v3.26.1
Equity Method Investments and Variable Interest Entities (Tables)
3 Months Ended
Apr. 03, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity in Earnings of Unconsolidated Affiliates The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
Three months endedYear ended
Dollars in millionsApril 3, 2026January 2, 2026
Beginning balance$107 $192 
Equity in earnings of unconsolidated affiliates51 210 
Distributions of earnings of unconsolidated affiliates (a)(39)(165)
Payments from unconsolidated affiliates, net(5)(9)
Investment in (return of) equity method investments, net (b)115 (82)
Foreign currency translation adjustments(1)
Other (c)(12)(43)
Ending balance$216 $107 

(a)In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our condensed consolidated statements of cash flows. During the year ended January 2, 2026, joint ventures within our STS segment declared a distribution of earnings of $34 million that was not received by KBR until the three months ended April 3, 2026. During the year ended January 3, 2025, a joint venture within our STS segment declared a distribution of earnings of $39 million that was not received by KBR until the year ended January 2, 2026.
(b)During the three months ended April 3, 2026, BRIS closed on an agreement to acquire a welding and turnaround services provider. We contributed $115 million in cash to BRIS as part of this agreement, which has been reflected as "investment in equity method investments, net" within the investing section of our condensed consolidated statements of cash flows. During the year ended January 2, 2026, we received a return of investment from BRIS of approximately $82 million. In October 2025, our joint venture partner in BRIS sold its ownership interest to a third party which resulted in funds being distributed by BRIS prior to the closing of this sale to return capital to its owners. Of the funds distributed, KBR received $79 million.
(c)During the three months ended April 3, 2026, Other included a reduction to the net liability position of $12 million related to a joint venture within our STS business segment. During the year ended January 2, 2026, Other included a reduction to the net liability position of $43 million related to a joint venture within our STS business segment.
Schedule of Services Provided to Unconsolidated JV's
Amounts included in our condensed consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of April 3, 2026 and January 2, 2026 are as follows:
Dollars in millionsApril 3, 2026January 2, 2026
Accounts receivable, net of allowance for credit losses$56 $59 
Contract liabilities$32 $41