Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 (in shares) | 99,322,021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 147,930 | $ 125,641 |
Restricted cash and cash equivalents | 7,089 | 6,130 |
Investments | 4,446 | 14,517 |
Accounts receivable – trade, net | 145,980 | 135,950 |
Accounts receivable – other | 10,510 | 25,221 |
Contracts in progress | 400,455 | 356,793 |
Other current assets | 29,134 | 29,319 |
Total Current Assets | 745,544 | 693,571 |
Property, Plant and Equipment | 945,963 | 922,641 |
Less accumulated depreciation | 647,749 | 622,955 |
Net Property, Plant and Equipment | 298,214 | 299,686 |
Investments | 9,133 | 9,013 |
Goodwill | 214,933 | 210,788 |
Deferred Income Taxes | 182,836 | 194,464 |
Investments in Unconsolidated Affiliates | 41,225 | 42,854 |
Intangible Assets | 113,001 | 114,748 |
Other Assets | 19,852 | 14,691 |
TOTAL | 1,624,738 | 1,579,815 |
Current Liabilities: | ||
Current maturities of long-term debt | 27,609 | 27,370 |
Accounts payable | 68,537 | 99,983 |
Accrued employee benefits | 60,372 | 81,793 |
Accrued liabilities – other | 38,274 | 72,105 |
Advance billings on contracts | 185,765 | 147,148 |
Accrued warranty expense | 12,217 | 11,477 |
Total Current Liabilities | 392,774 | 439,876 |
Long-Term Debt | 489,322 | 497,724 |
Accumulated Postretirement Benefit Obligation | 18,994 | 19,059 |
Environmental Liabilities | 84,775 | 81,711 |
Pension Liability | 340,772 | 357,049 |
Other Liabilities | 33,800 | 33,986 |
Commitments and Contingencies (Note 4) | ||
Stockholders' Equity: | ||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,220,307 and 124,149,609 shares at June 30, 2017 and December 31, 2016, respectively | 1,252 | 1,241 |
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued | 0 | 0 |
Capital in excess of par value | 87,657 | 22,018 |
Retained earnings | 982,024 | 885,117 |
Treasury stock at cost, 25,937,314 and 24,858,809 shares at June 30, 2017 and December 31, 2016, respectively | (813,250) | (762,169) |
Accumulated other comprehensive income | 6,268 | 3,811 |
Stockholders' Equity – BWX Technologies, Inc. | 263,951 | 150,018 |
Noncontrolling interest | 350 | 392 |
Total Stockholders' Equity | 264,301 | 150,410 |
TOTAL | $ 1,624,738 | $ 1,579,815 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 325,000,000 | 325,000,000 |
Common stock, shares issued (in shares) | 125,220,307 | 124,149,609 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock at cost, shares (in shares) | 25,937,314 | 24,858,809 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 410,011 | $ 402,382 | $ 838,240 | $ 767,208 |
Costs and Expenses: | ||||
Cost of operations | 271,382 | 265,076 | 567,612 | 513,886 |
Research and development costs | 1,152 | 1,566 | 2,671 | 3,297 |
Gains on asset disposals and impairments, net | (31) | (50) | (31) | (50) |
Selling, general and administrative expenses | 48,488 | 52,040 | 99,638 | 97,249 |
mPower framework agreement | 0 | 0 | 0 | 30,000 |
Total Costs and Expenses | 320,991 | 318,632 | 669,890 | 644,382 |
Equity in Income of Investees | 3,327 | 4,708 | 7,202 | 8,241 |
Operating Income | 92,347 | 88,458 | 175,552 | 131,067 |
Other Income (Expense): | ||||
Interest income | 211 | 267 | 348 | 405 |
Interest expense | (3,906) | (1,583) | (7,423) | (3,277) |
Other – net | (170) | 820 | 383 | 24,891 |
Total Other Income (Expense) | (3,865) | (496) | (6,692) | 22,019 |
Income before Provision for Income Taxes | 88,482 | 87,962 | 168,860 | 153,086 |
Provision for Income Taxes | 27,062 | 29,465 | 51,654 | 44,855 |
Net Income | 61,420 | 58,497 | 117,206 | 108,231 |
Net Income Attributable to Noncontrolling Interest | (157) | (125) | (224) | (228) |
Net Income Attributable to BWX Technologies, Inc. | $ 61,263 | $ 58,372 | $ 116,982 | $ 108,003 |
Basic: | ||||
Net Income Attributable to BWX Technologies, Inc. (usd per share) | $ 0.62 | $ 0.56 | $ 1.18 | $ 1.04 |
Diluted: | ||||
Net Income Attributable to BWX Technologies, Inc. (usd per share) | $ 0.61 | $ 0.56 | $ 1.16 | $ 1.02 |
Shares used in the computation of earnings per share (Note 9): | ||||
Basic (in shares) | 99,166,205 | 103,527,603 | 99,305,558 | 103,945,872 |
Diluted (in shares) | 100,150,926 | 104,971,216 | 100,420,948 | 105,419,583 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 61,420 | $ 58,497 | $ 117,206 | $ 108,231 |
Other Comprehensive Income (Loss): | ||||
Currency translation adjustments, net of tax provision of $0, $(47), $0 and $(734), respectively | 2,044 | 37 | 2,835 | 2,113 |
Derivative financial instruments: | ||||
Unrealized gains arising during the period, net of tax provision of $(142), $(18), $(239) and $(352), respectively | 409 | 51 | 688 | 1,012 |
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $58, $(5), $71 and $285, respectively | (170) | 15 | (207) | (823) |
Amortization of benefit plan costs, net of tax benefit of $(157), $(142), $(313) and $(283), respectively | 289 | 265 | 579 | 530 |
Investments: | ||||
Unrealized (losses) gains arising during the period, net of tax (provision) benefit of $(60), $278, $(130) and $(525), respectively | (1,210) | (511) | (1,304) | 977 |
Reclassification adjustment for gains included in net income, net of tax provision of $6, $6, $14 and $12, respectively | (120) | (11) | (134) | (23) |
Other Comprehensive Income (Loss) | 1,242 | (154) | 2,457 | 3,786 |
Total Comprehensive Income | 62,662 | 58,343 | 119,663 | 112,017 |
Comprehensive Income Attributable to Noncontrolling Interest | (157) | (125) | (224) | (228) |
Comprehensive Income Attributable to BWX Technologies, Inc. | $ 62,505 | $ 58,218 | $ 119,439 | $ 111,789 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision on currency translation adjustments provision | $ 0 | $ (47) | $ 0 | $ (734) |
Tax provision of unrealized gains on derivative financial instruments | (142) | (18) | (239) | (352) |
Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | 58 | (5) | 71 | 285 |
Tax benefit of amortization of benefit plan costs | (157) | (142) | (313) | (283) |
Tax (provision) benefit of unrealized gains (losses) | (60) | 278 | (130) | (525) |
Tax provision on reclassification adjustment for gain on investment | $ 6 | $ 6 | $ 14 | $ 12 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Stockholders' Equity | Noncontrolling Interest |
Beginning balance at Dec. 31, 2015 | $ 279,635 | $ 1,228 | $ 22,732 | $ 739,350 | $ 752 | $ (498,346) | $ 265,716 | $ 13,919 |
Beginning balance (in shares) at Dec. 31, 2015 | 122,813,135 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 108,231 | 108,003 | 108,003 | 228 | ||||
Dividends declared | (18,881) | (18,881) | (18,881) | |||||
Currency translation adjustments | 2,113 | 2,113 | 2,113 | |||||
Derivative financial instruments | 189 | 189 | 189 | |||||
Defined benefit obligations | 530 | 530 | 530 | |||||
Available-for-sale investments | 954 | 954 | 954 | |||||
Exercise of stock options | 14,957 | $ 7 | 14,950 | 14,957 | ||||
Exercise of stock options (in shares) | 684,222 | |||||||
Shares placed in treasury | (91,425) | (91,425) | (91,425) | |||||
Stock-based compensation charges | 6,585 | $ 4 | 6,581 | 6,585 | ||||
Stock-based compensation charges (in shares) | 378,227 | |||||||
Distributions to noncontrolling interests | (257) | (257) | ||||||
Deconsolidation of Generation mPower LLC | (13,571) | (13,571) | ||||||
Other | 3,386 | 3,386 | 3,386 | |||||
Ending balance at Jun. 30, 2016 | 292,446 | $ 1,239 | 47,649 | 828,472 | 4,538 | (589,771) | 292,127 | 319 |
Ending balance (in shares) at Jun. 30, 2016 | 123,875,584 | |||||||
Beginning balance at Dec. 31, 2016 | $ 150,410 | $ 1,241 | 22,018 | 885,117 | 3,811 | (762,169) | 150,018 | 392 |
Beginning balance (in shares) at Dec. 31, 2016 | 124,149,609 | 124,149,609 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 117,206 | 116,982 | 116,982 | 224 | ||||
Dividends declared | (20,075) | (20,075) | (20,075) | |||||
Currency translation adjustments | 2,835 | 2,835 | 2,835 | |||||
Derivative financial instruments | 481 | 481 | 481 | |||||
Defined benefit obligations | 579 | 579 | 579 | |||||
Available-for-sale investments | (1,438) | (1,438) | (1,438) | |||||
Exercise of stock options | 18,645 | $ 8 | 18,637 | 18,645 | ||||
Exercise of stock options (in shares) | 790,922 | |||||||
Shares placed in treasury | (11,174) | 39,907 | (51,081) | (11,174) | ||||
Stock-based compensation charges | 7,098 | $ 3 | 7,095 | 7,098 | ||||
Stock-based compensation charges (in shares) | 279,776 | |||||||
Distributions to noncontrolling interests | (266) | (266) | ||||||
Ending balance at Jun. 30, 2017 | $ 264,301 | $ 1,252 | $ 87,657 | $ 982,024 | $ 6,268 | $ (813,250) | $ 263,951 | $ 350 |
Ending balance (in shares) at Jun. 30, 2017 | 125,220,307 | 125,220,307 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (usd per share) | $ 0.2 | $ 0.18 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 117,206 | $ 108,231 |
Non-cash items included in net income from continuing operations: | ||
Depreciation and amortization | 28,199 | 24,669 |
Income of investees, net of dividends | 987 | (3,413) |
Gains on asset disposals and impairments, net | (31) | (50) |
Gain on deconsolidation of Generation mPower LLC | 0 | (13,571) |
Recognition of losses for pension and postretirement plans | 892 | 813 |
Stock-based compensation expense | 7,098 | 6,030 |
Changes in assets and liabilities: | ||
Accounts receivable | (154) | 22,662 |
Accounts payable | (26,905) | 10,285 |
Contracts in progress and advance billings on contracts | (3,869) | (76,044) |
Income taxes | 18,477 | 13,182 |
Accrued and other current liabilities | (39,325) | 17,101 |
Pension liability, accrued postretirement benefit obligation and employee benefits | (43,790) | (29,016) |
Other, net | 5,238 | (7,864) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 64,023 | 73,015 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Decrease (increase) in restricted cash and cash equivalents | (959) | 10,202 |
Purchases of property, plant and equipment | (28,747) | (18,479) |
Purchases of securities | (12,049) | (15,467) |
Sales and maturities of securities | 19,986 | 5,305 |
Investments, net of return of capital, in equity method investees | 211 | |
Investments, net of return of capital, in equity method investees | (10,493) | |
Proceeds from asset disposals | 140 | 50 |
Other, net | (24) | 0 |
NET CASH USED IN INVESTING ACTIVITIES | (21,442) | (28,882) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under the Credit Agreement | 73,600 | 0 |
Repayments under Credit Agreement | (87,344) | (7,500) |
Repurchase of common shares | 0 | (81,466) |
Dividends paid to common shareholders | (20,139) | (19,024) |
Exercise of stock options | 14,608 | 14,957 |
Cash paid for shares withheld to satisfy employee taxes | (7,045) | (8,638) |
Other | (266) | (257) |
NET CASH USED IN FINANCING ACTIVITIES | (26,586) | (101,928) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 6,294 | 868 |
TOTAL INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 22,289 | (56,927) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 125,641 | 154,729 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 147,930 | 97,802 |
Cash paid during the period for: | ||
Interest | 7,049 | 2,786 |
Income taxes (net of refunds) | 33,997 | 32,939 |
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||
Accrued capital expenditures included in accounts payable | $ 3,886 | $ 4,980 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES We have presented the condensed consolidated financial statements of BWX Technologies, Inc. ("BWXT" or the "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, 2016 (our " 2016 10-K"). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation. We use the equity method to account for investments in entities that we do not control, but over which we have the ability to exercise significant influence. We generally refer to these entities as "joint ventures." We have eliminated all intercompany transactions and accounts. We present the notes to our condensed consolidated financial statements on the basis of continuing operations, unless otherwise stated. Unless the context otherwise indicates, "we," "us" and "our" mean BWXT and its consolidated subsidiaries. Reportable Segments We operate in three reportable segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. Our reportable segments reflect changes we made during the first quarter of 2017 in the manner for which our segment operating information is reported for purposes of assessing operating performance and allocating resources. Prior to 2017, we reported three segments: Nuclear Operations, Nuclear Energy and Technical Services. The U.S. nuclear services business, a component of our former Nuclear Energy segment, is now reported in our Nuclear Services Group segment along with our former Technical Services segment. The remainder of our former Nuclear Energy segment is now reported in our Nuclear Power Group segment, which comprises our Canadian operations, including the recently acquired BWXT Nuclear Energy Canada Inc. Our Nuclear Operations Group segment represents our former Nuclear Operations segment. The change in our reportable segments had no impact on our previously reported consolidated results of operations, financial condition or cash flows. We have applied the change in reportable segments to previously reported historical financial information and related disclosures included in this report. Our reportable segments are further described as follows: • Our Nuclear Operations Group segment manufactures naval nuclear reactors for the U.S. Department of Energy ("DOE")/National Nuclear Security Administration's ("NNSA") Naval Nuclear Propulsion Program, which in turn supplies them to the U.S. Navy for use in submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Mount Vernon, Indiana; Euclid, Ohio; Barberton, Ohio; and Erwin, Tennessee. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components. The Euclid facility fabricates electro-mechanical equipment and performs design, manufacturing, inspection, assembly and testing activities. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. ("NFS"), one of our wholly owned subsidiaries. Located in Erwin, NFS also downblends Cold War-era government stockpiles of highly enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. • Our Nuclear Services Group segment provides various services to the U.S. Government and the commercial nuclear industry. Services provided to the U.S. Government include nuclear materials management and operation, environmental management and administrative and operating services for various U.S. Government-owned facilities. These services are provided to the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management; the Department of Defense and NASA. Through this segment we deliver services and management solutions to nuclear and high-consequence operations. A significant portion of this segment's operations are conducted through joint ventures. Our Nuclear Services Group segment also provides inspection and maintenance services primarily for the U.S. commercial nuclear industry including steam generator and heat exchanger inspection services, high pressure water lancing, non-destructive examination and customized tooling solutions. This segment also offers complete advanced fuel and reactor engineering, licensing and manufacturing services for new advanced nuclear reactors. • Our Nuclear Power Group segment fabricates steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level waste, for nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide and is the only heavy nuclear component, N-Stamp certified manufacturer in North America. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering. In addition, this segment offers in-plant inspection, maintenance and modification services for nuclear steam generators, heat exchangers, reactors, fuel handling systems and balance of plant equipment, as well as specialized non-destructive examination and tooling/repair solutions. On December 16, 2016, our subsidiary BWXT Canada Ltd. acquired the outstanding stock of the GE Hitachi Nuclear Energy Canada Inc. joint venture, which was renamed BWXT Nuclear Energy Canada Inc. ("NEC"). NEC is a leading supplier of nuclear fuel, fuel handling systems, tooling delivery systems and replacement components for CANDU reactors and has approximately 350 employees. NEC operates two facilities licensed by the Canadian Nuclear Safety Commission ("CNSC") to fabricate natural uranium fuel in Peterborough and Toronto, Ontario, Canada as well as a third facility in Arnprior, Ontario, Canada. The acquisition of NEC expanded our existing commercial nuclear products and services portfolio, allowing us to leverage our technology-based competencies in offering new products and services related to plant life extensions as well as the ongoing maintenance of nuclear power generation equipment. NEC is reported within our Nuclear Power Group segment. For additional information on the acquisition of NEC, see Note 2 to our condensed consolidated financial statements. For financial information about our segments, see Note 8 to our condensed consolidated financial statements. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . For further information, refer to the consolidated financial statements and the related footnotes included in our 2016 10-K. Deconsolidation of Generation mPower LLC On March 2, 2016, we entered into a framework agreement with Bechtel Power Corporation ("Bechtel"), BWXT Modular Reactors, LLC and BDC NexGen Power, LLC for the potential restructuring and restart of our mPower small modular reactor program (the "Framework Agreement"). As a result of entering into the Framework Agreement, we deconsolidated Generation mPower LLC ("GmP") from our financial statements as of the date of the Framework Agreement. We recorded a gain of approximately $13.6 million during the six months ended June 30, 2016 related to the deconsolidation of GmP as a component of Other – net in our condensed consolidated statement of income. For additional information on the Framework Agreement, see Note 4 to our condensed consolidated financial statements. 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. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income included in stockholders' equity are as follows: June 30, December 31, (In thousands) Currency translation adjustments $ 9,746 $ 6,911 Net unrealized gain (loss) on derivative financial instruments 141 (340 ) Unrecognized prior service cost on benefit obligations (5,813 ) (6,392 ) Net unrealized gain on available-for-sale investments 2,194 3,632 Accumulated other comprehensive income $ 6,268 $ 3,811 The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Accumulated Other Comprehensive Income (Loss) Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ (9 ) $ (17 ) $ (13 ) $ (40 ) Revenues 237 (3 ) 291 1,148 Cost of operations 228 (20 ) 278 1,108 Total before tax (58 ) 5 (71 ) (285 ) Provision for Income Taxes $ 170 $ (15 ) $ 207 $ 823 Net Income Amortization of prior service cost on benefit obligations $ (446 ) $ (400 ) $ (892 ) $ (799 ) Cost of operations — (7 ) — (14 ) Selling, general and administrative expenses (446 ) (407 ) (892 ) (813 ) Total before tax 157 142 313 283 Provision for Income Taxes $ (289 ) $ (265 ) $ (579 ) $ (530 ) Net Income Realized gain on investments $ 126 $ 17 $ 148 $ 35 Other – net (6 ) (6 ) (14 ) (12 ) Provision for Income Taxes $ 120 $ 11 $ 134 $ 23 Net Income Total reclassification for the period $ 1 $ (269 ) $ (238 ) $ 316 Inventories At June 30, 2017 and December 31, 2016 , included in other current assets we had inventories totaling $7.9 million and $7.7 million , respectively, consisting entirely of raw materials and supplies. Restricted Cash and Cash Equivalents At June 30, 2017 , we had restricted cash and cash equivalents totaling $10.0 million , $2.9 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $7.1 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 2017 2016 (In thousands) Balance at beginning of period $ 11,477 $ 13,542 Additions 667 483 Expirations and other changes (84 ) (1,364 ) Payments (16 ) (16 ) Translation 173 274 Balance at end of period $ 12,217 $ 12,919 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. With the spin-off of our former Power Generation business in the second quarter of 2015, we began recognizing our consolidated income tax provision based on the U.S. federal statutory rate of 35% due to the presumed repatriation of our Canadian earnings. With the acquisition of NEC in the fourth quarter of 2016, we now expect that we will reinvest the undistributed earnings of our foreign subsidiaries indefinitely. As a result, in the fourth quarter of 2016, we began recording our Canadian income tax provision based on the Canadian local statutory rate of approximately 25% . Our effective tax rate for the three months ended June 30, 2017 was approximately 30.6% as compared to 33.5% for the three months ended June 30, 2016 . Our effective tax rate for the six months ended June 30, 2017 was approximately 30.6% as compared to 29.3% for the six months ended June 30, 2016 . The effective tax rates for the three and six months ended June 30, 2017 were lower than our statutory rate primarily due to benefits recognized for excess tax benefits related to employee share-based payments of $2.6 million and $4.9 million , respectively. The effective tax rate for the six months ended June 30, 2016 was lower than our statutory rate primarily due to the $13.6 million non-taxable gain recognized related to the deconsolidation of GmP. As of June 30, 2017 , we have gross unrecognized tax benefits of $1.7 million (exclusive of interest and federal and state benefits), all of which would reduce our effective tax rate if recognized. New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued the Topic Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in the Topic Revenue Recognition and most industry specific guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied, as well as new, expanded disclosures. In August 2015, the FASB deferred the effective date of this amendment until 2018. The FASB has also issued numerous technical corrections and improvements to update its guidance, which will become effective upon adoption. The update may be adopted either retrospectively to each prior period or as a cumulative-effect adjustment on the date of adoption. We commenced our assessment of the standard and have developed a project plan to guide the implementation. This plan includes analyzing the standard's impact on our contract portfolio, comparing current accounting policies and practices to the requirements of the new standard and identifying potential differences from applying the requirements of the new standard to our contracts. We developed processes to ensure adequate analysis of our contracts. The new revenue standard will significantly increase disclosure requirements for revenue and related assets and liabilities. While the new revenue standard may impact the timing of when we recognize revenue and profit, it will not impact the timing of cash flows associated with our contracts, and the overall revenue and profit recognized on our contracts will not change. Within our Nuclear Operations Group segment, we will continue to recognize revenue over time, and we will measure progress on performance obligations using a cost-to-cost method. Historically, we utilized man-hours or a cost-to-cost method to measure progress on certain of the performance obligations within this segment. The performance obligations identified for recognizing revenue will be similar to our historical units of account. As a result of the change to a cost-to-cost method, the timing of revenue recognition on affected contracts will, in the aggregate, result in the recognition of revenue and cost of operations earlier in the process of satisfying performance obligations. The new standard will also result in a reduction in both our contracts in progress and advanced billings on contracts account balances upon adoption. We believe the impact of the adoption of the new revenue standard on our Nuclear Power Group and Nuclear Services Group segments will not be material. While this assessment continues, we have not yet selected a transition method nor have we fully determined the effect of the standard on our financial statements. In February 2016, the FASB issued an update to the Topic Leases , which supersedes the lease reporting requirements in Topic Leases (previously "FAS 13"). This update requires that a lessee recognize on its balance sheet the assets and liabilities for all leases with lease terms of more than 12 months, along with additional qualitative and quantitative disclosures. The effect of leases in a consolidated statement of income and a consolidated statement of cash flows is expected to be largely unchanged. Accounting by lessors was not significantly impacted by this update. This update will be effective for us in 2019, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our financial statements. In October 2016, the FASB issued an update to the Topic Statement of Cash Flows. This update clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Restricted cash will now be included in the cash and cash equivalent balances in the statement of cash flows. Reconciliations between the balance sheet and the statement of cash flows, along with additional disclosures if certain criteria are met, are now required as well. This update is applicable to us and will be effective for interim periods beginning in 2018, with early adoption permitted. The amendments in this update are to be applied retrospectively. This update will affect the presentation of restricted cash and cash equivalents on the statement of cash flows, but will otherwise not have a material impact to our financial statements. We expect to adopt the provisions in this update effective January 1, 2018. In March 2017, the FASB issued an update to the Topic Compensation – Retirement Benefits . This update amends the guidance on the consolidated statement of income presentation of the components of net periodic benefit cost related to defined benefit pension and postretirement plans. Under current GAAP, components of net periodic benefit cost are aggregated and reported net in the consolidated statements of income as part of operating income. This update requires entities to disaggregate the service cost component of net periodic benefit cost and present it with other current compensation costs within operating income. Other components of net periodic benefit cost are required to be classified outside of operating income within the consolidated statements of income. These changes to classification within the consolidated statements of income will result in no changes to net income. This update will be effective for us in 2018 with retrospective presentation. The impact of this update on our consolidated statements of income for the three and six months ended June 30, 2017 would be a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $6.9 million and $13.9 million , respectively, and a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $6.6 million and $13.2 million for the three and six months ended June 30, 2016 , respectively. The impact of this update on our consolidated statement of income for the year ended December 31, 2016 would be a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $4.8 million , which includes a Mark to Market loss of $21.5 million . |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS GE Hitachi Nuclear Energy Canada Inc. Acquisition On December 16, 2016, our subsidiary BWXT Canada Ltd. acquired the outstanding stock of the GE Hitachi Nuclear Energy Canada Inc. ("GEH-C") joint venture. Total consideration included CAD 157.9 million ( $117.8 million U.S. Dollar equivalent) paid in the fourth quarter of 2016 and a working capital adjustment of CAD 1.0 million ( $0.7 million U.S. Dollar equivalent) paid in May 2017. Upon acquisition, GEH-C was renamed BWXT Nuclear Energy Canada Inc. ("NEC"). NEC is a leading supplier of nuclear fuel, fuel handling systems, tooling delivery systems and replacement components for CANDU reactors and has approximately 350 employees. NEC operates two facilities licensed by the CNSC to fabricate natural uranium fuel in Peterborough and Toronto, Ontario, Canada as well as a third facility in Arnprior, Ontario, Canada. The acquisition of NEC expanded our existing commercial nuclear products and services portfolio, allowing us to leverage our technology-based competencies in offering new products and services related to plant life extensions as well as the ongoing maintenance of nuclear power generation equipment. NEC is reported within our Nuclear Power Group segment. The purchase price of the acquisition has been allocated among assets acquired and liabilities assumed at fair value, with the excess purchase price recorded as goodwill. During the second quarter of 2017, we adjusted our purchase price allocation which included adjustments to the value of property, plant and equipment of $(3.0) million and intangible assets of $0.7 million with a resulting increase to goodwill of $2.3 million . Our purchase price allocation is as follows: NEC (In thousands) Accounts receivable – trade $ 15,659 Accounts receivable – other 1,359 Contracts in progress 21,597 Other current assets 159 Property, plant and equipment 21,356 Goodwill 44,930 Intangible assets 59,745 Total assets acquired $ 164,805 Accounts payable $ 3,922 Accrued employee benefits 1,965 Accrued liabilities – other 3,097 Accrued warranty expense 282 Accumulated postretirement benefit obligation 5,695 Environmental liabilities 18,505 Pension liability 1,054 Other liabilities 11,790 Total liabilities assumed $ 46,310 Net assets acquired $ 118,495 Amount of tax deductible goodwill $ — The intangible assets included above consist of the following (dollar amounts in thousands): Amount Amortization Period CNSC class 1B nuclear facility license $ 25,360 30 years Backlog $ 12,680 2 years Customer relationships $ 8,951 14 years Favorable operating lease $ 8,279 20 years Unpatented technology $ 3,729 15 years Patented technology $ 746 11 years The following unaudited pro forma financial information presents our results of operations for the three and six months ended June 30, 2016 had the acquisition of NEC occurred on January 1, 2015. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2015. This information is presented for comparative purposes only and should not be taken as representative of our future consolidated results of operations. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 (In thousands, except per share amounts) Revenues $ 424,711 $ 808,402 Net Income Attributable to BWX Technologies, Inc. $ 58,464 $ 106,589 Basic Earnings per Common Share $ 0.56 $ 1.03 Diluted Earnings per Common Share $ 0.56 $ 1.01 The unaudited pro forma results include the following pre-tax adjustments to the historical results presented above: • Increase in amortization expense related to timing of amortization of the fair value of identifiable intangible assets acquired of approximately $1.6 million and $3.6 million for the three and six months ended June 30, 2016 , respectively. • Elimination of historical interest income of approximately $0.1 million and $0.2 million for the three and six months ended June 30, 2016 , respectively. • Additional interest expense associated with the incremental borrowings that would have been incurred to acquire NEC as of January 1, 2015 of approximately $0.6 million and $1.2 million for the three and six months ended June 30, 2016 , respectively. • Additional accretion associated with asset retirement obligations of approximately $0.3 million and $0.7 million for the three and six months ended June 30, 2016 , respectively. • Additional depreciation expense associated with the fair value adjustment of property, plant and equipment of approximately $0.3 million and $0.5 million for the three and six months ended June 30, 2016 , respectively. • Elimination of $0.6 million in acquisition related costs recognized in the three and six months ended June 30, 2016 that are not expected to be recurring. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plan [Abstract] | |
Pension Plans and Postretirement Benefits | 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 2017 2016 2017 2016 2017 2016 2017 2016 (In thousands) Service cost $ 2,145 $ 1,850 $ 4,296 $ 3,700 $ 153 $ 167 $ 307 $ 318 Interest cost 13,495 13,765 27,008 27,454 538 553 1,078 1,094 Expected return on plan assets (20,803 ) (20,758 ) (41,640 ) (41,375 ) (596 ) (576 ) (1,191 ) (1,152 ) Amortization of prior service cost (credit) 525 482 1,050 964 (78 ) (75 ) (157 ) (151 ) Net periodic benefit (income) cost $ (4,638 ) $ (4,661 ) $ (9,286 ) $ (9,257 ) $ 17 $ 69 $ 37 $ 109 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Other than as noted below, there have been no material changes during the period covered by this Form 10-Q in the status of the legal proceedings disclosed in Note 11 to the consolidated financial statements in Part II of our 2016 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 U.S. District Court for the Western District of Pennsylvania. Since January 2010, additional suits were filed by additional plaintiffs, and there are currently 17 lawsuits pending in the U.S. District Court for the Western District of Pennsylvania against the BWXT Parties and ARCO, including the most recent lawsuits filed in June and October 2015. In total, the suits presently involve approximately 107 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. While we consider the likelihood of the plaintiffs' recovery to be remote, solely on the basis of this demand we estimate the range of a possible loss at between $0.0 million and $125.0 million . In connection with the spin-off of our former Power Generation business, 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. Between May 2015 and March 2016, the presiding judge in the Apollo and Parks Litigation granted the BWXT Parties' motions to dismiss or motions for summary judgment in all 17 of the existing lawsuits. Accordingly, all current claims in the Apollo and Parks Litigation have been dismissed by the trial court. All plaintiffs have filed notices of appeal, and the appeals have been consolidated in the 3 rd Circuit of the U.S. Court of Appeals. Although the appeal process could be lengthy, if ultimately upheld, the trial court's decisions would result in the dismissal of all 17 lawsuits. 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Our international 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 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 in 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, 2017 , we had deferred approximately $0.1 million of net gains on these derivative financial instruments in accumulated other comprehensive income. Assuming market conditions continue, we expect to recognize substantially all of this amount in the next 12 months. At June 30, 2017 , our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $35.5 million at June 30, 2017 , with maturities extending to December 2019 . These instruments consist primarily of contracts to purchase or sell Canadian dollars. We are exposed to credit-related losses in the event of non-performance 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, 2017 and December 31, 2016 : Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 363 $ 70 Other assets $ 272 $ — Accounts payable $ 53 $ 462 The effects of derivatives on our financial statements are outlined below: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain recognized in other comprehensive income $ 551 $ 69 $ 927 $ 1,364 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ (9 ) $ (17 ) $ (13 ) $ (40 ) Cost of operations $ 237 $ (3 ) $ 291 $ 1,148 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Investments The following is a summary of our investments measured at fair value at June 30, 2017 : Total Level 1 Level 2 Level 3 (In thousands) Trading securities Equities $ 26 $ 26 $ — $ — Available-for-sale securities U.S. Government and agency securities 2,199 2,199 — — Corporate bonds 3,733 1,497 2,236 — Equities 2,901 — 2,901 — Mutual funds 4,534 — 4,534 — Asset-backed securities and collateralized mortgage obligations 186 — 186 — Total $ 13,579 $ 3,722 $ 9,857 $ — The following is a summary of our investments measured at fair value at December 31, 2016 : Total Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds $ 2,302 $ 2,302 $ — $ — Equities 38 38 — — Available-for-sale securities U.S. Government and agency securities 8,404 8,404 — — Corporate bonds 3,312 — 3,312 — Equities 4,582 — 4,582 — Mutual funds 4,183 — 4,183 — Asset-backed securities and collateralized mortgage obligations 209 — 209 — Commercial paper 500 — 500 — Total $ 23,530 $ 10,744 $ 12,786 $ — 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, 2017 and December 31, 2016 , we had forward contracts outstanding to purchase or sell Canadian dollars, with a total fair value of $0.6 million and $(0.4) million , respectively. Other Financial Instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments, as follows: Cash and cash equivalents and restricted cash and cash equivalents . The carrying amounts that we have reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature. Long-term and short-term debt . We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our debt instruments approximated their carrying value at June 30, 2017 and December 31, 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Total stock-based compensation for all of our plans recognized for the three months ended June 30, 2017 and 2016 totaled $4.0 million and $3.8 million , respectively, with associated tax benefit totaling $1.4 million and $1.3 million , respectively. Total stock-based compensation for all of our plans recognized for the six months ended June 30, 2017 and 2016 totaled $8.7 million and $6.7 million , respectively, with associated tax benefit totaling $3.0 million and $2.3 million , respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING As described in Note 1 , our operations are assessed based on three reportable segments. In connection with our segment reporting change, we have revised historical amounts to conform to current segment presentation. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands) REVENUES: Nuclear Operations Group $ 312,866 $ 325,660 $ 637,947 $ 620,915 Nuclear Services Group 44,785 32,224 72,639 66,218 Nuclear Power Group 54,569 47,946 132,243 84,145 Adjustments and Eliminations (1) (2,209 ) (3,448 ) (4,589 ) (4,070 ) $ 410,011 $ 402,382 $ 838,240 $ 767,208 (1) Segment revenues are net of the following intersegment transfers and other adjustments: Nuclear Operations Group Transfers $ (205 ) $ (49 ) $ (400 ) $ (126 ) Nuclear Services Group Transfers (1,913 ) (3,008 ) (4,070 ) (3,316 ) Nuclear Power Group Transfers (91 ) (391 ) (119 ) (628 ) $ (2,209 ) $ (3,448 ) $ (4,589 ) $ (4,070 ) OPERATING INCOME: Nuclear Operations Group $ 74,794 $ 64,407 $ 148,042 $ 129,349 Nuclear Services Group 15,659 4,405 16,321 10,208 Nuclear Power Group 6,541 26,674 20,339 33,628 Other (1,070 ) (1,271 ) (2,682 ) (3,161 ) $ 95,924 $ 94,215 $ 182,020 $ 170,024 Unallocated Corporate (2) (3,577 ) (5,757 ) (6,468 ) (8,957 ) mPower Framework Agreement — — — (30,000 ) Total Operating Income $ 92,347 $ 88,458 $ 175,552 $ 131,067 Other Income (Expense) : Interest income 211 267 348 405 Interest expense (3,906 ) (1,583 ) (7,423 ) (3,277 ) Other – net (170 ) 820 383 24,891 Total Other Income (Expense) (3,865 ) (496 ) (6,692 ) 22,019 Income before Provision for Income Taxes $ 88,482 $ 87,962 $ 168,860 $ 153,086 (2) Unallocated corporate includes general corporate overhead not allocated to segments. June 30, December 31, (In thousands) SEGMENT ASSETS: Nuclear Operations Group $ 847,624 $ 854,310 Nuclear Services Group 162,727 169,850 Nuclear Power Group 299,232 315,687 Other 1,821 3,156 Total Segment Assets 1,311,404 1,343,003 Corporate Assets 313,334 236,812 Total Assets $ 1,624,738 $ 1,579,815 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands, except share and per share amounts) Basic: Net income attributable to BWX Technologies, Inc. (1) $ 61,263 $ 58,372 $ 116,982 $ 108,003 Weighted average common shares 99,166,205 103,527,603 99,305,558 103,945,872 Basic earnings per common share (1) $ 0.62 $ 0.56 $ 1.18 $ 1.04 Diluted: Net income attributable to BWX Technologies, Inc. (1) $ 61,263 $ 58,372 $ 116,982 $ 108,003 Weighted average common shares (basic) 99,166,205 103,527,603 99,305,558 103,945,872 Effect of dilutive securities: Stock options, restricted stock and performance shares (1)(2) 984,721 1,443,613 1,115,390 1,473,711 Adjusted weighted average common shares (1) 100,150,926 104,971,216 100,420,948 105,419,583 Diluted earnings per common share (1) $ 0.61 $ 0.56 $ 1.16 $ 1.02 (1) Net income attributable to BWX Technologies, Inc. and the resulting basic and diluted earnings per common share for the three and six months ended June 30, 2016 have been adjusted from amounts previously reported to reflect the early adoption of the FASB update to the Topic Compensation – Stock Compensation. (2) At June 30, 2017 and 2016 , none of our shares were antidilutive. |
Basis of Presentation and Sig19
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We have presented the condensed consolidated financial statements of BWX Technologies, Inc. ("BWXT" or the "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, 2016 (our " 2016 10-K"). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation. |
Consolidation | We use the equity method to account for investments in entities that we do not control, but over which we have the ability to exercise significant influence. We generally refer to these entities as "joint ventures." We have eliminated all intercompany transactions and accounts. We present the notes to our condensed consolidated financial statements on the basis of continuing operations, unless otherwise stated. Unless the context otherwise indicates, "we," "us" and "our" mean BWXT and its consolidated subsidiaries. |
Reporting Segments | Reportable Segments We operate in three reportable segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. Our reportable segments reflect changes we made during the first quarter of 2017 in the manner for which our segment operating information is reported for purposes of assessing operating performance and allocating resources. Prior to 2017, we reported three segments: Nuclear Operations, Nuclear Energy and Technical Services. The U.S. nuclear services business, a component of our former Nuclear Energy segment, is now reported in our Nuclear Services Group segment along with our former Technical Services segment. The remainder of our former Nuclear Energy segment is now reported in our Nuclear Power Group segment, which comprises our Canadian operations, including the recently acquired BWXT Nuclear Energy Canada Inc. Our Nuclear Operations Group segment represents our former Nuclear Operations segment. The change in our reportable segments had no impact on our previously reported consolidated results of operations, financial condition or cash flows. We have applied the change in reportable segments to previously reported historical financial information and related disclosures included in this report. Our reportable segments are further described as follows: • Our Nuclear Operations Group segment manufactures naval nuclear reactors for the U.S. Department of Energy ("DOE")/National Nuclear Security Administration's ("NNSA") Naval Nuclear Propulsion Program, which in turn supplies them to the U.S. Navy for use in submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Mount Vernon, Indiana; Euclid, Ohio; Barberton, Ohio; and Erwin, Tennessee. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components. The Euclid facility fabricates electro-mechanical equipment and performs design, manufacturing, inspection, assembly and testing activities. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. ("NFS"), one of our wholly owned subsidiaries. Located in Erwin, NFS also downblends Cold War-era government stockpiles of highly enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. • Our Nuclear Services Group segment provides various services to the U.S. Government and the commercial nuclear industry. Services provided to the U.S. Government include nuclear materials management and operation, environmental management and administrative and operating services for various U.S. Government-owned facilities. These services are provided to the DOE, including the NNSA, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management; the Department of Defense and NASA. Through this segment we deliver services and management solutions to nuclear and high-consequence operations. A significant portion of this segment's operations are conducted through joint ventures. Our Nuclear Services Group segment also provides inspection and maintenance services primarily for the U.S. commercial nuclear industry including steam generator and heat exchanger inspection services, high pressure water lancing, non-destructive examination and customized tooling solutions. This segment also offers complete advanced fuel and reactor engineering, licensing and manufacturing services for new advanced nuclear reactors. • Our Nuclear Power Group segment fabricates steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level waste, for nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide and is the only heavy nuclear component, N-Stamp certified manufacturer in North America. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering. In addition, this segment offers in-plant inspection, maintenance and modification services for nuclear steam generators, heat exchangers, reactors, fuel handling systems and balance of plant equipment, as well as specialized non-destructive examination and tooling/repair solutions. On December 16, 2016, our subsidiary BWXT Canada Ltd. acquired the outstanding stock of the GE Hitachi Nuclear Energy Canada Inc. joint venture, which was renamed BWXT Nuclear Energy Canada Inc. ("NEC"). NEC is a leading supplier of nuclear fuel, fuel handling systems, tooling delivery systems and replacement components for CANDU reactors and has approximately 350 employees. NEC operates two facilities licensed by the Canadian Nuclear Safety Commission ("CNSC") to fabricate natural uranium fuel in Peterborough and Toronto, Ontario, Canada as well as a third facility in Arnprior, Ontario, Canada. The acquisition of NEC expanded our existing commercial nuclear products and services portfolio, allowing us to leverage our technology-based competencies in offering new products and services related to plant life extensions as well as the ongoing maintenance of nuclear power generation equipment. NEC is reported within our Nuclear Power Group segment. For additional information on the acquisition of NEC, see Note 2 to our condensed consolidated financial statements. For financial information about our segments, see Note 8 to our condensed consolidated financial statements. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . For further information, refer to the consolidated financial statements and the related footnotes included in our 2016 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. |
Inventories | Inventories At June 30, 2017 and December 31, 2016 , included in other current assets we had inventories totaling $7.9 million and $7.7 million , respectively, consisting entirely of raw materials and supplies. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents At June 30, 2017 , we had restricted cash and cash equivalents totaling $10.0 million , $2.9 million of which was held for future decommissioning of facilities (which is included in other assets on our condensed consolidated balance sheets) and $7.1 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. |
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. |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued the Topic Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in the Topic Revenue Recognition and most industry specific guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied, as well as new, expanded disclosures. In August 2015, the FASB deferred the effective date of this amendment until 2018. The FASB has also issued numerous technical corrections and improvements to update its guidance, which will become effective upon adoption. The update may be adopted either retrospectively to each prior period or as a cumulative-effect adjustment on the date of adoption. We commenced our assessment of the standard and have developed a project plan to guide the implementation. This plan includes analyzing the standard's impact on our contract portfolio, comparing current accounting policies and practices to the requirements of the new standard and identifying potential differences from applying the requirements of the new standard to our contracts. We developed processes to ensure adequate analysis of our contracts. The new revenue standard will significantly increase disclosure requirements for revenue and related assets and liabilities. While the new revenue standard may impact the timing of when we recognize revenue and profit, it will not impact the timing of cash flows associated with our contracts, and the overall revenue and profit recognized on our contracts will not change. Within our Nuclear Operations Group segment, we will continue to recognize revenue over time, and we will measure progress on performance obligations using a cost-to-cost method. Historically, we utilized man-hours or a cost-to-cost method to measure progress on certain of the performance obligations within this segment. The performance obligations identified for recognizing revenue will be similar to our historical units of account. As a result of the change to a cost-to-cost method, the timing of revenue recognition on affected contracts will, in the aggregate, result in the recognition of revenue and cost of operations earlier in the process of satisfying performance obligations. The new standard will also result in a reduction in both our contracts in progress and advanced billings on contracts account balances upon adoption. We believe the impact of the adoption of the new revenue standard on our Nuclear Power Group and Nuclear Services Group segments will not be material. While this assessment continues, we have not yet selected a transition method nor have we fully determined the effect of the standard on our financial statements. In February 2016, the FASB issued an update to the Topic Leases , which supersedes the lease reporting requirements in Topic Leases (previously "FAS 13"). This update requires that a lessee recognize on its balance sheet the assets and liabilities for all leases with lease terms of more than 12 months, along with additional qualitative and quantitative disclosures. The effect of leases in a consolidated statement of income and a consolidated statement of cash flows is expected to be largely unchanged. Accounting by lessors was not significantly impacted by this update. This update will be effective for us in 2019, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our financial statements. In October 2016, the FASB issued an update to the Topic Statement of Cash Flows. This update clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Restricted cash will now be included in the cash and cash equivalent balances in the statement of cash flows. Reconciliations between the balance sheet and the statement of cash flows, along with additional disclosures if certain criteria are met, are now required as well. This update is applicable to us and will be effective for interim periods beginning in 2018, with early adoption permitted. The amendments in this update are to be applied retrospectively. This update will affect the presentation of restricted cash and cash equivalents on the statement of cash flows, but will otherwise not have a material impact to our financial statements. We expect to adopt the provisions in this update effective January 1, 2018. In March 2017, the FASB issued an update to the Topic Compensation – Retirement Benefits . This update amends the guidance on the consolidated statement of income presentation of the components of net periodic benefit cost related to defined benefit pension and postretirement plans. Under current GAAP, components of net periodic benefit cost are aggregated and reported net in the consolidated statements of income as part of operating income. This update requires entities to disaggregate the service cost component of net periodic benefit cost and present it with other current compensation costs within operating income. Other components of net periodic benefit cost are required to be classified outside of operating income within the consolidated statements of income. These changes to classification within the consolidated statements of income will result in no changes to net income. This update will be effective for us in 2018 with retrospective presentation. The impact of this update on our consolidated statements of income for the three and six months ended June 30, 2017 would be a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $6.9 million and $13.9 million , respectively, and a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $6.6 million and $13.2 million for the three and six months ended June 30, 2016 , respectively. The impact of this update on our consolidated statement of income for the year ended December 31, 2016 would be a reduction of Operating Income, along with a corresponding increase to Other Income (Expense), of $4.8 million , which includes a Mark to Market loss of $21.5 million . |
Basis of Presentation and Sig20
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income included in stockholders' equity are as follows: June 30, December 31, (In thousands) Currency translation adjustments $ 9,746 $ 6,911 Net unrealized gain (loss) on derivative financial instruments 141 (340 ) Unrecognized prior service cost on benefit obligations (5,813 ) (6,392 ) Net unrealized gain on available-for-sale investments 2,194 3,632 Accumulated other comprehensive income $ 6,268 $ 3,811 |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Accumulated Other Comprehensive Income (Loss) Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ (9 ) $ (17 ) $ (13 ) $ (40 ) Revenues 237 (3 ) 291 1,148 Cost of operations 228 (20 ) 278 1,108 Total before tax (58 ) 5 (71 ) (285 ) Provision for Income Taxes $ 170 $ (15 ) $ 207 $ 823 Net Income Amortization of prior service cost on benefit obligations $ (446 ) $ (400 ) $ (892 ) $ (799 ) Cost of operations — (7 ) — (14 ) Selling, general and administrative expenses (446 ) (407 ) (892 ) (813 ) Total before tax 157 142 313 283 Provision for Income Taxes $ (289 ) $ (265 ) $ (579 ) $ (530 ) Net Income Realized gain on investments $ 126 $ 17 $ 148 $ 35 Other – net (6 ) (6 ) (14 ) (12 ) Provision for Income Taxes $ 120 $ 11 $ 134 $ 23 Net Income Total reclassification for the period $ 1 $ (269 ) $ (238 ) $ 316 |
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 2017 2016 (In thousands) Balance at beginning of period $ 11,477 $ 13,542 Additions 667 483 Expirations and other changes (84 ) (1,364 ) Payments (16 ) (16 ) Translation 173 274 Balance at end of period $ 12,217 $ 12,919 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisition Assets Acquired and Liabilities Assumed | Our purchase price allocation is as follows: NEC (In thousands) Accounts receivable – trade $ 15,659 Accounts receivable – other 1,359 Contracts in progress 21,597 Other current assets 159 Property, plant and equipment 21,356 Goodwill 44,930 Intangible assets 59,745 Total assets acquired $ 164,805 Accounts payable $ 3,922 Accrued employee benefits 1,965 Accrued liabilities – other 3,097 Accrued warranty expense 282 Accumulated postretirement benefit obligation 5,695 Environmental liabilities 18,505 Pension liability 1,054 Other liabilities 11,790 Total liabilities assumed $ 46,310 Net assets acquired $ 118,495 Amount of tax deductible goodwill $ — |
Schedule of Preliminary Intangible Assets Acquired | The intangible assets included above consist of the following (dollar amounts in thousands): Amount Amortization Period CNSC class 1B nuclear facility license $ 25,360 30 years Backlog $ 12,680 2 years Customer relationships $ 8,951 14 years Favorable operating lease $ 8,279 20 years Unpatented technology $ 3,729 15 years Patented technology $ 746 11 years |
Schedule of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information presents our results of operations for the three and six months ended June 30, 2016 had the acquisition of NEC occurred on January 1, 2015. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2015. This information is presented for comparative purposes only and should not be taken as representative of our future consolidated results of operations. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 (In thousands, except per share amounts) Revenues $ 424,711 $ 808,402 Net Income Attributable to BWX Technologies, Inc. $ 58,464 $ 106,589 Basic Earnings per Common Share $ 0.56 $ 1.03 Diluted Earnings per Common Share $ 0.56 $ 1.01 |
Pension Plans and Postretirem22
Pension Plans and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plan [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 2017 2016 2017 2016 2017 2016 2017 2016 (In thousands) Service cost $ 2,145 $ 1,850 $ 4,296 $ 3,700 $ 153 $ 167 $ 307 $ 318 Interest cost 13,495 13,765 27,008 27,454 538 553 1,078 1,094 Expected return on plan assets (20,803 ) (20,758 ) (41,640 ) (41,375 ) (596 ) (576 ) (1,191 ) (1,152 ) Amortization of prior service cost (credit) 525 482 1,050 964 (78 ) (75 ) (157 ) (151 ) Net periodic benefit (income) cost $ (4,638 ) $ (4,661 ) $ (9,286 ) $ (9,257 ) $ 17 $ 69 $ 37 $ 109 |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments at June 30, 2017 and December 31, 2016 : Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 363 $ 70 Other assets $ 272 $ — Accounts payable $ 53 $ 462 |
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | The effects of derivatives on our financial statements are outlined below: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain recognized in other comprehensive income $ 551 $ 69 $ 927 $ 1,364 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ (9 ) $ (17 ) $ (13 ) $ (40 ) Cost of operations $ 237 $ (3 ) $ 291 $ 1,148 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 : Total Level 1 Level 2 Level 3 (In thousands) Trading securities Equities $ 26 $ 26 $ — $ — Available-for-sale securities U.S. Government and agency securities 2,199 2,199 — — Corporate bonds 3,733 1,497 2,236 — Equities 2,901 — 2,901 — Mutual funds 4,534 — 4,534 — Asset-backed securities and collateralized mortgage obligations 186 — 186 — Total $ 13,579 $ 3,722 $ 9,857 $ — The following is a summary of our investments measured at fair value at December 31, 2016 : Total Level 1 Level 2 Level 3 (In thousands) Trading securities Corporate bonds $ 2,302 $ 2,302 $ — $ — Equities 38 38 — — Available-for-sale securities U.S. Government and agency securities 8,404 8,404 — — Corporate bonds 3,312 — 3,312 — Equities 4,582 — 4,582 — Mutual funds 4,183 — 4,183 — Asset-backed securities and collateralized mortgage obligations 209 — 209 — Commercial paper 500 — 500 — Total $ 23,530 $ 10,744 $ 12,786 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands) REVENUES: Nuclear Operations Group $ 312,866 $ 325,660 $ 637,947 $ 620,915 Nuclear Services Group 44,785 32,224 72,639 66,218 Nuclear Power Group 54,569 47,946 132,243 84,145 Adjustments and Eliminations (1) (2,209 ) (3,448 ) (4,589 ) (4,070 ) $ 410,011 $ 402,382 $ 838,240 $ 767,208 (1) Segment revenues are net of the following intersegment transfers and other adjustments: Nuclear Operations Group Transfers $ (205 ) $ (49 ) $ (400 ) $ (126 ) Nuclear Services Group Transfers (1,913 ) (3,008 ) (4,070 ) (3,316 ) Nuclear Power Group Transfers (91 ) (391 ) (119 ) (628 ) $ (2,209 ) $ (3,448 ) $ (4,589 ) $ (4,070 ) OPERATING INCOME: Nuclear Operations Group $ 74,794 $ 64,407 $ 148,042 $ 129,349 Nuclear Services Group 15,659 4,405 16,321 10,208 Nuclear Power Group 6,541 26,674 20,339 33,628 Other (1,070 ) (1,271 ) (2,682 ) (3,161 ) $ 95,924 $ 94,215 $ 182,020 $ 170,024 Unallocated Corporate (2) (3,577 ) (5,757 ) (6,468 ) (8,957 ) mPower Framework Agreement — — — (30,000 ) Total Operating Income $ 92,347 $ 88,458 $ 175,552 $ 131,067 Other Income (Expense) : Interest income 211 267 348 405 Interest expense (3,906 ) (1,583 ) (7,423 ) (3,277 ) Other – net (170 ) 820 383 24,891 Total Other Income (Expense) (3,865 ) (496 ) (6,692 ) 22,019 Income before Provision for Income Taxes $ 88,482 $ 87,962 $ 168,860 $ 153,086 (2) Unallocated corporate includes general corporate overhead not allocated to segments. June 30, December 31, (In thousands) SEGMENT ASSETS: Nuclear Operations Group $ 847,624 $ 854,310 Nuclear Services Group 162,727 169,850 Nuclear Power Group 299,232 315,687 Other 1,821 3,156 Total Segment Assets 1,311,404 1,343,003 Corporate Assets 313,334 236,812 Total Assets $ 1,624,738 $ 1,579,815 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 2017 2016 2017 2016 (In thousands, except share and per share amounts) Basic: Net income attributable to BWX Technologies, Inc. (1) $ 61,263 $ 58,372 $ 116,982 $ 108,003 Weighted average common shares 99,166,205 103,527,603 99,305,558 103,945,872 Basic earnings per common share (1) $ 0.62 $ 0.56 $ 1.18 $ 1.04 Diluted: Net income attributable to BWX Technologies, Inc. (1) $ 61,263 $ 58,372 $ 116,982 $ 108,003 Weighted average common shares (basic) 99,166,205 103,527,603 99,305,558 103,945,872 Effect of dilutive securities: Stock options, restricted stock and performance shares (1)(2) 984,721 1,443,613 1,115,390 1,473,711 Adjusted weighted average common shares (1) 100,150,926 104,971,216 100,420,948 105,419,583 Diluted earnings per common share (1) $ 0.61 $ 0.56 $ 1.16 $ 1.02 (1) Net income attributable to BWX Technologies, Inc. and the resulting basic and diluted earnings per common share for the three and six months ended June 30, 2016 have been adjusted from amounts previously reported to reflect the early adoption of the FASB update to the Topic Compensation – Stock Compensation. (2) At June 30, 2017 and 2016 , none of our shares were antidilutive. |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Dec. 16, 2016facilityemployee | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015 | Jun. 30, 2017USD ($)componentsegment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)segment |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Number of reportable segments | segment | 3 | 3 | ||||||
Number of large, heavy components supplied to worldwide (more than) | component | 1,300 | |||||||
Gain on deconsolidation | $ 0 | $ 13,571 | ||||||
Revenue recognition, percentage of contract completion | 70.00% | |||||||
Total inventories | $ 7,900 | $ 7,700 | $ 7,900 | $ 7,700 | ||||
Restricted cash and cash equivalents reclassified into other assets | 10,000 | 10,000 | ||||||
Restricted cash and cash equivalents | $ 7,089 | $ 6,130 | $ 7,089 | 6,130 | ||||
Statutory tax rate | 35.00% | |||||||
Effective tax rate | 30.60% | 33.50% | 30.60% | 29.30% | ||||
Effective income tax rate reconciliation, share-based compensation cost (benefit) amount | $ (2,600) | $ (4,900) | ||||||
Effective income tax rate reconciliation, deconsolidation, gain (loss) amount | $ 13,600 | |||||||
Gross unrecognized tax benefits | 1,700 | 1,700 | ||||||
Canada Revenue Agency | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Foreign statutory rate | 25.00% | |||||||
Cash Held for Future Decommissioning of Facilities | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Restricted cash and cash equivalents | 2,900 | 2,900 | ||||||
Cash Held to Meet Reinsurance Reserve Requirements | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Restricted cash and cash equivalents | 7,100 | 7,100 | ||||||
Other - Net | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Gain on deconsolidation | 13,600 | |||||||
Operating Income | Pro Forma | Accounting Standards Update 2017-07 | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Net periodic benefit (income) cost | (6,900) | $ (6,600) | (13,900) | (13,200) | (4,800) | |||
Mark to market loss adjustment | 21,500 | |||||||
Other Income (Expense) | Pro Forma | Accounting Standards Update 2017-07 | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Net periodic benefit (income) cost | $ 6,900 | $ 6,600 | $ 13,900 | $ 13,200 | 4,800 | |||
Mark to market loss adjustment | $ 21,500 | |||||||
NEC | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Business combination, number of employees | employee | 350 | |||||||
Business acquisition, number of operating facilities | facility | 2 |
Basis of Presentation and Sig28
Basis of Presentation and Significant Accounting Policies - Accumulated Other Comprehensive Income (Detail) (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Currency translation adjustments | $ 9,746 | $ 6,911 |
Net unrealized gain (loss) on derivative financial instruments | 141 | (340) |
Unrecognized prior service cost on benefit obligations | (5,813) | (6,392) |
Net unrealized gain on available-for-sale investments | 2,194 | 3,632 |
Accumulated other comprehensive income | $ 6,268 | $ 3,811 |
Basis of Presentation and Sig29
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 410,011 | $ 402,382 | $ 838,240 | $ 767,208 |
Cost of operations | (271,382) | (265,076) | (567,612) | (513,886) |
Selling, general and administrative expenses | (48,488) | (52,040) | (99,638) | (97,249) |
Other – net | (170) | 820 | 383 | 24,891 |
Income before Provision for Income Taxes | 88,482 | 87,962 | 168,860 | 153,086 |
Provision for Income Taxes | (27,062) | (29,465) | (51,654) | (44,855) |
Net Income | 61,420 | 58,497 | 117,206 | 108,231 |
Accumulated Other Comprehensive Income (Loss) Component Recognized | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income | 1 | (269) | (238) | 316 |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Realized gain (loss) on derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | (9) | (17) | (13) | (40) |
Cost of operations | 237 | (3) | 291 | 1,148 |
Income before Provision for Income Taxes | 228 | (20) | 278 | 1,108 |
Provision for Income Taxes | (58) | 5 | (71) | (285) |
Net Income | 170 | (15) | 207 | 823 |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Amortization of prior service cost on benefit obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | (446) | (400) | (892) | (799) |
Selling, general and administrative expenses | 0 | (7) | 0 | (14) |
Income before Provision for Income Taxes | (446) | (407) | (892) | (813) |
Provision for Income Taxes | 157 | 142 | 313 | 283 |
Net Income | (289) | (265) | (579) | (530) |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Realized gain on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other – net | 126 | 17 | 148 | 35 |
Provision for Income Taxes | (6) | (6) | (14) | (12) |
Net Income | $ 120 | $ 11 | $ 134 | $ 23 |
Basis of Presentation and Sig30
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, 2017 | Jun. 30, 2016 | |
Movement in Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 11,477 | $ 13,542 |
Additions | 667 | 483 |
Expirations and other changes | (84) | (1,364) |
Payments | (16) | (16) |
Translation | 173 | 274 |
Balance at end of period | $ 12,217 | $ 12,919 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - NEC $ in Thousands, CAD in Millions | Dec. 16, 2016facilityemployee | May 31, 2017CAD | May 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016CAD | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Business combination, consideration transferred | CAD 157.9 | $ 117,800 | ||||||
Working capital adjustment | CAD 1 | $ 700 | ||||||
Business combination, number of employees | employee | 350 | |||||||
Business acquisition, number of operating facilities | facility | 2 | |||||||
Adjustment to value of property, plant and equipment | $ (3,000) | |||||||
Adjustment to value of intangible assets | 700 | |||||||
Adjustments to value of goodwill | $ 2,300 | |||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | $ 58,464 | $ 106,589 | ||||||
Increase in Amortization Expense | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | (1,600) | (3,600) | ||||||
Elimination of Historical Interest Income | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | (100) | (200) | ||||||
Additional Interest Expense Associated with Incremental Borrowings | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | (600) | (1,200) | ||||||
Additional Accretion | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | 300 | 700 | ||||||
Additional Depreciation Expense | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | (300) | (500) | ||||||
Elimination of Acquisition Related Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Net Income (Loss) Attributable to BWX Technologies, Inc. | $ 600 | $ 600 |
Acquisitions - Business Acquisi
Acquisitions - Business Acquisition Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 16, 2016 |
Condensed Income Statements, Captions [Line Items] | |||
Goodwill | $ 214,933 | $ 210,788 | |
NEC | |||
Condensed Income Statements, Captions [Line Items] | |||
Accounts receivable – trade | $ 15,659 | ||
Accounts receivable – other | 1,359 | ||
Contracts in progress | 21,597 | ||
Other current assets | 159 | ||
Property, plant and equipment | 21,356 | ||
Goodwill | 44,930 | ||
Intangible assets | 59,745 | ||
Total assets acquired | 164,805 | ||
Accounts payable | 3,922 | ||
Accrued employee benefits | 1,965 | ||
Accrued liabilities – other | 3,097 | ||
Accrued warranty expense | 282 | ||
Accumulated postretirement benefit obligation | 5,695 | ||
Environmental liabilities | 18,505 | ||
Pension liability | 1,054 | ||
Other liabilities | 11,790 | ||
Total liabilities assumed | 46,310 | ||
Net assets acquired | 118,495 | ||
Amount of tax deductible goodwill | $ 0 |
Acquisitions - Preliminary Inta
Acquisitions - Preliminary Intangible Assets Acquired (Detail) - NEC $ in Thousands | Dec. 16, 2016USD ($) |
CNSC class 1B nuclear facility license | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 25,360 |
Amortization Period | 30 years |
Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 12,680 |
Amortization Period | 2 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 8,951 |
Amortization Period | 14 years |
Favorable operating lease | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 8,279 |
Amortization Period | 20 years |
Unpatented technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 3,729 |
Amortization Period | 15 years |
Patented technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 746 |
Amortization Period | 11 years |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Financial Information (Detail) - NEC - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenues | $ 424,711 | $ 808,402 |
Net Income Attributable to BWX Technologies, Inc. | $ 58,464 | $ 106,589 |
Basic Earnings per Common Share (usd per share) | $ 0.56 | $ 1.03 |
Diluted Earnings per Common Share (usd per share) | $ 0.56 | $ 1.01 |
Pension Plans and Postretirem35
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,145 | $ 1,850 | $ 4,296 | $ 3,700 |
Interest cost | 13,495 | 13,765 | 27,008 | 27,454 |
Expected return on plan assets | (20,803) | (20,758) | (41,640) | (41,375) |
Amortization of prior service cost (credit) | 525 | 482 | 1,050 | 964 |
Net periodic benefit (income) cost | (4,638) | (4,661) | (9,286) | (9,257) |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 153 | 167 | 307 | 318 |
Interest cost | 538 | 553 | 1,078 | 1,094 |
Expected return on plan assets | (596) | (576) | (1,191) | (1,152) |
Amortization of prior service cost (credit) | (78) | (75) | (157) | (151) |
Net periodic benefit (income) cost | $ 17 | $ 69 | $ 37 | $ 109 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Apollo and Parks Township $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 90 Months Ended |
Nov. 30, 2014USD ($) | Jun. 30, 2017claimcase | Mar. 31, 2016case | Jun. 30, 2017claimfacility | |
Contingencies And Commitments [Line Items] | ||||
Number of cases consolidated for most non-dispositive pre-trial matters | case | 17 | 17 | ||
Number of claimants | claim | 107 | 107 | ||
Number of facilities | facility | 2 | |||
Recovery of damages incurred | $ 125 | |||
Minimum | ||||
Contingencies And Commitments [Line Items] | ||||
Recovery of damages incurred | 0 | |||
Maximum | ||||
Contingencies And Commitments [Line Items] | ||||
Recovery of damages incurred | $ 125 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net gains on derivative financial instruments in accumulated other comprehensive income | $ 100,000 |
Notional amount of foreign currency forward contracts | $ 35,500,000 |
Derivative Financial Instrume38
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - Derivatives Designated as Hedges - FX Forward Contracts - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable – other | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 363 | $ 70 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 272 | 0 |
Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 53 | $ 462 |
Derivative Financial Instrume39
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Detail) - Derivatives Designated as Hedges - Cash Flow Hedges - FX Forward Contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in other comprehensive income | $ 551 | $ 69 | $ 927 | $ 1,364 |
Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | (9) | (17) | (13) | (40) |
Cost of operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | $ 237 | $ (3) | $ 291 | $ 1,148 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments and Available-for-Sale Securities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 13,579 | $ 23,530 |
U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,199 | 8,404 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,302 | |
Available-for-sale securities | 3,733 | 3,312 |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 26 | 38 |
Available-for-sale securities | 2,901 | 4,582 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,534 | 4,183 |
Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 186 | 209 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 500 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,722 | 10,744 |
Level 1 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,199 | 8,404 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,302 | |
Available-for-sale securities | 1,497 | 0 |
Level 1 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 26 | 38 |
Available-for-sale securities | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,857 | 12,786 |
Level 2 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Available-for-sale securities | 2,236 | 3,312 |
Level 2 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 2,901 | 4,582 |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,534 | 4,183 |
Level 2 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 186 | 209 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 500 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 3 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
Available-for-sale securities | 0 | 0 |
Level 3 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Level 3 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
FX Forward Contracts | ||
Fair Values Of Financial Instruments [Line Items] | ||
Fair value of foreign currency forward contracts | $ 0.6 | $ (0.4) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock based compensation expense | $ 4 | $ 3.8 | $ 8.7 | $ 6.7 |
Stock-based compensation, tax benefits | $ 1.4 | $ 1.3 | $ 3 | $ 2.3 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Number of reportable segments | 3 | 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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | $ 410,011 | $ 402,382 | $ 838,240 | $ 767,208 |
mPower Framework Agreement | 0 | 0 | 0 | (30,000) |
Operating Income | 92,347 | 88,458 | 175,552 | 131,067 |
Interest income | 211 | 267 | 348 | 405 |
Interest expense | (3,906) | (1,583) | (7,423) | (3,277) |
Other – net | (170) | 820 | 383 | 24,891 |
Total Other Income (Expense) | (3,865) | (496) | (6,692) | 22,019 |
Income before Provision for Income Taxes | 88,482 | 87,962 | 168,860 | 153,086 |
Operating Segments | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | 95,924 | 94,215 | 182,020 | 170,024 |
Operating Segments | Nuclear Operations Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 312,866 | 325,660 | 637,947 | 620,915 |
Operating Income | 74,794 | 64,407 | 148,042 | 129,349 |
Operating Segments | Nuclear Services Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 44,785 | 32,224 | 72,639 | 66,218 |
Operating Income | 15,659 | 4,405 | 16,321 | 10,208 |
Operating Segments | Nuclear Power Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 54,569 | 47,946 | 132,243 | 84,145 |
Operating Income | 6,541 | 26,674 | 20,339 | 33,628 |
Operating Segments | Other | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | (1,070) | (1,271) | (2,682) | (3,161) |
Adjustments and Eliminations | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (2,209) | (3,448) | (4,589) | (4,070) |
Adjustments and Eliminations | Nuclear Operations Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (205) | (49) | (400) | (126) |
Adjustments and Eliminations | Nuclear Services Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (1,913) | (3,008) | (4,070) | (3,316) |
Adjustments and Eliminations | Nuclear Power Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (91) | (391) | (119) | (628) |
Unallocated Corporate | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | (3,577) | (5,757) | (6,468) | (8,957) |
Segment Reconciling Items | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
mPower Framework Agreement | $ 0 | $ 0 | $ 0 | $ (30,000) |
Segment Reporting - Schedule 45
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 1,624,738 | $ 1,579,815 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,311,404 | 1,343,003 |
Operating Segments | Nuclear Operations Group | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 847,624 | 854,310 |
Operating Segments | Nuclear Services Group | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 162,727 | 169,850 |
Operating Segments | Nuclear Power Group | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 299,232 | 315,687 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,821 | 3,156 |
Unallocated Corporate | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 313,334 | $ 236,812 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic: | ||||
Net income attributable to BWX Technologies, Inc. | $ 61,263 | $ 58,372 | $ 116,982 | $ 108,003 |
Weighted average common shares (in shares) | 99,166,205 | 103,527,603 | 99,305,558 | 103,945,872 |
Basic earnings per common share (usd per share) | $ 0.62 | $ 0.56 | $ 1.18 | $ 1.04 |
Diluted: | ||||
Net income attributable to BWX Technologies, Inc. | $ 61,263 | $ 58,372 | $ 116,982 | $ 108,003 |
Weighted average common shares (basic) (in shares) | 99,166,205 | 103,527,603 | 99,305,558 | 103,945,872 |
Effect of dilutive securities: | ||||
Stock options, restricted stock and performance shares (in shares) | 984,721 | 1,443,613 | 1,115,390 | 1,473,711 |
Adjusted weighted average common shares (in shares) | 100,150,926 | 104,971,216 | 100,420,948 | 105,419,583 |
Diluted earnings per common share (usd per share) | $ 0.61 | $ 0.56 | $ 1.16 | $ 1.02 |
Antidilutive shares related to stock options excluded from the diluted share (in shares) | 0 | 0 |