Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BWXT | |
Entity Registrant Name | BWX Technologies, Inc. | |
Entity Central Index Key | 1,486,957 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 107,489,940 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 46,910 | $ 123,624 |
Restricted cash and cash equivalents | 15,459 | 50,835 |
Investments | 4,505 | 4,837 |
Accounts receivable - trade, net | 146,847 | 165,144 |
Accounts receivable - other | 11,938 | 6,094 |
Contracts in progress | 314,982 | 290,622 |
Inventories | 11,384 | 9,926 |
Deferred income taxes | 33,560 | 38,320 |
Other current assets | 42,141 | 32,127 |
Assets of discontinued operations - current | 752,273 | |
Total Current Assets | 627,726 | 1,473,802 |
Property, Plant and Equipment | 827,620 | 880,848 |
Less accumulated depreciation | 562,198 | 573,048 |
Net Property, Plant and Equipment | 265,422 | 307,800 |
Investments | 7,307 | 7,606 |
Goodwill | 169,000 | 169,914 |
Deferred Income Taxes | 126,833 | 132,778 |
Investments in Unconsolidated Affiliates | 31,852 | 31,256 |
Intangible Assets | 59,343 | 60,227 |
Other Assets | 49,742 | 50,133 |
Assets of Discontinued Operations - Non-Current | 623,420 | |
TOTAL | 1,337,225 | 2,856,936 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Notes payable and current maturities of long-term debt | 15,000 | 15,000 |
Accounts payable | 77,438 | 88,985 |
Accrued employee benefits | 53,158 | 85,433 |
Accrued liabilities - other | 59,496 | 60,010 |
Advance billings on contracts | 123,261 | 107,437 |
Accrued warranty expense | 16,097 | 15,889 |
Liabilities of discontinued operations - current | 446,881 | |
Total Current Liabilities | 344,450 | 819,635 |
Long-Term Debt | 315,000 | 285,000 |
Accumulated Postretirement Benefit Obligation | 27,699 | 29,956 |
Environmental Liabilities | 58,293 | 56,259 |
Pension Liability | 305,810 | 308,927 |
Other Liabilities | $ 29,440 | 43,126 |
Liabilities of Discontinued Operations - Non-Current | $ 299,832 | |
Commitments and Contingencies (Note 6) | ||
Stockholders' Equity: | ||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 122,411,659 and 121,604,332 shares at June 30, 2015 and December 31, 2014, respectively | $ 1,224 | $ 1,216 |
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued | ||
Capital in excess of par value | $ 13,229 | $ 775,393 |
Retained earnings | 648,923 | 642,489 |
Treasury stock at cost 14,971,299 and 14,915,776 shares at June 30, 2015 and December 31, 2014, respectively | (425,702) | (423,990) |
Accumulated other comprehensive income | 5,077 | 3,596 |
Stockholders' Equity - BWX Technologies, Inc. | 242,751 | 998,704 |
Noncontrolling interest | 13,782 | 15,497 |
Total Stockholders' Equity | 256,533 | 1,014,201 |
TOTAL | $ 1,337,225 | $ 2,856,936 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
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 | 122,411,659 | 121,604,332 |
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 | 14,971,299 | 14,915,776 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 357,135 | $ 362,488 | $ 692,622 | $ 717,904 |
Costs and Expenses: | ||||
Cost of operations | 249,489 | 257,819 | 477,124 | 510,373 |
Research and development costs | 3,653 | 26,636 | 7,481 | 46,621 |
Selling, general and administrative expenses | 54,760 | 53,368 | 105,186 | 103,339 |
Special charges for restructuring activities | 16,460 | 9,957 | 16,608 | 11,137 |
Costs to spin-off the Power Generation business | 24,470 | 25,987 | ||
Total Costs and Expenses | 348,832 | 347,780 | 632,386 | 671,470 |
Equity in Income of Investees | 3,282 | 12,749 | 5,134 | 25,652 |
Operating Income | 11,585 | 27,457 | 65,370 | 72,086 |
Other Income (Expense): | ||||
Interest income | 170 | 27 | 234 | 231 |
Interest expense | (3,300) | (636) | (5,561) | (1,805) |
Other - net | 120 | 258 | (1,284) | 363 |
Total Other Income (Expense) | (3,010) | (351) | (6,611) | (1,211) |
Income from continuing operations before provision for income taxes and noncontrolling interest | 8,575 | 27,106 | 58,759 | 70,875 |
Provision for Income Taxes | 8,982 | 7,917 | 25,200 | 16,542 |
Income (loss) from continuing operations before noncontrolling interest | (407) | 19,189 | 33,559 | 54,333 |
Income (loss) from discontinued operations, net of tax | (16,912) | 4,303 | (5,837) | 10,313 |
Net Income | (17,319) | 23,492 | 27,722 | 64,646 |
Net Loss Attributable to Noncontrolling Interest | 172 | 2,945 | 388 | 6,835 |
Net Income (Loss) Attributable to BWX Technologies, Inc. | (17,147) | 26,437 | 28,110 | 71,481 |
Amounts Attributable to BWX Technologies, Inc.'s Common Shareholders: | ||||
Income (loss) from continuing operations, net of tax | (181) | 22,211 | 34,053 | 61,361 |
Income (loss) from discontinued operations, net of tax | (16,966) | 4,226 | (5,943) | 10,120 |
Net Income (Loss) Attributable to BWX Technologies, Inc. | $ (17,147) | $ 26,437 | $ 28,110 | $ 71,481 |
Basic: | ||||
Income (loss) from continuing operations | $ 0 | $ 0.20 | $ 0.32 | $ 0.56 |
Income (loss) from discontinued operations | (0.16) | 0.04 | (0.06) | 0.09 |
Net Income (Loss) Attributable to BWX Technologies, Inc. | (0.16) | 0.24 | 0.26 | 0.65 |
Diluted: | ||||
Income (loss) from continuing operations | 0 | 0.20 | 0.32 | 0.56 |
Income (loss) from discontinued operations | (0.16) | 0.04 | (0.06) | 0.09 |
Net Income (Loss) Attributable to BWX Technologies, Inc. | $ (0.16) | $ 0.24 | $ 0.26 | $ 0.65 |
Shares used in the computation of earnings per share (Note 11): | ||||
Basic | 107,120,149 | 109,766,237 | 106,948,033 | 110,102,826 |
Diluted | 107,120,149 | 110,116,630 | 107,359,947 | 110,501,337 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (17,319) | $ 23,492 | $ 27,722 | $ 64,646 |
Other Comprehensive Income (Loss): | ||||
Currency translation adjustments | 2,151 | (531) | (8,779) | (7,142) |
Derivative financial instruments: | ||||
Unrealized gains (losses) arising during the period, net of tax (provision) benefit of $604, $(289), $778 and $50, respectively | (2,003) | 833 | (2,218) | (142) |
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $113, $234, $(570) and $13, respectively | (339) | (679) | 1,577 | (47) |
Amortization of benefit plan costs, net of tax benefit of $(179), $(198), $(358) and $(395), respectively | 329 | 397 | 660 | 794 |
Investments: | ||||
Unrealized gains (losses) arising during the period, net of tax (provision) benefit of $239, $(32), $14 and $(57), respectively | (441) | 57 | (26) | 103 |
Reclassification adjustment for losses (gains) included in net income, net of tax (benefit) provision of $69, $3, $64 and $15, respectively | (124) | (4) | (115) | (26) |
Other Comprehensive Income (Loss) | (427) | 73 | (8,901) | (6,460) |
Total Comprehensive Income (Loss) | (17,746) | 23,565 | 18,821 | 58,186 |
Comprehensive Loss Attributable to Noncontrolling Interest | 165 | 2,942 | 363 | 6,839 |
Comprehensive Income (Loss) Attributable to BWX Technologies, Inc. | $ (17,581) | $ 26,507 | $ 19,184 | $ 65,025 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (provision) benefit of unrealized gains (losses) on derivative financial instruments | $ 604 | $ (289) | $ 778 | $ 50 |
Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | 113 | 234 | (570) | 13 |
Tax benefit of amortization of benefit plan costs | (179) | (198) | (358) | (395) |
Tax (provision) benefit of unrealized gains | 239 | (32) | 14 | (57) |
Tax provision on reclassification adjustment for gain on investment | $ 69 | $ 3 | $ 64 | $ 15 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | 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] |
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 | |||||||
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 | |||||||
Balance at Dec. 31, 2014 | $ 1,014,201 | $ 1,216 | 775,393 | 642,489 | 3,596 | (423,990) | 998,704 | 15,497 |
Balance, Shares at Dec. 31, 2014 | 121,604,332 | 121,604,332 | ||||||
Net Income | $ 27,722 | 28,110 | 28,110 | (388) | ||||
Dividends declared | (21,676) | (21,676) | (21,676) | |||||
Defined benefit obligations | 660 | 660 | 660 | |||||
Available-for-sale investments | (141) | (141) | (141) | |||||
Currency translation adjustments | (8,779) | (8,804) | (8,804) | 25 | ||||
Derivative financial instruments | (641) | (641) | (641) | |||||
Exercise of stock options | 3,207 | $ 1 | 3,206 | 3,207 | ||||
Exercise of stock options, Shares | 127,951 | |||||||
Contributions to thrift plan | 4,531 | $ 1 | 4,530 | 4,531 | ||||
Contributions to thrift plan, shares | 149,753 | |||||||
Shares placed in treasury | (1,712) | (1,712) | (1,712) | |||||
Stock-based compensation charges | 22,448 | $ 6 | 22,442 | 22,448 | ||||
Stock-based compensation charges, Shares | 529,623 | |||||||
Distributions to noncontrolling interests | (232) | (232) | ||||||
Spin-off of Power Generation Business | (783,055) | (792,342) | 10,407 | (781,935) | (1,120) | |||
Balance at Jun. 30, 2015 | $ 256,533 | $ 1,224 | $ 13,229 | $ 648,923 | $ 5,077 | $ (425,702) | $ 242,751 | $ 13,782 |
Balance, Shares at Jun. 30, 2015 | 122,411,659 | 122,411,659 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share | $ 0.20 | $ 0.20 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 27,722 | $ 64,646 |
Non-cash items included in net income from continuing operations: | ||
Depreciation and amortization | 51,715 | 35,053 |
Income of investees, net of dividends | 1,306 | (8,517) |
Losses on asset disposals and impairments, net | 26,441 | 1,457 |
In-kind research and development costs | 5,830 | |
Recognition of losses for pension and postretirement plans | 3,179 | 1,189 |
Stock-based compensation and thrift plan expense | 22,444 | 7,411 |
Excess tax benefits from stock-based compensation | 22 | (552) |
Changes in assets and liabilities: | ||
Accounts receivable | 46,890 | (6,635) |
Accounts payable | (17,710) | (129,471) |
Contracts in progress and advance billings on contracts | (4,110) | (52,142) |
Inventories | (859) | 5,666 |
Income taxes | (35,953) | (7,890) |
Accrued and other current liabilities | 8,664 | 2,674 |
Pension liability, accrued postretirement benefit obligation and employee benefits | (45,692) | (35,671) |
Other, net | (786) | 9,250 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 83,273 | (107,702) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Decrease in restricted cash and cash equivalents | 3,500 | 6,285 |
Purchases of property, plant and equipment | (40,601) | (37,822) |
Acquisition of business, net of cash acquired | (127,098) | |
Purchase of intangible assets | (722) | |
Purchases of securities | (8,197) | (21,225) |
Sales and maturities of securities | 2,016 | 27,802 |
Proceeds from asset disposals | 60 | 10 |
Investment in equity method investees | (4,900) | |
NET CASH USED IN INVESTING ACTIVITIES | (43,222) | (157,670) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of short-term borrowing and long-term debt | (1,815) | |
Increase in short-term borrowing | 733 | |
Borrowings under the Credit Agreement | 33,750 | 562,300 |
Repayments under Credit Agreement | (3,750) | (298,500) |
Payment of debt issuance costs | (5,023) | (4,929) |
Repurchase of common shares | (99,742) | |
Dividends paid to common shareholders | (21,549) | (22,103) |
Exercise of stock options | 3,229 | 3,463 |
Excess tax benefits from stock-based compensation | (22) | 552 |
Cash divested in connection with spin-off of Power Generation business | (307,562) | |
Other | (232) | (409) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (301,159) | 139,550 |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (4,951) | (4,376) |
TOTAL DECREASE IN CASH AND CASH EQUIVALENTS | (266,059) | (130,198) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 123,624 | 346,116 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 46,910 | 215,918 |
Cash paid during the period for: | ||
Interest | 4,322 | 1,296 |
Income taxes (net of refunds) | 58,397 | 28,099 |
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||
Accrued capital expenditures included in accounts payable | $ 3,182 | $ 3,938 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES We have presented the condensed consolidated financial statements of BWX Technologies, Inc. (“BWXT”) (formerly known as The Babcock & Wilcox Company) in U.S. Dollars in accordance with the interim reporting requirements of Form 10-Q, Rule 10-01 of Regulation S-X and accounting principles generally accepted in the United States (“GAAP”). Certain financial information and disclosures normally included in our financial statements prepared annually in accordance with 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, 2014 (our “2014 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 reclassified amounts previously reported to conform to the presentation as of and for the three and six month periods ended June 30, 2015. 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 BWXT and its consolidated subsidiaries. Spin-off On June 30, 2015, we completed the spin-off of our Power Generation business (the “spin-off”) into an independent, publicly traded company named Babcock & Wilcox Enterprises, Inc. (“BWE”). The separation was effected through a pro rata distribution of 100% of BWE’s common stock to BWXT’s stockholders. The distribution of BWE common stock consisted of one share of BWE common stock for every two shares of BWXT common stock to holders of BWXT common stock on the record date of June 18, 2015. Cash was paid in lieu of any fractional shares of BWE common stock. Following the spin-off, BWXT did not retain any ownership interest in BWE. Prior to June 30, 2015, we completed an internal restructuring that separated the subsidiaries involved in our former Power Generation business and established BWE as the direct or indirect parent company of those subsidiaries. Concurrent with the spin-off, The Babcock & Wilcox Company was renamed BWX Technologies, Inc. The results of operations for the three and six month periods ended June 30, 2015 and 2014, as well as the accompanying notes, reflect the historical operations of our former Power Generation business as discontinued operations. See Note 2 for further information regarding the spin-off of BWE. The discussions in this quarterly report are presented on the basis of continuing operations, unless otherwise stated. Reporting Segments As a result of the spin-off of our former Power Generation business that is now reported as discontinued operations, we now operate in three reportable segments: Nuclear Operations, Technical Services and Nuclear Energy. Prior to 2015, our mPower business was a separate reportable segment. In accordance with FASB Topic Segment Reporting • Our Nuclear Operations segment’s primary activity is the manufacture of 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, Tennessee, 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 primarily to the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management and the Department of Defense. 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, components and services to nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide. This segment is the only commercial 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. This segment also offers engineering and licensing services for new nuclear plant designs. See Note 10 for further information regarding our segments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and the related footnotes included in our 2014 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 towards 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 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. Comprehensive Income The components of accumulated other comprehensive income (loss) included in stockholders’ equity are as follows: June 30, 2015 December 31, 2014 (In thousands) Currency translation adjustments $ 11,524 $ 11,547 Net unrealized gain on available-for-sale investments 24 155 Net unrealized gain (loss) on derivative financial instruments (437 ) (123 ) Unrecognized prior service cost on benefit obligations (6,034 ) (7,983 ) Accumulated other comprehensive income (loss) $ 5,077 $ 3,596 The amounts reclassified out of accumulated other comprehensive income (loss) by component and the affected condensed consolidated statements of income line items are as follows: Accumulated Other Comprehensive Three Months Ended June 30, Six Months Ended June 30, Income (Loss) 2015 2014 2015 2014 Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ (210 ) $ (253 ) $ 484 $ (90 ) Revenues 703 1,153 (2,718 ) 127 Cost of operations 493 900 (2,234 ) 37 Total before tax (127 ) (232 ) 575 (9 ) Provision for Income Taxes $ 366 $ 668 $ (1,659 ) $ 28 Net Income Amortization of prior service cost on benefit obligations $ (400 ) $ (384 ) $ (801 ) $ (768 ) Cost of operations (9 ) (86 ) (18 ) (171 ) Selling, general and administrative expenses (409 ) (470 ) (819 ) (939 ) Total before tax 140 148 278 295 Provision for Income Taxes $ (269 ) $ (322 ) $ (541 ) $ (644 ) Net Income Realized gain (loss) on investments $ 191 $ 7 $ 177 $ 41 Other-net (68 ) (3 ) (63 ) (15 ) Provision for Income Taxes $ 123 $ 4 $ 114 $ 26 Net Income Total reclassification for the period $ 220 $ 350 $ (2,086 ) $ (590 ) Inventories At June 30, 2015 and December 31, 2014, we had inventories totaling $11.4 million and $9.9 million, respectively, consisting entirely of raw materials and supplies. Restricted Cash and Cash Equivalents At June 30, 2015, we had restricted cash and cash equivalents totaling $18.0 million, $2.5 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $15.5 million of which was held to meet reinsurance reserve requirements of our captive insurer. 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, 2015 2014 (In thousands) Balance at beginning of period $ 15,889 $ 17,469 Additions 563 688 Expirations and other changes — (970 ) Payments (51 ) (20 ) Translation and other (304 ) 6 Balance at end of period $ 16,097 $ 17,173 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 the costs of research and development unrelated to specific contracts as incurred. Substantially all of these costs are related to our mPower program for the development of our mPower TM In 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 related to services contributed by our minority partner to Generation mPower LLC, our majority-owned subsidiary formed in 2011 to oversee the mPower program to develop the small modular nuclear power plant based on mPower™ technology. In the six months ended June 30, 2014, we received funding of $19.8 million under our Cooperative Agreement with the DOE under its Small Modular Reactor Licensing Technical Support Program (the “Cooperative Agreement”). On April 14, 2014, we announced our plans to restructure the mPower program to reduce spending and focus on technology development. We slowed the pace of development and intend to invest no more than $15 million on an annual basis while we focus on technology development. At this time, the latest extension to the Cooperative Agreement has expired and the DOE funding has been suspended. Provision for Income Taxes We are subject to federal income tax in the U.S. and Canada as well as income tax within multiple U.S. state 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, 2015 was approximately 104.7% as compared to 29.2% for the three months ended June 30, 2014 largely due to the impact of the spin-off of our Power Generation business. Our effective tax rate for the six months ended June 30, 2015 was approximately 42.9% as compared to 23.3% for the six months ended June 30, 2014. Specifically, the effective tax rates for the three and six months ended June 30, 2015 were higher than our statutory rate primarily due to the change in our tax footprint associated with the spin-off, resulting in the revaluations of deferred tax assets and liabilities as well as the need to recognize tax provision on our global earnings at our U.S. federal rate due to the likely repatriation of future foreign earnings. These matters resulted in $3.8 million of tax provision for the three and six months ended June 30, 2015. The effective tax rates for the three and six months ended June 30, 2014 were lower than our statutory rate due to the impact of an increase in benefits from amended federal manufacturing deductions, and the receipt of a favorable ruling from the Internal Revenue Service that retroactively reduced the U.S. tax owed on income from certain of our foreign joint ventures. As of June 30, 2015, we have gross unrecognized tax benefits of $8.3 million. Of the $8.3 million gross unrecognized tax benefits, $6.1 million would reduce our effective tax rate if recognized. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 2 – DISCONTINUED OPERATIONS Spin-off of BWE On June 30, 2015, we completed the spin-off of BWE to our stockholders through a stock distribution. BWE’s assets and business primarily consist of those that we previously reported as our Power Generation segment. In connection with the spin-off, our stockholders received 100% of the outstanding common stock of BWE. The distribution of BWE common stock occurred by way of a pro rata stock distribution to our stockholders. Our stockholders received one share of BWE common stock for every two shares of our common stock held by such stockholder on June 18, 2015, and cash in lieu of any fractional shares. Prior to the completion of the spin-off, BWXT made a cash payment to BWE totaling $132 million, in order for BWE to maintain appropriate working capital and liquidity levels. In order to effect the distribution and govern BWXT’s relationship with BWE after the distribution, BWXT entered into a master separation agreement with BWE. In addition to the master separation agreement, BWXT and BWE entered into other agreements in connection with the distribution, including a tax sharing agreement and transition services agreements. Master Separation Agreement The master separation agreement between us and BWE contains the key provisions relating to the separation of our former Power Generation business from BWXT and the distribution of shares of BWE common stock. The master separation agreement identifies the assets that were transferred, liabilities that were assumed and contracts that were assigned to BWE by BWXT or by BWE to BWXT in the spin-off and describes how these transfers, assumptions and assignments occurred. Under the master separation agreement we also agreed to indemnify BWE against various claims and liabilities related to the past operation of BWXT’s business (other than BWE’s business). As of the spin-off, the Company has outstanding performance guarantees for various projects executed by the Power Generation business in the normal course of business. These guarantees total $1,542 million and range in expiration dates from 2015 to 2035. The master separation agreement requires that the Power Generation business use commercially reasonable efforts to terminate (or have it or one of its subsidiaries substituted for us) all existing guarantees by us relating to our former Power Generation business, including financial, performance and other guarantee obligations. The Power Generation business is required (i) to use commercially reasonable efforts to perform all underlying obligations covered by the guarantees, (ii) to take all actions to put the Company in the same position as if the Power Generation business, not the Company, had performed or were performing the guarantee obligations, and (iii) to indemnify and hold harmless the Company for any losses arising from the guarantees. Moreover, to the extent that the Power Generation business fails to terminate or substitute any of the existing guarantees by the 24-month anniversary of the spin-off, the Power Generation business will be obligated to pay a quarterly carrying fee until the expiration of the guarantee or the termination or substitution of the guarantee, whichever occurs first. We estimated the fair value of these performance guarantees at June 30, 2015 to total $10.2 million and have recorded these amounts in other liabilities on our consolidated balance sheet. Tax Sharing Agreement We and BWE have entered into an agreement providing for the sharing of taxes incurred before and after the distribution, various indemnification rights with respect to tax matters and restrictions to preserve the tax-free status of the distribution to BWXT. Under the terms of the tax sharing agreement we have entered into in connection with the spin-off, we will generally be responsible for 60% of any taxes imposed on us or BWE and its subsidiaries in the event that the spin-off and/or certain related preparatory transactions were to fail to qualify for tax-free treatment. However, if the spin-off and/or certain related preparatory transactions were to fail to qualify for tax-free treatment because of actions or failures to act by BWE, we would not be responsible for the related taxes associated with these actions. Conversely, if the spin-off and/or certain related preparatory transactions were to fail to qualify for tax-free treatment because of actions or failures to act by us, we would be responsible for all related taxes associated with these actions. Transition Services Agreements Under the transition services agreements, BWXT and BWE are providing each other certain transition services for a limited time. Such services include, among others, accounting, human resources, information technology, legal, risk management, tax and treasury services. In consideration for such services, BWXT and BWE each pay fees to the other for the services provided, and those fees are generally in amounts intended to allow the party providing the services to recover its direct and indirect costs incurred in providing those services. The transition services agreements contain customary mutual indemnification provisions. Financial Information The following table presents selected financial information regarding the results of operations of our former Power Generation business: Three Months Ended Six Months Ended 2015 2014 2015 2014 (Unaudited) (In thousands) Revenues $ 434,453 $ 324,905 $ 830,234 $ 634,639 Costs and Expenses: Cost of operations 352,573 255,877 665,558 508,759 Research and development costs 3,962 4,281 8,480 8,293 Losses on asset disposals and impairments, net 8,945 1,457 8,963 1,457 Selling, general and administrative expenses (1) 55,630 48,550 108,911 93,264 Special charges for restructuring activities 5,311 7,513 7,666 8,991 Costs to spin-off 30,831 — 34,358 — Total Costs and Expenses 457,252 317,678 833,936 620,764 Equity in Income (Loss) of Investees 967 433 (1,104 ) 2,799 Operating Income (Loss) (21,832 ) 7,660 (4,806 ) 16,674 Other Income 609 200 305 1,902 Income (Loss) before Provision for Income Taxes (21,223 ) 7,860 (4,501 ) 18,576 Provision for (Benefit from) Income Taxes (4,311 ) 3,557 1,336 8,263 Net Income (Loss) (16,912 ) 4,303 (5,837 ) 10,313 Net Loss Attributable to Noncontrolling Interest (54 ) (77 ) (106 ) (193 ) Income (Loss) from Discontinued Operations $ (16,966 ) $ 4,226 $ (5,943 ) $ 10,120 (1) Included in selling, general and administrative expenses are allocations of corporate administrative expenses of $13.9 million and $28.0 million for the three and six months ended June 30, 2015 and $13.7 million and $27.1 million for the three and six months ended June 30, 2014. We have incurred approximately $66.5 million in total spin-off related costs, which includes approximately $29.8 million for professional services and $23.1 million of retention and severance-related charges. The majority of the remaining costs relate to the separation of our facilities and related infrastructure inclusive of information technology systems. Income from discontinued operations for the three and six months ended June 30, 2015 includes $30.8 million and $34.4 million, respectively, of these charges and included in continuing operations are spin-off costs of $24.5 million and $26.0 million for the three and six months ended June 30, 2015. A total of $6.1 million was recognized in the year ended December 31, 2014. The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 condensed consolidated balance sheet (Unaudited) (In thousands): December 31, Cash and cash equivalents $ 189,345 Restricted cash and cash equivalents 3,661 Accounts receivable – trade, net 265,456 Accounts receivable – other 38,205 Contracts in progress 107,751 Inventories 98,711 Deferred income taxes 35,158 Other current assets 13,986 Total Current Assets $ 752,273 Net Property, plant and equipment $ 128,835 Goodwill 209,277 Deferred income taxes 112,988 Investments in unconsolidated affiliates 109,248 Intangible assets 50,646 Other assets 12,426 Total Assets of Discontinued Operations $ 1,375,693 Notes payable and current maturities of long-term debt $ 3,215 Accounts payable 158,643 Accrued employee benefits 39,464 Accrued liabilities – other 59,726 Advance billings on contracts 148,098 Accrued warranty expense 37,735 Total Current Liabilities $ 446,881 Long-term debt $ — Accumulated postretirement benefit obligation 28,257 Pension liability 255,062 Other long-term liabilities 16,513 Total Liabilities of Discontinued Operations $ 746,713 The following table presents selected financial information regarding cash flows of our former Power Generation business that are included in the condensed consolidated statements of cash flows: Six Months Ended 2015 2014 (Unaudited) (In thousands) Non-cash items included in net income (loss): Depreciation and amortization $ 21,458 $ 9,642 Income (loss) of investees, net of dividends (2,293 ) 239 Losses on asset disposals and impairments, net 10,544 1,457 Purchases of property, plant and equipment 11,494 5,464 |
Special Charges for Restructuri
Special Charges for Restructuring Activities | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Special Charges for Restructuring Activities | NOTE 3 – SPECIAL CHARGES FOR RESTRUCTURING ACTIVITIES In 2014, we began certain initiatives aimed at driving margin improvement in our Nuclear Energy segment. In the six months ended June 30, 2015, we incurred $0.7 million of expenses related to facility consolidation and employee termination benefits in connection with these initiatives. During the six months ended June 30, 2014, we incurred $2.5 million related to employee termination benefits and $0.3 million related to facility consolidation. In addition, we incurred $15.9 million and $7.9 million for the six months ended June 30, 2015 and 2014, respectively, related to the restructuring of our mPower program. The 2015 amount relates to asset impairments as a result of the significant adverse changes in the business prospects of the mPower program. We incurred additional 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, 2015 and 2014: Six Months Ended June 30, June 30, (In thousands) Balance at the beginning of the period $ 4,967 $ 5,148 Special charges for restructuring activities (1) 610 10,619 Payments (3,875 ) (8,114 ) Translation and other (131 ) (6 ) Balance at the end of the period $ 1,571 $ 7,647 (1) Excludes non-cash charges of $16.0 million and $0.5 million for the six months ended June 30, 2015 and 2014, respectively, which did not impact the restructuring liability. At June 30, 2015, unpaid restructuring charges totaled $1.5 million for employee termination benefits and $0.1 million for administrative costs. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | NOTE 4 – CREDIT FACILITY On May 11, 2015, BWXT entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders and letter of credit issuers, and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a five-year, senior secured revolving credit facility in an aggregate amount of up to $400 million, the full amount of which is available for the issuance of letters of credit, and a senior secured term loan facility in an aggregate amount of up to $500 million, $300 million of which was drawn upon closing on June 30, 2015. The remaining commitment for the term loan expires on December 31, 2015. Obligations under the Credit Agreement are scheduled to mature on the fifth anniversary of its closing date. The proceeds of loans under the Credit Agreement were used to repay all indebtedness under BWXT’s former secured credit facility, and remaining amounts are available for working capital needs and other general corporate purposes. The Credit Agreement includes provisions for additional financial institutions to become lenders, or for any existing lender to increase its commitment thereunder, subject to an aggregate maximum of $250 million for all incremental term loan, revolving credit borrowings and letter of credit commitments. The Credit Agreement is (i) guaranteed by substantially all of BWXT’s wholly owned domestic subsidiaries, excluding BWXT’s captive insurance subsidiary, and (ii) secured by first-priority liens on certain assets owned by BWXT and the guarantors (other than the BWXT’s subsidiaries comprising its Nuclear Operations and Technical Services segments). The Credit Agreement requires interest payments on revolving loans on a periodic basis until maturity. BWXT is also required to make quarterly amortization payments on the term loan portion of the Credit Agreement in an amount equal to 1.25% of the aggregate principal amount of the term loan facility that is utilized. BWXT may prepay all loans under the Credit Agreement at any time without premium or penalty (other than customary LIBOR breakage costs), subject to notice requirements. Loans outstanding under the Credit Agreement bear interest at BWXT’s option at either the LIBOR rate plus a margin ranging from 1.25% to 1.75% per year or the base rate (the highest of the Federal Funds rate plus 0.50%, the one month LIBOR rate plus 1.0%, or the administrative agent’s prime rate) plus a margin ranging from 0.25% to 0.75% per year. Starting on the closing date of the Credit Agreement, we are charged a commitment fee on the unused portions of the revolving credit facility and term loan facility, and that fee varies between 0.150% and 0.250% per year. Additionally, we are charged a letter of credit fee of between 1.25% and 1.75% per year with respect to the amount of each financial letter of credit issued under the Credit Agreement and a letter of credit fee of between 0.75% and 1.05% per year is charged with respect to the amount of each performance letter of credit issued under the Credit Agreement. The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on the BWXT’s leverage ratio. Upon the closing of the Credit Agreement, BWXT paid certain upfront fees to the lenders thereunder, and paid arrangement and other fees to the arrangers and agents of the Credit Agreement. At June 30, 2015, borrowings outstanding totaled $300.0 million and $30.0 million under our term loan and revolving line of credit, respectively, and letters of credit issued under the Credit Agreement totaled $71.7 million, resulting in $498.3 million available for borrowings or to meet letter of credit requirements. Based on the current credit ratings of the Credit Agreement, 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 0.825%, and the commitment fee for unused portions of the Credit Agreement is 0.175%. The Credit Agreement does not have a floor for the base rate or the Eurocurrency rate. As of June 30, 2015, the interest rate on borrowings under our Credit Agreement was 1.56%. The Credit Agreement includes financial covenants that will be tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The maximum permitted leverage ratio is 3.00 to 1.00, which ratio may be increased to 3.25 to 1.00 for up to four consecutive fiscal quarters after a material acquisition. The minimum consolidated interest coverage ratio is 4.00 to 1.00. In addition, the Credit Agreement contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. The Credit Agreement generally includes customary events of default for a secured credit facility. If an event of default relating to bankruptcy or other insolvency events with respect to BWXT occurs under the Credit Agreement, all obligations under the Credit Agreement will immediately become due and payable. If any other event of default exists under the Credit Agreement, the lenders will be permitted to accelerate the maturity of the obligations outstanding under the Credit Agreement. If any event of default occurs under the Credit Agreement, the lenders will be permitted to terminate their commitments thereunder and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral. If any default occurs under the Credit Agreement, or if BWXT is unable to make any of the representations and warranties in the Credit Agreement, BWXT will be unable to borrow funds or have letters of credit issued under the Credit Agreement. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2015 2014 2015 2014 2015 2014 (In thousands) Service cost $ 6,208 $ 6,163 $ 12,488 $ 12,324 $ 219 $ 207 $ 442 $ 423 Interest cost 16,182 17,297 32,714 34,593 686 426 1,373 1,395 Expected return on plan assets (22,379 ) (21,280 ) (45,177 ) (42,552 ) (583 ) (575 ) (1,168 ) (1,150 ) Amortization of prior service cost (credit) 459 510 915 1,019 (50 ) (40 ) (96 ) (80 ) Recognized net actuarial loss 2,161 — 2,161 — — — — — Net periodic benefit cost $ 2,631 $ 2,690 $ 3,101 $ 5,384 $ 272 $ 18 $ 551 $ 588 During the six months ended June 30, 2015, significant lump sum payments were made from certain salaried Canadian pension plans. As a result, we remeasured certain of our Canadian pension plans resulting in the recognition of a net actuarial loss of $2.2 million, which includes a $2.6 million settlement loss and a $0.4 million actuarial gain. We have excluded the recognized net actuarial loss from our reportable segments, and such amount has been reflected in Note 10 as the Mark to Market Adjustment in the reconciliation of reportable segment income to consolidated operating income. We recorded $1.0 million of the net actuarial loss within cost of operations and $1.2 million of the loss within selling, general and administrative expenses. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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 10 to the consolidated financial statements in Part II of our 2014 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. and now known as BWXT Technical Services Group, Inc. (the “BWXT 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 sixteen lawsuits pending in the U.S. District Court for the Western District of Pennsylvania against the BWXT Parties and ARCO, including the most recent lawsuit filed in June 2015. In total, the suits presently involve approximately 97 primary claimants. 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 the Borough of Apollo 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, and in November 2014 delivered a demand of $125.0 million for the settlement of all then-filed actions. 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 for all claims other than the most recent claims in June 2015, but no trial date has been set. In connection with the spin-off, we agreed to indemnify B&W PGG and its affiliates for any losses arising from the Apollo and Parks Litigation pursuant to the Master Separation Agreement. In May 2015, the magistrate judge overseeing the consolidated suits (representing fifteen of the lawsuits filed to date and 93 primary claimants) issued a report recommending, among other things, that two motions for summary judgment filed by the BWXT Parties (Failure to Raise a Genuine Issue For Trial on Breach of Duty and Lack of Evidence Regarding Exposure and Dose) be granted. This recommendation must be adopted by the presiding judge in order to have effect, and the presiding judge is not obligated to follow the magistrate’s recommendations. The parties have filed their respective responses to the report and the BWXT Parties are currently evaluating the need for further reply. Once all responses are lodged, the presiding judge will consider the motions, the magistrate’s report and recommendation and the parties’ responses and rule on the motions. 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, which has been assigned to BWXT and its affiliates, 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 BWXT Parties and ARCO were defendants in a prior litigation filed in 1994 relating to the operation of the Apollo Borough 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 BWXT 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 BWXT 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 BWXT 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 BWXT 58.33% of the total of all ARCO’s proceeds/amounts recovered against ANI on account of the Hall Litigation. The BWXT Parties sought recovery from ANI for amounts paid by the BWXT Parties to settle the Hall Litigation, along with unreimbursed attorney fees, allocated amounts assigned by ARCO to the BWXT 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 BWXT 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 BWXT Parties, ARCO and ANI entered into an agreement (the “February 2012 Agreement”) in which the parties agreed to the dismissal with prejudice of all remaining claims pending in the ANI Litigation, excluding the BWXT 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 BWXT 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 BWXT Parties and ARCO on the Settlement Claims (the “February 2012 Judgment”). As part of the February 2012 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 the request for appeal. The parties’ briefs on the appeal have been filed and oral arguments were held October 7, 2014. On July 21, 2015, the Supreme Court of Pennsylvania issued its ruling by reversing the decision of the Superior Court and reinstating the trial court’s February 2012 Judgment in favor of the BWXT Parties and ARCO. ANI has filed an application for reargument, which BWXT plans to oppose. Under the February 2012 Agreement, the parties agreed that there would be no recourse to the United States Supreme Court and, following the exhaustion of its other appeal remedies, ANI is required to pay the BWXT Parties and ARCO all amounts in satisfaction of the February 2012 Judgment, plus any pre- and post-judgment interest and $5 million in liquidated contingency. BWXT has not recognized any amounts claimed in the ANI Litigation in its financial statements. Prairie Island On November 12, 2014, one of our subsidiaries, Babcock & Wilcox Nuclear Energy, Inc., which was re-named BWXT Nuclear Energy, Inc. in connection with the spin-off (“BWXT NE”), filed suit in the District Court, 1st JDC, Goodhue County Minnesota, Docket No. 25.cv.14.2626, against both Northern States Power Co. d/b/a Xcel Energy (“Xcel”) and SNC-Lavalin Nuclear (USA), Inc. (“SNC-Lavalin”) claiming $45.4 million in damages along with interest and attorneys’ fees for breach of contract and pursuant to a previously filed mechanic’s lien on Xcel’s property. The suit arose from a steam generator replacement project at Xcel’s Prairie Island Nuclear Generating Plant in Red Wing, Minnesota in which BWXT NE served as subcontractor to SNC-Lavalin. BWXT NE’s claims asserted, among other things, that amounts owed to BWXT NE had been improperly withheld and that Xcel was not entitled to impose certain liquidated damages for delay under the terms of BWXT NE’s contract. On May 29, 2015, BWXT NE entered into an agreement with Xcel and SNC-Lavalin settling all claims and disputes between the parties related to the dispute. As a result of the settlement agreement, Xcel made a lump sum payment to BWXT NE in the amount of $36.3 million, which was equal to the net asset recorded on our balance sheet for this matter. New Mexico Environment Department One of our subsidiaries owns a 30% interest in a joint venture, Nuclear Waste Partnership, LLC (“NWP”), which is executing a prime contract with the DOE for the management and operation of the DOE’s Waste Isolation Pilot Plant in Carlsbad, New Mexico (the “WIPP”). Another of our subsidiaries owns a 13% interest in a separate joint venture, Los Alamos National Security, LLC (“LANS”), which is executing a prime contract with the DOE/NNSA for the management and operation of the DOE’s Los Alamos National Laboratory (“Los Alamos”). On December 6, 2014, the DOE and each of its contractors, NWP and LANS, received Administrative Compliance Orders from the New Mexico Environment Department (“NMED”) alleging violations of New Mexico environmental laws and regulations at both WIPP and Los Alamos associated with radiological incidents that occurred at the WIPP in February 2014 (the “WIPP Event”). The Administrative Compliance Orders assessed civil penalties of approximately $17.75 million on the DOE and NWP and approximately $36.6 million on the DOE and LANS for the alleged violations at both the WIPP and Los Alamos. On April 30, 2015 the DOE, NWP, LANS and NMED reached a settlement framework in lieu of fines related to NMED’s alleged violations at WIPP and Los Alamos. The implementation of this settlement framework is ongoing. DOE/NNSA and LANS have executed an NNSA Fee Waiver Agreement, dated June 6, 2015, that resolves all financial liability issues concerning the WIPP Event. In return for a broad release of liability from NNSA for the WIPP Event, LANS agreed to repay NNSA certain provisional fee payments within five business days of the execution of a final settlement agreement between the DOE, NMED and LANS, which is expected to be finalized in the third quarter of 2015. Once the final settlement agreement is executed, the return of provisional fees by LANS will require a related immaterial payment by a BWXT subsidiary to LANS in accordance with the LANS operating agreement. No fee repayments or fines were assessed against NWP as part of the settlement framework. mPower In April 2014, BWXT announced plans to restructure our mPower program for the development of our mPower reactor to focus on technology development. BWXT has worked with the DOE, Bechtel – our partner in Generation mPower LLC (“GmP”), and other stakeholders and potential investors in continuing efforts to restructure the mPower program in light of deteriorated market conditions. Although BWXT has continued to invest in the program at the rate of approximately $15 million annually, on July 13, 2015, Bechtel provided formal written notice asserting that BWXT and GmP are in material breach of the GmP Limited Liability Company Agreement dated February 28, 2011 (the “LLC Agreement”) for failing to make required investments. On July 23, 2015, BWXT requested that Bechtel join BWXT in a mutually-agreed 60-day cooling-off period, in accordance with the terms of the LLC Agreement, to which Bechtel responded with a counter-proposal. BWXT has firmly asserted that due to “significant adverse changes” that have developed since the inception of GmP, BWXT has made substantial efforts to mitigate these adverse changes and is not in breach of any material provisions of the LLC Agreement. The purposes of BWXT’s proposed cooling-off period are to attempt to negotiate in good faith a potential restructuring of the program or other resolution of this matter. Bechtel has asserted that due to the alleged breaches by BWXT, in accordance with the terms of the LLC Agreement, Bechtel is entitled to 150% of Bechtel’s approximately $80 million investment in the program. This investment was ‘in-kind’ only and did not involve any contribution of cash by Bechtel. BWXT strongly disagrees with Bechtel’s assertions. BWXT believes there have been significant adverse changes in the business prospects for nuclear power generally, as well as the business prospects of the program, and small modular reactors in particular, since the inception of the GmP Program. These significant adverse changes have resulted from developments and events such as the Fukushima disaster; extended projections of low natural gas prices; continuing ineffectiveness and uncertainty regarding emission controls on coal-fired power plants, compounded by other policies and regulatory changes that favor wind, solar and other renewables as alternatives to coal and legal battles that will likely continue to stifle any meaningful changes, such as the U.S. Supreme Court’s June 2015 ruling to overturn certain EPA regulations regarding mercury and other emissions; and lower growth in electricity demand than projected due to multiple factors ranging from slower economic growth to increases in energy efficiency, among other events and developments. As a result of such significant adverse changes, BWXT has the right under the LLC Agreement to terminate the program. Bechtel is therefore not entitled to any return of its investment. However, rather than terminate the program, BWXT would prefer to continue its investment for some period of time in an effort to further mitigate the adverse changes that have occurred and to continue advancing the research and development of the mPower small modular reactor technology. As BWXT has previously disclosed, the latest extension to the Cooperative Agreement with the DOE has expired and the DOE funding has been suspended. We continue to work with the DOE regarding the status of and options relating to the Cooperative Agreement. BWXT believes the claims asserted by Bechtel are without contractual or legal basis. BWXT intends to aggressively defend against all claims. However, if Bechtel were to prevail on their claims in this matter, the outcome could have a material adverse effect on our financial condition. Other Litigation and Settlements On December 17, 2014, an unfavorable jury verdict was delivered against The Babcock & Wilcox Company, Babcock & Wilcox Power Generation Group, Inc. Babcock & Wilcox Nuclear Energy, Inc. and Babcock & Wilcox Canada Ltd. in a case entitled AREVA NP, INC. f/k/a Framatome ANP, Inc. v. The Babcock & Wilcox Company, et. al. The case was filed August 26, 2011 in the Circuit Court for the City of Lynchburg, Commonwealth of Virginia and alleged that the BWXT parties to the suit owed royalties on certain commercial nuclear contracts performed by the Company and certain of its subsidiaries since 2004. As a result of the jury’s decision and notwithstanding our evaluation of post-trial remedies, we made provisions in our financial statements in the fourth quarter of 2014 for the full amount of the jury award. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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. Based on the hedge designation at the inception of the contract, the related gains and losses on these contracts are deferred in stockholders’ equity as a component of accumulated other comprehensive income (loss) until the hedged item is recognized in 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 FX forward contracts attributable to the difference between FX spot rates and FX forward rates. At June 30, 2015, we had deferred approximately $0.4 million of net losses on these derivative financial instruments in accumulated other comprehensive income (loss). Assuming market conditions continue, we expect to recognize substantially all of this amount in the next twelve months. At June 30, 2015, our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $47.2 million at June 30, 2015, 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, 2015 and December 31, 2014: Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 701 $ 469 Other assets $ 79 $ — Accounts payable $ 2,271 $ 2,655 Other liabilities $ 1,476 $ 743 The effects of derivatives on our financial statements are outlined below: Six Months Ended 2015 2014 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of loss recognized in other comprehensive income (loss) $ (2,638 ) $ (177 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ 484 $ (90 ) Cost of operations $ (2,718 ) $ 127 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 8 – FAIR VALUE MEASUREMENTS Investments The following is a summary of our investments measured at fair value at June 30, 2015: 6/30/15 Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds – Centrus Energy Corp. $ 1,856 $ 1,856 $ — $ — Available-for-sale securities Equities – Centrus Energy Corp. $ 2,966 $ — $ 2,966 $ — Mutual funds 4,037 — 4,037 — Asset-backed securities and collateralized mortgage obligations 304 — 304 — Commercial paper 2,649 — 2,649 — Total $ 11,812 $ 1,856 $ 9,956 $ — The following is a summary of our investments measured at fair value at December 31, 2014: 12/31/14 Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds – Centrus Energy Corp. $ 2,439 $ 2,439 $ — $ — Available-for-sale securities Equities – Centrus Energy Corp. $ 3,088 $ — $ 3,088 $ — Mutual funds 4,199 — 4,199 — Asset-backed securities and collateralized mortgage obligations 319 — 319 — Commercial paper 2,398 — 2,398 — Total $ 12,443 $ 2,439 $ 10,004 $ — 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, 2015 and December 31, 2014, we had forward contracts outstanding to purchase or sell Canadian dollars, with a total fair value of $(3.0) million and $(2.9) 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 Long-term and short-term debt |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based 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, 2015 totaled $17.8 million and $21.5 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2015 totaling $6.0 million and $7.3 million, respectively. We recognized $13.2 million of stock-based compensation expense during the three and six months ended June 30, 2015 as costs to spin-off the Power Generation business. This expense related primarily to equity retention awards and expense acceleration associated with employee terminations. Total stock-based compensation expense for all of our plans recognized for the three and six months ended June 30, 2014 totaled $5.2 million and $7.0 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2014 totaling $2.0 million and $2.7 million, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 10 – SEGMENT REPORTING As described in Note 1, our operations are assessed based on three reportable segments. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) REVENUES: Nuclear Operations $ 291,751 $ 293,438 $ 576,189 $ 579,652 Technical Services 21,589 26,015 40,173 50,470 Nuclear Energy 45,466 44,927 78,423 92,707 Other — — — 278 Adjustments and Eliminations (1) (1,671 ) (1,892 ) (2,163 ) (5,203 ) $ 357,135 $ 362,488 $ 692,622 $ 717,904 (1) Nuclear Operations Transfers $ (1,659 ) $ (1,844 ) $ (2,122 ) $ (4,931 ) Technical Services Transfers (12 ) — (12 ) (52 ) Nuclear Energy Transfers — (48 ) (29 ) (220 ) $ (1,671 ) $ (1,892 ) $ (2,163 ) $ (5,203 ) OPERATING INCOME: Nuclear Operations $ 61,145 $ 58,682 $ 129,157 $ 118,210 Technical Services 5,490 15,078 7,135 29,867 Nuclear Energy 2,364 1,548 (1,304 ) 2,071 Other (4,490 ) (31,933 ) (9,658 ) (58,642 ) $ 64,509 $ 43,375 $ 125,330 $ 91,506 Unallocated Corporate (2) (9,833 ) (5,961 ) (15,204 ) (8,283 ) Special Charges for Restructuring Activities (16,460 ) (9,957 ) (16,608 ) (11,137 ) Cost to spin-off Power Generation business (24,470 ) — (25,987 ) — Mark to Market Adjustment (2,161 ) — (2,161 ) — Total Operating Income (3) $ 11,585 $ 27,457 $ 65,370 $ 72,086 Other Income (Expense) Interest income 170 27 234 231 Interest expense (3,300 ) (636 ) (5,561 ) (1,805 ) Other – net 120 258 (1,284 ) 363 Total Other Income (Expense) (3,010 ) (351 ) (6,611 ) (1,211 ) Income before Provision for Income Taxes $ 8,575 $ 27,106 $ 58,759 $ 70,875 (2) (3) Equity in Income (Loss) of Investees Nuclear Operations $ — $ — $ — $ — Technical Services 3,282 12,749 5,134 25,650 Nuclear Energy — — — 2 $ 3,282 $ 12,749 $ 5,134 $ 25,652 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2015 2014 (In thousands, except share and per share amounts) Basic: Income (loss) from continuing operations less noncontrolling interest $ (181 ) $ 22,211 $ 34,053 $ 61,361 Income (loss) from discontinued operations, net of tax (16,966 ) 4,226 (5,943 ) 10,120 Net income (loss) $ (17,147 ) $ 26,437 $ 28,110 $ 71,481 Weighted average common shares 107,120,149 109,766,237 106,948,033 110,102,826 Income (loss) from continuing operations less noncontrolling interest $ 0.00 $ 0.20 $ 0.32 $ 0.56 Income (loss) from discontinued operations, net of tax (0.16 ) 0.04 (0.06 ) 0.09 Net income (loss) $ (0.16 ) $ 0.24 $ 0.26 $ 0.65 Diluted: Income (loss) from continuing operations less noncontrolling interest $ (181 ) $ 22,211 $ 34,053 $ 61,361 Income (loss) from discontinued operations, net of tax (16,966 ) 4,226 (5,943 ) 10,120 Net income (loss) $ (17,147 ) $ 26,437 $ 28,110 $ 71,481 Weighted average common shares (basic) 107,120,149 109,766,237 106,948,033 110,102,826 Effect of dilutive securities: Stock options, restricted stock and performance shares (1) — 350,393 411,914 398,511 Adjusted weighted average common shares 107,120,149 110,116,630 107,359,947 110,501,337 Income (loss) from continuing operations less noncontrolling interest $ 0.00 $ 0.20 $ 0.32 $ 0.56 Income (loss) from discontinued operations, net of tax (0.16 ) 0.04 (0.06 ) 0.09 Net income (loss) $ (0.16 ) $ 0.24 $ 0.26 $ 0.65 (1) At June 30, 2015 and 2014, we have excluded from our diluted share calculation 2,408,006 and 1,373,087 shares, respectively, related to stock options, as their effect would have been antidilutive. |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Spin-off | Spin-off On June 30, 2015, we completed the spin-off of our Power Generation business (the “spin-off”) into an independent, publicly traded company named Babcock & Wilcox Enterprises, Inc. (“BWE”). The separation was effected through a pro rata distribution of 100% of BWE’s common stock to BWXT’s stockholders. The distribution of BWE common stock consisted of one share of BWE common stock for every two shares of BWXT common stock to holders of BWXT common stock on the record date of June 18, 2015. Cash was paid in lieu of any fractional shares of BWE common stock. Following the spin-off, BWXT did not retain any ownership interest in BWE. Prior to June 30, 2015, we completed an internal restructuring that separated the subsidiaries involved in our former Power Generation business and established BWE as the direct or indirect parent company of those subsidiaries. Concurrent with the spin-off, The Babcock & Wilcox Company was renamed BWX Technologies, Inc. The results of operations for the three and six month periods ended June 30, 2015 and 2014, as well as the accompanying notes, reflect the historical operations of our former Power Generation business as discontinued operations. See Note 2 for further information regarding the spin-off of BWE. The discussions in this quarterly report are presented on the basis of continuing operations, unless otherwise stated. |
Reporting Segments | Reporting Segments As a result of the spin-off of our former Power Generation business that is now reported as discontinued operations, we now operate in three reportable segments: Nuclear Operations, Technical Services and Nuclear Energy. Prior to 2015, our mPower business was a separate reportable segment. In accordance with FASB Topic Segment Reporting • Our Nuclear Operations segment’s primary activity is the manufacture of 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, Tennessee, 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 primarily to the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management and the Department of Defense. 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, components and services to nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide. This segment is the only commercial 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. This segment also offers engineering and licensing services for new nuclear plant designs. See Note 10 for further information regarding our segments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and the related footnotes included in our 2014 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 towards 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 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. |
Comprehensive Income | Comprehensive Income The components of accumulated other comprehensive income (loss) included in stockholders’ equity are as follows: June 30, 2015 December 31, 2014 (In thousands) Currency translation adjustments $ 11,524 $ 11,547 Net unrealized gain on available-for-sale investments 24 155 Net unrealized gain (loss) on derivative financial instruments (437 ) (123 ) Unrecognized prior service cost on benefit obligations (6,034 ) (7,983 ) Accumulated other comprehensive income (loss) $ 5,077 $ 3,596 The amounts reclassified out of accumulated other comprehensive income (loss) by component and the affected condensed consolidated statements of income line items are as follows: Accumulated Other Comprehensive Three Months Ended June 30, Six Months Ended June 30, Income (Loss) 2015 2014 2015 2014 Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ (210 ) $ (253 ) $ 484 $ (90 ) Revenues 703 1,153 (2,718 ) 127 Cost of operations 493 900 (2,234 ) 37 Total before tax (127 ) (232 ) 575 (9 ) Provision for Income Taxes $ 366 $ 668 $ (1,659 ) $ 28 Net Income Amortization of prior service cost on benefit obligations $ (400 ) $ (384 ) $ (801 ) $ (768 ) Cost of operations (9 ) (86 ) (18 ) (171 ) Selling, general and administrative expenses (409 ) (470 ) (819 ) (939 ) Total before tax 140 148 278 295 Provision for Income Taxes $ (269 ) $ (322 ) $ (541 ) $ (644 ) Net Income Realized gain (loss) on investments $ 191 $ 7 $ 177 $ 41 Other-net (68 ) (3 ) (63 ) (15 ) Provision for Income Taxes $ 123 $ 4 $ 114 $ 26 Net Income Total reclassification for the period $ 220 $ 350 $ (2,086 ) $ (590 ) |
Inventories | Inventories At June 30, 2015 and December 31, 2014, we had inventories totaling $11.4 million and $9.9 million, respectively, consisting entirely of raw materials and supplies. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents At June 30, 2015, we had restricted cash and cash equivalents totaling $18.0 million, $2.5 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $15.5 million of which was held to meet reinsurance reserve requirements of our captive insurer. |
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, 2015 2014 (In thousands) Balance at beginning of period $ 15,889 $ 17,469 Additions 563 688 Expirations and other changes — (970 ) Payments (51 ) (20 ) Translation and other (304 ) 6 Balance at end of period $ 16,097 $ 17,173 |
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 the costs of research and development unrelated to specific contracts as incurred. Substantially all of these costs are related to our mPower program for the development of our mPower TM In 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 related to services contributed by our minority partner to Generation mPower LLC, our majority-owned subsidiary formed in 2011 to oversee the mPower program to develop the small modular nuclear power plant based on mPower™ technology. In the six months ended June 30, 2014, we received funding of $19.8 million under our Cooperative Agreement with the DOE under its Small Modular Reactor Licensing Technical Support Program (the “Cooperative Agreement”). On April 14, 2014, we announced our plans to restructure the mPower program to reduce spending and focus on technology development. We slowed the pace of development and intend to invest no more than $15 million on an annual basis while we focus on technology development. At this time, the latest extension to the Cooperative Agreement has expired and the DOE funding has been suspended. |
Provision for Income Taxes | Provision for Income Taxes We are subject to federal income tax in the U.S. and Canada as well as income tax within multiple U.S. state 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, 2015 was approximately 104.7% as compared to 29.2% for the three months ended June 30, 2014 largely due to the impact of the spin-off of our Power Generation business. Our effective tax rate for the six months ended June 30, 2015 was approximately 42.9% as compared to 23.3% for the six months ended June 30, 2014. Specifically, the effective tax rates for the three and six months ended June 30, 2015 were higher than our statutory rate primarily due to the change in our tax footprint associated with the spin-off, resulting in the revaluations of deferred tax assets and liabilities as well as the need to recognize tax provision on our global earnings at our U.S. federal rate due to the likely repatriation of future foreign earnings. These matters resulted in $3.8 million of tax provision for the three and six months ended June 30, 2015. The effective tax rates for the three and six months ended June 30, 2014 were lower than our statutory rate due to the impact of an increase in benefits from amended federal manufacturing deductions, and the receipt of a favorable ruling from the Internal Revenue Service that retroactively reduced the U.S. tax owed on income from certain of our foreign joint ventures. As of June 30, 2015, we have gross unrecognized tax benefits of $8.3 million. Of the $8.3 million gross unrecognized tax benefits, $6.1 million would reduce our effective tax rate if recognized. |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income (loss) | Comprehensive Income The components of accumulated other comprehensive income (loss) included in stockholders’ equity are as follows: June 30, 2015 December 31, 2014 (In thousands) Currency translation adjustments $ 11,524 $ 11,547 Net unrealized gain on available-for-sale investments 24 155 Net unrealized gain (loss) on derivative financial instruments (437 ) (123 ) Unrecognized prior service cost on benefit obligations (6,034 ) (7,983 ) Accumulated other comprehensive income (loss) $ 5,077 $ 3,596 |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (loss) | The amounts reclassified out of accumulated other comprehensive income (loss) by component and the affected condensed consolidated statements of income line items are as follows: Accumulated Other Comprehensive Three Months Ended June 30, Six Months Ended June 30, Income (Loss) 2015 2014 2015 2014 Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ (210 ) $ (253 ) $ 484 $ (90 ) Revenues 703 1,153 (2,718 ) 127 Cost of operations 493 900 (2,234 ) 37 Total before tax (127 ) (232 ) 575 (9 ) Provision for Income Taxes $ 366 $ 668 $ (1,659 ) $ 28 Net Income Amortization of prior service cost on benefit obligations $ (400 ) $ (384 ) $ (801 ) $ (768 ) Cost of operations (9 ) (86 ) (18 ) (171 ) Selling, general and administrative expenses (409 ) (470 ) (819 ) (939 ) Total before tax 140 148 278 295 Provision for Income Taxes $ (269 ) $ (322 ) $ (541 ) $ (644 ) Net Income Realized gain (loss) on investments $ 191 $ 7 $ 177 $ 41 Other-net (68 ) (3 ) (63 ) (15 ) Provision for Income Taxes $ 123 $ 4 $ 114 $ 26 Net Income Total reclassification for the period $ 220 $ 350 $ (2,086 ) $ (590 ) |
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, 2015 2014 (In thousands) Balance at beginning of period $ 15,889 $ 17,469 Additions 563 688 Expirations and other changes — (970 ) Payments (51 ) (20 ) Translation and other (304 ) 6 Balance at end of period $ 16,097 $ 17,173 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information Regarding Results of Operations | The following table presents selected financial information regarding the results of operations of our former Power Generation business: Three Months Ended Six Months Ended 2015 2014 2015 2014 (Unaudited) (In thousands) Revenues $ 434,453 $ 324,905 $ 830,234 $ 634,639 Costs and Expenses: Cost of operations 352,573 255,877 665,558 508,759 Research and development costs 3,962 4,281 8,480 8,293 Losses on asset disposals and impairments, net 8,945 1,457 8,963 1,457 Selling, general and administrative expenses (1) 55,630 48,550 108,911 93,264 Special charges for restructuring activities 5,311 7,513 7,666 8,991 Costs to spin-off 30,831 — 34,358 — Total Costs and Expenses 457,252 317,678 833,936 620,764 Equity in Income (Loss) of Investees 967 433 (1,104 ) 2,799 Operating Income (Loss) (21,832 ) 7,660 (4,806 ) 16,674 Other Income 609 200 305 1,902 Income (Loss) before Provision for Income Taxes (21,223 ) 7,860 (4,501 ) 18,576 Provision for (Benefit from) Income Taxes (4,311 ) 3,557 1,336 8,263 Net Income (Loss) (16,912 ) 4,303 (5,837 ) 10,313 Net Loss Attributable to Noncontrolling Interest (54 ) (77 ) (106 ) (193 ) Income (Loss) from Discontinued Operations $ (16,966 ) $ 4,226 $ (5,943 ) $ 10,120 (1) Included in selling, general and administrative expenses are allocations of corporate administrative expenses of $13.9 million and $28.0 million for the three and six months ended June 30, 2015 and $13.7 million and $27.1 million for the three and six months ended June 30, 2014. |
Carrying Values of Major Accounts of Discontinued Operations Included in Condensed Consolidated Balance Sheet | The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 condensed consolidated balance sheet (Unaudited) (In thousands): December 31, Cash and cash equivalents $ 189,345 Restricted cash and cash equivalents 3,661 Accounts receivable – trade, net 265,456 Accounts receivable – other 38,205 Contracts in progress 107,751 Inventories 98,711 Deferred income taxes 35,158 Other current assets 13,986 Total Current Assets $ 752,273 Net Property, plant and equipment $ 128,835 Goodwill 209,277 Deferred income taxes 112,988 Investments in unconsolidated affiliates 109,248 Intangible assets 50,646 Other assets 12,426 Total Assets of Discontinued Operations $ 1,375,693 Notes payable and current maturities of long-term debt $ 3,215 Accounts payable 158,643 Accrued employee benefits 39,464 Accrued liabilities – other 59,726 Advance billings on contracts 148,098 Accrued warranty expense 37,735 Total Current Liabilities $ 446,881 Long-term debt $ — Accumulated postretirement benefit obligation 28,257 Pension liability 255,062 Other long-term liabilities 16,513 Total Liabilities of Discontinued Operations $ 746,713 |
Selected Financial information Regarding Cash Flows Included in Condensed Consolidated Statements of Cash Flows | The following table presents selected financial information regarding cash flows of our former Power Generation business that are included in the condensed consolidated statements of cash flows: Six Months Ended 2015 2014 (Unaudited) (In thousands) Non-cash items included in net income (loss): Depreciation and amortization $ 21,458 $ 9,642 Income (loss) of investees, net of dividends (2,293 ) 239 Losses on asset disposals and impairments, net 10,544 1,457 Purchases of property, plant and equipment 11,494 5,464 |
Special Charges for Restructu24
Special Charges for Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014: Six Months Ended June 30, June 30, (In thousands) Balance at the beginning of the period $ 4,967 $ 5,148 Special charges for restructuring activities (1) 610 10,619 Payments (3,875 ) (8,114 ) Translation and other (131 ) (6 ) Balance at the end of the period $ 1,571 $ 7,647 (1) Excludes non-cash charges of $16.0 million and $0.5 million for the six months ended June 30, 2015 and 2014, respectively, which did not impact the restructuring liability. |
Pension Plans and Postretirem25
Pension Plans and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2015 2014 2015 2014 2015 2014 (In thousands) Service cost $ 6,208 $ 6,163 $ 12,488 $ 12,324 $ 219 $ 207 $ 442 $ 423 Interest cost 16,182 17,297 32,714 34,593 686 426 1,373 1,395 Expected return on plan assets (22,379 ) (21,280 ) (45,177 ) (42,552 ) (583 ) (575 ) (1,168 ) (1,150 ) Amortization of prior service cost (credit) 459 510 915 1,019 (50 ) (40 ) (96 ) (80 ) Recognized net actuarial loss 2,161 — 2,161 — — — — — Net periodic benefit cost $ 2,631 $ 2,690 $ 3,101 $ 5,384 $ 272 $ 18 $ 551 $ 588 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments at June 30, 2015 and December 31, 2014: Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 701 $ 469 Other assets $ 79 $ — Accounts payable $ 2,271 $ 2,655 Other liabilities $ 1,476 $ 743 |
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | The effects of derivatives on our financial statements are outlined below: Six Months Ended 2015 2014 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of loss recognized in other comprehensive income (loss) $ (2,638 ) $ (177 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ 484 $ (90 ) Cost of operations $ (2,718 ) $ 127 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments and Available-for-Sale Securities Measured at Fair Value | The following is a summary of our investments measured at fair value at June 30, 2015: 6/30/15 Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds – Centrus Energy Corp. $ 1,856 $ 1,856 $ — $ — Available-for-sale securities Equities – Centrus Energy Corp. $ 2,966 $ — $ 2,966 $ — Mutual funds 4,037 — 4,037 — Asset-backed securities and collateralized mortgage obligations 304 — 304 — Commercial paper 2,649 — 2,649 — Total $ 11,812 $ 1,856 $ 9,956 $ — The following is a summary of our investments measured at fair value at December 31, 2014: 12/31/14 Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds – Centrus Energy Corp. $ 2,439 $ 2,439 $ — $ — Available-for-sale securities Equities – Centrus Energy Corp. $ 3,088 $ — $ 3,088 $ — Mutual funds 4,199 — 4,199 — Asset-backed securities and collateralized mortgage obligations 319 — 319 — Commercial paper 2,398 — 2,398 — Total $ 12,443 $ 2,439 $ 10,004 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | As described in Note 1, our operations are assessed based on three reportable segments. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) REVENUES: Nuclear Operations $ 291,751 $ 293,438 $ 576,189 $ 579,652 Technical Services 21,589 26,015 40,173 50,470 Nuclear Energy 45,466 44,927 78,423 92,707 Other — — — 278 Adjustments and Eliminations (1) (1,671 ) (1,892 ) (2,163 ) (5,203 ) $ 357,135 $ 362,488 $ 692,622 $ 717,904 (1) Nuclear Operations Transfers $ (1,659 ) $ (1,844 ) $ (2,122 ) $ (4,931 ) Technical Services Transfers (12 ) — (12 ) (52 ) Nuclear Energy Transfers — (48 ) (29 ) (220 ) $ (1,671 ) $ (1,892 ) $ (2,163 ) $ (5,203 ) OPERATING INCOME: Nuclear Operations $ 61,145 $ 58,682 $ 129,157 $ 118,210 Technical Services 5,490 15,078 7,135 29,867 Nuclear Energy 2,364 1,548 (1,304 ) 2,071 Other (4,490 ) (31,933 ) (9,658 ) (58,642 ) $ 64,509 $ 43,375 $ 125,330 $ 91,506 Unallocated Corporate (2) (9,833 ) (5,961 ) (15,204 ) (8,283 ) Special Charges for Restructuring Activities (16,460 ) (9,957 ) (16,608 ) (11,137 ) Cost to spin-off Power Generation business (24,470 ) — (25,987 ) — Mark to Market Adjustment (2,161 ) — (2,161 ) — Total Operating Income (3) $ 11,585 $ 27,457 $ 65,370 $ 72,086 Other Income (Expense) Interest income 170 27 234 231 Interest expense (3,300 ) (636 ) (5,561 ) (1,805 ) Other – net 120 258 (1,284 ) 363 Total Other Income (Expense) (3,010 ) (351 ) (6,611 ) (1,211 ) Income before Provision for Income Taxes $ 8,575 $ 27,106 $ 58,759 $ 70,875 (2) (3) Equity in Income (Loss) of Investees Nuclear Operations $ — $ — $ — $ — Technical Services 3,282 12,749 5,134 25,650 Nuclear Energy — — — 2 $ 3,282 $ 12,749 $ 5,134 $ 25,652 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2015 2014 (In thousands, except share and per share amounts) Basic: Income (loss) from continuing operations less noncontrolling interest $ (181 ) $ 22,211 $ 34,053 $ 61,361 Income (loss) from discontinued operations, net of tax (16,966 ) 4,226 (5,943 ) 10,120 Net income (loss) $ (17,147 ) $ 26,437 $ 28,110 $ 71,481 Weighted average common shares 107,120,149 109,766,237 106,948,033 110,102,826 Income (loss) from continuing operations less noncontrolling interest $ 0.00 $ 0.20 $ 0.32 $ 0.56 Income (loss) from discontinued operations, net of tax (0.16 ) 0.04 (0.06 ) 0.09 Net income (loss) $ (0.16 ) $ 0.24 $ 0.26 $ 0.65 Diluted: Income (loss) from continuing operations less noncontrolling interest $ (181 ) $ 22,211 $ 34,053 $ 61,361 Income (loss) from discontinued operations, net of tax (16,966 ) 4,226 (5,943 ) 10,120 Net income (loss) $ (17,147 ) $ 26,437 $ 28,110 $ 71,481 Weighted average common shares (basic) 107,120,149 109,766,237 106,948,033 110,102,826 Effect of dilutive securities: Stock options, restricted stock and performance shares (1) — 350,393 411,914 398,511 Adjusted weighted average common shares 107,120,149 110,116,630 107,359,947 110,501,337 Income (loss) from continuing operations less noncontrolling interest $ 0.00 $ 0.20 $ 0.32 $ 0.56 Income (loss) from discontinued operations, net of tax (0.16 ) 0.04 (0.06 ) 0.09 Net income (loss) $ (0.16 ) $ 0.24 $ 0.26 $ 0.65 (1) At June 30, 2015 and 2014, we have excluded from our diluted share calculation 2,408,006 and 1,373,087 shares, respectively, related to stock options, as their effect would have been antidilutive. |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | Apr. 14, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)SegmentLocationSupplierComponent | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Number of business segments | Segment | 3 | |||||
Number of N-Stamp certified locations | Location | 2 | |||||
Number of large, heavy-walled nuclear components and vessels suppliers | Supplier | 2 | |||||
Revenue recognition, percentage of contract completion | 70.00% | |||||
Total inventories | $ 11,384,000 | $ 11,384,000 | $ 9,926,000 | |||
Restricted cash and cash equivalents | 18,000,000 | 18,000,000 | ||||
Restricted cash and cash equivalents | 15,459,000 | 15,459,000 | $ 50,835,000 | |||
Research and development activities | $ 5,830,000 | |||||
Recognized funding award | 19,800,000 | |||||
Income tax provision | 8,982,000 | $ 7,917,000 | 25,200,000 | 16,542,000 | ||
Gross unrecognized tax benefits | 8,300,000 | 8,300,000 | ||||
Gross unrecognized tax benefits, effective tax rate reduced | 6,100,000 | 6,100,000 | ||||
Generation mPower LLC [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Research and development activities | $ 1,600,000 | $ 5,800,000 | ||||
Cash Held for Future Decommissioning of Facilities [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Restricted cash and cash equivalents | 2,500,000 | 2,500,000 | ||||
Cash Held to Meet Reinsurance Reserve Requirements [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Restricted cash and cash equivalents | $ 15,500,000 | $ 15,500,000 | ||||
Minimum [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Number of large, heavy components supplied to worldwide | Component | 1,300 | |||||
Maximum [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Investment for development | $ 15,000,000 | |||||
Spin-Off [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Effective tax rate | 104.70% | 29.20% | 42.90% | 23.30% | ||
Income tax provision | $ 3,800,000 | $ 3,800,000 | ||||
Babcock & Wilcox Enterprises Inc [Member] | ||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Spin off, common stock distribution percentage | 100.00% | |||||
Spin off, description of shares distributed | The distribution of BWE common stock consisted of one share of BWE common stock for every two shares of BWXT common stock to holders |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies - Accumulated Other Comprehensive Income (Detail) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Currency translation adjustments | $ 11,524 | $ 11,547 |
Net unrealized gain on available-for-sale investments | 24 | 155 |
Net unrealized gain (loss) on derivative financial instruments | (437) | (123) |
Unrecognized prior service cost on benefit obligations | (6,034) | (7,983) |
Accumulated other comprehensive income (loss) | $ 5,077 | $ 3,596 |
Basis of Presentation and Sig32
Basis of Presentation and Significant Accounting Policies - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 357,135 | $ 362,488 | $ 692,622 | $ 717,904 |
Other - net | 120 | 258 | (1,284) | 363 |
Selling, general and administrative expenses | (54,760) | (53,368) | (105,186) | (103,339) |
Income from continuing operations before provision for income taxes and noncontrolling interest | 8,575 | 27,106 | 58,759 | 70,875 |
Provision for Income Taxes | (8,982) | (7,917) | (25,200) | (16,542) |
Net Income | (17,319) | 23,492 | 27,722 | 64,646 |
Accumulated Other Comprehensive Income (Loss) Component Recognized [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassification for the period | 220 | 350 | (2,086) | (590) |
Accumulated Other Comprehensive Income (Loss) Component Recognized [Member] | Realized (Loss) Gain on Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | (210) | (253) | 484 | (90) |
Cost of operations | 703 | 1,153 | (2,718) | 127 |
Income from continuing operations before provision for income taxes and noncontrolling interest | 493 | 900 | (2,234) | 37 |
Provision for Income Taxes | (127) | (232) | 575 | (9) |
Net Income | 366 | 668 | (1,659) | 28 |
Accumulated Other Comprehensive Income (Loss) Component Recognized [Member] | Recognition of Prior Service Cost on Benefit Obligations [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | (400) | (384) | (801) | (768) |
Selling, general and administrative expenses | (9) | (86) | (18) | 171 |
Income from continuing operations before provision for income taxes and noncontrolling interest | (409) | (470) | (819) | (939) |
Provision for Income Taxes | 140 | 148 | 278 | 295 |
Net Income | (269) | (322) | (541) | (644) |
Accumulated Other Comprehensive Income (Loss) Component Recognized [Member] | Realized Gain (loss) on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other - net | 191 | 7 | 177 | 41 |
Provision for Income Taxes | (68) | (3) | (63) | (15) |
Net Income | $ 123 | $ 4 | $ 114 | $ 26 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Carrying Amount of Accrued Warranty Expense (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Standard Product Warranty Disclosure [Abstract] | ||
Balance at beginning of period | $ 15,889 | $ 17,469 |
Additions | 563 | 688 |
Expirations and other changes | (970) | |
Payments | (51) | (20) |
Translation and other | (304) | 6 |
Balance at end of period | $ 16,097 | $ 17,173 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Performance guarantees outstanding amount | $ 1,542,000 | ||
Fair value of performance guarantees | 10,200 | ||
Spin off costs | 66,500 | $ 6,100 | |
Income from continuing operations, spin off costs | $ 24,470 | $ 25,987 | |
BWX Technologies, Inc. [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Spin off, percentage of common stock received | 100.00% | ||
Spin off, description of shares received | Our stockholders received one share of BWE common stock for every two shares of our common stock held by such stockholder | ||
Cash distribution | $ 132,000 | ||
Spin-Off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of income tax rate | 60.00% | ||
Professional services expenses | $ 29,800 | ||
Retention and severance related charges | 23,100 | ||
Income from discontinued operations, spin off costs | 30,800 | 34,400 | |
Income from continuing operations, spin off costs | $ 24,500 | $ 26,000 | |
Minimum [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Master separation agreement expiration dates | 2,015 | ||
Maximum [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Master separation agreement expiration dates | 2,035 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information Regarding Results of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Costs and Expenses: | ||||
Net Income (Loss) | $ (16,912) | $ 4,303 | $ (5,837) | $ 10,313 |
Income (Loss) from Discontinued Operations | (16,966) | 4,226 | (5,943) | 10,120 |
Babcock & Wilcox Enterprises Inc [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 434,453 | 324,905 | 830,234 | 634,639 |
Costs and Expenses: | ||||
Cost of operations | 352,573 | 255,877 | 665,558 | 508,759 |
Research and development costs | 3,962 | 4,281 | 8,480 | 8,293 |
Losses on asset disposals and impairments, net | 8,945 | 1,457 | 8,963 | 1,457 |
Selling, general and administrative expenses | 55,630 | 48,550 | 108,911 | 93,264 |
Special charges for restructuring activities | 5,311 | 7,513 | 7,666 | 8,991 |
Costs to spin-off | 30,831 | 34,358 | ||
Total Costs and Expenses | 457,252 | 317,678 | 833,936 | 620,764 |
Equity in Income (Loss) of Investees | 967 | 433 | (1,104) | 2,799 |
Operating Income (Loss) | (21,832) | 7,660 | (4,806) | 16,674 |
Other Income | 609 | 200 | 305 | 1,902 |
Income (Loss) before Provision for Income Taxes | (21,223) | 7,860 | (4,501) | 18,576 |
Provision for (Benefit from) Income Taxes | (4,311) | 3,557 | 1,336 | 8,263 |
Net Income (Loss) | (16,912) | 4,303 | (5,837) | 10,313 |
Net Loss Attributable to Noncontrolling Interest | (54) | (77) | (106) | (193) |
Income (Loss) from Discontinued Operations | $ (16,966) | $ 4,226 | $ (5,943) | $ 10,120 |
Discontinued Operations - Sum36
Discontinued Operations - Summary of Financial Information Regarding Results of Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Babcock & Wilcox Enterprises Inc [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Corporate administrative expenses | $ 13.9 | $ 13.7 | $ 28 | $ 27.1 |
Discontinued Operations - Carry
Discontinued Operations - Carrying Values of Major Accounts of Discontinued Operations Included in Condensed Consolidated Balance Sheet (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total Current Assets | $ 752,273 |
Total Current Liabilities | 446,881 |
BWX Technologies, Inc. [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | 189,345 |
Restricted cash and cash equivalents | 3,661 |
Accounts receivable - trade, net | 265,456 |
Accounts receivable - other | 38,205 |
Contracts in progress | 107,751 |
Inventories | 98,711 |
Deferred income taxes | 35,158 |
Other current assets | 13,986 |
Total Current Assets | 752,273 |
Net Property, plant and equipment | 128,835 |
Goodwill | 209,277 |
Deferred income taxes | 112,988 |
Investments in unconsolidated affiliates | 109,248 |
Intangible assets | 50,646 |
Other assets | 12,426 |
Total Assets of Discontinued Operations | 1,375,693 |
Notes payable and current maturities of long-term debt | 3,215 |
Accounts payable | 158,643 |
Accrued employee benefits | 39,464 |
Accrued liabilities - other | 59,726 |
Advance billings on contracts | 148,098 |
Accrued warranty expense | 37,735 |
Total Current Liabilities | 446,881 |
Long-term debt | 0 |
Accumulated postretirement benefit obligation | 28,257 |
Pension liability | 255,062 |
Other long-term liabilities | 16,513 |
Total Liabilities of Discontinued Operations | $ 746,713 |
Discontinued Operations - Selec
Discontinued Operations - Selected Financial information Regarding Cash Flows Included in Condensed Consolidated Statements of Cash Flows (Detail) - Babcock & Wilcox Enterprises Inc [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Non-cash items included in net income (loss): | ||
Depreciation and amortization | $ 21,458 | $ 9,642 |
Income (loss) of investees, net of dividends | (2,293) | 239 |
Losses on asset disposals and impairments, net | 10,544 | 1,457 |
Purchases of property, plant and equipment | $ 11,494 | $ 5,464 |
Special Charges for Restructu39
Special Charges for Restructuring Activities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Facility consolidation | $ 700 | $ 300 | ||
Employee termination benefits | 700 | 2,500 | ||
Restructuring charges | $ 16,460 | $ 9,957 | 16,608 | 11,137 |
Employee termination benefits | 1,500 | |||
Consulting and administrative costs | 100 | |||
mPower Program Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 400 | |||
Restructuring charges | $ 15,900 | $ 7,900 |
Special Charges for Restructu40
Special Charges for Restructuring Activities - Changes in Restructuring Liabilities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||
Balance at the beginning of the period | $ 4,967 | $ 5,148 |
Special charges for restructuring activities | 610 | 10,619 |
Payments | (3,875) | (8,114) |
Translation and other | (131) | (6) |
Balance at the end of the period | $ 1,571 | $ 7,647 |
Special Charges for Restructu41
Special Charges for Restructuring Activities - Changes in Restructuring Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||
Non-cash charges | $ 16 | $ 0.5 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015USD ($) | May. 11, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Credit facility agreement term | 5 years | |
Incremental term loan, revolving credit borrowings and letter of credit commitments, maximum capacity | $ 250,000,000 | |
Quarterly amortization payments on term loan as a percentage of aggregate principal amount | 1.25% | |
Commitment fee on unused portions of credit agreement, variable range | 0.175% | |
Interest rate on borrowings | 1.56% | |
Maximum leverage ratio | 3 | |
Maximum leverage ratio after material acquisition | 3.25 | |
Minimum interest coverage ratio | 4 | |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement, maximum borrowing capacity | $ 400,000,000 | |
Senior Secured Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement, maximum borrowing capacity | $ 300,000,000 | $ 500,000,000 |
Senior Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility expiry date | Dec. 31, 2015 | |
Financial Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.375% | |
Performance Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 0.825% | |
Term Loan, Revolving Credit Borrowings And Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, aggregate borrowings outstanding | $ 300,000,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate amount borrowed by issuing letters of credit | 30,000,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate amount borrowed by issuing letters of credit | 71,700,000 | |
Aggregate amount to be borrowed to meet letter of credit requirements | $ 498,300,000 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee on unused portions of credit agreement, variable range | 0.15% | |
Minimum [Member] | Financial Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.25% | |
Minimum [Member] | Performance Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 0.75% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee on unused portions of credit agreement, variable range | 0.25% | |
Maximum [Member] | Financial Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.75% | |
Maximum [Member] | Performance Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.05% | |
Base Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 0.25% | |
Annual interest rate of loan outstanding under credit agreement | 0.75% | |
Annual interest rate of loan outstanding under credit agreement | 0.375% | |
Eurodollar-Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.375% | |
LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.25% | |
Annual interest rate of loan outstanding under credit agreement | 1.75% | |
One Month LIBOR Rate Plus [Member] | Base Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.00% | |
Federal Funds Rate [Member] | Base Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 0.50% |
Pension Plans and Postretirem43
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,208 | $ 6,163 | $ 12,488 | $ 12,324 |
Interest cost | 16,182 | 17,297 | 32,714 | 34,593 |
Expected return on plan assets | (22,379) | (21,280) | (45,177) | (42,552) |
Amortization of prior service cost (credit) | 459 | 510 | 915 | 1,019 |
Recognized net actuarial loss | 2,161 | 2,161 | ||
Net periodic benefit cost | 2,631 | 2,690 | 3,101 | 5,384 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 219 | 207 | 442 | 423 |
Interest cost | 686 | 426 | 1,373 | 1,395 |
Expected return on plan assets | (583) | (575) | (1,168) | (1,150) |
Amortization of prior service cost (credit) | (50) | (40) | (96) | (80) |
Net periodic benefit cost | $ 272 | $ 18 | $ 551 | $ 588 |
Pension Plans and Postretirem44
Pension Plans and Postretirement Benefits - Additional Information (Detail) - Canadian Pension Plans [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, recognized net actuarial loss | $ 2.2 |
Defined benefit plan, settlement loss | 2.6 |
Defined benefit plan, actuarial gain | 0.4 |
Cost of Operations [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, recognized net actuarial loss | 1 |
Selling, General and Administrative Expenses [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, recognized net actuarial loss | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jul. 21, 2015USD ($) | May. 29, 2015USD ($) | Dec. 17, 2014USD ($) | Nov. 12, 2014USD ($) | May. 31, 2015Claim | Nov. 30, 2014USD ($) | Jun. 30, 2015USD ($)VentureClaimFacilityCases | Dec. 31, 2009USD ($)Claim | Dec. 31, 2008USD ($) | Dec. 31, 1998USD ($) | Jul. 13, 2015USD ($) | Feb. 14, 2012 |
Contingencies And Commitments [Line Items] | ||||||||||||
Interest rate on settlement | 6.00% | |||||||||||
Appeal bond required as a percentage of total judgment | 120.00% | |||||||||||
Number of joint ventures | Venture | 2 | |||||||||||
Nuclear Waste Partnership, LLC [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Interest in joint venture | 30.00% | |||||||||||
Repayments of fees or fines as part of the settlement framework | $ 0 | |||||||||||
Los Alamos National Security, LLC [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Interest in joint venture | 13.00% | |||||||||||
Prairie Island [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Recovery of damages incurred | $ 45,400,000 | |||||||||||
DOE and NWP [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Civil penalties | $ 17,750,000 | |||||||||||
DOE and LANS [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Civil penalties | $ 36,600,000 | |||||||||||
Apollo and Parks Township [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Number of claimants | Claim | 97 | |||||||||||
Number of facilities | Facility | 2 | |||||||||||
Number of cases consolidated for most non-dispositive pre-trial matters | Cases | 16 | |||||||||||
Recovery of damages incurred | $ 125,000,000 | |||||||||||
Number of claimants filed | Claim | 93 | |||||||||||
Aggregate settlement amount for claims | $ 52,500,000 | $ 27,500,000 | $ 8,000,000 | |||||||||
Percentage of ARCO's recovery amounts assigned to company | 58.33% | |||||||||||
Apollo and Parks Township [Member] | Personal Injury and Wrongful Death Claims [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Number of claims settled | Claim | 250 | |||||||||||
Apollo and Parks Township [Member] | Property Damage Claims [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Number of claims settled | Claim | 125 | |||||||||||
Apollo and Parks Township [Member] | 2008 Settlement [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Interest accrued on settlement | $ 8,800,000 | |||||||||||
Apollo and Parks Township [Member] | 2009 Settlement [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Interest accrued on settlement | $ 6,200,000 | |||||||||||
AREVA NP, INC. f/k/a Framatome ANP, Inc [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Civil penalties | $ 16,000,000 | |||||||||||
Generation mPower LLC [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Civil penalties | $ 36,300,000 | |||||||||||
Other commitment percentage | 150.00% | |||||||||||
Equity method investment | $ 80,000,000 | |||||||||||
Subsequent Event [Member] | Generation mPower LLC [Member] | ||||||||||||
Contingencies And Commitments [Line Items] | ||||||||||||
Litigation settlement amount contingency | $ 5,000,000 | |||||||||||
Equity method investment in program | $ 15,000,000 |
Derivative Financial Instrume46
Derivative Financial Instruments - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total |
Foreign Currency Derivatives [Abstract] | |
Net loss deferred on derivative financial instruments in accumulated other comprehensive income (loss) | $ 400,000 |
Notional amount of foreign currency forward contracts | $ 47,200,000 |
Maturity date of foreign currency contracts | December 2,016 |
Derivative Financial Instrume47
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - Derivatives Designated as Hedges [Member] - FX Forward Contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts Receivable-Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 701 | $ 469 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 79 | |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,476 | 743 |
Accounts Payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 2,271 | $ 2,655 |
Derivative Financial Instrume48
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Detail) - Derivatives Designated as Hedges [Member] - Cash Flow Hedges [Member] - FX Forward Contracts [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized in other comprehensive income (loss) | $ (2,638) | $ (177) |
Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | 484 | (90) |
Cost of Operations [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | $ (2,718) | $ 127 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments and Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 11,812 | $ 12,443 |
Equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 2,966 | 3,088 |
Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 4,037 | 4,199 |
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 | 304 | 319 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 2,649 | 2,398 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities measure at fair value | 1,856 | 2,439 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,856 | 2,439 |
Level 1 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities measure at fair value | 1,856 | 2,439 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 9,956 | 10,004 |
Level 2 [Member] | Equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 2,966 | 3,088 |
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 | 4,037 | 4,199 |
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 | 304 | 319 |
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 | $ 2,649 | $ 2,398 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
FX Forward Contracts [Member] | ||
Fair Values Of Financial Instruments [Line Items] | ||
Fair value of foreign currency forward contracts | $ (3) | $ (2.9) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 17.8 | $ 5.2 | $ 21.5 | $ 7 |
Stock-based compensation, tax benefits | 6 | $ 2 | 7.3 | $ 2.7 |
Spin-Off [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 13.2 | $ 13.2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | $ 357,135 | $ 362,488 | $ 692,622 | $ 717,904 |
Special Charges for Restructuring Activities | (16,460) | (9,957) | (16,608) | (11,137) |
Revenues | 357,135 | 362,488 | 692,622 | 717,904 |
Cost to spin-off Power Generation business | (24,470) | (25,987) | ||
Mark to Market Adjustment | (2,161) | (2,161) | ||
Operating Income | 11,585 | 27,457 | 65,370 | 72,086 |
Interest income | 170 | 27 | 234 | 231 |
Interest expense | (3,300) | (636) | (5,561) | (1,805) |
Other - net | 120 | 258 | (1,284) | 363 |
Total Other Income (Expense) | (3,010) | (351) | (6,611) | (1,211) |
Income before Provision for Income Taxes | 8,575 | 27,106 | 58,759 | 70,875 |
Equity in Income (Loss) of Investees | 3,282 | 12,749 | 5,134 | 25,652 |
Technical Services [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Equity in Income (Loss) of Investees | 3,282 | 12,749 | 5,134 | 25,650 |
Nuclear Energy [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Equity in Income (Loss) of Investees | 2 | |||
Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | 64,509 | 43,375 | 125,330 | 91,506 |
Operating Segments [Member] | Nuclear Operations [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 291,751 | 293,438 | 576,189 | 579,652 |
Revenues | 291,751 | 293,438 | 576,189 | 579,652 |
Operating Income | 61,145 | 58,682 | 129,157 | 118,210 |
Operating Segments [Member] | Technical Services [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 21,589 | 26,015 | 40,173 | 50,470 |
Revenues | 21,589 | 26,015 | 40,173 | 50,470 |
Operating Income | 5,490 | 15,078 | 7,135 | 29,867 |
Operating Segments [Member] | Nuclear Energy [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 45,466 | 44,927 | 78,423 | 92,707 |
Revenues | 45,466 | 44,927 | 78,423 | 92,707 |
Operating Income | 2,364 | 1,548 | (1,304) | 2,071 |
Operating Segments [Member] | Other [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 278 | |||
Revenues | 278 | |||
Operating Income | (4,490) | (31,933) | (9,658) | (58,642) |
Adjustments and Eliminations [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (1,671) | (1,892) | (2,163) | (5,203) |
Revenues | (1,671) | (1,892) | (2,163) | (5,203) |
Adjustments and Eliminations [Member] | Nuclear Operations [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (1,659) | (1,844) | (2,122) | (4,931) |
Revenues | (1,659) | (1,844) | (2,122) | (4,931) |
Adjustments and Eliminations [Member] | Technical Services [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (12) | (12) | (52) | |
Revenues | (12) | (12) | (52) | |
Adjustments and Eliminations [Member] | Nuclear Energy [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (48) | (29) | (220) | |
Revenues | (48) | (29) | (220) | |
Unallocated Corporate [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | $ (9,833) | $ (5,961) | $ (15,204) | $ (8,283) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic: | ||||
Income (loss) from continuing operations less noncontrolling interest | $ (181) | $ 22,211 | $ 34,053 | $ 61,361 |
Income (loss) from discontinued operations, net of tax | (16,966) | 4,226 | (5,943) | 10,120 |
Net income (loss) | $ (17,147) | $ 26,437 | $ 28,110 | $ 71,481 |
Weighted average common shares | 107,120,149 | 109,766,237 | 106,948,033 | 110,102,826 |
Income (loss) from continuing operations less noncontrolling interest | $ 0 | $ 0.20 | $ 0.32 | $ 0.56 |
Income (loss) from discontinued operations, net of tax | (0.16) | 0.04 | (0.06) | 0.09 |
Net income (loss) | $ (0.16) | $ 0.24 | $ 0.26 | $ 0.65 |
Diluted: | ||||
Income (loss) from continuing operations less noncontrolling interest | $ (181) | $ 22,211 | $ 34,053 | $ 61,361 |
Income (loss) from discontinued operations, net of tax | (16,966) | 4,226 | (5,943) | 10,120 |
Net income (loss) | $ (17,147) | $ 26,437 | $ 28,110 | $ 71,481 |
Weighted average common shares (basic) | 107,120,149 | 109,766,237 | 106,948,033 | 110,102,826 |
Effect of dilutive securities: | ||||
Stock options, restricted stock and performance shares | 350,393,000 | 411,914,000 | 398,511,000 | |
Adjusted weighted average common shares | 107,120,149 | 110,116,630 | 107,359,947 | 110,501,337 |
Income (loss) from continuing operations less noncontrolling interest | $ 0 | $ 0.20 | $ 0.32 | $ 0.56 |
Income (loss) from discontinued operations, net of tax | (0.16) | 0.04 | (0.06) | 0.09 |
Net income (loss) | $ (0.16) | $ 0.24 | $ 0.26 | $ 0.65 |
Earnings Per Share - Computat55
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Antidilutive shares related to stock options excluded from the diluted share | 2,408,006 | 1,373,087 |