DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 15, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 105,274,916 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 2,667,733 | $ 3,125,745 |
Cost of revenue | 2,380,128 | 2,755,574 |
Gross profit | 287,605 | 370,171 |
Selling and administrative expense | 92,597 | 109,101 |
Intangibles amortization | 11,277 | 15,652 |
Equity earnings | (3,990) | (4,202) |
Other operating (income) expense, net | (219) | 2,822 |
Income from operations | 187,940 | 246,798 |
Interest expense | (25,898) | (22,286) |
Interest income | 2,489 | 2,048 |
Income before taxes | 164,531 | 226,560 |
Income tax expense | (44,569) | (69,811) |
Net income | 119,962 | 156,749 |
Less: Net income attributable to noncontrolling interests | (13,037) | (24,521) |
Net income attributable to CB&I | $ 106,925 | $ 132,228 |
Net income attributable to CB&I per share: | ||
Basic (in dollars per share) | $ 1.02 | $ 1.22 |
Diluted (in dollars per share) | $ 1.01 | $ 1.21 |
Weighted average shares outstanding: | ||
Basic (in shares) | 104,803 | 108,197 |
Diluted (in shares) | 105,785 | 109,261 |
Cash dividends on shares: | ||
Amount | $ 7,359 | $ 7,597 |
Per share (in dollars per share) | $ 0.07 | $ 0.07 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 119,962 | $ 156,749 |
Other comprehensive income (loss), net of tax: | ||
Change in cumulative translation adjustment | 22,692 | (60,434) |
Change in unrealized fair value of cash flow hedges | 1,303 | (724) |
Change in unrecognized prior service pension credits/costs | 27 | (536) |
Change in unrecognized actuarial pension gains/losses | (2,153) | 14,618 |
Comprehensive income | 141,831 | 109,673 |
Net income attributable to noncontrolling interests | (13,037) | (24,521) |
Change in cumulative translation adjustment attributable to noncontrolling interests | (1,257) | 1,338 |
Comprehensive income attributable to CB&I | $ 127,537 | $ 86,490 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and cash equivalents ($490,374 and $410,989 related to variable interest entities (VIEs)) | $ 641,485 | $ 550,221 | |
Accounts receivable, net ($314,349 and $334,232 related to VIEs) | 1,388,424 | 1,331,217 | |
Inventory | 262,181 | 289,658 | |
Costs and estimated earnings in excess of billings ($77,529 and $28,130 related to VIEs) | 848,608 | 688,314 | |
Other current assets ($419,727 and $372,523 related to VIEs) | 547,332 | 507,889 | |
Total current assets | 3,688,030 | 3,367,299 | |
Equity investments | 137,895 | 136,845 | |
Property and equipment, net ($18,550 and $19,040 related to VIEs) | 593,064 | 604,043 | |
Goodwill | [1] | 3,718,949 | 3,711,506 |
Other intangibles, net | 400,902 | 410,949 | |
Deferred income taxes | 603,791 | 633,627 | |
Other non-current assets | 338,072 | 327,791 | |
Total assets | 9,480,703 | 9,192,060 | |
Liabilities | |||
Revolving facility and other short-term borrowings | 570,300 | 653,000 | |
Current maturities of long-term debt, net | 410,371 | 147,871 | |
Accounts payable ($350,384 and $405,853 related to VIEs) | 1,074,324 | 1,162,077 | |
Billings in excess of costs and estimated earnings ($1,013,196 and $846,180 related to VIEs) | 2,152,766 | 1,934,111 | |
Other current liabilities | 1,106,649 | 959,889 | |
Total current liabilities | 5,314,410 | 4,856,948 | |
Long-term debt, net | 1,492,365 | 1,791,832 | |
Deferred income taxes | 14,777 | 10,239 | |
Other non-current liabilities | 373,817 | 369,451 | |
Total liabilities | 7,195,369 | 7,028,470 | |
Shareholders’ Equity | |||
Common stock, Euro .01 par value; shares authorized: 250,000; shares issued: 108,857 and 108,857; shares outstanding: 105,124 and 104,427 | 1,288 | 1,288 | |
Additional paid-in capital | 770,856 | 800,641 | |
Retained earnings | 1,812,074 | 1,712,508 | |
Treasury stock, at cost: 3,733 and 4,430 shares | (171,349) | (206,407) | |
Accumulated other comprehensive loss | (273,428) | (294,040) | |
Total CB&I shareholders’ equity | 2,139,441 | 2,013,990 | |
Noncontrolling interests | 145,893 | 149,600 | |
Total shareholders’ equity | 2,285,334 | 2,163,590 | |
Total liabilities and shareholders’ equity | $ 9,480,703 | $ 9,192,060 | |
[1] | 1) At March 31, 2016, we had $453,100 of accumulated impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations. |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Mar. 31, 2016USD ($)shares | Mar. 31, 2016€ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015€ / shares |
Cash and cash equivalents related to VIEs | $ 641,485 | $ 550,221 | ||
Accounts receivable, net related to VIEs | 1,388,424 | 1,331,217 | ||
Costs and estimated earnings in excess of billings related to VIEs | 848,608 | 688,314 | ||
Other current assets related to VIEs | 547,332 | 507,889 | ||
Property and equipment, net related to VIEs | 593,064 | 604,043 | ||
Accounts payable related to VIEs | 1,074,324 | 1,162,077 | ||
Billings in excess of costs and estimated earnings related to VIEs | $ 2,152,766 | $ 1,934,111 | ||
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 | 108,857,000 | ||
Common stock, shares outstanding | shares | 105,124,000 | 104,427,000 | ||
Treasury stock, shares | shares | 3,733,000 | 4,430,000 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Cash and cash equivalents related to VIEs | $ 490,374 | $ 410,989 | ||
Accounts receivable, net related to VIEs | 314,349 | 334,232 | ||
Costs and estimated earnings in excess of billings related to VIEs | 77,529 | 28,130 | ||
Other current assets related to VIEs | 419,727 | 372,523 | ||
Property and equipment, net related to VIEs | 18,550 | 19,040 | ||
Accounts payable related to VIEs | 350,384 | 405,853 | ||
Billings in excess of costs and estimated earnings related to VIEs | $ 1,013,196 | $ 846,180 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 119,962 | $ 156,749 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 31,801 | 44,309 |
Deferred income taxes | 30,457 | 51,063 |
Stock-based compensation expense | 14,532 | 31,193 |
Other operating (income) expense, net | (219) | 2,822 |
Unrealized loss on foreign currency hedges | 1,578 | 5,103 |
Excess tax benefits from stock-based compensation | (34) | (202) |
Changes in operating assets and liabilities: | ||
Increase in receivables, net | (57,207) | (41,175) |
Change in contracts in progress, net | 58,361 | (330,345) |
Decrease in inventory | 27,477 | 2,803 |
Decrease in accounts payable | (87,753) | (230,152) |
Increase in other current and non-current assets | (13,305) | (4,382) |
Increase (decrease) in other current and non-current liabilities | 8,944 | (18,090) |
Decrease in equity investments | 2,158 | 12,605 |
Change in other, net | 5,098 | 27,828 |
Net cash provided by (used in) operating activities | 141,850 | (289,871) |
Cash Flows from Investing Activities | ||
Capital expenditures | (11,180) | (8,978) |
Advances with partners of proportionately consolidated ventures, net | (25,787) | (27,800) |
Proceeds from sale of property and equipment | 4,331 | 1,413 |
Other, net | (14,863) | (21,514) |
Net cash used in investing activities | (47,499) | (56,879) |
Cash Flows from Financing Activities | ||
Revolving facility and other short-term (repayments) borrowings, net | (82,700) | 465,999 |
Financing Advances With Affiliates | 137,219 | (9,700) |
Repayments on long-term debt | (37,500) | (26,481) |
Excess tax benefits from stock-based compensation | 34 | 202 |
Purchase of treasury stock | (7,562) | (13,461) |
Issuance of stock | 4,477 | 5,074 |
Dividends paid | (7,359) | (7,597) |
Distributions to noncontrolling interests | (18,001) | (10,627) |
Net cash (used in) provided by financing activities | (11,392) | 403,409 |
Effect of exchange rate changes on cash and cash equivalents | 8,305 | (60,965) |
Increase (decrease) in cash and cash equivalents | 91,264 | (4,306) |
Cash and cash equivalents, beginning of the year | 550,221 | 351,323 |
Cash and cash equivalents, end of the period | $ 641,485 | $ 347,017 |
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 Interests [Member] |
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 income | 156,749 | 132,228 | 24,521 | ||||
Change in cumulative translation adjustment, net | (60,434) | (59,096) | (1,338) | ||||
Change in unrealized fair value of cash flow hedges, net | (724) | (724) | |||||
Change in unrecognized prior service pension credits/costs, net | (536) | (536) | |||||
Change in unrecognized actuarial pension gains/losses, net | 14,618 | 14,618 | |||||
Distributions to noncontrolling interests | (10,627) | (10,627) | |||||
Dividends paid ($0.07 per share) | (7,597) | (7,597) | |||||
Stock-based compensation expense | 31,193 | 31,193 | |||||
Issuance to treasury stock (in shares) | 200 | ||||||
Issuance to treasury stock | 0 | $ 2 | 8,164 | $ (8,166) | |||
Purchase of treasury stock (in shares) | 330 | 330 | |||||
Purchase of treasury stock | (13,461) | $ (13,461) | |||||
Issuance of stock (in shares) | 1,075 | 1,075 | |||||
Issuance of stock | 522 | (43,064) | $ 43,586 | ||||
Ending Balance (in shares) at Mar. 31, 2015 | 108,551 | 56 | |||||
Ending Balance at Mar. 31, 2015 | 2,986,006 | $ 1,285 | 773,157 | 2,371,401 | $ (2,469) | (308,135) | 150,767 |
Beginning Balance (in shares) at Dec. 31, 2015 | 104,427 | 4,430 | |||||
Beginning Balance at Dec. 31, 2015 | 2,163,590 | $ 1,288 | 800,641 | 1,712,508 | $ (206,407) | (294,040) | 149,600 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 119,962 | 106,925 | 13,037 | ||||
Change in cumulative translation adjustment, net | 22,692 | 21,435 | 1,257 | ||||
Change in unrealized fair value of cash flow hedges, net | 1,303 | 1,303 | |||||
Change in unrecognized prior service pension credits/costs, net | 27 | 27 | |||||
Change in unrecognized actuarial pension gains/losses, net | (2,153) | (2,153) | |||||
Distributions to noncontrolling interests | (18,001) | (18,001) | |||||
Dividends paid ($0.07 per share) | (7,359) | (7,359) | |||||
Stock-based compensation expense | 14,532 | 14,532 | |||||
Purchase of treasury stock (in shares) | 226 | 226 | |||||
Purchase of treasury stock | (7,562) | $ (7,562) | |||||
Issuance of stock (in shares) | 923 | 923 | |||||
Issuance of stock | (1,697) | (44,317) | $ 42,620 | ||||
Ending Balance (in shares) at Mar. 31, 2016 | 105,124 | 3,733 | |||||
Ending Balance at Mar. 31, 2016 | $ 2,285,334 | $ 1,288 | $ 770,856 | $ 1,812,074 | $ (171,349) | $ (273,428) | $ 145,893 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.07 | $ 0.07 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2016 | |
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: (1) Engineering & Construction; (2) Fabrication Services; (3) Technology; and (4) Capital Services. See Note 15 for a discussion of our operating groups and related financial information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 months ended March 31, 2016 and 2015 , our financial position as of March 31, 2016 and our cash flows for the three months ended March 31, 2016 and 2015 . The December 31, 2015 Condensed Consolidated Balance Sheet was derived from our December 31, 2015 audited Consolidated Balance Sheet, adjusted to conform to our current year presentation. 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 2015 Annual Report on Form 10-K (“ 2015 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 months ended March 31, 2016 and 2015, 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 14 for additional discussion of our recorded unapproved change orders, claims and incentives. 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 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 March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Asset Liability Asset Liability Costs and estimated earnings on contracts in progress $ 20,986,898 $ 16,042,759 $ 14,853,683 $ 21,942,765 Billings on contracts in progress (20,138,290 ) (18,195,525 ) (14,165,369 ) (23,876,876 ) Contracts in Progress, net $ 848,608 $ (2,152,766 ) $ 688,314 $ (1,934,111 ) Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At March 31, 2016 and December 31, 2015 , accounts receivable included contract retentions of approximately $59,000 and $62,900 , respectively. Contract retentions due beyond one year were not material at March 31, 2016 or December 31, 2015 . 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 $87,900 and $71,600 at March 31, 2016 and December 31, 2015 , 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 March 31, 2016 and December 31, 2015 , 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 three months ended March 31, 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. 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 or when other actions require an impairment assessment (such as a change in reporting units). 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 discussion of our goodwill. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 4 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 discussion of our intangible assets. 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 based 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 discussion of 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 months ended March 31, 2016 and 2015 . 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 March 31, 2016 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $347,188 of our outstanding $412,500 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 March 31, 2016 . 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 9 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 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 the Balance Sheet and Condensed Consolidated Statement of Operations (“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. The new standard prescribes a five-step revenue recognition model that focuses on transfer of control and entitlement to consideration in determining the amount of revenue to be recognized. The guidance also significantly expands qualitative and quantitative disclosure requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for us in the first quarter 2018, although early adoption is permitted in the first quarter 2017. We will adopt the standard, including any updates to the standard, in the first quarter 2018. Our adoption 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 potential impact of the new standard on our Financial Statements. In February 2015, the FASB issued ASU 2015-02, which amends existing consolidation requirements in ASC 810 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 adopted the standard upon its effective date in the first quarter 2016. Our adoption did not 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 requires presentation of debt issuance costs as a direct deduction from the related debt liability rather than as an asset, as presented under previous guidance. We adopted the standard upon its effective date in the first quarter 2016. Our adoption resulted in the reclassification of deferred debt issuance costs from other current assets and other non-current assets of approximately $2,129 and $8,168 , respectively, to current maturities of long term debt and long term debt, respectively, in our December 31, 2015 Balance Sheet. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of a right-of-use asset and a lease liability for most lease arrangements with a term greater than one year, and increases qualitative and quantitative disclosures regarding leasing transactions. The standard is effective for us in the first quarter 2019, although early adoption is permitted. Transition requires application of the new guidance at the beginning of the earliest comparative balance sheet period presented utilizing a modified retrospective approach. We are assessing the potential impact of the new standard on our Financial Statements. In March 2016, the FASB issued ASU 2016-09, which modifies the accounting for excess tax benefits and tax deficiencies associated with share-based payments, and amends the associated cash flow presentation. ASU 2016-09 eliminates the requirement to recognize excess tax benefits in additional paid-in capital (“APIC”), and the requirement to evaluate tax deficiencies for APIC or income tax expense classification, and provides for these benefits or deficiencies to be recorded as an income tax expense or benefit in the income statement. Additionally, tax benefits of dividends on share-based payment awards will also be reflected as an income tax expense or benefit in the income statement. With these changes, tax-related cash flows resulting from share-based payments will be classified as operating activities as opposed to financing, as currently presented. The standard is effective for us in the first quarter 2017, although early adoption is permitted. We are assessing the potential impact of the new standard on our Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net income attributable to CB&I $ 106,925 $ 132,228 Weighted average shares outstanding—basic 104,803 108,197 Effect of restricted shares/performance based shares/stock options (1) 969 1,054 Effect of directors’ deferred-fee shares 13 10 Weighted average shares outstanding—diluted 105,785 109,261 Net income attributable to CB&I per share: Basic $ 1.02 $ 1.22 Diluted $ 1.01 $ 1.21 (1) Antidilutive shares excluded from diluted EPS were not material for the three months ended March 31, 2016 or 2015 . |
DISPOSITION OF NUCLEAR OPERATIO
DISPOSITION OF NUCLEAR OPERATIONS | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITION OF NUCLEAR OPERATIONS | DISPOSITION OF NUCLEAR OPERATIONS As more fully described in our 2015 Annual Report, on December 31, 2015 we completed the sale of our nuclear power construction business (the “Nuclear Operations”), previously included within our Engineering & Construction operating group, to Westinghouse Electric Company LLC (“WEC”) for transaction consideration of approximately $161,000 , which will be received upon WEC’s substantial completion of certain acquired contracts. The present value of the estimated consideration was approximately $145,000 at March 31, 2016, and is recorded within other non-current assets on our Balance Sheet. The imputed interest on the estimated consideration is included within interest income on our Statement of Operations. Supplemental unaudited revenue and pre-tax income of our former Nuclear Operations is as follows: Three Months Ended March 31, 2015 Revenue $ 488,259 Pre-tax income $ 45,600 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY The components of inventory at March 31, 2016 and December 31, 2015 were as follows: March 31, December 31, Raw materials $ 116,723 $ 142,170 Work in process 57,446 58,884 Finished goods 88,012 88,604 Total $ 262,181 $ 289,658 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill —At March 31, 2016 and December 31, 2015 , our goodwill balances were $3,718,949 and $3,711,506 , 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 three months ended March 31, 2016 was as follows: Total (1) Balance at December 31, 2015 $ 3,711,506 Foreign currency translation and other 8,284 Amortization of tax goodwill in excess of book goodwill (841 ) Balance at March 31, 2016 $ 3,718,949 (1) At March 31, 2016, we had $453,100 of accumulated impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations. At March 31, 2016 and December 31, 2015, we had the following seven reporting units within our four operating groups: • Engineering & Construction —Our Engineering & Construction operating group represents a reporting unit. • Fabrication Services —Our Fabrication Services operating group includes three reporting units: Steel Plate Structures, Fabrication & Manufacturing and Engineered Products. • Technology —Our Technology operating group represents a reporting unit. • Capital Services —Our Capital Services operating group includes two reporting units: Facilities & Plant Services and Federal Services. During the three months ended December 31, 2015 , we performed a quantitative assessment of goodwill for each of the aforementioned reporting units. Based upon these quantitative assessments, the fair value of each of our reporting units exceeded their respective net book values, and accordingly, no impairment charge was necessary as a result of our impairment assessments. During the three months ended March 31, 2016 , no 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 Intangible Assets —The following table provides a summary of our acquired finite-lived intangible assets at March 31, 2016 and December 31, 2015 , including weighted-average useful lives for each major intangible asset class and in total: March 31, 2016 December 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Backlog and customer relationships (1) 18 Years $ 261,586 $ (52,173 ) $ 281,072 $ (66,666 ) Process technologies 15 Years 273,610 (121,483 ) 271,028 (115,608 ) Tradenames 10 Years 64,925 (25,563 ) 64,790 (23,667 ) Total (2) 16 Years $ 600,121 $ (199,219 ) $ 616,890 $ (205,941 ) (1) Backlog and customer relationships intangibles totaling approximately $19,500 became fully amortized during the three months ended March 31, 2016 and were therefore removed from the March 31, 2016 gross carrying and accumulated amortization balances above. (2) The remaining decrease in other intangibles, net during the three months ended March 31, 2016 primarily related to amortization expense of $11,277 . |
PARTNERING ARRANGEMENTS
PARTNERING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
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, when we meet the applicable accounting criteria to do so, 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 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 share of our proportionately consolidated VIEs: March 31, 2016 December 31, 2015 CB&I/Zachry Current assets (1) $ 346,935 $ 298,916 Non-current assets 5,103 6,689 Total assets $ 352,038 $ 305,605 Current liabilities (1) $ 497,460 $ 454,943 CB&I/Zachry/Chiyoda Current assets (1) $ 97,265 $ 84,696 Current liabilities (1) $ 95,579 $ 86,124 CB&I/Chiyoda Current assets (1) $ 471,602 $ 424,781 Current liabilities (1) $ 433,029 $ 433,526 (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 March 31, 2016 and December 31, 2015 , other current assets on the Balance Sheet included approximately $350,800 and $325,000 , respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $356,800 and $334,900 , respectively, related to advances to CB&I from the ventures. Equity Method Ventures —The following is a summary description of our significant 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. • 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 generation system that recovers essentially all the carbon dioxide produced during combustion. NetPower is building a first-of-its-kind demonstration plant which is being funded by contributions and services from the venture partners and other parties. We have determined the venture to be a VIE; however, we do not effectively control NetPower and therefore do not consolidate it. Our cash commitment for NetPower totals $47,300 and at March 31, 2016 , we had made cumulative investments of approximately $19,900 . • CB&I/CTCI— We have a venture with CTCI Corporation (“CTCI”) (CB&I— 50% / CTIC— 50% ) to perform EPC work for a liquids ethylene cracker and associated units in Sohar, Oman. We have determined the venture to be a VIE; however, we do not effectively control CB&I/CTCI and therefore do not consolidate it. Our proportionate share of the venture project value is approximately $1,400,000 . Our venture arrangement allows for excess working capital of the venture to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. At March 31, 2016 , other current liabilities included approximately $115,300 related to advances to CB&I from the venture. Consolidated Ventures— The following is a summary description of our 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. Our venture project value is approximately $5,500,000 . The following table presents summarized balance sheet information for our consolidated VIEs: March 31, December 31, CB&I/Kentz Current assets $ 218,156 $ 214,291 Current liabilities $ 267,654 $ 191,471 CB&I/AREVA Current assets $ 64,068 $ 24,269 Current liabilities $ 59,217 $ 65,674 All Other (1) Current assets $ 111,409 $ 112,532 Non-current assets 18,724 19,253 Total assets $ 130,133 $ 131,785 Current liabilities $ 23,264 $ 32,001 (1) Other ventures that we consolidate 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 complete their obligations to us, the venture, or ultimately, our customer. Differences in opinions or views among venture partners could also result in delayed decision-making or failure to agree on material issues, which could adversely affect the business and operations of the venture. In addition, agreement terms may subject us to joint and several liability for our venture partners, and the failure of our venture partners to perform their obligations could impose additional performance and financial obligations on us. The aforementioned factors could result in unanticipated costs to complete the projects, liquidated damages or contract disputes, including claims against our partners. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our outstanding debt at March 31, 2016 and December 31, 2015 was as follows: March 31, December 31, Current Revolving facility and other short-term borrowings $ 570,300 $ 653,000 Current maturities of long-term debt 412,500 150,000 Less: unamortized debt issuance costs (2,129 ) (2,129 ) Current maturities of long-term debt, net of unamortized debt issuance costs 410,371 147,871 Current debt, net of unamortized debt issuance costs $ 980,671 $ 800,871 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) $ 412,500 $ 450,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) 500,000 500,000 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%) 200,000 200,000 Less: unamortized debt issuance costs (7,635 ) (8,168 ) Less: current maturities of long-term debt (412,500 ) (150,000 ) Long-term debt, net of unamortized debt issuance costs $ 1,492,365 $ 1,791,832 Committed Facilities —We have a five -year, $1,350,000 , committed and unsecured revolving facility (the “Revolving Facility”) with Bank of America N.A. (“BofA”), as administrative agent, and BNP Paribas Securities Corp., BBVA Compass, Credit Agricole Corporate and Investment Bank (“Credit Agricole”) and TD Securities, each as syndication agents, which expires in October 2018. The Revolving Facility has a $270,000 financial letter of credit sublimit and certain financial and restrictive covenants, including a maximum leverage ratio of 3.25 , a minimum fixed charge coverage ratio of 1.75 , and a minimum net worth level calculated as $1,613,851 at March 31, 2016 . 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 ( 3.50% and 0.75% , respectively at March 31, 2016 ), or LIBOR plus an applicable floating margin ( 0.43% and 1.75% , respectively at March 31, 2016 ). At March 31, 2016 , we had $150,000 outstanding borrowings under the facility and $82,018 of outstanding letters of credit under the facility ( none of which were financial letters of credit), providing $1,117,982 of available capacity. During the three months ended March 31, 2016 , our weighted average interest rate on borrowings under the facility was approximately 2.2% , 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 supplements our Revolving Facility, has a $50,000 financial letter of credit sublimit 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 ( 3.50% and 0.75% , respectively at March 31, 2016 ), or LIBOR plus an applicable floating margin ( 0.43% and 1.75% , respectively at March 31, 2016 ). At March 31, 2016 , we had $57,300 of outstanding borrowings and $15,406 of outstanding letters of credit under the facility (including $3,141 of financial letters of credit), providing $727,294 of available capacity. During the three months ended March 31, 2016 , our weighted average interest rate on borrowings under the facility was approximately 4.3% , 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 $4,275,517 , of which $463,000 may be utilized for borrowings. At March 31, 2016 , we had $363,000 of outstanding borrowings and $1,633,092 of outstanding letters of credit under these facilities, providing $2,279,425 of available capacity, of which $100,000 may be utilized for borrowings. During the three months ended March 31, 2016 , our weighted average interest rate on borrowings under the facility was approximately 1.3% . Term Loans —At March 31, 2016 , we had $412,500 outstanding on a 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 ( 0.43% and 1.75% , respectively at March 31, 2016 ). However, we continue to utilize an interest rate swap to hedge against $347,188 of the outstanding $412,500 Term Loan, which resulted in a weighted average interest rate of approximately 2.3% during the three months ended March 31, 2016 , inclusive of the applicable floating margin. Future annual maturities for the Term Loan are $112,500 and $300,000 for the remainder of 2016 and 2017 , respectively. The Term Loan includes financial and restrictive covenants similar to those noted above for the Revolving Facility. At March 31, 2016 , we had a $500,000 outstanding five -year unsecured term loan (the “Second 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 three months ended March 31, 2016 , our weighted average interest rate on the Second Term was approximately 2.2% , 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 We have senior notes totaling $200,000 (the “Second Senior Notes”), with BofA 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. Compliance and Other —During the three months ended March 31, 2016 , maximum outstanding borrowings under our revolving credit and other facilities were approximately $1,258,000 . In addition to providing letters of credit, we also issue surety bonds in the ordinary course of business to support our contract performance. At March 31, 2016 , we had $725,403 of outstanding surety bonds. At March 31, 2016 , 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 three months ended March 31, 2016 and 2015 . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Derivatives Foreign Currency Exchange Rate Derivatives —At March 31, 2016 , the notional value of our outstanding forward contracts to hedge certain foreign exchange-related operating exposures was approximately $63,600 . These contracts vary in duration, maturing up to six 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 $347,188 of our outstanding $412,500 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 March 31, 2016 . 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 March 31, 2016 or December 31, 2015 . The following table presents the fair value of our foreign currency exchange rate derivatives and interest rate derivatives at March 31, 2016 and December 31, 2015 , respectively, by valuation hierarchy and balance sheet classification: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets (1) Other current assets $ — $ 2,125 $ — $ 2,125 $ — $ 3,344 $ — $ 3,344 Other non-current assets — 259 — 259 — 180 — 180 Total assets at fair value $ — $ 2,384 $ — $ 2,384 $ — $ 3,524 $ — $ 3,524 Derivative Liabilities Other current liabilities $ — $ (9,142 ) $ — $ (9,142 ) $ — $ (7,568 ) $ — $ (7,568 ) Other non-current liabilities — (318 ) — (318 ) — (607 ) — (607 ) Total liabilities at fair value $ — $ (9,460 ) $ — $ (9,460 ) $ — $ (8,175 ) $ — $ (8,175 ) (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 March 31, 2016 , the fair values of our Term Loan and Second Term Loan, based upon the current market rates for debt with similar credit risk and maturities, approximated their carrying values 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 $799,300 and $772,600 at March 31, 2016 and December 31, 2015 , respectively, based on current market rates for debt with similar credit risk and maturities. Our Second Senior Notes are categorized within level 2 of the valuation hierarchy and had a total fair value of approximately $206,800 and $203,500 at March 31, 2016 and December 31, 2015 , respectively, based on 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 March 31, 2016 and December 31, 2015 : Other Current and Non- Current Assets Other Current and Non- Current Liabilities March 31, December 31, March 31, December 31, Derivatives designated as cash flow hedges Interest rate $ 17 $ 471 $ (271 ) $ (192 ) Foreign currency 486 944 (1,735 ) (1,858 ) Fair value $ 503 $ 1,415 $ (2,006 ) $ (2,050 ) Derivatives not designated as cash flow hedges Foreign currency $ 1,881 $ 2,109 $ (7,454 ) $ (6,125 ) Fair value $ 1,881 $ 2,109 $ (7,454 ) $ (6,125 ) Total fair value $ 2,384 $ 3,524 $ (9,460 ) $ (8,175 ) 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 March 31, 2016 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 $ 17 $ — $ 17 $ — $ — $ 17 Foreign currency 2,367 — 2,367 (132 ) — 2,235 Total assets $ 2,384 $ — $ 2,384 $ (132 ) $ — $ 2,252 Derivative Liabilities Interest rate $ (271 ) $ — $ (271 ) $ — $ — $ (271 ) Foreign currency (9,189 ) — (9,189 ) 132 — (9,057 ) Total liabilities $ (9,460 ) $ — $ (9,460 ) $ 132 $ — $ (9,328 ) 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 months ended March 31, 2016 and 2015 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 March 31, 2016 2015 2016 2015 Designated as cash flow hedges Interest rate $ (713 ) $ (1,708 ) $ (181 ) $ (474 ) Foreign currency 1,476 (2,455 ) (1,062 ) (1,137 ) Total $ 763 $ (4,163 ) $ (1,243 ) $ (1,611 ) (1) Net unrealized losses totaling $86 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 months ended March 31, 2016 and 2015 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Three Months Ended March 31, 2016 2015 Derivatives not designated as cash flow hedges Foreign currency $ (4,229 ) $ (6,532 ) Total $ (4,229 ) $ (6,532 ) |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT BENEFITS | RETIREMENT BENEFITS Our 2015 Annual Report disclosed anticipated 2016 defined benefit pension and other postretirement plan contributions of approximately $16,900 and $2,400 , respectively. The following table provides updated contribution information for these plans at March 31, 2016 : Pension Plans Other Postretirement Plans Contributions made through March 31, 2016 $ 7,548 $ 514 Contributions expected for the remainder of 2016 9,645 1,824 Total contributions expected for 2016 $ 17,193 $ 2,338 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 months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Pension Plans Service cost $ 2,327 $ 2,712 Interest cost 5,918 5,858 Expected return on plan assets (6,796 ) (7,137 ) Amortization of prior service credits (154 ) (158 ) Recognized net actuarial losses 1,461 1,934 Net periodic benefit cost $ 2,756 $ 3,209 Other Postretirement Plans Service cost $ 176 $ 295 Interest cost 340 529 Recognized net actuarial gains (840 ) (150 ) Net periodic benefit (income) cost $ (324 ) $ 674 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
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. The customer for one of our large cost reimbursable projects has filed a request for arbitration with the International Chamber of Commerce, alleging cost overruns on the project. The customer has not provided evidence to substantiate its allegations and we believe all amounts incurred and billed on the project, including outstanding receivables of $195,000 as of March 31, 2016, are contractually due under the provisions of our contract and are recoverable. We do not believe a risk of material loss is probable related to this matter, and accordingly, no amounts have been accrued. 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 March 31, 2016 , 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 March 31, 2016 , 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 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 March 31, 2016 , we had approximately $7,100 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 2016 or 2017 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in AOCI, net of tax, by component, during the three months ended March 31, 2016 : Currency (1) Unrealized Defined Benefit Total Balance at December 31, 2015 $ (209,281 ) $ (967 ) $ (83,792 ) $ (294,040 ) OCI before reclassifications 21,435 449 (2,622 ) 19,262 Amounts reclassified from AOCI — 854 496 1,350 Net OCI 21,435 1,303 (2,126 ) 20,612 Balance at March 31, 2016 $ (187,846 ) $ 336 $ (85,918 ) $ (273,428 ) (1) During the three months ended March 31, 2016 , the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian 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 three months ended March 31, 2016 : AOCI Components Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 181 Foreign currency derivatives (cost of revenue) 1,062 Total before tax $ 1,243 Tax (389 ) Total net of tax $ 854 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits $ (154 ) Recognized net actuarial losses 621 Total before tax $ 467 Tax 29 Total net of tax $ 496 (1) See Note 9 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 10 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 | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED INCENTIVE PLANS | EQUITY-BASED INCENTIVE PLANS Under our equity-based incentive plans (our “Incentive Plans”), we can issue shares to employees and directors in the form of restricted stock units (“RSUs”), performance based shares (including those based upon financial or stock price performance) and stock options. Changes in common stock, additional paid-in capital and treasury stock during the three months ended March 31, 2016 and 2015 primarily relate to activity associated with our Incentive Plans and share repurchases. At March 31, 2016 and December 31, 2015 , and for the three months ended March 31, 2016 and 2015 , cash-settled equity-based awards, including RSUs and stock appreciation rights, were not material. During the three months ended March 31, 2016 , we had the following share grants associated with our Incentive Plans: Shares (1) Weighted Average Grant-Date Fair Value per Share RSUs 940 $ 33.56 Financial performance based shares 665 $ 33.56 Stock performance based shares 166 $ 37.41 Total 1,771 (1) No stock options were granted during the three months ended March 31, 2016 . During the three months ended March 31, 2016 , we had the following share issuances associated with our Incentive Plans and employee stock purchase plan (“ESPP”): Shares Financial performance based shares (issued upon vesting) 370 RSUs (issued upon vesting) 414 Stock options (issued upon exercise) 30 ESPP shares (issued upon sale) 109 Total shares issued 923 During the three months ended March 31, 2016 and 2015 , we recognized $14,500 and $31,963 , respectively, of stock-based compensation expense, primarily within selling and administrative expense. During the three months ended March 31, 2016 , we repurchased 226 shares for $7,562 (an average price of $33.46 ) for taxes withheld on taxable share distributions. |
UNAPPROVED CHANGE ORDERS, CLAIM
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES | 3 Months Ended |
Mar. 31, 2016 | |
Contractors [Abstract] | |
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES | UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES At March 31, 2016 and December 31, 2015 , we had unapproved change orders and claims included in project price totaling approximately $102,900 and $98,500 , respectively, for projects primarily within our Engineering & Construction and Fabrication Services operating groups. At March 31, 2016 and December 31, 2015 we also had incentives included in project price of approximately $96,200 and $99,300 , respectively, for projects in our Engineering & Construction, Fabrication Services and Capital Services operating groups. Of the aforementioned unapproved change orders, claims and incentives, approximately $169,300 had been recognized as revenue on a cumulative POC basis through March 31, 2016 . 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. See Note 11 for further discussion of outstanding receivables related to one of our large cost reimbursable projects. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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: Engineering & Construction; Fabrication Services; Technology; and Capital Services. 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 March 31, 2016 and 2015 , intersegment revenue totaled approximately $36,500 and $115,700 , respectively, and primarily related to services provided by our Fabrication Services and Capital Services operating groups to our Engineering & Construction operating group. The following table presents total revenue and income from operations by reportable segment for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Revenue Engineering & Construction $ 1,516,328 $ 1,818,586 Fabrication Services 517,576 637,809 Technology 64,562 99,361 Capital Services 569,267 569,989 Total revenue $ 2,667,733 $ 3,125,745 Income From Operations Engineering & Construction $ 111,920 $ 136,418 Fabrication Services 38,249 52,399 Technology 26,281 48,024 Capital Services 11,490 9,957 Total income from operations $ 187,940 $ 246,798 |
SIGNIFICANT ACCOUNTING POLICI24
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 months ended March 31, 2016 and 2015 , our financial position as of March 31, 2016 and our cash flows for the three months ended March 31, 2016 and 2015 . The December 31, 2015 Condensed Consolidated Balance Sheet was derived from our December 31, 2015 audited Consolidated Balance Sheet, adjusted to conform to our current year presentation. 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 2015 Annual Report on Form 10-K (“ 2015 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 months ended March 31, 2016 and 2015, 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 14 for additional discussion of our recorded unapproved change orders, claims and incentives. 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 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. Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At March 31, 2016 and December 31, 2015 , accounts receivable included contract retentions of approximately $59,000 and $62,900 , respectively. Contract retentions due beyond one year were not material at March 31, 2016 or December 31, 2015 . 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 $87,900 and $71,600 at March 31, 2016 and December 31, 2015 , 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 March 31, 2016 and December 31, 2015 , 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 three months ended March 31, 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. |
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 or when other actions require an impairment assessment (such as a change in reporting units). 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 discussion of our goodwill. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 4 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 discussion of our intangible assets |
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 based 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 discussion of 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 months ended March 31, 2016 and 2015 . |
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 March 31, 2016 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $347,188 of our outstanding $412,500 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 March 31, 2016 . 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 9 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 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 the Balance Sheet and Condensed Consolidated Statement of Operations (“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 | ew 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. The new standard prescribes a five-step revenue recognition model that focuses on transfer of control and entitlement to consideration in determining the amount of revenue to be recognized. The guidance also significantly expands qualitative and quantitative disclosure requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for us in the first quarter 2018, although early adoption is permitted in the first quarter 2017. We will adopt the standard, including any updates to the standard, in the first quarter 2018. Our adoption 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 potential impact of the new standard on our Financial Statements. In February 2015, the FASB issued ASU 2015-02, which amends existing consolidation requirements in ASC 810 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 adopted the standard upon its effective date in the first quarter 2016. Our adoption did not 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 requires presentation of debt issuance costs as a direct deduction from the related debt liability rather than as an asset, as presented under previous guidance. We adopted the standard upon its effective date in the first quarter 2016. Our adoption resulted in the reclassification of deferred debt issuance costs from other current assets and other non-current assets of approximately $2,129 and $8,168 , respectively, to current maturities of long term debt and long term debt, respectively, in our December 31, 2015 Balance Sheet. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of a right-of-use asset and a lease liability for most lease arrangements with a term greater than one year, and increases qualitative and quantitative disclosures regarding leasing transactions. The standard is effective for us in the first quarter 2019, although early adoption is permitted. Transition requires application of the new guidance at the beginning of the earliest comparative balance sheet period presented utilizing a modified retrospective approach. We are assessing the potential impact of the new standard on our Financial Statements. In March 2016, the FASB issued ASU 2016-09, which modifies the accounting for excess tax benefits and tax deficiencies associated with share-based payments, and amends the associated cash flow presentation. ASU 2016-09 eliminates the requirement to recognize excess tax benefits in additional paid-in capital (“APIC”), and the requirement to evaluate tax deficiencies for APIC or income tax expense classification, and provides for these benefits or deficiencies to be recorded as an income tax expense or benefit in the income statement. Additionally, tax benefits of dividends on share-based payment awards will also be reflected as an income tax expense or benefit in the income statement. With these changes, tax-related cash flows resulting from share-based payments will be classified as operating activities as opposed to financing, as currently presented. The standard is effective for us in the first quarter 2017, although early adoption is permitted. We are assessing the potential impact of the new standard on our Financial Statements. |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Asset Liability Asset Liability Costs and estimated earnings on contracts in progress $ 20,986,898 $ 16,042,759 $ 14,853,683 $ 21,942,765 Billings on contracts in progress (20,138,290 ) (18,195,525 ) (14,165,369 ) (23,876,876 ) Contracts in Progress, net $ 848,608 $ (2,152,766 ) $ 688,314 $ (1,934,111 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net income attributable to CB&I $ 106,925 $ 132,228 Weighted average shares outstanding—basic 104,803 108,197 Effect of restricted shares/performance based shares/stock options (1) 969 1,054 Effect of directors’ deferred-fee shares 13 10 Weighted average shares outstanding—diluted 105,785 109,261 Net income attributable to CB&I per share: Basic $ 1.02 $ 1.22 Diluted $ 1.01 $ 1.21 (1) Antidilutive shares excluded from diluted EPS were not material for the three months ended March 31, 2016 or 2015 . |
DISPOSITION OF NUCLEAR OPERAT27
DISPOSITION OF NUCLEAR OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Revenue and Pre-Tax Income of Nuclear Operations | Supplemental unaudited revenue and pre-tax income of our former Nuclear Operations is as follows: Three Months Ended March 31, 2015 Revenue $ 488,259 Pre-tax income $ 45,600 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory at March 31, 2016 and December 31, 2015 were as follows: March 31, December 31, Raw materials $ 116,723 $ 142,170 Work in process 57,446 58,884 Finished goods 88,012 88,604 Total $ 262,181 $ 289,658 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | he change in goodwill for the three months ended March 31, 2016 was as follows: Total (1) Balance at December 31, 2015 $ 3,711,506 Foreign currency translation and other 8,284 Amortization of tax goodwill in excess of book goodwill (841 ) Balance at March 31, 2016 $ 3,718,949 (1) At March 31, 2016, we had $453,100 of accumulated impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations. |
Summary of Acquired Finite-Lived Intangible Assets, Including Weighted-Average Useful Lives | he following table provides a summary of our acquired finite-lived intangible assets at March 31, 2016 and December 31, 2015 , including weighted-average useful lives for each major intangible asset class and in total: March 31, 2016 December 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Backlog and customer relationships (1) 18 Years $ 261,586 $ (52,173 ) $ 281,072 $ (66,666 ) Process technologies 15 Years 273,610 (121,483 ) 271,028 (115,608 ) Tradenames 10 Years 64,925 (25,563 ) 64,790 (23,667 ) Total (2) 16 Years $ 600,121 $ (199,219 ) $ 616,890 $ (205,941 ) (1) Backlog and customer relationships intangibles totaling approximately $19,500 became fully amortized during the three months ended March 31, 2016 and were therefore removed from the March 31, 2016 gross carrying and accumulated amortization balances above. (2) The remaining decrease in other intangibles, net during the three months ended March 31, 2016 primarily related to amortization expense of $11,277 . |
PARTNERING ARRANGEMENTS (Tables
PARTNERING ARRANGEMENTS (Tables) | 3 Months Ended | |
Mar. 31, 2016 | ||
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 share of our proportionately consolidated VIEs: March 31, 2016 December 31, 2015 CB&I/Zachry Current assets (1) $ 346,935 $ 298,916 Non-current assets 5,103 6,689 Total assets $ 352,038 $ 305,605 Current liabilities (1) $ 497,460 $ 454,943 CB&I/Zachry/Chiyoda Current assets (1) $ 97,265 $ 84,696 Current liabilities (1) $ 95,579 $ 86,124 CB&I/Chiyoda Current assets (1) $ 471,602 $ 424,781 Current liabilities (1) $ 433,029 $ 433,526 (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 March 31, 2016 and December 31, 2015 , other current assets on the Balance Sheet included approximately $350,800 and $325,000 , respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $356,800 and $334,900 , respectively, related to advances to CB&I from the ventures. | [1] |
Summarized Balance Sheet Information of Variable Interest Entities | The following table presents summarized balance sheet information for our consolidated VIEs: March 31, December 31, CB&I/Kentz Current assets $ 218,156 $ 214,291 Current liabilities $ 267,654 $ 191,471 CB&I/AREVA Current assets $ 64,068 $ 24,269 Current liabilities $ 59,217 $ 65,674 All Other (1) Current assets $ 111,409 $ 112,532 Non-current assets 18,724 19,253 Total assets $ 130,133 $ 131,785 Current liabilities $ 23,264 $ 32,001 (1) Other ventures that we consolidate are not individually material to our financial results and are therefore aggregated as “All Other”. | |
[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 March 31, 2016 and December 31, 2015, other current assets on the Balance Sheet included approximately $350,800 and $325,000, respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $356,800 and $334,900, respectively, related to advances to CB&I from the ventures. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Our outstanding debt at March 31, 2016 and December 31, 2015 was as follows: March 31, December 31, Current Revolving facility and other short-term borrowings $ 570,300 $ 653,000 Current maturities of long-term debt 412,500 150,000 Less: unamortized debt issuance costs (2,129 ) (2,129 ) Current maturities of long-term debt, net of unamortized debt issuance costs 410,371 147,871 Current debt, net of unamortized debt issuance costs $ 980,671 $ 800,871 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) $ 412,500 $ 450,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus an applicable floating margin) 500,000 500,000 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%) 200,000 200,000 Less: unamortized debt issuance costs (7,635 ) (8,168 ) Less: current maturities of long-term debt (412,500 ) (150,000 ) Long-term debt, net of unamortized debt issuance costs $ 1,492,365 $ 1,791,832 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , respectively, by valuation hierarchy and balance sheet classification: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets (1) Other current assets $ — $ 2,125 $ — $ 2,125 $ — $ 3,344 $ — $ 3,344 Other non-current assets — 259 — 259 — 180 — 180 Total assets at fair value $ — $ 2,384 $ — $ 2,384 $ — $ 3,524 $ — $ 3,524 Derivative Liabilities Other current liabilities $ — $ (9,142 ) $ — $ (9,142 ) $ — $ (7,568 ) $ — $ (7,568 ) Other non-current liabilities — (318 ) — (318 ) — (607 ) — (607 ) Total liabilities at fair value $ — $ (9,460 ) $ — $ (9,460 ) $ — $ (8,175 ) $ — $ (8,175 ) (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 March 31, 2016 and December 31, 2015 : Other Current and Non- Current Assets Other Current and Non- Current Liabilities March 31, December 31, March 31, December 31, Derivatives designated as cash flow hedges Interest rate $ 17 $ 471 $ (271 ) $ (192 ) Foreign currency 486 944 (1,735 ) (1,858 ) Fair value $ 503 $ 1,415 $ (2,006 ) $ (2,050 ) Derivatives not designated as cash flow hedges Foreign currency $ 1,881 $ 2,109 $ (7,454 ) $ (6,125 ) Fair value $ 1,881 $ 2,109 $ (7,454 ) $ (6,125 ) Total fair value $ 2,384 $ 3,524 $ (9,460 ) $ (8,175 ) |
Schedule Of Derivative Assets And Liabilities On Gross And Net Settlement Basis Table | The following table presents our derivative assets and liabilities at March 31, 2016 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 $ 17 $ — $ 17 $ — $ — $ 17 Foreign currency 2,367 — 2,367 (132 ) — 2,235 Total assets $ 2,384 $ — $ 2,384 $ (132 ) $ — $ 2,252 Derivative Liabilities Interest rate $ (271 ) $ — $ (271 ) $ — $ — $ (271 ) Foreign currency (9,189 ) — (9,189 ) 132 — (9,057 ) Total liabilities $ (9,460 ) $ — $ (9,460 ) $ 132 $ — $ (9,328 ) |
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 months ended March 31, 2016 and 2015 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 March 31, 2016 2015 2016 2015 Designated as cash flow hedges Interest rate $ (713 ) $ (1,708 ) $ (181 ) $ (474 ) Foreign currency 1,476 (2,455 ) (1,062 ) (1,137 ) Total $ 763 $ (4,163 ) $ (1,243 ) $ (1,611 ) (1) Net unrealized losses totaling $86 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 months ended March 31, 2016 and 2015 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Three Months Ended March 31, 2016 2015 Derivatives not designated as cash flow hedges Foreign currency $ (4,229 ) $ (6,532 ) Total $ (4,229 ) $ (6,532 ) |
RETIREMENT BENEFITS (Tables)
RETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 : Pension Plans Other Postretirement Plans Contributions made through March 31, 2016 $ 7,548 $ 514 Contributions expected for the remainder of 2016 9,645 1,824 Total contributions expected for 2016 $ 17,193 $ 2,338 |
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 months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Pension Plans Service cost $ 2,327 $ 2,712 Interest cost 5,918 5,858 Expected return on plan assets (6,796 ) (7,137 ) Amortization of prior service credits (154 ) (158 ) Recognized net actuarial losses 1,461 1,934 Net periodic benefit cost $ 2,756 $ 3,209 Other Postretirement Plans Service cost $ 176 $ 295 Interest cost 340 529 Recognized net actuarial gains (840 ) (150 ) Net periodic benefit (income) cost $ (324 ) $ 674 |
ACCUMULATED OTHER COMPREHENSI34
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Changes in AOCI Balances by Component | The following table presents changes in AOCI, net of tax, by component, during the three months ended March 31, 2016 : Currency (1) Unrealized Defined Benefit Total Balance at December 31, 2015 $ (209,281 ) $ (967 ) $ (83,792 ) $ (294,040 ) OCI before reclassifications 21,435 449 (2,622 ) 19,262 Amounts reclassified from AOCI — 854 496 1,350 Net OCI 21,435 1,303 (2,126 ) 20,612 Balance at March 31, 2016 $ (187,846 ) $ 336 $ (85,918 ) $ (273,428 ) (1) During the three months ended March 31, 2016 , the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian 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 three months ended March 31, 2016 : AOCI Components Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 181 Foreign currency derivatives (cost of revenue) 1,062 Total before tax $ 1,243 Tax (389 ) Total net of tax $ 854 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits $ (154 ) Recognized net actuarial losses 621 Total before tax $ 467 Tax 29 Total net of tax $ 496 (1) See Note 9 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 10 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) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Granted Shares Associated with Equity-Based Incentive Plans | During the three months ended March 31, 2016 , we had the following share grants associated with our Incentive Plans: Shares (1) Weighted Average Grant-Date Fair Value per Share RSUs 940 $ 33.56 Financial performance based shares 665 $ 33.56 Stock performance based shares 166 $ 37.41 Total 1,771 (1) No stock options were granted during the three months ended March 31, 2016 . |
Stock-Based Incentive Plans and Employee Stock Purchase Plan | During the three months ended March 31, 2016 , we had the following share issuances associated with our Incentive Plans and employee stock purchase plan (“ESPP”): Shares Financial performance based shares (issued upon vesting) 370 RSUs (issued upon vesting) 414 Stock options (issued upon exercise) 30 ESPP shares (issued upon sale) 109 Total shares issued 923 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Total Revenue, Income, and Assets from Operations by Reportable Segments | The following table presents total revenue and income from operations by reportable segment for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Revenue Engineering & Construction $ 1,516,328 $ 1,818,586 Fabrication Services 517,576 637,809 Technology 64,562 99,361 Capital Services 569,267 569,989 Total revenue $ 2,667,733 $ 3,125,745 Income From Operations Engineering & Construction $ 111,920 $ 136,418 Fabrication Services 38,249 52,399 Technology 26,281 48,024 Capital Services 11,490 9,957 Total income from operations $ 187,940 $ 246,798 |
ORGANIZATION AND NATURE OF OP37
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Year founded | 1,889 |
Number of operating segments | 4 |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES - Contracts In Progress Table (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Contracts In Progress [Line Items] | ||
Contracts in Progress, net, Liability | $ (2,152,766) | $ (1,934,111) |
Assets [Member] | ||
Contracts In Progress [Line Items] | ||
Costs and estimated earnings on contracts in progress | 20,986,898 | 14,853,683 |
Billings on contracts in progress | (20,138,290) | (14,165,369) |
Liability [Member] | ||
Contracts In Progress [Line Items] | ||
Costs and estimated earnings on contracts in progress | 16,042,759 | 21,942,765 |
Billings on contracts in progress | (18,195,525) | (23,876,876) |
Costs and Estimated Earnings in Excess of Billings [Member] | ||
Contracts In Progress [Line Items] | ||
Contracts in Progress, net, Asset | 848,608 | 688,314 |
Billings in Excess of Costs and Estimated Earnings [Member] | ||
Contracts In Progress [Line Items] | ||
Contracts in Progress, net, Liability | $ (2,152,766) | $ (1,934,111) |
SIGNIFICANT ACCOUNTING POLICI39
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||
Gain due to joint venture | $ 7,500 | ||
Foreign exchange loss | $ 11,000 | ||
Deferred finance costs, current | 2,129 | $ 2,129 | |
Deferred finance costs, noncurrent | $ 7,635 | 8,168 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived identifiable intangible assets, estimated useful lives, (in years) | 4 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 | $ 59,000 | 62,900 | |
Costs and Estimated Earnings in Excess of Billings [Member] | |||
Significant Accounting Policies [Line Items] | |||
Unbilled receivables of service contracts | 87,900 | 71,600 | |
Term Loan One [Member] | Term Loan [Member] | |||
Significant Accounting Policies [Line Items] | |||
Unsecured term loan remaining | 412,500 | $ 450,000 | |
Term Loan One [Member] | Term Loan [Member] | Interest rate [Member] | |||
Significant Accounting Policies [Line Items] | |||
Hedge against interest rate variability | $ 347,188 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share [Abstract] | |||
Net income attributable to CB&I | $ 106,925 | $ 132,228 | |
Weighted average shares outstanding—basic (in shares) | 104,803 | 108,197 | |
Effect of restricted shares/performance based shares/stock options (in shares) | [1] | 969 | 1,054 |
Effect of directors' deferred-fee shares (in shares) | 13 | 10 | |
Weighted average shares outstanding—diluted (in shares) | 105,785 | 109,261 | |
Net income attributable to CB&I per share: | |||
Basic (in dollars per share) | $ 1.02 | $ 1.22 | |
Diluted (in dollars per share) | $ 1.01 | $ 1.21 | |
[1] | Antidilutive shares excluded from diluted EPS were not material for the three months ended March 31, 2016 or 2015. |
DISPOSITION OF NUCLEAR OPERAT41
DISPOSITION OF NUCLEAR OPERATIONS - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Estimated transaction consideration | $ 161,000 | |
Disposal Group Consideration, Present Value, Gross | $ 145,000 |
DISPOSITION OF NUCLEAR OPERAT42
DISPOSITION OF NUCLEAR OPERATIONS - Revenue and Pre-Tax Income of Nuclear Operations (Details) - Nuclear Operations [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |
Revenue | $ 488,259 |
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 | $ 45,600 |
INVENTORY - Components of Inve
INVENTORY - Components of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 116,723 | $ 142,170 |
Work in process | 57,446 | 58,884 |
Finished goods | 88,012 | 88,604 |
Total | $ 262,181 | $ 289,658 |
GOODWILL AND OTHER INTANGIBLE44
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)segmentreporting_unit | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Goodwill [Line Items] | ||||
Goodwill impairment | $ | $ 453,100 | |||
Number of Reporting Units | 7 | |||
Number of Operating Segments | segment | 4 | |||
Goodwill | $ | [1] | $ 3,718,949 | $ 3,711,506 | |
Fabrication Services [Member] | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | 3 | |||
Capital Services [Member] | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | 2 | |||
[1] | 1) At March 31, 2016, we had $453,100 of accumulated impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations. |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLES - Change in Goodwill (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | [1] | |
Goodwill [Roll Forward] | ||
Balance at December 31, 2015 | $ 3,711,506 | |
Foreign currency translation and other | 8,284 | |
Amortization of tax goodwill in excess of book goodwill | (841) | |
Balance at March 31, 2016 | $ 3,718,949 | |
[1] | 1) At March 31, 2016, we had $453,100 of accumulated impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations. |
GOODWILL AND OTHER INTANGIBLE46
GOODWILL AND OTHER INTANGIBLES - Acquired Finite-Lived Intangible Asset Balances Including Weighted-Average Useful Lives (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Life | [1] | 16 years | ||
Gross Carrying Amount | [1] | $ 600,121 | $ 616,890 | |
Accumulated Amortization | [1] | (199,219) | (205,941) | |
Amortization expense | $ 11,277 | $ 15,652 | ||
Backlog and customer relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Life | [2] | 18 years | ||
Gross Carrying Amount | [2] | $ 261,586 | 281,072 | |
Accumulated Amortization | [2] | (52,173) | (66,666) | |
Backlog and customer relationships intangibles | $ 19,500 | |||
Process technologies [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Life | 15 years | |||
Gross Carrying Amount | $ 273,610 | 271,028 | ||
Accumulated Amortization | $ (121,483) | (115,608) | ||
Tradenames [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Life | 10 years | |||
Gross Carrying Amount | $ 64,925 | 64,790 | ||
Accumulated Amortization | $ (25,563) | $ (23,667) | ||
[1] | he remaining decrease in other intangibles, net during the three months ended March 31, 2016 primarily related to amortization expense of $11,277. | |||
[2] | acklog and customer relationships intangibles totaling approximately $19,500 became fully amortized during the three months ended March 31, 2016 and were therefore removed from the March 31, 2016 gross carrying and accumulated amortization balances above. |
PARTNERING ARRANGEMENTS - Addi
PARTNERING ARRANGEMENTS - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Train | Dec. 31, 2015USD ($) | |
Schedule of Investments [Line Items] | ||
Advances to ventures | $ 356,800 | $ 334,900 |
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] | ||
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% | |
Zachry [Member] | Chicago Bridge And Iron Zachary Unconsolidated Venture [Member] | ||
Schedule of Investments [Line Items] | ||
Proportionately consolidates ventures percentage | 50.00% | |
Zachry [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% | |
CTCI Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Joint venture contract value | $ 1,400,000 | |
Advances to ventures | $ 115,300 | |
Equity method investment 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 | $ 19,900 | |
CB&I [Member] | CTCI Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Equity method investment percentage | 50.00% | |
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 | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Advances from ventures | $ 350,800 | $ 325,000 | |
Advances to ventures | 356,800 | 334,900 | |
CB&I/Zachary [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 352,038 | 305,605 | |
Variable Interest Entity Proportionately Consolidated Carrying Amount Current Assets | [1] | 346,935 | 298,916 |
Variable Interest Entity Proportionately Consolidated Carrying Amount Non Current Assets | 5,103 | 6,689 | |
Current liabilities | [1] | 497,460 | 454,943 |
CB&I/Zachry/Chiyoda [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [1] | 97,265 | 84,696 |
Current liabilities | [1] | 95,579 | 86,124 |
CB&I/Chiyoda [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [1] | 471,602 | 424,781 |
Current liabilities | [1] | $ 433,029 | $ 433,526 |
[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 March 31, 2016 and December 31, 2015, other current assets on the Balance Sheet included approximately $350,800 and $325,000, respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $356,800 and $334,900, respectively, related to advances to CB&I from the ventures. |
PARTNERING ARRANGEMENTS - Summ
PARTNERING ARRANGEMENTS - Summarized Balance Sheet Information of Variable Interest Entities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
CB&I/Kentz [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | $ 218,156 | $ 214,291 | |
Current liabilities | 267,654 | 191,471 | |
CB&I/AREVA [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | 64,068 | 24,269 | |
Current liabilities | 59,217 | 65,674 | |
All Other [Member] | |||
Variable Interest Entity [Line Items] | |||
Current assets | [1] | 111,409 | 112,532 |
Non-current assets | [1] | 18,724 | 19,253 |
Total assets | [1] | 130,133 | 131,785 |
Current liabilities | [1] | $ 23,264 | $ 32,001 |
[1] | Other ventures that we consolidate are not individually material to our financial results and are therefore aggregated as “All Other”. |
DEBT - Outstanding Debt (Detai
DEBT - Outstanding Debt (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Current | ||
Revolving facility and other short-term borrowings | $ 570,300,000 | $ 653,000,000 |
Current maturities of long-term debt | 412,500,000 | 150,000,000 |
Less: unamortized debt issuance costs | (2,129,000) | (2,129,000) |
Current maturities of long-term debt, net | 410,371,000 | 147,871,000 |
Current debt, net of unamortized debt issuance costs | 980,671,000 | 800,871,000 |
Long-Term | ||
Senior notes | 800,000,000 | 800,000,000 |
Less: unamortized debt issuance costs | (7,635,000) | (8,168,000) |
Current maturities of long-term debt | (412,500,000) | (150,000,000) |
Long-term debt, net | $ 1,492,365,000 | $ 1,791,832,000 |
Minimum [Member] | ||
Long-Term | ||
Senior notes fixed interest rate | 4.15% | 4.15% |
Maximum [Member] | ||
Long-Term | ||
Senior notes 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 | $ 500,000,000 |
Term Loan One [Member] | Term Loan [Member] | ||
Long-Term | ||
Term Loan: $1,000,000 term loan (interest at LIBOR plus an applicable floating margin) | 412,500,000 | 450,000,000 |
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 | $ 200,000,000 |
Long-term debt, fixed interest 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 | Interest at LIBOR plus an applicable floating margin |
DEBT - Additional Information
DEBT - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Disclosure [Line Items] | ||
Minimum net worth requirement | $ 1,613,851,000 | |
Revolving facility and other short-term borrowings | 570,300,000 | $ 653,000,000 |
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 |
Semi annually fixed rate payable | 4.53% | 4.53% |
Uncommitted Credit Facility [Member] | ||
Debt Disclosure [Line Items] | ||
Revolving facility and other short-term borrowings | $ 363,000,000 | |
Amount outstanding under credit facility | 1,633,092,000 | |
Available borrowing capacity under credit facility | $ 2,279,425,000 | |
Weighted average interest rate | 1.30% | |
Credit facility total capacity | $ 4,275,517,000 | |
Line of credit facility, borrowing and financial letter of credit sublimit | 463,000,000 | |
Remaining borrowing capacity under credit facility | 100,000,000 | |
Term Loan [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 |
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 date | 2018-10 | |
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 | 150,000,000 | |
Amount outstanding under credit facility | 82,018,000 | |
Financial letters of credit, outstanding amount | 0 | |
Available borrowing capacity under credit facility | $ 1,117,982,000 | |
Weighted average interest rate | 2.20% | |
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 | $ 800,000,000 | |
Line of credit facility, expiration date | 2018-02 | |
Financial letters line of credit capacity | $ 50,000,000 | |
Revolving facility and other short-term borrowings | 57,300,000 | |
Amount outstanding under credit facility | 15,406,000 | |
Financial letters of credit, outstanding amount | 3,141,000 | |
Available borrowing capacity under credit facility | $ 727,294,000 | |
Weighted average interest rate | 4.30% | |
Unsecured Revolving Credit Facility [Member] | Total Revolving Credit Facilities [Member] | ||
Debt Disclosure [Line Items] | ||
Maximum outstanding borrowings | $ 1,258,000,000 | |
Surety Bond [Member] | ||
Debt Disclosure [Line Items] | ||
Outstanding surety bonds | $ 725,403,000 | |
Prime Rate [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility One [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, basis for variable rate | 3.50% | |
Debt instrument, basis spread on variable rate | 0.75% | |
Prime Rate [Member] | Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility Two [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, basis for variable rate | 3.50% | |
Debt instrument, basis spread on variable rate | 0.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, basis for variable rate | 0.43% | |
Debt instrument, basis spread on variable rate | 1.75% | |
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 | 0.43% | |
Debt instrument, basis spread on variable rate | 1.75% | |
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 | 0.43% | |
Debt instrument, basis spread on variable rate | 1.75% | |
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] | Term Loan [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, term | 4 years | |
Weighted average interest rate | 2.30% | |
Unsecured term loan remaining | $ 412,500,000 | 450,000,000 |
Debt instrument, face amount | 1,000,000,000 | 1,000,000,000 |
Future annual maturities for the remainder of 2016 | 112,500,000 | |
Future annual maturities for 2017 | 300,000,000 | |
Term Loan One [Member] | Term Loan [Member] | Interest Rate Swap [Member] | ||
Debt Disclosure [Line Items] | ||
Hedge against interest rate variability | $ 347,188,000 | |
Term Loan Two [Member] | Term Loan [Member] | ||
Debt Disclosure [Line Items] | ||
Debt instrument, term | 5 years | |
Weighted average interest rate | 2.20% | |
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 |
Future annual maturities for 2017 | 56,250,000 | |
Future annual maturities for 2018 | 75,000,000 | |
Future annual maturities for 2019 | 75,000,000 | |
Future annual maturities for 2020 | $ 293,750,000 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | 412,500,000 | 450,000,000 |
Term Loan One [Member] | Interest rate [Member] | Term Loan [Member] | ||
Derivative [Line Items] | ||
Hedge against interest rate variability | 347,188,000 | |
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 | 799,300,000 | 772,600,000 |
Second Senior Notes [Member] | ||
Derivative [Line Items] | ||
Senior notes | 200,000,000 | 200,000,000 |
Second Senior Notes [Member] | Level 2 [Member] | ||
Derivative [Line Items] | ||
Senior notes | 206,800,000 | $ 203,500,000 |
Foreign Exchange Contract Operating Exposure [Member] | ||
Derivative [Line Items] | ||
Notional value of outstanding forward contracts | $ 63,600,000 | |
Foreign Exchange Contract Operating Exposure [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Maturity of foreign currency derivatives from period-end | 6 years |
FINANCIAL INSTRUMENTS - Carried
FINANCIAL INSTRUMENTS - Carried at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives: | |||
Other current assets | [1] | $ 2,125 | $ 3,344 |
Other non-current assets | [1] | 259 | 180 |
Total assets at fair value | [1] | 2,384 | 3,524 |
Derivatives: | |||
Other current liabilities | (9,142) | (7,568) | |
Other non-current liabilities | (318) | (607) | |
Total liabilities at fair value | (9,460) | (8,175) | |
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] | 2,125 | 3,344 |
Other non-current assets | [1] | 259 | 180 |
Total assets at fair value | [1] | 2,384 | 3,524 |
Derivatives: | |||
Other current liabilities | (9,142) | (7,568) | |
Other non-current liabilities | (318) | (607) | |
Total liabilities at fair value | (9,460) | (8,175) | |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 2,384 | $ 3,524 |
Liability Derivatives Fair Value | (9,460) | (8,175) |
Interest rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 17 | |
Liability Derivatives Fair Value | (271) | |
Foreign currency [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 2,367 | |
Liability Derivatives Fair Value | (9,189) | |
Derivatives designated as cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 503 | 1,415 |
Liability Derivatives Fair Value | (2,006) | (2,050) |
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 | 17 | 471 |
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 | (271) | (192) |
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 | 486 | 944 |
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 | (1,735) | (1,858) |
Derivatives not designated as cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 1,881 | 2,109 |
Liability Derivatives Fair Value | (7,454) | (6,125) |
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 | 1,881 | 2,109 |
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 | $ (7,454) | $ (6,125) |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivative Assets and Liabilities on Gross Basis and Net Settlement Basis (Detail) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Gross Amounts Recognized | $ 2,384 | $ 3,524 |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 2,384 | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (132) | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | 2,252 | |
Liabilities: | ||
Gross Amounts Recognized | (9,460) | $ (8,175) |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (9,460) | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 132 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | (9,328) | |
Interest rate [Member] | ||
Assets: | ||
Gross Amounts Recognized | 17 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 17 | |
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 | 17 | |
Liabilities: | ||
Gross Amounts Recognized | (271) | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (271) | |
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 | (271) | |
Foreign currency [Member] | ||
Assets: | ||
Gross Amounts Recognized | 2,367 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | 2,367 | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (132) | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | 2,235 | |
Liabilities: | ||
Gross Amounts Recognized | (9,189) | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Amounts Presented on the Balance Sheet | (9,189) | |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 132 | |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 | |
Net Amount | $ (9,057) |
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | $ 119,962 | $ 156,749 | |
Derivatives designated as cash flow hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | 763 | (4,163) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (1,243) | (1,611) |
Net unrealized losses anticipated to be reclassified into earnings during the next 12 months | 86 | ||
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 | (713) | (1,708) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (181) | (474) |
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 | 1,476 | (2,455) | |
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | $ (1,062) | $ (1,137) |
[1] | Net unrealized losses totaling $86 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. |
FINANCIAL INSTRUMENTS - Total57
FINANCIAL INSTRUMENTS - Total Value Recognized in Cost of Revenue for Foreign Currency Derivatives not Designated As Cash Flow Hedges (Detail) - Derivatives not designated as cash flow hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Cost of Revenue on Derivatives | $ (4,229) | $ (6,532) |
Foreign currency [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Cost of Revenue on Derivatives | $ (4,229) | $ (6,532) |
RETIREMENT BENEFITS - Addition
RETIREMENT BENEFITS - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions expected for 2016 fiscal year | $ 16.9 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions expected for 2016 fiscal year | $ 2.4 |
RETIREMENT BENEFITS - Contribu
RETIREMENT BENEFITS - Contribution Information for Defined Benefit and Other Postretirement Plans (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions made through March 31, 2016 | $ 7,548 |
Contributions expected for the remainder of 2016 | 9,645 |
Total contributions expected for 2016 | 17,193 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions made through March 31, 2016 | 514 |
Contributions expected for the remainder of 2016 | 1,824 |
Total contributions expected for 2016 | $ 2,338 |
RETIREMENT BENEFITS - Componen
RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,327 | $ 2,712 |
Interest cost | 5,918 | 5,858 |
Expected return on plan assets | (6,796) | (7,137) |
Amortization of prior service credits | (154) | (158) |
Recognized net actuarial losses (gains) | 1,461 | 1,934 |
Net periodic benefit (income) cost | 2,756 | 3,209 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 176 | 295 |
Interest cost | 340 | 529 |
Recognized net actuarial losses (gains) | (840) | (150) |
Net periodic benefit (income) cost | $ (324) | $ 674 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ / LegalMatter in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)LegalMatterPlaintiff$ / LegalMatter | |
Commitments and Contingencies Disclosure [Line Items] | |
Contract Receivable | $ | $ 195,000 |
Asbestos Litigation [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of plaintiffs | Plaintiff | 5,800 |
Number of plaintiffs whose claims pending | LegalMatter | 1,200 |
Number of plaintiffs whose claims closed through dismissals or settlements | LegalMatter | 4,600 |
Settlement amount per claim (dollars per legal matter) | $ / LegalMatter | 2 |
Accrued litigation liability and related expenses | $ | $ 7,100 |
ACCUMULATED OTHER COMPREHENSI62
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components and Reclassification of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2015 | $ (294,040) | |
OCI before reclassifications | 19,262 | |
Amounts reclassified from AOCI | 1,350 | |
Net OCI | 20,612 | |
Balance at March 31, 2016 | (273,428) | |
Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2015 | (209,281) | [1] |
OCI before reclassifications | 21,435 | [1] |
Amounts reclassified from AOCI | 0 | [1] |
Net OCI | 21,435 | [1] |
Balance at March 31, 2016 | (187,846) | [1] |
Unrealized Fair Value Of Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2015 | (967) | |
OCI before reclassifications | 449 | |
Amounts reclassified from AOCI | 854 | |
Net OCI | 1,303 | |
Balance at March 31, 2016 | 336 | |
Defined Benefit Pension and Other Postretirement Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2015 | (83,792) | |
OCI before reclassifications | (2,622) | |
Amounts reclassified from AOCI | 496 | |
Net OCI | (2,126) | |
Balance at March 31, 2016 | $ (85,918) | |
[1] | During the three months ended March 31, 2016, the currency translation adjustment component of AOCI was unfavorably impacted primarily by movements in the Australian Dollar and Euro exchange rates against the U.S. Dollar. |
ACCUMULATED OTHER COMPREHENSI63
ACCUMULATED OTHER COMPREHENSIVE INCOME - Significant Items Reclassified Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest rate derivatives (interest expense) | $ 25,898 | $ 22,286 | |
Foreign currency derivatives (cost of revenue) | 2,380,128 | 2,755,574 | |
Income before taxes | 164,531 | 226,560 | |
Tax | (44,569) | (69,811) | |
Net income | 119,962 | $ 156,749 | |
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] | |||
Income before taxes | [1] | 1,243 | |
Tax | [1] | (389) | |
Net income | [1] | 854 | |
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] | (154) | |
Recognized net actuarial losses | [2] | 621 | |
Income before taxes | [2] | 467 | |
Tax | [2] | 29 | |
Net income | [2] | 496 | |
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] | 181 | |
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] | $ 1,062 | |
[1] | See Note 9 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. | ||
[2] | See Note 10 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) | 3 Months Ended | |
Mar. 31, 2016$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 1,771,000 | [1] |
Stock options granted | 0 | |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 940,000 | [1] |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 33.56 | |
Financial Performance-Based Grants [Member] | Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 665,000 | [1] |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 33.56 | |
Stock Performance-Based Grants [Member] | Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 166,000 | [1] |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 37.41 | |
[1] | No stock options were granted during the three months ended March 31, 2016. |
EQUITY-BASED INCENTIVE PLANS 65
EQUITY-BASED INCENTIVE PLANS - Stock-Based Incentive Plans and Employee Stock Purchase Plan (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 923 |
Financial performance based shares (issued upon vesting) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 370 |
RSUs (issued upon vesting) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 414 |
Stock options (issued upon exercise) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 30 |
ESPP shares (issued upon sale) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issued | 109 |
EQUITY-BASED INCENTIVE PLANS 66
EQUITY-BASED INCENTIVE PLANS - Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 0 | |
Purchase of treasury stock | $ 7,562 | $ 13,461 |
Treasury Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Purchase of treasury stock (in shares) | 226,000 | 330,000 |
Purchase of treasury stock | $ 7,562 | $ 13,461 |
Share repurchase, average price per share (in dollars per share) | $ 33.46 | |
Selling and administrative expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 14,500 | $ 31,963 |
UNAPPROVED CHANGE ORDERS, CLA67
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER CONTRACT RECOVERIES (Details) - All Other [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule Of Unapproved Claims And Change Orders [Line Items] | ||
Unapproved change orders and claims included in project price | $ 102,900 | $ 98,500 |
Incentive amounts included in contract price | 96,200 | $ 99,300 |
Revenues recognized on a cumulative POC basis | $ 169,300 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business sectors | segment | 4 | |
Revenue | $ 2,667,733 | $ 3,125,745 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 36,500 | $ 115,700 |
SEGMENT INFORMATION - Total Re
SEGMENT INFORMATION - Total Revenue and Income from Operations by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,667,733 | $ 3,125,745 |
Income From Operations | 187,940 | 246,798 |
Engineering & Construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,516,328 | 1,818,586 |
Income From Operations | 111,920 | 136,418 |
Fabrication Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 517,576 | 637,809 |
Income From Operations | 38,249 | 52,399 |
Technology [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 64,562 | 99,361 |
Income From Operations | 26,281 | 48,024 |
Capital Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 569,267 | 569,989 |
Income From Operations | $ 11,490 | $ 9,957 |