DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 8,128,597 | $ 9,940,917 | $ 10,261,046 |
Cost of revenue | 7,499,373 | 8,872,146 | 9,193,430 |
Gross profit | 629,224 | 1,068,771 | 1,067,616 |
Selling and administrative expense | 253,389 | 287,927 | 311,441 |
Intangibles amortization | 7,806 | 19,621 | 26,857 |
Equity (earnings) loss | (5,736) | 7,665 | 1,374 |
Goodwill impairment | 0 | 453,100 | 0 |
Loss on net assets sold and intangible assets impairment (Note 4) | 148,148 | 1,052,751 | 0 |
Other operating expense (income), net | 2,407 | 10,641 | (1,895) |
Integration related costs | 0 | 0 | 26,356 |
Income (loss) from continuing operations | 223,210 | (762,934) | 703,483 |
Interest expense | (7,938) | (7,702) | (5,731) |
Interest income | 11,792 | 6,980 | 7,220 |
Income (loss) from continuing operations before taxes | 227,064 | (763,656) | 704,972 |
Income tax benefit (expense) | 61,381 | 155,003 | (201,053) |
Net income (loss) from continuing operations | 288,445 | (608,653) | 503,919 |
Net (loss) income from discontinued operations (Note 5) | (528,268) | 178,692 | 132,206 |
Net income (loss) from continuing operations | (239,823) | (429,961) | 636,125 |
Less: Net income attributable to noncontrolling interests ($2,187, $2,511 and $1,876 related to discontinued operations) | (73,346) | (74,454) | (92,518) |
Net (loss) income attributable to CB&I | $ (313,169) | $ (504,415) | $ 543,607 |
Net (loss) income attributable to CB&I per share (Basic): | |||
Continuing operations, Basic (dollars per share) | $ 2.11 | $ (6.37) | $ 3.82 |
Discontinued operations, Basic (dollars per share) | (5.16) | 1.65 | 1.21 |
Total, Basic (dollars per share) | (3.05) | (4.72) | 5.03 |
Net (loss) income attributable to CB&I per share (Diluted): | |||
Continuing operations, Diluted (dollars per share) | 2.10 | (6.37) | 3.79 |
Discontinued operations, Diluted (dollars per share) | (5.12) | 1.65 | 1.19 |
Total, Diluted (dollars per share) | $ (3.02) | $ (4.72) | $ 4.98 |
Cash dividends on shares: | |||
Amount | $ 28,733 | $ 29,847 | $ 30,246 |
Per share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.28 |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net income attributable to noncontrolling interests, discontinued operations, tax | $ 2,187 | $ 2,511 | $ 1,876 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (239,823) | $ (429,961) | $ 636,125 |
Other comprehensive (loss) income from continuing operations, net of tax: | |||
Change in cumulative translation adjustment (net of tax of ($3,884), $960 and ($43)) | (54,744) | (78,537) | (102,976) |
Change in unrealized fair value of cash flow hedges (net of tax of ($475), ($678) and $1,171) | 754 | 1,746 | (4,484) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax, Continuing Operations | (504) | (795) | 2,184 |
us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax, Continuing Operations | 43,963 | (39,391) | 47,761 |
Other comprehensive (loss) income from discontinued operations, net of tax: | |||
Other comprehensive loss from discontinued operations - change in cumulative translation adjustment (net of tax of $0, $0 and $0) | (1,353) | 409 | 3,585 |
Change in unrecognized prior service pension credits/costs (net of tax of $4, $8 and ($57)) | (12) | (24) | 170 |
Change in unrecognized actuarial pension gains/losses (net of tax of $887, ($1,263) and $1,051) | 2,570 | (3,533) | 5,366 |
Comprehensive (loss) income | (342,215) | (464,238) | 481,477 |
Net income attributable to noncontrolling interests (net of tax of $0, ($124) and ($2,877)); ($2,187, $2,511 and $1,876 related to discontinued operations, net of tax of $0, $0 and $0) | (73,346) | (74,454) | (92,518) |
Change in cumulative translation adjustment attributable to noncontrolling interests (net of tax of $0, $0 and $0) | 816 | 2,634 | 12,184 |
Comprehensive (loss) income attributable to CB&I | $ (414,745) | $ (536,058) | $ 401,143 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Change in cumulative translation adjustment, tax | $ (3,884) | $ 960 | $ (43) |
Change in unrealized fair value of cash flow hedges, tax | (475) | (678) | 1,171 |
Change in unrecognized prior service pension credits/costs, tax | 196 | 308 | (673) |
Change in unrecognized actuarial pension gains/losses, tax | 14,297 | (16,182) | 21,742 |
Other comprehensive loss from discontinued operations - change in cumulative translation adjustment (net of tax of $0, $0 and $0) | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax, Discontinued Operations | 4 | 8 | (57) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax, Discontinued Operations | 887 | (1,263) | 1,051 |
Net income attributable to noncontrolling interests, tax | 0 | (124) | (2,877) |
Net income attributable to noncontrolling interests, discontinued operations, tax | 2,187 | 2,511 | 1,876 |
Change in cumulative translation adjustment attributable to noncontrolling interests, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents ($328,387 and $403,140 related to variable interest entities (VIEs)) | $ 490,679 | $ 535,714 |
Accounts receivable, net ($53,159 and $325,801 related to VIEs) | 401,872 | 943,123 |
Inventory (Note 6) | 173,817 | 258,128 |
Costs and estimated earnings in excess of billings ($26,186 and $10,375 related to VIEs) (Note 2) | 330,432 | 431,042 |
Current assets of discontinued operations (Note 5) | 603,776 | 699,016 |
Other current assets ($426,515 and $372,519 related to VIEs) (Note 9) | 541,176 | 500,276 |
Total current assets | 2,541,752 | 3,367,299 |
Equity investments (Note 8) | 35,541 | 8,314 |
Property and equipment, net (Note 9) | 434,252 | 471,952 |
Goodwill (Note 7) | 2,315,338 | 2,325,248 |
Other intangibles, net (Note 7) | 80,136 | 87,942 |
Deferred income taxes (Note 16) | 723,919 | 633,627 |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 1,382,704 | 2,067,990 |
Other non-current assets | 325,778 | 229,688 |
Total assets | 7,839,420 | 9,192,060 |
Liabilities | ||
Revolving facility and other short-term borrowings (Note 10) | 407,500 | 653,000 |
Current maturities of long-term debt, net (Note 10) | 503,910 | 147,871 |
Accounts payable ($337,089 and $403,088 related to VIEs) | 864,632 | 976,540 |
Billings in excess of costs and estimated earnings ($407,325 and $840,319 related to VIEs) (Note 2) | 1,218,824 | 1,589,328 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 562,617 | 651,997 |
Other current liabilities (Note 9) | 978,766 | 838,212 |
Total current liabilities | 4,536,249 | 4,856,948 |
Long-term debt, net (Note 10) | 1,287,923 | 1,791,832 |
Deferred income taxes (Note 16) | 6,590 | 10,239 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 38,290 | 36,687 |
Other non-current liabilities (Note 9) | 409,031 | 332,764 |
Total liabilities | 6,278,083 | 7,028,470 |
Commitments and contingencies (Note 13) | ||
Shareholders’ Equity | ||
Common stock, Euro .01 par value; shares authorized: 250,000; shares issued: 108,857 and 108,857; shares outstanding: 100,113 and 104,427 | 1,288 | 1,288 |
Additional paid-in capital | 782,130 | 800,641 |
Retained earnings | 1,370,606 | 1,712,508 |
Treasury stock, at cost: 8,744 and 4,430 shares | (344,870) | (206,407) |
Accumulated other comprehensive loss (Note 14) | (395,616) | (294,040) |
Total CB&I shareholders’ equity | 1,413,538 | 2,013,990 |
Noncontrolling interests (Note 8) ($6,874 and $7,484 related to discontinued operations) | 147,799 | 149,600 |
Total shareholders’ equity | 1,561,337 | 2,163,590 |
Total liabilities and shareholders’ equity | $ 7,839,420 | $ 9,192,060 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2016€ / shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015€ / shares | Dec. 31, 2015USD ($)shares |
Cash and cash equivalents related to variable interest entities (VIEs) | $ 490,679 | $ 535,714 | ||
Accounts receivable, net related to VIEs | 401,872 | 943,123 | ||
Costs and estimated earnings in excess of billings related to VIEs | 330,432 | 431,042 | ||
Other current assets related to VIEs | 541,176 | 500,276 | ||
Accounts payable related to VIEs | 864,632 | 976,540 | ||
Billings in excess of costs and estimated earnings | 1,218,824 | 1,589,328 | ||
Commitments and contingencies (Note 13) | ||||
Common stock, par value (in 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 | 100,113,000 | 104,427,000 | ||
Treasury stock, shares | shares | 8,744,000 | 4,430,000 | ||
Noncontrolling interest, discontinued operations | $ 6,874 | $ 7,484 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Cash and cash equivalents related to variable interest entities (VIEs) | 328,387 | 403,140 | ||
Accounts receivable, net related to VIEs | 53,159 | 325,801 | ||
Costs and estimated earnings in excess of billings related to VIEs | 26,186 | 10,375 | ||
Other current assets related to VIEs | 426,515 | 372,519 | ||
Accounts payable related to VIEs | 337,089 | 403,088 | ||
Billings in excess of costs and estimated earnings | $ 407,325 | $ 840,319 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash Flows from Operating Activities | |||
Net (loss) income | $ (239,823) | $ (429,961) | $ 636,125 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 122,522 | 161,135 | 181,398 |
Goodwill impairment | 655,000 | 453,100 | 0 |
Loss on net assets sold and intangible assets impairment | 148,148 | 1,040,751 | 0 |
Deferred income taxes | (86,881) | (146,453) | 138,847 |
Stock-based compensation expense | 39,611 | 57,506 | 65,588 |
Other operating expense (income), net | 2,339 | 2,619 | (2,373) |
Unrealized loss on foreign currency hedges | 2,178 | 2,853 | 8,551 |
Excess tax benefits from stock-based compensation | (51) | (287) | (15,282) |
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables, net | 603,558 | (213,508) | 78,881 |
Change in contracts in progress, net | (360,486) | (939,608) | (942,689) |
Decrease (increase) in inventory | 95,528 | (6,091) | 16,832 |
(Decrease) increase in accounts payable | (56,501) | 105,856 | 99,376 |
(Increase) decrease in other current and non-current assets | (229,075) | (33,000) | 2,054 |
Decrease in other current and non-current liabilities | (40,512) | (151,458) | (20,247) |
(Increase) decrease in equity investments | (14,932) | 22,117 | (8,191) |
Change in other, net | 13,835 | 18,215 | 25,177 |
Net cash provided by (used in) operating activities | 654,458 | (56,214) | 264,047 |
Cash Flows from Investing Activities | |||
Capital expenditures | (52,462) | (78,852) | (117,624) |
Advances with partners of proportionately consolidated ventures, net | (49,755) | (253,890) | (71,158) |
Proceeds from sale of property and equipment | 4,763 | 9,235 | 14,117 |
Other, net | (71,835) | (58,169) | (7,612) |
Net cash used in investing activities | (169,289) | (381,676) | (182,277) |
Cash Flows from Financing Activities | |||
Revolving facility and other short-term (repayments) borrowings, net | (245,500) | 488,259 | 49,741 |
Long-term borrowings | 0 | 700,000 | 48,081 |
Advances with equity method and proportionately consolidated ventures, net | 206,583 | 226,191 | 108,658 |
Repayments on long-term debt | (150,000) | (420,155) | (102,926) |
Excess tax benefits from stock-based compensation | 51 | 287 | 15,282 |
Purchase of treasury stock | (206,569) | (230,814) | (85,903) |
Issuance of stock | 16,329 | 20,164 | 26,772 |
Dividends paid | (28,733) | (29,847) | (30,246) |
Distributions to noncontrolling interests | (74,331) | (56,681) | (104,982) |
Net cash (used in) provided by financing activities | (482,170) | 697,404 | (75,523) |
Effect of exchange rate changes on cash and cash equivalents | (48,064) | (60,616) | (75,426) |
(Decrease) increase in cash and cash equivalents | (45,065) | 198,898 | (69,179) |
Cash and cash equivalents, beginning of the year | 505,156 | 550,221 | 351,323 |
Cash and cash equivalents, end of the year | 550,221 | 351,323 | 420,502 |
Cash and cash equivalents, end of the year - discontinued operations | (14,477) | (14,507) | (30,017) |
Cash and cash equivalents, end of the year - continuing operations | 490,679 | 535,714 | 321,306 |
Supplemental Cash Flow Disclosures | |||
Cash paid for interest | 99,333 | 83,147 | 74,267 |
Cash paid for income taxes, net | $ 32,270 | $ 116,065 | $ 163,212 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive(Loss) Income | Non - controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2013 | 107,478 | 379 | |||||
Balance at December 31, 2015 at Dec. 31, 2013 | $ 2,507,438 | $ 1,275 | $ 753,742 | $ 1,733,409 | $ (23,914) | $ (119,933) | $ 162,859 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | 636,125 | 543,607 | 92,518 | ||||
Change in cumulative translation adjustment, net | (99,391) | (87,207) | (12,184) | ||||
Change in unrealized fair value of cash flow hedges, net | (4,484) | (4,484) | |||||
Change in unrecognized prior service pension credits/costs, net | 2,354 | 2,354 | |||||
Change in unrecognized actuarial pension gains/losses, net | (53,127) | (53,127) | |||||
Distributions to noncontrolling interests | (104,982) | (104,982) | |||||
Dividends paid ($0.28, $0.28, and $0.28 per share) | (30,246) | (30,246) | |||||
Stock-based compensation expense | 65,588 | 65,588 | |||||
Issuance to treasury stock (in shares) | 550 | ||||||
Issuance to treasury stock | 0 | $ 8 | 40,818 | $ (40,826) | |||
Purchase of treasury stock (in shares) | 1,369 | 1,369 | |||||
Purchase of treasury stock | (85,903) | $ (85,903) | |||||
Issuance of stock (in shares) | 1,697 | (1,697) | |||||
Issuance of stock | 42,931 | (83,284) | $ 126,215 | ||||
Ending Balance (in shares) at Dec. 31, 2014 | 107,806 | 601 | |||||
Balance at December 31, 2016 at Dec. 31, 2014 | 2,876,303 | $ 1,283 | 776,864 | 2,246,770 | $ (24,428) | (262,397) | 138,211 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (429,961) | (504,415) | 74,454 | ||||
Decrease in noncontrolling interest, other | (3,750) | ||||||
Change in cumulative translation adjustment, net | (78,128) | (75,494) | (2,634) | ||||
Change in unrealized fair value of cash flow hedges, net | 1,746 | 1,746 | |||||
Change in unrecognized prior service pension credits/costs, net | (819) | (819) | |||||
Change in unrecognized actuarial pension gains/losses, net | 42,924 | 42,924 | |||||
Distributions to noncontrolling interests | (56,681) | (56,681) | |||||
Dividends paid ($0.28, $0.28, and $0.28 per share) | (29,847) | (29,847) | |||||
Stock-based compensation expense | 57,506 | 57,506 | |||||
Issuance to treasury stock (in shares) | 450 | ||||||
Issuance to treasury stock | 0 | $ 5 | 19,894 | $ (19,899) | |||
Purchase of treasury stock (in shares) | 5,001 | 5,001 | |||||
Purchase of treasury stock | (230,814) | $ (230,814) | |||||
Issuance of stock (in shares) | 1,622 | (1,622) | |||||
Issuance of stock | 15,111 | (53,623) | $ 68,734 | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 104,427 | 4,430 | |||||
Balance at December 31, 2016 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 (loss) income | (239,823) | (313,169) | 73,346 | ||||
Change in cumulative translation adjustment, net | (56,097) | (55,281) | (816) | ||||
Change in unrealized fair value of cash flow hedges, net | 754 | 754 | |||||
Change in unrecognized prior service pension credits/costs, net | (516) | (516) | |||||
Change in unrecognized actuarial pension gains/losses, net | (46,533) | (46,533) | |||||
Distributions to noncontrolling interests | (74,331) | (74,331) | |||||
Dividends paid ($0.28, $0.28, and $0.28 per share) | (28,733) | (28,733) | |||||
Stock-based compensation expense | 39,611 | 39,611 | |||||
Purchase of treasury stock (in shares) | 5,772 | 5,772 | |||||
Purchase of treasury stock | (206,569) | $ (206,569) | |||||
Issuance of stock (in shares) | 1,458 | (1,458) | |||||
Issuance of stock | 9,984 | (58,122) | $ 68,106 | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 100,113 | 8,744 | |||||
Balance at December 31, 2016 at Dec. 31, 2016 | $ 1,561,337 | $ 1,288 | $ 782,130 | $ 1,370,606 | $ (344,870) | $ (395,616) | $ 147,799 |
CONSOLIDATED STATEMENTS OF CH10
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.28 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 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, engineering, procurement, fabrication, modularization, construction and commissioning services to customers in the energy infrastructure market throughout the world. Our business is aligned into two operating groups, which represent our reportable segments: Engineering & Construction and Fabrication Services. Natural gas, petroleum, power and petrochemical projects for the worldwide energy and natural resource industries accounted for a majority of our revenue in 2016 , 2015 and 2014 . See Note 2 and Note 5 for discussion of our discontinued operations and Note 18 for a discussion of our reportable segments and related financial information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Consolidation —The accompanying Consolidated Financial Statements (“Financial Statements”) have been 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. Certain balances at December 31, 2015 have been reclassified within our Consolidated Balance Sheet (“Balance Sheet”) to conform to our December 31, 2016 presentation. On February 27, 2017, we entered into a definitive agreement (the “CS Agreement”) with CSVC Acquisition Corp (“CSVC”), under which CSVC agreed to acquire our “Capital Services Operations” (primarily comprised of our former Capital Services reportable segment). Our Capital Services Operations provided comprehensive and integrated maintenance services, environmental engineering and remediation, construction services, program management, and disaster response and recovery services for private-sector customers and governments. We completed the sale of the Capital Services Operations on June 30, 2017 (the “Closing Date”), as described in Note 5 . We considered the Capital Services Operations to be a discontinued operation in the first quarter 2017, as the divestiture represented a strategic shift and would have a material effect on our operations and financial results. In the July 2017, we initiated a plan to market and sell our “Technology Operations” (primarily comprised of our former Technology reportable segment and our “Engineered Products Operations”, representing a portion of our Fabrication Services reportable segment). Our Technology Operations provides proprietary process technology licenses and associated engineering services, catalysts and engineered products, primarily for the petrochemical and refining industries, and offers process planning and project development services and a comprehensive program of aftermarket support. We considered the Technology Operations to be a discontinued operation in the third quarter 2017, as the anticipated divestiture represented a strategic shift and would have a material effect on our operations and financial results. Financial information and disclosures for all periods presented have been recast on a retrospective basis as if the discontinued operations criteria for the Capital Services Operations and Technology Operations were met as of December 31, 2016. Operating results of the Capital Services Operations and Technology Operations have been classified as a discontinued operation within the Consolidated Statements of Operations (the “Statement of Operations”) for 2016, 2015 and 2014. Further, the assets and liabilities of the Capital Services Operations and Technology Operations have been classified as assets and liabilities of discontinued operations within our December 31, 2016 and 2015 Balance Sheets. Cash flows of the Capital Services Operations and Technology Operations are not reported separately within our Consolidated Statements of Cash Flows. Unless otherwise noted, the values presented throughout the notes to our Financial Statements relate to our continuing operations. See Note 5 for additional discussion of our discontinued operations. 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. See Note 17 for discussion of projects with significant changes in estimated margins during 2016, 2015 and 2014. 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 estimates of recovery amounts; however, the ultimate resolution and amounts received could differ from these estimates. See Note 17 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 are reported on the Balance Sheets as costs and estimated earnings in excess of billings. Projects with cumulative billings in excess of costs and estimated earnings recognized to date are reported on the Balance Sheets as billings in excess of costs and estimated earnings. The net balances on our Balance Sheets are collectively referred to as Contracts in Progress, net and the components of these balances at December 31, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 Asset Liability Asset Liability Costs and estimated earnings on contracts in progress $ 7,852,740 $ 22,544,241 $ 10,445,182 $ 17,779,376 Billings on contracts in progress (7,522,308 ) (23,763,065 ) (10,014,140 ) (19,368,704 ) Contracts in Progress, net $ 330,432 $ (1,218,824 ) $ 431,042 $ (1,589,328 ) Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At December 31, 2016 and 2015 , accounts receivable included contract retentions of approximately $72,100 and $55,400 , respectively. Contract retentions due beyond one year were approximately $37,500 at December 31, 2016 . 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 not material at December 31, 2016 and 2015 . 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 December 31, 2016 and 2015 , our allowances for doubtful accounts were not material. Precontract Costs —Precontract costs are generally charged to cost of revenue as incurred, but, in certain cases their recognition may be deferred if specific probability criteria are met. We had no significant deferred precontract costs at December 31, 2016 or 2015 . Research and Development —Expenditures for research and development activities are charged to cost of revenue as incurred and were $4,699 , $4,607 and $3,629 for 2016 , 2015 and 2014 , respectively. Other Operating Expense (Income), Net — Other operating expense (income), net , generally represents (gains) losses associated with the sale or disposition of property and equipment. For 2015, other operating expense (income), net also included a foreign exchange loss of approximately $11,000 associated with the re-measurement of certain non-U.S. Dollar denominated net assets. Integration Related Costs —Integration related costs were $26,356 for 2014, and primarily related to facility consolidations, including the associated accrued future lease costs for vacated facilities and unutilized capacity, personnel relocation and severance related costs, and systems integration costs. Depreciation Expense —Property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, including buildings and improvements ( 10 to 40 years) and plant and field equipment ( 1 to 15 years). Renewals and betterments that substantially extend the useful life of an asset are capitalized and depreciated. Leasehold improvements are depreciated over the lesser of the useful life of the asset or the applicable lease term. Depreciation expense is primarily included within cost of revenue and was $63,830 , $84,939 and $96,209 for 2016 , 2015 and 2014 , respectively. See Note 9 for disclosure of the components of property and equipment. 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. However, to the extent market indicators of fair value become available, we consider such market indicators in our discounted cash flow analysis and determination of fair value. See Note 7 for additional discussion of our goodwill and related goodwill impairment recorded during 2016. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 6 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 7 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 6 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 expense (income), net related to the re-measurement of certain non-U.S. Dollar denominated net assets during 2015, foreign currency transactional and re-measurement exchange gains (losses) are included within cost of revenue and were not material in 2016 , 2015 and 2014 . Financial Instruments —We utilize derivative instruments in certain circumstances to mitigate the effects of changes in foreign currency exchange rates and interest rates, as described below: • Foreign Currency Exchange Rate Derivatives —We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges are recognized within cost of revenue. • Interest Rate Derivatives —At December 31, 2016 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $290,375 of our outstanding $300,000 unsecured term loan (the “Term Loan”). The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through December 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 11 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 and penalty 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. See Note 16 for additional discussion of our income taxes. 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 either proportionate consolidation for both the Balance Sheet and Statement of Operations, when we meet the applicable accounting criteria to do so, or the equity method. See Note 8 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 payment when determining the amount of revenue to be recognized. The new model requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time for each of these obligations. These concepts, as well as other aspects of the ASU, may change the method and/or timing of revenue recognition for certain of our contracts, primarily associated with our fabrication and manufacturing contracts. We expect that revenue generated from our EPC and engineering services contracts will continue to be recognized over time utilizing the cost-to-cost measure of progress consistent with current practice. We also expect our revenue recognition disclosures to significantly expand due to the new qualitative and quantitative requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts. We will adopt the standard, including any updates to the standard, upon its effective date in the first quarter 2018 utilizing the modified retrospective approach. This approach will result in a cumulative adjustment to beginning equity in the first quarter 2018 for contracts impacted by the adoption of the standard. We are continuing to assess the potential impact of the new standard on our Financial Statements. 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 timing of adoption of the new standard and its potential impact 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. We will adopt the standard upon its effective date in the first quarter 2017 and do not believe it will have a material impact on our Financial Statements. In the first quarter 2016, we adopted 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. Our adoption did not have a material impact on our Financial Statements. In the first quarter 2016, we adopted 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. 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 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: Years Ended December 31, 2016 2015 2014 Net income (loss) from continuing operations attributable to CB&I (net of $71,159, $71,943 and $90,642 of noncontrolling interests) $ 217,286 $ (680,596 ) $ 413,277 Net (loss) income from discontinued operations attributable to CB&I (net of $2,187, $2,511 and $1,876 of noncontrolling interests) (530,455 ) 176,181 130,330 Net (loss) income attributable to CB&I $ (313,169 ) $ (504,415 ) $ 543,607 Weighted average shares outstanding—basic 102,811 106,766 108,047 Effect of restricted shares/performance based shares/stock options (1) 837 — 1,045 Effect of directors’ deferred-fee shares (1) 14 — 30 Weighted average shares outstanding—diluted 103,662 106,766 109,122 Net (loss) income attributable to CB&I per share (Basic): Continuing operations $ 2.11 $ (6.37 ) $ 3.82 Discontinued operations (5.16 ) 1.65 1.21 Total $ (3.05 ) $ (4.72 ) $ 5.03 Net (loss) income attributable to CB&I per share (Diluted): Continuing operations $ 2.10 $ (6.37 ) $ 3.79 Discontinued operations (5.12 ) 1.65 1.19 Total $ (3.02 ) $ (4.72 ) $ 4.98 (1) The effect of restricted shares, performance based shares, stock options and directors’ deferred-fee shares were not included in the calculation of diluted EPS for 2015 due to the net loss from continuing operations for the period. Antidilutive shares excluded from diluted EPS were not material for 2016 and 2014 . |
DISPOSITION OF NUCLEAR OPERATIO
DISPOSITION OF NUCLEAR OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITION OF NUCLEAR OPERATIONS | DISPOSITION OF NUCLEAR OPERATIONS On December 31, 2015 we completed the sale of our nuclear power construction business (our “Nuclear Operations”), previously included within our Engineering & Construction operating group, to Westinghouse Electric Company LLC (“WEC”) for transaction consideration of approximately $161,000 , which is due upon WEC’s substantial completion of the acquired VC Summer and Vogtle nuclear projects. At December 31, 2015, we recorded the present value of the transaction consideration (the “Transaction Receivable”); however, during the fourth quarter 2016 we determined that recovery was no longer probable and recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) to reserve the Transaction Receivable. The charge is included in “Loss on Net Assets Sold and Intangible Assets Impairment” in our Statement of Operations. See Note 13 for discussion of a dispute with WEC relating to the sale of our Nuclear Operations. As a result of the sale of our Nuclear Operations in 2015, we recorded a non-cash pre-tax charge related to the impairment of goodwill and intangible assets and a loss on net assets sold. A summary of the charge is as follows: Year Ended December 31, 2015 Loss on net assets sold $ 973,651 Intangible assets impairment 79,100 Loss on net assets sold and intangible assets impairment 1,052,751 Goodwill impairment 453,100 Total pre-tax charge $ 1,505,851 The net tax benefit of the charge was approximately $370,700 , reflecting the non-deductibility of the goodwill impairment, and resulted in an after-tax charge of approximately $1,135,200 . The impact of the loss on net assets sold and intangible assets impairment is included in “Loss on net assets sold and intangible assets impairment” in our Statement of Operations, and the impact of the goodwill impairment is included in “Goodwill impairment” in our Statement of Operations. The revenue and pre-tax income of our former Nuclear Operations for 2015 and 2014 was as follows: Years Ended December 31, 2015 2014 Revenue $ 2,061,167 $ 1,841,018 Pre-tax income $ 215,150 $ 151,800 DISCONTINUED OPERATIONS Capital Services Operations Transaction Summary —As discussed in Note 2 , on June 30, 2017 we completed the sale of our Capital Services Operations as provided for by the CS Agreement entered into on February 27, 2017. Under the CS Agreement, including its amendment prior to the Closing Date, the purchase price was $700,000 , subject to certain adjustments including a working capital adjustment, whereby the purchase price would be adjusted to the extent actual working capital of the Capital Services Operations on the Closing Date differed from required working capital under the CS Agreement. After giving effect to working capital and other adjustments estimated prior to the Closing Date of approximately $32,600 , we received cash proceeds of approximately $667,400 (approximately $645,500 net of cash sold) on the Closing Date. Based on actual working capital of the Capital Services Operations on the Closing Date, we estimate net final proceeds of approximately $599,000 , including approximately $46,500 for transaction costs and the aforementioned post-closing working capital adjustment. As a result of the aforementioned, during 2017, we recorded a pre-tax charge of approximately $64,800 , and income tax expense of approximately $55,800 resulting from a taxable gain on the transaction (due primarily to the non-deductibility of goodwill). The transaction did not result in any material cash taxes associated with the taxable gain due to the use of previously recorded net operating loss carryforwards. The proceeds received on the Closing Date were used to reduce our outstanding debt. Assets and Liabilities —The carrying values of the major classes of assets and liabilities of the discontinued Capital Services Operations within our Balance Sheets at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Cash $ 14,477 $ 14,507 Accounts receivable 239,146 274,186 Costs and estimated earnings in excess of billings 153,275 165,003 Other assets 7,834 7,876 Current assets of discontinued operations 414,732 461,572 Property and equipment, net 59,746 64,916 Goodwill (1) 229,607 884,607 Other intangible assets 148,440 165,040 Other assets 24,351 39,487 Non-current assets of discontinued operations 462,144 1,154,050 Total assets of discontinued operations $ 876,876 $ 1,615,622 Liabilities Accounts payable $ 141,028 $ 112,884 Billings in excess of costs and estimated earnings 53,986 67,287 Other liabilities 52,455 50,160 Current liabilities of discontinued operations 247,469 230,331 Other liabilities 5,388 5,921 Non-current liabilities of discontinued operations 5,388 5,921 Total liabilities of discontinued operations $ 252,857 $ 236,252 Noncontrolling interests of discontinued operations $ 6,874 $ 7,484 (1) The carrying value of goodwill for the discontinued Capital Services Operations includes the impact of a $655,000 impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). Results of Operations —The results of our Capital Services Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 2,211,835 $ 2,385,863 $ 2,217,369 Cost of revenue 2,063,189 2,227,041 2,051,861 Gross profit 148,646 158,822 165,508 Selling and administrative expense 51,833 50,745 46,332 Intangibles amortization 16,600 19,960 19,960 Other operating income, net (2,328 ) (1,353 ) (1,240 ) Goodwill impairment (1) 655,000 — — Integration related costs — — 8,300 Operating (loss) income from discontinued operations (572,459 ) 89,470 92,156 Interest expense (2) (24,109 ) (23,857 ) (22,372 ) Interest income 1,155 1,244 1,154 (Loss) income from discontinued operations before taxes (595,413 ) 66,857 70,938 Income tax expense (3) (23,486 ) (20,963 ) (32,051 ) Net (loss) income from discontinued operations (618,899 ) 45,894 38,887 Net income from discontinued operations attributable to noncontrolling interests (2,187 ) (2,511 ) (1,876 ) Net (loss) income from discontinued operations attributable to CB&I $ (621,086 ) $ 43,383 $ 37,011 (1) Represents the goodwill impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Capital Services Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation was based upon the anticipated amounts to be repaid. (3) Income tax expense for 2016 reflects the non-deductibility of the aforementioned $655,000 goodwill impairment charge. Cash Flows —Cash flows for our Capital Services Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 145,643 $ 76,365 $ (52,828 ) Investing cash flows $ (6,561 ) $ (11,706 ) $ (14,222 ) Unapproved Change Orders, Claims and Incentives —At December 31, 2016 and 2015 , our Capital Services Operations had unapproved change orders, claims and incentives included in project price of approximately $8,400 and $14,600 , respectively. Of the aforementioned amounts, approximately $7,700 had been recognized as revenue for the discontinued operations on a cumulative POC basis through December 31, 2016 . Technology Operations Transaction Summary —As discussed in Note 2 , in the July 2017, we initiated a plan to market and sell our Technology Operations. At December 31, 2016 , the fair value of the Technology Operations substantially exceeded the carrying value of its net assets. Assets and Liabilities —The carrying values of the major classes of assets and liabilities of the discontinued Technology Operations within our Balance Sheets on December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Accounts receivable $ 86,641 $ 113,908 Costs and estimated earnings in excess of billings 80,317 92,269 Inventory 16,285 27,027 Other assets 5,801 4,240 Current assets of discontinued operations 189,044 237,444 Equity investments 129,715 117,464 Property and equipment, net 71,692 67,175 Goodwill (1) 498,465 501,651 Other intangible assets 139,273 157,966 Other assets 81,415 69,684 Non-current assets of discontinued operations 920,560 913,940 Total assets of discontinued operations $ 1,109,604 $ 1,151,384 Liabilities Accounts payable $ 99,916 $ 72,653 Billings in excess of costs and estimated earnings 176,525 277,496 Other liabilities 38,707 71,517 Current liabilities of discontinued operations 315,148 421,666 Other liabilities 32,902 30,766 Non-current liabilities of discontinued operations 32,902 30,766 Total liabilities of discontinued operations $ 348,050 $ 452,432 Accumulated other comprehensive loss $ (13,252 ) $ (10,670 ) (1) Goodwill allocated to the discontinued Technology Operations is comprised of all the goodwill of our former Technology reporting unit (approximately $297,000 ), and an allocation of goodwill from our Fabrication Services reporting unit (approximately $200,000 )(discussed in Note 7 ). Results of Operations —The results of our Technology Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 636,818 $ 779,725 $ 618,172 Cost of revenue 388,632 495,002 384,887 Gross profit 248,186 284,723 233,285 Selling and administrative expense 44,652 48,355 47,435 Intangibles amortization 18,033 18,044 19,689 Equity earnings (18,834 ) (22,442 ) (25,910 ) Other operating expense (income), net (1) 4 (7,581 ) 73 Integration related costs — — 5,029 Operating income from discontinued operations 204,331 248,347 186,969 Interest expense (2) (73,302 ) (62,801 ) (55,487 ) Interest income 57 61 150 Income from discontinued operations before taxes 131,086 185,607 131,632 Income tax expense (40,455 ) (52,809 ) (38,313 ) Net income from discontinued operations 90,631 132,798 93,319 Net income from discontinued operations attributable to noncontrolling interests — — — Net income from discontinued operations attributable to CB&I $ 90,631 $ 132,798 $ 93,319 (1) For 2015, other operating expense (income), net included a gain of approximately $7,500 related to the contribution of a technology to our unconsolidated Chevron-Lummus Global (“CLG”) joint venture. (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Technology Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation of interest expense was based on the anticipated debt amounts to be repaid. Cash Flows —Cash flows for our Technology Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 83,247 $ 186,944 $ 155,814 Investing cash flows $ (54,868 ) $ (54,275 ) $ (5,135 ) Partnering Arrangements —Our Technology Operations has a venture with Chevron (CB&I— 50% / Chevron— 50% ) (CLG) which provides proprietary process technology licenses and associated engineering services and catalyst, primarily for the refining industry. The venture is accounted for using the equity method. Dividends received from CLG were $5,900 , $26,000 and $15,000 during 2016, 2015 and 2014, respectively. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISPOSITION OF NUCLEAR OPERATIONS On December 31, 2015 we completed the sale of our nuclear power construction business (our “Nuclear Operations”), previously included within our Engineering & Construction operating group, to Westinghouse Electric Company LLC (“WEC”) for transaction consideration of approximately $161,000 , which is due upon WEC’s substantial completion of the acquired VC Summer and Vogtle nuclear projects. At December 31, 2015, we recorded the present value of the transaction consideration (the “Transaction Receivable”); however, during the fourth quarter 2016 we determined that recovery was no longer probable and recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) to reserve the Transaction Receivable. The charge is included in “Loss on Net Assets Sold and Intangible Assets Impairment” in our Statement of Operations. See Note 13 for discussion of a dispute with WEC relating to the sale of our Nuclear Operations. As a result of the sale of our Nuclear Operations in 2015, we recorded a non-cash pre-tax charge related to the impairment of goodwill and intangible assets and a loss on net assets sold. A summary of the charge is as follows: Year Ended December 31, 2015 Loss on net assets sold $ 973,651 Intangible assets impairment 79,100 Loss on net assets sold and intangible assets impairment 1,052,751 Goodwill impairment 453,100 Total pre-tax charge $ 1,505,851 The net tax benefit of the charge was approximately $370,700 , reflecting the non-deductibility of the goodwill impairment, and resulted in an after-tax charge of approximately $1,135,200 . The impact of the loss on net assets sold and intangible assets impairment is included in “Loss on net assets sold and intangible assets impairment” in our Statement of Operations, and the impact of the goodwill impairment is included in “Goodwill impairment” in our Statement of Operations. The revenue and pre-tax income of our former Nuclear Operations for 2015 and 2014 was as follows: Years Ended December 31, 2015 2014 Revenue $ 2,061,167 $ 1,841,018 Pre-tax income $ 215,150 $ 151,800 DISCONTINUED OPERATIONS Capital Services Operations Transaction Summary —As discussed in Note 2 , on June 30, 2017 we completed the sale of our Capital Services Operations as provided for by the CS Agreement entered into on February 27, 2017. Under the CS Agreement, including its amendment prior to the Closing Date, the purchase price was $700,000 , subject to certain adjustments including a working capital adjustment, whereby the purchase price would be adjusted to the extent actual working capital of the Capital Services Operations on the Closing Date differed from required working capital under the CS Agreement. After giving effect to working capital and other adjustments estimated prior to the Closing Date of approximately $32,600 , we received cash proceeds of approximately $667,400 (approximately $645,500 net of cash sold) on the Closing Date. Based on actual working capital of the Capital Services Operations on the Closing Date, we estimate net final proceeds of approximately $599,000 , including approximately $46,500 for transaction costs and the aforementioned post-closing working capital adjustment. As a result of the aforementioned, during 2017, we recorded a pre-tax charge of approximately $64,800 , and income tax expense of approximately $55,800 resulting from a taxable gain on the transaction (due primarily to the non-deductibility of goodwill). The transaction did not result in any material cash taxes associated with the taxable gain due to the use of previously recorded net operating loss carryforwards. The proceeds received on the Closing Date were used to reduce our outstanding debt. Assets and Liabilities —The carrying values of the major classes of assets and liabilities of the discontinued Capital Services Operations within our Balance Sheets at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Cash $ 14,477 $ 14,507 Accounts receivable 239,146 274,186 Costs and estimated earnings in excess of billings 153,275 165,003 Other assets 7,834 7,876 Current assets of discontinued operations 414,732 461,572 Property and equipment, net 59,746 64,916 Goodwill (1) 229,607 884,607 Other intangible assets 148,440 165,040 Other assets 24,351 39,487 Non-current assets of discontinued operations 462,144 1,154,050 Total assets of discontinued operations $ 876,876 $ 1,615,622 Liabilities Accounts payable $ 141,028 $ 112,884 Billings in excess of costs and estimated earnings 53,986 67,287 Other liabilities 52,455 50,160 Current liabilities of discontinued operations 247,469 230,331 Other liabilities 5,388 5,921 Non-current liabilities of discontinued operations 5,388 5,921 Total liabilities of discontinued operations $ 252,857 $ 236,252 Noncontrolling interests of discontinued operations $ 6,874 $ 7,484 (1) The carrying value of goodwill for the discontinued Capital Services Operations includes the impact of a $655,000 impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). Results of Operations —The results of our Capital Services Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 2,211,835 $ 2,385,863 $ 2,217,369 Cost of revenue 2,063,189 2,227,041 2,051,861 Gross profit 148,646 158,822 165,508 Selling and administrative expense 51,833 50,745 46,332 Intangibles amortization 16,600 19,960 19,960 Other operating income, net (2,328 ) (1,353 ) (1,240 ) Goodwill impairment (1) 655,000 — — Integration related costs — — 8,300 Operating (loss) income from discontinued operations (572,459 ) 89,470 92,156 Interest expense (2) (24,109 ) (23,857 ) (22,372 ) Interest income 1,155 1,244 1,154 (Loss) income from discontinued operations before taxes (595,413 ) 66,857 70,938 Income tax expense (3) (23,486 ) (20,963 ) (32,051 ) Net (loss) income from discontinued operations (618,899 ) 45,894 38,887 Net income from discontinued operations attributable to noncontrolling interests (2,187 ) (2,511 ) (1,876 ) Net (loss) income from discontinued operations attributable to CB&I $ (621,086 ) $ 43,383 $ 37,011 (1) Represents the goodwill impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Capital Services Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation was based upon the anticipated amounts to be repaid. (3) Income tax expense for 2016 reflects the non-deductibility of the aforementioned $655,000 goodwill impairment charge. Cash Flows —Cash flows for our Capital Services Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 145,643 $ 76,365 $ (52,828 ) Investing cash flows $ (6,561 ) $ (11,706 ) $ (14,222 ) Unapproved Change Orders, Claims and Incentives —At December 31, 2016 and 2015 , our Capital Services Operations had unapproved change orders, claims and incentives included in project price of approximately $8,400 and $14,600 , respectively. Of the aforementioned amounts, approximately $7,700 had been recognized as revenue for the discontinued operations on a cumulative POC basis through December 31, 2016 . Technology Operations Transaction Summary —As discussed in Note 2 , in the July 2017, we initiated a plan to market and sell our Technology Operations. At December 31, 2016 , the fair value of the Technology Operations substantially exceeded the carrying value of its net assets. Assets and Liabilities —The carrying values of the major classes of assets and liabilities of the discontinued Technology Operations within our Balance Sheets on December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Accounts receivable $ 86,641 $ 113,908 Costs and estimated earnings in excess of billings 80,317 92,269 Inventory 16,285 27,027 Other assets 5,801 4,240 Current assets of discontinued operations 189,044 237,444 Equity investments 129,715 117,464 Property and equipment, net 71,692 67,175 Goodwill (1) 498,465 501,651 Other intangible assets 139,273 157,966 Other assets 81,415 69,684 Non-current assets of discontinued operations 920,560 913,940 Total assets of discontinued operations $ 1,109,604 $ 1,151,384 Liabilities Accounts payable $ 99,916 $ 72,653 Billings in excess of costs and estimated earnings 176,525 277,496 Other liabilities 38,707 71,517 Current liabilities of discontinued operations 315,148 421,666 Other liabilities 32,902 30,766 Non-current liabilities of discontinued operations 32,902 30,766 Total liabilities of discontinued operations $ 348,050 $ 452,432 Accumulated other comprehensive loss $ (13,252 ) $ (10,670 ) (1) Goodwill allocated to the discontinued Technology Operations is comprised of all the goodwill of our former Technology reporting unit (approximately $297,000 ), and an allocation of goodwill from our Fabrication Services reporting unit (approximately $200,000 )(discussed in Note 7 ). Results of Operations —The results of our Technology Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 636,818 $ 779,725 $ 618,172 Cost of revenue 388,632 495,002 384,887 Gross profit 248,186 284,723 233,285 Selling and administrative expense 44,652 48,355 47,435 Intangibles amortization 18,033 18,044 19,689 Equity earnings (18,834 ) (22,442 ) (25,910 ) Other operating expense (income), net (1) 4 (7,581 ) 73 Integration related costs — — 5,029 Operating income from discontinued operations 204,331 248,347 186,969 Interest expense (2) (73,302 ) (62,801 ) (55,487 ) Interest income 57 61 150 Income from discontinued operations before taxes 131,086 185,607 131,632 Income tax expense (40,455 ) (52,809 ) (38,313 ) Net income from discontinued operations 90,631 132,798 93,319 Net income from discontinued operations attributable to noncontrolling interests — — — Net income from discontinued operations attributable to CB&I $ 90,631 $ 132,798 $ 93,319 (1) For 2015, other operating expense (income), net included a gain of approximately $7,500 related to the contribution of a technology to our unconsolidated Chevron-Lummus Global (“CLG”) joint venture. (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Technology Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation of interest expense was based on the anticipated debt amounts to be repaid. Cash Flows —Cash flows for our Technology Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 83,247 $ 186,944 $ 155,814 Investing cash flows $ (54,868 ) $ (54,275 ) $ (5,135 ) Partnering Arrangements —Our Technology Operations has a venture with Chevron (CB&I— 50% / Chevron— 50% ) (CLG) which provides proprietary process technology licenses and associated engineering services and catalyst, primarily for the refining industry. The venture is accounted for using the equity method. Dividends received from CLG were $5,900 , $26,000 and $15,000 during 2016, 2015 and 2014, respectively. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY The components of inventory at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Raw materials $ 58,261 $ 135,239 Work in process 48,011 54,556 Finished goods 67,545 68,333 Total $ 173,817 $ 258,128 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill Summary —At December 31, 2016 and 2015 , our goodwill balances were $2,315,338 and $2,325,248 , 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 by reporting segment for 2016 and 2015 was as follows: Engineering & Construction Fabrication Services Total Balance at December 31, 2014 $ 2,339,246 $ 465,415 $ 2,804,661 Impairment charges (described below) (1) (453,100 ) — (453,100 ) Amortization of tax goodwill in excess of book goodwill (3,789 ) (348 ) (4,137 ) Foreign currency translation and other (22,176 ) — (22,176 ) Balance at December 31, 2015 $ 1,860,181 $ 465,067 $ 2,325,248 Amortization of tax goodwill in excess of book goodwill (338 ) (2 ) (340 ) Foreign currency translation and other (9,570 ) — (9,570 ) Balance at December 31, 2016 $ 1,850,273 $ 465,065 $ 2,315,338 (1) At December 31, 2016 , we had approximately $453,100 of cumulative impairment losses, which were recorded in our Engineering & Construction operating group during 2015 related to the sale of our Nuclear Operations on December 31, 2015. As discussed further in Note 2 , goodwill is not amortized to earnings, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment 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. At October 1, 2016 and prior to the recognition of our Capital Services Operations and Technology Operations as discontinued operations (discussed below), we had the following five reporting units within our four operating groups: • Engineering & Construction —Our Engineering & Construction operating group represented a reporting unit. • Fabrication Services —Our Fabrication Services operating group represented a reporting unit. As of December 31, 2015 , Fabrication Services included three reporting units: Steel Plate Structures, Fabrication & Manufacturing, and Engineered Products. However, during the third quarter 2016, our Steel Plate Structures, Fabrication & Manufacturing and Engineered Products Operations were integrated and operationally combined. As a result, we reevaluated our reporting units within the Fabrication Services operating group and determined that the Fabrication Services operating group represented a single reporting unit subsequent to the reorganization. In conjunction with the reorganization of our Fabrication Services operating group and change in reporting units, we performed a quantitative assessment of goodwill for each of the reporting units immediately before the change in reporting units, and for the new Fabrication Services reporting unit. Based on these quantitative assessments, the fair value of each of the reporting units exceeded their respective net book values, and accordingly, no impairment charge was necessary as a result of the change in reporting units. Our Engineered Products Operations were included within our Technology Operations and classified as a discontinued operation in the third quarter 2017 (discussed below). • Technology —Our Technology operating group represented a reporting unit. This reporting unit was included within our Technology Operations and classified as a discontinued operation in the third quarter 2017 (discussed below). • Capital Services —Our Capital Services operating group included two reporting units: Facilities & Plant Services and Federal Services. These reporting units were included within our Capital Services Operations and classified as a discontinued operation in the first quarter 2017 (discussed below). As a result of the aforementioned, the reporting units of our continuing operations represent our Engineering & Construction operating group and our Fabrication Services operating group (excluding our discontinued Engineered Products Operations). Annual Impairment Assessment —During the fourth quarter 2016, we performed a quantitative assessment of goodwill for each of the aforementioned reporting units as of October 1, 2016. Based on these quantitative assessments, the fair value of our Engineering & Construction, Fabrication Services and Technology reporting units each substantially exceeded their respective net book values, and accordingly, no impairment charge was necessary as a result of our annual impairment assessments. However, we determined that the net book value of the Facilities & Plant Services and Federal Services reporting units each exceeded their respective fair values, indicating that the carrying value of their goodwill was impaired. Our fair value determination for the Facilities & Plant Services and Federal Services reporting units gave consideration to a market indicator of fair value for the reporting units (discussed in Note 19). As a result of the aforementioned, we recorded a goodwill impairment charge of $655,000 for these reporting units ( $581,900 for Facilities & Plant Services and $73,100 for Federal Services). Accordingly, at December 31, 2016, the adjusted carrying value of goodwill for the Facilities & Plant Services and Federal Services reporting units was approximately $112,900 and $116,700 , respectively. The amount of goodwill impairment charge was determined by comparing the carrying value of each reporting unit’s goodwill to their respective implied fair values. The fair values of the Facilities & Plant Services and Federal Services reporting units approximated their respective net book values subsequent to the goodwill impairments. 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. Discontinued Operations —During the first quarter 2017, we classified our Capital Services Operations as a discontinued operation (discussed in Note 2 and Note 5 ). Our Capital Services Operations are primarily comprised of our former Capital Services operating group, which included our Facilities & Plant Services and Federal Services reporting units. As a result of the classification of our Capital Services operating group within discontinued operations, all its goodwill (approximately $229,600 , after the aforementioned $655,000 impairment) was allocated to our Capital Services Operations. During the third quarter 2017, we classified our Technology Operations as a discontinued operation (discussed in Note 2 and Note 5 ). Our Technology Operations are primarily comprised of our former Technology operating group and reporting unit and our Engineered Products Operations, representing a portion of our Fabrication Services operating group and reporting unit. As a result of the classification of our Technology reporting unit as a part of our Technology Operations within discontinued operations, all of its goodwill (approximately $297,000 ) was allocated to our Technology Operations. Further, as a result of the classification of our Engineered Products Operations as part of our Technology Operations within discontinued operations, we allocated a portion of the Fabrication Services reporting unit’s goodwill (approximately $200,000 ) to our Technology Operations. The allocation was based on the relative fair values of the Engineered Products Operations and remaining Fabrication Services reporting unit after removal of the Engineered Products Operations. The fair value of the Engineered Products Operations was determined on a basis consistent with the basis used for our annual impairment assessment (discussed in Note 2) and gave consideration to a market indicator of fair value for the Technology Operations. The fair value of the remaining Fabrication Services reporting unit was also determined on a basis consistent with the basis used for our annual impairment assessment. Based on the aforementioned, the fair value of the remaining Fabrication Services reporting unit continued to substantially exceed its net book value, and accordingly, no impairment charge was necessary as a result of the removal of the Engineered Products Operations. Other Intangible Assets —The following table presents our acquired finite-lived intangible assets at December 31, 2016 and 2015 , including the December 31, 2016 weighted-average useful lives for each major intangible asset class and in total: December 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 $ 93,700 $ (20,073 ) $ 101,686 $ (22,546 ) Process technologies 20 Years 400 (78 ) 400 (58 ) Tradenames 6 Years 15,718 (9,531 ) 15,718 (7,258 ) Total (2) 17 Years $ 109,818 $ (29,682 ) $ 117,804 $ (29,862 ) (1) Backlog and customer relationships intangibles totaling approximately $8,000 became fully amortized during 2016 and were therefore removed from the December 31, 2016 gross carrying and accumulated amortization balances above. (2) The remaining decrease in other intangibles, net during 2016 primarily related to amortization expense of approximately $7,800 . Amortization expense for our intangibles existing at December 31, 2016 is anticipated to be approximately $7,700 , $7,700 , $5,700 , $5,400 and $5,200 for 2017 , 2018 , 2019 , 2020 and 2021 , respectively. As a result of the partial impairment of goodwill for our Capital Services operating group resulting from our fourth quarter annual impairment assessment, we determined that an indicator of impairment existed for the finite-lived intangible assets of our Capital Services operating group, and accordingly, we performed an impairment assessment for these intangible assets during the fourth quarter 2016. Based on our impairment assessment we concluded that the intangible assets were not impaired. We noted no other indicators of impairment during 2016. |
PARTNERING ARRANGEMENTS
PARTNERING ARRANGEMENTS | 12 Months Ended |
Dec. 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 ventures: December 31, 2016 2015 CB&I/Zachry Current assets (1) $ 260,934 $ 298,916 Non-current assets 3,204 6,689 Total assets $ 264,138 $ 305,605 Current liabilities (1) $ 379,339 $ 454,943 CB&I/Zachry/Chiyoda Current assets (1) $ 84,279 $ 82,106 Non-current assets 1,969 2,590 Total assets $ 86,248 $ 84,696 Current liabilities (1) $ 73,138 $ 86,124 CB&I/Chiyoda Current assets (1) $ 337,479 $ 424,781 Current liabilities (1) $ 150,179 $ 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 ventures 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. As summarized in Note 9 , at December 31, 2016 and 2015 , other current assets on the Balance Sheets included approximately $374,800 and $325,000 , respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $394,400 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: • NET Power— We have a venture with Exelon and 8 Rivers Capital (CB&I— 33.3% / Exelon— 33.3% / 8 Rivers Capital— 33.3% ) to commercialize a new natural gas power generation system that recovers the carbon dioxide produced during combustion. NET Power 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 NET Power and therefore do not consolidate it. Our cash commitment for NET Power totals $47,300 , and at December 31, 2016 , we had made cumulative investments totaling approximately $37,900 . • CB&I/CTCI— We have a venture with CTCI (CB&I— 50% / CTCI— 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 the venture 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. As summarized in Note 9 , at December 31, 2016 , other current liabilities included approximately $147,000 related to advances to CB&I from the venture. Dividends received from our equity method ventures were not material during 2016 , 2015 and 2014 , respectively. We have no other material unconsolidated ventures. 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 $5,900,000 . • 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 $5,800,000 . The following table presents summarized balance sheet information for our consolidated ventures: December 31, 2016 2015 CB&I/Kentz Current assets $ 68,867 $ 214,291 Current liabilities $ 87,822 $ 191,471 CB&I/AREVA Current assets $ 16,313 $ 24,269 Current liabilities $ 47,652 $ 65,674 All Other (1) Current assets $ 69,785 $ 78,492 Non-current assets 16,382 18,415 Total assets $ 86,167 $ 96,907 Current liabilities $ 7,748 $ 22,025 (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. |
SUPPLEMENTAL BALANCE SHEET DETA
SUPPLEMENTAL BALANCE SHEET DETAIL | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL BALANCE SHEET DETAIL | SUPPLEMENTAL BALANCE SHEET DETAIL The components of property and equipment, other current assets, and other current and non-current liabilities at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Property and Equipment Plant, field equipment and other $ 532,282 $ 530,433 Buildings and improvements 354,723 340,407 Land and improvements 67,182 70,481 Total property and equipment $ 954,187 $ 941,321 Accumulated depreciation (519,935 ) (469,369 ) Property and equipment, net $ 434,252 $ 471,952 Other Current Assets Advances to proportionately consolidated ventures (1) $ 374,803 $ 325,048 Other (2) 166,373 175,228 Other current assets $ 541,176 $ 500,276 Other Current Liabilities Advances from equity method and proportionately consolidated ventures (1) $ 541,432 $ 334,850 Payroll-related obligations 197,182 253,079 Income taxes payable 46,741 29,627 Self-insurance and other insurance reserves 16,206 18,104 Other (3) 177,205 202,552 Other current liabilities $ 978,766 $ 838,212 Other Non-Current Liabilities Pension obligations $ 152,210 $ 110,693 Self-insurance and other insurance reserves 87,680 54,122 Postretirement medical benefit obligations 30,931 28,516 Income tax reserves 14,162 9,140 Other (4) 124,048 130,293 Other non-current liabilities $ 409,031 $ 332,764 (1) Represents advances to our proportionately consolidated ventures and advances from our equity method and proportionately consolidated ventures as discussed in Note 8 . (2) Represents various assets that are each individually less than 5% of total current assets, including income tax receivables and prepaid items. (3) Represents various accruals that are each individually less than 5% of total current liabilities, including accruals for non-contract payables, taxes other than income taxes, country-specific employee benefits, operating lease obligations, derivatives, and medical and legal obligations. (4) Represents various accruals that are each individually less than 5% of total liabilities, including accruals for non-contract payables, taxes other than income taxes, operating lease obligations, deferred rent, and country-specific employee benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our outstanding debt at December 31, 2016 and 2015 was as follows: December 31, 2016 2015 Current Revolving facility and other short-term borrowings $ 407,500 $ 653,000 Current maturities of long-term debt 506,250 150,000 Less: unamortized debt issuance costs (2,340 ) (2,129 ) Current maturities of long-term debt, net of unamortized debt issuance costs 503,910 147,871 Current debt, net of unamortized debt issuance costs $ 911,410 $ 800,871 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus a floating margin) $ 300,000 $ 450,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus a 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 (5,827 ) (8,168 ) Less: current maturities of long-term debt (506,250 ) (150,000 ) Long-term debt, net of unamortized debt issuance costs $ 1,287,923 $ 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 has financial and restrictive covenants described further below. 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 limitation for dividend payments and share repurchases, 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 ( 3.75% and 1.00% , respectively at December 31, 2016 ), or LIBOR plus an applicable floating margin ( 0.77% and 2.00% , respectively at December 31, 2016 ). At December 31, 2016 , we had $100,000 of outstanding borrowings under the facility and $78,251 of outstanding letters of credit under the facility (including $4,680 associated with our discontinued Technology Operations and none of which were financial letters of credit), providing $1,171,749 of available capacity. During 2016 , our weighted average interest rate on borrowings under the facility was approximately 2.3% , 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 described further below. 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 ( 3.75% and 1.00% , respectively at December 31, 2016 ), or LIBOR plus an applicable floating margin ( 0.77% and 2.00% , respectively at December 31, 2016 ). At December 31, 2016 , we had $157,500 of outstanding borrowings and $7,630 of outstanding letters of credit under the facility (including $4,762 associated with our discontinued Technology Operations and including $2,757 of financial letters of credit), providing $634,870 of available capacity. During 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 $4,561,950 , of which $563,000 may be utilized for borrowings. At December 31, 2016 , we had $150,000 of outstanding borrowings and $1,635,357 of outstanding letters of credit under these facilities (including $25,044 associated with our discontinued Capital Services Operations and $69,117 associated with our discontinued Technology Operations), providing $2,776,593 of available capacity, of which $413,000 may be utilized for borrowings. During 2016 , our weighted average interest rate on borrowings under the facilities was approximately 1.6% . Term Loans —At December 31, 2016 , we had $300,000 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 ( 0.77% and 2.00% , respectively at December 31, 2016 ). However, we continue to utilize an interest rate swap to hedge against $290,375 of the outstanding Term Loan, which resulted in a weighted average interest rate of approximately 2.3% during 2016 , inclusive of the applicable floating margin. The balance of the Term Loan was paid February 13, 2017 . The Term Loan has financial and restrictive covenants described further below. At December 31, 2016 , we had $500,000 outstanding on a five -year, $500,000 unsecured term loan (the “Second Term Loan”) with BofA as administrative agent. 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 2016 , our weighted average interest rate on the Second Term Loan was approximately 2.3% , 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 described further below. 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 described further below. 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 described further below. Compliance and Other —On February 24, 2017 , and effective for the period ended December 31, 2016, we amended our Revolving Facility, Second Revolving Facility, Second Term Loan, Senior Notes and Second Senior Notes. The amendments adjusted our maximum leverage ratio from 3.00 to 3.50 and our minimum net worth from $1,736,651 to $1,201,507 . Our maximum leverage ratio will decrease to 3.00 on December 31, 2017, or 45 days subsequent to the closing of the sale of our Capital Services operating group (the “Closing Date”) as described in Note 5 , if earlier. Our required fixed charge ratio remained at 1.75 . The amendments also reduce our Revolving Facility from $1,350,000 to $1,150,000 at the Closing Date. Our amended restrictive covenants continue to include a 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 ); however, share repurchases and acquisitions are not allowed if our leverage ratio exceeds 3.00 . The amendments to our Senior Notes and Second Senior Notes also include other provisions relating to maintaining our leverage ratio and credit profile. At December 31, 2016, we were in compliance with all our amended financial and restrictive covenants with a leverage ratio of 3.10 , a fixed charge coverage ratio of 3.61 , and net worth of $1,413,538 . During 2016 , maximum outstanding borrowings under our revolving credit and other facilities were approximately $1,444,000 . In addition to providing letters of credit, we also issue surety bonds in the ordinary course of business to support our contract performance. At December 31, 2016 , we had $826,383 of outstanding surety bonds (including $393,250 associated with our discontinued Capital Services Operations and $4,404 associated with our discontinued Technology Operations). Capitalized interest was insignificant for 2016 , 2015 and 2014 . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Derivatives Foreign Currency Exchange Rate Derivatives —At December 31, 2016 , the notional value of our outstanding forward contracts to hedge certain foreign exchange-related operating exposures was approximately $139,100 . These contracts vary in duration, maturing up to five 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. Forward points, which are deemed to be an ineffective portion of the hedges, are recognized within cost of revenue and are not material. Interest Rate Derivatives— We continue to utilize a swap arrangement to hedge against interest rate variability associated with $290,375 of our outstanding $300,000 Term Loan. The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through December 31, 2016 . Accordingly, changes in the fair value of the swap arrangement are included 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 December 31, 2016 or 2015 . The following table presents the fair value of our foreign currency exchange rate derivatives and interest rate derivatives at December 31, 2016 and 2015 , respectively, by valuation hierarchy and balance sheet classification: December 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 $ — $ 1,146 $ — $ 1,146 $ — $ 3,344 $ — $ 3,344 Other non-current assets — 82 — 82 — 180 — 180 Total assets at fair value $ — $ 1,228 $ — $ 1,228 $ — $ 3,524 $ — $ 3,524 Derivative Liabilities Other current liabilities $ — $ (3,509 ) $ — $ (3,509 ) $ — $ (7,568 ) $ — $ (7,568 ) Other non-current liabilities — (725 ) — (725 ) — (607 ) — (607 ) Total liabilities at fair value $ — $ (4,234 ) $ — $ (4,234 ) $ — $ (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 December 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 and Second Senior Notes are categorized within level 2 of the valuation hierarchy. Our Senior Notes had a total fair value of approximately $785,700 and $772,600 at December 31, 2016 and 2015 , respectively, based on current market rates for debt with similar credit risk and maturities. Our Second Senior Notes had a total fair value of approximately $206,400 and $203,500 at December 31, 2016 and 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 December 31, 2016 and 2015 : Other Current and Non-Current Assets Other Current and Non-Current Liabilities December 31, December 31, December 31, December 31, Derivatives designated as cash flow hedges Interest rate $ 49 $ 471 $ — $ (192 ) Foreign currency 109 944 (536 ) (1,858 ) Fair value $ 158 $ 1,415 $ (536 ) $ (2,050 ) Derivatives not designated as cash flow hedges Foreign currency $ 1,070 $ 2,109 $ (3,698 ) $ (6,125 ) Fair value $ 1,070 $ 2,109 $ (3,698 ) $ (6,125 ) Total fair value $ 1,228 $ 3,524 $ (4,234 ) $ (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 December 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 $ 49 $ — $ 49 $ — $ — $ 49 Foreign currency 1,179 — 1,179 (245 ) — 934 Total assets $ 1,228 $ — $ 1,228 $ (245 ) $ — $ 983 Derivative Liabilities Interest rate $ — $ — $ — $ — $ — $ — Foreign currency (4,234 ) — (4,234 ) 245 — (3,989 ) Total liabilities $ (4,234 ) $ — $ (4,234 ) $ 245 $ — $ (3,989 ) 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 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) Years Ended December 31, 2016 2015 2016 2015 Derivatives designated as cash flow hedges Interest rate $ (740 ) $ (2,520 ) $ (510 ) $ (1,769 ) Foreign currency (304 ) (1,020 ) (835 ) (4,117 ) Total $ (1,044 ) $ (3,540 ) $ (1,345 ) $ (5,886 ) (1) Net unrealized losses totaling approximately $100 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 2016 and 2015 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Years Ended December 31, 2016 2015 Derivatives not designated as cash flow hedges Foreign currency $ (15,287 ) $ 7,225 Total $ (15,287 ) $ 7,225 |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |
RETIREMENT BENEFITS | RETIREMENT BENEFITS Defined Contribution Plans We sponsor multiple defined contribution plans for eligible employees with various features, including voluntary employee pre-tax and Roth-based contributions, and Company matching and other contributions. During 2016 , 2015 and 2014 , we expensed $57,495 , $40,220 and $50,107 , respectively, for these plans. In addition, we sponsor multiple defined contribution plans that cover eligible employees for which we do not provide contributions. The cost of these plans was not significant to us in 2016 , 2015 or 2014 . Defined Benefit Pension and Other Postretirement Plans We sponsor various defined benefit pension plans covering eligible employees and provide specific post retirement benefits for eligible retired U.S. employees and their dependents through health care and life insurance benefit programs. These plans may be changed or terminated by us at any time. The following tables present combined information for our defined benefit pension and other postretirement plans: Components of Net Periodic Benefit Cost Pension Plans Other Postretirement Plans 2016 2015 2014 2016 2015 2014 Service cost $ 8,531 $ 9,757 $ 8,251 $ 704 $ 791 $ 1,037 Interest cost 21,668 21,949 31,350 1,361 1,545 2,279 Expected return on plan assets (25,193 ) (27,136 ) (34,887 ) — — — Amortization of prior service credits (606 ) (609 ) (468 ) — — — Recognized net actuarial losses (gains) 5,074 6,855 4,104 (3,361 ) (2,696 ) (863 ) Net periodic benefit cost (income) $ 9,474 $ 10,816 $ 8,350 $ (1,296 ) $ (360 ) $ 2,453 Change in Projected Benefit Obligation Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Projected benefit obligation at beginning of year $ 767,456 $ 878,003 $ 30,948 $ 51,458 Service cost 8,531 9,757 704 791 Interest cost 21,668 21,949 1,361 1,545 Actuarial loss (gain) (1) 120,699 (42,357 ) 2,702 (20,863 ) Plan participants’ contributions 2,657 2,649 502 452 Benefits paid (34,298 ) (30,878 ) (2,810 ) (2,435 ) Currency translation (2) (71,365 ) (71,667 ) — — Projected benefit obligation at end of year $ 815,348 $ 767,456 $ 33,407 $ 30,948 Change in Plan Assets Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Fair value of plan assets at beginning of year $ 668,177 $ 738,580 $ — $ — Actual return on plan assets 75,241 880 — — Benefits paid (34,298 ) (30,878 ) (2,810 ) (2,435 ) Employer contributions (3) 15,757 15,978 2,308 1,983 Plan participants’ contributions 2,657 2,649 502 452 Currency translation (2) (63,696 ) (59,032 ) — — Fair value of plan assets at end of year $ 663,838 $ 668,177 $ — $ — Funded status $ (151,510 ) $ (99,279 ) $ (33,407 ) $ (30,948 ) Balance Sheet Position Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Prepaid benefit cost within other non-current assets $ 2,798 $ 13,581 $ — $ — Accrued benefit cost within other current liabilities (2,098 ) (2,167 ) (2,476 ) (2,432 ) Accrued benefit cost within other non-current liabilities (152,210 ) (110,693 ) (30,931 ) (28,516 ) Net funded status recognized $ (151,510 ) $ (99,279 ) $ (33,407 ) $ (30,948 ) Unrecognized net prior service credits $ (3,101 ) $ (3,801 ) $ — $ — Unrecognized net actuarial losses (gains) 183,282 131,085 (25,508 ) (31,571 ) Accumulated other comprehensive loss (income), before taxes (4) $ 180,181 $ 127,284 $ (25,508 ) $ (31,571 ) (1) The actuarial pension plan loss for 2016 was primarily associated with a decrease in discount rate assumptions for our pension plans. The actuarial pension plan gain for 2015 was primarily associated with an increase in the discount rate assumptions for our pension plans. The actuarial other postretirement plan gain for 2015 was primarily associated with an increase in the discount rate assumptions and a decrease in the percent of retiring employees electing medical coverage for our other postretirement plan. (2) The currency translation loss for 2016 and 2015 was primarily associated with the strengthening of the U.S. Dollar against the currencies associated with our international pension plans, primarily the Euro and British Pound. (3) During 2017 , we expect to contribute approximately $15,900 and $2,500 to our pension and other postretirement plans, respectively. (4) During 2017 , we expect to recognize approximately $(600) and $4,700 of previously unrecognized net prior service pension credits and net actuarial pension losses, respectively. Accumulated Benefit Obligation —At December 31, 2016 and 2015 , the accumulated benefit obligation for all defined benefit pension plans was $799,619 and $768,127 , respectively. The following table includes summary information for those defined benefit plans with an accumulated benefit obligation in excess of plan assets: December 31, 2016 2015 Projected benefit obligation $ 704,709 $ 657,027 Accumulated benefit obligation $ 688,980 $ 657,698 Fair value of plan assets $ 550,399 $ 544,168 Plan Assumptions —The following table presents the weighted-average assumptions used to measure our defined benefit pension and other postretirement plans: Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 2.13 % 2.99 % 4.15 % 4.47 % Rate of compensation increase (1) 2.35 % 2.35 % n/a n/a Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, Discount rate 2.99 % 2.68 % 4.47 % 4.13 % Expected long-term rate of return on plan assets (2) 3.93 % 3.86 % n/a n/a Rate of compensation increase (1) 2.35 % 2.35 % n/a n/a (1) The rate of compensation increase relates solely to the defined benefit plans that factor compensation increases into the valuation. (2) The expected long-term rate of return on plan assets was derived using historical returns by asset category and expectations of future performance. Benefit Payments —The following table includes the expected defined benefit and other postretirement plan payments for the next 10 years: Year Pension Plans Other Postretirement Plans 2017 $ 34,882 $ 2,476 2018 $ 30,966 $ 2,471 2019 $ 31,128 $ 2,446 2020 $ 31,789 $ 2,408 2021 $ 32,398 $ 2,337 2022-2026 $ 169,850 $ 10,820 Plan Assets —Our investment strategy for defined benefit plan assets seeks to optimize the proper risk-return relationship considered appropriate for each respective plan’s investment goals, using a global portfolio of various asset classes diversified by market segment, economic sector and issuer. The primary goal is to optimize the asset mix to fund future benefit obligations, while managing various risk factors and each plan’s investment return objectives. Our defined benefit plan assets in the U.S. are invested in well-diversified portfolios of equity (including U.S. large, mid and small-capitalization and international equities) and fixed income securities (including corporate and government bonds). Non-U.S. defined benefit plan assets are similarly invested in well-diversified portfolios of equity, fixed income and other securities. At December 31, 2016 , our target weighted-average asset allocations by asset category were: equity securities ( 35% - 40% ), fixed income securities ( 60% - 65% ), and other investments ( 0% - 5% ). Our pension assets are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. Assets that are valued using quoted prices are classified within level 1 of the valuation hierarchy, assets that are valued using internally-developed models that use, as their basis, readily observable market parameters, are classified within level 2 of the valuation hierarchy, and assets that are valued based upon models with significant unobservable market parameters are classified within level 3 of the valuation hierarchy. The following tables present the fair value of our plan assets by investment category and valuation hierarchy level at December 31, 2016 and 2015 : December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Equity Securities: Global Equities and Cash $ 3,259 $ — $ — $ 3,259 International Funds (1) — 148,794 — 148,794 Emerging Markets Growth Funds — 17,046 — 17,046 U.S. Equity Funds — 13,767 — 13,767 Fixed Income Securities: International Government Bonds (2) — 169,781 — 169,781 International Corporate Bonds (3) — 102,866 — 102,866 International Mortgage Funds (4) — 58,017 — 58,017 All Other Fixed Income Securities (5) — 46,537 — 46,537 Other Investments: Asset Allocation Funds (6) — 103,771 — 103,771 Total Assets at Fair Value $ 3,259 $ 660,579 $ — $ 663,838 December 31, 2015 Level 1 Level 2 Level 3 Total Asset Category Equity Securities: Global Equities and Cash $ 2,278 $ — $ — $ 2,278 International Funds (1) — 161,032 — 161,032 U.S. Equity Funds — 20,158 — 20,158 Emerging Markets Growth Funds — 15,505 — 15,505 Fixed Income Securities: International Government Bonds (2) — 238,165 — 238,165 International Corporate Bonds (3) — 88,463 — 88,463 International Mortgage Funds (4) — — — — All Other Fixed Income Securities (5) — 63,085 — 63,085 Other Investments: Asset Allocation Funds (6) — 79,491 — 79,491 Total Assets at Fair Value $ 2,278 $ 665,899 $ — $ 668,177 The following provides descriptions for plan asset categories with significant balances in the tables above: (1) Investments in various funds that track international indices. (2) Investments in predominately EU government securities and U.K. Treasury securities with credit ratings primarily AAA. (3) Investments in European and U.K. fixed interest securities with credit ratings of primarily BBB and above. (4) Investments in international mortgage funds. (5) Investments predominantly in various international fixed income obligations that are individually insignificant. (6) Investments in fixed income securities, equities and alternative asset classes, including commodities and property assets. Health Care Cost Inflation —As noted above, we provide specific postretirement health care benefits for eligible retired U.S. employees and their dependents. Eligible current and future retirees are covered by a defined fixed dollar benefit, under which our costs for each participant are fixed based upon prior years of employee service. Since 2011, new employees are not eligible for these post-retirement health care benefits. Additionally, there is a closed group of retirees for which we assume some or all of the cost of coverage. For this group, health care cost trend rates are projected at annual rates ranging from 6.0% in 2017 down to 5.0% in 2021 and beyond. A change in the assumed health care cost trends by one percentage point is estimated to have an immaterial impact on the total service and interest cost components of net postretirement health care cost for 2016 and the accumulated postretirement benefit obligation at December 31, 2016 . Multi-Employer Pension Plans —We contribute to certain union sponsored multi-employer defined benefit pension plans in the U.S. and Canada. Benefits under these plans are generally based upon years of service and compensation levels. Under U.S. legislation regarding such pension plans, the risks of participation are different than single-employer pension plans as (1) assets contributed to the plan by a company may be used to provide benefits to participants of other companies, (2) if a participating company discontinues contributions to a plan, other participating companies may have to cover any unfunded liability that may exist, and (3) a company is required to continue funding its proportionate share of a plan’s unfunded vested benefits in the event of withdrawal (as defined by the legislation) from a plan or plan termination. The following table provides additional information regarding our significant multi-employer defined benefit pension plans, including the funding level of each plan (or zone status, as defined by the Pension Protection Act), whether actions to improve the funding level of the plan have been implemented, where required (a funding improvement plan (“FIP”) or rehabilitation plan (“RP”), and our contributions to each plan and total contributions for 2016 , 2015 and 2014 , among other disclosures: EIN/Plan Number Plan Year End Pension Protection Act (% Funded) (1) FIP/RP Plan (1) Total Company Contributions (2) Expiration Date of Collective- Bargaining Agreement (3) Pension Fund 2016 2015 2016 2015 2014 Boilermaker-Blacksmith National Pension Trust 48-6168020-001 12/31 65%-80% 65%-80% Yes $ 26,375 $ 23,079 $ 20,602 Various Plumbers and Pipefitters National Pension Fund 52-6152779-001 6/30 65%-80% 65%-80% Yes 2,241 2,144 1,176 Various Utah Pipe Trades Pension Trust Fund 51-6077569-001 12/31 >80% >80% No 3,372 5,522 664 07/19 Twin City Carpenters and Joiners Pension Fund 41-6043137-001 12/31 65%-80% 65%-80% Yes 1,295 5,469 6,010 04/19 Twin City Ironworkers Pension Plan 41-6084127-001 12/31 >80% >80% No 731 2,102 2,791 04/19 Middle Tennessee Carpenters and Millwrights Pension Fund (4) 62-6101275-001 4/30 >80% >80% No — 6,524 2,881 Various Southern Ironworkers Pension Fund (4) 59-6227091-001 12/31 >80% >80% No — 3,458 1,191 Various Plumbers and Steamfitters Local 150 Pension Fund (4) 58-6116699-001 12/31 >80% >80% No — 3,510 1,502 Various Boilermakers’ National Pension Plan (Canada) 366708 12/31 N/A N/A N/A 6,709 8,645 10,795 04/19 All Other (5) 19,216 19,110 13,477 Total $ 59,939 $ 79,563 $ 61,089 (1) Pension Protection Act Zone Status and FIP/RP plans are applicable to our U.S.-registered plans only, as these terms are not defined within Canadian pension legislation. In the U.S., plans funded less than 65% are in the red zone, plans funded at least 65% , but less than 80% are in the yellow zone, and plans funded at least 80% are in the green zone. The requirement for FIP or RP plans in the U.S. is based on the funding level or zone status of the applicable plan. (2) Our 2016 contributions as a percentage of total plan contributions were not available for any of our plans. For 2015 and 2014 , our contributions to the Utah Pipe Trades Pension Trust Fund, the Twin City Carpenters and Joiners Pension Fund, the Twin City Ironworkers Pension Plan, the Southern Ironworkers Pension Fund, the Plumbers and Steamfitters Local 150 Pension Fund and the Boilermakers’ National Pension Plan (Canada) each exceeded 5% of total plan contributions. The level of our contributions to each plan noted above varies from period to period based upon the level of work being performed that is covered under the applicable collective-bargaining agreement. (3) The expiration dates of our labor agreements associated with the plans noted as “Various” above vary based upon the duration of the applicable projects. (4) The contributions in 2015 and 2014 were associated with plans that were included with our former Nuclear Operations, which were sold on December 31, 2015. (5) Our remaining contributions are to various U.S. and Canadian plans, which are individually immaterial. We also contribute to our multi-employer plans for annuity benefits covered under the defined contribution portion of the plans as well as health benefits. We made contributions to our multi-employer plans of $49,932 , $57,364 and $45,977 during 2016 , 2015 and 2014 , respectively, for these additional benefits. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases —Certain facilities and equipment, including project-related field equipment, are rented under operating leases that expire at various dates through 2035. Rent expense for operating leases was $90,113 , $123,805 and $118,199 for 2016 , 2015 and 2014 , respectively. Future minimum payments under non-cancelable operating leases having initial terms of one year or more are as follows: Year Amount 2017 $ 56,948 2018 44,156 2019 36,362 2020 28,936 2021 23,835 Thereafter 89,761 Total $ 279,998 Certain lease agreements contain escalation provisions based upon specific future inflation indices which could impact the future minimum payments presented above. The costs related to leases with an initial term of less than one year have been reflected in rent expense but have been excluded from the future minimum payments presented above. Legal Proceedings General —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 results of operations, financial position or cash flow. See Note 17 for additional discussion of claims associated with our projects. Project Arbitration Matter —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 approximately $231,000 as of December 31, 2016 , are contractually due under the provisions of our contract and are recoverable, but have been classified as a non-current asset on our Balance Sheet as we do not anticipate collection within the next year. We do not believe a risk of material loss is probable related to this matter, and accordingly, no amounts have been accrued. While it is possible that a loss may be incurred, we are unable to estimate the range of potential loss, if any. Further, we have asserted counterclaims for our outstanding receivables. Dispute Related to Sale of Nuclear Operations —As discussed further in Note 4 , on December 31, 2015, we sold our Nuclear Operations to WEC. In connection with the transaction, a customary post-closing purchase price adjustment mechanism was negotiated between CB&I and WEC (the “Parties”) to account for any difference between target working capital and actual working capital as finally determined. On April 28, 2016, WEC delivered to us a purported closing statement estimating closing working capital to be negative $976,506 , which was $2,150,506 less than target working capital. In contrast, we calculated closing working capital to be $1,601,805 , which is $427,805 greater than target working capital. On July 21, 2016, we filed a complaint against WEC in the Court of Chancery in the State of Delaware (the “Court”) seeking a declaration that WEC has no remedy for the vast majority of its claims and requesting an injunction barring WEC from bringing such claims. On December 2, 2016, the Court granted WEC’s motion for judgment on the pleadings and dismissed our complaint, stating that the dispute should follow the dispute resolution process as set forth in the sales agreement. We have filed an appeal of the Court’s ruling to the Delaware Supreme Court which is now in the briefing stages. The Parties have selected an independent auditor for the dispute resolution process and we must simultaneously move forward with this process while the appeal is pursued. We do not believe a risk of material loss is probable related to this matter, and accordingly, no amounts have been accrued. While it is possible that a loss may be incurred, we are unable to estimate the range of potential loss, if any. We intend to vigorously pursue this litigation and our rights under the purchase agreement. 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 December 31, 2016 , we have been named a defendant in lawsuits alleging exposure to asbestos involving approximately 6,000 plaintiffs and, of those claims, approximately 1,200 claims were pending and 4,800 have been closed through dismissals or settlements. Over the past several decades and through December 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 December 31, 2016 , we had approximately $9,200 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 2017 or 2018 . Letters of Credit/Surety Bonds — In the ordinary course of business, we may obtain surety bonds and letters of credit, which we provide to our customers to secure advance payment or our performance under our contracts, or in lieu of retention being withheld on our contracts. In the event of our non-performance under a contract and an advance being made by a bank pursuant to a draw on a letter of credit, the advance would become a borrowing under a credit facility and thus our direct obligation. Where a surety incurs such a loss, an indemnity agreement between the parties and us may require payment from our excess cash or a borrowing under our credit facilities. When a contract is completed, the contingent obligation terminates and the bonds or letters of credit are returned. See Note 10 for further discussion of our letters of credit and surety bonds. Insurance —We have elected to retain portions of future losses, if any, through the use of deductibles and self-insured retentions for our exposures related to third party liability and workers’ compensation. Liabilities in excess of these amounts are the responsibilities of an insurance carrier. To the extent we are self-insured for these exposures, reserves (see Note 9 ) have been provided based upon our best estimates, with input from our legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the near-term. We believe that reasonably possible losses, if any, for these matters, to the extent not otherwise disclosed and net of recorded reserves, will not have a material adverse effect on our future results of operations, financial position or cash flow. At December 31, 2016 , we had outstanding surety bonds and letters of credit of $89,743 relating to our insurance programs. Income Taxes —Income tax and associated interest and penalty 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Treasury Stock — Under Dutch law and our Articles of Association, we may hold no more than 10% of our issued share capital at any time. AOCI —The following table presents changes in AOCI, net of tax, by component, during 2016 : Year Ended December 31, 2016 Currency Translation Adjustment (1) Unrealized Fair Value Of Cash Flow Hedges Defined Benefit Pension and Other Postretirement Plans Total Balance at December 31, 2015 $ (209,281 ) $ (967 ) $ (83,792 ) $ (294,040 ) OCI before reclassifications (55,281 ) 33 (48,833 ) (104,081 ) Amounts reclassified from AOCI — 721 1,784 2,505 Net OCI (55,281 ) 754 (47,049 ) (101,576 ) Balance at December 31, 2016 $ (264,562 ) $ (213 ) $ (130,841 ) $ (395,616 ) (1) During 2016 , the currency translation adjustment component of AOCI was unfavorably impacted by net movements in the Australian Dollar, British Pound, 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 2016 : Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 510 Foreign currency derivatives (cost of revenue) 835 Total before tax $ 1,345 Tax (624 ) Total net of tax $ 721 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits for continuing operations $ (606 ) Recognized net actuarial losses for continuing operations 1,713 Amortization of prior service credits for discontinued operations $ (11 ) Recognized net actuarial losses for discontinued operations 645 Total before tax $ 1,741 Tax 43 Total net of tax $ 1,784 (1) See Note 11 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 12 for further discussion of our defined benefit and other postretirement plans, including the components of net periodic benefit cost. Other — Changes in common stock, APIC and treasury stock during 2016 and 2015 primarily relate to activity associated with our stock-based compensation plans and share repurchases. |
EQUITY-BASED INCENTIVE PLANS
EQUITY-BASED INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED INCENTIVE PLANS | EQUITY-BASED INCENTIVE PLANS General — 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. Our Incentive Plans are administered by the Organization and Compensation Committee of our Supervisory Board, which selects those employees eligible to receive awards and determines the number of shares or stock options subject to each award, as well as the terms, conditions, performance measures, and other provisions of the award. Compensation expense related to our Incentive Plans was $36,921 , $53,086 and $64,613 for 2016 , 2015 and 2014 , respectively (including $2,374 , $4,203 and $4,555 , respectively, associated with our discontinued Capital Services Operations and $3,862 , $4,475 and $6,267 , respectively, associated with our discontinued Technology Operations). At December 31, 2016 , 5,979 authorized shares remained available under our Incentive Plans for future RSU, performance based share, or stock option grants. Under our employee stock purchase plan (“ESPP”), employees may make quarterly purchases of shares at a discount through regular payroll deductions for up to 8% of their compensation. The shares are purchased at 85% of the closing price per share on the first trading day following the end of the calendar quarter. Compensation expense related to our ESPP, representing the difference between the fair value on the date of purchase and the price paid, was $2,499 , $3,042 and $3,143 for 2016 , 2015 and 2014 , respectively (including $418 , $535 and $583 , respectively, associated with our discontinued Capital Services Operations and $291 , $316 and $239 , respectively, associated with our discontinued Technology Operations). At December 31, 2016 , 2,757 authorized shares remained available for purchase under the ESPP. Total stock-based compensation expense for our Incentive Plans and ESPP was $39,420 , $56,128 and $67,756 for 2016 , 2015 and 2014 , respectively (including $2,792 , $4,738 and $5,138 , respectively, associated with our discontinued Capital Services Operations and $4,153 , $4,791 and $6,506 , respectively, associated with our discontinued Technology Operations). At December 31, 2016 , there was $44,540 of unrecognized compensation cost related to share-based grants (including $4,437 associated with our discontinued Capital Services Operations and $3,003 associated with our discontinued Technology Operations), which is expected to be recognized over a weighted-average period of 1.7 years. We receive a tax deduction during the period in which certain options are exercised, generally for the difference in the option exercise price and the price of the shares at the date of exercise (“intrinsic value”). Additionally, we receive a tax deduction upon the vesting of RSUs and performance based shares for the price of the shares at the date of vesting. Our total recognized tax benefit based on our compensation expense was $10,377 , $16,924 and $19,394 for 2016 , 2015 and 2014 , respectively (including $527 , $854 and $379 , respectively, associated with our discontinued Capital Services Operations and $477 , $680 and $776 , respectively, associated with our discontinued Technology Operations). The amount of tax deductions in excess of accumulated tax benefits recognized is reflected as a financing cash flow. RSUs — Our RSU awards may not be sold or otherwise transferred until certain restrictions have lapsed, which is generally over a four -year graded vesting period. The total initial fair value for these awards is determined based upon the market price of our stock at the grant date applied to the total number of shares that we anticipate will vest. This fair value is expensed on a straight-line basis over the vesting period, subject to retirement eligibility expense acceleration, where applicable. RSUs granted to directors vest, and are expensed, over one year. The following table presents RSU activity for 2016 : Shares Weighted-Average Grant-Date Fair Value per Share Nonvested RSUs Balance at December 31, 2015 1,385 $ 51.65 Granted 1,021 $ 33.19 Vested (492 ) $ 50.99 Forfeited (80 ) $ 41.51 Balance at December 31, 2016 1,834 $ 41.99 Directors’ RSUs Balance at December 31, 2015 28 $ 49.55 Granted 37 $ 38.18 Vested (28 ) $ 49.55 Balance at December 31, 2016 37 $ 38.18 During 2015 , 1,043 RSUs (including 28 directors’ shares subject to restrictions) were granted with a weighted-average grant-date fair value per share of $42.39 . During 2014 , 535 RSUs (including 17 directors’ shares subject to restrictions) were granted with a weighted-average grant-date fair value per share of $80.41 . The total fair value of RSUs that vested during 2016 , 2015 and 2014 was $26,469 , $28,081 and $17,093 , respectively. Performance Based Shares —Our performance based share awards are subject to the achievement of specified Company performance targets, including financial performance, stock price performance relative to industry peers or stock price performance relative to a construction industry index. • Financial Performance Based Grants —Financial performance based share awards are based upon EPS and generally vest over three years. The total initial fair value for these awards is determined based upon the market price of our stock at the grant date applied to the total number of shares that we anticipate will vest. This fair value is expensed over the vesting period based on the level of payout expected to be achieved, subject to retirement eligibility expense acceleration, where applicable. As a result of financial performance conditions met during 2016 , we recognized $2,020 of compensation expense (including $187 associated with our discontinued Capital Services Operations and $187 associated with our discontinued Technology Operations). During 2016 , 2015 and 2014 , financial performance based shares totaling 665 , 702 and 312 , respectively, were granted with a weighted-average grant-date fair value per share of $33.56 , $41.67 and $79.86 , respectively. During 2016 , upon vesting and achievement of certain performance goals, we distributed 370 financial performance based shares with a weighted-average grant-date fair value per share of $66.10 . The total fair value of financial performance based share awards that vested during 2016 , 2015 and 2014 was $24,446 , $23,463 and $50,244 , respectively. • Stock Performance Based Grants —Stock performance based share awards are based upon stock price performance relative to industry peers or a construction industry index, and generally vest over three years. The total initial fair value for these awards is determined based upon a Monte Carlo simulation value at the grant date applied to the total number of granted target shares. This fair value is expensed ratably over the vesting period, and during 2016 , we recognized $2,908 of compensation expense (including $135 associated with our discontinued Capital Services Operations and $176 associated with our discontinued Technology Operations). During 2016 , 166 stock performance based shares were granted with a weighted-average grant-date fair value per share of $37.41 and was based upon a risk-free interest rate of 0.86% , historical volatility of 38% and a remaining performance period of 2.9 years. During 2015 , 130 stock performance-based shares were granted with a weighted-average grant-date fair value per share of $37.35 and was based upon a risk-free interest rate of 1.10% , an expected dividend yield of 0.69% , historical volatility of 39% and a remaining performance period of 3.9 years (as these shares cliff vest at the end of four years). The risk-free interest rate was based on the U.S. Treasury yield curve on the grant date, expected dividend yield was based on dividend levels at the grant date, expected volatility was based on the historical volatility of our stock, and the expected life of shares granted represents the longest remaining performance period from the grant date. There were no stock performance based shares granted prior to 2015 and there were no vestings in 2016 or 2015 . Stock Options — Stock options are generally granted with an exercise price equivalent to the market price of our stock on the date of grant and expire after 10 years. Options granted to employees generally vest over a period ranging from three to seven years. The total initial fair value for option awards is determined based upon the calculated Black-Scholes fair value of each stock option at the date of grant applied to the total number of options that we anticipate will vest. This fair value is expensed on a straight-line basis over the estimated vesting period, subject to retirement eligibility expense acceleration, where applicable. There were no options granted during 2016 , 2015 or 2014 . The aggregate intrinsic value of options exercised was $533 , $1,126 and $12,218 for 2016 , 2015 and 2014 , respectively. During 2016 , we received net cash proceeds of $1,525 , and realized an actual income tax benefit of $147 , from the exercise of stock options. The following table presents stock option activity for 2016 : Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding options at December 31, 2015 680 $ 21.32 Exercised (59 ) $ 26.06 Forfeited / Expired (23 ) $ 57.38 Outstanding options at December 31, 2016 (1) 598 $ 19.47 2.0 $ 9,361 Exercisable options at December 31, 2016 575 $ 19.21 1.9 $ 9,217 (1) We estimate that 596 of these options will ultimately vest. These options have a weighted-average exercise price per share of $19.45 , a weighted-average remaining contractual life of 2.0 years and a current aggregate intrinsic value of $9,350 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Benefit (Expense) —The following table presents the sources of (loss) income before taxes and income tax benefit (expense), by tax jurisdiction for 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Sources of (Loss) Income Before Taxes U.S. $ (148,861 ) $ (1,159,645 ) $ 217,210 Non-U.S. 375,925 395,989 487,762 Total $ 227,064 $ (763,656 ) $ 704,972 Sources of Income Tax (Expense) Benefit Current income taxes U.S. Federal (1) $ 2,502 $ (1,497 ) $ (34,445 ) U.S. State (13,976 ) (74 ) (338 ) Non-U.S. (67,617 ) (64,954 ) (108,775 ) Total current income taxes $ (79,091 ) $ (66,525 ) $ (143,558 ) Deferred income taxes U.S. Federal $ 123,431 $ 259,065 $ (40,742 ) U.S. State 6,052 (7,156 ) 10,890 Non-U.S. 10,989 (30,381 ) (27,643 ) Total deferred income taxes $ 140,472 $ 221,528 $ (57,495 ) Total income tax benefit (expense) $ 61,381 $ 155,003 $ (201,053 ) (1) Tax expense of $5,395 and $4,477 , and tax benefit of $11,249 associated with share-based compensation were recorded in APIC in 2016 , 2015 and 2014 , respectively. The following is a reconciliation of income taxes at The Netherlands’ (our country of domicile) statutory rate to income tax benefit (expense) for 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Income tax (expense) benefit at statutory rate (25.0% for 2016, 2015 and 2014) $ (56,766 ) $ 190,914 $ (176,243 ) U.S. State income taxes (5,151 ) (4,700 ) (7,115 ) Non-deductible meals and entertainment (8,123 ) (8,416 ) (6,505 ) Non-U.S. valuation allowance established (10,119 ) (2,588 ) (12,551 ) Non-U.S. valuation allowance utilized 18,782 5,210 12,845 Statutory tax rate differential 14,623 118,592 (23,110 ) Branch and withholding taxes (net of tax benefit) — 659 (162 ) Unremitted earnings of subsidiaries 64,376 (10,369 ) — Noncontrolling interests 20,165 19,427 22,094 Non-deductible goodwill impairment — (158,585 ) — Non taxable interest income 18,856 — — Other, net 4,738 4,859 (10,306 ) Income tax benefit (expense) $ 61,381 $ 155,003 $ (201,053 ) Effective tax rate (27.0 )% 20.3 % 28.5 % Deferred Taxes —The principal temporary differences included in deferred income taxes reported on the December 31, 2016 and 2015 Balance Sheets were as follows: December 31, 2016 2015 Deferred Tax Assets U.S. Federal operating losses and credits $ 595,630 $ 626,232 U.S. State operating losses and credits 203,165 195,996 Non-U.S. operating losses 50,410 56,612 Contract revenue and cost 55,748 63,876 Employee compensation and benefit plan reserves 80,733 75,754 Insurance and legal reserves 16,209 25,215 Disallowed interest 117,558 124,876 Other 64,810 9,520 Total deferred tax assets $ 1,184,263 $ 1,178,081 Valuation allowance (160,568 ) (167,053 ) Net deferred tax assets $ 1,023,695 $ 1,011,028 Deferred Tax Liabilities Investment in foreign subsidiaries $ (14,644 ) $ (79,021 ) Depreciation and amortization (291,722 ) (308,619 ) Net deferred tax liabilities $ (306,366 ) $ (387,640 ) Net total deferred tax assets $ 717,329 $ 623,388 At December 31, 2016 , we did not provide deferred income taxes on temporary differences of approximately $397,000 resulting primarily from earnings of our U.S. subsidiaries and certain foreign subsidiaries which are indefinitely reinvested. The reversal of these temporary differences could result in additional tax; however, it is not practicable to estimate the amount of any unrecognized deferred income tax liabilities at this time. Deferred income taxes are provided as necessary with respect to earnings that are not indefinitely reinvested. On a periodic and ongoing basis we evaluate our DTAs and assess the appropriateness of our valuation allowances (“VA”). In assessing the need for a VA, we consider both positive and negative evidence related to the likelihood of realization of the DTAs. If, based on the weight of available evidence, our assessment indicates that it is more likely than not that a DTA will not be realized, we record a VA. Our assessments include, among other things, the value and quality of our backlog, evaluations of existing and anticipated market conditions, analysis of recent and historical operating results and projections of future results, strategic plans and alternatives for associated operations, as well as asset expiration dates, where applicable. If the factors upon which we based our assessment of realizability of our DTAs differ materially from our expectations, including future operating results being lower than our current estimates, our future assessments could be impacted and result in an increase in VA and increase in tax expense. Income tax expense for 2016 benefited by approximately $8,700 from the release of VA for our Non-U.S. net operating losses (“NOL(s)”) and by approximately $67,000 from the reversal of a deferred tax liability associated with historical earnings of a non-U.S. subsidiary for which the earnings are no longer anticipated to be subject to tax. Income tax expense for 2015 was impacted by approximately $62,600 , primarily due to the establishment of VA against U.S.-State NOLs generated in 2015 as a result of the impact of the sale of our Nuclear Operations (approximately $58,000 ). Income tax expense for 2015 also reflects the non-deductibility of the goodwill impairment for the period. At December 31, 2016 , we had total Non-U.S. NOLs of $221,500 , including $117,500 in the U.K. and $104,000 in other jurisdictions. We believe it is more likely than not that all of the U.K. NOLs will be utilized. We believe it is more likely than not that $58,500 of Non-U.S. NOLs, in jurisdictions other than the U.K., will not be utilized and have placed a VA against these NOLs. Accordingly, at December 31, 2016 , our net DTA associated with Non-U.S. NOLs was $31,600 . Excluding NOLs having an indefinite carryforward, principally in the U.K., the Non-U.S. NOLs will expire from 2017 to 2036 . At December 31, 2016 , we had U.S.-Federal NOLs of $1,567,400 . Of the U.S.-Federal NOLs, $413,100 were generated prior to 2014 and will expire in 2033 . The remaining $1,154,300 of U.S.-Federal NOLs were generated in 2015 as a result of the sale of our Nuclear Operations and will expire in 2035 . We believe it is more likely than not that all of the U.S.-Federal NOLs will be utilized. Accordingly, at December 31, 2016 , our DTA associated with U.S.-Federal NOLs was $548,600 . At December 31, 2016 , we had U.S.-State NOL DTAs of $193,100 . We believe it is more likely than not that $136,900 of the U.S.-State NOL DTAs will not be utilized and have placed a VA against these NOL DTAs. Accordingly, at December 31, 2016 , our net DTA associated with U.S.-State NOLs was $56,200 . The U.S.-State NOLs will expire from 2017 to 2036 . At December 31, 2016 , we had foreign tax credits and other tax credits of $27,400 and $29,900 , respectively. We believe it is more likely than not that the credits will be realized within the carryforward periods. These credits are subject to various expiration dates beginning in 2022. Unrecognized Income Tax Benefits —At December 31, 2016 and 2015 , our unrecognized income tax benefits totaled $14,162 and $9,140 , respectively, and we do not anticipate significant changes in this balance in the next twelve months. The following is a reconciliation of our unrecognized income tax benefits for the years ended December 31, 2016 and 2015 : Years Ended December 31, 2016 2015 Unrecognized income tax benefits at the beginning of the year $ 9,140 $ 13,458 Increase as a result of: Tax positions taken during the current period 6,038 1,313 Decreases as a result of: Lapse of applicable statute of limitations — (2,927 ) Settlements with taxing authorities (1,016 ) (2,704 ) Unrecognized income tax benefits at the end of the year (1) $ 14,162 $ 9,140 (1) If these income tax benefits were ultimately recognized, approximately $11,000 and $6,000 of the December 31, 2016 and 2015 balances, respectively, would benefit tax expense as we are contractually indemnified for the remaining balances. We have operations, and are subject to taxation, in various jurisdictions, including significant operations in the U.S., The Netherlands, Canada, the U.K., Australia, South America and the Middle East. Tax years remaining subject to examination by worldwide tax jurisdictions vary by country and legal entity, but are generally open for tax years ending after 2006 . To the extent penalties and associated interest are assessed on any underpayment of income tax, such amounts are accrued and classified as a component of income tax expense and interest expense, respectively. For 2016 , 2015 and 2014 , interest and penalties were not significant. |
UNAPPROVED CHANGE ORDERS, CLAIM
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER PROJECT MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Contractors [Abstract] | |
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER PROJECT MATTERS | UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER PROJECT MATTERS Unapproved Change Orders, Claims and Incentives —At December 31, 2016 and 2015 , we had unapproved change orders and claims included in project price totaling approximately $121,100 and $91,700 , respectively, for projects within our Engineering & Construction and Fabrication Services operating groups. At December 31, 2016 and 2015 , we also had incentives included in project price of approximately $43,000 and $91,500 , respectively, for projects in our Engineering & Construction and Fabrication Services operating groups. Of the aforementioned unapproved change orders, claims and incentives, approximately $141,100 had been recognized as revenue on a cumulative POC basis through December 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 13 for further discussion of outstanding receivables related to one of our large cost-reimbursable projects. Other Project Matters —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 2016 , significant changes in estimated margins on projects within our Engineering & Construction and Fabrication Services operating groups resulted in a decrease to our income from operations of approximately $328,000 , and significant changes in estimated margins on projects within our Engineering & Construction operating group resulted in an increase to our IFO of approximately $124,000 . For 2015 and 2014 , individual projects with significant changes in estimated margins did not have a material net impact on our income from operations. Two of the projects that resulted in a decrease to our IFO for 2016 were in a loss position at December 31, 2016 . One of the loss projects, within our Engineering & Construction operating group, was impacted primarily by lower than anticipated labor productivity and extensions of schedule during the second half of 2016 . At December 31, 2016 , the project was approximately 65% complete and had a reserve for estimated losses of approximately $49,000 . If future labor productivity differs from our current estimates, our schedule is further extended, or the project incurs schedule liquidated damages due to our inability to reach a favorable commercial resolution on such matters, the project may experience additional forecast cost increases. The other loss project, within our Fabrication Services operating group, was primarily impacted by lower than anticipated labor productivity. At December 31, 2016 , the project was approximately 75% complete and had a reserve for estimated losses of approximately $5,000 . If future labor productivity differs from our current estimates the project may experience additional forecast cost increases. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT AND RELATED INFORMATION | SEGMENT AND RELATED INFORMATION Segment Information Our management structure and internal and public segment reporting are aligned based upon the services offered by our two operating groups, which represent our reportable segments: Engineering & Construction —Engineering & Construction provides EPC services for major energy infrastructure facilities. Fabrication Services —Fabrication Services provides fabrication and erection of steel plate structures; fabrication of piping systems and process modules; and manufacturing and distribution of pipe and fittings. Our chief operating decision maker evaluates the performance of these two 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 for our continuing operations is netted against the revenue of the segment receiving the intersegment services. For 2016 , 2015 and 2014 , intersegment revenue totaled approximately $233,900 , $312,300 and $374,300 , respectively. Intersegment revenue for the aforementioned periods primarily related to services provided by our Fabrication Services operating group to our Engineering & Construction operating group. As a result of the classification of our Capital Services Operations (which is primarily comprised of our former Capital Services reportable segment) and our Technology Operations (primarily comprised of our former Technology reportable segment and our Engineered Products Operations, representing a portion of our Fabrication Services reportable segment) as discontinued operations, the information for our remaining segments presented below has been recast to reflect: 1) a reallocation of certain corporate amounts previously allocated to the Capital Services segment, Technology segment and Fabrication Services segment that were not assignable to the discontinued operations, and 2) the portions of the previously reported Capital Services segment, Technology segment and Fabrication Services segment that are not included in the Capital Services Operations or Technology Operations, and 3) the portions of our remaining two segments that were included in the Capital Services Operations and Technology Operations. In addition, revenue for the remaining segments has been recast to reflect the intersegment revenue with our Capital Services Operations and Technology Operations that was previously eliminated prior to the discontinued operations classification (approximately $297,700 , $177,000 and $121,700 for 2016, 2015 and 2014, respectively). The following table presents total revenue, depreciation and amortization, equity earnings, income (loss) from continuing operations and capital expenditures by reportable segment for 2016 , 2015 , and 2014 : Years Ended December 31, 2016 2015 2014 Revenue Engineering & Construction $ 6,206,150 $ 7,827,633 $ 7,707,400 Fabrication Services 1,922,447 2,113,284 2,553,646 Total revenue $ 8,128,597 $ 9,940,917 $ 10,261,046 Depreciation And Amortization Engineering & Construction $ 18,602 $ 49,863 $ 63,928 Fabrication Services 53,034 54,697 59,138 Total depreciation and amortization $ 71,636 $ 104,560 $ 123,066 Equity Earnings (Loss) Engineering & Construction $ 7,222 $ (3,853 ) $ (1,297 ) Fabrication Services (1,486 ) (3,812 ) (77 ) Total equity earnings (loss) $ 5,736 $ (7,665 ) $ (1,374 ) Income (Loss) From Continuing Operations Engineering & Construction (1) $ 137,049 $ (892,671 ) $ 498,983 Fabrication Services 86,161 129,737 230,856 Total operating groups 223,210 (762,934 ) 729,839 Integration related costs — — (26,356 ) Total income (loss) from continuing operations $ 223,210 $ (762,934 ) $ 703,483 Capital Expenditures Engineering & Construction $ 4,476 $ 15,811 $ 46,798 Fabrication Services 32,542 42,541 49,479 Total capital expenditures $ 37,018 $ 58,352 $ 96,277 (1) As discussed further in Note 4 , during 2015 we recorded a non-cash pre-tax charge of approximately $1,505,900 within our Engineering & Construction operating group related to the sale of our Nuclear Operations. In addition, during 2016 we recorded a non-cash pre-tax charge of approximately $148,100 resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. The following table presents total assets of our continuing operations by reportable segment and discontinued operations for December 31, 2016, 2015 and 2014: December 31, 2016 2015 2014 Assets Engineering & Construction $ 3,738,303 $ 4,129,531 $ 4,651,080 Fabrication Services 2,114,637 2,295,523 1,997,414 Total assets of continuing operations 5,852,940 6,425,054 6,648,494 Assets of discontinued Technology Operations (Note 5) 1,109,604 1,151,384 1,076,585 Assets of discontinued Capital Services Operations (Note 5) 876,876 1,615,622 1,644,751 Total assets $ 7,839,420 $ 9,192,060 $ 9,369,830 Geographic Information The following table presents total revenue by country for those countries with revenue in excess of 10% of consolidated revenue during a given year based upon the location of the applicable projects: Years Ended December 31, 2016 2015 2014 Revenue by Country United States $ 5,478,820 $ 6,045,430 $ 4,433,397 Australia 1,744,055 2,168,737 2,495,185 Colombia 26,329 456,850 1,080,093 Other (1) 879,393 1,269,900 2,252,371 Total revenue $ 8,128,597 $ 9,940,917 $ 10,261,046 (1) Revenue earned in other countries, including The Netherlands (our country of domicile), was not individually greater than 10% of our consolidated revenue in 2016 , 2015 or 2014 . Our long-lived assets are primarily goodwill, other intangible assets and property and equipment. At December 31, 2016 , 2015 and 2014 , approximately 75% , 75% and 75% of property and equipment were located in the U.S., respectively, while our remaining assets were strategically located throughout the world. Our long-lived assets attributable to operations in The Netherlands were not significant at December 31, 2016 , 2015 or 2014 . Significant Customers For 2016 , 2015 and 2014 , revenue for a customer in our Engineering & Construction and Fabrication Services operating groups was approximately $1,136,000 (approximately 14% of consolidated 2016 revenue), approximately $1,647,000 (approximately 17% of consolidated 2015 revenue), and approximately $1,956,000 (approximately 19% of consolidated 2014 revenue), respectively. In addition, for 2016 , revenue for two other customers in our Engineering & Construction operating group were approximately $1,605,000 (approximately 20% of consolidated 2016 revenue) and approximately $1,099,000 (approximately 14% of consolidated 2016 revenue). In addition, for 2015 , revenue for another customer in our Engineering & Construction operating group was approximately $1,179,000 (approximately 12% of consolidated 2015 revenue). In addition, for 2014 , revenue for another customer in our Engineering & Construction operating group was approximately $1,081,000 (approximately 11% of consolidated 2014 revenue). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Discontinued Operations —On February 27, 2017, we entered into the CS Agreement with CSVC, under which CSVC agreed to acquire our Capital Services Operations (primarily comprised of our former Capital Services reportable segment). We completed the sale of the Capital Services Operations on June 30, 2017. We considered the Capital Services Operations to be a discontinued operation in the first quarter 2017, as the divestiture represented a strategic shift and would have a material effect on our operations and financial results. In the July 2017, we initiated a plan to market and sell our Technology Operations (primarily comprised of our former Technology reportable segment and our Engineered Products Operations, representing a portion of our Fabrication Services reportable segment). We considered the Technology Operations to be a discontinued operation in the third quarter 2017 as the anticipated divestiture represented a strategic shift and would have a material effect on our operations and financial results. Financial information and disclosures for all periods presented have been recast on a retrospective basis as if the discontinued operations criteria for the Capital Services Operations and Technology Operations were met as of December 31, 2016. See Note 2 and Note 5 for further discussion of our discontinued Capital Services Operations and Technology Operations. McDermott/CB&I Combination —On December 18, 2017, we entered into a business combination agreement (the “Combination Agreement”) with McDermott International, Inc. (“McDermott”) to combine in an all-stock transaction whereby McDermott stockholders will own approximately 53% of the combined company and our shareholders will own approximately 47% (the “Combination”). Under the terms of the agreement, our shareholders would be entitled to receive 2.47221 shares of McDermott common stock for each share of our common stock (or 0.82407 shares if McDermott effects a planned three-to-one reverse stock split prior to closing), together with cash in lieu of fractional shares and subject to any applicable withholding taxes. As a result of the Combination Agreement, we suspended our previous plan to market and sell our Technology Operations; however, the Technology Operations are reported as a discontinued operation for purposes of the recast Financial Statements and accompanying notes to the Financial Statements as the Combination Agreement was effected subsequent to the filing of our 2017 third quarter Form 10-Q and this recast information is being provided prior to the filing of our 2017 Form 10-K. Debt Compliance —On February 24, 2017, May 8, 2017 and August 9, 2017, we entered into amendments to our senior credit facilities which adjusted certain original and amended financial and restrictive covenants, introduced new financial and restrictive covenants, waived noncompliance with certain covenants and other defaults and events of default, and initially required the consummation of the sale of our Technology Operations. On December 18, 2017, we entered into further amendments to our senior credit facilities that suspended the requirement to consummate the sale of our Technology Operations and required us to complete the above described Combination by June 30, 2018 (the “Combination Closing Deadline”). We believe we will successfully achieve the various Combination transaction milestones required by our December 18, 2017 amendments, and believe it is probable we will complete the Combination by the Combination Closing Deadline. Prior to the anticipated Combination, our plan to maintain compliance with our covenants, satisfy our debt obligations, and continue as a going concern included the Technology Sale. However, our current plan is to complete the aforementioned Combination, with no further financing alternatives beyond the Combination. Absent this plan, we would be unable to satisfy our debt obligations, raising substantial doubt regarding our ability to continue as a going concern; however, the Combination alleviates the substantial doubt. |
QUARTERLY OPERATING RESULTS (UN
QUARTERLY OPERATING RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY OPERATING RESULTS (UNAUDITED) | QUARTERLY OPERATING RESULTS (UNAUDITED) The following table presents selected unaudited consolidated financial information on a quarterly basis for 2016 and 2015 : Quarter Ended 2016 March 31 June 30 September 30 December 31 (In thousands, except per share data) Revenue $ 2,017,242 $ 2,045,594 $ 2,137,877 $ 1,927,884 Gross profit $ 194,069 $ 198,268 $ 216,983 $ 19,904 Loss on net assets sold and intangible assets impairment (1) $ — $ — $ — $ (148,148 ) Net income (loss) from continuing operations (2) $ 91,528 $ 108,062 $ 133,076 $ (44,221 ) Net income (loss) from discontinued operations 28,434 24,486 35,343 (616,531 ) Net income (loss) $ 119,962 $ 132,548 $ 168,419 $ (660,752 ) Net income (loss) from continuing operations attributable to CB&I $ 78,939 $ 99,790 $ 87,347 $ (48,790 ) Net income (loss) from discontinued operations attributable to CB&I (3) 27,986 24,049 34,413 (616,903 ) Net income (loss) attributable to CB&I $ 106,925 $ 123,839 $ 121,760 $ (665,693 ) Net income (loss) attributable to CB&I per share (Basic): Continuing operations $ 0.75 $ 0.95 $ 0.86 $ (0.49 ) Discontinued operations 0.27 0.23 0.34 (6.16 ) Total $ 1.02 $ 1.18 $ 1.20 $ (6.65 ) Net income (loss) attributable to CB&I per share (Diluted): Continuing operations $ 0.75 $ 0.94 $ 0.86 $ (0.49 ) Discontinued operations 0.26 0.23 0.34 (6.16 ) Total $ 1.01 $ 1.17 $ 1.20 $ (6.65 ) Quarter Ended 2015 March 31 June 30 September 30 December 31 (In thousands, except per share data) Revenue $ 2,405,418 $ 2,478,837 $ 2,515,855 $ 2,540,807 Gross profit $ 261,936 $ 273,567 $ 257,929 $ 275,339 Goodwill impairment (4) $ — $ — $ (453,100 ) $ — Loss on net assets sold and intangible assets impairment (4) $ — $ — $ (707,380 ) $ (345,371 ) Net income (loss) from continuing operations $ 114,026 $ 148,718 $ (766,740 ) $ (104,657 ) Net income from discontinued operations 42,723 37,170 41,186 57,613 Net income (loss) $ 156,749 $ 185,888 $ (725,554 ) $ (47,044 ) Net income (loss) from continuing operations attributable to CB&I $ 89,902 $ 132,820 $ (781,033 ) $ (122,285 ) Net income from discontinued operations attributable to CB&I 42,326 36,695 40,600 56,560 Net income (loss) attributable to CB&I $ 132,228 $ 169,515 $ (740,433 ) $ (65,725 ) Net income (loss) attributable to CB&I per share (Basic): Continuing operations $ 0.83 $ 1.22 $ (7.41 ) $ (1.17 ) Discontinued operations 0.39 0.34 0.39 0.54 Total $ 1.22 $ 1.56 $ (7.02 ) $ (0.63 ) Net income (loss) attributable to CB&I per share (Diluted): Continuing operations $ 0.82 $ 1.21 $ (7.41 ) $ (1.17 ) Discontinued operations 0.39 0.34 0.39 0.54 Total $ 1.21 $ 1.55 $ (7.02 ) $ (0.63 ) (1) In the fourth quarter 2016,we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. (2) In the fourth quarter 2016, we recorded an income tax benefit of approximately $67,000 resulting from the reversal of a deferred tax liability associated with historical earnings of a non-U.S. subsidiary for which the earnings are no longer anticipated to be subject to tax. (3) In the fourth quarter 2016, we recorded a non-cash pre-tax charge related to the partial impairment of goodwill (approximately $655,000 ) for our former Capital Services operating group, resulting from our fourth quarter annual impairment assessment. Net loss from discontinued operations attributable to CB&I reflects the non-deductibility of the goodwill impairment charge for tax purposes. (4) In 2015 , we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Consolidation | The accompanying Consolidated Financial Statements (“Financial Statements”) have been 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”). |
Consolidation | 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. Certain balances at December 31, 2015 have been reclassified within our Consolidated Balance Sheet (“Balance Sheet”) to conform to our December 31, 2016 presentation. |
Discontinued Operations | On February 27, 2017, we entered into a definitive agreement (the “CS Agreement”) with CSVC Acquisition Corp (“CSVC”), under which CSVC agreed to acquire our “Capital Services Operations” (primarily comprised of our former Capital Services reportable segment). Our Capital Services Operations provided comprehensive and integrated maintenance services, environmental engineering and remediation, construction services, program management, and disaster response and recovery services for private-sector customers and governments. We completed the sale of the Capital Services Operations on June 30, 2017 (the “Closing Date”), as described in Note 5 . We considered the Capital Services Operations to be a discontinued operation in the first quarter 2017, as the divestiture represented a strategic shift and would have a material effect on our operations and financial results. |
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. See Note 17 for discussion of projects with significant changes in estimated margins during 2016, 2015 and 2014. 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 estimates of recovery amounts; however, the ultimate resolution and amounts received could differ from these estimates. See Note 17 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 are reported on the Balance Sheets as costs and estimated earnings in excess of billings. Projects with cumulative billings in excess of costs and estimated earnings recognized to date are reported on the Balance Sheets as billings in excess of costs and estimated earnings. |
Receivables | Any uncollected billed amounts, including contract retentions, are reported as accounts receivable. At December 31, 2016 and 2015 , accounts receivable included contract retentions of approximately $72,100 and $55,400 , respectively. Contract retentions due beyond one year were approximately $37,500 at December 31, 2016 . 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 not material at December 31, 2016 and 2015 . 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 December 31, 2016 and 2015 , our allowances for doubtful accounts were not material. |
Precontract Costs | Precontract Costs —Precontract costs are generally charged to cost of revenue as incurred, but, in certain cases their recognition may be deferred if specific probability criteria are met. We had no significant deferred precontract costs at December 31, 2016 or 2015 . |
Research and Development | Research and Development —Expenditures for research and development activities are charged to cost of revenue as incurred and were $4,699 , $4,607 and $3,629 for 2016 , 2015 and 2014 , respectively. |
Other Operating Expense (Income), Net | Other Operating Expense (Income), Net — Other operating expense (income), net , generally represents (gains) losses associated with the sale or disposition of property and equipment. For 2015, other operating expense (income), net also included a foreign exchange loss of approximately $11,000 associated with the re-measurement of certain non-U.S. Dollar denominated net assets. |
Integration Related Costs | Integration Related Costs —Integration related costs were $26,356 for 2014, and primarily related to facility consolidations, including the associated accrued future lease costs for vacated facilities and unutilized capacity, personnel relocation and severance related costs, and systems integration costs. |
Depreciation Expense | Depreciation Expense —Property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, including buildings and improvements ( 10 to 40 years) and plant and field equipment ( 1 to 15 years). Renewals and betterments that substantially extend the useful life of an asset are capitalized and depreciated. Leasehold improvements are depreciated over the lesser of the useful life of the asset or the applicable lease term. Depreciation expense is primarily included within cost of revenue and was $63,830 , $84,939 and $96,209 for 2016 , 2015 and 2014 , respectively. See Note 9 for disclosure of the components of property and equipment. |
Recoverability of Goodwill and Recoverability of 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. However, to the extent market indicators of fair value become available, we consider such market indicators in our discounted cash flow analysis and determination of fair value. See Note 7 for additional discussion of our goodwill and related goodwill impairment recorded during 2016. Recoverability of Other Long-Lived Assets —We amortize our finite-lived intangible assets on a straight-line basis with lives ranging from 6 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 7 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 6 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 expense (income), net related to the re-measurement of certain non-U.S. Dollar denominated net assets during 2015, foreign currency transactional and re-measurement exchange gains (losses) are included within cost of revenue and were not material in 2016 , 2015 and 2014 . |
Financial Instruments | Financial Instruments —We utilize derivative instruments in certain circumstances to mitigate the effects of changes in foreign currency exchange rates and interest rates, as described below: • Foreign Currency Exchange Rate Derivatives —We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges are recognized within cost of revenue. • Interest Rate Derivatives —At December 31, 2016 , we continued to utilize a swap arrangement to hedge against interest rate variability associated with $290,375 of our outstanding $300,000 unsecured term loan (the “Term Loan”). The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through December 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. |
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 and penalty 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 either proportionate consolidation for both the Balance Sheet and Statement of Operations, when we meet the applicable accounting criteria to do so, or the equity method. |
New Accounting Standards | New Accounting Standards —In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current industry-specific guidance, including ASC 605-35. The new standard prescribes a five-step revenue recognition model that focuses on transfer of control and entitlement to payment when determining the amount of revenue to be recognized. The new model requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time for each of these obligations. These concepts, as well as other aspects of the ASU, may change the method and/or timing of revenue recognition for certain of our contracts, primarily associated with our fabrication and manufacturing contracts. We expect that revenue generated from our EPC and engineering services contracts will continue to be recognized over time utilizing the cost-to-cost measure of progress consistent with current practice. We also expect our revenue recognition disclosures to significantly expand due to the new qualitative and quantitative requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts. We will adopt the standard, including any updates to the standard, upon its effective date in the first quarter 2018 utilizing the modified retrospective approach. This approach will result in a cumulative adjustment to beginning equity in the first quarter 2018 for contracts impacted by the adoption of the standard. We are continuing to assess the potential impact of the new standard on our Financial Statements. 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 timing of adoption of the new standard and its potential impact 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. We will adopt the standard upon its effective date in the first quarter 2017 and do not believe it will have a material impact on our Financial Statements. In the first quarter 2016, we adopted 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. Our adoption did not have a material impact on our Financial Statements. In the first quarter 2016, we adopted 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. 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. |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Contracts In Progress | The net balances on our Balance Sheets are collectively referred to as Contracts in Progress, net and the components of these balances at December 31, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 Asset Liability Asset Liability Costs and estimated earnings on contracts in progress $ 7,852,740 $ 22,544,241 $ 10,445,182 $ 17,779,376 Billings on contracts in progress (7,522,308 ) (23,763,065 ) (10,014,140 ) (19,368,704 ) Contracts in Progress, net $ 330,432 $ (1,218,824 ) $ 431,042 $ (1,589,328 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 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: Years Ended December 31, 2016 2015 2014 Net income (loss) from continuing operations attributable to CB&I (net of $71,159, $71,943 and $90,642 of noncontrolling interests) $ 217,286 $ (680,596 ) $ 413,277 Net (loss) income from discontinued operations attributable to CB&I (net of $2,187, $2,511 and $1,876 of noncontrolling interests) (530,455 ) 176,181 130,330 Net (loss) income attributable to CB&I $ (313,169 ) $ (504,415 ) $ 543,607 Weighted average shares outstanding—basic 102,811 106,766 108,047 Effect of restricted shares/performance based shares/stock options (1) 837 — 1,045 Effect of directors’ deferred-fee shares (1) 14 — 30 Weighted average shares outstanding—diluted 103,662 106,766 109,122 Net (loss) income attributable to CB&I per share (Basic): Continuing operations $ 2.11 $ (6.37 ) $ 3.82 Discontinued operations (5.16 ) 1.65 1.21 Total $ (3.05 ) $ (4.72 ) $ 5.03 Net (loss) income attributable to CB&I per share (Diluted): Continuing operations $ 2.10 $ (6.37 ) $ 3.79 Discontinued operations (5.12 ) 1.65 1.19 Total $ (3.02 ) $ (4.72 ) $ 4.98 (1) The effect of restricted shares, performance based shares, stock options and directors’ deferred-fee shares were not included in the calculation of diluted EPS for 2015 due to the net loss from continuing operations for the period. Antidilutive shares excluded from diluted EPS were not material for 2016 and 2014 . |
DISPOSITION OF NUCLEAR OPERAT34
DISPOSITION OF NUCLEAR OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition Related Charges | A summary of the charge is as follows: Year Ended December 31, 2015 Loss on net assets sold $ 973,651 Intangible assets impairment 79,100 Loss on net assets sold and intangible assets impairment 1,052,751 Goodwill impairment 453,100 Total pre-tax charge $ 1,505,851 |
Assets Sold and Results of Nuclear Operations | The revenue and pre-tax income of our former Nuclear Operations for 2015 and 2014 was as follows: Years Ended December 31, 2015 2014 Revenue $ 2,061,167 $ 1,841,018 Pre-tax income $ 215,150 $ 151,800 The carrying values of the major classes of assets and liabilities of the discontinued Capital Services Operations within our Balance Sheets at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Cash $ 14,477 $ 14,507 Accounts receivable 239,146 274,186 Costs and estimated earnings in excess of billings 153,275 165,003 Other assets 7,834 7,876 Current assets of discontinued operations 414,732 461,572 Property and equipment, net 59,746 64,916 Goodwill (1) 229,607 884,607 Other intangible assets 148,440 165,040 Other assets 24,351 39,487 Non-current assets of discontinued operations 462,144 1,154,050 Total assets of discontinued operations $ 876,876 $ 1,615,622 Liabilities Accounts payable $ 141,028 $ 112,884 Billings in excess of costs and estimated earnings 53,986 67,287 Other liabilities 52,455 50,160 Current liabilities of discontinued operations 247,469 230,331 Other liabilities 5,388 5,921 Non-current liabilities of discontinued operations 5,388 5,921 Total liabilities of discontinued operations $ 252,857 $ 236,252 Noncontrolling interests of discontinued operations $ 6,874 $ 7,484 (1) The carrying value of goodwill for the discontinued Capital Services Operations includes the impact of a $655,000 impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Not The results of our Capital Services Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 2,211,835 $ 2,385,863 $ 2,217,369 Cost of revenue 2,063,189 2,227,041 2,051,861 Gross profit 148,646 158,822 165,508 Selling and administrative expense 51,833 50,745 46,332 Intangibles amortization 16,600 19,960 19,960 Other operating income, net (2,328 ) (1,353 ) (1,240 ) Goodwill impairment (1) 655,000 — — Integration related costs — — 8,300 Operating (loss) income from discontinued operations (572,459 ) 89,470 92,156 Interest expense (2) (24,109 ) (23,857 ) (22,372 ) Interest income 1,155 1,244 1,154 (Loss) income from discontinued operations before taxes (595,413 ) 66,857 70,938 Income tax expense (3) (23,486 ) (20,963 ) (32,051 ) Net (loss) income from discontinued operations (618,899 ) 45,894 38,887 Net income from discontinued operations attributable to noncontrolling interests (2,187 ) (2,511 ) (1,876 ) Net (loss) income from discontinued operations attributable to CB&I $ (621,086 ) $ 43,383 $ 37,011 (1) Represents the goodwill impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Capital Services Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation was based upon the anticipated amounts to be repaid. (3) Income tax expense for 2016 reflects the non-deductibility of the aforementioned $655,000 goodwill impairment charge. Cash flows for our Capital Services Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 145,643 $ 76,365 $ (52,828 ) Investing cash flows $ (6,561 ) $ (11,706 ) $ (14,222 ) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Sold and Results of Capital Services Operations | The revenue and pre-tax income of our former Nuclear Operations for 2015 and 2014 was as follows: Years Ended December 31, 2015 2014 Revenue $ 2,061,167 $ 1,841,018 Pre-tax income $ 215,150 $ 151,800 The carrying values of the major classes of assets and liabilities of the discontinued Capital Services Operations within our Balance Sheets at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Assets Cash $ 14,477 $ 14,507 Accounts receivable 239,146 274,186 Costs and estimated earnings in excess of billings 153,275 165,003 Other assets 7,834 7,876 Current assets of discontinued operations 414,732 461,572 Property and equipment, net 59,746 64,916 Goodwill (1) 229,607 884,607 Other intangible assets 148,440 165,040 Other assets 24,351 39,487 Non-current assets of discontinued operations 462,144 1,154,050 Total assets of discontinued operations $ 876,876 $ 1,615,622 Liabilities Accounts payable $ 141,028 $ 112,884 Billings in excess of costs and estimated earnings 53,986 67,287 Other liabilities 52,455 50,160 Current liabilities of discontinued operations 247,469 230,331 Other liabilities 5,388 5,921 Non-current liabilities of discontinued operations 5,388 5,921 Total liabilities of discontinued operations $ 252,857 $ 236,252 Noncontrolling interests of discontinued operations $ 6,874 $ 7,484 (1) The carrying value of goodwill for the discontinued Capital Services Operations includes the impact of a $655,000 impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Not The results of our Capital Services Operations that have been reflected within discontinued operations in our Statement of Operations for 2016 , 2015 , and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Revenue $ 2,211,835 $ 2,385,863 $ 2,217,369 Cost of revenue 2,063,189 2,227,041 2,051,861 Gross profit 148,646 158,822 165,508 Selling and administrative expense 51,833 50,745 46,332 Intangibles amortization 16,600 19,960 19,960 Other operating income, net (2,328 ) (1,353 ) (1,240 ) Goodwill impairment (1) 655,000 — — Integration related costs — — 8,300 Operating (loss) income from discontinued operations (572,459 ) 89,470 92,156 Interest expense (2) (24,109 ) (23,857 ) (22,372 ) Interest income 1,155 1,244 1,154 (Loss) income from discontinued operations before taxes (595,413 ) 66,857 70,938 Income tax expense (3) (23,486 ) (20,963 ) (32,051 ) Net (loss) income from discontinued operations (618,899 ) 45,894 38,887 Net income from discontinued operations attributable to noncontrolling interests (2,187 ) (2,511 ) (1,876 ) Net (loss) income from discontinued operations attributable to CB&I $ (621,086 ) $ 43,383 $ 37,011 (1) Represents the goodwill impairment charge recorded in the fourth quarter 2016 in connection with our annual impairment assessment (discussed in Note 7). (2) Interest expense, including amortization of capitalized debt issuance costs, was allocated to the discontinued Capital Services Operations due to a requirement to use the proceeds from the transaction to repay our debt. The allocation was based upon the anticipated amounts to be repaid. (3) Income tax expense for 2016 reflects the non-deductibility of the aforementioned $655,000 goodwill impairment charge. Cash flows for our Capital Services Operations for 2016 , 2015 and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Operating cash flows $ 145,643 $ 76,365 $ (52,828 ) Investing cash flows $ (6,561 ) $ (11,706 ) $ (14,222 ) |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Raw materials $ 58,261 $ 135,239 Work in process 48,011 54,556 Finished goods 67,545 68,333 Total $ 173,817 $ 258,128 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Goodwill by Reporting Sector | The change in goodwill by reporting segment for 2016 and 2015 was as follows: Engineering & Construction Fabrication Services Total Balance at December 31, 2014 $ 2,339,246 $ 465,415 $ 2,804,661 Impairment charges (described below) (1) (453,100 ) — (453,100 ) Amortization of tax goodwill in excess of book goodwill (3,789 ) (348 ) (4,137 ) Foreign currency translation and other (22,176 ) — (22,176 ) Balance at December 31, 2015 $ 1,860,181 $ 465,067 $ 2,325,248 Amortization of tax goodwill in excess of book goodwill (338 ) (2 ) (340 ) Foreign currency translation and other (9,570 ) — (9,570 ) Balance at December 31, 2016 $ 1,850,273 $ 465,065 $ 2,315,338 (1) At December 31, 2016 , we had approximately $453,100 of cumulative impairment losses, which were recorded in our Engineering & Construction operating group during 2015 related to the sale of our Nuclear Operations on December 31, 2015. |
Finite- Lived Intangible Assets Balances Including Weighted- Average Useful Lives | The following table presents our acquired finite-lived intangible assets at December 31, 2016 and 2015 , including the December 31, 2016 weighted-average useful lives for each major intangible asset class and in total: December 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 $ 93,700 $ (20,073 ) $ 101,686 $ (22,546 ) Process technologies 20 Years 400 (78 ) 400 (58 ) Tradenames 6 Years 15,718 (9,531 ) 15,718 (7,258 ) Total (2) 17 Years $ 109,818 $ (29,682 ) $ 117,804 $ (29,862 ) (1) Backlog and customer relationships intangibles totaling approximately $8,000 became fully amortized during 2016 and were therefore removed from the December 31, 2016 gross carrying and accumulated amortization balances above. (2) The remaining decrease in other intangibles, net during 2016 primarily related to amortization expense of approximately $7,800 . Amortization expense for our intangibles existing at December 31, 2016 is anticipated to be approximately $7,700 , $7,700 , $5,700 , $5,400 and $5,200 for 2017 , 2018 , 2019 , 2020 and 2021 , respectively. |
PARTNERING ARRANGEMENTS (Tables
PARTNERING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 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 ventures: December 31, 2016 2015 CB&I/Zachry Current assets (1) $ 260,934 $ 298,916 Non-current assets 3,204 6,689 Total assets $ 264,138 $ 305,605 Current liabilities (1) $ 379,339 $ 454,943 CB&I/Zachry/Chiyoda Current assets (1) $ 84,279 $ 82,106 Non-current assets 1,969 2,590 Total assets $ 86,248 $ 84,696 Current liabilities (1) $ 73,138 $ 86,124 CB&I/Chiyoda Current assets (1) $ 337,479 $ 424,781 Current liabilities (1) $ 150,179 $ 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 ventures 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. As summarized in Note 9 , at December 31, 2016 and 2015 , other current assets on the Balance Sheets included approximately $374,800 and $325,000 , respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $394,400 and $334,900 , respectively, related to advances to CB&I from the ventures. |
Summarized Balance Sheet Information of Variable Interest Entities | The following table presents summarized balance sheet information for our consolidated ventures: December 31, 2016 2015 CB&I/Kentz Current assets $ 68,867 $ 214,291 Current liabilities $ 87,822 $ 191,471 CB&I/AREVA Current assets $ 16,313 $ 24,269 Current liabilities $ 47,652 $ 65,674 All Other (1) Current assets $ 69,785 $ 78,492 Non-current assets 16,382 18,415 Total assets $ 86,167 $ 96,907 Current liabilities $ 7,748 $ 22,025 (1) Other ventures that we consolidate are not individually material to our financial results and are therefore aggregated as “All Other”. |
SUPPLEMENTAL BALANCE SHEET DE39
SUPPLEMENTAL BALANCE SHEET DETAIL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Property and Equipment, Other Current Assets, and Other Current and Non-current Liabilities | The components of property and equipment, other current assets, and other current and non-current liabilities at December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Property and Equipment Plant, field equipment and other $ 532,282 $ 530,433 Buildings and improvements 354,723 340,407 Land and improvements 67,182 70,481 Total property and equipment $ 954,187 $ 941,321 Accumulated depreciation (519,935 ) (469,369 ) Property and equipment, net $ 434,252 $ 471,952 Other Current Assets Advances to proportionately consolidated ventures (1) $ 374,803 $ 325,048 Other (2) 166,373 175,228 Other current assets $ 541,176 $ 500,276 Other Current Liabilities Advances from equity method and proportionately consolidated ventures (1) $ 541,432 $ 334,850 Payroll-related obligations 197,182 253,079 Income taxes payable 46,741 29,627 Self-insurance and other insurance reserves 16,206 18,104 Other (3) 177,205 202,552 Other current liabilities $ 978,766 $ 838,212 Other Non-Current Liabilities Pension obligations $ 152,210 $ 110,693 Self-insurance and other insurance reserves 87,680 54,122 Postretirement medical benefit obligations 30,931 28,516 Income tax reserves 14,162 9,140 Other (4) 124,048 130,293 Other non-current liabilities $ 409,031 $ 332,764 (1) Represents advances to our proportionately consolidated ventures and advances from our equity method and proportionately consolidated ventures as discussed in Note 8 . (2) Represents various assets that are each individually less than 5% of total current assets, including income tax receivables and prepaid items. (3) Represents various accruals that are each individually less than 5% of total current liabilities, including accruals for non-contract payables, taxes other than income taxes, country-specific employee benefits, operating lease obligations, derivatives, and medical and legal obligations. (4) Represents various accruals that are each individually less than 5% of total liabilities, including accruals for non-contract payables, taxes other than income taxes, operating lease obligations, deferred rent, and country-specific employee benefits. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Our outstanding debt at December 31, 2016 and 2015 was as follows: December 31, 2016 2015 Current Revolving facility and other short-term borrowings $ 407,500 $ 653,000 Current maturities of long-term debt 506,250 150,000 Less: unamortized debt issuance costs (2,340 ) (2,129 ) Current maturities of long-term debt, net of unamortized debt issuance costs 503,910 147,871 Current debt, net of unamortized debt issuance costs $ 911,410 $ 800,871 Long-Term Term Loan: $1,000,000 term loan (interest at LIBOR plus a floating margin) $ 300,000 $ 450,000 Second Term Loan: $500,000 term loan (interest at LIBOR plus a 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 (5,827 ) (8,168 ) Less: current maturities of long-term debt (506,250 ) (150,000 ) Long-term debt, net of unamortized debt issuance costs $ 1,287,923 $ 1,791,832 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 , respectively, by valuation hierarchy and balance sheet classification: December 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 $ — $ 1,146 $ — $ 1,146 $ — $ 3,344 $ — $ 3,344 Other non-current assets — 82 — 82 — 180 — 180 Total assets at fair value $ — $ 1,228 $ — $ 1,228 $ — $ 3,524 $ — $ 3,524 Derivative Liabilities Other current liabilities $ — $ (3,509 ) $ — $ (3,509 ) $ — $ (7,568 ) $ — $ (7,568 ) Other non-current liabilities — (725 ) — (725 ) — (607 ) — (607 ) Total liabilities at fair value $ — $ (4,234 ) $ — $ (4,234 ) $ — $ (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 December 31, 2016 and 2015 : Other Current and Non-Current Assets Other Current and Non-Current Liabilities December 31, December 31, December 31, December 31, Derivatives designated as cash flow hedges Interest rate $ 49 $ 471 $ — $ (192 ) Foreign currency 109 944 (536 ) (1,858 ) Fair value $ 158 $ 1,415 $ (536 ) $ (2,050 ) Derivatives not designated as cash flow hedges Foreign currency $ 1,070 $ 2,109 $ (3,698 ) $ (6,125 ) Fair value $ 1,070 $ 2,109 $ (3,698 ) $ (6,125 ) Total fair value $ 1,228 $ 3,524 $ (4,234 ) $ (8,175 ) |
Schedule Of Derivative Assets And Liabilities On Gross Basis And Net Settlement Basis | The following table presents our derivative assets and liabilities at December 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 $ 49 $ — $ 49 $ — $ — $ 49 Foreign currency 1,179 — 1,179 (245 ) — 934 Total assets $ 1,228 $ — $ 1,228 $ (245 ) $ — $ 983 Derivative Liabilities Interest rate $ — $ — $ — $ — $ — $ — Foreign currency (4,234 ) — (4,234 ) 245 — (3,989 ) Total liabilities $ (4,234 ) $ — $ (4,234 ) $ 245 $ — $ (3,989 ) |
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 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) Years Ended December 31, 2016 2015 2016 2015 Derivatives designated as cash flow hedges Interest rate $ (740 ) $ (2,520 ) $ (510 ) $ (1,769 ) Foreign currency (304 ) (1,020 ) (835 ) (4,117 ) Total $ (1,044 ) $ (3,540 ) $ (1,345 ) $ (5,886 ) (1) Net unrealized losses totaling approximately $100 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 Foreign Currency Derivatives Not Designated as Cash Flow Hedges | The following table presents the total value recognized in cost of revenue for 2016 and 2015 for foreign currency derivatives not designated as cash flow hedges: Amount of Gain (Loss) Recognized in Earnings Years Ended December 31, 2016 2015 Derivatives not designated as cash flow hedges Foreign currency $ (15,287 ) $ 7,225 Total $ (15,287 ) $ 7,225 |
RETIREMENT BENEFITS (Tables)
RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following tables present combined information for our defined benefit pension and other postretirement plans: Components of Net Periodic Benefit Cost Pension Plans Other Postretirement Plans 2016 2015 2014 2016 2015 2014 Service cost $ 8,531 $ 9,757 $ 8,251 $ 704 $ 791 $ 1,037 Interest cost 21,668 21,949 31,350 1,361 1,545 2,279 Expected return on plan assets (25,193 ) (27,136 ) (34,887 ) — — — Amortization of prior service credits (606 ) (609 ) (468 ) — — — Recognized net actuarial losses (gains) 5,074 6,855 4,104 (3,361 ) (2,696 ) (863 ) Net periodic benefit cost (income) $ 9,474 $ 10,816 $ 8,350 $ (1,296 ) $ (360 ) $ 2,453 |
Change in Benefit Obligation | Change in Projected Benefit Obligation Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Projected benefit obligation at beginning of year $ 767,456 $ 878,003 $ 30,948 $ 51,458 Service cost 8,531 9,757 704 791 Interest cost 21,668 21,949 1,361 1,545 Actuarial loss (gain) (1) 120,699 (42,357 ) 2,702 (20,863 ) Plan participants’ contributions 2,657 2,649 502 452 Benefits paid (34,298 ) (30,878 ) (2,810 ) (2,435 ) Currency translation (2) (71,365 ) (71,667 ) — — Projected benefit obligation at end of year $ 815,348 $ 767,456 $ 33,407 $ 30,948 |
Change in Plan Assets | Change in Plan Assets Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Fair value of plan assets at beginning of year $ 668,177 $ 738,580 $ — $ — Actual return on plan assets 75,241 880 — — Benefits paid (34,298 ) (30,878 ) (2,810 ) (2,435 ) Employer contributions (3) 15,757 15,978 2,308 1,983 Plan participants’ contributions 2,657 2,649 502 452 Currency translation (2) (63,696 ) (59,032 ) — — Fair value of plan assets at end of year $ 663,838 $ 668,177 $ — $ — Funded status $ (151,510 ) $ (99,279 ) $ (33,407 ) $ (30,948 ) Balance Sheet Position Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Prepaid benefit cost within other non-current assets $ 2,798 $ 13,581 $ — $ — Accrued benefit cost within other current liabilities (2,098 ) (2,167 ) (2,476 ) (2,432 ) Accrued benefit cost within other non-current liabilities (152,210 ) (110,693 ) (30,931 ) (28,516 ) Net funded status recognized $ (151,510 ) $ (99,279 ) $ (33,407 ) $ (30,948 ) Unrecognized net prior service credits $ (3,101 ) $ (3,801 ) $ — $ — Unrecognized net actuarial losses (gains) 183,282 131,085 (25,508 ) (31,571 ) Accumulated other comprehensive loss (income), before taxes (4) $ 180,181 $ 127,284 $ (25,508 ) $ (31,571 ) (1) The actuarial pension plan loss for 2016 was primarily associated with a decrease in discount rate assumptions for our pension plans. The actuarial pension plan gain for 2015 was primarily associated with an increase in the discount rate assumptions for our pension plans. The actuarial other postretirement plan gain for 2015 was primarily associated with an increase in the discount rate assumptions and a decrease in the percent of retiring employees electing medical coverage for our other postretirement plan. (2) The currency translation loss for 2016 and 2015 was primarily associated with the strengthening of the U.S. Dollar against the currencies associated with our international pension plans, primarily the Euro and British Pound. (3) During 2017 , we expect to contribute approximately $15,900 and $2,500 to our pension and other postretirement plans, respectively. (4) During 2017 , we expect to recognize approximately $(600) and $4,700 of previously unrecognized net prior service pension credits and net actuarial pension losses, respectively. |
Defined Benefit Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | The following table includes summary information for those defined benefit plans with an accumulated benefit obligation in excess of plan assets: December 31, 2016 2015 Projected benefit obligation $ 704,709 $ 657,027 Accumulated benefit obligation $ 688,980 $ 657,698 Fair value of plan assets $ 550,399 $ 544,168 |
Weighted-Average Assumptions Used to Measure Defined Benefit Pension and Other Postretirement Plans | The following table presents the weighted-average assumptions used to measure our defined benefit pension and other postretirement plans: Pension Plans Other Postretirement Plans 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 2.13 % 2.99 % 4.15 % 4.47 % Rate of compensation increase (1) 2.35 % 2.35 % n/a n/a Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, Discount rate 2.99 % 2.68 % 4.47 % 4.13 % Expected long-term rate of return on plan assets (2) 3.93 % 3.86 % n/a n/a Rate of compensation increase (1) 2.35 % 2.35 % n/a n/a (1) The rate of compensation increase relates solely to the defined benefit plans that factor compensation increases into the valuation. (2) The expected long-term rate of return on plan assets was derived using historical returns by asset category and expectations of future performance. |
Expected Defined Benefit Pension and Other Postretirement Plan Payments | The following table includes the expected defined benefit and other postretirement plan payments for the next 10 years: Year Pension Plans Other Postretirement Plans 2017 $ 34,882 $ 2,476 2018 $ 30,966 $ 2,471 2019 $ 31,128 $ 2,446 2020 $ 31,789 $ 2,408 2021 $ 32,398 $ 2,337 2022-2026 $ 169,850 $ 10,820 |
Plan Assets at Fair Value by Investment Category and Valuation Hierarchy Level | The following tables present the fair value of our plan assets by investment category and valuation hierarchy level at December 31, 2016 and 2015 : December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Equity Securities: Global Equities and Cash $ 3,259 $ — $ — $ 3,259 International Funds (1) — 148,794 — 148,794 Emerging Markets Growth Funds — 17,046 — 17,046 U.S. Equity Funds — 13,767 — 13,767 Fixed Income Securities: International Government Bonds (2) — 169,781 — 169,781 International Corporate Bonds (3) — 102,866 — 102,866 International Mortgage Funds (4) — 58,017 — 58,017 All Other Fixed Income Securities (5) — 46,537 — 46,537 Other Investments: Asset Allocation Funds (6) — 103,771 — 103,771 Total Assets at Fair Value $ 3,259 $ 660,579 $ — $ 663,838 December 31, 2015 Level 1 Level 2 Level 3 Total Asset Category Equity Securities: Global Equities and Cash $ 2,278 $ — $ — $ 2,278 International Funds (1) — 161,032 — 161,032 U.S. Equity Funds — 20,158 — 20,158 Emerging Markets Growth Funds — 15,505 — 15,505 Fixed Income Securities: International Government Bonds (2) — 238,165 — 238,165 International Corporate Bonds (3) — 88,463 — 88,463 International Mortgage Funds (4) — — — — All Other Fixed Income Securities (5) — 63,085 — 63,085 Other Investments: Asset Allocation Funds (6) — 79,491 — 79,491 Total Assets at Fair Value $ 2,278 $ 665,899 $ — $ 668,177 The following provides descriptions for plan asset categories with significant balances in the tables above: (1) Investments in various funds that track international indices. (2) Investments in predominately EU government securities and U.K. Treasury securities with credit ratings primarily AAA. (3) Investments in European and U.K. fixed interest securities with credit ratings of primarily BBB and above. (4) Investments in international mortgage funds. (5) Investments predominantly in various international fixed income obligations that are individually insignificant. (6) Investments in fixed income securities, equities and alternative asset classes, including commodities and property assets. |
Additional Information Regarding Significant Multi-Employer Pension Plans | The following table provides additional information regarding our significant multi-employer defined benefit pension plans, including the funding level of each plan (or zone status, as defined by the Pension Protection Act), whether actions to improve the funding level of the plan have been implemented, where required (a funding improvement plan (“FIP”) or rehabilitation plan (“RP”), and our contributions to each plan and total contributions for 2016 , 2015 and 2014 , among other disclosures: EIN/Plan Number Plan Year End Pension Protection Act (% Funded) (1) FIP/RP Plan (1) Total Company Contributions (2) Expiration Date of Collective- Bargaining Agreement (3) Pension Fund 2016 2015 2016 2015 2014 Boilermaker-Blacksmith National Pension Trust 48-6168020-001 12/31 65%-80% 65%-80% Yes $ 26,375 $ 23,079 $ 20,602 Various Plumbers and Pipefitters National Pension Fund 52-6152779-001 6/30 65%-80% 65%-80% Yes 2,241 2,144 1,176 Various Utah Pipe Trades Pension Trust Fund 51-6077569-001 12/31 >80% >80% No 3,372 5,522 664 07/19 Twin City Carpenters and Joiners Pension Fund 41-6043137-001 12/31 65%-80% 65%-80% Yes 1,295 5,469 6,010 04/19 Twin City Ironworkers Pension Plan 41-6084127-001 12/31 >80% >80% No 731 2,102 2,791 04/19 Middle Tennessee Carpenters and Millwrights Pension Fund (4) 62-6101275-001 4/30 >80% >80% No — 6,524 2,881 Various Southern Ironworkers Pension Fund (4) 59-6227091-001 12/31 >80% >80% No — 3,458 1,191 Various Plumbers and Steamfitters Local 150 Pension Fund (4) 58-6116699-001 12/31 >80% >80% No — 3,510 1,502 Various Boilermakers’ National Pension Plan (Canada) 366708 12/31 N/A N/A N/A 6,709 8,645 10,795 04/19 All Other (5) 19,216 19,110 13,477 Total $ 59,939 $ 79,563 $ 61,089 (1) Pension Protection Act Zone Status and FIP/RP plans are applicable to our U.S.-registered plans only, as these terms are not defined within Canadian pension legislation. In the U.S., plans funded less than 65% are in the red zone, plans funded at least 65% , but less than 80% are in the yellow zone, and plans funded at least 80% are in the green zone. The requirement for FIP or RP plans in the U.S. is based on the funding level or zone status of the applicable plan. (2) Our 2016 contributions as a percentage of total plan contributions were not available for any of our plans. For 2015 and 2014 , our contributions to the Utah Pipe Trades Pension Trust Fund, the Twin City Carpenters and Joiners Pension Fund, the Twin City Ironworkers Pension Plan, the Southern Ironworkers Pension Fund, the Plumbers and Steamfitters Local 150 Pension Fund and the Boilermakers’ National Pension Plan (Canada) each exceeded 5% of total plan contributions. The level of our contributions to each plan noted above varies from period to period based upon the level of work being performed that is covered under the applicable collective-bargaining agreement. (3) The expiration dates of our labor agreements associated with the plans noted as “Various” above vary based upon the duration of the applicable projects. (4) The contributions in 2015 and 2014 were associated with plans that were included with our former Nuclear Operations, which were sold on December 31, 2015. (5) Our remaining contributions are to various U.S. and Canadian plans, which are individually immaterial. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments under Non-cancelable Operating Leases | Future minimum payments under non-cancelable operating leases having initial terms of one year or more are as follows: Year Amount 2017 $ 56,948 2018 44,156 2019 36,362 2020 28,936 2021 23,835 Thereafter 89,761 Total $ 279,998 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income, Net of Tax | The following table presents changes in AOCI, net of tax, by component, during 2016 : Year Ended December 31, 2016 Currency Translation Adjustment (1) Unrealized Fair Value Of Cash Flow Hedges Defined Benefit Pension and Other Postretirement Plans Total Balance at December 31, 2015 $ (209,281 ) $ (967 ) $ (83,792 ) $ (294,040 ) OCI before reclassifications (55,281 ) 33 (48,833 ) (104,081 ) Amounts reclassified from AOCI — 721 1,784 2,505 Net OCI (55,281 ) 754 (47,049 ) (101,576 ) Balance at December 31, 2016 $ (264,562 ) $ (213 ) $ (130,841 ) $ (395,616 ) (1) During 2016 , the currency translation adjustment component of AOCI was unfavorably impacted by net movements in the Australian Dollar, British Pound, 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 2016 : Amount Reclassified From AOCI Unrealized Fair Value Of Cash Flow Hedges (1) Interest rate derivatives (interest expense) $ 510 Foreign currency derivatives (cost of revenue) 835 Total before tax $ 1,345 Tax (624 ) Total net of tax $ 721 Defined Benefit Pension and Other Postretirement Plans (2) Amortization of prior service credits for continuing operations $ (606 ) Recognized net actuarial losses for continuing operations 1,713 Amortization of prior service credits for discontinued operations $ (11 ) Recognized net actuarial losses for discontinued operations 645 Total before tax $ 1,741 Tax 43 Total net of tax $ 1,784 (1) See Note 11 for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings. (2) See Note 12 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) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Share Activity | The following table presents RSU activity for 2016 : Shares Weighted-Average Grant-Date Fair Value per Share Nonvested RSUs Balance at December 31, 2015 1,385 $ 51.65 Granted 1,021 $ 33.19 Vested (492 ) $ 50.99 Forfeited (80 ) $ 41.51 Balance at December 31, 2016 1,834 $ 41.99 Directors’ RSUs Balance at December 31, 2015 28 $ 49.55 Granted 37 $ 38.18 Vested (28 ) $ 49.55 Balance at December 31, 2016 37 $ 38.18 |
Stock Option Activity | The following table presents stock option activity for 2016 : Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding options at December 31, 2015 680 $ 21.32 Exercised (59 ) $ 26.06 Forfeited / Expired (23 ) $ 57.38 Outstanding options at December 31, 2016 (1) 598 $ 19.47 2.0 $ 9,361 Exercisable options at December 31, 2016 575 $ 19.21 1.9 $ 9,217 (1) We estimate that 596 of these options will ultimately vest. These options have a weighted-average exercise price per share of $19.45 , a weighted-average remaining contractual life of 2.0 years and a current aggregate intrinsic value of $9,350 . |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Benefit (Expense) | The following table presents the sources of (loss) income before taxes and income tax benefit (expense), by tax jurisdiction for 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Sources of (Loss) Income Before Taxes U.S. $ (148,861 ) $ (1,159,645 ) $ 217,210 Non-U.S. 375,925 395,989 487,762 Total $ 227,064 $ (763,656 ) $ 704,972 Sources of Income Tax (Expense) Benefit Current income taxes U.S. Federal (1) $ 2,502 $ (1,497 ) $ (34,445 ) U.S. State (13,976 ) (74 ) (338 ) Non-U.S. (67,617 ) (64,954 ) (108,775 ) Total current income taxes $ (79,091 ) $ (66,525 ) $ (143,558 ) Deferred income taxes U.S. Federal $ 123,431 $ 259,065 $ (40,742 ) U.S. State 6,052 (7,156 ) 10,890 Non-U.S. 10,989 (30,381 ) (27,643 ) Total deferred income taxes $ 140,472 $ 221,528 $ (57,495 ) Total income tax benefit (expense) $ 61,381 $ 155,003 $ (201,053 ) (1) Tax expense of $5,395 and $4,477 , and tax benefit of $11,249 associated with share-based compensation were recorded in APIC in 2016 , 2015 and 2014 , respectively. |
Reconciliation of Income Taxes at the Netherlands' Statutory Rate and Income Tax Benefit (Expense) | The following is a reconciliation of income taxes at The Netherlands’ (our country of domicile) statutory rate to income tax benefit (expense) for 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Income tax (expense) benefit at statutory rate (25.0% for 2016, 2015 and 2014) $ (56,766 ) $ 190,914 $ (176,243 ) U.S. State income taxes (5,151 ) (4,700 ) (7,115 ) Non-deductible meals and entertainment (8,123 ) (8,416 ) (6,505 ) Non-U.S. valuation allowance established (10,119 ) (2,588 ) (12,551 ) Non-U.S. valuation allowance utilized 18,782 5,210 12,845 Statutory tax rate differential 14,623 118,592 (23,110 ) Branch and withholding taxes (net of tax benefit) — 659 (162 ) Unremitted earnings of subsidiaries 64,376 (10,369 ) — Noncontrolling interests 20,165 19,427 22,094 Non-deductible goodwill impairment — (158,585 ) — Non taxable interest income 18,856 — — Other, net 4,738 4,859 (10,306 ) Income tax benefit (expense) $ 61,381 $ 155,003 $ (201,053 ) Effective tax rate (27.0 )% 20.3 % 28.5 % |
Principal Temporary Differences Included in Deferred Income Taxes | The principal temporary differences included in deferred income taxes reported on the December 31, 2016 and 2015 Balance Sheets were as follows: December 31, 2016 2015 Deferred Tax Assets U.S. Federal operating losses and credits $ 595,630 $ 626,232 U.S. State operating losses and credits 203,165 195,996 Non-U.S. operating losses 50,410 56,612 Contract revenue and cost 55,748 63,876 Employee compensation and benefit plan reserves 80,733 75,754 Insurance and legal reserves 16,209 25,215 Disallowed interest 117,558 124,876 Other 64,810 9,520 Total deferred tax assets $ 1,184,263 $ 1,178,081 Valuation allowance (160,568 ) (167,053 ) Net deferred tax assets $ 1,023,695 $ 1,011,028 Deferred Tax Liabilities Investment in foreign subsidiaries $ (14,644 ) $ (79,021 ) Depreciation and amortization (291,722 ) (308,619 ) Net deferred tax liabilities $ (306,366 ) $ (387,640 ) Net total deferred tax assets $ 717,329 $ 623,388 |
Reconciliation of Unrecognized Income Tax Benefits | The following is a reconciliation of our unrecognized income tax benefits for the years ended December 31, 2016 and 2015 : Years Ended December 31, 2016 2015 Unrecognized income tax benefits at the beginning of the year $ 9,140 $ 13,458 Increase as a result of: Tax positions taken during the current period 6,038 1,313 Decreases as a result of: Lapse of applicable statute of limitations — (2,927 ) Settlements with taxing authorities (1,016 ) (2,704 ) Unrecognized income tax benefits at the end of the year (1) $ 14,162 $ 9,140 (1) If these income tax benefits were ultimately recognized, approximately $11,000 and $6,000 of the December 31, 2016 and 2015 balances, respectively, would benefit tax expense as we are contractually indemnified for the remaining balances. |
SEGMENT AND RELATED INFORMATI47
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Total Revenue, Depreciation and Amortization, Equity Earnings, Income from Operations, Capital Expenditures and Tangible Assets by Reporting Segment | The following table presents total revenue, depreciation and amortization, equity earnings, income (loss) from continuing operations and capital expenditures by reportable segment for 2016 , 2015 , and 2014 : Years Ended December 31, 2016 2015 2014 Revenue Engineering & Construction $ 6,206,150 $ 7,827,633 $ 7,707,400 Fabrication Services 1,922,447 2,113,284 2,553,646 Total revenue $ 8,128,597 $ 9,940,917 $ 10,261,046 Depreciation And Amortization Engineering & Construction $ 18,602 $ 49,863 $ 63,928 Fabrication Services 53,034 54,697 59,138 Total depreciation and amortization $ 71,636 $ 104,560 $ 123,066 Equity Earnings (Loss) Engineering & Construction $ 7,222 $ (3,853 ) $ (1,297 ) Fabrication Services (1,486 ) (3,812 ) (77 ) Total equity earnings (loss) $ 5,736 $ (7,665 ) $ (1,374 ) Income (Loss) From Continuing Operations Engineering & Construction (1) $ 137,049 $ (892,671 ) $ 498,983 Fabrication Services 86,161 129,737 230,856 Total operating groups 223,210 (762,934 ) 729,839 Integration related costs — — (26,356 ) Total income (loss) from continuing operations $ 223,210 $ (762,934 ) $ 703,483 Capital Expenditures Engineering & Construction $ 4,476 $ 15,811 $ 46,798 Fabrication Services 32,542 42,541 49,479 Total capital expenditures $ 37,018 $ 58,352 $ 96,277 (1) As discussed further in Note 4 , during 2015 we recorded a non-cash pre-tax charge of approximately $1,505,900 within our Engineering & Construction operating group related to the sale of our Nuclear Operations. In addition, during 2016 we recorded a non-cash pre-tax charge of approximately $148,100 resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. The following table presents total assets of our continuing operations by reportable segment and discontinued operations for December 31, 2016, 2015 and 2014: December 31, 2016 2015 2014 Assets Engineering & Construction $ 3,738,303 $ 4,129,531 $ 4,651,080 Fabrication Services 2,114,637 2,295,523 1,997,414 Total assets of continuing operations 5,852,940 6,425,054 6,648,494 Assets of discontinued Technology Operations (Note 5) 1,109,604 1,151,384 1,076,585 Assets of discontinued Capital Services Operations (Note 5) 876,876 1,615,622 1,644,751 Total assets $ 7,839,420 $ 9,192,060 $ 9,369,830 |
Total Revenue by Country | The following table presents total revenue by country for those countries with revenue in excess of 10% of consolidated revenue during a given year based upon the location of the applicable projects: Years Ended December 31, 2016 2015 2014 Revenue by Country United States $ 5,478,820 $ 6,045,430 $ 4,433,397 Australia 1,744,055 2,168,737 2,495,185 Colombia 26,329 456,850 1,080,093 Other (1) 879,393 1,269,900 2,252,371 Total revenue $ 8,128,597 $ 9,940,917 $ 10,261,046 (1) Revenue earned in other countries, including The Netherlands (our country of domicile), was not individually greater than 10% of our consolidated revenue in 2016 , 2015 or 2014 . |
QUARTERLY OPERATING RESULTS (48
QUARTERLY OPERATING RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Financial Information on a Quarterly Basis | The following table presents selected unaudited consolidated financial information on a quarterly basis for 2016 and 2015 : Quarter Ended 2016 March 31 June 30 September 30 December 31 (In thousands, except per share data) Revenue $ 2,017,242 $ 2,045,594 $ 2,137,877 $ 1,927,884 Gross profit $ 194,069 $ 198,268 $ 216,983 $ 19,904 Loss on net assets sold and intangible assets impairment (1) $ — $ — $ — $ (148,148 ) Net income (loss) from continuing operations (2) $ 91,528 $ 108,062 $ 133,076 $ (44,221 ) Net income (loss) from discontinued operations 28,434 24,486 35,343 (616,531 ) Net income (loss) $ 119,962 $ 132,548 $ 168,419 $ (660,752 ) Net income (loss) from continuing operations attributable to CB&I $ 78,939 $ 99,790 $ 87,347 $ (48,790 ) Net income (loss) from discontinued operations attributable to CB&I (3) 27,986 24,049 34,413 (616,903 ) Net income (loss) attributable to CB&I $ 106,925 $ 123,839 $ 121,760 $ (665,693 ) Net income (loss) attributable to CB&I per share (Basic): Continuing operations $ 0.75 $ 0.95 $ 0.86 $ (0.49 ) Discontinued operations 0.27 0.23 0.34 (6.16 ) Total $ 1.02 $ 1.18 $ 1.20 $ (6.65 ) Net income (loss) attributable to CB&I per share (Diluted): Continuing operations $ 0.75 $ 0.94 $ 0.86 $ (0.49 ) Discontinued operations 0.26 0.23 0.34 (6.16 ) Total $ 1.01 $ 1.17 $ 1.20 $ (6.65 ) Quarter Ended 2015 March 31 June 30 September 30 December 31 (In thousands, except per share data) Revenue $ 2,405,418 $ 2,478,837 $ 2,515,855 $ 2,540,807 Gross profit $ 261,936 $ 273,567 $ 257,929 $ 275,339 Goodwill impairment (4) $ — $ — $ (453,100 ) $ — Loss on net assets sold and intangible assets impairment (4) $ — $ — $ (707,380 ) $ (345,371 ) Net income (loss) from continuing operations $ 114,026 $ 148,718 $ (766,740 ) $ (104,657 ) Net income from discontinued operations 42,723 37,170 41,186 57,613 Net income (loss) $ 156,749 $ 185,888 $ (725,554 ) $ (47,044 ) Net income (loss) from continuing operations attributable to CB&I $ 89,902 $ 132,820 $ (781,033 ) $ (122,285 ) Net income from discontinued operations attributable to CB&I 42,326 36,695 40,600 56,560 Net income (loss) attributable to CB&I $ 132,228 $ 169,515 $ (740,433 ) $ (65,725 ) Net income (loss) attributable to CB&I per share (Basic): Continuing operations $ 0.83 $ 1.22 $ (7.41 ) $ (1.17 ) Discontinued operations 0.39 0.34 0.39 0.54 Total $ 1.22 $ 1.56 $ (7.02 ) $ (0.63 ) Net income (loss) attributable to CB&I per share (Diluted): Continuing operations $ 0.82 $ 1.21 $ (7.41 ) $ (1.17 ) Discontinued operations 0.39 0.34 0.39 0.54 Total $ 1.21 $ 1.55 $ (7.02 ) $ (0.63 ) (1) In the fourth quarter 2016,we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. (2) In the fourth quarter 2016, we recorded an income tax benefit of approximately $67,000 resulting from the reversal of a deferred tax liability associated with historical earnings of a non-U.S. subsidiary for which the earnings are no longer anticipated to be subject to tax. (3) In the fourth quarter 2016, we recorded a non-cash pre-tax charge related to the partial impairment of goodwill (approximately $655,000 ) for our former Capital Services operating group, resulting from our fourth quarter annual impairment assessment. Net loss from discontinued operations attributable to CB&I reflects the non-deductibility of the goodwill impairment charge for tax purposes. (4) In 2015 , we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
ORGANIZATION AND NATURE OF OP49
ORGANIZATION AND NATURE OF OPERATIONS - Additional Information (Details) - segment | Oct. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Date founded | 1,889 | ||
Number of operating segments | 3 | 4 | 2 |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | |||
Other current assets | $ 541,176,000 | $ 500,276,000 | |
Precontract costs | 0 | 0 | |
Research and development expenditures | 4,699,000 | 4,607,000 | $ 3,629,000 |
Foreign exchange loss | 11,000,000 | ||
Integration related costs | 0 | 0 | 26,356,000 |
Depreciation | 63,830,000 | 84,939,000 | $ 96,209,000 |
Current debt issuance costs, net | (2,340,000) | (2,129,000) | |
Noncurrent debt issuance costs, net | (5,827,000) | ||
Other non-current assets | 325,778,000 | 229,688,000 | |
Term Loan | Term Loan One | |||
Significant Accounting Policies [Line Items] | |||
Unsecured term loan remaining | 300,000,000 | 450,000,000 | |
Term Loan | Term Loan One | Interest rate | |||
Significant Accounting Policies [Line Items] | |||
Hedge against interest rate variability | $ 290,375,000 | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived identifiable intangible assets, estimated useful lives, (in years) | 6 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived identifiable intangible assets, estimated useful lives, (in years) | 20 years | ||
Buildings and improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives (in years) | 10 years | ||
Buildings and improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives (in years) | 40 years | ||
Plant and field equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives (in years) | 1 year | ||
Plant and field equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives (in years) | 15 years | ||
Accounts receivable | |||
Significant Accounting Policies [Line Items] | |||
Contract retentions | $ 72,100,000 | 55,400,000 | |
Contract retentions due beyond one year | $ 37,500,000 | ||
Accounting Standards Update 2015-03 [Member] | Long-term Debt, Current Maturities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Other current assets | (2,129,000) | ||
Current debt issuance costs, net | (2,129,000) | ||
Accounting Standards Update 2015-03 [Member] | Long-term Debt, Excluding Current Maturities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Noncurrent debt issuance costs, net | (8,168,000) | ||
Other non-current assets | $ (8,168,000) |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES - Contracts in Progress (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Contracts In Progress [Line Items] | ||
Costs and estimated earnings in excess of billings ($26,186 and $10,375 related to VIEs) (Note 2) | $ 330,432 | $ 431,042 |
Contracts in Progress, Liability | (1,218,824) | (1,589,328) |
Asset | ||
Contracts In Progress [Line Items] | ||
Costs and estimated earnings on contracts in progress | 7,852,740 | 10,445,182 |
Billings on contracts in progress | (7,522,308) | (10,014,140) |
Liability | ||
Contracts In Progress [Line Items] | ||
Costs and estimated earnings on contracts in progress | 22,544,241 | 17,779,376 |
Billings on contracts in progress | (23,763,065) | (19,368,704) |
Contracts in Progress, Net, Asset | ||
Contracts In Progress [Line Items] | ||
Costs and estimated earnings in excess of billings ($26,186 and $10,375 related to VIEs) (Note 2) | 330,432 | 431,042 |
Contracts in Progress, Net Liability | ||
Contracts In Progress [Line Items] | ||
Contracts in Progress, Liability | $ (1,218,824) | $ (1,589,328) |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | $ 71,159 | $ 71,943 | $ 90,642 | ||||||||
Net income (loss) from continuing operations attributable to CB&I | $ (48,790) | $ 87,347 | $ 99,790 | $ 78,939 | $ (122,285) | $ 132,820 | $ 89,902 | $ (781,033) | 217,286 | (680,596) | 413,277 |
Net income from discontinued operations attributable to CB&I | (616,903) | 34,413 | 24,049 | 27,986 | 56,560 | 36,695 | 42,326 | 40,600 | (530,455) | 176,181 | 130,330 |
Net (loss) income attributable to CB&I | $ (665,693) | $ 121,760 | $ 123,839 | $ 106,925 | $ (65,725) | $ 169,515 | $ 132,228 | $ (740,433) | $ (313,169) | $ (504,415) | $ 543,607 |
Weighted average shares outstanding—basic (in shares) | 102,811 | 106,766 | 108,047 | ||||||||
Effect of restricted shares/performance shares/stock options (in shares) | 837 | 0 | 1,045 | ||||||||
Effect of directors’ deferred-fee shares (in shares) | 14 | 0 | 30 | ||||||||
Weighted average shares outstanding—diluted (in shares) | 103,662 | 106,766 | 109,122 | ||||||||
Continuing operations, Basic (dollars per share) | $ (0.49) | $ 0.86 | $ 0.95 | $ 0.75 | $ (1.17) | $ 1.22 | $ 0.83 | $ (7.41) | $ 2.11 | $ (6.37) | $ 3.82 |
Discontinued operations, Basic (dollars per share) | (6.16) | 0.34 | 0.23 | 0.27 | 0.54 | 0.34 | 0.39 | 0.39 | (5.16) | 1.65 | 1.21 |
Net income (loss) attributable to CB&I per share: | |||||||||||
Total, Basic (dollars per share) | (6.65) | 1.20 | 1.18 | 1.02 | (0.63) | 1.56 | 1.22 | (7.02) | (3.05) | (4.72) | 5.03 |
Continuing operations, Diluted (dollars per share) | (0.49) | 0.86 | 0.94 | 0.75 | (1.17) | 1.21 | 0.82 | (7.41) | 2.10 | (6.37) | 3.79 |
Discontinued operations, Diluted (dollars per share) | (6.16) | 0.34 | 0.23 | 0.26 | 0.54 | 0.34 | 0.39 | 0.39 | (5.12) | 1.65 | 1.19 |
Total, Diluted (dollars per share) | $ (6.65) | $ 1.20 | $ 1.17 | $ 1.01 | $ (0.63) | $ 1.55 | $ 1.21 | $ (7.02) | $ (3.02) | $ (4.72) | $ 4.98 |
Net income attributable to noncontrolling interests, discontinued operations, tax | $ 2,187 | $ 2,511 | $ 1,876 |
DISPOSITION OF NUCLEAR OPERAT53
DISPOSITION OF NUCLEAR OPERATIONS - Transaction Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Jun. 30, 2015 | [2] | Mar. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 161,000 | $ 161,000 | |||||||||||||||||
Net tax benefit of goodwill impairment charge | $ 370,700 | ||||||||||||||||||
Asset impairment, after tax | 1,135,200 | ||||||||||||||||||
Loss on net assets sold and intangible assets impairment | $ (148,148) | $ 0 | $ 0 | $ 0 | $ (345,371) | [2] | $ 0 | $ 0 | $ (707,380) | 148,148 | $ 1,052,751 | $ 0 | |||||||
Disposal group consideration, present value, net | $ 96,300 | ||||||||||||||||||
[1] | we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | ||||||||||||||||||
[2] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
DISPOSITION OF NUCLEAR OPERAT54
DISPOSITION OF NUCLEAR OPERATIONS - Disposition Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] | Sep. 30, 2015 | Jun. 30, 2015 | [2] | Mar. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||
Loss on net assets sold | $ 345,400 | $ 628,300 | $ 973,651 | |||||||||||||||||
Intangible assets impairment | 79,100 | |||||||||||||||||||
Loss on net assets sold and intangible assets impairment | (148,148) | [1] | $ 0 | $ 0 | $ 0 | $ (345,371) | $ 0 | $ 0 | $ (707,380) | $ 148,148 | 1,052,751 | $ 0 | ||||||||
Goodwill impairment | $ 655,000 | $ 0 | $ 453,100 | $ 0 | $ 0 | $ 453,100 | $ 0 | 453,100 | $ 0 | |||||||||||
Asset impairment, pre-tax charge | $ 1,505,851 | |||||||||||||||||||
[1] | we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | |||||||||||||||||||
[2] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
DISPOSITION OF NUCLEAR OPERAT55
DISPOSITION OF NUCLEAR OPERATIONS - Assets Sold And Results Of Nuclear Operations (Details) - Nuclear Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | $ 2,061,167 | $ 1,841,018 |
Pre-tax income | $ 215,150 | $ 151,800 |
DISCONTINUED OPERATIONS - Narr
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2015 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 27, 2017 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 161,000 | $ 161,000 | |||||||||||||||
Disposal Group Including Discontinued Operation Working Capital Adjustments And Other Adjustments | $ 32,600 | $ 32,600 | |||||||||||||||
Proceeds from Divestiture of Businesses | $ 667,400 | ||||||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 645,500 | ||||||||||||||||
Proceeds From Divestiture Of Businesses, Net Of Transaction Costs And Working Capital Adjustments | 599,000 | ||||||||||||||||
Disposal Group Including Discontinued Operations Transaction Costs | 46,500 | ||||||||||||||||
Goodwill impairment | $ 655,000 | 0 | [1] | $ 453,100 | $ 0 | $ 0 | $ 453,100 | $ 0 | 453,100 | $ 0 | |||||||
Sale of Capital Services | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (64,800) | ||||||||||||||||
Sale of Capital Services | Discontinued Operations, Held-for-sale | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 700,000 | ||||||||||||||||
Anticipated income tax expense on transaction | $ 55,800 | 23,486 | 20,963 | $ 32,051 | |||||||||||||
Goodwill impairment | 655,000 | ||||||||||||||||
Unapproved change orders, claims, and incentives | $ 8,400 | $ 14,600 | 8,400 | $ 14,600 | |||||||||||||
Revenue recognized for unapproved change orders, claims, and incentives | $ 7,700 | ||||||||||||||||
[1] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||||||||||||
Cash | $ 14,477 | $ 14,507 | $ 14,477 | $ 14,507 | $ 30,017 | ||||||||
Current assets of discontinued operations | 603,776 | 699,016 | 603,776 | 699,016 | |||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||||||||||||
Non-current assets of discontinued operations | 1,382,704 | 2,067,990 | 1,382,704 | 2,067,990 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||||||||||||
Current liabilities of discontinued operations | 562,617 | 651,997 | 562,617 | 651,997 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||||||||||||
Non-current liabilities of discontinued operations | 38,290 | 36,687 | 38,290 | 36,687 | |||||||||
Goodwill impairment | 655,000 | 0 | [1] | $ 453,100 | $ 0 | $ 0 | $ 453,100 | 0 | 453,100 | 0 | |||
Accumulated other comprehensive loss (Note 14) | (395,616) | (294,040) | (395,616) | (294,040) | |||||||||
Technology | |||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||||||||||||
Accounts receivable | 86,641 | 113,908 | 86,641 | 113,908 | |||||||||
Integration related costs | 0 | 0 | (5,029) | ||||||||||
Costs and estimated earnings in excess of billings | 80,317 | 92,269 | 80,317 | 92,269 | |||||||||
Inventory | 16,285 | 27,027 | 16,285 | 27,027 | |||||||||
Other assets | 5,801 | 4,240 | 5,801 | 4,240 | |||||||||
Current assets of discontinued operations | 189,044 | 237,444 | 189,044 | 237,444 | |||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||||||||||||
Property and equipment, net | 71,692 | 67,175 | 71,692 | 67,175 | |||||||||
Equity investments | 129,715 | 117,464 | 129,715 | 117,464 | |||||||||
Goodwill (1) | 498,465 | 501,651 | 498,465 | 501,651 | |||||||||
Other intangible assets | 139,273 | 157,966 | 139,273 | 157,966 | |||||||||
Other assets | 81,415 | 69,684 | 81,415 | 69,684 | |||||||||
Non-current assets of discontinued operations | 920,560 | 913,940 | 920,560 | 913,940 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||||||||||||
Accounts payable | 99,916 | 72,653 | 99,916 | 72,653 | |||||||||
Billings in excess of costs and estimated earnings | 176,525 | 277,496 | 176,525 | 277,496 | |||||||||
Other liabilities | 38,707 | 71,517 | 38,707 | 71,517 | |||||||||
Current liabilities of discontinued operations | 315,148 | 421,666 | 315,148 | 421,666 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||||||||||||
Other liabilities | 32,902 | 30,766 | 32,902 | 30,766 | |||||||||
Non-current liabilities of discontinued operations | 32,902 | 30,766 | 32,902 | 30,766 | |||||||||
Total liabilities of discontinued operations | 348,050 | 452,432 | 348,050 | 452,432 | |||||||||
Accumulated other comprehensive loss (Note 14) | (13,252) | (10,670) | (13,252) | (10,670) | |||||||||
Technology | Discontinued Operations, Held-for-sale | |||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||||||||||||
Goodwill (1) | 297,000 | 297,000 | |||||||||||
Sale of Capital Services | Discontinued Operations, Held-for-sale | |||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||||||||||||
Cash | 14,477 | 14,507 | 14,477 | 14,507 | |||||||||
Accounts receivable | 239,146 | 274,186 | 239,146 | 274,186 | |||||||||
Costs and estimated earnings in excess of billings | 153,275 | 165,003 | 153,275 | 165,003 | |||||||||
Integration related costs | 0 | 0 | $ (8,300) | ||||||||||
Other assets | 7,834 | 7,876 | 7,834 | 7,876 | |||||||||
Current assets of discontinued operations | 414,732 | 461,572 | 414,732 | 461,572 | |||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||||||||||||
Property and equipment, net | 59,746 | 64,916 | 59,746 | 64,916 | |||||||||
Goodwill (1) | 229,607 | 884,607 | 229,607 | 884,607 | |||||||||
Other intangible assets | 148,440 | 165,040 | 148,440 | 165,040 | |||||||||
Other assets | 24,351 | 39,487 | 24,351 | 39,487 | |||||||||
Non-current assets of discontinued operations | 462,144 | 1,154,050 | 462,144 | 1,154,050 | |||||||||
Total assets of discontinued operations | 876,876 | 1,615,622 | 876,876 | 1,615,622 | |||||||||
Total assets of discontinued operations | 876,876 | 1,615,622 | 876,876 | 1,615,622 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||||||||||||
Accounts payable | 141,028 | 112,884 | 141,028 | 112,884 | |||||||||
Billings in excess of costs and estimated earnings | 53,986 | 67,287 | 53,986 | 67,287 | |||||||||
Other liabilities | 52,455 | 50,160 | 52,455 | 50,160 | |||||||||
Current liabilities of discontinued operations | 247,469 | 230,331 | 247,469 | 230,331 | |||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||||||||||||
Other liabilities | 5,388 | 5,921 | 5,388 | 5,921 | |||||||||
Non-current liabilities of discontinued operations | 5,388 | 5,921 | 5,388 | 5,921 | |||||||||
Total liabilities of discontinued operations | 252,857 | 236,252 | 252,857 | 236,252 | |||||||||
Noncontrolling interests of discontinued operations | 6,874 | $ 7,484 | 6,874 | $ 7,484 | |||||||||
Goodwill impairment | 655,000 | ||||||||||||
Fabrication Services Segment | Technology | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Disposal Group, Including Discontinued Operation, Goodwill | $ 200,000 | $ 200,000 | |||||||||||
[1] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net (loss) income from discontinued operations | $ (616,531) | $ 35,343 | $ 24,486 | $ 28,434 | $ 57,613 | $ 37,170 | $ 42,723 | $ 41,186 | $ (528,268) | $ 178,692 | $ 132,206 | |
Net income from discontinued operations attributable to noncontrolling interests | (2,187) | (2,511) | (1,876) | |||||||||
Net (loss) income from discontinued operations attributable to CB&I | $ (616,903) | $ 34,413 | $ 24,049 | $ 27,986 | $ 56,560 | $ 36,695 | $ 42,326 | $ 40,600 | (530,455) | 176,181 | 130,330 | |
Technology | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | 636,818 | 779,725 | 618,172 | |||||||||
Cost of revenue | 388,632 | 495,002 | 384,887 | |||||||||
Gross profit | 248,186 | 284,723 | 233,285 | |||||||||
Selling and administrative expense | 44,652 | 48,355 | 47,435 | |||||||||
Intangibles amortization | 18,033 | 18,044 | 19,689 | |||||||||
Other operating expense (income), net | 4 | (7,581) | 73 | |||||||||
Equity earnings | (18,834) | (22,442) | (25,910) | |||||||||
Integration related costs | 0 | 0 | 5,029 | |||||||||
Operating (loss) income from discontinued operations | 204,331 | 248,347 | 186,969 | |||||||||
Interest expense | (73,302) | (62,801) | (55,487) | |||||||||
Interest income | 57 | 61 | 150 | |||||||||
(Loss) income from discontinued operations before taxes | 131,086 | 185,607 | 131,632 | |||||||||
Income tax expense | (40,455) | (52,809) | (38,313) | |||||||||
Net (loss) income from discontinued operations | 90,631 | 132,798 | 93,319 | |||||||||
Net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net (loss) income from discontinued operations attributable to CB&I | 90,631 | 132,798 | 93,319 | |||||||||
Sale of Capital Services | Discontinued Operations, Held-for-sale | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | 2,211,835 | 2,385,863 | 2,217,369 | |||||||||
Cost of revenue | 2,063,189 | 2,227,041 | 2,051,861 | |||||||||
Gross profit | 148,646 | 158,822 | 165,508 | |||||||||
Selling and administrative expense | 51,833 | 50,745 | 46,332 | |||||||||
Intangibles amortization | 16,600 | 19,960 | 19,960 | |||||||||
Other operating expense (income), net | (2,328) | (1,353) | (1,240) | |||||||||
Goodwill impairment | 655,000 | 0 | 0 | |||||||||
Integration related costs | 0 | 0 | 8,300 | |||||||||
Operating (loss) income from discontinued operations | (572,459) | 89,470 | 92,156 | |||||||||
Interest expense | (24,109) | (23,857) | (22,372) | |||||||||
Interest income | 1,155 | 1,244 | 1,154 | |||||||||
(Loss) income from discontinued operations before taxes | (595,413) | 66,857 | 70,938 | |||||||||
Income tax expense | $ (55,800) | (23,486) | (20,963) | (32,051) | ||||||||
Net (loss) income from discontinued operations | (618,899) | 45,894 | 38,887 | |||||||||
Net income from discontinued operations attributable to noncontrolling interests | (2,187) | (2,511) | (1,876) | |||||||||
Net (loss) income from discontinued operations attributable to CB&I | (621,086) | $ 43,383 | $ 37,011 | |||||||||
Chevron Lummus Global | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (Loss) on Disposition of Business | $ 7,500 |
DISCONTINUED OPERATIONS - Cash
DISCONTINUED OPERATIONS - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Technology | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating cash flows | $ 83,247 | $ 186,944 | $ 155,814 |
Investing cash flows | (54,868) | (54,275) | (5,135) |
Sale of Capital Services | Discontinued Operations, Held-for-sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating cash flows | 145,643 | 76,365 | (52,828) |
Investing cash flows | $ (6,561) | (11,706) | (14,222) |
Chevron Lummus Global | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of equity investment | 50.00% | ||
Proceeds from Dividends Received | $ 5,900 | ||
Chevron | Chevron Lummus Global | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of equity investment | 50.00% | ||
Chevron Lummus Global | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Dividends Received | $ 26,000 | $ 15,000 |
INVENTORY - Components of Inven
INVENTORY - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 58,261 | $ 135,239 |
Work in process | 48,011 | 54,556 |
Finished goods | 67,545 | 68,333 |
Total | $ 173,817 | $ 258,128 |
GOODWILL AND OTHER INTANGIBLE61
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) $ in Thousands | Oct. 01, 2016segmentreporting_unit | Dec. 31, 2016USD ($)segmentreporting_unit | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | [1] | Mar. 31, 2015USD ($) | [1] | Sep. 30, 2015USD ($) | [1] | Dec. 31, 2016USD ($)segmentreporting_unit | Dec. 31, 2015USD ($)reporting_unit | Dec. 31, 2014USD ($) | ||
Goodwill [Line Items] | |||||||||||||||
Goodwill | $ 2,315,338 | $ 2,325,248 | $ 2,315,338 | $ 2,325,248 | $ 2,804,661 | ||||||||||
Number of reporting units | reporting_unit | 3 | 5 | |||||||||||||
Number of operating segments | segment | 3 | 4 | 2 | ||||||||||||
Goodwill impairment | $ 655,000 | 0 | [1] | $ 453,100 | $ 0 | $ 0 | $ 453,100 | $ 0 | 453,100 | 0 | |||||
Engineering & Construction | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill | 1,850,273 | 1,860,181 | 1,850,273 | 1,860,181 | 2,339,246 | ||||||||||
Goodwill impairment | [2] | 453,100 | |||||||||||||
Fabrication Services | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill | 465,065 | 465,067 | 465,065 | $ 465,067 | $ 465,415 | ||||||||||
Number of reporting units | reporting_unit | 3 | ||||||||||||||
Goodwill impairment | [2] | $ 0 | $ 0 | ||||||||||||
Capital Services | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Number of reporting units | reporting_unit | 2 | ||||||||||||||
Goodwill impairment | [2] | $ (655,000) | |||||||||||||
All Other | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill impairment | [2] | 0 | |||||||||||||
Facilities & Plant Services | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill | 113 | 113 | |||||||||||||
Goodwill impairment | 582 | ||||||||||||||
Federal Services | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill | 117 | 117 | |||||||||||||
Goodwill impairment | 73 | ||||||||||||||
Technology | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent | 498,465 | 501,651 | 498,465 | 501,651 | |||||||||||
Discontinued Operations, Held-for-sale [Member] | Sale of Capital Services | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Goodwill impairment | 655,000 | ||||||||||||||
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent | 229,607 | $ 884,607 | 229,607 | $ 884,607 | |||||||||||
Discontinued Operations, Held-for-sale [Member] | Technology | |||||||||||||||
Goodwill [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent | $ 297,000 | $ 297,000 | |||||||||||||
[1] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). | ||||||||||||||
[2] | At December 31, 2016, we had approximately $453,100 of cumulative impairment losses, which were recorded in our Engineering & Construction operating group during 2015 related to the sale of our Nuclear Operations on December 31, 2015. |
GOODWILL AND OTHER INTANGIBLE62
GOODWILL AND OTHER INTANGIBLES - Change in Goodwill by Business Sector (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Goodwill [Roll Forward] | ||||||||||||||
Beginning Balance | $ 2,804,661 | $ 2,804,661 | $ 2,325,248 | $ 2,804,661 | ||||||||||
Impairment charges | $ (655,000) | $ 0 | [1] | $ (453,100) | $ 0 | 0 | [1] | (453,100) | [1] | 0 | (453,100) | $ 0 | ||
Goodwill, Subsequent Recognition of Deferred Tax Asset | (340) | (4,137) | ||||||||||||
Foreign currency translation and other | (9,570) | (22,176) | ||||||||||||
Ending Balance | 2,315,338 | 2,325,248 | 2,315,338 | 2,325,248 | 2,804,661 | |||||||||
Accumulated impairment losses | 453,100 | 453,100 | ||||||||||||
Engineering & Construction | ||||||||||||||
Goodwill [Roll Forward] | ||||||||||||||
Beginning Balance | 2,339,246 | 2,339,246 | 1,860,181 | 2,339,246 | ||||||||||
Impairment charges | [2] | (453,100) | ||||||||||||
Goodwill, Subsequent Recognition of Deferred Tax Asset | (338) | (3,789) | ||||||||||||
Foreign currency translation and other | (9,570) | (22,176) | ||||||||||||
Ending Balance | 1,850,273 | 1,860,181 | 1,850,273 | 1,860,181 | 2,339,246 | |||||||||
Fabrication Services | ||||||||||||||
Goodwill [Roll Forward] | ||||||||||||||
Beginning Balance | $ 465,415 | $ 465,415 | 465,067 | 465,415 | ||||||||||
Impairment charges | [2] | 0 | 0 | |||||||||||
Goodwill, Subsequent Recognition of Deferred Tax Asset | (2) | (348) | ||||||||||||
Foreign currency translation and other | 0 | 0 | ||||||||||||
Ending Balance | $ 465,065 | $ 465,067 | 465,065 | $ 465,067 | $ 465,415 | |||||||||
Capital Services | ||||||||||||||
Goodwill [Roll Forward] | ||||||||||||||
Impairment charges | [2] | $ 655,000 | ||||||||||||
[1] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). | |||||||||||||
[2] | At December 31, 2016, we had approximately $453,100 of cumulative impairment losses, which were recorded in our Engineering & Construction operating group during 2015 related to the sale of our Nuclear Operations on December 31, 2015. |
GOODWILL AND OTHER INTANGIBLE63
GOODWILL AND OTHER INTANGIBLES - Finite-Lived Intangible Asset Balances Including Weighted-Average Useful Lives (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets (weighted average life) | 17 years | 17 years | ||
Gross Carrying Amount | [1] | $ 109,818 | $ 117,804 | |
Accumulated Amortization | [1] | (29,682) | (29,862) | |
Amortization expense | 7,806 | $ 19,621 | $ 26,857 | |
Amortization expense for intangible assets | ||||
2,017 | 7,744 | |||
2,018 | 7,744 | |||
2,019 | 5,716 | |||
2,020 | 5,427 | |||
2,021 | $ 5,226 | |||
Backlog and customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets (weighted average life) | 18 years | 18 years | ||
Gross Carrying Amount | [2] | $ 93,700 | $ 101,686 | |
Accumulated Amortization | [2] | (20,073) | $ (22,546) | |
Decrease in intangible assets | $ 8,000 | |||
Process technologies | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets (weighted average life) | 20 years | 20 years | ||
Gross Carrying Amount | $ 400 | $ 400 | ||
Accumulated Amortization | $ (78) | $ (58) | ||
Tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets (weighted average life) | 6 years | 6 years | ||
Gross Carrying Amount | $ 15,718 | $ 15,718 | ||
Accumulated Amortization | $ (9,531) | $ (7,258) | ||
[1] | The remaining decrease in other intangibles, net during 2016 primarily related to amortization expense of approximately $7,800. Amortization expense for our intangibles existing at December 31, 2016 is anticipated to be approximately $7,700, $7,700, $5,700, $5,400 and $5,200 for 2017, 2018, 2019, 2020 and 2021, respectively. | |||
[2] | Backlog and customer relationships intangibles totaling approximately $8,000 became fully amortized during 2016 and were therefore removed from the December 31, 2016 gross carrying and accumulated amortization balances above. |
PARTNERING ARRANGEMENTS - Addit
PARTNERING ARRANGEMENTS - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Train | Dec. 31, 2015USD ($) | ||
Schedule of Investments [Line Items] | |||
Other current liabilities | [1] | $ 541,432 | $ 334,850 |
CLG | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 50.00% | ||
CB&I/Zachry | |||
Schedule of Investments [Line Items] | |||
Number Of LNG Trains | Train | 2 | ||
Joint venture contract value | $ 2,700,000 | ||
CB&I/Zachry/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Joint venture contract value | $ 675,000 | ||
CB&I/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Number Of LNG Trains | Train | 3 | ||
Joint venture contract value | $ 3,100,000 | ||
CB&I/CTCI | |||
Schedule of Investments [Line Items] | |||
Joint venture contract value | 1,400,000 | ||
Other current liabilities | [1] | $ 147,000 | |
CB&I/Kentz | |||
Schedule of Investments [Line Items] | |||
Number Of LNG Trains | Train | 3 | ||
Joint venture contract value | $ 5,900,000 | ||
CB&I/Kentz | Kentz | |||
Schedule of Investments [Line Items] | |||
Percentage of ownership in joint venture | 35.00% | ||
CB&I/Areva | |||
Schedule of Investments [Line Items] | |||
Joint venture contract value | $ 5,800,000 | ||
CB&I/Areva | Areva | |||
Schedule of Investments [Line Items] | |||
Percentage of ownership in joint venture | 48.00% | ||
Zachry | CB&I/Zachry | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Zachry | CB&I/Zachry/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 33.30% | ||
Chiyoda | CB&I/Zachry/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 33.30% | ||
Chiyoda | CB&I/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Chicago Bridge And Iron | Net Power | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 33.30% | ||
Commitment to invest | $ 47,300 | ||
Equity method invested | $ 37,900 | ||
Chicago Bridge And Iron | CTCI Corporation | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 50.00% | ||
Chicago Bridge And Iron | CB&I/Zachry | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Chicago Bridge And Iron | CB&I/Zachry/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 33.30% | ||
Chicago Bridge And Iron | CB&I/Chiyoda | |||
Schedule of Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Chicago Bridge And Iron | CB&I/Kentz | |||
Schedule of Investments [Line Items] | |||
Percentage of ownership in joint venture | 65.00% | ||
Chicago Bridge And Iron | CB&I/Areva | |||
Schedule of Investments [Line Items] | |||
Percentage of ownership in joint venture | 52.00% | ||
Chevron | CLG | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 50.00% | ||
Exelon | Net Power | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 33.30% | ||
8 Rivers Capital | Net Power | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 33.30% | ||
CTCI Corporation | |||
Schedule of Investments [Line Items] | |||
Percentage of equity investment | 50.00% | ||
[1] | Represents advances to our proportionately consolidated ventures and advances from our equity method and proportionately consolidated ventures as discussed in Note 8. |
PARTNERING ARRANGEMENTS - Propo
PARTNERING ARRANGEMENTS - Proportionately Consolidated Variable Interest Entities Summarized Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of advances from ventures | [1] | $ 374,803 | $ 325,048 |
Advances from proportionately consolidated ventures | [1] | 541,432 | 334,850 |
Proportionately Consolidated Ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of advances from ventures | 374,800 | 325,000 | |
Advances from proportionately consolidated ventures | 394,400 | 334,900 | |
CB&I/Zachry | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [2] | 260,934 | 298,916 |
Non-current assets | 3,204 | 6,689 | |
Total assets | 264,138 | 305,605 | |
Current liabilities | [2] | 379,339 | 454,943 |
CB&I/Zachry/Chiyoda | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | [2] | 84,279 | 82,106 |
Non-current assets | 1,969 | 2,590 | |
Total assets | 86,248 | 84,696 | |
Current liabilities | [2] | 73,138 | 86,124 |
CB&I/Chiyoda | |||
Schedule of Equity Method Investments [Line Items] | |||
Total assets | [2] | 337,479 | 424,781 |
Current liabilities | [2] | $ 150,179 | $ 433,526 |
[1] | Represents advances to our proportionately consolidated ventures and advances from our equity method and proportionately consolidated ventures as discussed in Note 8. | ||
[2] | Our venture arrangements allow for excess working capital of the ventures to be advanced to the venture partners. Such advances are returned to the ventures 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. As summarized in Note 9, at December 31, 2016 and 2015, other current assets on the Balance Sheets included approximately $374,800 and $325,000, respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately $394,400 and $334,900, respectively, related to advances to CB&I from the ventures. |
PARTNERING ARRANGEMENTS - Summa
PARTNERING ARRANGEMENTS - Summarized Balance Sheet Information of Variable Interest Entities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
CB&I/Kentz | |||
Variable Interest Entity [Line Items] | |||
Current assets | $ 68,867 | $ 214,291 | |
Current liabilities | 87,822 | 191,471 | |
CB&I/AREVA | |||
Variable Interest Entity [Line Items] | |||
Current assets | 16,313 | 24,269 | |
Current liabilities | 47,652 | 65,674 | |
All Other Joint Ventures | |||
Variable Interest Entity [Line Items] | |||
Current assets | [1] | 69,785 | 78,492 |
Non-current assets | [1] | 16,382 | 18,415 |
Total assets | [1] | 86,167 | 96,907 |
Current liabilities | [1] | $ 7,748 | $ 22,025 |
[1] | Other ventures that we consolidate are not individually material to our financial results and are therefore aggregated as “All Other”. |
SUPPLEMENTAL BALANCE SHEET DE67
SUPPLEMENTAL BALANCE SHEET DETAIL - Components of Property and Equipment, Other Current Assets, and Other Current and Non-current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Property and Equipment | ||||||
Property and equipment, gross | $ 954,187 | $ 941,321 | ||||
Accumulated depreciation | (519,935) | (469,369) | ||||
Property and equipment, net | 434,252 | 471,952 | ||||
Other Current Assets | ||||||
Advances to proportionately consolidated ventures | [1] | 374,803 | 325,048 | |||
Other | [2] | 166,373 | 175,228 | |||
Other current assets | 541,176 | 500,276 | ||||
Other Current Liabilities | ||||||
Advances from proportionately consolidated ventures | [1] | 541,432 | 334,850 | |||
Payroll-related obligations | 197,182 | 253,079 | ||||
Income taxes payable | 46,741 | 29,627 | ||||
Self-insurance and other insurance reserves | 16,206 | 18,104 | ||||
Other | [3] | 177,205 | 202,552 | |||
Other current liabilities | 978,766 | 838,212 | ||||
Other Non-Current Liabilities | ||||||
Pension obligations | 152,210 | 110,693 | ||||
Self-insurance and other insurance reserves | 87,680 | 54,122 | ||||
Postretirement medical benefit obligations | 30,931 | 28,516 | ||||
Income tax reserves | 14,162 | [4] | 9,140 | [4] | $ 13,458 | |
Other Accrued Liabilities, Noncurrent | [5] | 124,048 | 130,293 | |||
Other non-current liabilities | 409,031 | 332,764 | ||||
Plant, field equipment and other | ||||||
Property and Equipment | ||||||
Property and equipment, gross | 532,282 | 530,433 | ||||
Buildings and improvements | ||||||
Property and Equipment | ||||||
Property and equipment, gross | 354,723 | 340,407 | ||||
Land and improvements | ||||||
Property and Equipment | ||||||
Property and equipment, gross | $ 67,182 | $ 70,481 | ||||
Other Current Assets | ||||||
Other Non-Current Liabilities | ||||||
Percentage of assets (less than) | 5.00% | 5.00% | ||||
Accrued Liabilities | ||||||
Other Non-Current Liabilities | ||||||
Percentage of liability accruals (less than) | 5.00% | 5.00% | ||||
Other Noncurrent Liabilities | ||||||
Other Non-Current Liabilities | ||||||
Percentage of liability accruals (less than) | 5.00% | 5.00% | ||||
[1] | Represents advances to our proportionately consolidated ventures and advances from our equity method and proportionately consolidated ventures as discussed in Note 8. | |||||
[2] | Represents various assets that are each individually less than 5% of total current assets, including income tax receivables and prepaid items. | |||||
[3] | Represents various accruals that are each individually less than 5% of total current liabilities, including accruals for non-contract payables, taxes other than income taxes, country-specific employee benefits, operating lease obligations, derivatives, and medical and legal obligations. | |||||
[4] | If these income tax benefits were ultimately recognized, approximately $11,000 and $6,000 of the December 31, 2016 and 2015 balances, respectively, would benefit tax expense as we are contractually indemnified for the remaining balances. | |||||
[5] | Represents various accruals that are each individually less than 5% of total liabilities, including accruals for non-contract payables, taxes other than income taxes, operating lease obligations, deferred rent, and country-specific employee benefits. |
DEBT - Outstanding Debt (Detail
DEBT - Outstanding Debt (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Current | |||
Revolving facility and other short-term borrowings | $ 407,500,000 | $ 653,000,000 | |
Current maturities of long-term debt | 506,250,000 | 150,000,000 | |
Less: unamortized debt issuance costs | (2,340,000) | (2,129,000) | |
Current maturities of long-term debt, net of unamortized debt issuance costs | 503,910,000 | 147,871,000 | |
Current debt, net of unamortized debt issuance costs | 911,410,000 | 800,871,000 | |
Long-Term | |||
Senior notes | 800,000,000 | ||
Less: unamortized debt issuance costs | (5,827,000) | ||
Less: current maturities of long-term debt | (506,250,000) | (150,000,000) | |
Long-term debt | $ 1,287,923,000 | 1,791,832,000 | |
Minimum | |||
Long-Term | |||
Senior notes, interest rate | 4.15% | ||
Maximum | |||
Long-Term | |||
Senior notes, interest rate | 5.30% | ||
First Senior Notes | |||
Long-Term | |||
Senior notes | $ 800,000,000 | 800,000,000 | |
Second Senior Notes | |||
Long-Term | |||
Senior notes | $ 200,000,000 | 200,000,000 | |
Semi annually fixed rate payable | 4.53% | ||
Term Loan | Term Loan Two | |||
Long-Term | |||
Second Term Loan: $500,000 term loan (interest at LIBOR plus a floating margin) | $ 500,000,000 | $ 500,000,000 | 500,000,000 |
Interest rate terms | Interest at LIBOR plus an applicable floating margin | ||
Term Loan | Term Loan One | |||
Long-Term | |||
Term Loan: $1,000,000 term loan (interest at LIBOR plus a floating margin) | $ 300,000,000 | $ 450,000,000 | |
Second Term Loan: $500,000 term loan (interest at LIBOR plus a floating margin) | $ 1,000,000,000 | ||
Interest rate terms | Interest at LIBOR plus an applicable floating margin |
DEBT - Additional Information (
DEBT - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Disclosure [Line Items] | |||||
Bank Covenant, Minimum Net Worth Requirement Post Amendment | $ 1,201,507,000 | ||||
Revolving facility and other short-term borrowings | 407,500,000 | $ 653,000,000 | |||
Senior notes | $ 800,000,000 | ||||
Debt Instrument, Covenant, Leverage Ratio Post Amendment | 3.10 | ||||
Bank Covenant, Minimum Net Worth Requirement | $ 1,736,651,000 | ||||
Minimum fixed charge coverage ratio | 3.61 | ||||
Net worth | $ 1,413,538,000 | 2,013,990,000 | |||
First Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | 800,000,000 | 800,000,000 | |||
Series A Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 150,000,000 | ||||
Semi annually fixed rate payable | 4.15% | ||||
Senior notes, maturity date | 2017-12 | ||||
Series B Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 225,000,000 | ||||
Semi annually fixed rate payable | 4.57% | ||||
Senior notes, maturity date | 2019-12 | ||||
Series C Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 275,000,000 | ||||
Semi annually fixed rate payable | 5.15% | ||||
Senior notes, maturity date | 2022-12 | ||||
Series D Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 150,000,000 | ||||
Semi annually fixed rate payable | 5.30% | ||||
Senior notes, maturity date | 2024-12 | ||||
Second Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Senior notes | $ 200,000,000 | $ 200,000,000 | |||
Semi annually fixed rate payable | 4.53% | ||||
Uncommitted Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Credit facilities utilized | $ 1,635,357,000 | ||||
Available borrowing capacity under credit facility | 2,776,593,000 | ||||
Outstanding borrowings | $ 150,000,000 | ||||
Interest rate swap, interest rate | 1.60% | ||||
Uncommitted facility | $ 4,561,950,000 | ||||
Current borrowing capacity | 563,000,000 | ||||
Remaining utilized for borrowings | $ 413,000,000 | ||||
Unsecured Revolving Credit Facility | Revolving Credit Facility One | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Maximum borrowing capacity | $ 1,350,000,000 | $ 1,150,000,000 | |||
Financial letter of credit sublimit | 270,000,000 | ||||
Revolving facility and other short-term borrowings | 100,000,000 | ||||
Credit facilities utilized | 78,251,000 | ||||
Outstanding letters of credit | 0 | ||||
Available borrowing capacity under credit facility | $ 1,171,749,000 | ||||
Unsecured Revolving Credit Facility | Revolving Credit Facility One Amended | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility expiration dates | 2018-10 | ||||
Maximum dividend and share repurchases | $ 250,000,000 | ||||
Leverage ratio for dividend payments and share repurchases | 1.5 | ||||
Unsecured Revolving Credit Facility | Revolving Credit Facility Two | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility expiration dates | 2020-07 | ||||
Financial letter of credit sublimit | $ 50,000,000 | ||||
Credit facilities utilized | 7,630,000 | ||||
Outstanding letters of credit | 2,757,000 | ||||
Available borrowing capacity under credit facility | $ 634,870,000 | ||||
Line of credit facility, original term | 5 years | ||||
Outstanding borrowings | $ 157,500,000 | ||||
Interest rate swap, interest rate | 4.30% | ||||
Unsecured Revolving Credit Facility | Amended Revolving Credit Facility Two | |||||
Debt Disclosure [Line Items] | |||||
Maximum borrowing capacity | $ 800,000,000 | ||||
Unsecured Revolving Credit Facility | Total Revolving Credit Facilities Member | |||||
Debt Disclosure [Line Items] | |||||
Weighted average interest rate | 2.30% | ||||
Maximum outstanding borrowings | $ 1,444,000,000 | ||||
Surety Bond | |||||
Debt Disclosure [Line Items] | |||||
Outstanding surety bonds | $ 826,383,000 | ||||
Prime Rate | Unsecured Revolving Credit Facility | Revolving Credit Facility One | |||||
Debt Disclosure [Line Items] | |||||
Basis on variable rate | 3.75% | ||||
Basis on variable spread | 1.00% | ||||
Prime Rate | Unsecured Revolving Credit Facility | Revolving Credit Facility Two | |||||
Debt Disclosure [Line Items] | |||||
Basis on variable spread | 1.00% | ||||
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility | Revolving Credit Facility One | |||||
Debt Disclosure [Line Items] | |||||
Basis on variable rate | 0.77% | ||||
Basis on variable spread | 2.00% | ||||
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility | Revolving Credit Facility Two | |||||
Debt Disclosure [Line Items] | |||||
Basis on variable rate | 0.77% | ||||
Basis on variable spread | 2.00% | ||||
Maximum | |||||
Debt Disclosure [Line Items] | |||||
Maximum leverage ratio | 3 | ||||
Debt Instrument, Covenant, Leverage Ratio Post Amendment | 3 | 3.50 | |||
Maximum | Unsecured Revolving Credit Facility | Revolving Credit Facility One Amended | |||||
Debt Disclosure [Line Items] | |||||
Minimum fixed charge coverage ratio | 3 | ||||
Minimum | |||||
Debt Disclosure [Line Items] | |||||
Minimum fixed charge coverage ratio | 1.75 | ||||
Minimum | Unsecured Revolving Credit Facility | Revolving Credit Facility One Amended | |||||
Debt Disclosure [Line Items] | |||||
Leverage ratio for dividend payments and share repurchases | 1.5 | ||||
Term Loan One | Term Loan | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility, original term | 4 years | ||||
Interest rate swap, interest rate | 2.30% | ||||
Unsecured term loan remaining | $ 300,000,000 | $ 450,000,000 | |||
Unsecured term loan | 1,000,000,000 | ||||
Term Loan One | Term Loan | Interest rate | |||||
Debt Disclosure [Line Items] | |||||
Hedge against interest rate variability | $ 290,375,000 | ||||
Term Loan Two | Term Loan | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Interest rate swap, interest rate | 2.30% | ||||
Unsecured term loan | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Repayment of unsecured term loan in year two | 56,250,000 | ||||
Repayment of unsecured term loan in year three | 75,000,000 | ||||
Repayment of unsecured term loan in year four | 75,000,000 | ||||
Repayment of unsecured term loan in year five | 293,750,000 | ||||
Capital Service Operations [Member] | Discontinued Operations, Held-for-sale | Uncommitted Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Credit facilities utilized | 25,000 | ||||
Capital Service Operations [Member] | Discontinued Operations, Held-for-sale | Surety Bond | |||||
Debt Disclosure [Line Items] | |||||
Outstanding surety bonds | 393,000 | ||||
Technology | Unsecured Revolving Credit Facility | Revolving Credit Facility Two | |||||
Debt Disclosure [Line Items] | |||||
Credit facilities utilized | 4,762,000 | ||||
Technology | Discontinued Operations, Held-for-sale | Uncommitted Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Credit facilities utilized | 69,117,000 | ||||
Technology | Discontinued Operations, Held-for-sale | Unsecured Revolving Credit Facility | Revolving Credit Facility One | |||||
Debt Disclosure [Line Items] | |||||
Revolving facility and other short-term borrowings | 4,680,000 | ||||
Technology | Discontinued Operations, Held-for-sale | Surety Bond | |||||
Debt Disclosure [Line Items] | |||||
Outstanding surety bonds | $ 4,404,000 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Senior notes | $ 800,000,000 | |
First Senior Notes | ||
Derivative [Line Items] | ||
Senior notes | 800,000,000 | $ 800,000,000 |
First Senior Notes | Level 2 | ||
Derivative [Line Items] | ||
Senior notes | 785,700,000 | 772,600,000 |
Second Senior Notes | ||
Derivative [Line Items] | ||
Senior notes | 200,000,000 | 200,000,000 |
Second Senior Notes | Level 2 | ||
Derivative [Line Items] | ||
Senior notes | 206,400,000 | 203,500,000 |
Term Loan | Term Loan One | ||
Derivative [Line Items] | ||
Unsecured term loan remaining | 300,000,000 | $ 450,000,000 |
Term Loan | Term Loan One | Interest rate | ||
Derivative [Line Items] | ||
Hedge against interest rate variability | 290,375,000 | |
Foreign Exchange Contract Operating Exposure | ||
Derivative [Line Items] | ||
Notional value of outstanding forward contracts | $ 139,100,000 | |
Foreign Exchange Contract Operating Exposure | Maximum | ||
Derivative [Line Items] | ||
Maturity of foreign currency derivatives from period-end | 5 years |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Assets | |||
Other current assets | [1] | $ 1,146 | $ 3,344 |
Other non-current assets | [1] | 82 | 180 |
Total assets at fair value | [1] | 1,228 | 3,524 |
Derivative Liabilities | |||
Other current liabilities | (3,509) | (7,568) | |
Other non-current liabilities | (725) | (607) | |
Total liabilities at fair value | (4,234) | (8,175) | |
Level 1 | |||
Derivative Assets | |||
Other current assets | [1] | 0 | 0 |
Other non-current assets | [1] | 0 | 0 |
Total assets at fair value | [1] | 0 | 0 |
Derivative Liabilities | |||
Other current liabilities | 0 | 0 | |
Other non-current liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Level 2 | |||
Derivative Assets | |||
Other current assets | [1] | 1,146 | 3,344 |
Other non-current assets | [1] | 82 | 180 |
Total assets at fair value | [1] | 1,228 | 3,524 |
Derivative Liabilities | |||
Other current liabilities | (3,509) | (7,568) | |
Other non-current liabilities | (725) | (607) | |
Total liabilities at fair value | (4,234) | (8,175) | |
Level 3 | |||
Derivative Assets | |||
Other current assets | [1] | 0 | 0 |
Other non-current assets | [1] | 0 | 0 |
Total assets at fair value | [1] | 0 | 0 |
Derivative Liabilities | |||
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 | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | $ 1,228 | |
Liability derivatives, fair value | (4,234) | |
Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 1,228 | $ 3,524 |
Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | (4,234) | (8,175) |
Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 49 | |
Liability derivatives, fair value | 0 | |
Foreign currency | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 1,179 | |
Liability derivatives, fair value | (4,234) | |
Derivatives designated as cash flow hedges | Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 158 | 1,415 |
Derivatives designated as cash flow hedges | Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | (536) | (2,050) |
Derivatives designated as cash flow hedges | Interest rate | Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 49 | 471 |
Derivatives designated as cash flow hedges | Interest rate | Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | 0 | (192) |
Derivatives designated as cash flow hedges | Foreign currency | Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 109 | 944 |
Derivatives designated as cash flow hedges | Foreign currency | Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | (536) | (1,858) |
Derivatives not designated as cash flow hedges | Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 1,070 | 2,109 |
Derivatives not designated as cash flow hedges | Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | (3,698) | (6,125) |
Derivatives not designated as cash flow hedges | Foreign currency | Other Current and Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 1,070 | 2,109 |
Derivatives not designated as cash flow hedges | Foreign currency | Other Current and Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ (3,698) | $ (6,125) |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Derivative Assets and Liabilities on Gross Basis and Net Settlement Basis (Detail) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Derivative Assets | |
Gross Amounts Recognized | $ 1,228 |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | 1,228 |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (245) |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 |
Net Amount | 983 |
Derivative Liabilities | |
Gross Amounts Recognized | (4,234) |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | (4,234) |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 245 |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 |
Net Amount | (3,989) |
Interest rate | |
Derivative Assets | |
Gross Amounts Recognized | 49 |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | 49 |
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 | 49 |
Derivative Liabilities | |
Gross Amounts Recognized | 0 |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | 0 |
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 | 0 |
Foreign currency | |
Derivative Assets | |
Gross Amounts Recognized | 1,179 |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | 1,179 |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | (245) |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 |
Net Amount | 934 |
Derivative Liabilities | |
Gross Amounts Recognized | (4,234) |
Gross Amounts Offset on the Balance Sheet | 0 |
Net Amounts Presented on the Balance Sheet | (4,234) |
Gross Amounts Not Offset on the Balance Sheet - Financial Instruments | 245 |
Gross Amounts Not Offset on the Balance Sheet - Cash Collateral Received | 0 |
Net Amount | $ (3,989) |
FINANCIAL INSTRUMENTS - Total V
FINANCIAL INSTRUMENTS - Total Value, by Underlying Risk, Recognized in Other Comprehensive Income and Reclassified from Accumulated Other Comprehensive Income to Interest Expense and Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | $ (660,752) | $ 168,419 | $ 132,548 | $ 119,962 | $ (47,044) | $ 185,888 | $ 156,749 | $ (725,554) | $ (239,823) | $ (429,961) | $ 636,125 | |
Derivatives designated as cash flow hedges | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Net unrealized losses anticipated to be reclassified into earnings during the next 12 months | 100 | |||||||||||
Derivatives designated as cash flow hedges | Cash flow hedging | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | (1,044) | (3,540) | ||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (1,345) | (5,886) | |||||||||
Derivatives designated as cash flow hedges | Cash flow hedging | Interest rate | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | (740) | (2,520) | ||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | (510) | (1,769) | |||||||||
Derivatives designated as cash flow hedges | Cash flow hedging | Foreign currency | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Recognized in OCI | (304) | (1,020) | ||||||||||
Amount of Gain (Loss) on Effective Derivative Portion Reclassified from AOCI into Earnings | [1] | $ (835) | $ (4,117) | |||||||||
[1] | Net unrealized losses totaling approximately $100 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. |
FINANCIAL INSTRUMENTS - Total75
FINANCIAL INSTRUMENTS - Total Value Recognized in Cost of Revenue for Foreign Currency Derivatives Not Designated as Cash Flow Hedges (Detail) - Derivatives not designated as cash flow hedges - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings | $ (15,287) | $ 7,225 |
Foreign currency | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings | $ (15,287) | $ 7,225 |
RETIREMENT BENEFITS - Additiona
RETIREMENT BENEFITS - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan cost recognized | $ 57,495 | $ 40,220 | $ 50,107 | |
Accumulated benefit obligation for all defined benefit plans | 799,619 | 768,127 | ||
Contributions to multi-employer plans for additional benefits | [1] | 59,939 | 79,563 | 61,089 |
Multiemployer Plans, Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to multi-employer plans for additional benefits | $ 49,932 | $ 57,364 | $ 45,977 | |
Minimum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | |||
Minimum | Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | |||
Minimum | Other Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Maximum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | |||
Maximum | Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 65.00% | |||
Maximum | Other Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | |||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rates projected at annual rates in next fiscal year | 6.00% | |||
Health care cost trend rates projected at annual rates | 5.00% | |||
[1] | Our 2016 contributions as a percentage of total plan contributions were not available for any of our plans. For 2015 and 2014, our contributions to the Utah Pipe Trades Pension Trust Fund, the Twin City Carpenters and Joiners Pension Fund, the Twin City Ironworkers Pension Plan, the Southern Ironworkers Pension Fund, the Plumbers and Steamfitters Local 150 Pension Fund and the Boilermakers’ National Pension Plan (Canada) each exceeded 5% of total plan contributions. The level of our contributions to each plan noted above varies from period to period based upon the level of work being performed that is covered under the applicable collective-bargaining agreement. |
RETIREMENT BENEFITS - Component
RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,531 | $ 9,757 | $ 8,251 |
Interest cost | 21,668 | 21,949 | 31,350 |
Expected return on plan assets | (25,193) | (27,136) | (34,887) |
Amortization of prior service credits | (606) | (609) | (468) |
Recognized net actuarial losses (gains) | 5,074 | 6,855 | 4,104 |
Net periodic benefit cost (income) | 9,474 | 10,816 | 8,350 |
Other Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 704 | 791 | 1,037 |
Interest cost | 1,361 | 1,545 | 2,279 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | 0 | 0 | 0 |
Recognized net actuarial losses (gains) | (3,361) | (2,696) | (863) |
Net periodic benefit cost (income) | $ (1,296) | $ (360) | $ 2,453 |
RETIREMENT BENEFITS - Change in
RETIREMENT BENEFITS - Change in Projected Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | $ 668,177 | |||
Fair value of plan assets at end of year | 663,838 | $ 668,177 | ||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 34,298 | 30,878 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 767,456 | 878,003 | ||
Service cost | 8,531 | 9,757 | $ 8,251 | |
Interest cost | 21,668 | 21,949 | 31,350 | |
Actuarial (gain) loss | [1] | 120,699 | (42,357) | |
Currency translation | [2] | (71,365) | (71,667) | |
Projected benefit obligation at end of year | 815,348 | 767,456 | 878,003 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 668,177 | 738,580 | ||
Actual return on plan assets | 75,241 | 880 | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | 34,298 | 30,878 | ||
Employer contributions | [3] | 15,757 | 15,978 | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 2,657 | 2,649 | ||
Currency translation | [2] | (63,696) | (59,032) | |
Fair value of plan assets at end of year | 663,838 | 668,177 | 738,580 | |
Funded status | (151,510) | (99,279) | ||
Amounts recognized in the balance sheet consist of: | ||||
Prepaid benefit cost within other non-current assets | 2,798 | 13,581 | ||
Accrued benefit cost within other current liabilities | (2,098) | (2,167) | ||
Accrued benefit cost within other non-current liabilities | (152,210) | (110,693) | ||
Net funded status recognized | (151,510) | (99,279) | ||
Unrecognized net prior service credits | (3,101) | (3,801) | ||
Unrecognized net actuarial losses (gains) | 183,282 | 131,085 | ||
Accumulated other comprehensive loss (income), before taxes | [4] | 180,181 | 127,284 | |
Expected contribution in next fiscal year | 15,900 | |||
Previously unrecognized net prior service credit expected to be recognized in next fiscal year | (600) | |||
Previously unrecognized net actuarial losses expected to be recognized in next fiscal year | 4,700 | |||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 2,657 | 2,649 | ||
Other Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 2,810 | 2,435 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 30,948 | 51,458 | ||
Service cost | 704 | 791 | 1,037 | |
Interest cost | 1,361 | 1,545 | 2,279 | |
Actuarial (gain) loss | [1] | 2,702 | (20,863) | |
Currency translation | [2] | 0 | 0 | |
Projected benefit obligation at end of year | 33,407 | 30,948 | 51,458 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | 2,810 | 2,435 | ||
Employer contributions | [3] | 2,308 | 1,983 | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 502 | 452 | ||
Currency translation | [2] | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 | |
Funded status | (33,407) | (30,948) | ||
Amounts recognized in the balance sheet consist of: | ||||
Prepaid benefit cost within other non-current assets | 0 | 0 | ||
Accrued benefit cost within other current liabilities | (2,476) | (2,432) | ||
Accrued benefit cost within other non-current liabilities | (30,931) | (28,516) | ||
Net funded status recognized | (33,407) | (30,948) | ||
Unrecognized net prior service credits | 0 | 0 | ||
Unrecognized net actuarial losses (gains) | (25,508) | (31,571) | ||
Accumulated other comprehensive loss (income), before taxes | [4] | (25,508) | (31,571) | |
Expected contribution in next fiscal year | 2,500 | |||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 502 | $ 452 | ||
[1] | The actuarial pension plan loss for 2016 was primarily associated with a decrease in discount rate assumptions for our pension plans. The actuarial pension plan gain for 2015 was primarily associated with an increase in the discount rate assumptions for our pension plans. The actuarial other postretirement plan gain for 2015 was primarily associated with an increase in the discount rate assumptions and a decrease in the percent of retiring employees electing medical coverage for our other postretirement plan. | |||
[2] | The currency translation loss for 2016 and 2015 was primarily associated with the strengthening of the U.S. Dollar against the currencies associated with our international pension plans, primarily the Euro and British Pound. | |||
[3] | During 2017, we expect to contribute approximately $15,900 and $2,500 to our pension and other postretirement plans, respectively. | |||
[4] | During 2017, we expect to recognize approximately $(600) and $4,700 of previously unrecognized net prior service pension credits and net actuarial pension losses, respectively. |
RETIREMENT BENEFITS - Defined B
RETIREMENT BENEFITS - Defined Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 704,709 | $ 657,027 |
Accumulated benefit obligation | 688,980 | 657,698 |
Fair value of plan assets | $ 550,399 | $ 544,168 |
RETIREMENT BENEFITS - Weighted-
RETIREMENT BENEFITS - Weighted-Average Assumptions Used to Measure Defined Benefit Pension and Other Postretirement Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations at December 31, | |||
Discount rate | 2.13% | 2.99% | |
Rate of compensation increase | [1] | 2.35% | 2.35% |
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, | |||
Discount rate | 2.99% | 2.68% | |
Expected long-term rate of return on plan assets | [2] | 3.93% | 3.86% |
Rate of compensation increase | [1] | 2.35% | 2.35% |
Other Postretirement Plans | |||
Weighted-average assumptions used to determine benefit obligations at December 31, | |||
Discount rate | 4.15% | 4.47% | |
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, | |||
Discount rate | 4.47% | 4.13% | |
[1] | The rate of compensation increase relates solely to the defined benefit plans that factor compensation increases into the valuation. | ||
[2] | The expected long-term rate of return on plan assets was derived using historical returns by asset category and expectations of future performance. |
RETIREMENT BENEFITS - Expected
RETIREMENT BENEFITS - Expected Defined Benefit Pension and Other Postretirement Plan Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 34,882 |
2,018 | 30,966 |
2,019 | 31,128 |
2,020 | 31,789 |
2,021 | 32,398 |
2022-2026 | 169,850 |
Other Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 2,476 |
2,018 | 2,471 |
2,019 | 2,446 |
2,020 | 2,408 |
2,021 | 2,337 |
2022-2026 | $ 10,820 |
RETIREMENT BENEFITS - Plan Asse
RETIREMENT BENEFITS - Plan Assets at Fair Value by Investment Category and Valuation Hierarchy Level (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 663,838 | $ 668,177 | |
Global Equities and Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3,259 | 2,278 | |
International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [1] | 148,794 | 161,032 |
Emerging Markets Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 17,046 | 15,505 | |
U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 13,767 | 20,158 | |
Euro Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [2] | 169,781 | 238,165 |
Euro Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [3] | 102,866 | 88,463 |
International Mortgage Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [4] | 58,017 | 0 |
All Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [5] | 46,537 | 63,085 |
Asset Allocation Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [6] | 103,771 | 79,491 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3,259 | 2,278 | |
Level 1 | Global Equities and Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3,259 | 2,278 | |
Level 1 | International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [1] | 0 | 0 |
Level 1 | Emerging Markets Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 | Euro Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [2] | 0 | 0 |
Level 1 | Euro Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [3] | 0 | 0 |
Level 1 | International Mortgage Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [4] | 0 | 0 |
Level 1 | All Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [5] | 0 | 0 |
Level 1 | Asset Allocation Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [6] | 0 | 0 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 660,579 | 665,899 | |
Level 2 | Global Equities and Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 | International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [1] | 148,794 | 161,032 |
Level 2 | Emerging Markets Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 17,046 | 15,505 | |
Level 2 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 13,767 | 20,158 | |
Level 2 | Euro Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [2] | 169,781 | 238,165 |
Level 2 | Euro Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [3] | 102,866 | 88,463 |
Level 2 | International Mortgage Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [4] | 58,017 | 0 |
Level 2 | All Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [5] | 46,537 | 63,085 |
Level 2 | Asset Allocation Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [6] | 103,771 | 79,491 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 | Global Equities and Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 | International Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [1] | 0 | 0 |
Level 3 | Emerging Markets Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 | Euro Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [2] | 0 | 0 |
Level 3 | Euro Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [3] | 0 | 0 |
Level 3 | International Mortgage Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [4] | 0 | 0 |
Level 3 | All Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [5] | 0 | 0 |
Level 3 | Asset Allocation Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | [6] | $ 0 | $ 0 |
[1] | Investments in various funds that track international indices. | ||
[2] | Investments in predominately EU government securities and U.K. Treasury securities with credit ratings primarily AAA. | ||
[3] | Investments in European and U.K. fixed interest securities with credit ratings of primarily BBB and above. | ||
[4] | Investments in international mortgage funds. | ||
[5] | Investments predominantly in various international fixed income obligations that are individually insignificant. | ||
[6] | Investments in fixed income securities, equities and alternative asset classes, including commodities and property assets. |
RETIREMENT BENEFITS - Additio83
RETIREMENT BENEFITS - Additional Information Regarding Significant Multi-Employer Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Multi Employer Pension Plans [Line Items] | ||||
Total Company Contributions | [1] | $ 59,939 | $ 79,563 | $ 61,089 |
Boilermaker-Blacksmith National Pension Trust | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 48-6168020-001 | |||
Pension Protection Act (% Funded) | [2] | Between 65 and less than 80 percent | Between 65 and less than 80 percent | |
FIP/RP Plan | [2] | Implemented | ||
Total Company Contributions | [1] | $ 26,375 | $ 23,079 | 20,602 |
Plumbers and Pipefitters National Pension Fund | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 52-6152779-001 | |||
Pension Protection Act (% Funded) | [2] | Between 65 and less than 80 percent | Between 65 and less than 80 percent | |
FIP/RP Plan | [2] | Implemented | ||
Total Company Contributions | [1] | $ 2,241 | $ 2,144 | 1,176 |
Utah Pipe Trades Pension Trust Fund | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 51-6077569-001 | |||
Pension Protection Act (% Funded) | [2] | At least 80 percent | At least 80 percent | |
FIP/RP Plan | [2] | No | ||
Total Company Contributions | [1] | $ 3,372 | $ 5,522 | 664 |
Expiration Date of Collective- Bargaining Agreement | [3] | 2019-07 | ||
Twin City Carpenters and Joiners Pension Fund | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 41-6043137-001 | |||
Pension Protection Act (% Funded) | [2] | Between 65 and less than 80 percent | Between 65 and less than 80 percent | |
FIP/RP Plan | [2] | Implemented | ||
Total Company Contributions | [1] | $ 1,295 | $ 5,469 | 6,010 |
Expiration Date of Collective- Bargaining Agreement | [3] | 2019-04 | ||
Twin City Ironworkers Pension Plan | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 41-6084127-001 | |||
Pension Protection Act (% Funded) | [2] | At least 80 percent | At least 80 percent | |
FIP/RP Plan | [2] | No | ||
Total Company Contributions | [1] | $ 731 | $ 2,102 | 2,791 |
Expiration Date of Collective- Bargaining Agreement | [3] | 2019-04 | ||
Middle Tennessee Carpenters and Millwrights Pension Fund (4) | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | [3] | 62-6101275-001 | ||
Pension Protection Act (% Funded) | [2] | At least 80 percent | At least 80 percent | |
FIP/RP Plan | [2] | No | ||
Total Company Contributions | [1],[3] | $ 0 | $ 6,524 | 2,881 |
Southern Ironworkers Pension Fund (4) | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | [3] | 59-6227091-001 | ||
Pension Protection Act (% Funded) | [2] | At least 80 percent | At least 80 percent | |
FIP/RP Plan | [2] | No | ||
Total Company Contributions | [1],[3] | $ 0 | $ 3,458 | 1,191 |
Plumber and Steamfitters Local 150 Pension Fund [Member] | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | [3] | 58-6116699-001 | ||
Pension Protection Act (% Funded) | [2] | At least 80 percent | At least 80 percent | |
FIP/RP Plan | [2] | No | ||
Total Company Contributions | [1],[3] | $ 0 | $ 3,510 | 1,502 |
Boilermakers’ National Pension Plan (Canada) | ||||
Multi Employer Pension Plans [Line Items] | ||||
EIN/Plan Number | 366,708 | |||
Pension Protection Act (% Funded) | [2] | NA | NA | |
FIP/RP Plan | [2] | NA | ||
Total Company Contributions | [1] | $ 6,709 | $ 8,645 | 10,795 |
Expiration Date of Collective- Bargaining Agreement | [3] | 2019-04 | ||
All Other | ||||
Multi Employer Pension Plans [Line Items] | ||||
Total Company Contributions | [1],[4] | $ 19,216 | $ 19,110 | $ 13,477 |
Minimum | Utah Pipe Trades Pension Trust Fund | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Minimum | Twin City Carpenters and Joiners Pension Fund | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Minimum | Twin City Ironworkers Pension Plan | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Minimum | Southern Ironworkers Pension Fund (4) | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Minimum | Plumber and Steamfitters Local 150 Pension Fund [Member] | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Minimum | Boilermakers’ National Pension Plan (Canada) | ||||
Multi Employer Pension Plans [Line Items] | ||||
Percentage of company contributions for pension plan of total plan contributions | 5.00% | 5.00% | ||
Multiemployer Plans, Postretirement Benefit | ||||
Multi Employer Pension Plans [Line Items] | ||||
Total Company Contributions | $ 49,932 | $ 57,364 | $ 45,977 | |
[1] | Our 2016 contributions as a percentage of total plan contributions were not available for any of our plans. For 2015 and 2014, our contributions to the Utah Pipe Trades Pension Trust Fund, the Twin City Carpenters and Joiners Pension Fund, the Twin City Ironworkers Pension Plan, the Southern Ironworkers Pension Fund, the Plumbers and Steamfitters Local 150 Pension Fund and the Boilermakers’ National Pension Plan (Canada) each exceeded 5% of total plan contributions. The level of our contributions to each plan noted above varies from period to period based upon the level of work being performed that is covered under the applicable collective-bargaining agreement. | |||
[2] | Pension Protection Act Zone Status and FIP/RP plans are applicable to our U.S.-registered plans only, as these terms are not defined within Canadian pension legislation. In the U.S., plans funded less than 65% are in the red zone, plans funded at least 65%, but less than 80% are in the yellow zone, and plans funded at least 80% are in the green zone. The requirement for FIP or RP plans in the U.S. is based on the funding level or zone status of the applicable plan. | |||
[3] | The contributions in 2015 and 2014 were associated with plans that were included with our former Nuclear Operations, which were sold on December 31, 2015. | |||
[4] | Our remaining contributions are to various U.S. and Canadian plans, which are individually immaterial. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Plaintiffclaim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 28, 2016USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Rent expense for operating leases | $ 90,113 | $ 123,805 | $ 118,199 | |
Contract Receivable | 231,000 | |||
Accrued litigation liability and related expenses | 9,200 | |||
Surety bonds and letters of credit insurance program | $ 89,743 | |||
Asbestos Litigation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Number of plaintiffs | Plaintiff | 6,000 | |||
Number of plaintiffs whose claims pending | claim | 1,200 | |||
Number of plaintiffs whose claims closed through dismissals or settlements | claim | 4,800 | |||
Settlement amount per claim | $ 2 | |||
WEC [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Closing Working Capital | $ (976,506) | |||
Target Working Capital | 2,150,506 | |||
Chicago Bridge And Iron | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Closing Working Capital | 1,601,805 | |||
Target Working Capital | $ 427,805 |
COMMITMENTS AND CONTINGENCIES85
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 56,948 |
2,018 | 44,156 |
2,019 | 36,362 |
2,020 | 28,936 |
2,021 | 23,835 |
Thereafter | 89,761 |
Total | $ 279,998 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) | Dec. 31, 2016 |
Equity [Abstract] | |
Treasury stock restrictions, percentage of issued share capital, maximum (no more than) | 10.00% |
SHAREHOLDERS' EQUITY - Changes
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income, Net of Tax (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | $ 2,163,590 |
Balance at December 31, 2016 | 1,561,337 |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (209,281) |
OCI before reclassifications | (55,281) |
Amounts reclassified from AOCI | 0 |
Net OCI | (55,281) |
Balance at December 31, 2016 | (264,562) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (967) |
OCI before reclassifications | 33 |
Amounts reclassified from AOCI | 721 |
Net OCI | 754 |
Balance at December 31, 2016 | (213) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (83,792) |
OCI before reclassifications | (48,833) |
Amounts reclassified from AOCI | 1,784 |
Net OCI | (47,049) |
Balance at December 31, 2016 | (130,841) |
Accumulated Other Comprehensive(Loss) Income | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (294,040) |
OCI before reclassifications | (104,081) |
Amounts reclassified from AOCI | 2,505 |
Net OCI | (101,576) |
Balance at December 31, 2016 | $ (395,616) |
SHAREHOLDERS' EQUITY - Signific
SHAREHOLDERS' EQUITY - Significant Items Reclassified From AOCI Into Earnings (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification adjustment from AOCI on derivatives | $ 1,345 |
Tax | (624) |
Total net of tax | 721 |
Amortization of prior service credits for continuing operations | (606) |
Recognized net actuarial losses for continuing operations | 1,713 |
Amortization of prior service credits for discontinued operations | (11) |
Amortization of prior service credits for discontinued operations | 645 |
Total before tax | 1,741 |
Tax | 43 |
Total net of tax | 1,784 |
Interest rate derivatives | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification adjustment from AOCI on derivatives | 510 |
Foreign currency derivatives | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification adjustment from AOCI on derivatives | $ 835 |
EQUITY-BASED INCENTIVE PLANS -
EQUITY-BASED INCENTIVE PLANS - Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 39,611 | $ 57,506 | $ 65,588 |
Stock-based compensation expense | 39,420 | 56,128 | 67,756 |
Unrecognized compensation cost related to share-based grants | $ 44,540 | ||
Weighted-average period for unrecognized compensation costs to be recognized | 1 year 8 months | ||
Recognized tax benefit related to share-based compensation | $ 10,377 | 16,924 | 19,394 |
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 36,921 | 53,086 | 64,613 |
Shares available for future stock option, restricted share or performance share grants | 5,979,000 | ||
ESPP shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 2,499 | $ 3,042 | $ 3,143 |
Employee stock purchase plan, percentage of maximum compensation to purchase share (up to) | 8.00% | ||
Employee stock purchase plan, percentage of share purchase price to closing price per share | 85.00% | ||
Employee stock purchase plan, authorized shares remained available for purchase | 2,757,000 | ||
Directors’ RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 1 year | ||
Shares granted (in shares) | 37,000 | 28,000 | 17,000 |
Weighted-average grant-date fair value per share (in usd per share) | $ 38.18 | ||
Shares distributed during the year (in shares) | 28,000 | ||
Vested (in usd per share) | $ 49.55 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 4 years | ||
Shares granted (in shares) | 1,043,000 | 535,000 | |
Weighted-average grant-date fair value per share (in usd per share) | $ 42.39 | $ 80.41 | |
Total fair value of vested shares | $ 26,469 | $ 28,081 | $ 17,093 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 0 | 0 |
Aggregate intrinsic value of options exercised | $ 533 | $ 1,126 | $ 12,218 |
Net cash proceeds from exercise of stock options | 1,525 | ||
Realized actual income tax benefit from exercise of stock options | $ 147 | ||
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 3 years | ||
Stock options expiration term (in years) | 10 years | ||
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted vesting period (in years) | 7 years | ||
Financial Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 2,020 | ||
Options granted vesting period (in years) | 3 years | ||
Shares granted (in shares) | 665,000 | 702,000 | 312,000 |
Weighted-average grant-date fair value per share (in usd per share) | $ 33.56 | $ 41.67 | $ 79.86 |
Shares distributed during the year (in shares) | 370,000 | ||
Vested (in usd per share) | $ 66.10 | ||
Total fair value of vested shares | $ 24,446 | $ 23,463 | $ 50,244 |
Stock Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 2,908 | ||
Options granted vesting period (in years) | 3 years | 4 years | |
Shares granted (in shares) | 166,000 | 130,000 | 0 |
Weighted-average grant-date fair value per share (in usd per share) | $ 37.41 | $ 37.35 | |
Shares distributed during the year (in shares) | 0 | 0 | |
Risk-free interest rate (as a percent) | 0.86% | 1.10% | |
Expected volatility rate (as a percent) | 39.00% | 38.00% | |
Expected life of options granted (in years) | 3 years 11 months 10 days | 2 years 10 months 12 days | |
Expected dividend yield (as a percent) | 0.69% | ||
Discontinued Operations, Held-for-sale | Capital Services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,792 | $ 4,738 | $ 5,138 |
Unrecognized compensation cost related to share-based grants | 4,437 | ||
Recognized tax benefit related to share-based compensation | 527 | 854 | 379 |
Discontinued Operations, Held-for-sale | Capital Services | Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 2,374 | 4,203 | 4,555 |
Discontinued Operations, Held-for-sale | Capital Services | ESPP shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 418 | 535 | 583 |
Discontinued Operations, Held-for-sale | Capital Services | Financial Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 187 | ||
Discontinued Operations, Held-for-sale | Capital Services | Stock Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 135 | ||
Discontinued Operations, Held-for-sale | Technology | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,153 | 4,791 | 6,506 |
Unrecognized compensation cost related to share-based grants | 3,003 | ||
Recognized tax benefit related to share-based compensation | 477 | 680 | 776 |
Discontinued Operations, Held-for-sale | Technology | Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 3,862 | 4,475 | 6,267 |
Discontinued Operations, Held-for-sale | Technology | ESPP shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 291 | $ 316 | $ 239 |
Discontinued Operations, Held-for-sale | Technology | Financial Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 187 | ||
Discontinued Operations, Held-for-sale | Technology | Stock Performance-Based Grants | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 176 |
EQUITY-BASED INCENTIVE PLANS 90
EQUITY-BASED INCENTIVE PLANS - Restricted Share Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 39,611 | $ 57,506 | $ 65,588 |
Nonvested RSUs | |||
Shares | |||
Balance at beginning of year (in shares) | 1,385,000 | ||
Granted (in shares) | 1,021,000 | ||
Vested (in shares) | (492,000) | ||
Forfeited (in shares) | (80,000) | ||
Balance at end of year (in shares) | 1,834,000 | 1,385,000 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Balance at beginning of year (in usd per share) | $ 51.65 | ||
Granted (in usd per share) | 33.19 | ||
Vested (in usd per share) | 50.99 | ||
Forfeited (in usd per share) | 41.51 | ||
Balance at end of year (in usd per share) | $ 41.99 | $ 51.65 | |
Directors’ RSUs | |||
Shares | |||
Balance at beginning of year (in shares) | 28,000 | ||
Granted (in shares) | 37,000 | 28,000 | 17,000 |
Vested (in shares) | (28,000) | ||
Balance at end of year (in shares) | 37,000 | 28,000 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Balance at beginning of year (in usd per share) | $ 49.55 | ||
Granted (in usd per share) | 38.18 | ||
Vested (in usd per share) | 49.55 | ||
Balance at end of year (in usd per share) | $ 38.18 | $ 49.55 | |
Financial Performance-Based Grants | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 2,020 | ||
Shares | |||
Granted (in shares) | 665,000 | 702,000 | 312,000 |
Vested (in shares) | (370,000) | ||
Weighted-Average Grant-Date Fair Value per Share | |||
Granted (in usd per share) | $ 33.56 | $ 41.67 | $ 79.86 |
Vested (in usd per share) | $ 66.10 | ||
Stock Performance-Based Grants | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 2,908 | ||
Shares | |||
Granted (in shares) | 166,000 | 130,000 | 0 |
Vested (in shares) | 0 | 0 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Granted (in usd per share) | $ 37.41 | $ 37.35 | |
Discontinued Operations, Held-for-sale [Member] | Financial Performance-Based Grants | Capital Services [Member] | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 187 | ||
Discontinued Operations, Held-for-sale [Member] | Financial Performance-Based Grants | Technology | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 187 | ||
Discontinued Operations, Held-for-sale [Member] | Stock Performance-Based Grants | Capital Services [Member] | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 135 | ||
Discontinued Operations, Held-for-sale [Member] | Stock Performance-Based Grants | Technology | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 176 |
EQUITY-BASED INCENTIVE PLANS 91
EQUITY-BASED INCENTIVE PLANS - Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)$ / sharesshares | ||
Number of Shares | ||
Outstanding options at beginning of year (in shares) | shares | 680 | |
Exercised (in shares) | shares | (59) | |
Forfeited / Expired (in shares) | shares | (23) | |
Outstanding options at end of year (in shares) | shares | 598 | [1] |
Exercisable options at end of year (in shares) | shares | 575 | |
Weighted Average Exercise Price per Share | ||
Outstanding options at beginning of year (in usd per share) | $ / shares | $ 21.32 | |
Exercised (in usd per share) | $ / shares | 26.06 | |
Forfeited / Expired (in usd per share) | $ / shares | 57.38 | |
Outstanding options at end of year (in usd per share) | $ / shares | 19.47 | |
Exercisable options at end of year (in usd per share) | $ / shares | $ 19.21 | |
Weighted Average Remaining Contractual Life (in Years) | ||
Outstanding options at end of year (in years) | 2 years | |
Exercisable options at end of year (in years) | 1 year 11 months | |
Aggregate Intrinsic Value | ||
Outstanding options at end of year | $ | $ 9,361 | |
Exercisable options at end of year | $ | $ 9,217 | |
Unvested option outstanding (in shares) | shares | 596 | |
Weighted-average exercise price of unvested option (in usd per share) | $ / shares | $ 19.45 | |
Weighted-average remaining contractual life of unvested option (in years) | 2 years | |
Aggregate intrinsic value of unvested option | $ | $ 9,350 | |
[1] | We estimate that 596 of these options will ultimately vest. These options have a weighted-average exercise price per share of $19.45, a weighted-average remaining contractual life of 2.0 years and a current aggregate intrinsic value of $9,350. |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense by Tax Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Sources of (Loss) Income Before Taxes | ||||
U.S. | $ (148,861) | $ (1,159,645) | $ 217,210 | |
Non-U.S. | 375,925 | 395,989 | 487,762 | |
Income (loss) from continuing operations before taxes | 227,064 | (763,656) | 704,972 | |
Current income taxes | ||||
U.S. Federal | [1] | 2,502 | (1,497) | (34,445) |
U.S. State | (13,976) | (74) | (338) | |
Non-U.S. | (67,617) | (64,954) | (108,775) | |
Total current income taxes | (79,091) | (66,525) | (143,558) | |
Deferred income taxes | ||||
U.S. Federal | 123,431 | 259,065 | (40,742) | |
U.S. State | 6,052 | (7,156) | 10,890 | |
Non-U.S. | 10,989 | (30,381) | (27,643) | |
Total deferred income taxes | 140,472 | 221,528 | (57,495) | |
Total income tax benefit (expense) | 61,381 | 155,003 | (201,053) | |
Tax expense (benefit) associated with share-based compensation recorded in additional paid-in capital | $ 5,395 | $ 4,477 | $ 11,249 | |
[1] | Tax expense of $5,395 and $4,477, and tax benefit of $11,249 associated with share-based compensation were recorded in APIC in 2016, 2015 and 2014, respectively. |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Taxes at Netherlands' Statutory Rate and Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Income Taxes at The Netherlands' Statutory Rate and Income Tax Expense | |||
Income tax (expense) benefit at statutory rate (25.0% for 2016, 2015 and 2014) | $ (56,766) | $ 190,914 | $ (176,243) |
U.S. State income taxes | (5,151) | (4,700) | (7,115) |
Non-deductible meals and entertainment | (8,123) | (8,416) | (6,505) |
Non-U.S. valuation allowance established | (10,119) | (2,588) | (12,551) |
Non-U.S. valuation allowance utilized | 18,782 | 5,210 | 12,845 |
Statutory tax rate differential | 14,623 | 118,592 | (23,110) |
Branch and withholding taxes (net of tax benefit) | 0 | 659 | (162) |
Unremitted earnings of subsidiaries | 64,376 | (10,369) | 0 |
Noncontrolling interests | 20,165 | 19,427 | 22,094 |
Non-deductible goodwill impairment | (158,585) | ||
Non taxable interest income | 18,856 | 0 | 0 |
Other, net | 4,738 | 4,859 | (10,306) |
Total income tax benefit (expense) | $ 61,381 | $ 155,003 | $ (201,053) |
Effective tax rate | (27.00%) | 20.30% | 28.50% |
Statutory rate | 25.00% | 25.00% | 25.00% |
INCOME TAXES - Principal Tempor
INCOME TAXES - Principal Temporary Differences Included in Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
U.S. Federal operating losses and credits | $ 595,630 | $ 626,232 |
U.S. State operating losses and credits | 203,165 | 195,996 |
Non-U.S. operating losses | 50,410 | 56,612 |
Contract revenue and cost | 55,748 | 63,876 |
Employee compensation and benefit plan reserves | 80,733 | 75,754 |
Insurance and legal reserves | 16,209 | 25,215 |
Disallowed interest | 117,558 | 124,876 |
Other | 64,810 | 9,520 |
Total deferred tax assets | 1,184,263 | 1,178,081 |
Valuation allowance | (160,568) | (167,053) |
Net deferred tax assets | 1,023,695 | 1,011,028 |
Deferred Tax Liabilities | ||
Investment in foreign subsidiaries | (14,644) | (79,021) |
Depreciation and amortization | (291,722) | (308,619) |
Net deferred tax liabilities | (306,366) | (387,640) |
Net total deferred tax assets | $ 717,329 | $ 623,388 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Undistributed earnings | $ 397,000 | $ 397,000 | |||||
Increase (decrease) in valuation allowance related to the UK NOL DTA | 8,700 | $ 62,600 | |||||
Income tax expense (benefit) | (61,381) | (155,003) | $ 201,053 | ||||
Non-U.S. NOLs | 221,500 | 221,500 | |||||
Tax credit carryforwards | 27,400 | 27,400 | |||||
Other tax credit | 29,900 | 29,900 | |||||
Unrecognized income tax benefits | 14,162 | [1] | $ 14,162 | [1] | $ 9,140 | [1] | $ 13,458 |
Tax years remaining subject to examination, earliest year | 2,006 | ||||||
UK | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Non-U.S. NOLs | 117,500 | $ 117,500 | |||||
UK | Minimum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,017 | ||||||
UK | Maximum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,036 | ||||||
Other Foreign Jurisdiction | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Non-U.S. NOLs | 104,000 | $ 104,000 | |||||
Outside United States | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
NOL, net of apportionment that will not be utilized | 58,500 | 58,500 | |||||
NOL deferred tax asset | 31,600 | 31,600 | |||||
Federal | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
NOL deferred tax asset | 548,600 | 548,600 | |||||
Net operating loss carryforwards | 1,567,400 | 1,567,400 | |||||
U.S.-State NOLs | 193,100 | 193,100 | |||||
State NOL, net of apportionment that will not be utilized | 136,900 | 136,900 | |||||
State and local operation loss carryforward | 56,200 | ||||||
Federal | Expiration Year, 2033 | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Net operating loss carryforwards | 413,100 | 413,100 | |||||
Federal | Expiration Year, 2035 | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Net operating loss carryforwards | 1,154,300 | $ 1,154,300 | |||||
Federal | Minimum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,033 | ||||||
Federal | Maximum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,035 | ||||||
State and Local Jurisdiction [Member] | Minimum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,017 | ||||||
State and Local Jurisdiction [Member] | Maximum | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Expiration period for NOLs | 2,036 | ||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Increase (decrease) in valuation allowance related to the UK NOL DTA | $ 58,000 | ||||||
Reversal of Deferred Tax Liability | |||||||
Schedule of Unrecognized Tax Benefits [Line Items] | |||||||
Income tax expense (benefit) | $ (67,000) | ||||||
[1] | If these income tax benefits were ultimately recognized, approximately $11,000 and $6,000 of the December 31, 2016 and 2015 balances, respectively, would benefit tax expense as we are contractually indemnified for the remaining balances. |
INCOME TAXES - Reconciliation96
INCOME TAXES - Reconciliation of Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized income tax benefits at the beginning of the year | $ 9,140 | [1] | $ 13,458 | |
Increase as a result of: | ||||
Tax positions taken during the current period | 6,038 | 1,313 | ||
Decreases as a result of: | ||||
Lapse of applicable statute of limitations | 0 | (2,927) | ||
Settlements with taxing authorities | (1,016) | (2,704) | ||
Unrecognized income tax benefits at the end of the year | [1] | 14,162 | 9,140 | |
Benefit to tax expense | $ 11,000 | $ 6,000 | ||
[1] | If these income tax benefits were ultimately recognized, approximately $11,000 and $6,000 of the December 31, 2016 and 2015 balances, respectively, would benefit tax expense as we are contractually indemnified for the remaining balances. |
UNAPPROVED CHANGE ORDERS, CLA97
UNAPPROVED CHANGE ORDERS, CLAIMS, INCENTIVES AND OTHER PROJECT MATTERS - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Projects | Dec. 31, 2015USD ($) | |
Schedule Of Unapproved Claims And Change Orders [Line Items] | ||
Cumulative partial payments | $ 141,100 | |
Decrease to income from operations | (328,000) | |
Increase to operating income | $ 124,000 | |
Number of Projects | Projects | 2 | |
All Other | ||
Schedule Of Unapproved Claims And Change Orders [Line Items] | ||
Unapproved change orders and claims | $ 121,100 | $ 91,700 |
Incentive amounts included in project price | $ 43,000 | $ 91,500 |
Engineering & Construction | ||
Schedule Of Unapproved Claims And Change Orders [Line Items] | ||
Percent of Project Completed | 65.00% | |
Reserve for estimated losses | $ 49,000 | |
Fabrication Services | ||
Schedule Of Unapproved Claims And Change Orders [Line Items] | ||
Percent of Project Completed | 75.00% | |
Reserve for estimated losses | $ 5,000 |
- Additional Information (Detai
- Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Number of business sectors | segment | 2 | |||||||||||||||||||
Revenue | $ 1,927,884 | $ 2,137,877 | $ 2,045,594 | $ 2,017,242 | $ 2,540,807 | $ 2,478,837 | $ 2,405,418 | $ 2,515,855 | $ 8,128,597 | $ 9,940,917 | $ 10,261,046 | |||||||||
Asset impairment charges | 1,505,851 | |||||||||||||||||||
(Loss) income from operations | 223,210 | (762,934) | 703,483 | |||||||||||||||||
Loss on net assets sold and intangible assets impairment | $ (148,148) | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ (345,371) | [2] | $ 0 | [2] | $ 0 | [2] | $ (707,380) | [2] | 148,148 | 1,052,751 | 0 | |
Engineering & Construction | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | 6,206,150 | 7,827,633 | 7,707,400 | |||||||||||||||||
(Loss) income from operations | [3] | 137,049 | (892,671) | 498,983 | ||||||||||||||||
Engineering & Construction | Customer Concentration Risk [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 1,179,000 | $ 1,081,000 | ||||||||||||||||||
Percentage of total revenue from one customer within CB&I Lummus | 12.00% | 11.00% | ||||||||||||||||||
Fabrication Services | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | 1,922,447 | $ 2,113,284 | $ 2,553,646 | |||||||||||||||||
(Loss) income from operations | 86,161 | 129,737 | 230,856 | |||||||||||||||||
Intersegment Eliminations | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | 233,900 | 312,300 | 374,300 | |||||||||||||||||
All Other | Customer Concentration Risk [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 1,136,000 | $ 1,647,000 | $ 1,956,000 | |||||||||||||||||
Percentage of total revenue from one customer within CB&I Lummus | 14.00% | 17.00% | 19.00% | |||||||||||||||||
United States | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 5,478,820 | $ 6,045,430 | $ 4,433,397 | |||||||||||||||||
Percentage of company assets | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | |||||||||||||||
Chevron Lummus Global | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Percentage of equity investment | 50.00% | 50.00% | ||||||||||||||||||
Chicago Bridge And Iron | Net Power | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Percentage of equity investment | 33.30% | 33.30% | ||||||||||||||||||
Discontinued Operations, Held-for-sale | Intersegment Eliminations | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 297,692 | $ 177,001 | $ 121,657 | |||||||||||||||||
Customer One | Engineering & Construction | Customer Concentration Risk [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 1,605,000 | |||||||||||||||||||
Percentage of total revenue from one customer within CB&I Lummus | 20.00% | |||||||||||||||||||
Customer Two | Engineering & Construction | Customer Concentration Risk [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue | $ 1,099,000 | |||||||||||||||||||
Percentage of total revenue from one customer within CB&I Lummus | 14.00% | |||||||||||||||||||
[1] | we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | |||||||||||||||||||
[2] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). | |||||||||||||||||||
[3] | As discussed further in Note 4, during 2015 we recorded a non-cash pre-tax charge of approximately $1,505,900 within our Engineering & Construction operating group related to the sale of our Nuclear Operations. In addition, during 2016 we recorded a non-cash pre-tax charge of approximately $148,100 resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. |
SEGMENT AND RELATED INFORMATI99
SEGMENT AND RELATED INFORMATION - Total Revenue and Income from Operations by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Revenue | $ 1,927,884 | $ 2,137,877 | $ 2,045,594 | $ 2,017,242 | $ 2,540,807 | $ 2,478,837 | $ 2,405,418 | $ 2,515,855 | $ 8,128,597 | $ 9,940,917 | $ 10,261,046 | ||||||||||
Depreciation And Amortization | 122,522 | 161,135 | 181,398 | ||||||||||||||||||
Equity Earnings (Loss) | 5,736 | (7,665) | (1,374) | ||||||||||||||||||
Income (Loss) From Continuing Operations | 223,210 | (762,934) | 703,483 | ||||||||||||||||||
Capital Expenditures | 52,462 | 78,852 | 117,624 | ||||||||||||||||||
Asset impairment charges | 1,505,851 | ||||||||||||||||||||
Loss on net assets sold and intangible assets impairment | (148,148) | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | (345,371) | [2] | 0 | [2] | 0 | [2] | (707,380) | [2] | 148,148 | 1,052,751 | 0 | ||
Assets | 7,839,420 | 9,192,060 | 7,839,420 | 9,192,060 | 9,369,830 | ||||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 227,064 | (763,656) | 704,972 | ||||||||||||||||||
Goodwill impairment | 655,000 | 0 | [2] | $ 453,100 | $ 0 | [2] | $ 0 | [2] | $ 453,100 | [2] | 0 | 453,100 | 0 | ||||||||
Engineering & Construction | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Revenue | 6,206,150 | 7,827,633 | 7,707,400 | ||||||||||||||||||
Depreciation And Amortization | 18,602 | 49,863 | 63,928 | ||||||||||||||||||
Equity Earnings (Loss) | 7,222 | (3,853) | (1,297) | ||||||||||||||||||
Income (Loss) From Continuing Operations | [3] | 137,049 | (892,671) | 498,983 | |||||||||||||||||
Capital Expenditures | 4,476 | 15,811 | 46,798 | ||||||||||||||||||
Assets | 3,738,303 | 4,129,531 | 3,738,303 | 4,129,531 | 4,651,080 | ||||||||||||||||
Goodwill impairment | [4] | 453,100 | |||||||||||||||||||
Fabrication Services | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Revenue | 1,922,447 | 2,113,284 | 2,553,646 | ||||||||||||||||||
Depreciation And Amortization | 53,034 | 54,697 | 59,138 | ||||||||||||||||||
Equity Earnings (Loss) | (1,486) | (3,812) | (77) | ||||||||||||||||||
Income (Loss) From Continuing Operations | 86,161 | 129,737 | 230,856 | ||||||||||||||||||
Capital Expenditures | 32,542 | 42,541 | 49,479 | ||||||||||||||||||
Assets | 2,114,637 | 2,295,523 | 2,114,637 | 2,295,523 | 1,997,414 | ||||||||||||||||
Goodwill impairment | [4] | 0 | 0 | ||||||||||||||||||
Total operating groups | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Income (Loss) From Continuing Operations | 223,210 | (762,934) | 729,839 | ||||||||||||||||||
Integration related costs | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Income (Loss) From Continuing Operations | 0 | 0 | (26,356) | ||||||||||||||||||
Engineering and Construction, Fabrication Services, Technology | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Revenue | 8,128,597 | 9,940,917 | 10,261,046 | ||||||||||||||||||
Depreciation And Amortization | 71,636 | 104,560 | 123,066 | ||||||||||||||||||
Equity Earnings (Loss) | 5,736 | (7,665) | (1,374) | ||||||||||||||||||
Income (Loss) From Continuing Operations | 223,210 | (762,934) | 703,483 | ||||||||||||||||||
Capital Expenditures | 37,018 | 58,352 | 96,277 | ||||||||||||||||||
Assets | 5,852,940 | 6,425,054 | 5,852,940 | 6,425,054 | 6,648,494 | ||||||||||||||||
Sale of Capital Services | Discontinued Operations, Held-for-sale [Member] | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Assets | 1,644,751 | ||||||||||||||||||||
Total assets of discontinued operations | 876,876 | 1,615,622 | 876,876 | 1,615,622 | |||||||||||||||||
Goodwill impairment | 655,000 | ||||||||||||||||||||
Discontinued Operations, Held-for-sale [Member] | Technology | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Total assets of discontinued operations | $ 1,109,604 | $ 1,151,384 | $ 1,109,604 | $ 1,151,384 | $ 1,076,585 | ||||||||||||||||
[1] | we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | ||||||||||||||||||||
[2] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). | ||||||||||||||||||||
[3] | As discussed further in Note 4, during 2015 we recorded a non-cash pre-tax charge of approximately $1,505,900 within our Engineering & Construction operating group related to the sale of our Nuclear Operations. In addition, during 2016 we recorded a non-cash pre-tax charge of approximately $148,100 resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | ||||||||||||||||||||
[4] | At December 31, 2016, we had approximately $453,100 of cumulative impairment losses, which were recorded in our Engineering & Construction operating group during 2015 related to the sale of our Nuclear Operations on December 31, 2015. |
SEGMENT AND RELATED INFORMAT100
SEGMENT AND RELATED INFORMATION - Total Revenue by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Revenue | $ 1,927,884 | $ 2,137,877 | $ 2,045,594 | $ 2,017,242 | $ 2,540,807 | $ 2,478,837 | $ 2,405,418 | $ 2,515,855 | $ 8,128,597 | $ 9,940,917 | $ 10,261,046 | |
United States | ||||||||||||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Revenue | 5,478,820 | 6,045,430 | 4,433,397 | |||||||||
Australia | ||||||||||||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Revenue | 1,744,055 | 2,168,737 | 2,495,185 | |||||||||
Columbia [Member] | ||||||||||||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Revenue | [1] | 26,329 | 456,850 | 1,080,093 | ||||||||
Other | ||||||||||||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Revenue | [1] | $ 879,393 | $ 1,269,900 | $ 2,252,371 | ||||||||
Other | Maximum | ||||||||||||
Geographic Reporting Disclosure [Line Items] | ||||||||||||
Maximum percentage of revenue earned in other individual country | 10.00% | 10.00% | 10.00% | |||||||||
[1] | Revenue earned in other countries, including The Netherlands (our country of domicile), was not individually greater than 10% of our consolidated revenue in 2016, 2015 or 2014. |
SUBSEQUENT EVENTS Additional In
SUBSEQUENT EVENTS Additional Information (Details) | Dec. 18, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares |
Subsequent Event [Line Items] | |||
Common stock, shares issued | 108,857,000 | 108,857,000 | |
McDermott | |||
Subsequent Event [Line Items] | |||
Percentage of equity investment | 53.00% | ||
The Combination | |||
Subsequent Event [Line Items] | |||
Percentage of equity investment | 47.00% | ||
McDermott International, Inc. | |||
Subsequent Event [Line Items] | |||
Common stock, shares issued | 2.47221 | ||
Shares issued during period, stock splits | 0.82407 | ||
Reverse stock split, conversion ratio | 0.3333 |
QUARTERLY OPERATING RESULTS 102
QUARTERLY OPERATING RESULTS (UNAUDITED) - Consolidated Financial Information on a Quarterly Basis (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||||
Revenue | $ 1,927,884 | $ 2,137,877 | $ 2,045,594 | $ 2,017,242 | $ 2,540,807 | $ 2,478,837 | $ 2,405,418 | $ 2,515,855 | $ 8,128,597 | $ 9,940,917 | $ 10,261,046 | |||||||||
Gross profit | 19,904 | 216,983 | 198,268 | 194,069 | 275,339 | 273,567 | 261,936 | 257,929 | 629,224 | 1,068,771 | 1,067,616 | |||||||||
Goodwill impairment | 655,000 | 0 | [1] | $ 453,100 | 0 | [1] | 0 | [1] | 453,100 | [1] | 0 | 453,100 | 0 | |||||||
Loss on net assets sold and intangible assets impairment | (148,148) | [2] | 0 | [2] | 0 | [2] | 0 | [2] | (345,371) | [1] | 0 | [1] | 0 | [1] | (707,380) | [1] | 148,148 | 1,052,751 | 0 | |
Net income (loss) from continuing operations | (44,221) | [3] | 133,076 | [3] | 108,062 | [3] | 91,528 | [3] | (104,657) | 148,718 | 114,026 | (766,740) | 288,445 | (608,653) | 503,919 | |||||
Net (loss) income from discontinued operations (Note 5) | (616,531) | 35,343 | 24,486 | 28,434 | 57,613 | 37,170 | 42,723 | 41,186 | (528,268) | 178,692 | 132,206 | |||||||||
Net (loss) income | (660,752) | 168,419 | 132,548 | 119,962 | (47,044) | 185,888 | 156,749 | (725,554) | (239,823) | (429,961) | 636,125 | |||||||||
Net income (loss) from continuing operations attributable to CB&I | (48,790) | 87,347 | 99,790 | 78,939 | (122,285) | 132,820 | 89,902 | (781,033) | 217,286 | (680,596) | 413,277 | |||||||||
Net income from discontinued operations attributable to CB&I | (616,903) | 34,413 | 24,049 | 27,986 | 56,560 | 36,695 | 42,326 | 40,600 | (530,455) | 176,181 | 130,330 | |||||||||
Net (loss) income attributable to CB&I | $ (665,693) | $ 121,760 | $ 123,839 | $ 106,925 | $ (65,725) | $ 169,515 | $ 132,228 | $ (740,433) | $ (313,169) | $ (504,415) | $ 543,607 | |||||||||
Net (loss) income attributable to CB&I per share (Basic): | ||||||||||||||||||||
Continuing operations, Basic (dollars per share) | $ (0.49) | $ 0.86 | $ 0.95 | $ 0.75 | $ (1.17) | $ 1.22 | $ 0.83 | $ (7.41) | $ 2.11 | $ (6.37) | $ 3.82 | |||||||||
Discontinued operations, Basic (dollars per share) | (6.16) | 0.34 | 0.23 | 0.27 | 0.54 | 0.34 | 0.39 | 0.39 | (5.16) | 1.65 | 1.21 | |||||||||
Net income (loss) attributable to CB&I per share—basic (in dollars per share) | (6.65) | 1.20 | 1.18 | 1.02 | (0.63) | 1.56 | 1.22 | (7.02) | (3.05) | (4.72) | 5.03 | |||||||||
Net (loss) income attributable to CB&I per share (Diluted): | ||||||||||||||||||||
Continuing operations, Diluted (dollars per share) | (0.49) | 0.86 | 0.94 | 0.75 | (1.17) | 1.21 | 0.82 | (7.41) | 2.10 | (6.37) | 3.79 | |||||||||
Discontinued operations, Diluted (dollars per share) | (6.16) | 0.34 | 0.23 | 0.26 | 0.54 | 0.34 | 0.39 | 0.39 | (5.12) | 1.65 | 1.19 | |||||||||
Net income (loss) attributable to CB&I per share—diluted (in dollars per share) | $ (6.65) | $ 1.20 | $ 1.17 | $ 1.01 | $ (0.63) | $ 1.55 | $ 1.21 | $ (7.02) | $ (3.02) | $ (4.72) | $ 4.98 | |||||||||
Disposal group consideration, present value, net | $ 96,300 | |||||||||||||||||||
Income tax expense (benefit) | (61,381) | $ (155,003) | $ 201,053 | |||||||||||||||||
Asset impairment charges | 1,505,851 | |||||||||||||||||||
Non-cash after-tax impairment charge | $ 1,135,200 | |||||||||||||||||||
Intangible assets impairment | 79,100 | |||||||||||||||||||
Loss on net assets sold | $ 345,400 | $ 628,300 | $ 973,651 | |||||||||||||||||
Reversal of Deferred Tax Liability | ||||||||||||||||||||
Net (loss) income attributable to CB&I per share (Diluted): | ||||||||||||||||||||
Income tax expense (benefit) | $ (67,000) | |||||||||||||||||||
[1] | In 2015, we recorded a non-cash pre-tax charge of approximately $1,505,900 (approximately $1,135,200 after-tax) related to the impairment of goodwill (approximately $453,100 recorded in the third quarter) and intangible assets (approximately $79,100 recorded in the third quarter) and a loss on net assets sold (approximately $628,300 and $345,400 recorded in the third and fourth quarters, respectively). | |||||||||||||||||||
[2] | we recorded a non-cash pre-tax charge of approximately $148,100 (approximately $96,300 after-tax) resulting from a reserve for the Transaction Receivable associated with the 2015 sale of our Nuclear Operations. | |||||||||||||||||||
[3] | In the fourth quarter 2016, we recorded an income tax benefit of approximately $67,000 resulting from the reversal of a deferred tax liability associated with historical earnings of a non-U.S. subsidiary for which the earnings are no longer anticipated to be subject to tax. |