Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Babcock & Wilcox Co | ' |
Entity Central Index Key | '0001486957 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 107,461,329 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $215,918 | $346,116 |
Restricted cash and cash equivalents | 39,660 | 45,945 |
Investments | 4,249 | 10,748 |
Accounts receivable - trade, net | 381,761 | 360,323 |
Accounts receivable - other | 64,325 | 45,480 |
Contracts in progress | 341,019 | 370,820 |
Inventories | 112,971 | 113,058 |
Deferred income taxes | 99,123 | 97,170 |
Other current assets | 70,645 | 47,764 |
Total Current Assets | 1,329,671 | 1,437,424 |
Property, Plant and Equipment | 1,178,357 | 1,126,683 |
Less accumulated depreciation | 708,789 | 679,604 |
Net Property, Plant and Equipment | 469,568 | 447,079 |
Investments | 4,503 | 4,426 |
Goodwill | 396,829 | 281,708 |
Deferred Income Taxes | 96,811 | 127,076 |
Investments in Unconsolidated Affiliates | 158,927 | 184,831 |
Intangible Assets | 119,852 | 81,521 |
Other Assets | 49,892 | 45,088 |
TOTAL | 2,626,053 | 2,609,153 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Notes payable and current maturities of long-term debt | 7,447 | 4,671 |
Accounts payable | 199,860 | 319,774 |
Accrued employee benefits | 98,135 | 163,833 |
Accrued liabilities - other | 79,164 | 58,192 |
Advance billings on contracts | 244,257 | 317,771 |
Accrued warranty expense | 58,825 | 56,436 |
Income taxes payable | 8,000 | 6,551 |
Total Current Liabilities | 695,688 | 927,228 |
Long-Term Debt | 260,050 | 225 |
Accumulated Postretirement Benefit Obligation | 47,411 | 43,194 |
Environmental Liabilities | 55,342 | 53,391 |
Pension Liability | 376,159 | 336,878 |
Other Liabilities | 54,408 | 65,296 |
Commitments and Contingencies (Note 6) | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 121,287,860 and 120,536,910 shares at June 30, 2014 and December 31, 2013, respectively | 1,213 | 1,205 |
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued | 0 | 0 |
Capital in excess of par value | 764,668 | 747,189 |
Retained earnings | 706,162 | 656,916 |
Treasury stock at cost, 13,728,384 and 10,068,731 shares at June 30, 2014 and December 31, 2013, respectively | -373,776 | -268,971 |
Accumulated other comprehensive income | 21,892 | 28,348 |
Stockholders' Equity - The Babcock & Wilcox Company | 1,120,159 | 1,164,687 |
Noncontrolling interest | 16,836 | 18,254 |
Total Stockholders' Equity | 1,136,995 | 1,182,941 |
TOTAL | $2,626,053 | $2,609,153 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 325,000,000 | 325,000,000 |
Common stock, shares issued | 121,287,860 | 120,536,910 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 75,000,000 | 75,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock at cost, shares | 13,728,384 | 10,068,731 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $686,006 | $886,136 | $1,348,023 | $1,691,559 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of operations | 512,308 | 686,043 | 1,014,615 | 1,305,740 |
Research and development costs | 30,918 | 837 | 54,914 | 29,183 |
Losses on asset disposals and impairments, net | 1,457 | 156 | 1,457 | 87 |
Selling, general and administrative expenses | 101,918 | 106,937 | 196,603 | 210,537 |
Special charges for restructuring activities | 17,470 | 12,232 | 20,128 | 20,655 |
Total Costs and Expenses | 664,071 | 806,205 | 1,287,717 | 1,566,202 |
Equity in Income of Investees | 13,183 | 18,775 | 28,452 | 33,562 |
Operating Income | 35,118 | 98,706 | 88,758 | 158,919 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | 190 | 323 | 609 | 655 |
Interest expense | -921 | -789 | -1,820 | -1,607 |
Other - net | 580 | 1,005 | 1,902 | 2,411 |
Total Other Income (Expense) | -151 | 539 | 691 | 1,459 |
Income before Provision for Income Taxes | 34,967 | 99,245 | 89,449 | 160,378 |
Provision for Income Taxes | 11,475 | 29,544 | 24,803 | 45,801 |
Net Income | 23,492 | 69,701 | 64,646 | 114,577 |
Net Loss Attributable to Noncontrolling Interest | 2,945 | 3,169 | 6,835 | 5,467 |
Net Income Attributable to The Babcock & Wilcox Company | $26,437 | $72,870 | $71,481 | $120,044 |
Basic: | ' | ' | ' | ' |
Net Income Attributable to The Babcock & Wilcox Company | $0.24 | $0.65 | $0.65 | $1.06 |
Diluted: | ' | ' | ' | ' |
Net Income Attributable to The Babcock & Wilcox Company | $0.24 | $0.65 | $0.65 | $1.06 |
Shares used in the computation of earnings per share (Note 11): | ' | ' | ' | ' |
Basic | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 |
Diluted | 110,116,630 | 112,662,563 | 110,501,337 | 113,699,859 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $23,492 | $69,701 | $64,646 | $114,577 |
Other Comprehensive Income (Loss): | ' | ' | ' | ' |
Currency translation adjustments | -531 | -3,824 | -7,142 | -7,568 |
Derivative financial instruments: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period, net of tax (provision) benefit of $(289), $505, $50 and $1,342, respectively | 833 | -1,707 | -142 | -3,868 |
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $234, $(395), $13 and $(753), respectively | -679 | 1,242 | -47 | 2,289 |
Amortization of benefit plan costs, net of tax benefit of $(198), $(245), $(395) and $(518), respectively | 397 | 465 | 794 | 993 |
Investments: | ' | ' | ' | ' |
Unrealized gains arising during the period, net of tax (provision) benefit of $(32), $37, $(57) and $(7), respectively | 57 | 33 | 103 | 128 |
Reclassification adjustment for gains included in net income, net of tax provision of $3, $3, $15 and $3, respectively | -4 | -7 | -26 | -721 |
Other Comprehensive Income (Loss) | 73 | -3,798 | -6,460 | -8,747 |
Total Comprehensive Income | 23,565 | 65,903 | 58,186 | 105,830 |
Comprehensive Loss Attributable to Noncontrolling Interest | 2,942 | 3,172 | 6,839 | 5,471 |
Comprehensive Income Attributable to The Babcock & Wilcox Company | $26,507 | $69,075 | $65,025 | $111,301 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Tax (provision) benefit of unrealized gains (losses) on derivative financial instruments | ($289) | $505 | $50 | $1,342 |
Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | 234 | -395 | 13 | -753 |
Tax benefit of amortization of benefit plan costs | -198 | -245 | -395 | -518 |
Tax provision of unrealized gains | -32 | 37 | -57 | -7 |
Tax provision on reclassification adjustment for gain on investment | $3 | $3 | $15 | $3 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Capital In Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Stockholders' Equity [Member] | Non-Controlling Interest [Member] |
In Thousands, except Share data | ||||||||
Balance at Dec. 31, 2012 | $1,002,916 | $1,196 | $713,257 | $349,063 | $32,728 | ($109,809) | $986,435 | $16,481 |
Balance, Shares at Dec. 31, 2012 | ' | 119,608,026 | ' | ' | ' | ' | ' | ' |
Net Income | 114,577 | ' | ' | 120,044 | ' | ' | 120,044 | -5,467 |
Dividends declared | -18,147 | ' | ' | -18,147 | ' | ' | -18,147 | ' |
Defined benefit obligations | 993 | ' | ' | ' | 993 | ' | 993 | ' |
Available-for-sale investments | -593 | ' | ' | ' | -593 | ' | -593 | ' |
Currency translation adjustments | -7,568 | ' | ' | ' | -7,564 | ' | -7,564 | -4 |
Derivative financial instruments | -1,579 | ' | ' | ' | -1,579 | ' | -1,579 | ' |
Exercise of stock options | 1,874 | 2 | 1,872 | ' | ' | ' | 1,874 | ' |
Exercise of stock options, Shares | ' | 101,157 | ' | ' | ' | ' | ' | ' |
Contributions to thrift plan | 6,532 | 2 | 6,530 | ' | ' | ' | 6,532 | ' |
Contributions to thrift plan, shares | ' | 233,766 | ' | ' | ' | ' | ' | ' |
Shares placed in treasury | -127,773 | ' | ' | ' | ' | -127,773 | -127,773 | ' |
Stock-based compensation charges | 9,076 | 2 | 9,074 | ' | ' | ' | 9,076 | ' |
Stock-based compensation charges, Shares | ' | 217,563 | ' | ' | ' | ' | ' | ' |
Contribution of in-kind services | 7,369 | ' | ' | ' | ' | ' | ' | 7,369 |
Distributions to noncontrolling interests | -326 | ' | ' | ' | ' | ' | ' | -326 |
Balance at Jun. 30, 2013 | 987,351 | 1,202 | 730,733 | 450,960 | 23,985 | -237,582 | 969,298 | 18,053 |
Balance, Shares at Jun. 30, 2013 | ' | 120,160,512 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 1,182,941 | 1,205 | 747,189 | 656,916 | 28,348 | -268,971 | 1,164,687 | 18,254 |
Balance, Shares at Dec. 31, 2013 | 120,536,910 | 120,536,910 | ' | ' | ' | ' | ' | ' |
Net Income | 64,646 | ' | ' | 71,481 | ' | ' | 71,481 | -6,835 |
Dividends declared | -22,235 | ' | ' | -22,235 | ' | ' | -22,235 | ' |
Defined benefit obligations | 794 | ' | ' | ' | 794 | ' | 794 | ' |
Available-for-sale investments | 77 | ' | ' | ' | 77 | ' | 77 | ' |
Currency translation adjustments | -7,142 | ' | ' | ' | -7,138 | ' | -7,138 | -4 |
Derivative financial instruments | -189 | ' | ' | ' | -189 | ' | -189 | ' |
Exercise of stock options | 3,520 | 1 | 3,519 | ' | ' | ' | 3,520 | ' |
Exercise of stock options, Shares | ' | 135,649 | ' | ' | ' | ' | ' | ' |
Contributions to thrift plan | 6,556 | 2 | 6,554 | ' | ' | ' | 6,556 | ' |
Contributions to thrift plan, shares | ' | 196,297 | ' | ' | ' | ' | ' | ' |
Shares placed in treasury | -104,805 | ' | ' | ' | ' | -104,805 | -104,805 | ' |
Stock-based compensation charges | 7,411 | 5 | 7,406 | ' | ' | ' | 7,411 | ' |
Stock-based compensation charges, Shares | ' | 419,004 | ' | ' | ' | ' | ' | ' |
Contribution of in-kind services | 5,830 | ' | ' | ' | ' | ' | ' | 5,830 |
Distributions to noncontrolling interests | -409 | ' | ' | ' | ' | ' | ' | -409 |
Balance at Jun. 30, 2014 | $1,136,995 | $1,213 | $764,668 | $706,162 | $21,892 | ($373,776) | $1,120,159 | $16,836 |
Balance, Shares at Jun. 30, 2014 | 121,287,860 | 121,287,860 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Statement Of Stockholders Equity [Abstract] | ' | ' |
Dividends declared per share | $0.20 | $0.16 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | $64,646 | $114,577 |
Non-cash items included in net income: | ' | ' |
Depreciation and amortization | 35,053 | 33,856 |
Income of investees, net of dividends | -8,517 | -18,824 |
Losses (gains) on asset disposals and impairments | 1,457 | 87 |
In-kind research and development costs | 5,830 | 7,369 |
Recognition of losses for pension and postretirement plans | 1,189 | 1,511 |
Stock-based compensation expense | 7,411 | 9,076 |
Excess tax benefits from stock-based compensation | -552 | -3 |
Changes in assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | -6,635 | -37,429 |
Accounts payable | -129,471 | 5,972 |
Contracts in progress and advance billings on contracts | -52,142 | -81,571 |
Inventories | 5,666 | 11,608 |
Income taxes | -7,890 | 4,067 |
Accrued and other current liabilities | 2,674 | 9,541 |
Pension liability, accrued postretirement benefit obligation and employee benefits | -35,671 | -44,056 |
Other, net | 9,250 | -4,005 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | -107,702 | 11,776 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Decrease in restricted cash and cash equivalents | 6,285 | 12,680 |
Purchases of property, plant and equipment | -37,822 | -33,433 |
Acquisition of business, net of cash acquired | -127,098 | ' |
Purchase of intangible assets | -722 | -2,200 |
Purchases of available-for-sale securities | -21,225 | -72,156 |
Sales and maturities of available-for-sale securities | 27,802 | 91,749 |
Proceeds from asset disposals | 10 | 454 |
Investment in equity and cost method investees | -4,900 | -2,913 |
NET CASH USED IN INVESTING ACTIVITIES | -157,670 | -5,819 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payment of short-term borrowing and long-term debt | -1,815 | -104 |
Increase in short-term borrowing | 733 | 651 |
Borrowings under Credit Agreement | 562,300 | ' |
Repayments under Credit Agreement | -298,500 | ' |
Payment of debt issuance costs | -4,929 | ' |
Repurchase of common shares | -99,742 | -125,829 |
Dividends paid to common shareholders | -22,103 | -18,142 |
Exercise of stock options | 3,463 | 1,888 |
Excess tax benefits from stock-based compensation | 552 | 3 |
Other | -409 | -326 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 139,550 | -141,859 |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | -4,376 | -5,440 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -130,198 | -141,342 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 346,116 | 383,547 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 215,918 | 242,205 |
Cash paid during the period for: | ' | ' |
Income taxes (net of refunds) | 28,099 | 38,851 |
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ' | ' |
Accrued capital expenditures included in accounts payable | $3,938 | $3,445 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | ' | ||||||||||||||||||||
NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||
We have presented our condensed consolidated financial statements in U.S. Dollars in accordance with the interim reporting requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Certain financial information and disclosures normally included in our financial statements prepared annually in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. Readers of these financial statements should, therefore, refer to the consolidated financial statements and notes in our annual report on Form 10-K for the year ended December 31, 2013 (our “2013 10-K”). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation. | |||||||||||||||||||||
We use the equity method to account for investments in entities that we do not control, but over which we have the ability to exercise significant influence. We generally refer to these entities as “joint ventures.” We have eliminated all intercompany transactions and accounts. We present the notes to our condensed consolidated financial statements on the basis of continuing operations, unless otherwise stated. | |||||||||||||||||||||
Unless the context otherwise indicates, “we,” “us” and “our” mean The Babcock & Wilcox Company (“B&W”) and its consolidated subsidiaries. | |||||||||||||||||||||
Reporting Segments | |||||||||||||||||||||
We operate in five reportable segments: Power Generation, Nuclear Operations, Technical Services, Nuclear Energy and mPower. Our reportable segments are further described as follows: | |||||||||||||||||||||
• | Our Power Generation segment provides an advanced, clean and diverse portfolio of steam generating equipment, proven emissions control systems for environmental regulations, renewable energy solutions (biomass, combined heat and power, waste-to-energy and concentrating solar power), boiler cleaning systems, material transport equipment, fuel handling systems, cogeneration and combined cycle installations, and carbon-capture and sequestration technologies. For this full range of product offerings, we offer complete aftermarket, operation and maintenance and construction project services. We provide products and services to electric utilities, municipalities, EPC contractors, architect engineers, independent power producers, international trading firms, electric power cooperatives and state electricity boards. Our markets include electric power generation, industrial, pulp and paper, chemical, oil refinery, cement, institutional, municipal and government customers worldwide. We have an extensive North American and global footprint including engineering, design, service, manufacturing, sales, business development, regional service centers, manufacturer’s representatives and joint venture facilities located in more than 30 countries around the globe. We have supplied product and services for more than 300,000 MW of installed electric generating capacity in more than 80 countries. | ||||||||||||||||||||
Our steam generating equipment operates on a range of traditional fossil fuels including coal, natural gas and oil along with renewable, unconventional and other typical waste fuel streams. We have commercialized many advanced emissions technologies to control nitrogen oxide, sulfur dioxide, sulfur trioxide, coarse and fine particulate matter, mercury, acid gases and other hazardous air emissions. | |||||||||||||||||||||
On June 20, 2014, we completed the acquisition of MEGTEC Holdings, Inc. (“MEGTEC”). MEGTEC designs, engineers, manufactures and services air pollution control systems and coating/drying equipment for a variety of industrial applications and is expected to complement our environmental products and solutions offerings. | |||||||||||||||||||||
• | Our Nuclear Operations segment manufactures naval nuclear reactors for the U.S. Department of Energy (“DOE”)/National Nuclear Security Administration’s (“NNSA”) Naval Nuclear Propulsion Program, which in turn supplies them to the U.S. Navy for use in submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Mount Vernon, Indiana; Euclid, Ohio; Barberton, Ohio; and Erwin, Tennessee. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components. These two locations are N-Stamp certified by the American Society of Mechanical Engineers (“ASME”), making them two of only a few North American suppliers of large, heavy-walled nuclear components and vessels. The Euclid facility, which is also ASME N-Stamp certified, fabricates electro-mechanical equipment for the U.S. Government, and performs design, manufacturing, inspection, assembly and testing activities. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. (“NFS”), one of our wholly owned subsidiaries. Located in Erwin, NFS also converts Cold War-era government stockpiles of highly enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. | ||||||||||||||||||||
• | Our Technical Services segment provides various services to the U.S. Government, including uranium processing, environmental site restoration services and management and operating services for various U.S. Government-owned facilities. These services are provided to the Department of Defense and the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management. Through this segment we deliver products and management solutions to nuclear operations and high-consequence manufacturing facilities. A significant portion of this segment’s operations are conducted through joint ventures. | ||||||||||||||||||||
• | Our Nuclear Energy segment supplies commercial nuclear steam generators and components to nuclear utility customers. B&W has supplied the nuclear industry with more than 1,300 large, heavy components worldwide. This segment is the only heavy nuclear component, N-Stamp certified manufacturer in North America. Our Nuclear Energy segment fabricates pressure vessels, reactors, steam generators, heat exchangers and other auxiliary equipment. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development and metallurgy and materials engineering. In addition, this segment offers services for nuclear steam generators and balance of plant equipment, as well as nondestructive examination and tooling/repair solutions for other plant systems and components. | ||||||||||||||||||||
• | Our mPower segment is designing the B&W mPower™ reactor, a small modular reactor (“SMR”) design generally based on proven light-water nuclear technology and able to operate for four years without refueling. Through our majority-owned joint venture, Generation mPower LLC (“GmP”), we are developing the associated mPower Plant power generating facility, which will use two B&W mPower™ reactors to generate 360 MW within an advanced passively safe and secure plant architecture. As part of this initiative, we were selected to receive funding pursuant to a Cooperative Agreement with the DOE under its Small Modular Reactor Licensing Technical Support Program (the “Funding Program”) for SMR deployment by 2022. This Funding Program provides financial assistance for our mPower Plant design, engineering and licensing activities supporting the planned first mPower Plant commercial operation date by 2022. On April 14, 2014, we announced our plans to restructure the mPower program to focus on technology development. Beginning in the third quarter of 2014, we expect to slow the pace of development and invest no more than $15 million on an annual basis, net of amounts reimbursed from the Funding Program. We intend to work with the DOE to amend the Funding Program to include, among other things, mutually agreeable program milestones for continued funding. If a mutually agreeable plan is not identified, future amounts may not be made available to us under the Funding Program. | ||||||||||||||||||||
See Note 10 for further information regarding our segments. | |||||||||||||||||||||
Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the consolidated financial statements and the related footnotes included in our 2013 10-K. | |||||||||||||||||||||
Contracts and Revenue Recognition | |||||||||||||||||||||
We generally recognize contract revenues and related costs on a percentage-of-completion method for individual contracts or combinations of contracts based on work performed, man hours or a cost-to-cost method, as applicable to the product or activity involved. We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress completion as a percentage of the total project. Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for materials and major third-party subcontractors, if it appears that such exclusion would result in a more meaningful measurement of actual contract progress and resulting periodic allocation of income. We include revenues and related costs so recorded, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in contracts in progress. We include in advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized under the percentage-of-completion method. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. | |||||||||||||||||||||
For contracts as to which we are unable to estimate the final profitability except to assure that no loss will ultimately be incurred, we recognize equal amounts of revenue and cost until the final results can be estimated more precisely. For these deferred profit recognition contracts, we recognize revenue and cost equally and only recognize gross margin when probable and reasonably estimable, which we generally determine to be when the contract is approximately 70% complete. We treat long-term construction contracts that contain such a level of risk and uncertainty that estimation of the final outcome is impractical, except to assure that no loss will be incurred, as deferred profit recognition contracts. | |||||||||||||||||||||
Our policy is to account for fixed-price contracts under the completed-contract method if we believe that we are unable to reasonably forecast cost to complete at start-up. Under the completed-contract method, income is recognized only when a contract is completed or substantially complete. | |||||||||||||||||||||
For parts orders and certain aftermarket services activities, we recognize revenues as goods are delivered and work is performed. | |||||||||||||||||||||
Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We include claims for extra work or changes in scope of work to the extent of costs incurred in contract revenues when we believe collection is probable. | |||||||||||||||||||||
In the three and six months ended June 30, 2014, we recorded contract losses totaling $4.0 million and $11.6 million, respectively, for additional estimated costs to complete our Power Generation segment’s Berlin Station project, which includes estimated potential letter of credit draws for liquidated damages. These losses are in addition to contract losses recorded for this project during 2013 and 2012. We had previously asserted that substantial completion had been achieved on this project in early 2014 and that any further delays to complete this project, beyond the delays already caused by the customer during construction or otherwise excusable under the contract, are the result of the customer’s failure to supply fuel complying with the contract specifications. The customer has certified that we achieved substantial completion on the project effective July 19, 2014, following which the customer will have no further claims for Delay LDs. See Note 6 for legal proceedings associated with this matter. | |||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
The components of accumulated other comprehensive income included in stockholders’ equity are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Currency translation adjustments | $ | 31,277 | $ | 38,415 | |||||||||||||||||
Net unrealized gain on investments | 207 | 130 | |||||||||||||||||||
Net unrealized gain on derivative financial instruments | 438 | 627 | |||||||||||||||||||
Unrecognized prior service cost on benefit obligations | (10,030 | ) | (10,824 | ) | |||||||||||||||||
Accumulated other comprehensive income | $ | 21,892 | $ | 28,348 | |||||||||||||||||
The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accumulated Other Comprehensive Income | (In thousands) | Line Item Presented | |||||||||||||||||||
Component Recognized | |||||||||||||||||||||
Realized (losses) gains on derivative financial instruments | $ | (240 | ) | $ | (621 | ) | $ | (77 | ) | $ | (1,152 | ) | Revenues | ||||||||
1,153 | (1,117 | ) | 127 | (2,006 | ) | Cost of operations | |||||||||||||||
— | 101 | 10 | 116 | Other-net | |||||||||||||||||
$ | 913 | (1,637 | ) | $ | 60 | (3,042 | ) | Total before tax | |||||||||||||
(234 | ) | 395 | (13 | ) | 753 | Provision for Income Taxes | |||||||||||||||
$ | 679 | $ | (1,242 | ) | $ | 47 | $ | (2,289 | ) | Net Income | |||||||||||
Amortization of prior service cost on benefit obligations | $ | (509 | ) | $ | (660 | ) | $ | (1,018 | ) | $ | (1,411 | ) | Cost of operations | ||||||||
(86 | ) | (50 | ) | (171 | ) | (100 | ) | Selling, general and administrative expenses | |||||||||||||
(595 | ) | (710 | ) | (1,189 | ) | (1,511 | ) | Total before tax | |||||||||||||
198 | 245 | 395 | 518 | Provision for Income Taxes | |||||||||||||||||
$ | (397 | ) | $ | (465 | ) | $ | (794 | ) | $ | (993 | ) | Net Income | |||||||||
Realized gain on investments | $ | 7 | $ | 10 | $ | 41 | $ | 724 | Other-net | ||||||||||||
(3 | ) | (3 | ) | (15 | ) | (3 | ) | Provision for Income Taxes | |||||||||||||
$ | 4 | $ | 7 | $ | 26 | $ | 721 | Net Income | |||||||||||||
Total reclassification for the period | $ | 286 | $ | (1,700 | ) | $ | (721 | ) | $ | (2,561 | ) | ||||||||||
Inventories | |||||||||||||||||||||
The components of inventories are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Raw materials and supplies | $ | 82,485 | $ | 85,455 | |||||||||||||||||
Work in progress | 9,986 | 10,872 | |||||||||||||||||||
Finished goods | 20,500 | 16,731 | |||||||||||||||||||
Total inventories | $ | 112,971 | $ | 113,058 | |||||||||||||||||
Restricted Cash and Cash Equivalents | |||||||||||||||||||||
At June 30, 2014, we had restricted cash and cash equivalents totaling $42.3 million, $3.3 million of which was held in restricted foreign cash accounts, $2.6 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $36.4 million of which was held to meet reinsurance reserve requirements of our captive insurer (in lieu of long-term investments). | |||||||||||||||||||||
Goodwill | |||||||||||||||||||||
Goodwill represents the excess of the cost of our acquired businesses over the fair value of the net assets acquired. We perform testing of goodwill for impairment annually. We may elect to perform a qualitative test when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant events and circumstances that could affect fair value during the current year. If we conclude based on this assessment that it is more likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test. In all other circumstances, we utilize a two-step quantitative impairment test to identify potential goodwill impairment and measure the amount of any goodwill impairment. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. | |||||||||||||||||||||
The following summarizes the changes in the carrying amount of goodwill: | |||||||||||||||||||||
Power | Nuclear | Technical | Nuclear | Total | |||||||||||||||||
Generation | Operations | Services | Energy | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 104,630 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 281,708 | |||||||||||
Acquisition of MEGTEC (Note 2) | 115,314 | — | — | — | 115,314 | ||||||||||||||||
Foreign currency translation adjustments and other | (193 | ) | — | — | — | (193 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | 219,751 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 396,829 | |||||||||||
Intangible Assets | |||||||||||||||||||||
Intangible assets are recognized at fair value when acquired. Intangible assets with definite lives are amortized to operating expense using the straight-line method over their estimated useful lives and tested for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. Intangible assets with indefinite lives are not amortized and are subject to annual impairment testing. We may elect to perform a qualitative assessment when testing indefinite lived intangible assets for impairment to determine whether events or circumstances affecting significant inputs related to the most recent quantitative evaluation have occurred, indicating that it is more likely than not that the indefinite lived intangible asset is impaired. Otherwise, we test indefinite lived intangible assets for impairment by quantitatively determining the fair value of the indefinite lived intangible asset and comparing the fair value of the intangible assets to its carrying amount. If the carrying amount of the intangible assets exceeds its fair value, we recognize impairment for the amount of the difference. | |||||||||||||||||||||
Warranty Expense | |||||||||||||||||||||
We accrue estimated expense included in cost of operations on our condensed consolidated statements of income to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. | |||||||||||||||||||||
The following summarizes the changes in the carrying amount of our accrued warranty expense: | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at beginning of period | $ | 56,436 | $ | 83,682 | |||||||||||||||||
Additions | 5,463 | 11,423 | |||||||||||||||||||
Acquisition of MEGTEC | 4,693 | — | |||||||||||||||||||
Expirations and other changes | (3,204 | ) | (8,038 | ) | |||||||||||||||||
Payments | (4,568 | ) | (11,659 | ) | |||||||||||||||||
Translation and other | 5 | (921 | ) | ||||||||||||||||||
Balance at end of period | $ | 58,825 | $ | 74,487 | |||||||||||||||||
Pension Plans and Postretirement Benefits | |||||||||||||||||||||
We sponsor various defined benefit pension and postretirement plans covering certain employees of our U.S. and international subsidiaries. We utilize actuarial valuations to calculate the cost and benefit obligations of our pension and postretirement benefits. The actuarial valuations utilize significant assumptions in the determination of our benefit cost and obligations, including assumptions regarding discount rates, expected returns on plan assets and health care cost trends. We determine our discount rate based on a review of published financial data and discussions with our actuary regarding rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement plan obligations. The expected rate of return on plan assets assumption is based on capital market assumptions of the long-term expected returns for the investment mix of assets currently in the portfolio. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the classes within the total asset portfolio. Expected health care cost trends represent expected annual rates of change in the cost of health care benefits and are estimated based on analysis of health care cost inflation. | |||||||||||||||||||||
The components of benefit cost related to service cost, interest cost, expected return on plan assets and prior service cost amortization are recorded on a quarterly basis based on actuarial assumptions. In the fourth quarter of each year, we immediately recognize net actuarial gains and losses into earnings as a component of net periodic benefit cost. Recognized net actuarial gains and losses consist primarily of our reported actuarial gains and losses and the difference between the actual return on plan assets and the expected return on plan assets. | |||||||||||||||||||||
We recognize the funded status of each plan as either an asset or a liability in the consolidated balance sheets. The funded status is the difference between the fair value of plan assets and the present value its benefit obligation, determined on a plan-by-plan basis. Our pension plan assets can include assets that are difficult to value. See Note 7 of our 2013 10-K for a detailed description of our plan assets. | |||||||||||||||||||||
Research and Development | |||||||||||||||||||||
Our research and development activities are related to the development and improvement of new and existing products and equipment, as well as conceptual and engineering evaluation for translation into practical applications. We charge research and development costs unrelated to specific contracts as they are incurred. Substantially all of these costs are in our Power Generation and mPower segments, the majority of which are related to the development of our B&W mPower™ reactor and the associated mPower Plant. | |||||||||||||||||||||
During the three and six months ended June 30, 2014, we recognized $1.6 million and $5.8 million, respectively, of non-cash in-kind research and development costs as compared to $4.4 million and $7.4 million during the three and six months ended June 30, 2013, respectively, related to services contributed by our minority partner to GmP. | |||||||||||||||||||||
On April 12, 2013, Babcock & Wilcox mPower, Inc., a wholly owned subsidiary of B&W, entered into a Cooperative Agreement establishing the terms and conditions of a funding award totaling $150 million under the DOE’s Funding Program. This cost-sharing award requires us to use the DOE funds to cover first-of-a-kind engineering costs associated with SMR design certification and licensing efforts. The DOE will provide cost reimbursement for up to 50% of qualified expenditures incurred from April 1, 2013 to March 31, 2018. The DOE has authorized $105.5 million of funding to B&W for this award program. Congress has allocated and designated an additional $79 million from the 2014 budget to the Cooperative Agreement; however, the DOE has not yet obligated those funds to us. In the six months ended June 30, 2014 and 2013, we recognized $19.8 million and $37.8 million, respectively, associated with the funding award. | |||||||||||||||||||||
On April 14, 2014, we announced our plans to restructure the mPower program to focus on technology development. Beginning in the third quarter of 2014, we expect to slow the pace of development and invest no more than $15 million on an annual basis, net of amounts reimbursed from the Funding Program. We intend to work with the DOE to amend the Funding Program, to include, among other things, mutually agreeable program milestones for continued funding. If a mutually agreeable plan is not identified, future amounts may not be made available to us under the Funding Program. | |||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||
We are subject to U.S. federal income tax and income tax of multiple state and international jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period. We classify interest and penalties related to taxes (net of any applicable tax benefit) as a component of provision for income taxes on our condensed consolidated statements of income. | |||||||||||||||||||||
Our effective tax rate for the three months ended June 30, 2014 was approximately 32.8% as compared to 29.8% for the three months ended June 30, 2013. The effective tax rate for the three months ended June 30, 2014 was lower than our statutory rate primarily due to the impact of an increase in benefits for amended federal manufacturing deductions and certain amended state return filings, offset by an increase to a valuation allowance against certain state deferred tax assets. The effective tax rate for the three months ended June 30, 2013 was lower than the effective tax rate for the period ended June 30, 2014 primarily due to the impact of settling claims within certain state and foreign jurisdictions in the prior year period. | |||||||||||||||||||||
Our effective tax rate for the six months ended June 30, 2014 was approximately 27.7% as compared to 28.6% for the six months ended June 30, 2013. The effective tax rate for the six months ended June 30, 2014 was lower than our statutory rate primarily due to the receipt of a favorable ruling from the Internal Revenue Service that allows us to amend prior year U.S. income tax returns to exclude distributions of certain of our foreign joint ventures from domestic taxable income. Our effective tax rate for the six months ended June 30, 2013 reflected the impact of certain tax benefits related to the retroactive provisions of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013. These 2013 tax benefits relate primarily to research and development tax credits, for which we have not recognized a benefit in 2014 due to the current expiration of the tax credit. | |||||||||||||||||||||
As of June 30, 2014, we have gross unrecognized tax benefits of $5.9 million, which, if recognized, would lower our effective tax rate from continuing operations. | |||||||||||||||||||||
Recently Adopted Accounting Standards | |||||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to the Topics Presentation of Financial Statements and Property, Plant and Equipment. This update changes the criteria for reporting discontinued operations such that a disposal of a component of an entity will be required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We early adopted this pronouncement in the second quarter of 2014. The disposal of our Nuclear Projects business in the second quarter of 2014 did not qualify as a discontinued operation under the new guidance due to its relative insignificance to B&W’s operations and financial results. See Note 2 for additional information related to this disposal. | |||||||||||||||||||||
New Accounting Standards | |||||||||||||||||||||
In May 2014, the FASB issued Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in the Topic Revenue Recognition and most industry specific guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This update is effective in 2017, and early adoption is not permitted. The update may be adopted either retrospectively to each prior period or as a cumulative-effect adjustment on the date of adoption. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions and Dispositions | ' | ||||||||||||||||
NOTE 2 – ACQUISITIONS AND DISPOSITIONS | |||||||||||||||||
MEGTEC Acquisition | |||||||||||||||||
On June 20, 2014, we acquired the outstanding stock of industrial processes solutions provider MEGTEC for $142.2 million, net of cash acquired. MEGTEC designs, engineers, manufactures and services air pollution control systems and coating/drying equipment for a variety of industrial applications and is expected to complement our Power Generation segment’s environmental products and solutions offerings that serves utility markets. | |||||||||||||||||
The purchase price of the acquisition has been allocated among assets acquired and liabilities assumed at preliminary estimates of fair value based on information currently available with the excess purchase price recorded as goodwill. Our preliminary purchase price allocation, as follows, is subject to change upon receipt of additional information and completion of further analysis, including, but not limited to, finalization of long-lived and intangible asset valuations: | |||||||||||||||||
MEGTEC | |||||||||||||||||
(in thousands) | |||||||||||||||||
Unrestricted cash | $ | 14,232 | |||||||||||||||
Accounts receivable | $ | 23,459 | |||||||||||||||
Inventories | $ | 5,528 | |||||||||||||||
Other current assets | $ | 9,069 | |||||||||||||||
Property, plant and equipment | $ | 5,090 | |||||||||||||||
Goodwill | $ | 115,314 | |||||||||||||||
Intangible assets | $ | 42,000 | |||||||||||||||
Total assets acquired | $ | 214,692 | |||||||||||||||
Accounts payable | $ | 13,402 | |||||||||||||||
Advance billings on contracts | $ | 9,144 | |||||||||||||||
Other current liabilities | $ | 17,477 | |||||||||||||||
Pension liability | $ | 5,041 | |||||||||||||||
Deferred income taxes | $ | 12,137 | |||||||||||||||
Other liabilities | $ | 1,085 | |||||||||||||||
Total liabilities assumed | $ | 58,286 | |||||||||||||||
Net assets acquired | $ | 156,406 | |||||||||||||||
Unrestricted cash acquired | $ | 14,232 | |||||||||||||||
Net assets acquired, net of unrestricted cash acquired | $ | 142,174 | |||||||||||||||
Amount of tax deductible goodwill | $ | — | |||||||||||||||
The intangible assets included above consist of the following (dollar amounts in thousands): | |||||||||||||||||
Amount | Amortization Period | ||||||||||||||||
Customer relationships | $ | 20,000 | 7 years | ||||||||||||||
Backlog | $ | 9,500 | 1 year | ||||||||||||||
Trade names / trademarks | $ | 6,000 | 15 years | ||||||||||||||
Developed technology | $ | 6,500 | 10 years | ||||||||||||||
Our condensed consolidated financial statements for the three and six months ended June 30, 2014 include $3.6 million and $0.2 million of revenues and net income, respectively, related to MEGTEC operations occurring from the acquisition date to June 30, 2014. Additionally, the following unaudited pro forma financial information presents our results of operations for the three and six months ended June 30, 2014 and 2013 had the acquisition of MEGTEC occurred on January 1, 2013. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2013. This information is presented for comparative purposes only and should not be taken as representative of our future consolidated results of operations. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | 772,972 | $ | 933,793 | $ | 1,428,355 | $ | 1,768,672 | |||||||||
Net Income Attributable to The Babcock & Wilcox Company | $ | 28,780 | $ | 74,139 | $ | 74,530 | $ | 119,313 | |||||||||
Basic Earnings per Common Share | $ | 0.26 | $ | 0.66 | $ | 0.68 | $ | 1.06 | |||||||||
Diluted Earnings per Common Share | $ | 0.26 | $ | 0.66 | $ | 0.67 | $ | 1.05 | |||||||||
The unaudited pro forma results include the following pre-tax adjustments to the historical results presented above: | |||||||||||||||||
• | Additional amortization expense related to the fair value of identifiable intangible assets acquired of approximately $0.8 million and $1.3 million for the three and six months ended June 30, 2014, respectively, and $2.8 million and $5.6 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
• | Elimination of historical interest expense of approximately $0.6 million and $0.9 million for the three and six months ended June 30, 2014, respectively, and $0.4 million and $0.9 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
• | Additional interest expense associated with the incremental borrowings that would have been incurred to acquire MEGTEC as of January 1, 2013 of approximately $0.6 million and $1.2 million for the three and six months ended June 30, 2014, respectively, and $0.6 million and $1.3 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
• | Elimination of $13.5 million in acquisition related costs recognized in the three and six months ended June 30, 2014 that are not expected to be recurring. | ||||||||||||||||
Ebensburg Acquisition | |||||||||||||||||
On May 21, 2014, we acquired the remaining outstanding interest in Ebensberg Power Company for a purchase price of $1.3 million. As part of the transaction, we acquired cash of $16.4 million and property, plant and equipment with a fair value of $16.1 million. | |||||||||||||||||
Nuclear Projects Business Disposition | |||||||||||||||||
In the first quarter of 2014, we announced that we would exit our Nuclear Energy segment’s Nuclear Projects business as it had lower margins and higher financial risks. Run-off operations for remaining projects were completed during the quarter ended June 30, 2014. Income (loss) before provision for income taxes for the Nuclear Projects business was $0.0 million and $(0.1) million in the three and six months ended June 30, 2014, respectively, and $(0.5) million and $(1.0) million in the three and six months ended June 30, 2013, respectively. | |||||||||||||||||
At June 30, 2014, assets recorded within the condensed consolidated financial statements for the Nuclear Projects business include $37.5 million in outstanding accounts receivable and $8.2 million in contracts in progress related to unbilled final project closeout activities. Both of those amounts relate to a reimbursable target cost subcontract pursuant to which we performed steam generator replacement installation services for the prime contractor. All work under that subcontract has been completed. The owner has questioned the reasonableness of certain project costs, assessed liquidated damages and has not paid the prime contractor the referenced amounts invoiced under the prime contract. Based upon the terms of the subcontract, the prime contractor has not yet paid us. We filed a mechanic’s lien in the amount of $37.4 million against the owner’s property on July 11, 2014 in order to preserve our statutory legal rights and we have until early March 2015 to file suit against the owner to foreclose on that lien. We contend that the invoiced and unbilled amounts were reasonably incurred under the terms of the subcontract and that project delays and additional costs are attributable to the owner. Payment of all amounts currently due and owing is being sought from the prime contractor through the defined subcontract dispute resolution processes. If those efforts are unsuccessful, we will have the right to initiate collection litigation against the prime contractor. |
Credit_Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit Facility | ' |
NOTE 3 – CREDIT FACILITY | |
On June 24, 2014, B&W entered into a Second Amended and Restated Credit Agreement (the “New Credit Agreement”) with a syndicate of lenders and letter of credit issuers, and Bank of America, N.A., as administrative agent, which amends and restates our previous Credit Agreement dated June 8, 2012. The New Credit Agreement provides for revolving credit borrowings and issuances of letters of credit in an aggregate amount of up to $1.0 billion and a term loan facility of up to $300 million, $150 million of which was drawn on the closing date of the New Credit Agreement. The remaining $150 million commitment for the term loan remains available under a delayed draw feature through December 31, 2014. The New Credit Agreement is scheduled to mature on June 24, 2019. The proceeds of the New Credit Agreement are available for the issuance of letters of credit, working capital needs and other general corporate purposes. The New Credit Agreement includes provisions that allow for additional financial institutions to become lenders, or for any existing lender to increase its commitment thereunder, subject to an aggregate maximum of $400 million for all incremental term loan, revolving credit borrowings and letter of credit commitments. | |
The New Credit Agreement is guaranteed by substantially all of B&W’s wholly owned domestic subsidiaries. Obligations under the New Credit Agreement are secured by first-priority liens on certain assets owned by B&W and the guarantors (other than our subsidiaries comprising our Nuclear Operations and Technical Services segments). If the corporate family rating of B&W and its subsidiaries from Moody’s is Baa3 or better (with a stable outlook or better), the corporate rating of B&W and its subsidiaries from S&P is BBB- or better (with a stable outlook or better), and other conditions are met, the liens securing obligations under the New Credit Agreement will be released, subject to reinstatement upon the terms set forth in the New Credit Agreement. B&W’s current corporate family rating from Moody’s is Ba1 and its corporate rating from S&P is BB+. | |
The New Credit Agreement requires interest payments on revolving loans on a periodic basis until maturity. Beginning with the quarter following that in which the term loan commitment ends, we are required to make quarterly amortization payments on the term loan portion of the New Credit Agreement in an amount equal to 1.25% of the aggregate principal amount of the term loan facility that is utilized. We may prepay all loans under the New Credit Agreement at any time without premium or penalty (other than customary LIBOR breakage costs), subject to notice requirements. We are also required to make certain prepayments on any outstanding term loans under the New Credit Agreement after receipt of cash proceeds from certain asset sales or other events, subject to certain exceptions and our right to reinvest such proceeds in certain circumstances, all as more particularly set forth in the New Credit Agreement. | |
The New Credit Agreement contains financial covenants relating to leverage and interest coverage and includes covenants that restrict, among other things, debt incurrence, liens, investments, acquisitions, asset dispositions, dividends, prepayments of subordinated debt and mergers. At June 30, 2014, we were in compliance with all of the covenants set forth in the New Credit Agreement. | |
Loans outstanding under the New Credit Agreement bear interest at our option at either the Eurocurrency rate plus a margin ranging from 1.25% to 2.00% per year or the base rate (the highest of the Federal Funds rate plus 0.50%, the one month Eurocurrency rate plus 1.00%, or the administrative agent’s prime rate) plus a margin ranging from 0.25% to 1.00% per year. The applicable margin for loans varies depending on the credit ratings of the New Credit Agreement. Under the New Credit Agreement, we are charged a commitment fee on the unused portions of the New Credit Agreement, and that fee varies between 0.200% and 0.350% per year depending on the credit ratings of the New Credit Agreement. Additionally, we are charged a letter of credit fee of between 1.250% and 2.000% per year with respect to the amount of each financial letter of credit issued under the New Credit Agreement and a letter of credit fee of between 0.725% and 1.125% per year with respect to the amount of each performance letter of credit issued under the New Credit Agreement, in each case depending on the credit ratings of the New Credit Agreement. We also pay customary fronting fees and other fees and expenses in connection with the issuance of letters of credit under the New Credit Agreement. In connection with entering into the New Credit Agreement, we paid upfront fees to the lenders thereunder, and arrangement and other fees to the arrangers and agents of the New Credit Agreement. At June 30, 2014, borrowings outstanding totaled $150.0 million and $113.8 million under our term loan and revolving line of credit, respectively, and letters of credit issued under the New Credit Agreement totaled $173.0 million, resulting in $863.2 million available for borrowings or to meet letter of credit requirements. | |
Based on the current credit ratings of the New Credit Agreement, beginning in August 2014 the applicable margin for Eurocurrency rate loans is 1.375%, the applicable margin for base rate loans is 0.375%, the letter of credit fee for financial letters of credit is 1.375%, the letter of credit fee for performance letters of credit is 0.80%, and the commitment fee for unused portions of the New Credit Agreement is 0.225%. The New Credit Agreement does not have a floor for the base rate or the Eurocurrency rate. | |
The New Credit Agreement generally includes customary events of default for a secured credit facility. If any default occurs under the New Credit Agreement, or if we are unable to make any of the representations and warranties in the New Credit Agreement, we will be unable to borrow funds or have letters of credit issued under the New Credit Agreement. |
Special_Charges_for_Restructur
Special Charges for Restructuring Activities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Special Charges for Restructuring Activities | ' | ||||||||
NOTE 4 – SPECIAL CHARGES FOR RESTRUCTURING ACTIVITIES | |||||||||
Global Competitiveness Initiative | |||||||||
In the third quarter of 2012, we announced the Global Competitiveness Initiative (“GCI”) to enhance competitiveness, better position B&W for growth and improve profitability. In conjunction with GCI, during the six months ended June 30, 2014, we incurred $0.2 million of expenses related to employee termination benefits and $2.2 million of expenses related to facility consolidation. During the six months ended June 30, 2013, we recorded $15.1 million of expenses related to employee termination benefits and $5.6 million of expenses related to consulting and administrative costs. | |||||||||
Other Restructuring Actions | |||||||||
In the first quarter of 2014, we announced a business optimization project focused on increasing margins in our Power Generation and Nuclear Energy segments. In the six months ended June 30, 2014, we incurred $9.4 million of expenses related to this project, including $8.5 million of expenses related to employee termination benefits, $0.7 million of expenses related to consulting and administrative costs and $0.2 million of expenses related to facility consolidation. | |||||||||
In the six months ended June 30, 2014, we also incurred $7.9 million of expenses related to the restructuring of our mPower program, including $5.7 million of expenses related to employee termination benefits, $2.0 million of expenses related to consulting and administrative costs and $0.2 million of expenses related to facility consolidation. | |||||||||
Additionally, we incurred expenses related to employee termination benefits totaling $0.4 million for the six months ended June 30, 2014 related to the restructuring of our Technical Services segment. | |||||||||
The following summarizes the changes in our restructuring liability for the six months ended June 30, 2014 and 2013: | |||||||||
Six months ended | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at the beginning of the period | $ | 10,054 | $ | — | |||||
Special charges for restructuring activities(1) | 17,743 | 20,655 | |||||||
Payments | (11,327 | ) | (10,705 | ) | |||||
Translation and other | (7 | ) | — | ||||||
Balance at the end of the period | $ | 16,463 | $ | 9,950 | |||||
-1 | Excludes non-cash charges of $2.4 million for the six months ended June 30, 2014, which did not impact the restructuring liability. | ||||||||
At June 30, 2014, unpaid restructuring charges totaled $16.3 million for employee termination benefits and $0.2 million for consulting and administrative costs. |
Pension_Plans_and_Postretireme
Pension Plans and Postretirement Benefits | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits | ' | ||||||||||||||||||||||||||||||||
NOTE 5 – PENSION PLANS AND POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||||||||||
Components of net periodic benefit cost included in net income are as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Service cost | $ | 9,651 | $ | 11,542 | $ | 19,297 | $ | 23,120 | $ | 216 | $ | 248 | $ | 432 | $ | 496 | |||||||||||||||||
Interest cost | 30,361 | 27,838 | 60,688 | 55,626 | 977 | 993 | 1,946 | 1,898 | |||||||||||||||||||||||||
Expected return on plan assets | (37,389 | ) | (36,611 | ) | (74,766 | ) | (73,281 | ) | (575 | ) | (537 | ) | (1,150 | ) | (1,075 | ) | |||||||||||||||||
Amortization of prior service cost (credit) | 635 | 792 | 1,269 | 1,584 | (40 | ) | (82 | ) | (80 | ) | (73 | ) | |||||||||||||||||||||
Net periodic benefit cost | $ | 3,258 | $ | 3,561 | $ | 6,488 | $ | 7,049 | $ | 578 | $ | 622 | $ | 1,148 | $ | 1,246 | |||||||||||||||||
We made contributions to our pension and postretirement benefit plans totaling $18.4 million and $27.0 million during the three and six months ended June 30, 2014, respectively, as compared to $18.0 million and $43.2 million in the three and six months ended June 30, 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 6 – COMMITMENTS AND CONTINGENCIES | |
Other than as noted below, there have been no material changes during the period covered by this Form 10-Q in the status of the legal proceedings disclosed in Note 11 to the consolidated financial statements in Part II of our 2013 10-K. | |
Investigations and Litigation | |
Apollo and Parks Township | |
In January 2010, Michelle McMunn, Cara D. Steele and Yvonne Sue Robinson filed suit against Babcock & Wilcox Power Generation Group, Inc. (“B&W PGG”), Babcock & Wilcox Technical Services Group, Inc., formerly known as B&W Nuclear Environmental Services, Inc. (the “B&W Parties”) and Atlantic Richfield Company (“ARCO”) in the United States District Court for the Western District of Pennsylvania. Since January 2010, additional suits have been filed by additional plaintiffs and there are currently fifteen lawsuits pending in the U.S. District Court for the Western District of Pennsylvania against the B&W Parties and ARCO, including the most recent claims in May 2014. In total, the suits presently involve approximately 100 primary claimants, including the five additional primary claims filed in May 2014. Plaintiffs have filed motions to dismiss, with prejudice, 3 claims and have agreed to dismiss, with prejudice, 3 additional claims, which would reduce the total number of primary claimants to 94. The primary claimants allege, among other things, personal injuries and property damage as a result of alleged releases of radioactive material relating to the operation, remediation, and/or decommissioning of two former nuclear fuel processing facilities located in Apollo Borough and Parks Township, Pennsylvania (collectively, the “Apollo and Parks Litigation”). Those facilities previously were owned by Nuclear Materials and Equipment Company, a former subsidiary of ARCO (“NUMEC”), which was acquired by B&W PGG. The plaintiffs in the Apollo and Parks Litigation seek compensatory and punitive damages. All of the suits, except for the most recent filing, have been consolidated for non-dispositive pre-trial matters. Fact discovery in the Apollo and Parks Litigation is now closed, but no trial date has been set. | |
At the time of ARCO’s sale of NUMEC stock to B&W PGG, B&W PGG received an indemnity and hold harmless agreement from ARCO with respect to claims and liabilities arising prior to or as a result of conduct or events predating the acquisition. | |
Insurance coverage and/or the ARCO indemnity currently provides coverage for the claims alleged in the Apollo and Parks Litigation, although no assurance can be given that insurance and/or the indemnity will be available or sufficient in the event of liability, if any. | |
The B&W Parties and ARCO were defendants in a prior litigation filed in 1994 relating to the operation of the Apollo and Parks Township facilities in the matter of Donald F. Hall and Mary Ann Hall, et al., v. Babcock & Wilcox Company, et al. (the “Hall Litigation”). In 1998, the B&W Parties settled all then-pending and future punitive damage claims in the Hall Litigation for $8.0 million and sought reimbursement from third parties, including its insurers, American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters (“ANI”). In 2008, ARCO settled the Hall Litigation with the plaintiffs for $27.5 million. The B&W Parties then settled the Hall Litigation in 2009 for $52.5 million, settling approximately 250 personal injury and wrongful death claims, as well as approximately 125 property damage claims, alleging damages as a result of alleged releases involving the facilities. ARCO and the B&W Parties retained their insurance rights against ANI in their respective settlements; however, under a related settlement regarding ARCO’s indemnification of B&W PGG relating to the two facilities, ARCO assigned to the B&W Parties 58.33% of the total of all ARCO’s proceeds/amounts recovered against ANI on account of the Hall Litigation. | |
The B&W Parties sought recovery from ANI for amounts paid by the B&W Parties to settle the Hall Litigation, along with unreimbursed attorney fees, allocated amounts assigned by ARCO to the B&W Parties, and applicable interest based upon ANI’s breach of contract and bad faith conduct in the matter of The Babcock & Wilcox Company et al. v. American Nuclear Insurers, et al. (the “ANI Litigation”). ARCO also sought recovery against ANI in the ANI Litigation, which has been pending before the Court of Common Pleas of Allegheny County, Pennsylvania. | |
In September 2011, a jury returned a verdict in the ANI Litigation, finding that the B&W Parties’ settlement of the Hall Litigation for $52.5 million and ARCO’s settlement for $27.5 million were fair and reasonable. Following the verdict, in February 2012, the B&W Parties, ARCO and ANI entered into an agreement in which the parties agreed to the dismissal with prejudice of all remaining claims pending in the ANI Litigation, excluding the B&W Parties’ and ARCO’s claims seeking reimbursement from ANI for the $52.5 million and $27.5 million settlements (plus interest) (the “Settlement Claims”). By agreement, ANI also waived: (1) any and all rights to appeal the September 2011 jury verdict on the basis of the trial court’s evidentiary rulings; and (2) any defenses and arguments of any kind except ANI’s position that it was not required to reimburse the B&W Parties’ and ARCO for their settlements under the provisions of the ANI policies. In February 2012, the Court granted the parties’ proposed order implementing their agreement and entered final judgment in favor of the B&W Parties and ARCO on the Settlement Claims. As part of the final order and judgment, the Court ruled that the B&W Parties and ARCO are entitled to pre-judgment interest on their $52.5 million and $27.5 million settlements, in the amounts of approximately $8.8 million and $6.2 million, respectively. In addition, post-verdict interest from the date of the jury verdict was awarded at 6%. In March 2012, ANI filed a notice of appeal as to the final judgment and a supersedeas appeal bond in the amount of 120% of the total final judgment amount. The parties filed their respective briefs with the Superior Court and oral arguments were held October 31, 2012. | |
In July 2013, the Superior Court reversed the judgment of the trial court with instructions to reconsider the issue of the Settlement Claims under a different standard. In August 2013, B&W and ARCO filed a request for appeal of the Superior Court’s decision to the Pennsylvania Supreme Court. On January 24, 2014, the Supreme Court of Pennsylvania granted B&W and ARCO’s request for appeal. The parties’ briefs on the appeal have been filed, but the date for oral arguments has not been set. B&W has not recognized any amounts claimed in the ANI Litigation in its financial statements due to the uncertainty surrounding the ultimate amount to be realized. | |
Berlin Station | |
Our subsidiary, Babcock & Wilcox Construction Co., Inc. (“BWCC”), is currently in a dispute with a customer in connection with a 75MW biomass-energy power plant that BWCC designed and built in Berlin, New Hampshire. The dispute primarily concerns (1) material claims by BWCC against its customer for contract changes relating to schedule delays, delay costs and extra work and (2) whether liquidated damages for delay (“Delay LDs”) are due to the customer under the contract. The customer contends it is owed Delay LDs, capped under the terms of the contract at approximately $18.7 million, and has made nine partial draws totaling approximately $11.0 million against $44 million of letters of credit from BWCC that were outstanding as of the date of filing of this report. These draws correspond to a total of approximately $11.9 million in alleged Delay LDs. BWCC had previously asserted that substantial completion had been achieved in early 2014 and that any further delays to completion of the project, beyond the delays already caused by the customer during construction or otherwise excusable under the contract are the result of the customer’s failure to supply fuel complying with the contract specifications. BWCC’s motion for an injunction to prevent further draws on BWCC’s letters of credit for such claims was denied on May 21, 2014 and a related temporary restraining order against the customer was vacated on the same date. The customer has certified that BWCC achieved substantial completion on the project effective July 19, 2014, following which the customer will have no further claims for Delay LDs. | |
BWCC’s aggregate liquidated damages cap under the contract is approximately $37.4 million, which also includes an $18.7 million cap for performance LDs. There is a risk that the customer will attempt to call all or part of the letters of credit during the pendency of this matter. We believe any such call would be wrongful and entitle us to return of the funds and other damages. As of June 30, 2014, we had made provisions in our financial statements totaling $12.8 million based on Delay LDs called to date and management’s estimation of further calls against the letters of credit and had not recorded offsetting claims revenue in our financial statements. | |
BWCC has submitted claims to the customer based on the customer’s failure to supply fuel complying with the contract specifications that has resulted (and continues to result) in further delays, reduced plant performance abilities and damage to plant equipment. Following the customer’s denial of BWCC’s change order request relating to schedule delays, delay costs and extra work, on January 16, 2014, BWCC filed suit against the customer in the Court of Common Pleas, Summit County, Ohio, Case No. 2014 01 0208, seeking damages in excess of $37 million (the “Ohio suit”). On or about January 30, 2014, BWCC’s customer filed suit against BWCC in the Superior Court of Coos County, New Hampshire, Case No. 214-2014-CV-14 alleging breach of contract and seeking unspecified amounts (the “New Hampshire suit”). On June 26, 2014, the Ohio suit was dismissed on jurisdictional and forum non conveniens grounds. BWCC is considering its response to the New Hampshire suit and still intends to seek recovery of damages incurred to date in excess of $50 million. | |
We believe BWCC has sound legal and factual bases for its claims. BWCC intends to aggressively pursue recovery on its claims, including recovery of the wrongful calls against BWCC’s letters of credit. However, it is premature to predict the outcome of this matter. The litigation could be lengthy, and if BWCC’s customer were to prevail completely or substantially in this matter, the outcome could have a material adverse effect on our financial statements. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||
Our global operations give rise to exposure to market risks from changes in foreign currency exchange (“FX”) rates. We use derivative financial instruments, primarily FX forward contracts, to reduce the impact of changes in FX rates on our operating results. We use these instruments primarily to hedge our exposure associated with revenues or costs on our long-term contracts that are denominated in currencies other than our operating entities’ functional currencies. We do not hold or issue derivative financial instruments for trading or other speculative purposes. | |||||||||||||||||
We enter into derivative financial instruments primarily as hedges of certain firm purchase and sale commitments denominated in foreign currencies. We record these contracts at fair value on our condensed consolidated balance sheets. Depending on the hedge designation at the inception of the contract, the related gains and losses on these contracts are either deferred in stockholders’ equity as a component of accumulated other comprehensive income until the hedged item is recognized in earnings, or offset against the change in fair value of the hedged firm commitment through earnings. Any ineffective portion of a derivative’s change in fair value and any portion excluded from the assessment of effectiveness are immediately recognized in other – net on our condensed consolidated statements of income. The gain or loss on a derivative instrument not designated as a hedging instrument is also immediately recognized in earnings. Gains and losses on derivative financial instruments that require immediate recognition are included as a component of other– net in our condensed consolidated statements of income. | |||||||||||||||||
We have designated all of our FX forward contracts that qualify for hedge accounting as cash flow hedges. The hedged risk is the risk of changes in functional-currency-equivalent cash flows attributable to changes in FX spot rates of forecasted transactions related to long-term contracts. We exclude from our assessment of effectiveness the portion of the fair value of the forward contracts attributable to the difference between FX spot rates and FX forward rates. At June 30, 2014, we had deferred approximately $0.4 million of net gains on these derivative financial instruments in accumulated other comprehensive income. Assuming market conditions continue, we expect to recognize substantially all of this amount in the next twelve months. | |||||||||||||||||
At June 30, 2014, our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $71.6 million at June 30, 2014, with maturities extending to December 2016. These instruments consist primarily of contracts to purchase or sell Canadian Dollars. We are exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. We attempt to mitigate this risk by using major financial institutions with high credit ratings. The counterparties to all of our FX forward contracts are financial institutions included in our credit facility. Our hedge counterparties have the benefit of the same collateral arrangements and covenants as described under our credit facility. | |||||||||||||||||
The following tables summarize our derivative financial instruments at June 30, 2014 and December 31, 2013: | |||||||||||||||||
Asset and Liability Derivatives | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Derivatives Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Location | |||||||||||||||||
Accounts receivable-other | $ | 73 | $ | 1,139 | |||||||||||||
Other assets | $ | 57 | $ | 94 | |||||||||||||
Accounts payable | $ | 398 | $ | 581 | |||||||||||||
Other liabilities | $ | 203 | $ | 603 | |||||||||||||
Derivatives Not Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Location | |||||||||||||||||
Accounts receivable-other | $ | 614 | $ | 464 | |||||||||||||
Other assets | $ | 9 | $ | 50 | |||||||||||||
Accounts payable | $ | 26 | $ | 10 | |||||||||||||
Other liabilities | $ | 5 | $ | — | |||||||||||||
The effects of derivatives on our financial statements are outlined below: | |||||||||||||||||
The Effects of Derivative Instruments on our | |||||||||||||||||
Financial Statements | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivatives Designated as Hedges: | |||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income | $ | 1,122 | $ | (2,212 | ) | $ | (192 | ) | $ | (5,210 | ) | ||||||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | |||||||||||||||||
Location | |||||||||||||||||
Revenues | $ | (240 | ) | $ | (621 | ) | $ | (77 | ) | $ | (1,152 | ) | |||||
Cost of operations | $ | 1,153 | $ | (1,117 | ) | $ | 127 | $ | (2,006 | ) | |||||||
Other-net | $ | — | $ | 101 | $ | 10 | $ | 116 | |||||||||
Gain recognized in income: portion excluded from effectiveness testing | |||||||||||||||||
Location | |||||||||||||||||
Other-net | $ | 211 | $ | 161 | $ | 278 | $ | 353 | |||||||||
Derivatives Not Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Gain (loss) recognized in income | |||||||||||||||||
Location | |||||||||||||||||
Other-net | $ | (280 | ) | $ | 93 | $ | 155 | $ | (583 | ) |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE 8 – FAIR VALUE MEASUREMENTS | |||||||||||||||||
Investments | |||||||||||||||||
The following is a summary of our available-for-sale securities measured at fair value at June 30, 2014 (in thousands): | |||||||||||||||||
6/30/14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mutual funds | $ | 4,146 | $ | — | $ | 4,146 | $ | — | |||||||||
Asset-backed securities and collateralized mortgage obligations | 357 | — | 357 | — | |||||||||||||
Commercial paper | 4,249 | 4,249 | |||||||||||||||
Total | $ | 8,752 | $ | — | $ | 8,752 | $ | — | |||||||||
The following is a summary of our available-for-sale securities measured at fair value at December 31, 2013 (in thousands): | |||||||||||||||||
12/31/13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mutual funds | $ | 4,001 | $ | — | $ | 4,001 | $ | — | |||||||||
U.S. Government and agency securities | 3,000 | 3,000 | — | — | |||||||||||||
Asset-backed securities and collateralized mortgage obligations | 425 | — | 425 | — | |||||||||||||
Commercial paper | 7,748 | — | 7,748 | — | |||||||||||||
Total | $ | 15,174 | $ | 3,000 | $ | 12,174 | $ | — | |||||||||
We estimate the fair value of investments based on quoted market prices. For investments for which there are no quoted market prices, we derive fair values from available yield curves for investments of similar quality and terms. | |||||||||||||||||
Derivatives | |||||||||||||||||
Level 2 derivative assets and liabilities currently consist of FX forward contracts. Where applicable, the value of these derivative assets and liabilities is computed by discounting the projected future cash flow amounts to present value using market-based observable inputs, including FX forward and spot rates, interest rates and counterparty performance risk adjustments. At June 30, 2014 and December 31, 2013, we had forward contracts outstanding to purchase or sell foreign currencies, primarily Canadian Dollars, with a total fair value of $0.1 million and $0.6 million, respectively. | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments, as follows: | |||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents. The carrying amounts that we have reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature. | |||||||||||||||||
Long-term and short-term debt. We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our debt instruments approximated their carrying value at June 30, 2014 and December 31, 2013. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Stock-Based Compensation | ' |
NOTE 9 – STOCK-BASED COMPENSATION | |
Total stock-based compensation expense for all of our plans recognized for the three and six months ended June 30, 2014 totaled $5.9 million and $7.8 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2014 totaling $2.3 million and $3.0 million, respectively. | |
Total stock-based compensation expense for all of our plans recognized for the three and six months ended June 30, 2013 totaled $5.2 million and $9.7 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2013 totaling $2.0 million and $3.7 million, respectively. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
NOTE 10 – SEGMENT REPORTING | |||||||||||||||||
As described in Note 1, our operations are assessed based on five reportable segments. An analysis of our operations by reportable segment is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
REVENUES: | |||||||||||||||||
Power Generation | $ | 327,379 | $ | 471,191 | $ | 639,457 | $ | 932,654 | |||||||||
Nuclear Operations | 293,438 | 330,986 | 579,652 | 592,125 | |||||||||||||
Technical Services | 26,015 | 27,432 | 50,470 | 52,661 | |||||||||||||
Nuclear Energy | 44,927 | 63,185 | 92,707 | 126,701 | |||||||||||||
mPower | — | 333 | 278 | 637 | |||||||||||||
Adjustments and Eliminations(1) | (5,753 | ) | (6,991 | ) | (14,541 | ) | (13,219 | ) | |||||||||
$ | 686,006 | $ | 886,136 | $ | 1,348,023 | $ | 1,691,559 | ||||||||||
(1) Segment revenues are net of the following intersegment transfers and other adjustments: | |||||||||||||||||
Power Generation Transfers | $ | 1,239 | $ | 1,538 | $ | 4,220 | $ | 2,300 | |||||||||
Nuclear Operations Transfers | 1,880 | 1,539 | 4,967 | 2,816 | |||||||||||||
Technical Services Transfers | — | 1,014 | 52 | 1,549 | |||||||||||||
Nuclear Energy Transfers | 2,634 | 2,900 | 5,302 | 6,554 | |||||||||||||
mPower Transfers | — | — | — | — | |||||||||||||
$ | 5,753 | $ | 6,991 | $ | 14,541 | $ | 13,219 | ||||||||||
OPERATING INCOME: | |||||||||||||||||
Power Generation | $ | 15,215 | $ | 30,535 | $ | 25,757 | $ | 63,865 | |||||||||
Nuclear Operations | 58,682 | 65,737 | 118,210 | 120,461 | |||||||||||||
Technical Services | 15,078 | 15,235 | 29,867 | 29,414 | |||||||||||||
Nuclear Energy | 1,548 | 7,922 | 2,071 | 10,180 | |||||||||||||
mPower | (31,933 | ) | (1,104 | ) | (58,642 | ) | (28,051 | ) | |||||||||
$ | 58,590 | $ | 118,325 | $ | 117,263 | $ | 195,869 | ||||||||||
Unallocated Corporate(1) | (6,002 | ) | (7,387 | ) | (8,377 | ) | (16,295 | ) | |||||||||
Special Charges for Restructuring Activities | (17,470 | ) | (12,232 | ) | (20,128 | ) | (20,655 | ) | |||||||||
Total Operating Income(2) | $ | 35,118 | $ | 98,706 | $ | 88,758 | $ | 158,919 | |||||||||
Other Income (Expense): | |||||||||||||||||
Interest income | 190 | 323 | 609 | 655 | |||||||||||||
Interest expense | (921 | ) | (789 | ) | (1,820 | ) | (1,607 | ) | |||||||||
Other – net | 580 | 1,005 | 1,902 | 2,411 | |||||||||||||
Total Other Income (Expense) | (151 | ) | 539 | 691 | 1,459 | ||||||||||||
Income before Provision for Income Taxes | $ | 34,967 | $ | 99,245 | $ | 89,449 | $ | 160,378 | |||||||||
(1) Unallocated corporate includes general corporate overhead not allocated to segments. | |||||||||||||||||
(2) Included in operating income is the following: | |||||||||||||||||
(Gains) Losses on Asset Disposals and Impairments – Net: | |||||||||||||||||
Power Generation | $ | 1,457 | $ | (7 | ) | $ | 1,457 | $ | (85 | ) | |||||||
Nuclear Operations | — | — | — | — | |||||||||||||
Technical Services | — | 163 | — | 163 | |||||||||||||
Nuclear Energy | — | — | — | 9 | |||||||||||||
mPower | — | — | — | — | |||||||||||||
$ | 1,457 | $ | 156 | $ | 1,457 | $ | 87 | ||||||||||
Equity in Income of Investees: | |||||||||||||||||
Power Generation | $ | 434 | $ | 5,202 | $ | 2,800 | $ | 7,309 | |||||||||
Nuclear Operations | — | — | — | — | |||||||||||||
Technical Services | 12,749 | 13,699 | 25,650 | 26,532 | |||||||||||||
Nuclear Energy | — | (126 | ) | 2 | (279 | ) | |||||||||||
mPower | — | — | — | — | |||||||||||||
$ | 13,183 | $ | 18,775 | $ | 28,452 | $ | 33,562 | ||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
NOTE 11 – EARNINGS PER SHARE | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||
Basic: | |||||||||||||||||
Net income attributable to The Babcock & Wilcox Company | $ | 26,437 | $ | 72,870 | $ | 71,481 | $ | 120,044 | |||||||||
Weighted average common shares | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 | |||||||||||||
Basic earnings per common share | $ | 0.24 | $ | 0.65 | $ | 0.65 | $ | 1.06 | |||||||||
Diluted: | |||||||||||||||||
Net income attributable to The Babcock & Wilcox Company | $ | 26,437 | $ | 72,870 | $ | 71,481 | $ | 120,044 | |||||||||
Weighted average common shares (basic) | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options, restricted stock and performance shares(1) | 350,393 | 763,744 | 398,511 | 701,793 | |||||||||||||
Adjusted weighted average common shares | 110,116,630 | 112,662,563 | 110,501,337 | 113,699,859 | |||||||||||||
Diluted earnings per common share | $ | 0.24 | $ | 0.65 | $ | 0.65 | $ | 1.06 | |||||||||
-1 | At June 30, 2014 and 2013, we have excluded from our diluted share calculation 1,373,087 and 1,648,719 shares, respectively, related to stock options, as their effect would have been antidilutive. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Reporting Segments | ' | ||||||||||||||||||||
Reporting Segments | |||||||||||||||||||||
We operate in five reportable segments: Power Generation, Nuclear Operations, Technical Services, Nuclear Energy and mPower. Our reportable segments are further described as follows: | |||||||||||||||||||||
• | Our Power Generation segment provides an advanced, clean and diverse portfolio of steam generating equipment, proven emissions control systems for environmental regulations, renewable energy solutions (biomass, combined heat and power, waste-to-energy and concentrating solar power), boiler cleaning systems, material transport equipment, fuel handling systems, cogeneration and combined cycle installations, and carbon-capture and sequestration technologies. For this full range of product offerings, we offer complete aftermarket, operation and maintenance and construction project services. We provide products and services to electric utilities, municipalities, EPC contractors, architect engineers, independent power producers, international trading firms, electric power cooperatives and state electricity boards. Our markets include electric power generation, industrial, pulp and paper, chemical, oil refinery, cement, institutional, municipal and government customers worldwide. We have an extensive North American and global footprint including engineering, design, service, manufacturing, sales, business development, regional service centers, manufacturer’s representatives and joint venture facilities located in more than 30 countries around the globe. We have supplied product and services for more than 300,000 MW of installed electric generating capacity in more than 80 countries. | ||||||||||||||||||||
Our steam generating equipment operates on a range of traditional fossil fuels including coal, natural gas and oil along with renewable, unconventional and other typical waste fuel streams. We have commercialized many advanced emissions technologies to control nitrogen oxide, sulfur dioxide, sulfur trioxide, coarse and fine particulate matter, mercury, acid gases and other hazardous air emissions. | |||||||||||||||||||||
On June 20, 2014, we completed the acquisition of MEGTEC Holdings, Inc. (“MEGTEC”). MEGTEC designs, engineers, manufactures and services air pollution control systems and coating/drying equipment for a variety of industrial applications and is expected to complement our environmental products and solutions offerings. | |||||||||||||||||||||
• | Our Nuclear Operations segment manufactures naval nuclear reactors for the U.S. Department of Energy (“DOE”)/National Nuclear Security Administration’s (“NNSA”) Naval Nuclear Propulsion Program, which in turn supplies them to the U.S. Navy for use in submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Mount Vernon, Indiana; Euclid, Ohio; Barberton, Ohio; and Erwin, Tennessee. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components. These two locations are N-Stamp certified by the American Society of Mechanical Engineers (“ASME”), making them two of only a few North American suppliers of large, heavy-walled nuclear components and vessels. The Euclid facility, which is also ASME N-Stamp certified, fabricates electro-mechanical equipment for the U.S. Government, and performs design, manufacturing, inspection, assembly and testing activities. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. (“NFS”), one of our wholly owned subsidiaries. Located in Erwin, NFS also converts Cold War-era government stockpiles of highly enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. | ||||||||||||||||||||
• | Our Technical Services segment provides various services to the U.S. Government, including uranium processing, environmental site restoration services and management and operating services for various U.S. Government-owned facilities. These services are provided to the Department of Defense and the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management. Through this segment we deliver products and management solutions to nuclear operations and high-consequence manufacturing facilities. A significant portion of this segment’s operations are conducted through joint ventures. | ||||||||||||||||||||
• | Our Nuclear Energy segment supplies commercial nuclear steam generators and components to nuclear utility customers. B&W has supplied the nuclear industry with more than 1,300 large, heavy components worldwide. This segment is the only heavy nuclear component, N-Stamp certified manufacturer in North America. Our Nuclear Energy segment fabricates pressure vessels, reactors, steam generators, heat exchangers and other auxiliary equipment. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development and metallurgy and materials engineering. In addition, this segment offers services for nuclear steam generators and balance of plant equipment, as well as nondestructive examination and tooling/repair solutions for other plant systems and components. | ||||||||||||||||||||
• | Our mPower segment is designing the B&W mPower™ reactor, a small modular reactor (“SMR”) design generally based on proven light-water nuclear technology and able to operate for four years without refueling. Through our majority-owned joint venture, Generation mPower LLC (“GmP”), we are developing the associated mPower Plant power generating facility, which will use two B&W mPower™ reactors to generate 360 MW within an advanced passively safe and secure plant architecture. As part of this initiative, we were selected to receive funding pursuant to a Cooperative Agreement with the DOE under its Small Modular Reactor Licensing Technical Support Program (the “Funding Program”) for SMR deployment by 2022. This Funding Program provides financial assistance for our mPower Plant design, engineering and licensing activities supporting the planned first mPower Plant commercial operation date by 2022. On April 14, 2014, we announced our plans to restructure the mPower program to focus on technology development. Beginning in the third quarter of 2014, we expect to slow the pace of development and invest no more than $15 million on an annual basis, net of amounts reimbursed from the Funding Program. We intend to work with the DOE to amend the Funding Program to include, among other things, mutually agreeable program milestones for continued funding. If a mutually agreeable plan is not identified, future amounts may not be made available to us under the Funding Program. | ||||||||||||||||||||
See Note 10 for further information regarding our segments. | |||||||||||||||||||||
Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the consolidated financial statements and the related footnotes included in our 2013 10-K. | |||||||||||||||||||||
Contracts and Revenue Recognition | ' | ||||||||||||||||||||
Contracts and Revenue Recognition | |||||||||||||||||||||
We generally recognize contract revenues and related costs on a percentage-of-completion method for individual contracts or combinations of contracts based on work performed, man hours or a cost-to-cost method, as applicable to the product or activity involved. We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress completion as a percentage of the total project. Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for materials and major third-party subcontractors, if it appears that such exclusion would result in a more meaningful measurement of actual contract progress and resulting periodic allocation of income. We include revenues and related costs so recorded, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in contracts in progress. We include in advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized under the percentage-of-completion method. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. | |||||||||||||||||||||
For contracts as to which we are unable to estimate the final profitability except to assure that no loss will ultimately be incurred, we recognize equal amounts of revenue and cost until the final results can be estimated more precisely. For these deferred profit recognition contracts, we recognize revenue and cost equally and only recognize gross margin when probable and reasonably estimable, which we generally determine to be when the contract is approximately 70% complete. We treat long-term construction contracts that contain such a level of risk and uncertainty that estimation of the final outcome is impractical, except to assure that no loss will be incurred, as deferred profit recognition contracts. | |||||||||||||||||||||
Our policy is to account for fixed-price contracts under the completed-contract method if we believe that we are unable to reasonably forecast cost to complete at start-up. Under the completed-contract method, income is recognized only when a contract is completed or substantially complete. | |||||||||||||||||||||
For parts orders and certain aftermarket services activities, we recognize revenues as goods are delivered and work is performed. | |||||||||||||||||||||
Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We include claims for extra work or changes in scope of work to the extent of costs incurred in contract revenues when we believe collection is probable. | |||||||||||||||||||||
In the three and six months ended June 30, 2014, we recorded contract losses totaling $4.0 million and $11.6 million, respectively, for additional estimated costs to complete our Power Generation segment’s Berlin Station project, which includes estimated potential letter of credit draws for liquidated damages. These losses are in addition to contract losses recorded for this project during 2013 and 2012. We had previously asserted that substantial completion had been achieved on this project in early 2014 and that any further delays to complete this project, beyond the delays already caused by the customer during construction or otherwise excusable under the contract, are the result of the customer’s failure to supply fuel complying with the contract specifications. The customer has certified that we achieved substantial completion on the project effective July 19, 2014, following which the customer will have no further claims for Delay LDs. See Note 6 for legal proceedings associated with this matter. | |||||||||||||||||||||
Comprehensive Income | ' | ||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
The components of accumulated other comprehensive income included in stockholders’ equity are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Currency translation adjustments | $ | 31,277 | $ | 38,415 | |||||||||||||||||
Net unrealized gain on investments | 207 | 130 | |||||||||||||||||||
Net unrealized gain on derivative financial instruments | 438 | 627 | |||||||||||||||||||
Unrecognized prior service cost on benefit obligations | (10,030 | ) | (10,824 | ) | |||||||||||||||||
Accumulated other comprehensive income | $ | 21,892 | $ | 28,348 | |||||||||||||||||
The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accumulated Other Comprehensive Income | (In thousands) | Line Item Presented | |||||||||||||||||||
Component Recognized | |||||||||||||||||||||
Realized (losses) gains on derivative financial instruments | $ | (240 | ) | $ | (621 | ) | $ | (77 | ) | $ | (1,152 | ) | Revenues | ||||||||
1,153 | (1,117 | ) | 127 | (2,006 | ) | Cost of operations | |||||||||||||||
— | 101 | 10 | 116 | Other-net | |||||||||||||||||
$ | 913 | (1,637 | ) | $ | 60 | (3,042 | ) | Total before tax | |||||||||||||
(234 | ) | 395 | (13 | ) | 753 | Provision for Income Taxes | |||||||||||||||
$ | 679 | $ | (1,242 | ) | $ | 47 | $ | (2,289 | ) | Net Income | |||||||||||
Amortization of prior service cost on benefit obligations | $ | (509 | ) | $ | (660 | ) | $ | (1,018 | ) | $ | (1,411 | ) | Cost of operations | ||||||||
(86 | ) | (50 | ) | (171 | ) | (100 | ) | Selling, general and administrative expenses | |||||||||||||
(595 | ) | (710 | ) | (1,189 | ) | (1,511 | ) | Total before tax | |||||||||||||
198 | 245 | 395 | 518 | Provision for Income Taxes | |||||||||||||||||
$ | (397 | ) | $ | (465 | ) | $ | (794 | ) | $ | (993 | ) | Net Income | |||||||||
Realized gain on investments | $ | 7 | $ | 10 | $ | 41 | $ | 724 | Other-net | ||||||||||||
(3 | ) | (3 | ) | (15 | ) | (3 | ) | Provision for Income Taxes | |||||||||||||
$ | 4 | $ | 7 | $ | 26 | $ | 721 | Net Income | |||||||||||||
Total reclassification for the period | $ | 286 | $ | (1,700 | ) | $ | (721 | ) | $ | (2,561 | ) | ||||||||||
Inventories | ' | ||||||||||||||||||||
Inventories | |||||||||||||||||||||
The components of inventories are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Raw materials and supplies | $ | 82,485 | $ | 85,455 | |||||||||||||||||
Work in progress | 9,986 | 10,872 | |||||||||||||||||||
Finished goods | 20,500 | 16,731 | |||||||||||||||||||
Total inventories | $ | 112,971 | $ | 113,058 | |||||||||||||||||
Restricted Cash and Cash Equivalents | ' | ||||||||||||||||||||
Restricted Cash and Cash Equivalents | |||||||||||||||||||||
At June 30, 2014, we had restricted cash and cash equivalents totaling $42.3 million, $3.3 million of which was held in restricted foreign cash accounts, $2.6 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $36.4 million of which was held to meet reinsurance reserve requirements of our captive insurer (in lieu of long-term investments). | |||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
Goodwill | |||||||||||||||||||||
Goodwill represents the excess of the cost of our acquired businesses over the fair value of the net assets acquired. We perform testing of goodwill for impairment annually. We may elect to perform a qualitative test when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant events and circumstances that could affect fair value during the current year. If we conclude based on this assessment that it is more likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test. In all other circumstances, we utilize a two-step quantitative impairment test to identify potential goodwill impairment and measure the amount of any goodwill impairment. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. | |||||||||||||||||||||
The following summarizes the changes in the carrying amount of goodwill: | |||||||||||||||||||||
Power | Nuclear | Technical | Nuclear | Total | |||||||||||||||||
Generation | Operations | Services | Energy | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 104,630 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 281,708 | |||||||||||
Acquisition of MEGTEC (Note 2) | 115,314 | — | — | — | 115,314 | ||||||||||||||||
Foreign currency translation adjustments and other | (193 | ) | — | — | — | (193 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | 219,751 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 396,829 | |||||||||||
Intangible Assets | ' | ||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||
Intangible assets are recognized at fair value when acquired. Intangible assets with definite lives are amortized to operating expense using the straight-line method over their estimated useful lives and tested for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. Intangible assets with indefinite lives are not amortized and are subject to annual impairment testing. We may elect to perform a qualitative assessment when testing indefinite lived intangible assets for impairment to determine whether events or circumstances affecting significant inputs related to the most recent quantitative evaluation have occurred, indicating that it is more likely than not that the indefinite lived intangible asset is impaired. Otherwise, we test indefinite lived intangible assets for impairment by quantitatively determining the fair value of the indefinite lived intangible asset and comparing the fair value of the intangible assets to its carrying amount. If the carrying amount of the intangible assets exceeds its fair value, we recognize impairment for the amount of the difference. | |||||||||||||||||||||
Warranty Expense | ' | ||||||||||||||||||||
Warranty Expense | |||||||||||||||||||||
We accrue estimated expense included in cost of operations on our condensed consolidated statements of income to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. | |||||||||||||||||||||
The following summarizes the changes in the carrying amount of our accrued warranty expense: | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at beginning of period | $ | 56,436 | $ | 83,682 | |||||||||||||||||
Additions | 5,463 | 11,423 | |||||||||||||||||||
Acquisition of MEGTEC | 4,693 | — | |||||||||||||||||||
Expirations and other changes | (3,204 | ) | (8,038 | ) | |||||||||||||||||
Payments | (4,568 | ) | (11,659 | ) | |||||||||||||||||
Translation and other | 5 | (921 | ) | ||||||||||||||||||
Balance at end of period | $ | 58,825 | $ | 74,487 | |||||||||||||||||
Pension Plans and Postretirement Benefits | ' | ||||||||||||||||||||
Pension Plans and Postretirement Benefits | |||||||||||||||||||||
We sponsor various defined benefit pension and postretirement plans covering certain employees of our U.S. and international subsidiaries. We utilize actuarial valuations to calculate the cost and benefit obligations of our pension and postretirement benefits. The actuarial valuations utilize significant assumptions in the determination of our benefit cost and obligations, including assumptions regarding discount rates, expected returns on plan assets and health care cost trends. We determine our discount rate based on a review of published financial data and discussions with our actuary regarding rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement plan obligations. The expected rate of return on plan assets assumption is based on capital market assumptions of the long-term expected returns for the investment mix of assets currently in the portfolio. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the classes within the total asset portfolio. Expected health care cost trends represent expected annual rates of change in the cost of health care benefits and are estimated based on analysis of health care cost inflation. | |||||||||||||||||||||
The components of benefit cost related to service cost, interest cost, expected return on plan assets and prior service cost amortization are recorded on a quarterly basis based on actuarial assumptions. In the fourth quarter of each year, we immediately recognize net actuarial gains and losses into earnings as a component of net periodic benefit cost. Recognized net actuarial gains and losses consist primarily of our reported actuarial gains and losses and the difference between the actual return on plan assets and the expected return on plan assets. | |||||||||||||||||||||
We recognize the funded status of each plan as either an asset or a liability in the consolidated balance sheets. The funded status is the difference between the fair value of plan assets and the present value its benefit obligation, determined on a plan-by-plan basis. Our pension plan assets can include assets that are difficult to value. See Note 7 of our 2013 10-K for a detailed description of our plan assets. | |||||||||||||||||||||
Research and Development | ' | ||||||||||||||||||||
Research and Development | |||||||||||||||||||||
Our research and development activities are related to the development and improvement of new and existing products and equipment, as well as conceptual and engineering evaluation for translation into practical applications. We charge research and development costs unrelated to specific contracts as they are incurred. Substantially all of these costs are in our Power Generation and mPower segments, the majority of which are related to the development of our B&W mPower™ reactor and the associated mPower Plant. | |||||||||||||||||||||
During the three and six months ended June 30, 2014, we recognized $1.6 million and $5.8 million, respectively, of non-cash in-kind research and development costs as compared to $4.4 million and $7.4 million during the three and six months ended June 30, 2013, respectively, related to services contributed by our minority partner to GmP. | |||||||||||||||||||||
On April 12, 2013, Babcock & Wilcox mPower, Inc., a wholly owned subsidiary of B&W, entered into a Cooperative Agreement establishing the terms and conditions of a funding award totaling $150 million under the DOE’s Funding Program. This cost-sharing award requires us to use the DOE funds to cover first-of-a-kind engineering costs associated with SMR design certification and licensing efforts. The DOE will provide cost reimbursement for up to 50% of qualified expenditures incurred from April 1, 2013 to March 31, 2018. The DOE has authorized $105.5 million of funding to B&W for this award program. Congress has allocated and designated an additional $79 million from the 2014 budget to the Cooperative Agreement; however, the DOE has not yet obligated those funds to us. In the six months ended June 30, 2014 and 2013, we recognized $19.8 million and $37.8 million, respectively, associated with the funding award. | |||||||||||||||||||||
On April 14, 2014, we announced our plans to restructure the mPower program to focus on technology development. Beginning in the third quarter of 2014, we expect to slow the pace of development and invest no more than $15 million on an annual basis, net of amounts reimbursed from the Funding Program. We intend to work with the DOE to amend the Funding Program, to include, among other things, mutually agreeable program milestones for continued funding. If a mutually agreeable plan is not identified, future amounts may not be made available to us under the Funding Program. | |||||||||||||||||||||
Provision for Income Taxes | ' | ||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||
We are subject to U.S. federal income tax and income tax of multiple state and international jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period. We classify interest and penalties related to taxes (net of any applicable tax benefit) as a component of provision for income taxes on our condensed consolidated statements of income. | |||||||||||||||||||||
Our effective tax rate for the three months ended June 30, 2014 was approximately 32.8% as compared to 29.8% for the three months ended June 30, 2013. The effective tax rate for the three months ended June 30, 2014 was lower than our statutory rate primarily due to the impact of an increase in benefits for amended federal manufacturing deductions and certain amended state return filings, offset by an increase to a valuation allowance against certain state deferred tax assets. The effective tax rate for the three months ended June 30, 2013 was lower than the effective tax rate for the period ended June 30, 2014 primarily due to the impact of settling claims within certain state and foreign jurisdictions in the prior year period. | |||||||||||||||||||||
Our effective tax rate for the six months ended June 30, 2014 was approximately 27.7% as compared to 28.6% for the six months ended June 30, 2013. The effective tax rate for the six months ended June 30, 2014 was lower than our statutory rate primarily due to the receipt of a favorable ruling from the Internal Revenue Service that allows us to amend prior year U.S. income tax returns to exclude distributions of certain of our foreign joint ventures from domestic taxable income. Our effective tax rate for the six months ended June 30, 2013 reflected the impact of certain tax benefits related to the retroactive provisions of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013. These 2013 tax benefits relate primarily to research and development tax credits, for which we have not recognized a benefit in 2014 due to the current expiration of the tax credit. | |||||||||||||||||||||
As of June 30, 2014, we have gross unrecognized tax benefits of $5.9 million, which, if recognized, would lower our effective tax rate from continuing operations. | |||||||||||||||||||||
Recently Adopted Accounting Standards | ' | ||||||||||||||||||||
Recently Adopted Accounting Standards | |||||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to the Topics Presentation of Financial Statements and Property, Plant and Equipment. This update changes the criteria for reporting discontinued operations such that a disposal of a component of an entity will be required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We early adopted this pronouncement in the second quarter of 2014. The disposal of our Nuclear Projects business in the second quarter of 2014 did not qualify as a discontinued operation under the new guidance due to its relative insignificance to B&W’s operations and financial results. See Note 2 for additional information related to this disposal. | |||||||||||||||||||||
New Accounting Standards | ' | ||||||||||||||||||||
New Accounting Standards | |||||||||||||||||||||
In May 2014, the FASB issued Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in the Topic Revenue Recognition and most industry specific guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This update is effective in 2017, and early adoption is not permitted. The update may be adopted either retrospectively to each prior period or as a cumulative-effect adjustment on the date of adoption. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
The components of accumulated other comprehensive income included in stockholders’ equity are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Currency translation adjustments | $ | 31,277 | $ | 38,415 | |||||||||||||||||
Net unrealized gain on investments | 207 | 130 | |||||||||||||||||||
Net unrealized gain on derivative financial instruments | 438 | 627 | |||||||||||||||||||
Unrecognized prior service cost on benefit obligations | (10,030 | ) | (10,824 | ) | |||||||||||||||||
Accumulated other comprehensive income | $ | 21,892 | $ | 28,348 | |||||||||||||||||
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accumulated Other Comprehensive Income | (In thousands) | Line Item Presented | |||||||||||||||||||
Component Recognized | |||||||||||||||||||||
Realized (losses) gains on derivative financial instruments | $ | (240 | ) | $ | (621 | ) | $ | (77 | ) | $ | (1,152 | ) | Revenues | ||||||||
1,153 | (1,117 | ) | 127 | (2,006 | ) | Cost of operations | |||||||||||||||
— | 101 | 10 | 116 | Other-net | |||||||||||||||||
$ | 913 | (1,637 | ) | $ | 60 | (3,042 | ) | Total before tax | |||||||||||||
(234 | ) | 395 | (13 | ) | 753 | Provision for Income Taxes | |||||||||||||||
$ | 679 | $ | (1,242 | ) | $ | 47 | $ | (2,289 | ) | Net Income | |||||||||||
Amortization of prior service cost on benefit obligations | $ | (509 | ) | $ | (660 | ) | $ | (1,018 | ) | $ | (1,411 | ) | Cost of operations | ||||||||
(86 | ) | (50 | ) | (171 | ) | (100 | ) | Selling, general and administrative expenses | |||||||||||||
(595 | ) | (710 | ) | (1,189 | ) | (1,511 | ) | Total before tax | |||||||||||||
198 | 245 | 395 | 518 | Provision for Income Taxes | |||||||||||||||||
$ | (397 | ) | $ | (465 | ) | $ | (794 | ) | $ | (993 | ) | Net Income | |||||||||
Realized gain on investments | $ | 7 | $ | 10 | $ | 41 | $ | 724 | Other-net | ||||||||||||
(3 | ) | (3 | ) | (15 | ) | (3 | ) | Provision for Income Taxes | |||||||||||||
$ | 4 | $ | 7 | $ | 26 | $ | 721 | Net Income | |||||||||||||
Total reclassification for the period | $ | 286 | $ | (1,700 | ) | $ | (721 | ) | $ | (2,561 | ) | ||||||||||
Inventories | ' | ||||||||||||||||||||
The components of inventories are as follows: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Raw materials and supplies | $ | 82,485 | $ | 85,455 | |||||||||||||||||
Work in progress | 9,986 | 10,872 | |||||||||||||||||||
Finished goods | 20,500 | 16,731 | |||||||||||||||||||
Total inventories | $ | 112,971 | $ | 113,058 | |||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||
The following summarizes the changes in the carrying amount of goodwill: | |||||||||||||||||||||
Power | Nuclear | Technical | Nuclear | Total | |||||||||||||||||
Generation | Operations | Services | Energy | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 104,630 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 281,708 | |||||||||||
Acquisition of MEGTEC (Note 2) | 115,314 | — | — | — | 115,314 | ||||||||||||||||
Foreign currency translation adjustments and other | (193 | ) | — | — | — | (193 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | 219,751 | $ | 118,103 | $ | 45,000 | $ | 13,975 | $ | 396,829 | |||||||||||
Summary of Changes in Carrying Amount of Accrued Warranty Expense | ' | ||||||||||||||||||||
The following summarizes the changes in the carrying amount of our accrued warranty expense: | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at beginning of period | $ | 56,436 | $ | 83,682 | |||||||||||||||||
Additions | 5,463 | 11,423 | |||||||||||||||||||
Acquisition of MEGTEC | 4,693 | — | |||||||||||||||||||
Expirations and other changes | (3,204 | ) | (8,038 | ) | |||||||||||||||||
Payments | (4,568 | ) | (11,659 | ) | |||||||||||||||||
Translation and other | 5 | (921 | ) | ||||||||||||||||||
Balance at end of period | $ | 58,825 | $ | 74,487 | |||||||||||||||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Summary of Purchase Price Allocation Including Finalization of Asset Valuations | ' | ||||||||||||||||
Our preliminary purchase price allocation, as follows, is subject to change upon receipt of additional information and completion of further analysis, including, but not limited to, finalization of long-lived and intangible asset valuations: | |||||||||||||||||
MEGTEC | |||||||||||||||||
(in thousands) | |||||||||||||||||
Unrestricted cash | $ | 14,232 | |||||||||||||||
Accounts receivable | $ | 23,459 | |||||||||||||||
Inventories | $ | 5,528 | |||||||||||||||
Other current assets | $ | 9,069 | |||||||||||||||
Property, plant and equipment | $ | 5,090 | |||||||||||||||
Goodwill | $ | 115,314 | |||||||||||||||
Intangible assets | $ | 42,000 | |||||||||||||||
Total assets acquired | $ | 214,692 | |||||||||||||||
Accounts payable | $ | 13,402 | |||||||||||||||
Advance billings on contracts | $ | 9,144 | |||||||||||||||
Other current liabilities | $ | 17,477 | |||||||||||||||
Pension liability | $ | 5,041 | |||||||||||||||
Deferred income taxes | $ | 12,137 | |||||||||||||||
Other liabilities | $ | 1,085 | |||||||||||||||
Total liabilities assumed | $ | 58,286 | |||||||||||||||
Net assets acquired | $ | 156,406 | |||||||||||||||
Unrestricted cash acquired | $ | 14,232 | |||||||||||||||
Net assets acquired, net of unrestricted cash acquired | $ | 142,174 | |||||||||||||||
Amount of tax deductible goodwill | $ | — | |||||||||||||||
Summary of Intangible Assets Acquired | ' | ||||||||||||||||
The intangible assets included above consist of the following (dollar amounts in thousands): | |||||||||||||||||
Amount | Amortization Period | ||||||||||||||||
Customer relationships | $ | 20,000 | 7 years | ||||||||||||||
Backlog | $ | 9,500 | 1 year | ||||||||||||||
Trade names / trademarks | $ | 6,000 | 15 years | ||||||||||||||
Developed technology | $ | 6,500 | 10 years | ||||||||||||||
Summary of Unaudited Pro Forma Financial Information | ' | ||||||||||||||||
the following unaudited pro forma financial information presents our results of operations for the three and six months ended June 30, 2014 and 2013 had the acquisition of MEGTEC occurred on January 1, 2013. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | 772,972 | $ | 933,793 | $ | 1,428,355 | $ | 1,768,672 | |||||||||
Net Income Attributable to The Babcock & Wilcox Company | $ | 28,780 | $ | 74,139 | $ | 74,530 | $ | 119,313 | |||||||||
Basic Earnings per Common Share | $ | 0.26 | $ | 0.66 | $ | 0.68 | $ | 1.06 | |||||||||
Diluted Earnings per Common Share | $ | 0.26 | $ | 0.66 | $ | 0.67 | $ | 1.05 |
Special_Charges_for_Restructur1
Special Charges for Restructuring Activities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Changes in Restructuring Liabilities | ' | ||||||||
The following summarizes the changes in our restructuring liability for the six months ended June 30, 2014 and 2013: | |||||||||
Six months ended | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at the beginning of the period | $ | 10,054 | $ | — | |||||
Special charges for restructuring activities(1) | 17,743 | 20,655 | |||||||
Payments | (11,327 | ) | (10,705 | ) | |||||
Translation and other | (7 | ) | — | ||||||
Balance at the end of the period | $ | 16,463 | $ | 9,950 | |||||
-1 | Excludes non-cash charges of $2.4 million for the six months ended June 30, 2014, which did not impact the restructuring liability. |
Pension_Plans_and_Postretireme1
Pension Plans and Postretirement Benefits (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost included in net income are as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Service cost | $ | 9,651 | $ | 11,542 | $ | 19,297 | $ | 23,120 | $ | 216 | $ | 248 | $ | 432 | $ | 496 | |||||||||||||||||
Interest cost | 30,361 | 27,838 | 60,688 | 55,626 | 977 | 993 | 1,946 | 1,898 | |||||||||||||||||||||||||
Expected return on plan assets | (37,389 | ) | (36,611 | ) | (74,766 | ) | (73,281 | ) | (575 | ) | (537 | ) | (1,150 | ) | (1,075 | ) | |||||||||||||||||
Amortization of prior service cost (credit) | 635 | 792 | 1,269 | 1,584 | (40 | ) | (82 | ) | (80 | ) | (73 | ) | |||||||||||||||||||||
Net periodic benefit cost | $ | 3,258 | $ | 3,561 | $ | 6,488 | $ | 7,049 | $ | 578 | $ | 622 | $ | 1,148 | $ | 1,246 | |||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Derivative Financial Instruments | ' | ||||||||||||||||
The following tables summarize our derivative financial instruments at June 30, 2014 and December 31, 2013: | |||||||||||||||||
Asset and Liability Derivatives | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Derivatives Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Location | |||||||||||||||||
Accounts receivable-other | $ | 73 | $ | 1,139 | |||||||||||||
Other assets | $ | 57 | $ | 94 | |||||||||||||
Accounts payable | $ | 398 | $ | 581 | |||||||||||||
Other liabilities | $ | 203 | $ | 603 | |||||||||||||
Derivatives Not Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Location | |||||||||||||||||
Accounts receivable-other | $ | 614 | $ | 464 | |||||||||||||
Other assets | $ | 9 | $ | 50 | |||||||||||||
Accounts payable | $ | 26 | $ | 10 | |||||||||||||
Other liabilities | $ | 5 | $ | — | |||||||||||||
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | ' | ||||||||||||||||
The effects of derivatives on our financial statements are outlined below: | |||||||||||||||||
The Effects of Derivative Instruments on our | |||||||||||||||||
Financial Statements | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivatives Designated as Hedges: | |||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income | $ | 1,122 | $ | (2,212 | ) | $ | (192 | ) | $ | (5,210 | ) | ||||||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | |||||||||||||||||
Location | |||||||||||||||||
Revenues | $ | (240 | ) | $ | (621 | ) | $ | (77 | ) | $ | (1,152 | ) | |||||
Cost of operations | $ | 1,153 | $ | (1,117 | ) | $ | 127 | $ | (2,006 | ) | |||||||
Other-net | $ | — | $ | 101 | $ | 10 | $ | 116 | |||||||||
Gain recognized in income: portion excluded from effectiveness testing | |||||||||||||||||
Location | |||||||||||||||||
Other-net | $ | 211 | $ | 161 | $ | 278 | $ | 353 | |||||||||
Derivatives Not Designated as Hedges: | |||||||||||||||||
FX Forward Contracts: | |||||||||||||||||
Gain (loss) recognized in income | |||||||||||||||||
Location | |||||||||||||||||
Other-net | $ | (280 | ) | $ | 93 | $ | 155 | $ | (583 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of Available-for-Sale Securities Measured at Fair Value | ' | ||||||||||||||||
The following is a summary of our available-for-sale securities measured at fair value at June 30, 2014 (in thousands): | |||||||||||||||||
6/30/14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mutual funds | $ | 4,146 | $ | — | $ | 4,146 | $ | — | |||||||||
Asset-backed securities and collateralized mortgage obligations | 357 | — | 357 | — | |||||||||||||
Commercial paper | 4,249 | 4,249 | |||||||||||||||
Total | $ | 8,752 | $ | — | $ | 8,752 | $ | — | |||||||||
The following is a summary of our available-for-sale securities measured at fair value at December 31, 2013 (in thousands): | |||||||||||||||||
12/31/13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mutual funds | $ | 4,001 | $ | — | $ | 4,001 | $ | — | |||||||||
U.S. Government and agency securities | 3,000 | 3,000 | — | — | |||||||||||||
Asset-backed securities and collateralized mortgage obligations | 425 | — | 425 | — | |||||||||||||
Commercial paper | 7,748 | — | 7,748 | — | |||||||||||||
Total | $ | 15,174 | $ | 3,000 | $ | 12,174 | $ | — | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Operating Results by Segment | ' | ||||||||||||||||
As described in Note 1, our operations are assessed based on five reportable segments. An analysis of our operations by reportable segment is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
REVENUES: | |||||||||||||||||
Power Generation | $ | 327,379 | $ | 471,191 | $ | 639,457 | $ | 932,654 | |||||||||
Nuclear Operations | 293,438 | 330,986 | 579,652 | 592,125 | |||||||||||||
Technical Services | 26,015 | 27,432 | 50,470 | 52,661 | |||||||||||||
Nuclear Energy | 44,927 | 63,185 | 92,707 | 126,701 | |||||||||||||
mPower | — | 333 | 278 | 637 | |||||||||||||
Adjustments and Eliminations(1) | (5,753 | ) | (6,991 | ) | (14,541 | ) | (13,219 | ) | |||||||||
$ | 686,006 | $ | 886,136 | $ | 1,348,023 | $ | 1,691,559 | ||||||||||
(1) Segment revenues are net of the following intersegment transfers and other adjustments: | |||||||||||||||||
Power Generation Transfers | $ | 1,239 | $ | 1,538 | $ | 4,220 | $ | 2,300 | |||||||||
Nuclear Operations Transfers | 1,880 | 1,539 | 4,967 | 2,816 | |||||||||||||
Technical Services Transfers | — | 1,014 | 52 | 1,549 | |||||||||||||
Nuclear Energy Transfers | 2,634 | 2,900 | 5,302 | 6,554 | |||||||||||||
mPower Transfers | — | — | — | — | |||||||||||||
$ | 5,753 | $ | 6,991 | $ | 14,541 | $ | 13,219 | ||||||||||
OPERATING INCOME: | |||||||||||||||||
Power Generation | $ | 15,215 | $ | 30,535 | $ | 25,757 | $ | 63,865 | |||||||||
Nuclear Operations | 58,682 | 65,737 | 118,210 | 120,461 | |||||||||||||
Technical Services | 15,078 | 15,235 | 29,867 | 29,414 | |||||||||||||
Nuclear Energy | 1,548 | 7,922 | 2,071 | 10,180 | |||||||||||||
mPower | (31,933 | ) | (1,104 | ) | (58,642 | ) | (28,051 | ) | |||||||||
$ | 58,590 | $ | 118,325 | $ | 117,263 | $ | 195,869 | ||||||||||
Unallocated Corporate(1) | (6,002 | ) | (7,387 | ) | (8,377 | ) | (16,295 | ) | |||||||||
Special Charges for Restructuring Activities | (17,470 | ) | (12,232 | ) | (20,128 | ) | (20,655 | ) | |||||||||
Total Operating Income(2) | $ | 35,118 | $ | 98,706 | $ | 88,758 | $ | 158,919 | |||||||||
Other Income (Expense): | |||||||||||||||||
Interest income | 190 | 323 | 609 | 655 | |||||||||||||
Interest expense | (921 | ) | (789 | ) | (1,820 | ) | (1,607 | ) | |||||||||
Other – net | 580 | 1,005 | 1,902 | 2,411 | |||||||||||||
Total Other Income (Expense) | (151 | ) | 539 | 691 | 1,459 | ||||||||||||
Income before Provision for Income Taxes | $ | 34,967 | $ | 99,245 | $ | 89,449 | $ | 160,378 | |||||||||
(1) Unallocated corporate includes general corporate overhead not allocated to segments. | |||||||||||||||||
(2) Included in operating income is the following: | |||||||||||||||||
(Gains) Losses on Asset Disposals and Impairments – Net: | |||||||||||||||||
Power Generation | $ | 1,457 | $ | (7 | ) | $ | 1,457 | $ | (85 | ) | |||||||
Nuclear Operations | — | — | — | — | |||||||||||||
Technical Services | — | 163 | — | 163 | |||||||||||||
Nuclear Energy | — | — | — | 9 | |||||||||||||
mPower | — | — | — | — | |||||||||||||
$ | 1,457 | $ | 156 | $ | 1,457 | $ | 87 | ||||||||||
Equity in Income of Investees: | |||||||||||||||||
Power Generation | $ | 434 | $ | 5,202 | $ | 2,800 | $ | 7,309 | |||||||||
Nuclear Operations | — | — | — | — | |||||||||||||
Technical Services | 12,749 | 13,699 | 25,650 | 26,532 | |||||||||||||
Nuclear Energy | — | (126 | ) | 2 | (279 | ) | |||||||||||
mPower | — | — | — | — | |||||||||||||
$ | 13,183 | $ | 18,775 | $ | 28,452 | $ | 33,562 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||
Basic: | |||||||||||||||||
Net income attributable to The Babcock & Wilcox Company | $ | 26,437 | $ | 72,870 | $ | 71,481 | $ | 120,044 | |||||||||
Weighted average common shares | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 | |||||||||||||
Basic earnings per common share | $ | 0.24 | $ | 0.65 | $ | 0.65 | $ | 1.06 | |||||||||
Diluted: | |||||||||||||||||
Net income attributable to The Babcock & Wilcox Company | $ | 26,437 | $ | 72,870 | $ | 71,481 | $ | 120,044 | |||||||||
Weighted average common shares (basic) | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options, restricted stock and performance shares(1) | 350,393 | 763,744 | 398,511 | 701,793 | |||||||||||||
Adjusted weighted average common shares | 110,116,630 | 112,662,563 | 110,501,337 | 113,699,859 | |||||||||||||
Diluted earnings per common share | $ | 0.24 | $ | 0.65 | $ | 0.65 | $ | 1.06 | |||||||||
-1 | At June 30, 2014 and 2013, we have excluded from our diluted share calculation 1,373,087 and 1,648,719 shares, respectively, related to stock options, as their effect would have been antidilutive. |
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 14, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
MW | Segment | Department of Energy [Member] | Department of Energy [Member] | Power Generation [Member] | Minimum [Member] | Maximum [Member] | Restricted Foreign Cash [Member] | Cash Held for Future Decommissioning of Facilities [Member] | Cash Held to Meet Reinsurance Reserve Requirements [Member] | ||||
Country | Supplier | Country | Component | ||||||||||
Location | |||||||||||||
MW | |||||||||||||
Country | |||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of countries in which Company operates | 30 | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplied electric generating capacity | 300,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of countries in which Company operates | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' | ' | ' | ' |
Number of N-Stamp certified locations | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of large, heavy-walled nuclear components and vessels suppliers | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of large, heavy components supplied to worldwide | ' | ' | ' | ' | ' | ' | ' | ' | 1,300 | ' | ' | ' | ' |
Operating period of light water nuclear technology | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment for development | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' |
Revenue recognition, percentage of contract completion | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract losses | 4,000,000 | ' | 11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash and cash equivalents, net | 42,300,000 | ' | 42,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash and cash equivalents | 39,660,000 | ' | 39,660,000 | ' | 45,945,000 | ' | ' | ' | ' | ' | 3,300,000 | 2,600,000 | 36,400,000 |
Research and development activities | 1,600,000 | 4,400,000 | 5,830,000 | 7,369,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding award | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' |
Cost reimbursement percentage | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Authorized funding award | ' | ' | ' | ' | ' | 105,500,000 | ' | ' | ' | ' | ' | ' | ' |
Additional allocation received | ' | ' | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | ' | ' |
Recognized funding award | ' | ' | ' | ' | ' | 19,800,000 | 37,800,000 | ' | ' | ' | ' | ' | ' |
Effective tax rate | 32.80% | 29.80% | 27.70% | 28.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits | $5,900,000 | ' | $5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies - Accumulated Other Comprehensive Income (Detail) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Collaboration Arrangement Disclosure [Abstract] | ' | ' |
Currency translation adjustments | $31,277 | $38,415 |
Net unrealized gain on investments | 207 | 130 |
Net unrealized gain on derivative financial instruments | 438 | 627 |
Unrecognized prior service cost on benefit obligations | -10,030 | -10,824 |
Accumulated other comprehensive income | $21,892 | $28,348 |
Basis_of_Presentation_and_Sign5
Basis of Presentation and Significant Accounting Policies - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Revenues | $686,006 | $886,136 | $1,348,023 | $1,691,559 |
Other - net | 580 | 1,005 | 1,902 | 2,411 |
Selling, general and administrative expenses | -101,918 | -106,937 | -196,603 | -210,537 |
Income before Provision for Income Taxes | 34,967 | 99,245 | 89,449 | 160,378 |
Provision for Income Taxes | -11,475 | -29,544 | -24,803 | -45,801 |
Net Income | 23,492 | 69,701 | 64,646 | 114,577 |
Accumulated Other Comprehensive Income Component Recognized [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total reclassification for the period | 286 | -1,700 | -721 | -2,561 |
Accumulated Other Comprehensive Income Component Recognized [Member] | Realized (Losses) Gains on Derivative Financial Instruments [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Revenues | -240 | -621 | -77 | -1,152 |
Cost of operations | 1,153 | -1,117 | 127 | -2,006 |
Other - net | ' | 101 | 10 | 116 |
Income before Provision for Income Taxes | 913 | -1,637 | 60 | -3,042 |
Provision for Income Taxes | -234 | 395 | -13 | 753 |
Net Income | 679 | -1,242 | 47 | -2,289 |
Accumulated Other Comprehensive Income Component Recognized [Member] | Amortization of Prior Service Cost on Benefit Obligations [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of operations | -509 | -660 | -1,018 | -1,411 |
Selling, general and administrative expenses | -86 | -50 | -171 | -100 |
Income before Provision for Income Taxes | -595 | -710 | -1,189 | -1,511 |
Provision for Income Taxes | 198 | 245 | 395 | 518 |
Net Income | -397 | -465 | -794 | -993 |
Accumulated Other Comprehensive Income Component Recognized [Member] | Realized Gain on Investments [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other - net | 7 | 10 | 41 | 724 |
Provision for Income Taxes | -3 | -3 | -15 | -3 |
Net Income | $4 | $7 | $26 | $721 |
Basis_of_Presentation_and_Sign6
Basis of Presentation and Significant Accounting Policies - Inventories (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Net [Abstract] | ' | ' |
Raw materials and supplies | $82,485 | $85,455 |
Work in progress | 9,986 | 10,872 |
Finished goods | 20,500 | 16,731 |
Total inventories | $112,971 | $113,058 |
Basis_of_Presentation_and_Sign7
Basis of Presentation and Significant Accounting Policies - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Power Generation [Member] | Nuclear Operations [Member] | Nuclear Operations [Member] | Technical Services [Member] | Technical Services [Member] | Nuclear Energy [Member] | Nuclear Energy [Member] | ||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $281,708 | $104,630 | $118,103 | $118,103 | $45,000 | $45,000 | $13,975 | $13,975 |
Acquisition of MEGTEC (Note 2) | 115,314 | 115,314 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments and other | -193 | -193 | ' | ' | ' | ' | ' | ' |
Balance at June 30, 2014 | $396,829 | $219,751 | $118,103 | $118,103 | $45,000 | $45,000 | $13,975 | $13,975 |
Basis_of_Presentation_and_Sign8
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Carrying Amount of Accrued Warranty Expense (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Standard Product Warranty Disclosure [Abstract] | ' | ' |
Balance at beginning of period | $56,436 | $83,682 |
Additions | 5,463 | 11,423 |
Acquisition of MEGTEC | 4,693 | ' |
Expirations and other changes | -3,204 | -8,038 |
Payments | -4,568 | -11,659 |
Translation and other | 5 | -921 |
Balance at end of period | $58,825 | $74,487 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 11, 2014 | Jun. 20, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 21-May-14 | |
Nuclear Projects [Member] | Nuclear Projects [Member] | Nuclear Projects [Member] | Nuclear Projects [Member] | Acquisition-related Costs [Member] | Acquisition-related Costs [Member] | Acquisition-related Costs [Member] | Acquisition-related Costs [Member] | Subsequent Event [Member] | MEGTEC Holdings Inc [Member] | MEGTEC Holdings Inc [Member] | MEGTEC Holdings Inc [Member] | Ebensberg Power Company [Member] | |||||
Nuclear Projects [Member] | |||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire business | ' | ' | $127,098,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $142,200,000 | ' | ' | ' |
Revenues | 686,006,000 | 886,136,000 | 1,348,023,000 | 1,691,559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | 3,600,000 | ' |
Net Income | 26,437,000 | 72,870,000 | 71,481,000 | 120,044,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' |
Amortization expense related to identifiable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 2,800,000 | 1,300,000 | 5,600,000 | ' | ' | ' | ' | ' |
Elimination of historical interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 400,000 | 900,000 | 900,000 | ' | ' | ' | ' | ' |
Interest expense associated with incremental borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 600,000 | 1,200,000 | 1,300,000 | ' | ' | ' | ' | ' |
Elimination of acquisition related costs | ' | ' | ' | ' | ' | ' | ' | ' | 13,500,000 | ' | 13,500,000 | ' | ' | ' | ' | ' | ' |
Payment to acquire business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 |
Business acquisition, cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,232,000 | 14,232,000 | 16,400,000 |
Business acquisition, plant and equipment acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,090,000 | 5,090,000 | 16,100,000 |
Income (loss) before provision for income taxes | ' | ' | ' | ' | 0 | -500,000 | -100,000 | -1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | 37,500,000 | ' | 37,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contracts in progress | ' | ' | ' | ' | 8,200,000 | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lien filed against property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37,400,000 | ' | ' | ' | ' |
Acquisitions_and_Dispositions_2
Acquisitions and Dispositions - Summary of Purchase Price Allocation Including Finalization of Asset Valuations (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Goodwill | $396,829 | $281,708 |
MEGTEC Holdings Inc [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Unrestricted cash | 14,232 | ' |
Accounts receivable | 23,459 | ' |
Inventories | 5,528 | ' |
Other current assets | 9,069 | ' |
Property, plant and equipment | 5,090 | ' |
Goodwill | 115,314 | ' |
Intangible assets | 42,000 | ' |
Total assets acquired | 214,692 | ' |
Accounts payable | 13,402 | ' |
Advance billings on contracts | 9,144 | ' |
Other current liabilities | 17,477 | ' |
Pension liability | 5,041 | ' |
Deferred income taxes | 12,137 | ' |
Other liabilities | 1,085 | ' |
Total liabilities assumed | 58,286 | ' |
Net assets acquired | 156,406 | ' |
Net assets acquired | 156,406 | ' |
Unrestricted cash acquired | 14,232 | ' |
Net assets acquired, net of unrestricted cash acquired | 142,174 | ' |
Amount of tax deductible goodwill | ' | ' |
Acquisitions_and_Dispositions_3
Acquisitions and Dispositions - Summary of Intangible Assets Acquired (Detail) (MEGTEC Holdings Inc [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, Amount | $42,000 |
Customer relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, Amount | 20,000 |
Intangible assets, Amortization Period | '7 years |
Backlog [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, Amount | 9,500 |
Intangible assets, Amortization Period | '1 year |
Trade names/trademarks [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, Amount | 6,000 |
Intangible assets, Amortization Period | '15 years |
Developed technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, Amount | $6,500 |
Intangible assets, Amortization Period | '10 years |
Acquisitions_and_Dispositions_4
Acquisitions and Dispositions - Summary of Unaudited Pro Forma Financial Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition Pro Forma Information [Abstract] | ' | ' | ' | ' |
Revenues | $772,972 | $933,793 | $1,428,355 | $1,768,672 |
Net Income Attributable to The Babcock & Wilcox Company | $28,780 | $74,139 | $74,530 | $119,313 |
Basic Earnings per Common Share | $0.26 | $0.66 | $0.68 | $1.06 |
Diluted Earnings per Common Share | $0.26 | $0.66 | $0.67 | $1.05 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 24, 2014 | Jun. 30, 2014 | Jun. 24, 2014 | Jun. 30, 2014 | |
Minimum [Member] | Maximum [Member] | Financial Letter of Credit [Member] | Financial Letter of Credit [Member] | Financial Letter of Credit [Member] | Performance Letter Of Credit [Member] | Performance Letter Of Credit [Member] | Performance Letter Of Credit [Member] | Eurocurrency Rate Loans [Member] | Base Rate Loans [Member] | Base Rate Loans [Member] | Base Rate Loans [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Term Loan Credit Facility [Member] | Term Loan Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Federal Funds Rate [Member] | One Month Eurocurrency Rate [Member] | |||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000,000 | ' | $300,000,000 | ' |
Credit agreement, draw down amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' |
Aggregate amount to be borrowed to meet letter of credit requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 863,200,000 | ' | ' | 150,000,000 | ' |
Credit facility maturity date | 24-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental term loan, maximum capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' |
Quarterly amortization payments on term loan as a percentage of aggregate principal amount | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate of loan outstanding under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate of loan outstanding under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate of loan outstanding under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.38% | 0.38% | 0.50% | 1.00% | ' | ' | ' | ' | ' |
Commitment fee on unused portions of credit agreement, variable range | 0.23% | 0.20% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit fee on unused portions of credit agreement, variable range | ' | ' | ' | 1.38% | 1.25% | 2.00% | 0.80% | 0.73% | 1.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, aggregate borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | 113,800,000 |
Aggregate amount borrowed by issuing letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $173,000,000 | ' | ' | ' | ' |
Special_Charges_for_Restructur2
Special Charges for Restructuring Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Special charges for restructuring activities | $17,470,000 | $12,232,000 | $20,128,000 | $20,655,000 |
Employee termination benefits | ' | ' | 16,300,000 | ' |
Consulting and administrative costs | ' | ' | 200,000 | ' |
Global Competitiveness Initiative [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination benefits | ' | ' | 200,000 | 15,100,000 |
Facility consolidation | ' | ' | 2,200,000 | 5,600,000 |
Business Optimization Project [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination benefits | ' | ' | 8,500,000 | ' |
Facility consolidation | ' | ' | 200,000 | ' |
Special charges for restructuring activities | ' | ' | 9,400,000 | ' |
Consulting and administrative costs | ' | ' | 700,000 | ' |
mPower Program Restructuring [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination benefits | ' | ' | 5,700,000 | ' |
Facility consolidation | ' | ' | 200,000 | ' |
Special charges for restructuring activities | ' | ' | 7,900,000 | ' |
Consulting and administrative costs | ' | ' | 2,000,000 | ' |
Technical Services Segment Restructuring [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination benefits | ' | ' | $400,000 | ' |
Special_Charges_for_Restructur3
Special Charges for Restructuring Activities - Changes in Restructuring Liabilities (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring And Related Activities [Abstract] | ' | ' |
Balance at beginning of period | $10,054 | ' |
Special charges for restructuring activities | 17,743 | 20,655 |
Payments | -11,327 | -10,705 |
Translation and other | -7 | ' |
Balance at end of period | $16,463 | $9,950 |
Special_Charges_for_Restructur4
Special Charges for Restructuring Activities - Changes in Restructuring Liabilities (Parenthetical) (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Restructuring And Related Activities [Abstract] | ' |
Non-cash charges | $2.40 |
Pension_Plans_and_Postretireme2
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Benefits Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $9,651 | $11,542 | $19,297 | $23,120 |
Interest cost | 30,361 | 27,838 | 60,688 | 55,626 |
Expected return on plan assets | -37,389 | -36,611 | -74,766 | -73,281 |
Amortization of prior service cost (credit) | 635 | 792 | 1,269 | 1,584 |
Net periodic benefit cost | 3,258 | 3,561 | 6,488 | 7,049 |
Postretirement Benefit Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 216 | 248 | 432 | 496 |
Interest cost | 977 | 993 | 1,946 | 1,898 |
Expected return on plan assets | -575 | -537 | -1,150 | -1,075 |
Amortization of prior service cost (credit) | -40 | -82 | -80 | -73 |
Net periodic benefit cost | $578 | $622 | $1,148 | $1,246 |
Pension_Plans_and_Postretireme3
Pension Plans and Postretirement Benefits - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' | ' | ' |
Contributions to pension and postretirement benefit plans | $18.40 | $18 | $27 | $43.20 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Jan. 16, 2014 | Jun. 30, 2014 | Feb. 14, 2012 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2009 | Jun. 30, 2014 | Dec. 31, 2008 | Dec. 31, 1998 | Dec. 31, 2009 | Dec. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2014 |
LetterOfCredit | New Hampshire [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | Apollo and Parks Township [Member] | |||
Claim | Cases | Personal Injury and Wrongful Death Claims [Member] | Property Damage Claims [Member] | 2008 Settlement [Member] | 2009 Settlement [Member] | ||||||||
Claim | Claim | Claim | |||||||||||
Facility | |||||||||||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claimants | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' |
Number of facilities | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of cases consolidated for most non-dispositive pre-trial matters | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' |
Number of filed motions to dismiss, with prejudice | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of claims agreed to dismiss, with prejudice | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of additional claims | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate settlement amount for claims | ' | ' | ' | ' | ' | $52.50 | ' | $27.50 | $8 | ' | ' | ' | ' |
Number of claims settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 125 | ' | ' |
Percentage of ARCO's recovery amounts assigned to company | ' | ' | ' | ' | ' | ' | 58.33% | ' | ' | ' | ' | ' | ' |
Interest accrued on settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.8 | 6.2 |
Interest rate on settlement | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Appeal bond required as a percentage of total judgment | ' | ' | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount capped under the contract | ' | 18.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Five partial draws | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total partial draws against letter of credit from Bwcc | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total draws of Letter of Credit in LDs | ' | 11.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partial draws available against letter of credit from Bwcc | ' | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate liquidated damages cap | ' | 37.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total provisions in financial statements | ' | 12.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages in excess | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery of damages incurred | ' | ' | ' | $50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Offsetting [Abstract] | ' |
Net gains deferred on derivative financial instruments in accumulated other comprehensive loss | $0.40 |
Notional amount of foreign currency forward contracts | $71.60 |
Maturity date of foreign currency forward contracts | 'December 2016 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) (FX Forward Contracts [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Designated As Hedges [Member] | Accounts Receivable-Other [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $73 | $1,139 |
Derivatives Designated As Hedges [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 57 | 94 |
Derivatives Designated As Hedges [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 203 | 603 |
Derivatives Designated As Hedges [Member] | Accounts Payable [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 398 | 581 |
Derivatives Not Designated as Hedges [Member] | Accounts Receivable-Other [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 614 | 464 |
Derivatives Not Designated as Hedges [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 9 | 50 |
Derivatives Not Designated as Hedges [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 5 | ' |
Derivatives Not Designated as Hedges [Member] | Accounts Payable [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | $26 | $10 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of gain (loss) recognized in other comprehensive income | $1,122 | ($2,212) | ($192) | ($5,210) |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Revenues [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | -240 | -621 | -77 | -1,152 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Cost of Operations [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | 1,153 | -1,117 | 127 | -2,006 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Other-net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | ' | 101 | 10 | 116 |
Gain (loss) recognized in income: portion excluded from effectiveness testing | 211 | 161 | 278 | 353 |
Derivatives Not Designated as Hedges [Member] | Forward Contracts [Member] | Other-net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in income | ($280) | $93 | $155 | ($583) |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Available-for-Sale Securities Measured at Fair Value (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | $8,752 | $15,174 |
Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 4,146 | 4,001 |
U.S. Government and Agency Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | ' | 3,000 |
Asset-Backed Securities and Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 357 | 425 |
Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 4,249 | 7,748 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | ' | 3,000 |
Level 1 [Member] | U.S. Government and Agency Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | ' | 3,000 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 8,752 | 12,174 |
Level 2 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 4,146 | 4,001 |
Level 2 [Member] | Asset-Backed Securities and Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | 357 | 425 |
Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities measured at fair value | $4,249 | $7,748 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (FX Forward Contracts [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
FX Forward Contracts [Member] | ' | ' |
Fair Values Of Financial Instruments [Line Items] | ' | ' |
Fair value of foreign currency forward contracts | $0.10 | $0.60 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $5.90 | $5.20 | $7.80 | $9.70 |
Stock-based compensation, tax benefits | $2.30 | $2 | $3 | $3.70 |
Segment_Reporting_Schedule_of_
Segment Reporting - Schedule of Operating Results by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | $686,006 | $886,136 | $1,348,023 | $1,691,559 |
Special Charges for Restructuring Activities | -17,470 | -12,232 | -20,128 | -20,655 |
Operating income | 35,118 | 98,706 | 88,758 | 158,919 |
Interest income | 190 | 323 | 609 | 655 |
Losses (gains) on asset disposals and impairments | 1,457 | 156 | 1,457 | 87 |
Interest expense | -921 | -789 | -1,820 | -1,607 |
Equity in Income of Investees | 13,183 | 18,775 | 28,452 | 33,562 |
Other - net | 580 | 1,005 | 1,902 | 2,411 |
Total Other Income (Expense) | -151 | 539 | 691 | 1,459 |
Income before Provision for Income Taxes | 34,967 | 99,245 | 89,449 | 160,378 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Special Charges for Restructuring Activities | -17,470 | -12,232 | -20,128 | -20,655 |
Operating income | 35,118 | 98,706 | 88,758 | 158,919 |
Interest income | 190 | 323 | 609 | 655 |
Interest expense | -921 | -789 | -1,820 | -1,607 |
Other - net | 580 | 1,005 | 1,902 | 2,411 |
Total Other Income (Expense) | -151 | 539 | 691 | 1,459 |
Operating Segments [Member] | Power Generation [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 327,379 | 471,191 | 639,457 | 932,654 |
Operating income | 15,215 | 30,535 | 25,757 | 63,865 |
Losses (gains) on asset disposals and impairments | 1,457 | -7 | 1,457 | -85 |
Equity in Income of Investees | 434 | 5,202 | 2,800 | 7,309 |
Operating Segments [Member] | Nuclear Operations [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 293,438 | 330,986 | 579,652 | 592,125 |
Operating income | 58,682 | 65,737 | 118,210 | 120,461 |
Losses (gains) on asset disposals and impairments | ' | ' | ' | ' |
Equity in Income of Investees | ' | ' | ' | ' |
Operating Segments [Member] | Technical Services [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 26,015 | 27,432 | 50,470 | 52,661 |
Operating income | 15,078 | 15,235 | 29,867 | 29,414 |
Losses (gains) on asset disposals and impairments | ' | 163 | ' | 163 |
Equity in Income of Investees | 12,749 | 13,699 | 25,650 | 26,532 |
Operating Segments [Member] | Nuclear Energy [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 44,927 | 63,185 | 92,707 | 126,701 |
Operating income | 1,548 | 7,922 | 2,071 | 10,180 |
Losses (gains) on asset disposals and impairments | ' | ' | ' | 9 |
Equity in Income of Investees | ' | -126 | 2 | -279 |
Operating Segments [Member] | mPower [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | ' | 333 | 278 | 637 |
Operating income | -31,933 | -1,104 | -58,642 | -28,051 |
Losses (gains) on asset disposals and impairments | ' | ' | ' | ' |
Equity in Income of Investees | ' | ' | ' | ' |
Operating Segments [Member] | Segments [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Operating income | 58,590 | 118,325 | 117,263 | 195,869 |
Adjustments and Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | -5,753 | -6,991 | -14,541 | -13,219 |
Adjustments and Eliminations [Member] | Power Generation [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | -1,239 | -1,538 | -4,220 | -2,300 |
Adjustments and Eliminations [Member] | Nuclear Operations [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | -1,880 | -1,539 | -4,967 | -2,816 |
Adjustments and Eliminations [Member] | Technical Services [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | ' | -1,014 | -52 | -1,549 |
Adjustments and Eliminations [Member] | Nuclear Energy [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | -2,634 | -2,900 | -5,302 | -6,554 |
Adjustments and Eliminations [Member] | mPower [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Unallocated Corporate [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Operating income | ($6,002) | ($7,387) | ($8,377) | ($16,295) |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share Basic And Diluted [Abstract] | ' | ' | ' | ' |
Net income attributable to The Babcock & Wilcox Company | $26,437 | $72,870 | $71,481 | $120,044 |
Weighted average common shares (basic) | 109,766,237 | 111,898,819 | 110,102,826 | 112,998,066 |
Basic earnings per common share | $0.24 | $0.65 | $0.65 | $1.06 |
Stock options, restricted stock and performance shares | 350,393 | 763,744 | 398,511 | 701,793 |
Adjusted weighted average common shares | 110,116,630 | 112,662,563 | 110,501,337 | 113,699,859 |
Diluted earnings per common share | $0.24 | $0.65 | $0.65 | $1.06 |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share Basic And Diluted [Abstract] | ' | ' |
Antidilutive shares related to stock options excluded from the diluted share | 1,373,087 | 1,648,719 |