DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CHICAGO BRIDGE & IRON CO N V | |
Trading Symbol | CBI | |
Entity Central Index Key | 1,027,884 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 104,864,525 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,321,682 | $ 3,380,733 | $ 9,654,540 | $ 9,603,244 |
Cost of revenue | 2,943,965 | 2,987,539 | 8,523,529 | 8,527,473 |
Gross profit | 377,717 | 393,194 | 1,131,011 | 1,075,771 |
Selling and administrative expense | 93,672 | 92,585 | 287,926 | 309,783 |
Intangibles amortization | 14,948 | 16,789 | 45,542 | 49,845 |
Equity earnings | (1,154) | (6,673) | (5,750) | (14,003) |
Goodwill impairment | 453,100 | 0 | 453,100 | 0 |
Loss on assets held for sale and intangible assets impairment | 707,380 | 0 | 707,380 | 0 |
Other operating (income) expense, net | (267) | (132) | 1,870 | (777) |
Integration related costs | 0 | 4,563 | 0 | 22,167 |
(Loss) income from operations | (889,962) | 286,062 | (359,057) | 708,756 |
Interest expense | (25,025) | (21,337) | (68,425) | (61,899) |
Interest income | 2,058 | 2,584 | 6,290 | 6,121 |
(Loss) income before taxes | (912,929) | 267,309 | (421,192) | 652,978 |
Income tax benefit (expense) | 187,375 | (83,419) | 38,275 | (199,276) |
Net (loss) income | (725,554) | 183,890 | (382,917) | 453,702 |
Less: Net income attributable to noncontrolling interests | (14,879) | (22,048) | (55,773) | (60,505) |
Net (loss) income attributable to CB&I | $ (740,433) | $ 161,842 | $ (438,690) | $ 393,197 |
Net (loss) income attributable to CB&I per share: | ||||
Basic (in dollars per share) | $ (7.02) | $ 1.50 | $ (4.08) | $ 3.64 |
Diluted (in dollars per share) | $ (7.02) | $ 1.48 | $ (4.08) | $ 3.61 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 105,454 | 108,199 | 107,440 | 107,993 |
Diluted (in shares) | 105,454 | 109,209 | 107,440 | 109,061 |
Cash dividends on shares: | ||||
Amount | $ 7,333 | $ 7,574 | $ 22,540 | $ 22,700 |
Per share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (725,554) | $ 183,890 | $ (382,917) | $ 453,702 |
Other comprehensive (loss) income, net of tax: | ||||
Change in cumulative translation adjustment | (24,944) | (70,665) | (61,069) | (57,713) |
Change in unrealized fair value of cash flow hedges | 948 | (1,540) | 868 | (3,081) |
Change in unrecognized prior service pension credits/costs | (103) | (175) | (623) | (310) |
Change in unrecognized actuarial pension gains/losses | 2,036 | 6,498 | 12,035 | 8,711 |
Comprehensive (loss) income | (747,617) | 118,008 | (431,706) | 401,309 |
Net income attributable to noncontrolling interests | (14,879) | (22,048) | (55,773) | (60,505) |
Change in cumulative translation adjustment attributable to noncontrolling interests | 2,717 | 11,049 | 3,838 | 5,075 |
Comprehensive (loss) income attributable to CB&I | $ (759,779) | $ 107,009 | $ (483,641) | $ 345,879 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents ($293,427 and $191,464 related to variable interest entities (VIEs)) | $ 423,900 | $ 351,323 |
Accounts receivable, net ($329,711 and $235,018 related to VIEs) | 1,328,811 | 1,306,567 |
Inventory | 296,668 | 286,155 |
Costs and estimated earnings in excess of billings ($46,957 and $29,677 related to VIEs) | 662,344 | 774,644 |
Deferred income taxes | 704,159 | 572,987 |
Assets held for sale | 886,429 | 0 |
Other current assets ($353,455 and $104,447 related to VIEs) | 481,536 | 238,783 |
Total current assets | 4,783,847 | 3,530,459 |
Equity investments | 130,151 | 107,984 |
Property and equipment, net ($19,754 and $21,868 related to VIEs) | 604,196 | 771,651 |
Goodwill | 3,722,344 | 4,195,231 |
Other intangibles, net | 423,830 | 556,454 |
Deferred income taxes | 69,091 | 89,196 |
Other non-current assets | 175,844 | 130,056 |
Total assets | 9,909,303 | 9,381,031 |
Liabilities | ||
Revolving facility and other short-term borrowings | 503,000 | 164,741 |
Current maturities of long-term debt | 143,646 | 105,997 |
Accounts payable ($284,089 and $279,597 related to VIEs) | 1,019,166 | 1,256,854 |
Billings in excess of costs and estimated earnings ($869,906 and $282,351 related to VIEs) | 1,828,998 | 1,985,488 |
Deferred income taxes | 4,674 | 4,856 |
Liabilities held for sale | 755,429 | 0 |
Other current liabilities | 942,020 | 804,294 |
Total current liabilities | 5,196,933 | 4,322,230 |
Long-term debt | 1,872,030 | 1,564,158 |
Deferred income taxes | 169,934 | 167,714 |
Other non-current liabilities | 428,404 | 450,626 |
Total liabilities | 7,667,301 | 6,504,728 |
Shareholders’ Equity | ||
Common stock, Euro .01 par value; shares authorized: 250,000; shares issued: 108,857 and 108,407; shares outstanding: 104,722 and 107,806 | 1,288 | 1,283 |
Additional paid-in capital | 797,664 | 776,864 |
Retained earnings | 1,785,540 | 2,246,770 |
Treasury stock, at cost: 4,135 and 601 shares | (196,626) | (24,428) |
Accumulated other comprehensive loss | (307,348) | (262,397) |
Total CB&I shareholders’ equity | 2,080,518 | 2,738,092 |
Noncontrolling interests | 161,484 | 138,211 |
Total shareholders’ equity | 2,242,002 | 2,876,303 |
Total liabilities and shareholders’ equity | $ 9,909,303 | $ 9,381,031 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Sep. 30, 2015USD ($)shares | Sep. 30, 2015€ / shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2014€ / shares |
Cash and cash equivalents related to VIEs | $ 423,900 | $ 351,323 | ||
Accounts receivable, net related to VIEs | 1,328,811 | 1,306,567 | ||
Costs and estimated earnings in excess of billings related to VIEs | 662,344 | 774,644 | ||
Other current assets related to VIEs | 481,536 | 238,783 | ||
Property and equipment, net related to VIEs | 604,196 | 771,651 | ||
Accounts payable related to VIEs | 1,019,166 | 1,256,854 | ||
Billings in excess of costs and estimated earnings related to VIEs | $ 1,828,998 | $ 1,985,488 | ||
Common stock, par value (Euro per share) | € / shares | € 0.01 | € 0.01 | ||
Common stock, shares authorized | shares | 250,000,000 | 250,000,000 | ||
Common stock, shares issued | shares | 108,857,000 | 108,407,000 | ||
Common stock, shares outstanding | shares | 104,722,000 | 107,806,000 | ||
Treasury stock, shares | shares | 4,135,000 | 601,000 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Cash and cash equivalents related to VIEs | $ 293,427 | $ 191,464 | ||
Accounts receivable, net related to VIEs | 329,711 | 235,018 | ||
Costs and estimated earnings in excess of billings related to VIEs | 46,957 | 29,677 | ||
Other current assets related to VIEs | 353,455 | 104,447 | ||
Property and equipment, net related to VIEs | 19,754 | 21,868 | ||
Accounts payable related to VIEs | 284,089 | 279,597 | ||
Billings in excess of costs and estimated earnings related to VIEs | $ 869,906 | $ 282,351 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (382,917) | $ 453,702 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 128,261 | 135,281 |
Goodwill impairment | 453,100 | 0 |
Loss on assets held for sale and intangible assets impairment | 707,380 | 0 |
Deferred taxes | (112,880) | 72,562 |
Stock-based compensation expense | 48,324 | 56,174 |
Equity earnings | (5,750) | (14,003) |
Other operating expense (income), net | 1,870 | (777) |
Unrealized loss on foreign currency hedges | 611 | 3,179 |
Excess tax benefits from stock-based compensation | (326) | (15,474) |
Changes in operating assets and liabilities: | ||
Increase in receivables, net | (157,645) | (222,207) |
Change in contracts in progress, net | (783,027) | (994,458) |
(Increase) decrease in inventory | (13,111) | 17,106 |
(Decrease) increase in accounts payable | (28,671) | 68,105 |
(Increase) decrease in other current and non-current assets | (43,931) | 13,064 |
(Decrease) increase in other current and non-current liabilities | (36,355) | 62,407 |
Decrease in equity investments | 30,609 | 16,396 |
Change in other, net | 21,036 | (350) |
Net cash used in operating activities | (173,422) | (349,293) |
Cash Flows from Investing Activities | ||
Capital expenditures | (93,494) | (79,511) |
Advances to partners of proportionately consolidated ventures, net | (218,098) | 0 |
Proceeds from sale of property and equipment | 6,273 | 8,873 |
Change in other, net | (12,549) | (3,935) |
Net cash used in investing activities | (317,868) | (74,573) |
Cash Flows from Financing Activities | ||
Revolving facility and other short-term borrowings, net | 338,259 | 428,740 |
Long-term borrowings | 700,000 | 48,081 |
Advances from proportionately consolidated ventures, net | 184,029 | 0 |
Repayments on long-term debt | (354,479) | (75,484) |
Excess tax benefits from stock-based compensation | 326 | 15,474 |
Purchase of treasury stock | (210,748) | (66,639) |
Issuance of stock | 15,698 | 22,571 |
Dividends paid | (22,540) | (22,700) |
Distributions to noncontrolling interests | (28,662) | (47,695) |
Net cash provided by financing activities | 621,883 | 302,348 |
Effect of exchange rate changes on cash and cash equivalents | (58,016) | (27,540) |
Increase (decrease) in cash and cash equivalents | 72,577 | (149,058) |
Cash and cash equivalents, beginning of the year | 351,323 | 420,502 |
Cash and cash equivalents, end of the period | $ 423,900 | $ 271,444 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest [Member] |
Beginning Balance (in shares) at Dec. 31, 2013 | 107,478 | 379 | |||||
Beginning Balance at Dec. 31, 2013 | $ 2,507,438 | $ 1,275 | $ 753,742 | $ 1,733,409 | $ (23,914) | $ (119,933) | $ 162,859 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | 453,702 | 393,197 | 60,505 | ||||
Change in cumulative translation adjustment, net | (57,713) | (52,638) | (5,075) | ||||
Change in unrealized fair value of cash flow hedges, net | (3,081) | (3,081) | |||||
Change in unrecognized prior service pension credits/costs, net | (310) | (310) | |||||
Change in unrecognized actuarial pension gains/losses, net | 8,711 | 8,711 | |||||
Distributions to noncontrolling interests | (47,695) | (47,695) | |||||
Dividends paid ($0.21 per share) | (22,700) | (22,700) | |||||
Stock-based compensation expense | 56,174 | 56,174 | |||||
Issuance to treasury stock (in shares) | 450 | ||||||
Issuance to treasury stock | 0 | $ 6 | 35,483 | $ (35,489) | |||
Purchase of treasury stock (in shares) | (864) | 864 | |||||
Purchase of treasury stock | (66,639) | $ (66,639) | |||||
Issuance of stock (in shares) | 1,592 | (1,592) | |||||
Issuance of stock | 38,918 | (80,197) | $ 119,115 | ||||
Ending Balance (in shares) at Sep. 30, 2014 | 108,206 | 101 | |||||
Ending Balance at Sep. 30, 2014 | 2,866,805 | $ 1,281 | 765,202 | 2,103,906 | $ (6,927) | (167,251) | 170,594 |
Beginning Balance (in shares) at Dec. 31, 2014 | 107,806 | 601 | |||||
Beginning Balance at Dec. 31, 2014 | 2,876,303 | $ 1,283 | 776,864 | 2,246,770 | $ (24,428) | (262,397) | 138,211 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (382,917) | (438,690) | 55,773 | ||||
Change in cumulative translation adjustment, net | (61,069) | (57,231) | (3,838) | ||||
Change in unrealized fair value of cash flow hedges, net | 868 | 868 | |||||
Change in unrecognized prior service pension credits/costs, net | (623) | (623) | |||||
Change in unrecognized actuarial pension gains/losses, net | 12,035 | 12,035 | |||||
Distributions to noncontrolling interests | (28,662) | (28,662) | |||||
Dividends paid ($0.21 per share) | (22,540) | (22,540) | |||||
Stock-based compensation expense | 48,324 | 48,324 | |||||
Issuance to treasury stock (in shares) | 450 | ||||||
Issuance to treasury stock | 0 | $ 5 | 19,894 | $ (19,899) | |||
Purchase of treasury stock (in shares) | (4,480) | 4,480 | |||||
Purchase of treasury stock | (210,748) | $ (210,748) | |||||
Issuance of stock (in shares) | 1,396 | (1,396) | |||||
Issuance of stock | 11,031 | (47,418) | $ 58,449 | ||||
Ending Balance (in shares) at Sep. 30, 2015 | 104,722 | 4,135 | |||||
Ending Balance at Sep. 30, 2015 | $ 2,242,002 | $ 1,288 | $ 797,664 | $ 1,785,540 | $ (196,626) | $ (307,348) | $ 161,484 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | ORGANIZATION AND NATURE OF OPERATIONS Organization and Nature of Operations —Founded in 1889 , Chicago Bridge & Iron Company N.V. (“CB&I” or the “Company”) provides a wide range of services, including conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world, and is a provider of diversified government services. Our business is aligned into four operating groups, which represent our reportable segments. During the first quarter 2015, we realigned our four operating groups to reflect the present management oversight of our operations: (1) Engineering & Construction (formerly Engineering, Construction & Maintenance); (2) Fabrication Services; (3) Technology; and (4) Capital Services (formerly Environmental Solutions). See Note 16 for a discussion of our realigned operating groups and related financial information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Consolidation —The accompanying unaudited interim Condensed Consolidated Financial Statements (“Financial Statements”) are prepared in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”). These Financial Statements include all wholly-owned subsidiaries and those entities which we are required to consolidate. See the “Partnering Arrangements” section of this footnote for further discussion of our consolidation policy for those entities that are not wholly-owned. Significant intercompany balances and transactions are eliminated in consolidation. Basis of Presentation —We believe these Financial Statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our results of operations for the three and nine months ended September 30, 2015 and 2014 , our financial position as of September 30, 2015 and our cash flows for the nine months ended September 30, 2015 and 2014 . The December 31, 2014 Condensed Consolidated Balance Sheet was derived from our December 31, 2014 audited Consolidated Balance Sheet. We believe the disclosures accompanying these Financial Statements are adequate to make the information presented not misleading. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC for interim reporting periods. The results of operations and cash flows for the interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying Financial Statements should be read in conjunction with our Consolidated Financial Statements and notes thereto included in our 2014 Annual Report on Form 10-K (“ 2014 Annual Report”). Use of Estimates —The preparation of our Financial Statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe the most significant estimates and judgments are associated with revenue recognition for our contracts, including estimating costs and the recognition of incentive fees and unapproved change orders and claims; fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; valuation of deferred tax assets and financial instruments; the determination of liabilities related to self-insurance programs and income taxes; and consolidation determinations with respect to our partnering arrangements. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ from those included in the accompanying Financial Statements. Revenue Recognition —Our revenue is primarily derived from long-term contracts and is generally recognized using the percentage of completion (“POC”) method, primarily based on the percentage that actual costs-to-date bear to total estimated costs to complete each contract. We follow the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Revenue Recognition Topic 605-35 for accounting policies relating to our use of the POC method, estimating costs, and revenue recognition, including the recognition of incentive fees, unapproved change orders and claims, and combining and segmenting contracts. We primarily utilize the cost-to-cost approach to estimate POC as we believe this method is less subjective than relying on assessments of physical progress. Under the cost-to-cost approach, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in the accounting for contracts. Significant estimates that impact the cost to complete each contract are costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor or supplier progress; liquidated damages; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts in progress. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates. Backlog for each of our operating groups generally consists of several hundred contracts and our results may be impacted by changes in estimated project margins. For the three and nine months ended September 30, 2015 and 2014, individual projects with significant changes in estimated margins did not have a material net impact on our income from operations. Our long-term contracts are awarded on a competitively bid and negotiated basis and the timing of revenue recognition may be impacted by the terms of such contracts. We use a range of contracting options, including cost-reimbursable, fixed-price and hybrid, which has both cost-reimbursable and fixed-price characteristics. Fixed-price contracts, and hybrid contracts with a more significant fixed-price component, tend to provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Cost-reimbursable contracts, and hybrid contracts with a more significant cost-reimbursable component, generally provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of revenue recognition. Contract revenue for our long-term contracts recognized under the POC method reflects the original contract price adjusted for approved change orders and estimated recoveries for incentive fees, unapproved change orders and claims. We recognize revenue associated with incentive fees when the value can be reliably estimated and recovery is probable. We recognize revenue associated with unapproved change orders and claims to the extent the related costs have been incurred, the value can be reliably estimated and recovery is probable. Our recorded incentive fees, unapproved change orders and claims reflect our best estimate of recovery amounts; however, the ultimate resolution and amounts received could differ from these estimates. See Note 15 for additional discussion of our recorded unapproved change orders, claims, incentives and other contract recoveries. With respect to our engineering, procurement, and construction (“EPC”) services, our contracts are not segmented between types of services, such as engineering and construction, if each of the EPC components is negotiated concurrently or if the pricing of any such services is subject to the ultimate negotiation and agreement of the entire EPC contract. However, an EPC contract including technology or fabrication services may be segmented if we satisfy the segmenting criteria in ASC 605-35. Revenue recorded in these situations is based on our prices and terms for similar services to third party customers. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue without segmenting. In some instances, we may combine contracts that are entered into in multiple phases, but are interdependent and include pricing considerations by us and the customer that are impacted by all phases of the project. Otherwise, if each phase is independent of the other and pricing considerations do not give effect to another phase, the contracts will not be combined. Cost of revenue for our long-term contracts includes direct contract costs, such as materials and labor, and indirect costs that are attributable to contract activity. The timing of when we bill our customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Projects with cumulative costs and estimated earnings recognized to date in excess of cumulative billings is reported on the Condensed Consolidated Balance Sheet (“Balance Sheet”) as costs and estimated earnings in excess of billings. Projects with cumulative billings in excess of costs and estimated earnings recognized to date is reported on the Balance Sheet as billings in excess of costs and estimated earnings. The net balances on our Balance Sheet are collectively referred to as Contracts in Progress, net, and the components of these balances at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Asset (1) Liability (1) Asset Liability Costs and estimated earnings on contracts in progress $ 16,625,872 $ 21,023,415 $ 20,119,444 $ 26,052,767 Billings on contracts in progress (15,963,528 ) (22,838,510 ) (19,344,800 ) (27,479,495 ) Margin fair value liability for acquired contracts (2) — (13,903 ) — (558,760 ) Contracts in Progress, net $ 662,344 $ (1,828,998 ) $ 774,644 $ (1,985,488 ) (1) The Contracts in Progress, net asset and liability balances reflect the impact of reclassifying approximately $1,244,100 and $505,300 (including approximately $458,700 of margin fair value liability), respectively, to assets held for sale and liabilities held for sale, on our Balance Sheet as a result of the agreement to sell our Nuclear Operations, as discussed in Note 4 . (2) The balance represents a margin fair value liability associated with long-term contracts acquired in connection with our acquisition of The Shaw Group Inc. on February 13, 2013 (the “Acquisition Closing Date”). The margin fair value liability was approximately $745,500 at the Acquisition Closing Date and is recognized as revenue on a POC basis as the applicable projects progress. Revenue and the related income from operations recognized during the three and nine months ended September 30, 2015 was approximately $29,500 and $86,100 , respectively, compared with approximately $33,500 and $94,800 , respectively, for the comparable 2014 periods. Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At September 30, 2015 and December 31, 2014 , accounts receivable included contract retentions of approximately $64,800 and $53,000 , respectively. Contract retentions due beyond one year were not material at September 30, 2015 or December 31, 2014 . Revenue for our service contracts that do not satisfy the criteria for revenue recognition under the POC method is recorded at the time services are performed. Revenue associated with incentive fees for these contracts is recognized when earned. Unbilled receivables for our service contracts are recorded within accounts receivable and were approximately $106,100 and $66,900 at September 30, 2015 and December 31, 2014 , respectively. Revenue for our pipe and steel fabrication and catalyst manufacturing contracts that are independent of an EPC contract, or for which we satisfy the segmentation criteria discussed above, is recognized upon shipment of the fabricated or manufactured units. During the fabrication or manufacturing process, all related direct and allocable indirect costs are capitalized as work in process inventory and such costs are recorded as cost of revenue at the time of shipment. Our billed and unbilled revenue may be exposed to potential credit risk if our customers should encounter financial difficulties, and we maintain reserves for specifically-identified potential uncollectible receivables. At September 30, 2015 and December 31, 2014 , our allowances for doubtful accounts were not material. Other Operating (Income) Expense, Net — Other operating (income) expense, net , generally represents (gains) losses associated with the sale or disposition of property and equipment. For the nine months ended September 30, 2015 , other operating (income) expense, net also included a gain of approximately $7,500 related to the contribution of a technology to our unconsolidated Chevron-Lummus Global (“CLG”) joint venture and a foreign exchange loss of approximately $11,000 associated with the re-measurement of certain non-U.S. Dollar denominated net assets, both of which occurred during the three months ended March 31, 2015. Integration Related Costs —For the three and nine months ended September 30, 2014 , integration related costs of $4,563 and $22,167 , respectively, primarily related to facility consolidations, including the associated accrued future lease costs for vacated facilities and unutilized capacity, personnel relocation and severance related costs, and systems integration costs. Recoverability of Goodwill —Goodwill is not amortized to earnings, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. We identify a potential impairment by comparing the fair value of the applicable reporting unit to its net book value, including goodwill. If the net book value exceeds the fair value of the reporting unit, an indication of potential impairment exists, and we measure the impairment by comparing the carrying value of the reporting unit's goodwill to its implied fair value. To determine the fair value of our reporting units and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profiles of our reporting units into our valuation model. This is consistent with the methodology used to determine the fair value of our reporting units in previous years. We generally do not utilize a market approach given the lack of relevant information generated by market transactions involving comparable businesses. See Note 6 for additional disclosures associated with our goodwill and related impairment recorded during the three months ended September 30, 2015. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 3 to 20 years, absent any indicators of impairment. We review tangible assets and finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, the estimated future cash flow associated with the asset or asset group will be compared to the asset’s carrying amount to determine if an impairment exists. See Note 6 for additional disclosures associated with our intangible assets and related impairment recorded during the three months ended September 30, 2015. Earnings Per Share (“EPS”)— Basic EPS is calculated by dividing net income attributable to CB&I by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of dilutive securities, consisting of restricted shares, performance shares (where performance criteria have been met), stock options and directors’ deferred-fee shares. See Note 3 for calculations associated with basic and diluted EPS. Cash Equivalents —Cash equivalents are considered to be highly liquid securities with original maturities of three months or less. Inventory —Inventory is recorded at the lower of cost or market and cost is determined using the first-in-first-out or weighted-average cost method. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. An allowance for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, estimates of future sales expectations and salvage value. See Note 5 for additional disclosures associated with our inventory. Foreign Currency —The nature of our business activities involves the management of various financial and market risks, including those related to changes in foreign currency exchange rates. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment in accumulated other comprehensive income (loss) (“AOCI”) which is net of tax, where applicable. With the exception of a foreign exchange loss of approximately $11,000 included within other operating (income) expense, net related to the re-measurement of certain non-U.S. Dollar denominated net assets during the three months ended March 31, 2015, foreign currency transactional and re-measurement exchange gains (losses) are included within cost of revenue and were not material for the three and nine months ended September 30, 2015 and 2014 . Financial Instruments —We utilize derivative instruments in certain circumstances to mitigate the effects of changes in foreign currency exchange rates and interest rates, as described below: • Foreign Currency Exchange Rate Derivatives —We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency-related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges are recognized within cost of revenue. • Interest Rate Derivatives —At September 30, 2015 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $378,750 of our outstanding $475,000 unsecured term loan (the “Term Loan”). The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through September 30, 2015 . Accordingly, changes in the fair value of the swap arrangement are included in AOCI until the associated underlying exposure impacts our earnings. For those contracts designated as cash flow hedges, we document all relationships between the derivative instruments and associated hedged items, as well as our risk-management objectives and strategy for undertaking hedge transactions. This process includes linking all derivatives to specific firm commitments or highly-probable forecasted transactions. We continually assess, at inception and on an ongoing basis, the effectiveness of derivative instruments in offsetting changes in the cash flow of the designated hedged items. Hedge accounting designation is discontinued when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flow of the hedged item, including firm commitments or forecasted transactions, (2) the derivative is sold, terminated, exercised, or expires, (3) it is no longer probable that the forecasted transaction will occur, or (4) we determine that designating the derivative as a hedging instrument is no longer appropriate. See Note 10 for additional discussion of our financial instruments. Income Taxes —Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis using currently enacted income tax rates for the years in which the differences are expected to reverse. A valuation allowance is provided to offset any net deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our net DTAs depends upon our ability to generate sufficient future taxable income of the appropriate character and in the appropriate jurisdictions. Income tax and associated interest reserves, where applicable, are recorded in those instances where we consider it more likely than not that additional tax will be due in excess of amounts reflected in income tax returns filed worldwide, irrespective of whether or not we have received tax assessments. We continually review our exposure to additional income tax obligations and, as further information is known or events occur, changes in our tax and interest reserves may be recorded within income tax expense and interest expense, respectively. Partnering Arrangements — In the ordinary course of business, we execute specific projects and conduct certain operations through joint venture, consortium and other collaborative arrangements (collectively referred to as “venture(s)”). We have various ownership interests in these ventures, with such ownership typically being proportionate to our decision-making and distribution rights. The ventures generally contract directly with the third party customer; however, services may be performed directly by the ventures, or may be performed by us, our partners, or a combination thereof. Venture net assets consist primarily of working capital and property and equipment, and assets may be restricted from being used to fund obligations outside of the venture. These ventures typically have limited third party debt or have debt that is non-recourse in nature; however, they may provide for capital calls to fund operations or require participants in the venture to provide additional financial support, including advance payment or retention letters of credit. Each venture is assessed at inception and on an ongoing basis as to whether it qualifies as a VIE under the consolidations guidance in ASC 810. A venture generally qualifies as a VIE when it (1) meets the definition of a legal entity, (2) absorbs the operational risk of the projects being executed, creating a variable interest, and (3) lacks sufficient capital investment from the partners, potentially resulting in the venture requiring additional subordinated financial support, if necessary, to finance its future activities. If at any time a venture qualifies as a VIE, we perform a qualitative assessment to determine whether we are the primary beneficiary of the VIE and, therefore, need to consolidate the VIE. We are the primary beneficiary if we have (1) the power to direct the economically significant activities of the VIE and (2) the right to receive benefits from, and obligation to absorb losses of, the VIE. If the venture is a VIE and we are the primary beneficiary, or we otherwise have the ability to control the venture, we consolidate the venture. If we are not determined to be the primary beneficiary of the VIE, or only have the ability to significantly influence, rather than control the venture, we do not consolidate the venture. We account for unconsolidated ventures using proportionate consolidation for both our Balance Sheet and Statement of Operations when we meet the applicable accounting criteria to do so and utilize the equity method otherwise. See Note 7 for additional discussion of our material partnering arrangements. New Accounting Standards —In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current industry-specific guidance, including ASC 605-35. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue as the entity satisfies each performance obligation. ASU 2014-09 is effective for us beginning in the first quarter 2018. Our adoption of ASU 2014-09 will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. We are assessing the impact that the new standard will have on our Financial Statements. In February 2015, the FASB issued ASU 2015-02, which amends existing consolidation requirements in ASC 810 and will require entities to evaluate their consolidation analysis for subsidiaries that are not wholly-owned. ASU 2015-02, which is effective for us beginning in the first quarter 2016, includes amended guidance associated with: (1) determining the consolidation model and assessing control for limited partnerships and similar entities; (2) determining when fees paid to decision makers or service providers are variable interests; and (3) evaluating interests held by de facto agents or related parties of the reporting entity. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial position, results of operations, or cash flows. In April 2015, the FASB issued ASU 2015-03, which changes the presentation of debt issuance costs. Upon adoption, debt issuance costs would be presented as a direct deduction from the related debt liability rather than as an asset, as currently presented. ASU 2015-03 is effective for us beginning in the first quarter 2016. We do not expect the adoption of ASU 2015-03 to have a material impact on our consolidated financial position, results of operations, or cash flows. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE A reconciliation of weighted average basic shares outstanding to weighted average diluted shares outstanding and the computation of basic and diluted EPS are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net (loss) income attributable to CB&I $ (740,433 ) $ 161,842 $ (438,690 ) $ 393,197 Weighted average shares outstanding—basic 105,454 108,199 107,440 107,993 Effect of restricted shares/performance shares/stock options (1) — 1,000 — 1,031 Effect of directors’ deferred-fee shares (1) — 10 — 37 Weighted average shares outstanding—diluted 105,454 109,209 107,440 109,061 Net (loss) income attributable to CB&I per share: Basic $ (7.02 ) $ 1.50 $ (4.08 ) $ 3.64 Diluted $ (7.02 ) $ 1.48 $ (4.08 ) $ 3.61 (1) The effect of restricted, performance, stock options and directors' deferred-fee shares were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2015 due to the net loss for the periods. Antidilutive shares excluded from diluted EPS were not material for the three and nine months ended September 30, 2014 . |
DISPOSITION OF NUCLEAR OPERATIO
DISPOSITION OF NUCLEAR OPERATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITION OF NUCLEAR OPERATIONS | DISPOSITION OF NUCLEAR OPERATIONS Transaction Summary —On October 27, 2015 , we entered into a definitive agreement (the “Agreement”) with Westinghouse Electric Company (“WEC”) in which WEC will acquire our power nuclear construction business, including the Nuclear Projects discussed further in Note 15 (collectively, “Nuclear Operations”). Our Nuclear Operations are included within our Engineering & Construction operating group. Under the Agreement, we anticipate receiving estimated transaction consideration for the Nuclear Operations of approximately $161,000 , which will be received upon WEC’s substantial completion of the Nuclear Projects. The present value of the estimated consideration is approximately $143,000 (the “Estimated Sales Proceeds”). In addition, our Fabrication Services operating group will continue to supply discrete scopes of modules, fabricated pipe and specialty services to WEC (collectively, “Ongoing WEC Projects”) related to the Nuclear Projects. As part of the Agreement, we agreed not to pursue existing change orders and claims against WEC for certain Ongoing WEC Projects and we agreed to receive certain milestone based payments of up to $68,000 for the Ongoing WEC Projects. The net impact of foregoing the pursuit of change orders and claims and accepting the milestone based payments on the Ongoing WEC Projects was not material. The transaction is expected to close in the fourth quarter 2015, and is anticipated to allow us to achieve our capital allocation goals through reduced working capital demands and improved operating cash flows, and provide greater clarity with respect to the risk profile of our business. We have classified the assets and liabilities of our Nuclear Operations as held for sale on our September 30, 2015 Balance Sheet as we believe the completion of the transaction is probable. Further, as a result of the Agreement, during the three months ended September 30, 2015 , we recorded a non-cash pre-tax charge of approximately $1,160,500 (approximately $904,200 after-tax) related to the impairment of goodwill (approximately $453,100 ) and intangible assets (approximately $79,100 ) and an estimated loss on assets held for sale (approximately $628,300 ). The net tax benefit (approximately $256,300 ) on the charge reflects the non-deductibility of the goodwill impairment. Under the Agreement, the amount of our loss will be impacted by changes in our working capital on the Nuclear Projects between September 30, 2015 and the closing date of the transaction. We estimate such changes could result in a total estimated pre-tax charge related to the sale of the Nuclear Operations of $1,300,000 to $1,600,000 (approximately $1,000,000 to $1,200,000 after-tax). Disposition Related Charges —A summary of the pre-tax charge for the three and nine months ended September 30, 2015 related to the disposition of our Nuclear Operations is as follows: Three and Nine Months Ended September 30, 2015 Loss on assets held for sale (see below) $ 628,280 Intangible assets impairment (Note 6) 79,100 Loss on assets held for sale and intangible assets impairment 707,380 Goodwill impairment (Note 6) 453,100 Total pre-tax charge $ 1,160,480 The impact of the loss on assets held for sale and intangible assets impairment is included in “loss on assets held for sale and intangible assets impairment” in our Statement of Operations, and the impact of the goodwill impairment is included in “goodwill impairment” in our Statement of Operations. See Note 6 for further discussion of our goodwill and intangible assets impairment charges. Assets Held for Sale —The fair value of the assets and liabilities held for sale at September 30, 2015 is summarized as follows: September 30, 2015 Assets Accounts receivable $ 135,401 Costs and estimated earnings in excess of billings 1,244,128 Property and equipment, net 129,425 Other assets 5,755 Assets held for sale before loss 1,514,709 Loss on assets held for sale (see above) (628,280 ) Assets held for sale $ 886,429 Liabilities Margin fair value liability (Note 2) $ 458,722 Billings in excess of costs and estimated earnings 46,569 Accounts payable 209,017 Other liabilities 41,121 Liabilities held for sale $ 755,429 Estimated Sales Proceeds (net of estimated transaction costs of $12,000) $ 131,000 The fair value of assets and liabilities held for sale in the table above represents the Estimated Sales Proceeds (net of estimated transaction costs), is considered level 2 in the valuation hierarchy and is based upon the present value of the estimated transaction consideration to be received under the Agreement. Results of Nuclear Operations —The revenue and pre-tax income of our Nuclear Operations for the three and nine months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ 502,922 $ 510,571 $ 1,555,508 $ 1,310,668 Pre-tax income $ 45,715 $ 41,900 $ 163,115 $ 112,600 |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY The components of inventory at September 30, 2015 and December 31, 2014 were as follows: September 30, December 31, Raw materials $ 155,686 $ 162,451 Work in process 42,994 38,232 Finished goods 97,988 85,472 Total $ 296,668 $ 286,155 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill Goodwill Summary and Reporting Units —At September 30, 2015 and December 31, 2014 , our goodwill balances were $3,722,344 and $4,195,231 , respectively, attributable to the excess of the purchase price over the fair value of net assets acquired in connection with our acquisitions. The change in goodwill for the nine months ended September 30, 2015 was as follows: Total Balance at December 31, 2014 $ 4,195,231 Impairment charge (described below) (453,100 ) Foreign currency translation (16,188 ) Amortization of tax goodwill in excess of book goodwill (3,599 ) Balance at September 30, 2015 $ 3,722,344 As discussed further in Note 2 , goodwill is not amortized to earnings, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. At December 31, 2014 , we had the following seven reporting units within our four operating groups, which represent our reportable segments as discussed further in Note 16 : • Engineering, Construction & Maintenance —Our Engineering, Construction & Maintenance operating group included three reporting units: Oil & Gas, Power and Plant Services. • Fabrication Services —Our Fabrication Services operating group included two reporting units: Steel Plate Structures and Fabrication & Manufacturing. • Technology —Our Technology operating group represented a reporting unit. • Environmental Solutions —Our Environmental Solutions operating group represented a reporting unit. As part of our annual impairment assessment, in the fourth quarter 2014 , we performed a quantitative assessment of goodwill for each of the aforementioned reporting units. Based upon this quantitative assessment, the fair value of each of our reporting units exceeded their respective net book values, and accordingly, no impairment charge was necessary during 2014 . Reporting Unit Realignment —During the three months ended March 31, 2015, we realigned our four operating groups. In connection therewith, we realigned our reporting units, and accordingly, we currently have the following eight reporting units within our four realigned operating groups: • Engineering & Construction (formerly Engineering, Construction & Maintenance) —Our Engineering & Construction operating group includes two reporting units: Oil & Gas and Power (after the removal of our Nuclear Operations discussed further below). Our Plant Services reporting unit was reclassified to our realigned Capital Services operating group, as noted below. • Fabrication Services —Our Fabrication Services operating group includes three reporting units: Steel Plate Structures, Fabrication & Manufacturing, and Engineered Products. Our Engineered Products reporting unit represents a portion of our previous Technology reporting unit. • Technology —Our Technology operating group continues to represent a reporting unit, consisting of the remaining portion of our previous Technology reporting unit, after reclassification of the Engineered Products reporting unit to Fabrication Services, as noted above. • Capital Services (formerly Environmental Solutions) —Our Capital Services operating group includes two reporting units: Facilities & Plant Services and Federal Services. Our Facilities & Plant Services reporting unit represents our previous Plant Services reporting unit and a portion of our previous Environmental Solutions reporting unit. Our Federal Services reporting unit represents the remaining portion of our previous Environmental Solutions reporting unit. In conjunction with the aforementioned realignment of our operating groups, we allocated goodwill among our new and realigned reporting units based on the relative fair value of the reporting units being realigned. As a result, during the three months ended March 31, 2015, we performed a quantitative assessment of goodwill for each of the reporting units impacted by our operating group realignment, which included Engineered Products, Technology, Facilities & Plant Services, and Federal Services. Based on this quantitative assessment, the fair value of each of the reporting units impacted by our operating group realignment exceeded their respective net book values, and accordingly, no impairment charge was necessary as a result of the realignment. Goodwill Impairment —As discussed further in Note 4 , as a result of the Agreement to sell our Nuclear Operations, we classified the assets and liabilities of our Nuclear Operations as held for sale at September 30, 2015 . Our Nuclear Operations are included within our Engineering & Construction operating group and were part of our Power reporting unit prior to the Agreement. Accordingly, in conjunction with the Agreement and classification of our Nuclear Operations as held for sale, we allocated the Power reporting unit’s goodwill between our Nuclear Operations and the remaining portion of the Power reporting unit after removal of the Nuclear Operations (“Retained Power Operations”), based on their relative fair values. Further, the Retained Power Operations became our Power reporting unit. The fair value of the Nuclear Operations was determined based on the Estimated Sales Proceeds. The fair value of the Retained Power Operations was determined on a basis consistent with the basis used for our annual impairment assessment discussed in Note 2. Based on the aforementioned, the net book value of the Nuclear Operations (after allocating goodwill) exceeded its fair value, and accordingly, we concluded that the carrying value of its goodwill was impaired. We also performed a quantitative assessment of goodwill for the Retained Power Operations and determined that the net book value of the Retained Power Operations (after allocating goodwill) exceeded its fair value, and accordingly, we concluded that the carrying value of its goodwill was partially impaired. The amount of goodwill impairment charge for the Retained Power Operations was determined by comparing the carrying value of its goodwill with its implied fair value. As a result of the aforementioned, during the three months ended September 30, 2015 , we recorded a non-cash goodwill impairment charge of approximately $453,100 , of which approximately $191,000 related to the Nuclear Operations and approximately $262,100 related to the Retained Power Operations. Accordingly, at September 30, 2015, the adjusted carrying value of goodwill for the Nuclear Operations held for sale and the Retained Power Operations was zero and approximately $1,461,400 , respectively. The impairment charge is included in “goodwill impairment” in our Statement of Operations. During the nine months ended September 30, 2015 , no other indicators of goodwill impairment were identified for any of our reporting units. If, based on future assessments our goodwill is deemed to be impaired, the impairment would result in a charge to earnings in the period of impairment. There can be no assurance that future goodwill impairment tests will not result in charges to earnings. Other Intangibles The following table provides a summary of our finite-lived intangible assets at September 30, 2015 and December 31, 2014 , including weighted-average useful lives for each major intangible asset class and in total: September 30, 2015 December 31, 2014 Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets Backlog and customer relationships (1)(2) 17 years $ 281,072 $ (60,862 ) $ 380,586 $ (71,257 ) Process technologies 15 years 272,595 (111,990 ) 287,459 (105,646 ) Tradenames (2) 10 years 64,872 (21,857 ) 85,613 (20,301 ) Total (3) 16 years $ 618,539 $ (194,709 ) $ 753,658 $ (197,204 ) (1) Backlog and customer relationships intangibles totaling approximately $11,000 became fully amortized during the three months ended March 31, 2015 and were removed from the gross carrying and accumulated amortization balances above. (2) During the three months ended September 30, 2015 , we recorded an impairment charge of approximately $79,100 related to customer relationship and tradename intangible assets as a result of the Agreement to sell our Nuclear Operations described further in Note 4 . The impairment was based on a comparison of the carrying value of the intangible assets to their fair value (indicated by the Estimated Sales Proceeds), which resulted in an impairment of all intangible assets of the Nuclear Operations. The impairment charge is included in "loss on assets held for sale and intangible assets impairment" in our Statement of Operations and relates to our Engineering and Construction operating group. The related intangibles were removed from the gross carrying and accumulated amortization balances above. We noted no other indicators of impairment during the nine months ended September 30, 2015 . (3) The remaining decrease in other intangible assets during the nine months ended September 30, 2015 primarily related to amortization expense of approximately $45,500 and the impact of foreign currency translation. |
PARTNERING ARRANGEMENTS
PARTNERING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
PARTNERING ARRANGEMENTS | PARTNERING ARRANGEMENTS As discussed in Note 2 , we account for our unconsolidated ventures using either proportionate consolidation or the equity method. Further, we consolidate any venture that is determined to be a VIE for which we are the primary beneficiary, or which we otherwise effectively control. Proportionately Consolidated Ventures —The following is a summary description of our significant unconsolidated joint ventures which have been accounted for using proportionate consolidation: • CB&I/Zachry— We have a venture with Zachry (CB&I— 50% / Zachry— 50% ) to perform EPC work for two liquefied natural gas (“LNG”) liquefaction trains in Freeport, Texas. Our proportionate share of the venture project value is approximately $2,700,000 . In addition, we have subcontract and risk sharing arrangements with Chiyoda to support our responsibilities to the venture. The costs of these arrangements are recorded in cost of revenue. • CB&I/Zachry/Chiyoda— We have a venture with Zachry and Chiyoda (CB&I— 33.3% / Zachry— 33.3% / Chiyoda— 33.3% ) to perform EPC work for an additional LNG liquefaction train at the aforementioned project site in Freeport, Texas. Our proportionate share of the venture project value is approximately $675,000 . • CB&I/Chiyoda— We have a venture with Chiyoda (CB&I— 50% / Chiyoda— 50% ) to perform EPC work for three LNG liquefaction trains in Hackberry, Louisiana. Our proportionate share of the venture project value is approximately $3,100,000 . The following table presents summarized balance sheet information for our proportionately consolidated ventures: September 30, 2015 December 31, 2014 CB&I/Zachry Current assets (1) $ 280,974 $ 85,484 Current liabilities $ 399,057 $ 149,891 CB&I/Zachry/Chiyoda Current assets (1) $ 50,608 $ — Current liabilities $ 52,632 $ — CB&I/Chiyoda Current assets (1) $ 336,420 $ 102,035 Current liabilities $ 386,711 $ 124,367 (1) Our venture arrangements allow for excess working capital of the ventures to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. Accordingly, at a reporting period end a venture may have advances to its partners which are reflected as an advance receivable within current assets of the venture. At September 30, 2015 and December 31, 2014 , other current assets on the Balance Sheet included approximately $289,300 and $71,200 , respectively, related to our proportionate share of advances from the ventures to our venture partners. In addition, at September 30, 2015 and December 31, 2014 other current liabilities on the Balance Sheet included approximately $292,700 and $108,700 , respectively, related to advances to CB&I from the ventures. Equity Method Ventures —The following is a summary description of our significant unconsolidated joint ventures which have been accounted for using the equity method: • Chevron-Lummus Global (“CLG”)— We have a venture with Chevron (CB&I— 50% / Chevron— 50% ), which provides licenses, engineering services and catalyst, primarily for the refining industry. As sufficient capital investments in CLG have been made by the venture partners, it does not qualify as a VIE. Additionally, we do not effectively control CLG and therefore do not consolidate the venture. • NetPower LLC (“NetPower”)— We have a venture with Exelon and 8 Rivers Capital (CB&I— 33.3% / Exelon— 33.3% / 8 Rivers Capital— 33.3% ), which was formed for the purpose of developing, commercializing and monetizing a new natural gas power system that produces zero atmospheric emissions, including carbon dioxide. NetPower is building a first-of-its-kind demonstration plant which will be funded by contributions and services from the venture partners and other parties. Our cash commitment for NetPower totals $47,300 and at September 30, 2015 , we had made cumulative investments of approximately $14,900 . Consolidated Ventures— The following is a summary description of the significant joint ventures we consolidate due to their designation as VIEs for which we are the primary beneficiary: • CB&I/Kentz— We have a venture with Kentz (CB&I— 65% / Kentz— 35% ) to perform the structural, mechanical, piping, electrical and instrumentation work on, and to provide commissioning support for, three LNG trains, including associated utilities and a gas processing and compression plant, for the Gorgon LNG project, located on Barrow Island, Australia. Our venture project value is approximately $5,000,000 . • CB&I/AREVA— We have a venture with AREVA (CB&I — 52% / AREVA— 48% ) to design, license and construct a mixed oxide fuel fabrication facility in Aiken, South Carolina, which will be used to convert weapons-grade plutonium into fuel for nuclear power plants for the U.S. Department of Energy. Our venture project value is approximately $5,500,000 . The following table presents summarized balance sheet information for our consolidated VIEs: September 30, December 31, CBI/Kentz Current assets $ 215,183 $ 220,930 Current liabilities $ 223,565 $ 196,277 CBI/AREVA Current assets $ 34,286 $ 27,006 Current liabilities $ 69,479 $ 73,124 All Other (1) Current assets $ 133,974 $ 130,458 Non-current assets 20,410 22,045 Total assets $ 154,384 $ 152,503 Current liabilities $ 40,115 $ 36,534 (1) Other ventures that we consolidate due to their designation as VIEs are not individually material to our financial results and are therefore aggregated as “All Other”. Other— The use of these ventures exposes us to a number of risks, including the risk that our partners may be unable or unwilling to provide their share of capital investment to fund the operations of the venture or to complete their obligations to us, the venture, or ultimately, our customer. This could result in unanticipated costs to complete the projects, liquidated damages or contract disputes, including claims against our partners. |
FACILITY REALIGNMENT LIABILITY
FACILITY REALIGNMENT LIABILITY | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
FACILITY REALIGNMENT LIABILITY | FACILITY REALIGNMENT LIABILITY At September 30, 2015 and December 31, 2014 , we had a facility realignment liability related to the recognition of future operating lease expense for vacated facility capacity where we remain contractually obligated to a lessor. The liability was recognized within other current and non-current liabilities, as applicable, based upon the anticipated timing of payments. The following table summarizes the movements in the facility realignment liability during the nine months ended September 30, 2015 : Total Balance at December 31, 2014 $ 14,354 Charges 1,582 Cash payments (6,915 ) Balance at September 30, 2015 $ 9,021 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our outstanding debt at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, Current Revolving facility and other short-term borrowings $ 503,000 $ 164,741 Current maturities of long-term debt 143,646 105,997 Current debt $ 646,646 $ 270,738 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) $ 475,000 $ 825,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) 500,000 — Senior Notes: $800,000 senior notes, series A-D (fixed interest ranging from 4.15% to 5.30%) 800,000 800,000 Second Senior Notes: $200,000 senior notes (fixed interest of 4.53%) 200,000 — Other long-term debt 40,676 45,155 Less: current maturities of long-term debt (143,646 ) (105,997 ) Long-term debt $ 1,872,030 $ 1,564,158 Committed Facilities —We have a five -year, $1,350,000 , committed and unsecured revolving facility (the “Revolving Facility”) with Bank of America (“BofA”), as administrative agent, and BNP Paribas Securities Corp., BBVA Compass, Credit Agricole Corporate and Investment Bank (“Credit Agricole”) and The Royal Bank of Scotland plc, each as syndication agents, which expires in October 2018. The Revolving Facility was amended on July 8, 2015 to remove the $675,000 borrowing sublimit while maintaining a $270,000 financial letter of credit sublimit. In conjunction with the sale of our Nuclear Operations, the Revolving Facility was amended to reset our financial and restrictive covenants which resulted in a maximum leverage ratio of 3.25 , a minimum fixed charge coverage ratio of 1.75 , and a minimum net worth level calculated as $1,560,389 at September 30, 2015 . The Revolving Facility also includes customary restrictions regarding subsidiary indebtedness, sales of assets, liens, investments, type of business conducted, and mergers and acquisitions, and includes a trailing twelve-month limitation of $250,000 for dividend payments and share repurchases if our leverage ratio exceeds 1.50 (unlimited if our leverage ratio is equal to or below 1.50 ), among other restrictions. In addition to interest on debt borrowings, we are assessed quarterly commitment fees on the unutilized portion of the facility as well as letter of credit fees on outstanding instruments. The interest, commitment fee, and letter of credit fee percentages are based upon our quarterly leverage ratio. In the event we borrow funds under the facility, interest is assessed at either prime plus an applicable floating margin ( 3.25% and 0.50% , respectively at September 30, 2015 ), or LIBOR plus an applicable floating margin ( 0.19% and 1.50% , respectively at September 30, 2015 ). At September 30, 2015 , we had $180,000 of outstanding borrowings under the facility and $201,633 of outstanding letters of credit under the facility (none of which were financial letters of credit), providing $968,367 of available capacity. During the nine months ended September 30, 2015 , our weighted average interest rate on borrowings under the facility was approximately 1.8% , inclusive of the applicable floating margin. We have a five -year, $800,000 , committed and unsecured revolving credit facility (the “Second Revolving Facility”) with BofA, as administrative agent, and BNP Paribas Securities Corp., BBVA Compass, Credit Agricole and Bank of Tokyo Mitsubishi UFJ, each as syndication agents, which expires in July 2020. The Second Revolving Facility was amended on July 8, 2015 to increase the overall capacity from the previous capacity of $650,000 , extend the expiration date from the previous expiration of February 2018, remove the $487,500 borrowing sublimit, and provide a financial letter of credit sublimit of $50,000 . The Second Revolving Facility supplements our Revolving Facility, and has financial and restrictive covenants similar to those noted above for the Revolving Facility. In addition to interest on debt borrowings, we are assessed quarterly commitment fees on the unutilized portion of the facility as well as letter of credit fees on outstanding instruments. The interest, commitment fee, and letter of credit fee percentages are based upon our quarterly leverage ratio. In the event we borrow funds under the facility, interest is assessed at either prime plus an applicable floating margin ( 3.25% and 0.50% at September 30, 2015 ), or LIBOR plus an applicable floating margin ( 0.19% and 1.50% at September 30, 2015 ). At September 30, 2015 , we had no outstanding borrowings and $18,407 of outstanding letters of credit under the facility (including $3,992 of financial letters of credit), providing $781,593 of available capacity. During the nine months ended September 30, 2015 , our weighted average interest rate on borrowings under the facility was approximately 3.8% , inclusive of the applicable floating margin. Uncommitted Facilities —We also have various short-term, uncommitted letter of credit and borrowing facilities (the “Uncommitted Facilities”) across several geographic regions of approximately $3,856,147 , of which $440,000 may be utilized for borrowings ( $439,614 at September 30, 2015 , net of letter of credit utilization of $386 under certain facilities). At September 30, 2015 , we had $323,000 of outstanding borrowings and $1,183,140 of outstanding letters of credit under these facilities, providing $2,350,007 of available capacity, of which $116,614 may be utilized for borrowings. During the nine months ended September 30, 2015 , our weighted average interest rate on borrowings under the facility was approximately 1.2% . Term Loans —At September 30, 2015 , we had $475,000 outstanding on our four -year, $1,000,000 unsecured term loan (the “Term Loan”) with BofA as administrative agent. Interest and principal under the Term Loan is payable quarterly in arrears and bears interest at LIBOR plus an applicable floating margin ( 0.19% and 1.50% , respectively at September 30, 2015 ). However, we continue to utilize an interest rate swap to hedge against $378,750 of the outstanding $475,000 Term Loan, which resulted in a weighted average interest rate of approximately 2.0% during the nine months ended September 30, 2015 , inclusive of the applicable floating margin. Future annual maturities for the Term Loan are $25,000 , $150,000 and $300,000 for the remainder of 2015 , 2016 and 2017 , respectively. The Term Loan includes financial and restrictive covenants similar to those noted above for the Revolving Facility. On July 8, 2015 , we entered into a $500,000 term loan (the “Second Term Loan”). The Second Term Loan required that $275,000 of the loan proceeds be utilized to prepay a portion of the 2017 principal due on the Term Loan. Interest and principal under the Second Term Loan is payable quarterly in arrears beginning in June 2017 and bears interest at LIBOR plus an applicable floating margin (rates are equivalent to the Term Loan). During the nine months ended September 30, 2015 , our weighted average interest rate on the Second Term was approximately 1.7% , inclusive of the applicable floating margin. Future annual maturities for the Second Term Loan are $56,250 , $75,000 , $75,000 and $293,750 for 2017 , 2018 , 2019 , and 2020 , respectively. The Second Term Loan has financial and restrictive covenants similar to those noted above for the Revolving Facility. Senior Notes— We have a series of senior notes totaling $800,000 in the aggregate (the “Senior Notes”), with Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Credit Agricole, as administrative agents. The Senior Notes have financial and restrictive covenants similar to those noted above for the Revolving Facility. The Senior Notes include Series A through D, which contain the following terms: • Series A—Interest due semi-annually at a fixed rate of 4.15% , with principal of $150,000 due in December 2017 • Series B—Interest due semi-annually at a fixed rate of 4.57% , with principal of $225,000 due in December 2019 • Series C—Interest due semi-annually at a fixed rate of 5.15% , with principal of $275,000 due in December 2022 • Series D—Interest due semi-annually at a fixed rate of 5.30% , with principal of $150,000 due in December 2024 On July 30, 2015 , we issued senior notes totaling $200,000 (the “Second Senior Notes”), with Bank of America, N.A. as administrative agent. Interest is due semi-annually at a fixed rate of 4.53% , with principal of $200,000 due in July 2025 . The Second Senior Notes have financial and restrictive covenants similar to those noted above for the Revolving Facility. Other Long-Term Debt— At September 30, 2015 , we also had $40,676 outstanding on a $48,081 six -year secured (construction equipment) term loan. Interest and principal under the loan is payable monthly in arrears and bears interest at 3.26% . Future annual maturities are $1,518 , $6,196 , $6,401 , $6,613 , $6,832 and $13,116 for the remainder of 2015 , 2016 , 2017 , 2018 , 2019 and 2020 , respectively. Compliance and Other —During the nine months ended September 30, 2015 , maximum outstanding borrowings under our revolving credit and other facilities were approximately $1,144,240 . In addition to providing letters of credit, we also issue surety bonds in the ordinary course of business to support our contract performance. At September 30, 2015 , we had $732,501 of outstanding surety bonds. At September 30, 2015 , we were in compliance with all of our restrictive and financial covenants associated with our debt and revolving credit facilities. Capitalized interest was insignificant for the nine months ended September 30, 2015 and 2014 . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Derivatives Foreign Currency Exchange Rate Derivatives —At September 30, 2015 , the notional value of our outstanding forward contracts to hedge certain foreign exchange-related operating exposures was approximately $51,400 . These contracts vary in duration, maturing up to four years from period-end. We designate certain of these hedges as cash flow hedges and accordingly, changes in their fair value are recognized in AOCI until the associated underlying operating exposure impacts our earnings. We exclude forward points, which are recognized as ineffectiveness within cost of revenue and are not material to our earnings, from our hedge assessment analysis. Interest Rate Derivatives— We continue to utilize a swap arrangement to hedge against interest rate variability associated with $378,750 of our outstanding $475,000 Term Loan. The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through September 30, 2015 . Accordingly, changes in the fair value of the swap arrangement are recognized in AOCI until the associated underlying exposure impacts our earnings. Financial Instruments Disclosures Fair Value —Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 —Fair value is based upon quoted prices in active markets. • Level 2 —Fair value is based upon internally-developed models that use, as their basis, readily observable market parameters. Our derivative positions are classified within Level 2 of the valuation hierarchy as they are valued using quoted market prices for similar assets and liabilities in active markets. These level 2 derivatives are valued utilizing an income approach, which discounts future cash flow based upon current market expectations and adjusts for credit risk. • Level 3 —Fair value is based upon internally-developed models that use, as their basis, significant unobservable market parameters. We did not have any Level 3 classifications at September 30, 2015 or December 31, 2014 . The following table presents the fair value of our foreign currency exchange rate derivatives and interest rate derivatives at September 30, 2015 and December 31, 2014 , respectively, by valuation hierarchy and balance sheet classification: September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets (1) Other current assets $ — $ 2,833 $ — $ 2,833 $ — $ 852 $ — $ 852 Other non-current assets — 117 — 117 — 2,248 — 2,248 Total assets at fair value $ — $ 2,950 $ — $ 2,950 $ — $ 3,100 $ — $ 3,100 Derivative Liabilities Other current liabilities $ — $ (6,209 ) $ — $ (6,209 ) $ — $ (12,728 ) $ — $ (12,728 ) Other non-current liabilities — (942 ) — (942 ) — (1,873 ) — (1,873 ) Total liabilities at fair value $ — $ (7,151 ) $ — $ (7,151 ) $ — $ (14,601 ) $ — $ (14,601 ) (1) We are exposed to credit risk on our hedging instruments associated with potential counterparty non-performance, and the fair value of our derivatives reflects this credit risk. The total level 2 assets at fair value above represent the maximum loss that we would incur on our outstanding hedges if the applicable counterparties failed to perform according to the hedge contracts. To help mitigate counterparty credit risk, we transact only with counterparties that are rated as investment grade or higher and monitor all counterparties on a continuous basis. The carrying values of our cash and cash equivalents (primarily consisting of bank deposits), accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. At September 30, 2015 , the fair value of our Term Loan and Second Term Loan, based upon the current market rates for debt with similar credit risk and maturity, approximated carrying value as interest is based upon LIBOR plus an applicable floating margin. Our Senior Notes are categorized within level 2 of the valuation hierarchy and had a total fair value of approximately $786,900 and $785,100 at September 30, 2015 and December 31, 2014 , respectively, based on the current market rates for debt with similar credit risk and maturities. Our Second Senior Notes, issued on July 30, 2015 , are categorized within level 2 of the valuation hierarchy and had a total fair value of approximately $201,700 at September 30, 2015 based on the current market rates for debt with similar credit risk and maturities. Derivatives Disclosures Fair Value —The following table presents the total fair value by underlying risk and balance sheet classification for derivatives designated as cash flow hedges and derivatives not designated as cash flow hedges at September 30, 2015 and December 31, 2014 : Other Current and Non-Current Assets Other Current and Non-Current Liabilities September 30, December 31, September 30, December 31, Designated cash flow hedges Interest rate $ 110 $ 2,258 $ (873 ) $ (1,229 ) Foreign currency 961 39 (2,201 ) (4,996 ) Fair value $ 1,071 $ 2,297 $ (3,074 ) $ (6,225 ) Derivatives not designated as cash flow hedges Interest rate $ — $ — $ — $ — Foreign currency 1,879 803 (4,077 ) (8,376 ) Fair value $ 1,879 $ 803 $ (4,077 ) $ (8,376 ) Total fair value $ 2,950 $ 3,100 $ (7,151 ) $ (14,601 ) Master Netting Arrangements (“MNAs”) —Our derivatives are executed under International Swaps and Derivatives Association MNAs, which generally allow us and our counterparties to net settle, in a single net payable or receivable, obligations due on the same day, in the same currency and for the same type of derivative instrument. We have elected the option to record all derivatives on a gross basis in our Balance Sheet. The following table presents our derivative assets and liabilities at September 30, 2015 on a gross basis and a net settlement basis: Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Amount Financial Cash Collateral Received Derivative Assets: Interest rate $ 110 $ — $ 110 $ — $ — $ 110 Foreign currency 2,840 — 2,840 (15 ) — 2,825 Total assets $ 2,950 $ — $ 2,950 $ (15 ) $ — $ 2,935 Derivative Liabilities: Interest rate $ (873 ) $ — $ (873 ) $ — $ — $ (873 ) Foreign currency (6,278 ) — (6,278 ) 15 — (6,263 ) Total liabilities $ (7,151 ) $ — $ (7,151 ) $ 15 $ — $ (7,136 ) AOCI/Other —The following table presents the total value, by underlying risk, recognized in other comprehensive income (“OCI”) and reclassified from AOCI to interest expense (interest rate derivatives) and cost of revenue (foreign currency derivatives) during the three and nine months ended September 30, 2015 and 2014 for derivatives designated as cash flow hedges: Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI Reclassified from AOCI into Earnings (1) Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Designated cash flow hedges Interest rate $ (932 ) $ 769 $ (3,154 ) $ (1,422 ) $ (435 ) $ (533 ) $ (1,362 ) $ (1,622 ) Foreign currency 1,754 (3,441 ) (986 ) (3,488 ) (2,027 ) (672 ) (4,497 ) (318 ) Total $ 822 $ (2,672 ) $ (4,140 ) $ (4,910 ) $ (2,462 ) $ (1,205 ) $ (5,859 ) $ (1,940 ) (1) Net unrealized losses totaling $2,840 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. The following table presents the total value recognized in cost of revenue for the three and nine months ended September 30, 2015 and 2014 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Derivatives not designated as cash flow hedges Foreign currency $ 7,969 $ 3,942 $ 5,686 $ (2,268 ) Total $ 7,969 $ 3,942 $ 5,686 $ (2,268 ) |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT BENEFITS | RETIREMENT BENEFITS Our 2014 Annual Report disclosed anticipated 2015 defined benefit pension and other postretirement plan contributions of $18,545 and $2,895 , respectively. The following table provides updated contribution information for these plans at September 30, 2015 : Pension Plans Other Postretirement Plans Contributions made through September 30, 2015 $ 12,002 $ 1,670 Contributions expected for the remainder of 2015 5,000 616 Total contributions expected for 2015 $ 17,002 $ 2,286 The following table provides a breakout of the components of net periodic benefit cost associated with our defined benefit pension and other postretirement plans for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pension Plans Service cost $ 2,656 $ 2,274 $ 7,992 $ 6,983 Interest cost 5,849 8,415 17,500 25,611 Expected return on plan assets (7,135 ) (9,193 ) (21,341 ) (27,907 ) Amortization of prior service credits (156 ) (116 ) (467 ) (357 ) Recognized net actuarial losses 1,921 1,172 5,759 3,546 Net periodic benefit cost $ 3,135 $ 2,552 $ 9,443 $ 7,876 Other Postretirement Plans Service cost $ 158 $ 259 $ 593 $ 777 Interest cost 357 570 1,158 1,710 Recognized net actuarial gains (757 ) (216 ) (2,022 ) (648 ) Net periodic benefit (income) cost $ (242 ) $ 613 $ (271 ) $ 1,839 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings —We have been and may from time to time be named as a defendant in legal actions claiming damages in connection with engineering and construction projects, technology licenses, other services we provide, and other matters. These are typically claims that arise in the normal course of business, including employment-related claims and contractual disputes or claims for personal injury or property damage which occur in connection with services performed relating to project or construction sites. Contractual disputes normally involve claims relating to the timely completion of projects, performance of equipment or technologies, design or other engineering services or project construction services provided by us. We do not believe that any of our pending contractual, employment-related, personal injury or property damage claims and disputes will have a material adverse effect on our future results of operations, financial position or cash flow. See Note 15 for additional discussion of claims associated with our projects. Asbestos Litigation —We are a defendant in lawsuits wherein plaintiffs allege exposure to asbestos due to work we may have performed at various locations. We have never been a manufacturer, distributor or supplier of asbestos products. Over the past several decades and through September 30, 2015 , we have been named a defendant in lawsuits alleging exposure to asbestos involving approximately 5,800 plaintiffs and, of those claims, approximately 1,200 claims were pending and 4,600 have been closed through dismissals or settlements. Over the past several decades and through September 30, 2015 , the claims alleging exposure to asbestos that have been resolved have been dismissed or settled for an average settlement amount of approximately two thousand dollars per claim. We review each case on its own merits and make accruals based upon the probability of loss and our estimates of the amount of liability and related expenses, if any. While we have seen an increase in the number of recent filings, especially in one specific venue, we do not believe that the increase or any unresolved asserted claims will have a material adverse effect on our future results of operations, financial position or cash flow, and at September 30, 2015 , we had approximately $5,500 accrued for liability and related expenses. With respect to unasserted asbestos claims, we cannot identify a population of potential claimants with sufficient certainty to determine the probability of a loss and to make a reasonable estimate of liability, if any. While we continue to pursue recovery for recognized and unrecognized contingent losses through insurance, indemnification arrangements or other sources, we are unable to quantify the amount, if any, that we may expect to recover because of the variability in coverage amounts, limitations and deductibles, or the viability of carriers, with respect to our insurance policies for the years in question. Environmental Matters —Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries, that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances which currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. In addition, we have agreed to indemnify parties from whom we have purchased or to whom we have sold facilities for certain environmental liabilities arising from acts occurring before the dates those facilities were transferred. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate our exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our future results of operations, financial position or cash flow. We do not anticipate we will incur material capital expenditures for environmental controls or for the investigation or remediation of environmental conditions during the remainder of 2015 or 2016 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in AOCI, net of tax, by component, during the nine months ended September 30, 2015 : Currency (1) Unrealized Defined Benefit Total Balance at December 31, 2014 $ (133,787 ) $ (2,713 ) $ (125,897 ) $ (262,397 ) OCI before reclassifications (57,231 ) (3,356 ) 8,681 (51,906 ) Amounts reclassified from AOCI — 4,224 2,731 6,955 Net OCI (57,231 ) 868 11,412 (44,951 ) Balance at September 30, 2015 $ (191,018 ) $ (1,845 ) $ (114,485 ) $ (307,348 ) (1) During the nine months ended September 30, 2015 , the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian Dollar, British Pound, Canadian Dollar and Euro exchange rates against the U.S. Dollar. The following table presents reclassification of AOCI into earnings, net of tax, for each component, during the nine months ended September 30, 2015 : AOCI Components Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 1,362 Foreign currency derivatives (cost of revenue) 4,497 Total, before taxes 5,859 Taxes (1,635 ) Total, net of taxes $ 4,224 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits $ (467 ) Recognized net actuarial losses 3,737 Total, before taxes 3,270 Taxes (539 ) Total, net of taxes $ 2,731 (1) See Note 10 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 11 for further discussion of our defined benefit and other postretirement plans, including the components of net periodic benefit cost. |
EQUITY-BASED INCENTIVE PLANS
EQUITY-BASED INCENTIVE PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED INCENTIVE PLANS | EQUITY-BASED INCENTIVE PLANS Under our equity-based incentive plans, we can issue shares to employees and directors in the form of restricted stock units (“RSUs”), performance shares and stock options. Changes in common stock, additional paid-in capital and treasury stock during the nine months ended September 30, 2015 and 2014 primarily related to activity associated with the equity-based incentive plans and share repurchases. At September 30, 2015 and December 31, 2014 , and for the nine months ended September 30, 2015 and 2014 , cash-settled equity-based awards, including RSUs and stock appreciation rights, were not material. During the nine months ended September 30, 2015 , we granted the following awards associated with our equity-based incentive plans: Shares (1) Weighted Average Grant-Date Fair Value Per Share RSUs 986 $ 42.42 Performance shares 832 $ 41.24 Total 1,818 (1) No stock options were granted during the nine months ended September 30, 2015 . During the nine months ended September 30, 2015 , we had the following activity associated with our equity-based incentive plans and employee stock purchase plan (“ESPP”): Shares Performance shares (issued upon vesting) 563 RSUs (issued upon vesting) 422 Stock options (issued upon exercise) 61 ESPP shares (issued upon sale) 350 Total shares issued 1,396 During the three months ended September 30, 2015 and 2014 , we recognized $10,122 and $7,024 , respectively, of stock-based compensation expense, and during the nine months ended September 30, 2015 and 2014 , we recognized $49,185 and $58,558 , respectively, of stock-based compensation expense, primarily within selling and administrative expense. During the nine months ended September 30, 2015 , we repurchased 4,480 shares for $210,748 (an average price of $47.04 ), including $198,069 to purchase 4,178 shares of our outstanding common stock and $12,679 to purchase 302 shares for taxes withheld on taxable share distributions. |
UNAPPROVED CHANGE ORDERS, CLAIM
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES | 9 Months Ended |
Sep. 30, 2015 | |
Contractors [Abstract] | |
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES | UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES We recognize revenue associated with unapproved change orders and claims to the extent the related costs have been incurred, the value can be reliably estimated and recovery is probable, and we recognize revenue associated with incentive fees when the value can be reliably estimated and recovery is probable. In addition, we include in contract price amounts contractually recoverable from our customers and consortium partners. Nuclear Projects —We have consortium agreements (the “Consortium Agreements”) with Westinghouse Electric Company (“WEC”) under which we have contracted with two separate customers (the “Customer Contracts”) for the construction of two nuclear power plants in Georgia (the “Georgia Nuclear Project”) and South Carolina (the “South Carolina Nuclear Project”) (collectively, the “Nuclear Projects”). The results of the Nuclear Projects are reflected within our Engineering & Construction and Fabrication Services operating groups. Under the scope of work provided in each of the Consortium Agreements, WEC is primarily responsible for engineering and procurement activities associated with the nuclear island component of the Nuclear Projects, while we are responsible for engineering, procurement and fabrication for the balance of plant and substantially all of the construction activities for the Nuclear Projects. The Customer Contracts provide WEC and us contractual entitlement (“Customer Obligation(s)”) for recovery of certain estimated costs in excess of contractually stipulated amounts. In addition to the aforementioned protections for us under the Customer Contracts, the Consortium Agreements also provide contractual entitlement for us to recover from WEC (“WEC Obligation(s)”) certain estimated costs in excess of contractually stipulated amounts, to the extent not recoverable from our customers. Project price for the Nuclear Projects includes estimated amounts recoverable under the aforementioned Customer Obligations and WEC Obligations. At September 30, 2015 and December 31, 2014 , we also had approximately $838,600 of unapproved change orders and claims included in project price related to claims with our customer for the Georgia Nuclear Project resulting from increased engineering, equipment supply, material and fabrication and construction costs resulting from regulatory-required design changes and delays in our customer’s obtaining the combined operating license (“COL”) for the project. Specifically, we have entered into a formal dispute resolution process on certain claims associated with the shield building, large structural modules and COL issuance delays. To the extent we are unsuccessful recovering these amounts from our customer, the amounts are contractually recoverable under the aforementioned WEC Obligations. At September 30, 2015 and December 31, 2014 , we also had approximately $442,000 and $373,000 of unapproved change orders and claims, respectively, included in project price related to a portion of the forecast cost impacts for the South Carolina Nuclear Project associated with extensions of schedule. Through September 30, 2015 , approximately $480,000 had been recognized as revenue on a cumulative POC basis related to the unapproved change orders and claims for the Nuclear Projects. Although we have not reached resolution on the aforementioned matters, at September 30, 2015 , we had received contractually required partial payments totaling approximately $210,000 . As discussed further in Note 4 , due to the Agreement to sell our Nuclear Operations, which include the Nuclear Projects, we classified the assets and liabilities of our Nuclear Operations as held for sale at September 30, 2015 . Accordingly, the assets held for sale include amounts related to the aforementioned unapproved change orders and claims and Customer Obligations and WEC Obligations. Based on the Estimated Sales Proceeds for the Nuclear Operations, we recorded a loss on the sale of the Nuclear Operations of approximately $628,300 during the three months ended September 30, 2015. The loss was required to reflect the commercial arrangement reached in connection with the Agreement. Absent the Agreement, we believe the amounts included in project price related to the unapproved change orders and claims, and the Customer Obligations and WEC Obligations, are recoverable under the aforementioned provisions of our contractual arrangements and reflect our best estimate of recovery amounts. The Nuclear Projects have long construction durations and the cost estimates cover costs that will be incurred over several years. If the sale of the Nuclear Operations does not occur, it is anticipated that these commercial matters may not be resolved in the near term. If we do not resolve these matters for the amounts recorded, or to the extent we are not successful in recovering amounts contractually due under the Customer Obligations or WEC Obligations, or to the extent there are future cost increases on the Nuclear Projects that we cannot recover under either the Customer Obligations or WEC Obligations, it could have an adverse effect on our results of operations, financial position and cash flow. Other —At September 30, 2015 and December 31, 2014 , we had additional unapproved change orders and claims included in project price totaling approximately $118,000 and $98,100 , respectively, for other projects primarily within our Engineering & Construction and Fabrication Services operating groups. We also had incentives included in project price of approximately $103,000 and $32,600 at September 30, 2015 and December 31, 2014 , respectively, for projects in our Engineering & Construction, Fabrication Services and Capital Services operating groups. Of these aforementioned amounts, approximately $178,000 had been recognized as revenue on a cumulative POC basis through September 30, 2015 . At September 30, 2015 , we also had approximately $38,000 of past due receivables outstanding for one of our large cost reimbursable projects. Although the amounts may not be received in the near term, we believe they are contractually due under the provisions of our contract. The aforementioned amounts recorded in project price reflect our best estimate of recovery amounts; however, the ultimate resolution and amounts received could differ from these estimates and could have a material adverse effect on our results of operations, financial position and cash flow. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our management structure and internal and public segment reporting are aligned based upon the services offered by our four operating groups, which represent our reportable segments. As discussed in Note 1 and 2, during the three months ended March 31, 2015, we realigned our four operating groups to reflect the present management oversight of our operations. Our maintenance business that was previously reported within our Engineering & Construction operating group (formerly Engineering, Construction & Maintenance) is now reported within our Capital Services operating group (formerly Environmental Solutions), and our engineered products business that was previously reported within our Technology operating group is now reported within our Fabrication Services operating group. The segment results for the three and nine months ended September 30, 2014 were reclassified to conform to the 2015 presentation. The following provides a description of our realigned operating groups: Engineering & Construction —Engineering & Construction provides EPC services for major energy infrastructure facilities. Fabrication Services —Fabrication Services provides fabrication of piping systems and process modules; fabrication and erection of steel plate structures; manufacturing and distribution of pipe and fittings; and engineered products for the oil and gas, petrochemicals, water and wastewater, mining, mineral processing and power generation industries. Technology —Technology provides licensed process technologies and catalysts for use in petrochemical facilities and oil refineries, and offers process planning and project development services and a comprehensive program of aftermarket support. Technology also has a 50% owned unconsolidated CLG joint venture that provides licensed technologies, engineering services and catalyst, primarily for the refining industry. Capital Services —Capital Services provides comprehensive maintenance services, environmental engineering and remediation, infrastructure EPC services, program management, and disaster response and recovery for private sector customers and governments. Our Chief Executive Officer evaluates the performance of the aforementioned operating groups based upon revenue and income from operations. Each operating group's income from operations reflects corporate costs, allocated based primarily upon revenue. Intersegment revenue is netted against the revenue of the segment receiving the intersegment services. For the three months ended September 30, 2015 and 2014 , intersegment revenue totaled approximately $96,800 and $134,500 , respectively, and for the nine months ended September 30, 2015 and 2014 , intersegment revenue totaled approximately $320,000 and $363,200 , respectively. Intersegment revenue for the aforementioned periods primarily related to services provided by our Fabrication Services operating group to our Engineering & Construction operating group. The following table presents revenue and income from operations by reportable segment for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue Engineering & Construction $ 1,946,426 $ 2,022,296 $ 5,681,134 $ 5,648,375 Fabrication Services 640,201 686,507 1,889,340 2,052,713 Technology 118,269 89,918 310,605 294,878 Capital Services 616,786 582,012 1,773,461 1,607,278 Total revenue $ 3,321,682 $ 3,380,733 $ 9,654,540 $ 9,603,244 (Loss) Income From Operations Engineering & Construction (1) $ (1,007,354 ) $ 155,096 $ (694,469 ) $ 372,380 Fabrication Services 61,408 67,943 169,744 193,125 Technology 31,911 38,560 116,676 110,471 Capital Services 24,073 29,026 48,992 54,947 Total operating groups (889,962 ) 290,625 (359,057 ) 730,923 Integration related costs — (4,563 ) — (22,167 ) Total (loss) income from operations $ (889,962 ) $ 286,062 $ (359,057 ) $ 708,756 (1) As discussed further in Note 4 , due to the Agreement to sell our Nuclear Operations, during the three months ended September 30, 2015 , we recorded a non-cash pre-tax charge of approximately $1,160,500 within our Engineering & Construction operating group. In conjunction with the aforementioned realignment of our operating groups during the three months ended March 31, 2015, our total assets by reportable segment changed significantly, including an allocation of goodwill among our new and realigned reporting units based on the relative fair value of the reporting units being realigned. At September 30, 2015 and December 31, 2014 , our total assets by reportable segment were as follows (with December 31, 2014 balances reflecting the realignment of our operating groups to conform with the 2015 presentation): September 30, December 31, Assets Engineering & Construction $ 5,036,096 $ 4,555,703 Fabrication Services 2,281,639 2,229,346 Technology 835,786 837,445 Capital Services 1,755,782 1,758,537 Total assets $ 9,909,303 $ 9,381,031 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 27, 2015 , we entered into an Agreement with WEC in which WEC will acquire our Nuclear Operations. See Note 4 for further discussion. |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Consolidation, and Presentation | Basis of Accounting and Consolidation —The accompanying unaudited interim Condensed Consolidated Financial Statements (“Financial Statements”) are prepared in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”). These Financial Statements include all wholly-owned subsidiaries and those entities which we are required to consolidate. See the “Partnering Arrangements” section of this footnote for further discussion of our consolidation policy for those entities that are not wholly-owned. Significant intercompany balances and transactions are eliminated in consolidation. Basis of Presentation —We believe these Financial Statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our results of operations for the three and nine months ended September 30, 2015 and 2014 , our financial position as of September 30, 2015 and our cash flows for the nine months ended September 30, 2015 and 2014 . The December 31, 2014 Condensed Consolidated Balance Sheet was derived from our December 31, 2014 audited Consolidated Balance Sheet. We believe the disclosures accompanying these Financial Statements are adequate to make the information presented not misleading. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC for interim reporting periods. The results of operations and cash flows for the interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying Financial Statements should be read in conjunction with our Consolidated Financial Statements and notes thereto included in our 2014 Annual Report on Form 10-K (“ 2014 Annual Report”). |
Use of Estimates | Use of Estimates —The preparation of our Financial Statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe the most significant estimates and judgments are associated with revenue recognition for our contracts, including estimating costs and the recognition of incentive fees and unapproved change orders and claims; fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; valuation of deferred tax assets and financial instruments; the determination of liabilities related to self-insurance programs and income taxes; and consolidation determinations with respect to our partnering arrangements. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ from those included in the accompanying Financial Statements. |
Revenue Recognition | Revenue Recognition —Our revenue is primarily derived from long-term contracts and is generally recognized using the percentage of completion (“POC”) method, primarily based on the percentage that actual costs-to-date bear to total estimated costs to complete each contract. We follow the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Revenue Recognition Topic 605-35 for accounting policies relating to our use of the POC method, estimating costs, and revenue recognition, including the recognition of incentive fees, unapproved change orders and claims, and combining and segmenting contracts. We primarily utilize the cost-to-cost approach to estimate POC as we believe this method is less subjective than relying on assessments of physical progress. Under the cost-to-cost approach, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in the accounting for contracts. Significant estimates that impact the cost to complete each contract are costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor or supplier progress; liquidated damages; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts in progress. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates. Backlog for each of our operating groups generally consists of several hundred contracts and our results may be impacted by changes in estimated project margins. For the three and nine months ended September 30, 2015 and 2014, individual projects with significant changes in estimated margins did not have a material net impact on our income from operations. Our long-term contracts are awarded on a competitively bid and negotiated basis and the timing of revenue recognition may be impacted by the terms of such contracts. We use a range of contracting options, including cost-reimbursable, fixed-price and hybrid, which has both cost-reimbursable and fixed-price characteristics. Fixed-price contracts, and hybrid contracts with a more significant fixed-price component, tend to provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Cost-reimbursable contracts, and hybrid contracts with a more significant cost-reimbursable component, generally provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of revenue recognition. Contract revenue for our long-term contracts recognized under the POC method reflects the original contract price adjusted for approved change orders and estimated recoveries for incentive fees, unapproved change orders and claims. We recognize revenue associated with incentive fees when the value can be reliably estimated and recovery is probable. We recognize revenue associated with unapproved change orders and claims to the extent the related costs have been incurred, the value can be reliably estimated and recovery is probable. Our recorded incentive fees, unapproved change orders and claims reflect our best estimate of recovery amounts; however, the ultimate resolution and amounts received could differ from these estimates. See Note 15 for additional discussion of our recorded unapproved change orders, claims, incentives and other contract recoveries. With respect to our engineering, procurement, and construction (“EPC”) services, our contracts are not segmented between types of services, such as engineering and construction, if each of the EPC components is negotiated concurrently or if the pricing of any such services is subject to the ultimate negotiation and agreement of the entire EPC contract. However, an EPC contract including technology or fabrication services may be segmented if we satisfy the segmenting criteria in ASC 605-35. Revenue recorded in these situations is based on our prices and terms for similar services to third party customers. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue without segmenting. In some instances, we may combine contracts that are entered into in multiple phases, but are interdependent and include pricing considerations by us and the customer that are impacted by all phases of the project. Otherwise, if each phase is independent of the other and pricing considerations do not give effect to another phase, the contracts will not be combined. Cost of revenue for our long-term contracts includes direct contract costs, such as materials and labor, and indirect costs that are attributable to contract activity. The timing of when we bill our customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Projects with cumulative costs and estimated earnings recognized to date in excess of cumulative billings is reported on the Condensed Consolidated Balance Sheet (“Balance Sheet”) as costs and estimated earnings in excess of billings. Projects with cumulative billings in excess of costs and estimated earnings recognized to date is reported on the Balance Sheet as billings in excess of costs and estimated earnings. The net balances on our Balance Sheet are collectively referred to as Contracts in Progress, net, and the components of these balances at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Asset (1) Liability (1) Asset Liability Costs and estimated earnings on contracts in progress $ 16,625,872 $ 21,023,415 $ 20,119,444 $ 26,052,767 Billings on contracts in progress (15,963,528 ) (22,838,510 ) (19,344,800 ) (27,479,495 ) Margin fair value liability for acquired contracts (2) — (13,903 ) — (558,760 ) Contracts in Progress, net $ 662,344 $ (1,828,998 ) $ 774,644 $ (1,985,488 ) (1) The Contracts in Progress, net asset and liability balances reflect the impact of reclassifying approximately $1,244,100 and $505,300 (including approximately $458,700 of margin fair value liability), respectively, to assets held for sale and liabilities held for sale, on our Balance Sheet as a result of the agreement to sell our Nuclear Operations, as discussed in Note 4 . (2) The balance represents a margin fair value liability associated with long-term contracts acquired in connection with our acquisition of The Shaw Group Inc. on February 13, 2013 (the “Acquisition Closing Date”). The margin fair value liability was approximately $745,500 at the Acquisition Closing Date and is recognized as revenue on a POC basis as the applicable projects progress. Revenue and the related income from operations recognized during the three and nine months ended September 30, 2015 was approximately $29,500 and $86,100 , respectively, compared with approximately $33,500 and $94,800 , respectively, for the comparable 2014 periods. Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At September 30, 2015 and December 31, 2014 , accounts receivable included contract retentions of approximately $64,800 and $53,000 , respectively. Contract retentions due beyond one year were not material at September 30, 2015 or December 31, 2014 . Revenue for our service contracts that do not satisfy the criteria for revenue recognition under the POC method is recorded at the time services are performed. Revenue associated with incentive fees for these contracts is recognized when earned. Unbilled receivables for our service contracts are recorded within accounts receivable and were approximately $106,100 and $66,900 at September 30, 2015 and December 31, 2014 , respectively. Revenue for our pipe and steel fabrication and catalyst manufacturing contracts that are independent of an EPC contract, or for which we satisfy the segmentation criteria discussed above, is recognized upon shipment of the fabricated or manufactured units. During the fabrication or manufacturing process, all related direct and allocable indirect costs are capitalized as work in process inventory and such costs are recorded as cost of revenue at the time of shipment. Our billed and unbilled revenue may be exposed to potential credit risk if our customers should encounter financial difficulties, and we maintain reserves for specifically-identified potential uncollectible receivables. At September 30, 2015 and December 31, 2014 , our allowances for doubtful accounts were not material. |
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net — Other operating (income) expense, net , generally represents (gains) losses associated with the sale or disposition of property and equipment. For the nine months ended September 30, 2015 , other operating (income) expense, net also included a gain of approximately $7,500 related to the contribution of a technology to our unconsolidated Chevron-Lummus Global (“CLG”) joint venture and a foreign exchange loss of approximately $11,000 associated with the re-measurement of certain non-U.S. Dollar denominated net assets, both of which occurred during the three months ended March 31, 2015. |
Integration-Related Costs | Integration Related Costs —For the three and nine months ended September 30, 2014 , integration related costs of $4,563 and $22,167 , respectively, primarily related to facility consolidations, including the associated accrued future lease costs for vacated facilities and unutilized capacity, personnel relocation and severance related costs, and systems integration costs. |
Recoverability of Goodwill and Other Long-Lived Assets | Recoverability of Goodwill —Goodwill is not amortized to earnings, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. We identify a potential impairment by comparing the fair value of the applicable reporting unit to its net book value, including goodwill. If the net book value exceeds the fair value of the reporting unit, an indication of potential impairment exists, and we measure the impairment by comparing the carrying value of the reporting unit's goodwill to its implied fair value. To determine the fair value of our reporting units and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profiles of our reporting units into our valuation model. This is consistent with the methodology used to determine the fair value of our reporting units in previous years. We generally do not utilize a market approach given the lack of relevant information generated by market transactions involving comparable businesses. See Note 6 for additional disclosures associated with our goodwill and related impairment recorded during the three months ended September 30, 2015. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 3 to 20 years, absent any indicators of impairment. We review tangible assets and finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, the estimated future cash flow associated with the asset or asset group will be compared to the asset’s carrying amount to determine if an impairment exists. See Note 6 for additional disclosures associated with our intangible assets and related impairment recorded during the three months ended September 30, 2015. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”)— Basic EPS is calculated by dividing net income attributable to CB&I by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of dilutive securities, consisting of restricted shares, performance shares (where performance criteria have been met), stock options and directors’ deferred-fee shares. See Note 3 for calculations associated with basic and diluted EPS. |
Cash Equivalents | Cash Equivalents —Cash equivalents are considered to be highly liquid securities with original maturities of three months or less. |
Inventory | Inventory —Inventory is recorded at the lower of cost or market and cost is determined using the first-in-first-out or weighted-average cost method. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. An allowance for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, estimates of future sales expectations and salvage value. See Note 5 for additional disclosures associated with our inventory. |
Foreign Currency | Foreign Currency —The nature of our business activities involves the management of various financial and market risks, including those related to changes in foreign currency exchange rates. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment in accumulated other comprehensive income (loss) (“AOCI”) which is net of tax, where applicable. With the exception of a foreign exchange loss of approximately $11,000 included within other operating (income) expense, net related to the re-measurement of certain non-U.S. Dollar denominated net assets during the three months ended March 31, 2015, foreign currency transactional and re-measurement exchange gains (losses) are included within cost of revenue and were not material for the three and nine months ended September 30, 2015 and 2014 . |
Financial Instruments | Financial Instruments —We utilize derivative instruments in certain circumstances to mitigate the effects of changes in foreign currency exchange rates and interest rates, as described below: • Foreign Currency Exchange Rate Derivatives —We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency-related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges are recognized within cost of revenue. • Interest Rate Derivatives —At September 30, 2015 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $378,750 of our outstanding $475,000 unsecured term loan (the “Term Loan”). The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through September 30, 2015 . Accordingly, changes in the fair value of the swap arrangement are included in AOCI until the associated underlying exposure impacts our earnings. For those contracts designated as cash flow hedges, we document all relationships between the derivative instruments and associated hedged items, as well as our risk-management objectives and strategy for undertaking hedge transactions. This process includes linking all derivatives to specific firm commitments or highly-probable forecasted transactions. We continually assess, at inception and on an ongoing basis, the effectiveness of derivative instruments in offsetting changes in the cash flow of the designated hedged items. Hedge accounting designation is discontinued when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flow of the hedged item, including firm commitments or forecasted transactions, (2) the derivative is sold, terminated, exercised, or expires, (3) it is no longer probable that the forecasted transaction will occur, or (4) we determine that designating the derivative as a hedging instrument is no longer appropriate. See Note 10 for additional discussion of our financial instruments. |
Income Taxes | Income Taxes —Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis using currently enacted income tax rates for the years in which the differences are expected to reverse. A valuation allowance is provided to offset any net deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our net DTAs depends upon our ability to generate sufficient future taxable income of the appropriate character and in the appropriate jurisdictions. Income tax and associated interest reserves, where applicable, are recorded in those instances where we consider it more likely than not that additional tax will be due in excess of amounts reflected in income tax returns filed worldwide, irrespective of whether or not we have received tax assessments. We continually review our exposure to additional income tax obligations and, as further information is known or events occur, changes in our tax and interest reserves may be recorded within income tax expense and interest expense, respectively. |
Partnering Arrangements | Partnering Arrangements — In the ordinary course of business, we execute specific projects and conduct certain operations through joint venture, consortium and other collaborative arrangements (collectively referred to as “venture(s)”). We have various ownership interests in these ventures, with such ownership typically being proportionate to our decision-making and distribution rights. The ventures generally contract directly with the third party customer; however, services may be performed directly by the ventures, or may be performed by us, our partners, or a combination thereof. Venture net assets consist primarily of working capital and property and equipment, and assets may be restricted from being used to fund obligations outside of the venture. These ventures typically have limited third party debt or have debt that is non-recourse in nature; however, they may provide for capital calls to fund operations or require participants in the venture to provide additional financial support, including advance payment or retention letters of credit. Each venture is assessed at inception and on an ongoing basis as to whether it qualifies as a VIE under the consolidations guidance in ASC 810. A venture generally qualifies as a VIE when it (1) meets the definition of a legal entity, (2) absorbs the operational risk of the projects being executed, creating a variable interest, and (3) lacks sufficient capital investment from the partners, potentially resulting in the venture requiring additional subordinated financial support, if necessary, to finance its future activities. If at any time a venture qualifies as a VIE, we perform a qualitative assessment to determine whether we are the primary beneficiary of the VIE and, therefore, need to consolidate the VIE. We are the primary beneficiary if we have (1) the power to direct the economically significant activities of the VIE and (2) the right to receive benefits from, and obligation to absorb losses of, the VIE. If the venture is a VIE and we are the primary beneficiary, or we otherwise have the ability to control the venture, we consolidate the venture. If we are not determined to be the primary beneficiary of the VIE, or only have the ability to significantly influence, rather than control the venture, we do not consolidate the venture. We account for unconsolidated ventures using proportionate consolidation for both our Balance Sheet and Statement of Operations when we meet the applicable accounting criteria to do so and utilize the equity method otherwise. See Note 7 for additional discussion of our material partnering arrangements. |
New Accounting Standards | New Accounting Standards —In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current industry-specific guidance, including ASC 605-35. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue as the entity satisfies each performance obligation. ASU 2014-09 is effective for us beginning in the first quarter 2018. Our adoption of ASU 2014-09 will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. We are assessing the impact that the new standard will have on our Financial Statements. In February 2015, the FASB issued ASU 2015-02, which amends existing consolidation requirements in ASC 810 and will require entities to evaluate their consolidation analysis for subsidiaries that are not wholly-owned. ASU 2015-02, which is effective for us beginning in the first quarter 2016, includes amended guidance associated with: (1) determining the consolidation model and assessing control for limited partnerships and similar entities; (2) determining when fees paid to decision makers or service providers are variable interests; and (3) evaluating interests held by de facto agents or related parties of the reporting entity. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial position, results of operations, or cash flows. In April 2015, the FASB issued ASU 2015-03, which changes the presentation of debt issuance costs. Upon adoption, debt issuance costs would be presented as a direct deduction from the related debt liability rather than as an asset, as currently presented. ASU 2015-03 is effective for us beginning in the first quarter 2016. We do not expect the adoption of ASU 2015-03 to have a material impact on our consolidated financial position, results of operations, or cash flows. |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Contracts In Progress | The net balances on our Balance Sheet are collectively referred to as Contracts in Progress, net, and the components of these balances at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Asset (1) Liability (1) Asset Liability Costs and estimated earnings on contracts in progress $ 16,625,872 $ 21,023,415 $ 20,119,444 $ 26,052,767 Billings on contracts in progress (15,963,528 ) (22,838,510 ) (19,344,800 ) (27,479,495 ) Margin fair value liability for acquired contracts (2) — (13,903 ) — (558,760 ) Contracts in Progress, net $ 662,344 $ (1,828,998 ) $ 774,644 $ (1,985,488 ) (1) The Contracts in Progress, net asset and liability balances reflect the impact of reclassifying approximately $1,244,100 and $505,300 (including approximately $458,700 of margin fair value liability), respectively, to assets held for sale and liabilities held for sale, on our Balance Sheet as a result of the agreement to sell our Nuclear Operations, as discussed in Note 4 . (2) The balance represents a margin fair value liability associated with long-term contracts acquired in connection with our acquisition of The Shaw Group Inc. on February 13, 2013 (the “Acquisition Closing Date”). The margin fair value liability was approximately $745,500 at the Acquisition Closing Date and is recognized as revenue on a POC basis as the applicable projects progress. Revenue and the related income from operations recognized during the three and nine months ended September 30, 2015 was approximately $29,500 and $86,100 , respectively, compared with approximately $33,500 and $94,800 , respectively, for the comparable 2014 periods. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Basic Shares Outstanding to Diluted Shares Outstanding and Computation of Basic and Diluted EPS | A reconciliation of weighted average basic shares outstanding to weighted average diluted shares outstanding and the computation of basic and diluted EPS are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net (loss) income attributable to CB&I $ (740,433 ) $ 161,842 $ (438,690 ) $ 393,197 Weighted average shares outstanding—basic 105,454 108,199 107,440 107,993 Effect of restricted shares/performance shares/stock options (1) — 1,000 — 1,031 Effect of directors’ deferred-fee shares (1) — 10 — 37 Weighted average shares outstanding—diluted 105,454 109,209 107,440 109,061 Net (loss) income attributable to CB&I per share: Basic $ (7.02 ) $ 1.50 $ (4.08 ) $ 3.64 Diluted $ (7.02 ) $ 1.48 $ (4.08 ) $ 3.61 (1) The effect of restricted, performance, stock options and directors' deferred-fee shares were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2015 due to the net loss for the periods. Antidilutive shares excluded from diluted EPS were not material for the three and nine months ended September 30, 2014 . |
DISPOSITION OF NUCLEAR OPERAT29
DISPOSITION OF NUCLEAR OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition Related Charges | Disposition Related Charges —A summary of the pre-tax charge for the three and nine months ended September 30, 2015 related to the disposition of our Nuclear Operations is as follows: Three and Nine Months Ended September 30, 2015 Loss on assets held for sale (see below) $ 628,280 Intangible assets impairment (Note 6) 79,100 Loss on assets held for sale and intangible assets impairment 707,380 Goodwill impairment (Note 6) 453,100 Total pre-tax charge $ 1,160,480 |
Disposal Groups, Including Discontinued Operations | Assets Held for Sale —The fair value of the assets and liabilities held for sale at September 30, 2015 is summarized as follows: September 30, 2015 Assets Accounts receivable $ 135,401 Costs and estimated earnings in excess of billings 1,244,128 Property and equipment, net 129,425 Other assets 5,755 Assets held for sale before loss 1,514,709 Loss on assets held for sale (see above) (628,280 ) Assets held for sale $ 886,429 Liabilities Margin fair value liability (Note 2) $ 458,722 Billings in excess of costs and estimated earnings 46,569 Accounts payable 209,017 Other liabilities 41,121 Liabilities held for sale $ 755,429 Estimated Sales Proceeds (net of estimated transaction costs of $12,000) $ 131,000 The fair value of assets and liabilities held for sale in the table above represents the Estimated Sales Proceeds (net of estimated transaction costs), is considered level 2 in the valuation hierarchy and is based upon the present value of the estimated transaction consideration to be received under the Agreement. Results of Nuclear Operations —The revenue and pre-tax income of our Nuclear Operations for the three and nine months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ 502,922 $ 510,571 $ 1,555,508 $ 1,310,668 Pre-tax income $ 45,715 $ 41,900 $ 163,115 $ 112,600 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory at September 30, 2015 and December 31, 2014 were as follows: September 30, December 31, Raw materials $ 155,686 $ 162,451 Work in process 42,994 38,232 Finished goods 97,988 85,472 Total $ 296,668 $ 286,155 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Summary and Reporting Units —At September 30, 2015 and December 31, 2014 , our goodwill balances were $3,722,344 and $4,195,231 , respectively, attributable to the excess of the purchase price over the fair value of net assets acquired in connection with our acquisitions. The change in goodwill for the nine months ended September 30, 2015 was as follows: Total Balance at December 31, 2014 $ 4,195,231 Impairment charge (described below) (453,100 ) Foreign currency translation (16,188 ) Amortization of tax goodwill in excess of book goodwill (3,599 ) Balance at September 30, 2015 $ 3,722,344 |
Finite- Lived Intangible Assets Balances Including Weighted- Average Useful Lives | The following table provides a summary of our finite-lived intangible assets at September 30, 2015 and December 31, 2014 , including weighted-average useful lives for each major intangible asset class and in total: September 30, 2015 December 31, 2014 Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets Backlog and customer relationships (1)(2) 17 years $ 281,072 $ (60,862 ) $ 380,586 $ (71,257 ) Process technologies 15 years 272,595 (111,990 ) 287,459 (105,646 ) Tradenames (2) 10 years 64,872 (21,857 ) 85,613 (20,301 ) Total (3) 16 years $ 618,539 $ (194,709 ) $ 753,658 $ (197,204 ) (1) Backlog and customer relationships intangibles totaling approximately $11,000 became fully amortized during the three months ended March 31, 2015 and were removed from the gross carrying and accumulated amortization balances above. (2) During the three months ended September 30, 2015 , we recorded an impairment charge of approximately $79,100 related to customer relationship and tradename intangible assets as a result of the Agreement to sell our Nuclear Operations described further in Note 4 . The impairment was based on a comparison of the carrying value of the intangible assets to their fair value (indicated by the Estimated Sales Proceeds), which resulted in an impairment of all intangible assets of the Nuclear Operations. The impairment charge is included in "loss on assets held for sale and intangible assets impairment" in our Statement of Operations and relates to our Engineering and Construction operating group. The related intangibles were removed from the gross carrying and accumulated amortization balances above. We noted no other indicators of impairment during the nine months ended September 30, 2015 . (3) The remaining decrease in other intangible assets during the nine months ended September 30, 2015 primarily related to amortization expense of approximately $45,500 and the impact of foreign currency translation. |
PARTNERING ARRANGEMENTS (Tables
PARTNERING ARRANGEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Balance Sheet Information of Proportionately Consolidated Variable Interest Entities | The following table presents summarized balance sheet information for our proportionately consolidated ventures: September 30, 2015 December 31, 2014 CB&I/Zachry Current assets (1) $ 280,974 $ 85,484 Current liabilities $ 399,057 $ 149,891 CB&I/Zachry/Chiyoda Current assets (1) $ 50,608 $ — Current liabilities $ 52,632 $ — CB&I/Chiyoda Current assets (1) $ 336,420 $ 102,035 Current liabilities $ 386,711 $ 124,367 (1) Our venture arrangements allow for excess working capital of the ventures to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. Accordingly, at a reporting period end a venture may have advances to its partners which are reflected as an advance receivable within current assets of the venture. At September 30, 2015 and December 31, 2014 , other current assets on the Balance Sheet included approximately $289,300 and $71,200 , respectively, related to our proportionate share of advances from the ventures to our venture partners. In addition, at September 30, 2015 and December 31, 2014 other current liabilities on the Balance Sheet included approximately $292,700 and $108,700 , respectively, related to advances to CB&I from the ventures. |
Summarized Balance Sheet Information of Variable Interest Entities | The following table presents summarized balance sheet information for our consolidated VIEs: September 30, December 31, CBI/Kentz Current assets $ 215,183 $ 220,930 Current liabilities $ 223,565 $ 196,277 CBI/AREVA Current assets $ 34,286 $ 27,006 Current liabilities $ 69,479 $ 73,124 All Other (1) Current assets $ 133,974 $ 130,458 Non-current assets 20,410 22,045 Total assets $ 154,384 $ 152,503 Current liabilities $ 40,115 $ 36,534 (1) Other ventures that we consolidate due to their designation as VIEs are not individually material to our financial results and are therefore aggregated as “All Other”. |
FACILITY REALIGNMENT LIABILITY
FACILITY REALIGNMENT LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Related Costs | The following table summarizes the movements in the facility realignment liability during the nine months ended September 30, 2015 : Total Balance at December 31, 2014 $ 14,354 Charges 1,582 Cash payments (6,915 ) Balance at September 30, 2015 $ 9,021 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Our outstanding debt at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, Current Revolving facility and other short-term borrowings $ 503,000 $ 164,741 Current maturities of long-term debt 143,646 105,997 Current debt $ 646,646 $ 270,738 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) $ 475,000 $ 825,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) 500,000 — Senior Notes: $800,000 senior notes, series A-D (fixed interest ranging from 4.15% to 5.30%) 800,000 800,000 Second Senior Notes: $200,000 senior notes (fixed interest of 4.53%) 200,000 — Other long-term debt 40,676 45,155 Less: current maturities of long-term debt (143,646 ) (105,997 ) Long-term debt $ 1,872,030 $ 1,564,158 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Carried at Fair Value | The following table presents the fair value of our foreign currency exchange rate derivatives and interest rate derivatives at September 30, 2015 and December 31, 2014 , respectively, by valuation hierarchy and balance sheet classification: September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets (1) Other current assets $ — $ 2,833 $ — $ 2,833 $ — $ 852 $ — $ 852 Other non-current assets — 117 — 117 — 2,248 — 2,248 Total assets at fair value $ — $ 2,950 $ — $ 2,950 $ — $ 3,100 $ — $ 3,100 Derivative Liabilities Other current liabilities $ — $ (6,209 ) $ — $ (6,209 ) $ — $ (12,728 ) $ — $ (12,728 ) Other non-current liabilities — (942 ) — (942 ) — (1,873 ) — (1,873 ) Total liabilities at fair value $ — $ (7,151 ) $ — $ (7,151 ) $ — $ (14,601 ) $ — $ (14,601 ) (1) We are exposed to credit risk on our hedging instruments associated with potential counterparty non-performance, and the fair value of our derivatives reflects this credit risk. The total level 2 assets at fair value above represent the maximum loss that we would incur on our outstanding hedges if the applicable counterparties failed to perform according to the hedge contracts. To help mitigate counterparty credit risk, we transact only with counterparties that are rated as investment grade or higher and monitor all counterparties on a continuous basis. |
Total Fair Value by Underlying Risk and Balance Sheet Classification | The following table presents the total fair value by underlying risk and balance sheet classification for derivatives designated as cash flow hedges and derivatives not designated as cash flow hedges at September 30, 2015 and December 31, 2014 : Other Current and Non-Current Assets Other Current and Non-Current Liabilities September 30, December 31, September 30, December 31, Designated cash flow hedges Interest rate $ 110 $ 2,258 $ (873 ) $ (1,229 ) Foreign currency 961 39 (2,201 ) (4,996 ) Fair value $ 1,071 $ 2,297 $ (3,074 ) $ (6,225 ) Derivatives not designated as cash flow hedges Interest rate $ — $ — $ — $ — Foreign currency 1,879 803 (4,077 ) (8,376 ) Fair value $ 1,879 $ 803 $ (4,077 ) $ (8,376 ) Total fair value $ 2,950 $ 3,100 $ (7,151 ) $ (14,601 ) |
Schedule Of Derivative Assets And Liabilities On Gross And Net Settlement Basis Table | The following table presents our derivative assets and liabilities at September 30, 2015 on a gross basis and a net settlement basis: Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Amount Financial Cash Collateral Received Derivative Assets: Interest rate $ 110 $ — $ 110 $ — $ — $ 110 Foreign currency 2,840 — 2,840 (15 ) — 2,825 Total assets $ 2,950 $ — $ 2,950 $ (15 ) $ — $ 2,935 Derivative Liabilities: Interest rate $ (873 ) $ — $ (873 ) $ — $ — $ (873 ) Foreign currency (6,278 ) — (6,278 ) 15 — (6,263 ) Total liabilities $ (7,151 ) $ — $ (7,151 ) $ 15 $ — $ (7,136 ) |
Total Value, by Underlying Risk, Recognized in Other Comprehensive Income and Reclassified from Accumulated Other Comprehensive Income to Interest Expense and Cost of Revenue | The following table presents the total value, by underlying risk, recognized in other comprehensive income (“OCI”) and reclassified from AOCI to interest expense (interest rate derivatives) and cost of revenue (foreign currency derivatives) during the three and nine months ended September 30, 2015 and 2014 for derivatives designated as cash flow hedges: Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI Reclassified from AOCI into Earnings (1) Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Designated cash flow hedges Interest rate $ (932 ) $ 769 $ (3,154 ) $ (1,422 ) $ (435 ) $ (533 ) $ (1,362 ) $ (1,622 ) Foreign currency 1,754 (3,441 ) (986 ) (3,488 ) (2,027 ) (672 ) (4,497 ) (318 ) Total $ 822 $ (2,672 ) $ (4,140 ) $ (4,910 ) $ (2,462 ) $ (1,205 ) $ (5,859 ) $ (1,940 ) (1) Net unrealized losses totaling $2,840 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations |
Total Value Recognized in Cost of Revenue for Derivatives which Do Not Seek Hedge Accounting Treatment, by Underlying Risk | The following table presents the total value recognized in cost of revenue for the three and nine months ended September 30, 2015 and 2014 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Derivatives not designated as cash flow hedges Foreign currency $ 7,969 $ 3,942 $ 5,686 $ (2,268 ) Total $ 7,969 $ 3,942 $ 5,686 $ (2,268 ) |
RETIREMENT BENEFITS (Tables)
RETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Contribution Information for Defined Benefit and Other Postretirement Plans | The following table provides updated contribution information for these plans at September 30, 2015 : Pension Plans Other Postretirement Plans Contributions made through September 30, 2015 $ 12,002 $ 1,670 Contributions expected for the remainder of 2015 5,000 616 Total contributions expected for 2015 $ 17,002 $ 2,286 |
Components of Net Periodic Benefit Cost | The following table provides a breakout of the components of net periodic benefit cost associated with our defined benefit pension and other postretirement plans for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pension Plans Service cost $ 2,656 $ 2,274 $ 7,992 $ 6,983 Interest cost 5,849 8,415 17,500 25,611 Expected return on plan assets (7,135 ) (9,193 ) (21,341 ) (27,907 ) Amortization of prior service credits (156 ) (116 ) (467 ) (357 ) Recognized net actuarial losses 1,921 1,172 5,759 3,546 Net periodic benefit cost $ 3,135 $ 2,552 $ 9,443 $ 7,876 Other Postretirement Plans Service cost $ 158 $ 259 $ 593 $ 777 Interest cost 357 570 1,158 1,710 Recognized net actuarial gains (757 ) (216 ) (2,022 ) (648 ) Net periodic benefit (income) cost $ (242 ) $ 613 $ (271 ) $ 1,839 |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in AOCI Balances by Component | The following table presents changes in AOCI, net of tax, by component, during the nine months ended September 30, 2015 : Currency (1) Unrealized Defined Benefit Total Balance at December 31, 2014 $ (133,787 ) $ (2,713 ) $ (125,897 ) $ (262,397 ) OCI before reclassifications (57,231 ) (3,356 ) 8,681 (51,906 ) Amounts reclassified from AOCI — 4,224 2,731 6,955 Net OCI (57,231 ) 868 11,412 (44,951 ) Balance at September 30, 2015 $ (191,018 ) $ (1,845 ) $ (114,485 ) $ (307,348 ) (1) During the nine months ended September 30, 2015 , the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian Dollar, British Pound, Canadian Dollar and Euro exchange rates against the U.S. Dollar. |
Significant Items Reclassified From AOCI Into Earnings | The following table presents reclassification of AOCI into earnings, net of tax, for each component, during the nine months ended September 30, 2015 : AOCI Components Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 1,362 Foreign currency derivatives (cost of revenue) 4,497 Total, before taxes 5,859 Taxes (1,635 ) Total, net of taxes $ 4,224 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits $ (467 ) Recognized net actuarial losses 3,737 Total, before taxes 3,270 Taxes (539 ) Total, net of taxes $ 2,731 (1) See Note 10 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 11 for further discussion of our defined benefit and other postretirement plans, including the components of net periodic benefit cost. |
EQUITY-BASED INCENTIVE PLANS (T
EQUITY-BASED INCENTIVE PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Granted Shares Associated with Equity-Based Incentive Plans | During the nine months ended September 30, 2015 , we granted the following awards associated with our equity-based incentive plans: Shares (1) Weighted Average Grant-Date Fair Value Per Share RSUs 986 $ 42.42 Performance shares 832 $ 41.24 Total 1,818 (1) No stock options were granted during the nine months ended September 30, 2015 . |
Stock-Based Incentive Plans and Employee Stock Purchase Plan | During the nine months ended September 30, 2015 , we had the following activity associated with our equity-based incentive plans and employee stock purchase plan (“ESPP”): Shares Performance shares (issued upon vesting) 563 RSUs (issued upon vesting) 422 Stock options (issued upon exercise) 61 ESPP shares (issued upon sale) 350 Total shares issued 1,396 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Total Revenue, Income, and Assets from Operations by Reportable Segments | The following table presents revenue and income from operations by reportable segment for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue Engineering & Construction $ 1,946,426 $ 2,022,296 $ 5,681,134 $ 5,648,375 Fabrication Services 640,201 686,507 1,889,340 2,052,713 Technology 118,269 89,918 310,605 294,878 Capital Services 616,786 582,012 1,773,461 1,607,278 Total revenue $ 3,321,682 $ 3,380,733 $ 9,654,540 $ 9,603,244 (Loss) Income From Operations Engineering & Construction (1) $ (1,007,354 ) $ 155,096 $ (694,469 ) $ 372,380 Fabrication Services 61,408 67,943 169,744 193,125 Technology 31,911 38,560 116,676 110,471 Capital Services 24,073 29,026 48,992 54,947 Total operating groups (889,962 ) 290,625 (359,057 ) 730,923 Integration related costs — (4,563 ) — (22,167 ) Total (loss) income from operations $ (889,962 ) $ 286,062 $ (359,057 ) $ 708,756 (1) As discussed further in Note 4 , due to the Agreement to sell our Nuclear Operations, during the three months ended September 30, 2015 , we recorded a non-cash pre-tax charge of approximately $1,160,500 within our Engineering & Construction operating group. In conjunction with the aforementioned realignment of our operating groups during the three months ended March 31, 2015, our total assets by reportable segment changed significantly, including an allocation of goodwill among our new and realigned reporting units based on the relative fair value of the reporting units being realigned. At September 30, 2015 and December 31, 2014 , our total assets by reportable segment were as follows (with December 31, 2014 balances reflecting the realignment of our operating groups to conform with the 2015 presentation): September 30, December 31, Assets Engineering & Construction $ 5,036,096 $ 4,555,703 Fabrication Services 2,281,639 2,229,346 Technology 835,786 837,445 Capital Services 1,755,782 1,758,537 Total assets $ 9,909,303 $ 9,381,031 |
ORGANIZATION AND NATURE OF OP40
ORGANIZATION AND NATURE OF OPERATIONS (Details) - Segment | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Year Founded | 1,889 | ||
Number of operating segments | 4 | 4 | 4 |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES - Contracts In Progress Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 13, 2013 | |||||
Contracts In Progress [Line Items] | ||||||||||
Contracts in Progress, net Liabilities | $ (1,828,998) | $ (1,828,998) | $ (1,985,488) | |||||||
Revenue and the related income from operations | 29,500 | $ 33,500 | 86,100 | $ 94,800 | ||||||
Assets [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Costs and estimated earnings on contracts in progress | 16,625,872 | [1] | 16,625,872 | [1] | 20,119,444 | |||||
Billings on contracts in progress | (15,963,528) | [1] | (15,963,528) | [1] | (19,344,800) | |||||
Liability [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Costs and estimated earnings on contracts in progress | 21,023,415 | [1] | 21,023,415 | [1] | 26,052,767 | |||||
Billings on contracts in progress | (22,838,510) | [1] | (22,838,510) | [1] | (27,479,495) | |||||
Margin fair value liability for acquired contracts | (13,903) | [1],[2] | (13,903) | [1],[2] | (558,760) | [2] | $ (745,500) | |||
Costs and Estimated Earnings in Excess of Billings [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Costs and estimated earnings in excess of billings | 662,344 | [1] | 662,344 | [1] | 774,644 | |||||
Billings in Excess of Costs and Estimated Earnings [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Contracts in Progress, net Liabilities | (1,828,998) | [1] | (1,828,998) | [1] | $ (1,985,488) | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Margin fair value liability for acquired contracts | (458,722) | (458,722) | ||||||||
Contracts in Progress, net Liabilities | (46,569) | (46,569) | ||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Assets [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Costs and estimated earnings in excess of billings | [1] | 1,244,100 | 1,244,100 | |||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Liability [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Contracts in Progress, net Liabilities | [1] | (505,300) | (505,300) | |||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Costs and Estimated Earnings in Excess of Billings [Member] | ||||||||||
Contracts In Progress [Line Items] | ||||||||||
Costs and estimated earnings in excess of billings | $ 1,244,128 | $ 1,244,128 | ||||||||
[1] | The Contracts in Progress, net asset and liability balances reflect the impact of reclassifying approximately $1,244,100 and $505,300 (including approximately $458,700 of margin fair value liability), respectively, to assets held for sale and liabilities held for sale, on our Balance Sheet as a result of the agreement to sell our Nuclear Operations, as discussed in Note 4. | |||||||||
[2] | The balance represents a margin fair value liability associated with long-term contracts acquired in connection with our acquisition of The Shaw Group Inc. on February 13, 2013 (the “Acquisition Closing Date”). The margin fair value liability was approximately $745,500 at the Acquisition Closing Date and is recognized as revenue on a POC basis as the applicable projects progress. Revenue and the related income from operations recognized during the three and nine months ended September 30, 2015 was approximately $29,500 and $86,100, respectively, compared with approximately $33,500 and $94,800, respectively, for the comparable 2014 periods. |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | ||||||
Gain due to joint venture | $ 7,500 | |||||
Foreign exchange loss | $ 11,000 | |||||
Integration related costs | $ 0 | $ 4,563 | $ 0 | $ 22,167 | ||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Finite-lived identifiable intangible assets, estimated useful lives, (in years) | 3 years | |||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Finite-lived identifiable intangible assets, estimated useful lives, (in years) | 20 years | |||||
Accounts Receivable [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Contract retentions | 64,800 | $ 64,800 | $ 53,000 | |||
Costs and Estimated Earnings in Excess of Billings [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Unbilled receivables of service contracts | 106,100 | 106,100 | 66,900 | |||
Term Loan One [Member] | Term Loan [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Unsecured term loan remaining | 475,000 | 475,000 | $ 825,000 | |||
Term Loan One [Member] | Term Loan [Member] | Interest rate [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Hedge against interest rate variability | $ 378,750 | $ 378,750 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Net (loss) income attributable to CB&I | $ (740,433) | $ 161,842 | $ (438,690) | $ 393,197 | |
Weighted average shares outstanding—basic (in shares) | 105,454 | 108,199 | 107,440 | 107,993 | |
Effect of restricted shares/performance shares/stock options (in shares) | [1] | 0 | 1,000 | 0 | 1,031 |
Effect of directors' deferred-fee shares (in shares) | [1] | 0 | 10 | 0 | 37 |
Weighted average shares outstanding—diluted (in shares) | 105,454 | 109,209 | 107,440 | 109,061 | |
Net (loss) income attributable to CB&I per share: | |||||
Basic (in dollars per share) | $ (7.02) | $ 1.50 | $ (4.08) | $ 3.64 | |
Diluted (in dollars per share) | $ (7.02) | $ 1.48 | $ (4.08) | $ 3.61 | |
[1] | The effect of restricted, performance, stock options and directors' deferred-fee shares were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2015 due to the net loss for the periods. Antidilutive shares excluded from diluted EPS were not material for the three and nine months ended September 30, 2014. |
DISPOSITION OF NUCLEAR OPERAT44
DISPOSITION OF NUCLEAR OPERATIONS Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 27, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairment, pre-tax charge | $ 1,160,480 | $ 1,160,480 | ||||
Asset impairment, after-tax | 904,200 | |||||
Goodwill impairment | 453,100 | $ 0 | 453,100 | $ 0 | ||
Intangible assets impairment | 79,100 | 79,100 | ||||
Loss on assets held for sale | 628,280 | $ 628,280 | ||||
Goodwill impairment, net tax benefit | $ 256,300 | |||||
Scenario, Forecast [Member] | Maximum [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairment, pre-tax charge | $ 1,600,000 | |||||
Asset impairment, after-tax | 1,200,000 | |||||
Scenario, Forecast [Member] | Minimum [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairment, pre-tax charge | 1,300,000 | |||||
Asset impairment, after-tax | $ 1,000,000 | |||||
Subsequent Event [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Estimated transaction consideration | $ 161,000 | |||||
Present value of estimated transaction consideration | 143,000 | |||||
Milestone based payment, amount | $ 68,000 |
DISPOSITION OF NUCLEAR OPERAT45
DISPOSITION OF NUCLEAR OPERATIONS Disposition Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Loss on assets held for sale | $ 628,280 | $ 628,280 | ||
Intangible assets impairment | 79,100 | 79,100 | ||
Loss on assets held for sale and intangible assets impairment | 707,380 | $ 0 | 707,380 | $ 0 |
Goodwill impairment | 453,100 | $ 0 | 453,100 | $ 0 |
Total pre-tax charge | $ 1,160,480 | $ 1,160,480 |
DISPOSITION OF NUCLEAR OPERAT46
DISPOSITION OF NUCLEAR OPERATIONS Assets Held For Sale And Results Of Nuclear Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Assets | |||||||
Accounts receivable | $ 135,401 | $ 135,401 | |||||
Property and equipment, net | 129,425 | 129,425 | |||||
Other assets | 5,755 | 5,755 | |||||
Assets held for sale before loss | 1,514,709 | 1,514,709 | |||||
Loss on assets held for sale | (628,280) | (628,280) | |||||
Assets held for sale | 886,429 | 886,429 | $ 0 | ||||
Liabilities | |||||||
Billings in excess of costs and estimated earnings ($869,906 and $282,351 related to VIEs) | 1,828,998 | 1,828,998 | 1,985,488 | ||||
Accounts payable | 209,017 | 209,017 | |||||
Other liabilities | 41,121 | 41,121 | |||||
Liabilities held for sale | 755,429 | 755,429 | 0 | ||||
Estimated Sales Proceeds (net of estimated transaction costs of $12,000) | 131,000 | 131,000 | |||||
Estimated Transaction Costs | 12,000 | 12,000 | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Assets | |||||||
Assets held for sale | 886,429 | 886,429 | |||||
Liabilities | |||||||
Margin fair value liability | 458,722 | 458,722 | |||||
Billings in excess of costs and estimated earnings ($869,906 and $282,351 related to VIEs) | 46,569 | 46,569 | |||||
Liabilities held for sale | 755,429 | 755,429 | |||||
Nuclear Operations [Member] | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Revenue | 502,922 | $ 510,571 | 1,555,508 | $ 1,310,668 | |||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax [Abstract] | |||||||
Pre-tax income | 45,715 | $ 41,900 | 163,115 | $ 112,600 | |||
Costs and Estimated Earnings in Excess of Billings [Member] | |||||||
Assets | |||||||
Costs and estimated earnings in excess of billings | 662,344 | [1] | 662,344 | [1] | $ 774,644 | ||
Costs and Estimated Earnings in Excess of Billings [Member] | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Assets | |||||||
Costs and estimated earnings in excess of billings | $ 1,244,128 | $ 1,244,128 | |||||
[1] | The Contracts in Progress, net asset and liability balances reflect the impact of reclassifying approximately $1,244,100 and $505,300 (including approximately $458,700 of margin fair value liability), respectively, to assets held for sale and liabilities held for sale, on our Balance Sheet as a result of the agreement to sell our Nuclear Operations, as discussed in Note 4. |
INVENTORY - Components of Inve
INVENTORY - Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 155,686 | $ 162,451 |
Work in process | 42,994 | 38,232 |
Finished goods | 97,988 | 85,472 |
Total | $ 296,668 | $ 286,155 |
GOODWILL AND OTHER INTANGIBLE48
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Mar. 31, 2015Segment | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Reporting_UnitSegment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Reporting_UnitSegment | |
Goodwill [Line Items] | ||||||
Goodwill | $ 3,722,344,000 | $ 3,722,344,000 | $ 4,195,231,000 | |||
Number of Reporting Units | Reporting_Unit | 8 | 7 | ||||
Number of Operating Segments | Segment | 4 | 4 | 4 | |||
Goodwill impairment | 453,100,000 | $ 0 | $ 453,100,000 | $ 0 | ||
Engineering, Construction And Maintenance [Member] | ||||||
Goodwill [Line Items] | ||||||
Number of Reporting Units | Reporting_Unit | 3 | |||||
Fabrication Services [Member] | ||||||
Goodwill [Line Items] | ||||||
Number of Reporting Units | Reporting_Unit | 3 | 2 | ||||
Engineering and Construction [Member] | ||||||
Goodwill [Line Items] | ||||||
Number of Reporting Units | Reporting_Unit | 2 | |||||
Capital Services [Member] | ||||||
Goodwill [Line Items] | ||||||
Number of Reporting Units | Reporting_Unit | 2 | |||||
Nuclear Operations [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 0 | $ 0 | ||||
Goodwill impairment | 191,000,000 | |||||
Retained Power Operations [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 1,461,400,000 | $ 1,461,400,000 | ||||
Goodwill impairment | $ 262,100,000 |
GOODWILL AND OTHER INTANGIBLE49
GOODWILL AND OTHER INTANGIBLES - Change in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill [Roll Forward] | ||||
Balance at December 31, 2014 | $ 4,195,231 | |||
Impairment charge | $ (453,100) | $ 0 | (453,100) | $ 0 |
Foreign currency translation | (16,188) | |||
Amortization of tax goodwill in excess of book goodwill | (3,599) | |||
Balance at September 30, 2015 | $ 3,722,344 | $ 3,722,344 |
GOODWILL AND OTHER INTANGIBLE50
GOODWILL AND OTHER INTANGIBLES - Finite-Lived Intangible Asset Balances Including Weighted-Average Useful Lives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangible assets, weighted average useful life | 16 years | ||||||
Gross Carrying Amount | [1] | $ 618,539 | $ 618,539 | $ 753,658 | |||
Accumulated Amortization | [1] | (194,709) | (194,709) | (197,204) | |||
Amortization expense | 14,948 | $ 16,789 | $ 45,542 | $ 49,845 | |||
Backlog and customer relationships [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangible assets, weighted average useful life | 17 years | ||||||
Gross Carrying Amount | [2],[3] | 281,072 | $ 281,072 | 380,586 | |||
Accumulated Amortization | [2],[3] | (60,862) | $ (60,862) | (71,257) | |||
Backlog and customer relationships intangibles | $ 11,000 | ||||||
Process technologies [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangible assets, weighted average useful life | 15 years | ||||||
Gross Carrying Amount | 272,595 | $ 272,595 | 287,459 | ||||
Accumulated Amortization | (111,990) | $ (111,990) | (105,646) | ||||
Tradenames [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangible assets, weighted average useful life | 10 years | ||||||
Gross Carrying Amount | [3] | 64,872 | $ 64,872 | 85,613 | |||
Accumulated Amortization | [3] | (21,857) | $ (21,857) | $ (20,301) | |||
Impairment charge | $ 79,100 | ||||||
[1] | The remaining decrease in other intangible assets during the nine months ended September 30, 2015 primarily related to amortization expense of approximately $45,500 and the impact of foreign currency translation. | ||||||
[2] | Backlog and customer relationships intangibles totaling approximately $11,000 became fully amortized during the three months ended March 31, 2015 and were removed from the gross carrying and accumulated amortization balances above. | ||||||
[3] | During the three months ended September 30, 2015, we recorded an impairment charge of approximately $79,100 related to customer relationship and tradename intangible assets as a result of the Agreement to sell our Nuclear Operations described further in Note 4. The impairment was based on a comparison of the carrying value of the intangible assets to their fair value (indicated by the Estimated Sales Proceeds), which resulted in an impairment of all intangible assets of the Nuclear Operations. The impairment charge is included in "loss on assets held for sale and intangible assets impairment" in our Statement of Operations and relates to our Engineering and Construction operating group. The related intangibles were removed from the gross carrying and accumulated amortization balances above. We noted no other indicators of impairment during the nine months ended September 30, 2015. |
PARTNERING ARRANGEMENTS - Addi
PARTNERING ARRANGEMENTS - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)Train | |
Chicago Bridge And Iron Zachary Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Number of LNG trains | Train | 2 |
Joint venture contract value | $ 2,700,000 |
Chicago Bridge And Iron Zachary and Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Joint venture contract value | $ 675,000 |
Chicago Bridge And Iron Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Number of LNG trains | Train | 3 |
Joint venture contract value | $ 3,100,000 |
CB&I/Kentz Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Number of LNG trains | Train | 3 |
Joint venture contract value | $ 5,000,000 |
CB&I/Areva Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Joint venture contract value | $ 5,500,000 |
Kentz [Member] | CB&I/Kentz Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Percentage of ownership in consolidated venture | 35.00% |
Areva [Member] | CB&I/Areva Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Percentage of ownership in consolidated venture | 48.00% |
Zachary [Member] | Chicago Bridge And Iron Zachary Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 50.00% |
Zachary [Member] | Chicago Bridge And Iron Zachary and Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 33.30% |
Chiyoda [Member] | Chicago Bridge And Iron Zachary and Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 33.30% |
Chiyoda [Member] | Chicago Bridge And Iron Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 50.00% |
CB&I [Member] | Chicago Bridge And Iron Zachary Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 50.00% |
CB&I [Member] | Chicago Bridge And Iron Zachary and Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 33.30% |
CB&I [Member] | Chicago Bridge And Iron Chiyoda Unconsolidated Venture [Member] | |
Schedule of Investments [Line Items] | |
Proportionately consolidates ventures percentage | 50.00% |
CB&I [Member] | CB&I/Kentz Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Percentage of ownership in consolidated venture | 65.00% |
CB&I [Member] | CB&I/Areva Joint Venture [Member] | |
Schedule of Investments [Line Items] | |
Percentage of ownership in consolidated venture | 52.00% |
CB&I [Member] | Chevron-Lummus Global CLG [Member] | |
Schedule of Investments [Line Items] | |
Equity method investment percentage | 50.00% |
CB&I [Member] | Net Power [Member] | |
Schedule of Investments [Line Items] | |
Equity method investment percentage | 33.30% |
Cash commitment | $ 47,300 |
Equity method invested | $ 14,900 |
Chevron [Member] | Chevron-Lummus Global CLG [Member] | |
Schedule of Investments [Line Items] | |
Equity method investment percentage | 50.00% |
Exelon [Member] | Net Power [Member] | |
Schedule of Investments [Line Items] | |
Equity method investment percentage | 33.30% |
8 Rivers Capital [Member] | Net Power [Member] | |
Schedule of Investments [Line Items] | |
Equity method investment percentage | 33.30% |
PARTNERING ARRANGEMENTS - Prop
PARTNERING ARRANGEMENTS - Proportionately Consolidated Variable Interest Entities Summarized Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Advances from ventures | $ 289,300 | $ 71,200 | |
Advances to ventures | 292,700 | 108,700 | |
CB&I/Zachary [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [1] | 280,974 | 85,484 |
Current liabilities | 399,057 | 149,891 | |
CB&I/Zachry/Chiyoda [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [1] | 50,608 | 0 |
Current liabilities | 52,632 | 0 | |
CB&I/Chiyoda [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [1] | 336,420 | 102,035 |
Current liabilities | $ 386,711 | $ 124,367 | |
[1] | Our venture arrangements allow for excess working capital of the ventures to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. Accordingly, at a reporting period end a venture may have advances to its partners which are reflected as an advance receivable within current assets of the venture. At September 30, 2015 and December 31, 2014, other current assets on the Balance Sheet included approximately $289,300 and $71,200, respectively, related to our proportionate share of advances from the ventures to our venture partners. In addition, at September 30, 2015 and December 31, 2014 other current liabilities on the Balance Sheet included approximately $292,700 and $108,700, respectively, related to advances to CB&I from the ventures. |
PARTNERING ARRANGEMENTS - Summ
PARTNERING ARRANGEMENTS - Summarized Balance Sheet Information of Variable Interest Entities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
CB&I/Kentz [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | $ 215,183 | $ 220,930 | |
Current liabilities | 223,565 | 196,277 | |
CB&I/AREVA [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | 34,286 | 27,006 | |
Current liabilities | 69,479 | 73,124 | |
All Other [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | [1] | 133,974 | 130,458 |
Non-current assets | [1] | 20,410 | 22,045 |
Total assets | [1] | 154,384 | 152,503 |
Current liabilities | [1] | $ 40,115 | $ 36,534 |
[1] | Other ventures that we consolidate due to their designation as VIEs are not individually material to our financial results and are therefore aggregated as “All Other”. |
FACILITY REALIGNMENT LIABILIT54
FACILITY REALIGNMENT LIABILITY (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Reserve | |
Balance at December 31, 2014 | $ 14,354 |
Cash payments | (6,915) |
Balance at September 30, 2015 | 9,021 |
Integration related costs [Member] | |
Restructuring Reserve | |
Charges | $ 1,582 |
DEBT - Outstanding Debt (Detai
DEBT - Outstanding Debt (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Jul. 30, 2015 | Jul. 08, 2015 | |
Current | ||||
Revolving facility and other short-term borrowings | $ 503,000,000 | $ 164,741,000 | ||
Current maturities of long-term debt | 143,646,000 | 105,997,000 | ||
Current debt | 646,646,000 | 270,738,000 | ||
Long-Term | ||||
Senior notes | 800,000,000 | 800,000,000 | ||
Less: current maturities of long-term debt | (143,646,000) | (105,997,000) | ||
Long-term debt | $ 1,872,030,000 | $ 1,564,158,000 | ||
Minimum [Member] | ||||
Long-Term | ||||
Debt instrument fixed interest rate | 4.15% | 4.15% | ||
Maximum [Member] | ||||
Long-Term | ||||
Debt instrument fixed interest rate | 5.30% | 5.30% | ||
Term Loan [Member] | ||||
Long-Term | ||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 500,000,000 | $ 0 | ||
Secured Debt [Member] | ||||
Long-Term | ||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | 48,081,000 | |||
Other long-term debt | $ 40,676,000 | 45,155,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.26% | |||
Term Loan One [Member] | Term Loan [Member] | ||||
Long-Term | ||||
Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 475,000,000 | 825,000,000 | ||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt instrument, interest rate terms | Interest at LIBOR plus an applicable floating margin | Interest at LIBOR plus an applicable floating margin | ||
First Senior Notes [Member] | ||||
Long-Term | ||||
Senior notes | $ 800,000,000 | $ 800,000,000 | ||
Second Senior Notes [Member] | ||||
Long-Term | ||||
Senior notes | $ 200,000,000 | $ 0 | $ 200,000,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.53% | 4.53% | ||
Term Loan Two [Member] | Term Loan [Member] | ||||
Long-Term | ||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 500,000,000 | $ 500,000,000 | ||
Debt instrument, interest rate terms | Interest at LIBOR plus an applicable floating margin |
DEBT - Additional Information
DEBT - Additional Information (Detail) | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Jul. 30, 2015USD ($) | Jul. 08, 2015USD ($) | Jul. 07, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Disclosure [Line Items] | |||||
Minimum net worth requirement | $ 1,560,389,000 | ||||
Revolving facility and other short-term borrowings | 503,000,000 | $ 164,741,000 | |||
Senior notes | 800,000,000 | 800,000,000 | |||
First Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | 800,000,000 | 800,000,000 | |||
Series A Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 150,000,000 | ||||
Semi annually fixed rate payable | 4.15% | ||||
Month and year senior note matures | 2017-12 | ||||
Series B Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 225,000,000 | ||||
Semi annually fixed rate payable | 4.57% | ||||
Month and year senior note matures | 2019-12 | ||||
Series C Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 275,000,000 | ||||
Semi annually fixed rate payable | 5.15% | ||||
Month and year senior note matures | 2022-12 | ||||
Series D Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 150,000,000 | ||||
Semi annually fixed rate payable | 5.30% | ||||
Month and year senior note matures | 2024-12 | ||||
Second Senior Notes [Member] | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 200,000,000 | $ 200,000,000 | 0 | ||
Semi annually fixed rate payable | 4.53% | 4.53% | |||
Uncommitted Credit Facility [Member] | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility, borrowing and financial letter of credit sublimit | $ 440,000,000 | ||||
Revolving facility and other short-term borrowings | 323,000,000 | ||||
Amount outstanding under credit facility | 1,183,140,000 | ||||
Available borrowing capacity under credit facility | $ 2,350,007,000 | ||||
Weighted average interest rate | 1.20% | ||||
Credit facility total capacity | $ 3,856,147,000 | ||||
Line of credit facility, current borrowing capacity net of letters of credit | 439,614,000 | ||||
Reduction of borrowing capacity amount due to letters of credit utilization | 386,000 | ||||
Remaining borrowing capacity under credit facility | 116,614,000 | ||||
Term Loan [Member] | |||||
Debt Disclosure [Line Items] | |||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 500,000,000 | 0 | |||
Secured Debt [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt Instrument, term | 6 years | ||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 48,081,000 | ||||
Future annual maturities for the remainder of 2015 | 1,518,000 | ||||
Future annual maturities for 2016 | 6,196,000 | ||||
Future annual maturities for 2017 | 6,401,000 | ||||
Future annual maturities for 2018 | 6,613,000 | ||||
Future annual maturities for 2019 | 6,832,000 | ||||
Future annual maturities for 2020 | $ 13,116,000 | ||||
Semi annually fixed rate payable | 3.26% | ||||
Other long-term debt | $ 40,676,000 | 45,155,000 | |||
Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt Instrument, term | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 1,350,000,000 | ||||
Line of credit facility, expiration dates | 2018-10 | ||||
Line of credit facility, borrowing and financial letter of credit sublimit | $ 675,000,000 | ||||
Financial letters line of credit capacity | $ 270,000,000 | ||||
Maximum amount available for dividends and stock repurchase | 250,000,000 | ||||
Revolving facility and other short-term borrowings | 180,000,000 | ||||
Amount outstanding under credit facility | 201,633,000 | ||||
Available borrowing capacity under credit facility | $ 968,367,000 | ||||
Weighted average interest rate | 1.80% | ||||
Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility Two [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt Instrument, term | 5 years | ||||
Line of credit facility, maximum borrowing capacity | 650,000,000 | ||||
Line of credit facility, expiration dates | 2018-02 | ||||
Line of credit facility, borrowing and financial letter of credit sublimit | $ 487,500,000 | ||||
Revolving facility and other short-term borrowings | $ 0 | ||||
Amount outstanding under credit facility | 18,407,000 | ||||
Available borrowing capacity under credit facility | $ 781,593,000 | ||||
Weighted average interest rate | 3.80% | ||||
Financial letters of credit, outstanding amount | $ 3,992,000 | ||||
Unsecured Revolving Credit Facility [Member] | Amended Revolving Credit Facility Two [Member] | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 800,000,000 | ||||
Financial letters line of credit capacity | $ 50,000,000 | ||||
Unsecured Revolving Credit Facility [Member] | Total Revolving Credit Facilities [Member] | |||||
Debt Disclosure [Line Items] | |||||
Maximum outstanding borrowings | 1,144,240,000 | ||||
Surety Bond [Member] | |||||
Debt Disclosure [Line Items] | |||||
Outstanding surety bonds | $ 732,501,000 | ||||
Prime Rate [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, basis for variable rate | 3.25% | ||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Prime Rate [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility Two [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, basis for variable rate | 3.25% | ||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, basis for variable rate | 0.19% | ||||
Debt instrument, basis spread on variable rate | 1.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, basis for variable rate | 0.19% | ||||
Debt instrument, basis spread on variable rate | 1.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility Two [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, basis for variable rate | 0.19% | ||||
Debt instrument, basis spread on variable rate | 1.50% | ||||
Maximum [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, covenant leverage ratio | 3.25 | ||||
Debt instrument covenant leverage ratio for dividend payments and share repurchases | 1.5 | ||||
Minimum [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, covenant fixed charge coverage ratio | 1.75 | ||||
Term Loan One [Member] | |||||
Debt Disclosure [Line Items] | |||||
Prepayment of Principal for Long-term Debt Maturities in Year Two | 275,000,000 | ||||
Term Loan One [Member] | Term Loan [Member] | |||||
Debt Disclosure [Line Items] | |||||
Debt Instrument, term | 4 years | ||||
Weighted average interest rate | 2.00% | ||||
Unsecured term loan remaining | $ 475,000,000 | 825,000,000 | |||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | 1,000,000,000 | $ 1,000,000,000 | |||
Future annual maturities for the remainder of 2015 | 25,000,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 150,000,000 | ||||
Future annual maturities for 2016 | 300,000,000 | ||||
Term Loan One [Member] | Term Loan [Member] | Interest Rate Swap [Member] | |||||
Debt Disclosure [Line Items] | |||||
Hedge against interest rate variability | $ 378,750,000 | ||||
Term Loan Two [Member] | Term Loan [Member] | |||||
Debt Disclosure [Line Items] | |||||
Weighted average interest rate | 1.70% | ||||
Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) | $ 500,000,000 | $ 500,000,000 | |||
Future annual maturities for 2016 | 56,250,000 | ||||
Future annual maturities for 2017 | 75,000,000 | ||||
Future annual maturities for 2018 | 75,000,000 | ||||
Future annual maturities for 2019 | $ 293,750,000 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Jul. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Senior notes | $ 800,000,000 | $ 800,000,000 | |
Term Loan One [Member] | Term Loan [Member] | |||
Derivative [Line Items] | |||
Unsecured term loan remaining | 475,000,000 | 825,000,000 | |
Term Loan One [Member] | Interest rate [Member] | Term Loan [Member] | |||
Derivative [Line Items] | |||
Hedge against interest rate variability | 378,750,000 | ||
Foreign Exchange Contract Operating Exposure [Member] | |||
Derivative [Line Items] | |||
Notional value of outstanding forward contracts | $ 51,400,000 | ||
Foreign Exchange Contract Operating Exposure [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Maturity of foreign currency derivatives from period-end | 4 years | ||
First Senior Notes [Member] | |||
Derivative [Line Items] | |||
Senior notes | $ 800,000,000 | 800,000,000 | |
First Senior Notes [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Senior notes | 786,900,000 | 785,100,000 | |
Second Senior Notes [Member] | |||
Derivative [Line Items] | |||
Senior notes | 200,000,000 | $ 200,000,000 | $ 0 |
Second Senior Notes [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Senior notes | $ 201,700,000 |
FINANCIAL INSTRUMENTS - Carried
FINANCIAL INSTRUMENTS - Carried at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives: | |||
Other current assets | [1] | $ 2,833 | $ 852 |
Other non-current assets | [1] | 117 | 2,248 |
Total assets at fair value | [1] | 2,950 | 3,100 |
Derivatives: | |||
Other current liabilities | (6,209) | (12,728) | |
Other non-current liabilities | (942) | (1,873) | |
Total liabilities at fair value | (7,151) | (14,601) | |
Level 1 [Member] | |||
Derivatives: | |||
Other current assets | [1] | 0 | 0 |
Other non-current assets | [1] | 0 | 0 |
Total assets at fair value | [1] | 0 | 0 |
Derivatives: | |||
Other current liabilities | 0 | 0 | |
Other non-current liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Level 2 [Member] | |||
Derivatives: | |||
Other current assets | [1] | 2,833 | 852 |
Other non-current assets | [1] | 117 | 2,248 |
Total assets at fair value | [1] | 2,950 | 3,100 |
Derivatives: | |||
Other current liabilities | (6,209) | (12,728) | |
Other non-current liabilities | (942) | (1,873) | |
Total liabilities at fair value | (7,151) | (14,601) | |
Level 3 [Member] | |||
Derivatives: | |||
Other current assets | [1] | 0 | 0 |
Other non-current assets | [1] | 0 | 0 |
Total assets at fair value | [1] | 0 | 0 |
Derivatives: | |||
Other current liabilities | 0 | 0 | |
Other non-current liabilities | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | We are exposed to credit risk on our hedging instruments associated with potential counterparty non-performance, and the fair value of our derivatives reflects this credit risk. The total level 2 assets at fair value above represent the maximum loss that we would incur on our outstanding hedges if the applicable counterparties failed to perform according to the hedge contracts. To help mitigate counterparty credit risk, we transact only with counterparties that are rated as investment grade or higher and monitor all counterparties on a continuous basis. |
FINANCIAL INSTRUMENTS - Total F
FINANCIAL INSTRUMENTS - Total Fair Value by Underlying Risk and Balance Sheet Classification (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 2,950 | $ 3,100 |
Liability Derivatives Fair Value | (7,151) | (14,601) |
Interest rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 110 | |
Liability Derivatives Fair Value | (873) | |
Foreign currency [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 2,840 | |
Liability Derivatives Fair Value | (6,278) | |
Derivatives designated as cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 1,071 | 2,297 |
Liability Derivatives Fair Value | (3,074) | (6,225) |
Derivatives designated as cash flow hedges [Member] | Interest rate [Member] | Other current and non-current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 110 | 2,258 |
Derivatives designated as cash flow hedges [Member] | Interest rate [Member] | Other current and non-current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (873) | (1,229) |
Derivatives designated as cash flow hedges [Member] | Foreign currency [Member] | Other current and non-current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 961 | 39 |
Derivatives designated as cash flow hedges [Member] | Foreign currency [Member] | Other current and non-current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (2,201) | (4,996) |
Derivatives not designated as cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 1,879 | 803 |
Liability Derivatives Fair Value | (4,077) | (8,376) |
Derivatives not designated as cash flow hedges [Member] | Interest rate [Member] | Other current and non-current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 0 | 0 |
Derivatives not designated as cash flow hedges [Member] | Interest rate [Member] | Other current and non-current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0 | 0 |
Derivatives not designated as cash flow hedges [Member] | Foreign currency [Member] | Other current and non-current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 1,879 | 803 |
Derivatives not designated as cash flow hedges [Member] | Foreign currency [Member] | Other current and non-current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | $ (4,077) | $ (8,376) |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivative Assets and Liabilities on Gross Basis and Net Settlement Basis (Detail) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Gross Amounts Recognized | $ 2,950 | $ 3,100 |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 2,950 | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (15) | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | 2,935 | |
Liabilities: | ||
Gross Amounts Recognized | (7,151) | $ (14,601) |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (7,151) | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 15 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | (7,136) | |
Interest rate [Member] | ||
Assets: | ||
Gross Amounts Recognized | 110 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 110 | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 0 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | 110 | |
Liabilities: | ||
Gross Amounts Recognized | (873) | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (873) | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 0 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | (873) | |
Foreign currency [Member] | ||
Assets: | ||
Gross Amounts Recognized | 2,840 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 2,840 | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (15) | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | 2,825 | |
Liabilities: | ||
Gross Amounts Recognized | (6,278) | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (6,278) | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 15 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | $ (6,263) |
FINANCIAL INSTRUMENTS - Total V
FINANCIAL INSTRUMENTS - Total Value, by Underlying Risk, Recognized in Other Comprehensive Income and Reclassified from Accumulated Other Comprehensive Income to Interest Expense and Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | $ (725,554) | $ 183,890 | $ (382,917) | $ 453,702 | |
Derivatives designated as cash flow hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | 822 | (2,672) | (4,140) | (4,910) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (2,462) | (1,205) | (5,859) | (1,940) |
Net unrealized gains (losses) anticipated to be reclassified into earnings during the next 12 months | (2,840) | ||||
Derivatives designated as cash flow hedges [Member] | Interest rate [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | (932) | 769 | (3,154) | (1,422) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (435) | (533) | (1,362) | (1,622) |
Derivatives designated as cash flow hedges [Member] | Foreign currency [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | 1,754 | (3,441) | (986) | (3,488) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | $ (2,027) | $ (672) | $ (4,497) | $ (318) |
[1] | Net unrealized losses totaling $2,840 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. |
FINANCIAL INSTRUMENTS - Total62
FINANCIAL INSTRUMENTS - Total Value Recognized in Cost of Revenue for Foreign Currency Derivatives not Designated As Cash Flow Hedges (Detail) - Derivatives not designated as cash flow hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Cost of Revenue on Derivatives | $ 7,969 | $ 3,942 | $ 5,686 | $ (2,268) |
Foreign currency [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Cost of Revenue on Derivatives | $ 7,969 | $ 3,942 | $ 5,686 | $ (2,268) |
RETIREMENT BENEFITS - Addition
RETIREMENT BENEFITS - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions expected for 2015 fiscal year | $ 18,545 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions expected for 2015 fiscal year | $ 2,895 |
RETIREMENT BENEFITS - Contribu
RETIREMENT BENEFITS - Contribution Information for Defined Benefit and Other Postretirement Plans (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions made through September 30, 2015 | $ 12,002 |
Contributions expected for the remainder of 2015 | 5,000 |
Total contributions expected for 2015 | 17,002 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions made through September 30, 2015 | 1,670 |
Contributions expected for the remainder of 2015 | 616 |
Total contributions expected for 2015 | $ 2,286 |
RETIREMENT BENEFITS - Componen
RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,656 | $ 2,274 | $ 7,992 | $ 6,983 |
Interest cost | 5,849 | 8,415 | 17,500 | 25,611 |
Expected return on plan assets | (7,135) | (9,193) | (21,341) | (27,907) |
Amortization of prior service credits | (156) | (116) | (467) | (357) |
Recognized net actuarial losses (gains) | 1,921 | 1,172 | 5,759 | 3,546 |
Net periodic benefit (income) cost | 3,135 | 2,552 | 9,443 | 7,876 |
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 158 | 259 | 593 | 777 |
Interest cost | 357 | 570 | 1,158 | 1,710 |
Recognized net actuarial losses (gains) | (757) | (216) | (2,022) | (648) |
Net periodic benefit (income) cost | $ (242) | $ 613 | $ (271) | $ 1,839 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - Asbestos Litigation [Member] $ / LegalMatter in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)PlaintiffLegalMatter$ / LegalMatter | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of plaintiffs | Plaintiff | 5,800 |
Number of plaintiffs whose claims pending | 1,200 |
Number of plaintiffs whose claims closed through dismissals or settlements | 4,600 |
Settlement amount per claim (dollars per legal matter) | $ / LegalMatter | 2 |
Accrued litigation liability and related expenses | $ | $ 5,500 |
ACCUMULATED OTHER COMPREHENSI67
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components and Reclassification of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2014 | $ (262,397) | |
OCI before reclassifications | (51,906) | |
Amounts reclassified from AOCI | 6,955 | |
Net OCI | (44,951) | |
Balance at September 30, 2015 | (307,348) | |
Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2014 | (133,787) | [1] |
OCI before reclassifications | (57,231) | [1] |
Amounts reclassified from AOCI | 0 | [1] |
Net OCI | (57,231) | [1] |
Balance at September 30, 2015 | (191,018) | [1] |
Unrealized Fair Value Of Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2014 | (2,713) | |
OCI before reclassifications | (3,356) | |
Amounts reclassified from AOCI | 4,224 | |
Net OCI | 868 | |
Balance at September 30, 2015 | (1,845) | |
Defined Benefit Pension and Other Postretirement Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2014 | (125,897) | |
OCI before reclassifications | 8,681 | |
Amounts reclassified from AOCI | 2,731 | |
Net OCI | 11,412 | |
Balance at September 30, 2015 | $ (114,485) | |
[1] | During the nine months ended September 30, 2015, the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian Dollar, British Pound, Canadian Dollar and Euro exchange rates against the U.S. Dollar. |
ACCUMULATED OTHER COMPREHENSI68
ACCUMULATED OTHER COMPREHENSIVE INCOME - Significant Items Reclassified Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest rate derivatives (interest expense) | $ 25,025 | $ 21,337 | $ 68,425 | $ 61,899 | |
Foreign currency derivatives (cost of revenue) | 2,943,965 | 2,987,539 | 8,523,529 | 8,527,473 | |
(Loss) income before taxes | (912,929) | 267,309 | (421,192) | 652,978 | |
Taxes | 187,375 | (83,419) | 38,275 | (199,276) | |
Net (loss) income | $ (725,554) | $ 183,890 | (382,917) | $ 453,702 | |
Unrealized Fair Value Of Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
(Loss) income before taxes | [1] | 5,859 | |||
Taxes | [1] | (1,635) | |||
Net (loss) income | [1] | 4,224 | |||
Defined Benefit Pension and Other Postretirement Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of prior service credits | [2] | (467) | |||
Recognized net actuarial losses | [2] | 3,737 | |||
(Loss) income before taxes | [2] | 3,270 | |||
Taxes | [2] | (539) | |||
Net (loss) income | [2] | 2,731 | |||
Interest rate derivatives (interest expense) [Member] | Unrealized Fair Value Of Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest rate derivatives (interest expense) | [1] | 1,362 | |||
Foreign currency derivatives (cost of revenue) [Member] | Unrealized Fair Value Of Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Foreign currency derivatives (cost of revenue) | [1] | $ 4,497 | |||
[1] | See Note 10 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. | ||||
[2] | See Note 11 for further discussion of our defined benefit and other postretirement plans, including the components of net periodic benefit cost. |
EQUITY-BASED INCENTIVE PLANS -
EQUITY-BASED INCENTIVE PLANS - Granted Shares Associated with Equity-Based Incentive Plans (Details) | 9 Months Ended | |
Sep. 30, 2015$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 1,818,000 | [1] |
Stock options granted | 0 | |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 986,000 | [1] |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 42.42 | |
Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 832,000 | [1] |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 41.24 | |
[1] | No stock options were granted during the nine months ended September 30, 2015. |
EQUITY-BASED INCENTIVE PLANS 70
EQUITY-BASED INCENTIVE PLANS - Stock-Based Incentive Plans and Employee Stock Purchase Plan (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 1,396 |
Performance shares (issued upon vesting) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 563 |
RSUs (issued upon vesting) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 422 |
Stock options (issued upon exercise) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 61 |
ESPP shares (issued upon sale) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 350 |
EQUITY-BASED INCENTIVE PLANS 71
EQUITY-BASED INCENTIVE PLANS - Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase of treasury stock | $ 210,748 | $ 66,639 | ||
Treasury Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase of treasury stock (in shares) | 4,480 | 864 | ||
Purchase of treasury stock | $ 210,748 | $ 66,639 | ||
Share repurchase, average price per share (in dollars per share) | $ 47.04 | $ 47.04 | ||
Treasury Stock [Member] | Outstanding Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase of treasury stock (in shares) | 4,178 | |||
Purchase of treasury stock | $ 198,069 | |||
Treasury Stock [Member] | Withholdings For Taxes On Distributions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase of treasury stock (in shares) | 302 | |||
Purchase of treasury stock | $ 12,679 | |||
Selling and administrative expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,122 | $ 7,024 | $ 49,185 | $ 58,558 |
UNAPPROVED CHANGE ORDERS, CLA72
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)CustomerPower_Plant | Sep. 30, 2015USD ($)CustomerPower_Plant | Dec. 31, 2014USD ($) | |
Schedule Of Unapproved Claims And Change Orders [Line Items] | |||
Number of customers | Customer | 2 | 2 | |
Number of nuclear power plants | Power_Plant | 2 | 2 | |
Loss on assets held for sale | $ 628,280 | $ 628,280 | |
Contract Receivable, Past Due | 38,000 | 38,000 | |
Engineering & Construction [Member] | |||
Schedule Of Unapproved Claims And Change Orders [Line Items] | |||
Revenues recognized on a cumulative POC basis | 480,000 | 480,000 | |
Cumulative partial payments | 210,000 | 210,000 | |
All Other [Member] | |||
Schedule Of Unapproved Claims And Change Orders [Line Items] | |||
Unapproved change orders and claims included in project price | 118,000 | 118,000 | $ 98,100 |
Revenues recognized on a cumulative POC basis | 178,000 | 178,000 | |
Incentive amounts included in contract price | 103,000 | 103,000 | 32,600 |
Georgia Nuclear Project [Member] | Engineering & Construction [Member] | |||
Schedule Of Unapproved Claims And Change Orders [Line Items] | |||
Unapproved change orders and claims included in project price | 838,600 | 838,600 | 838,600 |
South Carolina Nuclear Project [Member] | Engineering & Construction [Member] | |||
Schedule Of Unapproved Claims And Change Orders [Line Items] | |||
Unapproved change orders and claims included in project price | $ 442,000 | $ 442,000 | $ 373,000 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Mar. 31, 2015Segment | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | $ 1,160,480 | $ 1,160,480 | |||
Number of business sectors | Segment | 4 | 4 | |||
Revenue | 3,321,682 | $ 3,380,733 | $ 9,654,540 | $ 9,603,244 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 96,800 | $ 134,500 | $ 320,000 | $ 363,200 | |
CB&I [Member] | Chevron-Lummus Global CLG [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Equity method investment percentage | 50.00% | 50.00% |
SEGMENT INFORMATION - Total Re
SEGMENT INFORMATION - Total Revenue and Income from Operations by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 3,321,682 | $ 3,380,733 | $ 9,654,540 | $ 9,603,244 | ||
(Loss) Income From Operations | (889,962) | 286,062 | (359,057) | 708,756 | ||
Assets | 9,909,303 | 9,909,303 | $ 9,381,031 | |||
Engineering & Construction [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 1,946,426 | 2,022,296 | 5,681,134 | 5,648,375 | ||
(Loss) Income From Operations | [1] | (1,007,354) | 155,096 | (694,469) | 372,380 | |
Assets | 5,036,096 | 5,036,096 | 4,555,703 | |||
Fabrication Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 640,201 | 686,507 | 1,889,340 | 2,052,713 | ||
(Loss) Income From Operations | 61,408 | 67,943 | 169,744 | 193,125 | ||
Assets | 2,281,639 | 2,281,639 | 2,229,346 | |||
Technology [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 118,269 | 89,918 | 310,605 | 294,878 | ||
(Loss) Income From Operations | 31,911 | 38,560 | 116,676 | 110,471 | ||
Assets | 835,786 | 835,786 | 837,445 | |||
Capital Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 616,786 | 582,012 | 1,773,461 | 1,607,278 | ||
(Loss) Income From Operations | 24,073 | 29,026 | 48,992 | 54,947 | ||
Assets | 1,755,782 | 1,755,782 | $ 1,758,537 | |||
Total operating groups [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
(Loss) Income From Operations | (889,962) | 290,625 | (359,057) | 730,923 | ||
Integration related costs [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
(Loss) Income From Operations | $ 0 | $ (4,563) | $ 0 | $ (22,167) | ||
[1] | As discussed further in Note 4, due to the Agreement to sell our Nuclear Operations, during the three months ended September 30, 2015, we recorded a non-cash pre-tax charge of approximately $1,160,500 within our Engineering & Construction operating group. |