsapproximatefairvalue.

(2) Thecarryingamountsofthesetimedepositsapproximatefairvaluebecauseoftheshort-termmaturityoftheseinstruments.Amortizedcostisnotmateriallydifferentfromthefairvalue.

(3) Notesreceivablearecarriedatnetrealizablevaluewhichapproximatesfairvalue.Factorsconsideredindeterminingthefairvalueincludethecreditworthinessoftheborrower,currentinterestrates,thetermofthenoteandanycollateralpledgedassecurity.Notesreceivableareperiodicallyassessedforimpairment.

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(4) ThefairvalueoftheSeniorNoteswasestimatedbasedonquotedmarketpricesandLevel2inputs.

(5) Otherborrowingsprimarilyrepresentbankloansandotherfinancingarrangementswhichprimarilymaturewithinoneyear.Thecarryingamountofborrowingsunderthesearrangementsapproximatesfairvaluebecauseoftheshort-termmaturity.

16. GoodwillandIntangibleAssets

Asdiscussedabove,weperformedinterimimpairmenttestingofourgoodwillandintangibleassetsinthefirstquarterof2020duetotheimpactsofCOVID-19andthedeclineinoilprices.Werecognizedimpairmentexpenseof$169millionongoodwillassociatedwithDiversifiedServicesand$27milliononintangiblecustomerrelationshipsassociatedwithStork.Noadditionalimpairmentongoodwillorintangibleassetswasrecognizedduringtheremainderof2020.During2019,werecognizedimpairmentexpenseof$34milliononintangiblecustomerrelationshipsassociatedwithStork.

Thefollowingtableprovidesasummaryofeachmajorintangibleassetclass:

December31,2020 December31,2019

WeightedAverageLife(inthousands)

GrossCarryingAmount

AccumulatedAmortization

NetBookValue

GrossCarryingAmount

AccumulatedAmortization

NetBookValue

Customerrelationships(finite-lived) $ — $ — $ — $ 31,894 $ (451) $ 31,443 8

Tradenames(finite-lived) 9,169 (4,844) 4,325 8,388 (3,460) 4,928 13

Tradenames(indefinite-lived) 53,411 — 53,411 49,789 — 49,789 —

In-processresearchanddevelopment(indefinite-lived) 16,900 — 16,900 16,900 — 16,900 —

Other(finite-lived) 10,742 (7,805) 2,937 10,399 (6,919) 3,480 10

Totalintangibleassets(1) $ 90,222 $ (12,649) $ 77,573 $117,370 $ (10,830) $106,540

(1) Theaggregateamortizationexpenseforintangibleassetswithfinitelivesisexpectedtobe$2millionduring2021and$1millionduring2022,2023,2024and2025.

17. Property,PlantandEquipment

Property,plantandequipmentisasfollows:

December31,(costinthousands) 2020 2019

Land $ 52,424 $ 50,129

Buildings 299,560 279,901

Buildingandleaseholdimprovements 153,333 155,917

Machineryandequipment 927,075 875,581

Furnitureandfixtures 144,667 133,573

Constructioninprogress 21,250 63,814

1,598,309 1,558,915

Lessaccumulateddepreciation (1,037,225) (964,089)

Netproperty,plantandequipment $ 561,084 $ 594,826

18. Stock-BasedCompensation

EquityAwards

Stock-basedcompensation,whichisgenerallyrecognizedonastraight-linebasis,totaled$22million,$36millionand$43millionduring2020,2019and2018,respectively.Werecognizedtaxbenefitsof$5million,$8millionand$10millionrelatedtostock-basedcompensationduring2020,2019and2018,respectively.

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ThefollowingtablesummarizesRSU,restrictedstockandstockoptionactivity:

RSUorRestrictedStock StockOptions

Number

WeightedAverage

GrantDateFairValuePerShare Number

WeightedAverage

ExercisePricePerShare

OutstandingasofDecember31,2017 933,464 $51.85 5,069,956 $60.08

Granted 603,111 57.88 33,615 58.15

Forfeitedorexpired (38,365) 54.07 (352,624) 64.64

Vested/exercised (513,078) 51.58 (161,562) 44.92

OutstandingasofDecember31,2018 985,132 $53.78 4,589,385 $60.25

Granted 1,356,303 32.68 1,192,108 22.47

Forfeitedorexpired (173,604) 39.57 (351,885) 60.56

Vested/exercised (507,520) 47.72 (48,131) 30.46

OutstandingasofDecember31,2019 1,660,311 $39.88 5,381,477 $52.13

Granted 1,355,975 10.30 975,290 11.06

Forfeitedorexpired (114,352) 33.74 (603,835) 59.46

Vested/exercised (643,340) 42.23 — —

OutstandingasofDecember31,2020 2,258,594 $21.76 5,752,932 $44.40

OptionsexercisableasofDecember31,2020 3,784,647 $58.80

Remainingunvestedoptionsoutstandingandexpectedtovest 1,948,602 $16.72

Ourstock-basedplansprovidethatRSUsandrestrictedstockmaynotbesoldortransferreduntilservice-basedrestrictionshavelapsedandanyperformanceobjectiveshavebeenattained.Generally,uponterminationofemployment,RSUsandrestrictedstockwhichhavenotvestedareforfeited.RSUsgrantedtoexecutivesin2020,2019and2018generallyvestratablyover3years.RSUsgrantedtooneexecutivein2020vestover5years.RSUsgrantedtodirectorsin2020,2019and2018vestedupongrant.RSUsawardedtodirectorsin2019and2018(aswellasoneRSUawardtoadirectorin2020)aresubjecttoapost-vestholdingperiodof3years.During2020,2019and2018,compensationexpenserelatedtoRSUsof$17million,$32millionand$30million,respectively,wasincludedincorporateG&A.ThefairvalueofRSUsthatvestedduring2020,2019and2018was$5million,$14millionand$28million,respectively.ThebalanceofunamortizedRSUexpenseasofDecember31,2020was$10million,whichisexpectedtoberecognizedoveraweighted-averageperiodof1.4years.

Theexercisepriceofoptionsrepresentstheclosingpriceofourcommonstockonthedateofgrant.Theoptionsgrantedin2020,2019and2018generallyvestover3yearsandexpire10yearsafterthegrantdate.Optionsgrantedtooneexecutivein2020vestover5years.Stockoptionexpenseduring2020,2019and2018includedincorporateG&Atotaled$5million,$4millionand$4million,respectively.Theaggregateintrinsicvalueofstockoptionsexercisedduring2019and2018was$0.3millionand$2million,respectively.Therewerenostockoptionexercisesduring2020.ThebalanceofunamortizedstockoptionexpenseasofDecember31,2020was$6million,whichisexpectedtoberecognizedoveraweighted-averageperiodof2.2years.

Thegrantdatefairvalueofoptionsandothersignificantassumptionsfollow:

January1-November30,

2020December31,

2020

January1-September30,

2019

October1-December31,

2019 2018

Weightedaveragegrantdatefairvalue $4.59 $9.05 $7.99 $6.93 $14.87

Expectedlifeofoptions(inyears) 4.6 7.2 5.6 5.4 5.3

Risk-freeinterestrate 0.4% 0.5% 2.6% 1.7% 2.7%

Expectedvolatility 64.9% 60.8% 33.3% 46.6% 28.2%

Expectedannualdividendpershare $0.00 $0.00 $0.84 $0.40 $0.84

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ThecomputationoftheexpectedvolatilityassumptionusedintheBlack-Scholescalculationsisbasedona50/50blendofhistoricalandimpliedvolatility.

InformationrelatedtooptionsoutstandingasofDecember31,2020follows:

OptionsOutstanding OptionsExercisable

RangeofExercisePricesNumber

Outstanding

WeightedAverageRemainingContractualLife(InYears)

WeightedAverageExercisePrice

PerShareNumber

Exercisable

WeightedAverageRemainingContractualLife(InYears)

WeightedAverage

ExercisePricePerShare

$8.81-$29.50 2,088,027 9.2 $ 17.27 130,947 8.4 $ 29.03

$46.07-$62.50 3,054,457 4.4 56.48 3,043,252 4.4 56.47

$70.76-$79.19 610,448 2.3 76.77 610,448 2.3 76.77

5,752,932 5.9 $ 44.40 3,784,647 4.2 $ 58.80

AsofDecember31,2020,optionsoutstandinghadanaggregateintrinsicvalueof$5million,andtherewasnointrinsicvalueforoptionsexercisable.

During2020,2019and2018,performance-basedawardunitstotaling1,156,365;350,532;and206,598,respectively,wereawardedtoSection16officers.Theseawardsgenerallyvestafteraperiodof3yearsandcontainannualperformanceconditionsforeachofthe3yearsofthevestingperiod.UnderGAAP,performance-basedawardsarenotdeemedgranteduntiltheperformancetargetshavebeenestablished.Theperformancetargetsforeachyeararegenerallyestablishedinthefirstquarter.Accordingly,onlyone-thirdoftheunitsawardedinanygivenyeararedeemedtobegrantedeachyearofthe3yearvestingperiods.During2020,thefollowingunitsweregranted:

Performance-basedAward

UnitsGrantedin2020

WeightedAverage

GrantDateFairValuePerShare

2020PerformanceAwardPlan 385,455 $9.05

2019PerformanceAwardPlan 116,844 $9.77

2018PerformanceAwardPlan 68,866 $10.75

Forawardsgrantedunderthe2020,2019and2018performanceawardplans,thenumberofunitsareadjustedattheendofeachperformanceperiodbasedonachievementofcertainperformancetargetsandmarketconditions,asdefinedintheawardagreements.

Compensationexpenseof$1millionand$9millionrelatedtoperformance-basedawardunitswasincludedincorporateG&Ain2019and2018,respectively.Compensationexpenserelatedtoperformance-basedawardunitsin2020wasimmaterial.Thebalanceofunamortizedcompensationexpenseassociatedwithperformance-basedawardunitsasofDecember31,2020waslessthan$0.1million,whichisexpectedtoberecognizedoveraweighted-averageperiodof0.2years.

LiabilityAwards

WegrantSGIawardsintheformofstockunits,determinedbydividingthetargetamountbytheclosingpriceofourcommonstockatthegrantdate.Eachstockunitrepresentstherighttoreceivecashequaltothevalueofoneshareuponsettlement.SGIawardsgrantedtoexecutivesvestandbecomepayableatarateofone-thirdofthetotalawardeachyear.Compensationexpenseof$25million,$6millionand$6millionrelatedtoSGIawardswasincludedincorporateG&Ain2020,2019and2018,respectively.LiabilitiesassociatedwithSGIawardswere$29millionand$8millionasofDecember31,2020and2019,respectively.

During2020,2019and2018,performance-basedawardswereawardedtonon-Section16executivesandwillbesettledincash.Compensationexpenseof$3million,$8millionand$10millionrelatedtotheseperformance-basedawardswasincludedincorporateG&Ain2020,2019and2018,respectively.Liabilitiesassociatedwiththeseawardswere$16millionand$14millionasofDecember31,2020and2019,respectively.

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19. RetirementPlans

DCPlans

DomesticandinternationalDCplansareavailabletoeligiblesalariedandcraftemployees.CompanycontributionstoDCplansarebasedonanemployee'seligiblecompensationandparticipationrate.Werecognizedexpenseof$130million,$115millionand$150millionassociatedwithcontributionstoourDCplansduring2020,2019and2018,respectively.

DBPlans

CertainDBplansareavailabletoeligibleinternationalsalariedemployees.ContributionstoDBplansareatleasttheminimumamountsrequiredbyapplicableregulations.Benefitpaymentsundertheseplansaregenerallybaseduponlengthofserviceand/orqualifyingcompensation.

NetperiodicpensionexpenseforourDBPlansincludedthefollowingcomponents:

YearEndedDecember31,

(inthousands) 2020 2019 2018

Servicecost $ 18,129 $ 15,750 $ 17,999

Interestcost 9,899 19,617 21,820

Expectedreturnonassets (26,304) (32,645) (38,064)

Amortizationofpriorservicecredit (903) (886) (935)

Recognizednetactuarialloss 5,806 10,303 8,368

(Gain)lossonsettlement (406) 137,898 21,900

Netperiodicpensionexpense $ 6,221 $ 150,037 $ 31,088

Theservicecostcomponentofnetperiodicpensionexpenseispresentedin“Costofrevenue”andtheothercomponentsofnetperiodicpensionexpensearepresentedin“CorporateG&A”and"(Gain)lossonpensionsettlement".

UKPlan

In2018,weexecutedabuy-inpolicycontractwithaninsurancecompanytofullyinsurethebenefitsoftheDBplanintheUnitedKingdom("UKplan").TheUKplanwasterminatedinDecember2019andmovedfrom"buy-in"to"buy-out"status,atwhichpointtheremainingbenefitobligationsweretransferredtotheinsurerandwewererelievedofanyfurtherobligation.During2019,werecordedalossonpensionsettlementof$138million,whichconsistedprimarilyofunrecognizedactuariallossesincludedinAOCI.Thesettlementoftheplandidnotimpactourcashposition.

During2018,lump-sumdistributionstoparticipantsoftheUKplanexceededthesumoftheserviceandinterestcostcomponentsofnetperiodicpensioncost.Asaresult,werecordedalossonpartialpensionsettlementof$22million.

DBPlanAssumptions

TherangesofassumptionsindicatedbelowcoverDBplansintheNetherlands,Germany,thePhilippinesandtheUK(2018only)andarebasedontheeconomicenvironmentineachhostcountryattheendofeachreportingperiod.ThediscountratesfortheDBplansweredeterminedprimarilybasedonahypotheticalyieldcurvedevelopedfromtheyieldsonhighqualitycorporateandgovernmentbondswithdurationsconsistentwiththepensionobligationsinthosecountries.Theexpectedlong-termrateofreturnonassetassumptionsutilizinghistoricalreturns,correlationsandinvestmentmanagerforecastsareestablishedforallrelevantassetclassesincludinginternationalequitiesandgovernment,corporateandotherdebtsecurities.

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December31,

2020 2019 2018

Fordeterminingprojectedbenefitobligation("PBO")atyear-end:

Discountrates 0.80-3.50% 1.20-4.75% 1.80-7.25%

Ratesofincreaseincompensationlevels 2.25-6.00% 2.25-6.00% 2.25-7.00%

Fordeterminingnetperiodiccostfortheyear:

Discountrates 1.20-4.75% 1.80-7.25% 1.90-5.50%

Ratesofincreaseincompensationlevels 2.25-6.00% 2.25-7.00% 2.25-7.00%

Expectedlong-termratesofreturnonassets 1.20-5.60% 1.80-8.20% 1.90-7.00%

WeevaluatethefundedstatusofeachofourDBplansusingtheaboveassumptionsanddeterminetheappropriatefundinglevelinlightofapplicableregulatoryrequirements,taxdeductibility,reportingconsiderationsandotherfactors.Thefundingstatusoftheplansissensitivetochangesinlong-terminterestratesandreturnsonplanassets,andfundingobligationscouldincreasesubstantiallyifinterestratesfalldramaticallyorreturnsonplanassetsarebelowexpectations.Assumingnochangesincurrentassumptions,weexpecttocontributeupto$12milliontoourDBplansin2021,whichisexpectedtobeinexcessoftheminimumfundingrequired.Ifthediscountrateswerereducedby25basispoints,planliabilitieswouldincreasebyapproximately$57million.

DBPlanAssets

Thefollowingtablesetsforththetargetandactualallocationsofplanassets:

December31,

2020TargetAllocation 2020 2019

Assetcategory:Debtsecurities 55%-65% 63% 60%Equitysecurities 25%-35% 28% 31%Other 0%-10% 9% 9%Total 100% 100%

Ourinvestmentstrategyistomaintainassetallocationsthatappropriatelymanageriskwithinthecontextofseekingadequatereturns.Investmentallocationsaredeterminedbyeachplan'sgoverningbody.Assetallocationsmaybeaffectedbylocalregulations.Long-termallocationguidelinesareestablishedwithatargetrangeallocationforeachassetclass.Short-termdeviationsfromtheseallocationsmayexistfromtimetotimefortacticalinvestmentorstrategicimplementationpurposes.

Investmentsindebtsecuritiesareusedtoprovidestableinvestmentreturnswhileprotectingthefundingstatusoftheplans.Investmentsinequitysecuritiesareutilizedtogeneratelong-termcapitalappreciationtomitigatetheeffectsofincreasesinbenefitobligationsresultingfrominflation,longerlifeexpectancyandsalarygrowth.Whilemostofourplansmayinvestinthecompany'ssecurities,therearenosuchdirectinvestmentsatthepresenttime.

Planassetsincludedinvestmentsincommonorcollectivetrusts("CCTs"),whichofferefficientaccesstodiversifiedinvestmentsacrossvariousassetcategories.TheestimatedfairvalueoftheinvestmentsintheCCTsrepresentsthenetassetvalueofthesharesorunitsofsuchfundsasdeterminedbytheissuer.Aredemptionnoticeperiodofnomorethan30daysisrequiredfortheplanstoredeemcertaininvestmentsinCCTs.Atthepresenttime,therearenootherrestrictionsonhowtheplansmayredeemtheirinvestments.

Debtsecuritiesarecomprisedofcorporatebonds,governmentsecuritiesandCCTswithunderlyinginvestmentsincorporatebonds,governmentandassetbackedsecuritiesandinterestrateswaps.Corporatebondsprimarilyconsistofinvestment-graderatedbondsandnotes,ofwhichnosignificantconcentrationexistsinanyoneratingcategoryorindustry.Governmentsecuritiesincludeinternationalgovernmentbonds,someofwhichareinflation-indexed.Corporatebondsandgovernmentsecuritiesarevaluedbasedonpricingmodels,whicharedeterminedfromacompilationofprimarilyobservablemarketinformation,brokerquotesinnon-activemarketsorsimilarassets.

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EquitysecuritiesspanvariousindustriesandarecomprisedofcommonstocksofinternationalcompaniesaswellasCCTswithunderlyinginvestmentsincommonandpreferredstocks.Publiclytradedcorporateequitysecuritiesarevaluedbasedontheclosingpriceofanactivemarketorexchange.Inactivesecuritiesarevaluedatthelastreportedbidprice.AsofbothDecember31,2020and2019,directinvestmentsinequitysecuritieswereconcentratedininternationalsecurities.

OtherplanassetsincludeguaranteedinvestmentcontractsandCCTs.Guaranteedinvestmentcontractsareinsurancecontractsthatguaranteeaprincipalrepaymentandastatedrateofinterest.Theestimatedfairvalueoftheseinsurancecontracts,whichareLevel3assets,representsthediscountedvalueofguaranteedbenefitpayments.CCTsholdunderlyinginvestmentsprimarilyincommodities.

ThefollowingtabledelineatesthefairvalueoftheplanassetsandliabilitiesofourDBPlans:

December31,2020 December31,2019

(inthousands) Total Level1 Level2 Level3 Total Level1 Level2 Level3

Assets:

Equitysecurities:

Commonstock $ 5,252 $ 5,252 $ — $ — $ 5,346 $ 5,346 $ — $ —

CCTs 230,135 — 230,135 — 215,904 — 215,904 —

Debtsecurities:

Corporatebonds 532 — 532 — 493 — 493 —

Governmentsecurities 12,036 — 12,036 — 12,962 — 12,962 —

CCTs 507,691 — 507,691 — 412,416 — 412,416 —

Other:

Guaranteedinvestmentcontracts 20,588 — — 20,588 19,650 — — 19,650

CCTs 51,679 — 51,679 — 43,302 — 43,302 —

Planassetsmeasuredatfairvalue,net $ 827,913 $ 5,252 $802,073 $ 20,588 $ 710,073 $ 5,346 $685,077 $19,650

Planassetsnotmeasuredatfairvalue,net 1,507 590

Totalplanassets,net $ 829,420 $ 710,663

ThefollowingtablepresentsinformationaboutLevel3fairvaluemeasurements:

(inthousands) 2020 2019

Balanceatbeginningofyear $ 19,650 $ 374,724

Actualreturnonplanassets:

Assetsstillheldatreportingdate 2,092 1,609

Assetssoldduringtheperiod — 49,524

Purchases 343 187

Settlements (1,497) (406,394)

Balanceatendofyear $ 20,588 $ 19,650

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ThefollowingtablepresentsexpectedfuturebenefitpaymentsrelatedtoourDBPlans:

YearEndedDecember31, (inthousands)

2021 $ 21,387

2022 21,461

2023 21,677

2024 22,347

2025 23,065

2026—2030 125,302

ThefollowingtablesetsforththechangeinPBO,planassetsandfundedstatusoftheplans:December31,

(inthousands) 2020 2019

ChangeinPBO:Benefitobligationatbeginningofyear $ 748,784 $ 1,020,633Servicecost 18,129 15,750Interestcost 9,899 19,617Employeecontributions 2,860 3,382Currencytranslation 72,178 (2,794)Actuarial(gain)loss(1) 58,258 117,549Benefitspaid (17,224) (27,362)Divestitures — (1,669)Curtailments (6,574) —Settlements (16,475) (396,322)

PBOatendofyear 869,835 748,784Changeinplanassets:

Planassetsatbeginningofyear 710,663 964,289Actualreturnonplanassets 55,819 153,033Companycontributions 24,752 14,591Employeecontributions 2,860 3,382Currencytranslation 69,025 (948)Benefitspaid (17,224) (27,362)Settlements (16,475) (396,322)

Planassetsatendofyear 829,420 710,663Fundedstatus—(Under)/overfunded $ (40,415)$ (38,121)AmountsrecognizedintheConsolidatedBalanceSheet:

Pensionassetsincludedinotherassets $ — $ 1,349Pensionliabilitiesincludedinotheraccruedliabilities (647) (2,041)Pensionliabilitiesincludedinnoncurrentliabilities (39,768) (37,429)AOCI(pre-tax) $ 161,534 $ 130,619

PlanswithPBOinexcessofplanassets:PBO $ 869,835 $ 78,961Planassets 829,420 39,491

PlanswithABOinexcessofplanassets:ABO $ 45,757 $ 73,865Planassets 20,588 39,491

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(1)Actuariallossesareprimarilyduetoassumptionchanges.

ThetotalABOforallDBPlansasofDecember31,2020and2019was$793millionand$681million,respectively.

MultiemployerPensionPlans

InadditiontoourDBplansdiscussedabove,weparticipateinmultiemployerpensionplansforunionizedconstructionandmaintenancecraftemployees.Companycontributionsarebasedonthehoursworkedbyemployeescoveredundervariouscollectivebargainingagreementsandtotaled$38million,$32millionand$30millionduring2020,2019and2018,respectively.Wearenotawareofanysignificantfutureobligationsorfundingrequirementsrelatedtotheseplansotherthantheongoingcontributionsthatarepaidashoursareworkedbyplanparticipants.Noneofthesemultiemployerpensionplansareindividuallysignificanttous.TheprecedinginformationdoesnotincludeamountsrelatedtobenefitplansapplicabletoemployeesassociatedwithcertaincontractswiththeU.S.DepartmentofEnergybecausewearenotresponsibleforthecurrentorfuturefundingoftheseplans.

20. OtherNoncurrentLiabilities

Wehavedeferredcompensationplansandotherretirementarrangementsforexecutiveswhichgenerallyprovideforpaymentsuponretirement,deathorterminationofemployment.AsofDecember31,2020and2019,theobligationsrelatedtotheseplanstotaled$329millionand$338million,respectively,withinnoncurrentliabilities.Tofundtheseobligations,wehaveestablishednon-qualifiedtrusts,whichareincludedinnoncurrentassets.Thesetrustsholdlifeinsurancepoliciesandmarketablesecurities.Thesetrustswerevaluedat$350millionand$341millionasofDecember31,2020and2019,respectively.Periodicchangesinthevalueofthesetrustinvestments,mostofwhichareunrealized,arerecognizedinearnings,andservetomitigatechangestotheobligationswhicharealsoreflectedinearnings.

Wemaintainappropriatelevelsofinsuranceforbusinessrisks,includingworkerscompensationandgeneralliability.Insurancecoveragescontainvariousretentionamountsforwhichweprovideaccrualsbasedontheaggregateoftheliabilityforreportedclaimsandanactuariallydeterminedestimatedliabilityforclaimsincurredbutnotreported.AsofDecember31,2020and2019,insuranceliabilitiesof$70millionand$80million,respectively,wereincludedinnoncurrentliabilities.

21. Leases

Thefollowingsummarizesleaseexpense:

YearEndedDecember31,2020

YearEndedDecember31,2019

LeaseExpense/(SubleaseIncome)ContinuingOperations

DiscontinuedOperations

ContinuingOperations

DiscontinuedOperations

(inthousands)

Operatingleasecost $ 83,938 $ 792 $ 90,591 $ 809

Financeleasecost

Amortizationofright-of-useassets 651 676 1,394 27

Interestonleaseliabilities 23 117 65 2

Variableleasecost(1) 7,415 — 19,231 —

Short-termleasecost 92,161 24,900 119,737 43,807

Subleaseincome (6,797) (10,278) (8,905) (25,832)

Totalleaseexpense $ 177,391 $ 16,207 $ 222,113 $ 18,813

(1) Primarilyrelatestorentescalationduetocostoflivingindexationandpaymentsforpropertytaxes,insuranceorcommonareamaintenancebasedonactualassessments.

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Informationrelatedtoourright-ofuseassetsandleaseliabilitiesfollows:

December31,2020 December31,2019LeaseAssets/Liabilities BalanceSheetClassification ContOps DiscOps ContOps DiscOps(inthousands)Right-of-useassetsOperatingleaseassets Otherassets $ 215,134 $ — $ 259,169 $ —Operatingleaseassets Currentassetsheldforsale — 2,434 13,123 3,259Financeleaseassets Otherassets 400 — 937 —Financeleaseassets Currentassetsheldforsale — 9,069 — 181Totalright-of-useassets $ 215,534 $ 11,503 $ 273,229 $ 3,440LeaseliabilitiesOperatingleaseliabilities,current Otheraccruedliabilities $ 62,180 $ — $ 65,961 $ —Operatingleaseliabilities,noncurrent Noncurrentliabilities 176,776 — 219,146 —Operatingleaseliabilities Currentliabilitiesheldforsale — 2,434 13,228 3,180Financeleaseliabilities,current Otheraccruedliabilities 114 — 906 —Financeleaseliabilities,noncurrent Noncurrentliabilities — — 8 —Financeleaseliabilities Currentliabilitiesheldforsale — 8,327 — 191Totalleaseliabilities $ 239,070 $ 10,761 $ 299,249 $ 3,371

Supplementalinformationrelatedtoourleasesfollows:

YearEndedDecember31,2020

YearEndedDecember31,2019

ContOps DiscOps ContOps DiscOps(inthousands)Cashpaidforamountsincludedinthemeasurementofleaseliabilities:

Operatingcashflowsfromoperatingleases $ 89,649 $ 780 $ 91,308 $ 787Operatingcashflowsfromfinanceleases 23 117 65 3Financingcashflowsfromfinanceleases 761 1,365 1,547 25

Right-of-useassetsobtainedinexchangefornewoperatingleaseliabilities 20,471 — 96,984 546Right-of-useassetsobtainedinexchangefornewfinanceleaseliabilities — 8,663 — 222Weighted-averageremainingleaseterm-operatingleases 6.1years 4.3years 6.5years 4.8yearsWeighted-averageremainingleaseterm-financeleases 2.1years 5.0years 2.2years 3.5yearsWeighted-averagediscountrate-operatingleases 3.04% 3.47% 3.34% 3.50%Weighted-averagediscountrate-financeleases 3.39% 2.72% 3.38% 2.64%

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Theremainingleasepaymentsunderouroperatingandfinanceleasesfollows:

ContOps DiscOps

YearEndedDecember31,OperatingLeases

FinanceLeases

OperatingLeases

FinanceLeases

(inthousands)2021 $ 68,649 $ 8 $ 654 $ 2,9272022 55,736 55 609 2,9062023 41,029 62 554 1,4362024 28,211 — 482 8212025 20,275 — 324 612Thereafter 47,358 — — —Totalleasepayments $ 261,258 $ 125 $ 2,623 $ 8,702Less:Interest (22,302) (11) (189) (375)Presentvalueofleaseliabilities $ 238,956 $ 114 $ 2,434 $ 8,327

During2018,netrentalexpenseamountedto$360million(including$2millionfromdiscontinuedoperations).

22. DerivativesandHedging

DerivativesDesignatedasHedges

AsofDecember31,2020,wehadtotalgrossnotionalamountsof$749millionofforeigncurrencycontractsoutstanding(primarilyrelatedtotheCanadianDollar,ChineseYuan,BritishPound,Euro,IndianRupeeandPhilippinePeso)thatweredesignatedashedges.Theforeigncurrencycontractsareofvaryingduration,noneofwhichextendbeyondDecember2024.TherewerenocommoditycontractsoutstandingthatweredesignatedashedgesasofDecember31,2020.

Thefairvaluesofderivativesdesignatedashedginginstrumentsfollows:

AssetDerivatives LiabilityDerivatives

(inthousands)BalanceSheet

LocationDecember31,

2020December31,

2019BalanceSheet

LocationDecember31,

2020December31,

2019

Foreigncurrencycontracts Othercurrentassets $ 20,004 $ 2,871 Otheraccruedliabilities $ 4 $ 1,585Commoditycontracts Othercurrentassets — 10 Otheraccruedliabilities — —Foreigncurrencycontracts Otherassets 2,184 3,757 Noncurrentliabilities 25 4,747Total $ 22,188 $ 6,638 $ 29 $ 6,332

Theafter-taxamountofgain(loss)recognizedinOCIandreclassifiedfromAOCIintoearningsassociatedwithderivativeinstrumentsdesignatedascashflowhedgesfollows:

After-TaxAmountofGain(Loss)RecognizedinOCI

After-TaxAmountofGain(Loss)ReclassifiedfromAOCIintoEarnings

CashFlowHedges(inthousands) 2020 2019 2018 LocationofGain(Loss) 2020 2019 2018

Foreigncurrencycontracts $ 19,608 $ 1,043 $ (5,207) Costofrevenue $ 2,382 $ (1,041)$ (4,432)

Commoditycontracts (107) 460 — Costofrevenue (100) 453 —

Interestratecontracts — — — Interestexpense (1,678) (1,049) (1,049)

Total $ 19,501 $ 1,503 $ (5,207) $ 604 $ (1,637)$ (5,481)

DerivativesNotDesignatedasHedges

AsofDecember31,2020,wealsohadtotalgrossnotionalamountsof$228millionofforeigncurrencycontractsand$28millionofcommoditycontractsoutstandingthatwerenotdesignatedashedges.Theforeigncurrencycontractsprimarily

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relatedtocontractobligationsdenominatedinnonfunctionalcurrencies.Thegainsandlossesassociatedwithderivativesnotdesignatedashedgeswerenotmaterialforanyperiodpresented.

23. OtherComprehensiveIncome(Loss)

ThecomponentsofOCIfollow:

YearEndedDecember31,

2020 2019 2018

(inthousands)Before-TaxAmount

Tax(Expense)Benefit

Net-of-TaxAmount

Before-TaxAmount

Tax(Expense)Benefit

Net-of-TaxAmount

Before-TaxAmount

Tax(Expense)Benefit

Net-of-TaxAmount

OCI:

Foreigncurrencytranslationadjustments $ (17,127) $ — $ (17,127) $ 101,096 $ (35,596) $ 65,500 $ (116,775) $ 16,214 $ (100,561)

Ownershipshareofequitymethodinvestees'OCI (21,837) 3,309 (18,528) (15,630) 3,846 (11,784) 12,118 (3,176) 8,942

DBplanadjustments (19,392) — (19,392) 150,427 (44,975) 105,452 (59,920) 7,329 (52,591)

Unrealizedgain(loss)onhedges 23,531 (4,634) 18,897 4,734 (1,594) 3,140 1,490 (1,216) 274

Unrealizedgain(loss)onavailable-for-salesecurities — — — — — — 1,134 (425) 709

TotalOCI (34,825) (1,325) (36,150) 240,627 (78,319) 162,308 (161,953) 18,726 (143,227)

Less:OCIattributabletoNCI 883 — 883 (1,350) — (1,350) (2,239) — (2,239)

OCIattributabletoFluorCorporation $ (35,708) $ (1,325) $ (37,033) $ 241,977 $ (78,319) $ 163,658 $ (159,714) $ 18,726 $ (140,988)

ThechangesinAOCIbalancesfollow:

(inthousands)

ForeignCurrencyTranslation

OwnershipShareof

EquityMethodInvestees'OCI

DBPlans

UnrealizedGain(Loss)onHedges AOCI,Net

AttributabletoFluorCorporation:

BalanceasofDecember31,2019 $ (242,950) $ (35,456) $ (99,197) $ (2,270) $ (379,873)

OCIbeforereclassifications (18,010) (19,076) (22,921) 19,501 (40,506)

AmountsreclassifiedfromAOCI — 548 3,529 (604) 3,473

NetOCI (18,010) (18,528) (19,392) 18,897 (37,033)

BalanceasofDecember31,2020 $ (260,960) $ (53,984) $ (118,589) $ 16,627 $ (416,906)

AttributabletoNCI:

BalanceasofDecember31,2019 $ (5,051) $ — $ — $ — $ (5,051)

OCIbeforereclassifications 883 — — — 883

AmountreclassifiedfromAOCI — — — — —

NetOCI 883 — — — 883

BalanceasofDecember31,2020 $ (4,168) $ — $ — $ — $ (4,168)

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(inthousands)

ForeignCurrencyTranslation

OwnershipShareof

EquityMethodInvestees'OCI

DBPlans

UnrealizedGain(Loss)onHedges AOCI,Net

AttributabletoFluorCorporation:

BalanceasofDecember31,2018 $ (309,800) $ (23,672) $ (204,649) $ (5,410) $ (543,531)

OCIbeforereclassifications 19,957 (12,304) 4,006 1,503 13,162

AmountsreclassifiedfromAOCI 46,893 520 101,446 1,637 150,496

NetOCI 66,850 (11,784) 105,452 3,140 163,658

BalanceasofDecember31,2019 $ (242,950) $ (35,456) $ (99,197) $ (2,270) $ (379,873)

AttributabletoNCI:

BalanceasofDecember31,2018 $ (3,701) $ — $ — $ — $ (3,701)

OCIbeforereclassifications (1,350) — — — (1,350)

AmountreclassifiedfromAOCI — — — — —

NetOCI (1,350) — — — (1,350)

BalanceasofDecember31,2019 $ (5,051) $ — $ — $ — $ (5,051)

(inthousands)

ForeignCurrencyTranslation

OwnershipShareof

EquityMethodInvestees'OCI

DBPlans

UnrealizedGain(Loss)onHedges

UnrealizedGain(Loss)onAvailable-

for-SaleSecurities AOCI,Net

AttributabletoFluorCorporation:

BalanceasofDecember31,2017 $ (211,478) $ (32,614) $ (152,058) $ (5,684) $ (709) $ (402,543)

OCIbeforereclassifications (98,322) 7,986 (77,209) (5,207) — (172,752)

AmountsreclassifiedfromAOCI — 956 24,618 5,481 709 31,764

NetOCI (98,322) 8,942 (52,591) 274 709 (140,988)

BalanceasofDecember31,2018 $ (309,800) $ (23,672) $ (204,649) $ (5,410) $ — $ (543,531)

AttributabletoNCI:

BalanceasofDecember31,2017 $ (1,462) $ — $ — $ — $ — $ (1,462)

OCIbeforereclassifications (2,239) — — — — (2,239)

AmountreclassifiedfromAOCI — — — — — —

NetOCI (2,239) — — — — (2,239)

BalanceasofDecember31,2018 $ (3,701) $ — $ — $ — $ — $ (3,701)

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ThereclassificationsoutofAOCIfollow:

LocationinConsolidatedStatementofOperations

YearEndedDecember31,

(inthousands) 2020 2019 2018

ComponentofAOCI:

ForeigncurrencytranslationadjustmentImpairment,restructuring&otherexitcosts $ — $ (84,286)$ —

Incometaxbenefit Incometaxexpense(benefit) — 37,393 —

Netoftax $ — $ (46,893)$ —

Ownershipshareofequitymethodinvestees'OCI Costofrevenue $ (730)$ (695)$ (1,297)Incometaxbenefit Incometaxexpense(benefit) 182 175 341Netoftax $ (548)$ (520)$ (956)

DBplanadjustments Variousaccounts(1) $ (3,529)$ (146,579)$ (28,730)Incometaxbenefit Incometaxexpense(benefit) — 45,133 4,112Netoftax $ (3,529)$ (101,446)$ (24,618)

Unrealizedgain(loss)onhedges: Commodityandforeigncurrencycontracts Variousaccounts(2) $ 1,837 $ (1,370)$ (6,540)Interestratecontracts Interestexpense (1,678) (1,678) (1,678)

Incometaxbenefit Incometaxexpense(benefit) 445 1,411 2,737Netoftax: $ 604 $ (1,637)$ (5,481)

Unrealizedlossonavailable-for-salesecurities CorporateG&A $ — $ — $ (1,134)Incometaxbenefit Incometaxexpense(benefit) — — 425Netoftax $ — $ — $ (709)

(1) DBplanadjustmentswerereclassifiedto"CorporateG&A"and"Lossonpensionsettlement".

(2) Gainsandlossesoncommodityandforeigncurrencyderivativeswerereclassifiedto"Costofrevenue"and"CorporateG&A".

24.DiscontinuedOperations

WeexpecttocompletethesaleoftheAMECOequipmentbusiness,whichisreportedinDiscOps,withinthefirsthalfof2021.TheassetsandliabilitiesoftheAMECObusinessareclassifiedasheldforsale.During2020,werecognizedimpairmentexpenseof$146million,ofwhich$12millionrelatedtogoodwill,toreducetheAMECOassetstotheirfairvaluelesscosttosell.ThefairvalueoftheAMECOassetsweredeterminedusingacombinationofobservablelevel2inputs,includingindicativeoffersandongoingnegotiationsfortherelatedassets.

InAugust2020,wesoldourAMECOequipmentbusinessinJamaicafor$18millionandrecognizedalossof$1million.TheoperationsoftheAMECObusinessinJamaicawereincludedinDiscOpsthroughthedateofsale.

InAugust2019,wesettledlegalmattersrelatedtoapreviouslydivestedbusiness.Theresultinggainandallassociatedlegalfeeswereincludedin"Other"inthetablesbelow.

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DiscOpsinformationfollows:

YearEndedDecember31,2020 YearEndedDecember31,2019 YearEndedDecember31,2018

(inthousands) AMECO Other Total AMECO Other Total AMECO Other Total

Revenue $ 215,684 $ — $ 215,684 $ 260,276 $ — $ 260,276 $ 253,130 $ — $ 253,130

Costofrevenue 193,583 — 193,583 277,420 — 277,420 222,139 — 222,139

Corporategeneralandadministrativeexpense 234 13,198 13,432 239 (21,152) (20,913) 282 4,792 5,074

Impairmentofassetsheldforsale 145,700 — 145,700 — — — — — —

Interestexpense(income),net 159 — 159 (341) — (341) (354) — (354)

Totalcostandexpenses 339,676 13,198 352,874 277,318 (21,152) 256,166 222,067 4,792 226,859

Earnings(loss)beforetaxesfromDiscOps (123,992) (13,198) (137,190) (17,042) 21,152 4,110 31,063 (4,792) 26,271

Incometaxexpense(benefit) 3,957 — 3,957 (3,940) 4,447 507 6,900 (1,064) 5,836

Netearnings(loss)fromDiscOps $ (127,949) $ (13,198) $ (141,147) $ (13,102) $ 16,705 $ 3,603 $ 24,163 $ (3,728) $ 20,435

Thefollowingsummarizesinformationrelatedtoassetsandliabilitiesclassifiedasheldforsale:

December31,2020 December31,2019

(inthousands) AMECO Other

TotalfromDiscontinuedOperations

OtherAssetsandLiabilitiesfrom

ContinuingOperations Total AMECO Other

TotalfromDiscontinuedOperations

OtherAssetsandLiabilitiesfrom

ContinuingOperations Total

Accountsandnotesreceivable,net $41,988 $10,476 $52,464 $64 $52,528 $69,126 $15,925 $85,051 $17,513 $102,564

Contractassets 2,188 — 2,188 — 2,188 3,497 — 3,497 3,779 7,276

Othercurrentassets 7,098 — 7,098 2,712 9,810 54,116 — 54,116 8,112 62,228

Currentassetsheldforsale 51,274 10,476 61,750 2,776 64,526 126,739 15,925 142,664 29,404 172,068

Property,plantandequipment,net 113,080 — 113,080 41,160 154,240 232,792 — 232,792 64,792 297,584

Goodwill — — — — — 12,338 — 12,338 9,295 21,633

Investments — — — 5,063 5,063 — — — 7,293 7,293

Otherassets 13,788 — 13,788 — 13,788 5,868 — 5,868 12,654 18,522

Noncurrentassetsheldforsale(1) 126,868 — 126,868 46,223 173,091 250,998 — 250,998 94,034 345,032

Totalassetsheldforsale $178,142 $10,476 $188,618 $48,999 $237,617 $377,737 $15,925 $393,662 $123,438 $517,100

Accountspayable $17,355 $ 13 $17,368 $75 $17,443 $24,692 $ — $24,692 $6,702 $31,394

Contractliabilities 125 — 125 10 135 4,466 — 4,466 25 4,491

Accruedsalaries,wagesandbenefits 6,042 — 6,042 98 6,140 8,913 — 8,913 919 9,832

Otheraccruedliabilities 11,780 — 11,780 327 12,107 9,451 — 9,451 11,562 21,013

Currentliabilitiesheldforsale 35,302 13 35,315 510 35,825 47,522 — 47,522 19,208 66,730

Noncurrentliabilitiesheldforsale(1) 9,479 — 9,479 — 9,479 4,272 — 4,272 11,320 15,592

Totalliabilitiesheldforsale $44,781 $13 $44,794 $510 $45,304 $51,794 $ — $51,794 $30,528 $82,322

(1) NoncurrentassetsandliabilitiesheldforsalewereclassifiedascurrentasweexpecttocompletethesaleoftheAMECObusinesseswithinthefirsthalfof2021.

Ourcashflowinformationfor2020,2019and2018includedthefollowingactivitiesrelatedtoAMECODiscOps:

YearEndedDecember31,

(inthousands) 2020 2019 2018

Impairmentexpense-DiscOps $ 145,700 $ — $ —

Depreciationoffixedassets — 44,295 72,137

Amortizationofstock-basedawards 56 123 103

Capitalexpenditures (23,430) (68,048) (40,856)

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25. QuarterlyFinancialData(Unaudited)

(inmillions,exceptpershareamounts)First

QuarterSecondQuarter

ThirdQuarter

FourthQuarter

YearendedDecember31,2020

Revenue $ 4,118.6 $4,091.0 $ 3,803.2 $ 3,655.7

Costofrevenue 4,057.2 4,023.5 3,669.5 3,533.0

Earnings(loss)fromContOpsbeforetaxes (228.4) 10.9 52.2 (41.7)

Netearnings(loss)fromContOps (161.6) (20.2) 23.4 (67.2)

AmountsattributabletoFluorCorporation:

Netearnings(loss)fromContOps (171.1) (26.9) 19.1 (115.0)

Netearnings(loss)fromDiscOps (94.9) 1.9 0.2 (48.3)

Netearnings(loss) $ (266.0) $ (25.0) $ 19.3 $ (163.3)

Basicearnings(loss)pershareattributabletoFluorCorporation:

Netearnings(loss)fromContOps $ (1.22) $ (0.19) $ 0.14 $ (0.82)

Netearnings(loss)fromDiscOps (0.68) 0.01 — (0.34)

Netearnings(loss) $ (1.90) $ (0.18) $ 0.14 $ (1.16)

Dilutedearnings(loss)pershareattributabletoFluorCorporation:

Netearnings(loss)fromContOps $ (1.22) $ (0.19) $ 0.14 $ (0.82)

Netearnings(loss)fromDiscOps (0.68) 0.01 — (0.34)

Netearnings(loss) $ (1.90) $ (0.18) $ 0.14 $ (1.16)

(inmillions,exceptpershareamounts)First

QuarterSecondQuarter

ThirdQuarter

FourthQuarter

YearendedDecember31,2019

Revenue $ 4,133.6 $4,146.4 $ 4,628.6 $ 4,408.7

Costofrevenue 4,070.9 4,577.6 4,537.3 4,348.0

Earnings(loss)fromContOpsbeforetaxes (29.0) (511.9) (258.8) (271.8)

Netearnings(loss)fromContOps (44.2) (436.1) (754.1) (322.3)

AmountsattributabletoFluorCorporation:

Netearnings(loss)fromContOps (68.1) (397.4) (766.6) (293.7)

Netearnings(loss)fromDiscOps (0.8) (16.6) 23.5 (2.5)

Netearnings(loss) $ (68.9) $ (414.0) $ (743.1) $ (296.2)

Basicearnings(loss)pershareattributabletoFluorCorporation:

Netearnings(loss)fromContOps $ (0.49) $ (2.84) $ (5.47) $ (2.10)

Netearnings(loss)fromDiscOps — (0.11) 0.17 (0.01)

Netearnings(loss) $ (0.49) $ (2.95) $ (5.30) $ (2.11)

Dilutedearnings(loss)pershareattributabletoFluorCorporation:

Netearnings(loss)fromContOps $ (0.49) $ (2.84) $ (5.47) $ (2.10)

Netearnings(loss)fromDiscOps — (0.11) 0.17 (0.01)

Netearnings(loss) $ (0.49) $ (2.95) $ (5.30) $ (2.11)

TableofContents

FLUORCORPORATION

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

F-47

Page 107: Form 10-K FLUOR CORPORATION

Significantitemsaffecting2020earningsincludedthefollowing:

• Chargestotaling$298millionforimpairmentsofgoodwill,intangibleassets,investmentsandotherassetsduringthefirstquarterof2020.

• Chargestotaling$55millionforcurrentexpectedcreditlossesassociatedwithEnergy&Chemicalsclientsduringthefirstquarterof2020.

• Chargestotaling$52millionforprojectpositionsduetoCOVID-19relatedscheduledelaysandassociatedcostgrowthduringthefirstquarterof2020.

• Chargestotaling$100millionand$46millionforimpairmentsofassetsheldforsale(includedinDiscOps)duringthefirstandfourthquartersof2020,respectively.

Significantitemsaffecting2019earningsincludedthefollowing:

• Chargestotaling$31millionfromtheresolutionofcertainclose-outmatterswithacustomerduringthefirstquarterof2019.

• Chargestotaling$61million,$179millionand$20millionfromlatedesignchanges,schedule-drivencostgrowthincludingliquidateddamages,andsubcontractornegotiationsonalump-sum,offshoreprojectduringthefirst,secondandfourthquartersof2019,respectively.

• Chargestotaling$26millionand$109million,includingthesettlementofclientdisputes,aswellascostgrowthrelatedtocertainclose-outmatters,onthreelump-sum,gas-firedpowerplantprojectsduringthefirstandsecondquartersof2019,respectively.

• Chargestotaling$26millionfromthewrite-offofpre-contractcostsduringthesecondquarterof2019.

• Chargestotaling$87millionfromschedule-drivencostgrowthandclientandsubcontractornegotiationsontwolump-sum,downstreamprojectsandscopereductionsonalargeupstreamprojectduringthesecondquarterof2019.

• Chargestotaling$55millionand$78millionfromlateengineeringchangesandschedule-drivencostgrowth,aswellasnegotiationswithclientsandsubcontractorsonpendingchangeorders,forseveralinfrastructureprojectsduringthesecondandfourthquartersof2019,respectively.

• Chargestotaling$4million,$57millionand$21millionforlateengineeringchangesandcostgrowthrelatedtotheRadfordprojectduringthefirst,secondandthirdquartersof2019,respectively.

• Gainsof$13millionand$18millionresultingfromthefavorableresolutionofalongstandingcustomerdisputeduringthesecondandthirdquartersof2019,respectively.

• Chargestotaling$59millionforcostgrowthontheWarrenprojectduringthethirdquarterof2019.

• Chargestotaling$546millionand$185millionrelatedtoestablishingavaluationallowanceagainstdeferredtaxassetsduringthethirdandfourthquartersof2019,respectively.

• Impairment,restructuringandotherexitcoststotaling$27million,$27million,$334millionand$145millionduringthefirst,second,thirdandfourthquartersof2019,respectively.

• Lossonpensionsettlementof$138millionduringthefourthquarterof2019.

• Gainof$89millionrelatedtothesettlementagreementwithWestinghouseduringthefourthquarterof2019.

TableofContents

FLUORCORPORATION

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

F-48


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