KBR Announces Fourth Quarter and Fiscal 2020 Financial Results; Provides 2021 Guidance
HOUSTON, Feb. 22, 2021 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) today announced its fourth quarter and fiscal 2020 financial results and provided 2021 guidance.
Stuart Bradie, President and CEO of KBR, said, "2020 was a year of significant achievement for KBR, as we successfully advanced our long-term vision. We accelerated growth into attractive markets with the Centauri acquisition, strategically focused our commercial portfolio toward clean, sustainable solutions, and significantly advanced our corporate ESG and sustainability strategy, committing to net-zero carbon emissions by 2030 and achieving carbon neutrality in 2019. Throughout the year, our team of teams delivered outstanding safety and operational performance, generated healthy profit and superb cash flow, drove innovation with technology advances and expanded our footprint through new program wins. Our progress is underscored by the strong book-to-bill achieved by our Government and Sustainable Tech businesses that underpins the 2021 guidance we are announcing today. Looking ahead, I am confident KBR is well-positioned to continue driving growth and value for our stakeholders, and I would like to thank our 29,000 people for their perseverance, agility and teamwork through an unusual year."
Summarized Fiscal 2020 and Fourth Quarter 2020 Financial Results
Three Months Ended December 31, Year Ended December 31,
---
Dollars in millions, except share data 2020 2019 2020 2019
---
Revenues $
1,466 $
1,452 $
5,767 $
5,639
Operating income $
45 $
88 $
57 $
362
Adjusted EBITDA(1) $
135 $
117 $
478 $
471
Earnings (loss) per share:
Diluted earnings (loss) per share $
0.13 $
0.40 $
(0.51) $
1.41
Adjusted EPS(1) $
0.51 $
0.46 $
1.73 $
1.69
Operating cash flows:
GAAP operating cash flows $
122 $
57 $
367 $
256
Adjusted operating cash flow(1) $
21 $
57 $
290 $
256
(1)
See additional information at the end of this release regarding non-GAAP financial measures.
In 2021, KBR updated the names of its businesses as follows:
-- Government Solutions includes the following four business units: Defense
& Intel, formerly the Defense Systems Engineering and Centauri
businesses; Science & Space, formerly called Space & Mission Solutions;
Readiness & Sustainment, formerly called Logistics; and International.
-- Sustainable Technology Solutions, formerly called Technology Solutions,
to better reflect our business portfolio of advanced technology and
solutions that enable customers to achieve their important
sustainability objectives.
Key Financial Highlights:
-- Revenue of $5.8 billion increased $128 million from the prior year, as
follows:
-- New program wins, on-contract expansion and acquisitive growth,
including approximately $100 million, or 12%, growth in Science &
Space; approximately $175 million, or 23%, growth in Defense and
Intel (7% organic); and approximately $50 million growth in
sustaining programs in Readiness & Sustainment;
-- Energy Solutions revenue volume increased $187 million primarily
attributable to the completion of projects in backlog;
-- These revenue increases were partially offset by approximately $150
million of revenue associated with Tyndall Air Force Base disaster
recovery work performed in 2019 that did not recur in 2020, reduced
volume in KBR's Middle East contingency work of approximately $150
million, reduced volume in the heritage Technology business of
approximately $70 million primarily attributable to a higher mix of
proprietary equipment deliveries in 2019 that did not recur in 2020,
and reduced activity in the international government business of
approximately $25 million.
-- Selling, general and administrative expenses of $335 million declined $6
million compared to 2019, principally due to reductions associated with
corporate cost control measures and travel restrictions related to
COVID-19. These reductions were partially offset by increases in
Government Solutions, including increased amortization attributable to
our acquisition of Centauri, increased bid and proposal cost and
favorable variances in 2019 that did not recur in 2020.
-- Adjusted EBITDA of $478 million increased 2% from the prior year
principally due to revenue growth.
-- Interest expense of $83 million decreased $16 million compared to 2019
principally due to lower outstanding borrowings under KBR's Senior
Credit Facility during the majority of 2020 as well as lower
weighted-average interest rates resulting from the favorable refinancing
of KBR's Senior Credit Facility in early 2020 and reduced market
interest rates.
-- Restructuring and impairment charges totaled $313 million and were
primarily non-cash, were associated with KBR's exit from commoditized
services in its Energy Solutions business, and were related to lease
abandonment, goodwill and asset impairments, and overhead reductions.
-- Effective tax rate was 25%.
Recent Developments and New Business
-- FY 2020 book-to-bill for Government Solutions was 1.2x, excluding
privately financed initiatives, and was 1.4x for Sustainable Technology
Solutions.
-- Expanded footprint through new project/program wins, including a five
year $539 million ceiling contract to provide high-end technical
services for rapid prototyping and fielding of systems for the U.S. Air
Force; over $900 million in IDIQ tasking through our IAC-MAC contract
balanced nicely across the Army, Air Force and Navy; and an eight-year
$974 million ceiling contract to provide sustaining services to support
U.S. Air Force operations in Europe.
-- Delivered a 95% recompete win rate in the U.S. Government Solutions
business that included a $400 million NASA award to provide intelligent
systems research and a $300 million U.S. Geological Survey award to
perform satellite systems engineering, software development,
cybersecurity, data storage, program management, network engineering,
satellite data acquisition, and scientific research and application
development for remote sensing data.
-- Continued track record of innovation, bringing new technologies to
market, including:
-- Entered into an agreement with Mura Technology to be the exclusive
licensor of Cat-HTR(TM), an innovative, disruptive mixed plastics
recycling technology that processes all types of plastic including
many that are currently considered unrecyclable; and
-- Entered into an agreement with Johnson Matthey to license a
groundbreaking ammonia-methanol co-production process that combines
KBR and Johnson Matthey market-leading ammonia and methanol
technologies to enable superior end-product flexibility for our
clients.
-- Numerous engagements to consult, advise and deliver technology and
professional services in the area of energy transition, hydrogen future
and circular economy, including multiple engagements with various
governments and companies to advise on climate change and transition to
a hydrogen future; a five-year master services contract to provide
engineering services for a client's global carbon recycling technology
projects; and a technology package, including license, basic
engineering, proprietary equipment and catalyst, for a zero CO(2
)emissions, commercial-scale ammonia facility.
Capital Deployment
KBR continues to employ a balanced approach to capital allocation, which includes investments that facilitate sustainable, long-term growth and prudent return of capital to shareholders. KBR's financial strength positioned the company to complete the strategic acquisition of Centauri on October 1, 2020, repurchase approximately $50 million of its common stock in 2020, and increase its quarterly dividend to $0.10 per share, a 25% increase over 2019 levels.
FY 2021 Guidance
KBR expects its 2021 financial results to be as follows:
-- Consolidated Revenue: $5.8 billion to $6.2 billion
-- Adjusted EBITDA Margin: ~9%
-- Effective Tax Rate: 25% to 26%
-- Earnings per Share (EPS): $1.39 to $1.59
-- Adjusted EPS: $2.00 to $2.20
-- Operating Cash Flow (OCF): $250 million to $290 million
-- Adjusted OCF: $280 million to $320 million
Conference Call Details
The company will host a conference call to discuss its fourth quarter and fiscal 2020 financial results on Monday, February 22, 2021 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). The conference call will be webcast simultaneously through the Investor Relations section of KBR's website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR's website or by telephone at +1.719.457.0820, passcode: 3642827.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.
KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward Looking Statements
This press release and related comments by KBR management contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some examples include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this press release, the words "estimates," "expects," "predicts," "continues," "looking ahead," "well-positioned," "anticipates," "projects," "plans," "intends," "believes," "forecasts" or future or conditional verbs such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward-looking statements contained in this press release.
These risks and uncertainties include, but are not limited to:
-- U.S. government regulatory changes or changes to funding related to our
lines of business that could be less favorable. Because we generate a
substantial portion of our revenues from contracts with U.S. government
agencies, our operating results could be adversely affected by spending
caps or changes in budgetary priorities, as well as by delays in the
government budget process, program starts or the award of contracts or
task orders under contracts. Changes in spending authorizations and
budgetary priorities may occur as a result of the shifts in spending
priorities from defense-related and other programs as a result of
competing demands for federal funds and the number and intensity of
military conflicts and other factors;
-- operational challenges relating to the COVID-19 pandemic and efforts to
mitigate the spread of the virus, including logistical challenges,
protecting the health and well-being of our employees, remote work
arrangements, performance of contracts and supply chain disruptions;
-- the COVID-19 pandemic has increased the severity and duration of world
health events, including volatility in the capital markets,
deteriorating financial conditions or bankruptcy, and related economic
repercussions resulting from severe disruption in multiple industries,
which may negatively impact our clients' ability to meet their payment
obligations to us in a timely manner; and
-- the level of capital spending and access to capital markets by
industrial companies, including significant reductions and potential
additional reductions in capital expenditures in response to commodity
prices and dramatically reduced demand.
Additional information about potential risk factors that could affect our business and financial results is included in our latest Form 10-K and any subsequent Forms 10-Q and 8-K. We caution you not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances. We also disclaim any duty to comment on or correct information that may be contained in reports published by investment analysts or others.
KBR, Inc.: Consolidated Statements of Operations
(In millions, except for per share data)
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
2020 2019 2020 2019
Revenues:
Government Solutions $
1,074 $
939 $
3,934 $
3,925
Technology Solutions 71 93 303 374
Energy Solutions 321 420 1,526 1,339
Non-strategic Business - 4 1
Total revenues 1,466 1,452 5,767 5,639
Gross profit (loss):
Government Solutions 113 118 483 430
Technology Solutions 23 35 105 118
Energy Solutions 31 20 86 100
Non-strategic Business (1) (2) (8) 5
Total gross profit 166 171 666 653
Equity in earnings of unconsolidated affiliates:
Government Solutions 4 8 25 29
Energy Solutions (4) 3 5 19
Non-strategic Business - (13)
Total equity in earnings of unconsolidated affiliates - 11 30 35
Selling, general and administrative expenses
Government Solutions (46) (41) (158) (134)
Technology Solutions (5) (7) (23) (28)
Energy Solutions (17) (16) (65) (63)
Corporate (8) (36) (89) (116)
Total selling, general and administrative expense (76) (100) (335) (341)
Acquisition and integration related costs (7) (9) (2)
Goodwill impairment - (99)
Restructuring charges and asset impairments (38) (214)
Gain on disposition of assets - 6 18 17
Operating income 45 88 57 362
Interest expense (23) (23) (83) (99)
Other non-operating income (loss) - (5) 1 5
Income (loss) before income taxes and NCI 22 60 (25) 268
Provision for income taxes (2) (1) (26) (59)
Net (loss) income 20 59 (51) 209
Net income attributable to noncontrolling interests (1) (1) (21) (7)
Net (loss) income attributable to KBR $
19 $
58 $
(72) $
202
Adjusted EBITDA(1) $
135 $
117 $
478 $
471
Diluted EPS $
0.13 $
0.40 $
(0.51) $
1.41
Adjusted EPS(1) $
0.51 $
0.46 $
1.73 $
1.69
(1)
See additional information at the end of this release regarding non-GAAP financial measures.
KBR, Inc.
Consolidated Balance Sheets
(In millions, except share data)
December 31, December 31,
2020 2019
(Unaudited)
Assets
Current assets:
Cash and equivalents $
436 $
712
Accounts receivable, net of allowance for credit losses of $13 and $14 899 938
Contract assets 178 215
Other current assets 121 146
Total current assets 1,634 2,011
Claims and accounts receivable 30 59
Property, plant, and equipment, net 130 130
Operating lease right-of-use assets 154 175
Goodwill 1,761 1,265
Intangible assets, net of accumulated amortization of $228 and $184 683 495
Equity in and advances to unconsolidated affiliates 881 846
Deferred income taxes 297 236
Other assets 135 143
Total assets $
5,705 $
5,360
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $
574 $
572
Contract liabilities 356 484
Accrued salaries, wages and benefits 283 209
Nonrecourse project debt 5 11
Operating lease liabilities 44 39
Other current liabilities 193 186
Total current liabilities 1,455 1,501
Pension obligations 381 277
Employee compensation and benefits 110 115
Income tax payable 96 92
Deferred income taxes 26 16
Nonrecourse project debt 2 7
Long-term debt 1,584 1,183
Operating lease liabilities 186 192
Other liabilities 256 124
Total liabilities 4,096 3,507
KBR shareholders' equity:
Paid-in capital in excess of par 2,222 2,206
Accumulated other comprehensive loss (1,083) (987)
Retained earnings 1,305 1,437
Treasury stock (864) (817)
Total KBR shareholders' equity 1,580 1,839
Noncontrolling interests 29 14
Total shareholders' equity 1,609 1,853
Total liabilities and shareholders' equity $
5,705 $
5,360
KBR, Inc.: Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
Year Ended December 31,
2020 2019
---
Cash flows from operating activities:
Net (loss) income $
(51) $
209
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization 115 104
Equity in earnings of unconsolidated affiliates (30) (35)
Deferred income tax benefit (40) (14)
Gain on disposition of assets and investments (18) (17)
Goodwill impairment 99
Asset impairments 98
Other 43 34
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for credit losses 127 (16)
Contract assets 39 (31)
Claims receivable 29 39
Accounts payable (40) 23
Contract liabilities (134) 19
Accrued salaries, wages and benefits 38 (9)
Payments on operating lease obligation (61) (56)
Payments from unconsolidated affiliates, net 15 10
Distributions of earnings from unconsolidated affiliates 38 69
Pension funding (46) (45)
Restructuring reserve 89
Other assets and liabilities 57 11
Total cash flows provided by operating activities 367 256
Cash flows from investing activities:
Purchases of property, plant and equipment (20) (20)
Investments in equity method joint ventures (26) (146)
Proceeds from disposition of assets and investments 1 9
Acquisition of businesses, net of cash acquired (832)
Other (1)
Total cash flows used in investing activities (877) (158)
Cash flows from financing activities:
Borrowings on long-term debt 619
Payments on short-term and long-term borrowings (281) (70)
Debt issuance costs (5)
Payments of dividends to shareholders (54) (46)
Net proceeds from issuance of common stock 4 5
Payments to reacquire common stock (51) (4)
Investments from noncontrolling interest 1
Distributions to noncontrolling interests (4) (14)
Other (3) (5)
Total cash flows provided by (used in) financing activities 225 (133)
Effect of exchange rate changes on cash 9 8
Decrease in cash and equivalents (276) (27)
Cash and equivalents at beginning of period 712 739
Cash and equivalents at end of period $
436 $
712
KBR, Inc.: Backlog Information (a)
(In millions)
(Unaudited)
December 31, December 31,
2020 2019
---
Government Solutions $
12,526 $
10,960
Technology Solutions 704 579
Energy Solutions 1,885 3,097
Total backlog $
15,115 $
14,636
Award options 3,899 2,754
Total backlog and options $
19,014 $
17,390
(a) Backlog generally represents the dollar
amount of revenues we expect to realize
in the future as a result of performing
work on contracts and our pro-rata share
of work to be performed by unconsolidated
joint ventures. We generally include
total expected revenues in backlog when a
contract is awarded under a legally
binding agreement. In many instances,
arrangements included in backlog are
complex, nonrepetitive and may fluctuate
due to the release of contracted work in
phases by the customer. Additionally,
nearly all contracts allow customers to
terminate the agreement at any time for
convenience. Where contract duration is
indefinite and clients can terminate for
convenience without having to compensate
us for periods beyond the date of
termination, projects included in backlog
are limited to the estimated amount of
expected revenues within the following
twelve months. Certain contracts provide
maximum dollar limits, with actual
authorization to perform work under the
contract agreed upon on a periodic basis
with the customer. In these arrangements,
only the amounts authorized are included
in backlog. For projects where we act
solely in a project management capacity,
we only include the value of our services
on each project in backlog.
We define backlog, as it relates to U.S.
government contracts, as our estimate of
the remaining future revenue from
existing signed contracts over the
remaining base contract performance
period (including customer approved
option periods) for which work scope and
price have been agreed with the customer.
We define funded backlog as the portion
of backlog for which funding currently is
appropriated, less the amount of revenue
we have previously recognized. We define
unfunded backlog as the total backlog
less the funded backlog. Our Government
Solutions backlog does not include any
estimate of future potential delivery
orders that might be awarded under our
government-wide acquisition contracts,
agency-specific indefinite delivery/
indefinite quantity contracts, or other
multiple-award contract vehicles nor
does it include option periods that have
not been exercised by the customer.
Within our Government Solutions business
segment, we calculate estimated backlog
for long-term contracts associated with
the U.K. government's privately financed
initiatives ("PFIs") based on the
aggregate amount that our client would
contractually be obligated to pay us over
the life of the project. We update our
estimates of the future work to be
executed under these contracts on a
quarterly basis and adjust backlog if
necessary.
We have included in the table above our
proportionate share of unconsolidated
joint ventures' estimated revenues. Since
these projects are accounted for under
the equity method, only our share of
future earnings from these projects will
be recorded in our results of operations.
Our proportionate share of backlog for
projects related to unconsolidated joint
ventures totaled $2.4 billion at December
31, 2020, and $2.6 billion at December
31, 2019. Our backlog included in the
table above for projects related to
consolidated joint ventures includes 100%
of the backlog associated with those
joint ventures and totaled $52 million at
December 31, 2020, and $78 million at
December 31, 2019.
We estimate that as of December 31, 2020,
28% of our backlog will be executed
within one year. Of this amount, 87% will
be recognized in revenues on our
consolidated statement of operations and
13% will be recorded by our
unconsolidated joint ventures. As of
December 31, 2020, $107 million of our
backlog relates to active contracts that
are in a loss position.
As of December 31, 2020, 13% of our
backlog was attributable to fixed-price
contracts, 47% was attributable to PFIs
and 40% of our backlog was attributable
to cost-reimbursable contracts. For
contracts that contain both fixed-price
and cost-reimbursable components, we
classify the individual components as
either fixed-price or cost-reimbursable
according to the composition of the
contract; however, for smaller contracts,
we characterize the entire contract based
on the predominant component. As of
December 31, 2020, $9.3 billion of our
Government Solutions backlog was
currently funded by our customers. As of
December 31, 2020, we had approximately
$3.9 billion of priced option periods for
U.S. government contracts that are not
included in the backlog amounts presented
above.
Non-GAAP Financial Information
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
EBITDA and Adjusted EBITDA
We evaluate performance based on EBITDA and Adjusted EBITDA. EBITDA is defined as Net income attributable to KBR, plus interest expense, net; provision for income taxes; other non-operating expense (income); and depreciation and amortization. Adjusted EBITDA excludes certain amounts included in EBITDA. EBITDA and Adjusted EBITDA for each of the three- and twelve-month periods ended December 31, 2020 and 2019 considered non-GAAP financial measures under SEC rules because EBITDA and Adjusted EBITDA for each such period exclude certain amounts included in the calculation of net income attributable to KBR in accordance with GAAP for such periods. Management believes EBITDA and Adjusted EBITDA afford investors a view of what management considers KBR's core performance for each of the three- and twelve-month periods ended December 31, 2020 and 2019 and also affords investors the ability to make a more informed assessment of such core performance for the comparable periods.
Three Months Ended December 31, Year Ended December 31,
Dollars in millions 2020 2019 2020 2019
---
Net Income (Loss) Attributable to KBR $
19 $
58 $
(72) $
202
Adjustments
-- Interest expense 23 23 83 99
-- Provision for income taxes 2 1 26 59
-- Other non-operating (loss) income 5 (1) (5)
-- Depreciation and amortization 41 28 115 104
Consolidated EBITDA $
85 $
115 $
151 $
459
Adjustments
-- Restructuring and impairment charge, net of NCI 38 308
-- Non-cash gain from legal entity rationalization (7)
-- Ichthys commercial dispute costs 3 9
-- Legacy legal fees 2 2 8 10
-- Acquisition and integration related costs 7 9 2
Adjusted EBITDA $
135 $
117 $
478 $
471
Adjusted EPS
Adjusted earnings per share (Adjusted EPS) for each of the three- and twelve-month periods ended December 31, 2020 and 2019 is considered a non-GAAP financial measure under SEC rules because the Adjusted EPS for each such period excludes certain amounts included in the diluted earnings per share calculated in accordance with GAAP for such periods. The most directly comparable financial measure calculated in accordance with GAAP is diluted EPS for the same periods. Management believes that Adjusted EPS affords investors a view of what management considers KBR's core earnings performance for each of the three- and twelve-month periods ended December 31, 2020 and 2019 and also affords investors the ability to make a more informed assessment of such core earnings performance for the comparable periods.
We have calculated Adjusted EPS for each of the three- and twelve-month periods ended December 31, 2020 and 2019 by adjusting diluted EPS for the items included in the table below.
Three Months Ended December 31, Year Ended December 31,
2020 2019 2020 2019
Diluted earnings per share $
0.13 $
0.40 $
(0.51) $
1.41
Adjustments
-- Restructuring and impairment charge, net of NCI $
0.20
$ $
1.87
$
-- Ichthys interest and commercial dispute costs $
0.03 $
0.01 $
0.12 $
0.07
-- Non-cash imputed interest on conversion option $
0.02 $
0.02 $
0.06 $
0.06
-- Amortization related to acquisitions $
0.08 $
0.02 $
0.14 $
0.08
-- Legacy legal fees $
0.01 $
0.01 $
0.04 $
0.05
-- Acquisition and integration $
0.04
$ $
0.05 $
0.02
-- Non-cash gain from legal entity rationalization
$
$ $
(0.04)
$
Adjusted EPS $
0.51 $
0.46 $
1.73 $
1.69
We have calculated the Adjusted EPS for the 2021 guidance by adjusting diluted EPS for the items included in the table below.
Low High
Diluted earnings per share guidance: $1.39 $1.59
Adjustments
-- Amortization related to acquisitions $0.25
-- Ichthys interest and commercial dispute costs $0.17
-- Acquisition, integration and restructuring $0.09
-- Non-cash imputed interest and conversion option (1) $0.06
-- Legacy legal fees $0.04
-- Non-cash gain from legal entity rationalization
TBD
Adjusted EPS Guidance $2.00 $2.20
(1) Conversion option will be
calculated and adjusted
quarterly based on KBR
trading price
Adjusted Cash Flows Provided by Operating Activities
Adjusted operating cash flows for 2020 guidance is considered a non-GAAP financial measure under SEC rules because the Adjusted operating cash flows exclude certain amounts included in the cash flows provided by operating activities calculated in accordance with GAAP. The most directly comparable financial measure calculated in accordance with GAAP is cash flows provided by operating activities. Management believes that Adjusted operating cash flows afford investors a view of what management considers KBR's core operating cash flow performance for 2020 guidance and also afford investors the ability to make a more informed assessment of such core operating cash generation performance.
We have calculated Adjusted operating cash flow for each of the three- and twelve-month periods ended December 31, 2020 and 2019 by adjusting operating cash flow provided by operating activities for the item included in the table below.
Three Months Ended December 31, Year Ended December 31,
Dollars in millions 2020 2019 2020 2019
---
Cash flows provided by operating activities $
122 $
57 $
367 $
256
Adjustments
-- Impact of major project advance workoff 17 81
-- Impact of CARES Act temporary tax payment relief (18) (58)
-- Impact of accounts receivable monetization related to acquisition (1) (100) (100)
Adjusted operating cash flows $
21 $
57 $
290 $
256
(1) Accounts receivable monetization
program entered into as part of
our acquisition of Centauri
We have calculated the Adjusted operating cash flows for the 2021 guidance by adjusting cash flows provided by operating activities for the item included in the table below.
Dollars in millions Low High
---
Cash flows provided by operating activities guidance $250 $290
Adjustments:
-- Impact of major project advance workoff
-- Impact of CARES Act temporary tax payment relief 30
-- Impact of accounts receivable monetization related to acquisition (1)
Adjusted operating cash flows guidance $280 $320
(1) Accounts receivable monetization
program entered into as part of
our acquisition of Centauri
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SOURCE KBR, Inc.
