BUILDING - Fluor Corporation

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F L U O R C O R P O R AT I O N ( N Y S E : F L R ) is building a better future by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 100 years.

F O R W A R D - L O O K I N G S TAT E M E N T S This annual report contains statements that may constitute forward-looking statements involving risks and uncertainties, including statements about market outlook, new awards, backlog levels, competition, and the implementation of strategic initiatives. These forward-looking statements reflect the Company’s current analysis of existing information as of the date of this annual report, and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, the Company’s actual results may differ materially from our expectations or projections. Additional information concerning factors that may influence Fluor’s results can be found in the Form 10-K that follows this annual report.

TABLE OF CONTENTS

0206101214151617

A LETTER FROM THE EXECUTIVE CHAIRMAN

A LETTER FROM THE CHIEF EXECUTIVE OFFICER

HIGH PERFORMANCE CULTURE WITH PURPOSE

INNOVATION LEADERS

CORPORATE MANAGEMENT

BOARD OF DIRECTORS

STRATEGIC PRIORITIES

FORM 10-K

ON THE FRONT COVER:

BHP SPENCE COPPER CONCENTRATOR PROJECT, NORTHERN CHILE. When complete, this project will deliver 95,000 tons per day of copper concentrate and associated works. Copper production is an important part of the world’s transition to a lower carbon future, and Fluor views projects like this one as an important part of our strategy to be a part of the world’s energy transition.

F L U O R I S B U I L D I N G A B E T T E R F U T U R E

B Y B E C O M I N G T H E P R E E M I N E N T

L E A D E R I N P R O F E S S I O N A L A N D

T E C H N I C A L S O L U T I O N S

E N G I N E E R I N G T E C H N O L O G Y C O N S T R U C T I O N M A N A G E M E N T

S U P P L Y C H A I N G L O B A L P L A T F O R M P R O G R A M M A N A G E M E N T

2 0 2 0 A N N U A L R E P O R T

2 2 FLUOR 2020 ANNUAL REPORT

The challenges of 2020 were in many ways unprecedented—not only for Fluor and our unique situation, but for all of us. The pandemic’s disruption of world economies in general, and the oil and gas industry, in particular, along with unpredictable political and social events, ever-changing technologies, and evolving approaches in the market made uncertainty the only certain thing. This isn’t the first time that Fluor has survived tough times and repositioned itself to thrive.

By virtue of my long career with this company, I can tell you that we have been challenged before and prevailed each time—1982’s oil market crash being one of those times—and I know that we will prevail again. Addressing adversity and emerging stronger and smarter has defined our success as a company in the past, and I have no doubt it will do so again in the future.

Last year, our board’s investigation and delay in the release of our financials was a humbling but ultimately valuable experience. Carlos Hernandez and I, in partnership with every member of our board of directors, spent much of 2019 and all of 2020 taking a hard look at this company to improve our governance, our oversight, and our effectiveness. Soon after taking our positions in May of 2019, Carlos and I initiated a strategic review and quickly realized that we were facing significant project losses. We also experienced a credit downgrade during that time. We knew that these challenges would put serious pressure on the company’s liquidity. As a result, our work was focused mainly on two points: cash generation and reducing risk in our portfolio.

Although we had the misfortune of working through this process with the added uncertainties of COVID-19, we made significant progress, including reducing overhead expenses and continuing the process of divesting the AMECO equipment business. During 2020, we added additional rigor to our contract pursuit criteria, focused on prospects where we were better able to allocate risk, and accelerated the pace of change within the organization to address the reality of the world today.

After the losses of 2019, we spent much of 2020 retooling the transactional mindset that put us in that tough position in the first place. With this new conviction, we negotiated and successfully won reimbursable cost contracts that allow us to add value and get paid for it. The clients who know us best understand that no other company can do what we do at our level of scale and complexity. These clients trust us to get the job done right, and they know that when we deliver a well-executed project for a fair price, everyone succeeds. Honest and open communication and collaboration have been paramount throughout 2020, and we will

EXECUTIVE CHAIRMANFor over a century, Fluor has built a legacy of unsurpassed expertise and executional excellence. We have learned much from our successes but, as every good engineer understands, what you learn from your challenges can be even more important.

A L E T T E R F R O M T H E

Alan Boeckmann Executive Chairman

BUILDING A BETTER FUTURE 33

11%Government

Diversified Services

9%

43%Energy & Chemicals

16%

Infrastructure& Power

21%

Mining& Industrial

Clients trust us to get the job done right, and they know that when we deliver a well-executed

project for a fair price, everyone succeeds.

- Alan Boeckmann - Executive Chairman

BACKLOG BY SEGMENTCONSOLIDATED BACKLOG BY REGION

6%Asia Pacific& Australia

37%United States

16%

Americas(excluding U.S.)

41%

Europe, Africa& Middle East

go forward with a dedication to transparency and accountability across the organization. Our biggest single change is the shift back to an executional mindset rooted in our engineering DNA. More than any one factor, that shift soundly positions Fluor as an indispensable player in our industry.

Every job starts with people who want to create something—usually something ambitious, complex, and innovative. We are the builders who give clients what they need to achieve their goals. At our core, that’s what we are—builders—not only of the world’s toughest projects but also of careers, lifestyles, client relationships, and economic value.

Perhaps the most important thing Fluor has ever built is its culture. Over the past two years that culture was tested dramatically, and I’m proud to report that it withstood that test. Our culture is strong, and I would argue that it’s our most valuable asset.

BHP SOUTH FLANK IRON ORE PROJECTPILBARA REGION, WA, AUSTRALIA

LNG CANADA EXPORT FACILITYKITIMAT, BRITISH COLUMBIA, CANADA


NOVO NORDISK API MANUFACTURING FACILITYCLAYTON, NC, U.S.

FLUOR’SCULTURE

Fluor’s culture is based on a deep sense of ethics and holding one another to the highest standards. It’s grounded in a desire to get things done right and in a safe way. It’s also about developing people. That’s why we have thought leaders throughout the company and around the world who have spent their careers at Fluor doing incredible things credibly. You will read about some of those renowned innovators later in this report.

I believe our culture and the resilience of our employees enabled us to adapt in 2020 to the unanticipated impact of COVID-19 and move forward. Beginning in mid-March, the majority of our office employees abruptly transitioned to a remote working environment through the tireless efforts of our information technology professionals. In the latter half of 2020, we began to open our offices on a limited basis, adhering to social distancing guidelines and safety measures. For our projects and staff in the field, we implemented safety and work protocols to help prevent the spread of the virus. While we did have a few clients initially request reductions in field staff, many of those adjustments were


QUELLAVECO OPEN PIT COPPER MINENEAR MOQUEGUA, PERU

Our culture is strong, and I would argue that it’s our most valuable asset.

- Alan Boeckmann - Executive Chairman

Alan Boeckmann Executive ChairmanMarch 8, 2021

temporary, and most of our projects continued through the end of the year fully staffed. I’d like to thank our board of directors for asking the hard questions, and Carlos Hernandez and his team for finding the honest answers, creating the framework to build a better Fluor, and establishing a solid foundation for future success.

Now, with David Constable at the helm, we have the perfect combination of a seasoned insider with an outsider’s perspective. David spent the past 10 years away from our company, serving as CEO of one of our major clients, Sasol Ltd., and as a member of the boards of ABB Ltd., Rio Tinto Ltd., and Anadarko Petroleum Corp. He has gained valuable experience and insight that will guide and drive Fluor’s future. When I was CEO, David was without a doubt the best in the business at risk assessment and risk management. He comes back to us with that expertise honed and with valuable insight gained from his more recent experiences.

In closing, I believe we’ve done the work to support the future growth of the company. We are determined to get our capital structure back in line, deleveraging and freeing up operating cash flow to fuel our strategy. We have turned the page on 2020 and are ready to capitalize on the opportunities ahead.

On behalf of our board of directors, thank you for your confidence and support.

6 FLUOR 2020 ANNUAL REPORT

It’s a time of new beginnings for Fluor, and I hope that all of our stakeholders will share our excitement and continue to a�ord us their support.

B U I L D I N G A B E T T E R F U T U R E

Our high performing people, trusted business partners, loyal customers, and suppliers—together with our strong project pipeline and long-term strategic vision—will ensure that we deliver sustainable value in the years ahead. In all that we do, we remain commi�ed to act responsibly and to continuously improve as we take great strides forward.

Over the past 18 months, an incredible amount of work has been done to restore transparency, trust, and teamwork at Fluor. As a result, we are well-positioned to enter our next chapter with the goal of becoming the preeminent leader of professional and technical solutions while further solidifying our global leadership brand in the engineering and construction industry.

I’m thrilled to be back at the company that largely shaped my career, and I’m 100 percent commi�ed to our new strategy—Building a Be�er Future. As a newly graduated engineer joining the company back in 1982, I quickly found that Fluor had the most talented people in the industry. �e execution excellence mindset and can-do-a�itude that I learned at Fluor permeated my career as I progressed from engineering to project controls, construction, sales and business line leadership, and a group presidency role. I am returning to Fluor a�er serving as CEO for one of our major clients, Sasol Ltd., from 2011 to 2016. In that role,I gained a deeper understanding of how our clients think about capital allocation programs for growing and maintaining their complex businesses. Subsequently, as a member of the boards of ABB Ltd., Rio Tinto Plc/Ltd., and Anadarko Petroleum Corp., I was fortunate to gain additional knowledge and insights about our clients and key suppliers. I learned a lot during my time away, and I’m keen to bring that knowledge and many key relationships back to Fluor.

CHIEF EXECUTIVE OFFICERA L E T T E R F R O M T H E

David ConstableChief Executive O�cer

We remain commi�ed to act responsibly and to continuously improve

as we take great strides forward.

- David Constable - Chief Executive O�cer


FINANCIAL RESULTS

Before talking about some of the changes we have already made to address a shifting marketplace, I’d like to share our 2020 financial results. We closed 2020 with a cash and marketable securities balance of $2.2 billion, reflecting Fluor’s commitment to balance sheet strength and resilience in spite of headwinds from certain challenged projects and a global pandemic. Due to the uncertainty of COVID-19, the board made the determination to suspend our dividend, allowing Fluor to focus on cash preservation in light of reduced client spending.

For 2020, new awards of $9 billion reflected our clients’ capital spending delays due to the COVID-19 pandemic. Our results for the year were a net loss from continuing operations attributable to Fluor of $294 million, or $2.09 per share. Consolidated segment profit for the year was $317 million, compared to a loss of $186 million in 2019. Consolidated continuing operations for the year included noncash impairments and charges of approximately $358 million to reflect the impact of weak commodity prices and COVID-19. Operating cash flow in 2020 was $186 million, compared to $219 million in 2019.

Fluor is committed to growing its bottom line over the coming years, both through operating margin improvement and continued overhead reductions.

GLOBAL MEGATRENDSSince returning to Fluor, my priority has been to actively listen to our stakeholders. I have listened to our team members across our global footprint in order to learn more about how we can be successful, to our clients so we can better understand why they choose Fluor over the competition, and to our shareholders for their perspective on the steps we can take to better drive value.

Based on those learnings, I’ve worked closely with the management team and the board to develop our strategic path forward. There are four global megatrends enabling positive growth potential for Fluor.

CASH & MARKETABLE SECURITIES(DOLLARS IN BILLIONS)

2.22

2.00

1.982018

2019

2020

CONSOLIDATED NEW AWARDS & BACKLOG*

BACKLOGNEW AWARDS

40.1

27.7

25.6

9.0

31.9

12.6

2018

2019

2020

*Dollars in billions, from continuing operations.


FOUR TRANSFORMATIVE GLOBAL FORCEST H A T W I L L S H A P E A N D D E F I N E T H E F U T U R E :

W E ’ V E I D E N T I F I E D

Industry 4.0 refers to technological innovation connecting the physical, digital, and biological worlds in ways that create new opportunities requiring companies to rethink how to organize and create value. This will drive the need for more data centers, improve project delivery by applying data collection and analysis techniques, create digital twins for clients, apply predictive maintenance to existing facilities, and propel new discoveries in vaccines and gene therapy.

1 INDUSTRY 4.0

Energy Transition and Urbanization includes resource scarcity and climate change, requiring sustainable building infrastructure; new innovative, resilient, and efficient transportation; and low carbon energy sources to support growing urban population centers. This requires growth in renewable biofuels and other low carbon clean fuels; carbon capture and conversion to value; hydrogen; nuclear; electrification; increasing consumption of copper, iron ore, nickel, cobalt, and lithium; and improving energy efficiency, as well as new transportation approaches such as Hyperloop and application of energy storage solutions.

2 ENERGY TRANSITION AND URBANIZATION

Beyond Globalization recognizes that the 2008 global financial crisis exposed other systemic challenges plaguing the broader macroeconomic landscape. This trend will drive the need for companies to localize their critical supply chains and onshore manufacturing facilities. We have the ability to support our clients as they reshape their global supply chains to fit into this new global order. We also expect to see a growing focus on national security and governments taking steps to protect their citizens. This will lead to increasing opportunities for our government business to provide mission critical support to the U.S. Department of Defense and to the intelligence community.

3 BEYOND GLOBALIZATION

Stakeholder Engagement represents the growing expectations society places on companies, including the need to engage with multiple stakeholders and the consideration of environmental, social, and governance (ESG) factors in their strategies and decision making. This creates the right opportunity for Fluor to lead on sustainability issues, offer energy transition solutions, provide new ways of working, and foster a diverse and inclusive culture.

4 STAKEHOLDER ENGAGEMENT

We believe these four megatrends will drive significant demand for our services in 2021 and for decades to come. Fluor is already a recognized industry leader with a global execution platform, world-class expertise, and the technical innovation to serve our diverse client base and deliver on its needs. We have one of the most robust engineering corps in the industry that can tackle the world’s problems, one client at a time. To align our businesses with these megatrends, we are organizing our operations into three business segments: Urban Solutions, Mission Solutions, and Energy Solutions.

NEW BUSINESS SEGMENTS

CTA RED AND PURPLE LINE MODERNIZATION PROGRAMCHICAGO, IL, U.S.


LOOKING AHEAD


Foster a highperformance culture

with purpose

Drive growth acrossthe portfolio

Pursue contractswith fair and

balanced terms

Reinforce financial discipline

By 2023, our goal is to grow our nontraditional oil and gas segments to 70 percent of our overall revenue. This includes energy transition, life sciences, high-demand metals, and infrastructure. Accelerated growth will also be achieved through targeted investments in our advanced technology and government businesses. Fluor’s traditional energy clients will continue to invest in oil and gas assets as they ramp up their focus on energy transition projects. We are well prepared to lead in this space via our new Energy Solutions business segment that will service traditional energy projects and bring the value of strong technical solutions to the early development phases of the energy transition.

Our commercial strategy confirms our intent to pursue contracts with more favorable risk-adjusted terms that reward Fluor for value. Our pursuit criteria will focus on reimbursable commercial terms that balance risk fairly and equitably. We will only consider fixed-price construction contracts for segments and scopes where we have a strong history of delivering expected returns. By 2024, our goal is to grow our backlog mix to more than 75 percent reimbursable, which would be similar to our historical norms.

Alan’s letter touched on the strong culture at Fluor, driven by our people. And I concur that they are our greatest strength. Their values shine through in everything they do—safety first, integrity

I’m approaching my role at Fluor with passion and humility. My promise is that I will come to work each day ready to engage, collaborate, and compete while promoting a safe and inclusive environment. I will strive to listen and to build strong teams of highly talented people. Integrity and accountability are important to me, and will be top of mind going forward.

Fluor is embarking on a new journey to become a leading provider of professional and technical solutions while maintaining our global leadership in engineering and construction. We believe this strategic direction is aligned with the prevailing trends that are transforming our markets, our customers, and the world around us. The four strategic priorities we have established will enable us

and ethical conduct, teamwork and inclusivity, and an ongoing drive for excellence. This high performance culture with purpose embraces a focus on ESG factors, as well as diversity, equity, and inclusion (DE&I). Fluor has a good story to tell here, which you will read more about on pages 10 through 11. During my five years in South Africa, I was very fortunate to have supported and sponsored Sasol’s Broad-Based Black Economic Empowerment (B-BBEE) programs for historically disadvantaged South Africans. The experience gained and progress achieved during my time there are directly applicable to Fluor’s strong focus on DE&I.

Finally, our fourth strategic priority reinforces financial discipline across the company through rebuilding and maintaining a solid balance sheet with a strong cash position. We will achieve this by generating predictable cash flow and earnings. Our capital will be allocated to stabilize our financial position, invest in our growth markets, and return excess capital to our shareholders. By 2024, we plan to lower and maintain a debt to capitalization ratio corridor between 20 and 40 percent, generate an ROIC in excess of 20 percent, secure investment-grade credit ratings, and deliver top-quartile shareholder returns.

to maximize long-term value for our shareholders and deliver on our stakeholders’ expectations.

Fluor’s employees around the world are energized and motivated to take this company to new levels of success. I am privileged to lead them and appreciate their significant contributions during 2020.

David E. ConstableChief Executive OfficerMarch 8, 2021

H I G H P E R F O R M A N C E

Fluor’s high performance culture with purpose embraces a focus on ESG, DE&I, and Sustainability.

CULTURE WITH PURPOSE

ENVIRONMENTAL, SOCIAL, AND GOVERNANCESAFETY IS FLUOR’S FIRST CORE VALUE.Fluor’s robust health, safety, and environmental culture is shaped by our uncompromised values. Safety drives the actions of every employee at every location, every day. Our people deserve it. Our clients demand it. Our performance depends on it. We are Safer TogetherSM.

STRONG CORPORATE GOVERNANCE STANDARDS PROMOTE INTEGRITY, TRANSPARENCY, AND ACCOUNTABILITY. Members of our board of directors participate in five standing committees: Audit, Executive, Governance, Organization and Compensation, and Commercial Strategies and Operational Risk. Nine of our eleven board members are independent, and board committees other than the executive committee are composed solely of independent directors.

CANADIAN NUCLEAR LABORATORIES MANAGEMENT & OPERATIONSMULTIPLE LOCATIONS, CANADA

FLUOR HAS A STRONG TRADITION OF COMMUNITY SERVICE.Providing service to the communities where Fluor employees live and work is our privilege. Our employee volunteerism and giving efforts support organizations working in community development, education, environmental stewardship, and social services.SHELTER BUILD PROJECT

Employees in Finland complete a shelter project for a local charity.

ENGINEERING CHALLENGEFluor volunteers in Dallas work with students on the 2020 Fluor Engineering Challenge.


Fluor is diverse by nature. We have more than 44,000 employees operating in 60 countries, and we’re building an inclusive culture with intention. At Fluor, every voice matters, at every level. We embrace different ideas, perspectives, and backgrounds. We listen actively, respect one another, and foster an environment with a deep sense of pride and belonging.

Our DE&I strategy has four impact pillars: we champion an inclusive culture; recruit, develop, and retain talent; enhance the employee experience; and improve social progress and impact. As part of our effort to champion an inclusive culture, in the fourth quarter of 2020, we established our first two Inclusion Councils—one in the United States and one in Australia—with diverse membership to advance DE&I throughout Fluor. Our plan is to learn from these two councils prior to global implementation, covering every region in which we have a strong employee presence.

At Fluor, sustainability is an important element of our strategy that is deeply integrated into our business practices and has been for decades. We strive to set the standard for our industry as we work to safeguard the environment, conserve energy, protect lives, and strengthen the economies and social structures of communities where our employees work and live. We are proud of our sustainability legacy at Fluor. For decades, we have been committed to delivering innovative, predictable, and sustainable solutions to help build a better world. Our sustainability mission is to meet the needs of our clients while conducting business in a socially, economically, and environmentally responsible

DIVERSITY, EQUITY, AND INCLUSION

SUSTAINABILITY


FLUOR IS COMMITTED TO ACHIEVING NET ZERO GREENHOUSE GAS EMISSIONS BY THE END OF 2023

44,020

48,910

57,2802017

2018

2019

GHG EMISSIONS* (ABSOLUTE IN METRIC TONS OF EQUIVALENT CARBON DIOXIDE)

manner to the benefit of current and future generations.Looking at our continuing businesses, since 2017, we’ve been able to achieve reductions of 25 percent in our Scope 1 and 2 greenhouse gas emissions. While we are proud of these achievements, we have committed to doing more.

During Strategy Day in January of 2021, Fluor announced its commitment to achieve net zero greenhouse gas emissions for Scope 1 (direct) and Scope 2 (indirect) by the end of 2023. By achieving net zero, we address our impact on climate change and demonstrate to our stakeholders the importance of managing our greenhouse gas emissions. This commitment applies to emissions from our offices and associated fleets globally. Sources of GHG emissions include electricity, natural gas, and refrigerants.

Since 2008, we have reported on Fluor’s sustainability efforts, including our work in the communities we serve, our HSE performance, the value in our supply chain, and positive engagement with our employees in our annual sustainability report. We first measured our GHG emissions in 2006, and our efforts to reduce emissions since then have been significant. The Net Zero 2023 commitment is the next step in our sustainability journey and demonstrates our leadership in the industry. This leadership is sought by investors, clients, employees, and the general public.

*Excludes Stork and CFHI.

I N N OVAT I O N

LEADERS

HANS GÖEBELMethods and Data Senior Fellow

Supported projects across the EMEA region in both Urban Solutions (Life Sciences) and Energy Solutions, including confidential feasibility studies and research in support of the Hydrogen Economy and other “concept projects.”

LAN JIFellow in Upstream IntegrationSpent her time focused on a series of substantial emission reduction projects across the Americas and APAC.

SARAH RADOVCICHUnfired Heat Transfer FellowSupported conventional energy projects in their heat transfer design and worked on the development of cutting- edge heat transfer designs in support of pyrolysis, a key element in some new Energy Transition technologies.

CATHY SHARGAYMaterials and Corrosion Senior FellowSupported projects across the three global regions in Energy Solutions, and North American projects for both Mission Solutions and Urban Solutions. She accomplished this in addition to her leadership positions on API and NACE Committee and task forces.

JAMES HAMBRIGHT IIISustainable Building Design Fellow

Supported projects that brought moresustainable designs to Urban Solutions (both AT&LS and Metals Production), Mission Solutions, and Energy Solutions Projects.

NETO OBASIMetallurgy, Welding, and Corrosion FellowWorked on projects in the EMEA region, with a specific focus on qualification procedures, fatigue analysis, and corrosion assessment consulting to ensure both supplier and weld quality in the materials used on these projects.

CRAIG SANDSTROMSingle Use & Disposable Biotech Systems FellowSupported confidential projects across the globe, primarily on new vaccine development, as well as capacity expansions for pharmaceutical production in support of needs due to the COVID-19 pandemic.

HECTOR D’AVILAFellow in Pharmaceutical and Life Sciences Technology

Supported projects across APAC and the Americas in Food and Beverage and Drug Development projects in our Urban Solutions group.

Fellows’ talents are leveraged across multiple business lines, regions, and projects; helping clients and training the next generation of experts. Here we are highlighting some of the vast experience in our organization.

FLUOR BELIEVES PEOPLE ARE OUR GREATEST ASSET


LEVERAGING TECHNICAL EXPERTISE ACROSS PROJECTS

SUBJECT MATTER EXPERTSFluor has more than 1,500 subject ma�er experts (SMEs) available to work or consult on projects. Our SME knowledge areas are wide-ranging, covering all areas of expertise used in all engineering and support disciplines that touch the engineering, procurement, and construction project life cycle. �e SME title at Fluor is an honor that recognizes professional excellence in specific subject ma�er areas critical to our clients. Our population of SMEs is spread among our o£ces and project sites across the globe. While expertise is typically associated with engineering disciplines, the makeup of our SME population also covers functional categories including support, project controls, specific business lines, supply chain, construction, diversified services, and human systems engineering.

TECHNOLOGY LEADERSHIPAs part of the Project Execution group, our O£ce of Technology supports all business groups with a breadth and depth of technical expertise. Functions include collaboration with external technology providers, maintenance of Fluor’s intellectual property, and review and approval of Fluor’s process guarantees. �is large cross- section of experts is leveraged across projects globally.

FELLOWSWe created the Fluor Fellows program in 2003 to recognize employees who excel in at least one area of technical or functional expertise. To become a Fellow, an employee must be nominated and meet strict acceptance requirements. Our Fellows and Senior Fellows are recognized internally and externally as experts and stand out among their global peer groups.

ENGINEERING TECHNOLOGISTS�ese experts provide strategic direction regarding technologies and project execution covering pipelines, chemicals, carbon capture, process technology, life sciences, metals recovery, mining, renewable fuels, and more.

Our people are at the core of our success.

- Curt Graham - O�ce of Technology Lead

Number of SMEs by Country

>200

81-200

21-80

1-20

14 FLUOR 2020 ANNUAL REPORT

Al CollinsGroup President, Corporate Development & Sustainability

Mark FieldsGroup President, Project Execution

Joe BrennanExecutive Vice President, Chief Financial O£cer

Tom D’AgostinoGroup President, Mission Solutions

Jim BreuerGroup President, Energy Solutions

Stacy DillowExecutive Vice President, Chief Human Resources O£cer


Alan BoeckmannExecutive Chairman

David ConstableChief Executive O£cer

John ReynoldsExecutive Vice President, Chief Legal O£cer and Secretary

Robert TaylorSenior Vice President, Chief Information O£cer

Terry TowleGroup President, Urban Solutions


Alan BennettLead Independent Director, Fluor; Former President and Chief Executive O£cer of H&R Block, Inc; Director of Halliburton Company and �e TJX Companies, Inc.

Rosemary BerkeryFormer Vice Chair of UBS Wealth Management Americas and Former Chair of UBS Bank USA; Director of Mutual of America Life Insurance Company and �e TJX Companies, Inc.

Paulett EberhartChair and Chief Executive O£cer of HMS Ventures; Former President and Chief Executive O£cer of CDI Corp; Former President and Chief Executive O£cer of Invensys Process Systems Inc.; Director of LPL Financial Holdings Inc., Valero Energy Corporation, and Jonah Energy LLC

BOARD OF DIRECTORS

Peter FluorChairman and Chief Executive O£cer of Texas Crude Energy, LLC

Alan BoeckmannExecutive Chairman of Fluor; Former Chairman and Chief Executive O£cer of Fluor; Director of Sempra Energy

David ConstableChief Executive O£cer of Fluor; Former Chief Executive O£cer and President of Sasol Limited; Director of ABB Ltd.

Thomas LeppertFormer Chief Executive O£cer of Kaplan, Inc.; Former Chairman and Chief Executive O£cer of �e Turner Corporation; Former Mayor of the City of Dallas

Teri McClureFormer Chief Human Resources O£cer and Senior Vice President, Labor, at United Parcel Service, Inc.; Director of GMS, Inc., JetBlue Airways Corporation, and Lennar Corporation

Matthew RoseFormer Executive Chairman and Chief Executive O£cer of Burlington Northern Santa Fe, LLC; Director of AT&T Inc.

Armando OliveraFormer President and Chief Executive O£cer of Florida Power & Light Company; Director of Consolidated Edison, Inc. and Lennar Corporation

James HackettPresident of Tessellation Services, LLC; Former Executive Chairman of Alta Mesa Resources, Inc.; Former Chief Executive O£cer of Kingfisher Midstream, LLC; Former Executive Chairman and Chief Executive O£cer of Anadarko Petroleum; Director of Enterprise Products Holdings LLC and National Oilwell Varco, Inc.


FLUOR’S STRENGTHS & EXPERTISE

TECHNOLOGYENGINEERING SUPPLY CHAIN

PROGRAM MANAGEMENT

GLOBAL PLATFORM

CONSTRUCTION MANAGEMENT

S T R A T E G I C P R I O R I T I E S & G O A L S

1

2

3

4 REINFORCE FINANCIAL DISCIPLINE

- Debt to capitalization ratio of 20% to 40% by 2024

- Return on invested capital of 20% by 2024

- Additional overhead reduction of $100 million by 2024

- EPS range of $3.00 to $3.50 by 2024

FOSTER A HIGH PERFORMANCECULTURE WITH PURPOSE

- Increase women and diversity in leadership positions

- Improve employee engagement annually

- Net Zero by the end of 2023 (Scope 1 and Scope 2)

DRIVE GROWTH ACROSS THE PORTFOLIO

- 70% of revenue from nontraditional oil and gas segments by 2023

PURSUE CONTRACTS WITH FAIR AND BALANCED TERMS

- Backlog mix will be more than 75% reimbursable by 2024

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.)

6700LasColinasBoulevardIrving, 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.Yeso No þ

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheExchangeAct.Yeso NoþIndicatebycheckmarkwhethertheregistrant(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.Yesþ NooIndicate 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).Yesþ NooIndicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,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☐ NoþAsofJune30,2020,theaggregatemarketvalueoftheregistrant'scommonstockheldbynon-affiliatesoftheregistrantwasapproximately$1.7billionbasedontheclosingsalepriceasreportedontheNewYorkStockExchange.AsofJanuary31,2021,140,759,346sharesoftheregistrant’scommonstock,$0.01parvaluepershare,wereoutstanding.

DOCUMENTSINCORPORATEDBYREFERENCEDocument PartsIntoWhichIncorporated

PortionsoftheProxyStatementfortheAnnualMeetingofStockholderstobeheldonMay6,2021.

PartIII

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,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities............................................................................ 33

Item7. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations............ 33Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk.................................... 46Item8. FinancialStatementsandSupplementaryData............................................... 47Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure........... 47Item9A. ControlsandProcedures................................................................. 47Item9B. OtherInformation....................................................................... 49

PARTIII

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

PARTIV

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

i

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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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.

2

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.

6

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

28

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,

29

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

TotalNumberofSharesPurchasedasPartofPubliclyAnnouncedPlansorPrograms

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

33

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

35

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• Impairmenttestingofinvestmentsaspartofotherthantemporaryimpairmentassessmentswhenimpairmentindicatorsarepresent

• 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

48

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)Numberofsecuritiesavailableforfutureissuanceunderequitycompensationplans(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


Item14. PrincipalAccountantFeesandServices


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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).**

53

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).

54

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.*

55

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.

56

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

57

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FLUORCORPORATION

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

TABLEOFCONTENTS PAGE

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

F-1

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.

F-2

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.

F-3

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

F-4

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)andexpensesCorporategeneralandadministrativeexpense 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.

F-5

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME(LOSS)


(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


F-6

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


F-7

FLUORCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS


(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


F-8

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)


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)



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

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


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)



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

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



F-9

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.

FLUORCORPORATIONNOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

F-10

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.

FLUORCORPORATION

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

F-11

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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• 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.


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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F-13

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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F-14

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.


(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.Eachrightwillentitlestockholderstopurchaseone onethousandthofashareofanewseriesofjuniorparticipatingpreferredstockatanexercisepriceof$50.Inaddition,ifapersonorgroupacquires10%ofouroutstandingcommonstock(unlesssuchpersonorgroupacquires50%ormore),theboardofdirectorsmayexchangeoneshareofcommonstockforeachoutstandingright.Priorthereto,therightsareredeemablefor$0.01perrightattheoptionoftheboardofdirectors.TherightsarescheduledtoexpireinMarch2021.

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5. OperatingInformationbySegmentandGeographicAreaYearEndedDecember31,

(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,


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:


(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:


(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,


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:


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:


(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:


(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.


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:ContractassetsUnbilledreceivables $ 681 $ 851

Contractworkinprogress 287 387Contractassets $ 968 $ 1,238

Advancebillingsdeductedfromcontractassets $ 310 $ 574


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,


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:


(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:


(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:


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


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


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



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:


(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:


(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:


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,


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


LeaseExpense/(SubleaseIncome)ContinuingOperations


ContinuingOperations


(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:



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:


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)


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


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(inthousands)


OwnershipShareof


DBPlans

UnrealizedGain(Loss)onHedges AOCI,Net



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


AttributabletoNCI:


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

AmountreclassifiedfromAOCI — — — — —

NetOCI (1,350) — — — (1,350)


(inthousands)


OwnershipShareof


DBPlans

UnrealizedGain(Loss)onHedges

UnrealizedGain(Loss)onAvailable-

for-SaleSecurities AOCI,Net


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


(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.

FLUORCORPORATION


F-45

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

Thefollowingsummarizesinformation relatedtoassetsandliabilitiesclassifiedasheldforsale:


(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:


(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)

FLUORCORPORATION


F-46

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)


Dilutedearnings(loss)pershareattributabletoFluorCorporation:

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

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


(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)


Dilutedearnings(loss)pershareattributabletoFluorCorporation:

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

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


FLUORCORPORATION


F-47

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.

FLUORCORPORATION


F-48

F L U O R C O R P O R AT I O N ( N Y S E : F L R ) is building a better future by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-e�cient projects to clients around the world. Fluor is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 100 years.

F O R W A R D - L O O K I N G S TAT E M E N T S This annual report contains statements that may constitute forward-looking statements involving risks and uncertainties, including statements about market outlook, new awards, backlog levels, competition, and the implementation of strategic initiatives. These forward-looking statements reflect the Company’s current analysis of existing information as of the date of this annual report, and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, the Company’s actual results may di�er materially from our expectations or projections. Additional information concerning factors that may influence Fluor’s results can be found in the Form 10-K that follows this annual report.

TABLE OF CONTENTS

0206101214151617

A LETTER FROM THE EXECUTIVE CHAIRMAN

A LETTER FROM THE CHIEF EXECUTIVE OFFICER

HIGH PERFORMANCE CULTURE WITH PURPOSE

INNOVATION LEADERS


BOARD OF DIRECTORS


FORM 10-K

ON THE FRONT COVER:

BHP SPENCE COPPER CONCENTRATOR PROJECT, NORTHERN CHILE. When complete, this project will deliver 95,000 tons per day of copper concentrator and associated works. Copper production is an important part of the world’s transition to a lower carbon future, and Fluor views projects like this one as an important part of our strategy to be a part of the world’s energy transition.

PERFORMANCE GRAPH

SHAREHOLDER REFERENCE

The graph to the right depicts the

Company’s total return to shareholders

from December 31, 2015, through

December 31, 2020, relative to the

performance of the S&P MidCap 400

Composite Index, the Dow Jones

Heavy Construction Industry Group

Index (“DJ Heavy”), which is a published

industry index, and the S&P 500

Composite Index. This graph assumes

the investment of $100 on December

31, 2015, in each of Fluor Corporation,

the S&P MidCap 400 Composite Index,

the DJ Heavy, the S&P 500 Composite

Index, and the reinvestment of

dividends paid since that date.

Environmental Benefits Statement

Environmental impact estimates were made using the Environmental Defense Paper Calculator.

For More Information, Visit:

papercalculator.org

By using Sappi McCoy Silk, Fluor saved the following resources:

Trees: 4.5 trees plantedWater: 300 gallonsSolid Waste: 20 poundsGreenhouse Gases: 1900 pounds

Fluor $100.00 $113.07 $113.23 $71.78 $43.41 $37.11

S&P 400 $100.00 $120.73 $140.32 $124.75 $157.40 $178.88

DJ Heavy $100.00 $123.36 $129.98 $96.04 $128.84 $156.43

S&P 500 $100.00 $111.95 $136.38 $130.39 $171.44 $202.96

20202015 2016 2017 2018 2019

Common Stock Information

On February 16, 2021, there were 140,759,346 shares outstanding and approximately 4,234 shareholders of record of Fluor’s common stock.

Registrar and Transfer Agent

Computershare P.O. Box 505000Louisville, KY 40233-5000877.870.2366 computershare.com/investor

Independent Registered PublicAccounting Firm

Ernst & Young LLP One Victory Park Suite 2000 2323 Victory Avenue Dallas, TX 75219

Annual Shareholders’ Meeting

Please visit investor.fluor.com forinformation regarding the time and location of our shareholders’ meeting.

Stock Trading

Fluor’s stock is traded on the New York Stock Exchange. Common stock domestic trading symbol: FLR

Investor Relations

Jason Landkamer 469.398.7222

Electronic Delivery of Annual Report and Proxy Statements

To expedite shareholders’ receipt of materials, lower the costs of the annual meeting and conserve natural resources, we are o�ering you, as a Fluor shareholder, the option of viewing future Fluor Annual Reports and Proxy Statements on the internet. Please visit investor.fluor.com to register and learn more about this feature.

Unless indicated otherwise, all trade and service marks are the intellectual property of Fluor Corporation or its subsidiaries.

© 2021 Fluor Corporation. All Rights Reserved.

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