FLUOR CORPFLR

FLUOR CORP Fair Value Disclosure

10-KFiled Feb 17, 20263 min read
Fair Value Measurements
The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels:
•Level 1 — quoted prices in active markets for identical assets and liabilities
•Level 2 — inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly
•Level 3 — unobservable inputs
We perform procedures to verify the reasonableness of pricing information received from third parties for significant assets and liabilities classified as Level 2.
The following table delineates assets and liabilities that are measured at fair value on a recurring basis:
 December 31, 2025December 31, 2024
 Fair Value HierarchyFair Value Hierarchy
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:
Investment in NuScale(1)
$1,579 $1,579 $— $— $2,266 $2,266 $— $— 
 NuScale forward contract(2)
208 — 208 — — — — — 
Trading securities(3)
2 2 — — 18 18 — — 
(1)We recognize the fair value of our investment in NuScale on a mark-to-market basis based upon the prevailing price of their stock on our balance sheet dates.
(2)In November 2025, through an indirect, wholly-owned subsidiary, we entered into a variable price forward sale agreement whereby we pledged and granted a security interest in 71 million of our shares in NuScale, while maintaining continuing involvement and ownership rights, and committed to sell, convey, transfer, assign and deliver those shares at the final settlement date in the first quarter of 2026. The fair value of the forward contract, which met the definition of a derivative, represents the difference between the closing price of NuScale at December 31, 2025 and the year-to-date settlement price calculated per the agreement plus a discounted growth assumption through the estimated settlement date. The derivative asset was included in other current assets on the balance sheet as of December 31, 2025.
Certain subsidiaries included in these consolidated financial statements, including Fluor Enterprises, Inc. and Nuke Holdings, LLC, are separate legal entities. The assets of these entities are not available to satisfy the debts or obligation of any other entity, including Fluor and its other subsidiaries.
(3)     Consists of registered money market funds and an equity index fund held in deferred compensation trusts. These investments represent the net asset value at the close of business of the period based on the last trade or official close of an active market or exchange.
The following summarizes information about financial instruments that are not required to be measured at fair value:
December 31, 2025December 31, 2024
(in millions)Fair Value HierarchyCarrying ValueFair ValueCarrying ValueFair Value
Assets:
Cash(1)
Level 1$1,480 $1,480 $1,613 $1,613 
Cash equivalents(2)
Level 2655 655 1,216 1,216 
Marketable securities(2)
Level 259 59 130 130 
Liabilities:
2028 Senior Notes(3)
Level 2$504 $503 $541 $517 
2029 Senior Notes(3)
Level 2566 657 563 725 
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(1)Cash consists of bank deposits. Carrying amounts approximate fair value.
(2)Cash equivalents and marketable securities primarily consist of time deposits. Carrying amounts approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.
(3)The fair value of the Senior Notes was estimated based on quoted market prices and Level 2 inputs.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 26, 2021
2019Sep 25, 2020
2018Feb 21, 2019
2017Feb 20, 2018
2016Feb 17, 2017
2015Feb 18, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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