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FLR > SEC Filings for FLR > Form 8-K on 19-Nov-2012All Recent SEC Filings

Show all filings for FLUOR CORP

Form 8-K for FLUOR CORP


Other Events, Financial Statements and Exhibits

Item 8.01. Other Events.

As reported in prior periods, Fluor Corporation (the "Company") has been involved in a dispute in connection with the Greater Gabbard Project, a $1.8 billion lump-sum project to provide engineering, procurement and construction services for the client's offshore wind farm project in the United Kingdom. The dispute includes the Company's claim for additional compensation for schedule and cost impacts arising from certain delays and other disruption and productivity issues, which the Company believes are attributable to the client and other third parties.

On November 16, 2012, the Company received an unexpected adverse decision from the arbitration panel, dismissing the Company's claims for additional compensation. The Company expects the decision to result in a pre-tax charge of approximately $400 million in the fourth quarter, which includes claim revenue previously recorded and a significant portion of liquidated damages being withheld by the client, as well as additional costs expected to be incurred through close-out of the project. This unexpected charge was not considered in the Company's most recent earnings guidance for 2012. The Company is not presently able to calculate the after-tax charge to earnings, which amount will be reflected in the Company's year-end financial statements. With the project substantially complete, the Company does not expect the decision to have a material adverse impact on cash flow.

The client's counterclaim against the Company seeking to recover costs associated with alleged defects is currently scheduled for hearing in April 2013. To the extent the client's counterclaim is successful, there could be additional charges to the Company's earnings.

A copy of the Company's November 16, 2012 press release announcing the decision is attached hereto as Exhibit 99.1.

This Current Report on Form 8-K contains forward looking statements regarding the expected accounting and financial effects of the arbitrators' decision on the Company's claims relating to the Greater Gabbard Project. Actual results may vary based on numerous factors including final determination of costs and recoveries relating to the project, foreign currency adjustments and tax and accounting treatment of these items.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Number                                  Description
 99.1     Press release issued by Fluor Corporation on November 16, 2012
          announcing the Greater Gabbard decision.

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